PowerSouth Energy

What PowerSouth Energy does

PowerSouth Energy Cooperative, founded in 1941 and headquartered in Andalusia, Alabama, is a generation and transmission (G&T) electric cooperative that supplies wholesale electricity to 22 distribution member systems — 18 electric cooperatives and 4 municipal electric systems — serving more than 1 million residential, commercial, and industrial end-users across 51 Alabama counties and 10 Northwest Florida counties. The cooperative owns and operates a diversified generation portfolio totaling more than 2,300 megawatts, anchored by the Lowman Energy Center (a natural gas combined-cycle plant in Leroy, Alabama being expanded past 1 GW with Mitsubishi M501JAC turbines), the McIntosh Plant peaking units, the Gantt and Point A hydroelectric dams, and supplementary purchases including 125 MW from Plant Vogtle Units 3 and 4 and 80 MW from the Wing Solar Site. PowerSouth also maintains 2,300+ miles of transmission lines and 300+ substations with mobile substation capabilities and an integrated fiber/telecommunications network.

The cooperative's revenue model is wholesale electricity supply under long-term power supply agreements with its member systems, operating on a not-for-profit basis in which surplus revenues are reinvested in infrastructure or returned to members. Pricing is not publicly disclosed and is governed by cooperative bylaws. Its go-to-market combines direct-to-member wholesale relationships with a sales-led economic development function that recruits commercial and industrial companies (aerospace, advanced manufacturing, IT, biotech, automotive, distribution/logistics) into its service territory using site selection, AIDT workforce programs, and zero-interest business development loans of up to $600,000. PowerSouth joined the Southern Company Power Pool in 2021, trading some dispatch independence for system reliability and market access. The cooperative is currently in a major capital deployment cycle, including the Lowman expansion (2026), a 450 MW simple-cycle natural gas unit scheduled for late 2029, and recent membership additions (Black Warrior EMC and Tombigbee EC) in 2026 — the first new members in over 50 years.

Name

PowerSouth Energy

Legal name

PowerSouth Energy Cooperative

Website

https://powersouth.com

Company type

Private

Founded year

1941

Operating status

Operating

Headcount range

501–1,000 employees

Short description

PowerSouth Energy Cooperative is a generation and transmission electric cooperative, founded 1941 in Andalusia, Alabama, supplying wholesale power from 2,300+ MW of owned generation and 2,300+ miles of transmission to 22 distribution member cooperatives and municipal systems serving over 1 million end-users across Alabama and Northwest Florida.

Ownership category

akta.pro rank

Product category

Wholesale Electric Power Generation and Transmission

NAICS

Electric Power Generation, Transmission and Distribution (2211), Electric Power Transmission, Control, and Distribution (22112), Fossil Fuel Electric Power Generation (221112), Hydroelectric Power Generation (221111), Solar Electric Power Generation (221114)

SIC

Electric Services (4911), Cogeneration Services & Small Power Producers (4991)

akta.pro primary industry

Electric Cooperatives (Rural/Member-Owned Utilities) (EUADABAC)

akta.pro secondary industries

Grid-Scale Power Conversion & Interconnection (PCS, Grid-Tie Inverters, Converter Stations) (IMAGAAAI), Distributed Generation (DG) Solar & Small Wind (EUAMAJAD)

Keywords

• Wholesale electric generation
• Transmission services
• Electric cooperative utility
• Natural gas power generation
• Rural electric distribution

Headquarters

HQ city

Andalusia

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Supply Chain, Technology or R&D

Revenue model

1. Wholesale Power Sales to Member Distribution Systems: PowerSouth generates revenue primarily by selling wholesale electricity to its 22 distribution member systems (18 electric cooperatives and 4 municipal electric systems) who then distribute energy to residential, commercial, and industrial end-use members across Alabama and the Florida panhandle. As a cooperative, PowerSouth is not-for-profit and any revenues beyond operating costs are reinvested into infrastructure and returned to members.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels5 records

Core offering

PowerSouth Energy Cooperative generates and transmits wholesale electricity to its 22 distribution member systems (18 electric cooperatives and 4 municipal electric systems) across Alabama and Northwest Florida, operating a diversified portfolio of more than 2,300 MW of owned generation including natural gas, hydroelectric, purchased nuclear, and solar, supported by over 2,300 miles of transmission lines and 300+ substations. As a not-for-profit cooperative, it reinvests revenues into infrastructure and provides economic development funding programs to its member communities.

