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Introduction | 9 Months Ended
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Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Introduction | INTRODUCTION The condensed quarterly financial statements of each Registrant included herein have been prepared by such Registrant, without audit, pursuant to the rules and regulations of the SEC. The Condensed Balance Sheets at December 31, 2024 have been derived from the audited financial statements of each Registrant. In the opinion of each Registrant's management, the information regarding such Registrant furnished herein reflects all adjustments, which, except as otherwise disclosed, are of a normal recurring nature, necessary to present fairly the results of operations for the periods ended September 30, 2025 and 2024. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although each Registrant believes that the disclosures regarding such Registrant are adequate to make the information presented not misleading. Disclosures which would substantially duplicate the disclosures in the Form 10-K and details which have not changed significantly in amount or composition since the filing of the Form 10-K are generally omitted from this Quarterly Report on Form 10-Q unless specifically required by GAAP. Therefore, these Condensed Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K. Due to the seasonal variations in the demand for energy and other factors, operating results for the periods presented are not necessarily indicative of the operating results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires the use of estimates, and the actual results may differ from those estimates. Certain prior year data presented in the financial statements have been reclassified to conform to the current year presentation. These reclassifications had no impact on the overall results of operations, financial position, or cash flows of any Registrant. Goodwill and Other Intangible Assets Goodwill at both September 30, 2025 and December 31, 2024 was as follows:
| Goodwill |
| (in millions)
Southern Company | $ | 5,161 |  |
Southern Company Gas: |  |
Gas distribution operations | $ | 4,034 |  |
Gas marketing services | 981 |  |
Southern Company Gas total | $ | 5,015 |  |
Goodwill is not amortized but is subject to an annual impairment test during the fourth quarter of each year, or more frequently if goodwill impairment indicators exist. Other intangible assets were as follows:
| At September 30, 2025 |  | At December 31, 2024
| Gross Carrying Amount | Accumulated Amortization | Other Intangible Assets, Net |  | Gross Carrying Amount | Accumulated Amortization | Other Intangible Assets, Net
| (in millions) |  | (in millions)
Southern Company |  |  |  |  |  |  |
Subject to amortization: |  |  |  |  |  |  |
Customer relationships | $ | 212 |  | $ | (186) |  | $ | 26 |  |  | $ | 212 |  | $ | (182) |  | $ | 30 |
Trade names | 64 |  | (64) |  | — |  |  | 64 |  | (59) |  | 5 |
PPA fair value adjustments | 390 |  | (183) |  | 207 |  |  | 390 |  | (168) |  | 222 |
Other | 3 |  | (3) |  | — |  |  | 3 |  | (3) |  | — |
Total subject to amortization | $ | 669 |  | $ | (436) |  | $ | 233 |  |  | $ | 669 |  | $ | (412) |  | $ | 257 |
Not subject to amortization: |  |  |  |  |  |  |
FCC licenses | 75 |  | — |  | 75 |  |  | 75 |  | — |  | 75 |
Total other intangible assets | $ | 744 |  | $ | (436) |  | $ | 308 |  |  | $ | 744 |  | $ | (412) |  | $ | 332 |
Southern Power(*) |  |  |  |  |  |  |
PPA fair value adjustments | $ | 390 |  | $ | (183) |  | $ | 207 |  |  | $ | 390 |  | $ | (168) |  | $ | 222 |
Southern Company Gas(*) |  |  |  |  |  |  |
Gas marketing services |  |  |  |  |  |  |
Customer relationships | $ | 156 |  | $ | (152) |  | $ | 4 |  |  | $ | 156 |  | $ | (150) |  | $ | 6 |
Trade names | 26 |  | (26) |  | — |  |  | 26 |  | (23) |  | 3 |
Total other intangible assets | $ | 182 |  | $ | (178) |  | $ | 4 |  |  | $ | 182 |  | $ | (173) |  | $ | 9 |
(*)All subject to amortization. Amortization associated with other intangible assets was as follows:
| Three Months Ended September 30, | Nine Months Ended September 30,
| 2025 | 2024 | 2025 | 2024
| (in millions)
Southern Company(a) | $ | 8 |  | $ | 9 |  | $ | 24 |  | $ | 27 |
Southern Power(b) | 5 |  | 5 |  | 15 |  | 15 |
Southern Company Gas |  |  |  |
Gas marketing services | 2 |  | 2 |  | 5 |  | 5 |
