Southern Company SO, through its subsidiary Southern Power, has made a major announcement regarding expanding its Millers Branch Solar Facility in Haskell County, TX. This Phase III expansion will further enhance the facility’s generating capacity by adding 132 megawatts (“MW”) to its previous expansions. With the completion of this phase, the Millers Branch Solar Facility will reach a total capacity of 512 MW, making this the subsidiary’s largest solar facility to date.
Overview of the Millers Branch Solar Facility
The Millers Branch Solar Facility is one of the most notable renewable energy projects under Southern's umbrella. SO’s expansion plans for the facility have been progressing in phases, with each phase contributing to the growing importance of the facility in the U.S. renewable energy landscape.
With Phase I and Phase II already completed, contributing 200 MW and 180 MW, respectively, the addition of Phase III will make Millers Branch Solar Facility one of the top solar energy producers in the country. This expansion highlights SO's commitment to scaling up its renewable energy portfolio and the company’s dedication to providing clean, sustainable energy across the United States.
Phase III Expansion: Key Details
The Phase III expansion will add a further 132 MW, pushing the total generating capacity of the Millers Branch Solar Facility to a remarkable 512 MW. This marks a significant achievement in Southern's efforts to strengthen its position as a leading player in the solar energy sector. The completion of this final development phase is expected in the fourth quarter of 2026. At this point, the facility will become a powerhouse in Texas's renewable energy landscape.
The project’s commercial operation will contribute substantially to Southern's overarching goal of providing clean energy to its diverse set of customers while helping to meet the company’s sustainability targets. With the ability to generate large quantities of renewable energy, the Millers Branch Solar Facility will play a key role in powering homes, businesses and industries, contributing to the shift toward a greener energy future.
Southern’s Growing Renewable Energy Fleet
The Millers Branch Solar Facility is part of Southern's larger renewable energy strategy, which includes a diverse portfolio of solar and wind energy assets spread across the United States. With the addition of Phase III, Southern’s solar portfolio will exceed the energy capacity of 3,050 MW, supporting its leadership in the renewable energy sector.
As of now, SO’s subsidiary Southern Power operates or is in the process of constructing 30 solar facilities and 15 wind facilities, amounting to a total of 5,590 MW of renewable energy capacity. This expanded fleet not only supports the growing demand for renewable energy but also aligns with SO's business strategy to strengthen its wholesale energy business. By acquiring and developing these assets, Southern ensures that it can meet long-term energy demands while supporting the energy transition across the United States.
Partnerships and Power Purchase Agreements
On the other hand, SO’s unit Southern Power has been proactive in securing long-term Power Purchase Agreements (PPAs) to ensure the financial stability and success of its renewable energy projects. The Millers Branch Solar Facility is no different. Through its partnership with companies like Synopsys, Inc. and Keysight Technologies, SO’s unit has signed agreements to provide renewable energy credits produced from the facility. These agreements will allow the companies to meet its sustainability goals while supporting the further development of the Millers Branch Solar Facility.
The Sustainability Roundtable, Inc. also backed the PPA for Synopsys, the project's anchor tenant. These agreements are integral to ensuring that SO’s unit can continue to fund future developments while maintaining a steady and predictable revenue stream. This validates SO’s unit’s ability to integrate sustainability into its business operations and create mutually beneficial relationships with other businesses committed to environmental responsibility.
Looking Ahead: The Future of Southern and Millers Branch
The Millers Branch Solar Facility is just one example of Southern’s broader vision for the future of energy in the United States. The completion of Phase III will cement the facility’s place as a leader in renewable energy generation. Southern Power’s ongoing commitment to developing new energy assets will continue to shape the future of clean energy in the United States.
As Southern moves forward with this and other projects, it remains focused on delivering clean, sustainable energy to the company’s customers while strengthening its position in the growing renewable energy sector. By investing more in solar, wind and other renewable sources, Southern is helping to build a more sustainable and reliable energy future for the generations ahead.
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 Ameren Corporation AEE, DTE Energy Company DTE and NiSource Inc. NI, each holding a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Ameren is worth approximately $24.62 billion. St. Louis, MO-based AEE is a utility company, which generates and distributes electricity and natural gas to residential, commercial, industrial and wholesale end markets in Missouri and Illinois. The company currently pays a dividend of $2.68 per share, or 2.91%, on an annual basis. In the past year, its shares have risen 22%.
DTE Energy is worth approximately $25.3 billion. Detroit, MI-based DTE is a diversified energy company that develops and manages energy-related businesses and services nationwide. The company currently pays a dividend of $4.08 per share, or 3.34%, on an annual basis. In the past year, its shares have risen 18.4%.
NiSource is worth approximately $17.41 billion. NI, a Merrillville, IN-based energy holding company, together with its subsidiaries, provides natural gas, electricity and other products and services in the United States. The company currently pays a dividend of $1.06 per share, or 2.84%, on an annual basis. In the past year, its shares have risen 44.4%.
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