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Southern Company: 2024 Year in Review

SO | 4 hours ago

NORTHAMPTON, MA / ACCESSWIRE / December 23, 2024 / Southern Company

Plant Vogtle Expansion Complete

Plant Vogtle is now the largest generator of clean energy in the nation following the successful completion of the site's nuclear expansion project. This monumental achievement represents a long-term investment that will benefit our customers and communities for the next 60-80 years, helping ensure we meet the energy demands of our growing economy. Units 3 and 4 are the first newly constructed nuclear units in the U.S. in over three decades. Operated by Southern Nuclear, these new units will support 800 permanent, high-paying jobs.

The Most Destructive Storm in Georgia Power's History

Hurricane Helene made landfall on the Florida Gulf Coast on the evening of Thursday, Sept. 26 as a Category 4 hurricane, bringing 140 mph winds and flooding rains as it moved north into Georgia.

The storm left catastrophic damage in its wake. For Georgia Power, Hurricane Helene was the most destructive storm in the company's 140-year history.

By Oct. 7, Georgia Power had restored service to 99 percent of the nearly 1.5 million customers, about the population of New Hampshire, impacted by the storm. This monumental effort involved more than 20,000 personnel, including teammates from Alabama Power, Mississippi Power and numerous other companies.

Atlanta Gas Light (AGL), with support from teammates from Virginia Natural Gas, safely completed more than 1,000 emergency leak calls in Augusta alone across the final four days of September. That figure represents more calls than AGL received in the first five months of 2024 combined.

The damage was so severe in places that entire sections of the power grid had to be rebuilt.

11,800+ power poles broken

1,500+ miles of downed power lines

5,800+ transformers damaged

3,200+ trees impacting lines

345+ transmission structures rebuilt or repaired

Excelling at the Fundamentals

Exemplary Nuclear Performance

During its multi-year evaluation, both Plant Farley and Plant Hatch achieved the highest performance ratings possible from the Institute of Nuclear Power Operations (INPO). This recognition represents three consecutive years of exemplary ratings for Plant Farley and the first exemplary rating for Plant Hatch since 2014. For the first time in nearly a decade, plants Vogtle 1 and 2, Farley, and Hatch are all concurrently rated as exemplary by INPO.

Solar Surge

In 2023, solar energy accounted for more than half of new U.S. electricity generating capacity for the first time, with Southern Company playing a pivotal role. Since 2015, Southern Company's retail electric utilities have added over 2,800 MW of solar generating capacity. Estimates see a near tripling of solar by the early 2030s, with approximately 20,000 MW of renewable capacity and storage by 2030. In April 2024, Southern Power announced the commercial operation of its 30th solar site, the South Cheyenne Solar Facility. It is the company's first site in Wyoming and expands its operational footprint to 15 states. Additionally, Southern Power announced two expansions of the Millers Branch Solar Facility in Texas, which will make it Southern Power's largest solar facility to date and bring the total generating capacity of Millers Branch to 512 MW.

Fort Eisenhower Energy Upgrade

Georgia Power is partnering with U.S. Army Garrison Fort Eisenhower and fellow Southern Company subsidiary PowerSecure on a $72 million utility energy service contract (UESC) to enhance energy efficiency, resiliency, and reduce greenhouse gas emissions at the 55,000-acre installation near Augusta, GA. This largest-ever UESC for Georgia Power is expected to be completed by early 2026 and is estimated to cut energy costs by $6 million annually.

Self-Healing Network Success

Mississippi Power announced that 95 percent of its customers are now served by a self-healing network, which significantly reduces the frequency and duration of outages by isolating faults and automatically restoring service to unaffected customers. Initiated in 2010 as part of the Department of Energy's Smart Grid Investment Grant, this project has prevented nearly seven million outage minutes from the beginning of 2023 through May 2024. Over 1,000 reclosers have been installed, achieving the goal of extensive network coverage and improving grid reliability and customer satisfaction.

Mutual Assistance for Beryl

Hurricane Beryl was the earliest-forming Category 5 hurricane on record, forming in late June. After tearing through the Caribbean, Beryl, made landfall south of Houston as a Category 1 hurricane on July 8, leaving a staggering 2.3 million Texans without power. In response, more than 1,100 system crew members and contractors from Alabama Power, Georgia Power and Mississippi Power assisted in restoration efforts as part of the mutual effort.

Winter Storm Heather

The Southern Company system reliably served a historic amount of electricity on Jan. 17, reaching an all-time record winter peak load of 39,934 MW. The figure surpasses that of past winter weather events, including 2014's polar vortex and 2022's Winter Storm Elliott.

Grid Improvement Grant

Georgia Power has been awarded over $160 million by the Department of Energy's Grid Deployment Office to enhance grid flexibility and resilience through the GRIP Program. This funding will support the deployment of new grid-enhancing technologies, help improve the resilience of the power system against extreme weather, ensure access to affordable, reliable electricity and unlock opportunities for renewable generation deployment.

