Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of March 31, 2018, 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 March 31, 2018:	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)(b)	$	360	$	172	$	—	$	—	$	532
Foreign currency derivatives	—		182		—		—		182
Nuclear decommissioning trusts^(c)	776		1,019		—		32		1,827
Cash equivalents	1,664		—		—		—		1,664
Other investments	9		—		1		—		10
Total	$	2,809	$	1,373	$	1	$	32	$	4,215
Liabilities:
Energy-related derivatives^(a)(b)	$	506	$	136	$	—	$	—	$	642
Interest rate derivatives	—		61		—		—		61
Foreign currency derivatives	—		22		—		—		22
Contingent consideration	—		—		22		—		22
Total	$	506	$	219	$	22	$	—	$	747

Alabama Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Nuclear decommissioning trusts:^(d)
Domestic equity	437		83		—		—		520
Foreign equity	63		58		—		—		121
U.S. Treasury and government agency securities	—		19		—		—		19
Corporate bonds	21		162		—		—		183
Mortgage and asset backed securities	—		17		—		—		17
Private Equity	—		—		—		32		32
Other	6		—		—		—		6
Cash equivalents	459		—		—		—		459
Total	$	986	$	342	$	—	$	32	$	1,360
Liabilities:
Energy-related derivatives	$	—	$	8	$	—	$	—	$	8



	Fair Value Measurements Using:
As of March 31, 2018:	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	$	—	$	5	$	—	$	—	$	5
Nuclear decommissioning trusts:^{(d) (e)}
Domestic equity	238		1		—		—		239
Foreign equity	—		141		—		—		141
U.S. Treasury and government agency securities	—		241		—		—		241
Municipal bonds	—		76		—		—		76
Corporate bonds	—		168		—		—		168
Mortgage and asset backed securities	—		40		—		—		40
Other	11		14		—		—		25
Cash equivalents	1,055		—		—		—		1,055
Total	$	1,304	$	686	$	—	$	—	$	1,990
Liabilities:
Energy-related derivatives	$	—	$	18	$	—	$	—	$	18
Interest rate derivatives	—		8		—		—		8
Total	$	—	$	26	$	—	$	—	$	26

Gulf Power
Assets:
Cash equivalents	$	27	$	—	$	—	$	—	$	27
Liabilities:
Energy-related derivatives	$	—	$	17	$	—	$	—	$	17

Mississippi Power
Assets:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2
Cash equivalents	103		—		—		—		103
Total	$	103	$	2	$	—	$	—	$	105
Liabilities:
Energy-related derivatives	$	—	$	8	$	—	$	—	$	8



	Fair Value Measurements Using:
As of March 31, 2018:	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	$	—	$	4	$	—	$	—	$	4
Foreign currency derivatives	—		182		—		—		182
Total	$	—	$	186	$	—	$	—	$	186
Liabilities:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Foreign currency derivatives	—		22		—		—		22
Contingent consideration	—		—		22		—		22
Total	$	—	$	25	$	22	$	—	$	47

Southern Company Gas
Assets:
Energy-related derivatives^(a)(b)	$	360	$	158	$	—	$	—	$	518
Liabilities:
Energy-related derivatives^(a)(b)	$	506	$	82	$	—	$	—	$	588


(a)	Excludes $4 million associated with premiums and certain weather derivatives accounted for based on intrinsic value rather than fair value.


(b)	Excludes cash collateral of $223 million.


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


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


(e)	Includes the investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. As of March 31, 2018, approximately $76 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 March 31, 2018, the fair value measurements of private equity investments held in the nuclear decommissioning trusts 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 March 31, 2018:	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company	$	32	$	19	Not Applicable	Not Applicable
Alabama Power	$	32	$	19	Not Applicable	Not Applicable

Financial Instruments for Which Carrying Amount Did Not Equal Fair Value

As of March 31, 2018, 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	$	47,479	$	48,836
Alabama Power	7,626		8,093
Georgia Power	11,402		11,851
Gulf Power	1,285		1,317
Mississippi Power	1,781		1,790
Southern Power	5,878		6,006
Southern Company Gas	6,036		6,276