Southern Co.’s Kemper Co. IGCC plant nearing Miss. regulators’ $2.88 bn cap
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16 Aug 2012
Southern Co’s Kemper County plant, a $2.88 billion, 582 MW, integrated gasification combined-cycle (IGCC) plant, has run into legal and regulatory difficulty, highlighting the industry’s difficulty in pursuing a long-term strategy to produce power from a variety of fuel sources in an era of low-cost natural gas.
Only Southern and Duke Energy are building IGCC plants, while more than three dozen other IGCC projects were scrapped due to rising capital costs, carbon legislation delay, and plentiful supplies of natural gas.
The price tag to complete Kemper County has risen in recent months and is very close to a $2.88 billion cap set by state regulators as the maximum amount Mississippi Power will be allowed to recover from 188,000 customers.
