ALABAMA POWER CO

Consolidated net income attributable to Southern Company was $1.2 billion ($1.03 per share) in the second quarter 2026 compared to $0.9 billion ($0.80 per share) for the corresponding period in 2025. For year-to-date 2026, consolidated net income attributable to Southern Company was $2.5 billion ($2.24 per share) compared to $2.2 billion ($2.01 per share) for the corresponding period in 2025. The increases were primarily due to increases within retail electric revenues associated with sales growth, higher natural gas revenues associated with base rate increases, decreases in income taxes, and increases in AFUDC equity and earnings from equity method investments, partially offset by increases in depreciation and amortization. Also contributing to the increase in the second quarter 2026 was a decrease in interest expense.

Retail Electric Revenues

In the second quarter 2026, retail electric revenues were $4.75 billion compared to $4.76 billion for the corresponding period in 2025. For year-to-date 2026, retail electric revenues were $9.39 billion compared to $9.36 billion for the corresponding period in 2025. Details of the changes in retail electric revenues were as follows:

Changes in rates and pricing resulted in decreases in revenues in thesecond quarter and year-to-date 2026 when compared to the corresponding periods in 2025 primarily due to lower contributions from commercial and industrial customers with variable demand-driven pricing at Georgia Power, partially offset by an increase in Rate CNP Compliance revenues at Alabama Power and higher revenues associated with a tolling arrangement accounted for as a sales-type lease at Mississippi Power. Also partially offsetting the decrease in revenues for year-to-date 2026 were increases in PEP rates at Mississippi Power. See Note 2 to the financial statements under "Alabama Power – Rate CNP Compliance" and "Mississippi Power – Performance Evaluation Plan" in Item 8 of the Form 10-K for additional information.

Changes in sales resulted in increases in revenues in the second quarter and year-to-date 2026 when compared to the corresponding periods in 2025. Weather-adjusted residential KWH sales decreased 0.7% in the second quarter 2026 primarily due to decreased customer usage, partially offset by customer growth. Weather-adjusted residential KWH sales increased 0.1% foryear-to-date 2026 primarily due to customer growth, partially offset by decreased customer usage. Weather-adjusted commercial KWH sales increased 7.4% and 6.0% in the second quarter and year-to-date 2026, respectively, primarily due to increased customer usage, largely driven by data centers at Georgia Power. Weather-adjusted industrial KWH sales were flat in the second quarter 2026 primarily due to increases in the primary metals and miscellaneous manufacturing sectors, offset by decreases in the paper, textiles, and chemicals sectors. Weather-adjusted industrial KWH sales increased 0.7% foryear-to-date 2026 primarily due to increases in the primary metals, miscellaneous manufacturing, and stone, clay, and glass sectors.

Fuel and other cost recovery revenues decreased $70 million and $21 million in the second quarter and year-to-date 2026, respectively, compared to the corresponding periods in 2025 primarily due to lower 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 2026, wholesale electric revenues were $699 million compared to $681 million for the corresponding period in 2025. The increase was primarily due to an increase in energy revenues associated with a $48 million increase related to the volume of KWHs sold resulting from higher demand, partially offset by a decrease of $27 million related to the average cost per KWH sold primarily resulting from lower fuel and purchased power prices.

For year-to-date 2026, wholesale electric revenues were $1.66 billion compared to $1.43 billion for the corresponding period in 2025. The increase was primarily due to an increase in energy revenues associated with an increase of $123 million related to the volume of KWHs sold resulting from higher demand and $120 million related to the average cost per KWH sold primarily resulting from higher 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 second quarter 2026, other electric revenues were $242 million compared to $220 million for the corresponding period in 2025. For year-to-date 2026, other electric revenues were $507 million compared to $463 million for the corresponding period in 2025. The increases in the second quarter and year-to-date 2026 were primarily due to increases of $20 million and $37 million, respectively, in open access transmission tariff sales at the traditional electric operating companies.

