Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 55

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 55
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— $— $5 $2 $— Lease income - operating leases35 2 9 1 22 9 Variable lease income129 — — — 139 — Total lease income$171 $2 $9 $6 $163 $9 Six Months Ended June 30, 2024Lease income - interest income on sales-type leases$14 $— $— $9 $5 $— Lease income - operating leases71 5 16 2 43 18 Variable lease income201 — — — 218 — Total lease income$286 $5 $16 $11 $266 $18 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.

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    Table of Contents                                Index to Financial StatementsNOTES 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 CompanyAt June 30, 2025 and December 31, 2024, Southern Holdings had equity method investments totaling $115 million and $128 million, respectively, primarily related to investments in venture capital funds focused on energy and utility investments. The net losses from these investments totaled $14 million and $20 million for the three and six months ended June 30, 2025, respectively. Earnings/losses from these investments for the three and six months ended June 30, 2024 were immaterial.

Southern PowerVariable Interest EntitiesSouthern 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 WindAt June 30, 2025 and December 31, 2024, SP Solar had total assets of $5.3 billion and $5.4 billion, respectively,