Southern Energy Inc. (SEI), one of Southern Co.’s mainsubsidiaries, named S. Marce Fuller its new CEO last week. Underthe leadership of the former CEO, Tom Boren, SEI reported $69million in second-quarter 1999 earnings, compared with $25 millionfor the same period last year. Now it is up to Fuller to continuehis success.

“[Boren] brought Southern Energy along from its infancy to whereit is today, one of the world’s largest independent power producerswith assets of nearly $14 billion. With Tom’s aggressive guidance,he helped make Southern Company an international energy company,”said Bill Dahlberg, Southern Co. CEO.

Boren announced he was resigning recently in order to pursueother opportunities.

Fuller, 39, has been serving as executive vice president ofSouthern Energy and president and CEO of Southern Company EnergyMarketing (SCEM), a joint venture of Southern Energy and VastarResources. In her new role, Fuller will direct Southern Energy’sworldwide operations, which include electric power production,delivery or trading facilities in the United States and abroad.

Overall, Southern Co. earned $314 million or 45 cents/share inthe second quarter of 1999, compared with $270 million or 39cents/share for the comparable period a year earlier. Dahlberg saidSEI was the main cog in the parent company’s success.

“Our strategy has been to expand our growth in the competitiveenergy supply business, and Southern Energy continues to help us dothat successfully and profitably,” Dahlberg said.

After adjusting for interest on inter-company debt, SouthernEnergy reported $77 million in earnings, compared with $35 millionfor the second quarter of 1998.

Meanwhile, at Fuller’s old shop, SCEM, second quarterelectricity sales jumped 21% to 48.2 million MWh from last year’ssecond quarter. Natural gas sales, however declined by 8% to 4.3Bcf/d.

SCEM attributed the decline in second-quarter gas sales to adecline in market liquidity, along with expected temporaryinterruptions in trading while merging its Houston trading floorinto 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/dof sales on average, compared to 4.9 Bcf/d in the first half oflast 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 thefirst quarter of 1999, selling over 41 million MWh. If SCEMmaintains this pace, it will be in line with its full year 1998results of 185.1 million MWh, which earned second place for theyear behind Enron.

“Southern Energy’s newly acquired electricity generation and theoutput available to our energy traders had a direct impact onelectricity sales,” Fuller said. “This is another sign that ourstrategy to associate assets with our trading operation isworking.”

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