Derivatives (Tables)

9 Months Ended

Sep. 30, 2011

Derivatives [Abstract]

Energy-related derivative contracts

	Power						Gas
			Longest		Longest		Net		Longest		Longest
	Net Sold		Hedge		Non-Hedge		Purchased		Hedge		Non-Hedge
	MWHs		Date		Date		mmBtu		Date		Date
	(in millions)						(in millions)
Southern Company		0.3		—		2011		160		2015		2015
Alabama Power		—		—		—		31		2015		—
Georgia Power		—		—		—		66		2015		—
Gulf Power		—		—		—		26		2015		—
Mississippi Power		—		—		—		31		2015		—
Southern Power		0.3		—		2011		7		2012		2015

Notional amount of interest rate derivatives

	Notional		Interest Rate			Interest Rate			Hedge Maturity	Fair Value Gain (Loss)
	Amount		Received			Paid			Date	September 30, 2011
	(in millions)									(in millions)
Cash flow hedges of existing debt
Southern Company	$	300	3-month LIBOR + 0.40% spread				1.24	%*	October 2011	$	—
Cash flow hedges of forecasted debt
Alabama Power		300	3-month LIBOR				2.90	%*	December 2022		(12	)
Mississippi Power		150	3-month LIBOR				2.37	%*	September 2021		(4	)
Mississippi Power		150	3-month LIBOR				1.25	%*	September 2016		—
Mississippi Power		300	3-month LIBOR				2.66	%*	April 2022		(11	)
Fair value hedges of existing debt
						3-month LIBOR +
Southern Company		350		4.15	%	1.96%* spread			May 2014		16
Total	$	1,550								$	(11	)

* Weighted Average

Total deferred gains and losses are expected to be amortized into earnings

	Estimated Gain (Loss)to
	be Reclassified for the			Total Deferred
	12 Months Ending			Gains (Losses)
Registrant	September 30, 2012			Amortized Through
	(in millions)
Southern Company	$	(16	)		2037
Alabama Power		—			2035
Georgia Power		(3	)		2037
Gulf Power		(1	)		2020
Mississippi Power		(1	)		2022
Southern Power		(11	)		2016

Notional amount of foreign currency derivatives

				Fair Value Gain
	Notional	Average	Hedge	(Loss)
	Amount	Forward Rate	Maturity Date	September 30, 2011
	(in millions)			(in millions)
Fair value hedges of firm commitments
Mississippi Power	EUR28.3	1.297 Dollars per Euro	Various through March 2014	$	1

Fair value of energy-related derivatives and interest rate derivatives

Asset Derivatives at September 30, 2011
	Fair Value
Derivative Category and Balance Sheet	Southern		Alabama		Georgia		Gulf Power		Mississippi		Southern
Location	Company		Power		Power		Power		Power		Power
	(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets	$	1	$	—	$	1	$	—	$	—
Other deferred charges and assets		1		—		1		—		—
Total derivatives designated as hedging instruments for regulatory purposes	$	2	$	—	$	2	$	—	$	—		N/A
Derivatives designated as hedging instruments in cash flow and fair value hedges
Interest rate derivatives:
Other current assets	$	6	$	—	$	—	$	—	$	—	$	—
Other deferred charges and assets		10		—		—		—		—		—
Foreign currency derivatives:
Other current assets		3		—		—		—		3		—
Total derivatives designated as hedging instruments in cash flow and fair value hedges	$	19	$	—	$	—	$	—	$	3	$	—
Derivatives not designated as hedging instruments
Energy-related derivatives:
Other current assets*	$	1	$	—	$	—	$	—	$	—	$	—
Assets from risk management activities		—		—		—		—		—		1
Total derivatives not designated as hedging instruments	$	1	$	—	$	—	$	—	$	—	$	1
Total asset derivatives	$	22	$	—	$	2	$	—	$	3	$	1

* Southern Company includes “Assets from risk management activities” in “Other current assets” where applicable.

Liability Derivatives at September 30, 2011
	Fair Value
Derivative Category and Balance Sheet	Southern		Alabama		Georgia		Gulf		Mississippi		Southern
Location	Company		Power		Power		Power		Power		Power
	(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Liabilities from risk management activities	$	114	$	24	$	53	$	10	$	27
Other deferred credits and liabilities		35		5		15		7		8
Total derivatives designated as hedging instruments for regulatory purposes	$	149	$	29	$	68	$	17	$	35		N/A
Derivatives designated as hedging instruments in cash flow and fair value hedges
Interest rate derivatives:
Liabilities from risk management activities	$	15	$	—	$	—	$	—	$	15	$	—
Other deferred credits and liabilities		12		12		—		—		—		—
Foreign currency derivatives:
Liabilities from risk management activities		2		—		—		—		2		—
Total derivatives designated as hedging instruments in cash flow and fair value hedges	$	29	$	12	$	—	$	—	$	17	$	—
Derivatives not designated as hedging instruments
Energy-related derivatives:
Liabilities from risk management activities	$	5	$	—	$	—	$	—	$	—	$	5
Total liability derivatives	$	183	$	41	$	68	$	17	$	52	$	5

