ATLANTA, March 31, 2015 /PRNewswire/ -- Southern
Company subsidiary Southern Power today announced an agreement to
acquire the company's largest renewable electric generating plant
and first wind project – the 299-megawatt (MW) Kay Wind facility in
Oklahoma – from Apex Clean Energy.
The acquisition is expected to close in late 2015 upon successful
completion of the project.
"Southern Company first earned a reputation as a national leader
in renewables through Southern Power's investments in utility-scale
solar," said Southern Company Chairman, President and CEO
Thomas A. Fanning. "Through the
acquisition of the Kay Wind project – the Southern Company system's
first wind facility and largest renewable energy project to date –
we are further diversifying our generation portfolio by expanding
to a region with abundant wind resources."
The facility is being built and will be operated and maintained
by Apex Clean Energy. Blattner Energy, Inc. has constructed 12
facilities in Oklahoma and will
serve as the engineering, procurement and construction contractor.
The plant is expected to achieve commercial operation in the fourth
quarter of 2015.
Located in Kay County,
Oklahoma, the project is expected to use 130 wind turbines
manufactured by Siemens Energy, Inc. and will be capable of
generating enough electricity to help meet the energy needs of
approximately 100,000 average U.S. homes.
The electricity and associated renewable energy credits (RECs)
generated by the facility will be sold under 20-year power purchase
agreements with Westar Energy, Inc. in Kansas and Grand River Dam Authority (GRDA) in
Oklahoma. Westar Energy, Inc. has
contracted for approximately 199 MW and GRDA has contracted for
approximately 100 MW. Both companies will have the option to either
keep or sell the RECs.
Serving nearly 700,000 customers for more than a century, Westar
Energy, Inc. is Kansas' largest
electric utility. GRDA is Oklahoma's state-owned electric utility that
directly or indirectly provides electricity to 75 of the 77
counties in the state.
With the addition of the Kay Wind project, Southern Power will
own more than 970 MW of renewable energy generating capacity that
is either already in operation or under development. The company
owns seven solar projects in partnership with Turner Renewable
Energy and one solar project in partnership with First Solar.
Southern Power also owns one of the nation's largest biomass power
plants in Nacogdoches, Texas, and
has recently announced plans to develop a 131-MW solar facility in
Taylor County, Georgia, and two
projects in south Georgia's
Decatur County totaling 99 MW.
The Kay 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 22 facilities operating or under construction
in nine states with more than 9,400 MW of generating capacity in
Alabama, California, Florida, Georgia, Nevada, New
Mexico, North Carolina,
Oklahoma and Texas.
Apex Clean Energy is an independent renewable energy company
focused on building utility-scale generation facilities. Apex is
constructing one of the nation's largest, most-diversified
portfolios of renewable energy resources, capable of producing more
than 10,000 MW of clean energy. Apex has announced more than 750 MW
of power purchase agreements since 2013. In the coming year, Apex
will bring five new U.S. wind energy facilities online, comprising
more than 1,000 MW of capacity. Apex will provide asset management
services on four of these facilities, representing more than 800 MW
of capacity.
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 energy innovation, excellent customer service,
high reliability and retail electric prices that are below the
national average. Southern Company and its subsidiaries are leading
the nation's nuclear renaissance through the construction of the
first new nuclear units to be built in a generation of Americans
and are demonstrating their commitment to energy innovation through
the development of a state-of-the-art coal gasification plant.
Southern Company has been recognized by the U.S. Department of
Defense and G.I. Jobs magazine as a
top military employer, listed by DiversityInc as a top company for
Blacks and designated a 2014 Top Employer for Hispanics by Hispanic
Network. The company received the Edison Award from the Edison
Electric Institute for its leadership in new nuclear development,
was named Electric Light & Power magazine's Utility of the Year
for 2012 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 acquisition of the Kay Wind facility in
Kay County, Oklahoma, the
construction and subsequent operation of the Kay Wind facility and
the solar facilities in Taylor County,
Georgia, and Decatur County,
Georgia, 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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SOURCE Southern Company