10-K 0000092122-26-000006 (2026-02-19) vs 10-K 0000092122-25-000018 (2025-02-20)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 11,759 |
13.2% |
| MD&A | Item 7 | 39,408 |
32.5% |
| Legal Proceedings | Item 3, via Note 3 – CONTINGENCIES, COMMITMENTS, AND GUARANTEES | 3,681 |
28.3% |
| Accounting Policies | Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 8,197 |
13.2% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 322 words changed in this paragraph; it is 37% similar to last year's version.
On In May 9, 2024, the EPA published the final GHG rules (2024 GHG Rules) to establish GHG emissions standards for existing fossil fuel-fired steam electric generating units and new fossil fuel-fired combustion turbines and combined cycle generation facilities, which requires facilities. The 2024 GHG limits for subcategories of both new and existing units. The new rules Rules do not include standards for existing fossil fuel-fired combustion turbines and or combined cycle generation facilities, which have been deferred to a future rulemaking. Requirements for facilities. Under the 2024 GHG Rules, existing coal-fired units are based on technologies such as carbon capture and sequestration (CCS) and natural gas co-firing. States have 24 months after the rule's publication to submit state plans for existing units. The rule allows states to consider remaining useful life and other factors to specify alternative, unit-specific emissions limits and compliance timelines for existing units, as needed to address reliability and other concerns. Existing source compliance will for steam generating units would begin as early as January 1, 2030, depending on the subcategory. The final rule incorporates some limited reliability mechanisms including a provision subcategory for short-term grid emergencies the affected unit, and a "reliability assurance mechanism" that allows for a one-time, up to one year, extension of existing coal unit retirement dates specified in an approved state plan. The the standards for new combustion turbines and combined cycles include subcategories for low, intermediate, and base load operations. Compliance with new source standards begins when the unit comes online, with requirements for CCS carbon capture and sequestration (CCS) beginning on January 1, 2032. The EPA also simultaneously repealed the Affordable Clean Energy rule. Numerous industry groups, electric generators, and states have filed petitions for review challenging the rule in the U.S. Court of Appeals for the D.C. Circuit. A total of eight stay motions were filed seeking a stay of the rule pending judicial review, which were denied by the U.S. Court of Appeals for the D.C. Circuit on July 19, 2024. On February 5, 2025, the EPA filed a motion in the U.S. Court of Appeals for the D.C. Circuit requesting a 60-day abeyance of the challenges so that the new Trump Administration can determine how to proceed with the litigation. On October 16, 2024, the U.S. Supreme Court denied emergency stay applications filed by numerous industry groups, electric generators, and states. The ultimate impact of the final rules and associated legal matters cannot be determined at this time; however, it may result in significant compliance costs.
Source: Item 7, 10-K 0000092122-26-000006 vs Item 7, 10-K 0000092122-25-000018
Risk Factors 310 words changed in this paragraph; it is 40% similar to last year's version.
The traditional electric operating companies are experiencing projected demand that significantly exceeds recent experience, creating the need for new power generating resources and transmission facilities. The majority of this demand is driven by the power needs and projected power needs of data centers to serve an increasingly digital economy and to support artificial intelligence. Other demands are coming from new industrial facilities with advanced manufacturing processes for products such products as electric vehicles and batteries. Ensuring that incremental revenues from Extending service to these projected new demands cover incremental costs and risks will be critical customers necessitates significant capital expenditures, which in turn requires sufficient access to continuing the traditional electric operating companies' value proposition to customers. The new nature sources of these industries, capital. These additional capital spending needs, the increased concentration of business within a single industry based on emerging technologies, and uncertainties on the actual capacity required to satisfy the projected new demands of these new industries may impact creates risks for the traditional electric operating companies. Ensuring that incremental revenues from these projected new demands cover incremental costs and risks is critical to continuing the traditional electric operating companies' value proposition to customers. In particular, Georgia Power has agreed to file its next base rate case in a manner that will ensure the incremental revenue from large load customers has downward pressure, on a levelized basis, of at least $556 million per year for the years 2029, 2030, and 2031. See Note 2 to the financial statements under "Georgia Power – Integrated Resource Plans – Certification Requests" in Item 8 herein for additional information. While electric service agreements with new large load customers (including data centers) typically include provisions such as early termination payments, minimum bills, and financial security, these and other contractual provisions may not fully protect the traditional electric operating companies against all risks. Changes in industry practice or advances in the related technologies could reduce the demand for electricity to power data centers or other large load facilities. Additionally, these industries may experience a business downturn, which could cause the loss of current or potential customers or may weaken the financial condition and creditworthiness of existing customers. If anticipated demand growth does not materialize, the traditional electric operating companies could experience unrecovered capital investments made to serve expected load. Conversely, if demand grows more rapidly than projected, the traditional electric operating companies may face challenges in securing adequate generation and transmission capacity and maintaining service reliability.
