Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 83

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 83
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 and natural gas industries. When an energy-related derivative contract is settled physically, any cumulative unrealized gain or loss is reversed and the contract price is recognized in the respective line item representing the actual price of the underlying goods being delivered.

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

At September 30, 2025, the net volume of energy-related derivative contracts for natural gas positions, together with the longest hedge date over which the respective entity is hedging its exposure to the variability in future cash flows for forecasted transactions and the longest non-hedge date for derivatives not designated as hedges, were as follows:NetPurchasedmmBtuLongestHedgeDateLongestNon-HedgeDate(in millions)Southern Company(*)44320302028Alabama Power1322028—Georgia Power1232028—Mississippi Power1012029—Southern Power920302025Southern Company Gas(*)7820282028(*)Southern Company Gas' derivative instruments include both long and short natural gas positions. A long position is a contract to purchase natural gas and a short position is a contract to sell natural gas. Southern Company Gas' volume represents the net of 96 million mmBtu long natural gas positions and 18 million mmBtu short natural gas positions at September 30, 2025, which is also included in Southern Company's total volume.In addition to the volumes discussed above, the traditional electric operating companies and Southern Power enter into physical natural gas supply contracts that provide the option to sell back excess natural gas due to operational constraints. The maximum expected volume of natural gas subject to such a feature is 1.5 million mmBtu for Southern Company, which includes 0.4 million mmBtu for Alabama Power, 0.6 million mmBtu for Georgia Power, 0.2 million mmBtu for Mississippi Power, and 0.3 million mmBtu for Southern Power.For cash flow hedges of energy-related derivatives, the estimated pre-tax gains (losses) expected to be reclassified from accumulated OCI to earnings for the 12-month period ending September 30, 2026 is immaterial for Southern Company, Southern Power, and Southern Company Gas.Interest Rate DerivativesSouthern Company and certain subsidiaries may enter into interest rate derivatives to hedge exposure to changes in interest rates. Derivatives related to existing variable rate securities or forecasted transactions are accounted