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Southern Co SO

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Another Delay at Southern's Nuclear Plant, but Strong Economic Recovery Should Offset EPS Impact

Charles Fishman, CFA Equity Analyst

Analyst Note

| Charles Fishman, CFA |

We are reaffirming our $64 fair value estimate for narrow-moat Southern after further delays for the commercial operation of Vogtle Unit 3 were announced. On May 18, Southern informed Georgia regulators that problems surfaced during hot functional testing that would delay Unit 3's startup by at least one month. Southern now believes it is unlikely that Unit 3 will begin generating electricity until sometime during the first quarter of 2022. Less than one month ago, Southern announced a new target in-service date of December.

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Company Profile

Business Description

Southern Co. is one of the largest utilities in the U.S. The company distributes electricity and natural gas to approximately 9 million customers in nine states. It owns 50 gigawatts of generating capacity, primarily for serving regulated customers in Georgia, Alabama, and Mississippi. Wholly owned unregulated Southern Power Co. owns 12 gigawatts of mostly renewable energy capacity and sells the electricity primarily under long-term power sales agreements. The solar and wind farms are located in Southern's regulated jurisdictions but also in Texas, California, and other states.

Contact
30 Ivan Allen Jr. Boulevard, Northwest
Atlanta, GA, 30308
T +1 404 506-5000
Sector Utilities
Industry Utilities - Regulated Electric
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2019
Stock Type High Yield
Employees 27,700

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