8-KOther Events

SOUTHERN CO 8-K Report, Corporate Update (May 10, 2010)

Filed May 10, 2010For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This 8-K filing from Southern Company (SO) pertains to an update regarding the Kemper Integrated Coal Gasification Combined Cycle (IGCC) project by its subsidiary, Mississippi Power. On May 10, 2010, Mississippi Power filed a motion with the Mississippi Public Service Commission (PSC) in response to a prior PSC order. The motion seeks to address the PSC's concerns and propose alternative conditions to allow the Kemper IGCC project to continue. Key proposals include an alternative construction cost cap of $2.88 billion, revised prudence review procedures, and modified financing cost recovery mechanisms for construction work in progress. These proposed adjustments aim to balance regulatory concerns with the project's progression. The company acknowledges that the ultimate outcome remains uncertain and refers investors to previously filed documents for further details on the project's history and financial implications.

Key Highlights

  • 1Mississippi Power filed a motion with the Mississippi PSC on May 10, 2010, regarding the Kemper IGCC project.
  • 2The motion is a response to an April 29, 2010, PSC order and proposes alternatives to its conditions.
  • 3Proposed alternative construction cost cap of $2.88 billion.
  • 4Modified prudence review procedures are suggested.
  • 5Alternative proposal for financing cost recovery on construction work in progress (CWIP) balances under the State of Mississippi Baseload Act of 2008.
  • 6Proposed recovery of financing costs on 100% of CWIP for specific years (2012-2014).
  • 7The ultimate outcome of this regulatory matter is currently undetermined.

Frequently Asked Questions

This 8-K filing provides an update on the Kemper Integrated Coal Gasification Combined Cycle (IGCC) project by Mississippi Power, a subsidiary of Southern Company. It details a motion filed with the Mississippi Public Service Commission (PSC) proposing alternatives to address regulatory concerns and allow the project to move forward.

Mississippi Power's motion proposes an alternative construction cost cap of $2.88 billion, revised procedures for prudence reviews, and modified methods for recovering financing costs on construction work in progress (CWIP), particularly for the years 2012 through 2014.

No, the filing explicitly states that the ultimate outcome of this matter cannot be determined at this time. The company is seeking approval for its proposed alternatives from the Mississippi PSC.

The filing directs investors to refer to Management's Discussion and Analysis and financial statement notes in previous filings, including the Annual Report on Form 10-K for the year ended December 31, 2009, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, for both Southern Company and Mississippi Power.