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FINANCING | 12 Months Ended
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Dec. 31, 2021
Debt Disclosure [Abstract] |
FINANCING | FINANCING Long-term Debt Details of long-term debt at December 31, 2021 and 2020 are provided in the following table:
| At December 31, 2021 |  | Balance Outstanding at December 31,
| Maturity |  | Weighted Average Interest Rate |  | 2021 |  | 2020
|  |  |  |  | (in millions)
Southern Company |  |  |  |  |  |  |
Senior notes(a) | 2022-2052 |  | 3.62% |  | $ | 33,120 |  |  | $ | 30,850 |
Junior subordinated notes | 2024-2081 |  | 4.00% |  | 8,918 |  |  | 7,295 |
FFB loans(b) | 2022-2044 |  | 2.88% |  | 4,962 |  |  | 4,618 |
Pollution control revenue bonds(c) | 2022-2053 |  | 1.05% |  | 2,662 |  |  | 2,675 |
First mortgage bonds(d) | 2023-2060 |  | 3.53% |  | 2,100 |  |  | 1,900 |
Medium-term notes | 2022-2027 |  | 7.60% |  | 130 |  |  | 160 |
Other long-term debt | 2022-2026 |  | 0.79% |  | 270 |  |  | 370 |
Other revenue bonds |  |  |  |  | — |  |  | 320 |
Debt payable to affiliated trusts(e) |  |  |  |  | — |  |  | 206 |
Finance lease obligations(f) |  |  |  |  | 215 |  |  | 231 |
Unamortized fair value adjustment |  |  |  |  | 359 |  |  | 393 |
Unamortized debt premium (discount), net |  |  |  |  | (216) |  |  | (201) |
Unamortized debt issuance expenses |  |  |  |  | (243) |  |  | (237) |
Total long-term debt |  |  |  |  | 52,277 |  |  | 48,580 |
Less: Amount due within one year |  |  |  |  | 2,157 |  |  | 3,507 |
Total long-term debt excluding amount due within one year |  |  |  |  | $ | 50,120 |  |  | $ | 45,073 |
Alabama Power |  |  |  |  |  |  |
Senior notes | 2022-2052 |  | 3.89% |  | $ | 8,725 |  |  | $ | 7,625 |
Pollution control revenue bonds(c) | 2024-2038 |  | 0.55% |  | 995 |  |  | 1,060 |
Other long-term debt | 2026 |  | 1.24% |  | 45 |  |  | 45 |
Debt payable to affiliated trusts(e) |  |  |  |  | — |  |  | 206 |
Finance lease obligations(f) |  |  |  |  | 4 |  |  | 5 |
Unamortized debt premium (discount), net |  |  |  |  | (18) |  |  | (16) |
Unamortized debt issuance expenses |  |  |  |  | (64) |  |  | (56) |
Total long-term debt |  |  |  |  | 9,687 |  |  | 8,869 |
Less: Amount due within one year |  |  |  |  | 751 |  |  | 311 |
Total long-term debt excluding amount due within one year |  |  |  |  | $ | 8,936 |  |  | $ | 8,558 |
Georgia Power |  |  |  |  |  |  |
Senior notes | 2022-2051 |  | 3.61% |  | $ | 6,825 |  |  | $ | 6,400 |
Junior subordinated notes | 2077 |  | 5.00% |  | 270 |  |  | 270 |
FFB loans(b) | 2022-2044 |  | 2.88% |  | 4,962 |  |  | 4,618 |
Pollution control revenue bonds(c) | 2022-2053 |  | 1.33% |  | 1,591 |  |  | 1,538 |
Other long-term debt | 2022 |  | 0.70% |  | 125 |  |  | 125 |
Finance lease obligations(f) |  |  |  |  | 136 |  |  | 145 |
Unamortized debt premium (discount), net |  |  |  |  | (11) |  |  | (12) |
Unamortized debt issuance expenses |  |  |  |  | (114) |  |  | (114) |
Total long-term debt |  |  |  |  | 13,784 |  |  | 12,970 |
Less: Amount due within one year |  |  |  |  | 675 |  |  | 542 |
Total long-term debt excluding amount due within one year |  |  |  |  | $ | 13,109 |  |  | $ | 12,428 |
| At December 31, 2021 |  | Balance Outstanding at December 31,
| Maturity |  | Weighted Average Interest Rate |  | 2021 |  | 2020
|  |  |  |  | (in millions)
Mississippi Power |  |  |  |  |  |  |
Senior notes | 2024-2051 |  | 3.43% |  | $ | 1,425 |  |  | $ | 900 |
Pollution control revenue bonds(c) | 2025-2028 |  | 1.86% |  | 76 |  |  | 76 |
Other revenue bonds |  |  |  |  | — |  |  | 320 |
Other long-term debt |  |  |  |  | — |  |  | 100 |
Finance lease obligations(f) |  |  |  |  | 18 |  |  | 19 |
Unamortized debt premium (discount), net |  |  |  |  | 2 |  |  | 11 |
Unamortized debt issuance expenses |  |  |  |  | (10) |  |  | (7) |
Total long-term debt |  |  |  |  | 1,511 |  |  | 1,419 |
Less: Amount due within one year |  |  |  |  | 1 |  |  | 406 |
Total long-term debt excluding amount due within one year |  |  |  |  | $ | 1,510 |  |  | $ | 1,013 |
Southern Power |  |  |  |  |  |  |
Senior notes(a) | 2022-2046 |  | 3.74% |  | $ | 3,711 |  |  | $ | 3,714 |
Unamortized debt premium (discount), net |  |  |  |  | (6) |  |  | (6) |
Unamortized debt issuance expenses |  |  |  |  | (17) |  |  | (16) |
