Mississippi Power files updated assumptions on Kemper project, confirms costs and schedule remain on target

Gulfport, Miss. – As part of its ongoing review process for the Kemper County energy facility project, Mississippi Power filed updated assumptions to both cost and schedule in its monthly construction report to the Mississippi Public Service Commission. The company confirmed that the project is on schedule to be completed in May 2014 and that cost projections remain on target to stay at or below $2.88 billion. Additionally, all long-term contracts for sale of byproducts in the gasification process have been finalized, which will produce more customer value than originally projected when the plant was certified.

Overall, the project is more than 70 percent complete. The plant is scheduled to begin initial start-up next summer and commercial operation in 18 months.

“With engineering and procurement nearing completion, construction progressing on schedule and key startup milestones approaching quickly, Mississippi Power’s projections are that cost and schedule targets are achievable,” said Tommy Anderson, vice president of generation development for Mississippi Power. “As the project enters the peak construction phase, completion of design and on-time delivery of plant components is critical to ensuring the project remains on schedule and construction crews are working as efficiently as possible.”

Recently, installation of the gasifier and carbon dioxide absorbers began on-site. These key components are vital to reducing air emissions and delivering a diminished footprint on the environment. And, the natural gas and effluent water pipelines, as well as critical transmission facilities have been completed on time or ahead of schedule.

Nearly 12,000 direct and indirect jobs are being created during construction and more than 1,000 direct and indirect permanent positions once the facility opens. This will deliver a tremendous economic boost to the state of Mississippi. Approximately 270 Mississippi companies have a significant role in the construction of the project.

To watch the company’s most recent construction update video and to learn more about how the project is going to deliver 21st century coal technology to Mississippi Power customers, visit www.mississippipower.com/kemper.

Mississippi Power, a Southern Company subsidiary, serves approximately 186,000 customers in 23 southeast Mississippi counties.