The South Mississippi Electric Power Association withdrew its support from Mississippi Power's Kemper project. SMEPA agreed in 2010 to purchase a stake in the project for $500 million. The Sun-Herald reported:
South Mississippi Electric Power Association is no longer interested in buying a piece of the power plant being built in Kemper County by Mississippi Power.
According to a release from the cooperative, its board of directors voted Wednesday to end pursuit of an ownership interest in Plant Ratcliffe. It said delays in the project, changing needs and increased participation costs led to its decision.
Coast Electric and Singing River Electric Power Association are members of
It had planned to buy 17.5 percent of the plant, which will use synthetic gas derived from lignite to produce electricity, but said studies now show the cost has increased such that it would no longer be a good deal for ratepayers, the release said.
"We entered into the purchase agreement in 2010," said Jim Compton, the cooperative's general manager and CEO. "Since then, there have been multiple changes in the project, and also changes in our power supply needs. The board determined that proceeding to closing was not in SMEPA's best interests, and we needed to let (Mississippi Power) know so that alternate plans could proceed."
SMEPA announced is purchase agreement in this 2010 statement: