Southern Company, through its Southern Energy Inc. subsidiary, has completed its purchase of State Line Generating Station in Hammond, Ind., for $68 million.
Southern Energy acquired the 490-megawatt coal-fired plant from ComEd and now owns 100 percent of the facility, which is located near the Illinois state line between Gary, Ind., and Chicago.
State Line gives us the presence weve long wanted in the region, said Marce Fuller, senior vice president over Southern Energys North American operations. The plant is an important part of our efforts to become a national energy provider.
The plant provides 490 megawatts of generating capacity to ComEd under the terms of a 15-year power purchase agreement. Each of the plants two units burns low-sulfur coal from the Powder River Basin.
During the first 18 months of ownership, Southern Energy plans to invest about $65 million to refurbish the two units. The upgrades will improve plant availability ratings and help the facility maintain a high level of personnel safety.
Southern Company (NYSE: SO), the largest producer of electricity in the United States, is the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Based in Atlanta, Southern Company supplies electricity in nine countries on four continents and provides energy-related marketing, trading and technical services and wireless telecommunications. Southern Companys common stock is one of the 20 most widely held corporate stocks in America.
Southern Energy Inc., a unit of Southern Company, 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.