Pressure from Obama’s Energy Czar for MS PSC and So. Company to Compromise for Cap and Trade

U.S. Energy Secretary Wants Kemper Approval

by Amy McCullough

Published: May 7,2010

The Energy Daily reports today that U.S. Energy Secretary Steven Chu hopes the Mississippi Public Service Commission and Southern Company can strike a compromise on a proposed $2.4 billion clean coal plant to be built in Kemper County.

The Mississippi Commission voted April 29 to allow the plant to go forward if Mississippi Power Company (a division of Southern Company) agreed to cap costs at $2.4 billion. MPC had previously proposed a cost cap of $3.2 billion. The Commission also turned the company down on its request to put Construction Work in Progress (CWIP) in rate base – or charge customers for plant financing costs before and during plant construction.

“The (Southern) project is also a large-scale project but it’s now in jeopardy. I just hope that Southern Co. and the (Mississippi) commission come to a compromise agreement…” Chu said, according to The Energy Daily.

Chu spoke Thursday at the Obama administration’s Interagency Task Force on Carbon Capture and Storage (CCS) – a task force charged with overcoming barriers to CCS within 10 years, with a goal of bringing five to 10 commercial demonstration projects online by 2016.

MPC has said the Commission’s restrictions “seem to make it impossible” to move forward with the plant and that the denial of CWIP would not allow them to operate in a financially responsible manner.

The Kemper plant would be the first U.S. plant to demonstrate CCS on a commercial scale. Southern Company first pursued a similar project, the Orlando Gasification Project, in Florida. After the state cancelled the project, Southern then gained permission to transfer $270 million in U.S. Department of Energy funds to Mississippi to pursue a clean coal project with CCS here.

Kemper would gasify Mississippi lignite, a lower rank coal, and then burn the gas to produce electricity. The company also plans to sell the plant’s captured carbon for Enhance Oil Recovery projects. In EOR, gas can be injected into depleted oil fields at high pressure to increase the amount of petroleum that can be extracted.

http://msbusiness.com/2010/05/us-energy-secretary-wants-kemper-approval/

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About Mississippi Coal
Welcome! It is an honor to have a moment of your day. We are in favor of all forms of energy. We care about the future of this great Nation and seek to expose the corruption behind the Kemper County CO2 capturing experimental Lignite coal Demonstration unit. Our Chief complaint is that the rate payers pay for it in their electric bills. The CO2 capturing does not produce electricity so therefore serves no purpose for the ratepayers. It is a money scam for Mississippi power and Southern Company. Mississippi is first in following the (United Nation's Agenda 21) Kyoto Protocols for the regulation of carbon dioxide, a gas we breathe out of our lungs, by forcing the people to pay for it through energy bills and taxes. Through the process of investigating the Kemper County Coal Plant issue, we feel criminal acts have been committed and that soon FCC violations will be added to the offenses. People are being lied to, deceived, or misled and therefore are fully cooperating with this Lignite experiment. "This blog or any content may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of political pathways, Constitutional infringements, democracy, science, and other issues. This constitutes a 'fair use' of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. This material is compiled and distributed without profit. This blog does not always agree with certain personal views or agendas of the published authors, but we will overlook such views many times in order to present facts, conclusions, and connections for knowledge or clarification. We hope you gain from this critical subject matter of the article/op-ed."

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