Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 204

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 204
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 in cost of natural gas and do not affect net income from the natural gas distribution utilities. See Note 2 to the financial statements under "Southern Company Gas – Natural Gas Cost Recovery" in Item 8 of the Form 10-K for additional information. Cost of natural gas at the natural gas distribution utilities represented 80% of the total cost of natural gas in the first quarter 2025.

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.

Cost of Other Sales

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$6851.9

In the first quarter 2025, cost of other sales was $199 million compared to $131 million for the corresponding period in 2024. The increase was primarily due to increases of $38 million at PowerSecure primarily related to 

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

distributed infrastructure projects and $31 million in expenses at Georgia Power associated with unregulated power delivery construction and maintenance projects.

Other Operations and Maintenance Expenses

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$14710.0

In the first quarter 2025, other operations and maintenance expenses were $1.6 billion compared to $1.5 billion for the corresponding period in 2024. The increase was primarily due to increases of $70 million in generation expenses primarily resulting from planned outages at Alabama Power and Plant Vogtle Unit 4 being placed in service in April 2024 at Georgia Power, $33 million in certain employee compensation and benefit expenses, $23 million in technology infrastructure and application production costs, and $12 million in expenses passed through to customers primarily related to bad debt and energy efficiency programs at Southern Company Gas. See Note 2 to the financial statements under "Georgia Power – Nuclear Construction" in Item 8 of the Form 10-K for additional information.

Depreciation and Amortization

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$14112.3

In the first quarter 2025, depreciation and