Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 275

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 275
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 $120 PPA energy revenues 373 281 Total PPA revenues494 401 Non-PPA revenues 69 60 Other revenues4 12 Total operating revenues$567 $473 

101

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

In the first quarter 2025, total operating revenues were $567 million, reflecting a $94 million, or 19.9%, increase from the corresponding period in 2024. The change in operating revenues was primarily due to the following:

•PPA energy revenues increased $92 million, or 32.7%, primarily due to an increase of $59 million driven by fuel and purchased power prices and an increase of $25 million related to the volume of KWHs sold primarily under natural gas and solar PPAs.

•Non-PPA revenues increased $9 million, or 15.0%, primarily due to an increase of $25 million driven by fuel and purchased power prices, largely offset by a decrease of $17 million related to the volume of KWHs sold through short-term sales.

Fuel and Purchased Power Expenses

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

 First Quarter 2025First Quarter 2024(in billions of KWHs)Generation10.910.3Purchased power0.50.4Total generation and purchased power11.410.7Total generation and purchased power(excluding solar, wind, fuel cells, and tolling agreements)7.06.7

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