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			17
Condensed Statements of Comprehensive Income			17
Condensed Statements of Cash Flows			18
Condensed Balance Sheets			19
Condensed Statements of Common Stockholder's Equity			21

Georgia Power Company:
Condensed Statements of Income			22
Condensed Statements of Comprehensive Income			22
Condensed Statements of Cash Flows			23
Condensed Balance Sheets			24
Condensed Statements of Common Stockholder's Equity			26

Mississippi Power Company:
Condensed Statements of Income			27
Condensed Statements of Comprehensive Income			27
Condensed Statements of Cash Flows			28
Condensed Balance Sheets			29
Condensed Statements of Common Stockholder's Equity			31

Southern Power Company and Subsidiary Companies:
Condensed Consolidated Statements of Income			32
Condensed Consolidated Statements of Comprehensive Income (Loss)			32
Condensed Consolidated Statements of Cash Flows			33
Condensed Consolidated Balance Sheets			34
Condensed Consolidated Statements of Stockholders' Equity			36

Southern Company Gas and Subsidiary Companies:
Condensed Consolidated Statements of Income			38
Condensed Consolidated Statements of Comprehensive Income			38
Condensed Consolidated Statements of Cash Flows			39
Condensed Consolidated Balance Sheets			40
Condensed Consolidated Statements of Stockholder's Equity			42

Combined Notes to the Condensed Financial Statements			43

Table of Contents Index to Financial Statements

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Operating Revenues:
Retail electric revenues	$	5,707	$	5,366	$	15,065	$	13,793
Wholesale electric revenues	832		721		2,257		1,919
Other electric revenues	262		222		724		631
Natural gas revenues (includes alternative revenue programs of $(5), $1, $(32), and $46, respectively)	734		682		3,552		3,220
Other revenues	288		283		974		820
Total operating revenues	7,823		7,274		22,572		20,383
Operating Expenses:
Fuel	1,345		1,146		3,753		3,174
Purchased power	259		249		769		669
Cost of natural gas	116		98		1,046		852
Cost of other sales	156		166		522		464
Other operations and maintenance	1,643		1,662		4,948		4,522
Depreciation and amortization	1,422		1,210		4,030		3,537
Taxes other than income taxes	288		375		1,136		1,155




Total operating expenses	5,229		4,906		16,204		14,373
Operating Income	2,594		2,368		6,368		6,010
Other Income and (Expense):
Allowance for equity funds used during construction	90		58		243		167
Earnings from equity method investments	33		31		76		107
Interest expense, net of amounts capitalized	(755)		(692)		(2,343)		(2,050)

Other income (expense), net	149		147		459		450
Total other income and (expense)	(483)		(456)		(1,565)		(1,326)
Earnings Before Income Taxes	2,111		1,912		4,803		4,684
Income taxes	404		377		973		890
Consolidated Net Income	1,707		1,535		3,830		3,794


Net loss attributable to noncontrolling interests	(4)		—		(95)		(73)
Consolidated Net Income Attributable to Southern Company	$	1,711	$	1,535	$	3,925	$	3,867
Common Stock Data:
Earnings per share -
Basic	$	1.55	$	1.40	$	3.56	$	3.53
Diluted	$	1.54	$	1.39	$	3.54	$	3.51
Average number of shares of common stock outstanding (in millions)
Basic	1,102		1,097		1,101		1,096
Diluted	1,110		1,103		1,108		1,102

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 September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Consolidated Net Income	$	1,707	$	1,535	$	3,830	$	3,794
Other comprehensive income (loss):
Qualifying hedges:
Changes in fair value, net of tax of $(5), $(1), $12, and $(2), respectively	(13)		(2)		36		(5)
Reclassification adjustment for amounts included in net income, net of tax of $2, $(2), $(12), and $14, respectively	5		(8)		(38)		39
Pension and other postretirement benefit plans:
Benefit plan net gain (loss), net of tax of $—, $—, $—, and $1, respectively	—		—		1		3
Reclassification adjustment for amounts included in net income, net of tax of $—, $—, $—, and $—, respectively	—		1		—		1
Total other comprehensive income (loss)	(8)		(9)		(1)		38
Comprehensive Income	1,699		1,526		3,829		3,832


Comprehensive loss attributable to noncontrolling interests	(4)		—		(95)		(73)
Consolidated Comprehensive Income Attributable to Southern Company	$	1,703	$	1,526	$	3,924	$	3,905

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 Nine Months Ended September 30,
	2025		2024
	(in millions)
Operating Activities:
Consolidated net income	$	3,830	$	3,794
Adjustments to reconcile consolidated net income to net cash provided from operating activities —
Depreciation and amortization, total	4,425		3,916
Deferred income taxes	355		607

Allowance for equity funds used during construction	(243)		(167)

Pension, postretirement, and other employee benefits	(414)		(391)
Settlement of asset retirement obligations	(471)		(405)
Stock based compensation expense	124		120










Storm damage cost recovery – long-term	(262)		—
Other, net	(22)		(121)
Changes in certain current assets and liabilities —
-Receivables	200		(233)
-Retail fuel cost under recovery	439		843

-Fossil fuel for generation	121		143
-Materials and supplies	18		(195)



-Other current assets	(187)		(181)
-Accounts payable	(747)		(161)
-Accrued taxes	432		179
-Accrued compensation	(126)		(90)





-Other current liabilities	(267)		(43)
Net cash provided from operating activities	7,205		7,615
Investing Activities:


Property additions	(8,452)		(6,206)


Business acquisition	(635)		—
Nuclear decommissioning trust fund purchases	(1,212)		(1,070)
Nuclear decommissioning trust fund sales	1,212		1,070
Proceeds from dispositions	1		370
Cost of removal, net of salvage	(479)		(444)
Change in construction payables, net	69		(119)


Other investing activities	(103)		(279)
Net cash used for investing activities	(9,599)		(6,678)
Financing Activities:
Decrease in notes payable, net	(993)		(1,264)
Proceeds —
Long-term debt	10,269		5,321

Short-term borrowings	200		700
Common stock	90		112

Redemptions and repurchases —
Long-term debt	(2,383)		(2,167)



Short-term borrowings	—		(1,020)

Distributions to noncontrolling interests	(118)		(108)

Payment of common stock dividends	(2,254)		(2,220)

Other financing activities	(176)		(157)
Net cash provided from (used for) financing activities	4,635		(803)
Net Change in Cash, Cash Equivalents, and Restricted Cash	2,241		134
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	1,101		921
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	3,342	$	1,055
Supplemental Cash Flow Information:
Cash paid during the period for —
Interest (net of $97 and $76 capitalized for 2025 and 2024, respectively)	$	2,173	$	2,015
Income taxes, net (excludes credit transfers)	231		131
Noncash transactions —
Accrued property additions at end of period	1,177		937




Right-of-use assets obtained under operating leases	131		126
Right-of-use assets obtained under finance leases	17		1
Reassessment of right-of-use assets under operating leases	—		(7)

Issuance of common stock under dividend reinvestment plan	167		123

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 September 30, 2025		At December 31, 2024
	(in millions)
Current Assets:
Cash and cash equivalents	$	3,341	$	1,070

Receivables —
Customer accounts	2,304		2,228

Unbilled revenues	685		825
Under recovered fuel clause revenues	517		713

Other accounts and notes	476		597
Accumulated provision for uncollectible accounts	(79)		(74)
Materials and supplies	2,158		2,178
Fossil fuel for generation	682		803
Natural gas for sale	415		388

Prepaid expenses	324		294

Assets from risk management activities, net of collateral	56		39
Regulatory assets – asset retirement obligations	353		353


Other regulatory assets	793		804
Other current assets	602		476
Total current assets	12,627		10,694
Property, Plant, and Equipment:
In service	143,189		137,143
Less: Accumulated depreciation	42,793		40,126
Plant in service, net of depreciation	100,396		97,017
Other utility plant, net	331		410
Nuclear fuel, at amortized cost	914		873
Construction work in progress	9,239		6,389
Total property, plant, and equipment	110,880		104,689
Other Property and Investments:
Goodwill	5,161		5,161
Nuclear decommissioning trusts, at fair value	2,884		2,621
Equity investments in unconsolidated subsidiaries	1,303		1,416
Other intangible assets, net of amortization of $436 and $412, respectively	308		332

Miscellaneous property and investments	696		668
Total other property and investments	10,352		10,198
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization	1,378		1,386
Deferred charges related to income taxes	911		889
Prepaid pension costs	2,982		2,674

Unamortized loss on reacquired debt	191		203
Deferred under recovered fuel clause revenues	197		485
Regulatory assets – asset retirement obligations, deferred	5,047		5,458
Other regulatory assets, deferred	7,361		7,037


Other deferred charges and assets	1,322		1,467
Total deferred charges and other assets	19,389		19,599
Total Assets	$	153,248	$	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 September 30, 2025		At December 31, 2024
	(in millions)
Current Liabilities:
Securities due within one year	$	7,541	$	4,718

Notes payable	144		1,338

Accounts payable	3,017		3,701
Customer deposits	489		486
Accrued taxes —
Accrued income taxes	456		57

Other accrued taxes	966		997
Accrued interest	602		682

Accrued compensation	1,206		1,261
Asset retirement obligations	680		731
Liabilities from risk management activities, net of collateral	98		160




Operating lease obligations	198		200
Natural gas cost over recovery	163		193
Other regulatory liabilities	196		369
Other current liabilities	970		1,100
Total current liabilities	16,726		15,993
Long-term Debt	64,621		58,768
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	12,250		11,730
Deferred credits related to income taxes	4,381		4,434
Accumulated deferred ITCs	1,994		2,056
Employee benefit obligations	955		1,011
Operating lease obligations, deferred	1,242		1,253
Asset retirement obligations, deferred	8,774		9,203


Other cost of removal obligations	2,032		2,016
Other regulatory liabilities, deferred	642		692

Other deferred credits and liabilities	1,357		1,350
Total deferred credits and other liabilities	33,627		33,745
Total Liabilities	114,974		108,506



















Total Stockholders' Equity (See accompanying statements)	38,274		36,674
Total Liabilities and Stockholders' Equity	$	153,248	$	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
Consolidated net income (loss)	—	—	—		—		—		1,203		—			(15)		1,188
Other comprehensive income	—	—	—		—		—		—		10			—		10
Stock issued	1	—	5		85		—		—		—			—		90
Stock-based compensation	—	—	—		13		—		—		—			—		13

Dividends of $0.72 per share	—	—	—		—		—		(788)		—			—		(788)

Capital contributions from noncontrolling interests	—	—	—		—		—		—		—			2		2
Distributions to noncontrolling interests	—	—	—		—		—		—		—			(19)		(19)




Other	—	—	—		3		(2)		—		—			—		1
Balance at June 30, 2024	1,096	(1)	5,436		13,947		(63)		13,259		(130)			3,662		36,111
Consolidated net income	—	—	—		—		—		1,535		—			—		1,535
Other comprehensive income (loss)	—	—	—		—		—		—		(9)			—		(9)

Stock issued	1	—	5		79		—		—		—			—		84
Stock-based compensation	—	—	—		24		—		—		—			—		24

Dividends of $0.72 per share	—	—	—		—		—		(789)		—			—		(789)


Distributions to noncontrolling interests	—	—	—		—		—		—		—			(55)		(55)




Other	—	—	—		(2)		6		—		—			—		4
Balance at September 30, 2024	1,097	(1)	$	5,441	$	14,048	$	(57)	$	14,005	$	(139)		$	3,607	$	36,905

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, 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
Consolidated net income (loss)	—	—	—		—		—		880		—			(27)		853
Other comprehensive income	—	—	—		—		—		—		4			—		4
Stock issued	1	—	5		84		—		—		—			—		89
Stock-based compensation	—	—	—		11		—		—		—			—		11

Dividends of $0.74 per share	—	—	—		—		—		(815)		—			—		(815)

Capital contributions from noncontrolling interests	—	—	—		—		—		—		—			4		4
Distributions to noncontrolling interests	—	—	—		—		—		—		—			(33)		(33)




Other	—	—	—		6		(1)		1		—			—		6
Balance at June 30, 2025	1,101	(1)	5,458		14,332		(62)		14,357		(71)			3,328		37,342
Consolidated net income (loss)	—	—	—		—		—		1,711		—			(4)		1,707
Other comprehensive income (loss)	—	—	—		—		—		—		(8)			—		(8)

Stock issued	1	—	4		79		—		—		—			—		83
Stock-based compensation	—	—	—		21		—		—		—			—		21

Dividends of $0.74 per share	—	—	—		—		—		(815)		—			—		(815)


Distributions to noncontrolling interests	—	—	—		—		—		—		—			(52)		(52)



Other	—	—	1		(10)		5		1		(1)			—		(4)
Balance at September 30, 2025	1,102	(1)	$	5,463	$	14,422	$	(57)	$	15,254	$	(80)		$	3,272	$	38,274

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 September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Operating Revenues:
Retail revenues	$	2,046	$	1,904	$	5,487	$	5,117
Wholesale revenues, non-affiliates	137		89		326		259
Wholesale revenues, affiliates	28		34		132		103
Other revenues	107		111		353		324
Total operating revenues	2,318		2,138		6,298		5,803
Operating Expenses:
Fuel	416		384		1,139		1,050
Purchased power, non-affiliates	56		49		180		148
Purchased power, affiliates	97		48		218		134
Other operations and maintenance	434		493		1,370		1,335
Depreciation and amortization	380		366		1,121		1,091
Taxes other than income taxes	115		108		365		347
Total operating expenses	1,498		1,448		4,393		4,105
Operating Income	820		690		1,905		1,698
Other Income and (Expense):
Allowance for equity funds used during construction	18		15		54		40
Interest expense, net of amounts capitalized	(119)		(113)		(343)		(337)
Other income (expense), net	44		36		128		116
Total other income and (expense)	(57)		(62)		(161)		(181)
Earnings Before Income Taxes	763		628		1,744		1,517
Income taxes	175		135		401		322
Net Income	$	588	$	493	$	1,343	$	1,195

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Net Income	$	588	$	493	$	1,343	$	1,195
Other comprehensive income:
Qualifying hedges:

Reclassification adjustment for amounts included in net income, net of tax of $—, $—, $1, and $1, respectively	1		—		2		1
Total other comprehensive income	1		—		2		1
Comprehensive Income	$	589	$	493	$	1,345	$	1,196

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 Nine Months Ended September 30,
	2025		2024
	(in millions)
Operating Activities:
Net income	$	1,343	$	1,195
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total	1,226		1,201

Deferred income taxes	127		(79)

Pension, postretirement, and other employee benefits	(148)		(151)
Settlement of asset retirement obligations	(202)		(184)

Retail fuel cost under recovery – long-term	(69)		—

Other, net	(75)		24
Changes in certain current assets and liabilities —
-Receivables	(125)		(115)
-Fossil fuel stock	71		46
-Prepayments	(56)		(44)

-Retail fuel cost under recovery	(14)		236
-Other current assets	24		(32)
-Accounts payable	(286)		(304)
-Accrued taxes	237		235


-Customer refunds	(110)		(23)
-Other current liabilities	(143)		(22)
Net cash provided from operating activities	1,800		1,983
Investing Activities:
Property additions	(1,523)		(1,279)
Business acquisition	(635)		—
Nuclear decommissioning trust fund purchases	(407)		(448)
Nuclear decommissioning trust fund sales	407		448
Cost of removal, net of salvage	(137)		(123)
Change in construction payables, net of joint owner portion	(52)		(32)
Other investing activities	(14)		(26)
Net cash used for investing activities	(2,361)		(1,460)
Financing Activities:
Increase in notes payable, net	—		(40)
Proceeds —
Senior notes	1,100		—


Short-term borrowings	—		50
Other long-term debt	4		6
Redemptions —

Senior notes	(250)		—


Revenue bonds	—		(21)
Short-term borrowings	—		(50)

