Facts

Mississippi Power, together with the Mississippi Public Service Commission,

unanimously recognized the need for additional energy resources to supply

current and future electricity needs for Mississippi Power customers and

the region's economy. The Kemper County energy facility was certified as

the best long-term solution.

The company has an aging generating fleet and must retire some of its

older units due to age and to achieve environmental regulations that will

shut down these units.

The facility will be the first Mississippi Power baseload power plant (a plant

that runs 24 hours a day, seven days a week) built in more than 30 years.

The facility will utilize an innovative 21st century coal gasification technology

called TRIG to generate environmentally responsible electricity while

significantly reducing emissions.

TRIGTM technology uses lignite, which accounts for a large portion of the

world's vast coal supply. There are more than 4 billion tons of lignite

available in Mississippi.

The facility will convert inexpensive lignite to gas, sending it through a

device called a gasifier where, under a controlled environment, the lignite

undergoes a chemical reaction creating a synthesis gas.

The technology can pave the way forward for America and the world for the

use of an abundant natural resource in an environmentally friendly way.

The project will capture at least 65 percent of the carbon dioxide produced,

with resulting carbon emissions comparable to a similarly sized natural gas

Project overview

Download the PDF version (/pdf/generaloverview.pdf)

The Kemper County energy facility will use innovative clean coal technology to

deliver safe, reliable and made-in-Mississippi electricity to Mississippi Power

customers. The 582-megawatt generating facility is scheduled to begin

operation in the first half of 2016.

The need

21st Century technology

TM
plant.

Lignite is an abundant, affordable natural resource that is not subject to the

price volatility and transportation costs associated with other fuel sources.

Utilizing Mississippi lignite provides Mississippi Power with a third fuel to go

along with natural gas and coal. The fuel diversity of natural gas, coal and

lignite protects customers from overreliance on any one fuel.

When the project was approved, the Mississippi Public Service Commission

stated that "fuel diversity matters, particularly because fuel price stability

matters. The Kemper Project offers both."

Today, Mississippi Power customers are benefiting from nearly 70 percent

of their electricity being fueled by natural gas due to current low prices.

Adding lignite as a fuel source to the company's energy mix will add even

greater flexibility and control over future fuel cost because compared to

natural gas, lignite is even less expensive. Our customers will reap the

benefit the first day the facility begins generating electricity.

While the capital costs to build baseload power plants are higher, the

significantly lower cost of the plant's lignite fuel source compared to other

generation types is expected to benefit customers for decades.

Sales of byproducts such as carbon dioxide captured in the gasification

process are expected to generate approximately $50 million annually, which

will lower the overall cost to customers once the plant is in service.

Design, construction, start-up and operational costs are expected to be

recovered from customers through base rates and repayment of low-cost

bonds. The Mississippi Public Service Commission will set those rates on

capped costs and Mississippi Power customers will not pay one penny more

for the Kemper project above the limits determined by the Commission.

Plant: 582-megawatt electric power plant

Technology: TRIGTM Integrated Gasification Combined Cycle (IGCC)

Location: Kemper County, Miss., about 20 miles north of Meridian, Miss.

Fuel: Mississippi lignite, approximately 4.7 million tons used per year; 4

Diversifying our energy supply

The cost

Quick facts

Download PDF version (/pdf/KemperQuickInfoFactSheet.pdf)

General information
billion mineable tons available in Mississippi alone

CO2 capture: At least 65 percent

In service: First Half, 2016

Initial certificate: Approved by the Mississippi Public Service Commission on

June 3, 2010

Owner and operator: Southern Company subsidiary Mississippi Power

Local partners: A total of approximately 530 Mississippi companies, with

contracts worth more than $1.6 billion

Cooling water: City of Meridian treated effluent

Construction jobs: Nearly 12,000 direct and indirect; at peak 6,000 workers

on-site

Permanent jobs: A total of approximately 1,300 direct and indirect

Academic scholarships: 20 awarded to students attending two- and fouryear programs

Tax revenue: Projected state and local tax impact from start of construction

in 2010 to full operation expected in first half of 2016 is approximately

$232.5 million. Once operational, more than $40 million annually will be

generated in ongoing local and state taxes.

Lignite dome: Holds up to 100,000 tons

Concrete: approximately 109,000 cubic yards

Structural steel: approximately 40,000 tons

Above-ground piping: approximately 908,000 linear feet

Gasifier weight: 550 tons

New transmission lines: 60 miles

Reservoir: 500 million gallons

Amount of lignite to be mined: approximately 185 million tons over 40 years

Dragline: 9 million pounds

Dragline bucket: Removes more than 100 tons of overburden in a single

scoop

Size

Mine
Emissions controls are built into the plant and will be closely monitored

throughout the coal gasification process.

