
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
At December 31, 2025
AROs(*)	$	5,482	$	1,644	$	3,604	$	234	$	—
Retiree benefit plans(*)	2,442		630		836		128		31
Remaining net book value of retired assets	1,052		408		631		13		—
Deferred income tax charges	962		261		675		25		—
Storm damage	941		—		912		29		—
Deferred depreciation	784		428		356		—		—
Under recovered regulatory clause revenues	284		232		—		24		28
Software and cloud computing costs	248		92		146		7		3
Environmental remediation(*)	242		—		13		—		229
Vacation pay(*)	242		90		124		12		16
Loss on reacquired debt	203		30		169		4		—
Nuclear outage	106		59		47		—		—
Regulatory clauses	83		52		—		—		31
Qualifying repairs of natural gas distribution systems	65		—		—		—		65
Fuel-hedging (realized and unrealized) losses	50		18		18		14		—
Long-term debt fair value adjustment	44		—		—		—		44
Plant Daniel Units 3 and 4	21		—		—		21		—
Other regulatory assets	225		65		30		40		90
Deferred income tax credits	(4,725)		(1,585)		(2,238)		(211)		(681)
Other cost of removal obligations	(1,022)		15		999		(115)		(1,921)
Reliability reserves	(243)		(184)		—		(59)		—
Over recovered regulatory clause revenues	(213)		—		(31)		—		(182)
Storm/property damage reserves	(118)		(60)		—		(58)		—

Plant Daniel Units 1 and 2 acquisition	(34)		—		—		(34)		—

Other regulatory liabilities	(234)		(17)		(16)		(3)		(61)
Total regulatory assets (liabilities), net	$	6,887	$	2,178	$	6,275	$	71	$	(2,308)


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
At December 31, 2024
AROs(*)	$	5,810	$	1,906	$	3,658	$	248	$	—
Retiree benefit plans(*)	2,605		680		892		134		44
Remaining net book value of retired assets	1,198		454		729		15		—
Deferred income tax charges	927		264		634		27		—
Storm damage	859		—		827		32		—
Deferred depreciation	535		286		249		—		—
Environmental remediation(*)	249		—		16		—		233
Vacation pay(*)	224		85		112		12		15
Loss on reacquired debt	219		32		183		4		—
Software and cloud computing costs	200		76		116		4		4
Under recovered regulatory clause revenues	167		119		—		17		31
Regulatory clauses	162		82		—		—		80
Nuclear outage	92		39		53		—		—
Fuel-hedging (realized and unrealized losses)	69		23		29		17		—
Qualifying repairs of natural gas distribution systems	53		—		—		—		53
Long-term debt fair value adjustment	52		—		—		—		52
Plant Daniel Units 3 and 4	23		—		—		23		—
Other regulatory assets	184		42		40		30		72
Deferred income tax credits	(4,536)		(1,398)		(2,149)		(219)		(755)
Other cost of removal obligations	(1,176)		24		816		(170)		(1,846)
Over recovered regulatory clause revenues	(285)		(29)		(52)		—		(204)
Reliability reserves	(188)		(131)		—		(57)		—
Storm/property damage reserves	(122)		(70)		—		(52)		—
Nuclear fuel disposal cost recovery	(100)		(100)		—		—		—

Other regulatory liabilities	(180)		(28)		(14)		(6)		(31)
Total regulatory assets (liabilities), net	$	7,041	$	2,356	$	6,139	$	59	$	(2,252)

AROs and other cost of removal obligations – Generally recorded over the related property lives, which may range up to 64 years for Alabama Power, 58 years for Georgia Power, 75 years for Mississippi Power, and 85 years for Southern Company Gas. AROs and other cost of removal obligations are settled and trued up following completion of the related activities. Alabama Power is recovering CCR ARO expenditures over a 38-year period ending in 2054 through Rate CNP Compliance. Georgia Power is recovering CCR ARO expenditures over four-year periods through its ECCR tariff. Mississippi Power is recovering CCR ARO expenditures over a 10-year period ending in 2034 through its ECO Plan. See "Georgia Power – Rate Plans" herein and Note 6 for additional information.

Retiree benefit plans – Recovered and amortized over the average remaining service period, which may range up to 14 years for Alabama Power, Georgia Power, and Mississippi Power and 15 years for Southern Company Gas. Southern Company's balances also include amounts at SCS and Southern Nuclear that are allocated to the applicable regulated utilities. See Note 11 for additional information.

Alabama Power: Primarily represents the net book value of Plant Gorgas Unit 10 ($387 million at December 31, 2025) being amortized over a remaining period of 12 years (through 2037) and Plant Barry Unit 4 ($32 million at December 31, 2025) being amortized over a remaining period of nine years (through 2034). See "Alabama Power – Environmental Accounting Order" herein for additional information.

Georgia Power: Net book values of Plant Wansley Units 1 and 2 and Plant Hammond Unit 4 (totaling $348 million and $271 million, respectively, at December 31, 2025) are being amortized over a remaining period of 13 years (through 2038) pursuant to the extension of the 2022 ARP. Balance also includes unusable materials and supplies inventories, for which the Georgia PSC will determine a recovery period in a future base rate case. See "Georgia Power – Rate Plans" herein additional information.

Mississippi Power: Represents net book value of certain environmental compliance assets at Plant Watson and Plant Greene County. The retail portion is being amortized over a remaining period of eight years (through 2033), and the wholesale portion is being amortized over a remaining period of nine years (through 2034). See "Mississippi Power – Environmental Compliance Overview Plan" herein for additional information.

Deferred income tax charges and credits – Charges are recovered and credits are primarily amortized over the related property lives, which may range up to 64 years for Alabama Power, 58 years for Georgia Power, 75 years for Mississippi Power, and 85 years for Southern Company Gas. See Note 10 for additional information. These accounts include certain deferred income tax assets and liabilities not subject to normalization, as described further below:

Alabama Power: Related amounts at December 31, 2025 include certain tax credits which will be returned to customers in a manner determined by the Alabama PSC, as discussed under "Alabama Power – Nuclear Production Tax Credits Order" herein. Related amounts at December 31, 2024 include excess federal deferred income tax liabilities that were returned for the benefit of customers in 2025, as discussed under "Alabama Power – Excess Accumulated Deferred Income Tax Accounting Order" herein.

Georgia Power: For deferred income tax charges, related amounts include deferred income tax assets related to construction costs for Plant Vogtle Units 3 and 4 ($120 million at December 31, 2025) being recovered over a remaining period of nine years (through 2034). For deferred income tax credits, related amounts at December 31, 2025 include $255 million of deferred income tax benefits for certain tax credits and $39 million of excess state deferred income tax liabilities, which are both expected to be amortized over a period of up to three years (through 2028), and related amounts at December 31, 2024 include $102 million of excess state deferred income tax liabilities that were returned to customers in 2025. See "Georgia Power – Rate Plans" and " – Nuclear Construction – Regulatory Matters" herein for additional information.

Mississippi Power: Related amounts at December 31, 2025 include retail excess federal deferred income tax liabilities of $21 million resulting from the Tax Reform Legislation, the flowback of which will be determined by the Mississippi PSC in a future rate proceeding. See "Mississippi Power – Excess Accumulated Deferred Income Tax Accounting Order" herein for additional information.

Southern Company Gas: Related amounts include deferred income tax liabilities ($26 million at December 31, 2025) being amortized over periods generally not exceeding five years, primarily related to excess state deferred income tax liabilities. See "Southern Company Gas – Rate Proceedings" herein for additional information.

Alabama Power: Represents deferred depreciation for Plant Barry Unit 5 ($170 million at December 31, 2025) and Plant Barry common coal assets ($73 million at December 31, 2025) to be amortized until 2036 beginning when Alabama Power utilizes updated deprecation rates which is anticipated to be January 1, 2028 and Plant Gaston Unit 5 coal assets ($185 million at December 31, 2025) to be amortized until 2039 beginning when the assets are retired.

Georgia Power: Represents deferred depreciation for Plant Scherer Units 1 through 3 and Plant Bowen Units 1 and 2 (totaling $209 million and $121 million, respectively, at December 31, 2025) to be amortized over 13 years beginning January 1, 2026 (through 2038), both pursuant to the extension of the 2022 ARP, and Plant Vogtle Unit 3 and common facilities ($26 million at December 31, 2025) being amortized over a remaining period of nine years (through 2034). See "Georgia Power – Rate Plans" herein additional information.

