Even the VDT has caught on to cost overruns for Kemper Coal and the new nukes at Plant Vogtle.
In Mississippi, the Southern Co. utility took financial losses when the cost of building a new power plant went over budget. In Georgia, another of the company’s projects is going over budget, but it has not yet taken a financial hit.
Southern Company subsidiary Mississippi Power promised utility regulators that it would charge its customers only for $2.4 billion in costs for building a coal-fired power plant in Kemper Country. Those customers will also have to pay off another $1 billion in bonds for the project, though the utility cannot make a profit off that borrowed money.
The utility’s deal in Mississippi has become a point of debate as Georgia regulators consider who should pay for the increased cost of building two more nuclear reactors at Plant Vogtle (VOH’-gohl), southeast of Augusta. Public Service Commissioner Tim Echols said he wants Southern Co. subsidiary Georgia Power to consider a Mississippi-style deal here, and Georgia regulators are carefully tracking financial developments in Mississippi.
“I’m sure when they made that deal they didn’t think they were going to over the cap, but they did,” Echols said.