Letter to Southern Company Shareholders – March 26, 2024

“The following is the Letter to Shareholders dated March, 26, 2024 included in the Southern Company 2023 Annual Report.”

Dear Fellow Shareholders,

Southern Company experienced an exceptional year in 2023. Despite headwinds that included higher interest rates, inflation and historically mild weather, we delivered operational excellence, outstanding customer service and strong financial results through hard work, collaborative teamwork and focused perseverance. Plant Vogtle Unit 3, the first newly-constructed nuclear unit to be built in the United States in over three decades, entered commercial operation in July, proving once again that we can accomplish difficult tasks. Unit 4 achieved initial criticality earlier this year and is projected to be in service during the second quarter of 2024. Once Unit 4 is in service, Plant Vogtle will become the largest carbon-free generation asset in the United States. These units represent a long-term investment in a clean energy future for the state of Georgia and they are expected to provide reliable, emissions-free energy to customers for decades to come.

Excelling at the Fundamentals

Plant Barry Unit 8 is now completed and serving customers across Alabama. The state-of-the-art combined cycle unit pairs a gas turbine and steam turbine to generate up to 727 MW–enough energy to power more than 200,000 homes. Constructed on time and within budget, the addition of Unit 8 makes Plant Barry the largest facility in Alabama Power’s generation fleet. In 2023, Southern Company subsidiaries responded to record summer heat across the South. Mississippi Power experienced its highest peak load since 2012 and successfully met customer demand thanks to the dedication of employees in ensuring optimal running condition of its generating units and proactive maintenance programs. In August, Hurricane Idalia made landfall on the Gulf Coast as a Category 3 hurricane. The storm was responsible for power outages affecting more than 250,000 customers. Our unified restoration team of 5,500 personnel from Alabama Power, Georgia Power, Mississippi Power and Southern Company Gas worked tirelessly to restore power and repair gas lines. Within 72 hours, service was restored for most customers.

Serving Our Customers and Elevating Our Communities

Several years of extraordinary success in attracting new and expanding businesses to our states underpins our optimistic outlook for the future. Georgia Power filed an update to its Integrated Resource Plan with the Georgia PSC to accommodate the projected energy needs resulting from that state’s robust economic growth. The updated plan, which is subject to approval by the Georgia PSC, includes the deployment of new generation resources, battery energy storage systems, distributed energy resources and conventional power plants. Of note, Georgia Power now anticipates adding approximately 10,000 MW of new renewable resources by 2035, double its previous projection. Southern Company has a long history of being a citizen wherever we serve. We continue to be committed to the customers and communities we are privileged to serve as we strive to make lives better. We amplify, invest in and support causes that advance equity and social justice in our communities. Since 2020, Southern Company and our charitable foundations have invested $201 million as part of our five-year, $225 million commitment to those communities. Nicor Gas brought natural gas service to the underserved community of Hopkins Park, Illinois, providing residents who have historically relied on propane and wood-fired stoves to heat their homes with an affordable and reliable energy option. Nicor Gas also partnered with Fox Valley Habitat for Humanity to break ground on a new smart neighborhood in northern Illinois. The project aims to build energy efficient homes that incorporate smart technology and advanced energy solutions. As a Proud Partner of the TOUR Championship and Official Energy Company of the PGA Tour, Southern Company has helped generate nearly $50 million for community charities since the TOUR Championship was first staged at Atlanta’s East Lake Golf Club in 1998. Southern Company announced a five-year extension to our partnership with the National Fish and Wildlife Foundation that will continue to support conservation efforts across our service footprint. This partnership has supported more than 400 on-the-ground conservation projects, including landscape-scale ecosystem restoration, watershed management and species conservation.

Leading through Innovation

Southern Company, TerraPower and CORE POWER successfully initiated pumped-salt operations at the Integrated Effects Test at TerraPower’s laboratory in Everett, Washington, a significant milestone in the development of Generation IV molten salt reactor technology. Nicor Gas will participate in the Midwest Alliance for Clean Hydrogen, one of seven regional clean hydrogen hubs approved by the U.S. Department of Energy. Southern Company is committed to pursuing hydrogen projects that support a sustainable future and serve customer needs with clean energy. In 2023, Southern Company’s Clean Transportation division secured over $17 million in funding for electric vehicle (EV) charging infrastructure. Southern Company is a founding member of the Electric Power Research Institute’s EVstoScale 2030 initiative and company subsidiaries also installed EV charging stations at state parks, airports and military bases, contributing to our goal to reach net-zero greenhouse gas emissions by 2050. Southern Company was named co-chair of the Elevate Fund, a clean tech energy innovation fund that is part of the Energy Impact Partners venture capital group. 2 The fund helps drive diversity in the energy ecosystem by providing access to capital for underrepresented founders of clean tech companies and it supports diversity and minority-owned businesses in the associated supply chain. Southern Company was the inaugural donor to the fund, which has raised nearly $112 million in limited partner commitments. Southern Company continues to receive accolades from a variety of industry observers. Earlier this year, we were ranked first among electric and gas utilities in Fortune magazine’s ranking of the World‘s Most Admired Companies™, and No. 1 for Black executives by DiversityInc for the second consecutive year. Alabama Power was ranked No. 1 in electric utility business customer satisfaction in the large segment category by J.D. Power. Similarly, J.D. Power ranked Georgia Power No. 1 in electric utility residential customer satisfaction, also in the large segment category. Southern Company also received the Edison Electric Institute Index Award which measured the total shareholder return of electric companies over a five-year period ended December 31, 2022, ranking first in the large cap category with an impressive 83.4% return. Our next-closest competitor delivered a 53% return. In closing, our customer-focused business model continues to be the cornerstone for delivering value to customers and shareholders alike. Our experienced management team has a long track record of successfully executing on this time-tested model, and we believe our company is well-positioned for continued success. We are grateful for your continued confidence in Southern Company. It is a privilege to serve you.

Sincerely,

Christopher C. Womack