XML 96 R71.htm IDEA: XBRL DOCUMENT

Derivatives (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

At June 30, 2025, 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(*)	415	2030	2028
Alabama Power	130	2028	—
Georgia Power	110	2028	—
Mississippi Power	102	2029	—
Southern Power	8	2030	2025
Southern Company Gas(*)	65	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 78.6 million mmBtu long natural gas positions and 13.6 million mmBtu short natural gas positions at June 30, 2025, which is also included in Southern Company's total volume.

Schedule of Interest Rate Derivatives

At June 30, 2025, the following interest rate derivatives were outstanding:


	Notional Amount		Weighted Average Interest Rate Paid	Interest Rate Received	Hedge Maturity Date	Fair Value Gain (Loss) at June 30, 2025
	(in millions)					(in millions)
Cash Flow Hedges of Forecasted Debt
Southern Company Gas	$	250	4.03%	N/A	September 2025	$	4
Georgia Power	275		4.29%	N/A	August 2025	(1)
Fair Value Hedges of Existing Debt
Southern Company parent	400		1-month SOFR + 0.80%	1.75%	March 2028	(30)
Southern Company parent	1,000		1-month SOFR + 2.48%	3.70%	April 2030	(106)
Southern Company parent	565		1-month SOFR + 1.56%	6.50%	March 2045	(1)
Southern Company Gas	500		1-month SOFR + 0.49%	1.75%	January 2031	(63)
Southern Company	$	2,990				$	(197)

Schedule of Foreign Currency Derivatives

At June 30, 2025, the following foreign currency derivatives were outstanding:


	Pay Notional		Pay Rate	Receive Notional		Receive Rate	Hedge Maturity Date	Fair Value Gain (Loss) at June 30, 2025
	(in millions)			(in millions)				(in millions)
Cash Flow Hedges of Existing Debt
Southern Power	$	564	3.78%	€	500	1.85%	June 2026	$	26
Fair Value Hedges of Existing Debt
Southern Company parent	1,476		3.39%	1,250		1.88%	September 2027	(14)
Southern Company	$	2,040		€	1,750			$	12

Schedule of Derivative Category and Balance Sheet Location

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:


	At June 30, 2025				At December 31, 2024
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	$	57	$	38	$	33	$	82
Non-current	63		26		42		40


Total derivatives designated as hedging instruments for regulatory purposes	120		64		75		122
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current	5		2		4		3
Non-current	4		—		4		—
Interest rate derivatives:
Current	9		57		—		61
Non-current	—		149		—		208
Foreign currency derivatives:
Current	26		22		—		36
Non-current	8		—		—		182
Total derivatives designated as hedging instruments in cash flow and fair value hedges	52		230		8		490
Energy-related derivatives not designated as hedging instruments

Current	4		6		5		3
Non-current	—		—		1		—

Total derivatives not designated as hedging instruments	4		6		6		3
Gross amounts recognized	176		300		89		615
Gross amounts offset(a)	(56)		(62)		(44)		(61)
Net amounts recognized in the Balance Sheets(b)	$	120	$	238	$	45	$	554

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

Current	$	23	$	13	$	11	$	30
Non-current	24		10		15		12
Total derivatives designated as hedging instruments for regulatory purposes	47		23		26		42






Gross amounts offset	(20)		(20)		(19)		(19)
Net amounts recognized in the Balance Sheets	$	27	$	3	$	7	$	23


	At June 30, 2025				At December 31, 2024
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	$	15	$	11	$	6	$	32
Non-current	20		6		13		9
Total derivatives designated as hedging instruments for regulatory purposes	35		17		19		41
Interest rate derivatives designated as hedging instruments in cash flow and fair value hedges

Current	—		1		—		—


Energy-related derivatives not designated as hedging instruments

Current	—		2		—		1

Gross amounts recognized	35		20		19		42
Gross amounts offset	(16)		(16)		(15)		(15)
Net amounts recognized in the Balance Sheets	$	19	$	4	$	4	$	27

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

Current	$	9	$	9	$	5	$	15
Non-current	19		10		14		19
Total derivatives designated as hedging instruments for regulatory purposes	28		19		19		34






Gross amounts offset	(16)		(16)		(17)		(17)
Net amounts recognized in the Balance Sheets	$	12	$	3	$	2	$	17

Southern Power
Derivatives designated as hedging instruments in cash flow hedges
Energy-related derivatives:
Current	$	1	$	—	$	1	$	—
Non-current	3		—		3		—
Foreign currency derivatives:
Current	26		—		—		11
Non-current	—		—		—		40
Total derivatives designated as hedging instruments in cash flow hedges	30		—		4		51







Net amounts recognized in the Balance Sheets	$	30	$	—	$	4	$	51


	At June 30, 2025				At December 31, 2024
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	$	10	$	5	$	11	$	5


Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current	4		2		3		3
Non-current	1		—		1		—
Interest rate derivatives:
Current	4		15		—		17
Non-current	—		48		—		67
Total derivatives designated as hedging instruments in cash flow and fair value hedges	9		65		4		87
Energy-related derivatives not designated as hedging instruments

Current	4		4		5		2
Non-current	—		—		1		—

Total derivatives not designated as hedging instruments	4		4		6		2
Gross amounts recognized	23		74		21		94
Gross amounts offset(a)	(4)		(10)		7		(10)
Net amounts recognized in the Balance Sheets(b)	$	19	$	64	$	28	$	84

(a)Gross amounts offset includes cash collateral held on deposit in broker margin accounts of $6 million and $17 million at June 30, 2025 and December 31, 2024, respectively.

