Replacing retired power plants is part of bold plan
Vicksburg will once again be home to an Entergy Mississippi power generation source with construction of the Vicksburg Advanced Power Station, the company’s latest investment to replace retired, fifty-year-old natural gas generation facilities with newer, highly efficient resources. The 754-megawatt combined-cycle combustion turbine facility will be located on the grounds of the former Baxter Wilson Steam Electric Station and, along with already-announced plants in Greenville and Ridgeland, will help ensure Entergy Mississippi’s 459,000 customers continue to have efficient, reliable and affordable energy.
Replacing legacy power plants with new, highly efficient power generation sources provides long-term savings to customers. Modern natural gas plants are forty percent more fuel efficient than older facilities, saving customers more money on future bills for decades to come.
In the short term, the construction of this and other new generation units at the time of new large industrial technology customers’ investments in the grid—like Amazon—will reduce forecasted bill increases by sixteen percent over the next five years.
Savings include an estimated $1.3 billion in the materials and equipment costs to build new power plants today, compared to the cost to build those facilities on their original schedules. Given the inflationary trends in materials and construction costs, building facilities now will save customers money.
Entergy’s diverse generation portfolio offers flexibility to lessen the impact on customers’ bills should one fuel source spike in price. Additionally, Entergy expects to pass on to customers an estimated savings of $700 million in fuel costs over the life of the new units.
“Today, we are in a global race to secure leadership in the emerging industries of the future—and one of the most critical ingredients in this race is energy,” said Governor Tate Reeves, who attended the ground breaking. “A top priority of mine will be continuing to bring more available, affordable and reliable energy to our state. Entergy’s massive $1.2 billion investment will help us further solidify Mississippi as a leader in American energy production. This is another historic day for energy and economic development in Mississippi.”
These measures are part of Superpower Mississippi, the largest grid upgrade in the company’s history, which makes distribution improvements, adds new generation and prioritizes keeping customers’ rates affordable while building an all-of-the-above generation mix that makes the electric grid more reliable and efficient.
While electricity costs are rising nationally, growth in our service area—including new large industrial customers like Amazon—means some of the increased costs for equipment and fuel that otherwise would be incorporated into future bills won’t be passed on to our other existing customers. Customers will also share a smaller portion of the costs than they would have to build the same plants on their original schedules.
“Vicksburg is one of the four original cities we began serving in 1923, and we’re proud to continue our legacy here with the Vicksburg Advanced Power Station. We’re building new natural gas plants in our service area for the first time in more than 50 years. Replacing older plants has been in our long-term resource plan for several years, but we’re taking advantage of the economic growth happening in our region to bring modern generation technology online sooner, while minimizing the rate impact to customers’ bills,” said Haley Fisackerly, President and CEO, Entergy Mississippi.
“These upgrades are not only important to keeping bills affordable for customers, but also to making sure we have the capacity to promote economic development, recruit new and higher paying jobs, and power residential, commercial, industrial and technology growth for Mississippi’s future.
“Our reliability effort announced last month combined with this additional commitment to develop new power generation sources means our Superpower Mississippi plan is bringing more power and better power to customers, all at a lower cost to them,” continued Fisackerly. “Our state leaders have been instrumental in recruiting large industrial customers, like Amazon, that afford us the ability to provide these significant benefits to customers. And, thanks to support for that growth from Governor Reeves, the Mississippi State Legislature and the Mississippi Public Service Commission, all customers will benefit from lower bills than they otherwise would have seen in the future. We’re also grateful to local leaders, like those in Warren County, who welcome these investments that not only help their communities prosper but also serve Mississippi families and businesses throughout the western half of the state.”
“I’m encouraged to see Entergy Mississippi moving into the next phase of its Superpower Mississippi plan, with a clear focus on generating power that’s both efficient and affordable,” said De’Keither Stamps, Mississippi Public Service Commissioner, Central District. “As utility costs continue to rise nationwide, it’s important that Mississippians see real savings and reliable service here at home. By working with large industrial customers to share costs and drive new economic growth, Entergy is helping ensure lower rates and stronger reliability for all customers. I look forward to seeing continued progress that keeps Mississippi competitive and our communities well-powered for the future.”
“Entergy’s investment in this new power plant sets a record for capital investment in the City of Vicksburg,” said Willis Thompson, Vicksburg Mayor. “We are excited about our long-term partnership with Entergy and what this project means for the future of our community. The economic impact will be tremendous, and the additional power capacity will further strengthen our ability to attract new jobs and investment to the region.”
A $1.2 billion investment, the Vicksburg Advanced Power Station represents a significant economic impact for the area, including more than 560 construction jobs over the next several years and additional tax revenue for Warren County. Entergy will employ about twenty-one personnel to operate the plant once completed.
This advanced facility will be equipped with combined-cycle combustion turbine technology that primarily uses natural gas and is also designed to support blended hydrogen in the future, mirroring the other power plants Entergy Mississippi is building: Delta Blues Advanced Power Station in Greenville and Traceview Advanced Power Station in Ridgeland. Much like the legacy units that have been cornerstones of our local communities for half a century, these new plants will power life for the next generation of Mississippians and beyond.
“The contribution of Entergy’s newest power plant goes far beyond generating electricity,” said Kelle Barfield, Warren County Board of Supervisors President. “The contribution of Entergy’s newest power plant goes far beyond generating electricity. Reliable, affordable electricity is important to existing customers, but it is crucial in recruiting new business and industry to Warren County. The plant will also return vital revenues to the tax base for the county, which helps support county services for all residents.”