Southern Co. said additional cost overruns at its proposed coal-gasification plant in Mississippi will result in a $278 million charge to its second-quarter earnings.
Costs for the Kemper power plant increased 13 percent to $3.87 billion from an April estimate of $3.42 billion, the Atlanta-based company said today in a filing with the U.S. Securities and Exchange Commission. Southern can’t recover any costs that exceed $2.88 billion under a settlement it reached with Mississippi regulators earlier this year.
Southern may see additional construction costs or delays with its Kemper plant, the company said in the filing. The company, which is scheduled to report earnings tomorrow, plans to meet a scheduled in-service date of May 2014 for the plant.