Company: SOJE
Filing Date: 2025-05-19
Form Type: 8-K
Source: 0000092122-25-000048
Chunk: 1

Company: SOUTHERN CO
Filing Date: 2025-05-19
Form: 8-K
Item: Item 8.01
Chunk 1
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 generated during the ARP Extension Period would be amortized to amortization expense over five years, and additional ITC amounts would be deferred to a regulatory liability during the ARP Extension Period. Sixty percent (60%) of PTC benefits generated (excluding PTCs generated under Internal Revenue Code §45J) during the ARP Extension Period would be credited to income tax expense as generated. The remaining forty percent (40%) would be deferred to a regulatory liability.

4. The period for depreciation and amortization related to certain generating plants and net book values of retired generating plants would be 13 years effective January 1, 2026.

Using the retail ROE range approved by the Georgia PSC in the 2022 ARP, earnings above the upper limit of the 9.50% to 11.90% retail ROE range would continue to be subject to sharing whereby 40% of earnings above the band would be applied to regulatory assets, 40% would be directly refunded to customers and the remaining 20% would be retained by Georgia Power. There would be no recovery of any earnings shortfall below the lower end of the approved retail ROE range on an actual basis. However, if at any time during the term of the ARP Extension Period, Georgia Power projects that its retail earnings will be less than the lower end of the approved retail ROE range for any calendar year of the ARP Extension Period, it may petition the Georgia PSC for implementation of the Interim Cost Recovery (“ ICR”) tariff to adjust Georgia Power’s retail rates to achieve a retail ROE equal to the lower end of the approved retail ROE range. The ICR tariff would expire at the earlier of January 1, 2029 or the end of the calendar year in which the ICR tariff becomes effective. In lieu of requesting implementation of an ICR tariff, or if the Georgia PSC chooses not to implement the ICR tariff, Georgia Power may file a full base rate case. Georgia Power would be required to file a base rate case by July 1, 2028.

While the Stipulating Parties are seeking support of the Settlement Agreement from other parties, the Settlement Agreement must be approved by the Georgia PSC. Accordingly, the terms of the

Settlement Agreement are subject to change and the terms of any final agreement approved by the Georgia PSC may differ materially from the terms of the Settlement Agreement. The Georgia PSC is scheduled to vote on or before July 1, 2025 to resolve all matters in the Settlement Agreement