XML 127 R83.htm IDEA: XBRL DOCUMENT v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Details of income tax provisions
Details of income tax provisions are as follows:
2025
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions)
Federal —
Current$139 $110 $99 $57 $71 $28 
Deferred399 192 346 (6)(133)98 
Total federal
538 302 445 51 (62)126 
State —
Current94 95 32 (1)(3)32 
Deferred196 28 125 15 4 24 
Total state
290 123 157 14 1 56 
Total$828 $425 $602 $65 $(61)$182 
2024
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions)
Federal —
Current$221 $357 $200 $32 $(112)$84 
Deferred387 (111)211 2 106 86 
Total federal
608 246 411 34 (6)170 
State —
Current152 103 52 (1)6 42 
Deferred209 11 140 14 (13)46 
Total state
361 114 192 13 (7)88 
Total$969 $360 $603 $47 $(13)$258 
2023
Southern
Company
Alabama
Power
Georgia
Power		Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions)
Federal —
Current$54 $242 $205 $49 $(320)$62 
Deferred299 (257)195 (26)334 68 
Total federal
353 (15)400 23 14 130 
State —
Current41 82 37 1 (1)24 
Deferred102 14 11 12 (1)57 
Total state
143 96 48 13 (2)81 
Total$496 $81 $448 $36 $12 $211 
Summary of amortization of tax credits ITCs amortized in 2025, 2024, and 2023 were immaterial for the traditional electric operating companies and Southern Company Gas and were as follows for Southern Company and Southern Power:
Southern CompanySouthern Power
(in millions)
2025$84 $58 
2024109 58 
202384 58 
Schedule of effective income tax reconciliation
A reconciliation of the federal statutory income tax rate to the effective income tax (benefit) rate is as follows:
2025
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions, except percentages)
Federal statutory rate$1,050 21.0%$408 21.0%$725 21.0%$59 21.0%$(22)(21.0%)$192 21.0%
State and local income tax, net of federal income tax effect(*)
254 5.197 5.0149 4.311 4.01 1.044 4.8
Tax credits —
Amortization of ITCs(56)(1.1)(2)(0.1)(2)(0.1)— —(46)(43.7)— —
Federal PTCs(166)(3.3)— —(137)(4.0)— —(28)(26.8)— —
Other(2)—(1)—(1)—— —— —— —
Nontaxable or nondeductible items —
AFUDC equity(67)(1.3)(14)(0.7)(52)(1.5)— —— —— —
Other19 0.412 0.621 0.62 0.6— —(5)(0.5)
Changes in unrecognized tax benefits(26)(0.5)— —(26)(0.7)— —— —— —
Other adjustments —
Noncontrolling interests36 0.7— —— —— —36 33.9— —
Federal flowback of excess deferreds(170)(3.4)(58)(3.0)(57)(1.7)(5)(1.9)— —(45)(4.9)
Other(44)(1.0)(17)(0.9)(18)(0.5)(2)(0.5)(2)(1.2)(4)(0.5)
Effective income tax (benefit) rate$828 16.6%$425 21.9%$602 17.4%$65 23.2%$(61)(57.8%)$182 19.9%
(*)The following states made up the majority (greater than 50%) of the tax effect in this category: for Southern Company and Georgia Power, Georgia; for Alabama Power, Alabama; for Mississippi Power, Mississippi; for Southern Power, Alabama, California, Delaware, Georgia, North Carolina, Oklahoma, and Tennessee; and for Southern Company Gas, Illinois.
