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    Southern’s New Georgia Grid Buildout Could Be A Game Changer For Southern (SO)

    Simply Wall St·12/10/2025 05:24:27
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    • Southern Inc.’s subsidiary Georgia Power recently announced major grid investments across several Georgia counties, including the Ashley Park–Wansley 500 kV transmission line under its new 10-year plan, aimed at improving reliability and meeting rising regional electricity demand.
    • These long-dated transmission upgrades highlight how Southern is tying capital spending directly to Georgia’s growth corridors, potentially reinforcing the company’s regulated asset base over time.
    • We’ll now explore how Southern’s expanded Georgia transmission build-out, anchored by the Ashley Park–Wansley line, could influence its investment narrative.

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    Southern Investment Narrative Recap

    To own Southern, you need to believe that long term growth in regulated grid and generation assets across the Southeast can offset rising costs, equity issuance and regulatory scrutiny. Georgia Power’s new 10 year transmission build, including the Ashley Park–Wansley 500 kV line, supports the load growth side of that story, but does little to reduce near term dilution risk from Southern’s larger capital plan or pressures on net margins from higher operating and financing costs.

    Among recent announcements, Southern’s US$1.75 billion composite equity units offering in November 2025 stands out alongside this new Georgia grid build out, because it directly ties into funding the enlarged capital program that underpins the company’s growth narrative. For investors, the combination of heavier long dated transmission spending and additional equity highlights how much of Southern’s investment case now rests on continued regulatory support and careful management of balance sheet strain.

    Yet behind these growth projects, investors should be aware that rising operating, interest and depreciation costs could quietly...

    Read the full narrative on Southern (it's free!)

    Southern's narrative projects $31.7 billion revenue and $5.8 billion earnings by 2028. This requires 3.8% yearly revenue growth and about a $1.5 billion earnings increase from $4.3 billion.

    Uncover how Southern's forecasts yield a $99.22 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    SO 1-Year Stock Price Chart
    SO 1-Year Stock Price Chart

    Four members of the Simply Wall St Community see fair value for Southern between US$92.53 and US$289.15, showing how far apart individual views can sit. Against that wide range, Southern’s enlarged capital plan and reliance on equity funding put the focus back on how future returns will be shared between new investment, balance sheet pressure and existing shareholders, so it is worth comparing several of these viewpoints before deciding what the story looks like to you.

    Explore 4 other fair value estimates on Southern - why the stock might be worth over 3x more than the current price!

    Build Your Own Southern Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.