Source: Item 1A, 10-K 0000092122-26-000006 vs Item 1A, 10-K 0000092122-25-000018
Legal Proceedings 297 words changed in this paragraph; it is 54% similar to last year's version.
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 were 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. Later in 2023, the plaintiff, a former SCS employee, filed an amended complaint, again alleging certain violations of the False Claims Act. The plaintiff sought to recover all damages incurred personally and on behalf of the federal government caused by the defendants' alleged violations, as well as treble damages and attorneys' fees, among other relief. In February 2024, the defendants moved to dismiss the amended complaint. In August 2024, the court granted the defendants' motion in part and denied it in part, dismissing the plaintiff's False Claims Act count along with its accompanying treble damages and attorneys' fees but allowing the employment retaliation claim to proceed. In October 2024, the plaintiff requested interlocutory appeal of the court's decision, which was denied on February 25, 2025, and the defendants asserted counterclaims for conversion and misappropriation of trade secrets. In November 2024, the defendants filed a motion for judgment on the pleadings on the plaintiff's employment retaliation claim. In December 2024, the plaintiff filed a motion to dismiss the defendants' counterclaims. 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. On November 12, 2025, the parties reached an agreement in principle to resolve the lawsuit. On January 20, 2026, the court entered an order dismissing the lawsuit. The resolution does not have a material impact on Southern Company's or Mississippi Power's financial statements.
Source: Item 3, via Note 3 – CONTINGENCIES, COMMITMENTS, AND GUARANTEES, 10-K 0000092122-26-000006 vs Item 3, via Note 3 – CONTINGENCIES, COMMITMENTS, AND GUARANTEES, 10-K 0000092122-25-000018
Accounting Policies 131 words changed in this paragraph; it is 40% similar to last year's version.
Georgia Power has entered into a PPA with Mississippi Power, which commenced in 2024, and several PPAs with Southern Power and one PPA with Mississippi Power for capacity and energy. Georgia Power's total expenses associated with these PPAs were $203 million, $143 million, are included in purchased power, affiliates on its statements of income. Mississippi Power's and $151 million in 2024, 2023, and 2022, respectively. Southern Power's total revenues from all associated with these PPAs with Georgia Power, included in wholesale revenue affiliates on Southern Power's consolidated statements of income, were $149 million, $145 million, and $154 million for 2024, 2023, and 2022, respectively. Included within these revenues were affiliate PPAs accounted for as operating leases, which totaled $121 million, $116 million, and $116 million for 2024, 2023, and 2022, respectively. Mississippi Power's total revenues from its PPA with Georgia Power, which commenced in 2024, were $60 million in 2024 and are included in wholesale revenue revenues, affiliates on Mississippi Power's their respective statements of income. See Notes 2 and 9 for additional information.
