Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 3645

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 3645
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, net, which are included in property, plant, and equipment.The Registrants have deferred certain implementation costs related to cloud hosting arrangements. At December 31, 2024 and 2023, deferred cloud implementation costs, net of amortization, which are generally included in other deferred charges and assets on the Registrants' balance sheets, were as follows:Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas(in millions)Deferred cloud implementation costs, net:At December 31, 2024$321 $92 $111 $13 $12 $35 At December 31, 2023325 85 99 13 15 43 Once a hosted software is placed into service, the related deferred costs are amortized on a straight-line basis over the remaining expected hosting arrangement term, including any renewal options that are reasonably certain of exercise. The amortization is reflected with the associated cloud hosting fees, which are generally reflected in other operations and maintenance expenses on 

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    Table of Contents                                Index to Financial StatementsCOMBINED NOTES TO FINANCIAL STATEMENTS

the Registrants' statements of income. Amortization of deferred cloud implementation costs recognized in 2024, 2023, and 2022 was immaterial for Mississippi Power, Southern Power, and Southern Company Gas and was as follows for the other Registrants:Southern CompanyAlabama PowerGeorgia Power(in millions)2024$56 $17 $22 202346 11 19 202229 8 12 See Note 2 under "Regulatory Assets and Liabilities" for information on deferrals of certain other operations and maintenance costs associated with software and cloud computing projects by the traditional electric operating companies and natural gas distribution utilities, as authorized by their respective state PSCs or applicable state regulatory agencies.Depreciation and AmortizationThe traditional electric operating companies' and Southern Company Gas' depreciation of the original cost of utility plant in service is provided primarily by using composite straight-line rates. The approximate rates for 2024, 2023, and 2022 were as follows:202420232022Alabama Power4.2 %4.1 %2.7 %Georgia Power3.4 %3.8 %3.3 %Mississippi Power3.3 %3.4 %3.4 %Southern Company Gas2.9 %2.7 %2.7