Georgia Power Company 5% JR SUB NT 77

What they do

Georgia Power generates, transmits, and distributes electricity to retail customers in Georgia, with additional wholesale sales to affiliates and non-affiliates. The company is one of the electric operating companies within Southern Company, which serves 9 million customers across the Southeast. Its revenue mix includes retail electric sales, wholesale electric sales, and other electric revenue such as alternative energy and other products and services.

Revenue drivers

• Retail electric revenue — Revenue from electricity sales to residential, commercial, and industrial customers in Georgia, reported as a primary revenue line for the company.
• Wholesale electric revenue — Revenue from electricity sales to affiliates and non-affiliated wholesale customers, separately reported in the company's revenue disaggregation.
• Other electric revenue — Includes alternative energy and other product and service revenues, reported alongside retail and wholesale electric revenue.

Recent performance

Southern Company, the parent of Georgia Power, reported second-quarter 2026 earnings of $1.2 billion, or $1.03 per share, compared with $0.9 billion, or $0.80 per share, in the second quarter of 2025. For the six months ended June 30, 2026, Southern Company reported earnings of $2.5 billion, or $2.24 per share, compared with $2.2 billion, or $2.01 per share, for the same period in 2025. Excluding certain items, Southern Company earned $1.3 billion, or $1.13 per share, in the second quarter of 2026, compared with $1.0 billion, or $0.92 per share, in the second quarter of 2025. Second-quarter 2026 operating revenues were $6.98 billion, compared with $6.97 billion in the second quarter of 2025, an increase of 0.1%. For the six months ended June 30, 2026, operating revenues were $15.4 billion, compared with $14.7 billion for the corresponding period in 2025, an increase of 4.2%. Georgia Power-specific financial results were not separately disclosed in the provided excerpt of the earnings release.

Strategy

Southern Company management stated that it is investing responsibly and planning for the long term to serve new and existing customers while keeping reliability and rate stability at the center of its work. The company cited extraordinary economic development momentum and demand for power across the Southeast as creating meaningful opportunities. Management's stated approach is designed to protect customers today, create lasting value for the communities it serves, and ensure that growth benefits everyone. The company continues to invest in state-regulated utilities, as noted in the adjusted earnings drivers for the second quarter of 2026.

Risks

• Regulatory risk — As a regulated utility, Georgia Power's rates and returns are subject to approval by state regulators, which can affect revenue and profitability.
• Interest rate and financing risk — Higher interest expense was cited as a partial offset to earnings drivers in the second quarter of 2026, reflecting sensitivity to borrowing costs.
• Construction and capital project risk — Southern Company recognized estimated losses on plants under construction and on Nicor Gas capital investments in the periods presented, indicating risk of cost overruns or project impairments.
• Customer demand and economic risk — Revenue depends on customer usage and growth, which can be affected by economic conditions in Georgia and the Southeast.

Outlook

Management stated that extraordinary economic development momentum and demand for power continue to create meaningful opportunities for customers and communities. The company is planning for the long term to serve new and existing customers while prioritizing reliability and rate stability. Southern Company's second-quarter earnings slides with supplemental financial information are available, and management hosted a financial analyst call on July 30, 2026 to discuss earnings and provide a general business update.