Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Assets and Liabilities Measured at Fair Value

At June 30, 2022, assets and liabilities measured at fair value on a recurring basis during the period, together with their associated level of the fair value hierarchy, were as follows:


	Fair Value Measurements Using:
At June 30, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives(a)	$	43	$	408	$	—	$	—	$	451


Investments in trusts:(b)(c)
Domestic equity	643		168		—		—		811
Foreign equity	122		144		—		—		266
U.S. Treasury and government agency securities	—		273		—		—		273
Municipal bonds	—		56		—		—		56
Pooled funds – fixed income	—		9		—		—		9
Corporate bonds	1		445		—		—		446
Mortgage and asset backed securities	—		89		—		—		89
Private equity	—		—		—		164		164
Cash and cash equivalents	3		—		—		—		3
Other	36		17		—		—		53
Cash equivalents	1,058		10		—		—		1,068
Other investments	9		27		—		—		36
Total	$	1,915	$	1,646	$	—	$	164	$	3,725
Liabilities:
Energy-related derivatives(a)	$	16	$	88	$	—	$	—	$	104
Interest rate derivatives	—		214		—		—		214
Foreign currency derivatives	—		228		—		—		228
Contingent consideration	—		—		14		—		14
Other	—		13		—		—		13
Total	$	16	$	543	$	14	$	—	$	573


	Fair Value Measurements Using:
At June 30, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Alabama Power
Assets:
Energy-related derivatives	$	—	$	131	$	—	$	—	$	131

Nuclear decommissioning trusts:(b)
Domestic equity	391		159		—		—		550
Foreign equity	122		—		—		—		122
U.S. Treasury and government agency securities	—		17		—		—		17
Municipal bonds	—		2		—		—		2
Corporate bonds	1		227		—		—		228
Mortgage and asset backed securities	—		20		—		—		20
Private equity	—		—		—		164		164
Other	20		—		—		—		20
Cash equivalents	677		10		—		—		687
Other investments	—		27		—		—		27
Total	$	1,211	$	593	$	—	$	164	$	1,968
Liabilities:
Energy-related derivatives	$	—	$	23	$	—	$	—	$	23



Georgia Power
Assets:
Energy-related derivatives	$	—	$	137	$	—	$	—	$	137

Nuclear decommissioning trusts:(b)(c)
Domestic equity	252		1		—		—		253
Foreign equity	—		142		—		—		142
U.S. Treasury and government agency securities	—		256		—		—		256
Municipal bonds	—		54		—		—		54
Corporate bonds	—		218		—		—		218
Mortgage and asset backed securities	—		69		—		—		69
Other	16		17		—		—		33
Cash equivalents	98		—		—		—		98
Total	$	366	$	894	$	—	$	—	$	1,260
Liabilities:
Energy-related derivatives	$	—	$	29	$	—	$	—	$	29


	Fair Value Measurements Using:
At June 30, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	121	$	—	$	—	$	121



Liabilities:
Energy-related derivatives	$	—	$	14	$	—	$	—	$	14



Southern Power
Assets:
Energy-related derivatives	$	—	$	6	$	—	$	—	$	6



Liabilities:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1
Foreign currency derivatives	—		45		—		—		45
Contingent consideration	—		—		14		—		14
Other	—		13		—		—		13
Total	$	—	$	59	$	14	$	—	$	73

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	43	$	13	$	—	$	—	$	56

Non-qualified deferred compensation trusts:
Domestic equity	—		8		—		—		8
Foreign equity	—		2		—		—		2
Pooled funds – fixed income	—		9		—		—		9
Cash equivalents	3		—		—		—		3
Cash equivalents and restricted cash	192		—		—		—		192

Total	$	238	$	32	$	—	$	—	$	270
Liabilities:
Energy-related derivatives(a)	$	16	$	20	$	—	$	—	$	36
Interest rate derivatives	—		62		—		—		62

Total	$	16	$	82	$	—	$	—	$	98

(a)Excludes cash collateral of $13 million.

(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information.

(c)Includes investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. At June 30, 2022, approximately $65 million of the fair market value of Georgia Power's nuclear decommissioning trust funds' securities were on loan to creditors under the funds' managers' securities lending program. See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information.

Schedule of Increase (Decrease) In Fair Value Of Funds

The fair value of the funds, including reinvested interest and dividends and excluding the funds' expenses, increased (decreased) by the amounts shown in the table below for the three and six months ended June 30, 2022 and 2021. The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.


Fair value increases (decreases)	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021		Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
	(in millions)
Southern Company	$	(230)	$	125	$	(380)	$	164
Alabama Power	(125)		77		(192)		118
Georgia Power	(105)		48		(188)		46

Schedule of Financial Instruments for which Carrying Amount Did Not Equal Fair Value

At June 30, 2022, other financial instruments for which the carrying amount did not equal fair value were as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas(*)
	(in billions)
Long-term debt, including securities due within one year:
Carrying amount	$	52.0	$	9.8	$	14.6	$	1.5	$	3.0	$	6.8
Fair value	48.0		9.0		13.7		1.3		2.9		6.2

(*)The long-term debt of Southern Company Gas is recorded at amortized cost, including the fair value adjustments at the effective date of the 2016 merger with Southern Company. Southern Company Gas amortizes the fair value adjustments over the remaining lives of the respective bonds, the latest being through 2043.