What The Southern Company told the SEC could break it.

Southern's Registrants and Nicor Gas rely on access to both short-term and longer-term capital markets and financial institutions as a significant liquidity source to meet capital requirements (including capital expenditures for projected electric demand growth) not satisfied by operating cash flow; impaired access could constrain the business.

“The Registrants and Nicor Gas rely on access to both short-term and longer-term capital markets as a significant source of liquidity to meet capital requirements not satisfied by the cash flow from their respective operations, including capital expenditures to meet projected electric demand growth.”

Southern's traditional electric and gas utilities depend on state-commission and FERC rate proceedings to recover fuel, purchased-power and capital costs and earn authorized returns; 2025 retail revenue rose on Georgia Power base-tariff/ECCR increases and inclusion of Plant Vogtle Unit 4 in rates, but the companies may not recover all costs.

“Changes in rates and pricing resulted in an increase in retail electric revenues in 2025 as compared to 2024 primarily due to increases at Georgia Power related to base tariff increases and increased ECCR tariff revenues in accordance with the 2022 ARP and the inclusion of Plant Vogtle Unit 4 in retail rates net of elimination of the NCCR tariff”

Southern's transmission and distribution infrastructure is vulnerable to physical attack because it is often unmanned, widely dispersed and in isolated areas; the risk of physical attack may escalate during heightened geopolitical tensions, and attacks against third-party providers could similarly affect the Southern Company system.

“Transmission and distribution infrastructure can be vulnerable to physical attack because it is often unmanned, widely dispersed, and located in isolated areas. The risk of physical attack may escalate during periods of heightened geopolitical tensions.”

Southern's results and revenues are exposed to natural-gas and fuel prices: 2025 fuel and purchased-power expenses rose 30.8% ($147M) on higher average fuel cost, wholesale revenues rose on higher natural-gas-driven energy prices, and Southern Company Gas's gas revenues rose $588M (13.2%) partly on gas-cost recovery — though fuel cost recovery is generally net-income-neutral.

“Fuel and purchased power expenses were $624 million in 2025, an increase of $147 million, or 30.8%, as compared to 2024. The increase was primarily due to a $111 million increase related to the average cost of fuel”