GEORGIA POWER CO

Mississippi Power's net income for year-to-date 2024 was $186 million compared to $173 million for the corresponding period in 2023. The increase was primarily due to increases in affiliate wholesale capacity revenues and retail revenues largely due to certain regulatory assets that fully amortized in December 2023, partially offset by an increase in non-fuel operations and maintenance expenses.

In the third quarter 2024, retail revenues were $276 million compared to $284 million for the corresponding period in 2023. For year-to-date 2024, retail revenues were$739 million compared to$747 million for the corresponding period in 2023. Details of the changes in retail revenues were as follows:

Revenues associated with changes in rates and pricing increasedin thethird quarter andyear-to-date 2024 when compared to the corresponding periods in 2023 primarily due to certain regulatory assets that fully amortized in December 2023 and higher ECO Plan rates that became effective in June 2024.

Revenues attributable to changes in sales decreased in the third quarter and increased for year-to-date 2024 when compared to the corresponding periods in 2023. Weather-adjusted residential KWH sales decreased 7.1% and 2.2% in thethird quarter and year-to-date 2024, respectively, primarily due to decreased customer usage. Weather-adjusted commercial KWH sales decreased 2.6% in the third quarter 2024 primarily due to decreased customer usage. Weather-adjusted commercial KWH sales increased 3.4% for year-to-date 2024 primarily due to increased customer usage. Industrial KWH sales increased 2.0% in thethird quarter 2024 primarily due to increases in the chemicals and pipeline sectors. Industrial KWH sales decreased 0.6% for year-to-date 2024 primarily due to a decrease in the petroleum sector.

Fuel and other cost recovery revenues decreased in the third quarter and year-to-date 2024 when compared to the corresponding periods in 2023 primarily as a result of lower recoverable fuel costs. Recoverable fuel costs include fuel and purchased power expenses reduced by the fuel and emissions portion of wholesale revenues from energy sold to customers outside Mississippi Power's service territory. Electric rates include provisions to adjust billings for fluctuations in fuel costs, including the energy component of purchased power costs. Under these provisions, fuel revenues generally equal fuel expenses, including the energy component of purchased power costs, and do not affect net income. See Note 2 to the financial statements in Item 8 of the Form 10-K for additional information.

Wholesale Revenues – Non-Affiliates

In the third quarter 2024, wholesale revenues from sales to non-affiliates were $66 million compared to $77 million for the corresponding period in 2023. For year-to-date 2024, wholesale revenues from sales to non-affiliates were $179 million compared to $201 million for the corresponding period in 2023. The decreases for the third quarter and year-to-date 2024 were primarily due to decreases of $6 million and $9 million, respectively, associated with lower opportunity sales and decreases of $4 million and $11 million, respectively, associated with MRA customers largely due to lower recoverable fuel costs.

Wholesale revenues from sales to non-affiliates will vary depending on fuel prices, the market prices of wholesale energy compared to the cost of Mississippi 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. Inaddition, Mississippi Power provides service under long-term contracts with rural electric cooperative associations and municipalities located in southeastern Mississippi under cost-based electric tariffs which are subject to regulation by the FERC. Short-term opportunity energy sales are also included in sales for resale to non-affiliates. These opportunity sales are made at market-based rates that generally provide a margin above Mississippi Power's variable cost to produce the energy. See Note 2 to the financial statements under "Mississippi Power – Municipal and Rural Associations Tariff" in Item 8 of the Form 10-K for additional information.

Wholesale Revenues – Affiliates

In the third quarter 2024, wholesale revenues from sales to affiliates were $57 million compared to $65 million for the corresponding period in 2023. The decrease was due to decreases of $19 million related to the volume of KWH sales and $5 million related to the price of energy driven by natural gas prices. These decreases were partially offset by an increase of $16 million in capacity revenues primarily associated with a new PPA with Georgia Power.

For year-to-date 2024, wholesale revenues from sales to affiliates were $166 million compared to$158 million for the corresponding period in 2023. The increase was due to an increase of $46 million in capacity revenues primarily associated with a new PPA with Georgia Power. This increase was partially offset by decreases of $30 million in capacity revenues mainly associated with Mississippi Power's lower availability of generation reserves to the Southern Company power pool and $8 million primarily related to the volume of KWH sales.

See Note 2 to the financial statements under "Mississippi Power – Integrated Resource Plan" in Item 8 of the Form 10-K for additional information.

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 or other contractual agreements, 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 third quarter 2024, total fuel and purchased power expenses were $134 million compared to $169 million for the corresponding period in 2023. The decrease was due to a $24 million net decrease associated with the volume of KWHs generated and purchased and an $11 million net decrease related to the average cost of fuel and purchased power.

For year-to-date 2024, total fuel and purchased power expenses were $363 million compared to$416 million for the corresponding period in 2023. Thedecrease was due to a $42 million net decrease related to the average cost of fuel and purchased power and an $11 million net decrease related to the volume of KWHs generated and purchased.

Fuel and purchased power energy transactions do not have a significant impact on earnings since energy expenses are generally offset by energy revenues through Mississippi Power's fuel cost recovery clause.

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

Fuel

In the third quarter 2024, fuel expense was $123 million compared to $162 million for the corresponding period in 2023. The decrease was primarily due to a 26.9% decrease in the volume of KWHs generated by coal, a 13.9% decrease in the volume of KWHs generated by natural gas, a 10.7% decrease in the average cost per KWH generated by natural gas, and a 1.8% decrease in the average cost per KWH generated by coal.

For year-to-date 2024, fuel expense was $334 million compared to $398 million for the corresponding period in 2023. The decrease was primarily due to a 12.9% decrease in the average cost per KWH generated by natural gas, a 7.2% decrease in the volume of KWHs generated by natural gas, and a 5.9% decrease in the average cost per KWH generated by coal, partially offset by a 6.5% increase in the volume of KWHs generated by coal.

Purchased Power

In the third quarter 2024, purchased power expense was $11 million compared to $7 million for the corresponding period in 2023. For year-to-date 2024, purchased power expense was $29 million compared to $18 million for the corresponding period in 2023. The increases for the third quarter and year-to-date 2024 were primarily due to increases of 51.4% and 48.3%, respectively, in the volume of KWHs purchased and increases of 2.2% and 5.2%, respectively, in the average cost per KWH purchased primarily due to higher natural gas prices.

In the third quarter 2024, other operations and maintenance expenses were $90 million compared to $84 million for the corresponding period in 2023. For year-to-date 2024, other operations and maintenance expenses were $261 million compared to $258 million for the corresponding period in 2023. The increases for the third quarter and year-to-date 2024 were primarily due to increases of $6 million in generation expenses for both periods primarily associated with planned outages and non-outage costs, respectively, and $4 million and $6 million, respectively, in certain employee compensation and benefit expenses, partially offset by decreases of $3 million and $9 million, respectively, associated with previously deferred Plant Ratcliffe expenses that fully amortized in December 2023.

In the third quarter 2024, income taxes were $22 million compared to $18 million for the corresponding period in 2023. The increase was primarily due to a decrease of $3 million in the flowback of certain excess deferred income taxes.

For year-to-date 2024, income taxes were $47 million compared to $35 million for the corresponding period in 2023. The increase was primarily due to higher pre-tax earnings and a decrease of $6 million in the flowback of certain excess deferred income taxes.

See Note (G) to the Condensed Financial Statements herein for additional information.