Item 1. Financial Statements (Unaudited).

			Page
The Southern Company and Subsidiary Companies:
Condensed Consolidated Statements of Income			10
Condensed Consolidated Statements of Comprehensive Income			11
Condensed Consolidated Statements of Cash Flows			12
Condensed Consolidated Balance Sheets			13
Condensed Consolidated Statements of Stockholders' Equity			15
Alabama Power Company:
Condensed Statements of Income			16
Condensed Statements of Comprehensive Income			16
Condensed Statements of Cash Flows			17
Condensed Balance Sheets			18
Condensed Statements of Common Stockholder's Equity			20
Georgia Power Company:
Condensed Statements of Income			21
Condensed Statements of Comprehensive Income			21
Condensed Statements of Cash Flows			22
Condensed Balance Sheets			23
Condensed Statements of Common Stockholder's Equity			25
Mississippi Power Company:
Condensed Statements of Income			26
Condensed Statements of Comprehensive Income			26
Condensed Statements of Cash Flows			27
Condensed Balance Sheets			28
Condensed Statements of Common Stockholder's Equity			30
Southern Power Company and Subsidiary Companies:
Condensed Consolidated Statements of Income			31
Condensed Consolidated Statements of Comprehensive Income			31
Condensed Consolidated Statements of Cash Flows			32
Condensed Consolidated Balance Sheets			33
Condensed Consolidated Statements of Stockholders' Equity			35
Southern Company Gas and Subsidiary Companies:
Condensed Consolidated Statements of Income			36
Condensed Consolidated Statements of Comprehensive Income			36
Condensed Consolidated Statements of Cash Flows			37
Condensed Consolidated Balance Sheets			38
Condensed Consolidated Statements of Stockholder's Equity			40
Combined Notes to the Condensed Financial Statements			41

Table of Contents Index to Financial Statements

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Operating Revenues:
Retail electric revenues															$	4,601					$	3,941
Wholesale electric revenues															744						571
Other electric revenues															242						199
Natural gas revenues (includes alternative revenue programs of $(19) and $34, respectively)															1,839						1,707
Other revenues															349						228
Total operating revenues															7,775						6,646
Operating Expenses:
Fuel															1,292						996
Purchased power															250						198
Cost of natural gas															674						605
Cost of other sales															199						131
Other operations and maintenance															1,619						1,472
Depreciation and amortization															1,286						1,145
Taxes other than income taxes															445						396
Total operating expenses															5,765						4,943
Operating Income															2,010						1,703
Other Income and (Expense):
Allowance for equity funds used during construction															73						58
Earnings from equity method investments															32						45
Interest expense, net of amounts capitalized															(714)						(665)
Other income (expense), net															149						153
Total other income and (expense)															(460)						(409)
Earnings Before Income Taxes															1,550						1,294
Income taxes															280						223
Consolidated Net Income															1,270						1,071
Net loss attributable to noncontrolling interests															(64)						(58)
Consolidated Net Income Attributable to Southern Company															$	1,334					$	1,129
Common Stock Data:
Earnings per share -
Basic															$	1.21					$	1.03
Diluted															$	1.21					$	1.03
Average number of shares of common stock outstanding (in millions)
Basic															1,100						1,094
Diluted															1,105						1,100

The accompanying notes as they relate to Southern Company are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Consolidated Net Income															$	1,270					$	1,071
Other comprehensive income:
Qualifying hedges:
Changes in fair value, net of tax of $5 and $—, respectively															14						1
Reclassification adjustment for amounts included in net income, net of tax of $(4) and $12, respectively															(12)						32
Pension and other postretirement benefit plans:
Benefit plan net gain (loss), net of tax of $— and $1, respectively															1						4
Total other comprehensive income															3						37
Comprehensive Income															1,273						1,108
Comprehensive loss attributable to noncontrolling interests															(64)						(58)
Consolidated Comprehensive Income Attributable to Southern Company															$	1,337					$	1,166

The accompanying notes as they relate to Southern Company are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

			For the Three Months Ended March 31,
			2025						2024
			(in millions)
Operating Activities:
Consolidated net income			$	1,270					$	1,071
Adjustments to reconcile consolidated net income to net cash provided from operating activities —
Depreciation and amortization, total			1,411						1,261
Deferred income taxes			283						48
Allowance for equity funds used during construction			(73)						(58)
Pension, postretirement, and other employee benefits			(149)						(129)
Settlement of asset retirement obligations			(134)						(132)
Stock based compensation expense			90						83
Storm damage cost recovery – long-term			(173)						—
Other, net			67						28
Changes in certain current assets and liabilities —
-Retail fuel cost under recovery			71						257
-Prepayments			(120)						(83)
-Natural gas for sale, net of temporary LIFO liquidation			365						237
-Other current assets			84						(103)
-Accounts payable			(394)						(423)
-Accrued taxes			(418)						(226)
-Accrued compensation			(537)						(488)
-Customer refunds			(95)						(1)
-Natural gas cost over recovery			(179)						(65)
-Other current liabilities			(119)						34
Net cash provided from operating activities			1,250						1,311
Investing Activities:
Property additions			(2,437)						(1,770)
Nuclear decommissioning trust fund purchases			(361)						(404)
Nuclear decommissioning trust fund sales			361						403
Cost of removal, net of salvage			(168)						(138)
Change in construction payables, net			(161)						(365)
Other investing activities			(68)						(111)
Net cash used for investing activities			(2,834)						(2,385)
Financing Activities:
Increase (decrease) in notes payable, net			(841)						236
Proceeds —
Long-term debt			4,567						2,359
Short-term borrowings			—						450
Common stock			30						28
Redemptions and repurchases —
Long-term debt			(35)						(656)
Short-term borrowings			—						(550)
Distributions to noncontrolling interests			(37)						(34)
Payment of common stock dividends			(736)						(733)
Other financing activities			(133)						(115)
Net cash provided from financing activities			2,815						985
Net Change in Cash, Cash Equivalents, and Restricted Cash			1,231						(89)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			1,101						921
Cash, Cash Equivalents, and Restricted Cash at End of Period			$	2,332					$	832
Supplemental Cash Flow Information:
Cash paid (received) during the period for —
Interest (net of $29 and $28 capitalized for 2025 and 2024, respectively)			$	756					$	714
Income taxes, net (excludes credit transfers)			(1)						(9)
Noncash transactions —
Accrued property additions at end of period			940						580
Right-of-use assets obtained under operating leases			87						14
Right-of-use assets obtained under finance leases			13						—
Issuance of common stock under dividend reinvestment plan			55						33

The accompanying notes as they relate to Southern Company are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Assets						At March 31, 2025						At December 31, 2024
						(in millions)
Current Assets:
Cash and cash equivalents						$	2,327					$	1,070
Receivables —
Customer accounts						2,463						2,228
Unbilled revenues						684						825
Under recovered fuel clause revenues						707						713
Other accounts and notes						501						597
Accumulated provision for uncollectible accounts						(81)						(74)
Materials and supplies						2,167						2,178
Fossil fuel for generation						738						803
Natural gas for sale						149						388
Prepaid expenses						441						294
Assets from risk management activities, net of collateral						134						39
Regulatory assets – asset retirement obligations						371						353
Other regulatory assets						699						804
Other current assets						517						476
Total current assets						11,817						10,694
Property, Plant, and Equipment:
In service						138,749						137,143
Less: Accumulated depreciation						40,909						40,126
Plant in service, net of depreciation						97,840						97,017
Other utility plant, net						378						410
Nuclear fuel, at amortized cost						890						873
Construction work in progress						7,221						6,389
Total property, plant, and equipment						106,329						104,689
Other Property and Investments:
Goodwill						5,161						5,161
Nuclear decommissioning trusts, at fair value						2,611						2,621
Equity investments in unconsolidated subsidiaries						1,439						1,416
Other intangible assets, net of amortization of $420 and $412, respectively						324						332
Miscellaneous property and investments						690						668
Total other property and investments						10,225						10,198
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization						1,426						1,386
Deferred charges related to income taxes						895						889
Prepaid pension costs						2,781						2,674
Unamortized loss on reacquired debt						199						203
Deferred under recovered fuel clause revenues						389						485
Regulatory assets – asset retirement obligations, deferred						5,465						5,458
Other regulatory assets, deferred						7,187						7,037
Other deferred charges and assets						1,396						1,467
Total deferred charges and other assets						19,738						19,599
Total Assets						$	148,109					$	145,180

The accompanying notes as they relate to Southern Company are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Liabilities and Stockholders' Equity						At March 31, 2025						At December 31, 2024
						(in millions)
Current Liabilities:
Securities due within one year						$	5,168					$	4,718
Notes payable						514						1,338
Accounts payable						3,094						3,701
Customer deposits						458						486
Accrued taxes —
Accrued income taxes						53						57
Other accrued taxes						600						997
Accrued interest						600						682
Accrued compensation						683						1,261
Asset retirement obligations						748						731
Liabilities from risk management activities, net of collateral						99						160
Operating lease obligations						200						200
Natural gas cost over recovery						16						193
Other regulatory liabilities						422						369
Other current liabilities						1,115						1,100
Total current liabilities						13,770						15,993
Long-term Debt						62,939						58,768
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes						12,181						11,730
Deferred credits related to income taxes						4,372						4,434
Accumulated deferred ITCs						2,034						2,056
Employee benefit obligations						983						1,011
Operating lease obligations, deferred						1,299						1,253
Asset retirement obligations, deferred						9,145						9,203
Other cost of removal obligations						2,039						2,016
Other regulatory liabilities, deferred						683						692
Other deferred credits and liabilities						1,441						1,350
Total deferred credits and other liabilities						34,177						33,745
Total Liabilities						110,886						108,506
Total Stockholders' Equity (See accompanying statements)						37,223						36,674
Total Liabilities and Stockholders' Equity						$	148,109					$	145,180

The accompanying notes as they relate to Southern Company are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)

			Southern Company Common Stockholders' Equity
			Number of Common Shares												Common Stock																								Accumulated Other Comprehensive Income (Loss)
			Issued						Treasury						Par Value						Paid-In Capital						Treasury						Retained Earnings									Noncontrolling Interests						Total
			(in millions)
Balance at December 31, 2023			1,092						(1)						$	5,423					$	13,775					$	(59)					$	12,482					$	(177)								$	3,781					$	35,225
Consolidated net income (loss)			—						—						—						—						—						1,129						—									(58)						1,071
Other comprehensive income			—						—						—						—						—						—						37									—						37
Stock issued			3						—						8						53						—						—						—									—						61
Stock-based compensation			—						—						—						8						—						—						—									—						8
Dividends of $0.70 per share			—						—						—						—						—						(766)						—									—						(766)
Capital contributions from noncontrolling interests			—						—						—						—						—						—						—									9						9
Distributions to noncontrolling interests			—						—						—						—						—						—						—									(38)						(38)
Other			—						—						—						10						(2)						(1)						—									—						7
Balance at March 31, 2024			1,095						(1)						$	5,431					$	13,846					$	(61)					$	12,844					$	(140)								$	3,694					$	35,614

Balance at December 31, 2024			1,098						(1)						$	5,446					$	14,149					$	(59)					$	13,750					$	(78)								$	3,466					$	36,674
Consolidated net income (loss)			—						—						—						—						—						1,334						—									(64)						1,270
Other comprehensive income			—						—						—						—						—						—						3									—						3
Stock issued			2						—						7						78						—						—						—									—						85
Stock-based compensation			—						—						—						5						—						—						—									—						5
Dividends of $0.72 per share			—						—						—						—						—						(791)						—									—						(791)
Capital contributions from noncontrolling interests			—						—						—						—						—						—						—									19						19
Distributions to noncontrolling interests			—						—						—						—						—						—						—									(37)						(37)
Other			—						—						—						(1)						(2)						(2)						—									—						(5)
Balance at March 31, 2025			1,100						(1)						$	5,453					$	14,231					$	(61)					$	14,291					$	(75)								$	3,384					$	37,223

The accompanying notes as they relate to Southern Company are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

ALABAMA POWER COMPANY

CONDENSED STATEMENTS OF INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Operating Revenues:
Retail revenues															$	1,723					$	1,565
Wholesale revenues, non-affiliates															91						85
Wholesale revenues, affiliates															69						41
Other revenues															129						100
Total operating revenues															2,012						1,791
Operating Expenses:
Fuel															386						331
Purchased power, non-affiliates															69						52
Purchased power, affiliates															55						42
Other operations and maintenance															463						412
Depreciation and amortization															370						361
Taxes other than income taxes															131						120
Total operating expenses															1,474						1,318
Operating Income															538						473
Other Income and (Expense):
Allowance for equity funds used during construction															18						14
Interest expense, net of amounts capitalized															(108)						(110)
Other income (expense), net															38						41
Total other income and (expense)															(52)						(55)
Earnings Before Income Taxes															486						418
Income taxes															111						85
Net Income															$	375					$	333

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Net Income															$	375					$	333
Other comprehensive income:
Qualifying hedges:
Reclassification adjustment for amounts included in net income, net of tax of $— and $—, respectively															1						—
Total other comprehensive income															1						—
Comprehensive Income															$	376					$	333

The accompanying notes as they relate to Alabama Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

ALABAMA POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

			For the Three Months Ended March 31,
			2025						2024
			(in millions)
Operating Activities:
Net income			$	375					$	333
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total			404						398
Utilization of federal tax credit carryforward			44						—
Deferred income taxes			37						(38)
Pension, postretirement, and other employee benefits			(52)						(53)
Settlement of asset retirement obligations			(61)						(53)
Other, net			(30)						8
Changes in certain current assets and liabilities —
-Receivables			41						65
-Fossil fuel stock			36						(6)
-Prepayments			(103)						(94)
-Retail fuel cost under recovery			—						73
-Other current assets			(11)						(17)
-Accounts payable			(244)						(403)
-Accrued taxes			116						160
-Accrued compensation			(112)						(93)
-Customer refunds			(95)						—
-Other current liabilities			(118)						(32)
Net cash provided from operating activities			227						248
Investing Activities:
Property additions			(512)						(416)
Nuclear decommissioning trust fund purchases			(115)						(190)
Nuclear decommissioning trust fund sales			115						190
Cost of removal, net of salvage			(41)						(34)
Change in construction payables, net of joint owner portion			(29)						(43)
Other investing activities			(9)						(3)
Net cash used for investing activities			(591)						(496)
Financing Activities:
Increase in notes payable, net			—						65
Proceeds —
Senior notes			500						—
Other long-term debt			2						2
Redemptions —
Revenue bonds			—						(21)
Capital contributions from parent company			525						425
Payment of common stock dividends			(305)						(295)
Other financing activities			(4)						(1)
Net cash provided from financing activities			718						175
Net Change in Cash, Cash Equivalents, and Restricted Cash			354						(73)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			585						409
Cash, Cash Equivalents, and Restricted Cash at End of Period			$	939					$	336
Supplemental Cash Flow Information:
Cash paid during the period for —
Interest (net of $5 and $4 capitalized for 2025 and 2024, respectively)			$	139					$	144
Noncash transactions —
Accrued property additions at end of period			119						95
Right-of-use assets obtained under operating leases			1						7

The accompanying notes as they relate to Alabama Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

ALABAMA POWER COMPANY

CONDENSED BALANCE SHEETS (UNAUDITED)

Assets						At March 31, 2025						At December 31, 2024
						(in millions)
Current Assets:
Cash and cash equivalents						$	939					$	585
Receivables —
Customer accounts						489						512
Unbilled revenues						154						187
Affiliated						104						91
Other accounts and notes						68						126
Accumulated provision for uncollectible accounts						(20)						(22)
Fossil fuel stock						303						339
Materials and supplies						716						699
Prepaid expenses						165						63
Other regulatory assets						305						332
Other current assets						110						79
Total current assets						3,333						2,991
Property, Plant, and Equipment:
In service						36,959						36,501
Less: Accumulated provision for depreciation						11,939						11,741
Plant in service, net of depreciation						25,020						24,760
Other utility plant, net						378						410
Nuclear fuel, at amortized cost						267						262
Construction work in progress						1,344						1,377
Total property, plant, and equipment						27,009						26,809
Other Property and Investments:
Nuclear decommissioning trusts, at fair value						1,371						1,386
Equity investments in unconsolidated subsidiaries						46						48
Miscellaneous property and investments						127						129
Total other property and investments						1,544						1,563
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization						82						84
Deferred charges related to income taxes						265						264
Prepaid pension and other postretirement benefit costs						869						841
Regulatory assets – asset retirement obligations						1,814						1,780
Other regulatory assets, deferred						1,855						1,815
Other deferred charges and assets						413						391
Total deferred charges and other assets						5,298						5,175
Total Assets						$	37,184					$	36,538

The accompanying notes as they relate to Alabama Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

ALABAMA POWER COMPANY

CONDENSED BALANCE SHEETS (UNAUDITED)

