Southern's Subsidiary Installs Advanced Turbines at Plant Yates

Georgia Power, a subsidiary of Southern Company SO, in collaboration with Mitsubishi Power, has successfully received the first of three advanced simple-cycle gas combustion turbines at Plant Yates, located in Coweta County, GA. The delivery marks a significant advancement in the region’s energy infrastructure, with the turbine being assembled at Mitsubishi Power’s Savannah facility and then moved by rail and truck. The turbine, an impressive 350 tons in weight, measuring 50 feet long and 18 feet wide, represents the latest in energy technology.

These Mitsubishi Power M501JAC combustion turbines are the first natural gas turbines added to Georgia Power’s generation fleet in 10 years. Once fully operational, the three units will collectively generate 1,300 megawatts (MW) of power, dramatically strengthening energy capacity and reliability for customers across Georgia.

Historic Significance and Modernization of Plant Yates

Plant Yates holds a prominent place in Southern’s history, having commenced commercial operations in 1950. Originally established to support post-World War II economic growth, the plant has evolved significantly over the decades. In 2014, a key transformation saw five of the seven coal-fired units at Plant Yates decommissioned, while the remaining two coal units were converted to natural gas generation. This transition underlined SO’s commitment to cleaner and more efficient energy sources.

The introduction of these three new state-of-the-art gas turbines further cements Plant Yates as a cornerstone of Georgia’s energy portfolio, reflecting ongoing investments that balance reliability, sustainability and economic growth. The expansion project alone is creating around 600 construction jobs and will permanently increase Plant Yates’ workforce by 15 full-time positions, supporting a total of 75 permanent employees.

Strategic Growth With Efficient Natural Gas Technology

SO’s unit continues to leverage its strategic partnerships with industry leaders like Mitsubishi Power to meet increasing energy demands in a growing state. The Georgia Public Service Commission approved the new gas turbines as part of the 2023 Integrated Resource Plan Update, highlighting a forward-thinking approach to energy planning. With natural gas generation offering shorter construction timelines and operational flexibility, these units are scheduled to come online by the end of 2027.

This timely addition to Georgia’s energy infrastructure ensures the state remains well-equipped to provide affordable, reliable power as demand escalates. By utilizing existing property and infrastructure at Plant Yates, SO’s subsidiary delivers maximum value to customers, supporting its position as a dependable energy provider.

Advanced Technology and Operational Excellence of M501JAC Turbines

The Mitsubishi Power M501JAC gas turbines, now installed at Plant Yates, are some of the most advanced models in the industry. Featuring air-cooled technology, these turbines eliminate the need for steam cooling, which results in faster start-up times, approximately 30 minutes, making them highly responsive to grid demands. The turbines also offer a lower turndown rate, allowing for efficient operation at varied power outputs without compromising performance. Importantly, these units incorporate fuel flexibility, capable of running on oil in rare circumstances when the natural gas supply is interrupted.

On-site oil storage ensures continuity and system resiliency. Moreover, the M501JAC turbines are designed to accommodate hydrogen blending with minimal modifications, positioning Georgia Power at the forefront of low-carbon fuel innovation. This aligns with ongoing efforts to reduce carbon emissions, including Georgia Power’s pioneering 50% hydrogen blending pilot at Plant McDonough-Atkinson, developed in partnership with Mitsubishi Power.

Commitment to Local Manufacturing and Workforce Development

The assembly of the M501JAC turbines at Mitsubishi Power’s Savannah Machinery Works highlights a significant investment in U.S.-based manufacturing and skilled labor. Cheryl Boddiford, senior vice president at Mitsubishi Power, highlighted how this collaboration boosts Georgia’s energy infrastructure while creating jobs and supporting workforce development in local communities. The partnership between Georgia Power and Mitsubishi Power exemplifies a shared dedication to delivering cutting-edge, flexible and high-efficiency energy solutions that will meet the country’s needs for decades to come.

Enhancing Energy Reliability and Customer Value

Rick Anderson, senior vice president and senior production officer of Georgia Power, underscored its unwavering commitment to providing customers with dependable, affordable energy accessible around the clock. The new natural gas turbines at Plant Yates represent a critical component of a diversified generation portfolio designed to enhance grid stability and meet evolving energy needs. This project exemplifies strategic use of existing infrastructure combined with innovative technology to maximize benefits for consumers while fostering sustainable economic growth in Coweta County and beyond.

Southern’s investment in these advanced turbines at Plant Yates not only strengthens the state’s energy capacity but also demonstrates leadership in adopting next-generation technology. This initiative ensures that Georgia remains on a path toward a resilient, cleaner and more flexible energy future.

SO’s Zacks Rank and Key Picks

Currently, SO carries a Zacks Rank #3 (Hold).

Investors interested in the utility sector might look at some better-ranked stocks like TransAlta Corporation TAC, sporting a Zacks Rank #1 (Strong Buy), Fortis Inc. FTS and E.ON SE EONGY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

TransAlta is worth approximately $3.66 billion. It currently pays a dividend of 19 cents per share, or 1.53% on an annual basis. The company is involved in generating, producing and selling electric power across multiple sectors. It operates through five key segments: Hydro, Wind and Solar, Gas, Energy Transition and Energy Marketing. TransAlta owns and operates a mix of hydroelectric, wind, solar and gas-powered generation facilities across Canada, the United States and Western Australia, totaling several thousand megawatts of capacity. TransAlta, founded in 1909, is headquartered in Calgary, Canada.

Fortis is worth approximately $25.56 billion. It currently pays a dividend of $1.78 per share, or 3.51% on an annual basis. Fortis is an electric and gas utility company operating in Canada, the United States and the Caribbean. It serves more than 452,000 electricity customers in southeastern Arizona, distributes natural gas in British Columbia and owns several hydroelectric and gas-fired power plants. The company also provides services across various regions, including Alberta, Ontario, Newfoundland and Labrador, and the Caribbean, with extensive distribution networks and a range of energy assets. Fortis was founded in 1885 and is headquartered in Saint John's, Canada.

E.ON SE is worth approximately $48.52 billion. It currently pays a dividend of 46 cents per share, or 2.45% on an annual basis. E.ON SE is a multinational energy company headquartered in Essen, Germany, operating across Europe and internationally through its Energy Networks, Energy Infrastructure Solutions and Energy Retail segments.The company provides comprehensive energy services, including power and gas distribution, sustainable energy solutions, smart technology installations and green energy products to residential, commercial and industrial customers.

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