Southern Company Pledges Steady Customer Rates Through 2027

Amid rising living costs, The Southern Company’s SO subsidiary, Alabama Power, has made a significant commitment to maintain a steady rate for customers through 2027. Announced during the Alabama Public Service Commission meeting, the pledge aims to offer families and businesses greater certainty at a time when many expenses continue to climb. The company emphasized that all components of its regulated retail rates are set to remain unchanged for the next three years.

Absorbing Costs to Support Customers

A key part of this commitment includes delaying until 2028 the implementation of previously approved adjustments for the Lindsay Hill generation facility. Instead of passing these costs to a later date, Alabama Power will absorb them in 2027. This approach reflects the company’s broader effort to maintain affordability while continuing to invest in infrastructure improvements. Despite rising equipment costs, Alabama Power reports reducing operating expenses by nearly $100 million since 2017.

Tools & Assistance to Manage Monthly Bills

While rates will stay level, monthly bills may still vary based on electricity usage. To help customers stay in control, Alabama Power offers support tools like the Bill Explainer, Rate Advisor and Energy Assistant, along with Budget Billing and payment assistance programs. These resources are designed to help customers understand their bills, choose suitable rate options and find support when needed.

SO’s Zacks Rank & Key Picks

Southern Company deals with the generation, transmission and distribution of electricity and serves approximately 9 million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).

Investors interested in the utility sector might look at some better-ranked stocks like Alliant Energy Corporation LNT, Ameren Corporation AEE and Dominion Energy, Inc. D, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. . 

Madison, WI-based Alliant Energy is a holding company with subsidiaries engaged in regulated electric and natural gas services. It provides services to 1,000,000 electric and 430,000 natural gas customers in the Midwest. The Zacks Consensus Estimate for LNT's 2025 earnings indicates 5.9% year-over-year growth.

St. Louis, MO-based Ameren Corporation is a utility company that generates and distributes electricity and natural gas to residential, commercial, industrial and wholesale end markets in Missouri and Illinois. The Zacks Consensus Estimate for AEE's 2025 earnings indicates 7.6% year-over-year growth.

Richmond, VA-based Dominion Energy is a major energy company engaged in regulated and non-regulated electricity distribution, generation and transmission businesses. The Zacks Consensus Estimate for D's 2025 earnings indicates 22.7% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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