Georgia Power issues first sustainability bond from a U.S. utility
Bond proceeds will be allocated to fund company's environmental, renewable, and social initiatives
ATLANTA, Feb. 26, 2021 /PRNewswire/ -- Georgia Power today announced its first sustainability bond, and the first sustainability bond for a domestic utility in the United States. Bond proceeds will be allocated to fund the company's environmental, renewable, and social initiatives. The 3.25% coupon represents the lowest 30-year coupon for a publicly-traded bond ever issued by any affiliate of Southern Company, Georgia Power's parent company, and the lower pricing directly benefits Georgia Power customers.
"The sustainability bond issued today is aligned with our ongoing commitment to building a clean and sustainable energy future for Georgia Power customers and the state," said Dan Tucker, executive vice president, chief financial officer, and treasurer for Georgia Power. "By allocating the proceeds of this bond to fund our social, environmental and renewable initiatives, the company is able to secure benefits for all customers that will last for up to 30 years by way of long-term, low-cost financing."
With net proceeds of approximately $742 million to be allocated to fund sustainable projects such as our spending with diverse and small business suppliers and our investments in renewable energy projects, the bond aligns with our ongoing commitments to the community and the continued growth of Georgia Power's solar portfolio, one of the largest voluntary renewable portfolios in the country.
Growing a Sustainable Future
Georgia Power's commitment to building a clean and sustainable energy future includes helping its customers and other industries reduce their emissions, increase their energy efficiency and minimize their environmental footprint by investing in programs, customer offerings and initiatives. The company continues to offer customers a full range of options to expand access to solar and renewable energy generation that reduce its environmental footprint as well as maintain a focus on resource conservation, efficient energy usage and other sustainability efforts.
Georgia Power already has one of the largest voluntary renewable portfolios in the country and expects to continue as a leader in solar energy production by growing its renewable generation by more than 72 percent by 2025 -- increasing the company's total renewable capacity to 22 percent of its already diverse portfolio.
The sustainability bond is consistent with international standards and the sustainable financing framework published by Southern Company earlier this year. Southern Company was one of the first U.S. utilities to set bold, industry-leading goals to reduce greenhouse gas emissions from its system and has set a goal of net zero greenhouse gas emissions by 2050.
About Georgia Power
Georgia Power is the largest electric subsidiary of Southern Company (NYSE: SO), America's premier energy company. Value, Reliability, Customer Service and Stewardship are the cornerstones of the company's promise to 2.6 million customers in all but four of Georgia's 159 counties. Committed to delivering clean, safe, reliable and affordable energy at rates below the national average, Georgia Power maintains a diverse, innovative generation mix that includes nuclear, coal and natural gas, as well as renewables such as solar, hydroelectric and wind. Georgia Power focuses on delivering world-class service to its customers every day and the company is recognized by J.D. Power as an industry leader in customer satisfaction. For more information, visit www.GeorgiaPower.com and connect with the company on Facebook (Facebook.com/GeorgiaPower), Twitter (Twitter.com/GeorgiaPower) and Instagram (Instagram.com/ga_power).
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning expected use of proceeds of and benefits from the sustainability bond, expected renewable generation growth and carbon emissions reduction goals. Georgia Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Georgia Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Georgia Power's Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the potential effects of the continued COVID-19 pandemic, including, but not limited to, extended disruptions to supply chains and further reduced labor availability and productivity, which could have a variety of adverse impacts, including a negative impact on the ability to develop, construct, and operate facilities; available sources and costs of natural gas and other fuels; the ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects; legal proceedings and regulatory approvals and actions related to construction projects; the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; advances in technology, including the pace and extent of development of low- to no-carbon energy technologies and negative carbon concepts; the ability of counterparties of Georgia Power to make payments as and when due and to perform as required; the direct or indirect effect on Georgia Power's business resulting from cyber intrusion or physical attack and the threat of physical attacks; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest or other similar occurrences; and the direct or indirect effects on Georgia Power's business resulting from incidents affecting the U.S. electric grid or operation of generating or storage resources. Georgia Power expressly disclaims any obligation to update any forward–looking information.
SOURCE Georgia Power
For further information: Media Contact: Media Relations, (404) 506-7676 or (800) 282-1696, www.georgiapower.com