Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 3623

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 3623
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 and base rates. See "Rate Proceedings – Nicor Gas" herein for additional information.In June 2023, the Illinois Commission concluded its review of the Qualifying Infrastructure Plant (QIP) capital investments by Nicor Gas for calendar year 2019 under the QIP rider, also referred to as Investing in Illinois program. The Illinois Commission disallowed $32 million of the $415 million of capital investments commissioned in 2019, together with the related return on investment. Nicor Gas recorded a pre-tax charge to income in the second quarter 2023 of $38 million ($28 million after tax) associated with the disallowance of capital investments placed in service in 2019. The disallowance is reflected on the statement of income as an $8 million reduction to revenues and $30 million in estimated loss on regulatory disallowance. On August 3, 2023, the Illinois Commission denied a rehearing request filed by Nicor Gas. On August 24, 2023, Nicor Gas filed a notice of appeal with the Illinois Appellate Court. On November 25, 2024, the Illinois Appellate Court agreed with the Illinois Commission's review of the QIP capital investments by Nicor Gas for calendar year 2019 under the QIP rider apart from one immaterial item. On December 24, 2024, Nicor Gas filed a petition for leave to appeal $14 million of the 2019 QIP disallowance with the Illinois Supreme Court. Nicor Gas defends these investments in infrastructure as prudently incurred.The following table provides a summary of QIP capital investments during the nine-year program:Year Status of QIP Annual Review ProceedingCapital InvestmentsDisallowedMonth of Disallowance(in millions)2015 – 2018Complete$1,246 $— 2019Complete(a)415 32 June 20232020Filed March 2021402 (b)2021Filed March 2022392 (b)2022Filed March 2023408 (b)6 (c)(d)November 20232023Filed March 2024 365 (b)25 (c)(d)November 2023$3,228 $63 (a)Petition for leave to appeal filed to the Illinois Supreme Court for $14 million.(b)Capital investments are subject to the required QIP annual review proceeding; years 2020 through 2023 are pending with the