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RETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2021

The weighted average rates assumed in the actuarial calculations used to determine both the net periodic costs for the pension and other postretirement benefit plans for the following year and the benefit obligations as of the measurement date are presented below.


	2021
Assumptions used to determine net periodic costs:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate – benefit obligations	2.81	%	2.85	%	2.79	%	2.80	%	2.99	%	2.75	%
Discount rate – interest costs	2.13		2.17		2.09		2.12		2.46		2.10
Discount rate – service costs	3.18		3.23		3.21		3.20		3.22		2.97
Expected long-term return on plan assets	8.25		8.25		8.25		8.25		8.25		8.25
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80
Other postretirement benefit plans
Discount rate – benefit obligations	2.56	%	2.63	%	2.52	%	2.53	%	2.78	%	2.46	%
Discount rate – interest costs	1.84		1.91		1.82		1.78		2.12		1.64
Discount rate – service costs	3.07		3.13		3.08		3.06		3.05		3.01
Expected long-term return on plan assets	7.09		7.18		6.84		6.98		—		6.54
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80


	2020
Assumptions used to determine net periodic costs:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate – benefit obligations	3.41	%	3.44	%	3.40	%	3.41	%	3.52	%	3.39	%
Discount rate – interest costs	2.99		3.01		2.96		2.99		3.18		2.99
Discount rate – service costs	3.66		3.69		3.67		3.67		3.70		3.53
Expected long-term return on plan assets	8.25		8.25		8.25		8.25		8.25		8.25
Annual salary increase	4.73		4.73		4.73		4.73		4.73		4.73
Other postretirement benefit plans
Discount rate – benefit obligations	3.24	%	3.28	%	3.22	%	3.22	%	3.39	%	3.19	%
Discount rate – interest costs	2.80		2.84		2.79		2.76		2.97		2.71
Discount rate – service costs	3.57		3.61		3.57		3.57		3.57		3.52
Expected long-term return on plan assets	7.25		7.36		7.05		7.07		—		6.69
Annual salary increase	4.73		4.73		4.73		4.73		4.73		4.73


	2019
Assumptions used to determine net periodic costs:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate – benefit obligations	4.49	%	4.51	%	4.48	%	4.49	%	4.65	%	4.47	%
Discount rate – interest costs	4.12		4.14		4.10		4.12		4.35		4.11
Discount rate – service costs	4.70		4.73		4.72		4.73		4.75		4.57
Expected long-term return on plan assets	7.75		7.75		7.75		7.75		7.75		7.75
Annual salary increase	4.34		4.46		4.46		4.46		4.46		3.07
Other postretirement benefit plans
Discount rate – benefit obligations	4.37	%	4.40	%	4.36	%	4.35	%	4.50	%	4.32	%
Discount rate – interest costs	3.98		4.01		3.97		3.95		4.14		3.91
Discount rate – service costs	4.63		4.67		4.64		4.64		4.65		4.56
Expected long-term return on plan assets	6.86		6.76		6.85		6.79		—		6.49
Annual salary increase	4.34		4.46		4.46		4.46		4.46		3.07


	2021
Assumptions used to determine benefit obligations:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate	3.09	%	3.12	%	3.07	%	3.07	%	3.21	%	3.04	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80
Other postretirement benefit plans
Discount rate	2.90	%	2.95	%	2.87	%	2.88	%	3.07	%	2.82	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80


	2020
Assumptions used to determine benefit obligations:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate	2.81	%	2.85	%	2.79	%	2.80	%	2.99	%	2.75	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80
Other postretirement benefit plans
Discount rate	2.56	%	2.63	%	2.52	%	2.53	%	2.78	%	2.46	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80

Schedule of health care cost trend rates

The weighted average medical care cost trend rates used in measuring the APBO for the Registrants at December 31, 2021 were as follows:


	Initial Cost Trend Rate		Ultimate Cost Trend Rate		Year That Ultimate Rate is Reached
Pre-65	6.00	%	4.50	%	2028
Post-65 medical	5.00		4.50		2028
Post-65 prescription	6.25		4.50		2029

Schedule of accumulated and projected benefit obligations

The total accumulated benefit obligation for the pension plans at December 31, 2021 and 2020 was as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
December 31, 2021	$	14,687	$	3,362	$	4,562	$	672	$	178	$	1,030
December 31, 2020	14,922		3,414		4,657		683		175		1,072

The projected benefit obligations for the qualified and non-qualified pension plans at December 31, 2021 are shown in the following table. All pension plan assets are related to the qualified pension plan.


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Projected benefit obligations:
Qualified pension plan	$	15,568	$	3,678	$	4,852	$	708	$	193	$	1,066
Non-qualified pension plan	814		129		160		36		29		68

Changes in projected benefit obligations and fair value of plan assets

Changes in the projected benefit obligations and the fair value of plan assets during the plan years ended December 31, 2021 and 2020 were as follows:


	2021
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	16,646	$	3,854	$	5,127	$	754	$	217	$	1,189

Service cost	434		102		112		18		10		37
Interest cost	346		82		104		16		5		24

Benefits paid	(651)		(137)		(210)		(28)		(4)		(73)
Actuarial gain	(393)		(95)		(121)		(17)		(6)		(43)
Balance at end of year	16,382		3,806		5,012		743		222		1,134
Change in plan assets
Fair value of plan assets at beginning of year	15,367		3,684		4,844		701		186		1,123

Actual return on plan assets	2,449		586		781		111		30		181
Employer contributions	60		8		—		2		1		10
Benefits paid	(651)		(137)		(210)		(28)		(4)		(73)
Fair value of plan assets at end of year	17,225		4,141		5,415		786		213		1,241
Accrued asset (liability)	$	843	$	335	$	403	$	43	$	(9)	$	107


	2020
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	14,788	$	3,404	$	4,610	$	671	$	185	$	1,067

Service cost	376		89		96		15		8		33
Interest cost	432		100		133		20		6		31
Benefits paid	(629)		(132)		(202)		(27)		(6)		(69)
Actuarial loss	1,679		393		490		75		24		127
Balance at end of year	16,646		3,854		5,127		754		217		1,189
Change in plan assets
Fair value of plan assets at beginning of year	14,057		3,357		4,442		641		169		1,050

Actual return on plan assets	1,881		450		594		85		22		139
Employer contributions	58		9		10		2		1		3
Benefits paid	(629)		(132)		(202)		(27)		(6)		(69)
Fair value of plan assets at end of year	15,367		3,684		4,844		701		186		1,123
Accrued liability	$	(1,279)	$	(170)	$	(283)	$	(53)	$	(31)	$	(66)

Amounts recognized in balance sheets

Amounts recognized in the balance sheets at December 31, 2021 and 2020 related to the Registrants' pension plans consist of the following:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
December 31, 2021:
Prepaid pension costs(a)	$	1,657	$	464	$	563	$	78	$	20	$	175
Other regulatory assets, deferred(b)	2,920		809		971		146		—		91

Other current liabilities	(55)		(9)		(12)		(2)		(2)		(2)
Employee benefit obligations(c)	(759)		(120)		(148)		(33)		(27)		(66)
Other regulatory liabilities, deferred	(119)		—		—		—		—		—
AOCI	100		—		—		—		35		(45)

December 31, 2020:
Prepaid pension costs	$	—	$	—	$	—	$	—	$	—	$	70
Other regulatory assets, deferred(b)	4,655		1,286		1,598		235		—		205

Other current liabilities	(52)		(9)		(10)		(2)		(2)		(2)
Employee benefit obligations(c)	(1,227)		(161)		(273)		(51)		(29)		(134)
Other regulatory liabilities, deferred	(34)		—		—		—		—		—
AOCI	245		—		—		—		60		1

(a)Included in prepaid pension and other postretirement benefit costs on Alabama Power's balance sheet and other deferred charges and assets on Southern Power's consolidated balance sheet.

(b)Amounts for Southern Company exclude regulatory assets of $210 million and $224 million at December 31, 2021 and 2020, respectively, associated with unamortized amounts in Southern Company Gas' pension plans prior to its acquisition by Southern Company.

(c)Included in other deferred credits and liabilities on Southern Power's consolidated balance sheets.

Presented below are the amounts included in regulatory assets at December 31, 2021 and 2020 related to the portion of the defined benefit pension plan attributable to Southern Company, the traditional electric operating companies, and Southern Company Gas that had not yet been recognized in net periodic pension cost.


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Balance at December 31, 2021
Regulatory assets:
Prior service cost	$	11	$	5	$	8	$	1	$	(11)
Net loss	2,790		804		963		145		38
Regulatory amortization	—		—		—		—		64
Total regulatory assets(*)	$	2,801	$	809	$	971	$	146	$	91

Balance at December 31, 2020
Regulatory assets:
Prior service cost	$	11	$	5	$	9	$	2	$	(13)
Net loss	4,610		1,281		1,589		233		135
Regulatory amortization	—		—		—		—		83
Total regulatory assets(*)	$	4,621	$	1,286	$	1,598	$	235	$	205

(*)Amounts for Southern Company exclude regulatory assets of $210 million and $224 million at December 31, 2021 and 2020, respectively, associated with unamortized amounts in Southern Company Gas' pension plans prior to its acquisition by Southern Company.