Capital contributions from parent company	591		488
Payment of common stock dividends	(914)		(886)
Other financing activities	(12)		(3)
Net cash provided from (used for) financing activities	519		(456)
Net Change in Cash, Cash Equivalents, and Restricted Cash	(42)		67
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	585		409
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	543	$	476
Supplemental Cash Flow Information:
Cash paid during the period for —
Interest (net of $16 and $13 capitalized for 2025 and 2024, respectively)	$	347	$	356
Income taxes, net	243		288
Noncash transactions —
Accrued property additions at end of period	96		106

Right-of-use assets obtained under operating leases	8		11
Right-of-use assets obtained under finance leases	4		—

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 September 30, 2025		At December 31, 2024
	(in millions)
Current Assets:
Cash and cash equivalents	$	543	$	585
Receivables —
Customer accounts	577		512
Unbilled revenues	197		187


Affiliated	133		91
Other accounts and notes	82		126
Accumulated provision for uncollectible accounts	(22)		(22)
Fossil fuel stock	267		339
Materials and supplies	720		699

Prepaid expenses	128		63

Other regulatory assets	345		332
Other current assets	137		79
Total current assets	3,107		2,991
Property, Plant, and Equipment:
In service	38,605		36,501
Less: Accumulated provision for depreciation	12,614		11,741
Plant in service, net of depreciation	25,991		24,760
Other utility plant, net	331		410
Nuclear fuel, at amortized cost	298		262
Construction work in progress	1,412		1,377
Total property, plant, and equipment	28,032		26,809
Other Property and Investments:
Nuclear decommissioning trusts, at fair value	1,526		1,386
Equity investments in unconsolidated subsidiaries	46		48
Miscellaneous property and investments	123		129
Total other property and investments	1,695		1,563
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization	82		84
Deferred charges related to income taxes	268		264
Prepaid pension and other postretirement benefit costs	922		841

Regulatory assets – asset retirement obligations	1,515		1,780
Other regulatory assets, deferred	1,914		1,815
Other deferred charges and assets	413		391
Total deferred charges and other assets	5,114		5,175
Total Assets	$	37,948	$	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 September 30, 2025		At December 31, 2024
	(in millions)
Current Liabilities:
Securities due within one year	$	624	$	655

Accounts payable —
Affiliated	302		299
Other	367		625
Customer deposits	115		113


Accrued taxes	289		78
Accrued interest	102		120

Accrued compensation	261		240

Asset retirement obligations	264		364
Other regulatory liabilities	29		165
Other current liabilities	136		219
Total current liabilities	2,489		2,878
Long-term Debt	11,381		10,499
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	4,361		4,178
Deferred credits related to income taxes	1,382		1,398
Accumulated deferred ITCs	107		113
Employee benefit obligations	150		148
Operating lease obligations	73		76
Asset retirement obligations, deferred	3,446		3,694

Other regulatory liabilities, deferred	171		271

Other deferred credits and liabilities	274		195
Total deferred credits and other liabilities	9,964		10,073
Total Liabilities	23,834		23,450









Common Stockholder's Equity (See accompanying statements)	14,114		13,088
Total Liabilities and Stockholder's Equity	$	37,948	$	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
Net income	—	—		—		369		—		369

Capital contributions from parent company	—	—		50		—		—		50
Other comprehensive income	—	—		—		—		1		1
Cash dividends on common stock	—	—		—		(296)		—		(296)

Balance at June 30, 2024	31	1,222		7,602		4,103		(6)		12,921
Net income	—	—		—		493		—		493


Capital contributions from parent company	—	—		16		—		—		16

Cash dividends on common stock	—	—		—		(295)		—		(295)

Balance at September 30, 2024	31	$	1,222	$	7,618	$	4,301	$	(6)	$	13,135

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
Net income	—	—		—		381		—		381

Capital contributions from parent company	—	—		38		—		—		38

Cash dividends on common stock	—	—		—		(304)		—		(304)
Other	—	—		—		(1)		1		—
Balance at June 30, 2025	31	1,222		8,222		4,360		(4)		13,800
Net income	—	—		—		588		—		588


Capital contributions from parent company	—	—		31		—		—		31
Other comprehensive income	—	—		—		—		1		1
Cash dividends on common stock	—	—		—		(305)		—		(305)
Other	—	—		—		—		(1)		(1)
Balance at September 30, 2025	31	$	1,222	$	8,253	$	4,643	$	(4)	$	14,114

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 September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Operating Revenues:
Retail revenues	$	3,359	$	3,185	$	8,754	$	7,937
Wholesale revenues	140		78		390		198

Other revenues	271		209		774		610
Total operating revenues	3,770		3,472		9,918		8,745
Operating Expenses:
Fuel	567		451		1,567		1,281
Purchased power, non-affiliates	176		174		516		466
Purchased power, affiliates	202		204		664		567
Other operations and maintenance	616		613		1,897		1,565
Depreciation and amortization	526		462		1,541		1,334
Taxes other than income taxes	75		177		417		488

Total operating expenses	2,162		2,081		6,602		5,701
Operating Income	1,608		1,391		3,316		3,044
Other Income and (Expense):
Allowance for equity funds used during construction	67		37		171		108
Interest expense, net of amounts capitalized	(200)		(184)		(585)		(543)
Other income (expense), net	51		52		162		156
Total other income and (expense)	(82)		(95)		(252)		(279)
Earnings Before Income Taxes	1,526		1,296		3,064		2,765
Income taxes	278		246		612		516
Net Income	$	1,248	$	1,050	$	2,452	$	2,249

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Net Income	$	1,248	$	1,050	$	2,452	$	2,249
Other comprehensive income:
Qualifying hedges:
Changes in fair value, net of tax of $—, $—, $1, and $4, respectively	—		—		3		13
Reclassification adjustment for amounts included in net income, net of tax of $—, $—, $—, and $1, respectively	—		1		1		3
Total other comprehensive income	—		1		4		16
Comprehensive Income	$	1,248	$	1,051	$	2,456	$	2,265

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 Nine Months Ended September 30,
	2025		2024
	(in millions)
Operating Activities:
Net income	$	2,452	$	2,249
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total	1,770		1,566
Deferred income taxes	277		408

Allowance for equity funds used during construction	(171)		(108)


Pension, postretirement, and other employee benefits	(208)		(197)

Settlement of asset retirement obligations	(236)		(191)





Storm damage cost recovery – long-term	(262)		—
Other, net	(136)		(174)
Changes in certain current assets and liabilities —
-Receivables	(104)		(499)
-Retail fuel cost under recovery	483		590
-Fossil fuel stock	25		110

-Materials and supplies	17		(83)

-Other current assets	(169)		(163)
-Accounts payable	(385)		113
-Accrued taxes	90		24




-Other current liabilities	41		36
Net cash provided from operating activities	3,484		3,681
Investing Activities:
Property additions	(4,886)		(3,403)
Nuclear decommissioning trust fund purchases	(805)		(623)
Nuclear decommissioning trust fund sales	805		622
Cost of removal, net of salvage	(226)		(225)
Change in construction payables, net of joint owner portion	24		(92)


Proceeds from dispositions	—		356

Other investing activities	(101)		(122)
Net cash used for investing activities	(5,189)		(3,487)
Financing Activities:
Decrease in notes payable, net	—		(776)
Proceeds —
Senior notes	3,100		1,400
Short-term borrowings	200		350



Redemptions and repurchases —

Senior notes	(700)		(400)
Short-term borrowings	—		(670)
FFB loan	(64)		(64)
Revenue bonds	(45)		—


Capital contributions from parent company	1,741		1,560
Payment of common stock dividends	(1,657)		(1,538)


Other financing activities	(51)		(67)
Net cash provided from (used for) financing activities	2,524		(205)
Net Change in Cash, Cash Equivalents, and Restricted Cash	819		(11)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	118		75
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	937	$	64
Supplemental Cash Flow Information:
Cash paid during the period for —
Interest (net of $54 and $43 capitalized for 2025 and 2024, respectively)	$	576	$	530
Income taxes, net (excludes credit transfers)	39		80
Noncash transactions —
Accrued property additions at end of period	748		590
Right-of-use assets obtained under operating leases	30		121
Right-of-use assets obtained under finance leases	13		44

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 September 30, 2025		At December 31, 2024
	(in millions)
Current Assets:
Cash and cash equivalents	$	937	$	97

Receivables —
Customer accounts, net	1,144		985
Unbilled revenues	359		341
Under recovered retail fuel clause revenues	487		713
Joint owner accounts	115		101

Affiliated	109		65
Other accounts and notes	48		92

Fossil fuel stock	360		385
Materials and supplies	945		968




Regulatory assets – asset retirement obligations	222		222

Other regulatory assets	358		373

Other current assets	355		262
Total current assets	5,439		4,604
Property, Plant, and Equipment:
In service	57,432		55,036
Less: Accumulated provision for depreciation	15,713		14,806
Plant in service, net of depreciation	41,719		40,230

Nuclear fuel, at amortized cost	616		611
Construction work in progress	5,581		3,197
Total property, plant, and equipment	47,916		44,038
Other Property and Investments:
Nuclear decommissioning trusts, at fair value	1,359		1,236
Equity investments in unconsolidated subsidiaries	39		43
Miscellaneous property and investments	222		192
Total other property and investments	1,620		1,471
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization	1,228		1,331
Deferred charges related to income taxes	615		596
Prepaid pension costs	1,010		897
Deferred under recovered retail fuel clause revenues	197		453
Regulatory assets – asset retirement obligations, deferred	3,303		3,436
Other regulatory assets, deferred	4,015		3,814
Other deferred charges and assets	616		615
Total deferred charges and other assets	10,984		11,142
Total Assets	$	65,959	$	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 September 30, 2025		At December 31, 2024
	(in millions)
Current Liabilities:
Securities due within one year	$	1,368	$	966
Notes payable	—		200
Accounts payable —
Affiliated	925		984
Other	1,436		1,837
Customer deposits	263		256


Accrued taxes	856		803
Accrued interest	178		190

Accrued compensation	263		276
Operating lease obligations	176		169
Asset retirement obligations	345		309


Other regulatory liabilities	86		150


Other current liabilities	239		296
Total current liabilities	6,135		6,436
Long-term Debt	19,656		17,384
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	4,782		4,385
Deferred credits related to income taxes	2,051		2,047
Accumulated deferred ITCs	337		343
Employee benefit obligations	191		205
Operating lease obligations, deferred	1,029		1,159
Asset retirement obligations, deferred	4,999		5,106

Other deferred credits and liabilities	552		509
Total deferred credits and other liabilities	13,941		13,754
Total Liabilities	39,732		37,574









Common Stockholder's Equity (See accompanying statements)	26,227		23,681
Total Liabilities and Stockholder's Equity	$	65,959	$	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
Net income	—	—		—		762		—		762

Capital contributions from parent company	—	—		113		—		—		113
Other comprehensive income	—	—		—		—		1		1
Cash dividends on common stock	—	—		—		(513)		—		(513)

Balance at June 30, 2024	9	398		18,786		3,244		5		22,433
Net income	—	—		—		1,050		—		1,050

Capital contributions from parent company	—	—		700		—		—		700
Other comprehensive income	—	—		—		—		1		1
Cash dividends on common stock	—	—		—		(512)		—		(512)
Other	—	—		—		(1)		—		(1)
Balance at September 30, 2024	9	$	398	$	19,486	$	3,781	$	6	$	23,671

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
Net income	—	—		—		607		—		607

Capital contributions from parent company	—	—		972		—		—		972
Other comprehensive income	—	—		—		—		4		4
Cash dividends on common stock	—	—		—		(553)		—		(553)
Other	—	—		—		1		—		1
Balance at June 30, 2025	9	398		21,382		3,661		16		25,457
Net income	—	—		—		1,248		—		1,248

Capital contributions from parent company	—	—		73		—		—		73

Cash dividends on common stock	—	—		—		(552)		—		(552)
Other	—	—		—		1		—		1
Balance at September 30, 2025	9	$	398	$	21,455	$	4,358	$	16	$	26,227

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 September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Operating Revenues:
Retail revenues	$	302	$	276	$	824	$	739
Wholesale revenues, non-affiliates	72		66		205		179
Wholesale revenues, affiliates	94		57		230		166
Other revenues	12		13		42		34
Total operating revenues	480		412		1,301		1,118
Operating Expenses:
Fuel and purchased power	179		134		488		363


Other operations and maintenance	94		90		261		261
Depreciation and amortization	53		48		157		141
Taxes other than income taxes	37		33		106		95

Total operating expenses	363		305		1,012		860
Operating Income	117		107		289		258
Other Income and (Expense):

Interest expense, net of amounts capitalized	(19)		(19)		(59)		(58)
Other income (expense), net	10		9		26		33
Total other income and (expense)	(9)		(10)		(33)		(25)
Earnings Before Income Taxes	108		97		256		233
Income taxes	24		22		58		47
Net Income	$	84	$	75	$	198	$	186

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Net Income	$	84	$	75	$	198	$	186
Other comprehensive income:
Qualifying hedges:
Changes in fair value, net of tax of $—, $—, $—, and $2, respectively	—		—		—		5

Total other comprehensive income	—		—		—		5
Comprehensive Income	$	84	$	75	$	198	$	191

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 Nine Months Ended September 30,
	2025		2024
	(in millions)
Operating Activities:
Net income	$	198	$	186
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total	173		153
Deferred income taxes	(7)		4



Pension, postretirement, and other employee benefits	(14)		(13)
Settlement of asset retirement obligations	(14)		(13)



Plant acquisition regulatory liability	36		—
Other, net	(6)		21
Changes in certain current assets and liabilities —
-Receivables	(24)		(22)
-Retail fuel cost under recovery	(30)		17
-Fossil fuel stock	24		(10)
-Prepaid income taxes	11		—
-Other current assets	(2)		(13)
-Accounts payable	(12)		(29)
-Accrued taxes	10		(11)
-Accrued interest	(10)		(9)
-Accrued compensation	(10)		(4)

-Wholesale fuel cost over recovery	(20)		12


-Other current liabilities	(4)		(4)
Net cash provided from operating activities	299		265
Investing Activities:
Property additions	(232)		(220)
Contributions in aid of construction	57		—
Cost of removal, net of salvage	(44)		(32)
Change in construction payables, net of joint owner portion	(27)		(3)



Payments pursuant to LTSAs	(15)		(15)
Other investing activities	(2)		(2)
Net cash used for investing activities	(263)		(272)
Financing Activities:
Increase (decrease) in notes payable, net	(14)		50

Proceeds — Senior notes	100		250






Redemptions —
Senior notes	—		(200)


Revenue bonds	(11)		—




Capital contributions from parent company	57		60

Payment of common stock dividends	(145)		(141)
Other financing activities	(2)		(2)
Net cash provided from (used for) financing activities	(15)		17
Net Change in Cash, Cash Equivalents, and Restricted Cash	21		10
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	13		38
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	34	$	48
Supplemental Cash Flow Information:
Cash paid during the period for —
Interest	$	69	$	67
Income taxes, net	25		35
Noncash transactions —
Accrued property additions at end of period	22		33

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 September 30, 2025		At December 31, 2024
	(in millions)
Current Assets:
Cash and cash equivalents	$	34	$	13
Receivables —
Customer accounts, net	87		45
Unbilled revenues	45		39

Affiliated	40		33
Other accounts and notes	23		24

Fossil fuel stock	32		56
Materials and supplies	103		103

Other regulatory assets	44		43

Other current assets	8		28
Total current assets	416		384
Property, Plant, and Equipment:
In service	5,888		5,697
Less: Accumulated provision for depreciation	1,919		1,833
Plant in service, net of depreciation	3,969		3,864

