The Southern Company

Georgia Power and Alabama Power operate under base rates frozen through February 2028 and year-end 2027, respectively, anchoring retail revenues at PSC-approved levels. Substantially all retail electric and gas distribution revenue has been earned under regulated tariffs for multiple decades, providing revenue stability through the COVID period and prior economic cycles.

Southern Company serves customers through electric distribution (Georgia Power, Alabama Power, Mississippi Power, Southern Power) and natural gas distribution (Southern Company Gas), with the electric segment representing the dominant share of FY2025 total revenue of $29.6 billion. Both segments operate in regulated energy markets with correlated end-market dynamics, limiting the diversification benefit despite the presence of two separate commodity businesses.

Substantially all revenue is generated within the United States, concentrated in Georgia, Alabama, and Mississippi, with no meaningful international operations. The three-state footprint exposes the company to southeastern U.S. economic conditions and individual state regulatory decisions, with Georgia representing the largest revenue base through Georgia Power.

The regulated utility business model requires proportional capital investment for each increment of rate-base growth; the approved $76 billion five-year capital plan is fundamentally capex-intensive with no software-like marginal cost characteristics. Revenue can grow with data center and industrial load additions in Georgia, but each megawatt of new capacity requires substantial upfront infrastructure spending.

Core electric and gas distribution revenue is mission-critical — residential and commercial customers require electricity and natural gas regardless of economic conditions — with rates set under multi-year regulatory frameworks approved by state public service commissions. FY2025 total revenue of $29.6 billion was earned almost entirely through regulated tariffs, representing a durable, contractual-like revenue stream with no meaningful transactional or discretionary component.