Mizuho says fear over Southern Company Alabama risk overblown

Mizuho says Alabama bills SB 360 and HB 475 have raised concerns about the regulatory framework governing Southern Company (SO)’a Alabama Power. The firm views the legislative risk as overblown and unlikely to impair Alabama’s regulatory environment. After speaking with parties in Alabama, Mizuho expects the two bills to converge into a single bill with only six days left in the session. It expects the return on equity cap proposed in HB 475 to be excluded from the final bill. It keeps an Outperform rating on Southern Company.