Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2025

The fuel and natural gas cost recovery balances for the traditional electric operating companies and Southern Company Gas, respectively, at September 30, 2025 and December 31, 2024 were as follows:


Regulatory Clause	Balance Sheet Line Item	At September 30, 2025		At December 31, 2024
		(in millions)
Alabama Power






Rate ECR	Other regulatory assets, current	$	14	$	—
	Other regulatory assets, deferred	69		—
	Other regulatory liabilities, current	—		29

Georgia Power
Fuel Cost Recovery	Receivables – under recovered retail fuel clause revenues	$	487	$	713
	Deferred under recovered retail fuel clause revenues	197		453


Mississippi Power
Fuel Cost Recovery(*)	Receivables – customer accounts, net	$	30	$	—
	Deferred under recovered retail fuel clause revenues	—		32
	Over recovered retail fuel clause revenues	—		32


Southern Company Gas

Natural Gas Cost Recovery	Natural gas cost over recovery	$	163	$	193

(*)Mississippi Power also has wholesale MRA and Market Based (MB) fuel cost recovery factors. At September 30, 2025 and December 31, 2024, wholesale MRA fuel cost over recovery was immaterial and $19 million, respectively, and was included in other current liabilities on Mississippi Power's balance sheets. The wholesale MB fuel cost recovery was immaterial for both periods presented.

Schedule of Construction Projects

Project(*)

Resource

Approximate Nameplate Capacity

(MW)

Projected COD

Regulatory Approval

Projects Under Construction at September 30, 2025

McGrau Ford

Battery energy storage

265

Fourth quarter 2026

2022 IRP

Plant Yates Units 8 through 10

Combustion turbine

1,326

Fourth quarter 2026 through third quarter 2027

2023 IRP Update

Various facilities

Battery energy storage

500

Second quarter 2026 through fourth quarter 2026

2023 IRP Update

(*)Excludes a 200-MW battery energy storage facility which has not incurred significant costs. See "Integrated Resource Plans" herein for additional information.