Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 356

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 356
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 in millions)(% change)Fuel$84 8.1 %$380 18.7 %Purchased power38 17.1 90 21.4 Total fuel and purchased power expenses$122 $470 

In the second quarter 2025, total fuel and purchased power expenses were $1.4 billion compared to $1.3 billion for the corresponding period in 2024. The increase was due to a $106 million net increase related to the average cost of fuel and purchased power and a $16 million net increase related to the volume of KWHs 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