Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 331

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 331
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 and insurance claims.

Fuel and Purchased Power Expenses

Details of Southern Power's generation and purchased power were as follows:

 Third Quarter 2025Third Quarter 2024Year-to-Date 2025Year-to-Date 2024(in billions of KWHs)Generation12.512.835.034.2Purchased power0.70.51.91.7Total generation and purchased power13.213.336.935.9Total generation and purchased power(excluding solar, wind, fuel cells, and tolling agreements)8.28.322.721.5

Southern Power's PPAs for natural gas generation generally provide that the purchasers are responsible for either procuring the fuel (tolling agreements) or reimbursing Southern Power for substantially all of the cost of fuel relating to the energy delivered under such PPAs. Consequently, changes in such fuel costs are generally accompanied by a corresponding change in related fuel revenues and do not have a significant impact on net income. Southern Power is responsible for the cost of fuel for generating units that are not covered under PPAs. Power from these generating units is sold into the wholesale market or into the Southern Company power pool for capacity owned directly by Southern Power.

Purchased power expenses will vary depending on demand, availability, and the cost of generating resources throughout the Southern Company system and other contract resources. Load requirements are submitted to the Southern Company power pool on an hourly basis and are fulfilled with the lowest cost alternative, whether that is generation owned by Southern Power, an affiliate company, or external parties. Such purchased power costs are generally recovered through PPA revenues.

Details of Southern Power's fuel and purchased power expenses were as follows:

 Third Quarter 2025 vs.Third Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024 (change in millions)(% change)(change in millions)(% change)Fuel$2 1.2 %$69 15.2 %Purchased power12 60.0 31 51.7 Total fuel and purchased power expenses$14 $100 

In the third quarter 2025, total fuel and purchased power expenses increased $14 million, or 7.5%, compared to the corresponding period in 2024. Fuel expense increased $2 million due to a $7 million increase associated with the average cost of fuel, largely offset by a $5 million decrease related to the volume of KWHs generated