Innovating How We Make, Move and Serve Energy

NCCC Reaches Milestone

The National Carbon Capture Center (NCCC), managed and operated by Southern Company on behalf of the U.S. Department of Energy, has surpassed 150,000 hours (about 17 years) of technology testing. This milestone advances cost-effective, commercially viable carbon management technologies to reduce greenhouse gas emissions from fossil-based power plants and industrial sources. The center's research also progresses technologies for carbon conversion and direct air capture.

Battery Storage Enhances Resiliency

The first grid-connected battery energy storage system (BESS) in Georgia Power's history entered commercial operation at the Mossy Branch Battery Facility, capable of storing 65 megawatts (MW) of energy to enhance grid resiliency and reliability. Approved as part of the 2019 Integrated Resource Plan (IRP), this facility supports the efficiency of renewable energy sources like solar by storing excess energy for use during high demand periods.

Renewable Gas Initiative

Virginia Natural Gas and Chattanooga Gas entered their first renewable natural gas purchases. The emissions reductions from the transactions are estimated to be equivalent to the carbon sequestered by over 12,000 acres of U.S. forest or an area the size of Manhattan. In April, VNG began serving more than 310,000 residential and small business customers with 100 percent Next Generation Natural Gas.

Advancing Nuclear Reactor Technology

Southern Company Services led the DOE Licensing Modernization Project (LMP) and the Technology Inclusive Content of Application Project (TICAP), pivotal efforts in modernizing the regulatory framework for advanced reactor licensing, which have now been endorsed by the U.S. Nuclear Regulatory Commission (NRC). These initiatives, aimed at reducing regulatory uncertainty and encouraging safer reactor designs, have significantly streamlined the licensing process for non-light water reactors, emphasizing safety and efficiency. The endorsement of the TICAP guidance underlines Southern Company's key role in advancing the deployment of new reactor technologies, marking a milestone in collaboration between industry, the NRC, DOE, and national labs.

GM Hydrogen Fleet

General Motors, in partnership with Southern Company and funded by the U.S. Department of Energy's SuperTruck 3 program, will deploy a fleet of hydrogen fuel-cell medium-duty trucks. This $65 million project aims to demonstrate hydrogen as a viable alternative to diesel and to create a hydrogen-based worksite ecosystem, reducing carbon emissions. Southern Company will use the trucks as shop vehicles at its worksites, highlighting the potential for hydrogen technology in utility operations.

Growing Our Company and Communities

Expanding Smart Neighborhood Project

Nicor Gas is expanding its partnership with Habitat for Humanity to create a second Smart Neighborhood community of 13 energy-efficient homes for first-time homeowners in Northern Fox Valley. These homes will feature high efficiency building designs, solar panels, energy storage, and smart technologies to help ensure manageable energy bills and enhanced living standards.

Customer Experience Transformation

Southern Company's multi-year customer modernization program has delivered significant value this year for our electric operating companies. In 2024, we implemented a new Meter Data Management system, centralizing and validating meter data for billing, analytics, and customer use. Additionally, the program has created and enhanced tools for our metering, customer service, and marketing teams, empowering our employees with better resources. Finally, we introduced an advanced data and analytics platform that unifies customer and meter data, making advanced analytics faster and more efficient. These updates are allowing our operating companies to use modern tools to anticipate evolving customer needs and improve first-contact engagement and resolution.

Meta's New Alabama Facility

Alabama Power played a crucial role in bringing Meta's $800 million data center and 100 jobs to Montgomery. The 715,000-square-foot facility will join Meta's other Alabama data center campus in Huntsville, representing an investment commitment of $1.5 billion in the state. The project, known as "Project Slate," required significant collaboration and a commitment to renewable energy, with Alabama Power ensuring reliable, clean energy to meet Meta's needs.

By the Numbers

Southern Company is committed to its goal of reaching net zero greenhouse gas (GHG) emissions by 2050. As part of this goal, the company is aiming to reach a 50 percent reduction in GHG emissions from 2007 levels by 2030.

In 2024 we reported:

$201 million to advance racial equity and social justice in our communities since 2021.

Through our foundations and corporate giving, we invested over $90 million in grants, sponsorships and impact investments across our territories in 2023.

This year, we continued to deliver strong shareholder returns. Southern Company increased its dividend by 8 cents per share, bringing the annualized rate to $2.86 per share. This marks the 76th consecutive year that Southern Company has paid a dividend on its common stock that is equal to or greater than the previous quarter. Additionally, the company achieved record closing stock prices in Q4.

