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SOUTHERN ELECTRIC INTERNATIONAL ACQUIRES INTEREST IN CHILEAN UTILITY

 ATLANTA, Oct. 29 /PRNewswire/ -- Southern Electric International Inc. was the winning bidder today for a 35 percent stake in the Chilean company Empresa, Electrica del Norte Grande, S.A. (Edelnor).
 Southern Electric, a subsidiary of The Southern Company (NYSE: SO), builds, owns and operates power production facilities and provides a broad range of technical services to industrial companies and utilities in the U.S. and international markets.
 The Southern Company is also the parent firm of five electric utilities: Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Together, these companies make up one of the largest investor-owned electric utility groups in the United States.
 Southern Electric will pay approximately $73 million to acquire 81 million shares of Edelnor from Corporacion de Fomento de la Producion (Corfo), a government agency responsible for fostering development in Chile. The government of Chile is selling the shares as part of its privatization program, with the intention of establishing a third integrated utility in Chile -- in addition to Endesa and Chilener.
 Edelnor operates 96 megawatts of capacity and is building another generation facility, the 150-megawatt Mejillones plant, scheduled to begin operations in 1995. Edelnor also operates the transmission grid for northern Chile, which serves a rapidly expanding copper mining industry.
 About half of Edelnor's electricity is sold to mining companies under contract and half is sold to local electric distribution companies.
 Southern Electric expects to play an active role on Edelnor's board of directors and to provide immediate assistance in managing the construction of the Mejillones plant.
 "Southern Electric has chosen to invest in Chile because of its encouragement of private power," Southern Electric President Tom Boren said. "We believe this acquisition gives us an excellent entry into the electricity market there. The expansion of economic activity in northern Chile should provide significant growth opportunities for Edelnor."
 -0- 10/29/93
 /CONTACT: David Mould of The Southern Company, 404-455-1077/
 (SO)


CO: Southern Electric International Inc.; Empresa, Electrica del Norte
 Grande, S.A. ST: Georgia IN: UTI SU:


BN-SB -- AT017 -- 8769 10/29/93 18:30 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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