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DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

At December 31, 2024, the net volume of energy-related derivative contracts for natural gas positions, together with the longest hedge date over which the respective entity is hedging its exposure to the variability in future cash flows for forecasted transactions and the longest non-hedge date for derivatives not designated as hedges, were as follows:


	Net Purchased mmBtu	Longest Hedge Date	Longest Non-Hedge Date
	(in millions)
Southern Company(*)	431	2030	2028
Alabama Power	123	2027	—
Georgia Power	116	2027	—
Mississippi Power	103	2028	—
Southern Power	6	2030	2025
Southern Company Gas(*)	83	2027	2028

(*)Southern Company Gas' derivative instruments include both long and short natural gas positions. A long position is a contract to purchase natural gas and a short position is a contract to sell natural gas. Southern Company Gas' volume represents the net of long natural gas positions of 90 million mmBtu and short natural gas positions of 7 million mmBtu at December 31, 2024, which is also included in Southern Company's total volume.

Notional amount of interest rate derivatives

At December 31, 2024, the following interest rate derivatives were outstanding:


	Notional Amount		Weighted Average Interest Rate Paid	Interest Rate Received	Hedge Maturity Date	Fair Value Gain (Loss) December 31, 2024
	(in millions)					(in millions)


Fair Value Hedges of Existing Debt
Southern Company parent	$	400	1-month SOFR + 0.80%	1.75%	March 2028	$	(42)
Southern Company parent	1,000		1-month SOFR + 2.48%	3.70%	April 2030	(143)
Southern Company Gas	500		1-month SOFR + 0.49%	1.75%	January 2031	(84)
Southern Company	$	1,900				$	(269)

Schedule of foreign exchange contracts

At December 31, 2024, the following foreign currency derivatives were outstanding:


	Pay Notional		Pay Rate	Receive Notional		Receive Rate	Hedge Maturity Date	Fair Value Gain (Loss) December 31, 2024
	(in millions)			(in millions)				(in millions)
Cash Flow Hedges of Existing Debt
Southern Power	$	564	3.78%	€	500	1.85%	June 2026	$	(51)
Fair Value Hedges of Existing Debt
Southern Company parent	1,476		3.39%	1,250		1.88%	September 2027	(167)
Southern Company	$	2,040		€	1,750			$	(218)

Fair value of energy-related derivatives and interest rate derivatives

The fair value of energy-related derivatives, interest rate derivatives, and foreign currency derivatives was reflected as either assets or liabilities in the balance sheets (included in "Other" or shown separately as "Risk Management Activities") as follows:


	2024				2023
Derivative Category and Balance Sheet Location	Assets		Liabilities		Assets		Liabilities
	(in millions)
Southern Company
Energy-related derivatives designated as hedging instruments for regulatory purposes

Current	$	33	$	82	$	12	$	198
Non-current	42		40		31		117


Total derivatives designated as hedging instruments for regulatory purposes	75		122		43		315
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current	4		3		—		29
Non-current	4		—		3		4
Interest rate derivatives:
Current	—		61		—		74
Non-current	—		208		—		190
Foreign currency derivatives:
Current	—		36		—		34
Non-current	—		182		—		88
Total derivatives designated as hedging instruments in cash flow and fair value hedges	8		490		3		419
Energy-related derivatives not designated as hedging instruments

Current	5		3		8		8
Non-current	1		—		1		2


Total derivatives not designated as hedging instruments	6		3		9		10
Gross amounts recognized	89		615		55		744
Gross amounts offset(a)	(44)		(61)		(23)		(85)
Net amounts recognized in the Balance Sheets(b)	$	45	$	554	$	32	$	659

Alabama Power
Energy-related derivatives designated as hedging instruments for regulatory purposes

Current	$	11	$	30	$	6	$	69
Non-current	15		12		9		41
Total derivatives designated as hedging instruments for regulatory purposes	26		42		15		110



Gross amounts offset	(19)		(19)		(10)		(10)
Net amounts recognized in the Balance Sheets	$	7	$	23	$	5	$	100