Accolades

Fortune Magazine's #1 most admired electric and gas utility company worldwide
J.D. Power - Georgia Power ranked as the leading utility in the South for Electric Utility Business Customer Satisfaction
Disability Equality Index - Top score of 100 for the eighth consecutive year, "Best Places to Work for Disability Inclusion"
Top 10 2025 Military Friendly Employer - Honored for 18 or more years
Human Rights Campaign - Score of 100 on the 2023-2024 Corporate Equality Index for the seventh consecutive year
Investor's Business Daily Most Sustainable Companies - No. 1 utility

Southern Company received the Energy Transition Award for Power at the 2024 Platts Global Energy Awards for excellence in generation, grid modernization, innovation and grid asset modernization.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this communication is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning projected growth, estimated renewable generation and storage capacity additions and greenhouse gas emissions reduction goals. Southern Company cautions that there are certain factors that can cause actual results to differ materially from the forward- looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Company's Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the impact of recent and future federal and state regulatory changes, including tax, environmental and other laws and regulations to which Southern Company and its subsidiaries are subject, as well as changes in application of existing laws and regulations; the extent and timing of costs and legal requirements related to coal combustion residuals; current and future litigation or regulatory investigations, proceedings, or inquiries, including litigation and other disputes related to the Kemper County energy facility and Plant Vogtle Units 3 and 4; the effects, extent, and timing of the entry of additional competition in the markets in which Southern Company's subsidiaries operate, including from the development and deployment of alternative energy sources; variations in demand for electricity and natural gas; available sources and costs of natural gas and other fuels and commodities; the ability to complete necessary or desirable pipeline expansion or infrastructure projects, limits on pipeline capacity, public and policymaker support for such projects, and operational interruptions to natural gas distribution and transmission activities; transmission constraints; the ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects due to current and/or future challenges which include, but are not limited to, changes in labor costs, availability, and productivity, challenges with the management of contractors or vendors, subcontractor performance, adverse weather conditions, shortages, delays, increased costs, or inconsistent quality of equipment, materials, and labor, contractor or supplier delay, the impacts of inflation, delays due to judicial or regulatory action, nonperformance under construction, operating, or other agreements, operational readiness, including specialized operator training and required site safety programs, engineering or design problems or any remediation related thereto, design and other licensing-based compliance matters, challenges with start-up activities, including major equipment failure or system integration, and/or operational performance, challenges related to pandemic health events, continued public and policymaker support for projects, environmental and geological conditions, delays or increased costs to interconnect facilities to transmission grids, and increased financing costs as a result of changes in interest rates or as a result of project delays; legal proceedings and regulatory approvals and actions related to past, ongoing and proposed construction projects, including Public Service Commission approvals and Federal Energy Regulatory Commission and NRC actions; the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; investment performance of the employee and retiree benefit plans and nuclear decommissioning trust funds; advances in technology, including the pace and extent of development of low- to no-carbon energy and battery energy storage technologies and negative carbon concepts; performance of counterparties under ongoing renewable energy partnerships and development agreements; state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to return on equity, equity ratios, additional generating capacity, and fuel and other cost recovery mechanisms; the ability to successfully operate the electric utilities' generation, transmission, and distribution facilities, Southern Power Company's generation and battery energy storage facilities and Southern Company Gas' natural gas distribution and storage facilities and the successful performance of necessary corporate functions; the inherent risks involved in operating nuclear generating facilities; the inherent risks involved in generation, transmission and distribution of electricity and transportation and storage of natural gas, including accidents, explosions, fires, mechanical problems, discharges or releases of toxic or hazardous substances or gases and other environmental risks; the performance of projects undertaken by the non-utility businesses and the success of efforts to invest in and develop new opportunities; internal restructuring or other restructuring options that may be pursued; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Company or its subsidiaries; the ability of counterparties of Southern Company and its subsidiaries to make payments as and when due and to perform as required; the ability to obtain new short- and long- term contracts with wholesale customers; the direct or indirect effect on the Southern Company system's business resulting from cyber intrusion or physical attack and the threat of cyber and physical attacks; global and U.S. economic conditions, including impacts from geopolitical conflicts, recession, inflation, tariffs, interest rate fluctuations and financial market conditions and the results of financing efforts; access to capital markets and other financing sources; changes in Southern Company's and any of its subsidiaries' credit ratings; the ability of Southern Company's electric utilities to obtain additional generating capacity (or sell excess generating capacity) at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest, wars or other similar occurrences; the direct or indirect effects on the Southern Company system's business resulting from incidents affecting the U.S. electric grid, natural gas pipeline infrastructure, or operation of generating or storage resources; impairments of goodwill or long-lived assets; and the effect of accounting pronouncements issued periodically by standard-setting bodies. Southern Company expressly disclaims any obligation to update any forward-looking information.

Southern Company is a holding company that conducts its business through its subsidiaries; accordingly, unless the context otherwise requires, references in this report to Southern Company's operations refer to those operations conducted through its subsidiaries.