Southern Company Gas: Balances are recorded and recovered or amortized over periods generally not exceeding five years. In addition to natural gas cost recovery mechanisms, the natural gas distribution utilities have various other cost recovery mechanisms for the recovery of costs, including those related to infrastructure replacement programs.

Software and cloud computing costs – Represents certain deferred operations and maintenance costs associated with software and cloud computing projects. For Alabama Power, costs are amortized ratably over the life of the related software, which ranges up to 10 years (through 2035). For Georgia Power, costs incurred through 2022 are being amortized over five years (through 2027), and the recovery period for costs incurred after 2022 will be determined in its next base rate case. For Mississippi Power, the recovery period will be determined in Mississippi Power's annual PEP filing process following the completion of the projects and is expected to begin no earlier than 2027. For Southern Company Gas, costs are being amortized ratably over the life of the related software, which ranges up to 10 years (through 2035).

Environmental remediation – Effective January 1, 2023, Georgia Power is recovering $5 million annually for environmental remediation under the 2022 ARP. Southern Company Gas' costs are recovered through environmental cost recovery mechanisms when the remediation work is performed. See Note 3 under "Environmental Remediation" for additional information.

Loss on reacquired debt – Recovered over either the remaining life of the original issue or, if refinanced, over the remaining life of the new issue. At December 31, 2025, the remaining amortization periods do not exceed 22 years for Alabama Power, 27 years for Georgia Power, 16 years for Mississippi Power, and two years for Southern Company Gas.

Fuel-hedging (realized and unrealized) losses and gains – Assets and liabilities are recorded over the life of the underlying hedged purchase contracts. Upon final settlement, actual costs incurred are recovered through the applicable traditional electric operating company's fuel cost recovery mechanism. Purchase contracts generally do not exceed three and a half years for Alabama Power, three years for Georgia Power, and five years for Mississippi Power. Immaterial amounts for fuel-hedging gains at December 31, 2025 and 2024 are included in other regulatory liabilities. See Note 14 for additional information.

Plant Daniel Units 3 and 4 – Represents the difference between Mississippi Power's revenue requirement for Plant Daniel Units 3 and 4 under purchase accounting and operating lease accounting. At December 31, 2025, consists of the $15 million retail portion being amortized through 2046 over the remaining life of the related property and the $7 million wholesale portion being amortized over 10 years (through 2034).

Reliability reserves and storm/property damage reserves – Utilized as related expenses are incurred. See "Alabama Power – Rate NDR" and " – Reliability Reserve Accounting Order," "Georgia Power – Storm Damage Recovery," and "Mississippi Power – System Restoration Rider" and " – Reliability Reserve Accounting Order" herein for additional information.

Nuclear fuel disposal cost recovery – At December 31, 2024, represents award resulting from litigation related to nuclear fuel disposal costs, of which $93 million was returned to customers through bill credits during the months of January, February, and March 2025 and the remaining $7 million was applied to the NDR balance. See "Alabama Power – Rate NDR" herein and Note 3 under "Nuclear Fuel Disposal Costs" for additional information.

At December 31, 2025 and 2024, the environmental remediation liability and the balance of under recovered environmental remediation costs were reflected in the balance sheets of Southern Company, Georgia Power, and Southern Company Gas as shown in the table below. Alabama Power and Mississippi Power did not have environmental remediation liabilities at December 31, 2025 or 2024.


	Southern Company		Georgia Power		Southern Company Gas
	(in millions)
At December 31, 2025:
Environmental remediation liability:
Other current liabilities	$	34	$	14	$	20
Accrued environmental remediation	207		—		207
Under recovered environmental remediation costs:
Other regulatory assets, current	$	28	$	5	$	23
Other regulatory assets, deferred	214		8		206

At December 31, 2024:
Environmental remediation liability:
Other current liabilities	$	37	$	13	$	24
Accrued environmental remediation	198		—		198
Under recovered environmental remediation costs:
Other regulatory assets, current	$	37	$	5	$	32
Other regulatory assets, deferred	212		11		201