Department of Energy
Washington, DC 20585

April 29,2008
MEMORANDUM F

THRU:

C. H. ALBFUGHT,

FROM:

SUBJECT:

Action: Approve a request ftom Southern Company Services
(SCS) for contingent waiver of repayment under its Clean Coal
Power Initiative (CCPI) cooperative agreement.

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APPROVAL DETERMINATION

The waiver request of Southern Company Services is APPROVED, with the condition
that the waiver is void if any of the following occur:
(1) On or before the earlier of DOE's issuance of a Record of Decision for Southern's
planned Mississippi plant or January 1,2010, the Internal Revenue Service agrees that
CCPI I1 funds are not taxable to the recipient, even if the funds are accompanied by a
requirement of repayment to DOE. Southern Company agrees to seek a private letter
ruling from the IRS if DOE advises Southern that the IRS has indicated a willingness to
entertain tax-free treatment of DOE CCPI I1 funds.
(2) On or before the earlier of DOE's issuance of a Record of Decision for the
Mississippi project or January 1,2010, the law is amended to make CCPI funds not
taxable to the recipient.

(3) Southern Company (andlor its affiliated companies) does not, with respect to the
planned coal-fired power plant in Mississippi receiving CCPI I1 funds: (a) design, build,
and operate the facility with the intent to, capture and geologically sequester one mlllion
tons per year of C02 (approximately 25% capture rate); and (b) establish, and actively
work toward, the goal of capturing and sequestering 50% of C 0 2 emissions from the
plant by 2020 and thereafter.

Secretary of Energy