Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 753

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 753
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 subject to ongoing repair and maintenance activities, certain wireless communication towers, the disposal of polychlorinated biphenyls in certain transformers, leasehold improvements, equipment on customer property, and property associated with the Southern Company system's rail lines and natural gas pipelines. However, liabilities for the removal of these assets have not been recorded because the settlement timing for certain retirement obligations related to these assets is indeterminable and, therefore, the fair value of the retirement obligations cannot be reasonably estimated. A liability for these retirement obligations will be recognized when sufficient information becomes available to support a reasonable estimation of the ARO.Southern Company and the traditional electric operating companies will continue to recognize in their respective statements of income allowed removal costs in accordance with regulatory treatment. Any differences between costs recognized in accordance with accounting standards related to asset retirement and environmental obligations and those reflected in rates are recognized as either a regulatory asset or liability in the balance sheets as ordered by the various state PSCs.

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    Table of Contents                                Index to Financial StatementsCOMBINED NOTES TO FINANCIAL STATEMENTS

Details of the AROs included in the balance sheets are as follows:Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern Power(*)(in millions)Balance at December 31, 2022$10,840 $4,287 $6,034 $179 $144 Liabilities incurred90 — 90 — — Liabilities settled(617)(270)(304)(18)— Accretion expense403 156 230 5 6 Cash flow revisions(399)(15)(385)2 — Balance at December 31, 2023$10,317 $4,158 $5,665 $168 $150 Liabilities incurred130 8 120 — 2 Liabilities settled(566)(254)(270)(17)— Accretion expense400 153 232 5 7 Cash flow revisions(347)(7)(332)(8)— Balance at December 31, 2024$9,934 $4,058 $5,415 $148 $159 (*)Included in other deferred credits and liabilities on Southern Power's consolidated balance sheets.In June 2023, Alabama Power completed an updated decommissioning cost site study for Plant Farley. The estimated cost of decommissioning based on the study resulted in a decrease in Alabama Power's ARO liability of approximately