MS Power’s Kemper plant will miss mid-March in-service deadline - WLOX.com - The News for South Mississippi

MS Power’s Kemper plant will miss mid-March in-service deadline

The view 240 feet above Mississippi Power's 3,000-acre investment gives you a glimpse at what six years and more than $6.8 billion have produced. (Photo source: WLOX) The view 240 feet above Mississippi Power's 3,000-acre investment gives you a glimpse at what six years and more than $6.8 billion have produced. (Photo source: WLOX)
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KEMPER COUNTY, MS (WLOX) -

Mississippi Power’s Kemper County lignite plant will miss its mid-March in-service time frame, according to documents the company filed with the Securities and Exchange Commission on Thursday.

The documents said this missed date could add between $25 million to $35 million onto the project’s total price tag.

Mississippi Power said this latest delay was caused by tube leaks in a syn gas cooler for one of its gasifiers. That gasifier was shut down to fix the problem.

Mississippi Power spokesman Jeff Shepard issued this statement around 2:30 p.m.:

As Mississippi Power continues start-up and commissioning activities at the Kemper County energy facility, the company today announced it no longer expects the facility to be in service by mid-March.

The schedule adjustment is related to tube leaks and associated corrective action in the syngas cooler for Gasifier A, one of the project’s two gasifiers. Kemper's Gasifier B is in the process of resuming production of syngas to generate electricity.

Specific updates to the schedule and cost estimate for the facility will be reflected in the Kemper IGCC Project Monthly Status Report through February 2017, which Mississippi Power expects to file by early April.

Extension of the in-service date beyond March 15 is currently estimated to result in additional base costs of approximately $25 million to $35 million per month.

Originally estimated to cost around $3 billion, the total price tag for the project now tops $7 billion. Earlier this month, Moody’s downgraded the power company’s rating.

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