Southern Company — Jul 30, 2026 release

(2) Earnings include pre-tax charges of $143 million ($111 million after tax) and $296 million ($230 million after tax) for the three and six months ended June 30, 2026, respectively, and $40 million ($31 million after tax, net of noncontrolling interest impacts) and $65 million ($51 million after tax, net of noncontrolling interest impacts) for the three and six months ended June 30, 2025, respectively, associated with accelerated depreciation and decommissioning costs related to the repowering of certain wind facilities at Southern Power Company. Accelerated depreciation and decommissioning costs associated with the replacement of equipment will continue until the completion dates of the repowering projects, which are projected to occur through the third quarter 2027. At June 30, 2026, the remaining pre-tax accelerated depreciation and decommissioning costs are projected to total approximately $205 million in 2026 and $120 million in 2027. (3) Earnings include costs associated with the extinguishment of debt at Southern Company totaling $11 million ($8 million after tax) for the six months ended June 30, 2026, as a result of Southern Company's redemption of certain junior subordinated notes, and $129 million ($97 million after tax) for the three and six months ended June 30, 2025, as a result of Southern Company's repurchase of certain convertible senior notes. Similar transaction costs may occur in the future at Southern Company or one of its unregulated subsidiaries; however, the amount and timing of any such costs are uncertain. (4) Earnings for the three and six months ended June 30, 2026 include an estimated loss of $8 million ($6 million after tax) and $10 million ($8 million after tax), respectively, at Southern Company Gas related to costs associated with Nicor Gas capital investments disallowed by the Illinois Commerce Commission in November 2025. Further charges may occur; however, the amount and timing of any such charges are uncert