Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Assets and Liabilities Measured at Fair Value

At June 30, 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 June 30, 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)	$	5	$	62	$	—	$	—	$	67
Interest rate derivatives	—		1		—		—		1

Investments in trusts:(b)
Domestic equity	794		245		—		—		1,039
Foreign equity	155		180		—		—		335
U.S. Treasury and government agency securities	—		362		—		—		362
Municipal bonds	—		48		—		—		48
Pooled funds – fixed income	—		7		—		—		7
Corporate bonds	—		434		—		—		434
Mortgage and asset backed securities	—		106		—		—		106
Private equity	—		—		—		178		178
Cash and cash equivalents	1		—		—		—		1
Other	40		4		—		9		53
Cash equivalents and restricted cash	447		17		—		—		464
Other investments	9		24		8		—		41
Total	$	1,451	$	1,490	$	8	$	187	$	3,136
Liabilities:
Energy-related derivatives(a)	$	17	$	213	$	—	$	—	$	230
Interest rate derivatives	—		295		—		—		295
Foreign currency derivatives	—		178		—		—		178
Contingent consideration	3		—		16		—		19
Other	—		13		9		—		22
Total	$	20	$	699	$	25	$	—	$	744


	Fair Value Measurements Using:
At June 30, 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	$	—	$	22	$	—	$	—	$	22

Nuclear decommissioning trusts:(b)
Domestic equity	433		237		—		—		670
Foreign equity	155		—		—		—		155
U.S. Treasury and government agency securities	—		22		—		—		22
Municipal bonds	—		1		—		—		1
Corporate bonds	—		267		—		—		267
Mortgage and asset backed securities	—		28		—		—		28
Private equity	—		—		—		178		178
Other	8		1		—		9		18
Cash equivalents and restricted cash	13		17		—		—		30
Other investments	—		24		—		—		24
Total	$	609	$	619	$	—	$	187	$	1,415
Liabilities:
Energy-related derivatives	$	—	$	73	$	—	$	—	$	73



Georgia Power
Assets:
Energy-related derivatives	$	—	$	14	$	—	$	—	$	14

Nuclear decommissioning trusts:(b)
Domestic equity	361		1		—		—		362
Foreign equity	—		179		—		—		179
U.S. Treasury and government agency securities	—		340		—		—		340
Municipal bonds	—		47		—		—		47
Corporate bonds	—		167		—		—		167
Mortgage and asset backed securities	—		78		—		—		78
Other	32		3		—		—		35

Total	$	393	$	829	$	—	$	—	$	1,222
Liabilities:
Energy-related derivatives	$	—	$	78	$	—	$	—	$	78


	Fair Value Measurements Using:
At June 30, 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	$	—	$	16	$	—	$	—	$	16



Liabilities:
Energy-related derivatives	$	—	$	47	$	—	$	—	$	47



Southern Power
Assets:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4



Liabilities:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Foreign currency derivatives	—		30		—		—		30
Contingent consideration	3		—		16		—		19
Other	—		13		9		—		22
Total	$	3	$	46	$	25	$	—	$	74

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	5	$	6	$	—	$	—	$	11
Interest rate derivatives	—		1		—		—		1
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	$	6	$	22	$	—	$	—	$	28
Liabilities:
Energy-related derivatives(a)	$	17	$	12	$	—	$	—	$	29
Interest rate derivatives	—		89		—		—		89

Total	$	17	$	101	$	—	$	—	$	118

(a)Excludes cash collateral of $24 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				Six Months Ended
Fair value increases (decreases)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in millions)
Southern Company	$	32	$	132	$	135	$	228
Alabama Power	19		58		87		103
Georgia Power	13		74		48		125

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

At June 30, 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	$	62.4	$	11.2	$	17.8	$	1.7	$	2.7	$	7.8
Fair value	56.7		9.7		16.0		1.5		2.5		6.6

(*)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.