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Whistleblower Accuses Mississippi Utility of Fraud in $7.5 Billion Power Plant Failure, Seeks $382 Million Repayment

Ex-Southern Co. employee alleges company intentionally misled Department of Energy about failing $7.5 billion Kemper County plant, resulting in continued subsidies; should the lawsuit succeed, triple damages may result in over $1.1 billion payout.

  • Kelli Williams, a former construction manager for Atlanta-based Southern Co., filed a whistleblower lawsuit against the company and its subsidiary Mississippi Power Co., alleging that the firms defrauded the U.S. Department of Energy and state regulators in a failed quest to build a $7.5 billion power plant.
  • The Kemper County power plant was intended to be a leader in turning soft coal into gas for power generation, but ballooning costs and reliability issues led to the plant being ordered to stop construction in 2017 by the Mississippi Public Service Commission.
  • Williams accuses the companies of repeatedly lying about the plant's cost overruns and delays, allegedly deceiving the U.S. Department of Energy into continuing subsidy payments and persuading the Mississippi Public Service Commission to authorize construction.
  • If Williams wins the lawsuit, Southern Co. could be required to pay over $1.1 billion, thanks to potential triple damages. As the whistleblower, Williams would be legally entitled to between 15% and 30% of any money.
  • This isn't the first time Southern Co. has faced whistleblower allegations or lawsuits. Former engineer Brett Wingo reported to the U.S. SEC in 2014 that the company misled investors by misrepresenting the construction timeline. The inquiry ended with no enforcement action in 2017, but Mississippi Power's claims of progress were deemed not credible by then.
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