Item 2. PROPERTIES

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Item 2. PROPERTIES

Electric

The traditional electric operating companies, Southern Power, and SEGCO, at December 31, 2021, owned and/or operated 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear generating stations, 13 combined cycle/cogeneration stations, 45 solar facilities, 15 wind facilities, one fuel cell facility, and four battery storage facilities. The amounts of capacity for each company at December 31, 2021 are shown in the table below. The traditional electric operating companies have certain jointly-owned generating stations. For these facilities, the nameplate capacity shown represents the Registrant's portion of total plant capacity, with ownership percentages provided if less than 100%. See "Jointly-Owned Facilities" and "Titles to Property" herein and Note 5 to the financial statements under "Joint Ownership Agreements" in Item 8 herein for additional information.

Generating Station/Ownership PercentageLocationNameplate Capacity
(KWs)
FOSSIL STEAM
GadsdenGadsden, AL120,000
BarryMobile, AL1,300,000
Greene County (60%)Demopolis, AL300,000
Gaston Unit 5Wilsonville, AL880,000
Miller (95.92%)Birmingham, AL2,532,288
Alabama Power Total5,132,288
BowenCartersville, GA3,160,000
Scherer (8.4% of Units 1 and 2 and 75% of Unit 3)Macon, GA750,924
Wansley (53.5%)Carrollton, GA925,550
YatesNewnan, GA700,000
Georgia Power Total5,536,474
Daniel (50%)Pascagoula, MS500,000
Greene County (40%)Demopolis, AL200,000
WatsonGulfport, MS750,000
Mississippi Power Total1,450,000
Gaston Units 1-4Wilsonville, AL
SEGCO Total1,000,000(a)
Total Fossil Steam13,118,762
NUCLEAR STEAM
FarleyDothan, AL
Alabama Power Total1,720,000
Hatch (50.1%)Baxley, GA899,612
Vogtle Units 1 and 2 (45.7%)Augusta, GA1,060,240
Georgia Power Total1,959,852
Total Nuclear Steam3,679,852

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Generating Station/Ownership PercentageLocationNameplate Capacity
COMBUSTION TURBINES
Greene CountyDemopolis, AL
Alabama Power Total720,000
BoulevardSavannah, GA19,700
McDonough Unit 3Atlanta, GA78,800
McIntosh Units 1 through 8Effingham County, GA640,000
McManusBrunswick, GA481,700
RobinsWarner Robins, GA158,400
Wansley (53.5%)Carrollton, GA26,322
WilsonAugusta, GA354,100
Georgia Power Total1,759,022
SweattMeridian, MS39,400
WatsonGulfport, MS39,360
Mississippi Power Total78,760
AddisonThomaston, GA668,800
Cleveland CountyCleveland County, NC720,000
DahlbergJackson County, GA756,000
RowanSalisbury, NC455,250
Southern Power Total2,600,050
Gaston (SEGCO)Wilsonville, AL19,680(a)
Total Combustion Turbines5,177,512
COGENERATION
Washington CountyWashington County, AL123,428
Lowndes CountyBurkeville, AL104,800
TheodoreTheodore, AL236,418
Alabama Power Total464,646
Chevron Cogenerating StationPascagoula, MS147,292(b)
Mississippi Power Total147,292
Total Cogeneration611,938
COMBINED CYCLE
BarryMobile, AL1,070,424
Central Alabama Generating StationAutauga County, AL885,000
Alabama Power Total1,955,424
McIntosh Units 10 and 11Effingham County, GA1,318,920
McDonough-Atkinson Units 4 through 6Atlanta, GA2,520,000
Georgia Power Total3,838,920
DanielPascagoula, MS1,070,424
RatcliffeKemper County, MS769,898
Mississippi Power Total1,840,322
FranklinSmiths, AL1,857,820
HarrisAutaugaville, AL1,318,920
RowanSalisbury, NC530,550
Wansley Units 6 and 7Carrollton, GA1,073,000
Southern Power Total4,780,290
Total Combined Cycle12,414,956

