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Electric utility holding company $SO's construction program is estimated to total $7.3Bil for 2016, $5.2Bil for 2017, and $5.5Bil for 2018. These include expenditures of approx. $0.7Bil related to construction & start-up of Kemper IGCC in 2016 and $0.6Bil, $0.7Bil & $0.4Bil to continue construction on Plant Vogtle Units 3 & 4 in 2016, 2017 & 2018.
Atlantic Coast Pipeline signed Project Labor Agreements with four building and construction trade unions. The agreements reaffirm the Atlantic Coast Pipeline project's commitment to hiring skilled union workers for the pipeline's construction. Atlantic Coast Pipeline is comprised of 4 major U.S. energy companies, $D, $DUK, $PNY and $SO.
$SO's subsidiary PowerSecure has been awarded a contract by the U.S. Army Corps of Engineers to offer additional support to repair the power grid in Puerto Rico. The crews include members of Delta Company, 249th Engineer Battalion (Prime Power) along with Puerto Rico Electric Power Authority's employees and contractors.
$SO and its subsidiary Southern Company Gas said that Pivotal Utility Holdings, Inc., a subsidiary of Southern Company Gas will sell the assets of its utility operating divisions Elizabethtown Gas and Elkton Gas to South Jersey Industries in an all-cash transaction with an enterprise value of approx. $1.7Bil. The deal is expected to close by 3Q18.
$EQIX signed a 15-year Power Purchase Agreement (PPA) with a subsidiary of $SO in which Bloom Energy fuel cells will be installed at 12 International Business Exchange data centers in the U.S. The project will provide a total capacity of more than 37 megawatts of power with a phased installation that begins in late 2017 through 2019.
In Southern Power, $SO stated that it is evaluating the use of third-party tax equity to fund renewable projects. Southern Power is also working to secure tax equity for the Cactus Flats wind project. The company expects it will likely explore the same for projects in its 3,000 megawatt joint development pipeline.
$SO saw many positive indicators in its service territories. YTD residential customer growth exceeded expectations with 15,000 new customers added in $SO's gas service areas and about 25,000 added in its electric territories. $SO added that employment and population growth in its combined electric and gas territories were good.
Mild weather, increased interest expense and share issuances dragged the gas and electric utility holding company $SO to a loss for 2Q17. For the quarter, $SO reported net loss of $1.38Bil or $1.38 per share compared to a net income of $623MM or $0.68 per share a year earlier. Revenue surged 21.7% to $5.43Bil. Non-GAAP EPS dipped to $0.73 YoY.
Energy company $SO and its subsidiary Gulf Power have launched the latest battery storage research project. The project is envisaged to demonstrate the capabilities of an energy storage system designed to help industrial and commercial customers store and use energy. It is expected to boost development of battery storage technology in the company.
$SO and Mississippi Power announced the suspension of start-up and operations activities involving the lignite gasification portion of the Kemper County energy facility. The facility will continue to operate using natural gas pending the Mississippi Public Service Commission's decision on future operations.
$SO's PowerSecure unit entered into a strategic alliance with Advanced Microgrid Solutions to develop and deploy behind-the-meter distributed energy resources across the US. PowerSecure will bring project design, engineering and technology solutions to the alliance while AMS will provide asset management services through its ArmadaTM platform.
$SO said it recognized higher income at Southern Power related to production tax credits in 1Q17. The company do not expect additional tax benefit to occur for the rest of the year. Southern Power recognized a tax benefit of over $50MM in 1Q17.
Power company $SO reported 34.5% rise in 1Q17 profit. The results were positively influenced by Southern Company as that was acquired on July 1, 2016. Net earnings rose to $658MM, or $0.66 per share, compared to $489MM, of $0.53 per share during 1Q16. Revenues rose 44.6% to $5.77Bil from $3.99Bil. Excluding items, $SO earned $0.66 per share.