Whistleblower says utility should repay $382 million in federal aid given to failed clean coal plant

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A former employee is suing to force a Mississippi utility to repay $382 million to the federal government

ATLANTA — 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 $7.5 billion power plant.

Williams says the company lied repeatedly about the plant's cost overruns and spiraling delays, enticing the U.S. Department of Energy to keep delivering subsidy payments and persuading the Mississippi Public Service Commission to not revoke its permission for construction.

“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.

If Williams wins, the company could be forced to pay triple damages, or more than $1.1 billion. Williams, as the whistleblower, would be legally entitled to between 15% and 30% of any money.

The Kemper County power plant was supposed to be a world leader in turning soft coal into a gas and burning it to generate power, while removing climate-warming carbon dioxide and other pollutants.

The cost of the plant ballooned and