What is the core risk at Alabama Power’s Plant Barry?

The report focuses on unlined coal ash ponds near sensitive waterways. In a flood or breach, ash can enter rivers and wetlands, raising water quality and cleanup concerns. Regulators could require liners, excavation, or recycling, which would shape timelines, capex needs, and how much cost recovery the utility can seek from customers.

How could cleanup costs affect Southern Company’s earnings?

Large ash removal or lining programs can lift capex and carrying costs, pressuring near‑term free cash flow. Over time, if regulators grant recovery, rate base can grow and support earnings. The key variables are project scope, phasing, and allowed returns. Clear guidance on Alabama Power’s plan will help model earnings impact by year.

Can Southern Company recover coal ash costs from ratepayers?

Utilities typically seek recovery for prudent environmental compliance costs. Approval is not automatic. Commissions assess options, timelines, and customer bill impacts. For Alabama Power, 2026 filings could be a key step. Evidence of least‑cost solutions, recycling where feasible, and strong monitoring could improve chances and smooth the recovery schedule.

Is SO stock attractive after the report on coal ash ponds?

SO offers a 3.37% dividend yield and mixed ratings, with targets centered near $93. The chart is range‑bound with support around the mid $80s. Upside depends on visibility for Alabama Power’s plan, recovery timing, and litigation risk. Position sizing and patience make sense while awaiting regulatory milestones and clearer capex details.

Global Market Insights

SO Stock Today: December 29 — Report Flags Alabama Power Ash Risks

ByHuzaifa Zahoor December 30, 2025December 30, 2025

Alabama Power is in focus after a new report on unlined coal ash ponds at Plant Barry raised breach and groundwater risks that could affect parent Southern Company (SO). Investors are weighing cleanup capex, possible ash recycling, and how much cost recovery regulators may allow in 2026. SO last traded at $87.54, with a 21.8x P/E and a 3.37% dividend yield, while the Street’s consensus target sits near $93.22. We break down what this means for cash flow, valuation, and key 2026 catalysts.