Miss. Power CEO: Kemper project near completion

Published 4:09 pm Thursday, October 6, 2016

Despite numerous delays and cost overruns, Mississippi Power’s Kemper County plant project is progressing and will be fully operational by year’s end, according to the company’s CEO and president.

Anthony Wilson gave an update on the project as guest speaker at the annual Meridian Community College Foundation President’s Roundtable Luncheon Thursday at MCC.

“Nothing about this project is easy,” Wilson said. “We all know that. We’ve extended the schedule, and the cost is higher than we originally thought it would be. But, to do something that really matters, to do something that’s never been done, often takes more time and more money than you think.”

The company announced this week another $33 million in cost overruns for the power plant. The latest delay raises the total estimated cost of the project — which is more than two years behind schedule — to about $6.9 billion, Mississippi Today reported.

Wilson said the cost overruns won’t be passed on to Mississippi Power customers, but to shareholders.

“That’s significant,” he said.

Wilson said the plant was built in Kemper County because of the availability of lignite, which is used as a fuel source.

“This country has an abundance of coal – it’s probably our largest natural resource. In Mississippi, we have an abundant source of coal called lignite…which is a form of coal that has a lot of moisture in it. Moisture and coal typically don’t go well together – that’s why lignite has never been mined or used. So the technology we’re building at the Kemper facility actually likes moisture in coal. That’s why this facility, and this location, was chosen.”

The plant has three parts: the gasifiers, the gas cleanup section and the power generation station. Wilson said the power station is finished and has been producing electricity for two years. The gasifier, which is proprietary to Mississippi Power, is also operational, he said. The plant’s first gasifier started converting lignite to syngas in July, and the second one began operating in September. The plant currently runs on natural gas.

The company expects the middle section – the gas cleanup part – to be finished this year, allowing electricity to be made from lignite, Wilson said.

“I know that will be a relief to us, and a relief to this community,” he said.

Wilson said once it is completed, the project will have created 500 permanent jobs. Most of the jobs – 300 to 350 – will be at the plant, while the remainder will be at the coal mine.

“They will be forever jobs; they will be high paying jobs, and they will be a benefit to this area of the state for a long time,” he said. “We’re excited to be a part of that.”

In other comments, Wilson spoke on the importance of education, saying “The Meridian Community College Foundation shares our vision of doing impossible things, but doing things that matter.”

The luncheon marked the 20th anniversary of MCC tuition guarantee program, which offers every graduate of a Meridian or Lauderdale County high school the chance to go to the college without paying tuition. More than 6,000 students have been helped since the program started in 1996.