Business Editors/Energy Writers
 
	   ONTARIO, Calif.--(BUSINESS WIRE)--May 16, 2001--Southern States
Power Company, Inc. (OTCBB:SSPC) announced Wednesday that the company
has received a purchase order to provide the University of California,
Riverside with 6-megawatts of standby power using biodiesel-fueled
generators.
	   The backup generation will help to ensure a reliable source of
energy during the coming summer months, minimizing the threat of power
loss to the University during California's anticipated blackouts. This
is the first time that 100% biodiesel-fueled power has been generated
on a commercial scale in California, and Southern States Power Company
is prepared to provide up to 7,200 gallons of biofuel per day to run
the generators necessary for this project.
	   The agreement will pay Southern States Power Company a minimum of
$420,000 for an initial period of five months, and the University has
the option to continue power service for an additional seven months.
Southern States Power Company will provide biodiesel to fuel the three
2-megawatt generators, consuming up to 300 gallons of biofuel during
each hour of operation. The City of Riverside's Department of Public
Utilities has agreed to participate in the project and will house the
generators at their Waste Water Treatment Facility.
	   Lawrence W. Taggart, President and CEO of Southern States Power
Company commented, "This agreement is just the tip of the iceberg when
it comes to the potential of biodiesel in the generation of
electricity. With the ongoing shortages in California and with future
shortages anticipated in other areas of the United States, many large
consumers are looking for ways to ensure a steady supply of
electricity. Providing an environmentally-responsible solution to this
energy crisis is one of the primary objectives of Southern States
Power Company."
	   California is experiencing severe power shortages and the upcoming
summer months with hotter weather portend even greater demand. Standby
power is emergency backup power used in the event that power is not
available from public energy providers. The University of California,
Riverside serves over 12,000 students and is the largest public
university in Riverside County, California.
	   The Environmental Protection Agency, the U.S. Department of Energy
and the California Air Resources Board have all approved the use of
biodiesel as an alternative fuel that meets air quality compliance
standards.
 
	   The Company
 
	   The primary focus of Southern States Power Company, Inc. is to
develop, produce and distribute alternative fuels, particularly
biofuel, for use by consumers and commercial businesses. While the
demand for alternative fuels is great, there are few producers ready
to meet the growing need.
	   There are nearly 27 billion gallons of diesel consumed annually in
the United States alone, and an additional volume is consumed
internationally. It is the goal of the United States Department of
Energy that 30% of petroleum based motor fuel be replaced by
alternative fuels by the year 2010. Federal and state fleets are
mandated to use up to 75% domestically produced alternative fuels.
	   Southern States Power is poised to capture a significant portion
of the rapidly expanding biodiesel market through an aggressive
marketing plan as well as contacts in government, business and
industry. Tightening clean air standards and growing fossil fuel costs
are forcing private commercial fleets to look toward alternative fuel
products. Major biodiesel initiatives have been passed in Arizona,
Ohio, New Jersey, Nevada, Delaware and Iowa. More information can be
found at the company's website: www.sspowerco.com.
 
	   Safe Harbor
 
	   This news release may contain forward-looking statements, which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve a number of risks and uncertainties, including the
timely development and market acceptance of products and technologies
and other factors described in the company's filings with the
Securities and Exchange Commission. The actual results may differ
materially from any forward-looking statements due to such risk and
uncertainties. The company undertakes no obligation to revise or
update any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release.
 
    --30--kmw/se*
 
    CONTACT:  Southern States Power
              Mark Taylor, 909/476-3575 (Investor Relations)
              Fax, 909/476-3576
              ir@sspowerco.com
 
    KEYWORD:  CALIFORNIA
    INDUSTRY KEYWORD:  ENERGY UTILITIES OIL/GAS EDUCATION