The Southern Co. will pay $87.5 million to settle claims that it misled investors about a plan to build a “clean coal” power plant in Mississippi, according to a notice filed in a Georgia federal court.
The company secured almost $1 billion in federal grants and tax credits by the time the plant broke ground in 2010 in Kemper County, Miss. The state also authorized the company to recoup construction costs through rate increases passed onto customers.
The funding was linked to a requirement that construction be completed by May 2014.
Investors say the company repeatedly assured them that it ...