Wednesday, December 4, 2013

Bigger Pie: Kemper an "imprudent decision"

Kemper: A political decision in 2006, an imprudent 2010 PSC decision based on guesses by Southern/MPC, extremely slow acknowledgement of actual plant costs, an extremely imprudent 2012 new PSC certification of Kemper followed by rapid, massive adjustments to plant costs once major legislative and regulatory approvals were in hand...

Disaster. Engineering only 15-20% complete when construction began in 2010

Recent MPC statements confirm engineering for the experimental, first of a kind Kemper plant was only 15-20% completed when construction began in 2010 and is the main reason 2010 cost projections were $2 billion low. MPC and Southern Company had limited project knowledge when presenting data and filing testimony with the PSC, stressing confidence in the capital costs. Their natural gas price projections were 35-80% above U.S. Energy Information Administration (EIA) forecasts of that period. MPC presented assumptive guesses to PSC in 2009-2010 rather than factual ones. Southern's natural gas price projections appeared to many then, and have since proved, to be wildly high and, along with the grossly understated plant costs, have been decisive in the selection of Kemper lignite over a natural gas fired plant. The earlier political decision was supported by inaccurate and wrong Southern assumptions resulting in an erroneous economic comparison of alternatives and an imprudent decision by the PSC. A prudent outcome does not result from prudent expenditures toward an imprudent goal.

Gasifier costs given PSC half actual, corrections delayed even with warning signs

By late 2009-early 2010, before official PSC approval of Kemper, Duke Energy was two years into construction of an Indiana coal gasifier and generating plant and experiencing repeated, large cost overruns. In the first quarter, 2010, MPC petitioned PSC to increase the cap on Kemper by $800 million while insisting they were not raising the budgeted cost and would not spend it (we won't inhale). Two and three years later, May 7, 2012 and April 23, 2013, MPC announced cost increases totaling $900 million. Those increases were announced immediately after either a favorable court delayed regulatory decision, special bond legislation, or a secretly negotiated agreement with the Mississippi Public Utility Staff. Given public alarm over Duke Energy's gasifier problems throughout 2009-2011, it seems impossible MPC was clueless that the gasifier costs they gave PSC in 2009-2012 were only half of actual costs. Were MPC's requested $800 million cap increase in 2010 (we won't inhale) and the $900 million actual increases of 2012-early 2013 a mere coincidence? (See Exhibit A and B timelines of events related to cost increase announcements)...Rest of article, including some nice pretty exhibits.

This post is sponsored content. Bigger Pie purchased distribution rights for its content on Jackson Jambalaya.


Anonymous said...

As a Mississippi Power Company RATEPAYER, I prefer to look at Kemper as an "imprudent screwing"!

Anonymous said...

Help me understand the motivations of Bigger Pie. I can't quite understand why these folks are so hot & bothered. Are they effected by Mississippi Power? Or do they all live in Jackson? I can't get my arms around their concerns until I understand their desire or their end game.

Anonymous said...

Why don't you contact them 9:18 PM since you are hot and bothered about them.

Anonymous said...

Obamacare and the Kemper project are the biggest lies of the last decade.

Anonymous said...

Is " imprudent" the Orwellian term for "stupid" or for "corrupt"?

Anonymous said...

They are from Jackson and I bet Ashby Foot would not put a dollar of his own money in this fight, but he will sure spend this public money he gets to control.

Anonymous said...

Bigger Pie is doing a great public service for us all. If the MP monopoly can get away with tyhis tnen any other monpoly can and will. Thank you Bigger Pie from the bottom of our hearts.

Pugnacious said...

Columbus' Commercial-Dispatch is reporting today that KIOR has commissioned Neel-Schaefer Engineering to conduct ground studies for the construction of the Columbus II biomass-to-diesel conversion facility site, right adjacent to its non-performing Columbus I facility. Bill Gates and Khosla Venture Capital have pledged an additional $100,000,000 to the two projects.

Suscribe to latest on JJ.

Recent Comments

Search Jackson Jambalaya


Subscribe to JJ's Youtube channel


Who is the Hottest Reporter in Jackson?

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).

Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS