FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Assets and liabilities measured at fair value on a recurring basis

The fair value increases (decreases) of the Funds, including unrealized gains (losses) and reinvested interest and dividends and excluding the Funds' expenses, for 2023, 2022, and 2021 are shown in the table below.


	Southern Company		Alabama Power		Georgia Power
	(in millions)
Fair value increases (decreases)
2023	$	281	$	157	$	124
2022	(360)		(171)		(189)
2021	274		200		74

Unrealized gains (losses)
At December 31, 2023	$	241	$	119	$	122
At December 31, 2022	(391)		(204)		(187)
At December 31, 2021	(27)		(30)		3

At December 31, 2023, 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
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2023:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives(a)	$	6	$	49	$	—	$	—	$	55


Investments in trusts:(b)
Domestic equity	764		216		—		—		980
Foreign equity	145		171		—		—		316
U.S. Treasury and government agency securities	—		369		—		—		369
Municipal bonds	—		48		—		—		48
Pooled funds – fixed income	—		6		—		—		6
Corporate bonds	—		389		—		—		389
Mortgage and asset backed securities	—		89		—		—		89
Private equity	—		—		—		169		169
Cash and cash equivalents	3		—		—		—		3
Other	58		3		—		9		70
Cash equivalents and restricted cash	253		15		—		—		268
Other investments	9		27		8		—		44
Total	$	1,238	$	1,382	$	8	$	178	$	2,806
Liabilities:
Energy-related derivatives(a)	$	46	$	312	$	—	$	—	$	358
Interest rate derivatives	—		264		—		—		264
Foreign currency derivatives	—		122		—		—		122
Contingent consideration	3		—		16		—		19
Other	—		13		—		—		13
Total	$	49	$	711	$	16	$	—	$	776


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2023:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Alabama Power
Assets:
Energy-related derivatives	$	—	$	15	$	—	$	—	$	15
Nuclear decommissioning trusts:(b)
Domestic equity	443		208		—		—		651
Foreign equity	145		—		—		—		145
U.S. Treasury and government agency securities	—		20		—		—		20
Municipal bonds	—		1		—		—		1
Corporate bonds	—		231		—		—		231
Mortgage and asset backed securities	—		25		—		—		25
Private equity	—		—		—		169		169
Other	8		—		—		9		17
Cash equivalents and restricted cash	119		15		—		—		134
Other investments	—		27		—		—		27
Total	$	715	$	542	$	—	$	178	$	1,435
Liabilities:
Energy-related derivatives	$	—	$	110	$	—	$	—	$	110

Georgia Power
Assets:
Energy-related derivatives	$	—	$	13	$	—	$	—	$	13

Nuclear decommissioning trusts:(b)
Domestic equity	321		1		—		—		322
Foreign equity	—		170		—		—		170
U.S. Treasury and government agency securities	—		349		—		—		349
Municipal bonds	—		47		—		—		47
Corporate bonds	—		158		—		—		158
Mortgage and asset backed securities	—		64		—		—		64
Other	50		3		—		—		53

Total	$	371	$	805	$	—	$	—	$	1,176
Liabilities:
Energy-related derivatives	$	—	$	124	$	—	$	—	$	124


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2023:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	15	$	—	$	—	$	15

Cash equivalents	17		—		—		—		17
Total	$	17	$	15	$	—	$	—	$	32
Liabilities:
Energy-related derivatives	$	—	$	61	$	—	$	—	$	61

Southern Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3




Liabilities:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5
Foreign currency derivatives	—		22		—		—		22
Contingent consideration	3		—		16		—		19
Other	—		13		—		—		13
Total	$	3	$	40	$	16	$	—	$	59

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	6	$	3	$	—	$	—	$	9

Non-qualified deferred compensation trusts:
Domestic equity	—		7		—		—		7
Foreign equity	—		1		—		—		1
Pooled funds - fixed income	—		6		—		—		6
Cash and cash equivalents	3		—		—		—		3

Total	$	9	$	17	$	—	$	—	$	26
Liabilities:
Energy-related derivatives(a)(b)	$	46	$	12	$	—	$	—	$	58
Interest rate derivatives	—		79		—		—		79
Total	$	46	$	91	$	—	$	—	$	137

(a)Excludes cash collateral of $62 million.

(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 under "Nuclear Decommissioning" for additional information.

