 |

Its new
generation for the next generation.
The growing energy needs of the Southeast require plenty of
power and provide us with plenty of opportunity to grow. By
the end of 2003, we plan to add 6,600 megawatts of generation,
including approximately 4,700 megawatts for the competitive
market.
Our
fast-growth business
Competitive generation is the high-growth component of Southern
Companys business plan. Our goal is to double the earnings
contribution from this part of our business over the next
five years. New generation dedicated to the competitive market
gives us the opportunity to earn higher returns in the regions
wholesale markets. The risks are known and manageable because
most of this generation will be sold under long-term contracts.
To ensure this business is run as efficiently as possible,
we have formed a new subsidiary to own, manage, and finance
our wholesale generating assets in the Southeast. Meanwhile,
our trading floor in Birmingham, Alabama which set the
standard for buying and selling wholesale energy continues
to help our competitive energy business grow as well as reduce
costs for our regulated retail customers.
Standing tall
For a concrete example of how were building for the
future, take a look at Plant Dahlberg in Georgia. With eight
units already in operation, and two more under construction,
the plant already is meeting the Southeasts growing
energy needs.
The potential to grow the competitive generation business
is huge. It is estimated that in the Southeast, the total
amount of new generating capacity required in the next 10
years will be more than 60,000 megawatts. Our knowledge of
this market is deep and spans decades. We helped create the
wholesale generation market when we began selling bulk power
to utilities in Florida in the early 1980s. With our expertise
and experience in planning, designing, siting, constructing,
marketing, and operating power plants in this part of the
country, we will continue to be a leader in the Southeasts
competitive generation business.
|