ATLANTA, June 8, 2005 (PRNewswire-FirstCall) — Southern Company announced that it has completed the purchase from Constellation Energy of a 680-megawatt dual-fueled simple-cycle generating plant in Cocoa, Fla., for $206 million plus certain closing costs and adjustments. As announced in April, Southern Company subsidiary Southern Power signed a Purchase and Sale Agreement with Constellation Energy to purchase Oleander Power Plant. Since then, both parties have received all necessary regulatory approvals and the purchase is now complete.
Plant Oleander is now owned and operated by Southern Power, the subsidiary of Southern Company that owns, builds, acquires and markets energy in the competitive wholesale supply arena. Southern Power is part of Southern Company Generation, the business unit of Southern Company that oversees both retail and wholesale generation and generation services.
Plant Oleander is located in the growing Florida market, which is part of Southern Company Generation’s competitive wholesale growth strategy, according to Ronnie Bates, president and chief executive officer of Southern Power.
“Acquisition of this facility, with its outstanding record of operations performance and with its output fully covered with two premier utilities in Florida, clearly demonstrates Southern Power’s ability to execute our focused business strategy through our disciplined approach to growing our business in targeted markets,” said Bates.
“The purchase of Oleander Power Plant is a good strategic fit for Southern Company in several respects,” Bates explained. “The acquisition of Plant Oleander expands our wholesale competitive generation business in the growing Florida market. Also, the purchase fits our risk profile, with the plant’s output covered in the near term by wholesale power contracts with creditworthy customers.
“Plant Oleander is a well-run plant with highly qualified employees, and we look forward to continuing to provide reliable, low-cost electricity to the plant’s customers,” said Bates. “We also are excited about the opportunity to serve additional customers in Florida.”
Through Southern Company Generation, Southern Company operates 272 generating units in 68 fossil plants. Among these units is the Stanton Combined Cycle Unit A, a 633-megawatt combined cycle generating unit located near Orlando, Fla. Southern Power co-owns the plant with Orlando Utilities Commission, Florida Municipal Power Agency and Kissimmee Utility Authority.
The GE gas turbine technology at Plant Oleander is similar to technology at numerous Southern Company Generation plants. The facility is fueled primarily by natural gas. Gas-fired simple-cycle and combined-cycle technology is among the cleanest and most efficient methods of producing electricity.
Plant Oleander supplies electricity through long-term wholesale contracts to Florida Power and Light (FPL) and Seminole Electric Cooperative, Inc. With the purchase of the facility completed, Southern Power assumes responsibility for these contracts. Southern Company has existing long-term wholesale power agreements with FPL as well as with other customers in Florida.
About Southern Company [ www.southerncompany.com ]
With more than 4 million customers and nearly 39,000 megawatts of generating capacity, Atlanta-based Southern Company is the premier super-regional energy company in the Southeast and a leading U.S. producer of electricity. Southern Company owns electric utilities in four states, a growing competitive generation company and a competitive retail natural gas business, 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 15 percent below the national average. Southern Company has been ranked the nation’s top energy utility in the American Customer Satisfaction Index five years in a row. Southern Company has more than 500,000 shareholders, making its common stock one of the most widely held in the United States.