Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 224

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 224
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Cost of Natural Gas

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$6911.4

Excluding Atlanta Gas Light, which does not sell natural gas to end-use customers, 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 gas distribution operations. Cost of natural gas at gas distribution operations represented 80% of the total cost of natural gas in the first quarter 2025. See MANAGEMENT'S DISCUSSION AND ANALYSIS – RESULTS OF OPERATIONS – "Southern Company Gas – Cost of Natural Gas" in Item 7 of the Form 10-K and "Natural Gas Revenues" herein for additional information.

In the first quarter 2025, cost of natural gas was $674 million compared to $605 million for the corresponding period in 2024. The increase reflects higher gas cost recovery as a result of a 63% increase in natural gas prices and higher gas volumes.

104

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

The following table details the volumes of natural gas sold during all periods presented:

First Quarter202520242025 vs. 2024Gas distribution operations (mmBtu in millions)Firm302 266 13.5 %Interruptible23 25 (8.0)Total325 291 11.7 %Gas marketing services (mmBtu in millions)Firm:Georgia18 17 5.9 %Illinois3 2 50.0 Other8 6 33.3 Interruptible large commercial and industrial4 4 — Total33 29 13.8 %

Other Operations and Maintenance Expenses

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$237.8

In the first quarter 2025, other operations and maintenance expenses were $316 million compared to $293 million for the corresponding period in 2024. The increase was primarily due to increases of $16 million in employee compensation and benefit expenses and $12 million in expenses passed through to customers primarily related to bad debt and energy efficiency programs at gas distribution operations.

Depreciation and Amortization