Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 279

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 279
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    Table of Contents                                Index to Financial StatementsMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS (Continued)

Cost of Natural Gas

Second Quarter 2025 vs. Second Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(% change)(change in millions)(% change)$10671.1$17523.2

Excluding Atlanta Gas Light, which does not sell natural gas to end-use customers, the natural gas distribution utilities' rates include provisions to adjust billings for fluctuations in natural gas costs. Therefore, gas costs recovered through natural gas revenues generally equal the amount expensed in cost of natural gas and do not affect net income from the natural gas distribution utilities. See Note 2 to the financial statements under "Southern Company Gas – Natural Gas Cost Recovery" in Item 8 of the Form 10-K for additional information. Cost of natural gas at the natural gas distribution utilities represented 85% and 82% of the total cost of natural gas in the second quarter and year-to-date 2025, respectively.

In the second quarter 2025, cost of natural gas was $255 million compared to $149 million for the corresponding period in 2024. For year-to-date 2025, cost of natural gas was $929 million compared to $754 million for the corresponding period in 2024. The increases reflect higher gas cost recovery as a result of increases of 82% and 72% in natural gas prices in the second quarter and year-to-date 2025, respectively.

Cost of Other Sales

Second Quarter 2025 vs. Second Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(% change)(change in millions)(% change)$——$6822.8

For year-to-date 2025, cost of other sales was $366 million compared to $298 million for the corresponding period in 2024. The increase was primarily due to increases of $43 million at PowerSecure primarily related to distributed infrastructure projects and $36 million at Georgia Power primarily associated with unregulated power delivery construction and maintenance projects, partially offset by an $11 million decrease at Southern Company Gas related to energy services contracts.

Other Operations and Maintenance Expenses

Second Quarter 2025 vs. Second Quarter