Pre-tax effect of unrealized derivative gains (losses)

Regulatory Hedge Unrealized Gain (Loss) Recognized on the Balance Sheet
Derivative Category and Balance Sheet	Southern			Alabama			Georgia			Gulf			Mississippi
Location	Company			Power			Power			Power			Power
	(in millions)
Energy-related derivatives:
Other regulatory assets, current	$	(114	)	$	(24	)	$	(53	)	$	(10	)	$	(27	)
Other regulatory assets, deferred		(35	)		(5	)		(15	)		(7	)		(8	)
Other regulatory liabilities, current		1			—			—			—			—
Other current liabilities*		—			—			1			—			—
Other regulatory liabilities, deferred		1			—			—			—			—
Other deferred credits and liabilities**		—			—			1			—			—
Total energy-related derivative gains (losses)	$	(147	)	$	(29	)	$	(66	)	$	(17	)	$	(35	)

*	Georgia Power includes “Other regulatory liabilities, current” in “Other current liabilities.”
**	Georgia Power includes “Other regulatory liabilities, deferred” in “Other deferred credits and liabilities.”

Pre-tax effect of derivatives designated as cash flow hedging instruments

	Gain (Loss)
	Recognized in OCI						Gain (Loss) Reclassified from Accumulated OCI into
Derivatives in Cash Flow	on Derivative						Income (Effective Portion)
Hedging Relationships	(Effective Portion)						Statements of Income Location	Amount
	2011			2010				2011			2010
	(in millions)							(in millions)
Southern Company
Energy-related derivatives	$	—		$	3		Fuel	$	—		$	—
Interest rate derivatives		(27	)		(1	)	Interest expense, net of amounts capitalized		(5	)		(7	)
Total	$	(27	)	$	2			$	(5	)	$	(7	)
Alabama Power
Interest rate derivatives	$	(12	)	$	—		Interest expense, net of amounts capitalized	$	—		$	—
Georgia Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	(1	)	$	(3	)
Gulf Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	—		$	—
Mississippi Power
Interest rate derivatives	$	(15	)	$	—		Interest expense, net of amounts capitalized	$	—		$	—
Southern Power
Energy-related derivatives	$	—		$	3		Fuel	$	—		$	—
Interest rate derivatives		—			—		Interest expense, net of amounts capitalized		(3	)		(3	)
Total	$	—		$	3			$	(3	)	$	(3	)

For the nine months ended September 30, 2011 and September 30, 2010, the pre-tax effect of energy-related derivatives and interest rate derivatives designated as cash flow hedging instruments on the statements of income were as follows:

	Gain (Loss)
	Recognized in OCI						Gain (Loss) Reclassified from Accumulated OCI into
Derivatives in Cash Flow	on Derivative						Income (Effective Portion)
Hedging Relationships	(Effective Portion)						Statements of Income Location	Amount
	2011			2010				2011			2010
	(in millions)							(in millions)
Southern Company
Energy-related derivatives	$	1		$	4		Fuel	$	—		$	—
Interest rate derivatives		(23	)		(3	)	Interest expense, net of amounts capitalized		(10	)		(24	)
Total	$	(22	)	$	1			$	(10	)	$	(24	)
Alabama Power
Interest rate derivatives	$	(8	)	$	—		Interest expense, net of amounts capitalized	$	3		$	(1	)
Georgia Power
Interest rate derivatives	$	—		$	—		Interest expense, net of amounts capitalized	$	(3	)	$	(13	)
Gulf Power
Interest rate derivatives	$	—		$	(1	)	Interest expense, net of amounts capitalized	$	(1	)	$	(1	)
Mississippi Power
Interest rate derivatives	$	(15	)	$	—		Interest expense, net of amounts capitalized	$	—		$	—
Southern Power
Energy-related derivatives	$	1		$	4		Fuel	$	—		$	—
Interest rate derivatives		—			—		Interest expense, net of amounts capitalized		(8	)		(8	)
Total	$	1		$	4			$	(8	)	$	(8	)

Fair value of derivative liabilities with contingent features

	Southern		Alabama		Georgia		Gulf		Mississippi		Southern
	Company		Power		Power		Power		Power		Power
					(in millions)
Derivative liabilities	$	32	$	7	$	16	$	2	$	5	$	2