Amounts recognized in the balance sheets at December 31, 2021 and 2020 related to the Registrants' other postretirement benefit plans consist of the following:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
December 31, 2021:
Prepaid other postretirement benefit costs(a)	$	—	$	49	$	—	$	—	$	—	$	—
Other regulatory assets, deferred(b)	97		—		30		2		—		—
Other current liabilities	(5)		—		—		—		—		—
Employee benefit obligations(c)	(593)		—		(206)		(47)		(11)		(94)
Other regulatory liabilities, deferred	(171)		(62)		(40)		(1)		—		(34)
AOCI	—		—		—		—		2		(5)

December 31, 2020:
Other regulatory assets, deferred(b)	$	137	$	—	$	47	$	5	$	—	$	(23)
Other current liabilities	(5)		—		—		—		—		—
Employee benefit obligations(c)	(785)		(5)		(272)		(54)		(12)		(120)
Other regulatory liabilities, deferred	(86)		(21)		—		—		—		—
AOCI	8		—		—		—		3		—

(a)Included in prepaid pension and other postretirement benefit costs on Alabama Power's balance sheet.

(b)Amounts for Southern Company exclude regulatory assets of $40 million and $47 million at December 31, 2021 and 2020, respectively, associated with unamortized amounts in Southern Company Gas' other postretirement benefit plans prior to its acquisition by Southern Company.

(c)Included in other deferred credits and liabilities on Southern Power's consolidated balance sheets.

Presented below are the amounts included in net regulatory assets (liabilities) at December 31, 2021 and 2020 related to the other postretirement benefit plans of Southern Company, the traditional electric operating companies, and Southern Company Gas that had not yet been recognized in net periodic other postretirement benefit cost.


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Balance at December 31, 2021:
Regulatory assets (liabilities):
Prior service cost	$	13	$	3	$	5	$	1	$	1
Net gain	(87)		(65)		(15)		—		(51)
Regulatory amortization	—		—		—		—		16
Total regulatory assets (liabilities)(*)	$	(74)	$	(62)	$	(10)	$	1	$	(34)

Balance at December 31, 2020:
Regulatory assets (liabilities):
Prior service cost	$	12	$	3	$	5	$	—	$	1
Net (gain) loss	39		(24)		42		5		(49)
Regulatory amortization	—		—		—		—		25
Total regulatory assets (liabilities)(*)	$	51	$	(21)	$	47	$	5	$	(23)

(*)Amounts for Southern Company exclude regulatory assets of $40 million and $47 million at December 31, 2021 and 2020, respectively, associated with unamortized amounts in Southern Company Gas' other postretirement benefit plans prior to its acquisition by Southern Company.

Changes in balances of regulatory assets and regulatory liabilities related to defined benefit pension plans

The changes in the balance of regulatory assets related to the portion of the defined benefit pension plan attributable to Southern Company, the traditional electric operating companies, and Southern Company Gas for the years ended December 31, 2021 and 2020 are presented in the following table:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Regulatory assets (liabilities):(*)
Balance at December 31, 2019	$	3,993	$	1,130	$	1,416	$	203	$	172
Net loss	884		228		269		45		45


Reclassification adjustments:
Amortization of prior service costs	(1)		(1)		(1)		—		2
Amortization of net loss	(255)		(71)		(86)		(13)		(8)
Amortization of regulatory assets(*)	—		—		—		—		(6)
Total reclassification adjustments	(256)		(72)		(87)		(13)		(12)
Total change	628		156		182		32		33
Balance at December 31, 2020	$	4,621	$	1,286	$	1,598	$	235	$	205
Net gain	(1,523)		(394)		(527)		(74)		(97)


Reclassification adjustments:
Amortization of prior service costs	(1)		(1)		(1)		—		2
Amortization of net loss	(296)		(82)		(99)		(15)		(9)
Amortization of regulatory assets(*)	—		—		—		—		(10)
Total reclassification adjustments	(297)		(83)		(100)		(15)		(17)
Total change	(1,820)		(477)		(627)		(89)		(114)
Balance at December 31, 2021	$	2,801	$	809	$	971	$	146	$	91

The changes in the balance of net regulatory assets (liabilities) related to the other postretirement benefit plans for the plan years ended December 31, 2021 and 2020 are presented in the following table:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Net regulatory assets (liabilities):(*)
Balance at December 31, 2019	$	121	$	1	$	96	$	10	$	(11)
Net gain	(65)		(22)		(47)		(5)		(5)


Reclassification adjustments:
Amortization of prior service costs	1		—		1		—		—
Amortization of net loss	(6)		—		(3)		—		—
Amortization of regulatory assets(*)	—		—		—		—		(7)
Total reclassification adjustments	(5)		—		(2)		—		(7)
Total change	(70)		(22)		(49)		(5)		(12)
Balance at December 31, 2020	$	51	$	(21)	$	47	$	5	$	(23)
Net gain	(120)		(41)		(55)		(4)		(2)


Reclassification adjustments:
Amortization of prior service costs	1		—		1		—		—
Amortization of net loss	(6)		—		(3)		—		—
Amortization of regulatory assets(*)	—		—		—		—		(9)
Total reclassification adjustments	(5)		—		(2)		—		(9)
Total change	(125)		(41)		(57)		(4)		(11)
Balance at December 31, 2021	$	(74)	$	(62)	$	(10)	$	1	$	(34)

Amounts included in AOCI related to defined benefit pension plans

Presented below are the amounts included in AOCI at December 31, 2021 and 2020 related to the portion of the defined benefit pension plan attributable to Southern Company, Southern Power, and Southern Company Gas that had not yet been recognized in net periodic pension cost.