	2024				2023
Derivative Category and Balance Sheet Location	Assets		Liabilities		Assets		Liabilities
	(in millions)
Georgia Power
Energy-related derivatives designated as hedging instruments for regulatory purposes

Current	$	6	$	32	$	2	$	82
Non-current	13		9		10		42
Total derivatives designated as hedging instruments for regulatory purposes	19		41		12		124





Energy-related derivatives not designated as hedging instruments

Current	—		1		—		—
Non-current	—		—		1		—
Total derivatives not designated as hedging instruments	—		1		1		—
Gross amounts recognized	19		42		13		124
Gross amounts offset	(15)		(15)		(11)		(11)
Net amounts recognized in the Balance Sheets	$	4	$	27	$	2	$	113

Mississippi Power
Energy-related derivatives designated as hedging instruments for regulatory purposes

Current	$	5	$	15	$	3	$	27
Non-current	14		19		12		34
Total derivatives designated as hedging instruments for regulatory purposes	19		34		15		61






Gross amounts offset	(17)		(17)		(14)		(14)
Net amounts recognized in the Balance Sheets	$	2	$	17	$	1	$	47

Southern Power
Derivatives designated as hedging instruments in cash flow hedges
Energy-related derivatives:
Current	$	1	$	—	$	—	$	5
Non-current	3		—		3		—
Foreign currency derivatives:
Current	—		11		—		11
Non-current	—		40		—		11
Total derivatives designated as hedging instruments in cash flow hedges	4		51		3		27













Net amounts recognized in the Balance Sheets	$	4	$	51	$	3	$	27


	2024				2023
Derivative Category and Balance Sheet Location	Assets		Liabilities		Assets		Liabilities
	(in millions)
Southern Company Gas
Energy-related derivatives designated as hedging instruments for regulatory purposes

Current	$	11	$	5	$	1	$	20


Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current	3		3		—		24
Non-current	1		—		—		4
Interest rate derivatives:
Current	—		17		—		20
Non-current	—		67		—		59
Total derivatives designated as hedging instruments in cash flow and fair value hedges	4		87		—		107
Energy-related derivatives not designated as hedging instruments

Current	5		2		7		8
Non-current	1		—		1		2
Total derivatives not designated as hedging instruments	6		2		8		10
Gross amounts recognized	21		94		9		137
Gross amounts offset(a)	7		(10)		12		(50)
Net amounts recognized in the Balance Sheets(b)	$	28	$	84	$	21	$	87

(a)Gross amounts offset includes cash collateral held on deposit in broker margin accounts of $17 million and $62 million at December 31, 2024 and 2023, respectively.

(b)Net amounts of derivative instruments outstanding exclude immaterial premium and intrinsic value associated with weather derivatives for all periods presented.

Pre-tax effects on the balance sheets

At December 31, 2024 and 2023, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred were as follows:


Regulatory Hedge Unrealized Gain (Loss) Recognized in the Balance Sheets
Derivative Category and Balance Sheet Location	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
At December 31, 2024:
Energy-related derivatives:
Other regulatory assets, current	$	(61)	$	(23)	$	(26)	$	(11)	$	(1)
Other regulatory assets, deferred	(5)		—		—		(5)		—


Other regulatory liabilities, current	8		4		—		—		4
Other regulatory liabilities, deferred	8		3		4		1		—
Total energy-related derivative gains (losses)	$	(50)	$	(16)	$	(22)	$	(15)	$	3

At December 31, 2023:
Energy-related derivatives:
Other regulatory assets, current	$	(180)	$	(67)	$	(80)	$	(25)	$	(8)
Other regulatory assets, deferred	(87)		(32)		(33)		(22)		—

Other regulatory liabilities, current	9		4		—		1		4
Other regulatory liabilities, deferred	1		—		1		—		—
Total energy-related derivative gains (losses)	$	(257)	$	(95)	$	(112)	$	(46)	$	(4)

Pre-tax effects of hedging on AOCI

For the years ended December 31, 2024, 2023, and 2022, the pre-tax effects of cash flow and fair value hedge accounting on AOCI for the applicable Registrants were as follows:


