SOUTHERN CO

Georgia Power's net income in the second quarter 2024 was $762 million compared to $471 million for the corresponding period in 2023. For year-to-date 2024, net income was $1.2 billion compared to $0.8 billion for the corresponding period in 2023. The increases were primarily due to higher retail revenues associated with the inclusion of Plant Vogtle Units 3 and 4 in retail rates, warmer weather in the second quarter 2024 as compared to the corresponding period in 2023, and base tariff increases in accordance with the 2022 ARP. See Note 2 to the financial statements under "Georgia Power" in Item 8 of the Form 10-K for additional information.

In the second quarter 2024, retail revenues were $2.60 billion compared to $2.17 billion for the corresponding period in 2023. For year-to-date 2024, retail revenues were $4.75 billion compared to $4.15 billion for the corresponding period in 2023. Details of the changes in retail revenues were as follows:

Revenues associated with changes in rates and pricing increased in the second quarter and year-to-date 2024 when compared to the corresponding periods in 2023. The increases were primarily due to the inclusion of Plant Vogtle Units 3 and 4 in retail rates, base tariff increases in accordance with the 2022 ARP, and higher contributions from commercial and industrial customers with variable demand-driven pricing, partially offset by a decrease in revenues recognized under the NCCR tariff primarily due to its elimination in the second quarter 2024 following commercial operation of Plant Vogtle Unit 4. See Note (B) to the Condensed Financial Statements under "Georgia Power – Nuclear Construction – Regulatory Matters" herein and Note 2 to the financial statements under "Georgia Power" in Item 8 of the Form 10-K for additional information.

Revenues attributable to changes in sales increased in the second quarter and year-to-date 2024 when compared to the corresponding periods in 2023. Weather-adjusted residential KWH sales decreased 0.7% in the second quarter 2024 primarily due to decreased customer usage, partially offset by customer growth. Weather-adjusted residential KWH sales increased 0.6% for year-to-date 2024 primarily due to customer growth, partially offset by decreased customer usage. Weather-adjusted commercial KWH sales increased 3.4% and 3.7% in the second quarter and year-to-date 2024, respectively, primarily due to increased customer usage and customer growth. Weather-adjusted industrial KWH sales decreased 1.3% in the second quarter 2024 primarily due to a decrease in the paper sector, partially offset by increases in the transportation and mining sectors. Weather-adjusted industrial KWH sales increased 0.2% for year-to-date 2024 primarily due to increases in the transportation and lumber sectors, partially offset by a decrease in the paper sector.

Fuel revenues and costs are allocated between retail and wholesale jurisdictions. Retail fuel cost recovery revenues increased in the second quarter and year-to-date 2024 when compared to the corresponding periods in 2023 due to higher fuel and purchased power costs. Electric rates include provisions to adjust billings for fluctuations in fuel costs, including the energy component of purchased power costs. Under these fuel cost recovery provisions, fuel revenues generally equal fuel expenses and do not affect net income. See Note (B) to the Condensed Financial Statements herein and Note 2 to the financial statements under "Georgia Power – Fuel Cost Recovery" in Item 8 of the Form 10-K for additional information.

Wholesale Revenues

In the second quarter 2024, wholesale revenues were $63 million compared to $47 million for the corresponding period in 2023. For year-to-date 2024, wholesale revenues were $120 million compared to $78 million for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were primarily due to increases of $22 million and $46 million, respectively, related to new capacity contracts and $17 million and $25 million, respectively, related to the volume of KWH sales associated with higher market demand, partially offset by decreases of $17 million and $23 million, respectively, related to the average cost per KWH sold due to lower Southern Company system fuel and purchased power prices.

Wholesale revenues from sales to non-affiliates consist of PPAs and short-term opportunity sales. Wholesale revenues from PPAs have both capacity and energy components. Wholesale capacity revenues from PPAs are recognized in amounts billable under the contract terms and provide for recovery of fixed costs and a return on investment. Wholesale revenues from sales to non-affiliates will vary depending on fuel prices, the market prices of wholesale energy compared to the cost of Georgia Power's and the Southern Company system's generation, demand for energy within the Southern Company system's electric service territory, and the availability of the Southern Company system's generation. Increases and decreases in energy revenues that are driven by fuel prices are accompanied by an increase or decrease in fuel costs and do not have a significant impact on net income. Short-term opportunity sales are made at market-based rates that generally provide a margin above Georgia Power's variable cost of energy.

Wholesale revenues from sales to affiliated companies will vary depending on demand and the availability and cost of generating resources at each company. These affiliate sales are made in accordance with the IIC, as approved by the FERC. Energy revenues related to these transactions do not have a significant impact on earnings since this energy is generally sold at marginal cost.

In the second quarter 2024, other revenues were $215 million compared to $179 million for the corresponding period in 2023. For year-to-date 2024, other revenues were $401 million compared to $343 million for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were primarily due to increases of $35 million and $42 million, respectively, in unregulated sales primarily associated with power delivery construction and maintenance, energy conservation projects, and outdoor lighting, $5 million and $11 million, respectively, in regulated outdoor lighting sales, and $3 million and $5 million, respectively, in customer fees, partially offset by net increases $7 million and $11 million, respectively, in realized losses associated with price stability products for retail customers on variable demand-driven pricing tariffs.

In the second quarter 2024, total fuel and purchased power expenses were $774 million compared to $708 million for the corresponding period in 2023. For year-to-date 2024, total fuel and purchased power expenses were $1.5 billion compared to $1.4 billion for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were due to increases of $75 million and $87 million, respectively, related to the volume of KWHs generated and purchased, partially offset by net decreases of $9 million and $43 million, respectively, related to the average cost of fuel and purchased power.

Fuel and purchased power energy transactions do not have a significant impact on earnings since these fuel expenses are generally offset by fuel revenues through Georgia Power's fuel cost recovery mechanism. See Note 2 to the financial statements under "Georgia Power – Fuel Cost Recovery" in Item 8 of the Form 10-K for additional information.

Details of Georgia Power's generation and purchased power were as follows:

(a)Excludes KWHs generated from test period energy at Plant Vogtle Units 3 and 4 prior to their respective in-service dates. The related fuel costs were charged to CWIP in accordance with FERC guidance. See Note (B) to the Condensed Financial Statements under "Georgia Power – Nuclear Construction" herein for additional information on Plant Vogtle Units 3 and 4.

(b)Average cost of purchased power includes fuel purchased by Georgia Power for tolling agreements where power is generated by the provider.

Fuel

In the second quarter 2024, fuel expense was $441 million compared to $414 million for the corresponding period in 2023. The increase was primarily due to increases of 44.9% in the volume of KWHs generated by nuclear, 36.1% in the average cost per KWH generated by nuclear, 31.2% in the volume of KWHs generated by coal, and 6.7% in the average cost per KWH generated by natural gas, partially offset by decreases of 19.5% in the average cost per KWH generated by coal and 10.0% in the volume of KWHs generated by natural gas.

For year-to-date 2024, fuel expense was $830 million compared to $816 million for the corresponding period in 2023. The increase was primarily due to increases of 40.9% in the volume of KWHs generated by nuclear, 34.0% in the volume of KWHs generated by coal, and 30.1% in the average cost per KWH generated by nuclear, partially offset by decreases of 18.8% in the average cost per KWH generated by coal, 8.3% in the volume of KWHs generated by natural gas, and 3.5% in the average cost per KWH generated by natural gas.

Purchased Power – Non-Affiliates

In the second quarter 2024, purchased power expense from non-affiliates was $151 million compared to $142 million for the corresponding period in 2023. For year-to-date 2024, purchased power expense from non-affiliates was $291 million compared to $266 million for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were primarily due to increases of 21.9% and 23.8%, respectively, in the volume of KWHs purchased as Georgia Power and other Southern Company system units generally dispatched at a higher cost than available market resources, partially offset by decreases of 14.1% and 11.6%, respectively, in the average cost per KWH purchased primarily due to lower natural gas prices.

Energy purchases from non-affiliates will vary depending on the market prices of wholesale energy as compared to the cost of the Southern Company system's generation, demand for energy within the Southern Company system's electric service territory, and the availability of the Southern Company system's generation.

Purchased Power – Affiliates

In the second quarter 2024, purchased power expense from affiliates was $182 million compared to $152 million for the corresponding period in 2023. The increase was primarily due to capacity purchased through a new PPA with Mississippi Power and an increase of 3.1% in the volume of KWHs purchased largely due to higher customer demand.

For year-to-date 2024, purchased power expense from affiliates was $363 million compared to $358 million for the corresponding period in 2023. The increase was primarily due to capacity purchased through a new PPA with Mississippi Power, partially offset by a decrease of 6.9% in the volume of KWHs purchased as Southern Company system units generally dispatched at a higher cost than available market resources.

See Note (B) to the Condensed Financial Statements under "Georgia Power – Integrated Resource Plans" herein for additional information.

Energy purchases from affiliates will vary depending on the demand and the availability and cost of generating resources at each company within the Southern Company system. These purchases are made in accordance with the IIC or other contractual agreements, all as approved by the FERC.

In the second quarter 2024, other operations and maintenance expenses were $459 million compared to $496 million for the corresponding period in 2023. For year-to-date 2024, other operations and maintenance expenses were $974 million compared to $991 million for the corresponding period in 2023. The decreases for the second quarter and year-to-date 2024 were primarily due to increases of $115 million and $95 million, respectively, in gains from sales of integrated transmission system assets and decreases of $13 million and $30 million, respectively, in technology infrastructure and application production costs. Partially offsetting these decreases for the second quarter and year-to-date 2024 were increases of $28 million and $44 million, respectively, in generation expenses primarily associated with non-outage maintenance costs resulting from Plant Vogtle Units 3 and 4 being placed in service in July 2023 and April 2024, respectively, $15 million and $16 million, respectively, in unregulated power delivery construction and maintenance contracts, $14 million and $18 million, respectively, in customer service and sales costs primarily associated with demand-side management costs, $13 million and $21 million, respectively, in transmission and distribution costs primarily associated with line maintenance and billing adjustments with integrated transmission system owners, and $10 million and $13 million, respectively, in expenses associated with unregulated energy conservation projects.

See Note (B) to the Condensed Financial Statements under "Georgia Power – Transmission Asset Sales" and " – Nuclear Construction" herein for additional information.

In the second quarter 2024, depreciation and amortization was $447 million compared to $411 million for the corresponding period in 2023. For year-to-date 2024, depreciation and amortization was $872 million compared to

$819 million for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were primarily due to increases of $46 million and $74 million, respectively, associated with additional plant in service, partially offset by decreases of $15 million and $30 million, respectively, in amortization of regulatory assets related to CCR AROs as approved in the 2024 compliance filing under the terms of the 2022 ARP. See Note 2 to the financial statements under "Georgia Power – Rate Plans" in Item 8 of the Form 10-K for additional information.

In the second quarter 2024, taxes other than income taxes were $164 million compared to $132 million for the corresponding period in 2023. For year-to-date 2024, taxes other than income taxes were $311 million compared to $263 million for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were primarily due to increases of $21 million and $35 million, respectively, in property taxes primarily resulting from an increase in the assessed value of property and increases of $11 million and $14 million, respectively, in municipal franchise fees resulting from higher retail revenues.

Estimated Loss on Plant Vogtle Units 3 and 4

Georgia Power recorded a pre-tax credit to income related to the estimated probable loss on Plant Vogtle Units 3 and 4 totaling $21 million in the second quarter 2024. This credit reflects a revision to the total project capital cost forecast for the completion of Plant Vogtle Units 3 and 4. See Note (B) to the Condensed Financial Statements herein and Note 2 to the financial statements in Item 8 of the Form 10-K under "Georgia Power – Nuclear Construction" for additional information.

In the second quarter 2024, allowance for equity funds used during construction were $33 million compared to $43 million for the corresponding period in 2023. For year-to-date 2024, allowance for equity funds used during construction was $72 million compared to $83 million for the corresponding period in 2023. The decreases were primarily due to Plant Vogtle Units 3 and 4 being placed in service in July 2023 and April 2024, respectively, partially offset by an increase in capital expenditures subject to AFUDC. See Note (B) to the Condensed Financial Statements under "Georgia Power – Nuclear Construction" herein for additional information on Plant Vogtle Units 3 and 4.

In the second quarter 2024, interest expense, net of amounts capitalized was $185 million compared to $160 million for the corresponding period in 2023. For year-to-date 2024, interest expense, net of amounts capitalized was $359 million compared to $306 million for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were primarily associated with increases of approximately $13 million and $30 million, respectively, related to higher interest rates and $8 million and $23 million, respectively, related to higher average outstanding borrowings. See FINANCIAL CONDITION AND LIQUIDITY – "Sources of Capital" and "Financing Activities" herein for additional information on borrowings.

In the second quarter 2024, other income (expense), net was $54 million compared to $36 million for the corresponding period in 2023. For year-to-date 2024, other income (expense), net was $104 million compared to $80 million for the corresponding period in 2023. The increases for the second quarter and year-to-date 2024 were primarily due to increases of $8 million and $9 million, respectively, in customer charges related to contributions in aid of construction and a $7 million charge in the second quarter 2023 under a stipulation approved by the Georgia PSC related to Georgia Power's fuel cost recovery case. See Note 2 to the financial statements in Item 8 of the Form 10-K under "Georgia Power – Fuel Cost Recovery" for additional information.

In the second quarter 2024, income taxes were $192 million compared to $92 million for the corresponding period in 2023. For year-to-date 2024, income taxes were $271 million compared to $144 million for the corresponding period in 2023. The increases were primarily due to higher pre-tax earnings and a $56 million increase in charges to a valuation allowance on certain state tax credit carryforwards, partially offset by the generation of $31 million and $51 million of advanced nuclear PTCs in the second quarter and year-to-date 2024, respectively, and $33 million from the recognition of certain state tax positions from amended returns. See Note (G) to the Condensed Financial Statements herein for additional information.