{"url_path":"/sec/cik-0001004155/10-k/2026/item-2","section_key":"item-2","section_title":"Item 2 PROPERTIES","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-19","source_url":"https://www.sec.gov/Archives/edgar/data/1004155/0000092122-26-000006-index.html","accession_number":"0000092122-26-000006","cik":"0001004155","ticker":null,"issuer_name":"SOUTHERN CO GAS","edgar_url":"https://www.sec.gov/Archives/edgar/data/1004155/0000092122-26-000006-index.html","primary_entity_key":"0001004155","primary_entity_name":"SOUTHERN CO GAS"},"word_count":2580,"has_tables":true,"body_markdown":"Item 2. PROPERTIES\n\nElectric\n\nAt December 31, 2025, the traditional electric operating companies, Southern Power, and SEGCO owned and/or operated the generating and battery energy storage facilities listed 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.\n\nCompany/Facility Type(a)/Facility Name/\n\nOwnership Percentage\nLocationNameplate\nCapacity (KWs)\n\nAlabama Power\n\nNatural Gas\n\nCombined Cycle:\n\nBarry Units 6 through 8\nMobile, AL1,706,424 \n\nCentral Alabama Generating StationAutauga County, AL885,000 \n\nLindsay Hill Generating Station\nAutauga County, AL879,700 \n\nCombustion Turbine:\n\nCalhoun Generating StationCalhoun County, AL748,000 \n\nGreene CountyDemopolis, AL720,000 \n\nSteam:\n\nBarry Units 1, 2, and 4Mobile, AL600,000 \n\nGreene County Units 1 and 2 (60%)Demopolis, AL300,000 \n\nTotal Natural Gas5,839,124 \n\nCoal\n\nBarry Unit 5Mobile, AL700,000 \n\nGaston Unit 5Wilsonville, AL880,000 \n\nMiller (91.8% of Units 1 and 2 and 100% of Units 3 and 4)Birmingham, AL2,532,288 \n\nTotal Coal4,112,288 \n\nNuclear\n\nFarleyDothan, AL1,720,000 \n\nSolar\n\nAnniston Army Depot\nCalhoun County, AL\n7,380 \n\nFort Rucker\nDale County, AL\n10,560 \n\nTotal Solar17,940 \n\nHydro\n\nBankheadHolt, AL53,985 \n\nBouldinWetumpka, AL225,000 \n\nHarrisWedowee, AL132,000 \n\nHenryOhatchee, AL72,900 \n\nHoltHolt, AL46,944 \n\nJordanWetumpka, AL100,000 \n\nLayClanton, AL177,000 \n\nLewis SmithJasper, AL157,500 \n\nLogan MartinVincent, AL135,000 \n\nMartinDadeville, AL182,000 \n\nMitchellVerbena, AL170,000 \n\nI-32\n\n    [Table of Contents](#i5f73e41dadc741329774599f12c4776d_7)                                [Index to Financial Statements](#i5f73e41dadc741329774599f12c4776d_337)\n\nCompany/Facility Type(a)/Facility Name/\n\nOwnership Percentage\nLocationNameplate\nCapacity (KWs)\n\nThurlowTallassee, AL81,000 \n\nWeissLeesburg, AL87,750 \n\nYatesTallassee, AL47,000 \n\nTotal Hydro1,668,079 \n\nCogeneration\n\nLowndes CountyBurkeville, AL104,800 \n\nTheodoreTheodore, AL236,418 \n\nWashington CountyWashington County, AL123,428 \n\nTotal Cogeneration464,646 \n\nTotal Alabama Power Generating Capacity13,822,077 \n\nGeorgia Power\n\nNatural Gas\n\nCombined Cycle:\n\nMcDonough-Atkinson Units 4 through 6Atlanta, GA2,520,000 \n\nMcIntosh Units 10 and 11Effingham County, GA1,318,920 \n\nCombustion Turbine:\n\nMcDonough Unit 3Atlanta, GA78,800 \n\nMcIntosh Units 1 through 8Effingham County, GA640,000 \n\nMcManusBrunswick, GA481,700 \n\nRobinsWarner Robins, GA158,400 \n\nWilsonAugusta, GA354,100 \n\nSteam:\n\nYatesNewnan, GA700,000 \n\nTotal Natural Gas6,251,920 \n\nCoal\n\nBowenCartersville, GA3,160,000 \n\nScherer (8.4% of Units 1 and 2 and 75% of Unit 3)Macon, GA750,924 \n\nTotal Coal3,910,924 \n\nNuclear\n\nHatch (50.1%)Baxley, GA899,612 \n\nVogtle (45.7%)Augusta, GA2,167,094 \n\nTotal Nuclear3,066,706 \n\nSolar\n\nFort BenningColumbus, GA30,005 \n\nFort GordonAugusta, GA30,000 \n\nFort StewartFort Stewart, GA30,000 \n\nFort ValleyFort Valley, GA10,800 \n\nKings BayCamden