Derivatives (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

At September 30, 2012, the net volume of energy-related derivative contracts for natural gas positions for the Southern Company system, 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 date for derivatives not designated as hedges, were as follows:

	Net Purchased mmBtu	Longest Hedge Date	Longest Non-Hedge Date
	(in millions)
Southern Company	270	2017	2017
Alabama Power	55	2017	—
Georgia Power	107	2017	—
Gulf Power	63	2017	—
Mississippi Power	36	2017	—
Southern Power	9	2012	2017

Notional amount of interest rate derivatives

At September 30, 2012, the following interest rate derivatives were outstanding:

	Notional Amount		Interest Rate Received		Interest Rate Paid			Hedge Maturity Date	Fair Value Gain (Loss) September 30, 2012
	(in millions)								(in millions)
Cash flow hedges of forecasted transactions
Alabama Power	$	300	3-month LIBOR		2.90	%	(a)	December 2022	$	(32	)
Fair value hedges of existing debt
Southern Company	350		4.15	%	3-month LIBOR  + 1.96%		(a)	May 2014	13
Total	$	650							$	(19	)

(a) Weighted average

Total deferred gains and losses are expected to be amortized into earnings

The following table reflects the estimated pre-tax gains (losses) that will be reclassified from OCI to interest expense for the next 12-month period ending September 30, 2013, together with the longest date that total deferred gains and losses are expected to be amortized into earnings.

Registrant	Estimated Gain (Loss) to be Reclassified for the 12 Months Ending September 30, 2013			Total Deferred Gains (Losses) Amortized  Through
	(in millions)
Southern Company	$	(16	)	2037
Alabama Power	(2		)	2035
Georgia Power	(3		)	2037
Gulf Power	(1		)	2020
Mississippi Power	(1		)	2022
Southern Power	(9		)	2016

Outstanding foreign currency derivatives

At September 30, 2012, the following foreign currency derivatives were outstanding:

	Notional Amount	Forward Rate		Hedge Maturity Date	Fair Value Gain (Loss) September 30, 2012(c)
	(in millions)				(in millions)
Fair value hedges of firm commitments
Mississippi Power	EUR0.7	1.3758 Dollars per Euro		March 2014	$	—
Derivatives not designated as hedges(b)
Mississippi Power	EUR10.5	1.2571 Dollars per Euro	(a)	N/A	—
Total	EUR11.2				$	—

(a) Weighted average

(b) Derivatives are not designated as hedges due to the uncertainty of future contract payment dates.

(c) Amounts are not material at September 30, 2012.

Fair value of energy-related derivatives and interest rate derivatives

At September 30, 2012, the fair value of energy-related derivatives and interest rate derivatives was reflected in the balance sheets as follows:

Asset Derivatives at September 30, 2012
	Fair Value
Derivative Category and Balance Sheet Location	Southern Company		Alabama Power		Georgia Power		Gulf Power		Mississippi Power		Southern   Power
	(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets	$	17	$	3	$	9	$	4	$	1
Other deferred charges and assets	29		8		10		7		4
Total derivatives designated as hedging instruments for regulatory purposes	$	46	$	11	$	19	$	11	$	5	N/A
Derivatives designated as hedging instruments in cash flow and fair value hedges
Interest rate derivatives:
Other current assets	$	6	$	—	$	—	$	—	$	—	$	—
Other deferred charges and assets	7		—		—		—		—		—
Total derivatives designated as hedging instruments in cash flow and fair value hedges	$	13	$	—	$	—	$	—	$	—	$	—
Derivatives not designated as hedging instruments
Energy-related derivatives:
Assets from risk management activities	$	1	$	—	$	—	$	—	$	—	$	1
Other deferred charges and assets	1		—		—		—		—		1
Total derivatives not designated as hedging instruments	$	2	$	—	$	—	$	—	$	—	$	2
Total asset derivatives	$	61	$	11	$	19	$	11	$	5	$	2

