Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 371

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 371
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 partially offset by a decrease in the pipeline sector. Weather-adjusted industrial KWH sales increased 1.8% for year-to-date 2025 primarily due to increases in the transportation and paper sectors, partially offset by decreases in the pipeline and textiles sectors.

Fuel revenues and costs are allocated between retail and wholesale jurisdictions. Retail fuel cost recovery revenues increased in the second quarter and year-to-date 2025 when compared to the corresponding periods in 2024 due to higher recoverable fuel costs. Electric rates include provisions to adjust billings for fluctuations in fuel costs, including the energy component of purchased power costs. Under these fuel cost recovery provisions, fuel revenues generally equal fuel expenses and do not affect net income. See Note (B) to the Condensed Financial Statements herein and Note 2 to the financial statements under "Georgia Power – Fuel Cost Recovery" in Item 8 of the Form 10-K for additional information.

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    Table of Contents                                Index to Financial StatementsMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS (Continued)

Wholesale Revenues

Second Quarter 2025 vs. Second Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(% change)(change in millions)(% change)$4469.8$130108.3

In the second quarter 2025, wholesale revenues were $107 million compared to $63 million for the corresponding period in 2024. For year-to-date 2025, wholesale revenues were $250 million compared to $120 million for the corresponding period in 2024. The increases for the second quarter and year-to-date 2025 were due to increases of $21 million and $63 million, respectively, related to the volume of KWH sales associated with higher market demand, $11 million and $35 million, respectively, related to the average cost per KWH sold due to higher Southern Company system fuel and purchased power prices, and $12 million and $32 million, respectively, related to additional non-fuel revenues from wholesale capacity contracts.

Wholesale revenues from sales to non-affiliates consist of PPAs and short-term opportunity sales. Wholesale revenues from PPAs have both capacity and energy components. Wholesale capacity revenues from PPAs are recognized in amounts billable under the contract terms and provide for recovery of fixed costs and a return on investment. Wholesale revenues from sales to non-affiliates will