Company: SOJE
Filing Date: 2025-03-31
Form Type: PRE 14A
Source: 0000092122-25-000032
Chunk: 55

Company: SOUTHERN CO
Filing Date: 2025-03-31
Form: PRE 14A
Chunk 55
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 aligned with our GHG reduction goals. This goal has both quantitative and qualitative components.

Quantitative Component : The Committee chose to express the quantitative measure in terms of cumulative change in MWs over the three-year performance period.

4 Expressing the measure as the cumulative change in MWs reflects the transition in our overall generation fleet. Had the Committee chosen to express the measure in terms of the absolute or relative decreases in emissions, results could be impacted by factors outside the Company’s control such as annual changes to weather patterns, the strength or weakness of the economy and fuel prices and availability, potentially resulting in an unwarranted increase or decrease in incentive compensation.

4 The cumulative MW metric includes MW changes from adding zero-carbon and renewable energy MWs, including energy storage, as well as energy efficiency and load flexibility/demand response MWs. The metric also includes MW changes due to placing coal or gas steam generation units in retirement status or inactive reserve (which means no longer available for routine generation operations and dispatch, but available for resiliency and reliability).

4 The MW contribution toward the goal performance is determined by the GHG reduction for each generation resource, with wind credited at 1.25 times the MW and energy storage credited at <1 MW.

4 We differentiate the types of generation additions and retirements that are used to both set the quantitative goal and measure performance against the goal.

| Type of Generation                   |     | MW Crediting                                   |
| Addition of solar, nuclear and hydro |     | 1.0 Times                                      |
| Addition of wind(1)                  |     | 1.25 Times                                     |
| Addition of energy storage(2)        |     | 4 to 8 hours of full-load discharge: 0.5 Times 
 > 8 hours of full-load discharge: 0.75 Times   |
| Energy Efficiency                    |     | 1.0 Times                                      |
| Load Flexibility / Demand Response   |     | 1.0 Times                                      |
| Retirement of coal or gas steam      |     | 1.0 Times                                      |

(1) Recognition of wind’s greater capacity factor

(2) Energy storage, either stand-alone or paired with solar, with a full-load storage discharge duration of 4 to 8 hours and available for providing capacity and energy benefits under the control of Southern Company’s fleet operations personnel will receive 0.5 MWs credit for each additional nameplate MW, recognizing the importance of energy storage in reliably and cost-effectively integrating an increasing amount of