Total long-term debt |  |  |  |  | 3,688 |  |  | 3,692 |
Less: Amount due within one year |  |  |  |  | 679 |  |  | 299 |
Total long-term debt excluding amount due within one year |  |  |  |  | $ | 3,009 |  |  | $ | 3,393 |
Southern Company Gas |  |  |  |  |  |  |
Senior notes | 2023-2051 |  | 3.96% |  | $ | 4,348 |  |  | $ | 4,200 |
First mortgage bonds(d) | 2023-2060 |  | 3.53% |  | 2,100 |  |  | 1,900 |
Medium-term notes | 2022-2027 |  | 7.60% |  | 130 |  |  | 160 |
Unamortized fair value adjustment |  |  |  |  | 359 |  |  | 393 |
Unamortized debt premium (discount), net |  |  |  |  | (35) |  |  | (27) |
Total long-term debt |  |  |  |  | 6,902 |  |  | 6,626 |
Less: Amount due within one year |  |  |  |  | 47 |  |  | 333 |
Total long-term debt excluding amount due within one year |  |  |  |  | $ | 6,855 |  |  | $ | 6,293 |
(a)Includes a fair value gain (loss) of $5 million and $109 million at December 31, 2021 and 2020, respectively, related to Southern Power's foreign currency hedge on its €1.1 billion senior notes. (b)Secured by a first priority lien on (i) Georgia Power's undivided ownership interest in Plant Vogtle Units 3 and 4 (primarily the units under construction, the related real property, and any nuclear fuel loaded in the reactor core) and (ii) Georgia Power's rights and obligations under the principal contracts relating to Plant Vogtle Units 3 and 4. See "DOE Loan Guarantee Borrowings" herein for additional information. (c)Pollution control revenue bond obligations represent loans to the traditional electric operating companies from public authorities of funds derived from sales by such authorities of revenue bonds issued to finance pollution control and solid waste disposal facilities. In some cases, the pollution control revenue bond obligations represent obligations under installment sales agreements with respect to facilities constructed with the proceeds of revenue bonds issued by public authorities. The traditional electric operating companies are required to make payments sufficient for the authorities to meet principal and interest requirements of such bonds. Proceeds from certain issuances are restricted until qualifying expenditures are incurred. (d)Secured by substantially all of Nicor Gas' properties. (e)At December 31, 2020, Alabama Power had a wholly-owned trust subsidiary for the purpose of issuing preferred securities. The proceeds of the related equity investments and preferred security sales were loaned back to Alabama Power through the issuance of junior subordinated notes, which Alabama Power redeemed during 2021. The junior subordinated notes constituted substantially all of the assets of this trust. Alabama Power considered the mechanisms and obligations relating to the preferred securities issued for its benefit, taken together, constituted a full and unconditional guarantee by it of the trust's payment obligations with respect to these securities. See Note 1 under "Variable Interest Entities" for additional information on the accounting treatment for this trust and the related securities. (f)Secured by the underlying lease ROU asset. See Note 9 for additional information. Maturities of long-term debt for the next five years are as follows:
| Southern Company(a) | Alabama Power | Georgia Power(b) | Mississippi Power | Southern Power(c) | Southern Company Gas
| (in millions)
2022 | $ | 2,157 |  | $ | 751 |  | $ | 676 |  | $ | 1 |  | $ | 677 |  | $ | 46 |
2023 | 3,738 |  | 301 |  | 897 |  | 1 |  | 290 |  | 400 |
2024 | 2,280 |  | 22 |  | 498 |  | 201 |  | — |  | — |
2025 | 1,199 |  | 250 |  | 145 |  | 11 |  | 500 |  | 300 |
2026 | 3,723 |  | 45 |  | 441 |  | 1 |  | 964 |  | 530 |
