Monitor: Lignite Plant $366 Million Over Budget

By: The Associated Press
By: The Associated Press

Mississippi Power Co. has told regulators that the power plant it is building in Kemper County is $366
million over budget.

The overrun would push the total cost of the Coal-fired power plant being built by the unit of Atlanta-based Southern Co. to $2.76 billion. That's only $110 million short of the $2.87 billion
cost cap imposed by the Mississippi Public Service Commission.

The overrun was disclosed May 10 to the firm hired by the PSC to monitor construction.

The plant is supposed to burn a soft form of coal called lignite that will be mined nearby.

Its construction could lead to a big rate increase for
Mississippi Power's 193,000 customers.

Regulators will consider Mississippi Power's request to increase rates to pay for the new plant June 22.

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  • by waterman on Jun 15, 2012 at 08:47 PM
    Better get your candles and wood burning stoves. By the time Mississippi power gets through with this the working taxpayer will not be able to run electricity in their homes, they will be paying higher rates for all those on government aid. I guess the SEIRRA CLUB called this one right. Go natural gas.
  • by planet earth on Jun 15, 2012 at 05:37 PM
    budgets plus politicians equals overages. please list your name if you are surprised by this. this will probably not be a long list. and remember the only difference between the republican party and the democratic party is the special interest money that supports them.
  • by watching on Jun 15, 2012 at 06:22 AM
    I've been a skeptical supporter of this project, but this news makes me lean a little towards "BAD IDEA" side. I think it would have happened with Dems or Reps, so making it a Political issue is questionable. I think it was a Corporation move, and it is looking like a bad one.
  • by cw on Jun 14, 2012 at 10:28 AM
    366 million over budget--seirra club drops law suit strange? just something to think about.
  • by RN Location: Newton County on Jun 14, 2012 at 04:34 AM
    Stop crying about the shareholders. Without them most of us would be in the dark. Investments are what has built America. Just a bunch of greedy individuals wanting something for nothing. For the record I do not have any southern company stock
  • by bobby on Jun 13, 2012 at 09:05 PM
    This plant was not was a scam to get more money out of the people of ms.this is what happens when the government is in bed with big business.
  • by what? Location: miss on Jun 13, 2012 at 02:09 PM
    its funny this news comes out in the middle of peak season summer when the the bill is highest gas is cheaper but they want to raise the cost of electricity sound like they doctored the books how can they be that far off with their numbers/bids,etc. doesnt seem to kosher
  • by Fed up with Good Ol' Boys on Jun 13, 2012 at 12:41 PM
    State politicans, MS Power, and KBR all are scam artists. Most of these temp construction positions are filled by non-locals from KBR. This plant will create a few hundred permanant positions, but MS Power will tell you that most of these will be transplanted to the area. What will happen here is that MS Power's bottom line will get better, KBR gets to milk a job dry, plenty of politicans will get greasy palms, land owners will get paid, and the population will get roughly a 45% increase on thier power bill.
    • reply
      by MS Power = thieves on Jun 14, 2012 at 10:29 AM in reply to Fed up with Good Ol' Boys
      I agree with every thing you said except the part about the landowners getting paid. I happen to be one of the landowners that now has the pleasure of looking out my window and seeing GIANT power lines. The tiny amount of money that I was paid in no way compensated me for the loss of value my home has suffered due to the fact that I'm now next to giant power lines. I also have the distinct pleasure of listening to loaded 18 wheelers fly up and down my road all day long even though this is a low weight limit road and its illegal for them to do so. The Lauderdale Co. Board of Supervisors must be getting kick backs because they refuse to put a stop to it or even put up signs on the road declaring it a low weight limit road. I'm amazed someone hasn't been killed yet...unfortunately its only a matter of time.
    • reply
      by Anonymous on Jun 18, 2012 at 07:46 PM in reply to Fed up with Good Ol' Boys
      Replace state politicians with national level politicians and your just described the purpose of the war in the Middle East. I know I feel safer, soon I will feel better about the power coming into my home. Oh, nevermind. I just moved to an EMEPA area.
  • by Never Forget Location: Lauderdale Co on Jun 13, 2012 at 12:09 PM
    Hope everyone remembers this fiasco when it is time to replace these clowns that refer to themselves as commissioners. Just remember Brandon Presley was the only one to vote against this stupid decision that will benefit not the consumer but will reward the shareholders that should be shouldering more of the cost burden. Remember Lynn Posey and Leonard Bentz were the two spineless bums that have supported MS Power from the beginning with no regard to the constituents that voted for them to look out for the consumer not the conglomerate's interest. Vote the sleazeballs out when the time arrives.
  • by jr on Jun 13, 2012 at 09:53 AM
    It's time for the shareholders to foot some of this bill, not just the rateholders. Not surprise at going over - mistakes costing them more money
    • reply
      by Ed on Jun 13, 2012 at 10:43 AM in reply to jr
      No. It will cost consumers who have no control over the situation and the Corporation says, "AMEN". The Republican Way!
    • reply
      by William on Jun 27, 2012 at 12:35 PM in reply to jr
      I'm a Aouthern Company Shareholder (800 shares)and I think this plant is idiotic. All power plants are dropping coal and going to cheaper cleaner natural gas. And this fiasco doesnt even burn coal but lignite. Should be cancelled before it goes further in the hole
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