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Generating Station/Ownership PercentageLocationNameplate Capacity
HYDROELECTRIC FACILITIES
BankheadHolt, AL53,985
BouldinWetumpka, AL225,000
HarrisWedowee, AL132,000
HenryOhatchee, AL72,900
HoltHolt, AL46,944
JordanWetumpka, AL100,000
LayClanton, AL177,000
Lewis SmithJasper, AL157,500
Logan MartinVincent, AL135,000
MartinDadeville, AL182,000
MitchellVerbena, AL170,000
ThurlowTallassee, AL81,000
WeissLeesburg, AL87,750
YatesTallassee, AL47,000
Alabama Power Total1,668,079
Bartletts FerryColumbus, GA173,000
BurtonClayton, GA6,120
Flint RiverAlbany, GA5,400
Goat RockColumbus, GA38,600
Lloyd ShoalsJackson, GA14,400
Morgan FallsAtlanta, GA16,800
NacoocheeLakemont, GA4,800
North HighlandsColumbus, GA29,600
Oliver DamColumbus, GA60,000
Rocky Mountain (25.4%)Rome, GA229,362(c)
Sinclair DamMilledgeville, GA45,000
Tallulah FallsClayton, GA72,000
TerroraClayton, GA16,000
TugaloClayton, GA45,000
Wallace DamEatonton, GA321,300
YonahToccoa, GA22,500
Georgia Power Total1,099,882
Total Hydroelectric Facilities2,767,961

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Generating Station/Ownership PercentageLocationNameplate Capacity
SOLAR FACILITIES
Fort RuckerCalhoun County, AL10,560
Anniston Army DepotDale County, AL7,380
Alabama Power Total17,940
Fort BenningColumbus, GA30,005
Fort GordonAugusta, GA30,000
Fort StewartFort Stewart, GA30,000
Kings BayCamden County, GA30,161
Marine Corps Logistics BaseAlbany, GA31,161
Moody Air Force BaseValdosta, GA49,500
Robins Air Force BaseWarner Robins, GA128,000
8 Other PlantsVarious Georgia locations18,479
Georgia Power Total347,306
AdobeKern County, CA20,000
ApexNorth Las Vegas, NV20,000
Boulder IClark County, NV100,000
ButlerTaylor County, GA104,000
Butler Solar FarmTaylor County, GA22,000
CalipatriaImperial County, CA20,000
Campo VerdeImperial County, CA147,420
CimarronSpringer, NM30,640
Decatur CountyDecatur County, GA20,000
Decatur ParkwayDecatur County, GA84,000
Desert StatelineSan Bernadino County, CA299,990
East PecosPecos County, TX120,000
GarlandKern County, CA205,290
Gaskell West IKern County, CA20,000
GranvilleOxford, NC2,500
HenriettaKings County, CA102,000
Imperial ValleyImperial County, CA163,200
LamesaDawson County, TX102,000
Lost Hills BlackwellKern County, CA32,000
Macho SpringsLuna County, NM55,000
Morelos del SolKern County, CA15,000
North StarFresno County, CA61,600
PawpawTaylor County, GA30,480
RoserockPecos County, TX160,000
RutherfordRutherford County, NC74,800
SandhillsTaylor County, GA148,000
SpectrumClark County, NV30,240
TranquillityFresno County, CA205,300
Southern Power Total2,395,460(d)
Total Solar2,760,706

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Generating Station/Ownership PercentageLocationNameplate Capacity
WIND FACILITIES
Beech Ridge IIGreenbrier County, WV56,200
BethelCastro County, TX276,000
Cactus FlatsConcho County, TX148,350
Deuel HarvestDeuel County, SD301,100
Glass SandsMurray County, OK118,300
Grant PlainsGrant County, OK147,200
Grant WindGrant County, OK151,800
Kay WindKay County, OK299,000
PassadumkeagPenobscot County, ME42,900
ReadingOsage & Lyon Counties, KS200,100
Salt ForkDonley & Gray Counties TX174,000
SkookumchuckLewis & Thurston Counties, WA136,800
Tyler BluffCooke County, TX125,580
Wake WindCrosby & Floyd Counties, TX257,250
Wildhorse MountainPushmataha County, OK100,000
Southern Power Total2,534,580(e)
FUEL CELL FACILITY
Red Lion and BrooksideNew Castle and Newark, DE27,500(f)
Southern Power Total27,500
BATTERY STORAGE FACILITIES
GarlandKern County, CA73,000(g)(j)
MillikenOrange County, CA2,000(h)
TranquillityFresno County, CA32,000(i)(j)
WildcatPalm Springs, CA1,500(h)
Southern Power Total108,500
Total Alabama Power Generating Capacity11,678,377
Total Georgia Power Generating Capacity14,541,456
Total Mississippi Power Generating Capacity3,516,374
Total Southern Power Generating Capacity12,446,380
Total Generating Capacity43,202,267

