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Researched by Industrial Info Resources (Sugar Land, Texas)--Following a third quarter that saw the devastation of Hurricane Michael, Southern Company (NYSE:SO) (Atlanta, Georgia) saw a dip in profits as it faced the challenge of storm recovery and continued its divestment of coal-fueled assets. Industrial Info is tracking nearly $33 billion in active projects involving Southern, including more than $26 billion worth that are under construction.
Click on the image at right for a graph detailing how Southern has decreased its dependency on coal-fired power, according to the company's quarterly earnings presentation.
Southern subsidiary Georgia Power recently received some much-needed good news on the company's cornerstone project: units 3 and 4 at the Vogtle Nuclear Power Station in Waynesboro, Georgia, which are designed to generate 2,234 megawatts (MW). Despite a recent cost overrun of about $2.3 billion, Georgia Power voted with Oglethorpe Power Corporation (Tucker, Georgia), the Municipal Electric Authority of Georgia (Atlanta) and Dalton Utilities (Dalton, Georgia) to continue construction. For more information, see Industrial Info's project report and September 27, 2018, article - Four Owners Vote to Continue Construction of Vogtle Units 3 and 4.
"All four Vogtle project co-owners voted to continue construction on Units 3 and 4," said Thomas A. Fanning, the chief executive officer of Southern, in the earnings call. "This commitment means that we will continue forward with the construction of the project, which is critical to Georgia's and our nation's energy future. While there have been and will be challenges, we remain committed to safely completing both units and maintaining constructive relationships with our partners along the way."
Southern is in the process of selling subsidiary Gulf Power, its most heavy coal generator, to NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), and is working to develop its renewable assets, according to Fanning. The company is proposing the estimated $280 million Robins Solar Farm in Warner Robins, Georgia, which would generate about 139 MW, and already is building the $85 million second phase of a solar plant in Lamesa, Texas, which would generate 50 MW from photovoltaic modules. For more information, see Industrial Info's reports on the Robins and Lamesa projects.
"[Georgia Power has] the largest voluntary solar program in the United States," Fanning said in the earnings call. "My sense is solar will continue to be in favor in the portfolio. With Georgia and even Alabama, we now see wind, we see some solar, and we continue to rethink opportunities in gas."
Southern also recently reached a definitive agreement to sell its Mankato Energy Center in Mankato, Minnesota, to Northern States Power , a subsidiary of Xcel Energy Incorporated (NYSE:XEL) (Minneapolis, Minnesota). The facility consists of an existing one-on-one natural gas, combined-cycle (NGCC) turbine and is undergoing a $194 million conversion to a two-on-one configuration that is expected to be in service by mid-2019. The expanded two-on-one facility will have a total capacity of roughly 760 MW. The deal is estimated to be worth $650 million. For more information, see Industrial Info's project report.
Fanning also noted his company is renewing its focus on environmental work, notably the closures of several ash ponds at coal-fired plants across the U.S. South:
A spokesman for the project told The Exponent Telegram that the bulk of the pipeline project will be unaffected, and that the effects on the West Virginia portion likely will be temporary. The line will carry 1.5 billion cubic feet per day of natural gas about 600 miles from West Virginia to North Carolina; the West Virginia portion runs about 83 miles. For more information, see Industrial Info's project report.
Southern's net income for the third quarter totaled $1.16 billion, a 40% decline from the same period last year. The company reported a strong record of storm recovery in all of its jurisdictions affected by Hurricane Michael, which was the strongest hurricane to come ashore in Florida's history. About 600,000 Southern customers were without power in the days following the storm, and the company dedicated 12,000 personnel to restoring power. Much of the system in and around Panama City, Florida, had to be rebuilt.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing how Southern has decreased its dependency on coal-fired power, according to the company's quarterly earnings presentation.Southern subsidiary Georgia Power recently received some much-needed good news on the company's cornerstone project: units 3 and 4 at the Vogtle Nuclear Power Station in Waynesboro, Georgia, which are designed to generate 2,234 megawatts (MW). Despite a recent cost overrun of about $2.3 billion, Georgia Power voted with Oglethorpe Power Corporation (Tucker, Georgia), the Municipal Electric Authority of Georgia (Atlanta) and Dalton Utilities (Dalton, Georgia) to continue construction. For more information, see Industrial Info's project report and September 27, 2018, article - Four Owners Vote to Continue Construction of Vogtle Units 3 and 4.
"All four Vogtle project co-owners voted to continue construction on Units 3 and 4," said Thomas A. Fanning, the chief executive officer of Southern, in the earnings call. "This commitment means that we will continue forward with the construction of the project, which is critical to Georgia's and our nation's energy future. While there have been and will be challenges, we remain committed to safely completing both units and maintaining constructive relationships with our partners along the way."
Southern is in the process of selling subsidiary Gulf Power, its most heavy coal generator, to NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), and is working to develop its renewable assets, according to Fanning. The company is proposing the estimated $280 million Robins Solar Farm in Warner Robins, Georgia, which would generate about 139 MW, and already is building the $85 million second phase of a solar plant in Lamesa, Texas, which would generate 50 MW from photovoltaic modules. For more information, see Industrial Info's reports on the Robins and Lamesa projects.
"[Georgia Power has] the largest voluntary solar program in the United States," Fanning said in the earnings call. "My sense is solar will continue to be in favor in the portfolio. With Georgia and even Alabama, we now see wind, we see some solar, and we continue to rethink opportunities in gas."
Southern also recently reached a definitive agreement to sell its Mankato Energy Center in Mankato, Minnesota, to Northern States Power , a subsidiary of Xcel Energy Incorporated (NYSE:XEL) (Minneapolis, Minnesota). The facility consists of an existing one-on-one natural gas, combined-cycle (NGCC) turbine and is undergoing a $194 million conversion to a two-on-one configuration that is expected to be in service by mid-2019. The expanded two-on-one facility will have a total capacity of roughly 760 MW. The deal is estimated to be worth $650 million. For more information, see Industrial Info's project report.
Fanning also noted his company is renewing its focus on environmental work, notably the closures of several ash ponds at coal-fired plants across the U.S. South:
- $550 million closure at Scherer Power Station in Juliette, Georgia, under construction since the beginning of the year; see project report
- $400 million closure at Hammond Generating Station in Rome, Georgia, under construction since the beginning of the year; see project report
- $120 million closure at Gaston Power Station in Wilsonville, Alabama, set to begin early next year; see project report
- $120 million closure at Wansley Power Station in Carrollton, Georgia, set to begin in late 2020; see project report
A spokesman for the project told The Exponent Telegram that the bulk of the pipeline project will be unaffected, and that the effects on the West Virginia portion likely will be temporary. The line will carry 1.5 billion cubic feet per day of natural gas about 600 miles from West Virginia to North Carolina; the West Virginia portion runs about 83 miles. For more information, see Industrial Info's project report.
Southern's net income for the third quarter totaled $1.16 billion, a 40% decline from the same period last year. The company reported a strong record of storm recovery in all of its jurisdictions affected by Hurricane Michael, which was the strongest hurricane to come ashore in Florida's history. About 600,000 Southern customers were without power in the days following the storm, and the company dedicated 12,000 personnel to restoring power. Much of the system in and around Panama City, Florida, had to be rebuilt.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
