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Cost of Kemper plant has gone up again. Yes, again.

Mississippi Power increased the estimated cost of the Kemper energy facility in its September and reported it still anticipates getting the facility operational on lignite by Nov. 30.
Mississippi Power increased the estimated cost of the Kemper energy facility in its September and reported it still anticipates getting the facility operational on lignite by Nov. 30.

Mississippi Power added another $29 million to the cost of the Kemper County energy facility in its September report to the Mississippi Public Service Commission, and the company said it still hopes to have the plant operational on lignite by Nov. 30.

The additional costs includes $8 million for modifications and improvements for operational readiness and start-up, and $21 million for post-in-service costs expected to be subject to the cost cap.

Mississippi Power said it does not intend to seek rate recovery for any costs that exceed the $2.88 billion cost cap.

Earnings posted by Southern Co. and Mississippi Power on Monday show total pre-tax charges to income for the estimated probable losses on the Kemper IGCC of approximately $63 million ($39 million after-tax) during the third quarter 2016.

The next steps for Kemper are continued testing and production of electricity using clean syngas from gasifier “A” and generation of electricity using clean syngas from gasifier “B,” which are scheduled to occur by mid-November.

If integrated operation of both gasifiers does not occur by mid-November, the company said the expected in-service date and cost estimate for Kemper likely would require further revision, which would add $25-$35 million a month to the cost.

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