Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 94

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 94
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 power5 83.3 Total fuel and purchased power expenses$55 

In the first quarter 2025, total fuel and purchased power expenses were $166 million compared to $111 million for the corresponding period in 2024. The increase was due to a $37 million increase related to the average cost of fuel and purchased power and an $18 million increase related to the volume of KWHs generated and purchased.

Fuel and purchased power energy transactions do not have a significant impact on earnings since energy expenses are generally offset by energy revenues through Mississippi Power's fuel cost recovery clause.

Energy purchases will vary depending on the market prices of wholesale energy as compared to the cost of the Southern Company system's generation, demand for energy within the Southern Company system's electric service territory, and the availability of the Southern Company system's generation. These purchases are made in accordance with the IIC or other contractual agreements, as approved by the FERC.

Details of Mississippi Power's generation and purchased power and the related costs were as follows:

First Quarter 2025First Quarter 2024Total generation (in millions of KWHs)4,5383,952Total purchased power (in millions of KWHs)188171Sources of generation (percent) –Gas9191Coal99Cost of fuel, generated (in cents per net KWH) –Gas3.502.69Coal4.944.70Average cost of fuel, generated (in cents per net KWH)3.652.88Average cost of purchased power (in cents per net KWH)5.783.64

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

Other Operations and Maintenance Expenses

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$(4)(4.5)

In the first quarter 2025, other operations and maintenance expenses were $84 million compared to $88 million for the corresponding period in 2024. The decrease was primarily due to a decrease in generation expenses associated with planned outages.

Depreciation and Amortization

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$510.6

In the first quarter 2025, depreciation and amortization was $52 million compared to $47 million for the corresponding period in 2024.