Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 107

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 107
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 generated and purchased.

For year-to-date 2025, total fuel and purchased power expenses were $2.9 billion compared to $2.4 billion for the corresponding period in 2024. The increase was due to a $336 million net increase related to the average cost of fuel and purchased power and a $134 million net increase related to the volume of KWHs generated and purchased.

Fuel and purchased power energy transactions at the traditional electric operating companies are generally offset by fuel revenues and do not have a significant impact on net income. See Note 2 to the financial statements in Item 8 of the Form 10-K for additional information. Fuel expenses incurred under Southern Power's PPAs are generally the responsibility of the counterparties and do not significantly impact net income.

Energy purchases will vary depending on demand for energy within the Southern Company system's electric service territory, the market prices of wholesale energy as compared to the cost of the Southern Company system's generation, and the availability of the Southern Company system's generation.

Details of the Southern Company system's generation and purchased power and the related costs were as follows:

Second Quarter 2025Second Quarter 2024Year-to-Date 2025Year-to-Date 2024Total generation (in billions of KWHs)(a)45479192Total purchased power (in billions of KWHs)64118Sources of generation (percent) —Gas50505050Nuclear(a)18201920Coal19191918Hydro4243Wind, Solar, and Other9989Cost of fuel, generated (in cents per net KWH)—Gas3.232.563.562.72Nuclear(a)0.880.890.860.85Coal3.773.953.903.88Average cost of fuel, generated (in cents per net KWH)(a)2.862.493.042.54Average cost of purchased power (in cents per net KWH)(b)4.735.145.075.40

(a)Excludes KWHs generated from test period energy at Plant Vogtle Unit 4 prior to its in-service date. The related fuel costs were charged to CWIP in accordance with FERC guidance. See Note 2 to the financial statements under "Georgia Power – Nuclear Construction" in Item 8 of the Form 10-K for additional information on Plant Vogtle Units 3 and 4.

(b)Average cost of purchased power includes fuel purchased by the Southern Company system for tolling agreements where power is generated