Liabilities and Stockholder's Equity						At March 31, 2025						At December 31, 2024
						(in millions)
Current Liabilities:
Securities due within one year						$	700					$	655
Accounts payable —
Affiliated						221						299
Other						451						625
Customer deposits						113						113
Accrued taxes						194						78
Accrued interest						84						120
Accrued compensation						141						240
Asset retirement obligations						348						364
Other regulatory liabilities						74						165
Other current liabilities						75						219
Total current liabilities						2,401						2,878
Long-term Debt						10,954						10,499
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes						4,282						4,178
Deferred credits related to income taxes						1,377						1,398
Accumulated deferred ITCs						110						113
Employee benefit obligations						151						148
Operating lease obligations						73						76
Asset retirement obligations, deferred						3,684						3,694
Other regulatory liabilities, deferred						245						271
Other deferred credits and liabilities						222						195
Total deferred credits and other liabilities						10,144						10,073
Total Liabilities						23,499						23,450
Common Stockholder's Equity (See accompanying statements)						13,685						13,088
Total Liabilities and Stockholder's Equity						$	37,184					$	36,538

The accompanying notes as they relate to Alabama Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

ALABAMA POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY (UNAUDITED)

			Number of Common Shares Issued						Common Stock						Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total
			(in millions)
Balance at December 31, 2023			31						$	1,222					$	7,125					$	3,993					$	(7)					$	12,333
Net income			—						—						—						333						—						333
Capital contributions from parent company			—						—						427						—						—						427
Cash dividends on common stock			—						—						—						(295)						—						(295)
Other			—						—						—						(1)						—						(1)
Balance at March 31, 2024			31						$	1,222					$	7,552					$	4,030					$	(7)					$	12,797
Balance at December 31, 2024			31						$	1,222					$	7,657					$	4,214					$	(5)					$	13,088
Net income			—						—						—						375						—						375
Capital contributions from parent company			—						—						527						—						—						527
Other comprehensive income			—						—						—						—						1						1
Cash dividends on common stock			—						—						—						(305)						—						(305)
Other			—						—						—						—						(1)						(1)
Balance at March 31, 2025			31						$	1,222					$	8,184					$	4,284					$	(5)					$	13,685

The accompanying notes as they relate to Alabama Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

GEORGIA POWER COMPANY

CONDENSED STATEMENTS OF INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Operating Revenues:
Retail revenues															$	2,630					$	2,155
Wholesale revenues															144						58
Other revenues															263						185
Total operating revenues															3,037						2,398
Operating Expenses:
Fuel															524						389
Purchased power, non-affiliates															161						140
Purchased power, affiliates															264						181
Other operations and maintenance															634						515
Depreciation and amortization															503						425
Taxes other than income taxes															170						147
Total operating expenses															2,256						1,797
Operating Income															781						601
Other Income and (Expense):
Allowance for equity funds used during construction															48						39
Interest expense, net of amounts capitalized															(187)						(173)
Other income (expense), net															52						49
Total other income and (expense)															(87)						(85)
Earnings Before Income Taxes															694						516
Income taxes															98						79
Net Income															$	596					$	437

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Net Income															$	596					$	437
Other comprehensive income (loss):
Qualifying hedges:
Changes in fair value, net of tax of $(1) and $4, respectively															(1)						12
Reclassification adjustment for amounts included in net income, net of tax of $— and $—, respectively															—						1
Total other comprehensive income (loss)															(1)						13
Comprehensive Income															$	595					$	450

The accompanying notes as they relate to Georgia Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

GEORGIA POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

			For the Three Months Ended March 31,
			2025						2024
			(in millions)
Operating Activities:
Net income			$	596					$	437
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total			577						491
Deferred income taxes			68						31
Allowance for equity funds used during construction			(48)						(39)
Pension, postretirement, and other employee benefits			(74)						(68)
Settlement of asset retirement obligations			(66)						(70)
Storm damage cost recovery – long-term			(173)						—
Other, net			(15)						1
Changes in certain current assets and liabilities —
-Receivables			94						35
-Retail fuel cost under recovery			83						181
-Other current assets			(23)						(56)
-Accounts payable			(325)						(153)
-Accrued taxes			(355)						(281)
-Accrued compensation			(68)						(66)
-Other current liabilities			34						50
Net cash provided from operating activities			305						493
Investing Activities:
Property additions			(1,429)						(987)
Nuclear decommissioning trust fund purchases			(246)						(214)
Nuclear decommissioning trust fund sales			246						213
Cost of removal, net of salvage			(103)						(79)
Change in construction payables, net of joint owner portion			(160)						(282)
Other investing activities			(27)						(68)
Net cash used for investing activities			(1,719)						(1,417)
Financing Activities:
Decrease in notes payable, net			—						(546)
Proceeds —
Senior notes			1,600						1,400
Short-term borrowings			—						150
Redemptions and repurchases —
Short-term borrowings			—						(250)
FFB loan			(21)						(21)
Capital contributions from parent company			700						750
Payment of common stock dividends			(552)						(513)
Other financing activities			(48)						(66)
Net cash provided from financing activities			1,679						904
Net Change in Cash, Cash Equivalents, and Restricted Cash			265						(20)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			118						75
Cash, Cash Equivalents, and Restricted Cash at End of Period			$	383					$	55
Supplemental Cash Flow Information:
Cash paid during the period for —
Interest (net of $16 and $17 capitalized for 2025 and 2024, respectively)			$	188					$	169
Noncash transactions —
Accrued property additions at end of period			551						334
Right-of-use assets obtained under operating leases			2						3
Right-of-use assets obtained under finance leases			13						—

The accompanying notes as they relate to Georgia Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

GEORGIA POWER COMPANY

CONDENSED BALANCE SHEETS (UNAUDITED)

Assets						At March 31, 2025						At December 31, 2024
						(in millions)
Current Assets:
Cash and cash equivalents						$	383					$	97
Receivables —
Customer accounts, net						1,077						985
Unbilled revenues						289						341
Under recovered retail fuel clause revenues						694						713
Joint owner accounts						79						101
Affiliated						73						65
Other accounts and notes						47						92
Fossil fuel stock						370						385
Materials and supplies						948						968
Regulatory assets – asset retirement obligations						240						222
Other regulatory assets						354						373
Other current assets						330						262
Total current assets						4,884						4,604
Property, Plant, and Equipment:
In service						55,734						55,036
Less: Accumulated provision for depreciation						15,134						14,806
Plant in service, net of depreciation						40,600						40,230
Nuclear fuel, at amortized cost						623						611
Construction work in progress						3,966						3,197
Total property, plant, and equipment						45,189						44,038
Other Property and Investments:
Nuclear decommissioning trusts, at fair value						1,240						1,236
Equity investments in unconsolidated subsidiaries						42						43
Miscellaneous property and investments						200						192
Total other property and investments						1,482						1,471
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization						1,289						1,331
Deferred charges related to income taxes						601						596
Prepaid pension costs						938						897
Deferred under recovered retail fuel clause revenues						389						453
Regulatory assets – asset retirement obligations, deferred						3,408						3,436
Other regulatory assets, deferred						3,918						3,814
Other deferred charges and assets						562						615
Total deferred charges and other assets						11,105						11,142
Total Assets						$	62,660					$	61,255

The accompanying notes as they relate to Georgia Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

GEORGIA POWER COMPANY

CONDENSED BALANCE SHEETS (UNAUDITED)

Liabilities and Stockholder's Equity						At March 31, 2025						At December 31, 2024
						(in millions)
Current Liabilities:
Securities due within one year						$	971					$	966
Notes payable						200						200
Accounts payable —
Affiliated						784						984
Other						1,455						1,837
Customer deposits						257						256
Accrued taxes						427						803
Accrued interest						184						190
Accrued compensation						150						276
Operating lease obligations						171						169
Asset retirement obligations						321						309
Other regulatory liabilities						160						150
Other current liabilities						301						296
Total current liabilities						5,381						6,436
Long-term Debt						18,950						17,384
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes						4,546						4,385
Deferred credits related to income taxes						2,022						2,047
Accumulated deferred ITCs						340						343
Employee benefit obligations						194						205
Operating lease obligations, deferred						1,125						1,159
Asset retirement obligations, deferred						5,084						5,106
Other deferred credits and liabilities						592						509
Total deferred credits and other liabilities						13,903						13,754
Total Liabilities						38,234						37,574
Common Stockholder's Equity (See accompanying statements)						24,426						23,681
Total Liabilities and Stockholder's Equity						$	62,660					$	61,255

The accompanying notes as they relate to Georgia Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

GEORGIA POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY (UNAUDITED)

			Number of Common Shares Issued						Common Stock						Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total
			(in millions)
Balance at December 31, 2023			9						$	398					$	17,923					$	3,071					$	(9)					$	21,383
Net income			—						—						—						437						—						437
Capital contributions from parent company			—						—						750						—						—						750
Other comprehensive income			—						—						—						—						13						13
Cash dividends on common stock			—						—						—						(513)						—						(513)
Balance at March 31, 2024			9						$	398					$	18,673					$	2,995					$	4					$	22,070
Balance at December 31, 2024			9						$	398					$	19,708					$	3,562					$	13					$	23,681
Net income			—						—						—						596						—						596
Capital contributions from parent company			—						—						702						—						—						702
Other comprehensive income (loss)			—						—						—						—						(1)						(1)
Cash dividends on common stock			—						—						—						(552)						—						(552)
Balance at March 31, 2025			9						$	398					$	20,410					$	3,606					$	12					$	24,426

The accompanying notes as they relate to Georgia Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

MISSISSIPPI POWER COMPANY

CONDENSED STATEMENTS OF INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Operating Revenues:
Retail revenues															$	248					$	221
Wholesale revenues, non-affiliates															71						59
Wholesale revenues, affiliates															81						51
Other revenues															20						11
Total operating revenues															420						342
Operating Expenses:
Fuel and purchased power															166						111
Other operations and maintenance															84						88
Depreciation and amortization															52						47
Taxes other than income taxes															33						31
Total operating expenses															335						277
Operating Income															85						65
Other Income and (Expense):
Interest expense, net of amounts capitalized															(20)						(19)
Other income (expense), net															6						14
Total other income and (expense)															(14)						(5)
Earnings Before Income Taxes															71						60
Income taxes															16						10
Net Income															$	55					$	50

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Net Income															$	55					$	50
Other comprehensive income:
Qualifying hedges:
Changes in fair value, net of tax of $— and $2, respectively															—						5
Total other comprehensive income															—						5
Comprehensive Income															$	55					$	55

The accompanying notes as they relate to Mississippi Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

MISSISSIPPI POWER COMPANY

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

			For the Three Months Ended March 31,
			2025						2024
			(in millions)
Operating Activities:
Net income			$	55					$	50
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total			56						50
Deferred income taxes			(7)						(3)
Pension, postretirement, and other employee benefits			(5)						(4)
Settlement of asset retirement obligations			(4)						(4)
Other, net			7						7
Changes in certain current assets and liabilities —
-Receivables			(16)						21
-Retail fuel cost under recovery			(13)						3
-Fossil fuel stock			13						(13)
-Other current assets			10						—
-Accounts payable			(4)						(34)
-Accrued taxes			(64)						(59)
-Accrued compensation			(23)						(21)
-Other current liabilities			(16)						—
Net cash used for operating activities			(11)						(7)
Investing Activities:
Property additions			(72)						(80)
Contributions in aid of construction			57						1
Cost of removal, net of salvage			(8)						(12)
Change in construction payables, net of joint owner portion			(14)						(7)
Payments pursuant to LTSAs			(6)						(5)
Other investing activities			(1)						(1)
Net cash used for investing activities			(44)						(104)
Financing Activities:
Increase (decrease) in notes payable, net			(14)						8
Proceeds — Senior notes			100						150
Capital contributions from parent company			50						—
Payment of common stock dividends			(48)						(47)
Other financing activities			(1)						—
Net cash provided from financing activities			87						111
Net Change in Cash, Cash Equivalents, and Restricted Cash			32						—
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			13						38
Cash, Cash Equivalents, and Restricted Cash at End of Period			$	45					$	38
Supplemental Cash Flow Information:
Cash paid during the period for —
Interest			$	30					$	29
Noncash transactions —
Accrued property additions at end of period			22						27

The accompanying notes as they relate to Mississippi Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

MISSISSIPPI POWER COMPANY

CONDENSED BALANCE SHEETS (UNAUDITED)

Assets						At March 31, 2025						At December 31, 2024
						(in millions)
Current Assets:
Cash and cash equivalents						$	45					$	13
Receivables —
Customer accounts, net						60						45
Unbilled revenues						35						39
Affiliated						47						33
Other accounts and notes						28						24
Fossil fuel stock						43						56
Materials and supplies						103						103
Other regulatory assets						35						43
Other current assets						34						28
Total current assets						430						384
Property, Plant, and Equipment:
In service						5,765						5,697
Less: Accumulated provision for depreciation						1,871						1,833
Plant in service, net of depreciation						3,894						3,864
Construction work in progress						251						253
Total property, plant, and equipment						4,145						4,117
Other Property and Investments						150						152
Deferred Charges and Other Assets:
Deferred charges related to income taxes						27						27
Prepaid pension costs						129						124
Deferred under recovered retail fuel clause revenues						—						32
Regulatory assets – asset retirement obligations						243						243
Other regulatory assets, deferred						265						259
Accumulated deferred income taxes						78						82
Other deferred charges and assets						79						74
Total deferred charges and other assets						821						841
Total Assets						$	5,546					$	5,494

The accompanying notes as they relate to Mississippi Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

MISSISSIPPI POWER COMPANY

CONDENSED BALANCE SHEETS (UNAUDITED)

Liabilities and Stockholder's Equity						At March 31, 2025						At December 31, 2024
						(in millions)
Current Liabilities:
Securities due within one year						$	12					$	12
Notes payable						—						14
Accounts payable —
Affiliated						62						68
Other						94						83
Customer deposits						20						20
Accrued taxes						50						115
Accrued compensation						24						46
Asset retirement obligations						29						32
Over recovered retail fuel clause revenues						—						32
Other regulatory liabilities						38						5
Other current liabilities						48						75
Total current liabilities						377						502
Long-term Debt						1,780						1,681
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes						484						492
Deferred credits related to income taxes						216						219
Employee benefit obligations						64						65
Asset retirement obligations, deferred						117						116
Other cost of removal obligations						164						170
Other regulatory liabilities, deferred						109						121
Other deferred credits and liabilities						89						39
Total deferred credits and other liabilities						1,243						1,222
Total Liabilities						3,400						3,405
Common Stockholder's Equity (See accompanying statements)						2,146						2,089
Total Liabilities and Stockholder's Equity						$	5,546					$	5,494

The accompanying notes as they relate to Mississippi Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

MISSISSIPPI POWER COMPANY

CONDENSED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY (UNAUDITED)

			Number of Common Shares Issued						Common Stock						Paid-In Capital						Retained Earnings (Accumulated Deficit)						Accumulated Other Comprehensive Income (Loss)						Total
			(in millions)
Balance at December 31, 2023			1						$	38					$	4,721					$	(2,756)					$	—					$	2,003
Net income			—						—						—						50						—						50
Capital contributions from parent company			—						—						1						—						—						1
Other comprehensive income			—						—						—						—						5						5
Cash dividends on common stock			—						—						—						(47)						—						(47)
Balance at March 31, 2024			1						$	38					$	4,722					$	(2,753)					$	5					$	2,012
Balance at December 31, 2024			1						$	38					$	4,791					$	(2,745)					$	5					$	2,089
Net income			—						—						—						55						—						55
Capital contributions from parent company			—						—						51						—						—						51
Other comprehensive income			—						—						—						—						—						—
Cash dividends on common stock			—						—						—						(48)						—						(48)
Other			—						—						—						—						(1)						(1)
Balance at March 31, 2025			1						$	38					$	4,842					$	(2,738)					$	4					$	2,146

The accompanying notes as they relate to Mississippi Power are an integral part of these condensed financial statements.