Construction work in progress	266		253
Total property, plant, and equipment	4,235		4,117
Other Property and Investments	146		152
Deferred Charges and Other Assets:

Deferred charges related to income taxes	26		27
Prepaid pension costs	139		124
Deferred under recovered retail fuel clause revenues	—		32
Regulatory assets – asset retirement obligations	230		243
Other regulatory assets, deferred	260		259
Accumulated deferred income taxes	68		82

Other deferred charges and assets	66		74
Total deferred charges and other assets	789		841
Total Assets	$	5,586	$	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 September 30, 2025		At December 31, 2024
	(in millions)
Current Liabilities:
Securities due within one year	$	66	$	12


Notes payable	—		14

Accounts payable —
Affiliated	67		68
Other	59		83
Customer deposits	19		20


Accrued taxes	125		115


Accrued compensation	41		46

Asset retirement obligations	21		32
Over recovered retail fuel clause revenues	—		32

Other regulatory liabilities	8		5


Other current liabilities	56		75
Total current liabilities	462		502



Long-term Debt	1,715		1,681
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	480		492
Deferred credits related to income taxes	209		219

Employee benefit obligations	65		65

Asset retirement obligations, deferred	104		116

Other cost of removal obligations	124		170
Other regulatory liabilities, deferred	143		121
Other deferred credits and liabilities	84		39
Total deferred credits and other liabilities	1,209		1,222
Total Liabilities	3,386		3,405








Common Stockholder's Equity (See accompanying statements)	2,200		2,089
Total Liabilities and Stockholder's Equity	$	5,586	$	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
Net income	—	—		—		61		—		61


Capital contributions from parent company	—	—		58		—		—		58

Cash dividends on common stock	—	—		—		(47)		—		(47)

Balance at June 30, 2024	1	38		4,780		(2,739)		5		2,084
Net income	—	—		—		75		—		75


Capital contributions from parent company	—	—		3		—		—		3

Cash dividends on common stock	—	—		—		(47)		—		(47)

Balance at September 30, 2024	1	$	38	$	4,783	$	(2,711)	$	5	$	2,115

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

Cash dividends on common stock	—	—		—		(48)		—		(48)
Other	—	—		—		—		(1)		(1)
Balance at March 31, 2025	1	38		4,842		(2,738)		4		2,146
Net income	—	—		—		59		—		59


Capital contributions from parent company	—	—		7		—		—		7

Cash dividends on common stock	—	—		—		(49)		—		(49)
Other	—	—		—		1		—		1
Balance at June 30, 2025	1	38		4,849		(2,727)		4		2,164
Net income	—	—		—		84		—		84


Capital contributions from parent company	—	—		1		—		—		1

Cash dividends on common stock	—	—		—		(48)		—		(48)
Other	—	—		—		(1)		—		(1)
Balance at September 30, 2025	1	$	38	$	4,850	$	(2,692)	$	4	$	2,200

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 September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Operating Revenues:
Wholesale revenues, non-affiliates	$	498	$	489	$	1,368	$	1,286
Wholesale revenues, affiliates	112		102		341		280
Other revenues	3		9		17		31
Total operating revenues	613		600		1,726		1,597
Operating Expenses:
Fuel	168		166		523		454
Purchased power	32		20		91		60

Other operations and maintenance	128		126		384		367
Depreciation and amortization	247		133		576		378
Taxes other than income taxes	12		12		37		34



Total operating expenses	587		457		1,611		1,293
Operating Income	26		143		115		304
Other Income and (Expense):
Interest expense, net of amounts capitalized	(25)		(30)		(76)		(89)
Other income (expense), net	4		2		10		8
Total other income and (expense)	(21)		(28)		(66)		(81)
Earnings Before Income Taxes	5		115		49		223
Income taxes	6		33		3		32
Net Income (Loss)	(1)		82		46		191
Net loss attributable to noncontrolling interests	(4)		—		(95)		(73)
Net Income Attributable to Southern Power	$	3	$	82	$	141	$	264

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Net Income (Loss)	$	(1)	$	82	$	46	$	191
Other comprehensive income (loss):
Qualifying hedges:
Changes in fair value, net of tax of $(2), $3, $15, and $(2), respectively	(6)		10		45		(5)
Reclassification adjustment for amounts included in net income, net of tax of $—, $(4), $(15), and $2, respectively	1		(14)		(46)		5
Pension and other postretirement benefit plans:
Benefit plan net gain (loss), net of tax of $—, $—, $—, and $—, respectively	—		—		—		1


Total other comprehensive income (loss)	(5)		(4)		(1)		1
Comprehensive Income (Loss)	(6)		78		45		192
Comprehensive loss attributable to noncontrolling interests	(4)		—		(95)		(73)
Comprehensive Income (Loss) Attributable to Southern Power	$	(2)	$	78	$	140	$	265

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 Nine Months Ended September 30,
	2025		2024
	(in millions)
Operating Activities:
Net income	$	46	$	191
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total	593		388
Deferred income taxes	(122)		68

Amortization of ITCs	(44)		(44)








Other, net	16		13
Changes in certain current assets and liabilities —
-Receivables	19		(24)


-Other current assets	3		(9)
-Accounts payable	(25)		(19)
-Accrued taxes	52		56


-Other current liabilities	(17)		(13)
Net cash provided from operating activities	521		607
Investing Activities:

Property additions	(620)		(179)


Change in construction payables	78		1

Payments pursuant to LTSAs	(42)		(34)


Other investing activities	—		13
Net cash used for investing activities	(584)		(199)
Financing Activities:
Increase (decrease) in notes payable, net	2		(68)

Proceeds — Senior notes	1,100		—







Capital contributions from parent company	157		8

Capital contributions from noncontrolling interests	23		11
Distributions to noncontrolling interests	(118)		(108)

Payment of common stock dividends	(209)		(196)
Other financing activities	(13)		(4)
Net cash provided from (used for) financing activities	942		(357)
Net Change in Cash, Cash Equivalents, and Restricted Cash	879		51
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	168		144
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	1,047	$	195
Supplemental Cash Flow Information:
Cash paid (received) during the period for —
Interest (net of $15 and $5 capitalized for 2025 and 2024, respectively)	$	77	$	88
Income taxes, net (excludes credit transfers)	163		(30)
Noncash transactions —


Accrued property additions at end of period	138		52

Right-of-use assets obtained under operating leases	2		10
Reassessment of right-of-use assets under operating leases	—		(7)

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 September 30, 2025		At December 31, 2024
	(in millions)
Current Assets:
Cash and cash equivalents	$	1,047	$	159
Receivables —
Customer accounts, net	151		122
Affiliated	39		39
Other	33		90

Materials and supplies	117		107






Other current assets	85		82
Total current assets	1,472		599
Property, Plant, and Equipment:
In service	15,019		14,961
Less: Accumulated provision for depreciation	4,999		4,540
Plant in service, net of depreciation	10,020		10,421
Construction work in progress	861		317

Total property, plant, and equipment	10,881		10,738
Other Property and Investments:

Intangible assets, net of amortization of $183 and $168, respectively	209		223

Net investment in sales-type leases	138		143
Total other property and investments	347		366
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization	481		484
Prepaid LTSAs	185		234




Other deferred charges and assets	229		232
Total deferred charges and other assets	895		950
Total Assets	$	13,595	$	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 September 30, 2025		At December 31, 2024
	(in millions)
Current Liabilities:
Securities due within one year	$	1,486	$	500

Accounts payable —
Affiliated	60		80
Other	168		100

Accrued taxes	70		18

Accrued interest	24		26
Operating lease obligations	29		29



Other current liabilities	82		96
Total current liabilities	1,919		849
Long-term Debt	2,353		2,180
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	590		712
Accumulated deferred ITCs	1,397		1,440





Operating lease obligations, deferred	510		511
Other deferred credits and liabilities	249		279
Total deferred credits and other liabilities	2,746		2,942
Total Liabilities	7,018		5,971










Total Stockholders' Equity (See accompanying statements)	6,577		6,682
Total Liabilities and Stockholders' Equity	$	13,595	$	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
Net income (loss)	—		86		—		86		(15)		71

Capital contributions from parent company	8		—		—		8		—		8
Other comprehensive income	—		—		3		3		—		3
Cash dividends on common stock	—		(66)		—		(66)		—		(66)

Capital contributions from noncontrolling interests	—		—		—		—		2		2
Distributions to noncontrolling interests	—		—		—		—		(19)		(19)




Other	1		—		—		1		—		1
Balance at June 30, 2024	1,097		1,896		(12)		2,981		3,662		6,643
Net income	—		82		—		82		—		82

Capital contributions from parent company	1		—		—		1		—		1
Other comprehensive income (loss)	—		—		(4)		(4)		—		(4)
Cash dividends on common stock	—		(65)		—		(65)		—		(65)


Distributions to noncontrolling interests	—		—		—		—		(55)		(55)





Balance at September 30, 2024	$	1,098	$	1,913	$	(16)	$	2,995	$	3,607	$	6,602

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 Stockholders' Equity		Noncontrolling Interests		Total
	(in millions)
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
Net income (loss)	—		51		—		51		(27)		24

Capital contributions from parent company	16		—		—		16		—		16
Other comprehensive income	—		—		2		2		—		2
Cash dividends on common stock	—		(69)		—		(69)		—		(69)

Capital contributions from noncontrolling interests	—		—		—		—		4		4
Distributions to noncontrolling interests	—		—		—		—		(33)		(33)




Other	—		(1)		—		(1)		—		(1)
Balance at June 30, 2025	1,452		1,910		2		3,364		3,328		6,692
Net income (loss)	—		3		—		3		(4)		(1)

Capital contributions from parent company	12		—		—		12		—		12
Other comprehensive income (loss)	—		—		(5)		(5)		—		(5)
Cash dividends on common stock	—		(70)		—		(70)		—		(70)


Distributions to noncontrolling interests	—		—		—		—		(52)		(52)



Other	—		1		—		1		—		1
Balance at September 30, 2025	$	1,464	$	1,844	$	(3)	$	3,305	$	3,272	$	6,577

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 COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Operating Revenues:
Natural gas revenues (includes revenue taxes of $12, $11, $102, and $87, respectively)	$	734	$	682	$	3,552	$	3,220


Total operating revenues	734		682		3,552		3,220
Operating Expenses:
Cost of natural gas	116		98		1,046		852

Other operations and maintenance	314		295		929		877
Depreciation and amortization	176		162		517		475
Taxes other than income taxes	48		44		206		186




Total operating expenses	654		599		2,698		2,390
Operating Income	80		83		854		830
Other Income and (Expense):
Earnings from equity method investments	31		34		93		110
Interest expense, net of amounts capitalized	(94)		(84)		(277)		(250)
Other income (expense), net	14		16		48		49
Total other income and (expense)	(49)		(34)		(136)		(91)
Earnings Before Income Taxes	31		49		718		739
Income taxes	6		11		169		184
Net Income	$	25	$	38	$	549	$	555

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)				(in millions)
Net Income	$	25	$	38	$	549	$	555
Other comprehensive income (loss):
Qualifying hedges:
Changes in fair value, net of tax of $(3), $(3), $(1), and $(4), respectively	(8)		(7)		(2)		(10)
Reclassification adjustment for amounts included in net income, net of tax of $—, $1, $1, and $10, respectively	1		3		1		25
Pension and other postretirement benefit plans:

Reclassification adjustment for amounts included in net income, net of tax of $—, $—, $—, and $—, respectively	—		—		(1)		—
Total other comprehensive income (loss)	(7)		(4)		(2)		15
Comprehensive Income	$	18	$	34	$	547	$	570

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

Table of Contents Index to Financial Statements

SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	For the Nine Months Ended September 30,
	2025		2024
	(in millions)
Operating Activities:
Net income	$	549	$	555
Adjustments to reconcile net income to net cash provided from operating activities —
Depreciation and amortization, total	512		466
Deferred income taxes	188		206









Other, net	—		7
Changes in certain current assets and liabilities —
-Receivables	328		386
-Natural gas for sale, net of temporary LIFO liquidation	(27)		3
-Prepaid income taxes	(34)		35

-Other current assets	8		(92)
-Accounts payable	(103)		(105)


-Natural gas cost over recovery	(30)		12
-Other current liabilities	(13)		(66)
Net cash provided from operating activities	1,378		1,407
Investing Activities:
Property additions	(1,179)		(1,064)
Cost of removal, net of salvage	(70)		(63)
Change in construction payables, net	45		(13)
Investment in unconsolidated subsidiaries	(43)		(64)
Returned investment in unconsolidated subsidiaries	128		4

Other investing activities	—		4
Net cash used for investing activities	(1,119)		(1,196)
Financing Activities:
Decrease in notes payable, net	(312)		(352)
Proceeds —
Senior notes	850		450
First mortgage bonds	—		156

Other long-term debt	—		9


Redemptions — First mortgage bonds	(50)		—



Return of capital to parent company	(23)		—

Capital contributions from parent company	40		—
Payment of common stock dividends	(446)		(454)
Other financing activities	(16)		(10)
Net cash provided from (used for) financing activities	43		(201)
Net Change in Cash, Cash Equivalents, and Restricted Cash	302		10
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	44		35
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	346	$	45
Supplemental Cash Flow Information:
Cash paid (received) during the period for —
Interest (net of $12 and $16 capitalized for 2025 and 2024, respectively)	$	297	$	258
Income taxes, net	16		(54)
Noncash transactions —
Accrued property additions at end of period	87		126
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.

Table of Contents Index to Financial Statements

SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


Assets	At September 30, 2025		At December 31, 2024
	(in millions)
Current Assets:
Cash and cash equivalents	$	346	$	43
Receivables —

Customer accounts	223		399
Unbilled revenues	73		244



Other accounts and notes	64		45
Accumulated provision for uncollectible accounts	(44)		(33)
Materials and supplies	59		66
Natural gas for sale	415		388


Prepaid expenses	82		45




Other regulatory assets	177		187
Other current assets	38		55
Total current assets	1,433		1,439
Property, Plant, and Equipment:
In service	23,516		22,338
Less: Accumulated depreciation	6,165		5,887
Plant in service, net of depreciation	17,351		16,451
Construction work in progress	978		1,057
Total property, plant, and equipment	18,329		17,508
Other Property and Investments:
Goodwill	5,015		5,015
Equity investments in unconsolidated subsidiaries	1,175		1,279
Other intangible assets, net of amortization of $178 and $173, respectively	4		9
Miscellaneous property and investments	25		25
Total other property and investments	6,219		6,328
Deferred Charges and Other Assets:
Operating lease right-of-use assets, net of amortization	89		38
Prepaid pension costs	208		191


Other regulatory assets, deferred	506		481


Other deferred charges and assets	142		192
Total deferred charges and other assets	945		902
Total Assets	$	26,926	$	26,177

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

Table of Contents Index to Financial Statements

SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


Liabilities and Stockholder's Equity	At September 30, 2025		At December 31, 2024
	(in millions)
Current Liabilities:
Securities due within one year	$	751	$	302
Notes payable	144		455

Accounts payable —
Affiliated	58		75
Other	419		437
Customer deposits	91		98


Accrued taxes	76		85
Accrued interest	77		88

Accrued compensation	119		129






Natural gas cost over recovery	163		193
Other regulatory liabilities	30		7
Other current liabilities	133		149
Total current liabilities	2,061		2,018
Long-term Debt	8,579		8,229
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	1,992		1,796
Deferred credits related to income taxes	728		755

Employee benefit obligations	60		78


Operating lease obligations	88		30
Other cost of removal obligations	1,908		1,846
Accrued environmental remediation	203		198



Other deferred credits and liabilities	218		231
Total deferred credits and other liabilities	5,197		4,934
Total Liabilities	15,837		15,181







Common Stockholder's Equity (See accompanying statements)	11,089		10,996
Total Liabilities and Stockholder's Equity	$	26,926	$	26,177

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

Table of Contents Index to Financial Statements

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
Net income	—		108		—		108

Capital contributions from parent company	6		—		—		6
Other comprehensive income	—		—		7		7
Cash dividends on common stock	—		(151)		—		(151)

Balance at June 30, 2024	10,844		165		35		11,044
Net income	—		38		—		38


Capital contributions from parent company	1		—		—		1
Other comprehensive income (loss)	—		—		(4)		(4)
Cash dividends on common stock	—		(152)		—		(152)
Other	—		1		—		1
Balance at September 30, 2024	$	10,845	$	52	$	31	$	10,928

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
Net income	—		106		—		106


Capital contributions from parent company	23		—		—		23
Other comprehensive income (loss)	—		—		(7)		(7)
Cash dividends on common stock	—		(148)		—		(148)
Other	—		(1)		—		(1)
Balance at June 30, 2025	10,833		312		53		11,198
Net income	—		25		—		25

Capital contributions from parent company	21		—		—		21
Other comprehensive income (loss)	—		—		(7)		(7)
Cash dividends on common stock	—		(149)		—		(149)
Other	—		1		—		1
Balance at September 30, 2025	$	10,854	$	189	$	46	$	11,089

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

Table of Contents Index to Financial Statements

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	44
B	Regulatory Matters	48
C	Contingencies	54
D	Revenue from Contracts with Customers and Lease Income	56
E	Consolidated Entities and Equity Method Investments	63
F	Financing	64
G	Income Taxes	68
H	Retirement Benefits	70
I	Fair Value Measurements	73
J	Derivatives	77
K	Acquisitions and Dispositions	89
L	Segment and Related Information	90

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	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 September 30, 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 September 30, 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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Other intangible assets were as follows:


	At September 30, 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	$	(186)	$	26	$	212	$	(182)	$	30
Trade names	64		(64)		—		64		(59)		5
PPA fair value adjustments	390		(183)		207		390		(168)		222
Other	3		(3)		—		3		(3)		—
Total subject to amortization	$	669	$	(436)	$	233	$	669	$	(412)	$	257
Not subject to amortization:
FCC licenses	75		—		75		75		—		75
Total other intangible assets	$	744	$	(436)	$	308	$	744	$	(412)	$	332

Southern Power*()**
PPA fair value adjustments	$	390	$	(183)	$	207	$	390	$	(168)	$	222

Southern Company Gas*()**

Gas marketing services
Customer relationships	$	156	$	(152)	$	4	$	156	$	(150)	$	6
Trade names	26		(26)		—		26		(23)		3
Total other intangible assets	$	182	$	(178)	$	4	$	182	$	(173)	$	9

(*)All subject to amortization.

Amortization associated with other intangible assets was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)
Southern Company(a)	$	8	$	9	$	24	$	27
Southern Power(b)	5		5		15		15
Southern Company Gas
Gas marketing services	2		2		5		5

(a)Includes $5 million for the three months ended September 30, 2025 and 2024 and $15 million for the nine months ended September 30, 2025 and 2024 recorded as a reduction to operating revenues.

(b)Recorded as a reduction to operating revenues.

Table of Contents Index to Financial Statements

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 September 30, 2025
Cash and cash equivalents	$	3,341	$	937	$	1,047	$	346
Restricted cash(*):
Other current assets	1		—		—		—

Total cash, cash equivalents, and restricted cash	$	3,342	$	937	$	1,047	$	346

At December 31, 2024
Cash and cash equivalents	$	1,070	$	97	$	159	$	43
Restricted cash(*):
Other current assets	31		21		9		1

Total cash, cash equivalents, and restricted cash	$	1,101	$	118	$	168	$	44

(*)For Georgia Power, reflects remaining proceeds at December 31, 2024 from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects remaining proceeds at December 31, 2024 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 September 30, 2025 and December 31, 2024, respectively.

Natural Gas for Sale

With the exception of Nicor Gas, Southern Company Gas records natural gas inventories on a weighted average cost basis. For any declines in market prices below the weighted average cost considered to be non-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 decrements that occurred during the year have been restored as of September 30, 2025.

Table of Contents Index to Financial Statements

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 nine months ended September 30, 2025 was as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power
	(in millions)
Balance at December 31, 2024	$	(705)	$	70	$	(827)	$	52
Accrual(*)	58		23		24		11
Weather-related damages	(209)		(97)		(104)		(8)
Balance at September 30, 2025	$	(856)	$	(4)	$	(907)	$	55

(*)For Alabama Power, includes $7 million of undistributed customer bill credits related to the nuclear fuel disposal costs litigation award, as directed by the Alabama PSC in its December 2024 order. See Note 3 to the financial statements under "Nuclear Fuel Disposal Costs" in Item 8 of the Form 10-K for additional information.

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.

Asset Retirement Obligations

See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information.

In June 2025, Alabama Power recorded a net decrease of approximately $257 million to its AROs related to the CCR Rule and the related state rule resulting from changes in estimates, including lower future inflation rates, higher discount rates, and timing of closure activities.

Also in June 2025, Mississippi Power, as a joint owner of Alabama Power's Plant Greene County Units 1 and 2, recorded a net decrease of approximately $13 million to its AROs related to the CCR Rule and the related Alabama state rule resulting from changes in estimates, including lower future inflation rates, higher discount rates, and timing of closure activities.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

(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 September 30, 2025 and December 31, 2024 were as follows:


Regulatory Clause	Balance Sheet Line Item	At September 30, 2025		At December 31, 2024
		(in millions)
Alabama Power






Rate ECR	Other regulatory assets, current	$	14	$	—
	Other regulatory assets, deferred	69		—
	Other regulatory liabilities, current	—		29

Georgia Power
Fuel Cost Recovery	Receivables – under recovered retail fuel clause revenues	$	487	$	713
	Deferred under recovered retail fuel clause revenues	197		453


Mississippi Power
Fuel Cost Recovery(*)	Receivables – customer accounts, net	$	30	$	—
	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	$	163	$	193

(*)Mississippi Power also has wholesale MRA and Market Based (MB) fuel cost recovery factors. At September 30, 2025 and December 31, 2024, wholesale MRA fuel cost over recovery was immaterial and $19 million, respectively, and was included in other current liabilities on Mississippi Power's balance sheets. The wholesale MB fuel cost recovery was immaterial for both periods presented.

Alabama Power

Petition for Certificate of Convenience and Necessity

On August 13, 2025, the Alabama PSC approved Alabama Power's petition for a certificate of convenience and necessity authorizing Alabama Power to complete the acquisition of Tenaska Alabama Partners, L.P., which had been approved by the FERC on June 6, 2025. The transaction closed on September 30, 2025. Tenaska Alabama Partners, L.P. had owned and operated the Lindsay Hill Generating Station, an approximately 855-MW combined cycle generation facility in Autauga County, Alabama. Alabama Power expects to recover all approved costs associated with the acquisition through existing rate mechanisms as outlined in Note 2 to the financial statements under "Alabama Power – Petition for Certificate of Convenience and Necessity" in Item 8 of the Form 10-K. See Note (K) under "Alabama Power" for additional information.

Jurisdictional Separation Study Order

On June 5, 2025, the Alabama PSC approved an order authorizing Alabama Power to implement changes related to the Jurisdictional Separation Study (JSS) under Rate RSE, which allocates costs between retail and other electric services. For 2026, a revised JSS allocation factor will account for system capacity previously allocated to wholesale electric services that will be used for retail electric service starting January 1, 2026. In addition, Alabama Power is authorized to establish a regulatory asset to defer certain costs associated with this capacity for 2026, and those costs are estimated to be approximately $100 million. Beginning in 2027, Alabama Power will amortize the regulatory asset on a levelized basis over a period not exceeding 10 years.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Rate NDR

Beginning with July 2025 billings, the NDR reserve maintenance charge was suspended and the reserve establishment charge was activated as a result of the NDR balance falling below $50 million. Alabama Power expects to collect $18 million in the second half of 2025 and approximately $36 million annually beginning in 2026 under Rate NDR unless the NDR balance exceeds $75 million. At September 30, 2025, Alabama Power's regulatory asset balance related to NDR was $4 million. Rate NDR is intended to allow recovery of any existing deferred storm-related operations and maintenance costs and any future reserve deficits over a 48-month period. The Alabama PSC gives Alabama Power authority to record a deficit balance in the NDR when costs of storm damage exceed any established reserve balance.

Reliability Reserve Accounting Order

On June 19, 2025, Alabama Power notified the Alabama PSC of its intent to use a portion of its $131 million reliability reserve balance during 2025. As a result, Alabama Power had usage of the reliability reserve in the amount of $30 million during the third quarter 2025 for reliability-related transmission, distribution, and generation expenses. At September 30, 2025, Alabama Power's reliability reserve balance was $101 million.

Nuclear Production Tax Credits Order

On October 7, 2025, the Alabama PSC issued an order authorizing Alabama Power to establish a regulatory liability for nuclear PTCs received through its nuclear generating facilities pursuant to Internal Revenue Code §45U for tax years 2024 through 2032. For the 2024 tax year, Alabama Power claimed §45U PTCs on Southern Company's consolidated tax return. The base credit amount of $36 million is included in a regulatory liability. Additionally, Alabama Power claimed the prevailing wage multiplier on its 2024 federal income tax return for a total credit claimed of $180 million. The §45U PTC is available for tax years 2024 to 2032 and is subject to a phase-out. As such, Alabama Power will evaluate annually whether it qualifies for the credit. The §45U PTCs will be deferred as a regulatory liability until the Alabama PSC provides direction on how to apply them for the benefit of customers. The ultimate outcome of this matter cannot be determined at this time. See Note (G) under "Unrecognized Tax Benefits" herein for additional information.

Georgia Power

2022 ARP

On July 1, 2025, the Georgia PSC approved a settlement agreement among Georgia Power, the staff of the Georgia PSC, and certain intervenors to extend the 2022 ARP for an additional three-year term through December 31, 2028 (ARP Extension). Under the ARP Extension, base rates will not be adjusted in 2026, 2027, or 2028 (ARP Extension Period) except for reasonable and prudent storm damage costs incurred through December 31, 2025, which will be determined in a separate regulatory proceeding.

Under the ARP Extension, Georgia Power's retail ROE set point will continue at 10.50% and its equity ratio will continue at 56%. Additionally, the retail ROE range approved by the Georgia PSC in the 2022 ARP, of 9.50% to 11.90%, will continue. The ARP Extension includes, among other things, the following modifications to the 2022 ARP:

Storm damage costs will be included in a separate regulatory proceeding to be filed no sooner than February 1, 2026 and no later than July 1, 2026 to recover the actual reasonable and prudent storm costs incurred through December 31, 2025. Subject to Georgia PSC approval, new rates would be effective approximately 90 days after the filing is made. The Georgia PSC will determine the period over which any such storm damage costs will be recovered.
Amortization of regulatory assets and liabilities in the 2022 ARP, which were subsequently included in current rates through annual compliance filings, will continue through the ARP Extension Period. This includes those regulatory asset and liability balances that were projected to be fully amortized through 2025 or during the ARP Extension Period.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The amounts previously deferred during the 2022 ARP for ITCs and PTCs will be amortized through the ARP Extension Period. The acceleration of amortization during the ARP Extension Period is subject to the Internal Revenue Code normalization rules and other guidance (if any) released by the IRS. Certain amounts of ITCs generated during the ARP Extension Period will be amortized over five years, and additional ITC amounts will be deferred to a regulatory liability during the ARP Extension Period. Sixty percent (60%) of PTC benefits generated (excluding PTCs generated under Internal Revenue Code §45J) during the ARP Extension Period will be credited to income tax expense as generated. The remaining forty percent (40%) will be deferred to a regulatory liability.
The period for depreciation and amortization related to certain generating plants and net book values of retired generating plants will be 13 years effective January 1, 2026.

Using the retail ROE range approved by the Georgia PSC in the 2022 ARP, earnings above 11.90% retail ROE will continue to be subject to sharing whereby 40% of earnings above the band would be applied to regulatory assets, 40% would be directly refunded to customers, and the remaining 20% would be retained by Georgia Power. There will be no recovery of any earnings shortfall below 9.50% retail ROE on an actual basis. However, if at any time during the term of the ARP Extension Period, Georgia Power projects that its retail earnings will be less than the lower end of the approved retail ROE range for any calendar year of the ARP Extension Period, it may petition the Georgia PSC for implementation of the Interim Cost Recovery (ICR) tariff to adjust Georgia Power's retail rates to achieve a retail ROE equal to the lower end of the approved retail ROE range. Any ICR tariff would expire at the earlier of January 1, 2029 or the end of the calendar year in which the ICR tariff becomes effective. In lieu of requesting implementation of an ICR tariff, or if the Georgia PSC chooses not to implement the ICR tariff, Georgia Power may file a full base rate case.

Except as provided above, Georgia Power will not file a base rate increase while the ARP Extension is in effect. Georgia Power is required to file a general base rate case by July 1, 2028.

Integrated Resource Plans

On September 4, 2025, the Georgia PSC approved Georgia Power's June 2025 request to certify a Georgia Power-owned battery energy storage facility with a capacity of 200 MWs and a projected COD in 2027.

On July 30, 2025, Georgia Power requested certification from the Georgia PSC, for which a final decision is expected to be rendered in December 2025, for the following resources:

As included in the 2022 IRP final order, Georgia Power initiated a request for proposals (RFP) of up to 8,500 MWs of capacity from a variety of resources with projected CODs or delivery commencement dates between 2028 and 2030. The RFP resulted in 18 resources, totaling 7,999 MWs, being selected which consist of four PPAs (including two affiliate PPAs with Southern Power that are subject to approval by the FERC) with capacity totaling 1,195 MWs commencing between 2028 and 2030, three project sites consisting of five Georgia Power-owned combined cycle units with capacity totaling 3,692 MWs and projected CODs commencing between 2029 and 2030, nine Georgia Power-owned battery energy storage facilities with capacity totaling 2,762 MWs and projected CODs commencing between 2028 and 2030, and two Georgia Power-owned battery energy storage facilities with solar with capacity totaling 350 MWs and projected CODs commencing in 2028.
In July 2025, Georgia Power extended 50 MWs of an existing 750-MW affiliate PPA with Mississippi Power for an additional year through December 31, 2029.
Additionally, in July 2025, Georgia Power executed a 20-year non-affiliate PPA for 930 MWs commencing in 2030 and five 25-year non-affiliate PPAs totaling 646 MWs commencing in 2027.
Georgia Power entered into agreements to initiate acquisition of property and construction of a 260-MW Georgia Power-owned battery energy storage facility with a projected COD in 2027 to be paired with an existing non-affiliate solar PPA.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The certification requests in June and July 2025 associated with these Georgia Power-owned projects and related transmission investments total approximately $16.7 billion, excluding AFUDC. At September 30, 2025, Georgia Power had recorded approximately $725 million of combined capital costs, excluding AFUDC, for the projects requested for certification.

As required by the 2025 IRP decision, Georgia Power filed with the Georgia PSC on September 17, 2025 an updated load forecast to support the certification requests from the RFP of up to 8,500 MWs. The Georgia PSC will determine the necessary generation resources to certify. See "2025 IRP" herein for information regarding the 2025 IRP.

The ultimate outcome of these matters cannot be determined at this time.

