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Segment and Related Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment and Related Information SEGMENT AND RELATED INFORMATION
See Note 16 to the financial statements in Item 8 of the Form 10-K for additional information.
Southern Company
The primary businesses of the Southern Company system are electricity sales by the traditional electric operating companies and Southern Power and the distribution of natural gas by Southern Company Gas. The traditional electric operating companies are vertically integrated utilities providing electric service in three Southeastern states. Southern Power develops, constructs, acquires, owns, operates, and manages power generation assets, including battery energy storage projects, and sells electricity at market-based rates in the wholesale market. Southern Company Gas distributes natural gas through its natural gas distribution utilities and is involved in several other complementary businesses including gas pipeline investments and gas marketing services.
Southern Company's reportable business segments are the sale of electricity by the traditional electric operating companies, the sale of electricity in the competitive wholesale market by Southern Power, and the distribution of natural gas and other complementary products and services by Southern Company Gas. While the traditional electric operating companies represent three separate operating segments, they are vertically integrated utilities providing electric service to retail customers, as well as wholesale customers, in the Southeast and have been aggregated into one reportable segment. The "All Other" presentation includes the Southern Company parent entity, which does not allocate operating expenses to business segments, and operating segments below the quantitative threshold for separate disclosure. These operating segments include providing distributed energy and resilience solutions and deploying microgrids for commercial, industrial, governmental, and utility customers, as well as investments in telecommunications. Revenues from sales by Southern Power to the traditional electric operating companies were $100 million and $116 million for the three months ended March 31, 2026 and 2025, respectively. All other inter-segment revenues were immaterial for both periods presented.
Southern Company's CODM utilizes segment net income, including variances to budget and forecasts, to assess performance and is not provided with segment expense information. To achieve the consolidated net income goal, Southern Company's CODM sets net income expectations for each operating segment, which is expected to monitor its expenses in order to achieve its assigned net income target. Therefore, Southern Company has no reportable significant segment expenses.
Financial data for business segments for the three months ended March 31, 2026 and 2025 was as follows:
Electric Utilities
Traditional
Electric Operating
Companies		Southern
Power		EliminationsTotalSouthern Company Gas
Total Reportable Segments
All
Other		EliminationsConsolidated
(in millions)
Three Months Ended March 31, 2026
Operating revenues$5,482 $681 $(141)$6,022 $2,191 $8,213 $218 $(34)$8,397 
Other segment items(a)
2,857 442 (141)3,158 1,357 4,515 190 (40)4,665 
Depreciation and amortization(b)
942 278 — 1,220 183 1,403 17 — 1,420 
Earnings from equity method investments(1)— — (1)46 45 5 — 50 
Interest expense(c)
339 27 — 366 105 471 307 — 778 
Income taxes (benefit)230 (70)— 160 145 305 (77)— 228 
Segment net income (loss)(b)(c)(d)
$1,113 $4 $— $1,117 $447 $1,564 $(214)$6 $1,356 
At March 31, 2026
Goodwill$— $2 $— $2 $5,015 $5,017 $144 $— $5,161 
Total assets115,965 12,474 (849)127,590 27,551 155,141 2,684 (794)157,031 
Three Months Ended March 31, 2025
Operating revenues$5,311 $567 $(123)$5,755 $1,839 $7,594 $229 $(48)$7,775 
Other segment items(a)
2,794 303 (123)2,974 1,069 4,043 208 (58)4,193 
Depreciation and amortization(b)
947 152 — 1,099 169 1,268 18 — 1,286 
Earnings from equity method investments(2)— — (2)39 37 (4)(1)32 
Interest expense316 26 — 342 92 434 280 — 714 
Income taxes (benefit)226 (1)— 225 130 355 (75)— 280 
Segment net income (loss)(b)(d)
$1,026 $87 $— $1,113 $418 $1,531 $(206)$9 $1,334 
At December 31, 2025
Goodwill$— $2 $— $2 $5,015 $5,017 $144 $— $5,161 
Total assets114,287 12,657 (915)126,029 27,387 153,416 2,829 (525)155,720 
(a)Primarily consists of fuel, purchased power, cost of natural gas, cost of other sales, other operations and maintenance, taxes other than income taxes, AFUDC equity, non-service cost-related retirement benefits income, and net income (loss) attributable to noncontrolling interests.
