Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 78

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 78
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%Gas costs and other cost recovery62 3.6 Gas marketing services18 1.1 Other9 0.5 Natural gas revenues$132 7.7 %

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

Changes in rates resulted in an increase in revenues in the first quarter 2025 compared to the corresponding period in 2024 primarily due to base rate increases at Atlanta Gas Light and Virginia Natural Gas. See Note 2 to the financial statements under "Southern Company Gas – Rate Proceedings" in Item 8 of the Form 10-K for additional information.

Revenues from gas costs and other cost recovery increased in the first quarter 2025 compared to the corresponding period in 2024 primarily due to higher gas volumes. Natural gas distribution rates include provisions to adjust billings for fluctuations in natural gas costs. Therefore, gas costs recovered through natural gas revenues generally equal the amount expensed in cost of natural gas and do not affect net income from the natural gas distribution utilities.

Revenues from gas marketing services increased in the first quarter 2025 compared to the corresponding period in 2024 primarily due to higher commodity prices.

Other Revenues

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$12153.1

In the first quarter 2025, other revenues were $349 million compared to $228 million for the corresponding period in 2024. The increase was primarily due to increases of $62 million in unregulated sales at Georgia Power primarily associated with power delivery construction and maintenance, energy conservation, and renewables projects and $61 million at PowerSecure primarily related to distributed infrastructure projects.

Fuel and Purchased Power Expenses

 First Quarter 2025 vs. First Quarter 2024 (change in millions)(% change)Fuel$296 29.7 %Purchased power52 26.3 Total fuel and purchased power expenses$348 

In the first quarter 2025, total fuel and purchased power expenses were $1.5 billion compared to $1.2 billion for the corresponding period in 2024. The increase was due to a $230 million net increase related to the average cost of fuel and purchased power and a $118 million increase related to the volume of KWHs generated and purchased.

Fuel and purchased power energy transactions at