ATLANTA, April 18, 2019 /PRNewswire/ -- Southern Power, a leading U.S. wholesale energy provider and subsidiary of Southern Company, today announced that it has entered into an agreement to sell the Nacogdoches Generating Facility to Austin Energy for $460 million.
Southern Power began commercial operation of the Nacogdoches Generating Facility in Sacul, Texas, in 2012. The 115-megawatt (MW) plant serves electricity needs in Austin, Texas under a long-term power purchase agreement with Austin Energy.
"The Nacogdoches Generating Facility is one of the largest wood-fired biomass plants in the United States and has been a part of Southern Power's generation fleet since 2012, demonstrating strong operating performance," said Southern Power President and CEO, Mark Lantrip. "This transaction provides benefits to Southern Power and offers Austin Energy the opportunity to own a significant regional energy resource. Southern Power will continue providing clean, safe, reliable and affordable wholesale energy to customers with a diverse group of assets that includes one of the largest carbon-free renewable energy portfolios in the United States."
The $460 million purchase price is subject to customary closing adjustments. The transaction is expected to close in mid-2019, subject to customary closing conditions. Proceeds will be used to strengthen the balance sheet of Southern Company, help meet projected equity needs and further de-risk financing plans.
Barclays is serving as the financial advisor and Baker Botts is serving as primary legal counsel to Southern Power.
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 commercial and industrial customers. Southern Power and its subsidiaries own 48 facilities operating or under construction in 11 states with more than 11,300 MW of generating capacity in Alabama, California, Georgia, Kansas, Maine, Minnesota, Nevada, New Mexico, North Carolina, Oklahoma and Texas.
About Southern Company
Southern Company (SO) is a leading energy company serving 9 million customers through its subsidiaries as of Jan. 1, 2019. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women's Choice Award. To learn more, visit www.southerncompany.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements, among other things, concerning the expected timing of the completion of the disposition described herein and the expected benefits of such disposition. These forward-looking statements are often characterized by the use of words such as "expect," "anticipate," "plan," "believe," "may," "should," "will," "could," "continue" and the negative or plural of these words and other comparable terminology. Although Southern Company and Southern Power believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, including, but not limited to, factors and assumptions regarding the items outlined above. Actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things, the following: the inability to achieve the expected financial benefits of the proceeds generated by the transaction; the risk that a condition to closing of the disposition may not be satisfied; and other risk factors relating to the energy industry, as detailed from time to time in Southern Company's and Southern Power's reports filed with the Securities and Exchange Commission. There can be no assurance that the disposition will in fact be consummated.
Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in Southern Company's and Southern Power's Annual Reports on Form 10-K for the fiscal year ended December 31, 2018 and subsequent securities filings. Southern Company and Southern Power caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on forward-looking statements to make decisions with respect to Southern Company or Southern Power, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. All subsequent written and oral forward-looking statements concerning the disposition or other matters attributable to Southern Company or Southern Power or any other person acting on their behalf are expressly qualified in their entirety by the cautionary statements referenced above. The forward-looking statements contained herein speak only as of the date of this release. Southern Company and Southern Power undertake no obligation to update or revise any forward-looking statement, except as may be required by law.
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