	Southern Company		Southern Power		Southern Company Gas
	(in millions)
Balance at December 31, 2021
AOCI:
Prior service cost	$	(2)	$	—	$	(3)
Net (gain) loss	102		35		(42)
Total AOCI	$	100	$	35	$	(45)

Balance at December 31, 2020
AOCI:
Prior service cost	$	(3)	$	—	$	(4)
Net loss	248		60		5
Total AOCI	$	245	$	60	$	1

Presented below are the amounts included in AOCI at December 31, 2021 and 2020 related to the other postretirement benefit plans of Southern Company, Southern Power, and Southern Company Gas that had not yet been recognized in net periodic other postretirement benefit cost.


	Southern Company		Southern Power		Southern Company Gas
	(in millions)
Balance at December 31, 2021
AOCI:
Prior service cost	$	1	$	—	$	1
Net (gain) loss	(1)		2		(6)
Total AOCI	$	—	$	2	$	(5)

Balance at December 31, 2020
AOCI:
Prior service cost	$	1	$	—	$	1
Net (gain) loss	7		3		(1)
Total AOCI	$	8	$	3	$	—

Components of OCI related to defined benefit pension plan

The components of OCI related to the portion of the defined benefit pension plan attributable to Southern Company, Southern Power, and Southern Company Gas for the years ended December 31, 2021 and 2020 are presented in the following table:


	Southern Company		Southern Power		Southern Company Gas
	(in millions)
AOCI:
Balance at December 31, 2019	$	185	$	46	$	(14)
Net loss	74		16		15


Reclassification adjustments:
Amortization of prior service costs	—		—		1
Amortization of net loss	(14)		(2)		(1)
Total reclassification adjustments	(14)		(2)		—
Total change	60		14		15
Balance at December 31, 2020	$	245	$	60	$	1
Net gain	(128)		(22)		(47)

Reclassification adjustments:

Amortization of net gain (loss)	(17)		(3)		1
Total reclassification adjustments	(17)		(3)		1
Total change	(145)		(25)		(46)
Balance at December 31, 2021	$	100	$	35	$	(45)

The components of OCI related to the other postretirement benefit plans for the plan years ended December 31, 2021 and 2020 are presented in the following table:


	Southern Company		Southern Power		Southern Company Gas
	(in millions)
AOCI:
Balance at December 31, 2019	$	2	$	2	$	(4)
Net loss	2		1		—

Reclassification adjustments:

Amortization of net gain (loss)	4		—		4

Total change	6		1		4
Balance at December 31, 2020	$	8	$	3	$	—
Net gain	(11)		(1)		—

Reclassification adjustments:

Amortization of net gain (loss)	3		—		(5)

Total change	(8)		(1)		(5)
Balance at December 31, 2021	$	—	$	2	$	(5)

Components of net periodic benefit cost

Components of net periodic pension cost for the Registrants were as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2021
Service cost	$	434	$	102	$	112	$	18	$	10	$	37
Interest cost	346		82		104		16		5		24
Expected return on plan assets	(1,191)		(287)		(375)		(55)		(14)		(86)
Recognized net loss	314		82		100		15		3		13
Net amortization	1		1		1		—		—		15
Prior service cost	—		—		—		—		—		(3)
Net periodic pension cost (income)	$	(96)	$	(20)	$	(58)	$	(6)	$	4	$	—

2020
Service cost	$	376	$	89	$	96	$	15	$	8	$	33
Interest cost	432		100		133		20		6		31
Expected return on plan assets	(1,100)		(264)		(347)		(51)		(13)		(75)
Recognized net loss	269		71		86		13		2		6
Net amortization	1		1		1		—		—		15
Prior service cost	—		—		—		—		—		(3)
Net periodic pension cost (income)	$	(22)	$	(3)	$	(31)	$	(3)	$	3	$	7

2019
Service cost	$	292	$	69	$	74	$	12	$	7	$	25
Interest cost	492		114		156		22		5		36
Expected return on plan assets	(885)		(206)		(292)		(40)		(10)		(60)
Recognized net loss	120		37		44		6		1		2
Net amortization	2		—		1		—		—		14
Prior service cost	—		—		—		—		—		(3)
Net periodic pension cost (income)	$	21	$	14	$	(17)	$	—	$	3	$	14

Components of the other postretirement benefit plans' net periodic cost for the Registrants were as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2021
Service cost	$	24	$	6	$	7	$	1	$	—	$	2
Interest cost	35		9		12		1		—		4
Expected return on plan assets	(76)		(30)		(26)		(1)		1		(10)
Net amortization	2		—		2		—		—		6
Net periodic postretirement benefit cost (income)	$	(15)	$	(15)	$	(5)	$	1	$	1	$	2

