JACKSON – Mississippi Power Co. said Tuesday it will spend at least another $62 million to finish the power plant it’s building in Kemper County, pushing total costs to nearly $6.5 billion.
The unit of Atlanta-based Southern Co. said the money will pay for the plant’s completion, startup activities and repairs and changes that it decided were needed following testing.
Mississippi Power says it, and not its 186,000 customers, will cover the additional money.
The plant and associated lignite coal mine were originally supposed to cost $2.9 billion at most. The utility is absorbing $2.3 billion in overruns.
Customers are paying 18 percent more for Kemper under an emergency order from the Public Service Commission. That body will meet Thursday to vote on a permanent rate plan.
Under an agreement reached between the Public Utilities Staff and the company, bills could fall by $5 a month for residential customers who use 1,000 kwh of electricity. They would still be paying an additional $18 per month to cover $1.1 billion worth of assets that are now in commercial service at the site. The company would also issue bill credits for extra amounts it has collected in emergency rates, equal to $22 for a residential customer.