Operations and start-up of the lignite gasification portion of the Kemper County Energy Facility, marred by exorbitant delays and cost overruns, and will be suspended immediately, Mississippi Power announced on June 28.

The Southern Co. subsidiary plans to continue running a combined cycle gas turbine (CCGT) plant that was completed as part of the $ 7.5 billion project three years ago, pending the Mississippi Public Service Commission’s (MPSC) decision on future operations.

Southern Co said the step was “appropriate” to manage skyrocketing costs, given the economics of the project, and the MPSC’s recent intent to establish a settlement docket to address matters related to the future operation of the gasifier portion of the project.

The proposed settlement docket is to be established by the commission on July 6. “The company will make any future announcements as to the status of the project based on the outcome of that process or future Commission action,” Southern Co. said.

Jack Bonnikson, a Southern Co.…

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