AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Exclusive gas distribution franchises directly exclude same-fuel distributors, and installed equipment creates switching friction. This is strong structural evidence within that business, with incomplete coverage of the wider group.
durability · 2/4 · Franchise protection and equipment-life dependence support persistence, but franchise terms are absent and appliance replacement creates a recurring opportunity for substitution. Exceptional or guaranteed durability is not established.
customer dependency · 3/4 · Equipment-life energy dependence supports strong gas customer friction. Residential customer growth and increased commercial electricity consumption provide indirect operating evidence of continued demand, without proving customer-level retention.
erosion resilience · 2/4 · Current franchise protection and commercial demand growth offset potential substitution risks. The realized capital disallowance demonstrates that economic protection is imperfect. Technology risks describe possible erosion, not observed market-share loss.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Outcomes are mixed: aggregate retail electric rates and pricing reduced first-half 2026 revenue by $31 million, while Mississippi Power PEP rates and gas base rates increased. The electric decline reflected variable demand-driven pricing, so it does not by itself demonstrate competitive price cutting.
retention · 3/4 · Equipment-life energy use provides strong disclosed switching friction. Residential customer growth and commercial electricity demand support repeat demand indirectly; no retention percentage or response to specific rate increases is established.
margin resilience · 2/4 · Fuel recovery mechanisms and gas earnings growth support resilience, but results vary: Mississippi Power's first-half revenue increased while operating income declined, Southern Power reported a net loss, and gas operations incurred a capital disallowance. These outcomes support a mixed assessment rather than uniformly protected profitability.
contractual freedom · 1/4 · Disclosed pricing depends materially on rate mechanisms and recovery determinations. Actual disallowance demonstrates limits to recovery, while affiliate energy sales operate under approved agreements and generally at marginal cost. Complete retail and external wholesale pricing terms are absent.
Predictability65
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 14.42
- Positive FCF years (%)
- 20.00
- FCF margin volatility (pp)
- 4.27
Financial strength3
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 11.36
- currentRatioGrade
- 0.00
- Net debt / operating income (x)
- 9.74
- Interest coverage (x)
- 2.25
- Current ratio (x)
- 0.65
Capital allocation52
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 6.78
- 3-year average dilution (%)
- 0.86
- 3-year average SBC / revenue (%)
- 0.50
- cashConversionGrade
- 0.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual funding evidence is mixed. Gas and Alabama Power generated substantial operating cash, while Mississippi Power required financing and parent capital alongside investment. First-half debt issuance exceeded redemptions, and approximately 31.1 million common shares were issued, with $2.5 billion from forward settlements. The capital disallowance is an adverse allocation outcome; consolidated investment returns remain unestablished.
incentive alignment · 3/4 · Actual programs connect pay to earnings, operations, relative shareholder returns and ROE, and actual annual payouts are disclosed. Cash-flow certification and partial equity vesting establish implementation rather than a proposal. The one-year cash threshold was well below reported cash generation, and comprehensive ownership requirements are missing, limiting the strength of alignment.
execution · 2/4 · Reported customer additions, outage and leak-response metrics, commercial sales growth and gas earnings growth demonstrate operating achievements. The industry-leading characterization lacks supplied peer verification. Capital disallowance and uneven subsidiary earnings temper the assessment; execution is partly inferred from operating results rather than complete project-versus-budget records.
governance · 3/4 · An actual independent third-party board evaluation, adopted compensation recoupment policy and advance audit-service approvals support substantive governance processes. These disclosures establish implementation, but not exceptional board effectiveness; detailed independence, ownership and enforcement outcomes are absent.
Evidence
Natural Gas Southern Company Gas' natural gas distribution utilities do not compete with other distributors of natural gas in their exclusive franchise territories but face competition from other energy products.
Business — Natural Gas competition; exclusive franchise territories · Filed 19/02/2026
Competition for heating as well as general household and small commercial energy needs generally occurs at the initial installation phase when the customer or builder makes decisions as to which types of equipment to install.
