- New Issuance: On Sept. 24, 2025, Georgia Power (a Southern Co. subsidiary) agreed to sell $1.5 billion of senior unsecured notes across three offerings [1] [2]. This includes a $250M “tap” of Series 2025B (4.85% due 3/15/2031), adding to the $500M already sold, as well as $750M of Series 2025D (4.00% due 10/1/2028) and $500M of Series 2025E (5.50% due 10/1/2055) [3] [4]. These securities are being issued under Georgia Power’s SEC shelf registration, with major banks (Barclays, Santander, Scotia, SMBC Nikko, Truist, US Bancorp) as underwriters [5] [6].
- Company Snapshot: Georgia Power generated about $12.2 billion in revenue over the last year and carried roughly $21.2 billion in total debt at mid-2025 [7] [8]. (It’s a regulated utility covering most of Georgia, wholly-owned by Southern Company [9].) The new notes add to earlier offerings: in March 2025 Georgia Power issued $1.6B in senior notes (floating and fixed-rate) [10], and in June 2025 another $600M 4.55% due 2030 [11]. Overall, utility debt levels have been rising as Georgia Power funds major projects (like Plant Vogtle’s nuclear units and customer growth).
- Use of Proceeds: According to the official SEC prospectus supplement, proceeds will first repay short-term commercial paper (about $601M outstanding as of Sept. 23, 2025) and then fund “other general corporate purposes, including the Company’s continuous construction program” [12]. In plain terms, Georgia Power will use the cash to retire short-term debt and finance its capital expenditures (such as ongoing plant construction and upgrades).
- Credit Ratings & Outlook: Credit agencies see Georgia Power’s debt as investment-grade. Moody’s Investors Service recently affirmed Georgia Power’s A3 senior unsecured rating and shifted its outlook to Stable (from Positive), even while downgrading parent Southern Co. to a Negative outlook [13] [14]. Moody’s noted that Georgia Power’s approved rate plan freezes retail base rates through 2028 and that its capital spending plans have grown, which tempers upside for the rating [15]. As Moody’s VP Jeff Cassella said of Southern Co.’s overall funding plan, the increased leverage is “prompted by…an elevated capital investment plan” [16]. In practice, Georgia Power’s cash flow remains strong – Moody’s reports its cash flow/pre-debt ratio around 18–22% (ex‑one-time items) [17] – so the Stable outlook reflects steady finances.
- Related Issuances: This deal follows a wave of utility debt offerings. Alabama Power (another Southern subsidiary) just sold $500M of 4.30% notes due 2031 to help fund its $622M purchase of a gas-fired plant [18]. Southern Power Co. (Southern’s wholesale arm) raised $1.1B in Sept. 2025 (two tranches of $550M at 4.25% due 2030 and 4.90% due 2035) [19]. Even distant peers like Puget Sound Energy (Washington) sold $500M of 5.598% bonds due 2055 in mid-Sept. 2025 [20]. These examples show broad investor demand for long-dated utility debt.
Deal Structure: Three New Bond Tranches
Georgia Power’s SEC filing (Form 8-K) details the three offerings [21]. The Series 2025B “tap” adds $250M at 4.85% interest (due Mar 15, 2031) to the tranche originally issued in March 2025, bringing that series to $750M in total [22]. The new Series 2025D consists of $750M of 4.00% notes due Oct 1, 2028, and Series 2025E is $500M of 5.50% notes due Oct 1, 2055 [23] [24]. All three are unsecured senior obligations, ranking pari passu with Georgia Power’s other bonds. The offerings were made via its shelf registration (No. 333-285111) for faster execution [25]. Underwriting banks include Barclays, Santander, Scotia Capital, SMBC Nikko, Truist and U.S. Bancorp acting as lead managers [26] [27].
Georgia Power itself has no common stock ticker – it is privately held by Southern Co. – but some of its debt trades publicly. For example, the Series 2017A 5.00% junior subordinated notes (due 2077) are listed on the NYSE under the symbol “GPJA” [28], which explains the ticker used in some market reports.
Why Issue Debt Now: Use of Funds and Capital Needs
The primary use of the $1.5B proceeds is debt management and funding projects, not a dividend. The SEC prospectus states the company will use the money to repay about $601M of short-term commercial paper and then for “general corporate purposes, including the Company’s continuous construction program” [29]. In practice, this means Georgia Power is refinancing short-term borrowings and raising cash for its capital expenditure plans. These plans include the completion of Plant Vogtle Units 3 and 4, grid upgrades and meeting new demand, all of which require billions in investment. (Notably, Georgia Power has already charged its income $1.3B pre-tax in 2021-24 for Vogtle cost overruns [30].) By locking in long-term financing now, the utility ensures funding for these projects and smooths out its cash flows.
The timing also reflects market conditions. Interest rates have edged down slightly from last year’s peaks, making fixed-rate debt attractive. A 4.00% coupon on a 3-year note (Series 2025D) is historically low for a utility, and 4.85% for a 10-year is reasonable given current Treasury yields. The 50-year portion (5.50% to 2055) locks in funds at a fixed cost for decades, which utilities often do to match long-lived assets with long-term debt.
