Meridian Star

New Today

December 29, 2012

Southern Co. faces risks on Miss. power plant

(Continued)

DEKALB — In the 1970s, a giant construction program brought Southern to the edge of insolvency. High inflation and interest rates made it almost impossible to borrow money to complete plants in its four-state territory. The subsidiaries struggled to win rate increases from hostile state regulators, and nuclear plant overruns ballooned under new safety demands after 1979's Three Mile Island incident.

The company history says that at one point in 1979, Mississippi Power was down to less than six months of operating cash.

The company eventually patched things up with regulators and finished its construction marathon, but not before shareholders ate $1 billion in overruns at Vogtle.

"It was like you had your hands on something big that you couldn't control," Ed Addison, Southern CEO from 1983 to 1995, said in the company history. "You couldn't stop because ... too much was already invested in it."

Fanning argues this time is different because inflation and interest rates are low and Southern has gotten better at big construction projects.

"Everything that I know, this plant was exceedingly well-built and well organized during the construction period," Fanning said. "I suppose there is a theoretical risk of prudency. But in my view, this company is executing like no company in the United States."

He is comfortable with the chips he has on the table.

"Now look, I am not a skeptic of natural gas more than any other fuel. But you cannot plan to put all your eggs in that basket. That is imprudent," he said. "What Mississippi is doing here is a big bet. But ultimately, long-term, it will serve well the interests of the families we serve here in Mississippi."

Text Only
New Today
Biz Marquee
New Today
Poll

Are you for or against Common Core — which is mandated by the state — being taught in Mississippi schools?

For
Against
     View Results
Facebook
Facebook
Twitter Updates
Follow us on twitter
AP Video
Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train Crayola Announces Family Attraction in Orlando
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide