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Segment and Related Information
 6 Months Ended
Jun. 30, 2025
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 renewable energy and 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 sale 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. Revenues from sales by Southern Power to the traditional electric operating companies were $114 million and $229 million for the three and six months ended June 30, 2025, respectively, and $86 million and $179 million for the three and six months ended June 30, 2024, respectively. Revenues from sales of natural gas from Southern Company Gas to the traditional electric operating companies and Southern Power were immaterial for all periods presented. The "All Other" column includes the Southern Company parent entity, which does not allocate operating expenses to business segments. Also, this category includes segments below the quantitative threshold for separate disclosure. These segments include providing distributed energy and resilience solutions and deploying microgrids for commercial, industrial, governmental, and utility customers, as well as investments in telecommunications. All other inter-segment revenues are not material.
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 and six months ended June 30, 2025 and 2024 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 June 30, 2025
Operating revenues$5,380 $546 $(122)$5,804 $979 $6,783 $225 $(35)$6,973 
Other segment items(a)
2,674 296 (122)2,848 599 3,447 193 (23)3,617 
Depreciation and amortization(b)
957 177 — 1,134 172 1,306 17 — 1,323 
Earnings from equity method investments4 — — 4 23 27 (17)— 10 
Interest expense(c)
336 24 — 360 92 452 422 — 874 
Income taxes (benefit)370 (2)— 368 33 401 (112)— 289 
Segment net income (loss)(b)(c)(d)
$1,047 $51 $— $1,098 $106 $1,204 $(312)$(12)$880 
Six Months Ended June 30, 2025
Operating revenues$10,692 $1,113 $(245)$11,560 $2,818 $14,378 $454 $(84)$14,748 
Other segment items(a)
5,468 599 (245)5,822 1,670 7,492 401 (81)7,812 
Depreciation and amortization(b)
1,905 329 — 2,234 341 2,575 33 — 2,608 
Earnings from equity method investments2 — — 2 62 64 (21)— 43 
Interest expense(c)
652 50 — 702 183 885 703 — 1,588 
Income taxes (benefit)596 (3)— 593 162 755 (186)— 569 
Segment net income (loss)(b)(c)(d)
$2,073 $138 $— $2,211 $524 $2,735 $(518)$(3)$2,214 
At June 30, 2025
Goodwill$— $2 $— $2 $5,015 $5,017 $144 $— $5,161 
Total assets108,676 12,817 (1,013)120,480 26,376 146,856 2,417 (420)148,853 
Electric Utilities
Traditional
Electric Operating
Companies		Southern
Power		EliminationsTotalSouthern Company Gas
Total Reportable Segments
All
Other		EliminationsConsolidated
(in millions)
Three Months Ended June 30, 2024
Operating revenues$5,025 $524 $(93)$5,456 $831 $6,287 $222 $(46)$6,463 
Other segment items(a)(e)
2,322 268 (93)2,497 478 2,975 193 (43)3,125 
Depreciation and amortization880 127 — 1,007 158 1,165 17 — 1,182 
Earnings from equity method investments— — — — 32 32 (1)— 31 
Interest expense323 30 — 353 83 436 259 (1)694 
Income taxes (benefit)308 13 — 321 36 357 (67)— 290 
Segment net income (loss)(d)(e)
$1,192 $86 $— $1,278 $108 $1,386 $(181)$(2)$1,203 
Six Months Ended June 30, 2024
Operating revenues$9,463 $997 $(189)$10,271 $2,538 $12,809 $383 $(83)$13,109 
Other segment items(a)(e)
4,603 512 (189)4,926 1,443 6,369 347 (60)6,656 
Depreciation and amortization1,733 245 — 1,978 313 2,291 36 — 2,327 
Earnings from equity method investments2 — — 2 76 78 (2)1 77 
Interest expense635 59 — 694 167 861 508 (11)1,358 
Income taxes (benefit)482 (1)— 481 174 655 (142)— 513 
Segment net income (loss)(d)(e)
$2,012 $182 $— $2,194 $517 $2,711 $(368)$(11)$2,332 
At December 31, 2024
Goodwill$— $2 $— $2 $5,015 $5,017 $144 $— $5,161 
Total assets105,577 12,653 (1,025)117,205 26,177 143,382 2,371 (573)145,180 
(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 the Kay Wind, Grant Plains, and Grant Wind facilities of $42 million ($31 million after tax, net of noncontrolling interest impacts) and $69 million ($51 million after tax, net of noncontrolling interest impacts) for the three and six months ended June 30, 2025, respectively. See Note (K) under "Southern Power – Wind Repowering Projects" herein and Note 15 to the financial statements under "Southern Power – Development Projects" in Item 8 of the Form 10-K for additional information.
