Through a new tolling deal Southern Company Energy Marketingwill have the exclusive right to supply fuel to and receive powerfrom United American Energy Corp.’s 82 MW gas-fired power plant inLowell, MA.

Southern will market and trade electricity from the plant in theNew England Power Pool. Terms of the deal were not released. Thepower plant, known as UAE Lowell Power, serves the Boston marketand is operated and managed by UAE’s eastern business unit, UAEPower Operations Corp. Bought in April, it is the first merchantpower asset acquired by United American Energy.

“This agreement will provide our trading and marketingoperations with access to readily available generation that can beoperated in a flexible manner. It also will help us serve more than300 MW of new customer load we’ve obtained in the last six weeks,”said Jay Catasein, Southern Company Energy Marketing northeastregion vice president.

“The tolling agreement with Southern Company Energy Marketingprovides UAE with a revenue stream based on our operatingperformance as opposed to energy market fluctuations,” said ReedWills, vice president of project development for UAE PowerOperations. He said the company will be doing more tolling dealsthis year.

Southern Company Energy Marketing also reported its sales ofboth electricity and natural gas were up in 1999, with electricitysales increasing by 18%. The company sold 219.35 million MW-hoursof electricity during 1999, compared with 185.51 million MW-hoursin 1998. The company sold an average of 5.4 Bcf/d of gas in 1999,compared to 5.3 Bcf/d in 1998. Fourth quarter natural gas saleswere down however in 1999 at 6.2 Bcf/d, below the 6.3 Bcf/d in 4Q1998. Fourth Quarter 1999 sales of electricity were up, however, at55.14 MW-hours, compared to 38.37 million MW-hours in 4Q 1998.

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