An ex-employee has filed a lawsuit against their former Mississippi employer, asking the company to repay $382 million in federal funds that were improperly used.
A former employee is suing to force a Mississippi utility to repay $382 million that the federal government gave to build a failed coal-fueled power plant. Kelli Williams, a former construction manager for Atlanta-based Southern Co., filed a whistleblower lawsuit against the company and its subsidiary Mississippi Power Co. in 2018. That lawsuit, unsealed Monday, alleges that the two firms defrauded the U.S. Department of Energy and state regulators in a failed quest to build a $7.
If DOE had known that defendants were intentionally deceiving the agency about the state of the Kemper project and were intentionally withholding accurate data about the project's progress and viability, DOE would have ceased funding and supporting it,' an amended complaint filed Monday alleges. Schuyler Baehman, a spokesperson for Southern Co., declined to comment. The company has yet to file a reply in court.
Bills for Mississippi Power's 192,000 customers rose 15% in 2015 for the part of the plant that today burns natural gas instead of gasified coal. The rest of the plant has been demolished. The debacle has been a powerful argument against the idea that coal can be burned cleanly, although some are still pushing the goal. Whistleblower actions under the False Claims Act are filed under seal with the private plaintiff seeking to recover money on behalf of the federal government.
The people of Mississippi were deceived from the very beginning on the project,' Williams told The Clarion Ledger of Jackson in 2019. That’s when Southern Co. warned of a U.S. Justice Department investigation that turned out to be the federal inquiry into whether to join Williams’ own lawsuit. The lawsuit says the company knew as early as 2011 that its costs would exceed the $2.88 billion cap that Mississippi regulators had approved under pressure from Mississippi Gov.
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