INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Details of income tax provisions are as follows:


	2024
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Federal —
Current	$	221	$	357	$	200	$	32	$	(112)	$	84
Deferred	387		(111)		211		2		106		86
Total federal	608		246		411		34		(6)		170
State —
Current	152		103		52		(1)		6		42
Deferred	209		11		140		14		(13)		46
Total state	361		114		192		13		(7)		88
Total	$	969	$	360	$	603	$	47	$	(13)	$	258


	2023
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Federal —
Current	$	54	$	242	$	205	$	49	$	(320)	$	62
Deferred	299		(257)		195		(26)		334		68
Total federal	353		(15)		400		23		14		130
State —
Current	41		82		37		1		(1)		24
Deferred	102		14		11		12		(1)		57
Total state	143		96		48		13		(2)		81
Total	$	496	$	81	$	448	$	36	$	12	$	211


	2022
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Federal —
Current	$	10	$	54	$	38	$	42	$	(43)	$	122
Deferred	455		259		152		(16)		56		(3)
Total federal	465		313		190		26		13		119
State —
Current	27		14		(21)		—		2		42
Deferred	303		96		201		11		5		19
Total state	330		110		180		11		7		61
Total	$	795	$	423	$	370	$	37	$	20	$	180

Summary of amortization of tax credits

ITCs amortized in 2024, 2023, and 2022 were immaterial for the traditional electric operating companies and Southern Company Gas and were as follows for Southern Company and Southern Power:


	Southern Company		Southern Power
	(in millions)
2024	$	109	$	58
2023	84		58
2022	83		58

Schedule of effective income tax reconciliation

A reconciliation of the federal statutory income tax rate to the effective income tax (benefit) rate is as follows:


	2024
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
State income tax, net of federal deduction	3.6		5.0		1.7		4.4		(2.3)		7.0
Changes in valuation allowance, net of federal benefit	1.9		—		3.1		—		—		—
Employee stock plans' dividend deduction	(0.4)		—		—		—		—		—
Non-deductible book depreciation	0.6		0.6		0.7		0.3		—		—
Flowback of excess deferred income taxes	(3.9)		(5.3)		(2.2)		(6.5)		—		(2.2)
AFUDC-Equity	(0.8)		(0.7)		(1.0)		—		—		—
Federal PTCs	(2.8)		(0.1)		(3.7)		—		(17.2)		—
ITC amortization	(1.2)		(0.1)		(0.2)		—		(26.4)		—
Noncontrolling interests	0.6		—		—		—		17.1		—
Other	(0.1)		—		(0.2)		—		0.2		—
Effective income tax (benefit) rate	18.5	%	20.4	%	19.2	%	19.2	%	(7.6)	%	25.8	%


	2023
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
State income tax, net of federal deduction	2.9		5.2		2.1		4.9		(0.7)		7.8
Changes in valuation allowance, net of federal benefit	(0.3)		—		(0.6)		—		—		—
Employee stock plans' dividend deduction	(0.5)		—		—		—		—		—
Non-deductible book depreciation	0.7		0.7		0.8		0.4		—		—
Flowback of excess deferred income taxes	(9.2)		(19.8)		(2.6)		(10.2)		—		(2.6)
AFUDC-Equity	(1.1)		(1.2)		(1.2)		—		—		—

Federal PTCs	(1.2)		—		(1.4)		—		(7.4)		—
ITC amortization	(1.3)		(0.1)		(0.1)		—		(19.0)		—

Noncontrolling interests	0.6		—		—		—		11.1		—

Other	(0.2)		(0.2)		(0.3)		0.1		0.1		(0.6)
Effective income tax rate	11.4	%	5.6	%	17.7	%	16.2	%	5.1	%	25.6	%