(a)Alabama Power and Georgia Power each own 50% of the outstanding common stock of SEGCO, an operating public utility company. Alabama Power and Georgia Power are each entitled to one-half of SEGCO's capacity and energy. Alabama Power acts as SEGCO's agent in the operation of SEGCO's units and furnishes fuel to SEGCO for its units. See Note 7 to the financial statements under "SEGCO" in Item 8 herein for additional information.

(b)Generation is dedicated to a single industrial customer. See MANAGEMENT'S DISCUSSION AND ANALYSIS – FINANCIAL CONDITION AND LIQUIDITY – "Credit Rating Risk" in Item 7 herein.

(c)Operated by OPC.

(d)Southern Power owns a 67% equity interest in SP Solar (a limited partnership indirectly owning all of Southern Power's solar facilities, except the Roserock and Gaskell West I solar facilities). SP Solar is the 51% majority owner of Boulder I, Garland, Henrietta, Imperial Valley, Lost Hills Blackwell, North Star, and Tranquillity solar facilities; the 66% majority owner of Desert Stateline solar facility; and the sole owner of the remaining SP Solar solar facilities. Southern Power owns 100% of Roserock and is also the controlling partner in a tax equity partnership owning Gaskell West I. All of these entities are consolidated subsidiaries of Southern Power and the capacity shown in the table is 100% of the nameplate capacity for the respective facility.

(e)Southern Power is the controlling member in SP Wind (a tax equity entity owning eight of Southern Power's wind facilities). SP Wind is the 90.1% majority owner of Wake Wind and owns 100% of the remaining SP Wind facilities. Southern Power is the controlling partner in other tax equity partnerships owning Cactus Flats, Wildhorse Mountain, Reading, Skookumchuck, and Deuel Harvest (additionally for Skookumchuck and Deuel Harvest, a noncontrolling interest in Southern Power's remaining equity is owned by another partner). Southern Power owns 100% of Glass Sands and is also the controlling member in a non-tax equity partnership for Beech Ridge II. All of these entities are consolidated subsidiaries of Southern Power and the capacity shown in the table is 100% of the nameplate capacity for the respective facility.

(f)Southern Power has two noncontrolling interest partners that own approximately 10 MWs of the facility.

(g)The facility has a total nameplate capacity of 88 MWs, of which 73 MWs were placed in service during 2021 and the remaining MWs are expected to be placed in service later in the first quarter 2022.

(h)Southern Power has an equity method investment in the facility as the Class A member.

(i)The facility has a total nameplate capacity of 72 MWs, of which 32 MWs were placed in service during 2021 and the remaining MWs are expected to be placed in service later in the first quarter 2022.

(j)Southern Power is the controlling partner in a tax equity partnership owning the Garland and Tranquillity battery energy storage facilities. Additionally, the noncontrolling interests in Southern Power's remaining equity are owned by two other partners and the facilities are indirect subsidiaries of SP Solar.

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See MANAGEMENT'S DISCUSSION AND ANALYSIS – FUTURE EARNINGS POTENTIAL – "Environmental Matters" in Item 7 herein and Note 2 to the financial statements under "Georgia Power – Integrated Resource Plan" and "Mississippi Power – Integrated Resource Plan" in Item 8 herein for information regarding plans to retire or convert to natural gas certain coal-fired generating capacity included in the table above.

