Kemper coal-fired power plant cost jumps $177M

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Southern Co.’s (NYSE: SO) Kemper County, Miss., coal-fired power plant project will exceed its already over budget of $5 billion, by $177 million.

The project was originally budgeted for $2.4 billion but Kemper's cost increased to more than $5 billion because of changes in design and miscalculations.

Southern Co. said in a Securities and Exchange Commission filing the cost hike is due to weather and labor issues, citing “decreases in construction labor productivity at the Kemper IGCC due in large part to adverse weather, unexpected excessive craft labor turn-over, and unanticipated installation inefficiencies.”

In 2013, the company lost $133 million in tax-related credits for the project due to labor and weather, according to Biz Journals.

When completed the 582-MW plant will capture carbon dioxide emissions.

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