Mississippi Power statement on Kemper facility cost and schedule

Mississippi Power statement on Kemper facility cost and schedule

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As Mississippi Power continues start-up and commissioning activities at the Kemper County energy facility, the company today announced it expects the facility to be in service by the end of May 2017.

The schedule adjustment is primarily related to repairs and adjustments associated with a particulate control device as well as the sour water and ash removal systems. The new schedule reflects the expected time needed for restarting both gasifiers and associated equipment, and to achieve integrated operation of all plant systems to sustain the production of electricity from syngas.

The Kemper plant achieved integrated operation of both gasifiers earlier this year and is producing sulfuric acid and ammonia as well as capturing, transferring and storing CO2.

The company’s March report to the Mississippi Public Service Commission contains an increase in the cost estimate subject to the cost cap for the Kemper IGCC of approximately $38 million. These costs include an adjustment of approximately $22 million related to the schedule adjustment, $8 million related to start-up fuel and $8 million primarily related to the current outage repair. These costs will be paid by Southern Company and Mississippi Power – not by Mississippi Power customers.

Mississippi Power, a subsidiary of Southern Company (NYSE: SO), produces safe, reliable and environmentally responsible energy for nearly 187,000 customers in 23 southeast Mississippi counties. Mississippi Power ranked first in the Southeast Electric Exchange’s 2016 Safety Performance Reports and is consistently recognized as an industry leader in reliability, customer service and safety. Visit our websites at www.mississippipower.com and www.mississippipowernews.com, like us on Facebook, and follow us on TwitterLinkedInGoogle+ and YouTube.