Kemper

New Fraud Allegations Emerge at Troubled 'Clean Coal' Project As Southern Co. Records Multi-Billion Loss

Southern Company CEO Tom Fanning

Southern Co. is accused of fraudulently misrepresenting the prospects for its troubled “clean coal” project in Kemper County, Mississippi in several legal filings this summer.

Southern announced in late July that it was shuttering the troubled “clean coal” part of Kemper after construction ran years behind schedule and the company spent $7.5 billion on the 582 megawatt power plant — over $5 billion more than it first projected.

In a lawsuit filed today, Brett Wingo, a former Southern Company engineer, alleges he warned the company's top executives that it would not be possible to meet key construction deadlines. Management responded by retaliating against him, the complaint asserts, and Southern continued to assure investors and the public that Kemper's schedule and budget targets would be met, then blamed unpredictable factors like the weather when those goals were missed.

'Clean Coal' Officially Dead in Mississippi as Southern Company Battered by Kemper Fallout

By Dan Zegart, crossposted from Climate Investigations Center.

Clean coal officially died in Mississippi today as state regulators voted unanimously to issue an official order denying further money for the Kemper coal plant and beginning a settlement process with its builder, Southern Company.

The order provides a legal framework for the state Public Service Commission's June 21st vote proposing the plant continue to operate on natural gas, as it has since August 2014, instead of spend additional money to try to use Kemper's non-functional multi-billion dollar gasifier to generate power from lignite coal.

“The commission today is taking firm steps towards resolving all substantive matters associated with the Kemper Project,” says the 35-page PSC order.

What does ‘Clean Coal’ CCS Failure in U.S. Mean for Meeting Our 2°C Climate Goals?

Kemper coal project

The concept of “clean coal” was dealt a significant blow as Southern Company announced last week that it was suspending its coal gasification project in Mississippi.

The project was meant to be America’s flagship example for commercial-scale carbon capture and storage (CCS) technology. It was going to be a way to keep burning coal, except without the polluting carbon dioxide emissions.

The failure of this “clean coal” experiment has impacts beyond the US though as the world continues to wait for CCS technology to take off at scale.

BREAKING: Southern Co. Suspends Kemper "Clean Coal" Project, Warns Investors It May Recognize Losses up to $3.4 Billion

Tom Fanning, CEO of Southern Company

In a major blow to proponents of “clean coal” technology, Southern Co., parent company of Mississippi Power, announced in a Securities and Exchange Commission filing today that it's throwing in the towel on efforts to generate electricity from coal and will instead use only natural gas at its flagship Kemper County, Mississippi power plant.

The project, which relied on a “gasifier” to turn a cheap and common grade of coal into fuel, is over, at least for now, Southern said.

“On June 28, 2017, Mississippi Power notified the Mississippi PSC that it is beginning a process to suspend operations and start-up activities on the gasifier portion of the Kemper IGCC.”

Further, Southern warned that it may record a $3.4 billion loss for the project in the second quarter of 2017, depending on how negotiations with state utility regulators unfold.

Mississippi Regulators Veto Any More Money for Southern Company's Kemper 'Clean Coal' Plant in Stunning Vote

By Dan Zegart, originally published at Climate Investigations Center

In a historic vote this morning, Mississippi state regulators slammed the brakes on the Kemper coal power plant, saying they will refuse to ask utility customers to pay anything for Kemper's non-functional multi-billion dollar “clean coal” gasification technology and will re-designate the plant as a natural gas facility.

In a joint press release explaining their unanimous decision, the three Mississippi Public Service commissioners said they seek a solution that “eliminates ratepayer risk for unproven technology and assures no rate increase to Mississippi Power customers,” and that they want Mississippi Power, the Southern Company subsidiary that built Kemper, to consider rolling back existing rates.

“I think it's high time we finally turn the corner on this project and also strongly protect our ratepayers, who should only have to pay for what actually delivers electricity,” said PSC chairman Brandon Presley in an interview. Presley was, until recently, the lone opponent of a bloated, runaway project that saw costs jump from $2.3 billion in 2010 when work began to $7.5 billion now. 

Brain Drain: Engineers and Managers Flee Southern Company’s Troubled Kemper ‘Clean Coal’ Plant

This is a guest post by Dan Zegart of the Climate Investigations Center

With builder Southern Company still promising that the Kemper power plant will go online soon, a group of key engineers and managers who work on the plant's so-far-inoperable gasifier has left the company.

Earlier this month, Southern Company posted a cluster of want ads on its web site for a “gasification owner,”  a “refinery technician-mechanic,” a “refinery technician-entry level,” and a “gasification technician.”

Those four positions are located at the gasification island, home to the patented TRIG technology developed by Southern Company and Kellogg Brown & Root that is supposed to turn lignite coal from an adjacent mine into a cleaner burning syngas to produce electricity.  The project's twin gasifiers, however, have been troubled by frequent shutdowns and lengthy repairs.

Southern Company's Kemper Coal Plant Could Get Billions in Tax Credit Bail-Out

By Dan Zegart from Climate Investigations Center

If Donald Trump really wants to get rid of federal corporate welfare, he should be frantically tweeting against a congressional plan that could send billions to the grossly mismanaged Kemper power plant by expanding tax credits for injecting carbon dioxide into oil fields.

These so-called “45Q” tax credits would get richer and could even become a permanent part of the federal tax code depending on which of three bills now being considered by Congress becomes law. 

And that could result in the so-called “clean coal” Kemper facility that utility giant Southern Company is building in eastern Mississippi getting between $789 million and $4.5 billion, according to a new report co-authored by Friends of the Earth and Taxpayers for Common Sense — Coal Tax Subsidies: A Boon For Kemper.

Southern Company's 'Big Bets' on Kemper 'Clean Coal' Plant: A Rigged Game?

This is a guest post by Dan Zegart crossposted from Climate Investigations Center

From the very beginning, the story of utility giant Southern Company's Kemper clean coal plant is a long trail of broken promises, according to a New York Times investigation - and the project's numerous critics.

These include many of the 186,000 utility customers in 23 largely rural, mostly low-income counties in southeastern Mississippi that are now on the hook for a good part of the plant's estimated $6.6 billion cost - this after Southern promised them and state and federal officials in 2010 that the first-of-its-kind power station wouldn't cost more than $2.4 billion. 

That figure lasted only a few months, followed by a promise of $2.8 billion. 

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