ALABAMA POWER CO

Consolidated net income attributable to Southern Company was $880 million ($0.80 per share) in the second quarter 2025 compared to $1.2 billion ($1.10 per share) for the corresponding period in 2024. For year-to-date 2025, consolidated net income attributable to Southern Company was $2.2 billion ($2.01 per share) compared to $2.3 billion ($2.13 per share) for the corresponding period in 2024. The decreases were primarily due to increases in non-fuel operations and maintenance expenses, depreciation and amortization, interest expense, and income taxes, partially offset by increases in retail electric revenues associated with rates and pricing and sales growth, natural gas revenues associated with base rate increases, other revenues, and allowance for equity funds used during construction. Also contributing to the second quarter 2025 decrease were weather impacts, which partially offset the increase in retail electric revenues.

Retail Electric Revenues

In the second quarter 2025, retail electric revenues were $4.8 billion compared to $4.5 billion for the corresponding period in 2024. For year-to-date 2025, retail electric revenues were $9.4 billion compared to $8.4 billion for the corresponding period in 2024. Details of the changes in retail electric revenues were as follows:

Changes in rates and pricing resulted in an increasein revenues in thesecond quarter and year-to-date 2025 when compared to the corresponding periods in 2024 primarily due tothe inclusion of Plant Vogtle Unit 4 in retail rates net of elimination of the NCCR tariff at Georgia Power, an increase in Rate RSE at Alabama Power, base tariff increases and increased ECCR tariff revenues at Georgia Power in accordance with the 2022 ARP, and higher contributions from commercial and industrial customers with variable demand-driven pricing at Georgia Power. See Note 2 to the financial statements under "Alabama Power" and "Georgia Power" in Item 8 of the Form 10-K for additional information.

Changes in sales resulted in an increase in revenues in the second quarter and year-to-date 2025 when compared to the corresponding periods in 2024. Weather-adjusted residential KWH sales increased 2.8% in the second quarter 2025 primarily due to increased customer usage and customer growth. Weather-adjusted residential KWH sales increased 0.3% foryear-to-date 2025 primarily due to customer growth, largely offset by decreased customer usage. Weather-adjusted commercial KWH sales increased 3.5% and 2.0% in the second quarter and year-to-date 2025, respectively, primarily due to increased customer usage, primarily driven by data centers. Industrial KWH sales increased 2.8% and 1.7% in the second quarter and year-to-date 2025, respectively, primarily due to increases in the paper, primary metals, and transportation sectors, partially offset by a decrease in the pipeline sector.

Fuel and other cost recovery revenues increased $80 million and $287 million in the second quarter and year-to-date 2025, respectively, compared to the corresponding periods in 2024 primarily due to higher recoverable fuel costs. Electric rates for the traditional electric operating companies 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 PPA costs, and do not affect net income. The traditional electric operating companies each have one or more regulatory mechanisms to recover other costs such as environmental and other compliance costs, storm damage, new plants, and PPA capacity costs. See Note 2 to the financial statements in Item 8 of the Form 10-K and Note (B) to the Condensed Financial Statements herein for additional information.

Wholesale Electric Revenues

In the second quarter 2025, wholesale electric revenues were $681 million compared to $627 million for the corresponding period in 2024. For year-to-date 2025, wholesale electric revenues were $1.4 billion compared to $1.2 billion for the corresponding period in 2024. The increases in the second quarter and year-to-date 2025 were due to increases in energy revenues of $60 million and $239 million, respectively, partially offset by decreases in capacity revenues of $6 million and $12 million, respectively. The increases in energy revenues were primarily due to fuel and purchased power price increases. The decreases in capacity revenues were primarily due to net decreases in MW capacity under contract from natural gas PPAs at Southern Power, partially offset by higher non-fuel revenues from wholesale capacity contracts at Georgia Power.

Wholesale electric revenues consist of revenues from PPAs and short-term opportunity sales. Wholesale electric revenues from PPAs (other than solar and wind PPAs) have both capacity and energy components. Capacity revenues generally represent the greatest contribution to net income and are designed to provide recovery of fixed costs plus a return on investment. Energy revenues will vary depending on fuel prices, the market prices of wholesale energy compared to 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. Energy sales from solar and wind PPAs do not have a capacity charge and customers either purchase the energy output of a dedicated renewable facility through an energy charge or through a fixed price related to the energy. As a result, the ability to recover fixed and variable operations and maintenance expenses is dependent upon the level of energy generated from these facilities, which can be impacted by weather conditions, equipment performance, transmission constraints, and other factors. Wholesale electric revenues at Mississippi Power include FERC-regulated municipal and rural association sales under cost-based tariffs as well as market-based sales. Short-term opportunity sales are made at market-based rates that generally provide a margin above the Southern Company system's variable cost to produce the energy.

Other Electric Revenues

For year-to-date 2025, other electric revenues were $463 million compared to $409 million for the corresponding period in 2024. The increase was primarily due to increases of $14 million in regulated sales associated with power delivery construction and maintenance projects at Georgia Power, $14 million in regulated outdoor lighting sales at Georgia Power, $11 million in open access transmission tariff sales at Alabama Power, $11 million in regulated energy services revenues at Alabama Power, $7 million related to undistributed customer bill credits at Alabama Power, which was offset by an additional NDR accrual within other operations and maintenance expenses, and $6 million in receipts associated with liquidated damages at Southern Power, partially offset by a $15 million decrease associated with transmission revenues at Southern Power. See Note 3 to the financial statements under "Nuclear Fuel Disposal Costs" in Item 8 of the Form 10-K for additional information regarding customer bill credits at Alabama Power.

Natural Gas Revenues

In the second quarter 2025, natural gas revenues were$979 million compared to $831 million for the corresponding period in 2024. Foryear-to-date 2025, natural gas revenues were $2.8 billion compared to $2.5 billion for the corresponding period in 2024. Details of the changes in natural gas revenues were as follows:

Changes in rates resulted in an increase in revenues in the second quarter and year-to-date 2025 compared to the corresponding periods in 2024 primarily due to base rate increases at Atlanta Gas Light and Virginia Natural Gas. See Note 2 to the financial statements under "Southern Company Gas – Rate Proceedings" in Item 8 of the Form 10-K for additional information.

Revenues from gas costs and other cost recovery increased in the second quarter and year-to-date 2025 compared to the corresponding periods in 2024 primarily due to higher natural gas prices and gas volumes. Natural gas distribution rates include provisions to adjust billings for fluctuations in natural gas costs. Therefore, gas costs recovered through natural gas revenues generally equal the amount expensed in cost of natural gas and do not affect net income from the natural gas distribution utilities.

Revenues from gas marketing services increased in the second quarter and year-to-date 2025 compared to the corresponding periods in 2024 primarily due to higher commodity prices.

In the second quarter 2025, other revenues were $335 million compared to $309 million for the corresponding period in 2024. For year-to-date 2025, other revenues were $684 million compared to $537 million for the corresponding period in 2024. The increasesin thesecond quarter and year-to-date 2025 were primarily due to increases of $20 million and $81 million, respectively, at PowerSecure primarily related to distributed infrastructure projects and $13 million and $71 million, respectively, in unregulated sales at Georgia Power primarily associated with power delivery construction and maintenance, energy conservation, and renewables projects. Partially offsetting the second quarter 2025 increase was a $6 million decrease at Southern Linc related to equipment sales associated with commercial customers.

In the second quarter 2025, total fuel and purchased power expenses were $1.4 billion compared to $1.3 billion for the corresponding period in 2024. The increase was due to a $106 million net increase related to the average cost of fuel and purchased power and a $16 million net increase related to the volume of KWHs generated and purchased.

For year-to-date 2025, total fuel and purchased power expenses were $2.9 billion compared to $2.4 billion for the corresponding period in 2024. The increase was due to a $336 million net increase related to the average cost of fuel and purchased power and a $134 million net increase related to the volume of KWHs generated and purchased.

Fuel and purchased power energy transactions at the traditional electric operating companies are generally offset by fuel revenues and do not have a significant impact on net income. See Note 2 to the financial statements in Item 8 of the Form 10-K for additional information. Fuel expenses incurred under Southern Power's PPAs are generally the responsibility of the counterparties and do not significantly impact net income.

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

Details of the Southern Company system's generation and purchased power and the related costs were as follows:

(a)Excludes KWHs generated from test period energy at Plant Vogtle Unit 4 prior to its in-service date. The related fuel costs were charged to CWIP in accordance with FERC guidance. See Note 2 to the financial statements under "Georgia Power – Nuclear Construction" in Item 8 of the Form 10-K for additional information on Plant Vogtle Units 3 and 4.

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

Cost of Natural Gas

Excluding Atlanta Gas Light, which does not sell natural gas to end-use customers, the natural gas distribution utilities' rates include provisions to adjust billings for fluctuations in natural gas costs. Therefore, gas costs recovered through natural gas revenues generally equal the amount expensed in cost of natural gas and do not affect net income from the natural gas distribution utilities. See Note 2 to the financial statements under "Southern Company Gas – Natural Gas Cost Recovery" in Item 8 of the Form 10-K for additional information. Cost of natural gas at the natural gas distribution utilities represented 85% and 82% of the total cost of natural gas in the second quarter and year-to-date 2025, respectively.

In the second quarter 2025, cost of natural gas was $255 million compared to $149 million for the corresponding period in 2024. For year-to-date 2025, cost of natural gas was $929 million compared to $754 million for the corresponding period in 2024. The increases reflect higher gas cost recovery as a result of increases of 82% and 72% in natural gas prices in the second quarter and year-to-date 2025, respectively.

Cost of Other Sales

For year-to-date 2025, cost of other sales was $366 million compared to $298 million for the corresponding period in 2024. The increase was primarily due to increases of $43 million at PowerSecure primarily related to distributed infrastructure projects and $36 million at Georgia Power primarily associated with unregulated power delivery construction and maintenance projects, partially offset by an $11 million decrease at Southern Company Gas related to energy services contracts.

In the second quarter 2025, other operations and maintenance expenses were $1.7 billion compared to $1.4 billion for the corresponding period in 2024. The increase was primarily due to a $114 million gain from the sale of integrated transmission system assets at Georgia Power recorded in the second quarter 2024, an increase of $61 million in generation expenses primarily resulting from planned outages, an increase of $22 million in technology infrastructure and application production costs, a $21 million credit at Georgia Power related to the estimated loss on Plant Vogtle Units 3 and 4 recorded in the second quarter 2024, an increase of $17 million in transmission and distribution expenses at the traditional electric operating companies primarily due to line maintenance costs, an increase of $15 million in employee compensation and benefit expenses at Southern Company Gas, and a $12 million increase in certain employee compensation and benefit expenses at the traditional electric operating companies.

For year-to-date 2025, other operations and maintenance expenses were $3.3 billion compared to $2.9 billion for the corresponding period in 2024. The increase was primarily due to an increase of $134 million in generation expenses primarily resulting from planned outages, primarily at Alabama Power, and non-outage maintenance expenses, primarily at Georgia Power and Southern Power, a $114 million gain from the sale of integrated transmission system assets at Georgia Power recorded in the second quarter 2024, an increase of $34 million in certain employee compensation and benefit expenses at the traditional electric operating companies, an increase of $32 million in technology infrastructure and application production costs, an increase of $32 million in employee compensation and benefit expenses at Southern Company Gas, an increase of $21 million in transmission and distribution expenses at the traditional electric operating companies primarily due to line maintenance costs, and a $21 million credit related to the estimated loss on Plant Vogtle Units 3 and 4 recorded in the second quarter 2024 at Georgia Power.

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 2025, depreciation and amortization was $1.3 billion compared to $1.2 billion for the corresponding period in 2024. For year-to-date 2025, depreciation and amortization was $2.6 billion compared to $2.3 billion for the corresponding period in 2024. The increases in the second quarter andyear-to-date 2025 were primarily due to increases of $64 million and $141 million, respectively, associated with additional plant in service, $42 million and $69 million, respectively, in accelerated depreciation related to wind repowering projects at Southern Power, and $31 million and $62 million, respectively, in amortization of regulatory assets related to CCR AROs at Georgia Power as approved in the 2025 compliance filing under the terms of the 2022 ARP. See Note (K) to the Condensed Financial Statements under "Southern Power – Wind Repowering Projects" herein and Notes 2 and 15 to the financial statements under "Georgia Power" and "Southern Power – Development Projects," respectively, in Item 8 of the Form 10-K for additional information.

