Southern Energy locks up access to turbines for North America, Europe

ATLANTA, Dec. 21, 2000 (PRNewswire) à‚– Southern Energy Inc. (NYSE: SOE) has agreed to buy from GE Power Systems up to 55 turbines of various types for power generation in North America and nine “power islands” for use in Europe.

The European portion of the agreements moves Southern Energy closer to its goal of establishing generation along a north-south corridor in continental Europe.

“These machines are an important part of Southern Energy’s goal to own or control 10,000 to 12,000 megawatts of power in continental Europe in the coming years,” said Marce Fuller, president and chief executive officer of Southern Energy.

Southern Energy markets electricity and related commodities and provides energy risk management services to European customers through its European marketing operation, based in Amsterdam. Southern Energy also owns a 26- percent interest in Bewag, the electric utility serving Berlin, operates business development offices in Milan, Berlin and Zurich, and partially owns and operates Western Power Distribution in the United Kingdom.

The nine European power islands, each with 386 megawatts of generation capacity, are for delivery through early 2004. They each consist of one GE 9FA gas turbine, one heat recovery steam generator, one steam turbine and one electric generator.

The U.S. portion of the agreements, signed Wednesday, finalizes plans to buy the turbines necessary to helping Southern Energy reach its goal of owning or operating 30,000 megawatts of electric generation capacity in North America by 2004. The turbine acquisition plan has been mentioned previously in a prospectus associated with the company’s initial public offering last September.

In the U.S., the company has agreed to take delivery through 2003 of 30 gas-fueled GE 7FA turbines with a capacity of 170 megawatts each, 18 gas- fueled 7EA turbines with a capacity of 85 megawatts each, and seven 192- megawatt steam turbine-generators, which can be used in conjunction with the gas-fueled turbines to create a highly efficient “combined cycle” configuration.

Southern Energy Inc. is a global independent power producer and a leading energy marketing and risk-management company, with extensive operations in North America, Europe and Asia. Southern Energy owns more than 17,600 megawatts of electric generating capacity around the world, including about 12,400 megawatts in the United States, with more than 7,000 megawatts under advanced development. Southern Energy is 80 percent owned by Southern Company (NYSE: SO).

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