Table of Contents Index to Financial Statements

SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Operating Revenues:
Wholesale revenues, non-affiliates															$	447					$	369
Wholesale revenues, affiliates															116						92
Other revenues															4						12
Total operating revenues															567						473
Operating Expenses:
Fuel															207						156
Purchased power															28						18
Other operations and maintenance															123						121
Depreciation and amortization															152						118
Taxes other than income taxes															12						10
Total operating expenses															522						423
Operating Income															45						50
Other Income and (Expense):
Interest expense, net of amounts capitalized															(26)						(29)
Other income (expense), net															3						3
Total other income and (expense)															(23)						(26)
Earnings Before Income Taxes															22						24
Income taxes (benefit)															(1)						(14)
Net Income															23						38
Net loss attributable to noncontrolling interests															(64)						(58)
Net Income Attributable to Southern Power															$	87					$	96

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Net Income															$	23					$	38
Other comprehensive income:
Qualifying hedges:
Changes in fair value, net of tax of $5 and $(4), respectively															16						(11)
Reclassification adjustment for amounts included in net income, net of tax of $(5) and $4, respectively															(14)						12
Pension and other postretirement benefit plans:
Benefit plan net gain (loss), net of tax of $— and $—, respectively															—						1
Total other comprehensive income															2						2
Comprehensive Income															25						40
Comprehensive loss attributable to noncontrolling interests															(64)						(58)
Comprehensive Income Attributable to Southern Power															$	89					$	98

The accompanying notes as they relate to Southern Power are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

			For the Three Months Ended March 31,
			2025						2024
			(in millions)
Operating Activities:
Net income			$	23					$	38
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total			158						121
Amortization of ITCs			(15)						(15)
Other, net			6						(5)
Changes in certain current assets and liabilities —
-Receivables			(11)						46
-Other current assets			5						2
-Accounts payable			(27)						(57)
-Accrued compensation			(15)						(14)
-Other current liabilities			22						5
Net cash provided from operating activities			146						121
Investing Activities:
Property additions			(187)						(28)
Change in construction payables			39						(12)
Payments pursuant to LTSAs			(13)						(11)
Other investing activities			—						7
Net cash used for investing activities			(161)						(44)
Financing Activities:
Increase in notes payable, net			—						4
Capital contributions from parent company			130						—
Capital contributions from noncontrolling interests			19						9
Distributions to noncontrolling interests			(37)						(34)
Payment of common stock dividends			(70)						(65)
Other financing activities			(3)						(3)
Net cash provided from (used for) financing activities			39						(89)
Net Change in Cash, Cash Equivalents, and Restricted Cash			24						(12)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			168						144
Cash, Cash Equivalents, and Restricted Cash at End of Period			$	192					$	132
Supplemental Cash Flow Information:
Cash paid (received) during the period for —
Interest (net of $3 and $2 capitalized for 2025 and 2024, respectively)			$	22					$	23
Income taxes, net (excludes credit transfers)			—						(9)
Noncash transactions —
Accrued property additions at end of period			99						40
Right-of-use assets obtained under operating leases			2						—

The accompanying notes as they relate to Southern Power are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Assets						At March 31, 2025						At December 31, 2024
						(in millions)
Current Assets:
Cash and cash equivalents						$	188					$	159
Receivables —
Customer accounts, net						136						122
Affiliated						28						39
Other						93						90
Materials and supplies						111						107
Other current assets						77						82
Total current assets						633						599
Property, Plant, and Equipment:
In service						14,939						14,961
Less: Accumulated provision for depreciation						4,656						4,540
Plant in service, net of depreciation						10,283						10,421
Construction work in progress						492						317
Total property, plant, and equipment						10,775						10,738
Other Property and Investments:
Intangible assets, net of amortization of $173 and $168, respectively						218						223
Net investment in sales-type leases						141						143
Total other property and investments						359						366
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization						485						484
Prepaid LTSAs						247						234
Other deferred charges and assets						238						232
Total deferred charges and other assets						970						950
Total Assets						$	12,737					$	12,653

The accompanying notes as they relate to Southern Power are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Liabilities and Stockholders' Equity						At March 31, 2025						At December 31, 2024
						(in millions)
Current Liabilities:
Securities due within one year						$	899					$	500
Accounts payable —
Affiliated						68						80
Other						119						100
Accrued taxes						44						18
Accrued interest						26						26
Operating lease obligations						29						29
Other current liabilities						82						96
Total current liabilities						1,267						849
Long-term Debt						1,802						2,180
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes						715						712
Accumulated deferred ITCs						1,426						1,440
Operating lease obligations, deferred						510						511
Other deferred credits and liabilities						268						279
Total deferred credits and other liabilities						2,919						2,942
Total Liabilities						5,988						5,971
Total Stockholders' Equity (See accompanying statements)						6,749						6,682
Total Liabilities and Stockholders' Equity						$	12,737					$	12,653

The accompanying notes as they relate to Southern Power are an integral part of these condensed consolidated financial statements.

Table of Contents Index to Financial Statements

SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)

															Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Common Stockholder's Equity						Noncontrolling Interests						Total
															(in millions)
Balance at December 31, 2023															$	1,088					$	1,846					$	(17)					$	2,917					$	3,781					$	6,698
Net income (loss)															—						96						—						96						(58)						38
Other comprehensive income															—						—						2						2						—						2
Cash dividends on common stock															—						(65)						—						(65)						—						(65)
Capital contributions from noncontrolling interests															—						—						—						—						9						9
Distributions to noncontrolling interests															—						—						—						—						(38)						(38)
Other															—						(1)						—						(1)						—						(1)
Balance at March 31, 2024															$	1,088					$	1,876					$	(15)					$	2,949					$	3,694					$	6,643

Balance at December 31, 2024															$	1,306					$	1,912					$	(2)					$	3,216					$	3,466					$	6,682
Net income (loss)															—						87						—						87						(64)						23
Capital contributions from parent company															130						—						—						130						—						130
Other comprehensive income															—						—						2						2						—						2
Cash dividends on common stock															—						(70)						—						(70)						—						(70)
Capital contributions from noncontrolling interests															—						—						—						—						19						19
Distributions to noncontrolling interests															—						—						—						—						(37)						(37)
Balance at March 31, 2025															$	1,436					$	1,929					$	—					$	3,365					$	3,384					$	6,749

The accompanying notes as they relate to Southern Power are an integral part of these condensed consolidated financial statements.

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SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Operating Revenues:
Natural gas revenues (includes revenue taxes of $63 and $53, respectively)															$	1,839					$	1,707
Total operating revenues															1,839						1,707
Operating Expenses:
Cost of natural gas															674						605
Other operations and maintenance															316						293
Depreciation and amortization															169						155
Taxes other than income taxes															97						87
Total operating expenses															1,256						1,140
Operating Income															583						567
Other Income and (Expense):
Earnings from equity method investments															39						44
Interest expense, net of amounts capitalized															(92)						(84)
Other income (expense), net															18						20
Total other income and (expense)															(35)						(20)
Earnings Before Income Taxes															548						547
Income taxes															130						138
Net Income															$	418					$	409

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

									For the Three Months Ended March 31,
															2025						2024
									(in millions)
Net Income															$	418					$	409
Other comprehensive income:
Qualifying hedges:
Changes in fair value, net of tax of $5 and $(2), respectively															11						(5)
Reclassification adjustment for amounts included in net income, net of tax of $— and $7, respectively															1						17
Total other comprehensive income															12						12
Comprehensive Income															$	430					$	421

The accompanying notes as they relate to Southern Company Gas are an integral part of these condensed consolidated financial statements.

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SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

			For the Three Months Ended March 31,
			2025						2024
			(in millions)
Operating Activities:
Net income			$	418					$	409
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total			167						155
Deferred income taxes			42						61
Other, net			(5)						(10)
Changes in certain current assets and liabilities —
-Receivables			(115)						(16)
-Natural gas for sale, net of temporary LIFO liquidation			365						237
-Other current assets			74						26
-Accounts payable			(95)						(127)
-Accrued taxes			73						7
-Accrued compensation			(60)						(55)
-Natural gas cost over recovery			(179)						(65)
-Other current liabilities			2						(24)
Net cash provided from operating activities			687						598
Investing Activities:
Property additions			(281)						(255)
Cost of removal, net of salvage			(16)						(12)
Change in construction payables, net			(6)						(40)
Other investing activities			(18)						(12)
Net cash used for investing activities			(321)						(319)
Financing Activities:
Decrease in notes payable, net			(141)						(81)
Return of capital to parent company			(23)						—
Payment of common stock dividends			(149)						(151)
Other financing activities			(10)						(3)
Net cash used for financing activities			(323)						(235)
Net Change in Cash, Cash Equivalents, and Restricted Cash			43						44
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			44						35
Cash, Cash Equivalents, and Restricted Cash at End of Period			$	87					$	79
Supplemental Cash Flow Information:
Cash paid (received) during the period for —
Interest (net of $5 and $5 capitalized for 2025 and 2024, respectively)			$	111					$	89
Income taxes, net			(1)						(3)
Noncash transactions —
Accrued property additions at end of period			104						99
Right-of-use assets obtained under operating leases			60						1
Return of capital to parent company			33						—

The accompanying notes as they relate to Southern Company Gas are an integral part of these condensed consolidated financial statements.

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SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Assets						At March 31, 2025						At December 31, 2024
						(in millions)
Current Assets:
Cash and cash equivalents						$	87					$	43
Receivables —
Customer accounts						564						399
Unbilled revenues						193						244
Other accounts and notes						42						45
Accumulated provision for uncollectible accounts						(46)						(33)
Materials and supplies						64						66
Natural gas for sale						149						388
Prepaid expenses						42						45
Other regulatory assets						136						187
Other current assets						49						55
Total current assets						1,280						1,439
Property, Plant, and Equipment:
In service						22,642						22,338
Less: Accumulated depreciation						5,996						5,887
Plant in service, net of depreciation						16,646						16,451
Construction work in progress						1,029						1,057
Total property, plant, and equipment						17,675						17,508
Other Property and Investments:
Goodwill						5,015						5,015
Equity investments in unconsolidated subsidiaries						1,312						1,279
Other intangible assets, net of amortization of $175 and $173, respectively						7						9
Miscellaneous property and investments						25						25
Total other property and investments						6,359						6,328
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization						95						38
Prepaid pension costs						196						191
Other regulatory assets, deferred						485						481
Other deferred charges and assets						144						192
Total deferred charges and other assets						920						902
Total Assets						$	26,234					$	26,177

The accompanying notes as they relate to Southern Company Gas are an integral part of these condensed consolidated financial statements.

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SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Liabilities and Stockholder's Equity						At March 31, 2025						At December 31, 2024
						(in millions)
Current Liabilities:
Securities due within one year						$	301					$	302
Notes payable						314						455
Accounts payable —
Affiliated						49						75
Other						372						437
Customer deposits						67						98
Accrued taxes						147						85
Accrued interest						74						88
Accrued compensation						70						129
Temporary LIFO liquidation						126						—
Natural gas cost over recovery						16						193
Other regulatory liabilities						67						7
Other current liabilities						127						149
Total current liabilities						1,730						2,018
Long-term Debt						8,236						8,229
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes						1,849						1,796
Deferred credits related to income taxes						743						755
Employee benefit obligations						73						78
Operating lease obligations						87						30
Other cost of removal obligations						1,875						1,846
Accrued environmental remediation						193						198
Other deferred credits and liabilities						223						231
Total deferred credits and other liabilities						5,043						4,934
Total Liabilities						15,009						15,181
Common Stockholder's Equity (See accompanying statements)						11,225						10,996
Total Liabilities and Stockholder's Equity						$	26,234					$	26,177

The accompanying notes as they relate to Southern Company Gas are an integral part of these condensed consolidated financial statements.

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SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (UNAUDITED)

															Paid-In Capital						Retained Earnings (Accumulated Deficit)						Accumulated Other Comprehensive Income (Loss)						Total
															(in millions)
Balance at December 31, 2023															$	10,836					$	(49)					$	16					$	10,803
Net income															—						409						—						409
Capital contributions from parent company															2						—						—						2
Other comprehensive income															—						—						12						12
Cash dividends on common stock															—						(151)						—						(151)
Other															—						(1)						—						(1)
Balance at March 31, 2024															$	10,838					$	208					$	28					$	11,074
Balance at December 31, 2024															$	10,863					$	85					$	48					$	10,996
Net income															—						418						—						418
Return of capital to parent company															(56)						—						—						(56)
Capital contributions from parent company															3						—						—						3
Other comprehensive income															—						—						12						12
Cash dividends on common stock															—						(149)						—						(149)
Other															—						1						—						1
Balance at March 31, 2025															$	10,810					$	355					$	60					$	11,225

The accompanying notes as they relate to Southern Company Gas are an integral part of these condensed consolidated financial statements.

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

ALABAMA POWER COMPANY

GEORGIA POWER COMPANY

MISSISSIPPI POWER COMPANY

SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES

SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

(UNAUDITED)

INDEX TO THE NOTES TO THE CONDENSED FINANCIAL STATEMENTS

Note						Page
A			Introduction			42
B			Regulatory Matters			45
C			Contingencies			47
D			Revenue from Contracts with Customers and Lease Income			49
E			Consolidated Entities and Equity Method Investments			53
F			Financing			55
G			Income Taxes			57
H			Retirement Benefits			58
I			Fair Value Measurements			61
J			Derivatives			65
K			Acquisitions and Dispositions			77
L			Segment and Related Information			77

INDEX TO APPLICABLE NOTES TO FINANCIAL STATEMENTS BY REGISTRANT

The following unaudited notes to the condensed financial statements are a combined presentation; however, information contained herein relating to any individual Registrant is filed by such Registrant on its own behalf and each Registrant makes no representation as to information related to the other Registrants. The table below indicates the Registrants to which each note applies.

			Applicable Notes
Registrant			A			B			C			D			E			F			G			H			I			J			K			L
Southern Company			l			l			l			l			l			l			l			l			l			l			l			l
Alabama Power			l			l			l			l						l			l			l			l			l						l
Georgia Power			l			l			l			l						l			l			l			l			l						l
Mississippi Power			l			l			l			l						l			l			l			l			l			l			l
Southern Power			l						l			l			l			l			l			l			l			l			l			l
Southern Company Gas			l			l			l			l			l			l			l			l			l			l						l

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

(A) INTRODUCTION

The condensed quarterly financial statements of each Registrant included herein have been prepared by such Registrant, without audit, pursuant to the rules and regulations of the SEC. The Condensed Balance Sheets at December 31, 2024 have been derived from the audited financial statements of each Registrant. In the opinion of each Registrant's management, the information regarding such Registrant furnished herein reflects all adjustments, which, except as otherwise disclosed, are of a normal recurring nature, necessary to present fairly the results of operations for the periods ended March 31, 2025 and 2024. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although each Registrant believes that the disclosures regarding such Registrant are adequate to make the information presented not misleading. Disclosures which would substantially duplicate the disclosures in the Form 10-K and details which have not changed significantly in amount or composition since the filing of the Form 10-K are generally omitted from this Quarterly Report on Form 10-Q unless specifically required by GAAP. Therefore, these Condensed Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K. Due to the seasonal variations in the demand for energy and other factors, operating results for the periods presented are not necessarily indicative of the operating results to be expected for the full year.

The preparation of financial statements in conformity with GAAP requires the use of estimates, and the actual results may differ from those estimates. Certain prior year data presented in the financial statements have been reclassified to conform to the current year presentation. These reclassifications had no impact on the overall results of operations, financial position, or cash flows of any Registrant.

Goodwill and Other Intangible Assets

Goodwill at both March 31, 2025 and December 31, 2024 was as follows:

			Goodwill
			(in millions)
Southern Company			$	5,161
Southern Company Gas:
Gas distribution operations			$	4,034
Gas marketing services			981
Southern Company Gas total			$	5,015

Goodwill is not amortized but is subject to an annual impairment test during the fourth quarter of each year, or more frequently if goodwill impairment indicators exist.

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Other intangible assets were as follows:

			At March 31, 2025												At December 31, 2024
			Gross Carrying Amount			Accumulated Amortization			Other Intangible Assets, Net						Gross Carrying Amount			Accumulated Amortization			Other Intangible Assets, Net
			(in millions)												(in millions)
Southern Company
Subject to amortization:
Customer relationships			$	212		$	(183)		$	29					$	212		$	(182)		$	30
Trade names			64			(61)			3						64			(59)			5
PPA fair value adjustments			390			(173)			217						390			(168)			222
Other			3			(3)			—						3			(3)			—
Total subject to amortization			$	669		$	(420)		$	249					$	669		$	(412)		$	257
Not subject to amortization:
FCC licenses			75			—			75						75			—			75
Total other intangible assets			$	744		$	(420)		$	324					$	744		$	(412)		$	332
Southern Power**(*)**
PPA fair value adjustments			$	390		$	(173)		$	217					$	390		$	(168)		$	222
Southern Company Gas**(*)**
Gas marketing services
Customer relationships			$	156		$	(151)		$	5					$	156		$	(150)		$	6
Trade names			26			(24)			2						26			(23)			3
Total other intangible assets			$	182		$	(175)		$	7					$	182		$	(173)		$	9

(*)All subject to amortization.

Amortization associated with other intangible assets was as follows:

						Three Months Ended March 31,
									2025			2024
									(in millions)
Southern Company(a)									$	8		$	9
Southern Power(b)									5			5
Southern Company Gas
Gas marketing services									2			2

(a)Includes $5 million recorded as a reduction to operating revenues for both periods presented.

(b)Recorded as a reduction to operating revenues.

