Kemper plant costs revised upward again

April 2, 2014

Energy

kemper-update-logo-large_rgb-300x247The cost of Mississippi Power’s controversial plant being built in Kemper County is rising again.

The Southern Co. says it will cost at least another $177 million to finish the power plant it’s building in eastern Mississippi’s Kemper County, pushing the total cost above $5.2 billion

The Atlanta-based parent of Mississippi Power Co. said yesterday that poor weather, unexpected turnover of construction employees and installation inefficiencies contributed. The utility is dividing the costs between $152 million for construction costs and $25 million for additional startup costs.

Mississippi Power says it, and not its 186,000 customers from Meridian to the Gulf Coast, will pay the additional money.

The plant and associated lignite coal mine were originally supposed to cost $2.8 billion.

The utility has now absorbed $1.3 billion in cost overruns, as well as $133 million in federal tax credits that the company is foregoing.

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