The company also took charge of $333m in the first-quarter earnings owing to the cost overruns of $540m for the 582MW IGCC plant.
Mississippi Power, a subsidiary of Southern Company, said in earlier July 2013 that the company anticipates cost increase in construction works as workers are planning to complete the power plant by the middle of 2014, reported Reuters.
The company added that according to a latest review the basic IGCC plant requires another $450m, increasing the investment to $3.87bn.
The total cost of the plant will be now around $5bn, including a federal grant, a $245m lignite mine to supply the plant, a $114m pipeline to carry carbon dioxide emissions and other costs.
Initially, the plant’s cost was expected to be at $2bn.