(a)Amount for 2022 excludes junior subordinated notes totaling $1.725 billion at the parent entity that Southern Company has agreed to remarket in 2022 in connection with the related stock purchase contracts; however, the final maturity dates are in 2024 and 2027 (one half in each year). See "Equity Units" herein for additional information. Also see notes (b) and (c) below. (b)Amounts include principal amortization related to the FFB borrowings; however, the final maturity date is February 20, 2044. See "DOE Loan Guarantee Borrowings" herein for additional information. (c)Southern Power's 2022 maturity and $564 million of its 2026 maturities represent euro-denominated debt at the U.S. dollar denominated hedge settlement amount. DOE Loan Guarantee Borrowings Pursuant to the loan guarantee program established under Title XVII of the Energy Policy Act of 2005 (Title XVII Loan Guarantee Program), Georgia Power and the DOE entered into a loan guarantee agreement in 2014 and the Amended and Restated Loan Guarantee Agreement in March 2019. Under the Amended and Restated Loan Guarantee Agreement, the DOE agreed to guarantee the obligations of Georgia Power under the FFB Credit Facilities. Under the FFB Credit Facilities, Georgia Power was authorized to make term loan borrowings through the FFB in an amount up to approximately $5.130 billion, provided that total aggregate borrowings under the FFB Credit Facilities could not exceed 70% of (i) Eligible Project Costs minus (ii) approximately $1.492 billion (reflecting the amounts received by Georgia Power under the Guarantee Settlement Agreement less the related customer refunds). In June 2021 and December 2021, Georgia Power made the final borrowings under the FFB Credit Facilities in aggregate principal amounts of $371 million and $69 million, respectively, at an interest rate of 2.434% and 2.178%, respectively, through the final maturity date of February 20, 2044. No further borrowings are permitted under the FFB Credit Facilities. During 2021, Georgia Power made principal amortization payments of $96 million under the FFB Credit Facilities. At December 31, 2021 and 2020, Georgia Power had $5.0 billion and $4.6 billion of borrowings outstanding under the FFB Credit Facilities, respectively. All borrowings under the FFB Credit Facilities are full recourse to Georgia Power, and Georgia Power is obligated to reimburse the DOE for any payments the DOE is required to make to the FFB under its guarantee. Georgia Power's reimbursement obligations to the DOE are full recourse and secured by a first priority lien on (i) Georgia Power's undivided ownership interest in Plant Vogtle Units 3 and 4 (primarily the units under construction, the related real property, and any nuclear fuel loaded in the reactor core) and (ii) Georgia Power's rights and obligations under the principal contracts relating to Plant Vogtle Units 3 and 4. There are no restrictions on Georgia Power's ability to grant liens on other property. The final maturity date for each advance under the FFB Credit Facilities is February 20, 2044. Interest is payable quarterly and principal payments began in February 2020. Each borrowing under the FFB Credit Facilities bears interest at a fixed rate equal to the applicable U.S. Treasury rate at the time of the borrowing plus a spread equal to 0.375%. Under the Amended and Restated Loan Guarantee Agreement, Georgia Power is subject to customary borrower affirmative and negative covenants and events of default. In addition, Georgia Power is subject to project-related reporting requirements and other project-specific covenants and events of default. In the event certain mandatory prepayment events occur, Georgia Power will be required to prepay the outstanding principal amount of all borrowings under the FFB Credit Facilities over a period of five years (with level principal amortization). Among other things, these mandatory prepayment events include (i) the termination of the Vogtle Services Agreement or rejection of the Vogtle Services Agreement in any Westinghouse bankruptcy if Georgia Power does not maintain access to intellectual property rights under the related intellectual property licenses; (ii) termination of the Bechtel Agreement, unless the Vogtle Owners enter into a replacement agreement; (iii) cancellation of Plant Vogtle Units 3 and 4 by the Georgia PSC or by Georgia Power; (iv) failure of the holders of 90% of the ownership interests in Plant Vogtle Units 3 and 4 to vote to continue construction following certain schedule extensions; (v) cost disallowances by the Georgia PSC that could have a material adverse effect on completion of Plant Vogtle Units 3 and 4 or Georgia Power's ability to repay the outstanding borrowings under the FFB Credit Facilities; or (vi) loss of or failure to receive