10-Q: Southern Company Reports Q3 Growth Amid Strategic Investments

Sentiment:

Quarterly Report 29 October 2025 9:40 PM

Southern Company reports increased net income and revenues for Q3 and YTD 2025, driven by rate adjustments, sales growth, and strategic acquisitions, while navigating rising expenses and a credit outlook revision.

Capital raiseSouthern Company issued $565 million aggregate principal amount of Series 2025A 6.50% Junior Subordinated Notes due March 15, 2085.Southern Company issued $1.8 billion aggregate principal amount of Series 2025B 6.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due March 15, 2055.Southern Company issued $1.65 billion aggregate principal amount of Series 2025A 3.25% Convertible Senior Notes due June 15, 2028, and used a portion of proceeds to repurchase $781.6 million of Series 2023A Convertible Senior Notes and $328.1 million of Series 2024A Convertible Senior Notes.Alabama Power issued $500 million aggregate principal amount of Series 2025A 5.10% Senior Notes due April 2, 2035, $100 million of Series 2025B Floating Rate Senior Notes due August 15, 2075, and $500 million of Series 2025C 4.30% Senior Notes due March 15, 2031.Georgia Power issued $400 million aggregate principal amount of Series 2025A Floating Rate Senior Notes due September 15, 2026, $500 million of Series 2025B 4.85% Senior Notes due March 15, 2031, $700 million of Series 2025C 5.20% Senior Notes due March 15, 2035, $250 million of additional Series 2025B 4.85% Senior Notes, $750 million of Series 2025D 4.00% Senior Notes due October 1, 2028, and $500 million of Series 2025E 5.50% Senior Notes due October 1, 2055.Mississippi Power issued $50 million aggregate principal amount of Series 2025A 5.01% Senior Notes due March 15, 2030 and $50 million of Series 2025B 6.03% Senior Notes due March 15, 2055.Southern Power issued $550 million aggregate principal amount of Series 2025A 4.25% Senior Notes due October 1, 2030 and $550 million of Series 2025B 4.90% Senior Notes due October 1, 2035.Southern Company Gas Capital issued $425 million aggregate principal amount of Series 2025A 4.05% Senior Notes due September 15, 2028 and $425 million of Series 2025B 5.10% Senior Notes due September 15, 2035.Nicor Gas (a Southern Company Gas subsidiary) agreed to issue in a private placement $25 million of 4.17% Series First Mortgage Bonds due October 1, 2028, $75 million of 4.92% Series First Mortgage Bonds due October 1, 2035, $50 million of 5.59% Series First Mortgage Bonds due December 15, 2055, and $50 million of 5.69% Series First Mortgage Bonds due December 15, 2065.Southern Company entered into forward sale contracts for a total of 43,707,160 shares of common stock, with 43,334,370 shares already sold by forward sellers, to be settled through June 2027.

Better than expectedConsolidated net income attributable to Southern Company increased by 11.5% in Q3 2025 and 1.5% YTD 2025.Total operating revenues grew by 7.5% in Q3 2025 and 10.7% YTD 2025.Retail electric sales growth was strong, driven by increased customer usage and customer growth, particularly from data centers.

Summary

Southern Company's consolidated net income attributable to shareholders increased by 11.5% to $1.71 billion ($1.55 per share) for Q3 2025 and by 1.5% to $3.93 billion ($3.56 per share) for YTD 2025.
Total operating revenues rose by 7.5% to $7.82 billion in Q3 2025 and by 10.7% to $22.57 billion for YTD 2025, primarily due to higher retail and wholesale electric revenues and natural gas revenues.
Retail electric revenues increased by $341 million in Q3 and $1.27 billion YTD, driven by base tariff increases, increased ECCR tariff revenues at Georgia Power, and Rate RSE increases at Alabama Power, alongside customer and usage growth, notably from data centers.
Wholesale electric revenues grew by $111 million in Q3 and $338 million YTD, mainly from higher energy volumes and increased fuel and purchased power prices.
Natural gas revenues increased by $52 million in Q3 and $332 million YTD, primarily due to base rate increases at Atlanta Gas Light and Virginia Natural Gas, and higher natural gas prices.
Operating expenses saw significant increases in fuel (Q3 +$199 million, YTD +$579 million), purchased power (Q3 +$10 million, YTD +$100 million), cost of natural gas (Q3 +$18 million, YTD +$194 million), and depreciation and amortization (Q3 +$212 million, YTD +$493 million).
Interest expense, net of capitalized amounts, increased by $63 million in Q3 and $293 million YTD, reflecting higher average outstanding borrowings, increased interest rates, and a $129 million loss on debt extinguishment.
Cash provided from operating activities decreased by $410 million for YTD 2025, while cash used for investing activities increased by $2.92 billion, primarily due to construction programs and acquisitions.
Alabama Power acquired the 855-MW Lindsay Hill Generating Station for $635 million, and Mississippi Power acquired FP&L's 50% interest in Plant Daniel Units 1 and 2.
Georgia Power's 2025 IRP was approved, extending the operation of Plant Scherer Unit 3 and Plant Gaston Units 1-4, and certifying approximately $16.7 billion in new generation and transmission investments through 2029.
Southern Power is undertaking wind repowering projects with projected accelerated depreciation of $100 million in 2025, $320 million in 2026, and $25 million in 2027.
Moody's revised Southern Company's ratings outlook to negative from stable, and Fitch revised Georgia Power's outlook to stable from positive.

