Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 1341

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 1341
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 hedges(33)19 (83)Southern Company GasCost of natural gasEnergy-related cash flow hedges$(40)$(44)$37 Other operations and maintenanceEnergy-related cash flow hedges(2)(2)— Interest expense, net of amounts capitalizedInterest rate cash flow hedges(1)(19)(4)Interest rate fair value hedges(5)6 (86)The pre-tax effects of cash flow hedge accounting on income for interest rate derivatives were immaterial for the traditional electric operating companies for all years presented.At December 31, 2024 and 2023, the following amounts were recorded on the balance sheets related to cumulative basis adjustments for fair value hedges:Carrying Amount ofthe Hedged ItemCumulative Amount of Fair Value Hedging Adjustment included in Carrying Amount of the Hedged ItemBalance Sheet Location of Hedged ItemsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023(in millions)(in millions)Southern CompanyLong-term debt$(2,936)$(3,024)$242 $235 Southern Company GasLong-term debt$(422)$(427)$75 $70 

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    Table of Contents                                Index to Financial StatementsCOMBINED NOTES TO FINANCIAL STATEMENTS

The pre-tax effects of energy-related derivatives not designated as hedging instruments on the statements of income of Southern Company and Southern Company Gas for the years ended December 31, 2024, 2023, and 2022 were as follows:Gain (Loss)Derivatives in Non-Designated Hedging RelationshipsStatements of Income Location202420232022(in millions)Energy-related derivativesNatural gas revenues(*)$— $— $(11)Cost of natural gas94 59 (65)Total derivatives in non-designated hedging relationships$94 $59 $(76)(*)Excludes the impact of weather derivatives recorded in natural gas revenues of $12 million, $15 million, and $(7) million for 2024, 2023 and 2022, respectively, as they are accounted for based on intrinsic value rather than fair value.The pre-tax effects of energy-related derivatives not designated as hedging instruments were immaterial for all other Registrants for all years presented.Contingent FeaturesThe Registrants do not have any credit arrangements that would require material changes in payment schedules or terminations as