necessary regulatory approvals. Under certain circumstances, insurance proceeds and any proceeds from an event of taking must be applied to immediately prepay outstanding borrowings under the FFB Credit Facilities. Georgia Power also may voluntarily prepay outstanding borrowings under the FFB Credit Facilities. Under the FFB Credit Facilities, any prepayment (whether mandatory or optional) will be made with a make-whole premium or discount, as applicable. The latest extension of the schedule for Plant Vogtle Units 3 and 4 triggers the requirement that the holders of at least 90% of the ownership interests of Plant Vogtle Units 3 and 4 must vote to continue construction. If the holders of at least 90% of the ownership interests of Plant Vogtle Units 3 and 4 do not vote to continue construction, the DOE may require Georgia Power to prepay all outstanding borrowings under the FFB Credit Facilities over a period of five years. In connection with any cancellation of Plant Vogtle Units 3 and 4, the DOE may elect to continue construction of Plant Vogtle Units 3 and 4. In such an event, the DOE will have the right to assume Georgia Power's rights and obligations under the principal agreements relating to Plant Vogtle Units 3 and 4 and to acquire all or a portion of Georgia Power's ownership interest in Plant Vogtle Units 3 and 4. See Note 2 under "Georgia Power – Nuclear Construction" for additional information. Secured Debt Each of Southern Company's subsidiaries is organized as a legal entity, separate and apart from Southern Company and its other subsidiaries. There are no agreements or other arrangements among the Southern Company system companies under which the assets of one company have been pledged or otherwise made available to satisfy obligations of Southern Company or any of its other subsidiaries. As discussed under "Long-term Debt" herein, the Registrants had secured debt outstanding at December 31, 2021 and 2020. Each Registrant's senior notes, junior subordinated notes, pollution control and other revenue bond obligations, bank term loans, credit facility borrowings, and notes payable are effectively subordinated to all secured debt of each respective Registrant. Equity Units In 2019, Southern Company issued 34.5 million 2019 Series A Equity Units (Equity Units), initially in the form of corporate units (Corporate Units), at a stated amount of $50 per Corporate Unit, for a total stated amount of $1.725 billion. Net proceeds from the issuance were approximately $1.682 billion. The proceeds were used to repay short-term indebtedness and for other general corporate purposes, including investments in Southern Company's subsidiaries. Each Corporate Unit is comprised of (i) a 1/40 undivided beneficial ownership interest in $1,000 principal amount of Southern Company's Series 2019A Remarketable Junior Subordinated Notes (Series 2019A RSNs) due 2024, (ii) a 1/40 undivided beneficial ownership interest in $1,000 principal amount of Southern Company's Series 2019B Remarketable Junior Subordinated Notes (together with the Series 2019A RSNs, the RSNs) due 2027, and (iii) a stock purchase contract, which obligates the holder to purchase from Southern Company, no later than August 1, 2022, a certain number of shares of Southern Company's common stock for $50 in cash (Stock Purchase Contract). Southern Company has agreed to remarket the RSNs in 2022, at which time each interest rate on the RSNs will reset at the applicable market rate. Holders may choose to either remarket their RSNs, receive the proceeds, and use those funds to settle the related Stock Purchase Contract or retain the RSNs and use other funds to settle the related Stock Purchase Contract. If the remarketing is unsuccessful, holders will have the right to put their RSNs to Southern Company at a price equal to the principal amount. The Corporate Units carry an annual distribution rate of 6.75% of the stated amount, which is comprised of a quarterly interest payment on the RSNs of 2.70% per year and a quarterly purchase contract adjustment payment of 4.05% per year. Each Stock Purchase Contract obligates the holder to purchase, and Southern Company to sell, for $50 a number of shares of Southern Company common stock determined based on the