Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 276

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 276
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 cost alternative, whether that is generation owned by Southern Power, an affiliate company, or external parties. Such purchased power costs are generally recovered through PPA revenues.

Details of Southern Power's fuel and purchased power expenses were as follows:

 First Quarter 2025 vs. First Quarter 2024 (change in millions)(% change)Fuel$51 32.7 %Purchased power10 55.6 Total fuel and purchased power expenses$61 

In the first quarter 2025, total fuel and purchased power expenses increased $61 million, or 35.1%, compared to the corresponding period in 2024. Fuel expense increased $51 million primarily due to a $45 million increase associated with the average cost of fuel. Purchased power expense increased $10 million primarily due to an $8 million increase associated with the average cost of purchased power.

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

Depreciation and Amortization

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$3428.8

In the first quarter 2025, depreciation and amortization was $152 million compared to $118 million for the corresponding period in 2024. The increase was primarily due to $27 million in accelerated depreciation related to the repowering of the Kay Wind facility. See Note (K) to the Condensed Financial Statements under "Southern Power – Wind Repowering Projects" herein and Note 15 to the financial statements under "Southern Power – Development Projects" in Item 8 of the Form 10-K for additional information.

Income Taxes (Benefit)

First Quarter 2025 vs. First Quarter 2024(change in millions)(% change)$1392.9

In the first quarter 2025, income tax benefit was $1 million compared to $14 million for the corresponding period in 2024. The decrease was primarily due to a change in pre-tax earnings attributable to Southern Power, including the impact of accelerated depreciation related to the repowering of the Kay Wind facility. See Note (G) to the Condensed Financial Statements and Note (K) to the Condensed Financial Statements under "Southern Power – Wind Repowering Projects" herein for additional information.

Southern Company Gas

Southern Company Gas measures weather and the effect on its business using