Southern Company, which supplies energy to 9 million customers in the Southeast, is gearing up for significant growth. During its recent third quarter earnings call, the company announced a pipeline of over 50 gigawatts (GW) in potential new large customer demand over the next ten years.
CEO Chris Womack highlighted that they’ve recently signed contracts with large clients in Georgia and Alabama, which collectively account for more than 2 GW of new demand. CFO David Poroch emphasized the importance of strong customer protections to mitigate potential rate increases tied to this new load.
The company’s subsidiaries, including Georgia Power, Alabama Power, and Mississippi Power, reported impressive third-quarter earnings—$1.7 billion or $1.55 per share, up from $1.5 billion or $1.40 per share a year ago. Growth was noted across all customer segments, with 12,000 new residential customers and a 17% increase in data center usage compared to the previous year.
Poroch shared that economic activity in the region is thriving, with 22 companies announcing plans to either start or expand operations in Southern’s service areas during the quarter. The company projects annual sales growth of 8% through 2029, particularly in the Georgia Power service area, which anticipates a 12% increase.
Contracts now exist for large load customers representing 7 GW through 2029, expected to rise to 8 GW in the following decade. To support this growth, Southern is looking to expand its generation capabilities. Womack mentioned that Georgia Power is moving forward with a forecast for 10 GW of new capacity, which includes the addition of five gas-fired units and 11 battery storage facilities.
Ongoing developments include the construction of about 2.5 GW in Georgia and Alabama, comprised of natural gas facilities and battery storage, all set to be operational in the next two years.