Southern Co. to build biomass plant in Texas

Atlanta, October 9, 2009 – Southern Power, a subsidiary of Southern Co. that acquires, builds, manages and owns wholesale generation assets, is acquiring Nacogdoches Power from American Renewables and will move ahead with construction of the planned biomass power plant in Texas.

Groundbreaking is expected in the fall of 2009 and commercial operation is projected for the summer of 2012. When completed, the project will be capable of generating about 100 MW.

The plant’s output is committed through a 20-year power purchase agreement with Austin Energy, the municipal utility owned by and serving Austin, Texas.

Acquiring the Nacogdoches project diversifies Southern Power’s fuel mix, which aligns with Southern Co.’s overall goal of using a variety of fuels to ensure reliable and affordable electricity generation.

The plant, which will be built on 165 acres, will be fueled with biomass materials, including forest residue from the surrounding areas, wood processing residues and clean municipal wood waste.

The project will require about 1 million tons of fuel annually, which will be procured within a 75-mile radius of the project site.

American Renewables develops, builds and operates energy facilities that use biomass materials as fuel. American Renewables brings together the successful track records and project development, operations, energy investment and asset management expertise of its three partners: BayCorp Holdings, Energy Management, Inc. and Tyr Energy.

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.

Southern Co. owns electric utilities in four states and a generation company, as well as fiber optics and wireless communications. The company also serves 4.4 million customers and operates more than 42,000 MW of generating capacity.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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