Southern Company (The) (SO)

Southern Company is the regulated utility of the US south-east and owner of new nuclear units.

A regulated model: the state commission approves tariffs based on invested capital and an allowed return. Profit grows with investment in networks and generation rather than with electricity volumes — consumption in developed countries barely grows.

The company's distinction is the completed Vogtle nuclear units, the first new reactors in the United States in decades. Construction ran years late and over budget, and its completion removed the principal risk while adding a very long-lived asset to the rate base.

The region is growing quickly in population and industry, and data centres add capacity demand — a rare combination for a utility. Risks: regulatory tariff decisions, debt costs and hurricanes. Southern pays a high dividend with a long record of increases.