Southern Company’s SO subsidiary Southern Power recently announced that its 200-MW Reading Wind Facility in Osage and Lyon Counties, KS became active. Being the first wind project in the state of Kansas, this facility exhibits the company’s commitment toward the developing wind energy and is an impressive addition to its growing renewable fleet.
Southern Power, which acquired the Reading wind project in August 2018 from developer Renewable Energy Systems Ltd, is the 11th wind park in Southern Power’s portfolio comprising 4,510 megawatt (MW) of renewable energy assets, of which more than 2,100 MW are wind farms. The Southern Company unit will oversee the operations and maintenance of the plant while Siemens Gamesa will supply annual maintenance services.
This project is the first to-be-approved carbon offset project under the Verified Carbon Standard Program through an agreement with Royal Caribbean Cruises RCL. Besides, the carbon offsets generated will be sold to Royal Caribbean under a 12-year power purchase contract. This initiative is projected to reduce more than 10% of Royal Caribbean’s carbon emissions annually.
Last month, the Southern Companyaffiliate purchased the 56 MW Beech Ridge Wind Facility from Invenergy, a Chicago-based developer, owner and operator of power- generation assets and energy solutions. The Beech Ridge II project is Southern Power’s 13th wind scheme and its first venture in the Mid-Atlantic region.
With this acquisition, Southern Power, which is an Atlanta wholesale energy provider, became the majority owner of Beech Ridge II project while a minor stake will be held by Invenergy. The electricity generated as well as the related renewable energy credits are being sold under a 12-year power purchase pact.
Zacks Rank & Key Picks
Southern Power, a Southern Company arm, primarily engages in developing, owning and managing power-generation assets including renewable energy projects. This apart, it sells electricity at market-based rates in the wholesale market.
Southern Company currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the utility space are NextEra Energy Inc NEE and Vistra Energy Corp VST, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southern Company The (SO) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Vistra Energy Corp. (VST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research