Atlanta-based utility giant Southern Company’s fourth quarter profits were up by close to $1 billion compared to the same period last year, the company announced Thursday morning.
Between October and December, Southern Company earned $855 million, compared to the $87 million loss it absorbed in the last quarter of 2022, a difference of $942 million. Profits for all of 2023 also rose to $4 billion, with the company earning about half a billion dollars more than it did in 2022.
The company said the huge jump in earnings was driven mainly by higher revenues at its regulated electric utilities, lower taxes and lower non-fuel expenses.
Despite higher revenue at its utilities, overall fourth quarter revenues for the parent company were down 14.3% from 2022, dropping to $6.0 billion from $7.0 billion the year before. Full year revenues for 2023 were $25.3 billion, down 13.7% from $29.3 billion in 2022. The company, which also owns several natural gas companies, said the dip was driven by lower fuel costs.
Southern offset those declining total revenues by slashing expenses, particularly as it relates to fuel costs. For the fourth quarter, Southern cut expenses by about $2.1 billion compared to the final three months of 2022. For all of 2023, Southern cut expenses by $4.5 billion compared to 2022.
In a statement, Southern’s President and CEO Chris Womack called 2023 an “exceptional year” for the company. Southern made history last summer when it placed the first new nuclear reactor at Plant Vogtle near Augusta into service.
“In 2023, we once again demonstrated that we can accomplish extraordinary things,” Womack said. In addition to delivering strong financial results in the face of unprecedented headwinds, we completed Plant Vogtle Unit 3 – the first newly-constructed nuclear unit in the United States in over three decades.”
Southern’s most profitable division in 2023 was its largest subsidiary, Georgia Power, which earned $2.53 billion last year. Over the last 13 months, a series of large rate increases for Georgia Power customers have been approved by regulators at the Georgia Public Service Commission, which could ultimately push the typical residential customer’s bill up by about $38 per month.
In early February, Georgia Power announced the completion of Plant Vogtle’s second new unit would be delayed again until sometime between April and June. But in a sign of progress, the company said it has begun splitting atoms inside the reactor of the unit — known as Unit 4.
On an investor earnings call Thursday, Womack said Unit 4 could sync with the electric grid by the end of this month and expressed confidence the unit would enter service during April.
“Right now, as we look at where we are, we’re planning on the unit being online in April and we think we have a number of weeks of margin to accomplish that objective,” Womack said.
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