Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 216

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 216
---
:

 First Quarter 2025 vs. First Quarter 2024 (change in millions)(% change)Rates and pricing$— — %Sales growth1 0.4 Weather5 2.3 Fuel and other cost recovery21 9.5 Retail revenues$27 12.2 %

97

    Table of Contents                                Index to Financial StatementsMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS (Continued)

Changes in rates and pricing resulted in an immaterial change in revenues in the first quarter 2025 when compared to the corresponding period in 2024.

Changes in sales resulted in an increase in revenues in the first quarter 2025 when compared to the corresponding period in 2024. Weather-adjusted residential KWH sales decreased 2.1% primarily due to decreased customer usage. Weather-adjusted commercial KWH sales increased 0.7% primarily due to increased customer usage. Industrial KWH sales increased 4.8% primarily due to increases in the chemical and pipeline sectors.

Fuel and other cost recovery revenues increased in the first quarter 2025 when compared to the corresponding period in 2024 primarily as a result of higher recoverable fuel costs. Recoverable fuel costs include fuel and purchased power expenses reduced by the fuel and emissions portion of wholesale revenues from energy sold to customers outside Mississippi Power's service territory. Electric rates include provisions to adjust billings for fluctuations in fuel costs, including the energy component of purchased power costs. Under these provisions, fuel revenues generally equal fuel expenses, including the energy component of purchased power costs, and do not affect net income. See Note 2 to the financial statements in Item 8 of the Form 10-K for additional information.

Wholesale Revenues – Non-Affiliates

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$1220.3

In the first quarter 2025, wholesale revenues from sales to non-affiliates were $71 million compared to $59 million for the corresponding period in 2024. The increase was primarily due to an $8 million increase associated with MRA customers largely due to higher recoverable fuel costs and a $4 million increase associated with changes in power supply agreements.

Wholesale revenues from sales to non-affiliates will vary depending on fuel prices, the market prices of wholesale energy compared to the cost of Mississippi Power's and the