MIDDLE SOUTH <MSU> GRANTED MISSISSIPPI STAY
Middle South Utilities Inc said the
U.S. Supreme Court granted the company's Mississippi Power and
Light Co's request for stay of a Mississippi Supreme Court
ruling blocking a portion of the utility's retail rates.
    In February, the state court had returned to state
regulators a case involving the recovery of Grand Gulf one
nuclear power plant costs at the rate of 28 mln dlrs per month.
These rates, some of which were deferred for future phase-in,
were granted by the state regulators in September 1985 based on
Federal Energy Regulatory Commission allocation of the power
plant's cost among Middle South's subsidiaries.
    Middle South said one condition of the stay is the posting
of a bond that is suitable to the Mississippi Supreme Court.   
 Middle South said the Supreme Court stay brings stability to
Mississippi Power and Light's situation and "removes the
possibility of MP and L's imminent insolvancy while the case is
proceeding on the merits."
    The company said it expects its subsidiary's case to
prevail on the merits, resolving for all Middle South System
companies "issues concerning the prudence and retail rate
recovery of costs associated with the Grand Gulf One nuclear
unit."
 Reuter
