More Delays at Kemper as $250 Million Deadline Looms
Southern Co. has once again moved back the in-service date for the Kemper County integrated gasification combined cycle (IGCC) plant under construction in Mississippi, this time to December 31, the company said in its quarterly report released on November 4.
Though the plant has experienced ongoing construction delays for a variety of reasons, the most recent date carries special significance. According to the report, Southern subsidiary Mississippi Power will have to repay $ 250 million in tax benefits should it miss the December 31 date.
The deadline is a result of provisions in the “tax extenders” act passed by Congress in 2015, which allowed additional depreciation for certain projects. Southern said it expects to receive about $ 370 million in total tax benefits for Kemper under this provision, about $ 250 million of which has already been received through September 30 as a result of quarterly income tax refunds. But if Kemper does not enter service before the end of the year, Southern will have to repay those benefits.…