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Mississippi Power says more Kemper IGCC schedule revisions possible

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Mississippi Power says more Kemper IGCC schedule revisions possible

Thecost estimate for MississippiPower Co.'s integrated gasification combined-cycle generationproject increased slightly, according to an April 1 filing, and the utilitysuggested that further schedule revisions could be on the way for when theplant comes fully online.

Theproject, located in Kemper County, Miss., is currently scheduled to enter commercial operation duringthe third quarter of 2016, running on syngas fuel derived from onsite lignite.

"During March 2016,Mississippi Power has continued to conduct repairs and modifications to therefractory lining inside each of the gasifiers and to inspect and evaluate theneed for additional refractory work, which could impact the projectedin-service date and/or the related cost estimate for the Kemper IGCC," theutility said in the filing. "Any related updates to the schedule for eachgasifier would be reflected in the Kemper IGCC Project Monthly Status Reportthat Mississippi Power expects to file in late April 2016."

Thefacility, formally known as PlantRatcliffe, has been producing power from natural gas .

TheSouthern Co.subsidiary estimated any extension of the in-service date beyond Aug. 31, 2016,will cost $25 million to $35 million per month. "However, additional costs may be required for remediationof any further equipment and/or design issues identified," MississippiPower stated. The utility estimates the total project cost for Kemper at $6.66billion, according to the report filed April 1, up from $6.64 billion in its Feb.28 filing. (Mississippi Docket 2009-UA-14)