Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Assets and Liabilities Measured at Fair Value

At September 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 September 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)	$	8	$	59	$	—	$	—	$	67
Interest rate derivatives	—		1		—		—		1

Investments in trusts:(b)
Domestic equity	843		255		—		—		1,098
Foreign equity	163		189		—		—		352
U.S. Treasury and government agency securities	—		368		—		—		368
Municipal bonds	—		50		—		—		50
Pooled funds – fixed income	—		7		—		—		7
Corporate bonds	—		464		—		—		464
Mortgage and asset backed securities	—		106		—		—		106
Private equity	—		—		—		179		179
Cash and cash equivalents	1		—		—		—		1
Other	28		3		—		9		40
Cash equivalents and restricted cash	336		16		—		—		352
Other investments	9		28		8		—		45
Total	$	1,388	$	1,546	$	8	$	188	$	3,130
Liabilities:
Energy-related derivatives(a)	$	13	$	189	$	—	$	—	$	202
Interest rate derivatives	—		218		—		—		218
Foreign currency derivatives	—		105		—		—		105
Contingent consideration	3		—		17		—		20
Other	—		13		9		—		22
Total	$	16	$	525	$	26	$	—	$	567


	Fair Value Measurements Using:
At September 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	$	—	$	21	$	—	$	—	$	21

Nuclear decommissioning trusts:(b)
Domestic equity	460		246		—		—		706
Foreign equity	163		—		—		—		163
U.S. Treasury and government agency securities	—		18		—		—		18
Municipal bonds	—		1		—		—		1
Corporate bonds	—		286		—		—		286
Mortgage and asset backed securities	—		29		—		—		29
Private equity	—		—		—		179		179
Other	5		1		—		9		15
Cash equivalents and restricted cash	197		16		—		—		213
Other investments	—		28		—		—		28
Total	$	825	$	646	$	—	$	188	$	1,659
Liabilities:
Energy-related derivatives	$	—	$	65	$	—	$	—	$	65



Georgia Power
Assets:
Energy-related derivatives	$	—	$	13	$	—	$	—	$	13
Interest rate derivatives	—		1		—		—		1
Nuclear decommissioning trusts:(b)
Domestic equity	383		1		—		—		384
Foreign equity	—		188		—		—		188
U.S. Treasury and government agency securities	—		350		—		—		350
Municipal bonds	—		49		—		—		49
Corporate bonds	—		178		—		—		178
Mortgage and asset backed securities	—		77		—		—		77
Other	23		2		—		—		25

Total	$	406	$	859	$	—	$	—	$	1,265
Liabilities:
Energy-related derivatives	$	—	$	65	$	—	$	—	$	65


	Fair Value Measurements Using:
At September 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	$	—	$	14	$	—	$	—	$	14



Liabilities:
Energy-related derivatives	$	—	$	51	$	—	$	—	$	51



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



Liabilities:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2
Foreign currency derivatives	—		15		—		—		15
Contingent consideration	3		—		17		—		20
Other	—		13		9		—		22
Total	$	3	$	30	$	26	$	—	$	59

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	8	$	7	$	—	$	—	$	15

Non-qualified deferred compensation trusts:
Domestic equity	—		8		—		—		8
Foreign equity	—		1		—		—		1
Pooled funds – fixed income	—		7		—		—		7
Cash and cash equivalents	1		—		—		—		1
Cash equivalents	10		—		—		—		10

Total	$	19	$	23	$	—	$	—	$	42
Liabilities:
Energy-related derivatives(a)	$	13	$	6	$	—	$	—	$	19
Interest rate derivatives	—		62		—		—		62

Total	$	13	$	68	$	—	$	—	$	81

(a)Excludes cash collateral of $22 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 September 30,				Nine Months Ended September 30,
Fair value increases (decreases)	2024		2023		2024		2023
	(in millions)
Southern Company	$	97	$	(4)	$	230	$	211
Alabama Power	67		(36)		153		54
Georgia Power	30		32		77		157

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

At September 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	$	62.6	$	11.2	$	17.4	$	1.7	$	2.7	$	8.4
Fair value	59.8		10.3		16.3		1.5		2.7		7.7

(*)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.