Mississippi utility will stop efforts to complete coal plant

JACKSON, Miss. – A Mississippi utility, faced with a regulatory ultimatum, is stopping efforts to complete a first-of-its-kind coal fueled power plant.

Mississippi Power Co., a unit of Atlanta-based Southern Co., said Wednesday that it could lose another $3.4 billion from the Kemper County power plant if it can’t reach a settlement with regulators. Shareholders have already lost $3.1 billion on the $7.5 billion plant.

The closely-watched plant was seen as a model for coal’s future, designed to capture climate-warming carbon dioxide. However, its price ballooned from $2.9 billion originally and it’s more than three years behind schedule. Mississippi regulators earlier this month told the utility to negotiate a deal shielding customers from paying the $3.4 billion.

Mississippi Power says it will keep making electricity in part of the plant burning natural gas.