The Southern Company and its subsidiaries face risks from regulatory changes (tax, environmental, and others), litigation (including False Claims Act, CCR, and other disputes), competition (from alternative energy sources), fluctuating energy demand and prices, construction cost overruns, counterparty risk, and credit rating downgrades. Potential environmental remediation costs and nuclear decommissioning expenses are also significant risks. Economic downturns and inflation also pose risks to energy demand and costs.
Financial Upside
The document highlights potential revenue increases from rate changes, sales growth, favorable weather, and new projects (e.g., Plant Vogtle Units 3 and 4, renewable energy facilities). Acquisitions and dispositions of assets, and successful execution of construction programs, also present potential upside. Positive outcomes in pending litigation and regulatory matters could also contribute to financial gains.
