Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 263

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 263
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42 Southern Company GasAssets:Energy-related derivatives(a)$15 $7 $— $— $22 Non-qualified deferred compensation trusts:Domestic equity— 9 — — 9 Foreign equity— 1 — — 1 Pooled funds – fixed income— 6 — — 6 Cash and cash equivalents1 — — — 1 Cash equivalents329 — — — 329 Total$345 $23 $— $— $368 Liabilities:Energy-related derivatives(a)$12 $4 $— $— $16 Interest rate derivatives— 56 — — 56 Total$12 $60 $— $— $72 (a)Excludes cash collateral of $10 million.(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 to the financial statements under "Nuclear Decommissioning" in Item 8 of the Form 10-K for additional information.Southern Company, Alabama Power, and Georgia Power continue to elect the option to fair value investment securities held in the nuclear decommissioning trust funds. The fair value of the funds, including reinvested interest and dividends and excluding the funds' expenses, increased (decreased) by the amounts shown in the table below for 

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

the three and nine months ended September 30, 2025 and 2024. The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.Three Months Ended September 30,Nine Months Ended September 30,Fair value increases (decreases)2025202420252024(in millions)Southern Company $132 $97 $290 $230 Alabama Power 75 67 160 153 Georgia Power57 30 130 77 

Valuation MethodologiesThe energy-related derivatives primarily consist of exchange-traded and over-the-counter financial products for natural gas and physical power products, including, from time to time, basis swaps. These are standard products used within the energy industry and are valued using the market approach. The inputs used are mainly from