Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 1858

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 1858
---
 The amount paid for energy under these affiliate PPAs reflects a price that would be paid in an arm's-length transaction as reviewed and approved by both the Georgia PSC and the FERC. Amounts related to the affiliate PPAs are eliminated in consolidation for Southern Company.Short-term LeasesLeases with an initial term of 12 months or less are not recorded on the balance sheet; the Registrants generally recognize lease expense for these leases on a straight-line basis over the lease term.

II-178

    Table of Contents                                Index to Financial StatementsCOMBINED NOTES TO FINANCIAL STATEMENTS

Residual Value GuaranteesResidual value guarantees exist primarily in railcar leases at Alabama Power and Georgia Power, with Georgia Power's railcar leases terminating in June 2024. The amounts probable of being paid under those guarantees are included in the lease payments. All such amounts were immaterial at December 31, 2024 and 2023.Lease and Nonlease ComponentsFor all asset categories, with the exception of electric generating units, gas pipelines, and real estate leases, the Registrants combine lease payments and any nonlease components, such as asset maintenance, for purposes of calculating the lease obligation and the ROU asset.Balance sheet amounts recorded for operating and finance leases are as follows:Southern CompanyAlabamaPowerGeorgiaPowerMississippiPowerSouthern PowerSouthern Company Gas (in millions)At December 31, 2024Operating LeasesOperating lease ROU assets, net$1,386 $84 $1,331 $8 $484 $38 Operating lease obligations - current$200 $14 $169 $4 $29 $11 Operating lease obligations - non-current1,253 76 1,159 4 511 30 Total operating lease obligations(*)$1,453 $90 $1,328 $8 $540 $41 Finance LeasesFinance lease ROU assets, net$254 $4 $227 $14 $— $— Finance lease obligations - current$9 $1 $20 $1 $— $— Finance lease obligations - non-current278 3 241 13 — — Total finance lease obligations $287 $4 $261 $14 $— $— At December 31, 2023Operating LeasesOperating lease ROU assets, net$1,432 $