Southern Company
The Southern Company is a utility holding company whose principal subsidiaries provide power in Alabama, Georgia, Florida, and Mississippi. With the gradual deregulation of the utilities industry in the 1990s, Southern Company expanded its holdings into New England, New York, the Midwest, and California, making it the largest power producer in the country. In addition, Southern now owns power generating operations in Europe, Hong Kong, the Philippines, and South America.
The early 1980s saw a return to growth. In January 1982 The Southern Company formed Southern Electric International Inc. to market The Southern Company's technical expertise to utilities and industrial concerns. Large building programs also were continued. In 1984 The Southern Company announced that it would spend $7.1 billion over three years to complete seven generating plants including two nuclear units at the Vogtle site near Augusta, Georgia.
As the decade came to a close, Southern, like many utilities, found that its nuclear building program was over budget. In 1985 Southern had pledged not to pass through to ratepayers any more than $3.56 billion, which was then its share of the $8.35 billion estimated total cost of the Vogtle plant. Southern said any amount above that cap would be charged to its shareholders. When the estimated price of the project increased by $522 million in 1986, Southern posted a charge of $229 million against 1987 earnings. Problems with construction costs and regulators led to a series of disappointing earnings years and stagnant dividends.
In March 1988 The Southern Company acquired Savannah Electric & Power Company of Savannah, Georgia, for approximately 11 million common shares, exchanging 1.05 Southern shares for each Savannah Electric common share, a stock transaction valued at $239.3 million. Later that year the U.S. Attorney General's office in Atlanta began investigating Southern's tax accounting practices for spare parts. In 1989 it also began
The early 1980s saw a return to growth. In January 1982 The Southern Company formed Southern Electric International Inc. to market The Southern Company's technical expertise to utilities and industrial concerns. Large building programs also were continued. In 1984 The Southern Company announced that it would spend $7.1 billion over three years to complete seven generating plants including two nuclear units at the Vogtle site near Augusta, Georgia.
As the decade came to a close, Southern, like many utilities, found that its nuclear building program was over budget. In 1985 Southern had pledged not to pass through to ratepayers any more than $3.56 billion, which was then its share of the $8.35 billion estimated total cost of the Vogtle plant. Southern said any amount above that cap would be charged to its shareholders. When the estimated price of the project increased by $522 million in 1986, Southern posted a charge of $229 million against 1987 earnings. Problems with construction costs and regulators led to a series of disappointing earnings years and stagnant dividends.
In March 1988 The Southern Company acquired Savannah Electric & Power Company of Savannah, Georgia, for approximately 11 million common shares, exchanging 1.05 Southern shares for each Savannah Electric common share, a stock transaction valued at $239.3 million. Later that year the U.S. Attorney General's office in Atlanta began investigating Southern's tax accounting practices for spare parts. In 1989 it also began