Product overview

PowerSouth Energy Cooperative is a generation and transmission (G&T) electric cooperative providing wholesale power to 18 electric cooperatives and four municipal electric systems across Alabama and Northwest Florida. The cooperative operates a diverse energy portfolio including natural gas generation (Lowman Energy Center, McIntosh Plant), hydroelectric power (Gantt & Point A Dams), purchased solar (80 MW Wing Solar Site), and nuclear power (125 MW from Plant Vogtle Units 3 & 4). Beyond core electricity generation and transmission services, PowerSouth offers economic development support including business development loan programs, USDA rural development loans, and local government energy efficiency loans. The cooperative also maintains recreational facilities at its hydroelectric lakes. The company generates over 2,300 megawatts of owned capacity and serves over one million people across 51 Alabama and 10 Northwest Florida counties.

Differentiator

Problem solved

Functional benefit

Products and services

• Wholesale Generation Services PowerSouth owns and operates over 2,300 MW of generating capacity, providing reliable power through natural gas, hydroelectric, purchased nuclear, and solar energy sources. This service is sold wholesale to PowerSouth's 22 distribution member systems (electric cooperatives and municipal electric systems) across Alabama and Northwest Florida.
• Wholesale Transmission Services PowerSouth maintains over 2,300 miles of transmission lines and more than 300 substations providing quick, efficient, and seamless high-voltage power delivery to distribution member systems across Alabama and Northwest Florida. Includes state-of-the-art mobile substations for upgrades or repairs without interrupting power flow, supported by a robust telecommunications and fiber network.
• Lowman Energy Center Natural gas power plant located in Leroy, Alabama, featuring advanced-class Mitsubishi M501JAC gas turbines. Winter capacity exceeds 1 GW after expansion. Burns & McDonnell provided engineering, procurement, and construction services. The plant achieves emissions compliance while delivering cost savings through use of existing infrastructure.
• McIntosh Plant Natural Gas Peaking Units Natural gas peaking units at the McIntosh Plant that can be deployed at any time of day or night regardless of weather conditions, providing critical reliability during extreme weather events such as cold spikes or heat waves.
• Gantt and Point A Hydroelectric Dams PowerSouth's oldest generating units, hydroelectric dams on the Conecuh River and Patsiliga Creek near Gantt, Alabama. Gantt Lake covers 2,747 acres at 196.7 feet mean sea level; Point A Lake covers 700 acres at 170 feet mean sea level. The dams generate renewable power from river flow.
• Wing Solar Power Purchase PowerSouth purchases 80 MW of utility-scale solar power from the Wing Solar Site in Alabama, supplementing owned generation capacity with renewable energy. Operations have been inconsistent but pricing is favorable.
• Plant Vogtle Nuclear Power Purchase PowerSouth purchases 125 MW of nuclear power from Vogtle Units 3 and 4 located in Georgia. The nuclear units provide around-the-clock, carbon-free energy representing part of the cooperative's approximately 13% renewable and zero-emission energy mix.
• Business Development Loan Program Zero-interest loan program providing up to $600,000 (not exceeding 50% of qualified project value) to support constructing speculative buildings, providing infrastructure for multi-tenant industrial parks, or refurbishing existing commercial and industrial facilities. The program supports PowerSouth's economic development mission in its member service territory.
• USDA Rural Economic Development Loan Program PowerSouth administers USDA Rural Economic Development zero-interest loans passed through from USDA to third-party borrowers for projects that create jobs or provide infrastructure in rural areas within PowerSouth's service territory.
• Local Government Energy Loan Program Zero-interest energy efficiency loan program for local governments and Boards of Education in communities under 20,000 population, administered in partnership with the Alabama Department of Economic and Community Affairs (ADECA). Loan terms up to 10 years; maximum loans of $350,000 for local and county governments and up to $500,000 per school system.
• PowerSouth Energy Revolving Loan Fund (RLF) Revolving loan program offering loans at a maximum rate of prime rate as published in the Wall Street Journal. Loan terms extend up to 10 years for building/real estate, 5-7 years for equipment, and 1-3 years for working capital. Used to support cooperative members and community projects.
• Lake Recreation Facilities PowerSouth maintains seven recreation sites on Gantt and Point A Lakes including boat launches, fishing piers, picnic areas, and the Point A Park Day Use Facility, the latter managed in partnership with the Covington County Commission. Public amenities at PowerSouth's hydroelectric reservoirs.

