Profile: Southern Co (SO.N)
21 Aug 2014
The Southern Company (Southern Company), incorporated on November 9, 1945, is a holding company, which owns all of the common stock of the traditional operating companies, including Alabama Power Company (Alabama Power), Georgia Power Company (Georgia Power), Gulf Power Company (Gulf Power), and Mississippi Power Company (Mississippi Power) ,and Southern Power Company (Southern Power), and other direct and indirect subsidiaries (together, the Southern Company system). The primary business of the Southern Company system is electricity sales by the traditional operating companies and Southern Power. The four traditional operating companies are vertically integrated utilities providing electric service in four Southeastern states. Southern Power constructs, acquires, owns, and manages generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. In July 2012, the Company and Turner Renewable Energy acquired a 20 megawatts solar photovoltaic power plant in Nevada from SunEdison, a subsidiary of MEMC Electronic Materials, Inc.
Southern Company also owns all of the membership interests of SouthernLINC Wireless, Southern Nuclear, Southern Company Services, Inc. (SCS), Southern Holdings, and other direct and indirect subsidiaries. SouthernLINC Wireless provides digital wireless communications for use by Southern Company and its subsidiary companies and markets these services to the public and also provides wholesale fiber optic solutions to telecommunication providers in the Southeast. Southern Nuclear operates and provides services to Alabama Power's and Georgia Power's nuclear plants and is developing Plant Vogtle Units 3 and 4, which are co-owned by Georgia Power. SCS is the system service company providing, at cost, specialized services to Southern Company and its subsidiary companies. Southern Holdings is an intermediate holding subsidiary, primarily for Southern Company's investments in leveraged leases.
Alabama Power and Georgia Power each own 50% of the common stock of Southern Electric Generating Company (SEGCO). SEGCO is an operating public utility company that owns electric generating units with an aggregate capacity of 1,019,680 kilowatts at Plant Gaston on the Coosa River near Wilsonville, Alabama. Alabama Power and Georgia Power are each entitled to one-half of SEGCO's capacity and energy. Alabama Power acts as SEGCO's agent in the operation of SEGCO's units and furnishes fuel to SEGCO for its units. SEGCO also owns one 230,000 volt transmission line extending from Plant Gaston to the Georgia state line at which point connection is made with the Georgia Power transmission line system.
Traditional Operating Companies
The traditional operating companies owns generation, transmission and distribution facilities. Each company's transmission facilities are connected to the respective Company's own generating plants and other sources of power, including certain generating plants owned by Southern Power and are interconnected with the transmission facilities of the other traditional operating companies and SEGCO. Additionally, the traditional operating companies have entered into voluntary reliability agreements with the subsidiaries of Entergy Corporation, Florida Electric Power Coordinating Group, and Tennessee Valley Authority and with Carolina Power & Light Company (Progress Energy Carolinas, Inc.), Duke Energy Corporation, South Carolina Electric & Gas Company, and Virginia Electric and Power Company, each of which provides for the establishment and periodic review of principles and procedures for planning and operation of generation and transmission facilities, maintenance schedules, load retention programs, emergency operations, and other matters affecting the reliability of bulk power supply.
Southern Company, each traditional operating company, Southern Power, Southern Nuclear, SEGCO, and other subsidiaries have contracted with SCS to furnish, at direct or allocated cost and upon request services: general and design engineering, operations, purchasing, accounting, finance and treasury, tax, information technology, marketing, auditing, insurance and pension administration, human resources, systems and procedures, digital wireless communications, and other services with respect to business and operations and power pool transactions. Alabama Power and Georgia Power each have a contract with Southern Nuclear to operate the Southern Company system's existing nuclear plants, Plants Farley, Hatch, and Vogtle. In addition, Georgia Power has a contract with Southern Nuclear to develop, license, construct, and operate Plant Vogtle Units 3 and 4.