2025 IRP

On July 15, 2025, the Georgia PSC approved Georgia Power's 2025 IRP, as modified by a stipulation among Georgia Power, the staff of the Georgia PSC, and certain intervenors. In the 2025 IRP decision, the Georgia PSC approved the following requests:

Extended operation of Plant Scherer Unit 3 (614 MWs based on 75% ownership) through at least December 31, 2035 and Plant Gaston Units 1 through 4 (500 MWs based on 50% ownership through SEGCO) through December 31, 2034. See Note 7 to the financial statements under "SEGCO" in Item 8 of the Form 10-K for additional information.
Installation of environmental controls and natural gas co-firing at Plant Bowen Units 1 through 4 (3,160 MWs), Plant Scherer Units 1 and 2 (137 MWs based on 8.4% ownership), and Plant Scherer Unit 3 for compliance with both ELG supplemental rules and GHG rules.
Upgrades to Plant McIntosh Units 10 and 11 (1,319 MWs) for a projected 194 MWs of incremental capacity by 2028 and Plant McIntosh Units 1 through 8 (640 MWs) for a projected 74 MWs of incremental capacity by 2033.
Upgrades to Plant Vogtle Units 1 and 2 (1,060 MWs based on 45.7% ownership) for a projected 54 MWs of incremental capacity, some of which could be available as early as 2028.
Investments related to the continued reliable hydro operations of four facilities, as well as the authority to spend up to $25 million to undertake engineering studies related to two additional hydro facilities.
RFP for at least 1,100 MWs of utility scale and distributed generation renewable resources.
Issuance of a capacity RFP to procure resources to meet capacity needs in 2032 and 2033.
Strategic power delivery infrastructure plan necessary to help ensure adequate reliability and serve the projected future load growth expected in Georgia.
Certification of approximately 187 MWs of wholesale capacity associated with Plant Scherer Unit 3 to be placed in retail rate base, some of which will be available beginning in 2026.

In addition, the 2025 IRP assumes Plant Bowen Units 1 and 2 will operate through at least the end of 2035.

Fuel Cost Recovery

On May 14, 2025, Georgia Power submitted an Interim Fuel Rider (IFR) notification and plan informing the Georgia PSC that Georgia Power's under recovered fuel balance accumulated since May 31, 2023 exceeded the IFR threshold of $200 million, established in a Georgia PSC stipulation approved in May 2023. Georgia Power proposed no fuel cost recovery rate change and is required to monitor and report to the Georgia PSC monthly as long as the under recovered fuel balance accumulated since May 31, 2023 is above $200 million. On September 15, 2025, Georgia Power filed its most recent IFR plan and notification which also proposed no fuel cost recovery rate change. At September 30, 2025, Georgia Power's under recovered fuel balance accumulated since May 31, 2023 did not exceed the IFR threshold of $200 million. Georgia Power is scheduled to file its next fuel case no later than February 28, 2026.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Nuclear Construction

Georgia Power placed Plant Vogtle Units 3 and 4 in service on July 31, 2023 and April 29, 2024, respectively. During the third quarter 2025, following the completion of site demobilization efforts, Southern Nuclear evaluated the remaining contractor obligations and reduced the remaining estimate to complete forecast by approximately $33 million. Accordingly, Georgia Power recorded a pre-tax credit to income of approximately $33 million ($25 million after tax) in the third quarter 2025 to recognize capital costs previously charged to income. Georgia Power's net investment in connection with Plant Vogtle Units 3 and 4 at September 30, 2025 is $10.690 billion, which excludes capitalized AFUDC of approximately $440 million accrued through Unit 4's in-service date.

Other Construction

At September 30, 2025, Georgia Power had recorded approximately $1.5 billion 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 September 30, 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

(*)Excludes a 200-MW battery energy storage facility which has not incurred significant costs. See "Integrated Resource Plans" herein for additional information.

Mississippi Power

Performance Evaluation Plan

On June 17, 2025, the Mississippi PSC approved Mississippi Power's annual retail PEP filing for 2025, resulting in an annual increase in revenues of approximately 4.0%, or $41 million, 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, and the remaining approximately $19 million became effective with the first billing cycle of July 2025.

Integrated Resource Plans

On July 8, 2025, Mississippi Power extended 50 MWs of an existing 750-MW affiliate PPA with Georgia Power for an additional year through December 31, 2029, subject to approval by the Georgia PSC. The ultimate outcome of this matter cannot be determined at this time. See "Georgia Power – Integrated Resource Plans" herein for additional information.

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.

Ad Valorem Tax Adjustment

On August 5, 2025, the Mississippi PSC approved Mississippi Power's annual ad valorem tax adjustment filing for 2025, resulting in a $7 million annual increase in revenues effective with the first billing cycle of September 2025.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

This increase is not expected to have a significant effect on Mississippi Power's net income but will affect operating cash flows.

System Restoration Rider

On June 17, 2025, the Mississippi PSC approved Mississippi Power's annual SRR filing for 2025, with no change in retail rates. Mississippi Power's minimum annual SRR accrual increased from $12.6 million to $13.5 million and the target property damage reserve balance increased from $75 million to $125 million. Mississippi Power will continue to record a minimum annual accrual until a target property damage reserve balance of $125 million is met.

Reliability Reserve Accounting Order

On March 17, 2025, Mississippi Power notified the Mississippi PSC of its intent to use a portion of its $57 million reliability reserve balance during 2025, through the annual PEP filing. On June 17, 2025, the Mississippi PSC approved the annual PEP filing which allowed the use of $10.9 million of the reliability reserve balance, which Mississippi Power used for reliability-related generation, transmission, and distribution expenses in the second quarter 2025. See "Performance Evaluation Plan" herein for information regarding approval of the annual PEP filing.

Plant Daniel

On June 19, 2025, the Florida PSC issued a final order approving the transfer of FP&L's 50% ownership interest in Plant Daniel Units 1 and 2 to Mississippi Power. On July 30, 2025, Mississippi Power completed the acquisition of FP&L's 50% interest in Plant Daniel Units 1 and 2 and, as part of the acquisition, received approximately $36 million from FP&L, which was recorded as a regulatory liability and is being amortized to offset incremental costs as authorized by the Mississippi PSC.

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 provided 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 concluded and had no impact on the current period financial statements.

Rate Proceedings

On August 12, 2025, Virginia Natural Gas, the Virginia Commission staff, and certain intervenors entered into a stipulation related to Virginia Natural Gas' August 2024 general base rate case filing. The stipulation provides for a $40 million increase in annual base rate revenues, including the recovery of investments under the SAVE program, an ROE of 9.85%, and an equity ratio of 49.35%. Interim rates became effective January 1, 2025, subject to refund, based on Virginia Natural Gas' original requested increase of approximately $63 million. The Virginia Commission is expected to issue an order on the requested increase in the fourth quarter 2025. The ultimate outcome of this matter cannot be determined at this time.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

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.

Southern Company

On July 11, 2025, a purported class action complaint was filed in the U.S. District Court for the District of Maryland against two nuclear consulting companies and all U.S. commercial nuclear power operators, or affiliated entities, including Southern Company. The purported class of plaintiffs includes all persons employed in nuclear power generation by the defendants, including nuclear operators, nuclear engineers, and nuclear technicians, from May 1, 2003 to the present. The complaint alleges that, since at least May 2003, the nuclear power industry conspired to fix and suppress employee compensation for nuclear power generation employees in violation of federal antitrust law. Although not named as defendants, other entities are accused of having participated in the plaintiffs' alleged conspiracy, including Southern Nuclear. The plaintiffs seek to recover, among other relief, unspecified monetary damages, including treble damages and attorneys' fees, and injunctive relief. On October 15, 2025, Southern Company moved to dismiss the complaint. An adverse outcome could have a material impact on Southern Company's financial statements.

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

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

on the plaintiff's employment retaliation claim. In December 2024, the plaintiff filed a motion to dismiss the defendants' counterclaims. On July 15, 2025, the court denied the plaintiff's motion to dismiss the defendants' counterclaims and the defendants' motion for judgment on the pleadings. On August 6, 2025, the plaintiff asserted a counterclaim against the defendants. On September 8, 2025, the defendants renewed their motion for judgment on the pleadings. 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 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.

On July 29, 2025, Coosa Riverkeeper filed a citizen suit in the U.S. District Court for the Northern District of Alabama alleging that Alabama Power's closure of the Plant Gadsden surface impoundment violates the RCRA and regulations governing CCR. Among other relief requested, Coosa Riverkeeper seeks declaratory judgment that Alabama Power is in violation of RCRA and regulations governing CCR, and preliminary and injunctive relief to require Alabama Power to close the CCR unit and operate a groundwater monitoring system in a different manner to satisfy RCRA and the regulations governing CCR requirements. On September 29, 2025, Alabama Power filed a motion to dismiss the citizen suit.

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.

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 September 30, 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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Southern Company Gas' environmental remediation liability was $227 million and $222 million at September 30, 2025 and December 31, 2024, respectively, based on the estimated cost of environmental investigation and remediation at 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.

Nuclear Fuel Disposal Costs

On September 5, 2025, Alabama Power and Georgia Power filed their fifth round of lawsuits against the U.S. government in the Court of Federal Claims, seeking damages for the costs of continuing to store spent nuclear fuel at Plants Farley, Hatch, and Vogtle Units 1 and 2 for the period from January 1, 2020 through December 31, 2024. Damages will continue to accumulate until the issue is resolved, the U.S. government disposes of Alabama Power's and Georgia Power's spent nuclear fuel pursuant to its contractual obligations, or alternative storage is otherwise provided. No amounts have been recognized in the financial statements as of September 30, 2025 for any potential recoveries from the pending lawsuits.

The final outcome of this matter cannot be determined at this time. However, Alabama Power and Georgia Power expect to credit any recoveries for the benefit of customers in accordance with direction from their respective PSC; therefore, no material impact on Southern Company's, Alabama Power's, or Georgia Power's net income is expected.

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 filed an administrative appeal with the Mississippi DOR on May 29, 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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following table disaggregates revenue from contracts with customers for the three and nine months ended September 30, 2025 and 2024:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2025
Operating revenues
Retail electric revenues
Residential	$	2,737	$	982	$	1,653	$	102	$	—	$	—
Commercial	2,074		614		1,358		102		—		—
Industrial	1,195		481		620		94		—		—
Other	32		3		27		2		—		—
Total retail electric revenues	6,038		2,080		3,658		300		—		—
Natural gas distribution revenues
Residential	236		—		—		—		—		236
Commercial	65		—		—		—		—		65
Transportation	316		—		—		—		—		316
Industrial	4		—		—		—		—		4
Other	47		—		—		—		—		47
Total natural gas distribution revenues	668		—		—		—		—		668
Wholesale electric revenues
PPA energy revenues	373		81		58		3		246		—
PPA capacity revenues	180		32		40		16		109		—
Non-PPA revenues	106		42		23		150		59		—
Total wholesale electric revenues	659		155		121		169		414		—
Other natural gas revenues
Gas marketing services	56		—		—		—		—		56
Other	1		—		—		—		—		1
Total other natural gas revenues	57		—		—		—		—		57
Other revenues	400		59		191		12		3		—
Total revenue from contracts with customers	7,822		2,294		3,970		481		417		725
Other revenue sources(*)	1		24		(200)		(1)		196		9
Total operating revenues	$	7,823	$	2,318	$	3,770	$	480	$	613	$	734

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2025
Operating revenues
Retail electric revenues
Residential	$	6,822	$	2,512	$	4,056	$	254	$	—	$	—
Commercial	5,400		1,599		3,539		262		—		—
Industrial	3,127		1,304		1,560		263		—		—
Other	94		8		79		7		—		—
Total retail electric revenues	15,443		5,423		9,234		786		—		—
Natural gas distribution revenues
Residential	1,475		—		—		—		—		1,475
Commercial	357		—		—		—		—		357
Transportation	1,053		—		—		—		—		1,053
Industrial	30		—		—		—		—		30
Other	217		—		—		—		—		217
Total natural gas distribution revenues	3,132		—		—		—		—		3,132
Wholesale electric revenues
PPA energy revenues	1,097		193		192		8		739		—
PPA capacity revenues	478		89		113		50		276		—
Non-PPA revenues	235		139		43		384		180		—
Total wholesale electric revenues	1,810		421		348		442		1,195		—
Other natural gas revenues
Gas marketing services	394		—		—		—		—		394
Other	11		—		—		—		—		11
Total other natural gas revenues	405		—		—		—		—		405
Other revenues	1,352		209		627		42		17		—
Total revenue from contracts with customers	22,142		6,053		10,209		1,270		1,212		3,537
Other revenue sources(*)	430		245		(291)		31		514		15
Total operating revenues	$	22,572	$	6,298	$	9,918	$	1,301	$	1,726	$	3,552

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2024
Operating revenues
Retail electric revenues
Residential	$	2,651	$	975	$	1,580	$	96	$	—	$	—
Commercial	1,991		607		1,288		96		—		—
Industrial	1,184		483		606		95		—		—
Other	33		3		28		2		—		—
Total retail electric revenues	5,859		2,068		3,502		289		—		—
Natural gas distribution revenues
Residential	212		—		—		—		—		212
Commercial	55		—		—		—		—		55
Transportation	294		—		—		—		—		294
Industrial	4		—		—		—		—		4
Other	45		—		—		—		—		45
Total natural gas distribution revenues	610		—		—		—		—		610
Wholesale electric revenues
PPA energy revenues	300		58		26		1		222		—
PPA capacity revenues	190		24		42		15		125		—
Non-PPA revenues	67		34		—		106		67		—
Total wholesale electric revenues	557		116		68		122		414		—
Other natural gas revenues
Gas marketing services	51		—		—		—		—		51
Other	6		—		—		—		—		6
Total other natural gas revenues	57		—		—		—		—		57
Other revenues	398		60		170		13		9		—
Total revenue from contracts with customers	7,481		2,244		3,740		424		423		667
Other revenue sources(*)	(207)		(106)		(268)		(12)		177		15
Total operating revenues	$	7,274	$	2,138	$	3,472	$	412	$	600	$	682

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2024
Operating revenues
Retail electric revenues
Residential	$	6,551	$	2,477	$	3,832	$	242	$	—	$	—
Commercial	5,075		1,583		3,243		249		—		—
Industrial	3,019		1,338		1,424		257		—		—
Other	94		9		78		7		—		—
Total retail electric revenues	14,739		5,407		8,577		755		—		—
Natural gas distribution revenues
Residential	1,244		—		—		—		—		1,244
Commercial	300		—		—		—		—		300
Transportation	959		—		—		—		—		959
Industrial	25		—		—		—		—		25
Other	221		—		—		—		—		221
Total natural gas distribution revenues	2,749		—		—		—		—		2,749
Wholesale electric revenues
PPA energy revenues	838		171		66		3		616		—
PPA capacity revenues	495		71		106		47		320		—
Non-PPA revenues	179		103		3		292		176		—
Total wholesale electric revenues	1,512		345		175		342		1,112		—
Other natural gas revenues
Gas marketing services	352		—		—		—		—		352
Other	16		—		—		—		—		16
Total other natural gas revenues	368		—		—		—		—		368
Other revenues	1,145		174		507		34		31		—
Total revenue from contracts with customers	20,513		5,926		9,259		1,131		1,143		3,117
Other revenue sources(*)	(130)		(123)		(514)		(13)		454		103
Total operating revenues	$	20,383	$	5,803	$	8,745	$	1,118	$	1,597	$	3,220

(*)Other revenue sources relate to revenues from customers accounted for as derivatives and leases, alternative revenue programs primarily 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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Contract Balances

The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers at September 30, 2025 and December 31, 2024:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivable
At September 30, 2025	$	2,942	$	827	$	1,390	$	137	$	106	$	331
At December 31, 2024	3,048		783		1,244		113		106		660
Contract Assets
At September 30, 2025	$	443	$	8	$	283	$	—	$	—	$	74
At December 31, 2024	323		3		184		—		—		72
Contract Liabilities
At September 30, 2025	$	185	$	15	$	72	$	2	$	2	$	—
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, 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. 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 September 30, 2025 and December 31, 2024, Southern Company's unregulated distributed generation business had contract assets of $77 million and $67 million, respectively, and contract liabilities of $96 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 and nine months ended September 30, 2025, which were included in contract liabilities at December 31, 2024, were $20 million and $92 million, respectively, for Southern Company, $8 million and $24 million, respectively, for Georgia Power, 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

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

to certain fixed price contracts. Revenues from contracts with customers related to these performance obligations remaining at September 30, 2025 are expected to be recognized as follows:


	2025 (remaining)		2026		2027		2028		2029		Thereafter
	(in millions)
Southern Company	$	296	$	742	$	470	$	344	$	309	$	2,636
Alabama Power	46		6		5		2		—		—
Georgia Power	19		48		22		15		2		27
Mississippi Power(*)	16		66		69		73		12		—
Southern Power(*)	75		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 and nine months ended September 30, 2025 and 2024 was as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2025
Lease income - interest income on sales-type leases	$	6	$	—	$	—	$	4	$	2	$	—
Lease income - operating leases	38		2		7		1		37		9
Variable lease income	141		—		—		—		151		—
Total lease income	$	185	$	2	$	7	$	5	$	190	$	9

Nine Months Ended September 30, 2025
Lease income - interest income on sales-type leases	$	18	$	—	$	—	$	11	$	7	$	—
Lease income - operating leases	104		5		22		2		111		27
Variable lease income	347		1		—		—		375		—
Total lease income	$	469	$	6	$	22	$	13	$	493	$	27

Three Months Ended September 30, 2024
Lease income - interest income on sales-type leases	$	5	$	—	$	—	$	3	$	2	$	—
Lease income - operating leases	38		2		13		—		20		9
Variable lease income	142		—		—		—		152		—
Total lease income	$	185	$	2	$	13	$	3	$	174	$	9

Nine Months Ended September 30, 2024
Lease income - interest income on sales-type leases	$	18	$	—	$	—	$	11	$	7	$	—
Lease income - operating leases	108		6		28		2		63		27
Variable lease income	343		—		—		—		370		—
Total lease income	$	469	$	6	$	28	$	13	$	440	$	27

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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

(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 September 30, 2025 and December 31, 2024, Southern Holdings had equity method investments totaling $116 million and $128 million, respectively, primarily related to investments in venture capital funds focused on energy and utility investments. The net loss from these investments totaled $20 million for the nine months ended September 30, 2025. Earnings/losses from these investments for the three months ended September 30, 2025 and the three and nine months ended September 30, 2024 were immaterial.