Sentiment

Score: 6

Explanation: The company reported solid revenue and net income growth, supported by favorable regulatory decisions and strategic investments. However, increased operating and interest expenses, a negative credit outlook revision from Moody's, and ongoing legal/environmental uncertainties temper the overall positive sentiment, suggesting a cautious but stable outlook.

Positives

Consolidated net income attributable to Southern Company increased by 11.5% in Q3 2025 and 1.5% YTD 2025, demonstrating overall financial growth.
Strong revenue growth across retail electric, wholesale electric, and natural gas segments, indicating robust demand and effective pricing strategies.
Retail electric sales growth was driven by increased customer usage and customer growth, particularly from data centers at Georgia Power, highlighting a key demand driver.
Regulatory approvals for rate increases at Alabama Power, Mississippi Power, and Virginia Natural Gas support cost recovery and provide stable returns on investment.
Georgia Power's 2025 IRP approval extends the operational life of key coal-fired plants (Plant Scherer Unit 3 through 2035, Plant Gaston Units 1-4 through 2034) and certifies significant new generation and transmission investments totaling approximately $16.7 billion through 2029.
Strategic acquisitions, including Alabama Power's purchase of the 855-MW Lindsay Hill Generating Station and Mississippi Power's acquisition of a 50% interest in Plant Daniel Units 1 and 2, enhance generation capacity.
Allowance for equity funds used during construction (AFUDC) increased, reflecting substantial capital expenditures in progress that will contribute to future rate base.
Successful monetization of federal tax credits through third-party transfer agreements by Alabama Power, Georgia Power, and Southern Power, optimizing tax benefits.
Southern Company Gas' new tax accounting method for natural gas safe harbor resulted in a material net positive cash flow, improving liquidity.

Negatives

Consolidated net income growth for YTD 2025 was modest at 1.5%, despite significant revenue increases, indicating pressure from rising costs.
Operating cash flow decreased by $410 million for YTD 2025, primarily due to the timing of vendor payments, decreased retail fuel cost recovery, and storm restoration costs.
Cash used for investing activities increased significantly by $2.92 billion for YTD 2025, reflecting substantial capital expenditure requirements.
Interest expense increased by $293 million for YTD 2025, including a $129 million loss on debt extinguishment, due to higher average outstanding borrowings and increased interest rates.
Accelerated depreciation related to Southern Power's wind repowering projects significantly impacted its net income, with projected accelerated depreciation of $100 million in 2025, $320 million in 2026, and $25 million in 2027.
Moody's revised Southern Company's ratings outlook to negative from stable, signaling potential concerns about the company's financial health or risk profile.
Net loss attributable to noncontrolling interests increased by $22 million for YTD 2025, primarily due to higher hypothetical liquidation at book value (HLBV) loss allocations and lower income allocations to tax equity partners.
Southern Company Gas' net income decreased for Q3 and YTD 2025, primarily due to lower rates at Southern Natural Gas Company (SNG) and higher interest expense.