(b)For Southern Power, includes accelerated depreciation related to the repowering of multiple wind facilities of $154 million ($120 million after tax) and $27 million ($20 million after tax, net of noncontrolling interest impacts) for the three months ended March 31, 2026 and 2025, respectively. See Note (K) under "Southern Power – Wind Repowering Projects" and Notes 5 and 15 to the financial statements under "Depreciation and Amortization – Southern Power" and "Southern Power – Wind Repowering Projects," respectively, in Item 8 of the Form 10-K for additional information.
(c)For All Other, includes a pre-tax loss of $11 million ($8 million after tax) associated with the extinguishment of debt at the parent company.
(d)Attributable to Southern Company.
Traditional Electric Operating Companies
Each of the traditional electric operating companies' single reportable business segment is the sale of electricity.
Alabama Power and Georgia Power have identified utility operations and maintenance expenses as significant segment expenses provided to their CODMs. Utility operations and maintenance expenses is calculated as other operations and maintenance, as reflected on the statements of income, less expenses from unregulated products and services, losses (gains) on asset dispositions, impairment charges, and amortization of cloud software. Alabama Power's utility operations and maintenance expenses are disaggregated into expenses related to Rate RSE and Rate CNP Compliance. See Note 2 to the financial statements under "Alabama Power" in Item 8 of the Form 10-K for additional information.
During the third and fourth quarters of 2025, Mississippi Power updated the information provided to its CODM. As a result, Mississippi Power identified certain operational and environmental compliance expenses as significant segment expenses and has recast prior period information to conform to the current period presentation.
Financial data for significant segment expenses and other segment information for the three months ended March 31, 2026 and 2025 was as follows:
Three Months Ended March 31,
20262025
(in millions)
Alabama Power
Operating revenues$2,092 $2,012 
Utility operations and maintenance
Rate RSE expenses301 365 
Rate CNP Compliance expenses74 75 
Total utility operations and maintenance375 440 
Other segment items(a)
667 608 
Depreciation and amortization381 370 
Interest expense115 108 
Income taxes129 111 
Segment net income$425 $375 
Capital expenditures$519 $560 
Georgia Power
Operating revenues$3,142 $3,037 
Utility operations and maintenance578 536 
Other segment items(a)
1,163 1,117 
Depreciation and amortization484 503 
Interest expense204 187 
Income taxes85 98 
Segment net income$628 $596 
Capital expenditures$2,070 $1,637 
Three Months Ended March 31,
20262025
(in millions)
Mississippi Power
Operating revenues$472 $420 
Operational expenses(b)
64 57 
Environmental compliance expenses(c)
4 2 
Other segment items(a)
251 218 
Depreciation and amortization55 52 
Interest expense20 20 
Income taxes18 16 
Segment net income
$60 $55 
Capital expenditures$82 $73 
(a)Primarily consists of fuel, purchased power, expenses from unregulated products and services, losses (gains) on asset dispositions, amortization of cloud software, taxes other than income taxes, AFUDC equity, and non-service cost-related retirement benefits income. For Mississippi Power, includes employee benefit expenses. Also includes earnings from equity method investments, which were immaterial for all periods presented.
(b)Consists of certain operations and maintenance expenses related to PEP and the MRA tariff, including labor costs, materials, contract services, and other normal operational costs. See Note (B) under "Mississippi Power" and Note 2 to the financial statements under "Mississippi Power" in Item 8 of the Form 10-K for additional information regarding PEP and the MRA tariff.
(c)Consists of environmental compliance expenses related to ECO Plan and the MRA tariff. See Note (B) under "Mississippi Power" and Note 2 to the financial statements under "Mississippi Power" in Item 8 of the Form 10-K for additional information regarding ECO Plan and the MRA tariff.
