Georgia Power Co. - the largest subsidiary of electric utility
) - has filed a 20-year resource plan with the Georgia Public
Service Commission (PSC), asking for a planned reduction in its
power generating capacity by 1,000 megawatts (MW).
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According to management, the declining need for power by the
consumers and the purchase of power from some other utilities are
the main reasons behind the plan.
As per the filing, Georgia Power seeks to shut down 15 coal and
oil-fired power plants, and also to sell and decertify one plant
of 32 MW capacity, thereby reducing the company's power
generating capacity by 2,093 MW.
However, the utility's power purchasing agreements for natural
gas, which are already in place now, will be able to offset some
of the lost generating capacity, resulting in an eventual
decrease of roughly 1,000 MW.
Georgia Power is the largest of four electric utilities that make
up Southern Company. It is an investor-owned, tax-paying utility
that serves 2.3 million customers in all but four of Georgia's
159 counties. It has been providing electricity to Georgia for
more than a century at rates well below the national average.
Headquartered in Atlanta, Georgia, Southern Company is one of the
largest generators of electricity in the nation, along with the
Duke Energy Corporation
) - which serve both regulated and competitive markets across the
The operating results of Southern Company are affected by weather
conditions and may vary on a seasonal and quarterly basis.
Electric power supply is usually a seasonal business. In several
regions of the country, demand for power peaks during the summer
months, along with market prices. In other areas, power demand
reaches its maximum in winter. Consequently, the future operating
results of the company may fluctuate substantially on a seasonal
Southern Company currently carries a Zacks Rank #4 (Sell),
implying that it is expected to underperform the broader U.S.
equity market over the next one to three
In the electric utility space
) displays better fundamentals and currently holds a Zacks Rank
#1 (Strong buy).