Business — Natural Gas competition at equipment installation · Filed 19/02/2026
Customers generally use the chosen energy source for the life of the equipment.
Business — Customer energy-source use over equipment life · Filed 19/02/2026
Customer demand for natural gas could be affected by numerous factors, including: •changes in the availability or price of natural gas and other forms of energy; •general economic conditions; •energy conservation, including state-supported energy efficiency programs; •legislation and regulations, including certain bans on the use of natural gas in new or existing construction and electrification initiatives; •the cost and capability to convert from natural gas to alternative energy products; and •technological or regulatory changes resulting in displacement or replacement of natural gas appliances.
Business — Natural gas demand and substitution risks · Filed 19/02/2026
If new technologies become cost competitive and achieve sufficient scale, the market share of the Subsidiary Registrants could be eroded, and the value of their respective electric generating facilities or natural gas distribution facilities could be reduced.
Risk Factors — Potential technology substitution and asset-value erosion · Filed 19/02/2026
•Operating expenses increased $539 million primarily due to a $346 million increase in cost of natural gas as a result of higher gas prices and higher volumes sold compared to 2024, a $63 million charge related to the disallowance of certain capital investments at Nicor Gas, a $57 million increase in depreciation primarily due to additional plant in service related to continued investments at the natural gas distribution utilities, a $43 million increase related to expenses passed through to customers, a $25 million increase related to employee compensation and benefit expenses, and a $17 million increase in bad debt expense, partially offset by a decrease of $26 million related to certain deferred expenses.
MD&A — Southern Company Gas operating expenses and Nicor Gas capital disallowance · Filed 19/02/2026
Southern Company Gas' gas marketing services segment also is affected by competition from other energy marketers providing similar services in Southern Company Gas' unregulated service territories, most notably in Illinois and Georgia.
Risk Factors — Competition in unregulated gas marketing · Filed 19/02/2026
Year-to-Date 2025 (change in millions) (% change) (change in millions) (% change) Rates and pricing $ (10) (0.2) % $ (31) (0.3) % Sales growth 77 1.6 158 1.7 Weather (10) (0.2) (79) (0.9) Fuel and other cost recovery (70) (1.5) (21) (0.2) Retail electric revenues $ (13) (0.3) % $ 27 0.3 % Changes in rates and pricing resulted in decreases in revenues in the second 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.
MD&A — Retail electric revenue bridge and realized rates and pricing · Filed 30/07/2026
Also partially offsetting the decrease in revenues for year-to-date 2026 were increases in PEP rates at Mississippi Power.
MD&A — Mississippi Power PEP rate increases · Filed 30/07/2026
Southern Company Gas Significant balance sheet changes for the six months ended June 30, 2026 included: •an increase of $518 million in total property, plant, and equipment primarily due to the construction of transmission and distribution assets; •a decrease of $416 million in total accounts receivable primarily due to lower customer billings resulting from lower natural gas volumes and prices, partially offset by base rate increases; •an increase of $314 million in common stockholder's equity primarily due to net income, partially offset by dividends paid to Southern Company; •an increase of $199 million in cash and cash equivalents, as reflected in the statements of cash flows and discussed further under "Analysis of Cash Flows – Southern Company Gas" herein; •a decrease of $198 million in natural gas for sale primarily due to seasonality; and •a decrease of $190 million in notes payable due to a reduction in commercial paper borrowings.
MD&A — Southern Company Gas billings, base rates and balance-sheet changes · Filed 30/07/2026
Weather-adjusted residential KWH sales increased 0.1% for year-to-date 2026 primarily due to customer growth, partially offset by decreased customer usage.
MD&A — Year-to-date weather-adjusted residential electricity sales · Filed 30/07/2026
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.