Natural Gas Revenues

In the second quarter 2026, natural gas revenues were$966 million compared to $979 million for the corresponding period in 2025. For year-to-date 2026, natural gas revenues were $3.16 billion compared to $2.82 billion for the corresponding period in 2025. Details of the changes in natural gas revenues were as follows:

Changes in rates resulted in increases in revenues in the second quarter and year-to-date 2026 as compared to the corresponding periods in 2025 primarily due to base rate increases at Nicor Gas and Atlanta Gas Light. 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 associated with gas costs and other cost recovery decreased in the second quarter 2026 as compared to the corresponding period in 2025 primarily due to lower cost of natural gas driven by lower natural gas prices, as well as decreases in other expenses passed through to customers. Revenues associated with gas costs and other cost recovery increased for year-to-date 2026 as compared to the corresponding period in 2025 primarily due to higher cost of natural gas driven by higher natural gas prices in the first quarter 2026, as well as increases in other expenses passed through to customers. See "Cost of Natural Gas" herein for additional information.

Revenues from gas marketing services decreased in the second quarter 2026 as compared to the corresponding period in 2025 primarily due to lower commodity prices. Revenues from gas marketing services increased for year-to-date 2026 as compared to the corresponding period in 2025 primarily due to higher commodity prices in the first quarter 2026, partially offset by weather impacts.

In the second quarter 2026, other revenues were $325 million compared to $335 million for the corresponding period in 2025. The decrease was primarily due to decreases of $12 million in unregulated sales associated with energy conservation projects at Georgia Power and $8 million in sales of unregulated products and services at Alabama Power, partially offset by an increase of $10 million in unregulated sales associated with power delivery construction and maintenance projects at Georgia Power.

For year-to-date 2026, other revenues were $661 million compared to $684 million for the corresponding period in 2025. The decrease was primarily due to decreases of $30 million in unregulated sales associated with energy conservation projects at Georgia Power, $15 million in sales of unregulated products and services at Alabama Power, and $8 million in customer charges related to contributions in aid of construction included in rates in 2025 at Mississippi Power, partially offset by an increase of $24 million in unregulated sales associated with power delivery construction and maintenance projects at Georgia Power.

In the second quarter 2026, total fuel and purchased power expenses were $1.34 billion compared to $1.38 billion for the corresponding period in 2025. The decrease was due to a $103 million net decrease related to the average cost of fuel and purchased power, partially offset by a $69 million increase related to the volume of KWHs generated and purchased.

For year-to-date 2026, total fuel and purchased power expenses were $3.1 billion compared to $2.9 billion for the corresponding period in 2025. The increase was due to a $101 million net increase related to the volume of KWHs generated and purchased and a $57 million increase related to the average cost of fuel and purchased power.

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:

(*)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 87.0% and 84.7% of the total cost of natural gas in the second quarter and year-to-date 2026, respectively.

In the second quarter 2026, cost of natural gas was $177 million compared to $255 million for the corresponding period in 2025. Thedecrease reflects lower gas cost recovery as a result of a 15.8% decrease in natural gas prices.

For year-to-date 2026, cost of natural gas was $1.1 billion compared to $0.9 billion for the corresponding period in 2025. The increase reflects higher gas cost recovery, primarily in the first quarter 2026, as a result of an 11.9% increase in natural gas prices.

Cost of Other Sales

In the second quarter 2026, cost of other sales was $176 million compared to $167 million for the corresponding period in 2025. The increase was primarily due to increases of $12 million in expenses associated with unregulated power delivery construction and maintenance projects at Georgia Power and $5 million related to energy service contracts at Southern Company Gas, partially offset by a decrease of $10 million in expenses related to sales of unregulated products and services at Alabama Power.

