GPJAMEDIUM SIGNALREGULATORY10-K

Southern Company has received FERC reaffirmation for its SEEM market platform participation and expanded its business descriptions to emphasize vertical integration while adding broader economic risk factors including geopolitical conflicts.

The FERC's March 2025 order affirming SEEM market platform approval (following a previous court vacation) provides regulatory clarity for Southern Company's participation in this southeastern energy market, which should support operational efficiency and market access. The enhanced language emphasizing "vertically integrated utilities" and expanded risk disclosures around geopolitical conflicts, tariffs, and economic conditions suggests management is positioning for a more complex operating environment while strengthening its market position.

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FINANCIAL ANALYSIS

No financial statement changes were provided in this language-focused filing analysis.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-20
ADDED
MPUS Mississippi Public Utilities Staff MRA Municipal and Rural Associations MW Megawatt natural gas distribution utilities Southern Company Gas' natural gas distribution utilities (Nicor Gas, Atlanta Gas Light, Virginia Natural Gas, and Chattanooga Gas) NCCR Georgia Power's Nuclear Construction Cost Recovery tariff NDR Alabama Power's Natural Disaster Reserve Nicor Gas Northern Illinois Gas Company, a wholly-owned subsidiary of Southern Company Gas NRC U.S.
economic conditions, including impacts from geopolitical conflicts, recession, inflation, changes in trade policies (including tariffs and other trade measures) of the United States and other countries, interest rate fluctuations, and financial market conditions, and the results of financing efforts; prolonged or recurring U.S.
The traditional electric operating companies Alabama Power, Georgia Power, and Mississippi Power are each vertically integrated utilities providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast.
Southern Holdings is an intermediate holding company subsidiary, which, through its subsidiaries, invests in various projects and insures various risk exposures of Southern Company and its subsidiaries.
Additionally, the traditional electric operating companies have entered into various reliability agreements with certain neighboring utilities, each of which provides for the establishment and periodic review of principles and procedures for planning and operation of generation and transmission facilities, maintenance schedules, load retention programs, emergency operations, and other matters affecting the reliability of bulk power supply.
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REMOVED
The traditional electric operating companies Alabama Power, Georgia Power, and Mississippi Power are each operating public utility companies providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast.
Southern Holdings is an intermediate holding company subsidiary, which invests in various projects.
Alabama Power, Georgia Power, and Mississippi Power each operate with one reportable business segment, since substantially all of their business is providing electric service to customers.
Southern Power also operates its business with one reportable business segment, the sale of electricity in the competitive wholesale market.
The traditional electric operating companies have joined with other utilities in the Southeast to form the SERC to augment further the reliability and adequacy of bulk power supply.
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