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Derivatives (Tables)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Energy-Related Derivatives
At June 30, 2021, the net volume of energy-related derivative contracts for natural gas positions, together with the longest hedge date over which the respective entity is hedging its exposure to the variability in future cash flows for forecasted transactions and the longest non-hedge date for derivatives not designated as hedges, were as follows:
Net
Purchased
mmBtu		Longest
Hedge
Date		Longest
Non-Hedge
Date
(in millions)
Southern Company(*)
97820302031
Alabama Power732024—
Georgia Power1252024—
Mississippi Power852025—
Southern Power920302022
Southern Company Gas(*)
68620242031
(*)Southern Company Gas' derivative instruments include both long and short natural gas positions. A long position is a contract to purchase natural gas and a short position is a contract to sell natural gas. Southern Company Gas' volume represents the net of long natural gas positions of 4.6 billion mmBtu and short natural gas positions of 3.9 billion mmBtu at June 30, 2021, which is also included in Southern Company's total volume. See Note (K) under "Southern Company Gas" for information regarding Southern Company Gas' sale of Sequent.
Schedule of Interest Rate Derivatives
At June 30, 2021, the following interest rate derivatives were outstanding:
Notional
Amount		Interest
Rate
Received		Weighted
Average
Interest
Rate Paid		Hedge
Maturity
Date		Fair Value Gain (Loss) at June 30, 2021
 (in millions)   (in millions)
Cash Flow Hedges of Existing Debt
Mississippi Power$60 1-month LIBOR0.58%December 2021$— 
Fair Value Hedges of Existing Debt
Southern Company parent400 1.75%
1-month LIBOR + 0.68%
March 2028— 
Southern Company parent1,000 3.70%
1-month LIBOR + 2.36%
April 20304 
Southern Company Gas500 1.75%
1-month LIBOR + 0.38%
January 20313 
Southern Company$1,960 $7 
Schedule of Foreign Currency Derivatives
At June 30, 2021, Southern Power had the following outstanding foreign currency derivatives designated as cash flow hedges of existing debt:
Pay NotionalPay
Rate		Receive NotionalReceive
Rate		Hedge
Maturity Date		Fair Value Gain (Loss) at June 30, 2021
(in millions)(in millions) (in millions)
$677 2.95%€600 1.00%June 2022$27 
564 3.78%500 1.85%June 202618 
$1,241 €1,100 $45 
Schedule of Derivative Category and Balance Sheet Location
The fair value of energy-related derivatives, interest rate derivatives, and foreign currency derivatives was reflected in the balance sheets as follows:
At June 30, 2021At December 31, 2020
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Southern Company
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Assets from risk management activities/Other current liabilities$130 $2 $24 $11 
Other deferred charges and assets/Other deferred credits and liabilities54 8 18 19 
Total derivatives designated as hedging instruments for regulatory purposes$184 $10 $42 $30 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Assets from risk management activities/Other current liabilities$13 $— $3 $5 
Other deferred charges and assets/Other deferred credits and liabilities1 — — — 
Interest rate derivatives:
Assets from risk management activities/Other current liabilities17 — 20 — 
Other deferred charges and assets/Other deferred credits and liabilities— 9 — — 
Foreign currency derivatives:
Assets from risk management activities/Other current liabilities27 10 — 23 
Other deferred charges and assets/Other deferred credits and liabilities28 — 87 — 
Total derivatives designated as hedging instruments in cash flow and fair value hedges$86 $19 $110 $28 
Derivatives not designated as hedging instruments
Energy-related derivatives:
Assets from risk management activities/Other current liabilities$8 $7 $388 $331 
Other deferred charges and assets/Other deferred credits and liabilities— — 270 232 
Assets held for sale, current/Liabilities held for sale, current914 990 — — 
Total derivatives not designated as hedging instruments$922 $997 $658 $563 