For year-to-date 2026, cost of other sales was $357 million compared to $366 million for the corresponding period in 2025. The decrease was primarily related to a decrease of $25 million in expenses at PowerSecure primarily related to distributed infrastructure and energy efficiency projects and $15 million in expenses related to sales of unregulated products and services at Alabama Power, partially offset by increases of $23 million in expenses associated with unregulated power delivery construction and maintenance projects at Georgia Power and $4 million related to energy service contracts at Southern Company Gas.

In the second quarter 2026, other operations and maintenance expenses were $1.71 billion compared to $1.69 billion for the corresponding period in 2025. The increase was primarily due to a $22 million increase in certain employee compensation and benefit expenses and increases of $13 million in storm damage recovery and $13 million in transmission and distribution operational costs, both at Georgia Power, partially offset by decreases of $19 million associated with utilization of the reliability reserve to offset reliability-related transmission, distribution, and generation expenses at Alabama Power and $16 million in technology infrastructure and application production costs.

For year-to-date 2026, other operations and maintenance expenses were $3.4 billion compared to $3.3 billion for the corresponding period in 2025. The increase was primarily due to a $47 million increase in certain employee compensation and benefit expenses, a $37 million increase in expenses at Southern Company Gas related to certain deferred expenses, charges related to the disallowance of certain capital investments at Nicor Gas, gas mains, and expenses passed through to customers, a $23 million increase in transmission and distribution operational costs at the traditional electric operating companies, $22 million in weather-related damage at a Southern Power solar project, and increases of $22 million in customer education and assistance expenses at Georgia Power and $18 million in NDR accruals and storm damage recovery at Alabama Power and Georgia Power. Partially offsetting the increase were decreases of $40 million associated with utilization of the reliability reserve to offset reliability-related transmission, distribution, and generation expenses at Alabama Power and $30 million in planned outages at the traditional electric operating companies, $23 million of deferred costs related to the Jurisdictional Separation Study Order at Alabama Power, $21 million associated with higher nuclear property insurance refunds at Alabama Power and Georgia Power, and a decrease of $20 million in legal expenses at Southern Company Gas.

See Note (B) to the Condensed Financial Statements under "Mississippi Power – Reliability Reserve Accounting Order" and "Alabama Power – Reliability Reserve Accounting Order" herein for additional information. Also see Notes 2 and 15 to the financial statements under "Alabama Power – Jurisdictional Separation Study Order" and "Alabama Power," respectively, in Item 8 of the Form 10-K for additional information.

In the second quarter 2026, depreciation and amortization was $1.4 billion compared to $1.3 billion for the corresponding period in 2025. For year-to-date 2026, depreciation and amortization was $2.85 billion compared to $2.61 billion for the corresponding period in 2025. The increasesin thesecond quarter and year-to-date 2026 were primarily due to increases of $98 million and $224 million, respectively, in accelerated depreciation related to wind repowering projects at Southern Power and $102 million and $207 million, respectively, associated with additional plant in service, partially offset by a decrease of $99 million and $197 million, respectively, resulting from the extension of Georgia Power's 2022 ARP.

See Note 2 to the financial statements under "Georgia Power – Rate Plans" for additional information related to Georgia Power's 2022 ARP. Also see Note (K) to the Condensed Financial Statements under "Southern Power – Wind Repowering Projects" herein and Notes 5 and 15 to the financial statements under "Depreciation and Amortization – Southern Power"and "Southern Power – Wind Repowering Projects," respectively, in Item 8 of the Form 10-K for additional information regarding Southern Power's wind repowering projects.

Taxes Other Than Income Taxes

In the second quarter 2026, taxes other than income taxes were $367 million compared to $403 million for the corresponding period in 2025. For year-to-date 2026, taxes other than income taxes were $831 million compared to $848 million for the corresponding period in 2025. The decreases inthe second quarter and year-to-date 2026 were primarily due to decreases of $37 million and $30 million, respectively, in property taxes primarily resulting from the actualization of prior-year tax assessments at Georgia Power. Partially offsetting the decrease for year-to-date 2026 were increases of $7 million in municipal franchise fees and utility license taxes at the traditional electric operating companies and $5 million in revenue taxes as a result of higher natural gas revenues at Nicor Gas.