Source: Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000092122-26-000006 vs Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000092122-25-000018
Every change, by type
Sentences and paragraphs of SO's Risk Factors and MD&A, 10-K 2026-02-19 against 10-K 2025-02-20.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
The OBBB was signed into law on July 4, 2025. The OBBB, among other things, materially changed the requirements for most of the federal renewable energy incentives. The Registrants are still assessing the impacts of the OBBB on tax incentives for renewable energy projects. Any loss of, reduction in, or impacts on tax incentives, including transferability of tax credits, due to the OBBB could have a material adverse effect on the Registrants. See MANAGEMENT'S DISCUSSION AND ANALYSIS –
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
SCS, on behalf of the traditional electric operating companies and Southern Power, purchases fuel for the Southern Company system's generation fleet from a diverse set of suppliers. Southern Company Gas' primary business is the distribution of natural
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
such delay or failure in recovering costs by the Subsidiary Registrants could have a material adverse effect on the Registrants, including lower credit ratings and, thus, higher costs for future debt issuances, as well as limitations on their ability to fund capital expenditures and support economic development opportunities.
Read it in 10-K 2026-02-19 at sec.gov ↗
RemovedRisk Factors
however, that all such costs will be recovered. The Registrants expect future compliance expenditures will continue to be significant.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedRisk Factors
The SEC adopted new rules relating to the disclosure of climate-related matters, but has stayed their effectiveness pending judicial review. If these rules, or similar rules, become effective, the Registrants could incur increased costs to comply with these new rules and could face increased risk of litigation related to disclosures made pursuant to the rules.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedRisk Factors
gas could likewise result in increased costs to the Southern Company system and affect the demand for natural gas as well as the prices charged to customers and the competitive position of natural gas.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedRisk Factors
interconnect facilities to transmission grids; and increased financing costs as a result of changes in interest rates or as a result of project delays.
Read it in 10-K 2025-02-20 at sec.gov ↗
RewordedRisk Factors
Further, If any of these projects are canceled for any reason, including if a traditional electric operating company is not selected through a PSC-approved request for proposal RFP process or due to construct for itself additional capacity needs, failure to receive other necessary regulatory approvals and/or siting or environmental permits, significant cancellation penalties under the equipment purchase orders and construction contracts could occur and such traditional electric operating company may not be able to recover through customer rates all such penalties or registration, prepayment, cancellation, or other fees incurred in such process.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Completion of these types of projects without delays or significant cost overruns is subject to substantial risks that have occurred or may occur, including changes in labor costs, availability, and productivity; challenges with the management of contractors or vendors; subcontractor performance; adverse weather conditions; shortages, delays, increased costs, or inconsistent quality of equipment, materials, and labor; contractor or supplier delay; the impacts of inflation; potential impact inflation and trade policies (including tariffs and other trade measures) of newly-levied tariffs; the United States and other countries; delays due to judicial or regulatory action; nonperformance under construction, operating, or other agreements; operational readiness, including specialized operator training and required site safety programs; engineering or design problems or any remediation related thereto; design and other licensing-based compliance matters; challenges with start-up activities, including major equipment failure, or system integration; and/or operational performance; challenges related to future epidemic or pandemic health events; continued public and policymaker support for projects; environmental and geological conditions; delays or increased costs to interconnect facilities to transmission grids; and increased financing costs as a result of changes in interest rates or as a result of project delays.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
There are many risks that could affect these matters, including operator error or failure of equipment or processes, accidents, operating limitations that may be imposed by environmental or other regulatory requirements or in connection with joint owner or joint venture arrangements, failure of performance by counterparties, labor disputes, physical attacks, fuel or material supply interruptions and/or shortages, transmission disruption or capacity constraints, including with respect to the Southern Company system's and third parties' transmission, storage, and transportation facilities, inability to maintain reliability consistent with customer expectations as the traditional electric operating companies transition their generating fleets in support of the Southern Company system's net zero goal, add generation, transmission, and related infrastructure to meet projected electric demand growth, compliance with mandatory reliability standards, including mandatory cyber security standards, implementation of new technologies, technology system failures, cyber intrusions, environmental events, such as spills or releases, supply chain disruptions, inflation, and catastrophic events such as fires, including wildfires, land movement, earthquakes, explosions, floods, high winds, tornadoes, hurricanes and other storms, solar flares, droughts, future pandemic health events, wars, political unrest, or other similar occurrences.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
If any of the Registrants or Nicor Gas is not able to access capital at competitive rates or on favorable terms, its ability to implement its business plan will be limited due to weakened capacity to fund capital investments or acquisitions that it may otherwise rely on to achieve future earnings and cash flows. flows and affordability concerns from increased borrowing costs could require the Registrants and Nicor Gas, unilaterally or at the direction of their regulators, to significantly scale back infrastructure investment, which could lead to additional risks related to safety and reliability.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Future pandemic health events or continued international tensions, including the ramifications of regional conflicts or international conflicts, such as those in Ukraine and the Middle East, and any strained relationships between the United States and other countries related to such conflicts, such as those in Ukraine and the Middle East, and the impact of tariffs, trade policies (including tariffs and other trade measures) of the United States and other countries, could further exacerbate global supply chain disruptions.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
In addition, future GHG constraints, including those related to methane emissions, designed to minimize emissions from natural gas could likewise result in increased costs to the Southern Company system and affect the demand for natural gas as well as the prices charged to customers and the competitive position of natural gas.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Forward curves project prices will remain in the mid- to high-$3 per mmBtu range through 2030; however, short-term price volatility is expected and future prices could be materially impacted by various factors, including unexpected geopolitical events as well as events, increased demand for natural gas, including to fuel electric generation to serve data centers and other large load customers, and government policies related to natural gas and energy, including infrastructure development, production, and exports.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
An economic downturn could be caused by a variety of factors, including wars, geopolitical instability, acts of terrorism, political or financial crises, crises or uncertainty, government shutdowns, trade policies (including tariffs and other trade measures) of the United States and other countries, government fiscal policy, future pandemic health events, or cyclical economic factors.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
The new nature of these industries, These additional capital spending needs, the increased concentration of business within a single industry based on emerging technologies, and uncertainties on the actual capacity required to satisfy the projected new demands of these new industries may impact creates risks for the traditional electric operating companies.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Achievement of these goals is dependent on various factors, many of which the Southern Company system does not control, including load growth across the Southern Company system's service territory, including projected load growth from large load customers, energy policy and regulations, natural gas prices, customer demand for carbon-free energy, and the pace and extent of development and deployment of low- to no-GHG energy technologies and negative carbon concepts. technologies.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
While the traditional electric operating companies and Southern Company Gas are generally authorized to recover fuel and purchased power and/or purchased gas costs through cost recovery clauses, recovery may be delayed or may be denied if costs are deemed to be imprudently incurred.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Disruption in the supply and/or delivery of fuel as a result of matters such as transportation delays, weather, labor relations, natural disasters, cyber or physical attacks, other force majeure events, or environmental regulations affecting fuel suppliers suppliers, constraints on existing natural gas pipeline capacity or on construction of new natural gas pipelines, or changing economic conditions could limit the ability of the traditional electric operating companies and Southern Power to operate certain facilities, which could impact reliability and result in higher fuel and operating costs, and the ability of Southern Company Gas to serve its natural gas customers.
Read it in 10-K 2026-02-19 at sec.gov ↗
Quiet changesRisk Factors
The traditional electric operating companies are experiencing projected demand that significantly exceeds recent experience, creating the need for new power generating resources and transmission facilities.