County, GA30,161 \n\nMarine Corps Logistics BaseAlbany, GA31,161 \n\nMcIntosh\nEffingham County, GA10,000 \n\nMoody Air Force BaseValdosta, GA49,500 \n\nRobins Air Force BaseWarner Robins, GA128,000 \n\n8 Other PlantsVarious Georgia locations18,479 \n\nTotal Solar368,106 \n\nI-33\n\n    [Table of Contents](#i5f73e41dadc741329774599f12c4776d_7)                                [Index to Financial Statements](#i5f73e41dadc741329774599f12c4776d_337)\n\nCompany/Facility Type(a)/Facility Name/\n\nOwnership Percentage\nLocationNameplate\nCapacity (KWs)\n\nHydro\n\nBartletts FerryColumbus, GA173,000 \n\nBurtonClayton, GA8,100 \n\nFlint RiverAlbany, GA5,400 \n\nGoat RockColumbus, GA40,500 \n\nLloyd ShoalsJackson, GA18,000 \n\nMorgan FallsAtlanta, GA16,800 \n\nNacoocheeLakemont, GA4,800 \n\nNorth HighlandsColumbus, GA29,600 \n\nOliver DamColumbus, GA60,000 \n\nRocky Mountain (25.4%)Rome, GA229,362 \n(b)\n\nSinclair DamMilledgeville, GA45,000 \n\nTallulah FallsClayton, GA72,000 \n\nTerroraClayton, GA20,800 \n\nTugaloClayton, GA59,250 \n\nWallace DamEatonton, GA321,300 \n\nYonahToccoa, GA22,500 \n\nTotal Hydro1,126,412 \n\nBattery Energy Storage\n\nMossy Branch\n\nTalbot County, GA\n65,000 \n\nTotal Georgia Power Generating Capacity14,789,068 \n\nMississippi Power\n\nNatural Gas\n\nCombined Cycle:\n\nDanielPascagoula, MS1,070,424 \n\nRatcliffeKemper County, MS769,898 \n\nCombustion Turbine:\n\nSweattMeridian, MS39,400 \n\nWatsonGulfport, MS39,360 \n\nSteam:\n\nGreene County Units 1 and 2 (40%)Demopolis, AL200,000 \n\nWatsonGulfport, MS750,000 \n\nTotal Natural Gas2,869,082 \n\nCoal\n\nDanielPascagoula, MS1,000,000 \n\nSolar\n\nWalnut Grove\n\nWalnut Grove, MS\n1,500 \n\nCogeneration\n\nChevron Cogenerating StationPascagoula, MS147,292 \n(c)\n\nTotal Mississippi Power Generating Capacity4,017,874 \n\nI-34\n\n    [Table of Contents](#i5f73e41dadc741329774599f12c4776d_7)                                [Index to Financial Statements](#i5f73e41dadc741329774599f12c4776d_337)\n\nCompany/Facility Type(a)/Facility Name/\n\nOwnership Percentage\nLocationNameplate\nCapacity (KWs)\n\nSouthern Power\n\nNatural Gas\n\nCombined Cycle:\n\nFranklinSmiths, AL1,857,820 \n\nHarrisAutaugaville, AL1,318,920 \n\nRowan Unit 4Salisbury, NC530,550 \n\nWansley Units 6 and 7Carrollton, GA1,073,000 \n\nCombustion Turbine:\n\nAddison Thomaston, GA668,800 \n\nClevelandCleveland County, NC720,000 \n\nDahlbergJackson County, GA756,000 \n\nRowan Units 1 through 3Salisbury, NC455,250 \n\nTotal Natural Gas7,380,340 \n\nSolar\n\nAdobeKern County, CA20,000 \n\nApexNorth Las Vegas, NV20,000 \n\nBoulder IClark County, NV100,000 \n\nButlerTaylor County, GA104,000 \n\nButler Solar FarmTaylor County, GA22,000 \n\nCalipatriaImperial County, CA 20,000 \n\nCampo VerdeImperial County, CA147,420 \n\nCimarronColfax County, NM30,640 \n\nDecatur CountyDecatur County, GA20,000 \n\nDecatur ParkwayDecatur County, GA84,000 \n\nDesert StatelineSan Bernadino County, CA299,990 \n\nEast PecosPecos County, TX120,000 \n\nGarlandKern County, CA205,290 \n\nGaskell West IKern County, CA20,000 \n\nGranvilleGranville County, NC2,500 \n\nHenriettaKings County, CA102,000 \n\nImperial ValleyImperial County, CA163,200 \n\nLamesaDawson County, TX102,000 \n\nLost Hills-BlackwellKern County, CA32,000 \n\nMacho SpringsLuna County, NM55,000 \n\nMorelos del SolKern County, CA15,000 \n\nNorth StarFresno County, CA61,600 \n\nPawpawTaylor County, GA30,480 \n\nRoserockPecos County, TX160,000 \n\nRutherfordRutherford County, NC74,800 \n\nSandhillsTaylor County, GA148,000 \n\nSouth Cheyenne\n\nLaramie County, WY\n150,000 \n\nSpectrumClark County, NV30,240 \n\nTranquillityFresno County, CA205,300 \n\nTotal Solar2,545,460 \n(d)\n\nWind\n\nBeech Ridge IIGreenbrier County, WV56,200 \n\nBethelCastro County, TX276,000 \n\nCactus FlatsConcho County, TX148,350 \n\nDeuel HarvestDeuel County, SD301,100 \n\nGlass SandsMurray County, OK118,300 \n\nI-35\n\n    [Table of Contents](#i5f73e41dadc741329774599f12c4776d_7)                                [Index to Financial Statements](#i5f73e41dadc741329774599f12c4776d_337)\n\nCompany/Facility Type(a)/Facility Name/\n\nOwnership Percentage\nLocationNameplate\nCapacity (KWs)\n\nGrant PlainsGrant County, OK147,200 \n\nGrant\nGrant County, OK151,800 \n\nKay\nKay County, OK299,000 \n\nPassadumkeagPenobscot County, ME42,900 \n\nReadingOsage & Lyon Counties, KS200,100 \n\nSalt ForkDonley & Gray Counties, TX174,000 \n\nSkookumchuckLewis & Thurston Counties, WA136,800 \n\nTyler BluffCooke County, TX125,580 \n\nWake\nCrosby & Floyd Counties, TX257,250 \n\nWildhorse\nPushmataha County, OK100,000 \n\nTotal Wind2,534,580 \n(e)\n\nBattery Energy Storage\n\nGarlandKern County, CA88,000 \n(f)\n\nTranquillityFresno County, CA72,000 \n(f)\n\nTotal Battery Energy Storage\n160,000 \n\nFuel Cell\n\nRed Lion and BrooksideNew Castle and Newark, DE27,500 \n(g)\n\nTotal Southern Power Generating Capacity12,647,880 \n\nSEGCO\n\nGaston Units 1 through 4 (Natural Gas-Steam)Wilsonville, AL1,000,000 \n\nGaston (Natural Gas-Combustion Turbine)Wilsonville, AL19,680 \n\nTotal SEGCO Generating Capacity1,019,680 \n(h)\n\nSouthern Company System\n\nNatural Gas23,360,146 \n\nCoal9,023,212 \n\nNuclear4,786,706 \n\nSolar2,933,006 \n\nHydro2,794,491 \n\nWind2,534,580 \n\nCogeneration611,938 \n\nBattery Energy Storage\n225,000 \n\nFuel Cell27,500 \n\nTotal Southern Company System Generating Capacity46,296,579 \n\n(a)Represents the primary fuel source.\n\n(b)Operated by OPC.\n\n(c)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.\n\n(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 Gaskell West I, Roserock, and South Cheyenne 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 is the controlling partner in a tax equity partnership owning Gaskell West I and also owns 100% of Roserock and South Cheyenne. 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. See Note 7 to the financial statements under \"Southern Power – Variable Interest Entities – SP Solar\" in Item 8 herein for additional information.\n\nI-36\n\n    [Table of Contents](#i5f73e41dadc741329774599f12c4776d_7)                                [Index to Financial Statements](#i5f73e41dadc741329774599f12c4776d_337)\n\n(e)Southern Power is the controlling partner in a non-tax equity partnership for Beech Ridge II and is the controlling partner in tax equity partnerships owning Cactus Flats, Deuel Harvest, Reading, Skookumchuck, and Wildhorse. For Deuel Harvest and Skookumchuck, another partner holds a noncontrolling interest in Southern Power's remaining equity. Southern Power also owns 100% of Glass Sands and 100% of SP Wind (a holding company which owns the remaining eight Southern Power wind facilities). 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. See Note 7 to the financial statements under \"Southern Power – Variable Interest Entities – SP Wind\" in Item 8 herein for additional information.\n\n(f)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. 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.\n\n(g)Southern Power has two noncontrolling interest partners that own approximately 10 MWs of the facility. 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.\n\n(h)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.