Mississippi Power Says More Overruns Likely

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Jackson, Miss.
Mississippi Power Co. warned stockholders that costs are still increasing at the power plant it's building in Kemper County.

The unit of Atlanta-based Southern Co. told stockholders that an ongoing review of costs at the coal-fired plant has preliminarily identified at least another $160 million in cost increases.

That could push the cost of the plant, adjoining lignite mine and associated pipelines to $4.45 billion. That's more than $1.1 billion over original estimates.

Mississippi Power spokeswoman Amoi Geter says Southern Co. shareholders would absorb any cost increases. The parent company was hit with $540 million in charges in April.

Southern Co. apparently made the announcement to fulfill pledges of transparency after being accused of hiding earlier overruns.

Geter says exact amounts of new charges will solidify by July's end.