ALABAMA POWER CO

Consolidated net income attributable to Southern Company was $1.7 billion ($1.55 per share) in the third quarter 2025 compared to $1.5 billion ($1.40 per share) for the corresponding period in 2024. The increase was primarily due to an increase in retail electric revenues associated with rates and pricing and sales growth, as well as a decrease in taxes other than income taxes, partially offset by an increase in depreciation and amortization.

For year-to-date 2025, consolidated net income attributable to Southern Company was $3.93 billion ($3.56 per share) compared to $3.87 billion ($3.53 per share) for the corresponding period in 2024. The increase was primarily due to an increase in retail electric revenues associated with rates and pricing and sales growth and increases in other revenues, allowance for equity funds used during construction, and natural gas revenues associated with base rate increases, partially offset by increases in depreciation and amortization, non-fuel operations and maintenance expenses, and interest expense.

Retail Electric Revenues

In the third quarter 2025, retail electric revenues were $5.7 billion compared to $5.4 billion for the corresponding period in 2024. For year-to-date 2025, retail electric revenues were $15.1 billion compared to $13.8 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 thethird quarter and year-to-date 2025 when compared to the corresponding periods in 2024 primarily due to base tariff increases and increased ECCR tariff revenues at Georgia Power in accordance with the 2022 ARP andan increase in Rate RSE at Alabama Power. Also contributing to the year-to-date 2025 increase were the inclusion of Plant Vogtle Unit 4 in retail rates net of elimination of the NCCR tariff and higher contributions from commercial and industrial customers with variable demand-driven pricing, both 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 third quarter and year-to-date 2025 when compared to the corresponding periods in 2024. Weather-adjusted residential KWH sales increased 2.7% in the third quarter 2025 primarily due to increased customer usage and customer growth. Weather-adjusted residential KWH sales increased

1.2% foryear-to-date 2025 primarily due to customer growth. Weather-adjusted commercial KWH sales increased 3.5% and 2.6% in the third quarter and year-to-date 2025, respectively, primarily due to increased customer usage, largely driven by data centers at Georgia Power. Industrial KWH sales increased 1.5% in the third quarter 2025 primarily due to increases in the primary metals and electronics sectors. Industrial KWH sales increased 1.6% for year-to-date 2025 primarily due to increases in the primary metals, paper, and electronics sectors, partially offset by decreases in the pipeline and textiles sectors.

Fuel and other cost recovery revenues increased $94 million and $381 million in the third 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 third quarter 2025, wholesale electric revenues were $832 million compared to $721 million for the corresponding period in 2024. For year-to-date 2025, wholesale electric revenues were $2.3 billion compared to $1.9 billion for the corresponding period in 2024. The increases in the third quarter and year-to-date 2025 were primarily due to increases in energy revenues of $118 million and $357 million, respectively, largely driven by an increase in the volume of KWHs sold resulting from higher demand, as well as increases in fuel and purchased power prices.

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

In the third quarter 2025, other electric revenues were $262 million compared to $222 million for the corresponding period in 2024. The increase was primarily due to increases of $29 million in solar application fees and $24 million in realized gains associated with price stability products for retail customers on variable demand-driven pricing tariffs, both at Georgia Power, partially offset by a decrease of $15 million in pole attachment revenues at Alabama Power and Georgia Power.

For year-to-date 2025, other electric revenues were $724 million compared to $631 million for the corresponding period in 2024. The increase was primarily due to increases of $30 million in solar application fees at Georgia Power, $24 million in regulated energy services revenues at Alabama Power and Georgia Power, $20 million in regulated outdoor lighting sales at Georgia Power, and $16 million in realized gains associated with price stability products for retail customers on variable demand-driven pricing tariffs at Georgia Power, partially offset by a decrease of $25 million in pole attachment revenues at Alabama Power and Georgia Power.

Natural Gas Revenues

In the third quarter 2025, natural gas revenues were$734 million compared to $682 million for the corresponding period in 2024. Foryear-to-date 2025, natural gas revenues were $3.6 billion compared to $3.2 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 third 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 third 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 third quarter and year-to-date 2025 compared to the corresponding periods in 2024 primarily due to higher commodity prices.

In the third quarter 2025, other revenues were $288 million compared to $283 million for the corresponding period in 2024. The increase included an increase of $12 million in unregulated sales primarily associated with power delivery construction and maintenance projects at Georgia Power, offset by a decrease of $12 million in revenues at PowerSecure primarily related to distributed infrastructure projects.

