# Georgia Power Company Series 2017A 5.00% Junior Subordinated Notes due October 1, 2077

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Georgia Power Company Series 2017A 5.00% Junior Subordinated Notes due October 1, 2077).

## Overview

Georgia Power Co is a regulated electric utility subsidiary of Southern Company serving customers across Georgia, United States. Its business is centered on generating, purchasing, transmitting, distributing, and selling electricity through an integrated power system that includes nuclear, fossil, renewable, storage, and transmission assets.

## Products & services

• Regulated retail electricity service
• Electric generation from nuclear and thermal assets
• Renewable generation and battery storage
• Transmission and distribution services
• Fuel and purchased-power supply

- **Retail electricity** (75%) — Electricity sold to residential, commercial, industrial, and other Georgia customers.
- **Generation** (12%) — Power produced from nuclear, natural gas, coal, renewable, and other generating assets.
- **Transmission and distribution** (8%) — Regulated delivery infrastructure connecting generation resources with end users.
- **Purchased power** (3%) — Electricity procured from affiliated and non-affiliated generators to meet system demand.
- **Fuel cost recovery** (2%) — Customer billings that recover eligible fuel and purchased-power costs.

- Regulated retail electricity service
- Nuclear and thermal electricity generation
- Renewable generation and battery storage
- Transmission and distribution services
- Fuel and purchased-power supply

## Customers

Georgia Power serves regulated retail customers throughout Georgia, including households, businesses, government entities, and energy-intensive industrial users. Large-load contracts support data centers and other high-demand customers through minimum bills, contract-duration provisions, termination payments, financial security, and, in some cases, customer contributions to dedicated construction. Customers purchase electricity and grid access for reliable service, while regulated rate mechanisms allow eligible fuel and storm-restoration costs to be recovered through customer bills.

- **Residential customers** (primary) — Households purchase regulated electricity for lighting, heating, cooling, and appliances.
- **Commercial customers** (primary) — Businesses and institutions buy power to operate buildings, stores, offices, and services.
- **Industrial customers** (primary) — Manufacturing and process businesses require large, reliable electricity supplies.
- **Large-load customers** (secondary) — Data centers and other major facilities contract for incremental capacity and dedicated assets.

- Residential customers buy dependable everyday electricity service
- Commercial customers use power for offices, retail, and facilities
- Industrial customers require reliable high-volume electricity
- Large-load customers support data-center and major facility demand
- Government and institutional users require regulated grid access

## Geography

Georgia Power operates its regulated electricity business within the state of Georgia in the United States. The company’s geographic concentration creates close alignment between its generation fleet, transmission and distribution network, customer base, and Georgia Public Service Commission oversight. No country-level or regional revenue percentages were disclosed in the provided excerpts.

- Operations are concentrated in Georgia, United States
- Georgia PSC regulates retail rates and cost recovery
- Generation, transmission, and distribution assets serve one state
- Large-load growth is tied to Georgia customer development
- Single-state exposure increases regulatory concentration

## Strategy

Georgia Power is expanding and modernizing the generation, battery storage, transmission, and distribution infrastructure needed to serve changing electricity demand. Its strategy combines system reliability, large-load customer growth, and recovery of prudent fuel, storm, and construction costs through regulated mechanisms. The company also uses long-term financing, including a Department of Energy loan-guarantee facility, to support eligible infrastructure investments.

- **Generation and grid expansion** (medium-term) — Additional capacity is needed to serve rising electricity demand and maintain reliability.
- **Large-load customer development** (medium-term) — Minimum bills and security provisions help align incremental revenues with service costs.
- **Regulatory cost recovery** (short-term) — Recovery mechanisms support cash flows for fuel, storm restoration, and major capital projects.
- **Financing infrastructure investment** (medium-term) — Long-term funding supports capital-intensive generation, storage, and transmission construction.

- Expand generation and transmission capacity for load growth
- Develop battery storage and renewable generation resources
- Support large-load contracts with customer protections
- Maintain reliability across the integrated electric system
- Pursue regulatory recovery of eligible project costs

## Risks

Georgia Power’s regulated model depends on continued approval of rates and recovery mechanisms by the Georgia Public Service Commission, while large construction programs create cost, financing, and execution exposure. The company also faces operational and environmental risks from generation availability, fuel and purchased-power markets, severe storms, coal-combustion residuals obligations, and changing energy policy. Concentration in Georgia means adverse state regulation, demand changes, or local economic conditions could materially affect the business.

- **Regulatory recovery risk** [high] — Revenue depends on approved retail rates and recovery of fuel, storm, and construction costs.
- **Construction and capital execution** [high] — Generation, transmission, and storage projects require large investments and timely completion.
- **Severe weather and storm restoration** [high] — Storm damage can disrupt service and create substantial restoration expenditures.
- **Coal-combustion residuals obligations** [medium] — Closure and monitoring requirements may increase asset-retirement obligations and costs.
- **Generation and market availability** [medium] — Outages, demand changes, and wholesale prices affect purchased-power needs and system costs.

- Regulators may delay or limit recovery of capital costs
- Large projects face construction delays and cost overruns
- Storms can damage assets and increase restoration costs
- Fuel and purchased-power needs depend on market conditions
- Coal-ash compliance can increase environmental liabilities
- Generation outages can reduce reliability and raise costs

## Accounting

Georgia Power applies U.S. GAAP with regulated-utility accounting, so approved recovery or refund mechanisms can create regulatory assets and liabilities that affect the timing of earnings and cash flows. Fuel and purchased-power costs are generally offset through fuel-cost recovery, while storm-restoration costs and coal-ash closure obligations depend on regulatory decisions, engineering estimates, compliance plans, and discounting assumptions. Depreciation and amortization also change as new plant enters service and as project lives or repowering plans are reassessed.

- **Regulatory accounting** — Regulatory assets and liabilities can shift reported earnings and cash flows across periods.
- **Fuel and purchased-power recovery** — Changes in fuel expense may have limited earnings impact when recovery is authorized.
- **Storm restoration costs** — Creates regulatory assets and affects future expense recognition.
- **Coal-combustion residuals obligations** — Revisions can materially affect asset-retirement obligations and earnings.
- **Depreciation and amortization** — Higher depreciable balances increase future operating expense.

- Regulatory assets defer approved costs for later customer recovery
- Fuel recovery can offset fuel and purchased-power expense
- Storm costs depend on approved recovery periods
- Coal-ash obligations require changing cost estimates
- Depreciation rises as new plant enters service
- Asset retirement obligations depend on closure assumptions

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*Last updated: 2026-09-24T11:18:20.371207+00:00*