2020
Service cost	$	22	$	6	$	6	$	1	$	1	$	2
Interest cost	54		13		20		2		—		7
Expected return on plan assets	(72)		(29)		(26)		(1)		—		(10)
Net amortization	1		—		2		—		—		6
Net periodic postretirement benefit cost (income)	$	5	$	(10)	$	2	$	2	$	1	$	5

2019
Service cost	$	18	$	5	$	5	$	1	$	1	$	1
Interest cost	69		16		26		3		—		9
Expected return on plan assets	(65)		(26)		(25)		(2)		—		(7)
Net amortization	—		4		1		—		—		6
Net periodic postretirement benefit cost (income)	$	22	$	(1)	$	7	$	2	$	1	$	9

Estimated pension benefit payments

At December 31, 2021, estimated benefit payments were as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Benefit Payments:
2022	$	690	$	148	$	223	$	31	$	6	$	65
2023	714		155		229		31		6		65
2024	736		159		235		32		6		64
2025	759		165		240		34		7		64
2026	780		171		245		35		7		64
2027 to 2031	4,138		921		1,275		187		42		329


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Benefit payments:
2022	$	111	$	24	$	40	$	5	$	—	$	17
2023	110		24		39		5		—		17
2024	109		24		38		5		—		18
2025	112		25		40		5		1		17
2026	112		25		40		5		1		17
2027 to 2031	552		128		199		22		3		75

Changes in the APBO and the fair value of plan assets

Changes in the APBO and the fair value of the Registrants' plan assets during the plan years ended December 31, 2021 and 2020 were as follows:


	2021
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	1,948	$	463	$	699	$	81	$	12	$	248

Service cost	24		6		7		1		—		2
Interest cost	35		9		12		1		—		4
Benefits paid	(105)		(22)		(36)		(5)		—		(18)
Actuarial (gain) loss	(54)		(16)		(26)		(2)		(1)		1
Retiree drug subsidy	1		—		—		—		—		—
Balance at end of year	1,849		440		656		76		11		237
Change in plan assets
Fair value of plan assets at beginning of year	1,158		458		427		27		—		128

Actual return on plan assets	154		55		55		4		—		18
Employer contributions	43		(2)		4		3		—		15
Benefits paid	(104)		(22)		(36)		(5)		—		(18)
Fair value of plan assets at end of year	1,251		489		450		29		—		143
Accrued asset (liability)	$	(598)	$	49	$	(206)	$	(47)	$	(11)	$	(94)


	2020
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	1,985	$	462	$	742	$	87	$	11	$	250

Service cost	22		6		6		1		1		2
Interest cost	54		13		20		2		—		7
Benefits paid	(126)		(29)		(46)		(6)		—		(17)
Actuarial (gain) loss	7		9		(26)		(3)		—		6
Retiree drug subsidy	6		2		3		—		—		—
Balance at end of year	1,948		463		699		81		12		248
Change in plan assets
Fair value of plan assets at beginning of year	1,061		413		403		26		—		115

Actual return on plan assets	145		60		50		3		—		18
Employer contributions	72		12		17		4		—		12
Benefits paid	(120)		(27)		(43)		(6)		—		(17)
Fair value of plan assets at end of year	1,158		458		427		27		—		128
Accrued liability	$	(790)	$	(5)	$	(272)	$	(54)	$	(12)	$	(120)

Summary of investment strategies and benefit plan asset fair values

A description of the major asset classes that the pension and other postretirement benefit plans are comprised of, along with the valuation methods used for fair value measurement, is provided below:


Description			Valuation Methodology
Domestic equity: A mix of large and small capitalization stocks with generally an equal distribution of value and growth attributes, managed both actively and through passive index approaches. International equity: A mix of large and small capitalization growth and value stocks with developed and emerging markets exposure, managed both actively and through fundamental indexing approaches.			Domestic and international equities such as common stocks, American depositary receipts, and real estate investment trusts that trade on public exchanges are classified as Level 1 investments and are valued at the closing price in the active market. Equity funds with unpublished prices that are comprised of publicly traded securities (such as commingled/pooled funds) are also valued at the closing price in the active market, but are classified as Level 2.
Fixed income: A mix of domestic and international bonds.			Investments in fixed income securities, including fixed income pooled funds, are generally classified as Level 2 investments and are valued based on prices reported in the market place. Additionally, the value of fixed income securities takes into consideration certain items such as broker quotes, spreads, yield curves, interest rates, and discount rates that apply to the term of a specific instrument.
Trust-owned life insurance (TOLI): Investments of taxable trusts aimed at minimizing the impact of taxes on the portfolio.			Investments in TOLI policies are classified as Level 2 investments and are valued based on the underlying investments held in the policy's separate accounts. The underlying assets are equity and fixed income pooled funds that are comprised of Level 1 and Level 2 securities.
Special situations: Investments in opportunistic strategies with the objective of diversifying and enhancing returns and exploiting short-term inefficiencies, as well as investments in promising new strategies of a longer-term nature. Real estate: Investments in traditional private market, equity-oriented investments in real properties (indirectly through pooled funds or partnerships) and in publicly traded real estate securities. Private equity: Investments in private partnerships that invest in private or public securities typically through privately-negotiated and/or structured transactions, including leveraged buyouts, venture capital, and distressed debt.			Investments in real estate, private equity, and special situations are generally classified as Net Asset Value as a Practical Expedient, since the underlying assets typically do not have publicly available observable inputs. The fund manager values the assets using various inputs and techniques depending on the nature of the underlying investments. Techniques may include purchase multiples for comparable transactions, comparable public company trading multiples, discounted cash flow analysis, prevailing market capitalization rates, recent sales of comparable investments, and independent third-party appraisals. The fair value of partnerships is determined by aggregating the value of the underlying assets less liabilities.

