Mississippi Power’s monthly status report filed with the state Public Service Commission includes an additional $40 million pre-tax ($25 million after tax) estimated probable loss for the fourth quarter of 2013.
The company will not seek to recover the increase from customers. Customers will not pay a penny of cost above the limit agreed to by regulators and legislators.
As the company has been reporting, productivity, start-up and systems integration remain the most significant risks to cost estimate and schedule. The revised cost estimate reflects an increase in the contingency for risks associated with start-up activities.
“It’s normal for a project this size to see estimated fluctuations from month to month,” said CEO Ed Holland. “The team worked tirelessly to stay within the construction budget for the quarter, and I applaud them for their efforts.”
Holland said that tremendous progress continues onsite and the project is scheduled to be placed into service in the fourth quarter.