Southern Power
Southern Power's single reportable business segment is the sale of electricity in the competitive wholesale market. Southern Power's CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Southern Power has no reportable significant segment expenses.
Financial data for segment information for the three months ended March 31, 2026 and 2025 was as follows:
Three Months Ended March 31,
20262025
(in millions)
Operating revenues
$681 $567 
Other segment items(a)
442 303 
Depreciation and amortization(b)
278 152 
Interest expense27 26 
Income taxes (benefit)(70)(1)
Segment net income(b)(c)
$4 $87 
(a)Primarily consists of fuel, purchased power, other operations and maintenance, taxes other than income taxes, and net income (loss) attributable to noncontrolling interests.
(b)For the three months ended March 31, 2026 and 2025, includes accelerated depreciation of $154 million ($120 million after tax) and $27 million ($20 million after tax, net of noncontrolling interest impacts), respectively, related to the repowering of the multiple wind facilities. See Note (K) under "Southern Power – Wind Repowering Projects" and Notes 5 and 15 to the financial statements under "Depreciation and Amortization – Southern Power" and "Southern Power – Wind Repowering Projects," respectively, in Item 8 of the Form 10-K for additional information.
(c)Southern Power had no earnings from equity method investments for any period presented.
Southern Company Gas
Southern Company Gas manages its business through three reportable segments – gas distribution operations, gas pipeline investments, and gas marketing services. The non-reportable segments are combined and presented as "All Other."
The gas distribution operations segment is the largest component of Southern Company Gas' business and includes natural gas local distribution utilities that construct, manage, and maintain intrastate natural gas pipelines and gas distribution facilities in four states.
The gas pipeline investments segment consists of joint ventures in natural gas pipeline investments including a 50% interest in SNG and a 50% joint ownership interest in the Dalton Pipeline. These natural gas pipelines enable the provision of diverse sources of natural gas supplies to the customers of Southern Company Gas. See Note 7 to the financial statements under "Southern Company Gas" in Item 8 of the Form 10-K for additional information.
The gas marketing services segment provides natural gas marketing to end-use customers primarily in Georgia through SouthStar.
The "All Other" presentation includes operating segments and subsidiaries that fall below the quantitative threshold for separate disclosure.
Southern Company Gas' CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Southern Company Gas has no reportable significant segment expenses.
Financial data for business segments for the three months ended March 31, 2026 and 2025 was as follows:
Gas Distribution OperationsGas
Pipeline Investments		Gas Marketing Services
Total Reportable Segments
All
Other
EliminationsConsolidated
(in millions)
Three Months Ended March 31, 2026
Operating revenues$1,900 $8 $285 $2,193 $2 $(4)$2,191 
Other segment items(*)
1,177 — 183 1,360 1 (4)1,357 
Depreciation and amortization179 1 2 182 1 — 183 
Earnings from equity method investments— 46 — 46 — — 46 
Interest expense91 9 1 101 4 — 105 
Income taxes (benefit)
116 11 28 155 (10)— 145 
Segment net income
$337 $33 $71 $441 $6 $— $447 
Total assets at March 31, 2026
$26,111 $1,517 $1,768 $29,396 $11,276 $(13,121)$27,551 
Three Months Ended March 31, 2025
Operating revenues$1,570 $8 $261 $1,839 $4 $(4)$1,839 
Other segment items(*)
905 1 166 1,072 1 (4)1,069 
Depreciation and amortization164 1 3 168 1 — 169 
Earnings from equity method investments— 39 — 39 — — 39 
Interest expense82 9 1 92 — — 92 
Income taxes (benefit)
104 9 26 139 (9)— 130 
Segment net income$315 $27 $65 $407 $11 $— $418 
Total assets at December 31, 2025
$25,391 $1,475 $1,749 $28,615 $10,643 $(11,871)$27,387 
(*)Primarily consists of cost of natural gas, other operations and maintenance, taxes other than income taxes, AFUDC equity, and non-service cost-related retirement benefits income.