Fair values of plan assets

The fair values, and actual allocations relative to the target allocations, of the Southern Company system's pension plans at December 31, 2021 and 2020 are presented below.


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Equity:											51	%	53	%
Domestic equity	$	3,095	$	1,326	$	—	$	—	$	4,421
International equity	2,740		1,402		3		—		4,145
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		1,209		—		—		1,209
Mortgage- and asset-backed securities	—		10		—		—		10
Corporate bonds	—		1,752		—		—		1,752
Pooled funds	—		771		—		—		771
Cash equivalents and other	405		7		—		—		412
Real estate investments	706		—		—		2,038		2,744		14		15
Special situations	—		—		—		171		171		3		1
Private equity	—		—		—		1,590		1,590		9		9
Total	$	6,946	$	6,477	$	3	$	3,799	$	17,225	100	%	100	%




Alabama Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	743	$	319	$	—	$	—	$	1,062
International equity	659		337		1		—		997
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		291		—		—		291
Mortgage- and asset-backed securities	—		2		—		—		2
Corporate bonds	—		421		—		—		421
Pooled funds	—		186		—		—		186
Cash equivalents and other	97		2		—		—		99
Real estate investments	170		—		—		490		660		14		15
Special situations	—		—		—		41		41		3		1
Private equity	—		—		—		382		382		9		9
Total	$	1,669	$	1,558	$	1	$	913	$	4,141	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Georgia Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	972	$	417	$	—	$	—	$	1,389
International equity	861		441		1		—		1,303
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		380		—		—		380
Mortgage- and asset-backed securities	—		3		—		—		3
Corporate bonds	—		551		—		—		551
Pooled funds	—		243		—		—		243
Cash equivalents and other	127		2		—		—		129
Real estate investments	222		—		—		641		863		14		15
Special situations	—		—		—		54		54		3		1
Private equity	—		—		—		500		500		9		9
Total	$	2,182	$	2,037	$	1	$	1,195	$	5,415	100	%	100	%

Mississippi Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	142	$	61	$	—	$	—	$	203
International equity	126		64		—		—		190
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		55		—		—		55

Corporate bonds	—		80		—		—		80
Pooled funds	—		35		—		—		35
Cash equivalents and other	18		—		—		—		18
Real estate investments	32		—		—		93		125		14		15
Special situations	—		—		—		8		8		3		1
Private equity	—		—		—		73		73		9		9
Total	$	318	$	295	$	—	$	174	$	787	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	38	$	16	$	—	$	—	$	54
International equity	34		17		—		—		51
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		15		—		—		15

Corporate bonds	—		22		—		—		22
Pooled funds	—		10		—		—		10
Cash equivalents and other	5		—		—		—		5
Real estate investments	9		—		—		25		34		14		15
Special situations	—		—		—		2		2		3		1
Private equity	—		—		—		20		20		9		9
Total	$	86	$	80	$	—	$	47	$	213	100%		100	%

Southern Company Gas
Assets:
Equity:											51	%	53	%
Domestic equity	$	223	$	96	$	—	$	—	$	319
International equity	197		101		—		—		298
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		87		—		—		87
Mortgage- and asset-backed securities	—		1		—		—		1
Corporate bonds	—		126		—		—		126
Pooled funds	—		56		—		—		56
Cash equivalents and other	29		—		—		—		29
Real estate investments	51		—		—		147		198		14		15
Special situations	—		—		—		12		12		3		1
Private equity	—		—		—		115		115		9		9
Total	$	500	$	467	$	—	$	274	$	1,241	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2020:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Equity:									51	%	56	%
Domestic equity	$	2,852	$	1,247	$	—	$	4,099
International equity	2,660		1,497		—		4,157
Fixed income:									23		23
U.S. Treasury, government, and agency bonds	—		951		—		951
Mortgage- and asset-backed securities	—		9		—		9
Corporate bonds	—		1,673		—		1,673
Pooled funds	—		772		—		772
Cash equivalents and other	356		5		—		361
Real estate investments	542		—		1,596		2,138		14		13
Special situations	—		—		166		166		3		1
Private equity	—		—		1,104		1,104		9		7
Total	$	6,410	$	6,154	$	2,866	$	15,430	100	%	100	%

