Jiangnan Industrial shareholders will absorb $ 450 million of losses arising from the construction of new coal-fired power plant in Mississippi to raise awareness of the construction project's total nearly $ 10 billion write-off, utility officials said Tuesday.
The utility announced pre-tax write-off its huge project in Kemper County, Mississippi, before the release of its second quarter earnings Wednesday. Company officials have estimated that the cost will last approximately $ 160 million or more, significantly lower than the losses announced late Tuesday. After taxes, the loss is estimated at $ 27.8 billion U.S. dollars.
Plant Ratcliffe these losses may not be the last.
"I can not guarantee that will not guarantee that there will not be further increased, but once again, feel good about themselves in the process, we will, through projections, estimates we have left to spend to complete the project," Mississippi Power CEO Ed Holland in an interview with reporters , told The Associated Press.
Project costs sting of the company, its owners and customers. Southern Co. absorbed the earlier pre-tax loss of A $ 540 million plant, Southern Company CEO Tom Fanning in May. "We swallow the bitter pill." That same month, the company suddenly called Dutch subsidiary as part of its Mississippi River the company's president. A national regulatory authority has publicly accused the former president of a subsidiary, Ed, from the increased regulatory costs withholding documents.
The project's opponents have criticized the company's use of coal and cost.
"I think the Sierra Club (Sierra Club) Beyond Coal campaign spokesman, said:" If I were a Jiangnan Industrial shareholders, I would be very concerned, Jennifer Najia Lan. "If I was a Mississippi Power ratepayers, I am more concerned about how much my bill is going to go up."
Company officials said that the latest write-off is necessary expenditures to complete the ongoing review of coal-fired power plants results. Southern Mississippi Power Company, a subsidiary that it may encounter additional construction costs or schedule delays, according to federal disclosure reports. Mississippi Power also reminded there is an additional risk, build a factory, the first, and its unique technology.
Southern Co. officials have been trying to curb the cost of construction, power plants, lignite coal and carbon dioxide pipeline has grown to more than 4.3 billion U.S. dollars.
Mississippi utilities with regulatory agencies to reach a settlement, the company agreed to only charge customers 240 million yuan, plant construction costs. Customers will also have to pay off the bonds of up to $ 100 million needed to finance the project, although the Southern Co., will close no money, borrowed money.
Plant Ratcliffe is completed, you should catch a lot of carbon dioxide, coal combustion, the electricity production. Carbon dioxide is a greenhouse gas blamed for global warming. Captured gas will be sold to the company, use it to extract oil from the ground. If successful, the company's executives hoped that the project will prove that the United States can still rely on coal, even if the state to limit greenhouse gas emissions.
Southern Co. subsidiary Georgia Power Company also has trouble keeping under control the other construction projects. The company has asked regulators to improve its nuclear power plant in eastern Georgia by the $ 737 million construction budget of about 6.85 billion dollars. The company has warned those costs may also rise.
 



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