LITTLE ROCK, Ark. - June 5, 2007 - Meeting the growing demand for electricity in the United States and the Southeast will require a broad mix of resources including new generating capacity and efficiency initiatives, according to Southern Company chairman, president and CEO David Ratcliffe. Speaking Monday at the annual conference of the Southeastern Association of Regulatory Utility Commissioners (SEARUC) in Little Rock, Ark., Ratcliffe said there is no “magic formula” to meet all the challenges facing the utility industry.
“We believe that our strategy for handling energy demands in an environmentally responsible, reliable manner mandates a mix of fuels and programs,” Ratcliffe said.
Ratcliffe explained that the United States will require about 292,000 megawatts of new generating capacity by 2030 while electricity demand in the Southeast is expected to jump more than 32 percent over the next 15 years.
“Planning on how we will meet demand means we must consider the construction of new plants,” he said. Southern Company currently has more than 42,000 megawatts of capacity, and projects the need for as much as 17,000 megawatts of additional capacity between now and 2025.
Ratcliffe noted that Southern Company is considering constructing a new nuclear generating unit at its Plant Vogtle site near Augusta, Ga. “We also know nuclear power has huge environmental benefits because of its zero emissions of carbon,” he said.
Ratcliffe said coal is also a viable option, noting that coal is America’s most abundant domestic fuel source.
“That’s why we have been committed for more than two decades to helping find ways to burn coal more cleanly and efficiently, often in partnership with the U.S. Department of Energy,” Ratcliffe said. “Currently we are working with the Energy Department and the Orlando Utilities Commission to build a commercial-scale plant in Orlando using integrated gasification combined cycle technology.”
Southern Company’s Transport Integrated Gasifier can produce the same amount of energy as existing pulverized-coal technologies with significantly less emission of sulfur dioxide, nitrogen oxides and mercury, and 20 percent less emission of carbon dioxide.
In addition to nuclear and clean coal technologies, Ratcliffe said renewable fuel sources play an important role in preserving fuel diversity. Referring to pending federal legislation that would require a minimum percentage of a utility’s electricity to come from renewables, Ratcliffe endorsed a realistic approach.
“We believe that any federal standard should give the states maximum flexibility to develop their own standards and should allow for a broad range of renewables and provide credit for energy efficiency,” he said. “At the same time, it cannot affect reliability or create an economic hardship on consumers or utilities.”
Ratcliffe said that energy efficiency programs are also an important part of Southern Company’s overall strategy.
“Southern Company’s demand-side and energy efficiency efforts have helped us avoid building more than 3,000 megawatts of peaking capacity since the 1990s, which is about 7 percent of our current total capacity,” Ratcliffe said.
Southern Company will meet the increasing energy demands of its customers while continuing its commitment to the environment, said Ratcliffe. He noted that that, from 2002 through 2005, Southern Company spent $1.6 billion on environmental capital projects. During the next three years, Southern Company plans to spend $4.6 billion on additional environmental controls. “Southern Company is working hard to help America implement practical, common-sense solutions to the challenge of providing more electricity with less environmental impact,” said Ratcliffe.
“Over the past quarter-century we have done a great job of providing our customers with a wonderful product at a reasonable price,” Ratcliffe concluded. “Meeting our customers’ expectations with regard to reliability, affordability and respectability must be our constant goal.”
About Southern Company:
With 4.3 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast, one of America’s fastest-growing regions. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are significantly below the national average. Southern Company has been listed the top ranking U.S. electric service provider in customer satisfaction for seven consecutive years by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com.
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