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Southern Company Pledges Steady Customer Rates Through 2027
ZACKS· 2025-12-03 17:36
Core Insights - Alabama Power, a subsidiary of The Southern Company, has committed to maintaining steady customer rates through 2027 to provide certainty amid rising living costs [1][9] - The company will delay cost adjustments for the Lindsay Hill generation facility until 2028 and absorb these costs in 2027, reflecting its commitment to affordability while investing in infrastructure [2][9] - Alabama Power offers various tools and assistance programs to help customers manage their monthly bills, despite potential variations based on electricity usage [3][9] Company Overview - The Southern Company operates in the generation, transmission, and distribution of electricity, serving approximately 9 million customers through its seven electric and natural gas distribution units [4] - The company currently holds a Zacks Rank of 3 (Hold) [4] Investment Opportunities - Investors may consider other utility stocks with better rankings, such as Alliant Energy Corporation (LNT), Ameren Corporation (AEE), and Dominion Energy, Inc. (D), which currently hold Zacks Rank 2 (Buy) [5] - Alliant Energy serves 1 million electric and 430,000 natural gas customers, with a projected 5.9% year-over-year earnings growth for 2025 [6] - Ameren Corporation provides electricity and natural gas in Missouri and Illinois, with a projected 7.6% year-over-year earnings growth for 2025 [7] - Dominion Energy is involved in regulated and non-regulated electricity distribution, with a projected 22.7% year-over-year earnings growth for 2025 [8]