Mississippi Power Seeks Approval to Build IGCC Power Plant With Carbon Capture and...

Mississippi Power Seeks Approval to Build IGCC Power Plant With Carbon Capture
and Sequestration

GULFPORT, Miss., Jan. 16 /PRNewswire/ -- Mississippi Power today filed for
a certificate of public convenience and necessity at the Mississippi Public
Service Commission (MPSC) to build a 582-megawatt Integrated Gasification
Combined Cycle (IGCC) power plant in Kemper County. The state-of-the-art plant
represents the first advanced gasification generating facility with carbon
capture capabilities in Mississippi, and one of the first in the country.
The new plant is necessary for Mississippi Power to meet the needs of its
customers in Mississippi and to help reduce the cost of fuel to those
customers.
"This plant will diversify our fuel sources and will produce energy at
lower and more stable costs than any other fossil fuel option," said Anthony
Topazi, Mississippi Power president and chief executive officer. "By creating
an additional fuel alternative -- Mississippi lignite -- this project creates
significant energy cost reductions for our customers, such that over its life,
the energy savings more than offset the cost of building the plant." He noted
that along with IGCC technology, a diverse portfolio of generation resources
such as renewable biomass, and energy efficiency and conservation initiatives,
all play a crucial role in meeting customers' rising electricity needs.
"I know of no other place in the country where all of the conditions come
together like they do in Mississippi for such a value-creating project,"
Topazi said. "The Kemper County IGCC offers our state a leadership role in
providing environmentally responsible electricity and in creating energy
independence for Mississippi."
Mississippi lignite is an affordable, abundant natural resource that is
largely unused. The proposed plant will use lignite coal that will be mined
locally in Kemper County.
"We have studied the fuel sources and generation resource options
available to us, and have determined that the IGCC technology, using locally
mined Mississippi lignite, is the best option to provide affordable and
environmentally responsible electricity for our customers' growing needs,"
said Topazi. "The other benefits to the State of Mississippi are numerous
including new jobs, new tax revenues, development of Mississippi lignite as a
dependable and stable fuel source, and an additional source of carbon dioxide
for enhanced oil recovery in the state."
The Kemper County IGCC Project, estimated to cost approximately $2.2
billion, will be owned and operated by Mississippi Power and will serve the
growing demand for electricity among Mississippi Power's customer base.
Pending MPSC approval, construction is expected to begin in 2010 with
operational start-up of the facility expected by late 2013.
IGCC is a coal gasification plant integrated with a combined cycle power
plant specifically designed to work with each other. By providing carbon
capture and sequestration, the facility will lead the way to lower-carbon
electricity production.
Mississippi Power expects the Kemper County IGCC project to create
approximately 260 new permanent jobs from the plant and mine operations, plus
1,000 jobs during peak construction. Revenue from the project will enhance
local schools, lower property taxes, and help equip first responders.
Mississippi Power, a Southern Company (NYSE: SO) subsidiary, serves
customers in 23 southeast Mississippi counties. In partnership with the U.S.
Department of Energy and others, Southern Company has for many years conducted
research on advanced clean coal technologies at the Power Systems Development
Facility (PSDF) near Wilsonville, Ala. Through its involvement in the design,
construction, operation and management of the PSDF Southern Company has years
of experience with coal gasification technology.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this release is forward-looking
information based on current expectations and plans that involve risks and
uncertainties. Mississippi Power's estimated construction cost of the Kemper
County IGCC Project is a forward-looking statement and the actual construction
cost may vary materially from this estimate because of changes in such factors
as: business conditions; environmental statutes and regulations; the cost and
efficiency of construction labor, equipment, and materials; the cost and
availability of capital; and other risk factors described in Mississippi
Power's Annual Report on Form 10-K for the year ended December 31, 2007, and
subsequent securities filings. The reader is cautioned not to put undue
reliance on this forward-looking information, which is not a guarantee of
future performance and is subject to a number of uncertainties and other
factors, many of which are outside the control of Mississippi Power;
accordingly, there can be no assurance that such suggested results will be
realized. Mississippi Power expressly disclaims any obligation to update any
forward-looking information.
SOURCE Mississippi Power

Cindy Duvall of Mississippi Power, +1-228-865-5543 - Office, +1-228-861-5543 -
Cell, or +1-800-821-6383 - Toll free