Read it in 10-K 2026-02-19 at sec.gov ↗
Quiet changesRisk Factors
Ensuring that incremental revenues from these projected new demands cover incremental costs and risks will be is critical to continuing the traditional electric operating companies' value proposition to customers.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
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 Alabama Power system capacity previously allocated to wholesale electric services that is being 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.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
On August 13, 2025, the Alabama PSC approved Alabama Power's petition for a CCN authorizing Alabama Power to complete the acquisition of the Lindsay Hill Generating Station (879.7 MWs), which had been approved by the FERC on June 6, 2025. The transaction closed on September 30, 2025. See Notes 2 and 15 to the financial statements under "Alabama Power – Rate CNP New Plant" and "Alabama Power," respectively, for additional information.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
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. 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. For the 2024 tax year, Alabama Power received $180 million in §45U PTCs on Southern Company's consolidated federal income tax return. The ultimate outcome of this matter cannot be determined at this time.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
On December 5, 2025, the Alabama PSC issued a consent order (December 5th Consent Order) approving a plan to keep retail rates stable through 2027. Alabama Power has agreed to:
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
•delay the effective date of Rate CNP New Plant adjustment to recover costs associated with the Lindsay Hill Generating Station acquisition until January 2028 billings;
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
To implement the plan, the Alabama PSC authorized Alabama Power to apply any customer refund resulting from Alabama Power's 2025 Rate RSE actual result calculation to the NDR. The Alabama PSC also approved the use of Alabama Power's 2024 nuclear PTCs, when monetized, to offset retail cost of service in 2027. In addition, any future regulatory liabilities associated with monetized nuclear PTCs from 2025, 2026, and 2027 will be used to offset future retail cost of service, including any under recovered balances under Rate CNP and Rate ECR.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
Furthermore, the Alabama PSC, as part of its routine oversight of Alabama Power's regulated activities, will monitor factors such as weather, natural disasters, changes in fuel markets, and other significant unforeseen events that may impact this plan. If such events occur, Alabama Power will work with the Alabama PSC to determine a reasonable and responsive course of action under the circumstances.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
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 except for reasonable and prudent storm damage costs incurred through December 31, 2025.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
In a separate regulatory proceeding, on February 17, 2026, Georgia Power filed a request with the Georgia PSC to recover the reasonable and prudent storm costs incurred through December 31, 2025, which is expected to increase annual recovery by approximately $300 million effective June 1, 2026. The proposed annual recovery included in the filing is expected to fully
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
recover the regulatory asset balance related to storm damage at December 31, 2025 over four years, and the remaining balance at December 31, 2028 will be included in the next rate case. Georgia Power expects the Georgia PSC to make a final decision on this matter on May 28, 2026. The ultimate outcome of this matter cannot be determined at this time.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
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.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
•Investments related to the continued reliable operations of four hydro facilities, as well as the authority to spend up to $25 million to undertake engineering studies related to two additional hydro facilities.
Read it in 10-K 2026-02-19 at sec.gov ↗
RemovedMD&A
On May 7, 2024, the Alabama PSC approved a decrease to Rate ECR from 3.270 cents per KWH to 3.015 cents per KWH, or approximately $135 million annually, effective with July 2024 billings. On December 3, 2024, the Alabama PSC approved an additional reduction to Rate ECR from 3.015 cents per KWH to 2.600 cents per KWH, or $218 million annually, effective with January 2025 billings.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
On October 24, 2024, Alabama Power entered into an agreement to acquire all of the equity interests in Tenaska Alabama Partners, L.P. for a total purchase price of approximately $622 million, subject to working capital adjustments. Tenaska Alabama Partners, L.P. owns and operates the Lindsay Hill Generating Station, an approximately 855-MW combined cycle generation facility in Autauga County, Alabama. On October 30, 2024, Alabama Power filed a petition for a CCN with the Alabama PSC for authorization to procure additional generating capacity through the acquisition of the Lindsay Hill Generating Station. Alabama Power expects to complete the acquisition by the end of the third quarter 2025. The ultimate outcome of this matter cannot be determined at this time.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
