Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 353

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 6
Chunk 353
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,042 $1,636 $69 $500 Weighted average interest rate on long-term variable interest rate exposure4.77 %3.38 %4.16 %3.14 %4.98 %Impact on annualized interest expense of 100 basis point change in interest rates$47 $10 $16 $1 $5 

(*)Includes $1.4 billion of long-term variable interest rate exposure at the Southern Company parent entity.

The Registrants may enter into interest rate derivatives designated as hedges, which are intended to mitigate interest rate volatility related to forecasted debt financings and existing fixed and floating rate obligations. See Note 14 to the financial statements under "Interest Rate Derivatives" for additional information.

Southern Company and Southern Power had foreign currency denominated debt at December 31, 2024 and have each mitigated exposure to foreign currency exchange rate risk through the use of foreign currency swaps. See Note 14 to the financial statements under "Foreign Currency Derivatives" for additional information.

Changes in fair value of energy-related derivative contracts for Southern Company and Southern Company Gas for the years ended December 31, 2024 and 2023 are provided in the table below. At December 31, 2024 and 2023, substantially all of the traditional electric operating companies' and certain of the natural gas distribution utilities' energy-related derivative contracts were designated as regulatory hedges and were related to the applicable company's fuel-hedging program.

Southern Company(a)Southern Company Gas(a)(in millions)Contracts outstanding at December 31, 2022, assets (liabilities), net$(11)$(37)Contracts realized or settled207 33 Current period changes(b)(500)(45)Contracts outstanding at December 31, 2023, assets (liabilities), net(304)(49)Contracts realized or settled211 7 Current period changes(b)54 52 Contracts outstanding at December 31, 2024, assets (liabilities), net$(39)$10 

(a)Excludes cash collateral held on deposit in broker margin accounts of $17 million, $62 million, and $41 million at December 31, 2024, 2023, and 2022, respectively, and immaterial premium and intrinsic value associated with weather derivatives for all periods presented.

(b)The changes in fair value of energy-related derivative contracts are substantially attributable to both the volume and the price of natural