Risks

Impact of recent and future federal and state regulatory changes, including tax, environmental, and other laws and regulations, as well as changes in application of existing laws, regulations, and guidance.
The extent and timing of costs and legal requirements related to Coal Combustion Residuals (CCR), including potential significant compliance costs from the 2024 Effluent Limitations Guidelines (ELG) Rule and 2024 Legacy Rule.
Current and future litigation or regulatory investigations, proceedings, or inquiries, including a class action complaint alleging conspiracy to fix and suppress employee compensation in the nuclear power industry.
Civil action alleging False Claims Act violations related to Kemper County energy facility DOE grants against Southern Company and Mississippi Power.
Citizen suits alleging Resource Conservation and Recovery Act (RCRA) violations related to closure plans for Plant Barry and Plant Gadsden surface impoundments, which could materially impact financial statements, asset retirement obligation (ARO) estimates, and cash flows.
Ongoing lawsuits against the U.S. government by Alabama Power and Georgia Power seeking damages for spent nuclear fuel storage costs, with damages continuing to accumulate.
Impact of global and U.S. economic conditions, including inflation, interest rate fluctuations, and financial market conditions, on customer demand, access to capital, and the cost of doing business.
Changes in Southern Company's and its subsidiaries' credit ratings could impact access to capital markets and the cost of financing.
Ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects due to various challenges including labor costs, contractor performance, weather, material shortages, and regulatory action.
Uncertainty regarding the ultimate impact of EPA's reconsideration of Ozone National Ambient Air Quality Standards (NAAQS) Good Neighbor federal implementation plan (FIP), 2024 ELG Rule, 2024 Greenhouse Gas (GHG) Rules, and the 2009 endangerment finding for GHGs, which may result in significant compliance costs.
Restrictions on Investment Tax Credits (ITCs) and Production Tax Credits (PTCs) for solar and wind power projects under the One Big Beautiful Bill Act (OBBB) and potential impacts from future IRS guidance on tax provisions.
Policies to limit the use of natural gas, such as state or municipal bans or policies designed to promote electrification, could affect Southern Company Gas' business.
Volatility of natural gas prices impacting customer rates, competitive position, and earnings variability for gas marketing services.
The direct or indirect effect on the Southern Company system's business resulting from cyber intrusion or physical attack.

Future Outlook

Southern Company anticipates continued customer growth and demand for electricity, particularly from data centers and increased industrial activity. The company plans significant capital expenditures for new generating and battery energy storage facilities, and expanding electric and natural gas distribution systems. Future earnings depend on maintaining constructive regulatory environments for cost recovery, managing inflationary pressures, and adapting to evolving environmental regulations and tax legislation. The company will continue to evaluate potential business strategies including acquisitions, dispositions, and new ventures to adapt to changing market conditions.

Management Comments

We intend to dispute the allegations raised in and vigorously defend against the pending legal challenges; however, the ultimate outcome of these matters cannot be determined at this time.
The need for working capital can be adequately met by utilizing operating cash flows, as well as commercial paper, lines of credit, and short-term bank notes, as market conditions permit.
Southern Company intends to meet its future capital needs through operating cash flows, borrowings from financial institutions, and debt, hybrid, and/or equity issuances.
The Southern Company system is still assessing and will continue to monitor the impacts of the One Big Beautiful Bill Act (OBBB).
Southern Company is still assessing the issued guidance and is not expecting to be subject to Corporate Alternative Minimum Tax (CAMT) for the 2025 tax year.
The ultimate outcome of the nuclear Production Tax Credits (PTCs) matter cannot be determined at this time.

Industry Context

The utility sector is undergoing a significant energy transition, with Southern Company actively investing in renewable energy and battery storage projects. The increasing digitization of the economy and growth in data centers are driving substantial electricity demand in the company's service territory, a key industry trend. The natural gas market continues to experience price volatility, impacting customer rates and competitive positioning, which the company addresses through hedging strategies. The industry also faces evolving and stringent environmental regulations from the EPA, particularly concerning air quality, water quality, coal combustion residuals, and greenhouse gas emissions, necessitating ongoing compliance investments and strategic operational adjustments. Recent federal tax legislation (OBBB) is reshaping incentives for renewable energy, requiring companies to adapt their development strategies.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Bylaw/Indenture Modification	The Supplemental Indenture for Northern Illinois Gas Company details the creation of four new series of First Mortgage Bonds and outlines terms for modifications or alterations of the Indenture, requiring affirmative vote of not less than 66 2/3% in principal amount of outstanding bonds affected.	October 7, 2025	Standardizes terms for new debt issuances under existing indenture, ensuring clear governance for bondholder rights and obligations.

Legal Proceedings

A purported class action complaint was filed on July 11, 2025, against Southern Company and other nuclear power operators, alleging a conspiracy to fix and suppress employee compensation for nuclear power generation employees since May 1, 2003. Southern Company moved to dismiss the complaint on October 15, 2025.
A civil action unsealed in August 2023 alleges Southern Company, Southern Company Services, Inc., and Mississippi Power violated the False Claims Act by fraudulently inducing the DOE to disburse grants for the Kemper County energy facility. An employment retaliation claim is proceeding, and defendants renewed their motion for judgment on the pleadings on September 8, 2025.
Mobile Baykeeper filed a citizen suit in September 2022 against Alabama Power, alleging violations of the RCRA regarding the closure plan for the Plant Barry surface impoundment. The lawsuit was dismissed in January 2024, but the plaintiff filed an appeal in August 2024. A settlement with the EPA in September 2024 resolved two allegations but not the closure plan.
Coosa Riverkeeper filed a citizen suit on July 29, 2025, against Alabama Power, alleging RCRA violations regarding the closure of the Plant Gadsden surface impoundment. Alabama Power filed a motion to dismiss on September 29, 2025.
Alabama Power and Georgia Power filed their fifth round of lawsuits against the U.S. government on September 5, 2025, seeking damages for the costs of continuing to store spent nuclear fuel at Plants Farley, Hatch, and Vogtle Units 1 and 2 for the period from January 1, 2020, through December 31, 2024.
Mississippi Power is appealing a $29 million sales and use tax assessment from the Mississippi Department of Revenue, filed on May 29, 2025.

