Introduction (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Goodwill

Goodwill at both September 30, 2024 and December 31, 2023 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, 2024						At December 31, 2023
	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	$	(179)	$	33	$	212	$	(172)	$	40
Trade names	64		(58)		6		64		(53)		11
PPA fair value adjustments	390		(163)		227		390		(148)		242
Other	3		(3)		—		3		(3)		—
Total subject to amortization	$	669	$	(403)	$	266	$	669	$	(376)	$	293
Not subject to amortization:
FCC licenses	75		—		75		75		—		75
Total other intangible assets	$	744	$	(403)	$	341	$	744	$	(376)	$	368
Southern Power(*)
PPA fair value adjustments	$	390	$	(163)	$	227	$	390	$	(148)	$	242
Southern Company Gas(*)
Gas marketing services
Customer relationships	$	156	$	(149)	$	7	$	156	$	(145)	$	11
Trade names	26		(22)		4		26		(21)		5
Total other intangible assets	$	182	$	(171)	$	11	$	182	$	(166)	$	16

(*) All subject to amortization.

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:

	At September 30, 2024						At December 31, 2023
	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	$	(179)	$	33	$	212	$	(172)	$	40
Trade names	64		(58)		6		64		(53)		11
PPA fair value adjustments	390		(163)		227		390		(148)		242
Other	3		(3)		—		3		(3)		—
Total subject to amortization	$	669	$	(403)	$	266	$	669	$	(376)	$	293
Not subject to amortization:
FCC licenses	75		—		75		75		—		75
Total other intangible assets	$	744	$	(403)	$	341	$	744	$	(376)	$	368
Southern Power(*)
PPA fair value adjustments	$	390	$	(163)	$	227	$	390	$	(148)	$	242
Southern Company Gas(*)
Gas marketing services
Customer relationships	$	156	$	(149)	$	7	$	156	$	(145)	$	11
Trade names	26		(22)		4		26		(21)		5
Total other intangible assets	$	182	$	(171)	$	11	$	182	$	(166)	$	16

(*) All subject to amortization.

Schedule of Amortization of Other Intangible Assets

Amortization associated with other intangible assets was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in millions)
Southern Company(a)	$	9	$	10	$	27	$	27
Southern Power(b)	5		5		15		14
Southern Company Gas	2		3		5		7

(a)Includes $5 million for the three months ended September 30, 2024 and 2023 and $15 million and $14 million for the nine months ended September 30, 2024 and 2023, 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, 2024
Cash and cash equivalents	$	1,018	$	476	$	43	$	179	$	44
Restricted cash(a):
Other current assets	31		—		14		16		1
Other deferred charges and assets	7		—		7		—		—
Total cash, cash equivalents, and restricted cash(b)	$	1,055	$	476	$	64	$	195	$	45
At December 31, 2023
Cash and cash equivalents	$	748	$	324	$	9	$	124	$	33
Restricted cash(a):
Other current assets	141		85		37		17		2
Other deferred charges and assets	31		—		29		3		—
Total cash, cash equivalents, and restricted cash(b)	$	921	$	409	$	75	$	144	$	35

(a)For Alabama Power and Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2023 and 2022, respectively. For Southern Power, reflects $16 million and $17 million at September 30, 2024 and December 31, 2023, respectively, resulting from an arbitration award held to fund future replacement costs and $3 million at December 31, 2023 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 related to the arbitration award. 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, 2024
Cash and cash equivalents	$	1,018	$	476	$	43	$	179	$	44
Restricted cash(a):
Other current assets	31		—		14		16		1
Other deferred charges and assets	7		—		7		—		—
Total cash, cash equivalents, and restricted cash(b)	$	1,055	$	476	$	64	$	195	$	45
At December 31, 2023
Cash and cash equivalents	$	748	$	324	$	9	$	124	$	33
Restricted cash(a):
Other current assets	141		85		37		17		2
Other deferred charges and assets	31		—		29		3		—
Total cash, cash equivalents, and restricted cash(b)	$	921	$	409	$	75	$	144	$	35

(a)For Alabama Power and Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2023 and 2022, respectively. For Southern Power, reflects $16 million and $17 million at September 30, 2024 and December 31, 2023, respectively, resulting from an arbitration award held to fund future replacement costs and $3 million at December 31, 2023 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 related to the arbitration award. 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, 2024 was as follows:

	Southern Company(*)		Alabama Power		Georgia Power(*)		Mississippi Power
	(in millions)
Balance at December 31, 2023	$	66	$	76	$	(54)	$	44
Accrual	45		10		24		11
Weather-related damages	(1,239)		(33)		(1,201)		(5)
Balance at September 30, 2024	$	(1,128)	$	53	$	(1,231)	$	50

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

Schedule of Estimated Cost of Decommissioning

The estimated costs of decommissioning Plant Hatch and Plant Vogtle based on Georgia Power's September 2024 site studies are as follows:

	Plant Hatch(*)		Plant Vogtle  Units 1 and 2(*)		Plant Vogtle  Unit 3 and 4(*)
Decommissioning periods:
Beginning year	2034		2047		2062
Completion year	2088		2092		2074
	(in millions)
Site study costs:
Radiated structures	$	696	$	545	$	542
Spent fuel management	306		255		88
Non-radiated structures	77		107		89
Total site study costs	$	1,079	$	907	$	719

(*)Based on Georgia Power's ownership interests.