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants:

			Southern Company						Georgia Power			Southern Power			Southern Company Gas
			(in millions)
At March 31, 2025
Cash and cash equivalents			$	2,327					$	383		$	188		$	87
Restricted cash(a):
Other current assets			5						—			4			—
Total cash, cash equivalents, and restricted cash(b)			$	2,332					$	383		$	192		$	87
At December 31, 2024
Cash and cash equivalents			$	1,070					$	97		$	159		$	43
Restricted cash(a):
Other current assets			31						21			9			1
Total cash, cash equivalents, and restricted cash(b)			$	1,101					$	118		$	168		$	44

(a)For Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects proceeds from an arbitration award held to fund future replacement costs. For Southern Company, also reflects collateral of $1 million for life insurance and long-term disability insurance, which was included at Southern Holdings and Southern Company Gas at March 31, 2025 and December 31, 2024, respectively.

(b)Total may not add due to rounding.

Natural Gas for Sale

With the exception of Nicor Gas, Southern Company Gas records natural gas inventories on a WACOG basis. For any declines in market prices below the WACOG considered to be other than temporary, an adjustment is recorded to reduce the value of natural gas inventories to market value. Nicor Gas' natural gas inventory is carried at cost on a LIFO basis. Inventory decrements occurring during the year that are restored prior to year-end are charged to cost of natural gas at the estimated annual replacement cost. Inventory decrements that are not restored prior to year-end are charged to cost of natural gas at the actual LIFO cost of the inventory layers liquidated.

Southern Company Gas recorded no material adjustments to natural gas inventories for either period presented. Nicor Gas' inventory decrement at March 31, 2025 is expected to be restored prior to year-end.

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Storm Damage Reserves

See Note 1 to the financial statements under "Storm Damage and Reliability Reserves" in Item 8 of the Form 10-K for additional information.

Storm damage reserve activity for the traditional electric operating companies during the three months ended March 31, 2025 was as follows:

			Southern Company			Alabama Power			Georgia Power			Mississippi Power
			(in millions)
Balance at December 31, 2024			$	(705)		$	70		$	(827)		$	52
Accrual			14			3			8			3
Weather-related damages			(87)			(38)			(43)			(6)
Balance at March 31, 2025			$	(778)		$	35		$	(862)		$	49

Depreciation and Amortization

See Note 5 to the financial statements under "Depreciation and Amortization" in Item 8 of the Form 10-K for additional information.

On April 1, 2025, the Mississippi PSC approved a stipulation between Mississippi Power and the Mississippi Public Utilities Staff for an $8 million increase in total annual depreciation effective January 1, 2025.

(B) REGULATORY MATTERS

See Note 2 to the financial statements in Item 8 of the Form 10-K for additional information relating to regulatory matters.

The fuel and natural gas cost recovery balances for the traditional electric operating companies and Southern Company Gas, respectively, at March 31, 2025 and December 31, 2024 were as follows:

Regulatory Clause			Balance Sheet Line Item			March 31, 2025			December 31, 2024
						(in millions)
Alabama Power
Rate ECR			Other regulatory assets, deferred			$	18		$	—
			Other regulatory liabilities, current			—			29
Georgia Power
Fuel Cost Recovery			Receivables – under recovered retail fuel clause revenues			$	694		$	713
			Deferred under recovered retail fuel clause revenues			389			453
Mississippi Power
Fuel Cost Recovery(*)			Receivables – customer accounts, net			$	13		$	—
			Deferred under recovered retail fuel clause revenues			—			32
			Over recovered retail fuel clause revenues			—			32
Southern Company Gas
Natural Gas Cost Recovery			Natural gas cost over recovery			$	16		$	193

(*)Mississippi Power also has wholesale MRA and Market Based (MB) fuel cost recovery factors. At March 31, 2025 and December 31, 2024, wholesale MRA fuel costs were over recovered $13 million and $19 million, respectively, and were included in other current liabilities on Mississippi Power's balance sheets. The wholesale MB fuel cost recovery was immaterial for both periods presented.

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Georgia Power

Nuclear Construction

Georgia Power placed Plant Vogtle Units 3 and 4 in service on July 31, 2023 and April 29, 2024, respectively. Georgia Power's net capital costs incurred through March 31, 2025 in connection with Plant Vogtle Units 3 and 4, and its approximate proportionate share of remaining capital costs to be incurred after March 31, 2025, including completion of site demobilization and remaining contractor obligations, is as follows:

			(in millions)
Total project capital cost forecast(a)(b)			$	10,732
Net investment at March 31, 2025(b)			(10,676)
Remaining estimate to complete			$	56

(a)Includes approximately $1.2 billion of costs that are not shared with the other Vogtle Owners. Excludes financing costs capitalized through AFUDC of approximately $440 million accrued through Unit 4's in-service date.

(b)Net of $1.7 billion received from Toshiba under the Guarantee Settlement Agreement and approximately $188 million in related customer refunds.

Other Construction

At March 31, 2025, Georgia Power had recorded approximately $963 million of combined capital costs, excluding AFUDC, for the projects reflected in the table below. The total certified amounts related to these projects are approximately $2.8 billion, excluding AFUDC. The ultimate outcome of these matters cannot be determined at this time.

Project			Resource			Approximate Nameplate Capacity (MW)			Projected COD			Regulatory Approval
Projects Under Construction at March 31, 2025
McGrau Ford			Battery energy storage			265			Fourth quarter 2026			2022 IRP
Plant Yates Units 8 through 10			Combustion turbine			1,326			Fourth quarter 2026 through third quarter 2027			2023 IRP Update
Various facilities			Battery energy storage			500			Second quarter 2026 through fourth quarter 2026			2023 IRP Update

Mississippi Power

Performance Evaluation Plan

On March 17, 2025, Mississippi Power submitted its annual retail PEP filing for 2025 to the Mississippi PSC, which requested a 4.0%, or $41 million, annual increase in revenues, primarily due to increases in investment and depreciation. In accordance with the PEP rate schedule, an increase of 2.0% of total retail revenues, or approximately $22 million, became effective with the first billing cycle of April 2025, subject to refund. The related proceedings are projected to conclude in summer 2025. The ultimate outcome of this matter cannot be determined at this time.

Environmental Compliance Overview Plan

On April 1, 2025, the Mississippi PSC approved Mississippi Power's annual ECO Plan filing for 2025, resulting in a $6 million annual increase in revenues effective with the first billing cycle of May 2025.

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

System Restoration Rider

On March 3, 2025, Mississippi Power submitted its annual SRR filing for 2025 to the Mississippi PSC, indicating no change in retail rates. The filing includes a request to increase the minimum annual SRR accrual from $12.6 million to $13.2 million. The ultimate outcome of this matter cannot be determined at this time.

Plant Daniel

In November 2024, Mississippi Power entered into an agreement with FP&L to acquire FP&L's 50% ownership interest in Plant Daniel Units 1 and 2. This acquisition will include a payment by FP&L to Mississippi Power of between $35 million and $37 million, which represents an estimate of the incremental cost to Mississippi Power to assume ownership of FP&L's interest, based on the timing of the completion of the transaction. On January 7, 2025, the Mississippi PSC approved Mississippi Power's request for (i) the inclusion of the acquired assets and the associated costs at Plant Daniel in Mississippi Power's retail rate base, upon completion of the transaction, (ii) the establishment of a new regulatory liability account in which all of the proceeds to be paid by FP&L will be recorded, and (iii) Mississippi Power's ability to amortize that regulatory liability by charging certain expenditures against it. On April 21, 2025, the Florida PSC preliminarily approved the transaction. Interested parties may file an objection or protest by May 12, 2025. In the absence of such a filing, the approval will become final and effective upon the issuance of a final order by the Florida PSC. The completion of the transaction is subject to the satisfaction or waiver of certain conditions, including, among other customary closing conditions, a final order from the Florida PSC. The ultimate outcome of this matter cannot be determined at this time.

Municipal and Rural Associations Tariff

On April 3, 2025, the FERC approved a settlement agreement filed by Mississippi Power and Cooperative Energy in December 2024. The settlement agreement provides for (i) a $1 million increase in annual wholesale base revenues and a refund to customers of approximately $4 million, (ii) a rate escalation of 2.5% on an annual basis in periods subsequent to December 31, 2024 and continuing through the end of the shared service agreement on December 31, 2035, and (iii) a waiver of rights by Mississippi Power and Cooperative Energy to file for any changes in non-fuel rates through the end of the term of the shared service agreement.

Southern Company Gas

Infrastructure Replacement Programs and Capital Projects

On March 26, 2025, the Illinois Supreme Court denied Nicor Gas' petition for leave to appeal $14 million of the 2019 Qualifying Infrastructure Plant disallowance. This matter is now concluded and had no impact on the current period financial statements.

(C) CONTINGENCIES

See Note 3 to the financial statements in Item 8 of the Form 10-K for information relating to various lawsuits and other contingencies.

General Litigation Matters

The Registrants are involved in various matters being litigated and regulatory matters. The ultimate outcome of such pending or potential litigation or regulatory matters against each Registrant and any subsidiaries cannot be determined at this time; however, for current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, arising from such current proceedings would have a material effect on such Registrant's financial statements.

The Registrants intend to dispute the allegations raised in and vigorously defend against the pending legal challenges discussed below; however, the ultimate outcome of each of these matters cannot be determined at this time.

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NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Southern Company and Mississippi Power

In 2010, the DOE, through a cooperative agreement with SCS, agreed to fund $270 million of the Kemper County energy facility through the grants awarded to the project by the DOE under the Clean Coal Power Initiative Round 2. In 2016, additional DOE grants in the amount of $137 million were awarded to the Kemper County energy facility. In 2018, Mississippi Power filed with the DOE its request for property closeout certification under the contract related to the $387 million of total grants received. In 2020, Mississippi Power and Southern Company executed an agreement with the DOE completing Mississippi Power's request, which enabled Mississippi Power to proceed with full dismantlement of the abandoned gasifier-related assets and site restoration activities. In connection with the DOE closeout discussions, in 2019, the Civil Division of the Department of Justice informed Southern Company and Mississippi Power of a civil investigation related to the DOE grants. In August 2023, the U.S. District Court for the Northern District of Georgia unsealed a civil action in which defendants Southern Company, SCS, and Mississippi Power are alleged to have violated certain provisions of the False Claims Act by fraudulently inducing the DOE to disburse funds pursuant to the grants. The federal government declined to intervene in the action. In October 2023, the plaintiff, a former SCS employee, filed an amended complaint, again alleging certain violations of the False Claims Act. The plaintiff seeks to recover all damages incurred personally and on behalf of the federal government caused by the defendants' alleged violations, as well as treble damages and attorneys' fees, among other relief. In February 2024, the defendants moved to dismiss the amended complaint. In August 2024, the court granted the defendants' motion in part and denied it in part, dismissing the plaintiff's False Claims Act count along with its accompanying treble damages and attorneys' fees but allowing the employment retaliation claim to proceed. In October 2024, the plaintiff requested interlocutory appeal of the court's decision, which was denied on February 25, 2025, and the defendants asserted counterclaims for conversion and misappropriation of trade secrets. In November 2024, the defendants filed a motion for judgment on the pleadings on the plaintiff's employment retaliation claim. In December 2024, the plaintiff filed a motion to dismiss the defendants' counterclaims. An adverse outcome could have a material impact on Southern Company's and Mississippi Power's financial statements.

Alabama Power

In September 2022, Mobile Baykeeper filed a citizen suit in the U.S. District Court for the Southern District of Alabama alleging that Alabama Power's plan to close the Plant Barry surface impoundment utilizing a closure-in-place methodology violates the Resource Conservation and Recovery Act (RCRA) and regulations governing CCR. Among other relief requested, Mobile Baykeeper sought a declaratory judgment that the RCRA and regulations governing CCR were being violated, preliminary and injunctive relief to prevent implementation of Alabama Power's closure plan, and the development of a closure plan that satisfies regulations governing CCR requirements. In December 2022, Alabama Power filed a motion to dismiss the case. In January 2024, the lawsuit was dismissed without prejudice by the U.S. District Court judge. In February 2024, the plaintiff filed a motion to reconsider, which was denied by the U.S. District Court judge in July 2024. In August 2024, the plaintiff filed a notice of appeal in the U.S. Court of Appeals for the Eleventh Circuit challenging the denial of the motion to reconsider the order of dismissal.

In January 2023, the EPA issued a Notice of Potential Violations (NOPV) associated with Alabama Power's plan to close the Plant Barry surface impoundment. In September 2024, Alabama Power reached a settlement with the EPA resolving two of the three allegations in the NOPV related to the groundwater monitoring system and the emergency action plan at the Plant Barry surface impoundment. The settlement did not resolve the EPA's allegation relating to Alabama Power's plan to close the Plant Barry surface impoundment. Alabama Power has affirmed to the EPA its position that it is in compliance with CCR requirements.

These matters could have a material impact on Alabama Power's and Southern Company's financial statements, including ARO estimates and cash flows. See Note 6 to the financial statements in Item 8 of the Form 10-K for a discussion of Alabama Power's ARO liabilities.

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Environmental Remediation

The Southern Company system must comply with environmental laws and regulations governing the handling and disposal of waste and releases of hazardous substances. Under these various laws and regulations, the Southern Company system could incur substantial costs to clean up affected sites. The traditional electric operating companies and the natural gas distribution utilities in Illinois and Georgia have each received authority from their respective state PSCs or other applicable state regulatory agencies to recover approved environmental remediation costs through regulatory mechanisms. These regulatory mechanisms are adjusted annually or as necessary within limits approved by the state PSCs or other applicable state regulatory agencies.

Georgia Power's environmental remediation liability was $13 million at both March 31, 2025 and December 31, 2024. Georgia Power has been designated or identified as a potentially responsible party at sites governed by the Georgia Hazardous Site Response Act and/or by the federal Comprehensive Environmental Response, Compensation, and Liability Act, and assessment and potential cleanup of such sites is expected.

Southern Company Gas' environmental remediation liability was $220 million and $222 million at March 31, 2025 and December 31, 2024, respectively, based on the estimated cost of environmental investigation and remediation associated with known former manufactured gas plant operating sites.

The ultimate outcome of these matters cannot be determined at this time; however, as a result of the regulatory treatment for environmental remediation expenses described above, the final disposition of these matters is not expected to have a material impact on the financial statements of the applicable Registrants.

Other Matters

Mississippi Power

On March 31, 2025, the Mississippi Department of Revenue (Mississippi DOR) completed an audit of sales and use taxes paid by Mississippi Power from October 2019 to July 2024 and entered a final assessment, indicating a total amount due of $29 million, including associated penalties and interest. Mississippi Power does not agree with the audit findings and has the right to file an administrative appeal with the Mississippi DOR by May 30, 2025. Mississippi Power's sales and use taxes are generally authorized for rate recovery. The ultimate outcome of this matter cannot be determined at this time.

(D) REVENUE FROM CONTRACTS WITH CUSTOMERS AND LEASE INCOME

Revenue from Contracts with Customers

The Registrants generate revenues from a variety of sources, some of which are not accounted for as revenue from contracts with customers, such as leases, derivatives, and certain cost recovery mechanisms. Included in the wholesale electric revenues of the traditional electric operating companies and Southern Power are revenues associated with affiliate transactions. These revenues are generated through long-term PPAs or short-term energy sales made in accordance with the IIC, as approved by the FERC. Amounts related to these affiliate revenues are eliminated in consolidation for Southern Company. See Note 1 to the financial statements under "Affiliate Transactions" and "Revenues" in Item 8 of the Form 10-K for additional information. See "Lease Income" herein and Note (J) for additional information on revenue accounted for under lease and derivative accounting guidance, respectively.

