Due in part to the many cost overages and delays in the Kemper County Energy Facility carbon capture and storage project, developer Mississippi Power and parent company Southern Co. have received downgrades to their debt rating from Fitch Ratings, the Associated Press reported Friday. Southern Co.’s rating dropped from A to A-. Mississippi Power’s rating fell to BBB from BBB+ due to “significant stress” because of the plant, the wire service reported.
After a new $35 million cost estimate overage, the new-build, post-combustion CCS facility in total is now expected to cost over $6.72 billion, Mississippi Power said in its latest monthly filing with the Securities and Exchange Commission. That is not far from triple the original $2.4 billion expense estimate for the plant, which is three years overdue. The facility is expected to reach full operation in the third quarter of this year.
A representative from Mississippi Power did not respond to a request for comment.
