Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 117

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 117
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 %Purchased power – non-affiliates7 14.9 25 25.3 Purchased power – affiliates23 52.3 34 39.1 Total fuel and purchased power expenses$32 $116 

In the second quarter 2025, total fuel and purchased power expenses were $458 million compared to $426 million for the corresponding period in 2024. The increase was primarily due to a $19 million net increase related to the average cost of fuel and purchased power and a $13 million net increase related to the volume of KWHs generated and purchased.

For year-to-date 2025, total fuel and purchased power expenses were $968 million compared to $852 million for the corresponding period in 2024. The increase was due to a $63 million net increase related to the volume of KWHs generated and purchased and a $53 million net increase related to the average cost of fuel and purchased power.

Fuel and purchased power energy transactions do not have a significant impact on earnings since energy expenses are generally offset by energy revenues through Alabama Power's energy cost recovery clause. See Note 2 to the financial statements under "Alabama Power – Rate ECR" in Item 8 of the Form 10-K for additional information.

Energy purchases from non-affiliates will vary depending on the market prices of wholesale energy as compared to the cost of the Southern Company system's generation, demand for energy within the Southern Company system's electric service territory, and the availability of the Southern Company system's generation.

Energy purchases from affiliates will vary depending on demand for energy and the availability and cost of generating resources at each company within the Southern Company system. These purchases are made in accordance with the IIC or other contractual agreements, as approved by the FERC.

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

Details of Alabama Power's generation and purchased power and the related costs were as follows:

Second Quarter 2025Second Quarter 2024Year-to-Date 2025Year-to-Date 2024Total generation (in billions of KWHs)14152930Total purchased power (in billions of KWHs)2243Sources of generation (percent) —Gas37373535Coal36373533Nuclear16212024Hydro115108Cost of fuel, generated (in cents per net KWH) —Gas3