April 24, 2013 10:34:05 AM
GULFPORT -- Mississippi Power Company said Tuesday that customers won't have to pay more to cover its Kemper County plant's cost, which has risen from $2.88 billion to about $3.42 billion.
"While we are disappointed that costs have increased, we believe we have done the right thing by remaining accountable to our customers," Ed Day, president and CEO of Mississippi Power, said in a statement.
"Equally important is keeping the promise we made in the settlement agreement with the Mississippi Public Service Commission to limit the total rate base for the plant to $2.4 billion, net of Department of Energy grants and cost cap exceptions."
Mississippi Power said its expenses have risen including labor costs, piping and other material costs, engineering and support costs and productivity decreases.
The Public Service Commission approved a 15 percent rate increase in March, to be followed by a 3 percent rate increase in 2014. The higher rates will allow the company to start paying off debt related to what it calls Plant Ratcliffe even before it begins operations, scheduled for next year.
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