Southern (NYSE:SO) utility Mississippi Power now expects that the 580-MW Kemper County integrated gasification combined-cycle (IGCC) power plant will open in January 2017 rather than by the end of 2016.
While it remains possible to meet the prior projected in-service date of Dec. 31, 2016, Mississippi Power now expects that the Kemper IGCC will be placed in service during January 2017, the utility said in a Dec. 2 news release.
Extension of the in-service date for the plant beyond Dec. 31, 2016 is currently estimated to increase costs, subject to the cost cap, by $25m-to $35m per month.
If they occur, these costs will not be paid by Mississippi Power customers. Any revisions to the cost estimate are expected to be reflected in the Kemper IGCC Project Monthly Status Report through November 2016, which is expected to be filed in early January 2017.
Further, the company has also revised its cost estimate subject to the cost cap for the Kemper project by $6.4m. These increased costs will be paid by Southern and Mississippi Power – not by Mississippi Power customers.
In November, the project reached another significant milestone when it generated electricity using syngas from Mississippi lignite coal on the project’s second gasifier.
The schedule adjustment is needed for maintenance of the plant’s gas clean-up system and final readiness for gasifier A, the utility said. The remaining schedule reflects the time needed to complete maintenance, resume gasification of lignite on both of the project’s gasifiers and integrate the operation of all plant systems necessary for both combustion turbines to simultaneously generate electricity with syngas.