Liability Derivatives at September 30, 2012
	Fair Value
Derivative Category and Balance Sheet Location	Southern Company		Alabama Power		Georgia Power		Gulf Power		Mississippi Power		Southern   Power
	(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Liabilities from risk management activities	$	71	$	14	$	31	$	13	$	13
Other deferred credits and liabilities	38		5		15		11		7
Total derivatives designated as hedging instruments for regulatory purposes	$	109	$	19	$	46	$	24	$	20	N/A
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Liabilities from risk management activities	$	1	$	—	$	—	$	—	$	—	$	1
Interest rate derivatives:
Liabilities from risk management activities	32		32		—		—		—		—
Total derivatives designated as hedging instruments in cash flow and fair value hedges	$	33	$	32	$	—	$	—	$	—	$	1
Derivatives not designated as hedging instruments
Energy-related derivatives:
Liabilities from risk management activities	$	1	$	—	$	—	$	—	$	—	$	1
Total liability derivatives	$	143	$	51	$	46	$	24	$	20	$	2

Pre-tax effect of unrealized derivative gains (losses)

At September 30, 2012, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred on the balance sheets were as follows:

Regulatory Hedge Unrealized Gain (Loss) Recognized on the Balance Sheet
Derivative Category and Balance Sheet Location	Southern Company			Alabama Power			Georgia Power			Gulf Power			Mississippi Power
	(in millions)
Energy-related derivatives:
Other regulatory assets, current	$	(71	)	$	(14	)	$	(31	)	$	(13	)	$	(13	)
Other regulatory assets, deferred	(38		)	(5		)	(15		)	(11		)	(7		)
Other regulatory liabilities, current	17			3			9			4			1
Other regulatory liabilities, deferred	29			8			—			7			4
Other deferred credits and liabilities(a)	—			—			10			—			—
Total energy-related derivative gains (losses)	$	(63	)	$	(8	)	$	(27	)	$	(13	)	$	(15	)

(a) Georgia Power includes Other regulatory liabilities, deferred in Other deferred credits and liabilities

Pre-tax effect of derivatives designated as cash flow hedging instruments

For the three months ended September 30, 2012 and 2011, the pre-tax effects of interest rate derivatives designated as cash flow hedging instruments on the statements of income were as follows:

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
							Statements of Income Location	Amount
	2012			2011				2012			2011
	(in millions)							(in millions)
Southern Company
Interest rate derivatives	$	(4	)	$	(27	)	Interest expense, net of amounts capitalized	$	(4	)	$	(5	)
Alabama Power
Interest rate derivatives	$	(4	)	$	(12	)	Interest expense, net of amounts capitalized	$	—		$	—
Georgia Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	(1	)	$	(1	)
Mississippi Power
Interest rate derivatives	$	—		$	(15	)	Interest expense, net of amounts capitalized	$	—		$	—
Southern Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	(3	)	$	(3	)

For the nine months ended September 30, 2012 and 2011, the pre-tax effects of interest rate derivatives designated as cash flow hedging instruments on the statements of income were as follows:

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
							Statements of Income Location	Amount
	2012			2011				2012			2011
	(in millions)							(in millions)
Southern Company
Interest rate derivatives	$	(16	)	$	(23	)	Interest expense, net of amounts capitalized	$	(12	)	$	(10	)
Alabama Power
Interest rate derivatives	$	(15	)	$	(8	)	Interest expense, net of amounts capitalized	$	—		$	3
Georgia Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	(3	)	$	(3	)
Gulf Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	(1	)	$	(1	)
Mississippi Power
Interest rate derivatives	$	(1	)	$	(15	)	Interest expense, net of amounts capitalized	$	(1	)	$	—
Southern Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	(8	)	$	(8	)

Fair value of derivative liabilities with contingent features

At September 30, 2012, the fair value of derivative liabilities with contingent features, by registrant, was as follows:

	Southern Company		Alabama Power		Georgia Power		Gulf Power		Mississippi Power		Southern Power
					(in millions)
Derivative liabilities	$	10	$	2	$	4	$	2	$	2	$	—