Financing (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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| Debt Disclosure [Abstract] |
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| Summary of Debt |
A summary of long-term securities due within one year at each of December 31, 2018 and 2017 is as follows: | | | | | | | | | | | | | | | | | | | | | December 31, 2018 | | Southern Company | Alabama Power | Georgia
Power | Mississippi Power | Southern Power | Southern Company Gas | | (in millions) | Senior notes | $ | 2,950 |
| $ | 200 |
| $ | 500 |
| $ | — |
| $ | 600 |
| $ | 300 |
| Revenue bonds(a) | 173 |
| — |
| 108 |
| 40 |
| — |
| — |
| First mortgage bonds | 50 |
| — |
| — |
| — |
| — |
| 50 |
| Capitalized leases | 24 |
| 1 |
| 13 |
| — |
| — |
| — |
| Other(b) | 1 |
| — |
| (4 | ) | — |
| (1 | ) | 7 |
| Total | $ | 3,198 |
| $ | 201 |
| $ | 617 |
| $ | 40 |
| $ | 599 |
| $ | 357 |
|
| | (a) | For Southern Company and Mississippi Power, includes $40 million in pollution control revenue bonds classified as short term since they are variable rate demand obligations supported by short-term credit facilities; however, the final maturity dates range from 2020 to 2028. |
| | (b) | Represents unamortized debt related amounts, acquisition accounting fair value adjustments, and/or fair value hedges. See Note 14 for additional information regarding fair value hedges. |
| | | | | | | | | | | | | | | | | | December 31, 2017 | | Southern Company | Georgia
Power | Mississippi Power | Southern Power | Southern Company Gas | | (in millions) | Senior notes | $ | 2,354 |
| $ | 750 |
| $ | — |
| $ | 350 |
| $ | 155 |
| Long-term bank term loans | 1,420 |
| 100 |
| 900 |
| 420 |
| — |
| Revenue bonds(a) | 90 |
| — |
| 90 |
| — |
| — |
| Capitalized leases | 31 |
| 11 |
| — |
| — |
| — |
| Other(b) | (3 | ) | (4 | ) | (1 | ) | — |
| 2 |
| Total | $ | 3,892 |
| $ | 857 |
| $ | 989 |
| $ | 770 |
| $ | 157 |
|
| | (a) | For Southern Company and Mississippi Power, includes $50 million in revenue bonds classified as short term at December 31, 2017 that were remarketed in an index rate mode subsequent to December 31, 2017. Also for Southern Company and Mississippi Power, includes $40 million in pollution control revenue bonds classified as short term since they are variable rate demand obligations supported by short-term credit facilities; however, the final maturity dates range from 2020 to 2028. |
| | (b) | Represents unamortized debt related amounts, acquisition accounting fair value adjustments, and fair value hedges. See Note 14 for additional information regarding fair value hedges. |
Total junior subordinated notes outstanding for Southern Company and Georgia Power at December 31, 2018 and 2017 were as follows: | | | | | | | | | Southern
Company(*) | Georgia Power | | (in millions) | December 31, 2018 | $ | 3,570 |
| $ | 270 |
| December 31, 2017 | 3,570 |
| 270 |
|
| | (*) | Includes $3.3 billion of junior subordinated notes at the Southern Company parent entity at both December 31, 2018 and 2017. |
Total tax-exempt pollution control revenue bond obligations (including amounts due within one year) outstanding at December 31, 2018 and 2017 were as follows: | | | | | | | | | | | | | | | Southern Company | Alabama Power | Georgia
Power | Mississippi Power | | (in millions) | December 31, 2018 | $ | 2,585 |
| $ | 1,060 |
| $ | 1,460 |
| $ | 40 |
| December 31, 2017 | 3,297 |
| 1,060 |
| 1,821 |
| 83 |
|
Total long-term bank term loans (including amounts due within one year) outstanding at December 31, 2018 and 2017 were as follows: | | | | | | | | | | | | | | | | | | Southern Company | Alabama Power | Georgia
Power | Mississippi Power | Southern Power | | (in millions) | December 31, 2018 | $ | 145 |
| $ | 45 |
| $ | — |
| $ | — |
| $ | — |
| December 31, 2017 | 1,465 |
| 45 |
| 100 |
| 900 |
| 420 |
|
Total senior notes (including amounts due within one year) outstanding at December 31, 2018 and 2017 were as follows: | | | | | | | | | | | | | | | | | | | | | Southern
Company(a) | Alabama Power | Georgia
Power | Mississippi Power | Southern Power | Southern Company Gas(b) | | (in millions) | December 31, 2018 | $ | 32,725 |
| $ | 6,875 |
| $ | 5,600 |
| $ | 1,200 |
| $ | 5,050 |