Related Party Transactions

Wholesale electric revenues include sales from Southern Power to the traditional electric operating companies and from Mississippi Power to Georgia Power, which are generally eliminated in consolidation for Southern Company.
Natural gas sales from Southern Company Gas to the traditional electric operating companies and Southern Power were immaterial for all periods presented.
Mississippi Power extended 50 MWs of an existing 750-MW affiliate PPA with Georgia Power for an additional year through December 31, 2029.

Stakeholder Impact

Shareholders: Increased net income and dividends, but also increased debt levels and a negative credit outlook revision from Moody's, which could affect shareholder value and cost of capital.
Customers: Approved rate increases for Alabama Power, Mississippi Power, and Virginia Natural Gas will impact customer bills. Fuel cost recovery mechanisms aim to stabilize energy costs, and nuclear PTCs are expected to benefit customers.
Employees: A class action lawsuit alleges compensation suppression for nuclear power generation employees, potentially impacting employee relations and compensation practices.
Creditors: Significant increase in long-term debt and a negative credit outlook revision for Southern Company could influence future borrowing costs and investor confidence.
Suppliers/Contractors: Ongoing large-scale construction projects and acquisitions indicate continued demand for services and materials from suppliers and contractors.

Next Steps

Georgia Power is required to file a general base rate case by July 1, 2028.
Georgia Power will file a separate regulatory proceeding for storm damage costs incurred through December 31, 2025, no sooner than February 1, 2026, and no later than July 1, 2026.
Georgia Power is scheduled to file its next fuel case no later than February 28, 2026.
Southern Power intends to exercise its option to purchase all Class A membership interests in the SP Wind tax equity partnership on December 31, 2025.
The Virginia Commission is expected to issue an order on Virginia Natural Gas' requested rate increase in Q4 2025.
Southern Company and its subsidiaries expect to renew or replace bank credit arrangements as needed prior to expiration.
Southern Company and Southern Company Gas will continue to assess and monitor the impacts of the OBBB and IRS guidance on tax provisions.
Southern Company, Alabama Power, and Georgia Power will annually evaluate qualification for the 45U Production Tax Credit.

