Mississippi Power agrees not to raise rates to offset Kemper costs

GULFPORT, Mississippi — Mississippi Power has agreed to forego raising customer rates to offset the costs of the embattled Kemper County plant.

Originally slated to carry a price tag of $2 billion, the cost of the plant now stands at $7.5 billion, with Mississippi Power and its parent company, Southern Company, absorbing $6 billion of that cost, according to a release from the company Tuesday morning.

In June, Mississippi Power announced it was suspending the start-up of the coal gasification portion of the plant. At that time, the Mississippi Public Service Commission ordered the company to settle the Kemper issue by re-licensing the facility as a natural gas plant and assuring there would be no rate increase to customers tied to the Kemper facility.