For year-to-date 2025, other revenues were $974 million compared to $820 million for the corresponding period in 2024. The increase was primarily due to increases of $88 million in unregulated sales primarily associated with power delivery construction and maintenance, resiliency, and renewables projects at Georgia Power and $69 million in revenues at PowerSecure primarily related to distributed infrastructure projects.

In the third quarter 2025, total fuel and purchased power expenses were $1.6 billion compared to $1.4 billion for the corresponding period in 2024. The increase was due to a $122 million increase related to the average cost of fuel and purchased power and a $27 million increase related to the volume of KWHs generated and purchased. Also contributing to the increase was $60 million related to credits recorded at Georgia Power in the third quarter 2024 resulting from litigation related to nuclear fuel disposal costs.

For year-to-date 2025, total fuel and purchased power expenses were $4.5 billion compared to $3.8 billion for the corresponding period in 2024. The increase was due to a $464 million net increase related to the average cost of fuel and purchased power and a $155 million increase related to the volume of KWHs generated and purchased. Also contributing to the increase was $60 million related to credits recorded at Georgia Power in the third quarter 2024 resulting from litigation related to nuclear fuel disposal costs.

See Note 3 to the financial statements under "Nuclear Fuel Disposal Costs" in Item 8 of the Form 10-K for additional information.

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 being placed in service in April 2024. The related fuel costs were charged to CWIP in accordance with FERC guidance.

(b)Excludes $60 million of credits recorded to nuclear fuel expense in the third quarter 2024 resulting from litigation related to nuclear fuel disposal costs. See Note 3 to the financial statements under "Nuclear Fuel Disposal Costs" in Item 8 of the Form 10-K for additional information.

(c)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 81.9% and 81.5% of the total cost of natural gas in the third quarter and year-to-date 2025, respectively.

In the third quarter 2025, cost of natural gas was $116 million compared to $98 million for the corresponding period in 2024. For year-to-date 2025, cost of natural gas was $1.0 billion compared to $0.9 billion for the corresponding period in 2024. The increases reflect higher gas cost recovery as a result of increases of 42.4% and 61.6% in natural gas prices in the third quarter and year-to-date 2025, respectively.

Cost of Other Sales

In the third quarter 2025, cost of other sales was $156 million compared to $166 million for the corresponding period in 2024. The decrease was primarily due to a decrease of $23 million in expenses at PowerSecure primarily related to distributed infrastructure projects, partially offset by an increase of $15 million in expenses associated with unregulated power delivery construction and maintenance projects at Georgia Power.

For year-to-date 2025, cost of other sales was $522 million compared to $464 million for the corresponding period in 2024. The increase was primarily related to expenses associated with unregulated power delivery construction and maintenance projects at Georgia Power.

In the third quarter 2025, other operations and maintenance expenses were $1.6 billion compared to $1.7 billion for the corresponding period in 2024. The decrease was primarily due to a $36 million impairment loss in 2024 associated with Alabama Power discontinuing the development of a multi-use commercial facility, a $33 million credit to income related to the estimated probable loss on Plant Vogtle Units 3 and 4 at Georgia Power, a $30 million decrease in reliability-related transmission, distribution, and generation expenses at Alabama Power, and a $17 million decrease in transmission and distribution expenses primarily due to billing adjustments with integrated transmission system owners at Georgia Power, partially offset by increases of $18 million in certain employee compensation and benefit expenses at the traditional electric operating companies, $17 million in certain technology infrastructure and application production costs, $14 million in expenses at PowerSecure primarily related to distributed infrastructure projects, $11 million in employee compensation and benefit expenses at Southern Company Gas, $11 million related to the injuries and damages reserves, and $10 million in generation expenses primarily due to non-outage maintenance expenses at Georgia Power.

For year-to-date 2025, other operations and maintenance expenses were $4.9 billion compared to $4.5 billion for the corresponding period in 2024. The increase was primarily due to a $144 million increase in generation expenses primarily due to non-outage maintenance expenses largely resulting from Plant Vogtle Unit 4 being placed in service in April 2024 at Georgia Power, as well as planned outages at Alabama 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, and increases of $58 million in certain employee compensation and benefit expenses at the traditional electric operating companies, $48 million in certain technology infrastructure and application production costs, $35 million in expenses passed through to customers primarily related to bad debt and energy efficiency programs at Southern Company Gas, $34 million in compensation and benefit expenses at Southern Company Gas, and $34 million in expenses at PowerSecure primarily related to distributed infrastructure projects, partially offset by decreases of $36 million related to an impairment loss in 2024 associated with Alabama Power discontinuing the development of a multi-use commercial facility and $30 million in reliability-related transmission, distribution, and generation expenses at Alabama Power.