At least 65 percent of the carbon produced in the gasification process will

be captured, with resulting carbon emissions comparable to a similarly

sized natural gas plant.

The result: cleaner air and a diminished environmental footprint.

Project timeline

Download PDF version (/pdf/timeline.pdf)

Protecting the environment

The Kemper County energy facility will use innovative clean coal technology to

deliver safe, reliable and made-in-Mississippi electricity to Mississippi Power

customers. It was certified by the Mississippi Public Service Commission as the

best solution for customers. The 582-megawatt generating facility is scheduled

to begin operation in the first half of 2016.

Air quality

Zero liquid discharge
The Kemper County energy facility will be a zero liquid discharge facility,

which means none of the water used to generate electricity will end up in

surrounding streams and rivers.

The plant will also use treated effluent water from the city of Meridian.

The use of Meridian's treated effluent for the plant's cooling needs is a winwin with the city receiving revenue from the sale of water and the project

obtaining an economical source of water.

In addition to environmental benefits, the company has signed long-term

contracts to sell the byproducts from the gasification process such as

carbon dioxide, sulfuric acid and ammonia.

Revenue from the sale of these byproducts-approximately $50 million to

$100 million annually-will lower the overall costs for customers once the

plant is in service.

At peak construction, nearly 12,000 direct and indirect jobs were created by

the Kemper County energy facility.

About 1,300 direct and indirect permanent positions will be in place once

the facility opens.

Peak construction employment reached approximately 6,000.

The project has employed approximately 530 Mississippi companies with

contracts totaling more than $1.6 billion.

From start of construction in 2010 to scheduled full operation in first half of

2016, the anticipated state and local tax impact is approximately $232.5

million.

Protecting the environment, saving customers money

Download PDF version (/pdf/KemperProtectEnviroFactSheet.pdf)

Jobs and economic impact

The Kemper County energy facility will use innovative clean coal technology to

deliver safe, reliable and made-in-Mississippi electricity to Mississippi Power

customers. It was certified by the Mississippi Public Service Commission as the

best solution for customers. The 582-megawatt generating facility is scheduled

to begin operation in 2016.

Jobs

Built for Mississippians, by Mississippians

Taxes
Once operational, more than $40 million annually will be generated in

ongoing state and local taxes.

The Kemper County energy facility's ability to capture carbon dioxide will

help expand American energy supplies through enhanced oil recovery.

The captured carbon dioxide will be transported along a 61-mile pipeline to

Denbury Resources and Treetop Midstream Services.

Using carbon dioxide from Kemper will increase U.S. oil output by two

million barrels per year, playing an important role in reducing Mississippi's

and America's use of foreign oil and keeps oil revenue at home rather than

sending it overseas.

Mississippi Power has partnered with East Mississippi Community College to

support secondary education in Kemper, rural Lauderdale and Noxubee

counties.

Mississippi Power, through the Mississippi Power Foundation, has provided

funds to support EMCC's Tuition Guarantee Program.

Since 2008 the program has enabled eligible students to attend EMCC

tuition-free for four consecutive semesters.

Mississippi Power collaborated with the Mississippi Department of

Education (MDE), Mississippi Building Blocks and the Mississippi State Early

Childhood Institute to assess and enhance early childhood learning centers.

The company supported selection and enhancement of West Kemper Kiddie

Kollege as a participant in the pilot project of Mississippi Building Blocks.

The company formed partnerships with education institutions, MDE and

local schools to increase the quality of education in the community.

Expanding American energy supply

Download PDF version (/pdf/KemperJobEconImpactFactSheet.pdf)

Commitment to education

The Kemper County energy facility will use innovative clean coal technology to

deliver safe, reliable and made-in-Mississippi electricity to Mississippi Power

customers. It was certified by the Mississippi Public Service Commission as the

best solution for customers. The 582-megawatt generating facility is scheduled

to begin operation in the first half of 2016.

Tuition Guarantee Program

Pre-K-12
Mississippi Power helped develop the Kemper County Leadership Program

to support the training and development of new leaders in Kemper County.

The company conducted leadership organizational sessions with local

leaders and formed a local leadership development team. In its first three

years, the program graduated 46 participants.

Kemper County Leadership class topics have included health and human

services, education, government, economic development and quality of life

in the Kemper County community.

Download PDF version (/pdf/KemperEducationFactSheets.pdf)

Economic & community development

The Kemper County energy facility will use innovative clean coal technology to

deliver safe, reliable and made-in-Mississippi electricity to Mississippi Power

customers. It was certified by the Mississippi Public Service Commission as the

best solution for customers. The 582-megawatt generating facility is scheduled

to begin operation in the first half of 2016.

Leadership development

Download PDF version (/pdf/KemperEconCommDevoFactSheet.pdf)