Key Dates

Date	Description
January 1, 1954	Date of original Indenture for Northern Illinois Gas Company.
February 9, 1954	Date of Indenture of Adoption and Indenture of Release for Northern Illinois Gas Company.
April 1, 1956	Date of Supplemental Indenture for Northern Illinois Gas Company.
June 1, 1959	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1960	Date of Supplemental Indenture for Northern Illinois Gas Company.
June 1, 1963	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1963	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 1, 1964	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 1, 1965	Date of Supplemental Indenture for Northern Illinois Gas Company.
May 1, 1966	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 1, 1966	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1967	Date of Supplemental Indenture for Northern Illinois Gas Company.
June 1, 1968	Date of Supplemental Indenture for Northern Illinois Gas Company.
December 1, 1969	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 1, 1970	Date of Supplemental Indenture for Northern Illinois Gas Company.
June 1, 1971	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1972	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1973	Date of Supplemental Indenture for Northern Illinois Gas Company.
April 1, 1975	Date of Supplemental Indenture for Northern Illinois Gas Company.
April 30, 1976	Date of two Supplemental Indentures for Northern Illinois Gas Company.
July 1, 1976	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 1, 1976	Date of Supplemental Indenture for Northern Illinois Gas Company.
December 1, 1977	Date of Supplemental Indenture for Northern Illinois Gas Company.
January 15, 1979	Date of Supplemental Indenture for Northern Illinois Gas Company.
December 1, 1981	Date of Supplemental Indenture for Northern Illinois Gas Company.
March 1, 1983	Date of Supplemental Indenture for Northern Illinois Gas Company.
October 1, 1984	Date of Supplemental Indenture for Northern Illinois Gas Company.
December 1, 1986	Date of Supplemental Indenture for Northern Illinois Gas Company.
March 15, 1988	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1988	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1989	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 15, 1990	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 15, 1991	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 15, 1992	Date of Supplemental Indenture for Northern Illinois Gas Company.
February 1, 1993	Date of Supplemental Indenture for Northern Illinois Gas Company.
March 15, 1993	Date of Supplemental Indenture for Northern Illinois Gas Company.
May 1, 1993	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 1, 1993	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 15, 1994	Date of Supplemental Indenture for Northern Illinois Gas Company.
October 15, 1995	Date of Supplemental Indenture for Northern Illinois Gas Company.
May 10, 1996	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 1, 1996	Date of Supplemental Indenture for Northern Illinois Gas Company.
June 1, 1997	Date of Supplemental Indenture for Northern Illinois Gas Company.
October 15, 1997	Date of Supplemental Indenture for Northern Illinois Gas Company.
February 15, 1998	Date of Supplemental Indenture for Northern Illinois Gas Company.
June 1, 1998	Date of Supplemental Indenture for Northern Illinois Gas Company.
February 1, 1999	Date of Supplemental Indenture for Northern Illinois Gas Company.
February 1, 2001	Date of Supplemental Indenture for Northern Illinois Gas Company.
May 15, 2001	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 15, 2001	Date of Supplemental Indenture for Northern Illinois Gas Company.
December 15, 2001	Date of Supplemental Indenture for Northern Illinois Gas Company.
December 1, 2003	Date of three Supplemental Indentures for Northern Illinois Gas Company.
December 15, 2006	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 15, 2008	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 30, 2009	Date of Supplemental Indenture for Northern Illinois Gas Company.
February 1, 2011	Date of Supplemental Indenture for Northern Illinois Gas Company.
October 26, 2012	Date of Supplemental Indenture for Northern Illinois Gas Company.
June 23, 2016	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 10, 2017	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 16, 2018	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 30, 2019	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 31, 2020	Date of Supplemental Indenture for Northern Illinois Gas Company.
August 31, 2021	Date of Supplemental Indenture for Northern Illinois Gas Company.
July 31, 2023	Plant Vogtle Unit 3 placed in service; Date of Supplemental Indenture for Northern Illinois Gas Company.
September 4, 2024	Date of Supplemental Indenture for Northern Illinois Gas Company.
December 31, 2024	End of prior fiscal year for balance sheet comparisons.
January 1, 2025	Interim rates for Virginia Natural Gas became effective.
January 2025	Southern Company issued $565 million aggregate principal amount of Series 2025A 6.50% Junior Subordinated Notes.
February 1, 2025	Indenture date for Southern Company Gas Capital Corporation.
February 2025	Southern Company issued $1.8 billion aggregate principal amount of Series 2025B 6.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes.
