Georgia Power, the largest subsidiary of Southern Company (SO), received permission from the state regultors for a new tariff, which will help the utility company to nearly double its purchases of solar energy. The latest tariff plan will be effective from January 1, 2011.
Under the new solar tariff, the Georgia Power will obtain an additional 1.5 megawatts (“MW”) of solar capacity for 17 cents per kilowatt hour (“kWh”) from relatively small generators such as commercial buildings and homes with solar arrays. These providers of solar capacity are also entitled to disclose all cost and operational information to Georgia Power to make it aware of the various aspects of solar energy generation.
Georgia Power will also place proposals to procure power from larger solar generation sources, with no limit regarding the size of a given project. The company plans to buy up to 1 megawatt of power for 15 cents per kilowatt hour or less under this program.
The company will utilize this solar energy in the Premium Green Energy program, permitting customers to have 100-kilowatt hour blocks of green energy (50% solar composition) for $5 per block.
As per the company’s spokesperson, Georgia Power expanded the program by 1,000 new blocks of the Premium Green Energy product. With an enlarged solar capacity of 5.4 megawatt, the company aims to fulfill the consumers’ demand for solar energy.
Southern Company currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
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