Allowance for Equity Funds Used During Construction

In the second quarter 2026, allowance for equity funds used during construction was $128 million compared to $80 million for the corresponding period in 2025. For year-to-date 2026, allowance for equity funds used during construction was $248 million compared to $153 million for the corresponding period in 2025. The increases were primarily associated with an increase in capital expenditures subject to AFUDC at Georgia Power.

Earnings from Equity Method Investments

In the second quarter 2026, earnings from equity method investments were $86 million compared to $10 million for the corresponding period in 2025. For year-to-date 2026, earnings from equity method investments were $136 million compared to $43 million for the corresponding period in 2025. The increases in thesecond quarter and year-to-date 2026 were primarily due to increases of $58 million and $68 million, respectively, at Southern Holdings related to gains and losses associated with investments in energy-related venture capital funds and increases of $9 million and $16 million, respectively, at Southern Company Gas related to SNG. 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 second quarter 2026, interest expense, net of amounts capitalized was $796 million compared to $874 million for the corresponding period in 2025. For year-to-date 2026, interest expense, net of amounts capitalized was $1.57 billion compared to $1.59 billion for the corresponding period in 2025. The decreasesin thesecond quarter and year-to-date 2026 were primarily due to decreases of $129 million and $118 million, respectively, in losses associated with the extinguishment of debt at the parent company and increases of $17 million and $39 million, respectively, in capitalized interest and AFUDC debt primarily associated with increased capital expenditures, partially offset by increases of $65 million and $121 million, respectively, related to higher average outstanding borrowings, $11 million and $14 million, respectively, related to higher interest rates, and $7 million and $14 million, respectively, in interest associated with PPAs accounted for as finance leases at Georgia Power.

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

In the second quarter 2026, other income (expense), net was $181 million compared to $162 million for the corresponding period in 2025. For year-to-date 2026, other income (expense), net was $336 million compared to

$310 million for the corresponding period in 2025. The increases in the second quarter and year-to-date 2026 were primarily due to an increase in customer charges related to contributions in aid of construction at Alabama Power.

In the second quarter 2026, income taxes were $187 million compared to $289 million for the corresponding period in 2025. For year-to-date 2026, income taxes were $414 million compared to $569 million for the corresponding period in 2025. The decreases were primarily due to decreases of $93 million and $87 million, respectively, in charges to a valuation allowance on certain state tax credit carryforwards at Georgia Power and increases of $35 million and $71 million, respectively, related to higher wind PTCs resulting from the purchase of the noncontrolling membership interest in the SP Wind tax equity partnership at Southern Power, partially offset by higher pre-tax earningsand decreases of$17 million and $29 million, respectively, in the flowback of excess state deferred income taxes at Georgia Power. See Note (G) to the Condensed Financial Statements herein and Note 15 to the financial statements under "Southern Power – Purchase of Renewable Facility Interests" in Item 8 of the Form 10-K for additional information.

Net Income (Loss) Attributable to Noncontrolling Interests

Substantially all noncontrolling interests relate to renewable projects at Southern Power. In the second quarter 2026, net income attributable to noncontrolling interests was $14 million compared to a $27 million net loss for the corresponding period in 2025. For year-to-date 2026, net loss attributable to noncontrolling interests was $4 million compared to $91 million for the corresponding period in 2025. The changes in the second quarter and year-to-date 2026 were primarily due to $38 million and $79 million, respectively, in lower HLBV loss allocations to Southern Power's tax equity partners, largely resulting from Southern Power's purchase of the noncontrolling membership interests in the SP Wind tax equity partnership. See Note 15 to the financial statements under "Southern Power – Purchase of Renewable Facility Interests" in Item 8 of the Form 10-K for additional information.