applicable market value (as determined under the related Stock Purchase Contract) in accordance with the conversion ratios set forth below (subject to anti-dilution adjustments): •If the applicable market value is equal to or greater than $68.64, 0.7284 shares. •If the applicable market value is less than $68.64 but greater than $57.20, a number of shares equal to $50 divided by the applicable market value. •If the applicable market value is less than or equal to $57.20, 0.8741 shares. A holder's ownership interest in the RSNs is pledged to Southern Company to secure the holder's obligation under the related Stock Purchase Contract. If a holder of a Stock Purchase Contract chooses at any time to have its RSNs released from the pledge, such holder's obligation under such Stock Purchase Contract must be secured by a U.S. Treasury security equal to the aggregate principal amount of the RSNs. At the time of issuance, the RSNs were recorded on Southern Company's consolidated balance sheet as long-term debt and the present value of the contract adjustment payments of $198 million was recorded as a liability, representing the obligation to make contract adjustment payments, with an offsetting reduction to paid-in capital. The liability balance at December 31, 2021 was $52 million, which was classified as current. The difference between the face value and present value of the contract adjustment payments is being accreted to interest expense on the consolidated statements of income over the three-year period ending in August 2022. The liability recorded for the contract adjustment payments is considered non-cash and excluded from the consolidated statements of cash flows. To settle the Stock Purchase Contracts, Southern Company will be required to issue a maximum of 30.2 million shares of common stock (subject to anti-dilution adjustments and a make-whole adjustment if certain fundamental changes occur). Bank Credit Arrangements At December 31, 2021, committed credit arrangements with banks were as follows:
| Expires |  |  |  |  |  |  |
Company | 2022 |  | 2023 |  | 2024 |  | 2026 |  | Total |  | Unused |  |  |  |  |  |  |  | Due within One Year
| (in millions)
Southern Company parent | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,000 |  |  | $ | 2,000 |  |  | $ | 1,998 |  |  |  |  |  |  |  |  | $ | — |
Alabama Power | — |  |  | — |  |  | 550 |  |  | 700 |  |  | 1,250 |  |  | 1,250 |  |  |  |  |  |  |  |  | — |
Georgia Power | — |  |  | — |  |  | — |  |  | 1,750 |  |  | 1,750 |  |  | 1,726 |  |  |  |  |  |  |  |  | — |
Mississippi Power | — |  |  | 125 |  |  | 150 |  |  | — |  |  | 275 |  |  | 275 |  |  |  |  |  |  |  |  | — |
Southern Power(a) | — |  |  | — |  |  | — |  |  | 600 |  |  | 600 |  |  | 568 |  |  |  |  |  |  |  |  | — |
Southern Company Gas(b) | 250 |  |  | — |  |  | — |  |  | 1,500 |  |  | 1,750 |  |  | 1,747 |  |  |  |  |  |  |  |  | 250 |
SEGCO | 30 |  |  | — |  |  | — |  |  | — |  |  | 30 |  |  | 30 |  |  |  |  |  |  |  |  | 30 |
Southern Company | $ | 280 |  |  | $ | 125 |  |  | $ | 700 |  |  | $ | 6,550 |  |  | $ | 7,655 |  |  | $ | 7,594 |  |  |  |  |  |  |  |  | $ | 280 |
(a)Does not include Southern Power Company's $75 million and $60 million continuing letter of credit facilities for standby letters of credit expiring in 2023, of which $8 million and $4 million, respectively, was unused at December 31, 2021. Subsequent to December 31, 2021, Southern Power amended its $60 million letter of credit facility, which, among other things, extended the expiration date from 2023 to 2025 and increased the amount to $75 million. Southern Power's subsidiaries are not parties to its bank credit arrangements or letter of credit facilities. (b)Southern Company Gas, as the parent entity, guarantees the obligations of Southern Company Gas Capital, which is the borrower of $800 million of the arrangement expiring in 2026 and all $250 million of the arrangement expiring in 2022. Southern Company Gas' committed credit arrangement expiring in 2026 also includes $700 million for which Nicor Gas is the borrower and which is restricted for working capital needs of Nicor Gas. Pursuant to the multi-year credit arrangement expiring in 2026, the allocations between Southern Company Gas Capital and Nicor