Southern Energy Inc., a unit of Southern Co. is selling its 50%interest in Louisiana Generating LLC to NRG Energy Inc. LouisianaGenerating, which will now be held 100% by Minneapolis-based NRG,was recently confirmed by U.S. Bankruptcy Judge Gerald H. Schiff asthe winning bidder for bankrupt Cajun Electric Power Cooperative’s1,708 MW of fossil-fueled generation. Louisiana Generating offered$1.026 billion for the Cajun assets.

Southern Energy and NRG signed an agreement earlier this yearthat gave Southern Energy the option to sell its ownership interestin Louisiana Generating to NRG upon confirmation. The agreementalso gave NRG the option to require Southern Energy to sell itsinterest in Louisiana Generating. NRG decided to exercise itsoption.

“This agreement enabled the Louisiana Generating partnership toremain a strong bidder – and ultimately the winning bidder – forthe Cajun assets. At the same time, the agreement preserved eachpartner’s options for a final decision at the end of the bankruptcyproceedings,” said Gale Klappa, president of Southern Energy’sNorth America Group.

Southern Energy develops, builds, owns and operates powerproduction and delivery facilities and provides a range of servicesto utilities and industrial companies around the world. SouthernCompany, the largest producer of electricity in the United States,is also the parent of Alabama Power, Georgia Power, Gulf Power,Mississippi Power and Savannah Electric.

NRG, a wholly owned subsidiary of Northern States Power Co., isa leading independent power producers, specializing in thedevelopment, construction, operation, maintenance and ownership ofelectric generation facilities.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.