2024
Southern
Company
Alabama
Power		Georgia
Power
Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions, except percentages)
Federal statutory rate$1,098 21.0%$370 21.0%$661 21.0%$52 21.0%$36 21.0%$209 21.0%
State and local income tax, net of federal income tax effect(*)
305 5.889 5.0184 5.911 4.4(4)(2.3)62 6.2
Foreign tax effects6 0.1— —— —— —— —— —
Effect of cross-border tax laws(1)—— —— —— —— —— —
Tax credits —
Amortization of ITCs(61)(1.2)(1)(0.1)(7)(0.2)— —(46)(26.4)— —
Federal PTCs(147)(2.8)(1)(0.1)(116)(3.7)— —(30)(17.2)— —
Other(3)(0.1)(1)—(1)—— —— —— —
Nontaxable or nondeductible items ——
AFUDC equity(44)(0.8)(12)(0.7)(32)(1.0)— —— —— —
Other30 0.612 0.726 0.81 0.61 0.21 0.1
Changes in unrecognized tax benefits —
State changes in unrecognized tax benefits from prior periods, net of federal income tax effect(25)(0.5)— —(33)(1.0)— —— —8 0.8
Other adjustments —
Noncontrolling interests30 0.6— —— —— —30 17.1— —
Federal flowback of excess deferreds(206)(3.9)(94)(5.3)(70)(2.2)(16)(6.5)— —(22)(2.2)
Other(13)(0.3)(2)(0.1)(9)(0.4)(1)(0.3)— —— (0.1)
Effective income tax (benefit) rate$969 18.5%$360 20.4%$603 19.2%$47 19.2%$(13)(7.6%)$258 25.8%
(*)The following states made up the majority (greater than 50%) of the tax effect in this category: for Southern Company and Georgia Power, Georgia; for Alabama Power, Alabama; for Mississippi Power, Mississippi; for Southern Power, Georgia and Oklahoma; and for Southern Company Gas, Illinois.
2023
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions, except percentages)
Federal statutory rate$912 21.0%$305 21.0%$531 21.0%$47 21.0%$51 21.0%$174 21.0%
State and local income tax, net of federal income tax effect(*)
117 2.775 5.245 1.811 4.9(2)(0.7)62 7.6
Tax credits —
Amortization of ITCs(56)(1.3)(1)(0.1)(2)(0.1)— —(46)(19.0)— —
Federal PTCs(52)(1.2)— —(35)(1.4)— —(18)(7.4)— —
Other(4)(0.1)(2)(0.1)(2)(0.1)— —— —— —
Nontaxable or nondeductible items —
AFUDC equity(48)(1.1)(17)(1.2)(31)(1.2)— —— —— —
Other23 0.514 1.021 0.81 0.51 0.41 0.1
Changes in unrecognized tax benefits(5)(0.1)— —(6)(0.2)— —— —2 0.2
Other adjustments —
Noncontrolling interests27 0.6— —— —— —27 11.1— —
Federal flowback of excess deferreds(401)(9.2)(287)(19.8)(64)(2.6)(23)(10.2)— —(22)(2.6)
Other(17)(0.4)(6)(0.4)(9)(0.2)— —(1)(0.3)(6)(0.7)
Effective income tax rate$496 11.4%$81 5.6%$448 17.8%$36 16.2%$12 5.1%$211 25.6%
(*)The following states made up the majority (greater than 50%) of the tax effect in this category: for Southern Company and Alabama Power, Alabama; for Georgia Power, Georgia; for Mississippi Power, Mississippi; for Southern Power, Georgia and Oklahoma; and for Southern Company Gas, Illinois.
