Exhibit 99
News
News Media Contact:
David Mould, (770) 821-7531
James Peters, (678) 579-5266
http://www.southernco.com
June 8, 2000
Southern Energy to acquire power plants serving D.C. area
WASHINGTON, D.C. - Southern Energy Inc. has signed an agreement to
acquire power plants with electric generating capacity totaling 5,154 megawatts
and other assets from Potomac Electric Power Company (Pepco) for $2.65 billion.
The transaction involves four power plants: the 837-megawatt Dickerson
Station, fueled by coal, oil and natural gas in Montgomery County, Md.; the
2,423-megawatt Chalk Point Station, fueled by coal, oil and natural gas in
Prince George's County, Md.; the 1,412-megawatt Morgantown Station, fueled by
coal and oil in Charles County, Md.; and the 482-megawatt Potomac River Station,
fueled by coal in Alexandria, Va.
Southern Energy has agreed to sell power from the power plants back to
Pepco for up to four years. Southern Energy also will acquire the Piney Point
Oil Pipeline, a 51.5-mile pipeline serving the Maryland power plants, Pepco's
rights and obligations to the 84-megawatt Southern Maryland Electric Cooperative
combustion turbine, and an engineering and maintenance service facility.
Southern Energy, a unit of Southern Company, was selected as purchaser
of the assets in a bid process initiated by Pepco. The acquisition is expected
to close later this year, pending regulatory approvals.
About 1,000 Pepco employees will become Southern Energy employees.
Southern Energy also will assume some of Pepco's power purchase and
delivery agreements and will operate and maintain two other Pepco power plants,
the 256-megawatt Buzzard Point Generation Station and the 550-megawatt Benning
Generation Station. Both plants, located in Washington, D.C., are fueled by oil
and used when demand for electricity is at its peak.
Credit Suisse First Boston advised Southern Energy on the transaction
and, in addition, has agreed to provide funds to cover the cost of the
acquisition.
(more)
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NEWS RELEASE 2 JUNE 8, 2000
Southern Energy Inc. - with operations in 13 countries on five
continents - develops, builds, owns and operates power production and delivery
facilities and provides a broad range of services to utilities and industrial
companies around the world. Its Southern Company Energy Marketing unit provides
energy marketing, risk management and financial services and other
energy-related commodities, products and services to customers in the United
States and Canada.
Southern Company (NYSE: SO), the largest producer of electricity in the
United States, is also the parent firm of Alabama Power, Georgia Power, Gulf
Power, Mississippi Power and Savannah Electric.
Pepco is an investor-owned company that engages in regulated utility
operations and diversified competitive energy and telecommunications businesses
through its wholly owned subsidiaries. The utility delivers electricity to 1.9
million people in Washington D.C. and major portions of Prince George's and
Montgomery counties in suburban Maryland and sells electricity at wholesale to
the Southern Maryland Electric Cooperative Inc.
Caution regarding forward-looking statements:
The information presented above includes forward-looking statements, in
addition to historical information. Southern Energy cautions that there can be
no assurance that such indicative results will be realized and that there are
various important factors that could cause actual results to differ materially
from those indicated in the forward-looking statements, such as, but not limited
to (i) changes in government regulations (including environmental regulations)
and anticipated deregulation of the electric energy industry; (ii) additional
competition in Southern Energy's markets; (iii) potential business strategies,
including acquisitions or dispositions of assets that Southern Energy may
pursue; (iv) political, legal and economic conditions and developments in
Southern Energy's markets; (v) financial market conditions and the results of
financing efforts; (vi) changes in commodity prices and interest rates; (vii)
weather and other natural phenomena; (viii) the performance of Southern Energy
projects and investments and the success of efforts to develop new
opportunities; and (ix) other factors, whether discussed above or in reports
filed by Southern Energy and Southern Company (and its subsidiaries) with the
Securities and Exchange Commission.
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