v3.25.2
Natural Gas Capacity Agreements
6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Natural Gas Capacity Agreements Natural Gas Capacity Agreements.
We have precedent agreements with Southern Natural Gas Company, LLC (SONAT) that became effective in August 2024. The agreements provide for firm natural gas transportation needed to serve our new Smarr combined cycle generation facility and additional firm transportation to BC Smith. In November 2024, we exercised options to increase the available amounts under the precedent agreements to provide additional natural gas supply to the new Smarr facility. The firm transportation capacity is contingent upon completion of these expansion projects by SONAT. With the exercise of the options noted above, total fixed charges over the 20-year base terms will be approximately $2,100,000,000. Our obligation to make payments begins when the pipeline expansion projects are placed into service, both of which are projected to be November 2028.

In October 2024, we entered into a preliminary binding agreement with Tennessee Gas Pipeline Company, L.L.C. to commit for natural gas capacity for the Mississippi Crossing gas pipeline. In May 2025, we amended this agreement to reflect final capacity amounts and delivery points. This agreement will provide capacity for both existing and future resources. The firm transportation capacity is contingent upon completion of this expansion project. Total fixed charges over the 20-year base term are approximately $1,000,000,000. Our obligation to make payments begins when the pipeline project is placed into service, which is projected to be November 2028.