Combined Cycle

Southern Co. raises estimated cost and delays start of Kemper County coal-fired plant

Southern Co. stated in a federal filing Tuesday that its Mississippi Power unit has raised the estimated cost of its coal-fired Kemper County Energy Facility to $4.02 billion and delayed the start-up date to the fourth quarter of 2014, according to a report from Reuters.

The company stated the delay for the integrated gasification combined cycle plant was caused by “lower-than-planned installation levels for piping as well as abnormally wet weather,” Reuters reported.

Southern Co. stated in a filing earlier this month the completion date for the project would be moved from May until sometime later in 2014, causing it to become ineligible for $133 million in tax incentives. In July, the company had boosted the cost estimate to the plant to $3.87 billion, according to Reuters.

Southern Co. also stated in the filing that Mississippi Power could experience additional schedule extensions or construction cost increases with respect to the Kemper power plant, according to the report.

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