Southern Co. taking $450M charge for Miss. plant

AP News
Posted: Jul 30, 2013 6:43 PM

ATLANTA (AP) — The Southern Co. utility will write-off an estimated $450 million in costs incurred while building an over-budget coal-fired power plant in Mississippi.

The utility announced the pre-tax write-off Tuesday ahead of disclosing its latest quarterly earnings.

Southern Co. subsidiary Mississippi Power has struggled to control costs while building Plant Ratcliffe, a coal-fired plant is Mississippi's Kemper County.

To deal with rising expenses, the company agreed it will only seek to charge its customers for $2.4 billion in construction costs. Its customers will also have to pay off as much as $1 billion in bonds, though the firm cannot make a profit off that borrowed money.

The company previously announced a $540 million loss on the plant.