At December 31, 2022, 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
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2022:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives(a)	$	18	$	181	$	—	$	—	$	199
Interest rate derivatives	—		12		—		—		12

Investments in trusts:(b)(c)
Domestic equity	651		178		—		—		829
Foreign equity	125		150		—		—		275
U.S. Treasury and government agency securities	—		285		—		—		285
Municipal bonds	—		51		—		—		51
Pooled funds – fixed income	—		7		—		—		7
Corporate bonds	—		412		—		—		412
Mortgage and asset backed securities	—		90		—		—		90
Private equity	—		—		—		161		161
Cash and cash equivalents	4		—		—		—		4
Other	37		12		—		—		49
Cash equivalents	1,427		20		—		—		1,447
Other investments	9		26		—		—		35
Total	$	2,271	$	1,424	$	—	$	161	$	3,856
Liabilities:
Energy-related derivatives(a)	$	32	$	178	$	—	$	—	$	210
Interest rate derivatives	—		302		—		—		302
Foreign currency derivatives	—		216		—		—		216
Contingent consideration	—		—		12		—		12
Other	—		13		—		—		13
Total	$	32	$	709	$	12	$	—	$	753


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2022:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Alabama Power
Assets:
Energy-related derivatives	$	—	$	62	$	—	$	—	$	62
Nuclear decommissioning trusts:(b)
Domestic equity	396		169		—		—		565
Foreign equity	125		—		—		—		125
U.S. Treasury and government agency securities	—		19		—		—		19
Municipal bonds	—		1		—		—		1
Corporate bonds	—		225		—		—		225
Mortgage and asset backed securities	—		22		—		—		22
Private equity	—		—		—		161		161
Other	7		—		—		—		7
Cash equivalents	438		20		—		—		458
Other investments	—		26		—		—		26
Total	$	966	$	544	$	—	$	161	$	1,671
Liabilities:

Energy-related derivatives	$	—	$	39	$	—	$	—	$	39

Georgia Power
Assets:
Energy-related derivatives	$	—	$	42	$	—	$	—	$	42

Nuclear decommissioning trusts:(b)(c)
Domestic equity	255		1		—		—		256
Foreign equity	—		149		—		—		149
U.S. Treasury and government agency securities	—		266		—		—		266
Municipal bonds	—		50		—		—		50
Corporate bonds	—		187		—		—		187
Mortgage and asset backed securities	—		68		—		—		68
Other	30		12		—		—		42
Cash equivalents	355		—		—		—		355
Total	$	640	$	775	$	—	$	—	$	1,415
Liabilities:
Energy-related derivatives	$	—	$	62	$	—	$	—	$	62


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2022:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	59	$	—	$	—	$	59

Cash equivalents	47		—		—		—		47
Total	$	47	$	59	$	—	$	—	$	106
Liabilities:
Energy-related derivatives	$	—	$	32	$	—	$	—	$	32



Southern Power
Assets:
Energy-related derivatives	$	—	$	8	$	—	$	—	$	8



Liabilities:
Energy-related derivatives	$	—	$	12	$	—	$	—	$	12
Foreign currency derivatives	—		47		—		—		47
Contingent consideration	—		—		12		—		12
Other	—		13		—		—		13
Total	$	—	$	72	$	12	$	—	$	84

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	18	$	10	$	—	$	—	$	28

Non-qualified deferred compensation trusts:
Domestic equity	—		8		—		—		8
Foreign equity	—		1		—		—		1
Pooled funds - fixed income	—		7		—		—		7
Cash equivalents	4		—		—		—		4
Cash equivalents	50		—		—		—		50
Total	$	72	$	26	$	—	$	—	$	98
Liabilities:
Energy-related derivatives(a)(b)	$	32	$	33	$	—	$	—	$	65
Interest rate derivatives	—		86		—		—		86
Total	$	32	$	119	$	—	$	—	$	151

(a)Excludes cash collateral of $41 million.

(c)Includes investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. See Note 6 under "Nuclear Decommissioning" for additional information.

Financial instruments not having carrying amount equal to fair value

At December 31, 2023 and 2022, other financial instruments for which the carrying amount did not equal fair value were as follows:


	Southern Company(*)		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas(*)
	(in billions)
At December 31, 2023:
Long-term debt, including securities due within one year:
Carrying amount	$	59.4	$	11.2	$	16.5	$	1.6	$	2.7	$	7.8
Fair value	55.0		10.1		15.1		1.4		2.6		6.8
At December 31, 2022:
Long-term debt, including securities due within one year:
Carrying amount	$	54.6	$	10.6	$	14.7	$	1.5	$	3.0	$	7.4
Fair value	48.6		9.2		13.0		1.3		2.8		6.5

(*)The carrying amount of Southern Company Gas' long-term debt includes fair value adjustments from the effective date of the 2016 merger with Southern Company. Southern Company Gas amortizes the fair value adjustments over the remaining lives of the respective bonds, the latest being through 2043.