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.