Lines to Everyone: Corporate Responsibility Report
Southern Company
  • Business Overview
  • Energy Innovation
  • Social Responsibility
  • Economic Stewardship
  • Committed Governance
  • Key Impacts, Risks, Opportunities
  • CEO Viewpoint
  • Strategy
  • Events
  • Performance

Strategy

In addition to supplying electricity to customers in our region, we sell power on spot markets from the trading floor in Birmingham, Ala.

Planning is based on a fundamental strategy. Here are our strategic commitments (in bold) and how we propose to meet them (bulleted below).

Generate Affordable and Reliable Electricity

  • Forecast economic growth and electricity demand to ensure we have the equipment and skilled employees needed to provide reliable and affordable electricity in our southeastern U.S. markets.
  • Expand renewable fuel options for our region, add nuclear generation, and advance clean coal technology and natural gas to retain fuel diversity.
  • Promote conservation and energy efficiency by engaging customers with programs to use electricity efficiently.
  • Participate in policymaking with officials to help build fair and effective regulation.

Reduce Environmental Impact

  • Research and implement new technologies that enable us to meet environmental regulations and reduce our environmental footprint while providing reliable and affordable electricity.
  • Continue to reduce emissions and discharges from our power plants. We also support the EEI climate change framework.

Invest In Our People

  • Attract, retain, equip, and protect a diverse and inclusive work force.

Be Stewards of the Community

    Within our service territory—
  • Support communities and groups.
  • Conserve biodiversity and ecosystems.
  • Improve economies and quality of life.

Risk assessment (see risk factors) further shapes our plans. We continually evaluate risk through scenarios based on interrelated factors like fuel market conditions and prices and a range of environmental requirements varying in stringency. Environmental variables include requirements from possible climate change legislation and regulation.

After comprehensive review of the scenarios both internally and hand-in-hand with our regulators, their staff and consultants, we develop action plans. We consider the long-term implications of the action plans in our generation and transmission planning and the short-term implications through the Southern Company Fleet Operations and Power Coordination Center. This process ensures reliable and affordable service while adapting to changing market conditions.

Financial Objectives and Targets

Southern Company trades on the New York Stock Exchange as SO. Our stock is among the most widely held in the U.S. with about 600,000 shareholders. We have paid a dividend each quarter consecutively dating from 1948.

2011 financial objectives and targets:

  • Earnings Per Share Growth - Regular, predictable, sustainable; deliver growth over the long term within a range of 5 percent to 7 percent
  • Return on Equity & Top quartile of electric utilities
  • Dividend Growth & Long-term growth consistent with a targeted dividend payout ratio in the range of 70 percent
  • Financial Integrity & Achieve an attractive risk-adjusted return, supported by a transparent business model, sound financial policy, and a stable "A" credit rating

Investor Fact Sheet »

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