ATLANTA - May 2, 2007 - Georgia Power recently signed a power purchase agreement (PPA) with Greenleaf Environmental Solutions, LLC, a subsidiary of Biomass Gas & Electric, LLC, to purchase 25 megawatts (MW) of capacity for use beginning September 2009. The PPA is a 20-year contract.

Greenleaf’s plant, a biomass-fueled power generating qualifying facility in Forsyth County, Ga., will be built on a site adjacent to an existing construction and demolition landfill operated by Greenleaf Recycling LLC (Greenleaf Recycling), which began operations in the fall of 2002.

This marks the first use of a “hybrid” contract for the purchase of capacity from a renewable qualifying facility that offers components of both power purchase agreements and qualifying facility contracts. Georgia Power, Biomass Gas & Electric and the Georgia Public Service Commission partnered together to create the “hybrid” contract.

Other options available for qualifying facilities to sell electricity to Georgia Power under the Federal Public Utility Regulatory Policy Act include:
• Standard non-firm contract;
• Standard contract for the purchase of capacity with fixed annual payments;
• Standard contract for the purchase of capacity with varying annual payments.

Georgia Power recently conducted a workshop for qualified facility owners to help them understand the available contract options as well as explain the differences between renewable facilities and facilities that meet the requirements of Georgia Power’s Green Energy Program.

Over the past few years, there has been a significant increase in renewable qualified facility contracts with Georgia Power, mainly due to the appeal of higher avoided cost payments and federal tax credits.

Prior to 2005, Georgia Power had less than 1 MW of renewable capacity. With the additional 25 MW in the BG&E contract, the company now has more than 55 MW under contract.

“Georgia Power is committed to expanding its renewable portfolio and this contract with Greenleaf Environmental Solutions is another exciting step in that direction,” said Oscar Harper, Georgia Power’s Vice President of Government and Regulatory Affairs and Resource Planning. “We hope that the additional contract options we’ve made available to qualified facilities will add additional flexibility to the power purchase agreement process,” said Harper.

Georgia Power is the largest subsidiary of Southern Company, one of the nation’s largest generators of electricity. The company is an investor-owned, tax-paying utility with rates well below the national average. Georgia Power serves 2.3 million customers in all but four of Georgia’s 159 counties.