Introduction (Tables)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Goodwill

Goodwill at September 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 September 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	$	211	$	(169)	$	42	$	212	$	(162)	$	50
Trade names	63		(50)		13		64		(44)		20
PPA fair value adjustments	390		(143)		247		390		(129)		261
Other	5		(5)		—		5		(5)		—
Total subject to amortization	$	669	$	(367)	$	302	$	671	$	(340)	$	331
Not subject to amortization:
FCC licenses	75		—		75		75		—		75
Total other intangible assets	$	744	$	(367)	$	377	$	746	$	(340)	$	406
Southern Power(*)
PPA fair value adjustments	$	390	$	(143)	$	247	$	390	$	(129)	$	261
Southern Company Gas(*)
Gas marketing services
Customer relationships	$	156	$	(143)	$	13	$	156	$	(139)	$	17
Trade names	26		(20)		6		26		(17)		9
Total other intangible assets	$	182	$	(163)	$	19	$	182	$	(156)	$	26

(*) All subject to amortization.

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:

	At September 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	$	211	$	(169)	$	42	$	212	$	(162)	$	50
Trade names	63		(50)		13		64		(44)		20
PPA fair value adjustments	390		(143)		247		390		(129)		261
Other	5		(5)		—		5		(5)		—
Total subject to amortization	$	669	$	(367)	$	302	$	671	$	(340)	$	331
Not subject to amortization:
FCC licenses	75		—		75		75		—		75
Total other intangible assets	$	744	$	(367)	$	377	$	746	$	(340)	$	406
Southern Power(*)
PPA fair value adjustments	$	390	$	(143)	$	247	$	390	$	(129)	$	261
Southern Company Gas(*)
Gas marketing services
Customer relationships	$	156	$	(143)	$	13	$	156	$	(139)	$	17
Trade names	26		(20)		6		26		(17)		9
Total other intangible assets	$	182	$	(163)	$	19	$	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		Nine Months Ended		Three Months Ended		Nine Months Ended
	September 30, 2023				September 30, 2022
	(in millions)
Southern Company(a)	$	10	$	27	$	11	$	30
Southern Power(b)	5		14		5		15
Southern Company Gas	3		7		4		9

(a)Includes $5 million, $14 million, $5 million, and $15 million for the three and nine months ended September 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		Alabama Power		Georgia Power		Southern Power		Southern Company Gas
	(in millions)
At September 30, 2023
Cash and cash equivalents	$	1,676	$	621	$	173	$	236	$	397
Restricted cash(a):
Other current assets	176		108		48		18		2
Other deferred charges and assets	38		—		35		3		—
Total cash, cash equivalents, and restricted cash(b)	$	1,890	$	729	$	256	$	257	$	399
At December 31, 2022
Cash and cash equivalents	$	1,917	$	687	$	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	$	687	$	480	$	133	$	83

(a)For Alabama Power, balance at September 30, 2023 reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2023. For Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects $18 million at September 30, 2023 resulting from an arbitration interim award held to fund future replacement costs and $3 million at both September 30, 2023 and December 31, 2022 held to fund estimated construction completion costs at the Deuel Harvest wind facility. See Note (C) under "General Litigation Matters – Southern Power" for additional information. 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		Alabama Power		Georgia Power		Southern Power		Southern Company Gas
	(in millions)
At September 30, 2023
Cash and cash equivalents	$	1,676	$	621	$	173	$	236	$	397
Restricted cash(a):
Other current assets	176		108		48		18		2
Other deferred charges and assets	38		—		35		3		—
Total cash, cash equivalents, and restricted cash(b)	$	1,890	$	729	$	256	$	257	$	399
At December 31, 2022
Cash and cash equivalents	$	1,917	$	687	$	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	$	687	$	480	$	133	$	83

(a)For Alabama Power, balance at September 30, 2023 reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2023. For Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects $18 million at September 30, 2023 resulting from an arbitration interim award held to fund future replacement costs and $3 million at both September 30, 2023 and December 31, 2022 held to fund estimated construction completion costs at the Deuel Harvest wind facility. See Note (C) under "General Litigation Matters – Southern Power" for additional information. 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 nine months ended September 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	42		9		24		9
Weather-related damages	(242)		(35)		(204)		(3)
Balance at September 30, 2023	$	16	$	71	$	(97)	$	42

(*)See Note (B) under "Georgia Power – Storm Damage Recovery" for additional information.

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