Company: SOJE
Filing Date: 2025-05-19
Form Type: 8-K
Source: 0000092122-25-000048
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Company: SOUTHERN CO
Filing Date: 2025-05-19
Form: 8-K
Item: Item 8.01
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Item 8.01 Other Events.

On May 19, 2025, Georgia Power Company (“ Georgia Power”) and the Georgia Public Service Commission (“ PSC”) Public Interest Advocacy Staff (collectively, the “ Stipulating Parties”) reached a settlement agreement (“ Settlement Agreement”) that, if approved by the Georgia PSC, would extend the alternate rate plan approved by the Georgia PSC, which set retail base rates for the years 2023 through 2025 (“2022 ARP”) for an additional three-year term through December 31, 2028. Under the terms of the Settlement Agreement, base rates would not be adjusted in 2026, 2027 or 2028 (“ ARP Extension Period”) except for reasonable and prudent storm damage costs incurred through December 31, 2025, which would be determined in a separate regulatory proceeding.

Under the terms of the Settlement Agreement, Georgia Power’s retail return on common equity (“ ROE”) set point would continue at 10.50% and its equity ratio would continue at 56%. Additionally, the retail ROE range approved by the Georgia PSC in the 2022 ARP, of 9.50% to 11.90%, would continue. The Settlement Agreement includes, among other things, the following modifications to the 2022 ARP:

1. Storm damage costs would be included in a separate regulatory proceeding to be filed no sooner than February 1, 2026 and no later than July 1, 2026 to recover the actual reasonable and prudent storm costs incurred through December 31, 2025. Subject to Georgia PSC approval, new rates would be effective approximately 90 days after the filing is made. The Georgia PSC would determine the period over which any such storm damage costs would be recovered.

2. Amortization of regulatory assets and liabilities in the 2022 ARP, which were subsequently included in current rates through annual compliance filings, would continue through the ARP Extension Period. This includes those regulatory asset and liability balances that were projected to be fully amortized through 2025 or during the ARP extension period.

3. The amounts previously deferred during the 2022 ARP for Investment Tax Credits (“ ITCs”) and Production Tax Credits (“ PTCs”) would be amortized through the ARP Extension Period.

The acceleration of amortization during the ARP Extension Period is subject to the Internal Revenue Code normalization rules and other guidance (if any) expected to be released by the Internal Revenue Service. Certain amounts of ITCs