Southern Company to Acquire 600 Megawatt Power Plant
October 22 2009 - 8:38AM
PR Newswire (US)
ATLANTA, Oct. 22 /PRNewswire-FirstCall/ -- Southern Power, a
subsidiary of Southern Company that acquires, builds, manages and
owns wholesale generation assets, today announced that it has
entered into an Acquisition Agreement with an affiliate of LS Power
to acquire 100 percent ownership interest in West Georgia
Generating Company, LLC, which has a plant located in Thomaston,
Ga. (Logo: http://www.newscom.com/cgi-bin/prnh/20080801/SOCOLOGO )
The Thomaston plant is a peaking facility with four gas-fired
combustion turbines with total capacity of approximately 600
megawatts. Capacity from two of the four units is sold through
long-term power purchase agreements with the Municipal Electric
Authority of Georgia and the Georgia Energy Cooperative. In
addition to the acquisition of the West Georgia facility, the
agreement includes the acquisition by LS Power of a 100 percent
ownership interest of Southern Power's DeSoto County Generating
Company, LLC which has a plant located in Arcadia, Fla. The DeSoto
plant consists of two combustion turbine units with a combined
capacity of 320 megawatts. The closing of the transaction is
subject to several conditions including all pending regulatory
approvals. "This acquisition fits well into Southern Company's
strategy of continuing to meet energy demand with an increasingly
diverse generation mix," said David Ratcliffe, chairman, president
and CEO, Southern Company. "This transaction reinforces Southern
Power's disciplined strategy to acquire and/or build generating
assets for which the output is significantly covered by long-term
bi-lateral contracts in the wholesale market," said Southern Power
President Ronnie Bates. "This agreement represents a growth
opportunity that is a good fit for Southern Power." LS Power is a
power generation, transmission and investment group with a proven
track record of successful development activities, operations
management and commercial execution. LS Power has been involved in
the development, construction, or operations of over 20,000 MW of
power generation throughout the United States. Southern Power is
among the largest wholesale energy providers in the Southeast,
meeting the electricity needs of municipalities, electric
cooperatives and investor-owned utilities. The company owns and
operates more than 7,500 megawatts with facilities in Alabama,
Florida, Georgia and North Carolina and has an additional 820
megawatts committed to construction in North Carolina and Texas.
With 4.4 million customers and more than 42,000 megawatts of
generating capacity, Atlanta-based Southern Company (NYSE:SO) is
the premier energy company serving the Southeast. A leading U.S.
producer of electricity, Southern Company owns electric utilities
in four states and a growing competitive generation company, as
well as fiber optics and wireless communications. Southern Company
brands are known for excellent customer service, high reliability
and retail electric prices that are below the national average.
Southern Company is consistently listed among the top U.S. electric
service providers in customer satisfaction by the American Customer
Satisfaction Index (ACSI). Visit our Web site at
http://www.southerncompany.com/. Cautionary Note Regarding
Forward-Looking Statements: Certain information contained in this
release is forward-looking information based on current
expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things, plans and
estimated costs for new generation resources for the Company and
growth opportunities for the Company. The Company cautions that
there are certain factors that can cause actual results to differ
materially from the forward-looking information that has been
provided. The reader is cautioned not to put undue reliance on this
forward-looking information, which is not a guarantee of future
performance and is subject to a number of uncertainties and other
factors, many of which are outside the control of the Company;
accordingly, there can be no assurance that such suggested results
will be realized. The following factors, in addition to those
discussed in the Company's Annual Report on Form 10-K for the year
ended December 31, 2008, and subsequent securities filings, could
cause results to differ materially from management expectations as
suggested by such forward-looking information: the impact of recent
and future federal and state regulatory change, including
legislative and regulatory initiatives regarding deregulation and
restructuring of the electric utility industry, implementation of
the Energy Policy Act of 2005, environmental laws including
regulation of water quality and emissions of sulfur, nitrogen,
mercury, carbon, soot, or particulate matter and other substances,
and also changes in tax and other laws and regulations to which the
Company and its subsidiaries are subject, as well as changes in
application of existing laws and regulations; current and future
litigation, regulatory investigations, proceedings, or inquiries,
including Federal Energy Regulatory Commission matters; the
effects, extent, and timing of the entry of additional competition
in the markets in which the Company operates; variations in demand
for electricity, including those relating to weather, the general
economy, population and business growth (and declines), and the
effects of energy conservation measures; available sources and
costs of fuels; effects of inflation; internal restructuring or
other restructuring options that may be pursued; potential business
strategies, including acquisitions or dispositions of assets or
businesses, which cannot be assured to be completed or beneficial
to the Company; the ability of counterparties of the Company to
make payments as and when due and to perform as required; the
ability to obtain new short- and long-term contracts with wholesale
customers; the direct or indirect effect on the Company's business
resulting from terrorist incidents and the threat of terrorist
incidents; interest rate fluctuations and financial market
conditions and the results of financing efforts, including the
Company's credit ratings; the ability of the Company to obtain
additional generating capacity at competitive prices; catastrophic
events such as fires, earthquakes, explosions, floods, hurricanes,
droughts, pandemic health events such as an avian or other
influenza, or other similar occurrences; the direct or indirect
effects on the Company's business resulting from incidents similar
to the August 2003 power outage in the Northeast; and the effect of
accounting pronouncements issued periodically by standard setting
bodies. The Company expressly disclaims any obligation to update
any forward-looking information.
http://www.newscom.com/cgi-bin/prnh/20080801/SOCOLOGODATASOURCE:
Southern Company CONTACT: Steve Higginbottom, +1-404-506-5333,
+1-866-506-5333, Web Site: http://www.southerncompany.com/
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