Southern Company Energy Marketing establishes Canadian energy marketing operation

CALGARY, Alberta – Southern Company Energy Marketing today opened an energy marketing operation in Western Canada in conjunction with the signing of an arrangement to manage the business of Pan-Alberta Gas Ltd.

The new Canadian energy marketing operation has about 60 employees, most of whom previously worked in Pan-Alberta’s energy marketing operations. Southern Company Energy Marketing announced in January that it had agreed in principle to manage the assets of Pan-Alberta, Canada’s second-largest exporter of natural gas.

“Southern Company Energy Marketing’s new Canadian-based operations will provide energy marketing services beyond the management of Pan-Alberta’s assets, including additional activities in Canada and the Northwest and Midwest United States,” said Gary Morsches, president of Southern Company Energy Marketing.

Rod Pocza, formerly president of Pan-Alberta, becomes a regional vice president at Southern Company Energy Marketing and president of the Canadian operations. The Canadian office will offer the same full range of energy services available through Southern Company Energy Marketing’s Atlanta operations, including energy marketing, trading and producer services.

Southern Company Energy Marketing has marketed about 7 billion cubic feet of natural gas per day, while Pan-Alberta has marketed about 1.2 billion cubic feet per day. Pan-Alberta is owned by more than 400 Western Canada natural gas producers and has nearly US$1.5 billion in sales annually. Pan-Alberta’s assets include long-term dedicated gas supply arrangements and more than 1.2 billion cubic feet per day of pipeline transportation capacity. As part of the agreement, Southern Company Energy Marketing purchased Pan-Alberta’s 11 billion cubic feet of storage capacity for an undisclosed amount.

Southern Company Energy Marketing is jointly owned by Southern Energy Inc. and Vastar Resources Inc. Southern Company Energy Marketing provides energy marketing, risk management and financial services and other energy-related commodities, products and services to customers in North America.

Southern Energy Inc. – with operations in 13 countries on five continents – develops, builds, owns and operates power production and delivery facilities and provides a broad range of services to utilities and industrial companies around the world.

Southern Energy’s subsidiaries and affiliates include Freeport Power Co. in the Bahamas; Western Power Distribution in England; Bewag, the electric utility serving Berlin, Germany; EDELNOR, the power producer serving northern Chile; CEMIG, an electric utility in Brazil; the Power Generation Company of Trinidad and Tobago; the Alicura power station in Argentina; the Southern Energy Europe marketing and risk management operation, based in the Netherlands; Southern Energy Asia-Pacific, with operations in the Philippines, China and Australia; and U.S. power stations in Massachusetts, New York, Texas, California, Virginia, Indiana and Wisconsin.

Southern Company (NYSE: SO), the largest producer of electricity in the United States, is also the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric.

The Canadian office for Southern Company Energy Marketing is located at:

Caution regarding forward-looking statements:

The information presented above includes forward-looking statements, in addition to historical information. Southern Energy cautions that there can be no assurance that such indicative results will be realized and that there are various important factors that could cause actual results to differ materially from those indicated in the forward-looking statements, such as, but not limited to (i) changes in government regulations (including environmental regulations) and anticipated deregulation of the electric energy industry; (ii) additional competition in Southern Energy’s markets; (iii) potential business strategies, including acquisitions or dispositions of assets that Southern Energy may pursue; (iv) political, legal and economic conditions and developments in Southern Energy’s markets; (v) financial market conditions and the results of financing efforts; (vi) changes in commodity prices and interest rates; (vii) weather and other natural phenomena; (viii) the performance of Southern Energy projects and investments and the success of efforts to develop new opportunities; and (ix) other factors, whether discussed above or in reports filed by Southern Energy and Southern Company (and its subsidiaries) with the Securities and Exchange Commission.

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