Introduction (Tables)
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9 Months Ended |
Sep. 30, 2023 |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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| Schedule of Goodwill |
Goodwill at September 30, 2023 and December 31, 2022 was as follows: | | | | | | | | Goodwill | | | (in millions) | | Southern Company | $ | 5,161 | | | | Southern Company Gas: | | | | Gas distribution operations | $ | 4,034 | | | | Gas marketing services | 981 | | | | Southern Company Gas total | $ | 5,015 | | |
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| Schedule of Other Intangible Assets, Indefinite-Lived |
Other intangible assets were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | At September 30, 2023 | | At December 31, 2022 | | Gross Carrying Amount | Accumulated Amortization | Other
Intangible Assets, Net | | Gross Carrying Amount | Accumulated Amortization | Other
Intangible Assets, Net | | (in millions) | | (in millions) | | Southern Company | | | | | | | | | Subject to amortization: | | | | | | | | | Customer relationships | $ | 211 | | $ | (169) | | $ | 42 | | | $ | 212 | | $ | (162) | | $ | 50 | | | Trade names | 63 | | (50) | | 13 | | | 64 | | (44) | | 20 | | | PPA fair value adjustments | 390 | | (143) | | 247 | | | 390 | | (129) | | 261 | | | Other | 5 | | (5) | | — | | | 5 | | (5) | | — | | | Total subject to amortization | $ | 669 | | $ | (367) | | $ | 302 | | | $ | 671 | | $ | (340) | | $ | 331 | | | Not subject to amortization: | | | | | | | | | FCC licenses | 75 | | — | | 75 | | | 75 | | — | | 75 | | | Total other intangible assets | $ | 744 | | $ | (367) | | $ | 377 | | | $ | 746 | | $ | (340) | | $ | 406 | | | | | | | | | | Southern Power(*) | | | | | | | | | PPA fair value adjustments | $ | 390 | | $ | (143) | | $ | 247 | | | $ | 390 | | $ | (129) | | $ | 261 | | | | | | | | | | Southern Company Gas(*) | | | | | | | | | | | | | | | | | Gas marketing services | | | | | | | | | Customer relationships | $ | 156 | | $ | (143) | | $ | 13 | | | $ | 156 | | $ | (139) | | $ | 17 | | | Trade names | 26 | | (20) | | 6 | | | 26 | | (17) | | 9 | | | Total other intangible assets | $ | 182 | | $ | (163) | | $ | 19 | | | $ | 182 | | $ | (156) | | $ | 26 | |
(*) All subject to amortization.
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| Schedule of Other Intangible Assets, Finite-Lived |
Other intangible assets were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | At September 30, 2023 | | At December 31, 2022 | | Gross Carrying Amount | Accumulated Amortization | Other
Intangible Assets, Net | | Gross Carrying Amount | Accumulated Amortization | Other
Intangible Assets, Net | | (in millions) | | (in millions) | | Southern Company | | | | | | | | | Subject to amortization: | | | | | | | | | Customer relationships | $ | 211 | | $ | (169) | | $ | 42 | | | $ | 212 | | $ | (162) | | $ | 50 | | | Trade names | 63 | | (50) | | 13 | | | 64 | | (44) | | 20 | | | PPA fair value adjustments | 390 | | (143) | | 247 | | | 390 | | (129) | | 261 | | | Other | 5 | | (5) | | — | | | 5 | | (5) | | — | | | Total subject to amortization | $ | 669 | | $ | (367) | | $ | 302 | | | $ | 671 | | $ | (340) | | $ | 331 | | | Not subject to amortization: | | | | | | | | | FCC licenses | 75 | | — | | 75 | | | 75 | | — | | 75 | | | Total other intangible assets | $ | 744 | | $ | (367) | | $ | 377 | | | $ | 746 | | $ | (340) | | $ | 406 | | | | | | | | | | Southern Power(*) | | | | | | | | | PPA fair value adjustments | $ | 390 | | $ | (143) | | $ | 247 | | | $ | 390 | | $ | (129) | | $ | 261 | | | | | | | | | | Southern Company Gas(*) | | | | | | | | | | | | | | | | | Gas marketing services | | | | | | | | | Customer relationships | $ | 156 | | $ | (143) | | $ | 13 | | | $ | 156 | | $ | (139) | | $ | 17 | | | Trade names | 26 | | (20) | | 6 | | | 26 | | (17) | | 9 | | | Total other intangible assets | $ | 182 | | $ | (163) | | $ | 19 | | | $ | 182 | | $ | (156) | | $ | 26 | |
(*) All subject to amortization.
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| Schedule of Amortization of Other Intangible Assets |
Amortization associated with other intangible assets was as follows: | | | | | | | | | | | | | | | | | Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | | | September 30, 2023 | September 30, 2022 | | | (in millions) | Southern Company(a) | $ | 10 | | $ | 27 | | $ | 11 | | $ | 30 | | | Southern Power(b) | 5 | | 14 | | 5 | | 15 | | | | Southern Company Gas | 3 | | 7 | | 4 | | 9 | | |
(a)Includes $5 million, $14 million, $5 million, and $15 million for the three and nine months ended September 30, 2023 and 2022, respectively, recorded as a reduction to operating revenues. (b)Recorded as a reduction to operating revenues.