In the second quarter 2025, taxes other than income taxes were $403 million compared to $384 million for the corresponding period in 2024. For year-to-date 2025, taxes other than income taxes were $848 million compared to $780 million for the corresponding period in 2024. The increases in the second quarter andyear-to-date 2025 were primarily due to increases of $4 million and $22 million, respectively, in property taxes primarily resulting from an increase in the assessed value of property, $3 million and $14 million, respectively, in municipal franchise fees resulting from higher retail revenues at Georgia Power, $4 million and $14 million, respectively, in revenue taxes resulting from higher natural gas revenues at Nicor Gas, and $4 million and $9 million, respectively, in utility license taxes resulting from an increase in the tax base at Alabama Power. See Note 2 to the financial statements under "Georgia Power – Nuclear Construction" in Item 8 of the Form 10-K for additional information on Plant Vogtle Unit 4.

In the second quarter 2025, allowance for equity funds used during construction was $80 million compared to $51 million for the corresponding period in 2024. For year-to-date 2025, allowance for equity funds used during construction was $153 million compared to $109 million for the corresponding period in 2024. The increases were primarily associated with increases in capital expenditures subject to AFUDC at Georgia Power and Alabama

Power. Partially offsetting the year-to-date 2025 increase was the impact of Plant Vogtle Unit 4 being placed in service in April 2024 at Georgia Power. See Note 2 to the financial statements under "Georgia Power – Nuclear Construction" in Item 8 of the Form 10-K for additional information on Plant Vogtle Unit 4.

Earnings from Equity Method Investments

In the second quarter 2025, earnings from equity method investments were $10 million compared to $31 million for the corresponding period in 2024. For year-to-date 2025, earnings from equity method investments were $43 million compared to $77 million for the corresponding period in 2024. The decreases in the second quarter and year-to-date 2025 were primarily due to decreases of $13 million and $21 million, respectively, at Southern Holdings related to investment losses and decreases of $9 million and $14 million, respectively, at Southern Company Gas related to lower rates at SNG. See Note 7 to the financial statements in Item 8 of the Form 10-K and Note (E) to the Condensed Financial Statements herein under "Southern Company" and "Southern Company Gas" for additional information.

In the second quarter 2025, interest expense, net of amounts capitalized was $874 million compared to $694 million for the corresponding period in 2024. For year-to-date 2025, interest expense, net of amounts capitalized was $1.6 billion compared to $1.4 billion for the corresponding period in 2024. The increasesin thesecond quarter and year-to-date 2025 were primarily due to a $129 million loss associated with the extinguishment of debt at the parent company, as well as increases of approximately $54 million and $101 million, respectively, related to higher average outstanding borrowings. See FINANCIAL CONDITION AND LIQUIDITY – "Sources of Capital" and "Financing Activities" herein and Note (F) to the Condensed Financial Statements under "Convertible Senior Notes" herein for additional information.

In the second quarter 2025, income taxes were $289 million compared to $290 million for the corresponding period in 2024. The decrease was primarily due to lower pre-tax earnings and a $19 million increase in the flowback of excess state deferred income taxes at Georgia Power, largely offset by a $64 million increase in charges to a valuation allowance on certain state tax credit carryforwards and $33 million from the recognition of certain state tax positions from amended returns in the second quarter 2024, both at Georgia Power, and a $9 million decrease in the flowback of certain excess deferred income taxes at Alabama Power.

For year-to-date 2025, income taxes were $569 million compared to $513 million for the corresponding period in 2024. The increase was primarily due to a $71 million increase in charges to a valuation allowance on certain state tax credit carryforwards and $33 million from the recognition of certain state tax positions from amended returns in the second quarter 2024, both at Georgia Power, and a $19 million decrease in the flowback of certain excess deferred income taxes at Alabama Power, partially offset by increases of $34 million in the flowback of excess state deferred income taxes and $21 million in the generation of advanced nuclear PTCs, both at Georgia Power, as well as lower pre-tax earnings.

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

Net Loss Attributable to Noncontrolling Interests

Substantially all noncontrolling interests relate to renewable projects at Southern Power. In the second quarter 2025, net loss attributable to noncontrolling interests was $27 million compared to $15 million for the corresponding period in 2024. The increase was primarily due to $9 million in lower income allocations to Southern Power's equity partners and $4 million in higher HLBV loss allocations to Southern Power's tax equity partners.

For year-to-date 2025, net loss attributable to noncontrolling interests was $91 million compared to $73 million for the corresponding period in 2024. The increase was primarily due to $12 million in higher HLBV loss allocations to Southern Power's tax equity partners and $7 million in lower income allocations to Southern Power's equity partners.