Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 120

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 120
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118

    Table of Contents                                Index to Financial StatementsMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS (Continued)

•an increase of $229 million in common stockholder's equity primarily related to net income, partially offset by dividends paid to Southern Company;

•a decrease of $177 million in natural gas cost over recovery due to reduced price of gas billed to customers;

•an increase of $167 million in total property, plant, and equipment primarily related to the construction of transportation and distribution assets;

•a decrease of $141 million in notes payable due to a reduction in commercial paper borrowings;

•an increase of $126 million in temporary LIFO liquidation due to use of stored natural gas; and

•an increase of $111 million in total accounts receivable primarily relating to an increase of $165 million in customer accounts receivable, partially offset by a decrease of $51 million in unbilled revenues as a result of seasonality.

Financing Activities

The following table outlines long-term debt financing activities for the first three months of 2025:

Issuances andReofferingsMaturities and RedemptionsCompanySeniorNotesOther Long-Term DebtOther Long-   Term Debt(a)(in millions)Southern Company parent$— $2,365 $— Alabama Power500 2 — Georgia Power1,600 — 34 Mississippi Power100 — — Other— — 2 Elimination(b)— — (1)Southern Company$2,200 $2,367 $35 

(a)Includes reductions in finance lease obligations resulting from cash payments under finance leases and, for Georgia Power, principal amortization payments totaling $21 million for FFB borrowings. See Note 8 to the financial statements under "Long-term Debt – DOE Loan Guarantee Borrowings" in Item 8 of the Form 10-K for additional information.

(b)Represents reductions in affiliate finance lease obligations at Georgia Power, which are eliminated in Southern Company's consolidated financial statements.

Except as otherwise described herein, the Registrants used the proceeds of debt issuances for their redemptions and maturities shown in the table above, to repay short-term indebtedness, and for general corporate purposes, including working capital. The Subsidiary Registrants also used the proceeds for their construction programs.

In addition to any financings that may be necessary to meet capital requirements and contractual