Executives of Georgia Power Co. - the largest subsidiary of
electric utility firm
) - will request Georgia Public Service Commission (PSC) for
approval to close some coal and oil-fired generating units at
four plants. The units that Georgia Power wants to shut down are
15 coal- and oil-fired generating units having total capacity of
2,061 megawatts (MW).
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Georgia Power management expects that this move will help the
company to comply its operating cost with environmental
regulations. Other factors that forced management to think of
seeking state approval for the closure of the units are the
present and forecasted future economic conditions along with low
natural gas prices. As per management, this planned shutdown is
about to affect nearly 480 Georgia Power employees.
The 15 units, which are to be shut down are located in Putnam,
Coweta, Glynn, and Chatham counties. The PSC is expected to vote
for the shut down request by the summer of 2013.
Moreover, Georgia Power will also request for the decertification
of Savannah-based Boulevard 2 and 3 combustion turbine generating
units. The request is subjected to the approval of the Integrated
Resource Plan (IRP).
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 serves both regulated and competitive markets across
the Southeastern U.S.
Southern Company is a holding company for four regulated Southern
electric utilities that serve about 4.4 million customers -
Georgia Power, Alabama Power, Gulf Power, and Mississippi Power.
The company participates in all phases of the electric utility
business with more than 42,000 megawatts (MW) of electric
generating capacity, and an extensive grid of transmission and
distribution lines. The company also engages in the construction,
acquisition, and management of generation assets, provision of
digital wireless communications services, and the provision of
fiber optic solutions to the telecommunication providers.
Southern Company currently retains a Zacks #4 Rank (short-term
Sell rating). We are also maintaining our long-term Neutral
recommendation on the stock.