Gross amounts recognized$1,192 $1,026 $810 $621 
Gross amounts offset(a)
(851)(892)(529)(557)
Net amounts recognized in the Balance Sheets(b)
$341 $134 $281 $64 
At June 30, 2021At December 31, 2020
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Alabama Power
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets/Other current liabilities$31 $1 $7 $2 
Other deferred charges and assets/Other deferred credits and liabilities15 2 5 5 
Total derivatives designated as hedging instruments for regulatory purposes$46 $3 $12 $7 
Gross amounts recognized$46 $3 $12 $7 
Gross amounts offset(3)(3)(7)(7)
Net amounts recognized in the Balance Sheets$43 $— $5 $— 
Georgia Power
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets/Other current liabilities$52 $1 $7 $5 
Other deferred charges and assets/Other deferred credits and liabilities21 3 8 8 
Total derivatives designated as hedging instruments for regulatory purposes$73 $4 $15 $13 
Gross amounts recognized$73 $4 $15 $13 
Gross amounts offset(4)(4)(12)(12)
Net amounts recognized in the Balance Sheets$69 $— $3 $1 
Mississippi Power
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets/Other current liabilities$28 $— $4 $3 
Other deferred charges and assets/Other deferred credits and liabilities16 3 5 6 
Total derivatives designated as hedging instruments for regulatory purposes$44 $3 $9 $9 
Gross amounts recognized$44 $3 $9 $9 
Gross amounts offset(3)(3)(7)(7)
Net amounts recognized in the Balance Sheets$41 $— $2 $2 
At June 30, 2021At December 31, 2020
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Southern Power
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Other current assets/Other current liabilities$4 $— $2 $2 
Foreign currency derivatives:
Other current assets/Other current liabilities27 10 — 23 
Other deferred charges and assets/Other deferred credits and liabilities28 — 87 — 
Total derivatives designated as hedging instruments in cash flow and fair value hedges$59 $10 $89 $25 
Derivatives not designated as hedging instruments
Energy-related derivatives:
Other current assets/Other current liabilities$— $— $— $1 
Total derivatives not designated as hedging instruments$— $— $— $1 
Net amounts recognized in the Balance Sheets$59 $10 $89 $26 
At June 30, 2021At December 31, 2020
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Southern Company Gas
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Assets from risk management activities/Other current liabilities$19 $— $6 $1 
Other deferred charges and assets/Other deferred credits and liabilities2 — — — 
Total derivatives designated as hedging instruments for regulatory purposes$21 $— $6 $1 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Assets from risk management activities/Other current liabilities$9 $— $1 $3 
Other deferred charges and assets/Other deferred credits and liabilities1 — — — 
Interest rate derivatives:
Assets from risk management activities/Liabilities from risk management activities-current4 — — — 
Total derivatives designated as hedging instruments in cash flow and fair value hedges$14 $— $1 $3 
Derivatives not designated as hedging instruments
Energy-related derivatives:
Assets from risk management activities/Other current liabilities$8 $7 $388 $330 
Other deferred charges and assets/Other deferred credits and liabilities— — 270 232 
Assets held for sale, current/Liabilities held for sale, current914 990 — — 
Total derivatives not designated as hedging instruments$922 $997 $658 $562 
Gross amounts of recognized$957 $997 $665 $566 
Gross amounts offset(a)
(841)(882)(503)(531)
Net amounts recognized in the Balance Sheets(b)
$116 $115 $162 $35 
(a)Gross amounts offset include cash collateral held on deposit in broker margin accounts of $41 million and $28 million at June 30, 2021 and December 31, 2020, respectively.
(b)Net amounts of derivative instruments outstanding exclude immaterial premium and intrinsic value associated with weather derivatives for both periods presented.
