Partnership Aims to Strengthen Solar Company

Southern States Power Company (SSPC), a member of the National Biodiesel Board, has entered into an acquisition agreement to own 100 percent of SUN Utility Network, a solar energy company, contingent upon a 90 day review of SUN’s past, current and future contracts. The addition of SUN’s solar power contracts, which SSPC says have projected gross profits of over US$7 million, is designed to augment SSPC’s renewable power portfolio as the company moves forward on projects across the United States.

Riverside, California – July 18, 2003 [SolarAccess.com] Southern States Power Company (SSPC), a member of the National Biodiesel Board, has entered into an acquisition agreement to own 100 percent of SUN Utility Network, a solar energy company, contingent upon a 90 day review of SUN’s past, current and future contracts. The addition of SUN’s solar power contracts, which SSPC says have projected gross profits of over US$7 million, is designed to augment SSPC’s renewable power portfolio as the company moves forward on projects across the United States. SUN Utility Network is a qualified solar equipment installer for the Los Angeles Department of Water and Power (LADWP), which services the city of Los Angeles, and all or part of over 80 communities in the Los Angeles area. SUN is participating in projects that will qualify for the LADWP’s 10-year US$150 million solar photovoltaic buy-down incentive program, which includes a US$20 million budget for 2003-2004. This program has recently had it’s funding boosted, guaranteeing further renewable energy capacity. In a statement announcing the department’s renewed commitment to the incentive program, LADWP General Manager David Wiggs said,”In the last year, requests to participate in LADWP’s solar program increased dramatically. We will expand the annual budget for this program to US$20 million this fiscal year and US$16 million the following year to help meet the rise in demand. Subsequent years will be funded at the levels originally planned, ranging from US$8-16 million per year.” In addition to the LADWP projects, SUN is developing projects with municipalities outside the city of Los Angeles, including the cities of Stanton, San Francisco, Huntington Park and San Bernardino, educational institutions, such as the Los Angeles Community College District, the University of California and California State University as well as a number of private companies. “Southern States is extremely pleased with the agreement to acquire SUN Utility Network, a company that is currently installing solar power capacity and that has such an impressive list of clients and interested customers,” said Harrison A. McCoy, III, president and chief executive officer of SSPC. “The addition of biodiesel-fueled backup generators creating a solar hybrid system will only enhance the marketability of these ventures. Harrison added that with proper funding, SUN has estimated that five additional installations, with projected gross profits of almost US$400,000, will be completed in the next two months and that revenue generation should begin in the last quarter of 2003. “It is this type of aggressive project development program that attracted Southern States to SUN, and we plan continue to seek out similar investments in order to add value for SSPC shareholders,” Harrison said. SUN largely stands to benefit from the increased financial backing afforded to them through this new arrangement with SSPC. “As a result of our participation in the LADWP and other incentive programs, as well as utilizing Southern States’ strategic partnership and alliances, SUN expects to see many additional clients added to our project development roster,” said Les Hamasaki, president of SUN Utility Network.

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