Kemper plant cost nears $5 billion with latest overrun

Mississippi Power Co. says the expected cost of the power plant it’s building in Kemper County has risen another $150 million because of schedule delays.

That pushes the total cost of the plant, a coal mine and associated pipelines to almost $5 billion. The complex was originally projected to cost about $2.8 billion.

Atlanta-based Southern Co., the parent of Mississippi Power, says it will write off the additional $150 million when it announces quarterly earnings Wednesday. It’s the third straight quarter Southern has charged off Kemper costs, and shareholders will have absorbed $1.14 billion before taxes.

Also Tuesday, the completion date for what the company calls Plant Ratcliffe was pushed back until the last three months of 2014. Mississippi Power spokeswoman Christy Ihrig said it costs $15 million to $25 million for every additional month of construction, which is the main reason the cost also went up.

AP
10/29/13