8-K: Georgia Power Secures 9.8GW Capacity, $16.3B Investment

Georgia Power Company reached a settlement agreement with the Georgia PSC Staff to certify 9,885 megawatts of new capacity and $16.3 billion in capital investment, pending final PSC approval.

Summary

• Georgia Power Company and the Georgia Public Service Commission (PSC) Public Interest Advocacy Staff reached a settlement agreement on December 9, 2025.
• The agreement, if approved, resolves the Company's application for certification of capacity from its 2029-2031 All-Source Request for Proposals and supplemental resources for 2028-2031.
• All 9,885 megawatts of requested resources would be approved and certified at their individual project costs.
• This includes approximately $16.3 billion in projected capital investment for Company-owned projects, excluding allowance for funds used during construction.
• Approximately $14 billion of this capital investment is expected to be incurred between 2026 and 2029.
• Company-owned projects will be subject to construction monitoring by the Georgia PSC.
• Georgia Power committed to filing its next base rate case to ensure incremental revenue from large load customers results in a downward pressure of at least $556 million per year for 2029, 2030, and 2031.
• This downward pressure is equivalent to $8.50 per month (or approximately $102 per year) for a typical residential customer using 1,000 kilowatt-hours per month.
• The settlement requires approval by the Georgia PSC, which is scheduled to vote on December 19, 2025.

Sentiment

Score: 7

Explanation: The settlement is largely positive as it secures significant capacity and capital investment crucial for future operations and growth. However, the commitment to reduce future revenue from large load customers and the ongoing regulatory oversight introduce some negative aspects and uncertainties. The overall sentiment is cautiously positive, pending final PSC approval.

Positives

• Certification of all 9,885 megawatts of requested resources, ensuring future capacity.
• Approval of approximately $16.3 billion in projected capital investment for Company-owned projects, supporting long-term growth and infrastructure.
• Resolution of the All-Source Certification Proceeding, providing clarity on future resource planning.

Negatives

• Commitment to ensure downward pressure on incremental revenue from large load customers of at least $556 million per year for 2029-2031, impacting potential revenue growth.
• Company-owned projects will require construction monitoring by the Georgia PSC, potentially adding oversight burden.
• The settlement is subject to Georgia PSC approval, and terms may change materially.

Risks

• State and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to return on equity, equity ratios, additional generating capacity and transmission facilities, and fuel and other cost recovery mechanisms.
• Impact of recent and future federal and state regulatory changes, including tax, environmental, and other laws and regulations, as well as changes in application of existing laws, regulations and guidance.
• Extent and timing of costs and legal requirements related to coal combustion residuals.
• Current and future litigation or regulatory investigations, proceedings or inquiries.
• Effects, extent and timing of the entry of additional competition in the markets, including from alternative energy sources.
• Variations in demand for electricity.
• Available sources and costs of natural gas and other fuels and commodities.
• Ability to control costs and avoid cost and schedule overruns during development, construction and operation of facilities or other projects.
• Legal proceedings and regulatory approvals and actions related to past, ongoing and proposed construction projects.
• Ability to construct facilities in accordance with permits and licenses, satisfy environmental performance standards, meet tax credit requirements, and integrate facilities into the Southern Company system.
• Investment performance of employee and retiree benefit plans and nuclear decommissioning trust funds.
• Advances in technology, including lowto no-carbon energy, battery energy storage, and negative carbon concepts.
• Ability to successfully operate generation, transmission and distribution facilities and perform necessary corporate functions.
• Inherent risks involved in operating nuclear generating facilities.
• Ability of counterparties to make payments and perform as required.
• Direct or indirect effect on business from cyber intrusion or physical attack.
• Global and U.S. economic conditions, including impacts from geopolitical conflicts, recession, inflation, changes in trade policies, interest rate fluctuations, and financial market conditions.
• Access to capital markets and other financing sources.
• Changes in credit ratings.
• Ability to obtain additional generating capacity (or sell excess) at competitive prices.
• Catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes, droughts, pandemic health events, political unrest, wars, or similar occurrences.
• Direct or indirect effects on business from incidents affecting the U.S. electric grid or operation of generating resources.
• Effect of accounting pronouncements issued periodically by standard-setting bodies.

Future Outlook

The settlement agreement, if approved by the Georgia PSC, provides a clear path for Georgia Power to certify 9,885 megawatts of new capacity and proceed with approximately $16.3 billion in capital investments, primarily between 2026 and 2029. However, the company anticipates a downward pressure of at least $556 million per year on incremental revenue from large load customers for 2029-2031 as part of the agreement. The ultimate outcome remains subject to the Georgia PSC's final vote on December 19, 2025.

Management Comments

• The Southern Company and Georgia Power caution that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided.
• The Southern Company and Georgia Power expressly disclaim any obligation to update any forward-looking information.

Industry Context

This announcement reflects the ongoing challenges and regulatory processes faced by utility companies in the U.S. to secure future energy capacity and manage infrastructure investments. The approval of significant new generation and transmission resources, coupled with regulatory oversight and rate case commitments, is typical for regulated utilities balancing service reliability, environmental goals, and customer affordability. The substantial capital investment aligns with broader industry trends of modernizing grids and transitioning energy portfolios.

Stakeholder Impact

• Shareholders: Potential for long-term stability and growth due to secured capacity and capital investment, but also potential for reduced future revenue from large load customers. Regulatory approval and execution risks remain.
• Customers (Residential): Expected to see a downward pressure on rates, equivalent to approximately $8.50 per month or $102 per year for typical residential customers, starting in 2029.
• Customers (Large Load): Incremental revenue from these customers will face downward pressure of at least $556 million per year for 2029-2031.
• Employees: Continued employment and potential for new jobs related to the $16.3 billion in capital projects.
• Regulators (Georgia PSC): Will be involved in construction monitoring and the final approval process, ensuring public interest is met.

Next Steps

• Georgia Public Service Commission (PSC) is scheduled to vote on December 19, 2025, to resolve all matters in the All-Source Certification Proceeding, including the Settlement Agreement.
• Georgia Power Company will file its next base rate case in a manner that ensures the incremental revenue from large load customers has downward pressure of at least $556 million per year for 2029, 2030, and 2031.
• Company-owned projects will require construction monitoring by the Georgia PSC.

Key Dates

Recommendation

The settlement provides crucial clarity and approval for Georgia Power's future capacity needs and significant capital investments, which are positive for long-term stability. However, the commitment to reduce future incremental revenue from large load customers and the inherent regulatory risks associated with utility operations, especially pending final PSC approval, suggest a 'hold' position. Investors should monitor the PSC vote and the execution of the capital projects, as well as the impact of the revenue concessions. The long-term outlook is stable, but immediate catalysts for significant upside are balanced by the revenue pressure.

Keywords

Georgia Power, Southern Company, SEC filing, 8-K, utility, electricity, capacity certification, capital investment, rate case, regulatory settlement, Georgia Public Service Commission, power generation, energy infrastructure, junior subordinated notes, corporate units