Georgia Power placed Plant Vogtle Units 3 and 4 in service on July 31, 2023 and April 29, 2024, respectively. During the second quarter 2024, following Unit 4's in-service date, Southern Nuclear evaluated the remaining expected site demobilization costs and other contractor obligations and reduced the remaining estimate to complete forecast by approximately $21 million, including the impact of joint owner cost-sharing. Accordingly, Georgia Power recorded a pre-tax credit to income of approximately $21 million ($16 million after tax), including the joint owner agreement impacts, in the second quarter 2024 to recognize forecasted capital costs previously charged to income. Georgia Power's share of the remaining project capital cost forecast, including completion of site demobilization and remaining contractor obligations, is $69 million. See Note 2 to the financial statements under "Georgia Power – Nuclear Construction – Cost and Schedule" for additional information.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
Georgia Power included in retail rate base $5.462 billion of construction and capital costs as well as $647 million of associated retail rate base items effective with the April 29, 2024 in-service date for Unit 4, pursuant to the approved Prudency Stipulation. Annual retail base revenues increased approximately $730 million and the average retail base rates were adjusted by approximately 5% (net of the elimination of the NCCR tariff described below) effective May 1, 2024.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
Further, as included in the approved Prudency Stipulation, since commercial operation for Unit 4 was not achieved by March 31, 2024, Georgia Power's ROE used to determine the NCCR tariff and calculate AFUDC was reduced to zero effective April 1, 2024. Effective May 1, 2024, following commercial operation for Unit 4, Georgia Power's NCCR tariff was eliminated.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
On December 17, 2024, in accordance with the terms of the 2022 ARP, the Georgia PSC approved tariff adjustments effective January 1, 2025 that resulted in a net increase in rates of $306 million. Georgia Power is required to file its next general base rate case by July 1, 2025. See Note 2 to the financial statements under "Georgia Power – Rate Plans – 2022 ARP" for additional information.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
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 expected CODs or delivery commencement dates between 2028 and 2030. The RFP included Georgia Power-owned proposals. In conjunction with those proposals, Georgia Power entered into agreements for engineering, procurement, and construction through January 2025. Winning participants are expected to be notified in June 2025, and the Georgia PSC is anticipated to render a decision related to the certification of the winning submissions in the fourth quarter 2025. Depending on the outcomes of the RFP and certification processes, Georgia Power could spend up to $14 billion, excluding AFUDC, on approved Georgia Power-owned proposals and related transmission investments through 2029. The ultimate outcome of this matter cannot be determined at this time.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
On April 16, 2024, the Georgia PSC approved Georgia Power's updated IRP as modified by a stipulation among Georgia Power, the staff of the Georgia PSC, and certain intervenors (2023 IRP Update). The 2023 IRP Update includes the authority to develop, own, and operate up to 1,400 MWs from three simple cycle combustion turbines at Plant Yates with the recoverable costs not to exceed the certified amount, which was approved by the Georgia PSC on August 20, 2024. With this approval, the Georgia PSC recognized the potential for circumstances beyond Georgia Power's control that could cause the project costs to exceed the certified amount, in which case Georgia Power would provide documentation to the Georgia PSC to explain and justify potential recovery of additional reasonable and prudent costs. Georgia Power is required to file semi-annual construction monitoring
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
The 2025 IRP requests approval of investments related to the continued reliable hydro operations of nine facilities, as well as the authority to develop, own, and operate a projected incremental 16 MWs from Plant Goat Rock Units 3 through 6.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
On April 26, 2024, Mississippi Power filed its 2024 IRP with the Mississippi PSC. The Mississippi PSC did not note any deficiencies within the prescribed 120-day review period; therefore, the filing is concluded. The 2024 IRP included a schedule to retire Plant Watson Unit 4 (268 MWs) and Plant Greene County Units 1 and 2 (206 MWs based on 40% ownership) and to retire early Plant Daniel Units 1 and 2 (502 MWs based on 50% ownership), all by the end of 2028, which is consistent with the completion of Mississippi Power's affiliate PPA with Georgia Power. On January 9, 2025, Mississippi Power notified the Mississippi PSC of its intent to extend the retirement date of Plant Daniel Unit 2 and potentially extend the retirement dates of other fossil steam units beyond their current 2028 retirement dates in order to serve recently signed economic development loads of approximately 600 MWs.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
On November 8, 2024, Mississippi Power entered into an agreement with FP&L to acquire FP&L's 50% ownership interest in Plant Daniel Units 1 and 2. This acquisition will include a payment by FP&L to Mississippi Power of between $35 million and $38 million, which represents an estimate of the incremental cost to Mississippi Power to assume ownership of FP&L's interest, based on the timing of the completion of the transaction. On January 7, 2025, the Mississippi PSC approved Mississippi Power's request for (i) the inclusion of the acquired assets and the associated costs at Plant Daniel in Mississippi Power's retail rate base, upon completion of the transaction, (ii) the establishment of a new regulatory liability account in which all of the proceeds to be paid by FP&L will be recorded, and (iii) Mississippi Power's ability to amortize that regulatory liability by charging certain expenditures against it. The completion of the transaction is subject to the satisfaction or waiver of certain conditions, including, among other customary closing conditions, approval by the Florida PSC.