Southern Power is an electric wholesale generation subsidiary with market-based rate authority from Federal Energy Regulatory Commission (FERC). Southern Power and its subsidiaries constructs, acquires, owns and manages generation assets, including renewable energy projects, and sell electricity at market-based rates in the wholesale market. In June 2012, Southern Power completed construction of Plant Nacogdoches, a biomass generating plant near Sacul, Texas with a nameplate capacity of approximately 116 megawatts. Nacogdoches Power, LLC, a wholly-owned subsidiary of Southern Power. In December 2012, Southern Power completed construction of Plant Cleveland Units 1 through 4, a combustion turbine natural gas generating plant, in Cleveland County, North Carolina. The plant has a nameplate capacity of 720 megawatts. Southern Power has long-term PPAs for 540 megawatts of the generating capacity of the plant.
In 2012, Southern Power and Turner Renewable Energy, Inc. (TRE), through Southern Turner Renewable Energy LLC (STR), a jointly-owned subsidiary owned 90% by Southern Power, acquired all of membership interests of Apex Nevada Solar, LLC (Apex), Spectrum Nevada Solar, LLC (Spectrum), and Granville Solar, LLC (Granville). Apex owns a 20 megawatts solar photovoltaic facility in North Las Vegas, Nevada. The solar facility began commercial operation on July 21, 2012. Granville owns a 2.5-megawatts solar photovoltaic facility in Oxford, North Carolina. The solar facility began commercial operation on October 28, 2012. Spectrum is constructing a 30-megawatts solar photovoltaic facility in North Las Vegas, Nevada. As of December 31, 2012, Southern Power had 8,764 megawatts of nameplate capacity in commercial operation.
Southern Holdings is an intermediate holding subsidiary, primarily for Southern Company's investments in leveraged leases. SouthernLINC Wireless provides digital wireless communications for use by Southern Company and its subsidiary companies and markets its services to non-affiliates within the Southeast. SouthernLINC Wireless delivers multiple wireless communication options including push to talk, cellular service, text messaging, wireless Internet access, and wireless data. Its system covers approximately 127,000 square miles in the Southeast. SouthernLINC Wireless also provides wholesale fiber optic solutions to telecommunication providers in the Southeast under the name Southern Telecom.
Alabama Power is engaged, within the State of Alabama, in the generation and purchase of electricity and the transmission, distribution and sale of such electricity, at retail in approximately 400 cities and towns, including Anniston, Birmingham, Gadsden, Mobile, Montgomery, and Tuscaloosa, as well as in rural areas, and at wholesale to 15 municipally-owned electric distribution systems, 11 of which are served indirectly through sales to Alabama Municipal Electric Authority, and two rural distributing cooperative associations. Alabama Power owns coal reserves near its Plant Gorgas and uses the output of coal from the reserves in its generating plants. Alabama Power also sells and cooperates with dealers in promoting the sale of, electric appliances. Georgia Power is engaged in the generation and purchase of electricity and the transmission, distribution, and sale of such electricity within the State of Georgia, at retail in over 600 communities, including Athens, Atlanta, Augusta, Columbus, Macon, Rome, and Savannah, as well as in rural areas, and at wholesale to OPC, MEAG Power, Dalton, various electric membership corporations, and non-affiliated utilities.
Gulf Power is engaged, within the northwestern portion of Florida, in the generation and purchase of electricity and the transmission, distribution, and sale of such electricity, at retail in 71 communities, including Pensacola, Panama City, and Fort Walton Beach, as well as in rural areas, and at wholesale to a non-affiliated utility. Mississippi Power is engaged in the generation and purchase of electricity and the transmission, distribution, and sale of such electricity within 23 counties in southeastern Mississippi, at retail in 123 communities, including Biloxi, Gulfport, Hattiesburg, Laurel, Meridian, and Pascagoula, as well as in rural areas, and at wholesale to one municipality, six rural electric distribution cooperative associations, and one generating and transmitting cooperative.
30 Ivan Allen Jr. Blvd. NW
ATLANTA GA 30308