Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 1806

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 1806
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 2023 of $38 million ($28 million after tax) associated with the disallowance of capital investments placed in service in 2019. The disallowance is reflected on the statement of income as an $8 million reduction to revenues and $30 million in estimated loss on regulatory disallowance. On August 3, 2023, the Illinois Commission denied a rehearing request filed by Nicor Gas. On August 24, 2023, Nicor Gas filed a notice of appeal with the Illinois Appellate Court. On November 25, 2024, the Illinois Appellate Court agreed with the Illinois Commission's review of the QIP capital investments by Nicor Gas for calendar year 2019 under the QIP rider apart from one immaterial item. On December 24, 2024, Nicor Gas filed a petition for leave to appeal $14 million of the 2019 QIP disallowance with the Illinois Supreme Court. Nicor Gas defends these investments in infrastructure as prudently incurred.The following table provides a summary of QIP capital investments during the nine-year program:Year Status of QIP Annual Review ProceedingCapital InvestmentsDisallowedMonth of Disallowance(in millions)2015 – 2018Complete$1,246 $— 2019Complete(a)415 32 June 20232020Filed March 2021402 (b)2021Filed March 2022392 (b)2022Filed March 2023408 (b)6 (c)(d)November 20232023Filed March 2024 365 (b)25 (c)(d)November 2023$3,228 $63 (a)Petition for leave to appeal filed to the Illinois Supreme Court for $14 million.(b)Capital investments are subject to the required QIP annual review proceeding; years 2020 through 2023 are pending with the Illinois Commission.(c)Appealed to the Illinois Appellate Court.(d)Disallowed in Nicor Gas' 2023 general base rate case proceeding. See "Rate Proceedings – Nicor Gas" herein for additional information regarding the Illinois Commission's disallowance of certain capital investments.Any further cost disallowances by the Illinois Commission in the pending cases could be material to the financial statements of Southern Company Gas. The ultimate outcome of these matters cannot be determined at this time.Natural Gas Cost RecoveryWith the exception of Atlanta Gas Light, the natural gas