Southern Co, Tesla Reach Battery Testing Agreement
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.
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.
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