Tax effects between the carrying amounts of assets and liabilities
The tax effects of temporary differences between the carrying amounts of assets and liabilities in the financial statements of the Registrants and their respective tax bases, which give rise to deferred tax assets and liabilities, are as follows:
At December 31, 2025
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern
Power		Southern
Company
Gas
 (in millions)
Deferred tax liabilities —
Accelerated depreciation$10,234 $2,641 $4,035 $363 $1,345 $1,675 
Property basis differences3,090 1,394 1,099 177 — 418 
Employee benefit obligations1,223 434 501 66 15 64 
AROs710 422 242 — — — 
Under recovered fuel and natural gas costs195 45 135 15 — — 
Regulatory assets —
AROs1,809 590 1,191 28 — — 
Employee benefit obligations699 190 221 34 — 33 
Remaining book value of retired assets395 229 161 5 — — 
Storm damage reserves236 — 236 — — — 
Premium on reacquired debt53 8 44 1 — — 
Other644 141 211 32 26 175 
Total deferred income tax liabilities19,288 6,094 8,076 721 1,386 2,365 
Deferred tax assets —
AROs2,519 1,012 1,433 28 — — 
ITC and PTC carryforwards1,427 31 683 2 481 — 
Employee benefit obligations837 188 261 47 17 77 
Estimated loss on plants under construction679 — 679 — — — 
Estimated loss on regulatory disallowance38 — — — — 38 
Other state deferred tax attributes346 — 25 211 48 12 
Federal effect of net state deferred tax liabilities460 201 141 — 24 114 
Other property basis differences159 — 73 — 73 — 
State effect of federal deferred taxes136 136 — — — — 
Other partnership basis differences149 — — — 149 — 
Regulatory liability associated with the Tax Reform Legislation (not subject to normalization)18 18 — — — — 
Long-term debt fair value adjustment67 — — — — 67 
Other comprehensive losses51 2 — — — — 
Other780 297 237 49 44 92 
Total deferred income tax assets7,666 1,885 3,532 337 836 400 
Valuation allowance(445)— (267)(41)(29)(6)
Net deferred income tax assets7,221 1,885 3,265 296 807 394 
Net deferred income taxes (assets)/liabilities$12,067 $4,209 $4,811 $425 $579 $1,971 
Recognized in the balance sheets:
Accumulated deferred income taxes – assets$(66)$— $— $(66)$— $— 
Accumulated deferred income taxes – liabilities$12,133 $4,209 $4,811 $491 $579 $1,971 
At December 31, 2024
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern
Power		Southern
Company
Gas
(in millions)
Deferred tax liabilities —
Accelerated depreciation$9,828 $2,583 $3,810 $344 $1,309 $1,575 
Property basis differences3,025 1,497 918 192 — 412 
Employee benefit obligations1,067 362 470 54 13 60 
AROs727 458 221 — — — 
Under recovered fuel and natural gas costs318 13 305 — — — 
Regulatory assets —
AROs1,886 658 1,193 35 — — 
Employee benefit obligations746 191 237 35 — 35 
Remaining book value of retired assets360 168 187 5 — — 
Storm damage reserves216 — 216 — — — 
Premium on reacquired debt57 8 48 1 — — 
Other678 171 187 61 1 201 
Total deferred income tax liabilities18,908 6,109 7,792 727 1,323 2,283 
Deferred tax assets —
AROs2,613 1,116 1,414 35 — — 
CAMT carryforwards40 — 18 — — 104 
ITC and PTC carryforwards1,380 48 719 — 384 — 
Employee benefit obligations897 196 279 49 16 87 
Estimated loss on plants under construction773 — 773 — — — 
Estimated loss on regulatory disallowance20 — — — — 20 
Other state deferred tax attributes366 — 26 224 49 16 
Federal effect of net state deferred tax liabilities402 197 100 — 23 107 
Other property basis differences176 — 75 — 85 — 
State effect of federal deferred taxes126 126 — — — — 
Other partnership basis differences60 — — — 60 — 
Regulatory liability associated with the Tax Reform Legislation (not subject to normalization)18 18 — — — — 
Long-term debt fair value adjustment73 — — — — 73 
Other comprehensive losses48 3 — — 1 — 
Other601 227 160 50 20 86 
Total deferred income tax assets7,593 1,931 3,564 358 638 493 
Valuation allowance(333)— (157)(41)(27)(6)
Net deferred income tax assets7,260 1,931 3,407 317 611 487 
Net deferred income taxes (assets)/liabilities$11,648 $4,178 $4,385 $410 $712 $1,796 
Recognized in the balance sheets:
Accumulated deferred income taxes – assets$(82)$— $— $(82)$— $— 
Accumulated deferred income taxes – liabilities$11,730 $4,178 $4,385 $492 $712 $1,796 
Summary of tax credit carryforwards
Federal ITC/PTC carryforwards at December 31, 2025 were as follows:
Southern
Company
Alabama
Power		Georgia
Power		Southern
Power
(in millions)
Federal ITC/PTC carryforwards$850 $31 $152 $481 
Tax year(s) in which federal ITC/PTC carryforwards expire(*)
2031-20452032-20452031-20452035-2045
Year by which federal ITC/PTC carryforwards are expected to be utilized2031203120312031
(*)The federal ITC/PTC carryforwards at Alabama Power and Georgia Power expiring in 2031-2034 are immaterial to their respective financial statements.