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The following table disaggregates revenue from contracts with customers for the three months ended March 31, 2025 and 2024:

			Southern Company			Alabama Power			Georgia Power			Mississippi Power			Southern Power			Southern Company Gas
			(in millions)
Three Months Ended March 31, 2025
Operating revenues
Retail electric revenues
Residential			$	2,065		$	805		$	1,186		$	74		$	—		$	—
Commercial			1,612			482			1,055			75			—			—
Industrial			915			390			444			81			—			—
Other			31			3			26			2			—			—
Total retail electric revenues			4,623			1,680			2,711			232			—			—
Natural gas distribution revenues
Residential			845			—			—			—			—			845
Commercial			199			—			—			—			—			199
Transportation			406			—			—			—			—			406
Industrial			18			—			—			—			—			18
Other			112			—			—			—			—			112
Total natural gas distribution revenues			1,580			—			—			—			—			1,580
Wholesale electric revenues
PPA energy revenues			415			54			84			3			284			—
PPA capacity revenues			149			28			39			17			82			—
Non-PPA revenues			71			69			9			134			62			—
Total wholesale electric revenues			635			151			132			154			428			—
Other natural gas revenues
Gas marketing services			256			—			—			—			—			256
Other			4			—			—			—			—			4
Total other natural gas revenues			260			—			—			—			—			260
Other revenues			493			83			230			20			4			—
Total revenue from contracts with customers			7,591			1,914			3,073			406			432			1,840
Other revenue sources(*)			184			98			(36)			14			135			(1)
Total operating revenues			$	7,775		$	2,012		$	3,037		$	420		$	567		$	1,839

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			Southern Company			Alabama Power			Georgia Power			Mississippi Power			Southern Power			Southern Company Gas
			(in millions)
Three Months Ended March 31, 2024
Operating revenues
Retail electric revenues
Residential			$	1,852		$	765		$	1,016		$	71		$	—		$	—
Commercial			1,471			468			932			71			—			—
Industrial			871			410			383			78			—			—
Other			30			3			25			2			—			—
Total retail electric revenues			4,224			1,646			2,356			222			—			—
Natural gas distribution revenues
Residential			745			—			—			—			—			745
Commercial			176			—			—			—			—			176
Transportation			361			—			—			—			—			361
Industrial			16			—			—			—			—			16
Other			113			—			—			—			—			113
Total natural gas distribution revenues			1,411			—			—			—			—			1,411
Wholesale electric revenues
PPA energy revenues			272			57			18			1			202			—
PPA capacity revenues			153			24			32			16			97			—
Non-PPA revenues			58			41			—			93			58			—
Total wholesale electric revenues			483			122			50			110			357			—
Other natural gas revenues
Gas marketing services			233			—			—			—			—			233
Other			5			—			—			—			—			5
Total other natural gas revenues			238			—			—			—			—			238
Other revenues			326			52			151			11			12			—
Total revenue from contracts with customers			6,682			1,820			2,557			343			369			1,649
Other revenue sources(*)			(36)			(29)			(159)			(1)			104			58
Total operating revenues			$	6,646		$	1,791		$	2,398		$	342		$	473		$	1,707

(*)Other revenue sources relate to revenues from customers accounted for as derivatives and leases, alternative revenue programs at Southern Company Gas, and cost recovery mechanisms and revenues (including those related to fuel costs) that meet other scope exceptions for revenues from contracts with customers at the traditional electric operating companies.

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Contract Balances

The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers at March 31, 2025 and December 31, 2024:

			Southern Company			Alabama Power			Georgia Power			Mississippi Power			Southern Power			Southern Company Gas
			(in millions)
Accounts Receivable
At March 31, 2025			$	3,006		$	694		$	1,200		$	124		$	106		$	771
At December 31, 2024			3,048			783			1,244			113			106			660
Contract Assets
At March 31, 2025			$	397		$	4		$	231		$	—		$	—		$	73
At December 31, 2024			323			3			184			—			—			72
Contract Liabilities
At March 31, 2025			$	190		$	9		$	71		$	1		$	1		$	—
At December 31, 2024			140			11			34			—			2			3

Contract assets for Georgia Power primarily relate to unregulated service agreements, where payment is contingent on project completion, unbilled open access transmission tariff charges from 2024, and retail customer fixed bill programs, where the payment is contingent upon Georgia Power's continued performance and the customer's continued participation in the program over a one-year contract term. See Note 2 to the financial statements under "Georgia Power – Storm Damage Recovery" in Item 8 of the Form 10-K for additional information regarding unbilled open access transmission tariff charges. Contract liabilities for Georgia Power primarily relate to cash collections recognized in advance of revenue for unregulated service agreements. Southern Company Gas' contract assets relate to work performed on an energy efficiency enhancement and upgrade contract with the U.S. General Services Administration. Southern Company Gas received cash advances totaling approximately $68 million from a third-party financial institution to fund work performed. These advances have been accounted for as long-term debt on the balance sheets. See Note 1 to the financial statements under "Affiliate Transactions" in Item 8 of the Form 10-K for additional information regarding the construction contract. At March 31, 2025 and December 31, 2024, Southern Company's unregulated distributed generation business had contract assets of $90 million and $67 million, respectively, and contract liabilities of $109 million and $95 million, respectively, for outstanding performance obligations, all of which are expected to be satisfied within one year.

Revenues recognized in the three months ended March 31, 2025, which were included in contract liabilities at December 31, 2024, were $28 million for Southern Company and immaterial for the other Registrants. Contract liabilities are primarily classified as current on the balance sheets as the corresponding revenues are generally expected to be recognized within one year.

Remaining Performance Obligations

Southern Company's subsidiaries may enter into long-term contracts with customers in which revenues are recognized as performance obligations are satisfied over the contract term. For the traditional electric operating companies and Southern Power, these contracts primarily relate to PPAs whereby electricity and generation capacity are provided to a customer. The revenue recognized for the delivery of electricity is variable; however, certain PPAs include a fixed payment for fixed generation capacity over the term of the contract. Southern Company's unregulated distributed generation business also has partially satisfied performance obligations related

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to certain fixed price contracts. Revenues from contracts with customers related to these performance obligations remaining at March 31, 2025 are expected to be recognized as follows:

			2025 (remaining)			2026			2027			2028			2029			Thereafter
			(in millions)
Southern Company			$	763		$	472		$	394		$	343		$	309		$	2,636
Alabama Power			63			5			3			1			—			—
Georgia Power			60			38			16			15			2			27
Mississippi Power(*)			47			66			69			73			—			—
Southern Power(*)			260			331			340			316			312			2,609

(*)Includes performance obligations related to affiliate PPAs with Georgia Power. See Note 1 to the financial statements under "Affiliate Transactions" in Item 8 of the Form 10-K for additional information.

Lease Income

Lease income for the three months ended March 31, 2025 and 2024 is as follows:

			Southern Company			Alabama Power			Georgia Power			Mississippi Power			Southern Power			Southern Company Gas
			(in millions)
For the Three Months Ended March 31, 2025
Lease income - interest income on sales-type leases			$	6		$	—		$	—		$	4		$	2		$	—
Lease income - operating leases			33			2			7			1			37			9
Variable lease income			81			—			—			—			89			—
Total lease income			$	120		$	2		$	7		$	5		$	128		$	9
For the Three Months Ended March 31, 2024
Lease income - interest income on sales-type leases			$	5		$	—		$	—		$	3		$	2		$	—
Lease income - operating leases			35			3			7			1			21			9
Variable lease income			72			—			—			—			79			—
Total lease income			$	112		$	3		$	7		$	4		$	102		$	9

Lease payments received under tolling arrangements and PPAs consist of either scheduled payments or variable payments based on the amount of energy produced by the underlying electric generating units. Lease income related to PPAs is included in wholesale revenues for Alabama Power, Georgia Power, and Southern Power.

(E) CONSOLIDATED ENTITIES AND EQUITY METHOD INVESTMENTS

See Note 7 to the financial statements in Item 8 of the Form 10-K for additional information.

Southern Company

At March 31, 2025 and December 31, 2024, Southern Holdings had equity method investments totaling $122 million and $128 million, respectively, primarily related to investments in venture capital funds focused on energy and utility investments. Earnings/losses from these investments were immaterial for all periods presented.

Southern Power

Variable Interest Entities

Southern Power has certain subsidiaries that are determined to be VIEs. Southern Power is considered the primary beneficiary of these VIEs because it controls the most significant activities of the VIEs, including operating and

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maintaining the respective assets, and has the obligation to absorb expected losses of these VIEs to the extent of its equity interests.

SP Solar and SP Wind

At March 31, 2025 and December 31, 2024, SP Solar had total assets of $5.3 billion and $5.4 billion, respectively, total liabilities of $364 million and $372 million, respectively, and noncontrolling interests of $0.9 billion and $1.0 billion, respectively. Cash distributions from SP Solar are allocated 67% to Southern Power and 33% to the limited partner in accordance with their partnership interest percentage. Under the terms of the limited partnership agreement, distributions without limited partner consent are limited to available cash and SP Solar is obligated to distribute all such available cash to its partners each quarter. Available cash includes all cash generated in the quarter subject to the maintenance of appropriate operating reserves.

At March 31, 2025 and December 31, 2024, SP Wind had total assets of $2.0 billion, total liabilities of $201 million and $177 million, respectively, and noncontrolling interests of $35 million. Under the terms of the limited liability agreement, distributions without Class A member consent are limited to available cash and SP Wind is obligated to distribute all such available cash to its members each quarter. Available cash includes all cash generated in the quarter subject to the maintenance of appropriate operating reserves. Cash distributions from SP Wind are generally allocated 60% to Southern Power and 40% to the three financial investors in accordance with the limited liability agreement.

Southern Power consolidates both SP Solar and SP Wind, as the primary beneficiary, since it controls the most significant activities of each entity, including operating and maintaining their assets. Certain transfers and sales of the assets in the VIEs are subject to partner consent and the liabilities are non-recourse to the general credit of Southern Power. Liabilities consist of customary working capital items and do not include any long-term debt.

Other Variable Interest Entities

Southern Power has other consolidated VIEs that relate to certain subsidiaries that have either sold noncontrolling interests to tax equity investors or acquired less than a 100% interest from facility developers. These entities are considered VIEs because the arrangements are structured similar to a limited partnership and the noncontrolling members do not have substantive kick-out rights.

At March 31, 2025 and December 31, 2024, the other VIEs had total assets of $1.6 billion, total liabilities of $227 million and $224 million, respectively, and noncontrolling interests of $678 million and $691 million, respectively. Under the terms of the partnership agreements, distributions of all available cash are required each month or quarter and additional distributions require partner consent.

Southern Company Gas

The carrying amounts of Southern Company Gas' equity method investments at March 31, 2025 and December 31, 2024 were as follows:

Investment Balance			March 31, 2025			December 31, 2024
			(in millions)
SNG			$	1,274		$	1,245
Other			38			34
Total			$	1,312		$	1,279

The earnings from Southern Company Gas' equity method investment related to SNG were $39 million and $44 million for the three months ended March 31, 2025 and 2024, respectively. The earnings from Southern Company Gas' other equity method investments were immaterial for all periods presented.

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(F) FINANCING

Bank Credit Arrangements

See Note 8 to the financial statements under "Bank Credit Arrangements" in Item 8 of the Form 10-K for additional information.

At March 31, 2025, committed credit arrangements with banks were as follows:

			Expires
Company			2025			2026			2027			2029			2030						Total						Unused																								Expires within One Year
			(in millions)
Southern Company parent(a)			$	—		$	—		$	500		$	—		$	2,500					$	3,000					$	2,999																							$	—
Alabama Power(b)			—			665			—			700			—						1,365						1,364																								—
Georgia Power			—			—			—			—			2,050						2,050						2,026																								—
Mississippi Power(a)			—			—			125			—			150						275						275																								—
Southern Power(a)(c)			—			—			—			—			600						600						600																								—
Southern Company Gas(d)			—			—			—			1,600			—						1,600						1,598																								—
SEGCO			30			—			—			—			—						30						30																								30
Southern Company			$	30		$	665		$	625		$	2,300		$	5,300					$	8,920					$	8,892																							$	30

(a)Arrangement expiring in 2030 represents a $3.25 billion combined arrangement for Southern Company, Mississippi Power, and Southern Power allowing for flexible sublimits. Pursuant to the combined facility, the allocations among Southern Company, Southern Power, and Mississippi Power may be adjusted.

(b)Includes $15 million expiring in 2026 at Alabama Property Company, a wholly-owned subsidiary of Alabama Power, of which $14 million was unused at March 31, 2025. Alabama Power is not party to this arrangement.

(c)Does not include Southern Power Company's $75 million and $100 million continuing letter of credit facilities for standby letters of credit, expiring in 2027 and 2026, respectively, of which $17 million and $4 million, respectively, was unused at March 31, 2025. Southern Power's subsidiaries are not parties to its bank credit arrangements or letter of credit facilities.

(d)Southern Company Gas, as the parent entity, guarantees the obligations of Southern Company Gas Capital, which is the borrower of $800 million of the credit arrangement expiring in 2029. Southern Company Gas' committed credit arrangement expiring in 2029 also includes $800 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 2029, the allocations between Southern Company Gas Capital and Nicor Gas may be adjusted.

As reflected in the table above, in March 2025, (i) Southern Company and Southern Power amended and restated their combined multi-year credit arrangement to include Mississippi Power, increase the total credit arrangement from $2.45 billion to $3.25 billion (currently allocated $2.50 billion for Southern Company, $600 million for Southern Power, and $150 million for Mississippi Power), and extend the maturity date from 2029 to 2030; (ii) Southern Company increased its $150 million credit arrangement to $500 million and extended the maturity date from 2025 to 2027; (iii) Georgia Power increased its $1.75 billion credit arrangement to $2.05 billion and extended the maturity date from 2029 to 2030; and (iv) Southern Company Gas Capital, along with Nicor Gas, increased its $1.5 billion credit arrangement to $1.6 billion (currently allocated $800 million for each of Southern Company Gas Capital and Nicor Gas). Also in March 2025, (i) Georgia Power terminated $300 million of credit arrangements expiring in 2025, (ii) Mississippi Power terminated $150 million of credit arrangements expiring in 2027, and (iii) Nicor Gas terminated a $100 million credit arrangement expiring in 2025. Alabama Power and Southern Company Gas Capital, along with Nicor Gas, entered into agreements in March 2025 to extend the maturity date of each of their respective multi-year credit agreements in May 2025 from 2029 to 2030.

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.

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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 provisions to other indebtedness (including guarantee obligations) that are restricted only to the indebtedness of the individual company. The 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. At March 31, 2025, 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 certain revenue bonds of the traditional electric operating companies and the commercial paper programs of the Registrants, Nicor Gas, and SEGCO. At March 31, 2025, outstanding variable rate demand revenue bonds of the traditional electric operating companies with allocated liquidity support totaled approximately $1.5 billion (comprised of approximately $796 million at Alabama Power, $667 million at Georgia Power, and $69 million at Mississippi Power). In addition, at March 31, 2025, Alabama Power and Georgia Power had approximately $207 million and $386 million, respectively, of fixed rate revenue bonds outstanding that are required to be remarketed within the next 12 months. Alabama Power's $207 million of fixed rate revenue bonds are classified as securities due within one year on its balance sheets as they are not covered by long-term committed credit. All other variable rate demand revenue bonds and fixed rate revenue bonds required to be remarketed within the next 12 months are classified as long-term debt on the balance sheets as a result of available long-term committed credit.

Equity Distribution Agreement

See Note 8 to the financial statements under "Equity Distribution Agreement" in Item 8 of the Form 10-K for additional information.

The table below reflects shares of Southern Company common stock sold under separate forward sale contracts with forward purchasers during the three months ended March 31, 2025.

Shares Sold			Initial Forward Price per Share			To be Settled On or Before
292,694(a)			$83.3293			December 31, 2025
563,386			$87.9027			December 31, 2025
1,000,000			$88.7502			June 30, 2026
1,000,000			$88.7739			June 30, 2026
1,000,000			$91.2856			June 30, 2026
1,000,000			$89.1444			June 30, 2026
1,000,000			$88.8490			June 30, 2026
1,000,000			$88.8903			June 30, 2026
314,609(b)			$90.9196(b)			June 30, 2026

(a)The total number of shares sold under this forward sale contract is 436,614, of which the first 143,920 shares were sold in December 2024.

(b)The total number of shares sold under this forward sale contract is 1,000,000, of which the remaining 685,391 shares were sold subsequent to March 31, 2025. The initial forward price was determined after the completion of sales by the forward seller in April 2025.

As of March 31, 2025, Southern Company had entered into separate forward sale contracts with forward purchasers for a total of 10,000,000 shares of common stock, of which 9,314,609 shares had been sold by the forward sellers, and no shares had been settled under the forward sale contracts.

In April 2025, Southern Company entered into another separate forward sale contract with a forward purchaser for the sale of 1,255,000 shares of its common stock with an initial forward price of $91.0566 per share, to be settled on or before June 30, 2026.

Each initial forward price is subject to adjustment under certain circumstances as specified in the forward sales contract. Southern Company may settle these forward transactions in shares, cash, or net shares.

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Earnings per Share

For Southern Company, the only difference in computing basic and diluted earnings per share (EPS) is attributable to awards outstanding under stock-based compensation plans, forward sale contracts pursuant to the equity distribution agreement, and convertible senior notes. EPS dilution resulting from stock-based compensation plans and the forward sale contracts is determined using the treasury stock method, and EPS dilution resulting from the convertible senior notes is determined using the net share settlement method. See "Equity Distribution Agreement" herein and Note 8 to the financial statements under "Convertible Senior Notes" and "Equity Distribution Agreement" and Note 12 to the financial statements in Item 8 of the Form 10-K for additional information. Shares used to compute diluted EPS were as follows:

						Three Months Ended March 31,
									2025			2024
									(in millions)
As reported shares									1,100			1,094
Effect of stock-based compensation									5			6
Diluted shares									1,105			1,100

For all periods presented, an immaterial number of stock-based compensation awards was excluded from the diluted EPS calculation because the awards were anti-dilutive.

