Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Assets and Liabilities Measured at Fair Value

At June 30, 2025, 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, 2025	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)	$	11	$	122	$	—	$	—	$	133
Interest rate derivatives	—		9		—		—		9
Foreign currency derivatives	—		34		—		—		34
Investments in trusts:(b)
Domestic equity	876		268		—		—		1,144
Foreign equity	164		206		—		—		370
U.S. Treasury and government agency securities	—		355		—		—		355
Municipal bonds	—		48		—		—		48
Pooled funds – fixed income	—		5		—		—		5
Corporate bonds	—		495		—		—		495
Mortgage- and asset-backed securities	—		122		—		—		122
Private equity	—		—		—		191		191
Cash and cash equivalents	1		—		—		—		1
Other	33		3		—		9		45
Investments, available-for-sale:
U.S. Treasury and government agency securities	1		10		—		—		11

Corporate bonds	—		2		—		—		2
Mortgage- and asset-backed securities	—		9		—		—		9
Cash equivalents and restricted cash	631		18		—		—		649
Other investments	10		37		8		—		55
Total	$	1,727	$	1,743	$	8	$	200	$	3,678
Liabilities:
Energy-related derivatives(a)	$	6	$	66	$	—	$	—	$	72
Interest rate derivatives	—		206		—		—		206
Foreign currency derivatives	—		22		—		—		22
Contingent consideration	3		—		14		—		17
Other	—		13		11		—		24
Total	$	9	$	307	$	25	$	—	$	341


	Fair Value Measurements Using
At June 30, 2025	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	$	—	$	47	$	—	$	—	$	47

Nuclear decommissioning trusts:(b)
Domestic equity	470		258		—		—		728
Foreign equity	164		—		—		—		164
U.S. Treasury and government agency securities	—		17		—		—		17
Municipal bonds	—		1		—		—		1
Corporate bonds	—		299		—		—		299
Mortgage- and asset-backed securities	—		33		—		—		33
Private equity	—		—		—		191		191
Other	11		1		—		9		21
Cash equivalents	145		18		—		—		163
Other investments	—		37		—		—		37
Total	$	790	$	711	$	—	$	200	$	1,701
Liabilities:
Energy-related derivatives	$	—	$	23	$	—	$	—	$	23



Georgia Power
Assets:
Energy-related derivatives	$	—	$	35	$	—	$	—	$	35

Nuclear decommissioning trusts:(b)
Domestic equity	406		1		—		—		407
Foreign equity	—		205		—		—		205
U.S. Treasury and government agency securities	—		338		—		—		338
Municipal bonds	—		47		—		—		47
Corporate bonds	—		196		—		—		196
Mortgage- and asset-backed securities	—		89		—		—		89
Other	22		2		—		—		24

Total	$	428	$	913	$	—	$	—	$	1,341
Liabilities:
Energy-related derivatives	$	—	$	19	$	—	$	—	$	19
Interest rate derivatives	—		1		—		—		1
Total	$	—	$	20	$	—	$	—	$	20


	Fair Value Measurements Using
At June 30, 2025	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	$	—	$	28	$	—	$	—	$	28

Cash equivalents	2		—		—		—		2
Total	$	2	$	28	$	—	$	—	$	30
Liabilities:
Energy-related derivatives	$	—	$	19	$	—	$	—	$	19



Southern Power
Assets:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4
Foreign currency derivatives	—		26		—		—		26

Total	$	—	$	30	$	—	$	—	$	30
Liabilities:


Contingent consideration	3		—		14		—		17
Other	—		13		11		—		24
Total	$	3	$	13	$	25	$	—	$	41

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	11	$	8	$	—	$	—	$	19
Interest rate derivatives	—		4		—		—		4
Non-qualified deferred compensation trusts:
Domestic equity	—		9		—		—		9
Foreign equity	—		1		—		—		1
Pooled funds – fixed income	—		5		—		—		5
Cash and cash equivalents	1		—		—		—		1
Cash equivalents	212		—		—		—		212

Total	$	224	$	27	$	—	$	—	$	251
Liabilities:
Energy-related derivatives(a)	$	6	$	5	$	—	$	—	$	11
Interest rate derivatives	—		63		—		—		63

Total	$	6	$	68	$	—	$	—	$	74

(a)Excludes cash collateral of $6 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 under "Nuclear Decommissioning" 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 June 30,				Six Months Ended June 30,
Fair value increases (decreases)	2025		2024		2025		2024
	(in millions)
Southern Company	$	165	$	32	$	159	$	135
Alabama Power	99		19		86		87
Georgia Power	66		13		73		48

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

At June 30, 2025, 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	$	68.1	$	11.5	$	19.3	$	1.8	$	2.7	$	8.5
Fair value	63.6		10.3		17.7		1.6		2.7		7.5

(*)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.