SSPC - U of Calif power plant contract
With all the announced mandatory rolling blackouts to hit here in Calif, this could be a nice one to hold for the summer. Already traded the float of 4.2 mil shares today.
Southern States Power Co. Receives Purchase Order From University of California To Provide Standby Power As Insurance Against Anticipated Blackouts
ONTARIO, Calif.--(BUSINESS WIRE)--May 16, 2001--Southern States Power Company, Inc. (OTCBB:SSPC - news) 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. |
