Retirement Benefits

9 Months Ended

Sep. 30, 2011

Retirement Benefits [Abstract]

RETIREMENT BENEFITS

(F) RETIREMENT BENEFITS

Southern Company has a defined benefit, trusteed, pension plan covering substantially all employees. The qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the qualified pension plan are expected for the year ending December 31, 2011. Southern Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, Southern Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional operating companies fund related other postretirement trusts to the extent required by their respective regulatory commissions.

See Note 2 to the financial statements of Southern Company, Alabama Power, Georgia Power, Gulf Power, and Mississippi Power in Item 8 of the Form 10-K for additional information.

Components of the net periodic benefit costs for the three and nine months ended September 30, 2011 and 2010 were as follows:

	Southern			Alabama			Georgia			Gulf			Mississippi
Pension Plans	Company			Power			Power			Power			Power
	(in millions)
Three Months Ended September 30, 2011
Service cost	$	46		$	11		$	14		$	2		$	3
Interest cost		97			24			36			4			4
Expected return on plan assets		(152	)		(44	)		(59	)		(6	)		(7	)
Net amortization		14			3			5			—			1
Net cost (income)	$	5		$	(6	)	$	(4	)	$	—		$	1
Nine Months Ended September 30, 2011
Service cost	$	138		$	32		$	43		$	6		$	7
Interest cost		292			72			108			13			13
Expected return on plan assets		(456	)		(130	)		(176	)		(20	)		(19	)
Net amortization		40			10			14			1			2
Net cost (income)	$	14		$	(16	)	$	(11	)	$	—		$	3
Three Months Ended September 30, 2010
Service cost	$	43		$	10		$	13		$	2		$	2
Interest cost		98			25			36			5			4
Expected return on plan assets		(138	)		(42	)		(54	)		(6	)		(5	)
Net amortization		11			3			4			—			1
Net cost (income)	$	14		$	(4	)	$	(1	)	$	1		$	2
Nine Months Ended September 30, 2010
Service cost	$	129		$	31		$	40		$	6		$	6
Interest cost		293			73			109			13			13
Expected return on plan assets		(413	)		(126	)		(164	)		(18	)		(16	)
Net amortization		32			8			11			1			2
Net cost (income)	$	41		$	(14	)	$	(4	)	$	2		$	5

	Southern			Alabama			Georgia			Gulf			Mississippi
Postretirement Benefits	Company			Power			Power			Power			Power
	(in millions)
Three Months Ended September 30, 2011
Service cost	$	6		$	1		$	1		$	—		$	—
Interest cost		23			6			11			1			1
Expected return on plan assets		(16	)		(6	)		(8	)		—			—
Net amortization		5			2			3			—			—
Net cost (income)	$	18		$	3		$	7		$	1		$	1
Nine Months Ended September 30, 2011
Service cost	$	16		$	4		$	5		$	1		$	1
Interest cost		69			18			31			3			3
Expected return on plan assets		(48	)		(19	)		(23	)		(1	)		(1	)
Net amortization		15			5			8			—			—
Net cost (income)	$	52		$	8		$	21		$	3		$	3
Three Months Ended September 30, 2010
Service cost	$	6		$	2		$	3		$	—		$	—
Interest cost		25			7			11			1			2
Expected return on plan assets		(15	)		(7	)		(8	)		—			—
Net amortization		5			2			2			—			—
Net cost (income)	$	21		$	4		$	8		$	1		$	2
Nine Months Ended September 30, 2010
Service cost	$	19		$	5		$	7		$	1		$	1
Interest cost		75			20			33			3			4
Expected return on plan assets		(47	)		(19	)		(23	)		(1	)		(1	)
Net amortization		15			5			8			—			—
Net cost (income)	$	62		$	11		$	25		$	3		$	4