ALABAMA POWER CO

Georgia Power's net income in the first quarter 2026 was $628 million compared to $596 million for the corresponding period in 2025. The increase was primarily due to an increase in AFUDC equity and higher non-fuel-related wholesale revenues, partially offset by an increase in other operations and maintenance expenses.

In the first quarter 2026, retail revenues were $2.64 billion compared to $2.63 billion for the corresponding period in 2025. Details of the changes in retail revenues were as follows:

Changes in rates and pricing resulted in a decrease in revenues in the first quarter 2026 as compared to the corresponding period in 2025 primarily due to lower contributions from commercial and industrial customers with variable demand-driven pricing.

Changes in sales resulted in an increase in revenues in the first quarter 2026 as compared to the corresponding period in 2025. Weather-adjusted residential KWH sales increased 0.4% primarily due to customer growth, partially offset by decreased customer usage. Weather-adjusted commercial KWH sales increased 6.4% primarily due to additional sales from data centers. Weather-adjusted industrial KWH sales were flat primarily due to increases in the electronics and stone, clay, and glass sectors, offset by a decrease in the paper sector.

Fuel revenues and costs are allocated between retail and wholesale jurisdictions. Retail fuel cost recovery revenues increased in the first quarter 2026 as compared to the corresponding period in 2025 due to higher recoverable fuel costs. Electric rates include provisions to adjust billings for fluctuations in fuel costs, including the energy component of purchased power costs. Under these fuel cost recovery provisions, fuel revenues generally equal fuel expenses and do not affect net income. See Note (B) to the Condensed Financial Statements under "Georgia Power – Fuel Cost Recovery" herein and Note 2 to the financial statements under "Georgia Power – Fuel Cost Recovery" in Item 8 of the Form 10-K for additional information.

Wholesale Revenues

In the first quarter 2026, wholesale revenues were $227 million compared to $144 million for the corresponding period in 2025. The increase was due to a $74 million increase in energy revenues due to increases of $41 million related to the average cost per KWH sold due to higher Southern Company system fuel and purchased power prices, $25 million in non-fuel-related energy revenues from wholesale contracts, and $8 million related to the volume of

KWH sales associated with higher market demand, as well as a $9 million increase in capacity revenues from new and existing power sales agreements.

Wholesale revenues from sales to non-affiliates consist of PPAs and short-term opportunity sales. Wholesale revenues from PPAs have both capacity and energy components. Wholesale capacity revenues from PPAs are recognized in amounts billable under the contract terms and provide for recovery of fixed costs and a return on investment. Wholesale revenues from sales to non-affiliates will vary depending on fuel prices, the market prices of wholesale energy compared to the cost of Georgia 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. Short-term opportunity sales are made at market-based rates that generally provide a margin above Georgia Power's variable cost of energy.

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.

In the first quarter 2026, other revenues were $277 million compared to $263 million for the corresponding period in 2025. The increase was primarily due to increases of $13 million in unregulated sales associated with power delivery construction and maintenance projects, $13 million in open access transmission tariff sales, and $8 million in realized gains associated with price stability products for retail customers on variable demand-driven pricing tariffs, partially offset by a decrease of $18 million in unregulated sales associated with energy conservation projects.

In the first quarter 2026, total fuel and purchased power expenses were $1.0 billion compared to $0.9 billion for the corresponding period in 2025. The increase was due to a $68 million increase related to the average cost of fuel and purchased power and a $31 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 these fuel expenses are generally offset by fuel revenues through Georgia Power's fuel cost recovery mechanism. See Note 2 to the financial statements under "Georgia Power – Fuel Cost Recovery" 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, all as approved by the FERC.

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

(*)Average cost of purchased power includes fuel purchased by Georgia Power for tolling agreements where power is generated by the provider.

In the first quarter 2026, other operations and maintenance expenses were $672 million compared to $634 million for the corresponding period in 2025. The increase was primarily due to increases of $14 million in customer education and assistance expenses, $11 million in certain generation expenses primarily due to planned outages, $6 million in certain employee compensation and benefit expenses, and $5 million in technology infrastructure and application production costs, partially offset by a $10 million increase in nuclear property insurance refunds.

In the first quarter 2026, depreciation and amortization was $484 million compared to $503 million for the corresponding period in 2025. The decrease was primarily due to a decrease of $98 million resulting from the extension of the 2022 ARP, partially offset by an increase of $72 million from additional plant in service. See Note 2 to the financial statements under "Georgia Power – Rate Plans" in Item 8 of the Form 10-K for additional information.

Allowance for Equity Funds Used During Construction

In the first quarter 2026, allowance for equity funds used during construction was $97 million compared to $48 million for the corresponding period in 2025. The increase was primarily due to an increase in capital expenditures subject to AFUDC.

In the first quarter 2026, interest expense, net of amounts capitalized was $204 million compared to $187 million for the corresponding period in 2025. The increase was primarily associated with increases of approximately $25 million related to higher average outstanding borrowings and $7 million in interest associated with PPAs accounted for as finance leases, partially offset by an increase of $16 million in AFUDC debt related to increased capital expenditures. See FINANCIAL CONDITION AND LIQUIDITY – "Sources of Capital" and "Financing Activities" herein for additional information.

In the first quarter 2026, income taxes were $85 million compared to $98 million for the corresponding period in 2025. The decrease was primarily due to an increase of $16 million in amortization of federal PTCs. See Note (G) to the Condensed Financial Statements herein for additional information.