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Mississippi Power signs settlement deal on $7.5bn Kemper County energy facility

EBR Staff Writer Published 04 December 2017

Mississippi Power has signed a settlement agreement on the remaining costs associated with the $7.5bn Kemper County energy facility in the US, with the Mississippi Public Utilities Staff, Chevron and Federal Executive Agencies.

The agreement, however, is subject to the approval of the Public Service Commission (PSC).

Mississippi Power president and CEO Anthony Wilson said: “This agreement represents significant compromise from all parties involved, but is an important step to settle all costs remaining on the Kemper project.

“Putting the gasifier portion of Kemper that did not meet our expectations behind us is in the best interest of our customers, company and the state. We are pleased to continue operating an efficient natural gas facility at Kemper which has been serving our customers for more than three years.”

Mississippi Power said that the settlement agreement meets the Public Service Commission directives which include removal of risk to customers for the gasifier and related assets; no customer rate increase related to Kemper; and operation of Kemper as a natural gas facility.

Wilson said that there would be significant changes to its business if this requirement is approved.

Wilson added: “As we adjust to this considerable loss of revenue, our top priority will be to maintain safe and reliable service to our customers.”

Final order from the Public Service Commission on Kemper facility is expected in January, the company said.

After losing $6bn on the 582MW Kemper power plant, Mississippi Power suspended work to complete a unit, which was designed to gasify soft lignite coal.

The suspension came as the Public Service Commission denied the utility’s plan to receive payments from customers for that part of the plant, reported Hattiesburg American.


Image: The 582MW Kemper power plant in the US. Photo: courtesy of XTUV0010/Wikipedia.