On Jan 10, 2014, Georgia Power - the largest affiliate of
electric utility firm
) - has reported that it has witnessed a record demand for
electricity on Tuesday last week, owing to an extreme drop in
temperature in Georgia.
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On the said Tuesday, the estimated peak electricity demand
reached 16,859 megawatts (MW) between 7 to 8 am. This broke the
previous record of the company which stood at 15,806 MW on Dec
14, 2010. Consequently, Georgia Power has adopted several
measures to meet the increased demand.
Georgia Power is an investor-owned, tax-paying utility that
serves 2.4 million customers in Georgia. It has been providing
electricity to Georgia for more than a century at rates well
below the national average.
Southern Company is based in Atlanta, Georgia. Southern Company
is one of the largest generators of electricity in the nation,
serving both regulated and competitive markets across
southeastern U.S. It is a holding company for four regulated
Southern electric utilities that serve about 4.4 million
customers - Georgia Power, Alabama Power, Gulf Power and
Southern Company's heavy reliance on coal-generated energy supply
and a lack of meaningful contribution from renewable energy is a
matter of concern. In the current age of growing emphasis on
'environment friendly or green' energy, the company may be forced
to divert cash flows to ensure regulatory compliance, which can
adversely impact profitability.
Currently, Southern Company holds a Zacks Rank #4 (Sell),
implying that it is expected to underperform the broader U.S.
equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the electric
utility sector like
Korea Electric Power Corp.
Wisconsin Energy Corp.
National Grid plc
). All the stocks sport a Zacks Rank #1 (Strong Buy).