Acid Rain: The Southern Company (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Acid Rain: The Southern Company (A) Case Solution

Introduction

The Southern Company is located in Southern United States with headquarter located in Georgia, Atlanta and office business center in Birmingham and Alabama.It is a holding corporation of American Gas and Electric Utility.It is a second macro-scale utility holding organization in the United States. Throughout its subdivisions; the company serves 9,000,000 million electric and gas utility consumers in 6 states. Its branches are controlled and produce inexhaustible biomass wind and solar resources throughout the United States.It is one of the substantial energy providers in the United States with an employee power of approximately 31,300 employees.More than 500,000 stakeholders have invested in this organization.Three merchandise and well-known electric companies situated in Georgia named Alabama power, Georgia power and Mississippi power have served huge amount of wholesale electricity to the consumers in these three states.Thefirm also servers wholesale gas to the consumer in seven states. Its branches have established hydroelectric, coal, gas and nuclear creation resources which develop around 200 twh terawatt-hours of electricity(Reinhardt, 1992).

Situational Analysis

The executives of the Southern Company are reanalyzing the firm’s policy to be complied with the correction of acidic rain facilities in 1990 under the Act of Clean Air. Various mangers of the company are working on compliance policy, but the observation time is near to its end and an extensive commanding time is required to control the contaminating accouterments.

The company is facing problems inits power plan in Georgia, which is coal fire plant. The firm is required to operate this plant under the (ACC) Clean Air Act. This Coal Fire plant is a massive plant.Burning the coal in huge and large vessels produces a large amount of smoke which is passed through containers which get burnt by the heat from burning charcoal or carbon. Contiguous rotor coil transforms the steam and smoking energy to mechanical energy and then this mechanical energy is transformed into the electrical energy, in the engine driver of the plant.

The electrical plant of the coal fire, i.e. Bowen plant has achieved a high fixed cost but the variable cost is very low as compared to the fixed cost. All Utilities are used for the establishment of base load. Through the power of oil and gas fire plant;the demand for energy has increased to the highest level. The Bowen plant operates at an advanced scale which requires a heavy load of coal to be transferred from the southern east company of oil and gas via vehicles. The manufacturing plant operates huge amount of charcoal absorption which is used for the production of electricity. The company has decided to install a controlling system on contaminating accouterments and to develop surplus authorizations on sales to other organization and to reduce the huge amount of sulfur dioxide for the save cost of capital.

Options Analysis

Option 1: High Sulfur Dioxide Charcoal
Charcoal Cost (Per Ton)	$41.46
Charcoal Input Per Year	8,338,000
Release of Sulfur Dioxide (Per Year)	266,550
Investment	71,970,000
Cost From the Release of Sulfur Dioxide (Per Unit)	$ 270
Option 2: Low Sulfur Dioxide Charcoal
Charcoal Cost (Per Ton)	$ 41.46
Charcoal Input Per Year	8,338,000
Release of Sulfur Dioxide (Per Year)	266,550
Investment	22,100,000
Cost From the Release of Sulfur Dioxide (Per Unit)	$ 82.9

Recommendations

The company has decided to install a controlling system on contaminating accouterments and to develop surplus authorizations on sales to other organization and to reduce the huge amount of sulfur dioxide for the save cost of capital.

So, the conclusive recommendation of accommodating policy is to be made.

Conclusion

The executives of the Southern Company are reanalyzing the policy of the organization’s acidic rain facilities in order for it to be compliant with the Act of Clean Air. Various managers and executives of the company are working on conformance or compliance policy, but the observation time has nearly came to a commencement with a lot of functions yet to be carried out as an nearly extensive commanding time control is needed for the contaminating accouterments. The Bowen plant is operating at an advanced level to meet the high demands of oil and gas. The conclusive recommendation of accommodating policy is that the company should install a controlling system on its contamination accouterments and it must develop surplus authorizations on its sale to other organization. It should also reduce its sulfur dioxide amount to save cost of capital.............................

Acid Rain The Southern Company (A) Case Solution

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