Schedule of Pre-tax Effects of Unrealized Derivative Gains (Losses)
At June 30, 2021 and December 31, 2020, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred were as follows:
Regulatory Hedge Unrealized Gain (Loss) Recognized in the Balance Sheet
Derivative Category and Balance Sheet
Location		Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern Company Gas
 (in millions)
At June 30, 2021:
Energy-related derivatives:
Other regulatory liabilities, current$120 $31 $51 $28 $10 
Other regulatory liabilities, deferred46 13 18 14 1 
Total energy-related derivative gains (losses)$166 $44 $69 $42 $11 
At December 31, 2020:
Energy-related derivatives:
Other regulatory assets, deferred$(2)$— $(1)$(1)$— 
Other regulatory liabilities, current12 5 2 1 4 
Other regulatory liabilities, deferred2 1 1 — — 
Total energy-related derivative gains (losses)$12 $6 $2 $— $4 
Schedule of Pre-Tax Effects of Cash Flow Hedging on AOCI
For the three and six months ended June 30, 2021 and 2020, the pre-tax effects of cash flow hedge accounting on accumulated OCI were as follows:
Gain (Loss) Recognized in OCI on DerivativeFor the Three Months Ended June 30,For the Six Months Ended June 30,
2021202020212020
(in millions)(in millions)
Southern Company
Energy-related derivatives$16 $(2)$20 $(6)
Interest rate derivatives(1)(1)2 (28)
Foreign currency derivatives4 17 (43)(65)
Total$19 $14 $(21)$(99)
Southern Power
Energy-related derivatives$5 $(2)$8 $(2)
Foreign currency derivatives4 17 (43)(65)
Total$9 $15 $(35)$(67)
Southern Company Gas
Energy-related derivatives$11 $— $12 $(4)
Interest rate derivatives— (1)— (25)
Total$11 $(1)$12 $(29)
Schedule of Pre-Tax Effects of Cash Flow and Fair Value Hedging on Income
For the three and six months ended June 30, 2021 and 2020, the pre-tax effects of cash flow and fair value hedge accounting on income were as follows:
Location and Amount of Gain (Loss) Recognized in Income on Cash Flow and Fair Value Hedging RelationshipsFor the Three Months Ended June 30,For the Six Months Ended June 30,
2021202020212020
(in millions)(in millions)
Southern Company
Total cost of natural gas$231 $144 $814 $583 
Gain (loss) on energy-related cash flow hedges(a)
1 (1)(2)(8)
Total depreciation and amortization891 873 1,762 1,730 
Gain (loss) on energy-related cash flow hedges(a)
1 (1)4 (2)
Total interest expense, net of amounts capitalized(450)(444)(901)(900)
Gain (loss) on interest rate cash flow hedges(a)
(7)(6)(14)(13)
Gain (loss) on foreign currency cash flow hedges(a)
(6)(6)(12)(12)
Gain (loss) on interest rate fair value hedges(b)
(3)1 (12)30 
Total other income (expense), net108 101 167 204 
Gain (loss) on foreign currency cash flow hedges(a)(c)
17 27 (43)(4)
Southern Power
Total depreciation and amortization$132 $121 $251 $239 
Gain (loss) on energy-related cash flow hedges(a)
1 (1)4 (2)
Total interest expense, net of amounts capitalized(37)(38)(75)(77)
Gain (loss) on foreign currency cash flow hedges(a)
(6)(6)(12)(12)
Total other income (expense), net1 1 8 4 
Gain (loss) on foreign currency cash flow hedges(a)(c)
17 27 (43)(4)
(a)Reclassified from accumulated OCI into earnings.
(b)For fair value hedges, changes in the fair value of the derivative contracts are generally equal to changes in the fair value of the underlying debt and have no material impact on income.
(c)The reclassification from accumulated OCI into other income (expense), net completely offsets currency gains and losses arising from changes in the U.S. currency exchange rates used to record the euro-denominated notes.
Schedule of Cumulative Basis Adjustments for Fair Value Hedges
At June 30, 2021 and December 31, 2020, the following amounts were recorded on the balance sheets related to cumulative basis adjustments for fair value hedges:
Carrying Amount of the Hedged ItemCumulative Amount of Fair Value Hedging Adjustment included in Carrying Amount of the Hedged Item
Balance Sheet Location of Hedged ItemsAt June 30, 2021At December 31, 2020At June 30, 2021At December 31, 2020
(in millions)(in millions)
Southern Company
Securities due within one year$— $(1,509)$— $(10)
Long-term debt(1,883)— — — 
Southern Company Gas
Long-term debt$(492)$— $3 $— 
Schedule of Pre-tax Effect of Interest Rate and Energy Related Derivatives on Income
For the three and six months ended June 30, 2021 and 2020, the pre-tax effects of energy-related derivatives not designated as hedging instruments on the statements of income of Southern Company and Southern Company Gas were as follows:
Gain (Loss)
Three Months Ended June 30,Six Months Ended June 30,
Derivatives in Non-Designated Hedging RelationshipsStatements of Income Location2021202020212020
(in millions)(in millions)
Energy-related derivatives:
Natural gas revenues(*)
$(103)$14 $(120)$84 
Cost of natural gas9 5 16 13 
Total derivatives in non-designated hedging relationships$(94)$19 $(104)$97 
(*)Excludes immaterial gains (losses) recorded in natural gas revenues associated with weather derivatives for all periods presented.