Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Assets and liabilities measured at fair value on a recurring basis

As of June 30, 2015, assets and liabilities measured at fair value on a recurring basis during the period, together with the associated level of the fair value hierarchy, were as follows:



	Fair Value Measurements Using
As of June 30, 2015:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives	$	—	$	5	$	—	$	5
Interest rate derivatives	—		11		—		11
Nuclear decommissioning trusts^(a)	677		887		7		1,571
Cash equivalents	533		—		—		533
Other investments	9		—		1		10
Total	$	1,219	$	903	$	8	$	2,130
Liabilities:
Energy-related derivatives	$	—	$	180	$	—	$	180
Interest rate derivatives	—		14		—		14
Total	$	—	$	194	$	—	$	194

Alabama Power
Assets:
Energy-related derivatives	$	—	$	2	$	—	$	2
Nuclear decommissioning trusts^(b)
Domestic equity	381		78		—		459
Foreign equity	51		50		—		101
U.S. Treasury and government agency securities	—		36		—		36
Corporate bonds	10		121		—		131
Mortgage and asset backed securities	—		17		—		17
Other	—		6		7		13
Cash equivalents	81		—		—		81
Total	$	523	$	310	$	7	$	840
Liabilities:
Energy-related derivatives	$	—	$	48	$	—	$	48
Interest rate derivatives	—		7		—		7
Total	$	—	$	55	$	—	$	55



	Fair Value Measurements Using
As of June 30, 2015:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Georgia Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	3
Interest rate derivatives	—		5		—		5
Nuclear decommissioning trusts^{(b) (c)}
Domestic equity	182		1		—		183
Foreign equity	—		125		—		125
U.S. Treasury and government agency securities	—		95		—		95
Municipal bonds	—		78		—		78
Corporate bonds	—		169		—		169
Mortgage and asset backed securities	—		108		—		108
Other	53		3		—		56
Total	$	235	$	587	$	—	$	822
Liabilities:
Energy-related derivatives	$	—	$	17	$	—	$	17
Interest rate derivatives	—		4		—		4
Total	$	—	$	21	$	—	$	21

Gulf Power
Assets:
Cash equivalents	$	18	$	—	$	—	$	18
Liabilities:
Energy-related derivatives	—		74		—		74

Mississippi Power
Assets:
Cash equivalents	$	182	$	—	$	—	$	182
Liabilities:
Energy-related derivatives	—		41		—		41

Southern Power
Assets:
Cash equivalents	$	206	$	—	$	—	$	206


(a)	For additional detail, see the nuclear decommissioning trusts sections for Alabama Power and Georgia Power in this table.


(b)	Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies.


(c)	Includes the investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. As of June 30, 2015, approximately $39 million of the fair market value of Georgia Power's nuclear decommissioning trust funds' securities were on loan to creditors under the funds' managers' securities lending program.

Fair value measurements of investments calculated at net asset value per share as well as the nature and risk of those investments

As of June 30, 2015, the fair value measurements of investments calculated at net asset value per share (or its equivalent), as well as the nature and risks of those investments, were as follows:



As of June 30, 2015:	Fair Value		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company
Nuclear decommissioning trusts:
Foreign equity funds	$	125	None	Monthly	5 days
Equity - commingled funds	50		None	Daily	Daily
Debt - commingled funds	16		None	Daily	5 days
Other - commingled funds	3		None	Daily	Not applicable
Other - money market funds	53		None	Daily	Not applicable
Trust-owned life insurance	117		None	Daily	15 days
Cash equivalents:
Money market funds	533		None	Daily	Not applicable
Alabama Power
Nuclear decommissioning trusts:
Equity - commingled funds	$	50	None	Daily	Daily
Debt - commingled funds	16		None	Daily	5 days
Trust-owned life insurance	117		None	Daily	15 days
Cash equivalents:
Money market funds	81		None	Daily	Not applicable
Georgia Power
Nuclear decommissioning trusts:
Foreign equity funds	$	125	None	Monthly	5 days
Other - commingled funds	3		None	Daily	Not applicable
Other - money market funds	53		None	Daily	Not applicable
Gulf Power
Cash equivalents:
Money market funds	$	18	None	Daily	Not applicable
Mississippi Power
Cash equivalents:
Money market funds	$	182	None	Daily	Not applicable
Southern Power
Cash equivalents:
Money market funds	$	206	None	Daily	Not applicable

Financial instruments for which carrying amount did not equal fair value

As of June 30, 2015, other financial instruments for which the carrying amount did not equal fair value were as follows:



	Carrying Amount		Fair Value
	(in millions)
Long-term debt, including securities due within one year:
Southern Company	$	26,156	$	26,973
Alabama Power	$	7,295	$	7,621
Georgia Power	$	10,379	$	10,767
Gulf Power	$	1,370	$	1,438
Mississippi Power	$	2,275	$	2,246
Southern Power	$	2,262	$	2,302