Company: SOJE
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0000092122-25-000036
Chunk: 53

Company: SOUTHERN CO
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 53
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 resiliency and reliability).

4 The MW contribution toward the goal performance is determined by the GHG reduction for each generation resource, with wind credited at 1.25 times the MW and energy storage credited at <1 MW.

4 We differentiate the types of generation additions and retirements that are used to both set the quantitative goal and measure performance against the goal.

| Type of Generation                   |     | MW Crediting                                   |
| Addition of solar, nuclear and hydro |     | 1.0 Times                                      |
| Addition of wind(1)                  |     | 1.25 Times                                     |
| Addition of energy storage(2)        |     | 4 to 8 hours of full-load discharge: 0.5 Times 
 > 8 hours of full-load discharge: 0.75 Times   |
| Energy Efficiency                    |     | 1.0 Times                                      |
| Load Flexibility / Demand Response   |     | 1.0 Times                                      |
| Retirement of coal or gas steam      |     | 1.0 Times                                      |

(1) Recognition of wind’s greater capacity factor

(2) Energy storage, either stand-alone or paired with solar, with a full-load storage discharge duration of 4 to 8 hours and available for providing capacity and energy benefits under the control of Southern Company’s fleet operations personnel will receive 0.5 MWs credit for each additional nameplate MW, recognizing the importance of energy storage in reliably and cost-effectively integrating an increasing amount of intermittent renewable generation. Energy storage with a full-load discharge duration of greater than 8 hours will receive 0.75 MWs credit for each additional nameplate MW, recognizing the importance of long duration energy storage to enhance reliance on a high penetration of intermittent renewables.

Qualitative Component: The qualitative component creates incentives to achieve our net zero by 2050 goal through a qualitative assessment. The Compensation Committee, with input from the Operations, Environmental and Safety Committee, evaluates the relevant NEOs' leadership in advancing the energy portfolio of the future. The qualitative component is applied as a modifier to the payout determined under the quantitative component, providing an adjustment ranging from -25% to +50%. The qualitative analysis takes into account:

4 Leadership and energy policy (nationally and within the industry)

4 Decarbonization R&D investments (such as EPRI and Southern proprietary R&D)

4 Investments (such as corporate venture capital spend and Energy Impact Partners)

4 New business development (through Southern Power and PowerSecure including renewables, distributed