Southern Power has certain subsidiaries that are determined to be VIEs. Southern Power is considered the primary beneficiary of these VIEs because it controls the most significant activities of the VIEs, including operating and maintaining the respective assets, and has the obligation to absorb expected losses of these VIEs to the extent of its equity interests. In 2018, Southern Power sold noncontrolling interests in SP Solar and SP Wind. Southern Power continues to consolidate each entity, as the primary beneficiary of each VIE, since it controls the most significant activities of each entity, including operating and maintaining their assets. Transfers and sales of the assets in the VIEs are subject to limited partner consent and the liabilities are non-recourse to the general credit of Southern Power. Liabilities consist of customary working capital items and do not include any long-term debt.

At June 30, 2019, SP Solar had total assets of $6.5 billion, total liabilities of $374 million, and noncontrolling interests of $1.1 billion. Cash distributions from SP Solar are allocated 67% to Southern Power and 33% to Global Atlantic in accordance with their partnership interest percentage. Under the terms of the limited partnership agreement, distributions without limited partner consent are limited to available cash and SP Solar is obligated to distribute all such available cash to its partners each quarter. Available cash includes all cash generated in the quarter subject to the maintenance of appropriate operating reserves.

At June 30, 2019, SP Wind had total assets of $2.5 billion, total liabilities of $136 million, and noncontrolling interests of $46 million. Under the terms of the limited liability agreement, distributions without Class A member consent are limited to available cash and SP Wind is obligated to distribute all such available cash to its members each quarter. Available cash includes all cash generated in the quarter subject to the maintenance of appropriate operating reserves. Cash distributions from SP Wind are generally allocated 60% to Southern Power and 40% to the three financial investors in accordance with the limited liability agreement.

In June 2019, Southern Power made investments in certain legal entities that are considered VIEs but for which Southern Power is not the primary beneficiary because it does not control the most significant activities of the VIEs. These investments are accounted for as equity method investments. The total carrying amount of these investments is $144 million as of June 30, 2019, of which $116 million relates to membership interests in DSGP, an affiliate of Bloom Energy, that owns and operates fuel cell generation facilities in Delaware. Southern Power expects to consolidate DSGP, and record a noncontrolling interest, pending FERC approval of the transfer of the facilities. FERC approval is expected to occur in the third quarter 2019; however, the ultimate outcome of this matter cannot be determined at this time.

The carrying amounts of Southern Company Gas' equity method investments as of June 30, 2019 and December 31, 2018 and related income from those investments for the three- and six-month periods ended June 30, 2019 and 2018 were as follows:



Investment Balance	June 30, 2019		December 31, 2018
	(in millions)
SNG	$	1,243	$	1,261
Atlantic Coast Pipeline	101		83
PennEast Pipeline	77		71
Other^(*)	88		123
Total	$	1,509	$	1,538



Earnings from Equity Method Investments	Three Months Ended June 30, 2019			Three Months Ended June 30, 2018		Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
	(in millions)
SNG	$	32		$	27	$	74		$	66
Atlantic Coast Pipeline	3			1		6			3
PennEast Pipeline	1			1		3			2
Other^(*)	(5		)	2		(3		)	3
Total	$	31		$	31	$	80		$	74

On May 29, 2019, Southern Company Gas sold its investment in Triton, a cargo container leasing company that was aggregated into Southern Company Gas' all other segment. This disposition resulted in a pre-tax loss of $6 million and a net after-tax gain of $7 million as a result of reversing a $13 million federal income tax valuation allowance.



Income Statement Information	Three Months Ended June 30, 2019		Three Months Ended June 30, 2018		Six Months Ended June 30, 2019		Six Months Ended June 30, 2018
	(in millions)
Revenues	$	155	$	146	$	321	$	306
Operating income	86		60		192		159
Net income	64		54		148		132