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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Details of income tax provisions
Details of income tax provisions are as follows:
2023
Southern CompanyAlabama PowerGeorgia
Power		Mississippi PowerSouthern Power Southern Company Gas
(in millions)
Federal —
Current$54 $242 $205 $49 $(320)$62 
Deferred299 (257)195 (26)334 68 
Total federal
353 (15)400 23 14 130 
State —
Current41 82 37 1 (1)24 
Deferred102 14 11 12 (1)57 
Total state
143 96 48 13 (2)81 
Total$496 $81 $448 $36 $12 $211 
2022
Southern CompanyAlabama PowerGeorgia
Power		Mississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Federal —
Current$10 $54 $38 $42 $(43)$122 
Deferred455 259 152 (16)56 (3)
Total federal
465 313 190 26 13 119 
State —
Current27 14 (21)— 2 42 
Deferred303 96 201 11 5 19 
Total state
330 110 180 11 7 61 
Total$795 $423 $370 $37 $20 $180 
2021
Southern CompanyAlabama PowerGeorgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
(in millions)
Federal —
Current$50 $104 $311 $25 $(340)$85 
Deferred36 172 (449)(15)343 35 
Total federal
86 276 (138)10 3 120 
State —
Current(25)23 71 — (16)(68)
Deferred206 73 (101)11 — 223 
Total state
181 96 (30)11 (16)155 
Total$267 $372 $(168)$21 $(13)$275 
Summary of amortization of tax credits ITCs amortized in 2023, 2022, and 2021 were immaterial for the traditional electric operating companies and Southern Company Gas and were as follows for Southern Company and Southern Power:
Southern CompanySouthern Power
(in millions)
2023$84 $58 
202283 58 
202184 58 
Schedule of effective income tax reconciliation
A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:
2023
Southern CompanyAlabama PowerGeorgia
Power		Mississippi PowerSouthern PowerSouthern Company Gas
Federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
State income tax, net of federal deduction2.6 5.2 1.5 4.9 (0.7)7.8 
Employee stock plans' dividend deduction(0.5)— — — — — 
Non-deductible book depreciation0.7 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 interests0.6 — — — 11.1 — 
Other(0.2)(0.2)(0.3)0.1 0.1 (0.6)
Effective income tax (benefit) rate11.4 %5.6 %17.7 %16.2 %5.1 %25.6 %
2022
Southern CompanyAlabama PowerGeorgia
Power		Mississippi PowerSouthern PowerSouthern Company Gas
Federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
State income tax, net of federal deduction6.2 4.8 6.5 4.4 1.9 6.4 
Employee stock plans' dividend deduction(0.5)— — — — — 
Non-deductible book depreciation0.6 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 interests0.5 — — — 8.4 — 
Other— 0.3 — 0.3 (0.1)(0.9)
Effective income tax (benefit) rate18.8 %23.8 %16.9 %18.2 %7.4 %23.9 %
2021
Southern CompanyAlabama PowerGeorgia
Power		Mississippi PowerSouthern PowerSouthern Company Gas
Federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
State income tax, net of federal deduction5.5 4.6 (5.7)4.9 (8.0)15.1 
Employee stock plans' dividend deduction(0.9)— — — — — 
Non-deductible book depreciation0.9 0.5 3.1 0.4 — — 
Flowback of excess deferred income taxes(11.7)(2.6)(49.9)(15.2)— (2.8)
AFUDC-Equity(1.5)(0.7)(6.4)— — — 
Federal PTCs— — — — (4.6)— 
ITC amortization(2.2)(0.1)(0.4)— (29.7)(0.1)
Noncontrolling interests0.8 — — — 13.4 — 
Leveraged lease impairments and dispositions
(1.4)— — — — — 
Other(0.1)0.2 (1.9)0.6 (0.4)0.6 
Effective income tax (benefit) rate10.4 %22.9 %(40.2)%11.7 %(8.3)%33.8 %
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, 2023
Southern CompanyAlabama PowerGeorgia
Power		Mississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Deferred tax liabilities —
Accelerated depreciation$9,683 $2,566 $3,628 $339 $1,346 $1,576 
Property basis differences2,647 1,444 812 188 — 189 
Employee benefit obligations979 321 446 49 12 74 
AROs833 476 314 — — — 
Under recovered fuel and natural gas costs 601 80 508 13 — — 
Regulatory assets –
AROs1,902 667 1,196 39 — — 
Employee benefit obligations797 213 260 37 — 11 
Remaining book value of retired assets369 143 221 5 — — 
Premium on reacquired debt63 9 53 1 — — 
Other700 182 223 43 2 191 
Total deferred income tax liabilities18,574 6,101 7,661 714 1,360 2,041 
Deferred tax assets —
