Southern Company subsidiary to acquire second wind project, surpassing 1,600 MW of renewable generation development

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Sep 09, 2015, 08:30 ET

ATLANTA, Sept. 9, 2015 /PRNewswire/ -- Southern Company subsidiary Southern Power today announced an agreement to acquire the company's second wind project – the 151-megawatt (MW) Grant Wind facility in Oklahoma – from Apex Clean Energy. The acquisition is expected to close in March 2016 upon successful completion of project construction.

"Southern Company is committed to the full portfolio and this project is an important step in further expanding our fuel mix," said Southern Company Chairman, President and CEO Thomas A. Fanning. "Our second wind project and one of Southern Power's more than 20 renewable projects across America, the Grant Wind facility is a smart investment that expands our company's presence in a region with exceptional wind resources."

In March, Southern Power announced an agreement to acquire its first wind project – the 299-MW Kay Wind facility in Oklahoma, also from Apex Clean Energy – which is expected to close in the fourth quarter of 2015.

With the addition of the Grant Wind facility, Southern Power's renewable ownership is expected to reach more than 1,600 MW, with 21 solar, wind and biomass facilities either announced, acquired or under construction. Across its system, Southern Company has added or announced more than 3,400 MW of renewable generation since 2012.

Located in Grant County, Oklahoma, the project is expected to utilize 66 wind turbines manufactured by Siemens and will be capable of generating enough electricity to help meet the energy needs of approximately 50,000 average U.S. homes.

Apex Clean Energy is managing the construction of Grant Wind and, upon completion, will operate and maintain the facility. IEA Renewable Energy, a wholly owned subsidiary of Infrastructure and Energy Alternatives (IEA), is serving as the engineering, procurement and construction contractor. Construction began in August, and the plant is expected to achieve commercial operation in March 2016.

The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under 20-year power purchase agreements with Western Farmers Electric Cooperative, East Texas Electric Cooperative and Northeast Texas Electric Cooperative. The companies have each contracted for approximately 50 MW and will have the option to either keep or sell the RECs.

The Grant Wind project fits Southern Power's business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts.

Southern Power, a subsidiary of Southern Company, is a leading U.S. wholesale energy provider meeting the electricity needs of municipalities, electric cooperatives and investor-owned utilities. With the completion of this acquisition, Southern Power and its subsidiaries will own or have rights to 30 facilities operating or under construction in nine states with more than 10,200 MW of generating capacity in Alabama, California, Florida, Georgia, Nevada, New Mexico, North Carolina, Oklahoma and Texas.

With more than 4.5 million customers and approximately 46,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast through its subsidiaries. A leading U.S. producer of clean, safe, reliable and affordable electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, 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 nuclear, 21^st 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, listed by Black Enterprise magazine as one of the 40 Best Companies for Diversity and designated a 2014 Top Employer for Hispanics by Hispanic Network. The company earned the 2014 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 Note 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 consummation of the acquisitions of the Grant Wind facility in Oklahoma and the Kay Wind facility in Oklahoma, the construction and subsequent operation of the Grant Wind facility and the future generating capacity of Southern Power and its subsidiaries' facilities. 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, 2014, 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.

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