RFP gets the credit for this post for doing most all of the legwork gathering these blasts from the past. First up is the latest from Moody’s Investor Service.
Moody’s Investors Service placed Mississippi Power Company’s ratings on review for another downgrade after the company last week announced a ninth extension for placing the now $7 billion Kemper energy facility into service using lignite. ~ Mary Perez 2-6-17
“There’s a big capital cost, I get that, but the energy coming out of this technology will be super-cheap,” Fanning said.He said Kemper’s technology, which would capture carbon dioxide and other byproducts and sell them to other users is “a home run, not only for the state of Mississippi but for America and the world.” ~ Tom Fanning, Chairman and CEO of Southern Company
Bonus quote from the above article:
Former New York City Mayor Rudolph Giuliani, Republican U.S. Rep. Gregg Harper and others attacked President Barack Obama’s administration and environmentalists.
Giuliani said those opposed to burning coal and drilling for oil are “living in some kind of ideological dream world that makes sense only to you.”
“As long as I’m governor, Mississippi is going to have an energy policy, and our energy policy is more American energy. It’s projects like these and efforts like this that will help us (economically), not only now, but in the long term. . . This is going to produce reliable power for Mississippi for decades and decades to come.” ~ Former Mississippi Governor Haley Barbour
But Barbour praised the plant for its relative eco-friendliness, saying, “The Left said there’s no such thing as clean coal — Well, this is it!”
Bryant “repeated his support for the plant in an interview with The Associated Press. Bryant has previously said the plant, with its plan to gasify soft coal mined nearby, is an important element of an energy policy for the state”I think we’ve gotten a strong show of support from the Legislature, but the most important point to me is carrying through with our responsibility to the people who work there,” Bryant said. “Hopefully, this will keep the cost of energy low in the future.” ~ Phil Bryant
What about your responsibility to the ratepayers that are taking it without Vaseline Phil?
“We applaud Governor Bryant for his leadership and for recognizing the importance of this legislation to our customers,” Mississippi Power President Ed Day said in a statement. “The bills will save Mississippi Power customers more than $1 billion over the life of the facility.”
“Installation of the gasifier marks a pivotal point in the construction phase of our project and the advancement of 21st century coal technology,” said Mississippi Power Vice President of Generation Development Tommy Anderson. “The electricity produced from this state-of-the art facility will have significant customer and environmental benefits. ~ Tommy Anderson
Haley Barbour was the prime original Kemper advocate. The whole party followed suit. Kemper is a Republican gig and the party will pay a high price for its support. ~ Conservative Columnist Wyatt Emmerich
Meanwhile abundant natural gas from fracking is available at very affordable prices.
To put this in perspective, the entire discretionary budget of the state of Mississippi is about five billion. Kemper could easily end up costing an extra $300 million a year – almost six percent of the entire Mississippi general fund budget.
There is one glaring problem with the upcoming PSC prudency hearings. They are premature. Kemper won’t even crank up for another couple of years. After that, it will take another several years of experimenting and re-engineering before its failure becomes clear.
It is possible – if not likely – that Kemper’s operating costs will exceed that of a natural gas plant. If that happens, then Kemper will have wasted the difference between its $4.5 billion price tab and the cost of a used natural gas plant – about $4.25 billion. Put another way, that’s $25,000 per household down the drain.
And this from late 2015:
Asked by the Mississippi Business Journal for an explanation, the company said in an email:
“The Southern Company actively manages fuel costs using a system of economic dispatch – meaning we use fuel that is most cost effective for our customers.” Mississippi Power has a coal-fired plant in Jackson County.
Fanning said the plant should start producing syngas by the fourth quarter.
And finally a Boss Hogg bonus quote on another government sponsored taxpayer fleecing in KiOR.
Barbour recalled when the idea was first presented to him. The notion of turning wood chips and agricultural waste into fuel sounded like the alchemists of old claiming they could turn straw into gold.
“It”s almost like making gold out of straw,” Barbour said of the technology, which reduces nature”s process of breaking down biomass over the course of decades into a matter of seconds.