Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 59

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 59
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 financial institution to fund work performed. These advances have been accounted for as long-term debt on the balance sheets. See Note 1 to the financial statements under "Affiliate Transactions" in Item 8 of the Form 10-K for additional information regarding the construction contract. At September 30, 2025 and December 31, 2024, Southern Company's unregulated distributed generation business had contract assets of $77 million and $67 million, respectively, and contract liabilities of $96 million and $95 million, respectively, for outstanding performance obligations, all of which are expected to be satisfied within one year.Revenues recognized in the three and nine months ended September 30, 2025, which were included in contract liabilities at December 31, 2024, were $20 million and $92 million, respectively, for Southern Company, $8 million and $24 million, respectively, for Georgia Power, and immaterial for the other Registrants. Contract liabilities are primarily classified as current on the balance sheets as the corresponding revenues are generally expected to be recognized within one year.Remaining Performance ObligationsSouthern Company's subsidiaries may enter into long-term contracts with customers in which revenues are recognized as performance obligations are satisfied over the contract term. For the traditional electric operating companies and Southern Power, these contracts primarily relate to PPAs whereby electricity and generation capacity are provided to a customer. The revenue recognized for the delivery of electricity is variable; however, certain PPAs include a fixed payment for fixed generation capacity over the term of the contract. Southern Company's unregulated distributed generation business also has partially satisfied performance obligations related 

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    Table of Contents                                Index to Financial StatementsNOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)(UNAUDITED)

to certain fixed price contracts. Revenues from contracts with customers related to these performance obligations remaining at September 30, 2025 are expected to be recognized as follows:2025 (remaining)2026202720282029Thereafter(in millions)Southern Company$296 $742 $470 $344 $309 $2,636 Alabama Power46 6 5 2 — — Georgia Power19 48 22 15 2 27 Mississippi Power(*)16 66 69 73 12 — Southern Power(*)75 331 340 316 312 2,609 (*)Includes performance obligations related to affiliate PPAs with Georgia Power