Mississippi Power issues statement regarding SMEPA’s ownership in Kemper

Mississippi Power was disappointed to learn of South Mississippi Electric board of directors’ decision to end their pursuit of an ownership interest in the Kemper County energy facility.

SMEPA has been a long-time partner of Mississippi Power, and despite their decision on Kemper, we anticipate serving South Mississippi together for many years.

As a part of the asset purchase agreement to purchase 15 percent of the project, Mississippi Power received a total of $275 million of deposits from SMEPA. That amount, with interest, is required to be returned to SMEPA in connection with the termination of the agreement.

SMEPA’s 15-percent portion of the project as of March 2016 was projected to be approximately $600 million in fixed asset costs. SMEPA’s investment and related costs associated with the proposed ownership interest were excluded from Mississippi Power’s May 15 retail rate filings.

Mississippi Power is evaluating its alternatives related to the investment and related costs associated with the 15-percent ownership interest in Kemper. The ultimate outcome of this activity cannot be determined at this time.

The Kemper County energy facility was certified to be the best option for reliably meeting the energy needs of Mississippi Power customers for decades to come. Progress continues at the Kemper facility with commercial operation expected in the first half of 2016.