Mississippi Power, a unit of Southern Co. (NYSE: SO), said it now expects the 582 MW Kemper County integrated gasification combined-cycle (IGCC) power plant to cost $2.88 billion, the most that the company is allowed to charge its customers, according to The Associated Press.
Independent monitors hired by the Mississippi Public Service Commission have raised their projected price for the plant to $2.82 billion, the article said.
Mississippi Power initially said the plant was expected to cost $2.4 billion to build. In December 2010, the company proposed a cap on project costs at $3.2 billion, but the PSC reportedly set the cap at $2.88 billion, giving the company a 20 percent margin of error, according to the article.
The Kemper County IGCC plant will burn Mississippi lignite and is expected to be completed in 2014.
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