Home » NEWS » Economic Development » Kemper overruns drag down Southern Co. stock

Kemper overruns drag down Southern Co. stock

kemper-update-logo-large_rgb-300x247JACKSON, Mississippi — Troubles at the Kemper County power plant that Mississippi Power Co. is building are so great that they’re dragging down the stock of parent Southern Co.

Company stock has fallen four straight days since Southern disclosed another $196 million in overruns related to higher construction costs and delays in the project.

Mississippi Power says it will pay the additional money — not its 186,000 customers from Meridian to the Gulf Coast. However, the company says it also will lose $120 million to $150 million in tax benefits by not completing the complex this year. Mississippi Power says it will change proposed rates to recover that money.

Monday, Swiss investment bank UBS cut Southern’s stock to a “sell” rating, citing Kemper.

The coal-fueled power plant is now projected to cost $5.5 billion.


… 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

About Associated Press

Leave a Reply