Southern Company Energy Marketing enters tolling agreement with Engage Energy US, L.P.
ATLANTA Southern Company Energy Marketing will be the wholesale supplier of 300 megawatts of electric generating capacity to Engage Energy US, L.P.
Southern Company Energy Marketing, in what is known as a tolling agreement, will convert natural gas provided by Engage Energy into electricity that Engage Energy can then sell. The five-year agreement will make use of a power plant Southern Energy Inc. plans to have running in Zeeland, Mich., in mid-2001. Southern Energy is a parent company of Southern Company Energy Marketing.
The purchase of this tolling capacity from Southern Company Energy Marketing supports Engages objective of acquiring strategic resources in core market regions. This capacity will enhance Engages ability to customize power and natural gas products in Michigan and the upper Midwest markets, said Clark C. Smith, president and CEO of Engage Energy.
Southern Company Energy Marketing is jointly owned by Southern Energy Inc. and Vastar Resources Inc. Southern Company Energy Marketing provides energy marketing, risk management and financial services and other energy-related commodities, products and services to customers in North America.
Southern Energy Inc. with operations in 13 countries on five continents 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 Energys parent company, Southern Company (NYSE: SO), is the largest producer of electricity in the United States, and is also the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric.
Engage Energy is a joint venture company of The Coastal Corporation (NYSE:CGP), a Houston-based diversified energy holding company with consolidated assets of more than US $15 billion, and Westcoast Energy Inc., of Vancouver, British Columbia, a major Canadian natural gas company with assets of more than CAN $11 billion. The Coastal Corporation and El Paso Energy Corporation announced on January 18, 2000, a definitive agreement to merge the two companies, subsequent to various approvals. Engage Energy offers a full spectrum of energy services including natural gas and electricity sales and trading activities, energy management services, structured storage and transportation services, power management, and energy risk management and financial services. Additional information about Engage Energy is available at www.engageenergy.com.
Caution regarding forward-looking statements:
The information presented above includes forward-looking statements, in addition to historical information. Southern Energy cautions that there can be no assurance that such indicative results will be realized and that there are various important factors that could cause actual results to differ materially from those indicated in the forward-looking statements, such as, but not limited to (i) changes in government regulations (including environmental regulations) and anticipated deregulation of the electric energy industry; (ii) additional competition in Southern Energys markets; (iii) potential business strategies, including acquisitions or dispositions of assets that Southern Energy may pursue; (iv) political, legal and economic conditions and developments in Southern Energys markets; (v) financial market conditions and the results of financing efforts; (vi) changes in commodity prices and interest rates; (vii) weather and other natural phenomena; (viii) the performance of Southern Energy projects and investments and the success of efforts to develop new opportunities; and (ix) other factors, whether discussed above or in reports filed by Southern Energy and Southern Company (and its subsidiaries) with the Securities and Exchange Commission.
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