ALABAMA POWER CO

Mississippi Power's net income in the third quarter 2025 was $84 million compared to $75 million for the corresponding period in 2024. For year-to-date 2025, net income was $198 million compared to $186 million for the corresponding period in 2024. The increases were primarily due to higher retail revenues primarily resulting from changes in rates and pricing, partially offset by an increase in depreciation and amortization.

In the third quarter 2025, retail revenues were $302 million compared to $276 million for the corresponding period in 2024. Foryear-to-date 2025, retail revenues were$824 million compared to$739 million 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 the third quarter and year-to-date 2025 when compared to the corresponding periods in 2024 primarily due to new PEP rates that became effective for the first billing cycle of April 2025. See Note (B) to the Condensed Financial Statements "Mississippi Power – Performance Evaluation Plan" 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 5.5% and 2.1% in the third quarter and year-to-date 2025, respectively, primarily due to increased customer usage. Weather-adjusted commercial KWH sales decreased 1.2% and 0.6% in the third quarter and year-to-date 2025, respectively, primarily due to decreased customer usage. Industrial KWH sales decreased 2.5% in the third quarter 2025 primarily due to decreases in the chemicals, petroleum, and oil and gas extraction sectors. Industrial KWH sales increased 1.8% for year-to-date 2025 primarily due to increases in the petroleum and chemicals sectors.

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. 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 2025, wholesale revenues from sales to non-affiliates were $72 million compared to $66 million for the corresponding period in 2024. The increase was primarily due to a $3 million increase in opportunity sales and a $3 million increase associated with changes in power supply agreements.

For year-to-date 2025, wholesale revenues from sales to non-affiliates were $205 million compared to $179 million for the corresponding period in 2024. The increase was primarily due to a $15 million increase associated with MRA customers largely due to higher recoverable fuel costs and an $8 million increase associated with changes in power supply agreements.

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 2025, wholesale revenues from sales to affiliates were $94 million compared to $57 million for the corresponding period in 2024. The increase was primarily due to increases of $24 million related to the volume of KWH sales and $12 million related to the price of energy driven by natural gas prices.

For year-to-date 2025, wholesale revenues from sales to affiliates were $230 million compared to $166 million for the corresponding period in 2024. The increase was primarily due to increases of $37 million related to the price of energy driven by natural gas prices and $25 million related to the volume of KWH sales.

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.

For year-to-date 2025, other revenues were $42 million compared to $34 million for the corresponding period in 2024. The increase was primarily due to customer charges related to contributions in aid of construction included in rates.

In the third quarter 2025, total fuel and purchased power expenses were $179 million compared to $134 million for the corresponding period in 2024. The increase was primarily due to a $24 million net increase related to the average cost of fuel and purchased power and a $21 million increase related to the volume of KWHs generated and purchased.

Foryear-to-date 2025, total fuel and purchased power expenses were $488 million compared to$363 million for the corresponding period in 2024. Theincrease was due to an $89 million net increase related to the average cost of fuel and purchased power and a $36 million 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 Mississippi Power's fuel cost recovery clause.

Energy purchases 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. These purchases are made in accordance with the IIC or other contractual agreements, as approved by the FERC.

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

For year-to-date 2025, other operations and maintenance expenses were flat compared to the corresponding period in 2024. Year-to-date 2025 included $10.9 million of reliability-related expenses that were offset by utilization of the reliability reserve. See Note (B) to the Condensed Financial Statements "Mississippi Power – Reliability Reserve Accounting Order" for additional information.

In the third quarter 2025, depreciation and amortization was $53 million compared to $48 million for the corresponding period in 2024. For year-to-date 2025, depreciation and amortization was $157 million compared to $141 million for the corresponding period in 2024. The increases were primarily due to an increase in depreciation rates and additional plant in service. See Note (A) to the Condensed Financial Statements under "Depreciation and Amortization" herein for additional information.

In the third quarter 2025, taxes other than income taxes were $37 million compared to $33 million for the corresponding period in 2024. For year-to-date 2025, taxes other than income taxes were $106 million compared to $95 million for the corresponding period in 2024. The increases were primarily due to increases in property taxes primarily resulting from an increase in the assessed value of property.

Other Income (Expense), Net

For year-to-date 2025, other income (expense), net was $26 million compared to$33 million for the corresponding period in 2024. The decrease was primarily due to lower customer charges related to contributions in aid of construction.

For year-to-date 2025, income taxes were $58 million compared to $47 million for the corresponding period in 2024. The increase was primarily due to higher pre-tax earnings and a decrease of $5 million primarily due to the flowback of certain excess deferred income taxes that ended in 2024.