Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives [Abstract]

Energy-related derivative contracts

	Net Purchased mmBtu		Longest Hedge Date		Longest Non-Hedge Date
	(in millions)
Southern Company		242		2017		2017
Alabama Power		43		2017		—
Georgia Power		96		2017		—
Gulf Power		51		2017		—
Mississippi Power		34		2017		—
Southern Power		18		2012		2017

Notional amount of interest rate derivatives

	Notional Amount		Interest Rate Received		Interest Rate Paid		Hedge Maturity Date		Fair Value Gain (Loss) June 30, 2012
	(in millions)								(in millions)
Cash flow hedges of forecasted transactions
Alabama Power	$	300		3-month LIBOR		2.90%(a)		December 2022	$(28)
Fair value hedges of existing debt
Southern Company		350		4.15%		3-month LIBOR  + 1.96%(a)		May 2014	12
Total	$	650							$(16)

(a) Weighted Average

Total deferred gains and losses are expected to be amortized into earnings

Registrant	Estimated Gain (Loss) to be Reclassified for the 12 Months Ending June 30, 2013	Total Deferred Gains (Losses) Amortized Through
	(in millions)
Southern Company	$(17)	2037
Alabama Power	(1)	2035
Georgia Power	(3)	2037
Gulf Power	(1)	2020
Mississippi Power	(1)	2022
Southern Power	(11)	2016

Outstanding foreign currency derivatives

	Notional Amount	Forward Rate	Hedge Maturity Date	Fair Value Gain (Loss) June 30, 2012
	(in millions)			(in millions)
Fair value hedges of firm commitments
Mississippi Power	EUR6.3	1.3850 Dollars per Euro(a)	Various through March 2014	$(1)
Derivatives not designated as hedges
Mississippi Power	EUR18.1	1.3186 Dollars per Euro (a)	N/A	(1)
Total	EUR24.4			$(2)

(a) Weighted Average

Fair value of energy-related derivatives and interest rate derivatives

Asset Derivatives at June 30, 2012
	Fair Value
Derivative Category and Balance Sheet Location	Southern Company		Alabama Power		Georgia Power		Gulf Power		Mississippi Power		Southern   Power
	(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets	$	14	$	1	$	13	$	—	$	—
Other deferred charges and assets		9		2		4		2		1
Total derivatives designated as hedging instruments for regulatory purposes	$	23	$	3	$	17	$	2	$	1		N/A
Derivatives designated as hedging instruments in cash flow and fair value hedges
Interest rate derivatives:
Other current assets	$	6	$	—	$	—	$	—	$	—	$	—
Other deferred charges and assets		6		—		—		—		—		—
Total derivatives designated as hedging instruments in cash flow and fair value hedges	$	12	$	—	$	—	$	—	$	—	$	—
Derivatives not designated as hedging instruments
Energy-related derivatives:
Other deferred charges and assets	$	1	$	—	$	—	$	—	$	—	$	1
Total asset derivatives	$	36	$	3	$	17	$	2	$	1	$	1

Liability Derivatives at June 30, 2012
	Fair Value
Derivative Category and Balance Sheet Location	Southern   Company	Alabama Power	Georgia Power	Gulf Power	Mississippi Power	Southern   Power
	(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Liabilities from risk management activities	$123	$26	$  52	$20	$25
Other deferred credits and liabilities	64	9	23	19	13
Total derivatives designated as hedging instruments for regulatory purposes	$187	$35	$75	$39	$38	N/A
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Liabilities from risk management activities	$    1	$—	$  —	$  —	$  —	$1
Interest rate derivatives:
Liabilities from risk management activities	28	28	—	—	—	—
Foreign currency derivatives:
Liabilities from risk management activities	1	—	—	—	1	—
Total derivatives designated as hedging instruments in cash flow and fair value hedges	$  30	$28	$—	$—	$1	$1
Derivatives not designated as hedging instruments
Energy-related derivatives:
Liabilities from risk management activities	$    6	$—	$  —	$—	$—	$6
Foreign currency derivatives:
Liabilities from risk management activities	1	—	—	—	1	—
Total derivatives not designated as hedging instruments	$    7	$—	$  —	$  —	$  1	$6
Total liability derivatives	$224	$63	$75	$39	$40	$7

Pre-tax effect of unrealized derivative gains (losses)

Regulatory Hedge Unrealized Gain (Loss) Recognized on the Balance Sheet
Derivative Category and Balance Sheet Location	Southern Company		Alabama Power		Georgia Power		Gulf Power		Mississippi Power
	(in millions)
Energy-related derivatives:
Other regulatory assets, current		$(123)		$(26)		$(52)		$(20)		$(25)
Other regulatory assets, deferred		(64)		(9)		(23)		(19)		(13)
Other regulatory liabilities, current		14		1		13		—		—
Other regulatory liabilities, deferred		9		2		—		2		1
Other deferred credits and liabilities (a)		—		—		4		—		—
Total energy-related derivative gains (losses)		$(164)		$(32)		$(58)		$(37)		$(37)

(a) Georgia Power includes Other regulatory liabilities, deferred in Other deferred credits and liabilities.

Pre-tax effect of derivatives designated as cash flow hedging instruments

Derivatives in Cash Flow	Gain (Loss) Recognized in OCI on Derivative		Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Hedging Relationships	(Effective Portion)		Statements of Income Location	Amount
	2012	2011		2012	2011
	(in millions)			(in millions)
Southern Company
Interest rate derivatives	$    (18)	$    —	Interest expense, net of amounts capitalized	$            (4)	$            (1)
Alabama Power
Interest rate derivatives	$    (18)	$    —	Interest expense, net of amounts capitalized	$            —	$      3
Georgia Power
Interest rate derivatives	$    —	$    —	Interest expense, net of amounts capitalized	$            (1)	$            (1)
Southern Power
Interest rate derivatives	$    —	$    —	Interest expense, net of amounts capitalized	$            (3)	$            (3)

For the six months ended June 30, 2012 and 2011, the pre-tax effects of energy-related derivatives and interest rate derivatives designated as cash flow hedging instruments on the statements of income were as follows:

Derivatives in Cash Flow Hedging	Gain (Loss) Recognized in OCI on Derivative		Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Relationships	(Effective Portion)		Statements of Income Location	Amount
	2012	2011		2012	2011
	(in millions)			(in millions)
Southern Company
Energy-related derivatives	$    —	$       1	Fuel	$            —	$            —
Interest rate derivatives	(12)	4	Interest expense, net of amounts capitalized	(7)	(6)
Total	$    (12)	$         5		$            (7)	$            (6)
Alabama Power
Interest rate derivatives	$    (11)	$         4	Interest expense, net of amounts capitalized	$          —	$            3
Georgia Power
Interest rate derivatives	$    —	$    —	Interest expense, net of amounts capitalized	$            (2)	$            (2)
Mississippi Power
Interest rate derivatives	$    (1)	$    —	Interest expense, net of amounts capitalized	$            —	$            —
Southern Power
Energy-related derivatives	$    —	$       1	Fuel	$            —	$            —
Interest rate derivatives	—	—	Interest expense, net of amounts capitalized	(5)	(6)
Total	$    —	$       1		$            (5)	$            (6)

Fair value of derivative liabilities with contingent features

	Southern Company	Alabama Power	Georgia Power	Gulf Power	Mississippi Power	Southern Power
			(in millions)
Derivative liabilities	$27	$6	$8	$6	$5	$2