For the three months ended March 31, 2025, dilution resulting from convertible senior notes and forward sale contracts was immaterial.

(G) INCOME TAXES

See Note 10 to the financial statements in Item 8 of the Form 10-K for additional tax information.

Current and Deferred Income Taxes

In 2024, Alabama Power, Georgia Power, and Southern Power entered into agreements with non-affiliated parties to transfer ITCs and PTCs at a discount to the generated credit value in 2024, 2025, and 2026. In the first quarter 2025, Alabama Power, Georgia Power, and Southern Power received cash of $44 million, $23 million, and $2 million, respectively, from 2024 credits transferred. The discount is recorded as a reduction in tax credits recognized in the financial statements and does not have a material impact on results of operations. The Southern Company system continues to explore the ability to efficiently monetize its tax credits through third-party transfer agreements.

Effective Tax Rate

Southern Company's effective tax rate is typically lower than the statutory rate due to employee stock plans' dividend deduction, non-taxable AFUDC equity at the traditional electric operating companies, flowback of excess deferred income taxes at the regulated utilities, and federal income tax benefits from ITCs and PTCs.

Details of significant changes in the effective tax rate for the applicable Registrants are provided herein.

Southern Company

Southern Company's effective tax rate was 18.1% for the three months ended March 31, 2025 compared to 17.2% for the corresponding period in 2024. The effective tax rate increase was primarily due to a decrease in the flowback of certain excess deferred income taxes at Alabama Power, partially offset by an increase in the generation of advanced nuclear PTCs at Georgia Power and the flowback of excess state deferred income taxes at Georgia Power.

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Alabama Power

Alabama Power's effective tax rate was 22.8% for the three months ended March 31, 2025 compared to 20.4% for the corresponding period in 2024. The effective tax rate increase was primarily due to a decrease in the flowback of certain excess deferred income taxes.

Georgia Power

Georgia Power's effective tax rate was 14.2% for the three months ended March 31, 2025 compared to 15.3% for the corresponding period in 2024. The effective tax rate decrease was primarily due to an increase in the generation of advanced nuclear PTCs and the flowback of excess state deferred income taxes.

Mississippi Power

Mississippi Power's effective tax rate was 22.9% for the three months ended March 31, 2025 compared to 17.3% for the corresponding period in 2024. The effective tax rate increase was primarily due to a decrease in the flowback of certain excess deferred income taxes.

Southern Power

Southern Power's effective tax benefit rate was (5.3)% for the three months ended March 31, 2025 compared to (57.1)% for the corresponding period in 2024. The effective tax rate increase was primarily due to a change in pre-tax earnings attributable to Southern Power, including the impact of accelerated depreciation related to the repowering of the Kay Wind facility. See Note (K) under "Southern Power – Wind Repowering Projects" herein for additional information.

Southern Company Gas

Southern Company Gas' effective tax rate was 23.7% for the three months ended March 31, 2025 compared to 25.2% for the corresponding period in 2024. The effective tax rate decrease was primarily due to an increase in the flowback of excess state deferred income taxes.

(H) RETIREMENT BENEFITS

The Southern Company system has a qualified defined benefit, trusteed, pension plan covering substantially all employees, with the exception of employees at PowerSecure. The qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended. No mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2025. The Southern Company system also provides certain non-qualified defined benefits for a select group of management and highly compensated employees, which are funded on a cash basis. In addition, the Southern Company system provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional electric operating companies fund other postretirement trusts to the extent required by their respective regulatory commissions.

See Note 11 to the financial statements in Item 8 of the Form 10-K for additional information.

On each Registrant's condensed statements of income, the service cost component of net periodic benefit costs is included in other operations and maintenance expenses and all other components of net periodic benefit costs are included in other income (expense), net. Components of the net periodic benefit costs for the three months ended March 31, 2025 and 2024 are presented in the following tables.

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			Southern Company						Alabama Power						Georgia Power						Mississippi Power						Southern Power						Southern Company Gas
			(in millions)
Three Months Ended March 31, 2025
Pension Plans
Service cost			$	66					$	15					$	16					$	3					$	1					$	7
Interest cost			166						39						49						7						2						11
Expected return on plan assets			(320)						(78)						(99)						(15)						(4)						(22)
Amortization:
Prior service costs			—						—						—						—						—						(1)
Regulatory asset			—						—						—						—						—						4
Net loss			9						2						4						1						1						—
Net periodic pension income			$	(79)					$	(22)					$	(30)					$	(4)					$	—					$	(1)
Postretirement Benefits
Service cost			$	3					$	1					$	1					$	—					$	—					$	—
Interest cost			17						4						6						1						—						2
Expected return on plan assets			(23)						(9)						(8)						—						—						(2)
Amortization:
Prior service costs			1						—						—						—						—						—
Regulatory asset			—						—						—						—						—						2
Net gain			(3)						—						—						(1)						—						(2)
Net periodic postretirement benefit income			$	(5)					$	(4)					$	(1)					$	—					$	—					$	—

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			Southern Company						Alabama Power						Georgia Power						Mississippi Power						Southern Power						Southern Company Gas
			(in millions)
Three Months Ended March 31, 2024
Pension Plans
Service cost			$	73					$	17					$	18					$	3					$	2					$	7
Interest cost			159						37						48						7						2						10
Expected return on plan assets			(316)						(77)						(99)						(14)						(4)						(21)
Amortization:
Prior service costs			—						—						—						—						—						(1)
Regulatory asset			—						—						—						—						—						4
Net loss			14						4						5						—						—						—
Net periodic pension income			$	(70)					$	(19)					$	(28)					$	(4)					$	—					$	(1)
Postretirement Benefits
Service cost			$	4					$	1					$	1					$	—					$	—					$	—
Interest cost			16						4						6						1						—						2
Expected return on plan assets			(22)						(9)						(8)						—						—						(2)
Amortization:
Prior service costs			1						—						—						—						—						—
Regulatory asset			—						—						—						—						—						2
Net gain			(4)						—						(1)						(1)						—						(1)
Net periodic postretirement benefit cost (income)			$	(5)					$	(4)					$	(2)					$	—					$	—					$	1

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(I) FAIR VALUE MEASUREMENTS

At March 31, 2025, assets and liabilities measured at fair value on a recurring basis during the period, together with their associated level of the fair value hierarchy, were as follows:

			Fair Value Measurements Using
At March 31, 2025			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Net Asset Value as a Practical Expedient (NAV)						Total
			(in millions)
Southern Company
Assets:
Energy-related derivatives(a)			$	23					$	203					$	—					$	—					$	226
Interest rate derivatives			—						5						—						—						5
Investments in trusts:(b)
Domestic equity			814						236						—						—						1,050
Foreign equity			152						186						—						—						338
U.S. Treasury and government agency securities			—						373						—						—						373
Municipal bonds			—						49						—						—						49
Pooled funds – fixed income			—						6						—						—						6
Corporate bonds			—						474						—						—						474
Mortgage- and asset-backed securities			—						117						—						—						117
Private equity			—						—						—						182						182
Cash and cash equivalents			1						—						—						—						1
Other			25						2						—						9						36
Investments, available-for-sale:
U.S. Treasury and government agency securities			1						6						—						—						7
Corporate bonds			1						2						—						—						3
Mortgage- and asset-backed securities			—						11						—						—						11
Cash equivalents and restricted cash			1,560						18						—						—						1,578
Other investments			10						33						8						—						51
Total			$	2,587					$	1,721					$	8					$	191					$	4,507
Liabilities:
Energy-related derivatives(a)			$	6					$	57					$	—					$	—					$	63
Interest rate derivatives			—						234						—						—						234
Foreign currency derivatives			—						161						—						—						161
Contingent consideration			3						—						14						—						17
Other			—						13						11						—						24
Total			$	9					$	465					$	25					$	—					$	499

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			Fair Value Measurements Using
At March 31, 2025			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Net Asset Value as a Practical Expedient (NAV)						Total
			(in millions)
Alabama Power
Assets:
Energy-related derivatives			$	—					$	67					$	—					$	—					$	67
Nuclear decommissioning trusts:(b)
Domestic equity			446						227						—						—						673
Foreign equity			152						—						—						—						152
U.S. Treasury and government agency securities			—						16						—						—						16
Municipal bonds			—						1						—						—						1
Corporate bonds			—						295						—						—						295
Mortgage- and asset-backed securities			—						33						—						—						33
Private equity			—						—						—						182						182
Other			8						1						—						9						18
Cash equivalents			673						18						—						—						691
Other investments			—						33						—						—						33
Total			$	1,279					$	691					$	—					$	191					$	2,161
Liabilities:
Energy-related derivatives			$	—					$	17					$	—					$	—					$	17
Georgia Power
Assets:
Energy-related derivatives			$	—					$	64					$	—					$	—					$	64
Nuclear decommissioning trusts:(b)
Domestic equity			368						1						—						—						369
Foreign equity			—						185						—						—						185
U.S. Treasury and government agency securities			—						357						—						—						357
Municipal bonds			—						48						—						—						48
Corporate bonds			—						179						—						—						179
Mortgage- and asset-backed securities			—						84						—						—						84
Other			17						1						—						—						18
Cash equivalents			270						—						—						—						270
Total			$	655					$	919					$	—					$	—					$	1,574
Liabilities:
Energy-related derivatives			$	—					$	18					$	—					$	—					$	18

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			Fair Value Measurements Using
At March 31, 2025			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Net Asset Value as a Practical Expedient (NAV)						Total
			(in millions)
Mississippi Power
Assets:
Energy-related derivatives			$	—					$	45					$	—					$	—					$	45
Cash equivalents			28						—						—						—						28
Total			$	28					$	45					$	—					$	—					$	73
Liabilities:
Energy-related derivatives			$	—					$	20					$	—					$	—					$	20
Southern Power
Assets:
Energy-related derivatives			$	—					$	6					$	—					$	—					$	6
Cash equivalents			73						—						—						—						73
Total			$	73					$	6					$	—					$	—					$	79
Liabilities:
Foreign currency derivatives			$	—					$	32					$	—					$	—					$	32
Contingent consideration			3						—						14						—						17
Other			—						13						11						—						24
Total			$	3					$	45					$	25					$	—					$	73
Southern Company Gas
Assets:
Energy-related derivatives(a)			$	23					$	21					$	—					$	—					$	44
Non-qualified deferred compensation trusts:
Domestic equity			—						8						—						—						8
Foreign equity			—						1						—						—						1
Pooled funds – fixed income			—						6						—						—						6
Cash and cash equivalents			1						—						—						—						1
Cash equivalents			71						—						—						—						71
Total			$	95					$	36					$	—					$	—					$	131
Liabilities:
Energy-related derivatives(a)			$	6					$	2					$	—					$	—					$	8
Interest rate derivatives			—						66						—						—						66
Total			$	6					$	68					$	—					$	—					$	74

(a)Excludes cash collateral of $5 million.

(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 to the financial statements under "Nuclear Decommissioning" in Item 8 of the Form 10-K for additional information.

Southern Company, Alabama Power, and Georgia Power continue to elect the option to fair value investment securities held in the nuclear decommissioning trust funds. The fair value of the funds, including reinvested interest and dividends and excluding the funds' expenses, increased (decreased) by the amounts shown in the table below for

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the three months ended March 31, 2025 and 2024. The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.

						Three Months Ended March 31,
Fair value increases (decreases)									2025			2024
									(in millions)
Southern Company									$	(6)		$	103
Alabama Power									(13)			68
Georgia Power									7			35

Valuation Methodologies

The energy-related derivatives primarily consist of exchange-traded and over-the-counter financial products for natural gas and physical power products, including, from time to time, basis swaps. These are standard products used within the energy industry and are valued using the market approach. The inputs used are mainly from observable market sources, such as forward natural gas prices, power prices, implied volatility, and overnight index swap interest rates. Interest rate derivatives are also standard over-the-counter products that are valued using observable market data and assumptions commonly used by market participants. The fair value of interest rate derivatives reflects the net present value of expected payments and receipts under the swap agreement based on the market's expectation of future interest rates. Additional inputs to the net present value calculation may include the contract terms, counterparty credit risk, and occasionally, implied volatility of interest rate options. The fair value of cross-currency swaps reflects the net present value of expected payments and receipts under the swap agreement based on the market's expectation of future foreign currency exchange rates. Additional inputs to the net present value calculation may include the contract terms, counterparty credit risk, and discount rates. The interest rate derivatives and cross-currency swaps are categorized as Level 2 under Fair Value Measurements as these inputs are based on observable data and valuations of similar instruments. See Note (J) for additional information on how these derivatives are used.

For fair value measurements of the investments within the nuclear decommissioning trusts and the non-qualified deferred compensation trusts, external pricing vendors are designated for each asset class with each security specifically assigned a primary pricing source. For investments held within commingled funds, fair value is determined at the end of each business day through the net asset value, which is established by obtaining the underlying securities' individual prices from the primary pricing source. A market price secured from the primary source vendor is then evaluated by management in its valuation of the assets within the trusts. As a general approach, fixed income market pricing vendors gather market data (including indices and market research reports) and integrate relative credit information, observed market movements, and sector news into proprietary pricing models, pricing systems, and mathematical tools. Dealer quotes and other market information, including live trading levels and pricing analysts' judgments, are also obtained when available.

The NRC requires licensees of commissioned nuclear power reactors to establish a plan for providing reasonable assurance of funds for future decommissioning. See Note 6 to the financial statements under "Nuclear Decommissioning" in Item 8 of the Form 10-K for additional information.

Southern Company's investments, available for sale relate to a wholly-owned subsidiary that insures various risk exposures of Southern Company and its subsidiaries. Corporate and municipal bonds, government agency securities, and commercial paper are valued using pricing models maximizing the use of observable inputs for similar securities, including basing value on yields currently available on comparable securities of issues with similar credit ratings. Mortgage- and asset-backed securities are valued through an analysis of the underlying assets and a review of the documentation, including financials, the manager's valuation methodology in valuing their underlying assets, the types of assets and risks involved, and the investor's exit and termination parameters.

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Southern Power has contingent payment obligations related to two of its acquisitions whereby it is primarily obligated to make generation-based payments to the seller, commencing at the commercial operation of each facility and continuing through 2026 and 2036, respectively. The obligations are primarily categorized as Level 3 under Fair Value Measurements as the fair value is determined using significant unobservable inputs for the forecasted facility's generation in MW-hours, as well as other inputs such as a fixed dollar amount per MW-hour, and a discount rate. The fair value of the obligations reflects the net present value of expected payments and any periodic change arising from forecasted generation is expected to be immaterial.

Southern Power also has payment obligations through 2040 whereby it must reimburse the transmission owners for interconnection facilities and network upgrades constructed to support connection of a Southern Power generating facility to the transmission system. The obligations are categorized as Level 2 under Fair Value Measurements as the fair value is determined using observable inputs for the contracted amounts and reimbursement period, as well as a discount rate. The fair value of the obligations reflects the net present value of expected payments.

"Other investments" primarily includes investments traded in the open market that have maturities greater than 90 days, which are categorized as Level 2 under Fair Value Measurements and are comprised of corporate bonds, bank certificates of deposit, treasury bonds, and/or agency bonds.

At March 31, 2025, the fair value measurements of private market investments held in Alabama Power's nuclear decommissioning trusts that are calculated at net asset value per share (or its equivalent) as a practical expedient totaled $191 million and unfunded commitments related to the private market investments totaled $96 million. Private market investments include high-quality private equity funds across several market sectors, funds that invest in real estate assets, and a private credit fund. Private market funds do not have redemption rights. Distributions from these funds will be received as the underlying investments in the funds are liquidated.

At March 31, 2025, other financial instruments for which the carrying amount did not equal fair value were as follows:

			Southern Company**(*)**			Alabama Power			Georgia Power			Mississippi Power			Southern Power			Southern Company Gas**(*)**
			(in billions)
Long-term debt, including securities due within one year:
Carrying amount			$	67.8		$	11.7		$	19.7		$	1.8		$	2.7		$	8.5
Fair value			63.2			10.4			18.1			1.6			2.6			7.5

(*)The carrying amount of Southern Company Gas' long-term debt includes fair value adjustments from the effective date of the 2016 merger with Southern Company. Southern Company Gas amortizes the fair value adjustments over the remaining lives of the respective bonds, the latest being through 2043.

The fair values are determined using Level 2 measurements and are based on quoted market prices for the same or similar issues or on the current rates available to the Registrants.