February 25, 2025	Interlocutory appeal denied in Kemper County False Claims Act case.
March 2025	Alabama Power issued $500 million aggregate principal amount of Series 2025A 5.10% Senior Notes.
March 2025	Georgia Power issued $400 million aggregate principal amount of Series 2025A Floating Rate Senior Notes, $500 million of Series 2025B 4.85% Senior Notes, and $700 million of Series 2025C 5.20% Senior Notes.
March 2025	Mississippi Power issued $50 million aggregate principal amount of Series 2025A 5.01% Senior Notes and $50 million of Series 2025B 6.03% Senior Notes.
March 12, 2025	EPA announced intent to reconsider 2015 Ozone NAAQS Good Neighbor FIP, 2024 ELG Rule standards, and regulatory actions related to CCR Rule.
March 15, 2025	Maturity date for Southern Company's Series 2025B 6.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055.
March 17, 2025	Mississippi Power notified Mississippi PSC of intent to use reliability reserve balance.
March 21, 2025	EPA announced intent to ask for public comment on reconsideration of 2009 endangerment finding for GHGs.
March 25, 2025	U.S. Court of Appeals for the Fifth Circuit vacated and remanded EPA's disapproval of Mississippi SIP.
March 26, 2025	Illinois Supreme Court denied Nicor Gas' petition for leave to appeal $14 million disallowance.
March 31, 2025	Mississippi Department of Revenue completed audit of sales and use taxes paid by Mississippi Power.
April 1, 2025	Mississippi PSC approved Mississippi Power's annual ECO Plan filing for 2025, resulting in a $6 million annual increase in revenues.
April 1, 2025	Mississippi PSC approved an $8 million increase in total annual depreciation for Mississippi Power, effective January 1, 2025.
April 3, 2025	FERC approved a settlement agreement between Mississippi Power and Cooperative Energy.
April 14, 2025	U.S. Court of Appeals for the D.C. Circuit granted EPA's motion to hold FIP litigation in abeyance.
April 15, 2025	State of Georgia enacted tax legislation reducing the corporate income tax rate from 5.39% to 5.19%.
April 25, 2025	U.S. Court of Appeals for the D.C. Circuit granted EPA's motion requesting continuing abeyance of 2024 GHG Rules litigation.
May 2025	Southern Company issued $1.65 billion aggregate principal amount of Series 2025A 3.25% Convertible Senior Notes.
May 14, 2025	Georgia Power submitted an Interim Fuel Rider (IFR) notification and plan.
May 29, 2025	Mississippi Power filed an administrative appeal with the Mississippi DOR regarding tax assessment.
June 2, 2025	U.S. Treasury and the IRS issued guidance on the application of the Corporate Alternative Minimum Tax (CAMT).
June 5, 2025	Alabama PSC approved Alabama Power's order authorizing Jurisdictional Separation Study (JSS) changes.
June 6, 2025	FERC approved Alabama Power's acquisition of Tenaska Alabama Partners, L.P.
June 15, 2025	Mississippi Power, as a joint owner of Alabama Power's Plant Greene County Units 1 and 2, recorded a net decrease of approximately $13 million to its AROs.
June 17, 2025	Mississippi PSC approved Mississippi Power's annual retail Performance Evaluation Plan (PEP) filing for 2025, resulting in an annual increase in revenues of approximately 4.0% or $41 million.
June 17, 2025	EPA published a proposed rule that, if finalized, would repeal all or a portion of the 2024 GHG Rules.
June 19, 2025	Florida PSC issued a final order approving the transfer of FP&L's 50% ownership interest in Plant Daniel Units 1 and 2 to Mississippi Power.
June 19, 2025	Alabama Power notified the Alabama PSC of its intent to use a portion of its $131 million reliability reserve balance during 2025.
June 2025	Alabama Power recorded a net decrease of approximately $257 million to its AROs related to the CCR Rule.
June 2025	Georgia Power requested certification from the Georgia PSC for a Georgia Power-owned battery energy storage facility with a capacity of 200 MWs.
July 1, 2025	Georgia PSC approved a settlement agreement to extend the 2022 ARP for an additional three-year term through December 31, 2028.
July 4, 2025	The One Big Beautiful Bill Act (OBBB) was signed into law.
July 8, 2025	Mississippi Power extended 50 MWs of an existing 750-MW affiliate PPA with Georgia Power for an additional year through December 31, 2029.
July 11, 2025	A purported class action complaint was filed against Southern Company and other nuclear consulting companies and power operators.
July 15, 2025	Georgia PSC approved Georgia Power's 2025 IRP, as modified by a stipulation.
July 15, 2025	Court denied plaintiff's motion to dismiss defendants' counterclaims and defendants' motion for judgment on the pleadings in the Kemper County False Claims Act case.
July 22, 2025	EPA published a direct final rule and companion proposed rule extending certain deadlines for compliance for owners and operators of CCR management units.
July 29, 2025	Coosa Riverkeeper filed a citizen suit against Alabama Power regarding the closure of the Plant Gadsden surface impoundment.
July 29, 2025	EPA released a proposed rule to repeal the 2009 endangerment finding with regard to motor vehicles.
July 30, 2025	Mississippi Power completed the acquisition of FP&L's 50% interest in Plant Daniel Units 1 and 2.
