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Southern's Power Sales Rise, Gas Sales Fall

Southern's Power Sales Rise, Gas Sales Fall

Southern Company Energy Marketing (SCEM), a joint venture of Southern Co. and Vastar Resources, said its second quarter electricity sales jumped 21% to 48.2 million MWh from last year's second quarter. Natural gas sales, however declined by 8% to 4.3 Bcf/d.

SCEM attributed the decline in second-quarter gas sales to a decline in market liquidity, along with expected temporary interruptions in trading while merging its Houston trading floor into its Atlanta trading floor. For the first half of the year, however, the company is 12% ahead of the 1998 pace with 5.5 Bcf/d of sales on average, compared to 4.9 Bcf/d in the first half of last year.

Power sales rose 13% for the first half of the year to 91.5 MWh. The company was the third largest seller of electricity in the first quarter of 1999, selling over 41 million MWh. If SCEM maintains this pace, it will be in line with its full year 1998 results of 185.1 million MWh, which earned second place for the year behind Enron.

"Southern Energy's newly acquired electricity generation and the output available to our energy traders had a direct impact on electricity sales," said Marce Fuller, CEO of Southern Energy. "This is another sign that our strategy to associate assets with our trading operation is working."

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