Alabama Power
Assets:
Equity:									51	%	56	%
Domestic equity	$	685	$	299	$	—	$	984
International equity	638		359		—		997
Fixed income:									23		23
U.S. Treasury, government, and agency bonds	—		228		—		228
Mortgage- and asset-backed securities	—		2		—		2
Corporate bonds	—		401		—		401
Pooled funds	—		185		—		185
Cash equivalents and other	85		1		—		86
Real estate investments	130		—		382		512		14		13
Special situations	—		—		40		40		3		1
Private equity	—		—		264		264		9		7
Total	$	1,538	$	1,475	$	686	$	3,699	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2020:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Georgia Power
Assets:
Equity:									51	%	56	%
Domestic equity	$	899	$	393	$	—	$	1,292
International equity	839		472		—		1,311
Fixed income:									23		23
U.S. Treasury, government, and agency bonds	—		300		—		300
Mortgage- and asset-backed securities	—		3		—		3
Corporate bonds	—		527		—		527
Pooled funds	—		243		—		243
Cash equivalents and other	112		1		—		113
Real estate investments	171		—		503		674		14		13
Special situations	—		—		53		53		3		1
Private equity	—		—		348		348		9		7
Total	$	2,021	$	1,939	$	904	$	4,864	100	%	100	%

Mississippi Power
Assets:
Equity:									51	%	56	%
Domestic equity	$	131	$	57	$	—	$	188
International equity	122		68		—		190
Fixed income:									23		23
U.S. Treasury, government, and agency bonds	—		43		—		43

Corporate bonds	—		76		—		76
Pooled funds	—		35		—		35
Cash equivalents and other	16		—		—		16
Real estate investments	25		—		73		98		14		13
Special situations	—		—		8		8		3		1
Private equity	—		—		50		50		9		7
Total	$	294	$	279	$	131	$	704	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2020:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Southern Power
Assets:
Equity:									51	%	56	%
Domestic equity	$	35	$	15	$	—	$	50
International equity	32		19		—		51
Fixed income:									23		23
U.S. Treasury, government, and agency bonds	—		12		—		12
Corporate bonds	—		20		—		20
Pooled funds	—		9		—		9
Cash equivalents and other	4		—		—		4
Real estate investments	7		—		19		26		14		13
Special situations	—		—		2		2		3		1
Private equity	—		—		13		13		9		7
Total	$	78	$	75	$	34	$	187	100	%	100	%

Southern Company Gas
Assets:
Equity:									51	%	56	%
Domestic equity	$	209	$	91	$	—	$	300
International equity	195		109		—		304
Fixed income:									23		23
U.S. Treasury, government, and agency bonds	—		69		—		69
Mortgage- and asset-backed securities	—		1		—		1
Corporate bonds	—		122		—		122
Pooled funds	—		56		—		56
Cash equivalents and other	26		—		—		26
Real estate investments	40		—		117		157		14		13
Special situations	—		—		12		12		3		1
Private equity	—		—		81		81		9		7
Total	$	470	$	448	$	210	$	1,128	100	%	100	%

The fair values, and actual allocations relative to the target allocations, of the applicable Registrants' other postretirement benefit plan assets at December 31, 2021 and 2020 are presented below.


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient		Total		Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(NAV)
	(in millions)
Southern Company
Assets:
Equity:									64	%	66	%
Domestic equity	$	123	$	112	$	—	$	235
International equity	73		99		—		172
Fixed income:									27		25
U.S. Treasury, government, and agency bonds	—		37		—		37

Corporate bonds	—		50		—		50
Pooled funds	—		90		—		90
Cash equivalents and other	14		—		—		14
Trust-owned life insurance	—		530		—		530
Real estate investments	20		—		54		74		5		6
Special situations	—		—		5		5		1		—
Private equity	—		—		42		42		3		3
Total	$	230	$	918	$	101	$	1,249	100	%	100	%

Alabama Power
Assets:
Equity:									71	%	69	%
Domestic equity	$	26	$	11	$	—	$	37
International equity	23		12		—		35
Fixed income:									21		21
U.S. Treasury, government, and agency bonds	—		10		—		10

Corporate bonds	—		18		—		18
Pooled funds	—		6		—		6
Cash equivalents and other	3		—		—		3
Trust-owned life insurance	—		341		—		341
Real estate investments	6		—		17		23		4		7
Special situations	—		—		2		2		1		—
Private equity	—		—		13		13		3		3
Total	$	58	$	398	$	32	$	488	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient		Total		Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(NAV)
	(in millions)
Georgia Power
Assets:
Equity:									60	%	62	%
Domestic equity	$	65	$	13	$	—	$	78
International equity	22		50		—		72
Fixed income:									33		30
U.S. Treasury, government, and agency bonds	—		9		—		9