July 30, 2025	Georgia Power requested certification from the Georgia PSC for various resources totaling 7,999 MWs.
August 5, 2025	Mississippi PSC approved Mississippi Power's annual ad valorem tax adjustment filing for 2025.
August 6, 2025	Plaintiff asserted a counterclaim against the defendants in the Kemper County False Claims Act case.
August 12, 2025	Virginia Natural Gas, the Virginia Commission staff, and certain intervenors entered into a stipulation related to Virginia Natural Gas' August 2024 general base rate case filing.
August 13, 2025	Alabama PSC approved Alabama Power's petition for a certificate of convenience and necessity authorizing the acquisition of Tenaska Alabama Partners, L.P.
August 14, 2025	U.S. Court of Appeals for the D.C. Circuit granted EPA's motion to continue abeyance of 2024 Legacy Rule litigation until December 15, 2025.
August 15, 2025	U.S. Treasury issued a notice making changes to the start-of-construction guidance for wind and solar projects.
August 22, 2025	Fitch revised the ratings outlook of Georgia Power to stable from positive.
August 25, 2025	Pedro P. Cherry granted Power of Attorney to Melissa K. Caen and David P. Poroch.
August 28, 2025	U.S. Court of Appeals for the Eighth Circuit granted EPA's request to continue to hold the 2024 ELG Rule litigation in abeyance.
September 1, 2028	Par Call Date for Northern Illinois Gas Company's First Mortgage Bonds 4.17% Series due October 1, 2028.
September 3, 2025	Form 8-K filed for Southern Company Gas Capital Corporation's Senior Notes.
September 4, 2025	EPA withdrew the direct final rule extending certain CCR compliance deadlines.
September 4, 2025	Georgia PSC approved Georgia Power's June 2025 request to certify a 200 MW battery energy storage facility.
September 5, 2025	Alabama Power and Georgia Power filed their fifth round of lawsuits against the U.S. government for spent nuclear fuel storage costs.
September 8, 2025	Defendants renewed their motion for judgment on the pleadings in the Kemper County False Claims Act case.
September 15, 2025	Georgia Power filed its most recent Interim Fuel Rider (IFR) plan and notification.
September 15, 2025	Southern Company Gas Capital issued $425 million aggregate principal amount of Series 2025A 4.05% Senior Notes due September 15, 2028 and $425 million of Series 2025B 5.10% Senior Notes due September 15, 2035.
September 15, 2025	Tyler M. Cook granted Power of Attorney to Melissa K. Caen.
September 16, 2025	Supplemental Indenture made as of this date for Northern Illinois Gas Company.
September 17, 2025	Alabama Power submitted an Automatic Transfer Notice of Planned Participation (NOPP) authorizing compliance with the 2020 ELG rule for Plant Gaston Units 1-4.
September 17, 2025	Georgia Power filed an updated load forecast with the Georgia PSC.
September 19, 2025	Southern Power issued $550 million aggregate principal amount of Series 2025A 4.25% Senior Notes due October 1, 2030 and $550 million of Series 2025B 4.90% Senior Notes due October 1, 2035.
September 22, 2025	Recording date for Supplemental Indenture in Cook, Hancock, LaSalle, Piatt counties.
September 23, 2025	Moody's revised the ratings outlook of Southern Company to negative from stable.
September 29, 2025	Alabama Power filed a motion to dismiss the Coosa Riverkeeper citizen suit.
September 30, 2025	End of the reporting period for the Quarterly Report on Form 10-Q.
September 30, 2025	Alabama Power completed its acquisition of Tenaska Alabama Partners, L.P.
September 30, 2025	Nicor Gas repaid at maturity $50 million aggregate principal amount of its 1.42% Series First Mortgage Bonds.
October 1, 2025	Due date for Northern Illinois Gas Company's First Mortgage Bonds 4.17% Series due October 1, 2028 and 4.92% Series due October 1, 2035.
October 1, 2025	Maturity date for Southern Power's Series 2025A 4.25% Senior Notes and Series 2025B 4.90% Senior Notes.
October 2, 2025	EPA published a proposed rule and companion direct final rule to extend certain 2024 ELG Rule compliance deadlines.
October 7, 2025	Effective date of Supplemental Indenture for Northern Illinois Gas Company.
October 7, 2025	Alabama PSC issued an order authorizing Alabama Power to establish a regulatory liability for nuclear PTCs.
October 15, 2025	Southern Company moved to dismiss the class action complaint.
October 29, 2025	Date of signatures for the Quarterly Report on Form 10-Q.
December 1, 2025	Southern Power redeemed all $500 million aggregate principal amount of its Series 2015C 4.15% Senior Notes.
December 3, 2025	Dated date for Northern Illinois Gas Company's First Mortgage Bonds 5.59% Series due December 15, 2055 and 5.69% Series due December 15, 2065.
December 15, 2025	Maturity date for Northern Illinois Gas Company's First Mortgage Bonds 5.59% Series due December 15, 2055 and 5.69% Series due December 15, 2065.
December 15, 2025	EPA's abeyance for 2024 Legacy Rule litigation ends.
December 2025	Virginia Commission expected to issue an order on Virginia Natural Gas rate increase.
December 2025	Georgia PSC expected to render a final decision on Georgia Power's July 2025 certification request.
December 2025	EPA anticipates issuing a final rule extending certain 2024 ELG Rule compliance deadlines and a final reconsideration rule for 2024 GHG Rules.
December 31, 2025	Southern Power's intent to exercise option to purchase all Class A membership interests in SP Wind tax equity partnership.
