Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Assets and Liabilities Measured at Fair Value

At September 30, 2023, assets and liabilities measured at fair value on a recurring basis during the period, together with their associated level of the fair value hierarchy, were as follows:


	Fair Value Measurements Using:
At September 30, 2023	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives(a)	$	7	$	73	$	—	$	—	$	80


Investments in trusts:(b)
Domestic equity	692		196		—		—		888
Foreign equity	131		154		—		—		285
U.S. Treasury and government agency securities	—		337		—		—		337
Municipal bonds	—		42		—		—		42
Pooled funds – fixed income	—		6		—		—		6
Corporate bonds	—		368		—		—		368
Mortgage and asset backed securities	—		85		—		—		85
Private equity	—		—		—		169		169
Cash and cash equivalents	3		—		—		—		3
Other	33		3		—		8		44
Cash equivalents and restricted cash	919		11		—		—		930
Other investments	9		34		8		—		51
Total	$	1,794	$	1,309	$	8	$	177	$	3,288
Liabilities:
Energy-related derivatives(a)	$	34	$	217	$	—	$	—	$	251
Interest rate derivatives	—		351		—		—		351
Foreign currency derivatives	—		192		—		—		192
Contingent consideration	5		—		19		—		24
Other	—		13		—		—		13
Total	$	39	$	773	$	19	$	—	$	831


	Fair Value Measurements Using:
At September 30, 2023	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Alabama Power
Assets:
Energy-related derivatives	$	—	$	26	$	—	$	—	$	26

Nuclear decommissioning trusts:(b)
Domestic equity	404		188		—		—		592
Foreign equity	131		—		—		—		131
U.S. Treasury and government agency securities	—		20		—		—		20
Municipal bonds	—		1		—		—		1
Corporate bonds	—		215		—		—		215
Mortgage and asset backed securities	—		22		—		—		22
Private equity	—		—		—		169		169
Other	10		—		—		8		18
Cash equivalents and restricted cash	489		11		—		—		500
Other investments	—		34		—		—		34
Total	$	1,034	$	517	$	—	$	177	$	1,728
Liabilities:
Energy-related derivatives	$	—	$	75	$	—	$	—	$	75



Georgia Power
Assets:
Energy-related derivatives	$	—	$	14	$	—	$	—	$	14

Nuclear decommissioning trusts:(b)
Domestic equity	288		1		—		—		289
Foreign equity	—		153		—		—		153
U.S. Treasury and government agency securities	—		317		—		—		317
Municipal bonds	—		41		—		—		41
Corporate bonds	—		153		—		—		153
Mortgage and asset backed securities	—		63		—		—		63
Other	23		3		—		—		26

Total	$	311	$	745	$	—	$	—	$	1,056
Liabilities:
Energy-related derivatives	$	—	$	83	$	—	$	—	$	83


	Fair Value Measurements Using:
At September 30, 2023	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	24	$	—	$	—	$	24

Cash equivalents	3		—		—		—		3
Total	$	3	$	24	$	—	$	—	$	27
Liabilities:
Energy-related derivatives	$	—	$	44	$	—	$	—	$	44



Southern Power
Assets:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5

Cash equivalents	23		—		—		—		23
Total	$	23	$	5	$	—	$	—	$	28
Liabilities:
Energy-related derivatives	$	—	$	6	$	—	$	—	$	6
Foreign currency derivatives	—		42		—		—		42
Contingent consideration	5		—		19		—		24
Other	—		13		—		—		13
Total	$	5	$	61	$	19	$	—	$	85

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	7	$	4	$	—	$	—	$	11

Non-qualified deferred compensation trusts:
Domestic equity	—		7		—		—		7
Foreign equity	—		1		—		—		1
Pooled funds – fixed income	—		6		—		—		6
Cash equivalents	3		—		—		—		3
Cash equivalents	294		—		—		—		294

Total	$	304	$	18	$	—	$	—	$	322
Liabilities:
Energy-related derivatives(a)	$	34	$	9	$	—	$	—	$	43
Interest rate derivatives	—		99		—		—		99

Total	$	34	$	108	$	—	$	—	$	142

(a)Excludes cash collateral of $49 million.

(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information.

Schedule of Increase (Decrease) In Fair Value Of Funds

The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.


	Three Months Ended				Nine Months Ended
Fair value increases (decreases)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(in millions)
Southern Company	$	(4)	$	(106)	$	211	$	(486)
Alabama Power	(36)		(53)		54		(245)
Georgia Power	32		(53)		157		(241)

Schedule of Financial Instruments for which Carrying Amount Did Not Equal Fair Value

At September 30, 2023, other financial instruments for which the carrying amount did not equal fair value were as follows:


	Southern Company(*)		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas(*)
	(in billions)
Long-term debt, including securities due within one year:
Carrying amount	$	58.8	$	11.2	$	15.8	$	1.6	$	2.7	$	8.1
Fair value	50.8		9.4		13.4		1.3		2.4		6.5

(*)The carrying amount of Southern Company Gas' long-term debt includes fair value adjustments from the effective date of the 2016 merger with Southern Company. Southern Company Gas amortizes the fair value adjustments over the remaining lives of the respective bonds, the latest being through 2043.