Read it in 10-K 2025-02-20 at sec.gov ↗
RemovedMD&A
On May 28, 2024, the FERC issued an order accepting Mississippi Power's request for an $8 million increase in annual wholesale base revenues under the MRA tariff, effective May 29, 2024, subject to refund. On December 23, 2024, Mississippi Power and Cooperative Energy filed a settlement agreement with the FERC. The settlement agreement provides for (i) a $1 million increase in annual wholesale base revenues and a refund to customers of approximately $4 million, (ii) a rate escalation of 2.5% on an annual basis in periods subsequent to December 31, 2024 and continuing through the end of the Shared Services Agreement (SSA) 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 SSA. The settlement agreement is subject to approval by the FERC.
Read it in 10-K 2025-02-20 at sec.gov ↗
RewordedMD&A
The increase was primarily due to increases of $77 $27 million in open access transmission tariff sales revenues from renewable energy programs at the traditional electric operating companies, $29 million in regulated sales Georgia Power primarily associated with power delivery construction and maintenance at Georgia Power, and $23 solar application fees, $24 million in regulated outdoor lighting sales at Georgia Power, partially offset by a net increase of $17 million in realized losses gains associated with price stability products for retail customers on variable demand-driven pricing tariffs at Georgia Power Power, $10 million in customer fees at Georgia Power, and a decrease of $14 $7 million related to liquidated damages receipts undistributed customer bill credits at Alabama Power, partially offset by decreases of $19 million in pole attachment revenues at Alabama Power and Georgia Power and $16 million associated with generation facility production guarantees and an arbitration award in 2023 transmission revenues at Southern Power.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Issuances and Reofferings Maturities and Redemptions Company Senior Notes Other Long-Term Debt Long- Senior Notes Revenue Other Long- Term Debt Bonds Other Long-Term Term Debt(a) (in millions) Southern Company parent $ 3,050 3,650 $ 2,365 $ 2,895 $ — $ 600 $ — $ 863 Alabama Power 1,100 5 250 — 8 — 21 24 3 Georgia Power 2,117 3,100 — 400 — 109 700 45 118 Mississippi Power 250 100 — 200 — 11 1 Southern Power 1,100 — 900 — — Southern Company Gas 450 283 850 200 250 — — — 50 Other(b) — — — — 25 13 Elimination(c) — — — — (21) (18) Southern Company $ 5,867 9,900 $ 291 2,570 $ 1,200 4,995 $ 21 56 $ 1,001 167
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The increase was primarily due to higher pre-tax earnings, a $197 million decrease in the flowback of certain excess deferred income taxes at Alabama Power, earnings and a $112 $29 million increase in charges to a valuation allowance on certain state tax credit carryforwards at Georgia Power, partially offset by an increase increases of $79 $28 million in the flowback of certain excess deferred income taxes at the traditional electric operating companies and $21 million in the generation of advanced nuclear PTCs at Georgia Power and $26 million from the recognition of certain state tax positions from amended returns at Georgia Power.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
In 2024, The increase in wholesale revenues increased $77 million, or 41.0%, as compared from sales to 2023 largely non-affiliates was due to increases of $85 $45 million related to the volume of KWH sales associated with higher market demand and $76 million related to net additional capacity from wholesale capacity contracts, partially offset by a decrease of $89 demand, $40 million related to the average cost per KWH sold due to lower higher Southern Company system fuel and purchased power prices. prices, and $27 million related to non-fuel revenues from wholesale capacity contracts.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The increase was primarily due to an increase in higher retail electric revenues associated with rates and pricing and weather impacts, an increase in natural gas revenues associated with rate increases, sales growth, as well as an increase in other revenues, and an increase in other electric revenues, partially offset by increases in non-fuel depreciation and amortization and other operations and maintenance expenses, income tax expense, interest expense, depreciation and amortization, taxes other than income taxes, and cost of other sales. expenses.