MD&A — Weather-adjusted commercial electricity sales and data-center demand · Filed 30/07/2026
25 Table of Contents Index to Financial Statements MISSISSIPPI POWER COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 (in millions) (in millions) Operating Revenues: Retail revenues $ 283 $ 274 $ 556 $ 522 Wholesale revenues, non-affiliates 74 62 162 133 Wholesale revenues, affiliates 35 55 131 136 Other revenues 11 9 26 30 Total operating revenues 403 400 875 821 Operating Expenses: Fuel and purchased power 122 143 328 309 Other operations and maintenance 107 82 194 166 Depreciation and amortization 58 52 113 105 Taxes other than income taxes 36 36 72 69 Total operating expenses 323 313 707 649 Operating Income 80 87 168 172 Other Income and (Expense): Interest expense, net of amounts capitalized (21) (20) (41) (40) Other income (expense), net 9 9 19 16 Total other income and (expense) (12) (11) (22) (24) Earnings Before Income Taxes 68 76 146 148 Income taxes 16 17 34 34 Net Income and Comprehensive Income $ 52 $ 59 $ 112 $ 114 The accompanying notes as they relate to Mississippi Power are an integral part of these condensed financial statements.
Mississippi Power — Six-month income statement · Filed 30/07/2026
36 Table of Contents Index to Financial Statements SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended June 30, 2026 2025 (in millions) Operating Activities: Net income $ 573 $ 524 Adjustments to reconcile net income to net cash provided from operating activities — Depreciation and amortization, total 366 338 Deferred income taxes 89 67 Other, net 40 26 Changes in certain current assets and liabilities — -Receivables 427 209 -Natural gas for sale, net of temporary LIFO liquidation 197 233 -Other current assets (12) 37 -Accounts payable (152) (105) -Accrued compensation (39) (44) -Natural gas cost over recovery 34 (87) -Other current liabilities (15) 12 Net cash provided from operating activities 1,508 1,210 Investing Activities: Property additions (799) (704) Contributions in aid of construction 11 27 Cost of removal, net of salvage (39) (42) Change in construction payables, net 26 15 Capital contributions to unconsolidated subsidiaries (93) (31) Other investing activities 5 — Net cash used for investing activities (889) (735) Financing Activities: Increase (decrease) in notes payable, net (190) 16 Proceeds — Other long-term debt 500 — Redemptions — Senior notes (350) — First mortgage bonds (100) — Return of capital to parent company — (23) Capital contributions from parent company 22 22 Payment of common stock dividends (281) (297) Other financing activities (17) (12) Net cash used for financing activities (416) (294) Net Change in Cash, Cash Equivalents, and Restricted Cash 203 181 Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 15 44 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 218 $ 225 Supplemental Cash Flow Information: Cash paid during the period for — Interest (net of $7 and $9 capitalized for 2026 and 2025, respectively) $ 201 $ 185 Income taxes, net 55 66 Noncash transactions — Accrued property additions at end of period 138 101 Right-of-use assets obtained under operating leases 1 60 Return of capital to parent company — 33 The accompanying notes as they relate to Southern Company Gas are an integral part of these condensed consolidated financial statements.
Southern Company Gas — Six-month cash flows, earnings and property additions · Filed 30/07/2026
31 Table of Contents Index to Financial Statements SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended June 30, 2026 2025 (in millions) Operating Activities: Net income (loss) $ (26) $ 47 Adjustments to reconcile net income (loss) to net cash provided from operating activities — Depreciation and amortization, total 568 340 Deferred income taxes (75) (2) Utilization of federal tax credit carryforward 130 — Amortization of ITCs (29) (29) Loss on damaged equipment 22 — Other, net (9) (18) Changes in certain current assets and liabilities — -Receivables (47) (69) -Income taxes receivable (39) (2) -Other current assets (24) 2 -Accounts payable (19) (20) -Accrued compensation (11) (11) -Other current liabilities 8 (6) Net cash provided from operating activities 449 232 Investing Activities: Property additions (399) (392) Payments pursuant to LTSAs (28) (26) Other investing activities 10 — Net cash used for investing activities (417) (418) Financing Activities: Increase (decrease) in notes payable, net (135) 201 Proceeds — Senior notes 600 — Redemptions — Senior notes (564) — Capital contributions from parent company 465 146 Capital contributions from noncontrolling interests 4 23 Distributions to noncontrolling interests (76) (66) Payment of common stock dividends (143) (139) Other financing activities (10) (4) Net cash provided from financing activities 141 161 Net Change in Cash, Cash Equivalents, and Restricted Cash 173 (25) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 105 168 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 278 $ 143 Supplemental Cash Flow Information: Cash paid (received) during the period for — Interest (net of $21 and $8 capitalized for 2026 and 2025, respectively) $ 61 $ 59 Income taxes, net (excludes credit transfers) (61) 52 Noncash transactions — Accrued property additions at end of period 66 60 Right-of-use assets obtained under operating leases — 2 The accompanying notes as they relate to Southern Power are an integral part of these condensed consolidated financial statements.
