Southern Company (SO), the holding company for Alabama Power, Georgia Power, Mississippi Power, Southern Power and Southern Company Gas, reported consolidated net income attributable to the company of $2.0 billion, or $1.77 a share, in the third quarter of 2026, up 19.6% from $1.7 billion, or $1.55 a share, a year earlier. The company said the increase was primarily due to higher non-fuel retail electric revenues, partially offset by increases in other operations and maintenance expenses and taxes other than income taxes.

Retail electric revenues were $6.6 billion, up 16.1% from $5.7 billion a year earlier. Rates and pricing contributed $322 million, or 5.7%, sales growth $150 million, weather $218 million, and fuel and other cost recovery $226 million. The company said rates and pricing rose primarily because of higher contributions from commercial and industrial customers with variable demand-driven pricing at Georgia Power and an increase in Rate CNP Compliance revenues at Alabama Power.

Weather-adjusted commercial kilowatt-hour sales increased 7.3%, which the company attributed primarily to increased customer usage, largely driven by data centers at Georgia Power. Weather-adjusted residential kilowatt-hour sales increased 1.3% and weather-adjusted industrial kilowatt-hour sales increased 1.8%, the latter primarily in primary metals, lumber and miscellaneous manufacturing, partially offset by declines in paper and chemicals.

Wholesale electric revenues were $873 million, up 4.9% from $832 million a year earlier. Energy revenues rose $40 million on volume from higher demand and $11 million on average cost per kilowatt-hour from higher fuel and purchased power prices, partially offset by a $10 million decrease in non-fuel capacity revenues primarily at Alabama Power.

Other electric revenues were $229 million, down 12.6% from $262 million a year earlier, primarily due to a $31 million decrease in renewable energy program revenues associated with solar application fees at Georgia Power.

Natural gas revenues were $773 million, up 5.3% from $734 million a year earlier. Rates contributed $50 million, or 6.8%, primarily from base rate increases at Nicor Gas and Atlanta Gas Light. Gas costs and other cost recovery declined $23 million, or 3.1%, on lower natural gas prices. Other revenues were $345 million, up 19.8% from $288 million a year earlier, primarily due to a $57 million increase at PowerSecure related to distributed infrastructure projects.

Total fuel and purchased power expenses were $1.8 billion, up $223 million from $1.6 billion a year earlier, with $128 million from higher kilowatt-hour volume and $95 million from higher average cost. Total generation was 57 billion kilowatt-hours versus 53 billion a year earlier. Average cost of fuel generated was 2.95 cents per net kilowatt-hour versus 2.78 cents, and average cost of purchased power was 5.29 cents versus 4.94 cents. Cost of natural gas decreased $17 million, or 14.7%, reflecting lower natural gas prices.

On November 4, 2026, Alabama Power requested authorization from the Alabama PSC to defer until 2029 recovery of Lindsay Hill Generating Station costs under Rate CNP New Plant, proposing 2028 bill credits and a five-year recovery starting in 2029, after Alabama enacted the Power to the People Act barring retail base-rate increases before January 1, 2029. The company said the ultimate outcome cannot be determined at this time.

On August 26, 2026, Georgia Power agreed to increase downward rate pressure for non-large load customers in its next base rate case to at least $949 million per year, on a levelized basis, for 2029, 2030 and 2031, following additional large load contracts.

During the first nine months of 2026, Southern Power placed in service the 180-megawatt second phase of Millers Branch solar, all 200 megawatts of Kay wind repowering, all 152 megawatts of Grant wind repowering, and 82 megawatts of the 147-megawatt Grant Plains wind repowering, including after September 30, 2026. At September 30, 2026, Southern Power’s average investment coverage ratio was 98% through 2030 and 89% through 2035, versus 97% and 88% at June 30, 2026, with average remaining contract duration of approximately 12 years.

On October 15, 2026, the Illinois Commission approved a Nicor Gas stipulation providing an annual base rate revenue increase of approximately $82 million, an ROE of 9.48% and a 50% equity ratio, effective November 16, 2026. The order remains subject to rehearing requests.