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.