Published 10-28-24
Submitted by Southern Company
Originally published in Southern Company's 2023 Sustainability Summary
Providing clean, safe, reliable and affordable energy to customers is fundamental to Southern Company’s mission. Our growing portfolio of zero-carbon resources plays an integral role in helping us meet these objectives. Our greenhouse gas reduction goals are to achieve 50% reduction from 2007 levels by 2030 and to reach net zero by 2050, consistent with the commitments of the Paris Agreement. Our goals are specific to Scope 1 emissions as they comprise approximately 70% of our GHG emissions profile, and we have the most direct ability to influence our emissions reduction trajectory through infrastructure transition. Reducing Scope 3 emissions, which represent approximately 30% of our GHG profile, is also an area of focus across our electric and natural gas utilities.
Effective Execution of Decarbonization Strategies
Developing Durable Solutions for the Future
Electric Utilities
We continue to transform our business as we build a diverse energy portfolio, develop innovative programs and services for our customers and research new clean energy technologies. Since issuing our Implementation and Action Toward Net Zero report in 2020, which outlined our goal of achieving net-zero GHG emissions by 2050, we have made significant progress in reducing GHG emissions across our business.
Over the past five years, energy industry fundamentals have changed meaningfully, including fuel price volatility, rapid projected demand growth in our southeastern service territories, supply chain dynamics and legislative incentives, among others. In addition, the issuance of new federal environmental regulations in April 2024 impacts the energy mix needed to reliably serve our customers beyond this decade. As we strive to effectively meet our customers' future needs, we continue to enhance our planning processes, which routinely consider a host of factors, including environmental impacts, safety, reliability, resilience and affordability, as well as broader social and economic community impacts. Infrastructure decisions made as part of our planning and regulatory processes impact our ongoing evaluation of Southern Company’s GHG reduction goals.
As we look to the future and aim to reach net zero by 2050, many of the factors noted above will influence the energy resource mix needed to serve customers. While the proportion of each resource may shift over time, the following key tenets remain consistent given our view of current and emerging technologies and economic attributes:
Another critical element of our net-zero transition will be continued investment in transmission and distribution systems to support resiliency, reliability and the intermittent nature of renewable resources. As we propose and seek approval of new generating resources and energy-saving programs, our plans also include the related infrastructure necessary to deliver the continued growth in clean energy to customers.
Federal Regulatory Compliance
In 2024, the Securities and Exchange Commission, the Environmental Protection Agency (EPA) and the Federal Energy Regulatory Commission issued new reporting requirements and regulations that we expect will likely impact the electric utility industry. Southern Company and our operating companies have engaged in constructive dialogue with each agency during the rulemaking processes through company meetings, industry meetings and formal comment processes. Our advocacy has centered on ensuring an orderly transition to net zero that also prioritizes reliability and affordability for our customers.
Subject matter experts across our company continue to evaluate the rules, including the opportunities and challenges to our mission of providing clean, safe, reliable and affordable energy. In the coming months, we expect our planning, regulatory and compliance teams to refine scenarios that incorporate potential impacts of the new rules and other factors, such as increasing customer demand. Our leadership, with oversight by the Board of Directors, will review and make determinations around infrastructure investment, retirement and conversion options that we can propose to our state regulatory commissions through established resource planning processes.
Spotlight: Southern Power’s Expanding Solar Footprint
In April 2024, Southern Power announced its 30th solar site, the South Cheyenne Solar Facility, entered commercial operation, becoming Southern Power's first site in Wyoming. With this addition, Southern Power's operational footprint expanded to 15 states. Southern Power also announced the 180 MW expansion of the Millers Branch Solar Facility. With the addition of South Cheyenne and the expansion at Millers Branch, Southern Power’s renewables portfolio will total 5,450 MW across 30 solar and 15 wind facilities. These projects align with Southern Power’s overall business strategy of strengthening its wholesale business by acquiring and developing generating assets that are covered by long-term contracts with counterparties with strong credit support.
“We are thrilled to announce the expansion of our Millers Branch Solar Facility. This renewable energy expansion represents a clean, innovative solution to help a diverse group of customers achieve meaningful progress on their own sustainability objectives. It’s one more example of how Southern Power is building the future of energy and meeting the evolving needs of our customers and communities.”
– Robin Boren, President, Southern Power
Southern Company (NYSE: SO) is a leading energy provider serving 9 million customers across the Southeast and beyond through its family of companies. Providing clean, safe, reliable and affordable energy with excellent service is our mission. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy distribution company with national capabilities, a fiber optics network and telecommunications services. Through an industry-leading commitment to innovation, resilience and sustainability, we are taking action to meet customers' and communities' needs while advancing our goal of net zero greenhouse gas emissions by 2050. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success. We are transforming energy into economic, environmental and social progress for tomorrow. Our corporate culture and hiring practices have earned the company national awards and recognition from numerous organizations, including Forbes, The Military Times, DiversityInc, Black Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To learn more, visit www.southerncompany.com.
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