Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 145

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 145
---
 $582 $80 Gas pipeline investments8 2 15 8 2 22 Gas marketing services83 71 8 70 57 9 All other5 7 (8)7 9 (3)Intercompany eliminations(2)2 — (3)1 — Consolidated$979 $789 $106 $831 $651 $108 Year-to-DateGas distribution operations$2,454 $1,789 $406 $2,212 $1,571 $382 Gas pipeline investments16 5 41 16 5 52 Gas marketing services345 241 74 305 205 74 All other9 9 3 13 11 9 Intercompany eliminations(6)1 — (8)(1)— Consolidated$2,818 $2,045 $524 $2,538 $1,791 $517 

Gas Distribution Operations

The gas distribution operations segment is the largest component of Southern Company Gas' business and is subject to regulation and oversight by regulatory agencies in each of the states it serves. These agencies approve natural gas rates designed to provide Southern Company Gas with the opportunity to generate revenues to recover the cost of natural gas delivered to its customers and its fixed and variable costs, including depreciation, interest expense, operations and maintenance, taxes, and overhead costs, and to earn a reasonable return on its investments.

With the exception of Atlanta Gas Light, Southern Company Gas' second largest utility that operates in a deregulated natural gas market and has a straight-fixed-variable rate design that minimizes the variability of its revenues based on consumption, the earnings of the natural gas distribution utilities can be affected by customer consumption patterns that are a function of weather conditions, price levels for natural gas, and general economic conditions that may impact customers' ability to pay for natural gas consumed. Southern Company Gas has various regulatory and other mechanisms, such as weather and revenue normalization mechanisms and weather derivative instruments, that limit its exposure to changes in customer consumption, including weather changes within typical ranges in its natural gas distribution utilities' service territories. See Note 2 to the financial statements under "Southern Company Gas" in Item 8 of the Form 10-K for additional information.

In the second quarter 2025, net income increased $11 million, or 13.8%, when compared to the corresponding period in 2024