Costs Expected to Rise at Kemper Power PlantBy Daniel Cherry | Published 25 Apr 2013 04:08pm |
It appears Mississippi Power customers won't foot the bill for an additional half billion dollars to build the controversial power plant under construction in Kemper County.
After revising cost estimates, Mississippi Power expects the cost of the plant to rise from 2.8 billion dollars up to 3.4 billion. Company spokesman Jeff Shepard says ratepayers won't be on the hook for the increase.
"We made the determination because we underestimated the quantities and the materials and the labor cost, it doesn't make any sense for us to put those costs onto our customers and so we will absorb those costs."
To help pay for the project the Mississippi Public Service Commission approved a 15 percent rate increase earlier this year with 3 percent more in 2014. Louie Miller with the Mississippi Sierra Club is an outspoken opponent of the project. He thinks this newest cost estimate shows the power plant is too expensive and too risky.
"Southern Company and Mississippi Power have managed an impressive feat with one really poor business decision that they've harmed their customers and now they're harming their shareholders."
Mississippi Power projects the plant will be on online by May 2014.
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