Class-Action Lawsuit Filed Over Progress of Kemper Plant

By Editors of Power Engineering

A class action lawsuit has been filed against Southern Company over the nearly-operational Kemper County coal gasification plant.

The suit, filed by Robbins Gellar Rudman & Down LLP, alleges Southern Company officials “made false and misleading statements and/or failed to disclose adverse information regarding the progress of the Kemper Plant, assuring investors that the project would be completed by the critical May 2014 deadline, even when cost overruns and other delays began to materialize,” the Sun Herald reported.

Mississippi Power, a subsidiary of Southern Company, last announced the Kemper County power plant would begin operations by January 31. The announcement noted the two gasifier units need to become synchronized in order to reach full operations. Both have successfully produced electricity individually.

Kemper County’s first-of-its-kind design was originally announced in 2006 with a budget of $2.9 billions, though delays have pushed that cost beyond $7 billion.

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