Gas may be adjusted. See "Structural Considerations" herein for additional information. The bank credit arrangements require payment of commitment fees based on the unused portion of the commitments. Commitment fees average less than 1/4 of 1% for the Registrants and Nicor Gas. Subject to applicable market conditions, Southern Company and its subsidiaries expect to renew or replace their bank credit arrangements as needed, prior to expiration. In connection therewith, Southern Company and its subsidiaries may extend the maturity dates and/or increase or decrease the lending commitments thereunder. These bank credit arrangements, as well as the term loan arrangements of the Registrants, Nicor Gas, and SEGCO, contain covenants that limit debt levels and contain cross-acceleration or, in the case of Southern Power, cross-default provisions to other indebtedness (including guarantee obligations) that are restricted only to the indebtedness of the individual company. Such cross-default provisions to other indebtedness would trigger an event of default if Southern Power defaulted on indebtedness or guarantee obligations over a specified threshold. Such cross-acceleration provisions to other indebtedness would trigger an event of default if the applicable borrower defaulted on indebtedness, the payment of which was then accelerated. Southern Company's, Southern Company Gas', and Nicor Gas' credit arrangements contain covenants that limit debt levels to 70% of total capitalization, as defined in the agreements, and the other subsidiaries' bank credit arrangements contain covenants that limit debt levels to 65% of total capitalization, as defined in the agreements. For purposes of these definitions, debt excludes junior subordinated notes and, in certain arrangements, other hybrid securities. Additionally, for Southern Company and Southern Power, for purposes of these definitions, debt excludes any project debt incurred by certain subsidiaries of Southern Power to the extent such debt is non-recourse to Southern Power and capitalization excludes the capital stock or other equity attributable to such subsidiaries. At December 31, 2021, the Registrants, Nicor Gas, and SEGCO were in compliance with all such covenants. None of the bank credit arrangements contain material adverse change clauses at the time of borrowings. A portion of the unused credit with banks is allocated to provide liquidity support to the revenue bonds of the traditional electric operating companies and the commercial paper programs of the Registrants, Nicor Gas, and SEGCO. The amount of variable rate revenue bonds of the traditional electric operating companies outstanding requiring liquidity support at December 31, 2021 was approximately $1.5 billion (comprised of approximately $789 million at Alabama Power, $672 million at Georgia Power, and $34 million at Mississippi Power). In addition, at December 31, 2021, Georgia Power had approximately $157 million of fixed rate revenue bonds outstanding that are required to be remarketed within the next 12 months. At both December 31, 2021 and 2020, Southern Power had $105 million of cash collateral posted related to PPA requirements, which is included in other deferred charges and assets on Southern Power's consolidated balance sheets. Notes Payable The Registrants, Nicor Gas, and SEGCO make short-term borrowings primarily through commercial paper programs that have the liquidity support of the committed bank credit arrangements described above under "Bank Credit Arrangements." Southern Power's subsidiaries are not parties or obligors to its commercial paper program. Southern Company Gas maintains commercial paper programs at Southern Company Gas Capital and at Nicor Gas. Nicor Gas' commercial paper program supports working capital needs at Nicor Gas as Nicor Gas is not permitted to make money pool loans to affiliates. All of Southern Company Gas' other subsidiaries benefit from Southern Company Gas Capital's commercial paper program. See "Structural Considerations" herein for additional information. In addition, Southern Company and certain of its subsidiaries have entered into various bank term loan agreements. Unless otherwise stated, the proceeds of these loans were used to repay existing indebtedness and for general corporate purposes, including working capital and, for the subsidiaries, their continuous construction programs. Commercial paper and short-term bank term loans are included in notes payable in the balance sheets. Details of short-term borrowings for the applicable Registrants were as follows:
