Southern Company's (SO) Subsidiary Acquires Millers Facility
Southern Company’s SO subsidiary and a leading U.S. wholesale energy provider, Southern Power, announced its acquisition of the Millers Branch Solar Facility from EDF Renewables, marking its 29th solar project. This 200-megawatt (MW) facility, currently in the early stages of development, holds the promise of expansion up to 500 MW. This strategic move underscores Southern Power's commitment to enhancing its solar portfolio and shaping the future of sustainable energy.
Location and Importance
The Millers Branch solar facility is located in Haskell County, TX, and will contribute to Southern Power's growing renewable fleet of clean generating assets from California to Maine. Southern Power will lead the continued development and construction of Millers Branch, which is expected to achieve commercial operations in the fourth quarter of 2025.
Vision for Millers Branch
"Millers Branch represents a milestone for Southern Power as we are entering this project with expansion opportunities," declared Southern Power president Robin Boren. He added that the project exemplifies Southern Power's ongoing commitment to enhancing our solar portfolio as the subsidiary builds the future of energy.
Powering Progress: A 20-Year Partnership
Once operational, the electricity and associated renewable energy credits generated by the 200-MW facility will be sold under a 20-year virtual power purchase agreement with Thermo Fisher Scientific — a global leader in scientific research that will utilize these renewable energy certificates to drive progress toward its ambitious net-zero-by-2050 commitment.
Expansive Solar Portfolio
With the inclusion of the Millers Branch Solar Facility, Southern Power's solar portfolio now boasts more than 2,590 MW of solar generation capacity. These solar facilities are an integral part of the company's extensive 5,130 MW renewable fleet, which entails 29 solar and 15 wind facilities currently in operation or under construction.
A Strategic Business Approach
This ambitious project aligns seamlessly with Southern Power's overarching business strategy. The company continues to fortify its wholesale business by acquiring and developing generating assets, all of which are supported by long-term contracts with counterparties offering robust credit support.
In conclusion, Southern Power's acquisition of the Millers Branch Solar Facility underscores its commitment to advancing renewable energy generation. This substantial addition to the company’s solar portfolio demonstrates its dedication to providing clean energy solutions and shaping the future of sustainable power generation. As Southern Power looks forward to commercial operations in 2025 and beyond, it remains poised to make significant contributions to the renewable energy landscape in the United States. With its steadfast commitment to excellence and innovation, the company is well on track to leaving a lasting impact on the energy industry. The project will create jobs, provide clean energy and generate economic benefits for the state.
Zacks Rank and Other Key Picks
SO is an American utility firm that provides electricity to customers across Southern United States. It is one of the country's largest energy companies, focusing on clean energy and sustainability. Currently, SO carries a Zacks Rank #2 (Buy).
Investors interested in the utilitysector might look at some other top-ranked stocks like RWE AG RWEOY and Consolidated Water CWCO, each sporting a Zacks Rank #1 (Strong Buy), and E.ON EONGY,carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RWE AG is worth approximately $26.28 billion. It currently pays dividends of 69 cents per share, or 1.76% on an annual basis.
RWEOY, one of Europe's five largest utilities, operates in the generation, transmission, sale, and trading of electricity and gas, as well as the water business in Continental Europe, providing a strong position to capitalize on the increasing energy demand.
Consolidated Water is worth approximately $460.64 million. It currently pays dividends of 34 cents per share or 1.16% on an annual basis.
It develops and operates seawater desalination plants and water distribution systems in scarce or nonexistent water sources, targeting tourist properties. The company operates in Retail, Bulk, Services and Manufacturing segments.
E.ON is valued at around $32.44 billion. In the past year, its shares have risen 58.4%.
E.ON is the world's largest investor-owned energy service provider with operations in energy, chemicals, real estate, oil, telecommunications, distribution/logistics, aluminum and silicon wafers.
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