Southern Power, Austin Energy complete sales transaction

Wholesale energy provider Southern Power and Austin Energy have completed a $460 million transaction that will deliver the Nacogdoches Generating Facility to the latter.

“The sale of the biomass facility provides benefits to Southern Power and offers Austin Energy the opportunity to own a significant regional energy resource,” Southern Power President Bill Grantham said.”Proceeds from this transaction will be used to strengthen the balance sheet of Southern Company, help meet projected equity needs and further de-risk financing plans.”

Southern Power is a leading wholesale energy provider meeting the electricity needs of municipalities, electric cooperatives, investor-owned utilities, and commercial and industrial customers. Barclays served as the financial advisor and Baker Botts served as Southern Power’s primary legal counsel.

The firm and its subsidiaries own 48 facilities operating or under construction in 11 states, with more than 11,200 MW of generating capacity in Alabama, California, Georgia, Kansas, Maine, Minnesota, Nevada, New Mexico, North Carolina, Oklahoma, and Texas.

Southern Power is a subsidiary of Southern Company, which has 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 for more than a century.