February 1, 2026	Earliest date Georgia Power may file a separate regulatory proceeding for storm damage costs.
April 1, 2026	First semi-annual interest payment date for Northern Illinois Gas Company's 2028 and 2035 Series bonds.
June 15, 2026	First semi-annual interest payment date for Northern Illinois Gas Company's 2055 and 2065 Series bonds.
June 30, 2026	Maturity date for Georgia Power's extended short-term floating rate bank loans.
July 2026	Construction start deadline for solar/wind projects to claim tax credits under OBBB.
Third quarter 2026	Projected Commercial Operation Date (COD) for Millers Branch Phase I solar facility and Kay Wind repowering project.
Fourth quarter 2026	Projected COD for McGrau Ford Battery energy storage facility, Grant Plains Wind repowering project, Grant Wind repowering project, Millers Branch Phase III solar facility, and various Georgia Power battery energy storage facilities.
December 31, 2026	Settlement date for some Southern Company common stock forward sale contracts.
2027	Estimated completion for Gorgas battery facility; Projected COD for Georgia Power-owned battery energy storage facilities (200 MW and 260 MW); Delivery commencement for some non-affiliate PPAs (Georgia Power).
Second quarter 2027	Projected COD for Millers Branch Phase II solar facility and Wake Wind repowering project.
June 30, 2027	Settlement date for some Southern Company common stock forward sale contracts.
December 31, 2027	Operational deadline for solar/wind projects to claim tax credits under OBBB.
2028	Projected COD for some Georgia Power-owned combined cycle units and battery energy storage facilities; Projected COD for Plant McIntosh Units 10 and 11 incremental capacity; Earliest availability for some Plant Vogtle Units 1 and 2 incremental capacity.
July 1, 2028	Latest date Georgia Power is required to file a general base rate case.
December 31, 2028	End of ARP Extension Period for Georgia Power; Planned retirement date for Plant Barry Unit 5; Expected compliance date for Plant Scherer Unit 3 with 2020 ELG rule via voluntary incentive program.
2029	Projected COD for some Georgia Power-owned combined cycle units and battery energy storage facilities.
July 1, 2029	Par Call Date for Northern Illinois Gas Company's First Mortgage Bonds 4.92% Series due October 1, 2035.
December 31, 2029	Extended PPA period for Mississippi Power with Georgia Power.
2030	Projected COD for some Georgia Power-owned combined cycle units and battery energy storage facilities; Delivery commencement for a 20-year non-affiliate PPA (Georgia Power).
October 1, 2030	Maturity date for Southern Power's Series 2025A 4.25% Senior Notes.
January 1, 2031	Maturity date for Southern Company Gas' 1-day SOFR + 0.49% interest rate swap.
March 15, 2031	Maturity date for Alabama Power's Series 2025C 4.30% Senior Notes and Georgia Power's Series 2025B 4.85% Senior Notes.
2031	Expected full utilization of Southern Company's federal PTC and ITC carryforwards.
2032	Nuclear PTCs available through this tax year.
2033	Projected COD for Plant McIntosh Units 1-8 incremental capacity; Battery energy storage projects retain full tax credit through this year under OBBB.
December 31, 2034	Extended operation of Plant Gaston Units 1-4.
December 31, 2035	Extended operation of Plant Scherer Unit 3; End of shared service agreement for Mississippi Power and Cooperative Energy.
October 1, 2035	Maturity date for Southern Power's Series 2025B 4.90% Senior Notes.
September 15, 2035	Maturity date for Southern Company Gas Capital Corporation's Series 2025B 5.10% Senior Notes.
December 15, 2055	Maturity date for Northern Illinois Gas Company's First Mortgage Bonds 5.59% Series due December 15, 2055.
October 1, 2055	Maturity date for Georgia Power's Series 2025E 5.50% Senior Notes.
December 15, 2065	Maturity date for Northern Illinois Gas Company's First Mortgage Bonds 5.69% Series due December 15, 2065.
August 15, 2075	Maturity date for Alabama Power's Series 2025B Floating Rate Senior Notes.
March 15, 2085	Maturity date for Southern Company's Series 2025A 6.50% Junior Subordinated Notes.

Recommendation

hold

Southern Company demonstrates solid revenue and net income growth, supported by favorable regulatory outcomes and strategic investments in generation and infrastructure. The company's proactive approach to environmental compliance and renewable energy development is positive for long-term sustainability. However, the significant increase in debt, rising operating and interest expenses, and the negative credit outlook revision from Moody's introduce notable financial headwinds. While the long-term strategy appears sound, these factors suggest a 'Hold' recommendation, advising investors to monitor the company's ability to manage its debt, control costs, and navigate ongoing legal and regulatory challenges before considering further investment.

Keywords

Utility, Electric Power, Natural Gas Distribution, Renewable Energy, SEC Filing, 10-Q, Financial Results, Capital Expenditures, Regulatory Approvals, Debt Issuance, Environmental Compliance, Risk Management, Southern Company, Alabama Power, Georgia Power, Mississippi Power, Southern Power, Southern Company Gas

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