	2022
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
State income tax, net of federal deduction	7.8		4.8		3.3		4.4		1.9		6.4
Changes in valuation allowance, net of federal benefit	(1.6)		—		3.2		—		—		—
Employee stock plans' dividend deduction	(0.5)		—		—		—		—		—
Non-deductible book depreciation	0.6		0.5		0.6		0.3		—		—
Flowback of excess deferred income taxes	(6.6)		(1.9)		(9.6)		(7.8)		—		(2.5)
AFUDC-Equity	(1.1)		(0.8)		(1.5)		—		—		—


Federal PTCs	—		—		—		—		(6.6)		—
ITC amortization	(1.3)		(0.1)		(0.1)		—		(17.2)		(0.1)

Noncontrolling interests	0.5		—		—		—		8.4		—

Other	—		0.3		—		0.3		(0.1)		(0.9)
Effective income tax rate	18.8	%	23.8	%	16.9	%	18.2	%	7.4	%	23.9	%

Tax effects between the carrying amounts of assets and liabilities

The tax effects of temporary differences between the carrying amounts of assets and liabilities in the financial statements of the Registrants and their respective tax bases, which give rise to deferred tax assets and liabilities, are as follows:


	December 31, 2024
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Deferred tax liabilities —
Accelerated depreciation	$	9,828	$	2,583	$	3,810	$	344	$	1,309	$	1,575
Property basis differences	3,025		1,497		918		192		—		412
Employee benefit obligations	1,067		362		470		54		13		60
AROs	727		458		221		—		—		—
Under recovered fuel and natural gas costs	318		13		305		—		—		—
Regulatory assets –
AROs	1,886		658		1,193		35		—		—
Employee benefit obligations	746		191		237		35		—		35
Remaining book value of retired assets	360		168		187		5		—		—
Storm damage reserves	216		—		216		—		—		—
Premium on reacquired debt	57		8		48		1		—		—
Other	678		171		187		61		1		201
Total deferred income tax liabilities	18,908		6,109		7,792		727		1,323		2,283
Deferred tax assets —
AROs	2,613		1,116		1,414		35		—		—
CAMT carryforwards	40		—		18		—		—		104
ITC and PTC carryforwards	1,380		48		719		—		384		—
Employee benefit obligations	897		196		279		49		16		87
Estimated loss on plants under construction	773		—		773		—		—		—
Estimated loss on regulatory disallowance	20		—		—		—		—		20
Other state deferred tax attributes	366		—		26		224		49		16
Federal effect of net state deferred tax liabilities	402		197		100		—		23		107
Other property basis differences	176		—		75		—		85		—
State effect of federal deferred taxes	126		126		—		—		—		—
Other partnership basis differences	60		—		—		—		60		—
Regulatory liability associated with the Tax Reform Legislation (not subject to normalization)	18		18		—		—		—		—
Long-term debt fair value adjustment	73		—		—		—		—		73
Other comprehensive losses	48		3		—		—		1		—
Other	601		227		160		50		20		86
Total deferred income tax assets	7,593		1,931		3,564		358		638		493
Valuation allowance	(333)		—		(157)		(41)		(27)		(6)
Net deferred income tax assets	7,260		1,931		3,407		317		611		487
Net deferred income taxes (assets)/liabilities	$	11,648	$	4,178	$	4,385	$	410	$	712	$	1,796

Recognized in the balance sheets:
Accumulated deferred income taxes – assets	$	(82)	$	—	$	—	$	(82)	$	—	$	—
Accumulated deferred income taxes – liabilities	$	11,730	$	4,178	$	4,385	$	492	$	712	$	1,796


	December 31, 2023
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Deferred tax liabilities —
Accelerated depreciation	$	9,683	$	2,566	$	3,628	$	339	$	1,346	$	1,576
Property basis differences	2,647		1,444		812		188		—		189


Employee benefit obligations	979		321		446		49		12		74
AROs	833		476		314		—		—		—
Under recovered fuel and natural gas costs	601		80		508		13		—		—
Regulatory assets –
AROs	1,902		667		1,196		39		—		—

