Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 243

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 243
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 9 — — 9 Foreign equity— 1 — — 1 Pooled funds – fixed income— 5 — — 5 Cash and cash equivalents1 — — — 1 Cash equivalents212 — — — 212 Total$224 $27 $— $— $251 Liabilities:Energy-related derivatives(a)$6 $5 $— $— $11 Interest rate derivatives— 63 — — 63 Total$6 $68 $— $— $74 (a)Excludes cash collateral of $6 million.(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 to the financial statements under "Nuclear Decommissioning" in Item 8 of the Form 10-K for additional information.Southern Company, Alabama Power, and Georgia Power continue to elect the option to fair value investment securities held in the nuclear decommissioning trust funds. The fair value of the funds, including reinvested interest and dividends and excluding the funds' expenses, increased (decreased) by the amounts shown in the table below for 

72

    Table of Contents                                Index to Financial StatementsNOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)(UNAUDITED)

the three and six months ended June 30, 2025 and 2024. The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.Three Months Ended June 30,Six Months Ended June 30,Fair value increases (decreases)2025202420252024(in millions)Southern Company $165 $32 $159 $135 Alabama Power 99 19 86 87 Georgia Power66 13 73 48 Valuation MethodologiesThe energy-related derivatives primarily consist of exchange-traded and over-the-counter financial products for natural gas and physical power products, including, from time to time, basis swaps. These are standard products used within the energy industry and are valued using the market approach. The inputs used are mainly from observable market sources, such as forward natural gas prices, power prices, implied volatility, and overnight index swap interest rates. Interest rate derivatives are also standard over-the-counter products that are valued using