(b)Net amounts of derivative instruments outstanding exclude immaterial premium and intrinsic value associated with weather derivatives at June 30, 2025 and December 31, 2024.

Schedule of Pre-tax Effects of Unrealized Derivative Gains (Losses)

At June 30, 2025 and December 31, 2024, 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 Sheet
Derivative Category and Balance Sheet Location	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
At June 30, 2025:
Energy-related derivatives:
Other regulatory assets, current	$	(8)	$	(3)	$	(1)	$	(3)	$	(1)



Other regulatory liabilities, current	26		13		5		3		5
Other regulatory liabilities, deferred	37		14		14		9		—
Total energy-related derivative gains (losses)	$	55	$	24	$	18	$	9	$	4

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

Schedule of Pre-Tax Effects of Hedging on AOCI

For the three and six months ended June 30, 2025 and 2024, the pre-tax effects of cash flow and fair value hedge accounting on accumulated OCI for the applicable Registrants were as follows:


Gain (Loss) Recognized in OCI on Derivatives	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(in millions)
Southern Company
Cash flow hedges:
Energy-related derivatives	$	(13)	$	3	$	6	$	(5)
Interest rate derivatives	9		1		5		24
Foreign currency derivatives	47		(6)		67		(20)
Fair value hedges(*):
Foreign currency derivatives	3		(4)		(13)		(4)
Total	$	46	$	(6)	$	65	$	(5)




Georgia Power
Cash flow hedges:
Interest rate derivatives	$	5	$	—	$	3	$	16


Mississippi Power
Cash flow hedges:
Interest rate derivatives	$	—	$	—	$	—	$	7

Southern Power
Cash flow hedges:
Energy-related derivatives	$	(1)	$	1	$	2	$	—

Foreign currency derivatives	47		(6)		67		(20)
Total	$	46	$	(5)	$	69	$	(20)

Southern Company Gas
Cash flow hedges:
Energy-related derivatives	$	(12)	$	2	$	4	$	(5)
Interest rate derivatives	4		1		4		1
Total	$	(8)	$	3	$	8	$	(4)

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

Schedule of Pre-Tax Effects of Cash Flow and Fair Value Hedging on Income

For the three and six months ended June 30, 2025 and 2024, the pre-tax effects of cash flow and fair value hedge accounting on income were as follows:


		Gain (Loss)
Statements of Income Location	Derivative Category	Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
		(in millions)
Southern Company
Fuel	Energy-related cash flow hedges	$	—	$	(1)	$	1	$	(2)
Cost of natural gas	Energy-related cash flow hedges	1		(7)		—		(30)
Other operations and maintenance	Energy-related cash flow hedges	—		—		—		(1)
Interest expense, net of amounts capitalized	Interest rate cash flow hedges	(3)		(4)		(6)		(8)
	Foreign currency cash flow hedges	(2)		(3)		(5)		(6)
	Interest rate fair value hedges	29		—		69		(31)
Other income (expense), net	Foreign currency cash flow hedges	45		(5)		67		(17)
	Foreign currency fair value hedges	115		(18)		155		21
	Amount excluded from effectiveness testing recognized in earnings	(3)		5		13		5







Southern Power
Fuel	Energy-related cash flow hedges	$	—	$	(1)	$	1	$	(2)
Interest expense, net of amounts capitalized	Foreign currency cash flow hedges	(2)		(3)		(5)		(6)
Other income (expense), net	Foreign currency cash flow hedges	45		(5)		67		(17)
Southern Company Gas
Cost of natural gas	Energy-related cash flow hedges	$	1	$	(7)	$	—	$	(30)
Operations and maintenance	Energy-related cash flow hedges	—		—		—		(1)

Interest expense, net of amounts capitalized	Interest rate fair value hedges	3		(6)		21		(10)

Schedule of Cumulative Basis Adjustments for Fair Value Hedges

At June 30, 2025 and December 31, 2024, 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 June 30, 2025		At December 31, 2024		At June 30, 2025		At December 31, 2024
	(in millions)
Southern Company

Long-term debt	$	(3,798)	$	(2,936)	$	164	$	242

Southern Company Gas

Long-term debt	$	(442)	$	(422)	$	56	$	75