Except as discussed below under "Titles to Property," the principal plants and other important units of the traditional electric operating companies, Southern Power, and SEGCO are owned in fee by the respective companies. It is the opinion of management of each such company that its operating properties are adequately maintained and are substantially in good operating condition, and suitable for their intended purpose.

Mississippi Power owns a 79-mile length of 500-kilovolt transmission line which is leased to Entergy Gulf States Louisiana, LLC. The line extends from Plant Daniel to the Louisiana state line. Entergy Gulf States Louisiana, LLC is paying a use fee through 2024 covering all expenses and the amortization of the original cost. At December 31, 2021, the unamortized portion was approximately $5 million.

Mississippi Power owns a lignite mine that was intended to provide fuel for the Kemper IGCC. Liberty Fuels Company, LLC, the operator of the mine, has a legal obligation to perform mine reclamation and Mississippi Power has a contractual obligation to fund all reclamation activities. As a result of the abandonment of the Kemper IGCC, final mine reclamation began in 2018 and was substantially completed in 2020, with monitoring expected to continue through 2028. See Note 3 to the financial statements under "Other Matters – Mississippi Power – Kemper County Energy Facility" in Item 8 herein for additional information.

In conjunction with Southern Company's sale of Gulf Power, Mississippi Power and Gulf Power agreed to seek a restructuring of their 50% undivided ownership interests in the Plant Daniel coal units such that each of them would, after the restructuring, own 100% of a generating unit. In 2019, Gulf Power provided notice to Mississippi Power that Gulf Power will retire its share of the coal generating capacity of Plant Daniel on January 15, 2024. Mississippi Power has the option to purchase Gulf Power's ownership interest for $1 on January 15, 2024, provided that Mississippi Power exercises the option no later than 120 days prior to that date. See Note 3 to the financial statements under "Other Matters – Mississippi Power – Plant Daniel" in Item 8 herein for additional information.

In 2021, the maximum demand on the traditional electric operating companies, Southern Power Company, and SEGCO was 33,373,000 KWs and occurred on July 29, 2021. The all-time maximum demand of 38,777,000 KWs on the traditional electric operating companies (including Gulf Power), Southern Power Company, and SEGCO occurred on August 22, 2007. These amounts exclude demand served by capacity retained by MEAG Power, OPC, and SEPA. The reserve margin for the traditional electric operating companies, Southern Power Company, and SEGCO in 2021 was 36%.

Jointly-Owned Facilities

Alabama Power, Georgia Power, and Mississippi Power at December 31, 2021 had undivided interests in certain generating plants and other related facilities with non-affiliated parties. The percentages of ownership of the total plant or facility are as follows:

Percentage Ownership
Total CapacityAlabama PowerPower SouthGeorgia PowerMississippi PowerOPCMEAG PowerDaltonGulf Power
(MWs)
Plant Miller Units 1 and 21,32091.8%8.2%—%—%—%—%—%—%
Plant Hatch1,796——50.1—30.017.72.2—
Plant Vogtle Units 1 and 22,320——45.7—30.022.71.6—
Plant Scherer Units 1 and 21,636——8.4—60.030.21.4—
Plant Scherer Unit 3818——75.0————25.0
Plant Wansley1,779——53.5—30.015.11.4—
Rocky Mountain903——25.4—74.6———
Plant Daniel Units 1 and 21,000———50.0———50.0

Alabama Power, Georgia Power, and Mississippi Power have contracted to operate and maintain the respective units in which each has an interest (other than Rocky Mountain) as agent for the joint owners. Southern Nuclear operates and provides services to Alabama Power's and Georgia Power's nuclear plants.

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In addition, Georgia Power has commitments, in the form of capacity purchases totaling $42 million, regarding a portion of a 5% interest in the original cost of Plant Vogtle Units 1 and 2 owned by MEAG Power that are in effect until the later of the retirement of the plant or the latest stated maturity date of MEAG Power's bonds issued to finance such ownership interest. See Note 3 to the financial statements under "Commitments" in Item 8 herein for additional information.

