Georgia Power - the largest affiliate of electric utility
) - has added 53.5 megawatts (MW) of biomass capacity to its
generation portfolio. This additional capacity comes on the back
of a 20-year purchase power agreement with renewable energy
company Rollcast Energy Inc.
Per the agreement, Georgia Power will receive all generated yield
of Rollcast's recently constructed Piedmont Green Power plant,
located in Barnesville, Ga. This plant started operations on Apr
19 and is expected to provide power to over 35,000 homes.
The plant will generate energy by using forestry byproducts found
in places like logging areas and land clearings. The Piedmont
Green Power plant will process about 500,000 tons of woody
Management at Georgia Power believes that this deal will expand
its generation portfolio through renewable sources, which will be
lucrative for its customers. Recently, the company also disclosed
its plan to purchase energy from 2 wind farms in Oklahoma with a
total capacity of about 250 MW.
Headquartered in Atlanta, Ga., Southern Company is one of the
largest electric utility holding companies in the U.S., and the
premier energy firm serving the attractive Southeast market.
Southern Company currently carries a Zacks Rank #3 (Hold).
Southern Company continues to earn returns that are among the
highest in the industry, while it maintains its position as a
low-cost provider of electricity with superior customer
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However, 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 during the winter. Consequently, the
future operating results of Southern Company may fluctuate
substantially on a seasonal basis.
Meanwhile, certain other electric utility stocks like
American Electric Power Inc.
El Paso Electric Co.
) offer value and are worth buying now. All these companies sport
a Zacks Rank #2 (Buy).