| $ | 4,000 |
| December 31, 2017 | 35,148 |
| 6,375 |
| 7,100 |
| 755 |
| 5,459 |
| 4,157 |
|
| | (a) | Includes $10.0 billion and $10.2 billion of senior notes at the Southern Company parent entity at December 31, 2018 and 2017, respectively. |
| | (b) | Represents senior notes issued by Southern Company Gas Capital, which are fully and unconditionally guaranteed by Southern Company Gas. See "Structural Considerations" herein for additional information. |
Outstanding secured debt at December 31, 2018 and 2017 for the applicable registrants was as follows: | | | | | | | | | | | | Georgia
Power(a) | Mississippi Power(b) | Southern Company Gas(c) | | (in millions) | December 31, 2018 | $ | 2,767 |
| $ | 270 |
| $ | 1,325 |
| December 31, 2017 | 2,779 |
| 270 |
| 1,025 |
|
| | (a) | Includes Georgia Power's FFB loans that are secured by a first priority lien on (i) Georgia Power's 45.7% undivided ownership interest in Plant Vogtle Units 3 and 4 (primarily the units under construction, the related real property, and any nuclear fuel loaded in the reactor core) and (ii) Georgia Power's rights and obligations under the principal contracts relating to Plant Vogtle Units 3 and 4. These borrowings totaled $2.6 billion at both December 31, 2018 and 2017. See "Long-term Debt – DOE Loan Guarantee Borrowings" herein for additional information. Also includes capital lease obligations of $142 million and $154 million at December 31, 2018 and 2017, respectively. See "Long-term Debt – Capital Leases – Georgia Power" herein for additional information. |
| | (b) | The revenue bonds assumed in conjunction with Mississippi Power's purchase of Plant Daniel Units 3 and 4 are secured by Plant Daniel Units 3 and 4 and certain related personal property. See "Long-term Debt – Other Long-Term Debt" herein for additional information. |
| | (c) | Nicor Gas' first mortgage bonds are secured by substantially all of Nicor Gas' properties. See "Long-term Debt – Other Long-Term Debt – Southern Company Gas" herein for additional information. |
|
| Schedule of Maturities of Long-Term Debt for the Next Five Years |
Maturities of long-term debt for the next five years are as follows: | | | | | | | | | | | | | | | | | | | | | Southern Company(a) | Alabama Power | Georgia Power(a) | Mississippi Power | Southern Power(b) | Southern Company Gas | | (in millions) | 2019 | $ | 3,156 |
| $ | 200 |
| $ | 621 |
| $ | — |
| $ | 600 |
| $ | 350 |
| 2020 | 4,041 |
| 250 |
| 1,006 |
| 307 |
| 825 |
| — |
| 2021 | 3,186 |
| 310 |
| 375 |
| 270 |
| 300 |
| 330 |
| 2022 | 1,974 |
| 750 |
| 505 |
| — |
| 677 |
| 46 |
| 2023 | 2,388 |
| 300 |
| 153 |
| — |
| 290 |
| 400 |
|
| | (a) | Amounts include principal amortization related to the FFB borrowings beginning in 2020; however, the final maturity date is February 20, 2044. See "Long-term Debt – DOE Loan Guarantee Borrowings" herein for additional information. |
| | (b) | Southern Power's 2022 maturity represents euro-denominated debt at the U.S. dollar denominated hedge settlement amount. |
|
| Summary of Committed Credit Arrangements |
At December 31, 2018, committed credit arrangements with banks were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Expires | | | | Executable Term Loans | | Expires Within One Year | Company | 2019 | | 2020 | | 2022 | | Total | | Unused(d) | | One Year | | Two Years | | Term Out | | No Term Out | | (in millions) | Southern Company(a) | $ | — |
| | $ | — |
| | $ | 2,000 |
| | $ | 2,000 |
| | $ | 1,999 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Alabama Power | 33 |
| | 500 |
| | 800 |
| | 1,333 |
| | 1,333 |
| | — |
| | — |
| | — |
| | 33 |
| Georgia Power | — |
| | — |
| | 1,750 |
| | 1,750 |
| | 1,736 |
| | — |
| | — |
| | — |
| | — |
| Mississippi Power | 100 |
| | — |
| | — |
| | 100 |
| | 100 |
| | — |
| | — |
| | — |
| | 100 |
| Southern Power(b) | — |
| | — |
| | 750 |
| | 750 |
| | 727 |
| | — |
| | — |
| | — |
| | — |
| Southern Company Gas(c) | — |
| | — |
| | 1,900 |
| | 1,900 |
| | 1,895 |
| | — |
| | — |
| | — |
| | — |
| Other | 30 |
| | — |
| | — |
| | 30 |
| | 30 |
| | — |
| | — |
| | — |
| | 30 |
| Southern Company Consolidated(e) | $ | 163 |
| | $ | 500 |
| | $ | 7,200 |
| | $ | 7,863 |
| | $ | 7,820 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 163 |
