Southern power continues to find opportunities to implement its strategy of creating value through its numerous transactions such as asset acquisition and selling, establishment of novel power plants, entrance into Power Plants Associations mostly with other investor-owned utilities, municipalities, independent power producers, and electric cooperatives (Google Finance, 2015, p. 1). In Southern Co’s operations, FERC plays the crucial role of providing the operation regulations instead of following traditionally defined state regulations like any other traditional operating company. Though operating as one large company, the Southern Company operates under several leveraged leases such as Southern LINC Wireless that offers digital wireless communications for Southern Co.’s uses.
For purposes of this paper, the evaluation Southern Company is limited to company’s proactive approach to preparing for disaster recovery. For a long time, Hurricane Katrina has been known for its numerous complex challenges such as 100% loss of power for customers, 65% of power delivery system damages, 97% loss of power generation capacity, approximately 9,000 damaged or damaged power poles, transformer damages, 100% dilapidated corporate offices, and more than half of the residents suffering noteworthy damages for their homes (Ward, 2006, pp. 7-13). Other challenges experienced during the Katrina hurricane are communication loss and devastation infrastructure. Through its investment and prioritization of knowledge base management, Southern Co. effectively planned on eliminating the challenges associated with the Katrina Hurricane through approaches such as a reduction in the time duration required to restore power to its customers, provision of family services, assisting employees with personal losses, and daily provision of thousands of fuel gallons daily.