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 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 September 30, 2025 and December 31, 2024, SP Solar had total assets of $5.3 billion and $5.4 billion, respectively, total liabilities of $365 million and $372 million, respectively, and noncontrolling interests of $1.0 billion. 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 September 30, 2025 and December 31, 2024, SP Wind had total assets of $1.8 billion and $2.0 billion, respectively, total liabilities of $190 million and $177 million, respectively, and noncontrolling interests of $30 million and $35 million, respectively. 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.

In July 2025, Southern Power notified the Class A members of its intent to exercise the option to purchase all Class A membership interests in the SP Wind tax equity partnership on December 31, 2025 under the terms of the limited liability agreement.

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 September 30, 2025 and December 31, 2024, the other VIEs had total assets of $1.6 billion, total liabilities of $241 million and $224 million, respectively, and noncontrolling interests of $642 million and $691 million,

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

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 September 30, 2025 and December 31, 2024 were as follows:


Investment Balance	At September 30, 2025		At December 31, 2024
	(in millions)
SNG	$	1,141	$	1,245
Other	34		34
Total	$	1,175	$	1,279

The earnings from Southern Company Gas' equity method investment in SNG were $31 million and $34 million for the three months ended September 30, 2025 and 2024, respectively, and $93 million and $110 million for the nine months ended September 30, 2025 and 2024, respectively. The earnings from Southern Company Gas' other equity method investments were immaterial for all periods presented.

(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 September 30, 2025, committed credit arrangements with banks were as follows:


	Expires
Company	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)	15		—		650		700		1,365		1,365		—
Georgia Power(c)	—		—		—		2,050		2,050		2,042		—
Mississippi Power(a)	—		125		—		150		275		275		—
Southern Power(a)(d)	—		—		—		600		600		600		—
Southern Company Gas(e)	—		—		—		1,600		1,600		1,598		—
SEGCO	30		—		—		—		30		30		30
Southern Company	$	45	$	625	$	650	$	7,600	$	8,920	$	8,909	$	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 $15 million was unused at September 30, 2025. Alabama Power is not party to this arrangement.

(c)Georgia Power had $26 million of letters of credit outstanding under an uncommitted letter of credit facility at September 30, 2025.

(d)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 2028, respectively, of which $17 million and $4 million, respectively, was unused at September 30, 2025. In addition, Southern Power Company had $23 million of letters of credit outstanding under an uncommitted letter of credit facility at September 30, 2025. Southern Power's subsidiaries are not parties to its bank credit arrangements or letter of credit facilities.

(e)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 2030. Southern Company Gas' committed credit arrangement expiring in 2030 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 2030, the allocations between Southern Company Gas Capital and Nicor Gas may be adjusted.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

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. In May and June 2025, SEGCO amended its credit arrangements aggregating $30 million, which extended the maturity dates from 2025 to 2026. In August 2025, Alabama Power amended and restated its $650 million credit arrangement and extended the maturity date from 2026 to 2029.

Subject to applicable market conditions, Southern Company and its subsidiaries expect to renew or replace their bank credit arrangements as needed, prior to expiration. In connection therewith, Southern Company and its subsidiaries may extend the maturity dates and/or increase or decrease the lending commitments thereunder.

These bank credit arrangements, as well as the term loan arrangements of the Registrants, Nicor Gas, and SEGCO, contain covenants that limit debt levels and contain cross-acceleration 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 September 30, 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 September 30, 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 $58 million at Mississippi Power). In addition, at September 30, 2025, Alabama Power and Georgia Power had approximately $280 million and $384 million, respectively, of fixed rate revenue bonds outstanding that are required to be remarketed within the next 12 months. Alabama Power's $280 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.

Convertible Senior Notes

In May 2025, Southern Company issued $1.65 billion aggregate principal amount of Series 2025A 3.25% Convertible Senior Notes due June 15, 2028 (Series 2025A Convertible Senior Notes). Southern Company used a portion of the proceeds from the Series 2025A Convertible Senior Notes to repurchase approximately $781.6 million of the $1.725 billion aggregate principal amount outstanding of its Series 2023A 3.875% Convertible Senior Notes due December 15, 2025 and approximately $328.1 million of the $1.5 billion aggregate principal amount outstanding of its Series 2024A 4.50% Convertible Senior Notes due June 15, 2027, in each case, through privately negotiated transactions with a limited number of holders thereof. Southern Company evaluated these repurchases and determined that all of the repurchased notes were accounted for as extinguishment of debt. As a result of these transactions, Southern Company recognized a $129 million loss on extinguishment of debt in the second quarter 2025 within interest expense in the consolidated statements of income.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Interest on the Series 2025A Convertible Senior Notes is payable semiannually, beginning December 15, 2025. The Series 2025A Convertible Senior Notes will mature on June 15, 2028, unless earlier converted or repurchased, but are not redeemable at the option of Southern Company. The Series 2025A Convertible Senior Notes are direct, unsecured, and unsubordinated obligations of Southern Company, ranking equally with all of Southern Company's other unsecured and unsubordinated indebtedness from time to time outstanding, and are effectively subordinated to all secured indebtedness of Southern Company.

Holders may convert their Series 2025A Convertible Senior Notes at their option prior to the close of business on the business day preceding March 15, 2028, but only under the following circumstances:

during any calendar quarter (and only during such calendar quarter), if the last reported sale price of Southern Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day as determined by Southern Company;
during the five business day period after any 10 consecutive trading day period (Measurement Period) in which the trading price per $1,000 principal amount of Series 2025A Convertible Senior Notes, as determined by Southern Company following a request by a holder of Series 2025A Convertible Senior Notes, for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or
upon the occurrence of certain corporate events specified in the indenture governing the Series 2025A Convertible Senior Notes.

On or after March 15, 2028, a holder may convert all or any portion of its Series 2025A Convertible Senior Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions.

Southern Company will settle conversions of the Series 2025A Convertible Senior Notes by paying cash up to the aggregate principal amount of the Series 2025A Convertible Senior Notes to be converted and paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at Southern Company's election, in respect of the remainder, if any, of Southern Company's conversion obligation in excess of the aggregate principal amount of the Series 2025A Convertible Senior Notes being converted. The Series 2025A Convertible Senior Notes are initially convertible at a rate of 8.8077 shares of common stock per $1,000 principal amount converted, which is approximately equal to $113.54 per share of common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture governing the Series 2025A Convertible Senior Notes), Southern Company will, in certain circumstances, increase the conversion rate by a number of additional shares of common stock for conversions in connection with the make-whole fundamental change.

Upon the occurrence of a fundamental change, other than an excluded fundamental change (each as defined in the indenture governing the Series 2025A Convertible Senior Notes), holders of the Series 2025A Convertible Senior Notes may require Southern Company to purchase all or a portion of their Series 2025A Convertible Senior Notes, in principal amounts equal to $1,000 or an integral multiple thereof, for cash at a price equal to 100% of the principal amount of the Series 2025A Convertible Senior Notes to be purchased plus any accrued and unpaid interest.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

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 nine months ended September 30, 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
1,000,000	$90.9196	June 30, 2026
1,255,000	$91.0566	June 30, 2026
1,324,942	$88.7048	December 31, 2026
2,277,113	$88.3227	December 31, 2026
3,130,641	$88.2823	December 31, 2026
3,255,866	$89.4692	December 31, 2026
3,850,000	$90.6617	December 31, 2026
2,470,306	$94.5394	June 30, 2027
2,314,487	$92.7805	June 30, 2027
1,590,200	$93.4524	June 30, 2027
4,000,000	$90.8141	June 30, 2027
2,346,903	$91.1610	June 30, 2027
2,876,034	$92.2437	June 30, 2027
2,642,878(b)	$93.4521(b)	June 30, 2027

(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 3,015,668, of which the remaining 372,790 shares were sold subsequent to September 30, 2025. The initial forward price was determined after the completion of sales by the forward seller in October 2025.

As of September 30, 2025, Southern Company had entered into separate forward sale contracts with forward purchasers for a total of 43,707,160 shares of common stock, of which 43,334,370 shares had been sold by the forward sellers, and no shares had been settled under the forward sale contracts.

In October 2025, Southern Company entered into another separate forward sale contract with a forward purchaser for the sale of 911,448 shares of common stock with an initial forward price of $94.2411 per share, to be settled on or before June 30, 2027.

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.

Earnings per Share

For Southern Company, the 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

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

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 "Convertible Senior Notes" and "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 September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
	(in millions)
As reported shares	1,102	1,097	1,101	1,096
Effect of stock-based compensation	6	6	6	6
Effect of convertible senior notes	1	—	1	—
Effect of forward sale contracts	1	—	—	—
Diluted shares	1,110	1,103	1,108	1,102

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.

(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

Alabama Power, Georgia Power, and Southern Power have 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. During the first nine months of 2025, Alabama Power, Georgia Power, and Southern Power received cash of $80 million, $64 million, and $19 million, respectively, from 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.

During the first nine months of 2025, pursuant to certain joint ownership agreements, Georgia Power paid $121 million to the other Vogtle Owners for advanced nuclear PTCs for Plant Vogtle Units 3 and 4. The gain was recognized in 2025 as an income tax benefit and was immaterial.

Tax Credit and Net Operating Loss Carryforwards

Southern Company's federal PTC and ITC carryforwards are expected to be fully utilized by 2031. The utilization of each Registrant's estimated federal and state tax attributes and related valuation allowances could be impacted by numerous factors, including the acquisition of additional renewable energy and battery energy storage projects, changes in taxable income projections, and potential income tax rate changes. See Notes (B) and (K) under "Georgia Power" and "Southern Power," respectively, herein for information regarding current renewable energy and battery energy storage projects.

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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Southern Company

Southern Company's effective tax rate was 20.3% for the nine months ended September 30, 2025 compared to 19.0% for the corresponding period in 2024. The effective tax rate increase was primarily due to charges to a valuation allowance on certain state tax credit carryforwards at Georgia Power and the recognition of certain state tax positions from amended returns in the second quarter 2024 at Georgia Power, partially offset by a net increase in the flowback of excess deferred income taxes at the regulated utilities and an increase in the generation of advanced nuclear PTCs at Georgia Power.

Alabama Power

Alabama Power's effective tax rate was 23.0% for the nine months ended September 30, 2025 compared to 21.2% 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.

Georgia Power

Georgia Power's effective tax rate was 20.0% for the nine months ended September 30, 2025 compared to 18.7% for the corresponding period in 2024. The effective tax rate increase was primarily due to charges to a valuation allowance on certain state tax credit carryforwards and the recognition of certain state tax positions from amended returns in the second quarter 2024, partially offset by increases in the flowback of excess state deferred income taxes and in the generation of advanced nuclear PTCs.

Mississippi Power

Mississippi Power's effective tax rate was 22.5% for the nine months ended September 30, 2025 compared to 20.0% 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 rate was 6.0% for the nine months ended September 30, 2025 compared to 14.4% for the corresponding period in 2024. The effective tax rate decrease was primarily due to a change in pre-tax earnings attributable to Southern Power, including the impact of accelerated depreciation related to wind repowering projects and changes in tax rates resulting from tax legislation enacted by the State of Georgia in the second quarters of 2024 and 2025. See Note (K) under "Southern Power – Wind Repowering Projects" herein for additional information.

Southern Company Gas

Southern Company Gas' effective tax rate was 23.5% for the nine months ended September 30, 2025 compared to 24.9% 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.

