Mississippi Power Co.’s Kemper County coal-gasification plant cost overruns cost parent Southern Co. 11 cents a share in the third quarter.
Southern Co. said Wednesday that wrote down $93 million for the overruns of the plant in the quarter, whose price tag has reached $6.4 billion, compared with the original estimate of $2.8 billion.
Mississippi Power said on Tuesday that plant will cost another $159 million.
The utility said it would absorb at least $110 million of the overrun, though customers would have to pay $49.4 million to cover interest and other costs, if the Mississippi Public Service Commission approves it, according to the Associated Press.
The Kemper plant cost the parent $112 million for the first nine months of 2015, Southern said in its release.
The plant cost Southern $258 million, or 29 cents a share, in after-tax charges in the third quarter of 2014, and $493 million, or 55 cents per share, in the first nine months of 2014.
Mississippi Power announced last month that the plant wouldn’t go into full operation for possibly as late as June 30, adding to costs.
Nevertheless, the parent said its third-quarter earnings were $959 million, or $1.05 a share, compared with $718 million, or 80 cents, a year earlier.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info