Quantifiable outcome

• Over 1GW combined-cycle and simple-cycle natural gas capacity added or planned between 2023-2029, replacing coal and serving 694,000+ homes
• +3 more outcomes

Named customers12 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Five partnerships are on record, tiered core and minor.

• Mitsubishi Power AmericascoreTechnology or Integration · 3 June 2026Mitsubishi Power Americas is supplying its M501JAC advanced-class gas turbine as the second unit at PowerSouth's Lowman Energy Center expansion in Leroy, Alabama. The new turbine will increase the plant's winter capacity from 696MW to over 1GW, powering approximately 694,000 homes. The expansion leverages existing infrastructure to improve efficiency and emissions compliance.
• Burns & McDonnellcoreImplementation/ SI/ Consulting Partner · 3 June 2026Burns & McDonnell is providing engineering, procurement, and construction (EPC) services for the Lowman Energy Center expansion project. Their role as EPC contractor ensures the new gas turbine installation meets technical specifications and project timelines.
• Vogtle Units 3 and 4 (Southern Company/Nuclear Development)coreTechnology or Integration · 1 January 2023PowerSouth purchases 125 MW of nuclear power from Vogtle Units 3 and 4, located in Georgia. The nuclear units have performed well and provide around-the-clock, carbon-free energy representing about 13% of PowerSouth's energy mix, though the price has been higher than anticipated.
• Southern Company Power PoolcoreStrategic or Co-development Partner · 1 January 2021PowerSouth joined the Southern Company Power Pool in 2021, transitioning from balancing and dispatching its own generation to collaborative pool operations. This improves system reliability and offers better access to energy markets, trading independence for enhanced reliability and more affordable service.
• Alabama Department of Economic and Community Affairs (ADECA)minorImplementation/ SI/ Consulting PartnerPowerSouth partners with ADECA to administer the Local Government Energy Loan Program, which provides zero-interest energy efficiency loans to local governments and Boards of Education in smaller communities. ADECA loans are capped at $350,000 for local and county governments and up to $500,000 per school system.

Scale indicators9 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• Associated Electric Cooperative: G&T electric cooperative providing wholesale power to six distribution cooperatives and three generations-and-transmission systems across Missouri, Iowa, Oklahoma, and Kansas. Comparable cooperative structure and member-owned model.
• Oglethorpe Power Corporation: The largest G&T cooperative in Georgia, providing wholesale power to 38 distribution EMCs with a mix of natural gas, nuclear (Plant Vogtle), and renewables. Directly comparable as a Southeast G&T cooperative with significant Vogtle nuclear exposure.
• East Kentucky Power Cooperative: A generation and transmission cooperative serving 16 distribution cooperatives across Kentucky with coal, natural gas, and purchased power. Similar member-owned G&T structure and fuel-diversity strategy.
• Seminole Electric Cooperative: A generation and transmission cooperative serving distribution members across Florida with a mix of natural gas, coal-to-gas transition, and purchased power. Directly comparable as a Florida-region G&T cooperative of similar scale.
• Basin Electric Power Cooperative: One of the largest G&T electric cooperatives in the U.S., serving member systems across multiple states with diversified generation including natural gas, coal, and renewables. Basin Electric is highly comparable to PowerSouth as a generation-and-transmission cooperative providing wholesale power to distribution members.
• Dairyland Power Cooperative: A touchstone energy G&T cooperative serving distribution members across Wisconsin, Minnesota, Iowa, and Illinois with diversified generation. Comparable cooperative ownership structure and wholesale power business model.
• PowerSouth-style G&T Cooperatives - Cooperative Power Corporation: A generation and transmission cooperative serving distribution members in the upper Midwest. Comparable cooperative structure, scale, and member-owned wholesale power business model.
• Hoosier Energy Rural Electric Cooperative: A generation and transmission cooperative providing wholesale power to member distribution systems in Indiana and Illinois with natural gas and renewable generation. Comparable cooperative model and similar customer base.

Broad incumbents

• Southern Company: The investor-owned utility whose Power Pool PowerSouth joined in 2021, and which operates Plant Vogtle providing PowerSouth's nuclear purchases. Comparable as a vertically integrated Southeast utility with overlapping generation mix and regional market dynamics.

Regional players

• North Carolina Electric Membership Corporation (NCEMC): A G&T cooperative serving 26 distribution EMCs across North Carolina with natural gas, nuclear, and renewable generation. Regional Southeast peer with highly comparable scale, mix, and customer model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/powersouth
• LinkedInlinkedin.com/company/powersouth-energy-cooperative

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about PowerSouth Energy