Unrecognized Tax Benefits

Southern Company's, Alabama Power's, and Georgia Power's unrecognized tax positions balances at September 30, 2025 were $380 million, $144 million, and $188 million, respectively. At December 31, 2024, Southern Company's and Georgia Power's unrecognized tax positions balances were $82 million and $34 million, respectively, and Alabama Power had no unrecognized tax positions. The increases from prior periods are related to Alabama Power's and Georgia Power's ability to meet prevailing wage requirements related to existing zero-emission nuclear power PTCs and will not impact Southern Company's, Alabama Power's, and Georgia Power's effective tax rates if recognized. The ultimate outcome of this unrecognized tax benefit, which is expected to be resolved within the next 12 months, is dependent on acceptance by the IRS and cannot be determined at this time.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

(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 and nine months ended September 30, 2025 and 2024 are presented in the following tables.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 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)		(100)		(15)		(4)		(22)
Amortization:
Prior service costs	—		—		—		—		—		(1)
Regulatory asset	—		—		—		—		—		4
Net loss	9		2		5		2		1		—
Net periodic pension income	$	(79)	$	(22)	$	(30)	$	(3)	$	—	$	(1)

Postretirement Benefits
Service cost	$	4	$	1	$	1	$	—	$	—	$	—
Interest cost	17		5		6		1		—		2
Expected return on plan assets	(23)		(8)		(9)		(1)		—		(2)
Amortization:
Prior service costs	1		—		1		—		—		—
Regulatory asset	—		—		—		—		—		1
Net gain	(4)		(2)		—		—		—		(2)
Net periodic postretirement benefit income	$	(5)	$	(4)	$	(1)	$	—	$	—	$	(1)

Nine Months Ended September 30, 2025
Pension Plans
Service cost	$	198	$	45	$	47	$	8	$	4	$	20
Interest cost	498		116		147		22		7		33
Expected return on plan assets	(960)		(234)		(298)		(44)		(12)		(65)
Amortization:
Prior service costs	—		—		1		—		—		(2)
Regulatory asset	—		—		—		—		—		11
Net (gain) loss	28		8		12		3		—		(1)
Net periodic pension income	$	(236)	$	(65)	$	(91)	$	(11)	$	(1)	$	(4)

Postretirement Benefits
Service cost	$	10	$	3	$	3	$	—	$	—	$	1
Interest cost	52		13		19		2		—		6
Expected return on plan assets	(68)		(26)		(25)		(1)		—		(7)
Amortization:
Prior service costs	2		—		1		—		—		—
Regulatory asset	—		—		—		—		—		5
Net gain	(11)		(2)		(2)		—		—		(6)
Net periodic postretirement benefit cost (income)	$	(15)	$	(12)	$	(4)	$	1	$	—	$	(1)

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2024
Pension Plans
Service cost	$	73	$	17	$	18	$	3	$	2	$	7
Interest cost	159		37		47		7		2		11
Expected return on plan assets	(316)		(77)		(99)		(14)		(4)		(21)
Amortization:
Prior service costs	—		—		—		—		—		(1)
Regulatory asset	—		—		—		—		—		4
Net (gain) loss	14		4		6		—		(1)		—
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)		(1)		—		(2)
Amortization:
Prior service costs	1		—		1		—		—		—
Regulatory asset	—		—		—		—		—		2
Net (gain) loss	(4)		—		(3)		1		—		(1)
Net periodic postretirement benefit cost (income)	$	(5)	$	(4)	$	(3)	$	1	$	—	$	1

Nine Months Ended September 30, 2024
Pension Plans
Service cost	$	219	$	51	$	53	$	9	$	5	$	21
Interest cost	476		111		143		21		6		32
Expected return on plan assets	(947)		(230)		(296)		(43)		(12)		(64)
Amortization:
Prior service costs	—		—		1		—		—		(2)
Regulatory asset	—		—		—		—		—		11
Net loss	41		12		15		2		—		—
Net periodic pension income	$	(211)	$	(56)	$	(84)	$	(11)	$	(1)	$	(2)

Postretirement Benefits
Service cost	$	11	$	3	$	3	$	—	$	—	$	1
Interest cost	49		12		17		2		—		6
Expected return on plan assets	(66)		(26)		(24)		(1)		—		(6)
Amortization:
Prior service costs	2		—		1		—		—		—
Regulatory asset	—		—		—		—		—		5
Net gain	(12)		(2)		(4)		—		—		(4)
Net periodic postretirement benefit cost (income)	$	(16)	$	(13)	$	(7)	$	1	$	—	$	2

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

(I) FAIR VALUE MEASUREMENTS

At September 30, 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 September 30, 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)	$	15	$	89	$	—	$	—	$	104
Interest rate derivatives	—		7		—		—		7
Foreign currency derivatives	—		31		—		—		31
Investments in trusts:(b)
Domestic equity	934		288		—		—		1,222
Foreign equity	174		216		—		—		390
U.S. Treasury and government agency securities	—		367		—		—		367
Municipal bonds	—		50		—		—		50
Pooled funds – fixed income	—		6		—		—		6
Corporate bonds	—		505		—		—		505
Mortgage- and asset-backed securities	—		120		—		—		120
Private equity	—		—		—		186		186
Cash and cash equivalents	1		—		—		—		1
Other	40		4		—		9		53
Investments, available-for-sale:
U.S. Treasury and government agency securities	3		10		—		—		13

Corporate bonds	—		2		—		—		2
Mortgage- and asset-backed securities	—		7		—		—		7
Cash equivalents and restricted cash	2,547		17		—		—		2,564
Other investments	10		36		8		—		54
Total	$	3,724	$	1,755	$	8	$	195	$	5,682
Liabilities:
Energy-related derivatives(a)	$	12	$	77	$	—	$	—	$	89
Interest rate derivatives	—		191		—		—		191
Foreign currency derivatives	—		21		—		—		21
Contingent consideration	3		—		14		—		17
Other	—		13		11		—		24
Total	$	15	$	302	$	25	$	—	$	342

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Fair Value Measurements Using
At September 30, 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	$	—	$	31	$	—	$	—	$	31

Nuclear decommissioning trusts:(b)
Domestic equity	499		278		—		—		777
Foreign equity	174		—		—		—		174
U.S. Treasury and government agency securities	—		16		—		—		16
Municipal bonds	—		1		—		—		1
Corporate bonds	—		307		—		—		307
Mortgage- and asset-backed securities	—		33		—		—		33
Private equity	—		—		—		186		186
Other	19		2		—		9		30
Cash equivalents	264		17		—		—		281
Other investments	—		36		—		—		36
Total	$	956	$	721	$	—	$	195	$	1,872
Liabilities:
Energy-related derivatives	$	—	$	25	$	—	$	—	$	25



Georgia Power
Assets:
Energy-related derivatives	$	—	$	27	$	—	$	—	$	27

Nuclear decommissioning trusts:(b)
Domestic equity	435		1		—		—		436
Foreign equity	—		215		—		—		215
U.S. Treasury and government agency securities	—		351		—		—		351
Municipal bonds	—		49		—		—		49
Corporate bonds	—		198		—		—		198
Mortgage- and asset-backed securities	—		87		—		—		87
Other	21		2		—		—		23
Cash equivalents	844		—		—		—		844
Total	$	1,300	$	930	$	—	$	—	$	2,230
Liabilities:
Energy-related derivatives	$	—	$	24	$	—	$	—	$	24

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Fair Value Measurements Using
At September 30, 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	$	—	$	20	$	—	$	—	$	20

Cash equivalents	13		—		—		—		13
Total	$	13	$	20	$	—	$	—	$	33
Liabilities:
Energy-related derivatives	$	—	$	23	$	—	$	—	$	23



Southern Power
Assets:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4
Foreign currency derivatives	—		20		—		—		20
Cash equivalents	813		—		—		—		813
Total	$	813	$	24	$	—	$	—	$	837
Liabilities:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1

Contingent consideration	3		—		14		—		17
Other	—		13		11		—		24
Total	$	3	$	14	$	25	$	—	$	42

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	15	$	7	$	—	$	—	$	22

Non-qualified deferred compensation trusts:
Domestic equity	—		9		—		—		9
Foreign equity	—		1		—		—		1
Pooled funds – fixed income	—		6		—		—		6
Cash and cash equivalents	1		—		—		—		1
Cash equivalents	329		—		—		—		329

Total	$	345	$	23	$	—	$	—	$	368
Liabilities:
Energy-related derivatives(a)	$	12	$	4	$	—	$	—	$	16
Interest rate derivatives	—		56		—		—		56

Total	$	12	$	60	$	—	$	—	$	72

(a)Excludes cash collateral of $10 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

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

the three and nine months ended September 30, 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 September 30,				Nine Months Ended September 30,
Fair value increases (decreases)	2025		2024		2025		2024
	(in millions)
Southern Company	$	132	$	97	$	290	$	230
Alabama Power	75		67		160		153
Georgia Power	57		30		130		77

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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

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 September 30, 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 $195 million and unfunded commitments related to the private market investments totaled $107 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 September 30, 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	$	71.9	$	12.0	$	20.8	$	1.8	$	3.8	$	9.3
Fair value	68.4		10.9		19.5		1.6		3.8		8.5

(*)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

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

At September 30, 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(*)	443	2030	2028
Alabama Power	132	2028	—
Georgia Power	123	2028	—
Mississippi Power	101	2029	—
Southern Power	9	2030	2025
Southern Company Gas(*)	78	2028	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 96 million mmBtu long natural gas positions and 18 million mmBtu short natural gas positions at September 30, 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 1.5 million mmBtu for Southern Company, which includes 0.4 million mmBtu for Alabama Power, 0.6 million mmBtu for Georgia Power, 0.2 million mmBtu for Mississippi Power, and 0.3 million mmBtu for Southern Power.

For cash flow hedges of energy-related derivatives, the estimated pre-tax gains (losses) expected to be reclassified from accumulated OCI to earnings for the 12-month period ending September 30, 2026 is immaterial for Southern Company, Southern Power, and Southern Company Gas.

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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

At September 30, 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 September 30, 2025
	(in millions)					(in millions)



Fair Value Hedges of Existing Debt
Southern Company parent	$	400	1-day SOFR + 0.80%	1.75%	March 2028	$	(23)
Southern Company parent	1,000		1-day SOFR + 2.48%	3.70%	April 2030	(108)
Southern Company parent	565		1-day SOFR + 1.56%	6.50%	March 2045	3
Southern Company Gas	500		1-day SOFR + 0.49%	1.75%	January 2031	(56)
Southern Company	$	2,465				$	(184)

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 September 30, 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 September 30, 2025, the following foreign currency derivatives were outstanding:


	Pay Notional		Pay Rate	Receive Notional		Receive Rate	Hedge Maturity Date	Fair Value Gain (Loss) at September 30, 2025
	(in millions)			(in millions)				(in millions)
Cash Flow Hedges of Existing Debt
Southern Power	$	564	3.78%	€	500	1.85%	June 2026	$	20
Fair Value Hedges of Existing Debt
Southern Company parent	1,476		3.39%	1,250		1.88%	September 2027	(10)
Southern Company	$	2,040		€	1,750			$	10

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

For cash flow hedges of foreign currency derivatives, the estimated pre-tax gains expected to be reclassified from accumulated OCI to earnings for the 12-month period ending September 30, 2026 are $20 million for Southern Power.

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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(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 September 30, 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	$	34	$	44	$	33	$	82
Non-current	51		32		42		40


Total derivatives designated as hedging instruments for regulatory purposes	85		76		75		122
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current	2		6		4		3
Non-current	4		—		4		—
Interest rate derivatives:
Current	7		53		—		61
Non-current	—		138		—		208
Foreign currency derivatives:
Current	20		21		—		36
Non-current	11		—		—		182
Total derivatives designated as hedging instruments in cash flow and fair value hedges	44		218		8		490
Energy-related derivatives not designated as hedging instruments

Current	13		7		5		3
Non-current	—		—		1		—

Total derivatives not designated as hedging instruments	13		7		6		3
Gross amounts recognized	142		301		89		615
Gross amounts offset(a)	(54)		(63)		(44)		(61)
Net amounts recognized in the Balance Sheets(b)	$	88	$	238	$	45	$	554

Alabama Power
Energy-related derivatives designated as hedging instruments for regulatory purposes

Current	$	13	$	13	$	11	$	30
Non-current	18		12		15		12
Total derivatives designated as hedging instruments for regulatory purposes	31		25		26		42






Gross amounts offset	(17)		(17)		(19)		(19)
Net amounts recognized in the Balance Sheets	$	14	$	8	$	7	$	23

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	At September 30, 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	$	8	$	15	$	6	$	32
Non-current	17		9		13		9
Total derivatives designated as hedging instruments for regulatory purposes	25		24		19		41





Energy-related derivatives not designated as hedging instruments

Current	2		—		—		1

Gross amounts recognized	27		24		19		42
Gross amounts offset	(16)		(16)		(15)		(15)
Net amounts recognized in the Balance Sheets	$	11	$	8	$	4	$	27

Mississippi Power
Energy-related derivatives designated as hedging instruments for regulatory purposes

Current	$	4	$	12	$	5	$	15
Non-current	16		11		14		19
Total derivatives designated as hedging instruments for regulatory purposes	20		23		19		34






Gross amounts offset	(15)		(15)		(17)		(17)
Net amounts recognized in the Balance Sheets	$	5	$	8	$	2	$	17

Southern Power
Derivatives designated as hedging instruments in cash flow hedges
Energy-related derivatives:
Current	$	1	$	1	$	1	$	—
Non-current	3		—		3		—
Foreign currency derivatives:
Current	20		—		—		11
Non-current	—		—		—		40
Total derivatives designated as hedging instruments in cash flow hedges	24		1		4		51







Net amounts recognized in the Balance Sheets	$	24	$	1	$	4	$	51

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	At September 30, 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	$	9	$	4	$	11	$	5


Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current	1		5		3		3
Non-current	1		—		1		—
Interest rate derivatives:
Current	—		13		—		17
Non-current	—		43		—		67
Total derivatives designated as hedging instruments in cash flow and fair value hedges	2		61		4		87
Energy-related derivatives not designated as hedging instruments

Current	11		7		5		2
Non-current	—		—		1		—

Total derivatives not designated as hedging instruments	11		7		6		2
Gross amounts recognized	22		72		21		94
Gross amounts offset(a)	(6)		(15)		7		(10)
Net amounts recognized in the Balance Sheets(b)	$	16	$	57	$	28	$	84

(a)Gross amounts offset includes cash collateral held on deposit in broker margin accounts of $10 million and $17 million at September 30, 2025 and December 31, 2024, respectively.

(b)Net amounts of derivative instruments outstanding exclude immaterial premium and intrinsic value associated with weather derivatives at September 30, 2025 and December 31, 2024.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

At September 30, 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 September 30, 2025:
Energy-related derivatives:
Other regulatory assets, current	$	(24)	$	(7)	$	(8)	$	(8)	$	(1)
Other regulatory assets, deferred	(1)		(1)		—		—		—


Other regulatory liabilities, current	13		7		1		—		5
Other regulatory liabilities, deferred	20		7		8		5		—
Total energy-related derivative gains (losses)	$	8	$	6	$	1	$	(3)	$	4

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

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

For the three and nine months ended September 30, 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	Three Months Ended September 30,				Nine Months Ended September 30,
2025	2024		2025		2024
	(in millions)
Southern Company
Cash flow hedges:
Energy-related derivatives	$	(12)	$	(7)	$	(6)	$	(11)
Interest rate derivatives	(1)		(8)		6		16
Foreign currency derivatives	(6)		15		60		(4)
Fair value hedges(*):
Foreign currency derivatives	1		(2)		(12)		(8)
Total	$	(18)	$	(2)	$	48	$	(7)




Georgia Power
Cash flow hedges:
Interest rate derivatives	$	—	$	1	$	3	$	17


Mississippi Power
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	—	$	7

Southern Power
Cash flow hedges:
Energy-related derivatives	$	(2)	$	(2)	$	—	$	(2)

Foreign currency derivatives	(6)		15		60		(4)
Total	$	(8)	$	13	$	60	$	(6)

Southern Company Gas
Cash flow hedges:
Energy-related derivatives	$	(10)	$	(4)	$	(6)	$	(9)
Interest rate derivatives	(1)		(6)		3		(5)
Total	$	(11)	$	(10)	$	(3)	$	(14)

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

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

For the three and nine months ended September 30, 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	Three Months Ended September 30,				Nine Months Ended September 30,
2025	2024	2025		2024
		(in millions)
Southern Company
Fuel	Energy-related cash flow hedges	$	—	$	(3)	$	1	$	(5)
Cost of natural gas	Energy-related cash flow hedges	(1)		(4)		(1)		(34)
Other operations and maintenance	Energy-related cash flow hedges	—		—		—		(1)
Interest expense, net of amounts capitalized	Interest rate cash flow hedges	(4)		(4)		(10)		(12)
	Foreign currency cash flow hedges	(2)		(3)		(8)		(9)
	Interest rate fair value hedges	16		78		85		47
Other income (expense), net	Foreign currency cash flow hedges	1		24		68		7
	Foreign currency fair value hedges	5		58		160		79
	Amount excluded from effectiveness testing recognized in earnings	(1)		3		12		8







Southern Power
Fuel	Energy-related cash flow hedges	$	—	$	(3)	$	1	$	(5)
Interest expense, net of amounts capitalized	Foreign currency cash flow hedges	(2)		(3)		(8)		(9)
Other income (expense), net	Foreign currency cash flow hedges	1		24		68		7
Southern Company Gas
Cost of natural gas	Energy-related cash flow hedges	$	(1)	$	(4)	$	(1)	$	(34)
Operations and maintenance	Energy-related cash flow hedges	—		—		—		(1)
Interest expense, net of amounts capitalized	Interest rate cash flow hedges	—		—		(1)		—
	Interest rate fair value hedges	7		28		28		18

At September 30, 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 September 30, 2025		At December 31, 2024		At September 30, 2025		At December 31, 2024
	(in millions)
Southern Company

Long-term debt	$	(3,733)	$	(2,936)	$	164	$	242

Southern Company Gas

Long-term debt	$	(445)	$	(422)	$	52	$	75

Pre-tax gains (losses) on energy-related derivatives not designated as hedging instruments were $(1) million and $6 million for the three months ended September 30, 2025 and 2024, respectively, and $(7) million and $69 million for the nine months ended September 30, 2025 and 2024, respectively, and reflected in cost of natural gas on the statements of income of Southern Company and Southern Company Gas.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(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 September 30, 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 $20 million at September 30, 2025. For Southern Power, there were no foreign currency derivative liabilities with contingent features or associated collateral requirements arising from the credit-risk-related contingent features at a rating below BBB- and/or Baa3 at September 30, 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 September 30, 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 September 30, 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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

(K) ACQUISITIONS AND DISPOSITIONS

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

Alabama Power

On September 30, 2025, Alabama Power completed its acquisition of Tenaska Alabama Partners, L.P., which owned and operated the Lindsay Hill Generating Station. The transaction was accounted for as a business combination. The total purchase price was $635 million, of which $622 million was related to net assets recorded within property, plant, and equipment and the remainder was included in inventory, current receivables, and accounts payable on the balance sheet. The transaction was recorded as a business acquisition within the investing section of the statement of cash flows. Alabama Power assumed an existing power sales agreement under which the full output of the generating facility remains committed to a non-affiliated third party through April 2027. See Note (B) under "Alabama Power – Petition for Certificate of Convenience and Necessity" for additional information.

