Southern Company launched a new subsidiary, Southern Power Co.,this week that will own, manage and finance wholesale generatingassets in the Southeast. The subsidiary will market to wholesalecustomers in the fastest-growing wholesale electricity market inthe country.

“We expect that this will allow us to move faster and moreaggressively in seizing wholesale opportunities throughout theSouth,” said Charles McCrary, Southern Co.’s chief productionofficer. “We also believe this innovative approach to providingmarket- based wholesale generating assets continues to move ourregion toward competitive energy markets in a staged, orderlyfashion. Our goal is to play a major role in serving the region’sgrowth and to continue to expand our presence outside of ourtraditional core service territory.” McCrary also was appointedpresident of the new subsidiary.

Southern Power hopes to grow income by 15% annually over thenext five years so that Southern Co.’s earnings from wholesalemarket sales will more than double. The company estimates that by2005, the subsidiary will have developed or acquired more than7,500 MW of power dedicated to the competitive wholesale business.Southern Power has also set the goal of owning more than 15,000 MWin the next 10 years.

Spokesman Mike Tyndall said the idea for the Southern Powersubsidiary was developed late last year. He added that with the SECapproval, Southern Power is now a registered operating subsidiaryof the parent company.

Tyndall said the development of this most recent unit has norelation to the company’s previously announced plans to spin-offSouthern Energy into its own investor-owned company. The spin-off,which was first announced in April 2000, is still on track forseparation in the beginning of April this year, said the spokesman(see Daily GPI, April 19, 2000; Nov. 28, 2000).

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