(a)Includes $5 million for the three months ended September 30, 2025 and 2024 and $15 million for the nine months ended September 30, 2025 and 2024 recorded as a reduction to operating revenues. (b)Recorded as a reduction to operating revenues. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants:
| Southern Company |  | Georgia Power | Southern Power | Southern Company Gas
| (in millions)
At September 30, 2025 |  |  |  |  |
Cash and cash equivalents | $ | 3,341 |  |  | $ | 937 |  | $ | 1,047 |  | $ | 346 |
Restricted cash(*): |  |  |  |  |
Other current assets | 1 |  |  | — |  | — |  | — |
Total cash, cash equivalents, and restricted cash | $ | 3,342 |  |  | $ | 937 |  | $ | 1,047 |  | $ | 346 |
At December 31, 2024 |  |  |  |  |
Cash and cash equivalents | $ | 1,070 |  |  | $ | 97 |  | $ | 159 |  | $ | 43 |
Restricted cash(*): |  |  |  |  |
Other current assets | 31 |  |  | 21 |  | 9 |  | 1 |
Total cash, cash equivalents, and restricted cash | $ | 1,101 |  |  | $ | 118 |  | $ | 168 |  | $ | 44 |
(*)For Georgia Power, reflects remaining proceeds at December 31, 2024 from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects remaining proceeds at December 31, 2024 from an arbitration award held to fund future replacement costs. For Southern Company, also reflects collateral of $1 million for life insurance and long-term disability insurance, which was included at Southern Holdings and Southern Company Gas at September 30, 2025 and December 31, 2024, respectively. Natural Gas for Sale With the exception of Nicor Gas, Southern Company Gas records natural gas inventories on a weighted average cost basis. For any declines in market prices below the weighted average cost considered to be non-temporary, an adjustment is recorded to reduce the value of natural gas inventories to market value. Nicor Gas' natural gas inventory is carried at cost on a LIFO basis. Inventory decrements occurring during the year that are restored prior to year-end are charged to cost of natural gas at the estimated annual replacement cost. Inventory decrements that are not restored prior to year-end are charged to cost of natural gas at the actual LIFO cost of the inventory layers liquidated. Southern Company Gas recorded no material adjustments to natural gas inventories for either period presented. Nicor Gas' inventory decrements that occurred during the year have been restored as of September 30, 2025. Storm Damage Reserves See Note 1 to the financial statements under "Storm Damage and Reliability Reserves" in Item 8 of the Form 10-K for additional information. Storm damage reserve activity for the traditional electric operating companies during the nine months ended September 30, 2025 was as follows:
| Southern Company | Alabama Power | Georgia Power | Mississippi Power
| (in millions)
Balance at December 31, 2024 | $ | (705) |  | $ | 70 |  | $ | (827) |  | $ | 52 |
Accrual(*) | 58 |  | 23 |  | 24 |  | 11 |
Weather-related damages | (209) |  | (97) |  | (104) |  | (8) |
Balance at September 30, 2025 | $ | (856) |  | $ | (4) |  | $ | (907) |  | $ | 55 |
(*)For Alabama Power, includes $7 million of undistributed customer bill credits related to the nuclear fuel disposal costs litigation award, as directed by the Alabama PSC in its December 2024 order. See Note 3 to the financial statements under "Nuclear Fuel Disposal Costs" in Item 8 of the Form 10-K for additional information. Depreciation and Amortization See Note 5 to the financial statements under "Depreciation and Amortization" in Item 8 of the Form 10-K for additional information. On April 1, 2025, the Mississippi PSC approved a stipulation between Mississippi Power and the Mississippi Public Utilities Staff for an $8 million increase in total annual depreciation effective January 1, 2025. Asset Retirement Obligations See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information. In June 2025, Alabama Power recorded a net decrease of approximately $257 million to its AROs related to the CCR Rule and the related state rule resulting from changes in estimates, including lower future inflation rates, higher discount rates, and timing of closure activities. Also in June 2025, Mississippi Power, as a joint owner of Alabama Power's Plant Greene County Units 1 and 2, recorded a net decrease of approximately $13 million to its AROs related to the CCR Rule and the related Alabama state rule resulting from changes in estimates, including lower future inflation rates, higher discount rates, and timing of closure activities.

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