Summary of operating loss carryforward
At December 31, 2025, the net state income tax benefit of state and local NOL carryforwards and associated valuation allowances for Southern Company's subsidiaries were as follows:
Company/Jurisdiction
Approximate Net State
Income Tax Benefit of NOL
Carryforwards
Tax Year NOL
Begins Expiring
Net State Valuation
Allowance for NOL
Carryforwards
(in millions)(in millions)
Mississippi Power
Mississippi $167 2032$(32)
Southern Power
Oklahoma$25 2035$(13)
Florida10 2034(10)
Other states2 
2034
— 
Southern Power total
$37 $(23)
Other(*)
New York$11 2036$(11)
New York City14 2036(14)
Other states21 
2026
(5)
Southern Company total
$250 $(85)
(*)Represents other non-registrant Southern Company subsidiaries. Alabama Power, Georgia Power, and Southern Company Gas did not have material state or local NOL carryforwards at December 31, 2025.
Schedule of unrecognized tax benefits
Changes in unrecognized tax benefits for the periods presented were as follows:
Southern
Company
Alabama
Power
Georgia
Power
Southern
Company Gas
(in millions)
Unrecognized tax benefits at December 31, 2022
$80 $— $— $32 
Tax positions changes —
Increase from prior periods88 — 86 2 
Statute of limitations expiration(52)— (9)— 
Unrecognized tax benefits at December 31, 2023
116 — 77 34 
Tax positions changes —
Increase from prior periods10 — — 10 
Decrease from prior periods
(44)— (43)— 
Unrecognized tax benefits at December 31, 2024
82 — 34 44 
Tax positions changes —
Statute of limitations expiration(34)— (34)— 
Increase from current period
122 50 72 — 
Unrecognized tax benefits at December 31, 2025
$170 $50 $72 $44 
Schedule of Cash Flow, Supplemental Disclosures
The following table disaggregates income taxes paid, excluding credit transfers, (net of refunds) by federal, state, and foreign taxes for the periods presented:
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions)
2025
Federal$170 $150 $53 $43 $162 $9 
State114 93 76 (1)(14)20 
Total cash taxes paid$284 $243 $129 $42 $148 $29 
2024
Federal$123 $289 $(21)$51 $(22)$53 
State53 98 7 — (10)6 
Total cash taxes paid (received)$176 $387 $(14)$51 $(32)$59 
2023
Federal$78 $256 $178 $52 $(252)$71 
State51 59 42 — (2)20 
Foreign3 — — — — — 
Total cash taxes paid (received)$132 $315 $220 $52 $(254)$91 
Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions for the periods presented:
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern
Power
Southern
Company Gas
(in millions)
2025
State —
Alabama
$92 $91 
$ (*)
$ (*)
$ (*)
$ (*)
Georgia
(*)
(*)
74 
(*)
(11)
(*)
Oklahoma
(*)
(*)
(*)
(*)
(9)
(*)
Illinois
20 
(*)
(*)
(*)
(*)
20 
2024
State —
Alabama$99 $98 
$ (*)
$ (*)
$ (*)
$ (*)
Georgia(35)
(*)
7 
(*)
6 7
Oklahoma(18)
(*)
(*)
(*)
(18)
(*)
2023
State —
Alabama$60 $57 
$ (*)
$ (*)
$ (*)
$ (*)
Georgia(13)
(*)
42 
(*)
(*)
8 
Oklahoma(9)
(*)
(*)
(*)
(*)
(*)
Illinois
13 
(*)
(*)
(*)
(*)
13 
(*)Jurisdiction is either not applicable or below the threshold for the period presented.