Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Assets and liabilities measured at fair value on a recurring basis

As of June 30, 2016, 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
As of June 30, 2016:	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	$	—	$	36	$	—	$	—	$	36
Interest rate derivatives	—		27		—		—		27
Nuclear decommissioning trusts^(a)	642		917		—		18		1,577
Cash equivalents	1,014		—		—		—		1,014
Other investments	9		—		1		—		10
Total	$	1,665	$	980	$	1	$	18	$	2,664
Liabilities:
Energy-related derivatives	$	—	$	110	$	—	$	—	$	110
Interest rate derivatives	—		7		—		—		7
Foreign currency derivatives	—		38		—		—		38
Total	$	—	$	155	$	—	$	—	$	155

Alabama Power
Assets:
Energy-related derivatives	$	—	$	10	$	—	$	—	$	10
Nuclear decommissioning trusts^(b)
Domestic equity	363		67		—		—		430
Foreign equity	46		47		—		—		93
U.S. Treasury and government agency securities	—		24		—		—		24
Corporate bonds	21		142		—		—		163
Mortgage and asset backed securities	—		22		—		—		22
Private Equity	—		—		—		18		18
Other	—		8		—		—		8
Cash equivalents	210		—		—		—		210
Total	$	640	$	320	$	—	$	18	$	978
Liabilities:
Energy-related derivatives	$	—	$	22	$	—	$	—	$	22



	Fair Value Measurements Using
As of June 30, 2016:	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)
Georgia Power
Assets:
Energy-related derivatives	$	—	$	15	$	—	$	—	$	15
Interest rate derivatives	—		14		—		—		14
Nuclear decommissioning trusts^{(b) (c)}
Domestic equity	187		1		—		—		188
Foreign equity	—		116		—		—		116
U.S. Treasury and government agency securities	—		109		—		—		109
Municipal bonds	—		57		—		—		57
Corporate bonds	—		159		—		—		159
Mortgage and asset backed securities	—		159		—		—		159
Other	25		6		—		—		31
Cash equivalents	90		—		—		—		90
Total	$	302	$	636	$	—	$	—	$	938
Liabilities:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5

Gulf Power
Assets:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2
Cash equivalents	20		—		—		—		20
Total	$	20	$	2	$	—	$	—	$	22
Liabilities:
Energy-related derivatives	$	—	$	55	$	—	$	—	$	55
Interest rate derivatives	—		7		—		—		7
Total	$	—	$	62	$	—	$	—	$	62

Mississippi Power
Assets:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1
Cash equivalents	102		—		—		—		102
Total	$	102	$	1	$	—	$	—	$	103
Liabilities:
Energy-related derivatives	$	—	$	23	$	—	$	—	$	23



	Fair Value Measurements Using
As of June 30, 2016:	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 Power
Assets:
Energy-related derivatives	$	—	$	8	$	—	$	—	$	8
Cash equivalents	449		—		—		—		449
Total	$	449	$	8	$	—	$	—	$	457
Liabilities:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5
Foreign currency derivatives	—		38		—		—		38
Total	$	—	$	43	$	—	$	—	$	43


(a)	For additional detail, see the nuclear decommissioning trusts sections for Alabama Power and Georgia Power in this table.


(b)	Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies.


(c)	Includes the investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. As of June 30, 2016, approximately $46 million of the fair market value of Georgia Power's nuclear decommissioning trust funds' securities were on loan to creditors under the funds' managers' securities lending program.

Fair value measurements of investments calculated at net asset value per share as well as the nature and risk of those investments

As of June 30, 2016, the fair value measurements of private equity investments held in the nuclear decommissioning trust that are calculated at net asset value per share (or its equivalent) as a practical expedient, as well as the nature and risks of those investments, were as follows:



As of June 30, 2016:	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company	$	18	$	28	Not Applicable	Not Applicable
Alabama Power	$	18	$	28	Not Applicable	Not Applicable

Financial instruments for which carrying amount did not equal fair value

As of June 30, 2016, other financial instruments for which the carrying amount did not equal fair value were as follows:



	Carrying Amount		Fair Value
	(in millions)
Long-term debt, including securities due within one year:
Southern Company	$	37,953	$	40,992
Alabama Power	$	7,090	$	7,940
Georgia Power	$	10,603	$	11,881
Gulf Power	$	1,182	$	1,275
Mississippi Power	$	2,983	$	2,967
Southern Power	$	4,332	$	4,523