Non-profit research group raises red flags on Amazon Web Services deal with the state

MADISON CO., Miss. (WLBT) - The $10 billion Amazon Web Services is expected to partially open by 2027 in Madison County and research non-profit Bigger Pie Forum is sounding the alarm about the deal.

“There are a number of things I’m concerned about. But the main thing is the impact on residential small customers, which I don’t think has been addressed,” Bigger Pie Forum Chairman Kelley Williams explained.

Williams says it limits the protections that are typically in place for the rate payers. AWS will need a lot of power to make the project a reality, but the legislation carves out a fast track for utility approvals to get it off the ground. Beyond that, Williams says it doesn’t let the Public Service Commission have the usual regulation input.

“It’s been cut out of the loop on this by the legislature,” he described.

Williams said he fears it could potentially be a higher Entergy bill.

“The small customers don’t need that,” he said. “They are already getting all the electricity they need and sometimes more than they can afford. But the utility accounting puts part of that cost on the small customers. So, in effect, the small customers are subsidizing Amazon, which is just ridiculous.”

When the bill was presented during the 2024 special session, Senator Josh Harkins noted exemptions to things like not going through the usual approval process for getting utilities in place, but he made this note.

“This effort is strictly to help speed to market, but in no way do they lose their purview to regulate costs and to make sure the costs incurred are to the benefit of the ratepayers,” said Harkins from the Senate floor in 2024.

In our analysis of the bill, it appears Section 22 puts the normal course of oversight in question. It should also be noted the bill is more than 300 pages and filled with legal jargon.

We are continuing to work to get clarification and answers. We’ve reached out to lawmakers and are awaiting more details. We are also told Commissioner DeKeither Stamps will sit down with us for an interview on this topic next week.

Entergy Mississippi sent the following statement.

In 2024, the Legislature passed a bill that allowed Mississippi to land the largest economic development investment in state history. Entergy Mississippi was proud to work with the Governor, Mississippi Public Service Commission, Legislature and Madison County in bringing this transformational opportunity to our state. The legislation:

• Requires that the energy price being charged to AWS must cover the incremental costs to serve the customer, plus additional revenues to benefit all other customers served by Entergy Mississippi, which is the test the MPSC uses when assessing whether to approve a special contract.
• Creates protections where Entergy Mississippi’s existing customers’ future bills will be lower than they otherwise would have been if AWS had not chosen our service area.
• Ensures that the MPSC retains oversight of Entergy Mississippi’s project costs and has the authority to exclude from electric rates any costs that are not prudent or necessary.

Speed to market does not eliminate oversight – the legislation accomplishes both of these objectives. Entergy Mississippi is exempt from the regulatory process typically used to obtain pre-approval of large projects. However, the exemption from bidding laws recognizes the need for speed to market and the limited number of suppliers that can actually satisfy that speed. This does not give Entergy Mississippi a blank check to build excessively priced projects. The impacts to our existing customers are always top of mind, and unreasonable projects don’t benefit our communities.

AWS is paying the costs of the facilities that are being built to serve them. And as a large customer, they will be paying a proportionately higher bill than many of our other customers.

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