LAGUNA PARK, Texas – Southern Energy Inc. announced that its 300-megawatt natural gas-fired power plant in Bosque County, Texas began commercial operation.

The plant, located on 300 acres in Bosque County, is west of Whitney, Texas, and a mile south of Whitney Dam on the Brazos River. It will provide “peaking” electricity, particularly during the hot summer months when electricity demand is at its highest.

The Bosque plant will be part of Southern Company Energy Marketing’s portfolio to help meet the growing power demand of the Texas market place.

The plant operates as a low-emission peaking plant under the Texas Natural Resource Conservation Commission standards, which limits the facility of emitting less than 25 tons a year of particulate matter. Other emissions also are below TNRCC thresholds.

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. Its Southern Company Energy Marketing unit provides energy marketing, risk management and financial services and other energy-related commodities, products and services to customers in the United States and Canada.

Southern Company (NYSE: SO), Southern Energy’s parent and 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.

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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