Credit Ratings and Analyst Takeaways
Georgia Power’s credit profile remains solid. Moody’s letter of Sept. 2025 affirmed its A3 Issuer Rating (Stable outlook) [31]. In contrast, Moody’s flagged the parent Southern Co.’s outlook as Negative (from Stable) due to Southern’s huge capital plan [32]. In Moody’s view, Georgia Power’s Stable outlook reflects the fact that its capital investments and rate freeze make an upgrade less likely in the near term [33]. Specifically, Georgia’s allowed rates have been frozen through 2028 under a new settlement (meaning base revenues won’t rise), even as the utility plans for significant new load and spending. Moody’s analysts pointed out that these factors mean Georgia Power is unlikely to reach the higher metrics needed for an A2 rating [34].
On the other hand, Georgia Power’s cash flows are still healthy by industry standards. Moody’s data show Georgia’s “cash flow from operations before working capital” to debt ratio was about 18.4% for the year ended June 2025 (around 22% excluding hurricane costs) [35] – comfortably above typical utility targets. In short, analysts see Georgia Power’s debt levels as manageable given its large rate base and regulated structure. As Moody’s senior credit officer Jeff Cassella summarized about Southern Co.: “Southern’s negative outlook is prompted by financial metrics that may not be sustained…due to an increase in leverage” for its ambitious capex plan [36]. Georgia Power’s own outlook is stable because its metrics aren’t under acute stress – but also aren’t projected to improve dramatically soon.
(Fitch Ratings, which also covers Georgia Power, assigned an ‘A’ rating to this issue [37]; Fitch’s corporate IDR for Georgia Power is typically in the mid-to-high A range. S&P Global similarly rates Georgia Power around A/Stable. These high-grade ratings help the company sell debt at relatively low coupons.)
Comparison: Other Utility Bond Deals
Georgia Power’s bond sale is part of a wider trend of utilities tapping debt markets. Other Southern Company subsidiaries have raised capital recently, and peers elsewhere have followed suit:
- Alabama Power (Southern Co. unit) – In early Sept. 2025, it sold $500M of 4.30% senior notes due 2031 [38]. The proceeds are earmarked to help finance Alabama Power’s $622M purchase of the Tenaska-owned Lindsay Hill gas plant [39]. This acquisition was approved by regulators (subject to final review), showing Southern’s strategy of using M&A alongside debt financing.
- Southern Power Company – On Sept. 17, 2025, Southern Power issued $550M 4.25% notes (due 2030) and $550M 4.90% notes (due 2035) [40]. Southern Power is the holding company for many wholesale generation assets, and these new notes came at yields only slightly above Georgia Power’s, reflecting similar credit quality.
- Puget Sound Energy (Washington) – Even outside the South, utilities are raising debt. Puget Sound sold $500M of 5.598% senior notes due 2055 in mid-Sept. 2025 [41]. The 30-year tenor and mid-5% coupon are comparable to Georgia Power’s 50-year deal, indicating a national appetite for long-term utility bonds.
These examples show investors continue to demand utility debt, likely drawn by the sector’s stable cash flows and the relatively attractive yields on offer. Compared to corporate borrowers, a sub‑4% coupon on a 3–5 year utility note (like Georgia’s 4.00% 2028 notes) is very competitive. Utility companies have been able to refinance or lock in funding for big projects (renewables, nuclear, grid upgrades) at manageable costs.
Bottom Line: Funding the Future of Georgia’s Grid
For the public and investors, Georgia Power’s $1.5B bond sale is a technical matter of corporate finance – but it also signals how the company will fund its future. By accessing capital markets, Georgia Power ensures it can meet ongoing obligations and invest in infrastructure without immediate rate hikes. Moody’s and other analysts have noted the importance of both debt and equity funding (Southern plans ~$9B in equity) to keep its finances balanced [42]. As a result, consumers may not see abrupt rate changes, while investors have a new, highly rated utility security.
In short, Georgia Power’s aggressive debt issuance reflects heavy capital needs for things like nuclear plants and new customers, financed at today’s yields while credit conditions are still favorable [43] [44]. The deal’s success – along with Alabama and Southern Power’s offerings – suggests that the utility bond market remains strong even as interest rates hover near cyclical highs.
Sources: SEC filings and press releases, financial news and legal advisers reports on Georgia Power’s debt issuances [45] [46] [47] [48] [49] [50]. Analyst commentary is drawn from Moody’s Ratings statements and industry reports [51] [52] [53].
References
1. www.sec.gov, 2. www.investing.com, 3. www.sec.gov, 4. www.investing.com, 5. www.investing.com, 6. www.sec.gov, 7. www.investing.com, 8. www.investing.com, 9. www.streetinsider.com, 10. www.investing.com, 11. www.investing.com, 12. www.streetinsider.com, 13. www.investing.com, 14. www.investing.com, 15. www.investing.com, 16. www.investing.com, 17. www.investing.com, 18. www.hunton.com, 19. www.hunton.com, 20. www.hunton.com, 21. www.sec.gov, 22. www.sec.gov, 23. www.sec.gov, 24. www.investing.com, 25. www.sec.gov, 26. www.investing.com, 27. www.sec.gov, 28. www.investing.com, 29. www.streetinsider.com, 30. www.streetinsider.com, 31. www.investing.com, 32. www.investing.com, 33. www.investing.com, 34. www.investing.com, 35. www.investing.com, 36. www.investing.com, 37. www.investing.com, 38. www.hunton.com, 39. www.hunton.com, 40. www.hunton.com, 41. www.hunton.com, 42. www.investing.com, 43. www.streetinsider.com, 44. www.investing.com, 45. www.sec.gov, 46. www.streetinsider.com, 47. www.hunton.com, 48. www.hunton.com, 49. www.hunton.com, 50. www.investing.com, 51. www.investing.com, 52. www.investing.com, 53. www.investing.com