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| Schedule of Restrictions on Cash and Cash Equivalents |
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants: | | | | | | | | | | | | | | | | | | | Southern Company | Alabama Power | Georgia Power | Southern Power | Southern
Company Gas | | (in millions) | | At September 30, 2023 | | | | | | | Cash and cash equivalents | $ | 1,676 | | $ | 621 | | $ | 173 | | $ | 236 | | $ | 397 | | Restricted cash(a): | | | | | | | Other current assets | 176 | | 108 | | 48 | | 18 | | 2 | | | Other deferred charges and assets | 38 | | — | | 35 | | 3 | | — | | Total cash, cash equivalents, and restricted cash(b) | $ | 1,890 | | $ | 729 | | $ | 256 | | $ | 257 | | $ | 399 | | | | | | | | | At December 31, 2022 | | | | | | | Cash and cash equivalents | $ | 1,917 | | $ | 687 | | $ | 364 | | $ | 131 | | $ | 81 | | Restricted cash(a): | | | | | | | Other current assets | 62 | | — | | 60 | | — | | 2 | | | Other deferred charges and assets | 58 | | — | | 56 | | 3 | | — | | Total cash, cash equivalents, and restricted cash(b) | $ | 2,037 | | $ | 687 | | $ | 480 | | $ | 133 | | $ | 83 | |
(a)For Alabama Power, balance at September 30, 2023 reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2023. For Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects $18 million at September 30, 2023 resulting from an arbitration interim award held to fund future replacement costs and $3 million at both September 30, 2023 and December 31, 2022 held to fund estimated construction completion costs at the Deuel Harvest wind facility. See Note (C) under "General Litigation Matters – Southern Power" for additional information. For Southern Company Gas, reflects collateral for workers' compensation, life insurance, and long-term disability insurance. (b)Total may not add due to rounding.
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| Schedule of Cash and Cash Equivalents |
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants: | | | | | | | | | | | | | | | | | | | Southern Company | Alabama Power | Georgia Power | Southern Power | Southern
Company Gas | | (in millions) | | At September 30, 2023 | | | | | | | Cash and cash equivalents | $ | 1,676 | | $ | 621 | | $ | 173 | | $ | 236 | | $ | 397 | | Restricted cash(a): | | | | | | | Other current assets | 176 | | 108 | | 48 | | 18 | | 2 | | | Other deferred charges and assets | 38 | | — | | 35 | | 3 | | — | | Total cash, cash equivalents, and restricted cash(b) | $ | 1,890 | | $ | 729 | | $ | 256 | | $ | 257 | | $ | 399 | | | | | | | | | At December 31, 2022 | | | | | | | Cash and cash equivalents | $ | 1,917 | | $ | 687 | | $ | 364 | | $ | 131 | | $ | 81 | | Restricted cash(a): | | | | | | | Other current assets | 62 | | — | | 60 | | — | | 2 | | | Other deferred charges and assets | 58 | | — | | 56 | | 3 | | — | | Total cash, cash equivalents, and restricted cash(b) | $ | 2,037 | | $ | 687 | | $ | 480 | | $ | 133 | | $ | 83 | |
(a)For Alabama Power, balance at September 30, 2023 reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2023. For Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2022. For Southern Power, reflects $18 million at September 30, 2023 resulting from an arbitration interim award held to fund future replacement costs and $3 million at both September 30, 2023 and December 31, 2022 held to fund estimated construction completion costs at the Deuel Harvest wind facility. See Note (C) under "General Litigation Matters – Southern Power" for additional information. For Southern Company Gas, reflects collateral for workers' compensation, life insurance, and long-term disability insurance. (b)Total may not add due to rounding.
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| Schedule of Storm Damage Reserve Activity |
Storm damage reserve activity for the traditional electric operating companies during the nine months ended September 30, 2023 was as follows: | | | | | | | | | | | | | | | | Southern Company(*) | Alabama Power | Georgia Power(*) | Mississippi
Power | | | (in millions) | Balance at December 31, 2022 | $ | 216 | | $ | 97 | | $ | 83 | | $ | 36 | | | Accrual | 42 | | 9 | | 24 | | 9 | | Weather-related damages | (242) | | (35) | | (204) | | (3) | | Balance at September 30, 2023 | $ | 16 | | $ | 71 | | $ | (97) | | $ | 42 | |
(*)See Note (B) under "Georgia Power – Storm Damage Recovery" for additional information.
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| Schedule of Asset Retirement Obligations |
The estimated costs of decommissioning Plant Farley based on Alabama Power's June 2023 site study are as follows: | | | | | | | Plant Farley | | Decommissioning periods: | | | Beginning year | 2037 | | Completion year | 2087 | | | | (in millions) | | Site study costs: | | | Radiated structures | $ | 1,402 | | | Spent fuel management | 513 | | | Non-radiated structures | 133 | | | Total site study costs | $ | 2,048 | |
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