SO · 8-K · 20261105PR000071
Repowering and Depreciation Charges
SOUTHERN CO · 2026-11-05 · Importance 83 · Surprise 82 · In source text
Southern Power recorded $118 million of pre-tax accelerated depreciation and decommissioning charges in the third quarter of 2026, compared with $103 million a year earlier. The nine-month 2026 charge was $414 million, versus $168 million in 2025, including $322 million after tax for 2026. The charges relate to repowering certain Southern Power wind facilities and replacing equipment. At September 30, 2026, remaining pre-tax charges were projected at approximately $100 million for 2026 and $135 million for 2027, with projects expected to finish through the third quarter of 2027.
Key facts
- As of September 30, 2026, remaining pre-tax accelerated depreciation and decommissioning costs for repowering were projected at approximately $100 million in 2026 and $135 million in 2027. source
- Repowering certain Southern Power wind facilities resulted in pre-tax accelerated depreciation and decommissioning charges of $118 million ($92 million after tax) in Q3 2026 and $414 million ($322 million after tax) for the nine months ended September 30, 2026. source
- Accelerated depreciation and decommissioning costs for replacement equipment are expected to continue until the repowering projects are completed, projected through Q3 2027. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -5.9% | Repowering certain Southern Power wind facilities resulted in pre-tax accelerated depreciation and decommissioning charges of $118 million… |
| net_income | negative | realized | -4.6% | Repowering certain Southern Power wind facilities resulted in pre-tax accelerated depreciation and decommissioning charges of $118 million… |
| operating_income | negative | committed | -1.6% | As of September 30, 2026, remaining pre-tax accelerated depreciation and decommissioning costs for repowering were projected at… |
| operating_income | negative | committed | -1.2% | As of September 30, 2026, remaining pre-tax accelerated depreciation and decommissioning costs for repowering were projected at… |