Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 206

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 206
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ments occurring during the year that are restored prior to year-end are charged to cost of natural gas at the estimated annual replacement cost. Inventory decrements that are not restored prior to year-end are charged to cost of natural gas at the actual LIFO cost of the inventory layers liquidated.Southern Company Gas recorded no material adjustments to natural gas inventories for either period presented. Nicor Gas' inventory decrement at June 30, 2025 is expected to be restored prior to year-end.

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

Storm Damage ReservesSee Note 1 to the financial statements under "Storm Damage and Reliability Reserves" in Item 8 of the Form 10-K for additional information.Storm damage reserve activity for the traditional electric operating companies during the six months ended June 30, 2025 was as follows:SouthernCompanyAlabama PowerGeorgia PowerMississippiPower (in millions)Balance at December 31, 2024$(705)$70 $(827)$52 Accrual(*)36 13 16 7 Weather-related damages(198)(85)(106)(7)Balance at June 30, 2025$(867)$(2)$(917)$52 (*)For Alabama Power, includes $7 million of undistributed customer bill credits related to the nuclear fuel disposal costs litigation award, as directed by the Alabama PSC in its December 2024 order. See Note 3 to the financial statements under "Nuclear Fuel Disposal Costs" in Item 8 of the Form 10-K for additional information.Depreciation and AmortizationSee Note 5 to the financial statements under "Depreciation and Amortization" in Item 8 of the Form 10-K for additional information.On April 1, 2025, the Mississippi PSC approved a stipulation between Mississippi Power and the Mississippi Public Utilities Staff for an $8 million increase in total annual depreciation effective January 1, 2025.Asset Retirement ObligationsSee Note 6 to the financial statements in Item 8 of the Form 10-K for additional information.In June 2025, Alabama Power recorded a net decrease of approximately $257 million to its AROs related to the CCR Rule and the related state rule resulting from changes in estimates, including lower future inflation rates, higher discount rates, and timing of closure activities.Also in June