AROs2,735 1,143 1,510 39 — — 
ITC and PTC carryforwards1,387 12 691 — 481 — 
Employee benefit obligations985 224 316 52 10 89 
Estimated loss on plants under construction857 — 857 — — — 
Estimated loss on regulatory disallowance26 — — — — 26 
Other state deferred tax attributes363 — 13 231 49 8 
Federal effect of net state deferred tax liabilities418 215 92 — 27 101 
Other property basis differences197 — 83 — 97 — 
State effect of federal deferred taxes115 115 — — — — 
Other partnership basis differences85 — — — 85 — 
Regulatory liability associated with the Tax Reform Legislation (not subject to normalization)34 30 — 3 — — 
Long-term debt fair value adjustment79 — — — — 79 
Other comprehensive losses67 4 4 — 6 — 
Other538 188 152 57 18 74 
Total deferred income tax assets7,886 1,931 3,718 382 773 377 
Valuation allowance(206)— (75)(41)(27)(7)
Net deferred income tax assets7,680 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 
December 31, 2022
Southern CompanyAlabama PowerGeorgia
Power		Mississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Deferred tax liabilities —
Accelerated depreciation$9,443 $2,564 $3,447 $338 $1,351 $1,505 
Property basis differences2,350 1,303 693 179 — 150 
Employee benefit obligations888 284 412 43 11 68 
AROs876 499 324 — — — 
Under recovered fuel and natural gas costs805 185 548 40 — 32 
Regulatory assets –
AROs2,006 679 1,285 42 — — 
Employee benefit obligations677 180 226 30 — 15 
Remaining book value of retired assets400 142 253 5 — — 
Premium on reacquired debt66 9 57 — — — 
Other555 179 181 40 14 82 
Total deferred income tax liabilities18,066 6,024 7,426 717 1,376 1,852 
Deferred tax assets —
AROs2,882 1,178 1,609 42 — — 
ITC and PTC carryforwards1,685 12 673 — 794 — 
Employee benefit obligations890 198 304 47 9 89 
Estimated loss on plants under construction888 — 888 — — — 
Other state deferred tax attributes388 — 12 239 51 7 
Federal effect of net state deferred tax liabilities365 175 88 — 28 92 
Other property basis differences207 — 79 — 109 — 
State effect of federal deferred taxes136 136 — — — — 
Other partnership basis differences111 — — — 111 — 
Regulatory liability associated with the Tax Reform Legislation (not subject to normalization)137 127 — 9 — — 
Long-term debt fair value adjustment85 — — — — 85 
Other comprehensive losses72 4 5 — 5 — 
Other552 213 186 62 17 28 
Total deferred income tax assets8,398 2,043 3,844 399 1,124 301 
Valuation allowance(257)— (125)(41)(27)(9)
Net deferred income tax assets8,141 2,043 3,719 358 1,097 292 
Net deferred income taxes (assets)/liabilities$9,925 $3,981 $3,707 $359 $279 $1,560 
Recognized in the balance sheets:
Accumulated deferred income taxes – assets$(111)$— $— $(107)$— $— 
Accumulated deferred income taxes – liabilities$10,036 $3,981 $3,707 $466 $279 $1,560 
Summary of tax credit carryforwards
Federal ITC/PTC carryforwards at December 31, 2023 were as follows:
Southern CompanyAlabama
Power		Georgia
Power		Southern
Power
(in millions)
Federal ITC/PTC carryforwards$829 $12 $131 $481 
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
2029
2028
2028
2029
Summary of operating loss carryforward
At December 31, 2023, the net state income tax benefit of state and local NOL carryforwards for Southern Company's subsidiaries were as follows:
Company/JurisdictionApproximate Net State Income Tax Benefit of NOL CarryforwardsTax Year NOL
Begins Expiring
(in millions)
Mississippi Power
Mississippi $183 2032
Southern Power
Oklahoma26 2035
Florida10 2034
Other states2 Various
Southern Power Total$38 
Other(*)
New York11 2036
New York City14 2036
Other states30 Various
Southern Company Total$276 
(*)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, 2023.
Changes in 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, 2020$44 $— $— 
Tax positions changes –
Increase from prior periods3 — — 
Unrecognized tax benefits at December 31, 202147 — — 
Tax positions changes –
Increase from prior periods33 — 32 
Unrecognized tax benefits at December 31, 202280 — 32 
Tax positions changes –
Increase from prior periods88 86 2 
Statute of limitations expiration(52)(9)— 
Unrecognized tax benefits at December 31, 2023
$116 $77 $34