Southern Power — Six-month cash flows, net loss and financing · Filed 30/07/2026
Retail fuel cost recovery revenues decreased in the second quarter and year-to-date 2026 as compared to the corresponding periods in 2025 due to lower recoverable fuel costs.
MD&A — Retail fuel cost recovery following lower recoverable fuel costs · Filed 30/07/2026
These affiliate sales are made in accordance with the IIC or other contractual agreements, as approved by the FERC.
MD&A — Affiliate energy sales under FERC-approved agreements · Filed 30/07/2026
Energy revenues related to these transactions do not have a significant impact on earnings since this energy is generally sold at marginal cost.
MD&A — Affiliate energy sales generally at marginal cost · Filed 30/07/2026
16 Table of Contents Index to Financial Statements ALABAMA POWER COMPANY CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended June 30, 2026 2025 (in millions) Operating Activities: Net income $ 862 $ 755 Adjustments to reconcile net income to net cash provided from operating activities — Depreciation and amortization, total 867 803 Deferred income taxes 88 116 Pension, postretirement, and other employee benefits (115) (89) Settlement of asset retirement obligations (114) (120) Retail fuel cost under recovery – long-term (66) (62) Other, net (57) (44) Changes in certain current assets and liabilities — -Receivables (6) (94) -Prepayments (66) (89) -Other current assets (21) (8) -Accounts payable (277) (251) -Accrued taxes 72 25 -Accrued compensation (111) (93) -Customer refunds 2 (110) -Other current liabilities 20 (61) Net cash provided from operating activities 1,078 678 Investing Activities: Property additions (958) (1,065) Contributions in aid of construction 157 31 Nuclear decommissioning trust fund purchases (307) (270) Nuclear decommissioning trust fund sales 307 270 Cost of removal, net of salvage (95) (92) Other investing activities 18 (43) Net cash used for investing activities (878) (1,169) Financing Activities: Proceeds — Senior notes — 600 Other long-term debt — 4 Redemptions — Senior notes — (250) Other long-term debt (45) — Capital contributions from parent company 276 562 Payment of common stock dividends (601) (609) Other financing activities 6 (7) Net cash provided from (used for) financing activities (364) 300 Net Change in Cash, Cash Equivalents, and Restricted Cash (164) (191) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 566 585 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 402 $ 394 Supplemental Cash Flow Information: Cash paid during the period for — Interest (net of $11 and $10 capitalized for 2026 and 2025, respectively) $ 229 $ 205 Income taxes, net 217 217 Noncash transactions — Accrued property additions at end of period 131 116 Right-of-use assets obtained under operating leases 11 7 Right-of-use assets obtained under finance leases 3 1 The accompanying notes as they relate to Alabama Power are an integral part of these condensed financial statements.
