Southern Company subsidiary and Wärtsilä sign agreement to develop flexible gas power plant projects

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Jun 30, 2017, 10:00 ET

ATLANTA, June 30, 2017 /PRNewswire/ -- Today, Southern Company subsidiary Southern Power and Wärtsilä, a leading supplier of flexible generation technology, signed a Memorandum of Understanding to develop two flexible gas power plant projects, which could be as large as 450 megawatts (MW) each. Southern Power will lead this effort.

"Renewables are an important part of a diverse energy mix, and flexible generation complements the rapid growth of intermittent renewables," said Southern Power President and CEO Buzz Miller. "This agreement is an early stage in a lengthy process, but we believe this technology could be an excellent solution for our customers and for many others in the marketplace that we hope to serve through this relationship."

Southern Power is a leader in the development, installation and operation of electric power facilities and has a proven track record of operational reliability and safety. The development of flexible gas power plant projects would align with the company's overall business strategy of strengthening its wholesale business through acquiring and constructing generating assets that are substantially covered by long-term contracts with creditworthy counterparties.

"In the USA we are seeing a large demand for flexible generation and Wärtsilä provides the most efficient and fastest starting solution making this the ideal investment for customers to serve the need for flexibility. We are excited to be teaming with Southern Power, a leader in the development, installation and operation of electric power facilities with a proven track record of operational reliability and safety," said President at Wärtsilä Energy Solutions President Javier Cavada.

Today, Southern Power continues to strategically grow its portfolio of more than 12,600 MW through the acquisition and development of clean energy solutions. The company owns and operates 10 combined-cycle and combustion-turbine natural gas-fueled power plants that generate more than 9,000 MW across five states. Additionally, the company owns more than 3,000 MW of renewable generation.

After contracts signed with the cities of Denton and Tallahassee over the past 12 months, Wärtsilä continues to grow its footprint in the USA. The current installed base, including projects under construction, is more than 3,000 MW. Globally, Wärtsilä's installed power plant base is 63 GW in 176 countries.

About Southern Power
Southern Power, a subsidiary of Southern Company, is a leading U.S. wholesale energy provider meeting the electricity needs of municipalities, electric cooperatives, investor-owned utilities and other energy customers. Southern Power and its subsidiaries own 46 facilities operating or under construction in 11 states with more than 12,600 MW of generating capacity in Alabama, California, Florida, Georgia, Maine, Minnesota, Nevada, New Mexico, North Carolina, Oklahoma and Texas.

Wärtsilä in brief
Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2016, Wärtsilä's net sales totalled EUR 4.8 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com

About Southern Company
Southern Company (NYSE: SO) is America's premier energy company, with 46,000 megawatts of generating capacity and 1,500 billion cubic feet of combined natural gas consumption and throughput volume serving 9 million electric and gas utility customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric utilities in four states, natural gas distribution utilities in seven states, a competitive generation company serving wholesale customers across America and a nationally recognized provider of customized energy solutions, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and affordable prices that are below the national average. Through an industry-leading commitment to innovation, Southern Company and its subsidiaries are inventing America's energy future by developing the full portfolio of energy resources, including carbon-free nuclear, 21st century coal, natural gas, renewables and energy efficiency, and creating new products and services for the benefit of customers. Southern Company has been named by the U.S. Department of Defense and G.I. Jobs magazine as a top military employer, recognized among the Top 50 Companies for Diversity by DiversityInc, listed by Black Enterprise magazine as one of the 40 Best Companies for Diversity and designated a Top Employer for Hispanics by Hispanic Network. The company has earned a National Award of Nuclear Science and History from the National Atomic Museum Foundation for its leadership and commitment to nuclear development and is continually ranked among the top utilities in Fortune's annual World's Most Admired Electric and Gas Utility rankings. Visit our website at www.southerncompany.com.

Cautionary Notes Regarding Forward-Looking Statements:

Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the expected development of power plant projects. Southern Company and Southern Power caution that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company and Southern Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in each of Southern Company's and Southern Power's Annual Reports on Form 10-K for the year ended December 31, 2016, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the ability to control costs and avoid cost overruns during the development and construction of generating facilities, to construct facilities in accordance with the requirements of permits and licenses, and to satisfy any operational and environmental performance standards, including the requirements of tax credits and other incentives; and potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Company or Southern Power. Southern Company and Southern Power expressly disclaim any obligation to update any forward-looking information.

SOURCE Southern Company