Construction continues on Plant Vogtle Units 3 and 4, which are jointly owned by the Vogtle Owners (with each owner holding the same undivided ownership interest as shown in the table above with respect to Plant Vogtle Units 1 and 2). See Note 2 to the financial statements under "Georgia Power – Nuclear Construction" in Item 8 herein.

Titles to Property

The traditional electric operating companies', Southern Power's, and SEGCO's interests in the principal plants and other important units of the respective companies are owned in fee by such companies, subject to the following major encumbrances: (1) a leasehold interest granted by Mississippi Power's largest retail customer, Chevron Products Company (Chevron), at the Chevron refinery, where five combustion turbines owned by Mississippi Power are located and used for co-generation, as well as liens on these assets pursuant to the related co-generation agreements and (2) liens associated with Georgia Power's reimbursement obligations to the DOE under its loan guarantee, which are secured by a first priority lien on (a) Georgia Power's undivided ownership interest in Plant Vogtle Units 3 and 4 and (b) Georgia Power's rights and obligations under the principal contracts relating to Plant Vogtle Units 3 and 4. See Note 5 to the financial statements under "Assets Subject to Lien" and Note 8 to the financial statements under "Long-term Debt" in Item 8 herein for additional information. The traditional electric operating companies own the fee interests in certain of their principal plants as tenants in common. See "Jointly-Owned Facilities" herein and Note 5 to the financial statements under "Joint Ownership Agreements" in Item 8 herein for additional information. Properties such as electric transmission and distribution lines, steam heating mains, and gas pipelines are constructed principally on rights-of-way, which are maintained under franchise or are held by easement only. A substantial portion of lands submerged by reservoirs is held under flood right easements. In addition, certain of the renewable generating facilities occupy or use real property that is not owned, primarily through various leases, easements, rights-of-way, permits, or licenses from private landowners or governmental entities.

Natural Gas

Southern Company Gas considers its properties to be adequately maintained, substantially in good operating condition, and suitable for their intended purpose. The following sections provide the location and general character of the materially important properties that are used by the segments of Southern Company Gas. Substantially all of Nicor Gas' properties are subject to the lien of the indenture securing its first mortgage bonds. See Note 8 to the financial statements in Item 8 herein for additional information.

Distribution and Transmission Mains

Southern Company Gas' distribution systems transport natural gas from its pipeline suppliers to customers in its service areas. These systems consist primarily of distribution and transmission mains, compressor stations, peak shaving/storage plants, service lines, meters, and regulators. At December 31, 2021, Southern Company Gas' gas distribution operations segment owned 76,289 miles of underground distribution and transmission mains, which are located on easements or rights-of-way that generally provide for perpetual use.

Storage Assets

Gas Distribution Operations

Southern Company Gas owns and operates eight underground natural gas storage fields in Illinois with a total working capacity of approximately 150 Bcf, approximately 135 Bcf of which is usually cycled on an annual basis. This system is designed to meet about 50% of the estimated peak-day deliveries and approximately 40% of the normal winter deliveries in Illinois. This level of storage capability provides Nicor Gas with supply flexibility, improves the reliability of deliveries, and helps mitigate the risk associated with seasonal price movements.

Southern Company Gas also has four LNG plants located in Georgia and Tennessee with total LNG storage capacity of approximately 7.0 Bcf. In addition, Southern Company Gas owns two propane storage facilities in Virginia, each with storage capacity of approximately 0.3 Bcf. The LNG plants and propane storage facility are used by Southern Company Gas' gas distribution operations segment to supplement natural gas supply during peak usage periods.

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All Other

Southern Company Gas subsidiaries own two high-deliverability natural gas storage and hub facilities that are included in the all other segment. Golden Triangle Storage, Inc. operates a storage facility in Texas consisting of two salt dome caverns. Central Valley Gas Storage, LLC operates a depleted field storage facility in California.

Jointly-Owned Properties

Southern Company Gas' gas pipeline investments segment has a 50% undivided ownership interest in a 115-mile pipeline facility in northwest Georgia that was placed in service in 2017. Southern Company Gas also has an agreement to lease its 50% undivided ownership in the pipeline facility. See Note 5 to the financial statements under "Joint Ownership Agreements" in Item 8 herein for additional information.

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