GULFPORT, Miss., Aug. 8, 2016 /PRNewswire/ -- Mississippi
Power continues making progress on the completion of the
Kemper County energy facility. In
July, the project reached its most significant milestone to date
when it converted locally mined lignite to syngas.
The production of syngas, using the transport integrated
gasification technology or TRIGTM, involved operating
the "front end" of the plant and validated the TRIGTM
technology works at commercial scale. The power plant portion, or
the "back end" of the project, is already in service and has been
providing safe, reliable electricity for our customers since
August 2014.
As the company continues start-up and commissioning activities
at Kemper, Mississippi Power
announced today it is revising the facility's scheduled in-service
date to Oct. 31, 2016. The one-month
extension is needed to make mechanical equipment modifications to
the gasifiers' supporting systems, complete the remaining
commissioning activities on the syngas clean-up systems and
integrate all systems necessary to generate electricity.
The company also revised its cost estimate subject to the cost
cap for the Kemper project – since
the last monthly report to the Mississippi Public Service
Commission – to include an additional $43
million related to the schedule extension and start-up
activities, for a total of approximately $81
million recorded for the second quarter of 2016.
All of those costs will be paid by Southern Company and
Mississippi Power – not by Mississippi Power customers.
Mississippi Power's analysis of the time needed to complete
start-up and commissioning activities will continue until the
remaining assets are placed in service.
The Kemper project team
continues focusing on starting up and integrating various systems
needed to achieve the next major milestone – using the syngas to
produce electricity.
Mississippi Power, a subsidiary of Southern Company (NYSE: SO),
produces safe, reliable and environmentally responsible energy for
more than 186,000 customers in 23 southeast Mississippi counties. Mississippi Power earned
the 2015 ReliabilityOneTM Award for outstanding midsize
utility for excellence in storm restoration and recovery efforts as
well as being a leader in reliability, customer service and safety.
Visit our websites at mississippipower.com and
mississippipowernews.com, like us on Facebook, and follow us on
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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. Forward-looking information
includes, among other things, statements concerning the
projected cost and schedule for the completion of construction and
start-up of the integrated coal gasification combined cycle project
in Kemper County, Mississippi
("the Kemper IGCC"). Mississippi Power cautions that there are
certain factors that could 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 fiscal year ended December 31,
2015, and subsequent securities filings, could cause actual
results to differ materially from management expectations as
suggested by such forward-looking information: changes in tax and
other laws and regulations to which Mississippi Power is subject as
well as changes in application of existing laws and regulations;
the ability to control costs and avoid cost overruns during the
development and construction of facilities, which include the
development and construction of generating facilities with designs
that have not been finalized or previously constructed, including
changes in labor costs and productivity, adverse weather
conditions, shortages and inconsistent quality of equipment,
materials, and labor, contractor or supplier delay, non-performance
under operating or other agreements, operational readiness,
including specialized operator training and required site safety
programs, unforeseen engineering or design problems, start-up
activities (including major equipment failure and system
integration), and/or operational performance (including additional
costs to satisfy any operational parameters ultimately adopted by
the Mississippi Public Service Commission ("PSC")); the ability to
construct facilities in accordance with the requirements of permits
and licenses, to satisfy any environmental performance standards
and the requirements of tax credits and other incentives, and to
integrate facilities into the Southern Company system upon
completion of construction; advances in technology; actions related
to cost recovery for the Kemper IGCC, including the ultimate impact
of the 2015 decision of the Mississippi Supreme Court, the
Mississippi PSC's December 2015 rate
order, and related legal or regulatory proceedings,
Mississippi PSC review of the prudence of Kemper IGCC costs and
approval of further permanent rate recovery plans, actions relating
to proposed securitization, satisfaction of requirements to utilize
grants, and the ultimate impact of the termination of the proposed
sale of an interest in the Kemper IGCC to South Mississippi
Electric Power Association; and the ability of counterparties of
Mississippi Power to make payments as and when due and to perform
as required. Mississippi Power expressly disclaims any obligation
to update any forward-looking information.
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SOURCE Mississippi Power