Employee benefit obligations	797		213		260		37		—		11
Remaining book value of retired assets	369		143		221		5		—		—
Premium on reacquired debt	63		9		53		1		—		—
Other	700		182		223		43		2		191
Total deferred income tax liabilities	18,574		6,101		7,661		714		1,360		2,041
Deferred tax assets —
AROs	2,735		1,143		1,510		39		—		—
ITC and PTC carryforwards	1,387		12		691		—		481		—
Employee benefit obligations	985		224		316		52		10		89
Estimated loss on plants under construction	857		—		857		—		—		—
Estimated loss on regulatory disallowance	26		—		—		—		—		26
Other state deferred tax attributes	363		—		13		231		49		8
Federal effect of net state deferred tax liabilities	418		215		92		—		27		101
Other property basis differences	197		—		83		—		97		—
State effect of federal deferred taxes	115		115		—		—		—		—

Other partnership basis differences	85		—		—		—		85		—
Regulatory liability associated with the Tax Reform Legislation (not subject to normalization)	34		30		—		3		—		—
Long-term debt fair value adjustment	79		—		—		—		—		79
Other comprehensive losses	67		4		4		—		6		—
Other	538		188		152		57		18		74
Total deferred income tax assets	7,886		1,931		3,718		382		773		377
Valuation allowance	(206)		—		(75)		(41)		(27)		(7)
Net deferred income tax assets	7,680		1,931		3,643		341		746		370
Net deferred income taxes (assets)/liabilities	$	10,894	$	4,170	$	4,018	$	373	$	614	$	1,671

Recognized in the balance sheets:
Accumulated deferred income taxes – assets	$	(96)	$	—	$	—	$	(96)	$	—	$	—
Accumulated deferred income taxes – liabilities	$	10,990	$	4,170	$	4,018	$	469	$	614	$	1,671

Summary of tax credit carryforwards

Federal ITC/PTC carryforwards at December 31, 2024 were as follows:


	Southern Company		Alabama Power		Georgia Power		Southern Power
	(in millions)
Federal ITC/PTC carryforwards	$	765	$	48	$	147	$	384
Tax year in which federal ITC/PTC carryforwards begin expiring	2031		2032		2031		2035
Year by which federal ITC/PTC carryforwards are expected to be utilized	2028		2028		2028		2028

Summary of operating loss carryforward

At December 31, 2024, the net state income tax benefit of state and local NOL carryforwards and associated valuation allowances for Southern Company's subsidiaries were as follows:


Company/Jurisdiction	Approximate Net State Income Tax Benefit of NOL Carryforwards		Tax Year NOL Begins Expiring	Net State Valuation Allowance for NOL Carryforwards
	(in millions)			(in millions)
Mississippi Power
Mississippi	$	178	2032	$	(32)

Southern Power
Oklahoma	$	26	2035	$	(11)
Florida	10		2034	(10)
Other states	2		2034	—
Southern Power Total	$	38		$	(21)

Other(*)
New York	$	11	2036	$	(11)
New York City	14		2036	(14)
Other states	24		2025	(4)
Southern Company Total	$	265		$	(82)

(*)Represents other non-registrant Southern Company subsidiaries. Alabama Power, Georgia Power, and Southern Company Gas did not have material state or local NOL carryforwards at December 31, 2024.

Schedule of unrecognized tax benefits

Changes in unrecognized tax benefits for the periods presented were as follows:


	Southern Company		Georgia Power		Southern Company Gas
	(in millions)
Unrecognized tax benefits at December 31, 2021	$	47	$	—	$	—
Tax positions changes —
Increase from prior periods	33		—		32
Unrecognized tax benefits at December 31, 2022	80		—		32
Tax positions changes —
Increase from prior periods	88		86		2
Statute of limitations expiration	(52)		(9)		—
Unrecognized tax benefits at December 31, 2023	116		77		34
Tax positions changes —
Increase from prior periods	10		—		10
Decrease from prior periods	(44)		(43)		—
Unrecognized tax benefits at December 31, 2024	$	82	$	34	$	44