) announced that its ancillary Southern Power has teamed up with
partner Turner Renewable Energy to acquire a 2.5-megawatt (MW)
solar installation plant in North Carolina - the Granville Solar
Facility. However, the financial aspect of the transaction
SOUTHN COMPANY (SO): Free Stock Analysis
MEMC ELEC MATRL (WFR): Free Stock Analysis
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Spanning across a 40-acre land in Granville County, the solar
facility will be constructed, maintained and operated by global
solar energy service provider - SunEdison, which is also an
MEMC Electronic Materials
). The output from the plant will be utilized to serve the power
purchase agreement with Progress Energy Carolinas.
The companies have started developing the plant, which is
expected to commence commercial operation by the end of this
While this is Southern Company's first acquisition of a solar
installation unit; the company, in collaboration with Turner
Renewable Energy, has already purchased three other solar
Ted Turner, who owns Turner Renewable Energy, formed a strategic
collaboration with Southern Company in January 2010. The two
companies joined forces to pursue projects for the development of
renewable sources of energy in the United States.
In this regard, in March 2010, the companies acquired a
30-megawatt Cimarron Solar Facility on an acreage adjoining
Turner's Vermejo Park Ranch near Raton, New Mexico. The
partnership had also purchased two Clark County, Neveda, located
projects - 20-MW Apex Solar Facility and the 30-MW Spectrum Solar
Southern Company is one of the largest electric utility holding
companies in the U.S., and is the premier energy company serving
the Southeast. It remains a leader in power plant productivity,
cost control (operating and construction) and new technology
Southern Company will release its third-quarter 2012 results on
October 31, Wednesday, before the opening bell. The Zacks
Consensus Estimate for earnings in the third quarter is $1.44 per
share on revenue of $6,086 million.
Currently, Southern Company carries a Zacks #3 Rank (short-term
Hold rating). We also maintain a long-term Neutral recommendation
on the stock.