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The decrease increase was due to a net decrease $288 million increase related to the volume of $96 KWHs generated and purchased, an increase of $196 million related to the average cost of fuel and purchased power power, and an increase of $55 million of related to credits recorded to nuclear fuel expense in 2024 resulting from litigation related to nuclear fuel disposal costs, partially offset by an increase of $107 million related to the volume of KWHs generated and purchased. costs.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Allowance for equity funds used during construction decreased $13 increased $96 million, or 7.9%, 63.2%, in 2024 2025 as compared to 2023 2024 primarily due to Plant Vogtle Units 3 and 4 being placed in service in July 2023 and April 2024, respectively, partially offset by an increase in capital expenditures subject to AFUDC. AFUDC, partially offset by the impact of Plant Vogtle Unit 4 being placed in service in April 2024.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Taxes other than income taxes increased $29 decreased $71 million, or 6.6%, 11.0%, in 2024 2025 as compared to 2023 2024 primarily due to increases a decrease of $13 $98 million in property taxes primarily resulting from the actualization of prior-year tax assessments, partially offset by an increase in the assessed value of property and $13 $21 million in utility license taxes municipal franchise fees resulting from an increase in the tax base. higher retail revenues.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The increase was primarily associated with increases an increase of approximately $36 $71 million related to higher average outstanding borrowings and $30 million related to higher interest rates, as well as a decrease of $31 $12 million in net deferred financing costs related to Plant Vogtle Unit 3, partially offset by an increase of $22 million in AFUDC debt primarily related to Plant Vogtle Units 3 and 4. increased capital expenditures.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The increase was primarily due to an increase increases of $244 $298 million in accelerated depreciation at Southern Power related to wind repowering projects, $226 million associated with additional plant in service, partially offset by a decrease of $59 and $123 million in amortization of regulatory assets related to CCR AROs at Georgia Power as approved in the 2024 2025 compliance filing under the terms of the 2022 ARP and an increase of $24 million in amortization of federal ITCs at Georgia Power. ARP.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Net cash provided from operating activities increased $816 $8 million in 2024 2025 as compared to 2023 2024 primarily due to an increase in retail revenues associated with customer bill credits in 2023, funds received as part of the Plant Daniel acquisition, lower income tax payments, and the timing of fossil fuel stock purchases, and the timing of vendor payments, partially largely offset by a decrease in decreased fuel cost recovery.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Operating revenues for these other business activities increased $111 $67 million, or 20.0%, 10.1%, in 2024 2025 as compared to 2023 2024 primarily due to an increase of $120 million in revenues at PowerSecure primarily largely related to a higher volume of distributed infrastructure projects, partially offset by a decrease of $18 million at Southern Linc primarily related to equipment sales associated with commercial customers. projects.
Read it in 10-K 2026-02-19 at sec.gov ↗
Quiet changesMD&A
These purchases are made in accordance with the IIC or other contractual agreements, all as approved by the FERC.
Read it in 10-K 2026-02-19 at sec.gov ↗
Quiet changesMD&A
See Notes 1 and 15 to the financial statements for additional information, including any recent asset impairments.
Read it in 10-K 2026-02-19 at sec.gov ↗
