Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 62

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 62
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 operating reserves. Cash distributions from SP Wind are generally allocated 60% to Southern Power and 40% to the three financial investors in accordance with the limited liability agreement.Southern Power consolidates both SP Solar and SP Wind, as the primary beneficiary, since it controls the most significant activities of each entity, including operating and maintaining their assets. Certain transfers and sales of the assets in the VIEs are subject to partner consent and the liabilities are non-recourse to the general credit of Southern Power. Liabilities consist of customary working capital items and do not include any long-term debt.In July 2025, Southern Power notified the Class A members of its intent to exercise the option to purchase all Class A membership interests in the SP Wind tax equity partnership on December 31, 2025 under the terms of the limited liability agreement.Other Variable Interest EntitiesSouthern Power has other consolidated VIEs that relate to certain subsidiaries that have either sold noncontrolling interests to tax equity investors or acquired less than a 100% interest from facility developers. These entities are considered VIEs because the arrangements are structured similar to a limited partnership and the noncontrolling members do not have substantive kick-out rights.At September 30, 2025 and December 31, 2024, the other VIEs had total assets of $1.6 billion, total liabilities of $241 million and $224 million, respectively, and noncontrolling interests of $642 million and $691 million, 

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    Table of Contents                                Index to Financial StatementsNOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)(UNAUDITED)

respectively. Under the terms of the partnership agreements, distributions of all available cash are required each month or quarter and additional distributions require partner consent.

Southern Company GasThe carrying amounts of Southern Company Gas' equity method investments at September 30, 2025 and December 31, 2024 were as follows:Investment BalanceAt September 30, 2025At December 31, 2024(in millions)SNG$1,141 $1,245 Other34 34 Total$1,175 $1,279 The earnings from Southern Company Gas' equity method investment in SNG were $31 million and $34 million for the three months ended September 30, 2025 and 2024, respectively, and $93 million and $110 million for the nine months ended September 30, 2025 and