Mississippi Power Co., a unit of Southern Co. (NYSE: SO), told stockholders Monday that an ongoing review of costs has identified at least $160 million more in cost increases at the 582 MW coal-fired Kemper County Energy Facility being built in Kemper County, Miss., according to the Associated Press.
The additional overruns could increase the cost of the plant, adjoining lignite mine and associated pipelines to $4.45 billion – more than $1.1 billion above original estimates for the facility, according to the Associated Press.
The Associated Press reported Southern Co. shareholders would not absorb any cost increases. The company agreed to shield customers from further cost increases in a January settlement with Mississippi regulators.
A spokeswoman for Mississippi Power told the Mississippi Public Service Commission the utility still believes the plant could be completed in 2014, but declined to answer additional questions, according to the Associated Press.
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