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Petroleum industry

Southern Company's Unregulated Business Unit Sees Rapid Growth, Plans New Headquarters

Strategic Insights

— 2 min read

Southern Company's unregulated business unit, Southern Energy Inc., is poised for significant growth as it moves into a new $64 million office complex in Sandy Springs. The company's President, Tom Boren, mentioned that the new complex will provide the necessary space for Southern Energy's rapid expansion. The unit, responsible for operations outside the company's regulated utilities, contributed $1.9 billion to Southern's $11.4 billion in 1998 revenue, accounting for almost 17% of the total. Southern Energy's growth is driven by its fast-growing wholesale energy trading and electricity generating businesses, with a joint venture with Vastar Resources Inc. being a significant contributor.

Key Takeaways:

  • Southern Company's unregulated business unit, Southern Energy Inc., is expanding rapidly and has plans to move into a new $64 million office complex in Sandy Springs.
  • The unit contributed $1.9 billion to Southern's $11.4 billion in 1998 revenue, accounting for almost 17% of the total.
  • Southern Energy's growth is driven by its fast-growing wholesale energy trading and electricity generating businesses, including a joint venture with Vastar Resources Inc.
  • The joint venture with Vastar, Southern Company Energy Marketing Inc., is No. 2 among U.S. electricity marketers and No. 9 in natural gas.
  • The company has the option to add another 66,000 square feet to the new office complex for further growth.
  • Southern Company Energy Marketing expects to have 500 workers by the end of the year, up 20% from the current number.
  • The new 40,000-square-foot gas-and-electricity trading floor in Sandy Springs is set to begin operations in December.
  • Southern Company Energy Marketing anticipates bringing in 30% of Southern's net income by 2003, up from 20% last year.

Statistics:

  • $64 million: The cost of the new office complex in Sandy Springs.
  • $1.9 billion: The contribution of Southern Energy Inc. to Southern's $11.4 billion in 1998 revenue.
  • 17%: The percentage of Southern Company's 1998 revenue contributed by Southern Energy Inc.
  • 6,642: The number of employees working for Southern Energy Inc.
  • 20%: The increase in workers expected by Southern Company Energy Marketing by the end of the year.
  • 500: The expected number of workers at Southern Company Energy Marketing by the end of the year.
  • $2 billion: The revenue from energy trading for Southern in 1997.
  • 77 million: The revenue from energy trading for Southern in 1996.
  • 40,000 square feet: The size of the new gas-and-electricity trading floor in Sandy Springs.

Sources:

  • Southern Company's press release announcing the plans for a new headquarters for Southern Energy Inc.
  • Cousins Properties Inc.'s press release regarding the construction of the new office complex.
  • Vastar Resources Inc.'s press release regarding the joint venture with Southern Company.

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