Corporate bonds	—		14		—		14
Pooled funds	—		46		—		46
Cash equivalents and other	5		—		—		5
Trust-owned life insurance	—		189		—		189
Real estate investments	7		—		16		23		4		5
Special situations	—		—		1		1		1		—
Private equity	—		—		13		13		2		3
Total	$	99	$	321	$	30	$	450	100	%	100	%

Mississippi Power
Assets:
Equity:									43	%	44	%
Domestic equity	$	4	$	2	$	—	$	6
International equity	4		2		—		6
Fixed income:									36		34
U.S. Treasury, government, and agency bonds	—		5		—		5
Corporate bonds	—		2		—		2
Pooled funds	—		1		—		1
Cash equivalents and other	1		—		—		1

Real estate investments	1		—		3		4		11		13
Special situations	—		—		—		—		2		1
Private equity	—		—		2		2		8		8
Total	$	10	$	12	$	5	$	27	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient		Total		Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(NAV)
	(in millions)
Southern Company Gas
Assets:
Equity:									72	%	73	%
Domestic equity	$	3	$	76	$	—	$	79
International equity	2		24		—		26
Fixed income:									26		24
U.S. Treasury, government, and agency bonds	—		1		—		1

Corporate bonds	—		1		—		1
Pooled funds	—		30		—		30
Cash equivalents and other	2		—		—		2

Real estate investments	1		—		2		3		1		2

Private equity	—		—		1		1		1		1
Total	$	8	$	132	$	3	$	143	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2020:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Equity:									63	%	66	%
Domestic equity	$	113	$	98	$	—	$	211
International equity	71		102		—		173
Fixed income:									28		27
U.S. Treasury, government, and agency bonds	—		32		—		32

Corporate bonds	—		44		—		44
Pooled funds	—		86		—		86
Cash equivalents and other	15		—		—		15
Trust-owned life insurance	—		508		—		508
Real estate investments	15		—		42		57		5		5
Special situations	—		—		4		4		1		—
Private equity	—		—		29		29		3		2
Total	$	214	$	870	$	75	$	1,159	100	%	100	%

Alabama Power
Assets:
Equity:									68	%	69	%
Domestic equity	$	26	$	11	$	—	$	37
International equity	23		13		—		36
Fixed income:									24		25
U.S. Treasury, government, and agency bonds	—		11		—		11

Corporate bonds	—		14		—		14
Pooled funds	—		7		—		7
Cash equivalents and other	5		—		—		5
Trust-owned life insurance	—		321		—		321
Real estate investments	5		—		13		18		4		4
Special situations	—		—		1		1		1		—
Private equity	—		—		9		9		3		2
Total	$	59	$	377	$	23	$	459	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2020:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Georgia Power
Assets:
Equity:									60	%	64	%
Domestic equity	$	58	$	10	$	—	$	68
International equity	21		50		—		71
Fixed income:									33		30
U.S. Treasury, government, and agency bonds	—		8		—		8

Corporate bonds	—		13		—		13
Pooled funds	—		46		—		46
Cash equivalents and other	5		—		—		5
Trust-owned life insurance	—		188		—		188
Real estate investments	5		—		13		18		4		4
Special situations	—		—		1		1		1		—
Private equity	—		—		9		9		2		2
Total	$	89	$	315	$	23	$	427	100	%	100	%

Mississippi Power
Assets:
Equity:									43	%	46	%
Domestic equity	$	4	$	2	$	—	$	6
International equity	4		2		—		6
Fixed income:									37		36
U.S. Treasury, government, and agency bonds	—		5		—		5

Corporate bonds	—		2		—		2
Pooled funds	—		1		—		1
Cash equivalents and other	1		—		—		1
Real estate investments	1		—		2		3		11		11
Special situations	—		—		—		—		2		1
Private equity	—		—		2		2		7		6
Total	$	10	$	12	$	4	$	26	100	%	100	%


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2020:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Southern Company Gas
Assets:
Equity:									72	%	76	%
Domestic equity	$	2	$	66	$	—	$	68
International equity	2		25		—		27
Fixed income:									26		22
U.S. Treasury, government, and agency bonds	—		1		—		1

Corporate bonds	—		1		—		1
Pooled funds	—		25		—		25
Cash equivalents and other	1		—		—		1

Real estate investments	—		—		1		1		1		1

Private equity	—		—		1		1		1		1
Total	$	5	$	118	$	2	$	125	100	%	100	%

Total matching contributions

Total matching contributions made to the plans for 2021, 2020, and 2019 were as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2021	$	119	$	26	$	28	$	5	$	2	$	16
2020	120		26		29		5		2		16
2019	113		25		27		4		2		15