Wednesday, May 26, 2010

GreyStone Power Corporation Enters Into $600 Million + Power Purchase and Scheduling Agent Services Agreement with Morgan Stanley Capital Group

/PRNewswire/ -- On May 12, 2010, the Board of Directors of GreyStone Power Corporation ("GreyStone") approved a five-year Power Purchase and Scheduling Agent Services Agreement with Morgan Stanley Capital Group. The Agreement is valued at more than $600 million.

Background

GreyStone is a member-owned, non-profit rural electric distribution cooperative located on the west side of Atlanta serving portions of eight metropolitan Atlanta counties. Its main office is located at 4040 Bankhead Highway, Douglasville, GA 30134.

GreyStone is one of the largest members of Oglethorpe Power Corporation, the generation supplier from which GreyStone purchases most of its power needs. Under its agreement with Oglethorpe, GreyStone is permitted to procure its remaining power requirements from competitive wholesale power suppliers if it so chooses.

Morgan Stanley Capital Group is a subsidiary of Morgan Stanley and is engaged in wholesale sales and purchases of electricity throughout the United States, including Georgia. Morgan Stanley has been an active participant in the Georgia market for a number of years.

GreyStone conducted a competitive procurement beginning in January by issuing a form of agreement to a selected list of potential power suppliers. GreyStone negotiated an agreement with each potential power supplier and asked each to price their respective agreement. GreyStone selected Morgan Stanley from the competing power suppliers based on the consideration of price and contract terms.

The Power Purchase and Scheduling Agent Services Agreement

The agreement provides that Morgan Stanley will schedule the energy from GreyStone's resources or provide power from the market, whichever is more economical, to serve all of GreyStone's load.

The agreement will allow GreyStone to adapt to changing legal, public policy and regulatory requirements, and to purchase renewable and alternative energy, and implement demand response, net metering and other new technologies.

Gary Miller, the President and Chief Executive officer of GreyStone, stated: "We selected Morgan Stanley after an extensive and competitive procurement process in which we sought the best combination of price and contract terms. We were pleased with Morgan Stanley's willingness to work with us and believe we have obtained a well priced agreement for GreyStone's members that also provides flexibility to adapt to changing circumstances in the future."

Alex Tolstykh, Managing Director and Head of Southeast/Mid-West Power and Gas at Morgan Stanley said: "We are excited to be selected as supplier to GreyStone and look forward to doing a great job serving GreyStone's power needs during the contract and beyond."

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