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Southern Co, Tesla Reach Battery Testing Agreement

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Southern Co, Tesla Reach Battery Testing Agreement
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The Atlanta-based electric utility Southern Co (NYSE: SO) will test commercial-scale battery storage in an agreement with Tesla Motors Inc (NASDAQ: TSLA).

Southern disclosed the agreement at its annual meeting where the company sought to defeat a shareholder proposal to adopt goals for reducing greenhouse gas emissions.

Establishing such a goal would be a poor use of resources "given the ongoing reporting and significant policy engagement by the company in this area," Southern said in its proxy statement.

A vote tally on the proposal wasn't immediately issued via press release.

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Under the Tesla agreement, Southern will "examine potential applications for the energy storage technology in helping meet customers' energy needs."

A headache developed for Southern on May 20 when South Mississippi Electric said it would pull out of a plan to acquire 15 percent of a $6.2 billion coal-fired plant under construction and being spearheaded by Southern.

A Southern representative told The Wall Street Journal that the company is "evaluating its alternatives" for the plant.

South Mississippi, a cooperative, cited delays in project schedule, changing needs, and increased participation costs as reasons for withdrawal from the project.

Tesla shares were nearly unchanged recently at $247.49; Southern traded at $43.63, up $0.33 cents.

Posted-In: Southern Co Tesla Tesla BatteriesNews Contracts Tech Best of Benzinga

 

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