Friday, May 29, 2026

Punt! (Updated)

So much for making tough decisions.   Such can be said after the Public Service Commission declined to issue a declaratory opinion on whether Prado AI can build a gas-fired power plant for an AI data center in Ridgeland.  Developer Gabriel Prado owns Prado AI. 

 Prado AI asked the Commission on March 2 to issue a declaratory opinion on whether the company can produce its own electricity solely to serve its needs without regulation by the Commission. The generation facility will not interconnect with the existing electrical grid.  

The company stated it will not sell nor meter any electricity to the public. The company plans to lease the data center to tenants. Thus electricity will be available to those who sign a lease and pay rent, similar to a rental agreement in an apartment complex. 

The request predictably stirred up a hornets nest among Mississippi's power companies.  Entergy, Mississippi Power, Delta Electric, and a slew of electrical coops filed objections to Prado's request, arguing the project should be treated as a public utility.  Although Prado AI claimed it would not charge tenants for electricity, the tenants themselves should be considered "the public".  Thus Prado AI should have to go through the same approval process as other public utilities.  Entergy pointed out the project would occur in its certificated area as it defended its monopoly.  

The Public Utilities Staff and Attorney General refused to issue opinions to the PSC on the matter, stating Prado AI had not provided enough information.  The PSC agreed and said it would not issue the declaratory opinion.  The order states: 


The Commissioner "hereby declines to issue an opinion in this matter for the reasons enumerated above," concluded the Commission. Earlier post with copies of all PSC filings.

Kingfish note: Prado AI will probably now move forward on the project.  The company's March 2 request states: 

Should the Commission exercise its discretion to decline this request under Rule 24.103.4, Prado AI will presume that the plain wording of the statutory exception to the definition of public utility in Section 77-3-3(d) governs and that Prado AI's power generation facility is exempted from regulation by the Commission.  

It will not be surprising to see the power companies run to court.   



25 comments:

Anonymous said...

Stamps is all talk.

Anonymous said...

What a bunch of spineless turds.

Anonymous said...

So their answer is....there may be a lawsuit in the future and we don't want to be a part of it. Let the lawsuit and judge make the ruling.

Anonymous said...

I didn’t know Al Stamps was on the staff!

Anonymous said...

I can’t imagine Prado not being transparent!

Anonymous said...

Prado should get Haley Fisakerly to teach them how to bypass the commission.

Anonymous said...

I stand for all landlords when I say, let us build our own power plants and grids. We can simply put them on site at our apartment buildings. This is government interference at its worst!!!!

Anonymous said...

Don't think they punted, they actually look to have done what was required. Prado asked for an advisory opinion, which I'm not sure is within their jurisdiction. Was a reasonable thing for Prado to do, but it looks like the PSC is saying this is 'not ripe' and opining is not within their wheelhouse.

Anonymous said...

What does this mean for Entergy?

Anonymous said...

They don’t want to upset their benefactors.




Anonymous said...

Oh, please. Not ripe? This damn PSC has let utility fruit rot up and down the state of Mississippi. What a freaking cop out.

Anonymous said...

I heard yesterday that the average Mississippi household is already paying about $11 per month extra to Entergy for Amazon's data center development. If true, we consumers should be investors and/or shareholders of Amazon and entitled to our cut of the profits.

Anonymous said...

Power to the people!

Anonymous said...

This decision will continue to spark debate.

Anonymous said...

The city of Ridgeland should pay close attention to what is happening with the xAI facility in Southaven, as there are numerous complaints about noise from all the generators. This development should only be considered in an area zoned for industrial. This will probably become a heated issue in Ridgeland.

Anonymous said...

This matter is of current interest and generates powerful emotions. Opponents and advocates both are electrified over the question, burning the coal in strategy sessions stretching long into the night.

Anonymous said...

For those concerned about the impact on residential and commercial energy bills, Prado AI's solution of generating behind-the-meter power to be self-sufficient is the answer. Now, what about the cooling water supply?

Macy Hanson said...

I wonder how much wasted legal bills were incurred for the PSC simply to punt on issuing an advisory opinion? Advisory opinions are generally a waste of money. You cannot rely on them as legal authority. I mean, if you have deep enough pockets, then sure, you can play AO roulette.

Anonymous said...

Ridgeland needs to stop with the data centers before they ruin Ridgeland

Anonymous said...

This is not an issue in Ridgeland. Generators will only be used in times of a power outage, and the generators are soundproofed and inaudible. The neighboring public has already visited the site and verified this for themselves.

Anonymous said...

Very interesting article on Prado, including the AI facility idea.

https://mississippilead.com/news/prado-ai-entergy-mississippi-power-struggle.html

Anonymous said...

@ 9:53 AM. The Prado AI facility is nothing but a proposal at this point. Exactly what did these people supposedly see with their imagination on their site visit?

Anonymous said...

1:42 PM I guess you missed the Amazon data centers being built in Ridgeland. They’re at the corner of West County Line and Highland Colony.

Anonymous said...

The AWS data centers don’t generate their own electricity.

Anonymous said...

@12:10 Good article. Thanks for sharing.


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