Southern Company`s Southern Energy subsidiary to sell interest in Louisiana Generating to NRG Energy
ATLANTA Southern Energy Inc., a unit of Southern Company, today announced that it is selling its 50 percent interest in Louisiana Generating LLC to NRG Energy, Inc.
Louisiana Generating, which will now be held 100 percent by Minneapolis-based NRG, was recently confirmed by U.S. Bankruptcy Judge Gerald H. Schiff as the winning bidder for bankrupt Cajun Electric Power Cooperatives 1,708 megawatts of fossil-fueled generation. Louisiana Generating offered $1.026 billion for the Cajun assets.
Southern Energy and NRG signed an agreement earlier this year that gave Southern Energy the option to sell its ownership interest in Louisiana Generating to NRG upon confirmation. The agreement also gave NRG the option to require Southern Energy to sell its interest in Louisiana Generating. NRG decided to exercise its option.
Were very pleased with the final outcome. This agreement enabled the Louisiana Generating partnership to remain a strong bidder and ultimately the winning bidder for the Cajun assets. At the same time, the agreement preserved each partners options for a final decision at the end of the bankruptcy proceedings, said Gale Klappa, president of Southern Energys North America Group.
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. Southern Energy, through its subsidiaries, supplies electricity in 10 countries on four continents. Its Southern Company Energy Marketing subsidiary, jointly owned with Vastar Resources Inc., provides energy trading, marketing and financial services and other energy-related commodities, products and services to customers in North America.
Southern Company (NYSE: SO), 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.