ALABAMA POWER CO

Alabama Power's net income in the third quarter 2025 was $588 million compared to $493 million for the corresponding period in 2024. The increase was primarily due to higher retail electric revenues resulting from changes in rates and pricing and a decrease in non-fuel operations and maintenance expenses, partially offset by weather impacts on retail revenues.

For year-to-date 2025, net income was $1.3 billion compared to $1.2 billion for the corresponding period in 2024. The increase was primarily due to higher retail electric revenues resulting from changes in rates and pricing, as well as an increase in other revenues, partially offset by increases in non-fuel operations and maintenance expenses and depreciation and amortization.

In the third quarter 2025, retail revenues were $2.0 billion compared to $1.9 billion for the corresponding period in 2024. For year-to-date 2025, retail revenues were $5.5 billion compared to $5.1 billion for the corresponding period in 2024. Details of the changes in retail revenues were as follows:

Changes in rates and pricing resulted in increases in revenues in thethird quarter and year-to-date 2025 when compared to the corresponding periods in 2024 primarily due to an increase in Rate RSE. See Note 2 to the financial statements under "Alabama Power" in Item 8 of the Form 10-K for additional information.

Changes in sales resulted in increases in revenues in the third quarter and year-to-date 2025 when compared to the corresponding periods in 2024. Weather-adjusted residential KWH sales increased 1.6% in the third quarter 2025 primarily due to customer growth and increased customer usage. Weather-adjusted residential KWH sales increased 0.7% for year-to-date 2025 primarily due to customer growth. Weather-adjusted commercial KWH sales increased 0.5% in the third quarter 2025 primarily due to customer growth and increased customer usage. Weather-adjusted commercial KWH sales increased 0.4% for year-to-date 2025 primarily due to customer growth. Industrial KWH sales increased 2.2% and 1.5% in the third quarter and year-to-date 2025, respectively, primarily due to increases in the primary metals sector.

Fuel and other cost recovery revenues increased in the third quarter and year-to-date 2025 when compared to the corresponding periods in 2024 primarily as a result of higher recoverable fuel costs.

Electric rates include provisions to recognize the recovery of fuel costs, purchased power costs, PPAs certificated by the Alabama PSC, and costs associated with the NDR. Under these provisions, fuel and other cost recovery revenues generally equal fuel and other cost recovery expenses and do not affect net income. See Note 2 to the financial statements under "Alabama Power" in Item 8 of the Form 10-K for additional information.

Wholesale Revenues– Non-Affiliates

In the third quarter 2025, wholesale revenues from sales to non-affiliates were $137 million compared to $89 million for the corresponding period in 2024. For year-to-date 2025, wholesale revenues from sales to non-affiliates were $326 million compared to $259 million for the corresponding period in 2024. The increases for the third quarter and year-to-date 2025 were primarily due to increases of 36.3% and 8.8%, respectively, in the volume of KWH sales due to higher demand from power sales agreements and 12.0% and 15.6%, respectively, in the price of energy due to an increase in natural gas prices.

Wholesale Revenues– Affiliates

In the third quarter 2025, wholesale revenues from sales to affiliates were $28 million compared to $34 million for the corresponding period in 2024. The decrease was primarily due to a 27.8% decrease in the volume of KWH sales as a result of the availability of other Southern Company system generation, partially offset by an increase of 12.2% in the price of energy due to an increase in natural gas prices.

For year-to-date 2025, wholesale revenues from sales to affiliates were $132 million compared to $103 million for the corresponding period in 2024. The increase was primarily due to an increase of 44.0% in the price of energy due to an increase in natural gas prices, partially offset by a 10.4% decrease in the volume of KWH sales as a result of the availability of other Southern Company system generation.

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 and energy purchases are generally offset by energy revenues through Alabama Power's energy cost recovery clause.

For year-to-date 2025, other revenues were $353 million compared to $324 million for the corresponding period in 2024. The increase was primarily due to a $12 million increase in transmission revenue primarily associated with open access transmission tariff sales, an $11 million increase in regulated energy services revenues, $7 million related to undistributed customer bill credits associated with nuclear fuel disposal costs litigation, which was offset by an additional NDR accrual within other operations and maintenance expenses, and a $4 million increase in cogeneration revenues primarily related to higher fuel prices. These increases were partially offset by a $14 million decrease in pole attachment revenues. See Note 3 to the financial statements under "Nuclear Fuel Disposal Costs" in Item 8 of the Form 10-K for additional information.

In the third quarter 2025, total fuel and purchased power expenses were $569 million compared to $481 million for the corresponding period in 2024. The increase was primarily due to a $51 million increase related to the average cost of fuel and purchased power and a $37 million net increase related to the volume of KWHs generated and purchased.

For year-to-date 2025, total fuel and purchased power expenses were $1.5 billion compared to $1.3 billion for the corresponding period in 2024. The increase was due to a$107 million increase related to the average cost of fuel and purchased power and a $98 million net increase 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 Alabama Power's energy cost recovery clause. See Note 2 to the financial statements under "Alabama Power – Rate ECR" in Item 8 of the Form 10-K for additional information.

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.

Energy purchases from affiliates will vary depending on demand for energy 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, as approved by the FERC.

Details of Alabama Power's generation and purchased power and the related costs were as follows:

(*)Average cost of purchased power includes fuel, energy, and transmission purchased by Alabama Power for tolling agreements where power is generated by the provider.

In the third quarter 2025, other operations and maintenance expenses were $434 million compared to $493 million for the corresponding period in 2024. The decrease was primarily due to a $36 million impairment loss in the third quarter 2024 associated with Alabama Power discontinuing the development of a multi-use commercial facility and a $30 million decrease inreliability-related transmission, distribution, and generation expenses.

For year-to-date 2025, other operations and maintenance expenses were $1.37 billion compared to $1.34 billion for the corresponding period in 2024. The increase was primarily due to increases of $47 million in generation expenses primarily associated with planned outages, $21 million in certain employee compensation and benefit expenses, $10 million in certain technology infrastructure and application production costs, $7 million associated with an additional NDR accrual, which is offset within other revenues, and $7 million in vegetation management expenses, partially offset by a $36 million impairment loss in the third quarter 2024 associated with Alabama Power discontinuing the development of a multi-use commercial facilityand a $30 million decrease inreliability-related transmission, distribution, and generation expenses.

See Note (B) to the Condensed Financial Statements under "Alabama Power –Reliability Reserve Accounting Order" herein and Notes 1 and 3 to the financial statements under "Impairment of Long-Lived Assets" and "Nuclear Fuel Disposal Costs," respectively, in Item 8 of the Form 10-K for additional information.

In the third quarter 2025, depreciation and amortization was $380 million compared to $366 million for the corresponding period in 2024. For year-to-date 2025, depreciation and amortization was $1.12 billion compared to

$1.09 billion for the corresponding period in 2024. The increases were primarily due to additional plant in service related to transmission and distribution systems.

For year-to-date 2025, taxes other than income taxes were $365 million compared to $347 million for the corresponding period in 2024. The increase was primarily due to an increase in utility license taxes resulting from an increase in the tax base.

For year-to-date 2025, allowance for equity funds used during construction was $54 million compared to $40 million for the corresponding period in 2024. The increase was primarily due to an increase in capital expenditures subject to AFUDC.

Other Income (Expense), Net

For year-to-date 2025, other income (expense), net was $128 million compared to $116 million for the corresponding period in 2024. The increase was primarily due to the receipt of liquidated damages associated with the termination of two solar projects and an increase in interest income.

In the third quarter 2025, income taxes were $175 million compared to $135 million for the corresponding period in 2024. For year-to-date 2025, income taxes were $401 million compared to $322 million for the corresponding period in 2024. The increases for the third quarter and year-to-date 2025 were primarily due to higher pre-tax earnings and decreases of $10 million and $29 million, respectively, in the flowback of certain excess deferred income taxes. See Note (G) to the Condensed Financial Statements herein for additional information.