| Notes Payable at December 31, 2021 |  | Notes Payable at December 31, 2020
| Amount Outstanding |  | Weighted Average Interest Rate |  | Amount Outstanding |  | Weighted Average Interest Rate
| (in millions) |  |  |  | (in millions) |  |
Southern Company |  |  |  |  |  |  |
Commercial paper | $ | 1,140 |  |  | 0.3 | % |  | $ | 609 |  |  | 0.3 | %
Short-term bank debt | 300 |  |  | 0.7 | % |  | — |  |  | — | %
Total | $ | 1,440 |  |  | 0.4 | % |  | $ | 609 |  |  | 0.3 | %
Georgia Power |  |  |  |  |  |  |
Commercial paper | $ | — |  |  | — | % |  | $ | 60 |  |  | 0.3 | %
Mississippi Power |  |  |  |  |  |  |
Commercial paper | $ | — |  |  | — | % |  | $ | 25 |  |  | 0.4 | %
Southern Power |  |  |  |  |  |  |
Commercial paper | $ | 211 |  |  | 0.3 | % |  | $ | 175 |  |  | 0.3 | %
Southern Company Gas |  |  |  |  |  |  |
Commercial paper: |  |  |  |  |  |  |
Southern Company Gas Capital | $ | 379 |  |  | 0.3 | % |  | $ | 220 |  |  | 0.3 | %
Nicor Gas | 530 |  |  | 0.3 | % |  | 104 |  |  | 0.2 | %
Short-term bank debt: |  |  |  |  |  |  |
Nicor Gas | 300 |  |  | 0.7 | % |  | — |  |  | — | %
Total | $ | 1,209 |  |  | 0.4 | % |  | $ | 324 |  |  | 0.2 | %
See "Bank Credit Arrangements" herein for information on bank term loan covenants that limit debt levels and cross-acceleration or cross-default provisions. Outstanding Classes of Capital Stock Southern Company Common Stock Stock Issued During 2021, Southern Company issued approximately 3.5 million shares of common stock primarily through employee equity compensation plans and received proceeds of approximately $73 million. See "Equity Units" herein for additional information. Shares Reserved At December 31, 2021, a total of 127 million shares were reserved for issuance pursuant to the Southern Investment Plan, employee savings plans, the Outside Directors Stock Plan, the Equity and Incentive Compensation Plan (which includes stock options and performance share units as discussed in Note 12), and an at-the-market program. Of the total 127 million shares reserved, 31.5 million shares are available for awards under the Equity and Incentive Compensation Plan at December 31, 2021. Diluted Earnings Per Share For Southern Company, the only differences in computing basic and diluted earnings per share (EPS) are attributable to awards outstanding under stock-based compensation plans and the Equity Units. Earnings per share dilution resulting from stock-based compensation plans and the Equity Units issuance is determined using the treasury stock method. Shares used to compute diluted EPS were as follows:
| Average Common Stock Shares
| 2021 |  | 2020 |  | 2019
| (in millions)
As reported shares | 1,061 |  |  | 1,058 |  |  | 1,046 |
Effect of stock-based compensation | 7 |  |  | 7 |  |  | 8 |
Diluted shares | 1,068 |  |  | 1,065 |  |  | 1,054 |
In all years presented, an immaterial number of stock-based compensation awards was not included in the diluted EPS calculation because the awards were anti-dilutive. The Equity Units were excluded from the calculation of diluted EPS for all years presented as the dilutive stock price threshold was not met. Redeemable Preferred Stock of Subsidiaries As discussed further under "Alabama Power" herein, the preferred stock of Alabama Power is presented as "Redeemable Preferred Stock of Subsidiaries" on Southern Company's balance sheets in a manner consistent with temporary equity under applicable accounting standards. Alabama Power Alabama Power has preferred stock, Class A preferred stock, and common stock outstanding. Alabama Power also has authorized preference stock, none of which is outstanding. Alabama Power's preferred stock and Class A preferred stock, without preference between classes, rank senior to Alabama Power's common stock with respect to payment of dividends and voluntary and involuntary dissolution. The preferred stock and Class A preferred stock of Alabama Power contain a feature that