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.