The Southern Company’s SO Georgia Power unit recently filed its 2025 Integrated Resource Plan (IRP) with the Public Service Commission, detailing its future strategy to meet the state's growing energy demands. Driven by the state’s significant economic expansion, the IRP focuses on investments in generation, transmission and customer programs to maintain reliability and resiliency.
As Georgia continues to expand economically with many new businesses coming to the state, the electrical demand has increased over time. By the end of 2030, Georgia Power projects an increase of about 2,200 MW electrical load.
Georgia Power continues to invest in a mix of energy sources to ensure long-term sustainability. Key proposals in the 2025 IRP include:
Enhancing Clean Energy Capacity: Southern Company plans extended power uprates at Plants Hatch and Vogtle, adding 112 MW of carbon-free energy. With Vogtle Units 3 & 4 now complete, SO has become the largest clean energy generator in the United States.
Upgrading Natural Gas and Coal Units: Southern Company’s 2025 IRP includes expanding cleaner natural gas and upgrading Plant McIntosh near Savannah by an additional 268 MW capacity. The company also proposed an extension of operation at coal and natural gas units through 2034 with upgrades at multiple facilities. Plants Bowen and Scherer, producing 4,000 MW, have adopted advanced technology, reducing emissions by over 95% in the past few decades.
Hydroelectric Modernization: The company plans to modernize nine of its hydro fleets with replacements and refurbishments needed for turbines, generators and other equipment. The modernization efforts are expected to make them operational for at least another 40 years.
Expanding Renewable Energy: SO’s long-term guidance aims to procure 4,000 MW of renewable energy by 2035, with 1,100 MW proposed in this IRP. These new resources are expected to expand the company's renewable resource portfolio to approximately 11,000 MW by 2035.
Investing in Battery Energy Storage: The company’s IRP also lays down plans to add over 1,500 MW of battery energy storage in the coming years.
The company also plans to improve its power grid under the 2025 IRP to provide reliable and resilient services to Georgians without any power interruptions.
Since a strong transmission system is crucial for delivering energy efficiently, Southern Company’s 10-year transmission plan outlines upgrades to more than 1,000 miles of transmission lines.
Customer-Centric Energy Solutions
Recognizing the evolving needs of its customers, Southern Company is expanding demand-side programs like solar plus storage options, customer programs for renewable energy etc., as part of its energy efficiency initiatives.
Atlanta, GA-based Southern Company is one of the largest utilities in the United States. The company deals with the generation, transmission and distribution of electricity. Currently, SO has a Zacks Rank #3 (Hold).
Investors interested in the utility sector might look at some better-ranked stocks like CMS Energy Corporation CMS, PG&E Corporation PCG and CenterPoint Energy, Inc. CNP. CMS Energy, PG&E Corporation and CenterPoint Energy currently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jackson, MI-based CMS Energy Corporation is the parent holding company of Consumers, an electric and gas utility, and NorthStar Clean Energy, a primarily domestic independent power producer and marketer. The Zacks Consensus Estimate for CMS’ 2024 earnings indicates 7.07% year-over-year growth.
San Francisco, CA-based PG&E Corporation is the parent holding company of Pacific Gas and Electric Company. The utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. The Zacks Consensus Estimate for PCG's 2024 earnings indicates 10.57% year-over-year growth.
Houston, TX-based CenterPoint Energy is a domestic energy delivery company that provides electric transmission and distribution, power generation and natural gas distribution operations to more than 7 million metered customers. The Zacks Consensus Estimate for CNP's 2024 earnings indicates 8% year-over-year growth.
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