Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Assets and Liabilities Measured at Fair Value

At March 31, 2024, 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 March 31, 2024	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)	$	3	$	45	$	—	$	—	$	48


Investments in trusts:(b)
Domestic equity	789		234		—		—		1,023
Foreign equity	155		180		—		—		335
U.S. Treasury and government agency securities	—		373		—		—		373
Municipal bonds	—		44		—		—		44
Pooled funds – fixed income	—		7		—		—		7
Corporate bonds	—		425		—		—		425
Mortgage and asset backed securities	—		93		—		—		93
Private equity	—		—		—		170		170
Cash and cash equivalents	1		—		—		—		1
Other	44		4		—		9		57
Cash equivalents and restricted cash	161		21		—		—		182
Other investments	9		24		8		—		41
Total	$	1,162	$	1,450	$	8	$	179	$	2,799
Liabilities:
Energy-related derivatives(a)	$	38	$	292	$	—	$	—	$	330
Interest rate derivatives	—		295		—		—		295
Foreign currency derivatives	—		166		—		—		166
Contingent consideration	3		—		16		—		19
Other	—		13		—		—		13
Total	$	41	$	766	$	16	$	—	$	823


	Fair Value Measurements Using:
At March 31, 2024	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	$	—	$	12	$	—	$	—	$	12

Nuclear decommissioning trusts:(b)
Domestic equity	438		226		—		—		664
Foreign equity	155		—		—		—		155
U.S. Treasury and government agency securities	—		22		—		—		22
Municipal bonds	—		1		—		—		1
Corporate bonds	—		258		—		—		258
Mortgage and asset backed securities	—		28		—		—		28
Private equity	—		—		—		170		170
Other	19		1		—		9		29
Cash equivalents and restricted cash	46		21		—		—		67
Other investments	—		24		—		—		24
Total	$	658	$	593	$	—	$	179	$	1,430
Liabilities:
Energy-related derivatives	$	—	$	101	$	—	$	—	$	101



Georgia Power
Assets:
Energy-related derivatives	$	—	$	13	$	—	$	—	$	13

Nuclear decommissioning trusts:(b)
Domestic equity	351		1		—		—		352
Foreign equity	—		179		—		—		179
U.S. Treasury and government agency securities	—		351		—		—		351
Municipal bonds	—		43		—		—		43
Corporate bonds	—		167		—		—		167
Mortgage and asset backed securities	—		65		—		—		65
Other	25		3		—		—		28

Total	$	376	$	822	$	—	$	—	$	1,198
Liabilities:
Energy-related derivatives	$	—	$	115	$	—	$	—	$	115


	Fair Value Measurements Using:
At March 31, 2024	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	$	—	$	13	$	—	$	—	$	13



Liabilities:
Energy-related derivatives	$	—	$	60	$	—	$	—	$	60



Southern Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3



Liabilities:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5
Foreign currency derivatives	—		36		—		—		36
Contingent consideration	3		—		16		—		19
Other	—		13		—		—		13
Total	$	3	$	54	$	16	$	—	$	73

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	3	$	4	$	—	$	—	$	7

Non-qualified deferred compensation trusts:
Domestic equity			7		—		—		7
Foreign equity			1		—		—		1
Pooled funds – fixed income			7		—		—		7
Cash and cash equivalents	1		—		—		—		1


Total	$	4	$	19	$	—	$	—	$	23
Liabilities:
Energy-related derivatives(a)	$	38	$	11	$	—	$	—	$	49
Interest rate derivatives	—		83		—		—		83

Total	$	38	$	94	$	—	$	—	$	132

(a)Excludes cash collateral of $54 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.

Schedule of Increase (Decrease) In Fair Value Of Funds

The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.


	Three Months Ended
Fair value increases (decreases)		March 31, 2024		March 31, 2023
		(in millions)
Southern Company		$	103	$	102
Alabama Power		68		45
Georgia Power		35		57

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

At March 31, 2024, 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	$	61.0	$	11.2	$	17.8	$	1.8	$	2.7	$	7.8
Fair value	55.9		9.9		16.2		1.6		2.6		6.7

(*)The carrying amount of Southern Company Gas' long-term debt includes fair value adjustments from 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.