allows the holders to elect a majority of Alabama Power's board of directors if preferred dividends are not paid for four consecutive quarters. Because such a potential redemption-triggering event is not solely within the control of Alabama Power, the preferred stock and Class A preferred stock is presented as "Redeemable Preferred Stock" on Alabama Power's balance sheets in a manner consistent with temporary equity under applicable accounting standards. Alabama Power's preferred stock is subject to redemption at a price equal to the par value plus a premium. Alabama Power's Class A preferred stock is subject to redemption at a price equal to the stated capital. All series of Alabama Power's preferred stock currently are subject to redemption at the option of Alabama Power. The Class A preferred stock is subject to redemption on or after October 1, 2022, or following the occurrence of a rating agency event. Information for each outstanding series is in the table below:
Preferred Stock | Par Value/Stated Capital Per Share |  | Shares Outstanding |  | Redemption Price Per Share
4.92% Preferred Stock | $100 |  | 80,000 |  |  | $103.23
4.72% Preferred Stock | $100 |  | 50,000 |  |  | $102.18
4.64% Preferred Stock | $100 |  | 60,000 |  |  | $103.14
4.60% Preferred Stock | $100 |  | 100,000 |  |  | $104.20
4.52% Preferred Stock | $100 |  | 50,000 |  |  | $102.93
4.20% Preferred Stock | $100 |  | 135,115 |  |  | $105.00
5.00% Class A Preferred Stock | $25 |  | 10,000,000 |  |  | $25.00(*)
(*)$25.50 Georgia Power Georgia Power has preferred stock, Class A preferred stock, preference stock, and common stock authorized, but only common stock outstanding. Mississippi PowerMississippi Power has preferred stock and common stock authorized, but only common stock outstanding Dividend Restrictions The income of Southern Company is derived primarily from equity in earnings of its subsidiaries. At December 31, 2021, consolidated retained earnings included $4.4 billion of undistributed retained earnings of the subsidiaries. The traditional electric operating companies and Southern Power can only pay dividends to Southern Company out of retained earnings or paid-in-capital. See Note 7 under "Southern Power" for information regarding the distribution requirements for certain Southern Power subsidiaries. By regulation, Nicor Gas is restricted, to the extent of its retained earnings balance, in the amount it can dividend or loan to affiliates and is not permitted to make money pool loans to affiliates. At December 31, 2021, the amount of Southern Company Gas' subsidiary retained earnings restricted for dividend payment totaled $1.3 billion. Structural Considerations Since Southern Company and Southern Company Gas are holding companies, the right of Southern Company and Southern Company Gas and, hence, the right of creditors of Southern Company or Southern Company Gas to participate in any distribution of the assets of any respective subsidiary of Southern Company or Southern Company Gas, whether upon liquidation, reorganization or otherwise, is subject to prior claims of creditors and preferred stockholders of such subsidiary. Southern Company Gas' 100%-owned subsidiary, Southern Company Gas Capital, was established to provide for certain of Southern Company Gas' ongoing financing needs through a commercial paper program, the issuance of various debt, hybrid securities, and other financing arrangements. Southern Company Gas fully and unconditionally guarantees all debt issued by Southern Company Gas Capital. Nicor Gas is not permitted by regulation to make loans to affiliates or utilize Southern Company Gas Capital for its financing needs. Southern Power Company's senior notes, bank term loan, commercial paper, and bank credit arrangement are unsecured senior indebtedness, which rank equally with all other unsecured and unsubordinated debt of Southern Power Compan y. Southern Power's subsidiaries are not issuers, borrowers, or obligors, as applicable, under any of these unsecured senior debt arrangements, which are effectively subordinated to any future secured debt of Southern Power Company and any potential claims of creditors of Southern Power's subsidiaries.

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