Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Assets and liabilities measured at fair value on a recurring basis

As of September 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 September 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	$	—	$	4	$	—	$	4
Interest rate derivatives	—		20		—		20
Nuclear decommissioning trusts^(a)	587		869		16		1,472
Cash equivalents	747		—		—		747
Other investments	9		—		1		10
Total	$	1,343	$	893	$	17	$	2,253
Liabilities:
Energy-related derivatives	$	—	$	211	$	—	$	211
Interest rate derivatives	—		36		—		36
Total	$	—	$	247	$	—	$	247

Alabama Power
Assets:
Energy-related derivatives	$	—	$	2	$	—	$	2
Nuclear decommissioning trusts^(b)
Domestic equity	346		72		—		418
Foreign equity	46		45		—		91
U.S. Treasury and government agency securities	—		28		—		28
Corporate bonds	10		126		—		136
Mortgage and asset backed securities	—		18		—		18
Other	—		4		16		20
Cash equivalents	484		—		—		484
Total	$	886	$	295	$	16	$	1,197
Liabilities:
Energy-related derivatives	$	—	$	54	$	—	$	54
Interest rate derivatives	—		17		—		17
Total	$	—	$	71	$	—	$	71



	Fair Value Measurements Using
As of September 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	$	—	$	2	$	—	$	2
Interest rate derivatives	—		9		—		9
Nuclear decommissioning trusts^{(b) (c)}
Domestic equity	169		1		—		170
Foreign equity	—		109		—		109
U.S. Treasury and government agency securities	—		112		—		112
Municipal bonds	—		74		—		74
Corporate bonds	—		166		—		166
Mortgage and asset backed securities	—		109		—		109
Other	16		5		—		21
Cash equivalents	37		—		—		37
Total	$	222	$	587	$	—	$	809
Liabilities:
Energy-related derivatives	$	—	$	16	$	—	$	16
Interest rate derivatives	—		19		—		19
Total	$	—	$	35	$	—	$	35

Gulf Power
Assets:
Cash equivalents	$	18	$	—	$	—	$	18
Liabilities:
Energy-related derivatives	—		94		—		94

Mississippi Power
Assets:
Cash equivalents	$	64	$	—	$	—	$	64
Liabilities:
Energy-related derivatives	—		47		—		47

Southern Power
Assets:
Interest rate derivatives	$	—	$	1	$	—	$	1
Cash equivalents	103		—		—		103
Total	$	103	$	1	$	—	$	104


(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 September 30, 2015, approximately $69 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 September 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 September 30, 2015:	Fair Value		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company
Nuclear decommissioning trusts:
Foreign equity funds	$	109	None	Monthly	5 days
Equity - commingled funds	45		None	Daily	Daily
Debt - commingled funds	16		None	Daily	5 days
Other - commingled funds	5		None	Daily	Not applicable
Other - money market funds	16		None	Daily	Not applicable
Trust-owned life insurance	112		None	Daily	15 days
Cash equivalents:
Money market funds	747		None	Daily	Not applicable
Alabama Power
Nuclear decommissioning trusts:
Equity - commingled funds	$	45	None	Daily	Daily
Debt - commingled funds	16		None	Daily	5 days
Trust-owned life insurance	112		None	Daily	15 days
Cash equivalents:
Money market funds	484		None	Daily	Not applicable
Georgia Power
Nuclear decommissioning trusts:
Foreign equity funds	$	109	None	Monthly	5 days
Other - commingled funds	5		None	Daily	Not applicable
Other - money market funds	16		None	Daily	Not applicable
Cash equivalents:
Money market funds	37		None	Daily	Not applicable
Gulf Power
Cash equivalents:
Money market funds	$	18	None	Daily	Not applicable
Mississippi Power
Cash equivalents:
Money market funds	$	64	None	Daily	Not applicable
Southern Power
Cash equivalents:
Money market funds	$	103	None	Daily	Not applicable

Financial instruments for which carrying amount did not equal fair value

As of September 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	$	25,489	$	26,099
Alabama Power	$	7,295	$	7,558
Georgia Power	$	9,887	$	10,231
Gulf Power	$	1,310	$	1,338
Mississippi Power	$	2,273	$	2,228
Southern Power	$	2,142	$	2,149