Mississippi Power operates both coal- and gas-fired power plants across the state and there has been a recent push nationwide to increase the number of power plants in operation to meet a surge in demand, including for new data centers coming online.

Proponents said methane, marketed as natural gas, is more reliable at night when solar is not available and when there is no wind turning turbines.

Dennis Wamsted, energy finance analyst at the Institute for Energy Economics and Financial Analysis, said a new report found utility companies, developers and even regulators have rushed to approve gas projects without fully considering the risks.

"Those new gas-fired power plants pose a significant risk for consumers because of the potential for really significant price spikes in the cost of the fuel, which get passed along to consumers," Wamsted outlined.

The price of methane is linked to the global market and prices have spiked due to the war in the Middle East. Using methane to power homes and businesses also sets back efforts to mitigate climate change.

Wamsted noted solar, wind and battery storage combined are just as reliable as electricity generated from methane or coal. But unlike coal and methane, energy from the sun and the wind comes with no price tag and is not tied to global markets. Wamsted stressed it means you know from day one what the costs will be for ratepayers.

"Fuel costs for gas-fired generation over the project's entire operational life need to be clearly factored into the decision process," Wamsted contended. "Those are costs that tend to get ignored."

The Tennessee Valley Authority is planning to build a new 500-megawatt natural gas power plant in the Magnolia State.

Source: Public News Service