Mississippi Power Seeks Approval to Build IGCC Power Plant With Carbon Capture and Sequestration
first advanced gasification generating facility with carbon capture capabilities in Mississippi and one of the first in the country

EDITOR'S NOTE: The information contained in this release is accurate. A kill placed on the news release earlier was because the information was posted prematurely, not because of erroneous information.

GULFPORT, Miss. - Jan. 16, 2009 - Mississippi Power today filed for a certificate of public convenience and necessity at the Mississippi Public Service Commission (MPSC) to build a 582-megawatt Integrated Gasification Combined Cycle (IGCC) power plant in Kemper County. The state-of-the-art plant represents the first advanced gasification generating facility with carbon capture capabilities in Mississippi, and one of the first in the country.

The new plant is necessary for Mississippi Power to meet the needs of its customers in Mississippi and to help reduce the cost of fuel to those customers.

"This plant will diversify our fuel sources and will produce energy at lower and more stable costs than any other fossil fuel option," said Anthony Topazi, Mississippi Power president and chief executive officer. "By creating an additional fuel alternative -- Mississippi lignite -- this project creates significant energy cost reductions for our customers, such that over its life, the energy savings more than offset the cost of building the plant." He noted that along with IGCC technology, a diverse portfolio of generation resources such as renewable biomass, and energy efficiency and conservation initiatives, all play a crucial role in meeting customers' rising electricity needs.

"I know of no other place in the country where all of the conditions come together like they do in Mississippi for such a value-creating project," Topazi said. "The Kemper County IGCC offers our state a leadership role in providing environmentally responsible electricity and in creating energy independence for Mississippi."

Mississippi lignite is an affordable, abundant natural resource that is largely unused. The proposed plant will use lignite coal that will be mined locally in Kemper County.

"We have studied the fuel sources and generation resource options available to us, and have determined that the IGCC technology, using locally mined Mississippi lignite, is the best option to provide affordable and environmentally responsible electricity for our customers' growing needs," said Topazi. "The other benefits to the State of Mississippi are numerous including new jobs, new tax revenues, development of Mississippi lignite as a dependable and stable fuel source, and an additional source of carbon dioxide for enhanced oil recovery in the state."

The Kemper County IGCC Project, estimated to cost approximately $2.2 billion, will be owned and operated by Mississippi Power and will serve the growing demand for electricity among Mississippi Power's customer base. Pending MPSC approval, construction is expected to begin in 2010 with operational start-up of the facility expected by late 2013.

IGCC is a coal gasification plant integrated with a combined cycle power plant specifically designed to work with each other. By providing carbon capture and sequestration, the facility will lead the way to lower-carbon electricity production.

Mississippi Power expects the Kemper County IGCC project to create approximately 260 new permanent jobs from the plant and mine operations, plus 1,000 jobs during peak construction. Revenue from the project will enhance local schools, lower property taxes, and help equip first responders.

Mississippi Power, a Southern Company subsidiary, serves customers in 23 southeast Mississippi counties. In partnership with the U.S. Department of Energy and others, Southern Company has for many years conducted research on advanced clean coal technologies at the Power Systems Development Facility (PSDF) near Wilsonville, Ala. Through its involvement in the design, construction, operation and management of the PSDF Southern Company has years of experience with coal gasification technology.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Mississippi Power's estimated construction cost of the Kemper County IGCC Project is a forward-looking statement and the actual construction cost may vary materially from this estimate because of changes in such factors as: business conditions; environmental statutes and regulations; the cost and efficiency of construction labor, equipment, and materials; the cost and availability of capital; and other risk factors described in Mississippi Power's Annual Report on Form 10-K for the year ended December 31, 2007, and subsequent securities filings. 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. Mississippi Power expressly disclaims any obligation to update any forward-looking information.

SOURCE: Mississippi Power

Web site: http://www.southerncompany.com/


Media Contact: Cindy Duvall, MPC Corporate Communications, 228.865.5543 or 1.800.821.6383, cwduvall@southernco.com