What are the key terms of the purchased power agreements with FP&L?

The agreements span from June 2010 to December 2015. Georgia Power and Gulf Power will provide 165 megawatts annually from Plant Scherer Unit 3, and Southern Power will provide 790 megawatts annually from Plant Harris Unit 1 and Plant Franklin Unit 1. The contracts feature fixed capacity payments, variable energy payments based on usage, and payments for firm gas transportation.

What is the total capacity being sold under these agreements?

The total capacity committed to Florida Power & Light under these agreements is 955 megawatts, comprising 165 megawatts from Plant Scherer Unit 3 and 790 megawatts from Plant Harris Unit 1 and Plant Franklin Unit 1.

Are these agreements guaranteed to be finalized?

No, the agreements are contingent upon certain events, including approval by the Florida Public Service Commission. The final outcome depends on these regulatory approvals.

When will these purchased power agreements become effective?

The agreements are set to become effective starting in June 2010 and will continue through December 2015.

SOUTHERN CO 8-K SEC Disclosure

Summary

This 8-K filing from Southern Company (SO) reports on purchased power agreements entered into by its subsidiaries, Georgia Power Company, Gulf Power Company, and Southern Power Company, with Florida Power & Light (FP&L) on August 12, 2004. These agreements, effective from June 2010 through December 2015, involve the sale of significant electricity capacity from jointly owned power plants. Specifically, Georgia Power and Gulf Power will provide 165 megawatts annually from Plant Scherer Unit 3, while Southern Power will supply 790 megawatts from Plant Harris Unit 1 and Plant Franklin Unit 1. The contracts include provisions for fixed capacity payments, variable energy payments based on usage, and firm gas transportation payments from FP&L. The primary impact for investors relates to the long-term revenue streams generated by these capacity sales, which are secured by fixed capacity payments. While the agreements are substantial, they are contingent upon regulatory approvals, notably from the Florida Public Service Commission. Investors should monitor the progress of these approvals, as their finalization is crucial for the realization of these contracts and the associated financial benefits for Southern Company and its subsidiaries.

Key Highlights

1Southern Company subsidiaries (Georgia Power, Gulf Power, Southern Power) entered into long-term purchased power agreements with Florida Power & Light (FP&L).
2Agreements are for the period June 2010 through December 2015, indicating a forward-looking revenue stream.
3Total capacity committed to FP&L is 955 megawatts (165 MW from Plant Scherer Unit 3 + 790 MW from Plant Harris Unit 1 and Plant Franklin Unit 1).
4Contracts include fixed capacity payments, providing revenue predictability.
5Variable energy payments are based on actual energy delivered, linking revenue to usage.
6FP&L will also make payments for firm gas transportation, adding another revenue component.
7These agreements are contingent upon regulatory approvals, including from the Florida Public Service Commission.

SOUTHERN CO 8-K Report (Aug 16, 2004)

Summary

Key Highlights

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