Alabama Power — Six-month cash generation, investment and parent contributions · Filed 30/07/2026
26 Table of Contents Index to Financial Statements MISSISSIPPI POWER COMPANY CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended June 30, 2026 2025 (in millions) Operating Activities: Net income $ 112 $ 114 Adjustments to reconcile net income to net cash provided from operating activities — Depreciation and amortization, total 125 115 Deferred income taxes 14 4 Pension, postretirement, and other employee benefits (9) (8) Settlement of asset retirement obligations (12) (7) Other, net (3) (7) Changes in certain current assets and liabilities — -Receivables (11) (26) -Retail fuel cost under recovery (14) (28) -Fossil fuel stock — 20 -Other current assets (8) 8 -Accounts payable (23) (22) -Accrued taxes (57) (49) -Accrued compensation (21) (22) -Wholesale fuel cost over recovery — (15) -Other current liabilities — 1 Net cash provided from operating activities 93 78 Investing Activities: Property additions (185) (166) Contributions in aid of construction 4 57 Cost of removal, net of salvage (18) (17) Payments pursuant to LTSAs (11) (11) Other investing activities 1 (8) Net cash used for investing activities (209) (145) Financing Activities: Increase in notes payable, net 38 18 Proceeds — Senior notes 75 100 Capital contributions from parent company 97 57 Payment of common stock dividends (96) (97) Other financing activities (2) (2) Net cash provided from financing activities 112 76 Net Change in Cash, Cash Equivalents, and Restricted Cash (4) 9 Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 26 13 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 22 $ 22 Supplemental Cash Flow Information: Cash paid during the period for — Interest $ 40 $ 37 Income taxes, net 23 21 Noncash transactions — Accrued property additions at end of period 42 30 Right-of-use assets obtained under operating leases 3 — The accompanying notes as they relate to Mississippi Power are an integral part of these condensed financial statements.
Mississippi Power — Six-month investment funding and financing · Filed 30/07/2026
135 Table of Contents Index to Financial Statements MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Financing Activities The following table outlines long-term debt financing activities for the first six months of 2026: Issuances and Reofferings Maturities and Redemptions Company Senior Notes Other Long- Term Debt Senior Notes Other Long- Term Debt(a) (in millions) Southern Company parent $ — $ 1,300 $ — $ 1,250 Alabama Power — — — 47 Georgia Power 1,300 1,016 325 450 Mississippi Power 75 — — 1 Southern Power 600 — 564 — Southern Company Gas — 500 350 100 Other — — — 1 Elimination(b) — — — (3) Southern Company $ 1,975 $ 2,816 $ 1,239 $ 1,846 (a)Includes reductions in finance lease obligations resulting from cash payments under finance leases and, for Georgia Power, principal amortization payments totaling $43 million for FFB borrowings.
MD&A — First-half 2026 debt issuances and redemptions · Filed 30/07/2026
Southern Company During the first six months of 2026, Southern Company issued approximately 31.1 million shares of common stock primarily through forward sale contract settlements and employee equity compensation plans.
MD&A — Actual first-half 2026 common share issuance · Filed 30/07/2026
Proceeds from settlements of the forward sale contracts totaled approximately $2.5 billion.
MD&A — Proceeds from forward sale contract settlements · Filed 30/07/2026
Growth Investment Reliability Safety 39,000 New residential electric customers 17% Sales increase to data center customers $81B 5-year capital plan, 95% projected in state-regulated utilities (2026-2030) 2.26% Industry-leading annual equivalent forced outage rate 98.61% Leak response < 60 minutes 0.03 Serious injury rate for employees Southern Company 2026 Proxy Statement 5 Company Performance Company Strategy and Highlights Southern Company and its subsidiaries continue to deliver value for customers by prioritizing financial discipline, strengthening reliability and investing for the future.
Proxy — 2025 customer growth, reliability results and prospective capital plan · Filed 03/04/2026
Short-Term Incentive Compensation 2025 Annual Performance Pay Program (PPP) The formula for computing PPP payouts is as follows: Base Salary Target Award Percentage Performance Goal Achievement PPP Award Earned (% of Base Salary; varies by pay grade) (Payout ranges from 0% to 200%) 2025 PPP Goal Weighting CEO, CFO, COO and Retired CFO g 65% EPS g 35% Operational Other NEOs g 45% EPS g 20% Business Unit Net Income g 35% Operational The PPP program also includes an individual modifier that provides the Committee with the flexibility to adjust the total payout by +/- 10 percentage points based on individual performance.
