Introduction (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Goodwill

Goodwill at June 30, 2023 and December 31, 2022 was as follows:

	Goodwill
	(in millions)
Southern Company	$	5,161
Southern Company Gas:
Gas distribution operations	$	4,034
Gas marketing services	981
Southern Company Gas total	$	5,015

Schedule of Other Intangible Assets, Indefinite-Lived

Other intangible assets were as follows:

	At June 30, 2023						At December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net
	(in millions)						(in millions)
Southern Company
Subject to amortization:
Customer relationships	$	212	$	(167)	$	45	$	212	$	(162)	$	50
Trade names	64		(49)		15		64		(44)		20
PPA fair value adjustments	390		(139)		251		390		(129)		261
Other	3		(3)		—		5		(5)		—
Total subject to amortization	$	669	$	(358)	$	311	$	671	$	(340)	$	331
Not subject to amortization:
FCC licenses	75		—		75		75		—		75
Total other intangible assets	$	744	$	(358)	$	386	$	746	$	(340)	$	406
Southern Power(*)
PPA fair value adjustments	$	390	$	(139)	$	251	$	390	$	(129)	$	261
Southern Company Gas(*)
Gas marketing services
Customer relationships	$	156	$	(142)	$	14	$	156	$	(139)	$	17
Trade names	26		(19)		7		26		(17)		9
Total other intangible assets	$	182	$	(161)	$	21	$	182	$	(156)	$	26

(*) All subject to amortization.

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:

	At June 30, 2023						At December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net
	(in millions)						(in millions)
Southern Company
Subject to amortization:
Customer relationships	$	212	$	(167)	$	45	$	212	$	(162)	$	50
Trade names	64		(49)		15		64		(44)		20
PPA fair value adjustments	390		(139)		251		390		(129)		261
Other	3		(3)		—		5		(5)		—
Total subject to amortization	$	669	$	(358)	$	311	$	671	$	(340)	$	331
Not subject to amortization:
FCC licenses	75		—		75		75		—		75
Total other intangible assets	$	744	$	(358)	$	386	$	746	$	(340)	$	406
Southern Power(*)
PPA fair value adjustments	$	390	$	(139)	$	251	$	390	$	(129)	$	261
Southern Company Gas(*)
Gas marketing services
Customer relationships	$	156	$	(142)	$	14	$	156	$	(139)	$	17
Trade names	26		(19)		7		26		(17)		9
Total other intangible assets	$	182	$	(161)	$	21	$	182	$	(156)	$	26

(*) All subject to amortization.

Schedule of Amortization of Other Intangible Assets

Amortization associated with other intangible assets was as follows:

	Three Months Ended		Six Months Ended		Three Months Ended		Six Months Ended
	June 30, 2023				June 30, 2022
	(in millions)
Southern Company(a)	$	9	$	18	$	9	$	19
Southern Power(b)	5		10		5		10
Southern Company Gas	2		5		2		5

(a)Includes $5 million, $10 million, $5 million, and $10 million for the three and six months ended June 30, 2023 and 2022, respectively, recorded as a reduction to operating revenues.

(b)Recorded as a reduction to operating revenues.

Schedule of Restrictions on Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants:

	Southern Company		Georgia Power		Southern Power		Southern Company Gas
	(in millions)
At June 30, 2023
Cash and cash equivalents	$	2,123	$	44	$	169	$	242
Restricted cash(a):
Other current assets	83		80		—		3
Other deferred charges and assets	39		36		3		—
Total cash, cash equivalents, and restricted cash(b)	$	2,244	$	160	$	172	$	244
At December 31, 2022
Cash and cash equivalents	$	1,917	$	364	$	131	$	81
Restricted cash(a):
Other current assets	62		60		—		2
Other deferred charges and assets	58		56		3		—
Total cash, cash equivalents, and restricted cash(b)	$	2,037	$	480	$	133	$	83

(a)For Georgia Power, reflects $116 million at both June 30, 2023 and December 31, 2022 related to proceeds from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects $3 million at both June 30, 2023 and December 31, 2022 held to fund estimated construction completion costs at the Deuel Harvest wind facility. For Southern Company Gas, reflects collateral for workers' compensation, life insurance, and long-term disability insurance.

(b)Total may not add due to rounding.

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants:

	Southern Company		Georgia Power		Southern Power		Southern Company Gas
	(in millions)
At June 30, 2023
Cash and cash equivalents	$	2,123	$	44	$	169	$	242
Restricted cash(a):
Other current assets	83		80		—		3
Other deferred charges and assets	39		36		3		—
Total cash, cash equivalents, and restricted cash(b)	$	2,244	$	160	$	172	$	244
At December 31, 2022
Cash and cash equivalents	$	1,917	$	364	$	131	$	81
Restricted cash(a):
Other current assets	62		60		—		2
Other deferred charges and assets	58		56		3		—
Total cash, cash equivalents, and restricted cash(b)	$	2,037	$	480	$	133	$	83

(a)For Georgia Power, reflects $116 million at both June 30, 2023 and December 31, 2022 related to proceeds from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects $3 million at both June 30, 2023 and December 31, 2022 held to fund estimated construction completion costs at the Deuel Harvest wind facility. For Southern Company Gas, reflects collateral for workers' compensation, life insurance, and long-term disability insurance.

(b)Total may not add due to rounding.

Schedule of Storm Damage Reserve Activity

Storm damage reserve activity for the traditional electric operating companies during the six months ended June 30, 2023 was as follows:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power
	(in millions)
Balance at December 31, 2022	$	216	$	97	$	83	$	36
Accrual	28		6		16		6
Weather-related damages	(85)		(24)		(58)		(3)
Balance at June 30, 2023	$	159	$	79	$	41	$	39

Schedule of Asset Retirement Obligations

The estimated costs of decommissioning Plant Farley based on Alabama Power's June 2023 site study are as follows:

	Plant Farley
Decommissioning periods:
Beginning year	2037
Completion year	2087
	(in millions)
Site study costs:
Radiated structures	$	1,402
Spent fuel management	513
Non-radiated structures	133
Total site study costs	$	2,048