Mississippi Power provides Kemper Project update
GULFPORT, Miss. – Mississippi Power, in its monthly meeting with the Mississippi Public Service Commission (PSC) Independent Construction Monitors, reports the Kemper plant construction is progressing on schedule and continues to be the best generation option for customers. The plant will be on line May 2014 and immediately begin saving customers on fuel costs.
The construction costs are currently projected to be approximately $2.76 billion or 15 percent above the original construction estimate prepared in 2009. The PSC established a cost cap of $2.88 billion for plant construction.
Mississippi Power will deliver additional economic value for the Project from increased byproduct sales, such as CO2, and savings from lower financing costs. Because of these benefits to customers, the new estimate will not increase the rate impact of Kemper.
“We are committed to bringing the Kemper Project on line, within the cost cap, to provide clean, safe and reliable energy to our customers,” said Cindy Duvall, company spokeswoman. “We work every day to find ways to bring value to our customers while preparing to meet their future energy needs.”
Mississippi Power, a Southern Company subsidiary, serves approximately 188,000 customers in 23 southeast Mississippi counties.
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Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning completion of the Kemper integrated coal gasification combined cycle (“Kemper IGCC”) facility, estimated costs of construction of the Kemper IGCC facility and related customer price impacts. Mississippi Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Mississippi Power; accordingly, there can be no assurance that such suggested results will be realized.
The following factors, in addition to those discussed in Mississippi Power’s Annual Report on Form 10-K for the year ended December 31, 2011, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the impact of recent and future federal and state regulatory changes, as well as changes in application of existing laws and regulations; current and future litigation, regulatory investigations, proceedings, or inquiries; available sources and costs of fuels; ability to control costs and avoid cost overruns during the development and construction of facilities; advances in technology; state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery mechanisms; regulatory approvals and actions related to the Kemper IGCC facility, including Mississippi Public Service Commission approvals, potential U.S. Department of Energy loan guarantees, the South Mississippi Electric Power Association purchase decision, utilization of investment tax credits, and the outcome of any further proceedings regarding the Mississippi Public Service Commission’s issuance of the certificate of public convenience and necessity; the ability of counterparties of Mississippi Power to make payments as and when due and to perform as required; and the impacts of any potential U.S. credit rating downgrade or other sovereign financial issues, including impacts on interest rates, access to capital markets, as well as potential impacts on the availability or benefits of proposed U.S. Department of Energy loan guarantees. Mississippi Power expressly disclaims any obligation to update any forward-looking information.
For further information: Cindy Duvall 228.865.5543 or 1.800.821.6383 [email protected]