(c)For all other, includes a pre-tax loss of $129 million ($97 million after tax) associated with the extinguishment of debt at the parent company. See Note (F) under "Convertible Senior Notes" herein for additional information.
(d)Attributable to Southern Company.
(e)For the traditional electric operating companies, includes a pre-tax credit to income at Georgia Power of $21 million ($16 million after tax) related to the estimated probable loss associated with the completion of Plant Vogtle Units 3 and 4, as well as a pre-tax gain at Georgia Power of approximately $114 million ($84 million after tax) related to the sale of transmission line assets under the integrated transmission system agreement. See Note 2 to the financial statements under "Georgia Power" in Item 8 of the Form 10-K for additional information.
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, amortization of cloud software, and, for Georgia Power, charges (credits) for estimated loss on Plant Vogtle Units 3 and 4. Alabama Power's utility operations and maintenance expenses are disaggregated into expenses related to Rate RSE and Rate CNP Compliance, which are not applicable to Georgia Power. See Note 2 to the financial statements under "Alabama Power" in Item 8 of the Form 10-K for additional information.
Financial data for Alabama Power's and Georgia Power's significant segment expenses and other segment information for the three and six months ended June 30, 2025 and 2024 was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in millions)
Alabama Power
Operating revenues$1,968 $1,873 $3,980 $3,664 
Utility operations and maintenance
Rate RSE expenses374 339 739 664 
Rate CNP Compliance expenses67 66 142 129 
Total utility operations and maintenance441 405 881 793 
Other segment items(a)
544 519 1,152 1,033 
Depreciation and amortization371 364 741 725 
Interest expense116 114 225 224 
Income taxes115 102 226 187 
Segment net income$381 $369 $755 $702 
Capital expenditures$599 $470 $1,159 $921 
Georgia Power
Operating revenues$3,110 $2,875 $6,148 $5,273 
Utility operations and maintenance568 499 1,104 962 
Other segment items(a)(b)
989 790 2,106 1,610 
Depreciation and amortization512 447 1,015 872 
Interest expense198 185 385 359 
Income taxes236 192 334 271 
Segment net income(b)
$607 $762 $1,204 $1,199 
Capital expenditures$1,676 $1,320 $3,313 $2,353 
(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, non-service cost-related retirement benefits income, and, for Georgia Power, charges (credits) for estimated loss on Plant Vogtle Units 3 and 4. Also includes earnings from equity method investments, which were immaterial for all periods presented.
(b)For the three and six months ended June 30, 2024, includes a pre-tax credit to income of $21 million ($16 million after tax) related to the estimated probable loss associated with the completion of Plant Vogtle Units 3 and 4, as well as a pre-tax gain of approximately $114 million ($84 million after tax) related to the sale of transmission line assets under the integrated transmission system agreement. See Note 2 to the financial statements under "Georgia Power" in Item 8 of the Form 10-K for additional information.