Mississippi Power

On July 30, 2025, Mississippi Power completed the acquisition of FP&L's 50% interest in Plant Daniel Units 1 and 2 and, as part of the acquisition, received approximately $36 million from FP&L. See Note (B) under "Mississippi Power – Plant Daniel" for additional information.

Southern Power

Construction Projects

During the nine months ended September 30, 2025, Southern Power continued construction of the three phases of the 512-MW Millers Branch solar facility. At September 30, 2025, the total cost of construction incurred for the Millers Branch project was $661 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 September 30, 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 nine months ended September 30, 2025, Southern Power continued the development project to repower the Kay Wind facility and began development projects to repower the Grant Plains, Grant Wind, and Wake Wind facilities. At September 30, 2025, the total cost of construction incurred related to the projects was $165 million and

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

is included in CWIP. The repowered output of the facilities is contracted under new and amended PPAs. The ultimate outcome of these matters cannot be determined at this time.


Project Facility	Resource	Approximate Nameplate Capacity (MW)	Location	Projected COD
Projects Under Construction at September 30, 2025
Kay Wind(*)	Wind	200	Kay County, OK	Third quarter 2026
Grant Plains	Wind	147	Grant County, OK	Fourth quarter 2026
Grant Wind	Wind	152	Grant County, OK	Fourth quarter 2026
Wake Wind	Wind	257	Crosby & Floyd Counties, TX	Second quarter 2027

(*)The facility has a total capacity of 299 MWs, of which 200 MWs is projected to be repowered and is contracted under a PPA.

(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 one reportable segment. Revenues from sales by Southern Power to the traditional electric operating companies were $112 million and $341 million for the three and nine months ended September 30, 2025, respectively, and $102 million and $280 million for the three and nine months ended September 30, 2024, respectively. Revenues from sales of natural gas from Southern Company Gas to the traditional electric operating companies and Southern Power were immaterial for all 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.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Financial data for business segments for the three and nine months ended September 30, 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 September 30, 2025
Operating revenues	$	6,438	$	613	$	(123)	$	6,928	$	734	$	7,662	$	202	$	(41)	$	7,823
Other segment items(a)(b)	2,723		332		(123)		2,932		464		3,396		209		(41)		3,564
Depreciation and amortization(c)	981		247		—		1,228		176		1,404		18		—		1,422
Earnings from equity method investments	2		—		—		2		31		33		—		—		33
Interest expense	339		25		—		364		94		458		297		—		755
Income taxes (benefit)	477		6		—		483		6		489		(85)		—		404
Segment net income (loss)(b)(c)(d)	$	1,920	$	3	$	—	$	1,923	$	25	$	1,948	$	(237)	$	—	$	1,711

Nine Months Ended September 30, 2025
Operating revenues	$	17,130	$	1,726	$	(368)	$	18,488	$	3,552	$	22,040	$	656	$	(124)	$	22,572
Other segment items(a)(b)	8,191		930		(368)		8,753		2,133		10,886		611		(120)		11,377
Depreciation and amortization(c)	2,885		576		—		3,461		517		3,978		52		—		4,030
Earnings from equity method investments	4		—		—		4		93		97		(21)		—		76
Interest expense(e)	990		76		—		1,066		277		1,343		1,000		—		2,343
Income taxes (benefit)	1,074		3		—		1,077		169		1,246		(273)		—		973
Segment net income (loss)(b)(c)(d)(e)	$	3,994	$	141	$	—	$	4,135	$	549	$	4,684	$	(755)	$	(4)	$	3,925

At September 30, 2025
Goodwill	$	—	$	2	$	—	$	2	$	5,015	$	5,017	$	144	$	—	$	5,161
Total assets	111,734		13,595		(943)		124,386		26,926		151,312		2,397		(461)		153,248

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	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 September 30, 2024
Operating revenues	$	5,927	$	600	$	(105)	$	6,422	$	682	$	7,104	$	215	$	(45)	$	7,274
Other segment items(a)(f)	2,691		322		(105)		2,908		421		3,329		203		(41)		3,491
Depreciation and amortization	898		133		—		1,031		162		1,193		17		—		1,210
Earnings from equity method investments	2		—		—		2		34		36		(5)		—		31
Interest expense	319		30		—		349		84		433		261		(2)		692
Income taxes (benefit)	403		33		—		436		11		447		(70)		—		377
Segment net income (loss)(d)(f)	$	1,618	$	82	$	—	$	1,700	$	38	$	1,738	$	(201)	$	(2)	$	1,535

Nine Months Ended September 30, 2024
Operating revenues	$	15,389	$	1,597	$	(293)	$	16,693	$	3,220	$	19,913	$	598	$	(128)	$	20,383
Other segment items(a)(b)(f)	7,293		834		(293)		7,834		1,866		9,700		548		(102)		10,146
Depreciation and amortization	2,631		378		—		3,009		475		3,484		53		—		3,537
Earnings from equity method investments	4		—		—		4		110		114		(8)		1		107
Interest expense	954		89		—		1,043		250		1,293		769		(12)		2,050
Income taxes (benefit)	885		32		—		917		184		1,101		(211)		—		890
Segment net income (loss)(b)(d)(f)	$	3,630	$	264	$	—	$	3,894	$	555	$	4,449	$	(569)	$	(13)	$	3,867

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.

(b)For the traditional electric operating companies, includes pre-tax credits to income at Georgia Power related to the estimated probable loss associated with the completion of Plant Vogtle Units 3 and 4 of $33 million ($25 million after tax) for the three and nine months ended September 30, 2025 and $21 million ($16 million after tax) for the nine months ended September 30, 2024. Also includes a pre-tax gain at Georgia Power of approximately $114 million ($84 million after tax) for the nine months ended September 30, 2024 related to the sale of transmission line assets under the integrated transmission system agreement. See Note 2 to the financial statements under "Georgia Power" in Item 8 of the Form 10-K for additional information.

(c)For Southern Power, includes accelerated depreciation related to the repowering of the Kay Wind, Grant Plains, Grant Wind, and Wake Wind facilities of $112 million ($80 million after tax, net of noncontrolling interest impacts) and $181 million ($130 million after tax, net of noncontrolling interest impacts) for the three and nine months ended September 30, 2025, respectively. 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.

(d)Attributable to Southern Company.

(e)For All Other, includes a pre-tax loss of $129 million ($97 million after tax) associated with the extinguishment of debt at the parent company. See Note (F) under "Convertible Senior Notes" herein for additional information.

(f)For the traditional electric operating companies, includes a pre-tax impairment loss at Alabama Power of $36 million ($27 million after tax) related to Alabama Power discontinuing the development of a multi-use commercial facility, which was sold in July 2025. See Note 1 to the financial statements under "Impairment of Long-Lived Assets" in Item 8 of the Form 10-K for additional information.

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

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, amortization of cloud software, and, for Georgia Power, charges (credits) for estimated loss on Plant Vogtle Units 3 and 4. Alabama Power's utility operations and maintenance expenses are disaggregated into expenses related to Rate RSE and Rate CNP Compliance. See Note 2 to the financial statements under "Alabama Power" in Item 8 of the Form 10-K for additional information.

During the third quarter 2025, Mississippi Power updated the information provided to its CODM. As a result, Mississippi Power has identified certain operational and environmental compliance expenses as significant segment expenses and has recast prior period information to conform to the current period presentation.

Financial data for significant segment expenses and other segment information for the three and nine months ended September 30, 2025 and 2024 was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)
Alabama Power
Operating revenues	$	2,318	$	2,138	$	6,298	$	5,803
Utility operations and maintenance
Rate RSE expenses	346		365		1,085		1,028
Rate CNP Compliance expenses	69		72		211		202
Total utility operations and maintenance	415		437		1,296		1,230
Other segment items(a)(b)	641		594		1,794		1,628
Depreciation and amortization	380		366		1,121		1,091
Interest expense	119		113		343		337
Income taxes	175		135		401		322
Segment net income(b)	$	588	$	493	$	1,343	$	1,195

Capital expenditures	$	537	$	483	$	1,696	$	1,404

Georgia Power
Operating revenues	$	3,770	$	3,472	$	9,918	$	8,745
Utility operations and maintenance	576		549		1,680		1,510
Other segment items(a)(c)	942		981		3,048		2,593
Depreciation and amortization	526		462		1,541		1,334
Interest expense	200		184		585		543
Income taxes	278		246		612		516
Segment net income(c)	$	1,248	$	1,050	$	2,452	$	2,249

Capital expenditures	$	1,961	$	1,557	$	5,273	$	3,910

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)
Mississippi Power
Operating revenues	$	480	$	412	$	1,301	$	1,118

Operational expenses(d)	46		45		134		127
Environmental compliance expenses(e)	3		3		9		9


Other segment items(a)	251		200		686		550
Depreciation and amortization	53		48		157		141
Interest expense	19		19		59		58
Income taxes	24		22		58		47
Segment net income	$	84	$	75	$	198	$	186

Capital expenditures	$	86	$	133	$	225	$	259

(a)Primarily consists of fuel, purchased power, expenses from unregulated products and services, losses (gains) on asset dispositions, amortization of cloud software, taxes other than income taxes, AFUDC equity, and non-service cost-related retirement benefits income. For Alabama Power, includes impairment charges. For Georgia Power, includes credits for estimated loss on Plant Vogtle Units 3 and 4. For Mississippi Power, includes employee benefit expenses and affiliate billings. Also includes earnings from equity method investments, which were immaterial for all periods presented.

(b)For the three and nine months ended September 30, 2024, includes a pre-tax impairment loss of $36 million ($27 million after tax) related to Alabama Power discontinuing the development of a multi-use commercial facility, which was sold in July 2025. See Note 1 to the financial statements under "Impairment of Long-Lived Assets" in Item 8 of the Form 10-K for additional information.

(c)Includes pre-tax credits to income related to the estimated probable loss associated with the completion of Plant Vogtle Units 3 and 4 of $33 million ($25 million after tax) for the three and nine months ended September 30, 2025 and $21 million ($16 million after tax) for the nine months ended September 30, 2024. Also includes a pre-tax gain of approximately $114 million ($84 million after tax) for the nine months ended September 30, 2024 related to the sale of transmission line assets under the integrated transmission system agreement. See Note 2 to the financial statements under "Georgia Power" in Item 8 of the Form 10-K for additional information.

(d)Consists of certain operations and maintenance expenses related to PEP and the MRA tariff, including labor costs, materials, contract services, and other normal operational costs. See Note (B) under "Mississippi Power" herein and Note 2 to the financial statements under "Mississippi Power" in Item 8 of the Form 10-K for additional information regarding PEP and the MRA tariff.

(e)Consists of environmental compliance expenses related to ECO Plan and the MRA tariff. See Note (B) under "Mississippi Power" herein and Note 2 to the financial statements under "Mississippi Power" in Item 8 of the Form 10-K for additional information regarding ECO Plan and the MRA tariff.

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.

Financial data for segment information for the three and nine months ended September 30, 2025 and 2024 was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in millions)
Operating revenues	$	613	$	600	$	1,726	$	1,597
Other segment items(a)	332		322		930		834
Depreciation and amortization(b)	247		133		576		378
Interest expense	25		30		76		89
Income taxes	6		33		3		32
Segment net income(b)(c)	$	3	$	82	$	141	$	264

Table of Contents Index to Financial Statements

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

(a)Primarily consists of fuel, purchased power, other operations and maintenance, taxes other than income taxes, and net income (loss) attributable to noncontrolling interests.

(b)For the three and nine months ended September 30, 2025, includes accelerated depreciation of $112 million ($80 million after tax, net of noncontrolling interest impacts) and $181 million ($130 million after tax, net of noncontrolling interest impacts), respectively, related to the repowering of the Kay Wind, Grant Plains, Grant Wind, and Wake Wind facilities. 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)Southern Power had no earnings from equity method investments for any period presented.

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 through SouthStar.

The "All Other" column includes segments and subsidiaries that fall below the quantitative threshold for separate disclosure.

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 and nine months ended September 30, 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 September 30, 2025
Operating revenues	$	668	$	8	$	58	$	734	$	1	$	(1)	$	734
Other segment items(*)	409		1		50		460		5		(1)		464
Depreciation and amortization	171		1		3		175		1		—		176
Earnings from equity method investments	—		31		—		31		—		—		31
Interest expense	89		10		1		100		(6)		—		94
Income taxes	(13)		7		1		(5)		11		—		6
Segment net income	$	12	$	20	$	3	$	35	$	(10)	$	—	$	25

Nine Months Ended September 30, 2025
Operating revenues	$	3,122	$	24	$	403	$	3,549	$	11	$	(8)	$	3,552
Other segment items(*)	1,842		3		284		2,129		12		(8)		2,133
Depreciation and amortization	502		4		10		516		1		—		517
Earnings from equity method investments	—		93		—		93		—		—		93
Interest expense	252		28		2		282		(5)		—		277
Income taxes (benefit)	109		20		30		159		10		—		169
Segment net income	$	417	$	62	$	77	$	556	$	(7)	$	—	$	549

Total assets at September 30, 2025	$	25,200	$	1,468	$	1,667	$	28,335	$	10,845	$	(12,254)	$	26,926

Three Months Ended September 30, 2024
Operating revenues	$	616	$	8	$	53	$	677	$	6	$	(1)	$	682
Other segment items(*)	366		1		50		417		5		(1)		421
Depreciation and amortization	156		1		4		161		1		—		162
Earnings from equity method investments	—		34		—		34		—		—		34
Interest expense	75		8		1		84		—		—		84
Income taxes	(2)		8		—		6		5		—		11
Segment net income (loss)	$	21	$	24	$	(2)	$	43	$	(5)	$	—	$	38

Nine Months Ended September 30, 2024
Operating revenues	$	2,828	$	24	$	358	$	3,210	$	19	$	(9)	$	3,220
Other segment items(*)	1,612		3		244		1,859		16		(9)		1,866
Depreciation and amortization	459		4		11		474		1		—		475
Earnings from equity method investments	—		110		—		110		—		—		110
Interest expense	229		26		2		257		(7)		—		250
Income taxes (benefit)	125		24		29		178		6		—		184
Segment net income	$	403	$	77	$	72	$	552	$	3	$	—	$	555

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

Previous: Cover and table of contents · Next: Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.