Portland, Maine (Platts)--25Apr2012/518 pm EDT/2118 GMT

Southern Company's natural gas-fired combined-cycle power plants ran at a 70% capacity factor in the first quarter, reflecting the Atlanta-based utility company's shift toward natural gas.

In past years, the combined-cycle plants had roughly 30% capacity factors, Southern Chairman, President and CEO Thomas Fanning said Wednesday during a conference call with analysts. Southern expects to burn about 600 Bcf this year, up from about 430 Bcf last year and about 200 Bcf in 2007, Fanning said.

Southern expects its power plants to burn about 45 million tons of coal this year, down from about 56 million tons last year and about 80 million tons in 2007, Fanning said. In response, Southern is renegotiating some of its coal contracts and seeking additional coal storage, he said.

Southern expects its subsidiaries to get about 47% of their energy from natural gas and 35% from coal this year, Fanning said.

Looking ahead, Southern's four regulated utilities -- Georgia Power, Gulf Power, Alabama Power and Mississippi Power -- probably have enough generation for the rest of the decade, although some natural gas-fired generation could be added in Georgia, Fanning said.

Additional nuclear investments could offer an opportunity for growth, Fanning said. Georgia Power and partners are building the 2,200-MW Vogtle units 3 and 4. More nuclear capacity could be needed by the mid 2020s, Fanning said, noting that spending on the additional capacity could start later this decade.

Also, additional spending will like be needed to meet emerging environmental regulations, Fanning said.

"It seems like there's always something out there [to invest in]," Fanning said.

--Ethan Howland, newsdesk@platts.com