The company’s power unit wants the commission to make a decision by August 2009 so that it can purchase machinery and meet a target to be eligible for about $500 million in federal incentives.
On April 29, 2009 the Mississippi Power unit through a filing questioned disputes initiated by the AG’s office that the commission does not have the right to sanction the IGCC project and to enable the utility to request customers to pay for some costs prior to plant construction.
The filing stated that utility felt that the commission’s right to issue certificates of need ‘is extremely broad’ and that restrictions mentioned by Attorney General Jim Hood and other concerned people would postpone and probably endanger the utility’s capability to meet its commitment to effectively serve its customers.
According to the Mississippi Power unit, opponents’ allegations that the Baseload Act, approved in 2008 puts several conditions on the commission’s capability to consider new production is incorrect.
The 2008 law enables utilities to include some portion of pre-construction costs to decrease total costs passed on to consumers. Mississippi Power stated that its proposal will save consumers $163 million during the life of the IGCC station.
Mississippi Power intends to utilize the technology it has been developing for 10 years to transform Mississippi lignite into a synthesis gas processed to eliminate contaminants prior to being burned in a combined-cycle station to produce power.
The company stated that the IGCC plant is suitable alternative to fulfill rising power demand by 2014.
On May 5, 2009, the Mississippi commission will conduct a hearing on motions to shelve the validation process.
