ATLANTA – Southern Power, a major U.S. wholesale energy provider, has announced the final expansion phase of its Millers Branch Solar Facility in Haskell County, Texas. The Phase III addition will increase the facility’s capacity by 132 megawatts (MW), bringing the total generating capability to 512 MW.
The Millers Branch Solar Facility, which has been under development in stages, will reach its full capacity upon the completion of this phase. Southern Power President Robin Boren stated that this marks the facility as Southern Power’s largest solar project to date. The expansion is in line with the company’s commitment to providing renewable energy solutions to its customers and communities.
Phase III of the project is slated for commercial operation by the fourth quarter of 2026. Southern Power has been at the helm of the development and construction of all phases of the Millers Branch Solar Facility. The project contributes to Southern Power’s expansive renewable energy portfolio, which includes over 3,050 MW of solar generation either in operation or under construction.
The company has secured power purchase agreements with Synopsys (NASDAQ:), Inc and Keysight Technologies (NYSE:) for environmental attributes from the solar facility. These agreements include renewable energy credits (RECs), with Sustainability Roundtable, Inc. supporting the agreement for Synopsys.
Southern Power’s renewable fleet, which spans from California to Maine, consists of 30 solar and 15 wind facilities that are either operational or in development. This expansion emphasizes the company’s strategic approach to strengthen its wholesale business through long-term contracts with creditworthy counterparties.
Southern Power, a subsidiary of Southern Company (NYSE: NYSE:), operates across 15 states with a generating capacity exceeding 13,150 MW. Southern Company serves 9 million customers and is actively pursuing a goal of net zero greenhouse gas emissions by 2050.
This announcement is based on a press release statement from Southern Power.
In other recent news, Southern Company demonstrated resilience in its Q3 2024 earnings call despite the challenges posed by Hurricane Helene. The company reported a slight increase in adjusted earnings for the quarter, rising to $1.43 per share from $1.42 in Q3 2023. Southern Company’s ability to swiftly recover from the hurricane impact was evident, with a 95% restoration of services within eight days after the storm caused over 1.5 million outages.
The company’s growth in earnings per share is supported by its utility investments and customer growth. Southern Company is also anticipating full-year adjusted earnings of $4.05 per share, despite a 0.4% negative impact from the hurricane. The company has secured over 90% of its generation contracts through the end of the decade and is considering nuclear options in future Integrated Resource Plans.
Recent developments also highlight a $3 billion increase in capital investments related to Southern Power projects. However, the damage from Hurricane Helene exceeded $1.1 billion, impacting the company’s financials. Despite these challenges, Southern Company maintains its long-term growth rate target of 5% to 7% and expects potential load additions in Georgia to exceed 36 gigawatts by the mid-2030s.
InvestingPro Insights
Southern Company’s (NYSE: SO) commitment to expanding its renewable energy portfolio, as evidenced by the Millers Branch Solar Facility expansion, aligns well with its financial performance and market position. According to InvestingPro data, Southern Company boasts a substantial market capitalization of $96.39 billion, reflecting its significant presence in the utility sector.
The company’s focus on long-term contracts and creditworthy counterparties for its renewable projects is mirrored in its financial stability. Southern Company has maintained dividend payments for an impressive 54 consecutive years, with a current dividend yield of 3.27%. This consistent dividend performance is particularly noteworthy for income-focused investors in the utility sector.
InvestingPro Tips highlight that Southern Company has raised its dividend for 23 consecutive years, underscoring its commitment to shareholder returns. Additionally, the company’s stock generally trades with low price volatility, which may appeal to risk-averse investors seeking stable utility investments.
The expansion of renewable energy projects like Millers Branch Solar Facility could contribute to future earnings growth. Currently, Southern Company trades at a P/E ratio of 20.43, which is considered low relative to its near-term earnings growth potential, according to another InvestingPro Tip. This suggests that the stock may be undervalued considering its growth prospects in the renewable energy sector.
For investors interested in a deeper analysis, InvestingPro offers additional tips and insights, with 7 more tips available for Southern Company on the platform.
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