Grand Gulf offered a shot at prosperity

Published 12:29 am Sunday, July 4, 2010

With very few exceptions, the story of Grand Gulf Nuclear Station is a story of innovation and success.

What remains the only nuclear-fired generator of electricity marked 25 years of safe operation on Thursday and, as Entergy Mississippi President and CEO Haley Fisackerly said, the future looks pretty good, too.

The 11-year construction period that preceded commercial service by the plant in rural Claiborne County brought boom times to the region. Good-paying jobs were available by the thousands as more than $3 billion was spent building what was and remains Mississippi’s largest-ever industrial project.

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A down side was that under existing law, the construction consortium could not use any ratepayer money for the expense. That meant almost all of the investment dollars were borrowed at then sky-high interest rates. Indeed, the largest single cost in the project was interest payments on construction loans — every penny of which was passed through to ratepayers once the reactor was fired up.

It’s controversial, but Mississippi and Louisiana — both courting new power plants — have changed their laws to allow utilities in the future to “front load” some construction costs on ratepayers in the name of shielding them from excessive rate increases.

Another down side is the lingering resentment in Claiborne County, where a majority of the 12,000 residents remain mired in poverty and the jobless rate is often among the highest in the state.

Under law existing when Grand Gulf was built, all property taxes were paid to Claiborne County and to its county seat, Port Gibson. Because the state sets an even assessment rate for utility plants based on valuation, Grand Gulf was paying $16 million to a county where the entire operating budget had been less than $1 million. Suffice it to say problems ensued.

Eventually, the Legislature opted to allot the two local entities only half the Grand Gulf property taxes and spread the remainder on a pro rata basis to towns and cities where ratepayers were buying Grand Gulf’s expensive electricity.

Even with the split, however, Claiborne County and Port Gibson have received more than $300 million during the past 25 years and, frankly, officials there have failed to parlay the windfall into better times for the people.

Now on the back burner is a proposal to add, eventually, a second reactor at Grand Gulf. It would be a much-welcomed economic windfall to see the projected cost, $5 billion, spent in this region. And, we would hope, citizens would insist on more accountability for the increased tax dollars that would result.