(J) DERIVATIVES

The Registrants are exposed to market risks, including commodity price risk, interest rate risk, weather risk, and occasionally foreign currency exchange rate risk. To manage the volatility attributable to these exposures, each company nets its exposures, where possible, to take advantage of natural offsets and enters into various derivative transactions for the remaining exposures pursuant to each company's policies in areas such as counterparty exposure and risk management practices. Each company's policy is that derivatives are to be used primarily for hedging purposes and mandates strict adherence to all applicable risk management policies. Derivative positions are monitored using techniques including, but not limited to, market valuation, value at risk, stress testing, and sensitivity analysis. Derivative instruments are recognized at fair value in the balance sheets as either assets or liabilities and are presented on a net basis. See Note (I) for additional fair value information. In the statements of cash flows, any cash impacts of settled energy-related and interest rate derivatives are recorded as operating activities. Any cash impacts of settled foreign currency derivatives are classified as operating or financing activities

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(UNAUDITED)

to correspond with the classification of the hedged interest or principal, respectively. See Note 1 to the financial statements under "Financial Instruments" in Item 8 of the Form 10-K for additional information.

Energy-Related Derivatives

The Subsidiary Registrants enter into energy-related derivatives to hedge exposures to electricity, natural gas, and other fuel price changes. However, due to cost-based rate regulations and other various cost recovery mechanisms, the traditional electric operating companies and the natural gas distribution utilities have limited exposure to market volatility in energy-related commodity prices. Each of the traditional electric operating companies and certain of the natural gas distribution utilities of Southern Company Gas manage fuel-hedging programs, implemented per the guidelines of their respective state PSCs or other applicable state regulatory agencies, through the use of financial derivative contracts, which are expected to continue to mitigate price volatility. The traditional electric operating companies (with respect to wholesale generating capacity) and Southern Power have limited exposure to market volatility in energy-related commodity prices because their long-term sales contracts shift substantially all fuel cost responsibility to the purchaser. However, the traditional electric operating companies and Southern Power may be exposed to market volatility in energy-related commodity prices to the extent any uncontracted capacity is used to sell electricity. Southern Company Gas retains exposure to price changes that can, in a volatile energy market, be material and can adversely affect its results of operations.

Southern Company Gas also enters into weather derivative contracts as economic hedges in the event of warmer-than-normal weather. Exchange-traded options are carried at fair value, with changes reflected in natural gas revenues. Non-exchange-traded options are accounted for using the intrinsic value method. Changes in the intrinsic value for non-exchange-traded contracts are reflected in natural gas revenues.

Energy-related derivative contracts are accounted for under one of three methods:

• Regulatory Hedges – Energy-related derivative contracts designated as regulatory hedges relate primarily to the traditional electric operating companies' and the natural gas distribution utilities' fuel-hedging programs, where gains and losses are initially recorded as regulatory liabilities and assets, respectively, and then are included in fuel expense as the underlying fuel is used in operations and ultimately recovered through an approved cost recovery mechanism.

• Cash Flow Hedges – Gains and losses on energy-related derivatives designated as cash flow hedges (which are mainly used to hedge anticipated purchases and sales) are initially deferred in accumulated OCI before being recognized in the statements of income in the same period and in the same income statement line item as the earnings effect of the hedged transactions.

• Not Designated – Gains and losses on energy-related derivative contracts that are not designated or fail to qualify as hedges are recognized in the statements of income as incurred.

Some energy-related derivative contracts require physical delivery as opposed to financial settlement, and this type of derivative is both common and prevalent within the electric and natural gas industries. When an energy-related derivative contract is settled physically, any cumulative unrealized gain or loss is reversed and the contract price is recognized in the respective line item representing the actual price of the underlying goods being delivered.

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(UNAUDITED)

At March 31, 2025, the net volume of energy-related derivative contracts for natural gas positions, together with the longest hedge date over which the respective entity is hedging its exposure to the variability in future cash flows for forecasted transactions and the longest non-hedge date for derivatives not designated as hedges, were as follows:

			Net Purchased mmBtu						Longest Hedge Date						Longest Non-Hedge Date
			(in millions)
Southern Company(*)			404						2030						2028
Alabama Power			113						2028						—
Georgia Power			109						2027						—
Mississippi Power			101						2029						—
Southern Power			5						2030						2025
Southern Company Gas(*)			76						2027						2028

(*)Southern Company Gas' derivative instruments include both long and short natural gas positions. A long position is a contract to purchase natural gas and a short position is a contract to sell natural gas. Southern Company Gas' volume represents the net of 85.3 million mmBtu long natural gas positions and 9.8 million mmBtu short natural gas positions at March 31, 2025, which is also included in Southern Company's total volume.

In addition to the volumes discussed above, the traditional electric operating companies and Southern Power enter into physical natural gas supply contracts that provide the option to sell back excess natural gas due to operational constraints. The maximum expected volume of natural gas subject to such a feature is 5 million mmBtu for Southern Company, which includes 1 million mmBtu for Alabama Power, 2 million mmBtu for Georgia Power, 1 million mmBtu for Mississippi Power, and 1 million mmBtu for Southern Power.

For cash flow hedges of energy-related derivatives, the estimated pre-tax losses expected to be reclassified from accumulated OCI to earnings for the 12-month period ending March 31, 2026 is $18 million and $15 million for Southern Company and Southern Company Gas, respectively, and immaterial for Southern Power.

Interest Rate Derivatives

Southern Company and certain subsidiaries may enter into interest rate derivatives to hedge exposure to changes in interest rates. Derivatives related to existing variable rate securities or forecasted transactions are accounted for as cash flow hedges where the derivatives' fair value gains or losses are recorded in OCI and are reclassified into earnings at the same time and presented on the same income statement line item as the earnings effect of the hedged transactions. Derivatives related to existing fixed rate securities are accounted for as fair value hedges, where the derivatives' fair value gains or losses and hedged items' fair value gains or losses are both recorded directly to earnings on the same income statement line item. Fair value gains or losses on derivatives that are not designated or fail to qualify as hedges are recognized in the statements of income as incurred.

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(UNAUDITED)

At March 31, 2025, the following interest rate derivatives were outstanding:

			Notional Amount			Weighted Average Interest Rate Paid			Interest Rate Received			Hedge Maturity Date			Fair Value Gain (Loss) at March 31, 2025
			(in millions)												(in millions)
Fair Value Hedges of Existing Debt
Southern Company parent			$	400		1-month SOFR + 0.80%			1.75%			March 2028			$	(31)
Southern Company parent			1,000			1-month SOFR + 2.48%			3.70%			April 2030			(129)
Southern Company parent			565			1-month SOFR + 1.56%			6.50%			March 2045			(3)
Southern Company Gas			500			1-month SOFR + 0.49%			1.75%			January 2031			(66)
Southern Company			$	2,465											$	(229)

For cash flow hedges of interest rate derivatives, the estimated pre-tax gains (losses) expected to be reclassified from accumulated OCI to interest expense for the 12-month period ending March 31, 2026 are immaterial for Southern Company, the traditional electric operating companies, and Southern Company Gas. Deferred gains and losses related to interest rate derivatives are expected to be amortized into earnings through 2054 for Southern Company, Georgia Power, and Mississippi Power, 2052 for Alabama Power, and 2046 for Southern Company Gas.

Foreign Currency Derivatives

Southern Company and certain subsidiaries, including Southern Power, may enter into foreign currency derivatives to hedge exposure to changes in foreign currency exchange rates, such as that arising from the issuance of debt denominated in a currency other than U.S. dollars. Derivatives related to forecasted transactions are accounted for as cash flow hedges where the derivatives' fair value gains or losses are recorded in OCI and are reclassified into earnings at the same time and on the same income statement line as the earnings effect of the hedged transactions, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Derivatives related to existing fixed rate securities are accounted for as fair value hedges, where the derivatives' fair value gains or losses and hedged items' fair value gains or losses are both recorded directly to earnings on the same income statement line item, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Southern Company has elected to exclude the cross-currency basis spread from the assessment of effectiveness in the fair value hedges of its foreign currency risk and record any difference between the change in the fair value of the excluded components and the amounts recognized in earnings as a component of OCI.

At March 31, 2025, the following foreign currency derivatives were outstanding:

			Pay Notional			Pay Rate			Receive Notional			Receive Rate			Hedge Maturity Date			Fair Value Gain (Loss) at March 31, 2025
			(in millions)						(in millions)									(in millions)
Cash Flow Hedges of Existing Debt
Southern Power			$	564		3.78%			€	500		1.85%			June 2026			$	(32)
Fair Value Hedges of Existing Debt
Southern Company parent			1,476			3.39%			1,250			1.88%			September 2027			(129)
Southern Company			$	2,040					€	1,750								$	(161)

For cash flow hedges of foreign currency derivatives, the estimated pre-tax losses expected to be reclassified from accumulated OCI to earnings for the 12-month period ending March 31, 2026 are $18 million for Southern Power.

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Derivative Financial Statement Presentation and Amounts

The Registrants enter into derivative contracts that may contain certain provisions that permit intra-contract netting of derivative receivables and payables for routine billing and offsets related to events of default and settlements. Southern Company and certain subsidiaries also utilize master netting agreements to mitigate exposure to counterparty credit risk. These agreements may contain provisions that permit netting across product lines and against cash collateral. The fair value amounts of derivative assets and liabilities on the balance sheets are presented net to the extent that there are netting arrangements or similar agreements with the counterparties.

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(UNAUDITED)

The fair value of energy-related derivatives, interest rate derivatives, and foreign currency derivatives was reflected as either assets or liabilities in the balance sheets (included in "Other" or shown separately as "Risk Management Activities") as follows:

			At March 31, 2025						At December 31, 2024
Derivative Category and Balance Sheet Location			Assets			Liabilities			Assets			Liabilities
			(in millions)
Southern Company
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	130		$	15		$	33		$	82
Non-current			70			37			42			40
Total derivatives designated as hedging instruments for regulatory purposes			200			52			75			122
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current			17			—			4			3
Non-current			4			—			4			—
Interest rate derivatives:
Current			5			58			—			61
Non-current			—			176			—			208
Foreign currency derivatives:
Current			—			35			—			36
Non-current			—			126			—			182
Total derivatives designated as hedging instruments in cash flow and fair value hedges			26			395			8			490
Energy-related derivatives not designated as hedging instruments
Current			5			11			5			3
Non-current			—			—			1			—
Total derivatives not designated as hedging instruments			5			11			6			3
Gross amounts recognized			231			458			89			615
Gross amounts offset**(a)**			(61)			(56)			(44)			(61)
Net amounts recognized in the Balance Sheets**(b)**			$	170		$	402		$	45		$	554
Alabama Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	42		$	6		$	11		$	30
Non-current			25			11			15			12
Total derivatives designated as hedging instruments for regulatory purposes			67			17			26			42
Gross amounts offset			(16)			(16)			(19)			(19)
Net amounts recognized in the Balance Sheets			$	51		$	1		$	7		$	23

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			At March 31, 2025						At December 31, 2024
Derivative Category and Balance Sheet Location			Assets			Liabilities			Assets			Liabilities
			(in millions)
Georgia Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	41		$	4		$	6		$	32
Non-current			23			9			13			9
Total derivatives designated as hedging instruments for regulatory purposes			64			13			19			41
Energy-related derivatives not designated as hedging instruments
Current			—			5			—			1
Gross amounts recognized			64			18			19			42
Gross amounts offset			(13)			(13)			(15)			(15)
Net amounts recognized in the Balance Sheets			$	51		$	5		$	4		$	27
Mississippi Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	24		$	3		$	5		$	15
Non-current			21			17			14			19
Total derivatives designated as hedging instruments for regulatory purposes			45			20			19			34
Gross amounts offset			(19)			(19)			(17)			(17)
Net amounts recognized in the Balance Sheets			$	26		$	1		$	2		$	17
Southern Power
Derivatives designated as hedging instruments in cash flow hedges
Energy-related derivatives:
Current			$	3		$	—		$	1		$	—
Non-current			3			—			3			—
Foreign currency derivatives:
Current			—			11			—			11
Non-current			—			21			—			40
Total derivatives designated as hedging instruments in cash flow hedges			6			32			4			51
Net amounts recognized in the Balance Sheets			$	6		$	32		$	4		$	51

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(UNAUDITED)

			At March 31, 2025						At December 31, 2024
Derivative Category and Balance Sheet Location			Assets			Liabilities			Assets			Liabilities
			(in millions)
Southern Company Gas
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	23		$	2		$	11		$	5
Non-current			1			—			—			—
Total derivatives designated as hedging instruments for regulatory purposes			24			2			11			5
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current			14			—			3			3
Non-current			1			—			1			—
Interest rate derivatives:
Current			—			14			—			17
Non-current			—			52			—			67
Total derivatives designated as hedging instruments in cash flow and fair value hedges			15			66			4			87
Energy-related derivatives not designated as hedging instruments
Current			5			6			5			2
Non-current			—			—			1			—
Total derivatives not designated as hedging instruments			5			6			6			2
Gross amounts recognized			44			74			21			94
Gross amounts offset**(a)**			(13)			(8)			7			(10)
Net amounts recognized in the Balance Sheets**(b)**			$	31		$	66		$	28		$	84

(a)Gross amounts offset includes cash collateral held on deposit in broker margin accounts of $5 million and $17 million at March 31, 2025 and December 31, 2024, respectively.

(b)Net amounts of derivative instruments outstanding exclude immaterial premium and intrinsic value associated with weather derivatives at March 31, 2025 and December 31, 2024.

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(UNAUDITED)

At March 31, 2025 and December 31, 2024, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred were as follows:

Regulatory Hedge Unrealized Gain (Loss) Recognized in the Balance Sheet
Derivative Category and Balance Sheet Location			Southern Company			Alabama Power			Georgia Power			Mississippi Power			Southern Company Gas
			(in millions)
At March 31, 2025:
Energy-related derivatives:
Other regulatory assets, current			$	(1)		$	—		$	—		$	—		$	(1)
Other regulatory assets, deferred			(1)			—			—			(1)			—
Other regulatory liabilities, current			114			36			37			21			20
Other regulatory liabilities, deferred			34			14			14			5			1
Total energy-related derivative gains (losses)			$	146		$	50		$	51		$	25		$	20
At December 31, 2024:
Energy-related derivatives:
Other regulatory assets, current			$	(61)		$	(23)		$	(26)		$	(11)		$	(1)
Other regulatory assets, deferred			(5)			—			—			(5)			—
Other regulatory liabilities, current			8			4			—			—			4
Other regulatory liabilities, deferred			8			3			4			1			—
Total energy-related derivative gains (losses)			$	(50)		$	(16)		$	(22)		$	(15)		$	3

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(UNAUDITED)

For the three months ended March 31, 2025 and 2024, the pre-tax effects of cash flow and fair value hedge accounting on accumulated OCI for the applicable Registrants were as follows:

Gain (Loss) Recognized in OCI on Derivatives						For the Three Months Ended March 31,
						2025			2024
									(in millions)
Southern Company
Cash flow hedges:
Energy-related derivatives									$	19		$	(8)
Interest rate derivatives									(2)			23
Foreign currency derivatives									19			(14)
Fair value hedges(*):
Foreign currency derivatives									(16)			—
Total									$	20		$	1
Georgia Power
Cash flow hedges:
Interest rate derivatives									$	(2)		$	16
Mississippi Power
Cash flow hedges:
Interest rate derivatives									$	—		$	7
Southern Power
Cash flow hedges:
Energy-related derivatives									$	3		$	(1)
Foreign currency derivatives									19			(14)
Total									$	22		$	(15)
Southern Company Gas
Cash flow hedges:
Energy-related derivatives									$	16		$	(7)

(*)Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI.

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(UNAUDITED)

For the three months ended March 31, 2025 and 2024, the pre-tax effects of cash flow and fair value hedge accounting on income were as follows:

												Gain (Loss)
Statements of Income Location			Derivative Category						For the Three Months Ended March 31,
						2025			2024
												(in millions)
Southern Company
Fuel			Energy-related cash flow hedges									$	1		$	(1)
Cost of natural gas			Energy-related cash flow hedges									(1)			(23)
Other operations and maintenance			Energy-related cash flow hedges									—			(1)
Interest expense, net of amounts capitalized			Interest rate cash flow hedges									(2)			(4)
			Foreign currency cash flow hedges									(3)			(3)
			Interest rate fair value hedges									40			(31)
Other income (expense), net			Foreign currency cash flow hedges									21			(12)
			Foreign currency fair value hedges									40			39
			Amount excluded from effectiveness testing recognized in earnings									16			—
Southern Power
Fuel			Energy-related cash flow hedges									$	1		$	(1)
Interest expense, net of amounts capitalized			Foreign currency cash flow hedges									(3)			(3)
Other income (expense), net			Foreign currency cash flow hedges									21			(12)
Southern Company Gas
Cost of natural gas			Energy-related cash flow hedges									$	(1)		$	(23)
Operations and maintenance			Energy-related cash flow hedges									—			(1)
Interest expense, net of amounts capitalized			Interest rate fair value hedges									17			(4)

At March 31, 2025 and December 31, 2024, the following amounts were recorded on the balance sheets related to cumulative basis adjustments for fair value hedges:

			Carrying Amount of the Hedged Item									Cumulative Amount of Fair Value Hedging Adjustment included in Carrying Amount of the Hedged Item
Balance Sheet Location of Hedged Items			At March 31, 2025			At December 31, 2024						At March 31, 2025			At December 31, 2024
			(in millions)									(in millions)
Southern Company
Long-term debt			$	(3,583)		$	(2,936)					$	198		$	242
Southern Company Gas
Long-term debt			$	(434)		$	(422)					$	63		$	75

Pre-tax gains on energy-related derivatives not designated as hedging instruments were $8 million and $47 million for the three months ended March 31, 2025 and 2024, respectively, and reflected in cost of natural gas on the statements of income of Southern Company and Southern Company Gas.

