Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Assets and Liabilities Measured at Fair Value

At September 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 September 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)	$	15	$	89	$	—	$	—	$	104
Interest rate derivatives	—		7		—		—		7
Foreign currency derivatives	—		31		—		—		31
Investments in trusts:(b)
Domestic equity	934		288		—		—		1,222
Foreign equity	174		216		—		—		390
U.S. Treasury and government agency securities	—		367		—		—		367
Municipal bonds	—		50		—		—		50
Pooled funds – fixed income	—		6		—		—		6
Corporate bonds	—		505		—		—		505
Mortgage- and asset-backed securities	—		120		—		—		120
Private equity	—		—		—		186		186
Cash and cash equivalents	1		—		—		—		1
Other	40		4		—		9		53
Investments, available-for-sale:
U.S. Treasury and government agency securities	3		10		—		—		13

Corporate bonds	—		2		—		—		2
Mortgage- and asset-backed securities	—		7		—		—		7
Cash equivalents and restricted cash	2,547		17		—		—		2,564
Other investments	10		36		8		—		54
Total	$	3,724	$	1,755	$	8	$	195	$	5,682
Liabilities:
Energy-related derivatives(a)	$	12	$	77	$	—	$	—	$	89
Interest rate derivatives	—		191		—		—		191
Foreign currency derivatives	—		21		—		—		21
Contingent consideration	3		—		14		—		17
Other	—		13		11		—		24
Total	$	15	$	302	$	25	$	—	$	342


	Fair Value Measurements Using
At September 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	$	—	$	31	$	—	$	—	$	31

Nuclear decommissioning trusts:(b)
Domestic equity	499		278		—		—		777
Foreign equity	174		—		—		—		174
U.S. Treasury and government agency securities	—		16		—		—		16
Municipal bonds	—		1		—		—		1
Corporate bonds	—		307		—		—		307
Mortgage- and asset-backed securities	—		33		—		—		33
Private equity	—		—		—		186		186
Other	19		2		—		9		30
Cash equivalents	264		17		—		—		281
Other investments	—		36		—		—		36
Total	$	956	$	721	$	—	$	195	$	1,872
Liabilities:
Energy-related derivatives	$	—	$	25	$	—	$	—	$	25



Georgia Power
Assets:
Energy-related derivatives	$	—	$	27	$	—	$	—	$	27

Nuclear decommissioning trusts:(b)
Domestic equity	435		1		—		—		436
Foreign equity	—		215		—		—		215
U.S. Treasury and government agency securities	—		351		—		—		351
Municipal bonds	—		49		—		—		49
Corporate bonds	—		198		—		—		198
Mortgage- and asset-backed securities	—		87		—		—		87
Other	21		2		—		—		23
Cash equivalents	844		—		—		—		844
Total	$	1,300	$	930	$	—	$	—	$	2,230
Liabilities:
Energy-related derivatives	$	—	$	24	$	—	$	—	$	24


	Fair Value Measurements Using
At September 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	$	—	$	20	$	—	$	—	$	20

Cash equivalents	13		—		—		—		13
Total	$	13	$	20	$	—	$	—	$	33
Liabilities:
Energy-related derivatives	$	—	$	23	$	—	$	—	$	23



Southern Power
Assets:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4
Foreign currency derivatives	—		20		—		—		20
Cash equivalents	813		—		—		—		813
Total	$	813	$	24	$	—	$	—	$	837
Liabilities:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1

Contingent consideration	3		—		14		—		17
Other	—		13		11		—		24
Total	$	3	$	14	$	25	$	—	$	42

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	15	$	7	$	—	$	—	$	22

Non-qualified deferred compensation trusts:
Domestic equity	—		9		—		—		9
Foreign equity	—		1		—		—		1
Pooled funds – fixed income	—		6		—		—		6
Cash and cash equivalents	1		—		—		—		1
Cash equivalents	329		—		—		—		329

Total	$	345	$	23	$	—	$	—	$	368
Liabilities:
Energy-related derivatives(a)	$	12	$	4	$	—	$	—	$	16
Interest rate derivatives	—		56		—		—		56

Total	$	12	$	60	$	—	$	—	$	72

(a)Excludes cash collateral of $10 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 September 30,				Nine Months Ended September 30,
Fair value increases (decreases)	2025		2024		2025		2024
	(in millions)
Southern Company	$	132	$	97	$	290	$	230
Alabama Power	75		67		160		153
Georgia Power	57		30		130		77

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

At September 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	$	71.9	$	12.0	$	20.8	$	1.8	$	3.8	$	9.3
Fair value	68.4		10.9		19.5		1.6		3.8		8.5

(*)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.