|
| | (a) | Represents the Southern Company parent entity. |
| | (b) | Southern Power's subsidiaries are not parties to its bank credit arrangement. |
| | (c) | Southern Company Gas provides a parent guarantee of the obligations of its subsidiary Southern Company Gas Capital, which is the borrower of $1.4 billion ($1.395 billion unused) of this arrangement. Southern Company Gas' committed credit arrangement also includes $500 million (all unused) for which Nicor Gas is the borrower and which is restricted for working capital needs of Nicor Gas. Pursuant to this multi-year credit arrangement, the allocations between Southern Company Gas Capital and Nicor Gas may be adjusted. See "Structural Considerations" herein for additional information. |
| | (d) | Amounts used are for letters of credit. |
| | (e) | Excludes $280 million of committed credit arrangements of Gulf Power, which was sold on January 1, 2019. See Note 15 under "Southern Company's Sale of Gulf Power" for additional information. |
|
| Details of Short-Term Borrowings |
Details of short-term borrowings were as follows: | | | | | | | | | | | | | | | | Notes Payable at December 31, 2018 | | Notes Payable at December 31, 2017 | | Amount Outstanding | | Weighted Average Interest Rate | | Amount Outstanding | | Weighted Average Interest Rate | | (in millions) | | | | (in millions) | | | Southern Company | | | | | | | | Commercial paper | $ | 1,064 |
| | 3.0 | % | | $ | 1,832 |
| | 1.8 | % | Short-term bank debt | 1,851 |
| | 3.1 | % | | 607 |
| | 2.3 | % | Total | $ | 2,915 |
| | 3.1 | % | | $ | 2,439 |
| | 1.9 | % | | | | | | | | | Alabama Power | | | | | | | | Short-term bank debt | $ | — |
| | — | % | | $ | 3 |
| | 3.7 | % | | | | | | | | | Georgia Power | | | | | | | | Commercial paper | $ | 294 |
| | 3.1 | % | | $ | — |
| | — | % | Short-term bank debt | — |
| | — | % | | 150 |
| | 2.2 | % | Total | $ | 294 |
| | 3.1 | % | | $ | 150 |
| | 2.2 | % | | | | | | | | | Mississippi Power | | | | | | | | Short-term bank debt | $ | — |
| | — | % | | $ | 4 |
| | 3.8 | % | | | | | | | | | Southern Power | | | | | | | | Commercial paper | $ | — |
| | — | % | | $ | 105 |
| | 2.0 | % | Short-term bank debt | 100 |
| | 3.1 | % | | — |
| | — | % | Total | $ | 100 |
| | 3.1 | % | | $ | 105 |
| | 2.0 | % | | | | | | | | | Southern Company Gas | | | | | | | | Commercial paper: | | | | | | | | Southern Company Gas Capital | $ | 403 |
| | 3.1 | % | | $ | 1,243 |
| | 1.7 | % | Nicor Gas | 247 |
| | 3.0 | % | | 275 |
| | 1.8 | % | Total | $ | 650 |
| | 3.0 | % | | $ | 1,518 |
| | 1.8 | % |
|
| Shares Used to Compute Diluted EPS |
Shares used to compute diluted EPS were as follows: | | | | | | | | | | | Average Common Stock Shares | | 2018 | | 2017 | | 2016 | | (in millions) | As reported shares | 1,020 |
| | 1,000 |
| | 951 |
| Effect of options and performance share award units | 5 |
| | 8 |
| | 7 |
| Diluted shares | 1,025 |
| | 1,008 |
| | 958 |
|
|
| Schedule of Temporary Equity |
The following table presents changes during the year in redeemable preferred stock of subsidiaries for Southern Company: | | | | | | Redeemable Preferred Stock of Subsidiaries | | (in millions) | Balance at December 31, 2015 and 2016: | $ | 118 |
| Issued(a) | 250 |
| Redeemed(a) | (38 | ) | Issuance costs(a) | (6 | ) | Balance at December 31, 2017: | 324 |
| Redeemed(b) | (33 | ) | Balance at December 31, 2018: | $ | 291 |
|
| | (a) | See "Alabama Power" herein for additional information. |
| | (b) | See "Mississippi Power" herein for additional information. |
Information for each outstanding series is in the table below: | | | | | | | | Preferred Stock | Par Value/Stated Capital Per Share | | Shares Outstanding | | Redemption Price Per Share | 4.92% Preferred Stock | $100 | | 80,000 |
| | $103.23 | 4.72% Preferred Stock | $100 | | 50,000 |
| | $102.18 | 4.64% Preferred Stock | $100 | | 60,000 |
| | $103.14 | 4.60% Preferred Stock | $100 | | 100,000 |
| | $104.20 | 4.52% Preferred Stock | $100 | | 50,000 |
| | $102.93 | 4.20% Preferred Stock | $100 | | 135,115 |
| | $105.00 | 5.00% Class A Preferred Stock | $25 | | 10,000,000 |
| | Stated Capital(*) |
| | (*) | Prior to October 1, 2022: $25.50; on or after October 1, 2022: Stated Capital |
|