Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 352

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 352
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2025 when compared to the corresponding periods in 2024 primarily due to the inclusion of Plant Vogtle Unit 4 in retail rates net of elimination of the NCCR tariff at Georgia Power, an increase in Rate RSE at Alabama Power, base tariff increases and increased ECCR tariff revenues at Georgia Power in accordance with the 2022 ARP, and higher contributions from commercial and industrial customers with variable demand-driven pricing at Georgia Power. See Note 2 to the financial statements under "Alabama Power" and "Georgia Power" in Item 8 of the Form 10-K for additional information.

Changes in sales resulted in an increase in revenues in the second quarter and year-to-date 2025 when compared to the corresponding periods in 2024. Weather-adjusted residential KWH sales increased 2.8% in the second quarter 2025 primarily due to increased customer usage and customer growth. Weather-adjusted residential KWH sales increased 0.3% for year-to-date 2025 primarily due to customer growth, largely offset by decreased customer usage. Weather-adjusted commercial KWH sales increased 3.5% and 2.0% in the second quarter and year-to-date 2025, respectively, primarily due to increased customer usage, primarily driven by data centers. Industrial KWH sales increased 2.8% and 1.7% in the second quarter and year-to-date 2025, respectively, primarily due to increases in the paper, primary metals, and transportation sectors, partially offset by a decrease in the pipeline sector.

Fuel and other cost recovery revenues increased $80 million and $287 million in the second quarter and year-to-date 2025, respectively, compared to the corresponding periods in 2024 primarily due to higher recoverable fuel costs. Electric rates for the traditional electric operating companies 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 PPA costs, and do not affect net income. The traditional electric operating companies each have one or more regulatory mechanisms to recover other costs such as environmental and other compliance costs, storm damage, new plants, and PPA capacity costs. See Note 2 to the financial statements in Item 8 of the Form 10-K and Note (B) to the Condensed Financial Statements herein for additional information.

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