Mississippi Power's CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Mississippi Power has no reportable significant segment expenses. Mississippi Power's segment information for revenues, depreciation and amortization, interest expense, and income taxes is reflected on its statements of income. Mississippi Power's earnings from equity method investments are included in other income (expense), net on its statements of income and were immaterial for all periods presented. Other segment items primarily consist of fuel and purchased power, other operations and maintenance, taxes other than income taxes, and non-service cost-related retirement benefits income and totaled $252 million and $528 million for the
three and six months ended June 30, 2025, respectively, and $221 million and $438 million for the three and six months ended June 30, 2024, respectively.
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. Southern Power's segment information for revenues, depreciation and amortization, interest expense, and income taxes (benefit) is reflected on its consolidated statements of income. Southern Power had no earnings from equity method investments for any period presented. Other segment items primarily consist of fuel, purchased power, other operations and maintenance, taxes other than income taxes, and net income (loss) attributable to noncontrolling interests and totaled $296 million and $599 million for the three and six months ended June 30, 2025, respectively, and $268 million and $512 million for the three and six months ended June 30, 2024, respectively.
For the three and six months ended June 30, 2025, depreciation and amortization includes accelerated depreciation of $42 million ($31 million after tax, net of noncontrolling interest impacts) and $69 million ($51 million after tax, net of noncontrolling interest impacts), respectively, related to the repowering of the Kay Wind, Grant Plains, and Grant Wind facilities. See Note (K) under "Southern Power – Wind Repowering Projects" herein and Note 15 to the financial statements under "Southern Power – Development Projects" in Item 8 of the Form 10-K for additional information.
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 and Illinois through SouthStar.
The "All Other" column includes segments and subsidiaries that fall below the quantitative threshold for separate disclosure, including storage and fuels operations.
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 and six months ended June 30, 2025 and 2024 was as follows:
Gas Distribution OperationsGas
Pipeline Investments		Gas Marketing Services
Total Reportable Segments
All OtherEliminationsConsolidated
(in millions)
Three Months Ended June 30, 2025
Operating revenues$885 $8 $83 $976 $5 $(2)$979 
Other segment items(*)
526 1 68 595 6 (2)599 
Depreciation and amortization167 1 3 171 1 — 172 
Earnings from equity method investments— 23 — 23 — — 23 
Interest expense82 9 1 92 — — 92 
Income taxes19 5 3 27 6 — 33 
Segment net income$91 $15 $8 $114 $(8)$— $106 
Six Months Ended June 30, 2025
Operating revenues$2,454 $16 $345 $2,815 $9 $(6)$2,818 
Other segment items(*)
1,431 3 234 1,668 8 (6)1,670 
Depreciation and amortization330 3 7 340 1 — 341 
Earnings from equity method investments— 62 — 62 — — 62 
Interest expense164 18 1 183 — — 183 
Income taxes (benefit)
123 13 29 165 (3)— 162 
Segment net income
$406 $41 $74 $521 $3 $— $524 
Total assets at June 30, 2025
$24,864 $1,595 $1,679 $28,138 $10,492 $(12,254)$26,376 
Three Months Ended June 30, 2024
Operating revenues$749 $8 $70 $827 $7 $(3)$831 
Other segment items(*)
420 2 52 474 7 (3)478 
Depreciation and amortization152 1 4 157 1 — 158 
Earnings from equity method investments— 32 — 32 — — 32 
Interest expense76 9 2 87 (4)— 83 
Income taxes21 6 3 30 6 — 36 
Segment net income (loss)$80 $22 $9 $111 $(3)$— $108 
Six Months Ended June 30, 2024
Operating revenues$2,212 $16 $305 $2,533 $13 $(8)$2,538 
Other segment items(*)
1,246 4 193 1,443 8 (8)1,443 
Depreciation and amortization303 2 7 312 1 — 313 
Earnings from equity method investments— 76 — 76 — — 76 
Interest expense154 18 2 174 (7)— 167 
Income taxes (benefit)
127 16 29 172 2 — 174 
Segment net income$382 $52 $74 $508 $9 $— $517 
Total assets at December 31, 2024
$24,067 $1,573 $1,696 $27,336 $10,047 $(11,206)$26,177 
(*)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.