Gain (Loss) From Derivatives Recognized in OCI	2024		2023		2022
	(in millions)
Southern Company
Cash flow hedges:
Energy-related derivatives	$	(7)	$	(81)	$	3
Interest rate derivatives	23		(12)		46
Foreign currency derivatives	(40)		14		(105)
Fair value hedges(*):
Foreign currency derivatives	16		21		(24)
Total	$	(8)	$	(58)	$	(80)


Georgia Power
Cash flow hedges:
Interest rate derivatives	$	24	$	(2)	$	31
Mississippi Power
Cash flow hedges:
Interest rate derivatives	$	7	$	—	$	—
Southern Power
Cash flow hedges:
Energy-related derivatives	$	(1)	$	(18)	$	(15)
Foreign currency derivatives	(40)		14		(105)
Total	$	(41)	$	(4)	$	(120)
Southern Company Gas
Cash flow hedges:
Energy-related derivatives	$	(6)	$	(63)	$	18
Interest rate derivatives	(5)		—		—
Total	$	(11)	$	(63)	$	18

(*)Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI.

Pre-tax effect of interest rate and energy related derivatives

The pre-tax effects of cash flow and fair value hedge accounting on income for the years ended December 31, 2024, 2023, and 2022 were as follows:


		Gain (Loss)
Statements of Income Location	Derivative Category	2024		2023		2022
		(in millions)
Southern Company
Cost of natural gas	Energy-related cash flow hedges	$	(40)	$	(44)	$	37
Other operations and maintenance	Energy-related cash flow hedges	(2)		(2)		—
Depreciation and amortization	Energy-related cash flow hedges	(6)		(23)		(5)
Interest expense, net of amounts capitalized	Interest rate cash flow hedges	(16)		(35)		(25)
	Foreign currency cash flow hedges	(12)		(11)		(19)
	Interest rate fair value hedges	(4)		37		(291)
Other income (expense), net	Foreign currency cash flow hedges	(33)		19		(83)
	Foreign currency fair value hedges	2		69		(106)
	Amount excluded from effectiveness testing recognized in earnings	(16)		(21)		24







Southern Power
Depreciation and amortization	Energy-related cash flow hedges	$	(6)	$	(23)	$	(5)
Interest expense, net of amounts capitalized	Foreign currency cash flow hedges	(12)		(11)		(19)
Other income (expense), net	Foreign currency cash flow hedges	(33)		19		(83)
Southern Company Gas
Cost of natural gas	Energy-related cash flow hedges	$	(40)	$	(44)	$	37
Other operations and maintenance	Energy-related cash flow hedges	(2)		(2)		—
Interest expense, net of amounts capitalized	Interest rate cash flow hedges	(1)		(19)		(4)
	Interest rate fair value hedges	(5)		6		(86)

Schedule of fair value hedging instruments, statements of financial performance and financial position, location

At December 31, 2024 and 2023, the following amounts were recorded on the balance sheets related to cumulative basis adjustments for fair value hedges:


	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment included in Carrying Amount of the Hedged Item
Balance Sheet Location of Hedged Items	At December 31, 2024		At December 31, 2023		At December 31, 2024		At December 31, 2023
	(in millions)				(in millions)
Southern Company

Long-term debt	$	(2,936)	$	(3,024)	$	242	$	235

Southern Company Gas

Long-term debt	$	(422)	$	(427)	$	75	$	70

Pre-tax effect of interest rate and energy related derivatives

The pre-tax effects of energy-related derivatives not designated as hedging instruments on the statements of income of Southern Company and Southern Company Gas for the years ended December 31, 2024, 2023, and 2022 were as follows:


		Gain (Loss)
Derivatives in Non-Designated Hedging Relationships	Statements of Income Location	2024		2023		2022
		(in millions)

Energy-related derivatives	Natural gas revenues(*)	$	—	$	—	$	(11)
	Cost of natural gas	94		59		(65)



Total derivatives in non-designated hedging relationships		$	94	$	59	$	(76)

(*)Excludes the impact of weather derivatives recorded in natural gas revenues of $12 million, $15 million, and $(7) million for 2024, 2023 and 2022, respectively, as they are accounted for based on intrinsic value rather than fair value.