Mississippi Power requests $600mn for Kemper County IGCC plant

Kemper County integrated gasification combined cycle power plant Mississippi Power Public Service Commission

Mississippi Power asked state regulators for an additional $540 million to build the 582 MW Kemper County integrated gasification combined-cycle (IGCC) power plant, bringing the cost up to $3.42 billion after Department of Energy grants and cost cap exceptions are included. Rising labor, piping and other material costs and lower productivity are to blame for the increase.

“While we are disappointed that costs have increased, we believe we have done the right thing by remaining accountable to our customers,” said Ed Day, president and CEO of Mississippi Power. “Equally important is keeping the promise we made in the settlement agreement with the Mississippi Public Service Commission to limit the total rate base for the plant to $2.4 billion, net of Department of Energy grants and cost cap exceptions.”

Due to the Jan. 24 settlement, investors will have to cover the rest, resulting in a $540 million loss in the first quarter, according to WLOX-TV.

The utility said in a release that the final component of the gasifier was lifted into place, and the water treatment facility and combined-cycle cooling tower are completed. The plant is scheduled to begin operations in May 2014.

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