See Note (B) to the Condensed Financial Statements under "Alabama Power –Reliability Reserve Accounting Order" and "Georgia Power – Nuclear Construction" herein and Notes 1 and 2 to the financial statements under "Impairment of Long-Lived Assets" and "Georgia Power," respectively, in Item 8 of the Form 10-K for additional information.

In the third quarter 2025, depreciation and amortization was $1.4 billion compared to $1.2 billion for the corresponding period in 2024. For year-to-date 2025, depreciation and amortization was $4.0 billion compared to $3.5 billion for the corresponding period in 2024. The increases in the third quarter andyear-to-date 2025 were primarily due to increases of $66 million and $207 million, respectively, associated with additional plant in service, $112 million and $181 million, respectively, in accelerated depreciation related to wind repowering projects at Southern Power, and $31 million and $93 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 third quarter 2025, taxes other than income taxes were $288 million compared to $375 million for the corresponding period in 2024. For year-to-date 2025, taxes other than income taxes were $1.14 billion compared to $1.16 billion for the corresponding period in 2024. The decreases in the third quarter andyear-to-date 2025 were primarily due to decreases of $103 million and $80 million, respectively, in property taxes primarily resulting from the actualization of prior-year tax assessments at Georgia Power, partially offset by increases of $4 million and $19 million, respectively, in municipal franchise fees resulting from higher retail revenues at Georgia Power and $4 million and $13 million, respectively, in utility license taxes resulting from an increase in the tax base at Alabama Power. Also partially offsetting theyear-to-date 2025 decrease were increases of $14 million in revenue taxes resulting from higher natural gas revenues at Nicor Gas and $8 million in payroll taxes.

In the third quarter 2025, allowance for equity funds used during construction was $90 million compared to $58 million for the corresponding period in 2024. For year-to-date 2025, allowance for equity funds used during construction was $243 million compared to $167 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

For year-to-date 2025, earnings from equity method investments were $76 million compared to $107 million for the corresponding period in 2024. The decrease was primarily due to a decrease of $17 million at Southern Company Gas related to lower rates at SNG and a decrease of $16 million at Southern Holdings related to investment losses. See Note 7 to the financial statements in Item 8 of the Form 10-K and Note (E) to the Condensed Financial Statements under "Southern Company" and "Southern Company Gas" herein for additional information.

In the third quarter 2025, interest expense, net of amounts capitalized was $755 million compared to $692 million for the corresponding period in 2024. The increase was primarily due to increases of approximately $67 million related to higher average outstanding borrowings and $9 million related to higher interest rates, partially offset by an increase of $12 million in capitalized interest and AFUDC debt associated with increased capital expenditures.

For year-to-date 2025, interest expense, net of amounts capitalized was $2.34 billion compared to $2.05 billion for the corresponding period in 2024. The increase was primarily due to an increase of approximately $169 million related to higher average outstanding borrowings, a $129 million loss associated with the extinguishment of debt at the parent company, and an increase of $17 million related to higher interest rates, partially offset by an increase of $21 million in capitalized interest and AFUDC debt associated with increased capital expenditures. See Note (F) to the Condensed Financial Statements under "Convertible Senior Notes" herein for additional information.

See FINANCIAL CONDITION AND LIQUIDITY – "Sources of Capital" and "Financing Activities" herein for additional information.

In the third quarter 2025, income taxes were $404 million compared to $377 million for the corresponding period in 2024. The increase was primarily due to higher pre-tax earnings, partially offset by a $15 million increase in the flowback of certain excess deferred income taxes at the traditional electric operating companies.

For year-to-date 2025, income taxes were $973 million compared to $890 million for the corresponding period in 2024. The increase was primarily due to a $78 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 higher pre-tax earnings, partially offset by increases of $26 million in the flowback of certain excess deferred income taxes at the traditional electric operating companies, $19 million in the generation of advanced nuclear PTCs at Georgia Power, and $10 million in the flowback of excess state deferred income taxes at Southern Company Gas.

Net Loss Attributable to Noncontrolling Interests

Substantially all noncontrolling interests relate to renewable projects at Southern Power. For year-to-date 2025, net loss attributable to noncontrolling interests was $95 million compared to $73 million for the corresponding period in 2024. The increase was primarily due to $14 million in higher HLBV loss allocations to Southern Power's tax equity partners and $11 million in lower income allocations to Southern Power's equity partners.