SOUTHERN CO (SO) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that SOUTHERN CO surfaced in its latest filing.

• Alabama PSC approved a plan to keep retail rates stable through 2027.2027
• Georgia PSC approved a settlement agreement to extend the 2022 ARP through December 31, 2028, with no adjustments to base rates except for storm damage costs incurred through December 31, 2025.December 31, 2028
• Hurricane Helene in September 2024 caused significant damage to Georgia Power's transmission and distribution facilities; incremental restoration costs totaled approximately $880 million.September 2024
• Georgia Power agreed to file its next base rate case to ensure incremental revenue from large load customers has downward pressure of at least $556 million per year for 2029, 2030, and 2031.
• Georgia Power's loan guarantee agreement with the DOE contains covenants, events of default, and mandatory prepayment events relating to the ongoing operation of Plant Vogtle Units 3 and 4.
• Nicor Gas' regulator, the Illinois Commission, has conducted 'future of natural gas' proceedings since 2024 to explore decarbonization of the gas distribution system in Illinois, with a final report expected by the end of 2026.2026
• The IRA imposes a 15% CAMT on adjusted financial statement income.
• The OBBB materially changed the requirements for most of the federal renewable energy incentives.
• At December 31, 2025, goodwill was $5.2 billion for Southern Company and $5.0 billion for Southern Company Gas.December 31, 2025