\n\nSee MANAGEMENT'S DISCUSSION AND ANALYSIS – FUTURE EARNINGS POTENTIAL – \"Environmental Matters\" in Item 7 herein and Note 2 to the financial statements under \"Alabama Power – Environmental Accounting Order,\" \"Georgia Power – Integrated Resource Plans,\" and \"Mississippi Power – Integrated Resource Plans\" 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.\n\nExcept 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, substantially in good operating condition, and suitable for their intended purpose.\n\nMississippi 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 2027.\n\nOn July 30, 2025, Mississippi Power completed its acquisition of FP&L's 50% ownership interest in Plant Daniel Units 1 and 2. See Note 2 to the financial statements under \"Mississippi Power – Integrated Resource Plans\" and \" – Plant Daniel\" and Note 15 to the financial statements under \"Mississippi Power\" in Item 8 herein for additional information on Plant Daniel.\n\nIn 2025, the maximum demand on the traditional electric operating companies, Southern Power Company, and SEGCO was 37,006,000 KWs and occurred on January 22, 2025. The all-time maximum demand of 38,194,000 KWs occurred on January 17, 2024. 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 2025 was 20%.\n\nJointly-Owned Facilities\n\nAlabama Power and Georgia Power at December 31, 2025 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:\n\nPercentage Ownership\n\nFacility\nTotal\nCapacityAlabama\nPowerPower\nSouthGeorgia\nPowerOPCMEAG\nPowerDaltonFP&L\n\n(MWs)\n\nPlant Miller Units 1 and 21,320 91.8 %8.2 %— %— %— %— %— %\n\nPlant Hatch1,796 — — 50.1 30.0 17.7 2.2 — \n\nPlant Vogtle Units 1 through 4\n4,742 — — 45.7 30.0 22.7 1.6 — \n\nPlant Scherer Units 1 and 21,636 — — 8.4 60.0 30.2 1.4 — \n\nPlant Scherer Unit 3818 — — 75.0 — — — 25.0 \n\nRocky Mountain903 — — 25.4 74.6 — — — \n\nAlabama Power and Georgia 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.\n\nIn addition, Georgia Power has commitments, in the form of capacity purchases totaling $34 million at December 31, 2025, 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.\n\nI-37\n\n    [Table of Contents](#i5f73e41dadc741329774599f12c4776d_7)                                [Index to Financial Statements](#i5f73e41dadc741329774599f12c4776d_337)\n\nTitles to Property\n\nThe 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 relating to Plant Vogtle Units 3 and 4, which are secured by a first priority lien on (a) Georgia Power's undivided ownership interest in the units and (b) Georgia Power's rights and obligations under the principal contracts relating to the units. 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.\n\nNatural Gas\n\nSouthern 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.\n\nDistribution and Transmission Mains\n\nSouthern 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, 2025, Southern Company Gas' gas distribution operations segment owned approximately 77,900 miles of underground distribution and transmission mains, which are located on easements or rights-of-way that generally provide for perpetual use.\n\nStorage Assets\n\nSouthern 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.\n\nSouthern 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 facilities are used by Southern Company Gas' gas distribution operations segment to supplement natural gas supply during peak usage periods.\n\nJointly-Owned Properties\n\nSouthern Company Gas' gas pipeline investments segment has a 50% undivided ownership interest in a 115-mile pipeline facility in northwest Georgia. 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."}