Compensation Discussion and Analysis — Actual 2025 annual incentive framework · Filed 03/04/2026
The following areas were considered when assessing the overall performance of the NEOs: 4Strong financial and operational performance with adjusted EPS at top of guidance range 4Continued to enhance the customer experience and strengthen customer satisfaction and loyalty 4Facilitated customer growth and constructive regulatory, legislative and policy outcomes 4Implemented enterprise-wide governance processes to develop a consistent, sustainable approach to meeting large load growth opportunities 4Led business initiatives with a focus on collaborating as One Team and leveraging innovation to help ensure that we are positioned for success 4Invested in our employees, including employee well-being, recruitment and development, and advancing Our Values 4Strengthened leadership capabilities and bench strength, and fostered a culture of inclusion, engagement, innovation and execution 2025 PPP Payouts Name Target 2025 PPP Opportunity (% of salary) Target 2025 PPP Opportunity ($) EPS Payout (%) Net Income Payout (%) Operational Payout (%) Total Payout (%) 2025 PPP Payout ($) Chris Womack 130 % 2,047,500 176 % N/A 185 % 179 % 3,665,025 David Poroch(1) 55% / 85% 522,970 176 % 178 % 187% / 185% 179 % 938,606 Stan Connally 90 % 783,000 176 % N/A 185 % 179 % 1,401,570 Kim Greene 100 % 988,000 176 % 183% 191 % 183 % 1,808,040 Jeff Peoples 100 % 864,000 176 % 175 % 182 % 178 % 1,537,920 Dan Tucker(2) 90 % 788,400 176 % N/A 185 % 179 % 1,040,081 (1)PPP target and payout were prorated to reflect change in position as of July 31, 2025.
Compensation Discussion and Analysis — Reported 2025 incentive payouts · Filed 03/04/2026
Southern Company 2026 Proxy Statement 45 Compensation Discussion and Analysis Long-Term Equity Incentive Compensation 2025-2027 Long-Term Equity Incentive Program Weighting Metric(s) CEO, CFO, COO & Retired CFO Other NEOs PSUs - Relative TSR & Consolidated ROE Earned solely on achievement of performance goals over 2025-2027 performance period •Relative TSR measured against an industry peer group •Consolidated Southern Company ROE 65% 70% PSUs - GHG Reduction Metric Earned solely on achievement of three-year performance metrics aligned with Company’s fleet transition to support our GHG reduction goals •Quantitative metric of cumulative MW change •Qualitative modifier 10% N/A PRSUs - Cash from Operations Goal Earned if 2025 cash from operations exceeds 2024 dividends.
Compensation Discussion and Analysis — 2025–2027 equity incentive metrics · Filed 03/04/2026
On February 11, 2026, the Compensation Committee certified that the 2025-2027 PRSU threshold was met because Southern Company's cash from operations during 2025 was approximately $9.8 billion.
Compensation Discussion and Analysis — February 2026 certification of cash-flow threshold · Filed 03/04/2026
One-third of the 2025-2027 PRSUs vested on such date and the remainder will vest in equal amounts on the second and third anniversaries of the grant dates.
Compensation Discussion and Analysis — Actual partial vesting and remaining vesting schedule · Filed 03/04/2026
For 2025, the Board continued engaging an independent third party to facilitate the evaluation, consistent with best governance practices.
Governance — Independent third-party board evaluation during 2025 · Filed 03/04/2026
Recoupment Policy In accordance with applicable SEC rules and NYSE listing standards, Southern Company and its NYSE-listed subsidiaries adopted The Southern Company and Covered Subsidiaries Compensation Recoupment Policy (Recoupment Policy).
Compensation Governance — Adopted compensation recoupment policy · Filed 03/04/2026
The Recoupment Policy empowers each covered company to recover covered compensation erroneously awarded to its covered officers in the event of an accounting restatement.
Compensation Governance — Recovery of erroneously awarded compensation · Filed 03/04/2026
All of the services provided by Deloitte & Touche LLP in fiscal years 2025 and 2024 and related fees were approved in advance by the Southern Company Audit Committee.
Audit matters — Actual advance approval of auditor services and fees · Filed 19/02/2026
