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Southern Company Arm Gets $160M DOE Loan to Enhance Power Grid

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The Southern Company’s (SO - Free Report) largest electric subsidiary, Georgia Power, has been awarded $160 million in funding by the Department of Energy (“DOE”) under the Grid Resilience and Innovation Partnerships (GRIP) Program. The funding under this program is intended to support grid resilience against extreme weather conditions, improve grid flexibility and ensure affordable and reliable electricity access across American communities.

Transforming Georgia's Power Grid

With federal funding, the utility aims to integrate technology into its mechanism so that it can enhance the power grid’s efficiency and make clean and safe energy available to the people. Investments in the transmission system will also ensure that high-voltage power lines are set up to transport electricity from power generation sources to the local communities.

The funding under the GRIP program will deploy new technologies that will enhance the existing grids. These new technologies include dynamic line rating and reconductoring high-voltage power lines that can enhance the existing power transmission capacity.

These investments will open new opportunities for the utility to deploy renewable energies and will also reduce the frequency and duration of power outages.

Collaboration With Communities

Georgia Power is planning to share the key insights and best practices within its industry type by collaborating with local organizations like the Edison Electric Institute, the Electric Power Research Institute and others.

The utility is willing to work with the local organizations and the stakeholders to provide training for the installation of the new transmission conductor. The project is also anticipated to bring benefits such as a clean environment impact, clean energy transmission and job creation.

SO’s Zacks Rank and Key Picks

The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately nine million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).

Investors interested in the utility sector might look at some better-ranked stocks like DTE Energy Company (DTE - Free Report) , Ameren Corporation (AEE - Free Report) and American Electric Power Company, Inc. (AEP - Free Report) .DTE Energy, Ameren Corporation and American Electric each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Detroit, MI-based DTE Energy Company is a diversified energy company that develops and manages energy-related businesses and services nationwide. DTE’s expected EPS growth rate for three to five years is currently 8.10% per share, which compares favorably with the industry's growth rate of 7.30%.

Ameren Corporationis a utility company that generates and distributes electricity and natural gas in Missouri and Illinois. The Zacks Consensus Estimate for AEE's 2024 earnings indicates 5.48% year-over-year growth.

Columbus, OH-based American Electric Power Company, Inc. is a public utility holding company which generates, transmits and distributes electricity, natural gas and other commodities. The Zacks Consensus Estimate for AEP's 2024 earnings indicates 6.67% year-over-year growth.

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