Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 311

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 311
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 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:

Third Quarter 2025Third Quarter 2024Year-to-Date 2025Year-to-Date 2024Total generation (in billions of KWHs)16164446Total purchased power (in billions of KWHs)3275Sources of generation (percent) —Coal37323633Gas36413537Nuclear24242224Hydro3376Cost of fuel, generated (in cents per net KWH) —Coal3.343.363.293.24Gas3.192.593.292.71Nuclear0.720.740.730.72Average cost of fuel, generated (in cents per net KWH)2.632.392.692.39Average cost of purchased power (in cents per net KWH)(*)5.524.885.965.88

(*)Average cost of purchased power includes fuel, energy, and transmission purchased by Alabama Power for tolling agreements where power is generated by the provider.

Other Operations and Maintenance Expenses

Third Quarter 2025 vs. Third Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(% change)(change in millions)(% change)$(59)(12.0)$352.6

In the third quarter 2025, other operations and maintenance expenses were $434 million compared to $493 million for the corresponding period in 2024. The decrease was primarily