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Southern Company Advances Hydro Fleet Modernization for the Future

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Key Takeaways

  • Georgia Power is modernizing hydro plants to extend life by 40 years and meet future demand.
  • Recent upgrades include new turbines and control systems at Plants Tugalo and Terrora.
  • Modernization supports reliability, compliance and Georgia's carbon-free energy future.

For more than 100 years, The Southern Company’s (SO - Free Report) largest electric subsidiary,Georgia Power, has been a cornerstone of clean, emission-free energy in the state through its hydroelectric facilities. With 15 owned hydro plants and an interest in a 16th, the company operates 66 hydroelectric generating units totaling more than 1,100 MW of carbon-free capacity. Beyond power, these facilities also provide recreational opportunities for Georgians through lakes like Oconee, Burton and Tugalo that are open to the public for camping and watersports.

Modernization for Long-Term Reliability

To meet the needs of a growing Georgia, Georgia Power is investing in modernizing its hydro fleet with approval from the Georgia Public Service Commission. As part of the 2025 Integrated Resource Plan, upgrades are underway at Tallulah, Yonah, Bartlett’s Ferry and North Highlands. These projects involve refurbishing turbines, generators and balance-of-plant systems to extend the life of facilities for another 40 years while ensuring compliance with federal licensing requirements.

Recent Progress Across Facilities

Modernization work has been completed at Plant Tugalo, where units in service since the 1920s received new turbines, generators and updated control systems. Similar upgrades at Plant Terrora were completed earlier. Additional progress includes work at Bartlett’s Ferry, Nacoochee, Oliver, Burton, and Sinclair, with Bartlett’s Ferry Unit 1 returning to service in July after major upgrades.

Powering Georgia’s Future

According to Rick Anderson, senior vice president at Georgia Power, modernizing hydro plants ensures reliable service, regulatory compliance and long-term customer value. These projects are not only about preserving century-old resources but also about supporting a sustainable, carbon-free energy future for Georgia.

SO’s Zacks Rank & Key Picks

The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately 9 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 TransAlta Corporation (TAC - Free Report) , Algonquin Power & Utilities Corp. (AQN - Free Report) and Centuri Holdings, Inc. (CTRI - Free Report) . While TransAlta currently sport a Zacks Rank #1 (Strong Buy), Algonquin Power and Centuri Holdings carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

TransAlta is Canada's largest non-regulated electric generation and marketing company. The Zacks Consensus Estimate for TAC's next-quarter earnings indicates 218.7% year-over-year growth.

Algonquin Power is a renewable energy and regulated utility company engaged in the ownership of power generation facilities, and water and energy utilities primarily in North America. The Zacks Consensus Estimate for AQN's 2025 earnings indicates 3.3% year-over-year growth.

Centuri Holdings is a strategic utility infrastructure services company, which partners with regulated utilities to build and maintain the energy.  The Zacks Consensus Estimate for CTRI's 2025 earnings indicates 96.9% year-over-year growth.

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