Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 148

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 148
---
 of the allocations between Southern Power and the noncontrolling investors over the life of the agreement and the liquidation provisions of the agreement to determine the appropriate allocation of income or loss between the parties. 

II-97

    Table of Contents                                Index to Financial Statements

The determination of the appropriate amount of allocated partnership income or loss to noncontrolling interests using the HLBV accounting method required increased audit effort and specialized skill and knowledge, including evaluation of the terms of the agreement and consideration of the appropriateness of the HLBV model based on the provisions of the agreement.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures included the following, among others: 

•We read certain agreements to understand the liquidation provisions and the provisions governing the allocation of benefits.

•We evaluated certain HLBV models utilized by management to determine whether the models accurately reflect the allocation of income or loss and tax attributes in accordance with the liquidation provisions and allocation terms defined in the agreements, as well as whether the inputs in the models are accurate and complete.

/s/ Deloitte & Touche LLP

Atlanta, Georgia

February 19, 2025

We have served as Southern Power's auditor since 2002.

II-98

    Table of Contents                                Index to Financial Statements

CONSOLIDATED STATEMENTS OF INCOME

For the Years Ended December 31, 2024, 2023, and 2022

Southern Power Company and Subsidiary Companies

202420232022(in millions)Operating Revenues:Wholesale revenues, non-affiliates$1,606 $1,597 $2,458 Wholesale revenues, affiliates371 537 875 Other revenues37 55 36 Total operating revenues2,014 2,189 3,369 Operating Expenses:Fuel579 706 1,614 Purchased power78 116 311 Other operations and maintenance516 473 483 Depreciation and amortization522 504 516 Taxes other than income taxes41 51 49 Gain on dispositions, net— (20)(2)Total operating expenses1,736 1,830 2,971 Operating Income278 359 398 Other Income and (Expense):Interest expense, net of amounts capitalized(117)(129)(138)Other income (expense), net13 12 7 Total other income and (expense