Cost of Lignite Coal Plant Rises

By: The Associated Press
By: The Associated Press

Cost estimates for Mississippi Power Co.'s mammoth Kemper County plant have risen again.

The company says it now expects the plant to cost $2.88 billion. That's the ceiling of what the Mississippi Public Service Commission has said it might allow the unit of Atlanta-based Southern Co. to charge to customers.

Independent monitors hired by the PSC have also again raised their projected price for the plant, which would mine a soft form of coal called lignite, convert it to a gas and burn it to generate power. The monitors say the plant will now cost $2.82 billion, says Northern District Public Service Commissioner Brandon Presley.

Mississippi Power originally said it thought the plant would cost $2.4 billion, but persuaded the PSC to give it a 20 percent margin of error.

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  • by Easy4U2say on Jul 10, 2012 at 12:50 PM
    Anonymous, you say MS doesn't allow homeowners to sell power back to the utilities, I assume you are referring to net metering. Are you familiar with MS Public Service Comission Rule 29 that requires utilities to purchase electricity from customers who generate an excess? Admittedly the law could be stronger, but we do have one, and it does allow residents to sell power back to the utilities.
  • by jr on Jul 10, 2012 at 04:54 AM
    Mississippi Power Co. asked the state Supreme Court Monday to overturn regulators' rejection of a rate increase. And while that appeal is going on, the company wants the high court to allow it collect the additional $55 million from customers.
  • by Anonymous on Jul 9, 2012 at 07:54 PM
    What is wrong with solar energy? Germany has learned from Japan's woes and is eliminating nuclear power plants. They are promoting solar power cells on homes and private properties. So far they are generating surplus. Too bad Mississippi doesn't allow residents to sell power back to the utilities, like other states. Mississippi could not care less about its people or their progression. Pay up, _______.
  • by Family lives in City Limits Location: County on Jul 9, 2012 at 06:44 PM
    this Plant is really a waist of time and money. I have family in the City Limits that there power bill has already gone up. this is getting out of hand and the price for this thing. they are suppose to bring jobs for local people, but all they have is out of town folks working there. oh well, im glad i am in the County, because i would not be happy about this hole ordeal.
    • reply
      by Anonymous on Jul 9, 2012 at 07:56 PM in reply to Family lives in City Limits
      Wait until they stick the small co-ops with the bill. Where do you think they get their energy?
  • by Sallie H Location: Meridian on Jul 9, 2012 at 06:40 PM
    Wow, the cost has reached the max amount allowed to charge..... Surprise....surprise.....surprise
  • by southerngentlemen on Jul 9, 2012 at 04:10 PM
    Ive never understood why our government and public service companies operate so poorly and seemingly have no business sense. Ive had things built and signed many other contracts in other areas of my life also. These contractual agreements protect both sides. My contractor completes the work we agreed to, he receives the pay we agreed to. There never seems to be any sort of contractual agreement in government or in the public service sector. They hire people before agreeing to any set price and just pay whatever they ask. I guess they dont really care because its not their money theyre spending.
    • reply
      by Anonymous on Jul 9, 2012 at 07:55 PM in reply to southerngentlemen
      Your last sentence hit the nail on the head.
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