ATLANTA AND HOUSTON -- Southern Company today announced that Southern Wholesale Energy, the marketing and trading arm representing Southern Companys Southeast generating plants, has completed negotiations and recently signed a wholesale power supply contract to provide Dynegy Inc. (NYSE: DYN) with 260 megawatts (MWs) of power.
Todays announcement marks the second wholesale power agreement this year between Southern Wholesale Energy and Dynegy. In March, the two parties announced their first long-term agreement.
Were pleased to have a growing business relationship with Dynegy, said Doug Jones, vice president of Southern Wholesale Energy. We are continuing to execute our strategy of developing reliable, competitive generation to meet the demands of the Southeast wholesale power market.
This agreement provides valuable capacity in the constrained Southeastern Electric Reliable Council region, said Louis Dorey, president of Energy Marketing and Origination at Dynegy Inc. Our continued execution toward a 10 to 15 percent market share of the wholesale power market is advanced by the acquisition of this capacity.
On behalf of Southern Companys five Southeast utilities, Southern Wholesale Energy manages long-term contracts supplying more than 5,000 MW of electricity to wholesale customers in the region. In addition, Southern Company will add nearly 8,000 MW of new environmentally sensitive gas-fired generation in the region by 2003 to meet the growing needs of its customers.
Including this agreement, Dynegy owns or controls an electric generation portfolio of more than 23,500 MW throughout North America.
Dynegy Inc. is one of the countrys leading marketers of energy products and services. Through its leadership position in energy marketing, power generation, transportation, gathering and processing, the company provides energy solutions to its customers primarily in North America, the United Kingdom and Europe. For more information, see Dynegys website at www.dynegy.com.
Southern Company (NYSE: SO) is an international energy company that operates more than 48,000 megawatts of electric generating capacity worldwide. It is the largest producer of electricity in the United States and one of the worlds largest independent power producers. Southern Company subsidiaries and their affiliates serve 12 million retail customers worldwide and millions more through the wholesale market. Based in Atlanta, Southern Company is the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power, Savannah Electric and Southern Energy, Inc.
Southern Company has operations in 13 countries on five continents and has a growing presence in North America outside the Southeast. Southern Company also provides energy-related marketing, risk management and technical services in the United States and Europe and offers Southern LINC wireless telecommunications.