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I think his army will be thanquol, 2 x engineers, screaming bell, and 12 jezzails then min/max ratlings, maybe a warplight cannon... I am playing with:

LOC twin heads,dark magister
blue scribes
Nurgle herald palaquin,noxious vapours,slime trail
Tzeentch herald w/ BSB despair <---- i am split in between reducing his magic effectiveness to scaring them all off the field

2 fiends
7 furies
5 hounds x 2

16 plaguebearers w/full command seeping decay
10 bloodletters x 2

I could replace LOC with Kairos for this battle if it will be beneficial... suggestions? I think Kairos might get great benefits with the variety of spells but the jezzails will be definite problem against me... I dont want my army to be entirely tailored to killing this army since i want it to be good all around for tournament as well...

You are both going ridiculous magic heavy so not much fun for either of you.

Furies are a waste- they will be annihalated by shooting- as will the rest of your army.

Order of preference in killing: 1 his shooters, 2 his mages, 3 whatever is left, at least his mages can miscast...

Hide behind terrain and refuse to move your army forward against him.
Repeat 2-3 games in a row and he'll start to take reasonable armies.

14 power dice is insane at 2000 pts.. especially with engineers. Their spell is powerful, but it can still kill the caster even if it doesn't miscast. People also underestimate the usefulness of the screaming bell. In one game against HE, it managed to kill two Repeating Bolt Throwers with that result that causes D3 wounds to anything T7.
I don't know the chaos codex inside and out though, but get something to charge the warplightning cannon. It MUST flee from all charges. Also, remember it can fire through different types of terrain, so hiding from it won't really work all that well.
And if you can bring it to bear, a good strength 7+ attack will reduce the bell into nothingness. Be careful around the ratling guns, unless you've got a worthwhile shooting element that can eliminate them outside of their 15" range.
The jezzails are easy to see off if you can cause enough casualties to force a panic test as they won't be able to take advantage of the "strength in numbers" rule.
Outside of that, once you get into CC you should be spanking him round after round as he doesn't have much as static CR with min/max ratling guns..

Just take the grand standard of sundering, the blue scribes, Kairos and packs of flesh hounds. The standard will block a lot of his casting, and anyone who DOES manage to cast successfully gives you a power dice, which you let Kairos use (with his +2 to cast, reroll and 14 spells you'll be able to get great value from the PD). The Dogs are just general heartbreakers, as they shrug off his standard weakened casting with their MR, and the ratling guns don't cause enough wounds in the one round before you are charging, and dogs eat rats.

You have this game before it begins. His dex is old, and yours is new. Show him his day is done.

You just have to worry about A) if you charge the ratlings, they can stand and shoot unlike normal warmachines and B) if you charge the clanrats, he'll just have them shoot into the close combat and kill both yours and his models. The hounds definitely will be of use, but won't be game winners.