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(UNAUDITED)

Contingent Features

The Registrants do not have any credit arrangements that would require material changes in payment schedules or terminations as a result of a credit rating downgrade. There are certain derivatives that could require collateral, but not accelerated payment, in the event of various credit rating changes of certain Southern Company subsidiaries. Generally, collateral may be provided by a Southern Company guaranty, letter of credit, or cash. At March 31, 2025, the Registrants had no collateral posted with derivative counterparties to satisfy these arrangements.

For Southern Company, the fair value of foreign currency derivative liabilities and interest rate derivative liabilities with contingent features, and the maximum potential collateral requirements arising from the credit-risk-related contingent features at a rating below BBB- and/or Baa3, was $56 million at March 31, 2025. For Southern Power, the fair value of foreign currency derivative liabilities with contingent features, and the maximum potential collateral requirements arising from the credit-risk-related contingent features at a rating below BBB- and/or Baa3, was $15 million at March 31, 2025. For the traditional electric operating companies and Southern Power, energy-related derivative liabilities with contingent features and the maximum potential collateral requirements arising from the credit-risk-related contingent features, at a rating below BBB- and/or Baa3, were immaterial at March 31, 2025. The maximum potential collateral requirements arising from the credit-risk-related contingent features for the traditional electric operating companies and Southern Power include certain agreements that could require collateral in the event that one or more Southern Company power pool participants has a credit rating change to below investment grade.

Alabama Power and Southern Power maintain accounts with certain regional transmission organizations to facilitate financial derivative transactions and they may be required to post collateral based on the value of the positions in these accounts and the associated margin requirements. At March 31, 2025, cash collateral posted in these accounts was immaterial for Alabama Power and Southern Power. Southern Company Gas maintains accounts with brokers or the clearing houses of certain exchanges to facilitate financial derivative transactions. Based on the value of the positions in these accounts and the associated margin requirements, Southern Company Gas may be required to deposit cash into these accounts, which are netted with energy-related derivatives recognized in the balance sheets.

The Registrants are exposed to losses related to financial instruments in the event of counterparties' nonperformance. The Registrants generally enter into agreements and material transactions with counterparties that have investment grade credit ratings by Moody's, S&P, or Fitch or with counterparties who have posted collateral to cover potential credit exposure. The Registrants have also established risk management policies and controls to determine and monitor the creditworthiness of counterparties in order to mitigate their exposure to counterparty credit risk.

Southern Company Gas uses established credit policies to determine and monitor the creditworthiness of counterparties, including requirements to post collateral or other credit security, as well as the quality of pledged collateral. Collateral or credit security is most often in the form of cash or letters of credit from an investment-grade financial institution, but may also include cash or U.S. government securities held by a trustee. Prior to entering a physical transaction, Southern Company Gas assigns its counterparties an internal credit rating and credit limit based on the counterparties' Moody's, S&P, and Fitch ratings, commercially available credit reports, and audited financial statements. Southern Company Gas may require counterparties to pledge additional collateral when deemed necessary.

Southern Company Gas utilizes netting agreements whenever possible to mitigate exposure to counterparty credit risk. Netting agreements enable Southern Company Gas to net certain assets and liabilities by counterparty across product lines and against cash collateral, provided the netting and cash collateral agreements include such provisions. While the amounts due from, or owed to, counterparties are settled net, they are recorded on a gross basis on the balance sheet as energy marketing receivables and energy marketing payables.

The Registrants do not anticipate a material adverse effect on their respective financial statements as a result of counterparty nonperformance.

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(UNAUDITED)

(K) ACQUISITIONS AND DISPOSITIONS

See Note 15 to the financial statements in Item 8 of the Form 10-K for additional information.

Mississippi Power

On April 21, 2025, the Florida PSC preliminarily approved Mississippi Power's acquisition of FP&L's 50% ownership interest in Plant Daniel Units 1 and 2. Interested parties may file an objection or protest by May 12, 2025. The ultimate outcome of this matter cannot be determined at this time. See Note (B) under "Mississippi Power – Plant Daniel" for additional information.

Southern Power

Construction Projects

During the three months ended March 31, 2025, Southern Power continued construction of the 200-MW first phase, the 180-MW second phase, and the 132-MW third phase of the Millers Branch solar facility. At March 31, 2025, the total cost of construction incurred for the Millers Branch project was $419 million, which is primarily included in CWIP. The ultimate outcome of these matters cannot be determined at this time.

Project Facility			Resource			Approximate Nameplate Capacity (MW)			Location			Projected COD			PPA Contract Period
Projects Under Construction at March 31, 2025
Millers Branch
Phase I			Solar			200			Haskell County, TX			Fourth quarter 2025			20 years
Phase II			Solar			180			Haskell County, TX			Second quarter 2026			15 years
Phase III			Solar			132			Haskell County, TX			Fourth quarter 2026			15 years

Wind Repowering Projects

During the three months ended March 31, 2025, Southern Power continued the development project to repower 200 MWs of the 299-MW Kay Wind facility located in Kay County, Oklahoma. The output of the project is contracted under an amended 20-year PPA with commercial operation projected to occur in the third quarter 2026. At March 31, 2025, the total cost of construction incurred related to the project was $37 million and is included in CWIP. The ultimate outcome of this matter cannot be determined at this time.

(L) SEGMENT AND RELATED INFORMATION

See Note 16 to the financial statements in Item 8 of the Form 10-K for additional information.

Southern Company

The primary businesses of the Southern Company system are electricity sales by the traditional electric operating companies and Southern Power and the distribution of natural gas by Southern Company Gas. The traditional electric operating companies are vertically integrated utilities providing electric service in three Southeastern states. Southern Power develops, constructs, acquires, owns, operates, and manages power generation assets, including renewable energy and battery energy storage projects, and sells electricity at market-based rates in the wholesale market. Southern Company Gas distributes natural gas through its natural gas distribution utilities and is involved in several other complementary businesses including gas pipeline investments and gas marketing services.

Southern Company's reportable business segments are the sale of electricity by the traditional electric operating companies, the sale of electricity in the competitive wholesale market by Southern Power, and the sale of natural gas and other complementary products and services by Southern Company Gas. While the traditional electric operating companies represent three separate operating segments, they are vertically integrated utilities providing electric service to retail customers, as well as wholesale customers, in the Southeast and have been aggregated into

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(UNAUDITED)

one reportable segment. Revenues from sales by Southern Power to the traditional electric operating companies were $116 million and $92 million for the three months ended March 31, 2025 and 2024, respectively. Revenues from sales of natural gas from Southern Company Gas to the traditional electric operating companies and Southern Power were immaterial for both periods presented. The "All Other" column includes the Southern Company parent entity, which does not allocate operating expenses to business segments. Also, this category includes segments below the quantitative threshold for separate disclosure. These segments include providing distributed energy and resilience solutions and deploying microgrids for commercial, industrial, governmental, and utility customers, as well as investments in telecommunications. All other inter-segment revenues are not material.

Southern Company's CODM utilizes segment net income, including variances to budget and forecasts, to assess performance and is not provided with segment expense information. To achieve the consolidated net income goal, Southern Company's CODM sets net income expectations for each operating segment, which is expected to monitor its expenses in order to achieve its assigned net income target. Therefore, Southern Company has no reportable significant segment expenses.

Financial data for business segments for the three months ended March 31, 2025 and 2024 was as follows:

			Electric Utilities
			Traditional Electric Operating Companies			Southern Power			Eliminations			Total			Southern Company Gas			Total Reportable Segments			All Other			Eliminations			Consolidated
			(in millions)
Three Months Ended March 31, 2025
Operating revenues			$	5,311		$	567		$	(123)		$	5,755		$	1,839		$	7,594		$	229		$	(48)		$	7,775
Other segment items(a)			2,794			303			(123)			2,974			1,069			4,043			208			(58)			4,193
Depreciation and amortization(b)			947			152			—			1,099			169			1,268			18			—			1,286
Earnings from equity method investments			(2)			—			—			(2)			39			37			(4)			(1)			32
Interest expense			316			26			—			342			92			434			280			—			714
Income taxes (benefit)			226			(1)			—			225			130			355			(75)			—			280
Segment net income (loss)(b)(c)			$	1,026		$	87		$	—		$	1,113		$	418		$	1,531		$	(206)		$	9		$	1,334
At March 31, 2025
Goodwill			$	—		$	2		$	—		$	2		$	5,015		$	5,017		$	144		$	—		$	5,161
Total assets			107,731			12,737			(987)			119,481			26,234			145,715			2,969			(575)			148,109
Three Months Ended March 31, 2024
Operating revenues			$	4,438		$	473		$	(96)		$	4,815		$	1,707		$	6,522		$	161		$	(37)		$	6,646
Other segment items(a)			2,283			244			(96)			2,431			965			3,396			154			(21)			3,529
Depreciation and amortization			853			118			—			971			155			1,126			19			—			1,145
Earnings from equity method investments			2			—			—			2			44			46			(1)			—			45
Interest expense			312			29			—			341			84			425			248			(8)			665
Income taxes (benefit)			173			(14)			—			159			138			297			(74)			—			223
Segment net income (loss)(c)			$	819		$	96		$	—		$	915		$	409		$	1,324		$	(187)		$	(8)		$	1,129
At December 31, 2024
Goodwill			$	—		$	2		$	—		$	2		$	5,015		$	5,017		$	144		$	—		$	5,161
Total assets			105,577			12,653			(1,025)			117,205			26,177			143,382			2,371			(573)			145,180

(a)Primarily consists of fuel, purchased power, cost of natural gas, cost of other sales, other operations and maintenance, taxes other than income taxes, AFUDC equity, non-service cost-related retirement benefits income, and net income (loss) attributable to noncontrolling interests.

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(UNAUDITED)

(b)For Southern Power, includes pre-tax accelerated depreciation of $27 million ($20 million after tax) related to the repowering of the Kay Wind facility. See Note (K) under "Southern Power – Wind Repowering Projects" herein and Note 15 to the financial statements under "Southern Power – Development Projects" in Item 8 of the Form 10-K for additional information.

(c)Attributable to Southern Company.

Traditional Electric Operating Companies

Each of the traditional electric operating companies' single reportable business segment is the sale of electricity.

Alabama Power and Georgia Power have identified utility operations and maintenance expenses as significant segment expenses provided to their CODMs. Utility operations and maintenance expenses is calculated as other operations and maintenance, as reflected on the statements of income, less expenses from unregulated products and services, losses (gains) on asset dispositions, impairment charges, and amortization of cloud software. Alabama Power's utility operations and maintenance expenses are disaggregated into expenses related to Rate RSE and Rate CNP Compliance, which are not applicable to Georgia Power. See Note 2 to the financial statements under "Alabama Power" in Item 8 of the Form 10-K for additional information.

Financial data for Alabama Power's and Georgia Power's significant segment expenses and other segment information for the three months ended March 31, 2025 and 2024 was as follows:

						Three Months Ended March 31,
									2025			2024
									(in millions)
Alabama Power
Operating revenues									$	2,012		$	1,791
Utility operations and maintenance
Rate RSE expenses									365			325
Rate CNP Compliance expenses									75			63
Total utility operations and maintenance									440			388
Other segment items(*)									608			514
Depreciation and amortization									370			361
Interest expense									108			110
Income taxes									111			85
Segment net income									$	375		$	333
Capital expenditures									$	560		$	451
Georgia Power
Operating revenues									$	3,037		$	2,398
Utility operations and maintenance									536			463
Other segment items(*)									1,117			821
Depreciation and amortization									503			425
Interest expense									187			173
Income taxes									98			79
Segment net income									$	596		$	437
Capital expenditures									$	1,637		$	1,034

(*)Primarily consists of fuel, purchased power, expenses from unregulated products and services, losses (gains) on asset dispositions, impairment charges, amortization of cloud software, taxes other than income taxes, AFUDC equity, and non-service cost-related retirement benefits income. Also includes earnings from equity method investments, which were immaterial for both periods presented.

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(UNAUDITED)

Mississippi Power's CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Mississippi Power has no reportable significant segment expenses. Mississippi Power's segment information for revenues, depreciation and amortization, interest expense, and income taxes is reflected on its statements of income. Mississippi Power's earnings from equity method investments are included in other income (expense), net on its statements of income and were immaterial for all periods presented. Other segment items primarily consist of fuel and purchased power, other operations and maintenance, taxes other than income taxes, and non-service cost-related retirement benefits income and totaled $277 million and $216 million for the three months ended March 31, 2025 and 2024.

Southern Power

Southern Power's single reportable business segment is the sale of electricity in the competitive wholesale market. Southern Power's CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Southern Power has no reportable significant segment expenses. Southern Power's segment information for revenues, depreciation and amortization, interest expense, and income taxes (benefit) is reflected on its consolidated statements of income. Southern Power had no earnings from equity method investments for any period presented. Other segment items primarily consist of fuel, purchased power, other operations and maintenance, taxes other than income taxes, interest income, and net income (loss) attributable to noncontrolling interests and totaled $303 million and $244 million for three months ended March 31, 2025 and 2024.

For the three months ended March 31, 2025, depreciation and amortization includes pre-tax accelerated depreciation of $27 million ($20 million after tax) related to the repowering of the Kay Wind facility. See Note (K) under "Southern Power – Wind Repowering Projects" herein and Note 15 to the financial statements under "Southern Power – Development Projects" in Item 8 of the Form 10-K for additional information.

Southern Company Gas

Southern Company Gas manages its business through three reportable segments – gas distribution operations, gas pipeline investments, and gas marketing services. The non-reportable segments are combined and presented as all other.

The gas distribution operations segment is the largest component of Southern Company Gas' business and includes natural gas local distribution utilities that construct, manage, and maintain intrastate natural gas pipelines and gas distribution facilities in four states.

The gas pipeline investments segment consists of joint ventures in natural gas pipeline investments including a 50% interest in SNG and a 50% joint ownership interest in the Dalton Pipeline. These natural gas pipelines enable the provision of diverse sources of natural gas supplies to the customers of Southern Company Gas. See Note 7 to the financial statements under "Southern Company Gas" in Item 8 of the Form 10-K for additional information.

The gas marketing services segment provides natural gas marketing to end-use customers primarily in Georgia and Illinois through SouthStar.

The "All Other" column includes segments and subsidiaries that fall below the quantitative threshold for separate disclosure, including storage and fuels operations.

Southern Company Gas' CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Southern Company Gas has no reportable significant segment expenses.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Financial data for business segments for the three months ended March 31, 2025 and 2024 was as follows:

			Gas Distribution Operations			Gas Pipeline Investments			Gas Marketing Services			Total Reportable Segments			All Other			Eliminations			Consolidated
			(in millions)
Three Months Ended March 31, 2025
Operating revenues			$	1,570		$	8		$	261		$	1,839		$	4		$	(4)		$	1,839
Other segment items(*)			905			1			166			1,072			1			(4)			1,069
Depreciation and amortization			164			1			3			168			1			—			169
Earnings from equity method investments			—			39			—			39			—			—			39
Interest expense			82			9			1			92			—			—			92
Income taxes (benefit)			104			9			26			139			(9)			—			130
Segment net income			$	315		$	27		$	65		$	407		$	11		$	—		$	418
Total assets at March 31, 2025			$	24,626		$	1,602		$	1,754		$	27,982		$	10,528		$	(12,276)		$	26,234
Three Months Ended March 31, 2024
Operating revenues			$	1,463		$	8		$	235		$	1,706		$	6		$	(5)		$	1,707
Other segment items(*)			827			2			140			969			1			(5)			965
Depreciation and amortization			150			1			4			155			—			—			155
Earnings from equity method investments			—			44			—			44			—			—			44
Interest expense			78			9			—			87			(3)			—			84
Income taxes (benefit)			106			10			26			142			(4)			—			138
Segment net income			$	302		$	30		$	65		$	397		$	12		$	—		$	409
Total assets at December 31, 2024			$	24,067		$	1,573		$	1,696		$	27,336		$	10,047		$	(11,206)		$	26,177

(*)Primarily consists of cost of natural gas, other operations and maintenance, taxes other than income taxes, AFUDC equity, and non-service cost-related retirement benefits income.

Table of Contents Index to Financial Statements