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Derivatives (Tables)

12 Months Ended

Dec. 31, 2012

At December 31, 2012, the net volume of energy-related derivative contracts for natural gas positions for the Southern Company system, 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 date for derivatives not designated as hedges, were as follows:



*	million British thermal units

Notional amount of interest rate derivatives

At December 31, 2012, the following interest rate derivatives were outstanding:

Notional

Amount

Interest Rate

Received

Interest

Rate Paid*

Hedge

Maturity Date

Fair Value

Gain (Loss)

December 31,

2012

(in millions)

Fair value hedges of existing debt

Southern Company

350

4.15%

3-month LIBOR + 1.96% spread

May 2014



*	Weighted Average

Fair value of energy-related derivatives and interest rate derivatives

At December 31, 2012 and 2011, the fair value of energy-related derivatives, interest rate derivatives, and foreign currency derivatives was reflected in the balance sheets as follows:



	Asset Derivatives					Liability Derivatives
Derivative Category	Balance Sheet Location	2012		2011		Balance Sheet Location	2012		2011
		(in millions)					(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:	Other current assets	$	10	$	9	Liabilities from risk management activities	$	74	$	163
	Other deferred charges and assets	13		5		Other deferred credits and liabilities	35		72
Total derivatives designated as hedging instruments for regulatory purposes		$	23	$	14		$	109	$	235
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:	Other current assets	$	—	$	—	Liabilities from risk management activities	$	—	$	1
Interest rate derivatives:	Other current assets	7		6		Liabilities from risk management activities	—		33
	Other deferred charges and assets	3		7		Other deferred credits and liabilities	—		—
Foreign currency derivatives:	Other current assets	—		—		Liabilities from risk management activities	—		1
Total derivatives designated as hedging instruments in cash flow and fair value hedges		$	10	$	13		$	—	$	35
Derivatives not designated as hedging instruments
Energy-related derivatives:	Other current assets	$	1	$	—	Liabilities from risk management activities	$	1	$	9
	Other deferred charges and assets	2		—		Other deferred credits and liabilities	1		—
Foreign currency derivatives:	Other current assets	—		2		Liabilities from risk management activities	—		2
Total derivatives not designated as hedging instruments		$	3	$	2		$	2	$	11
Total		$	36	$	29		$	111	$	281

Pre-tax effect of unrealized derivative gains (losses)

At December 31, 2012 and 2011, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred on the balance sheets were as follows:



	Unrealized Losses							Unrealized Gains
Derivative Category	Balance Sheet Location	2012			2011			Balance Sheet Location	2012		2011
		(in millions)							(in millions)
Energy-related derivatives:	Other regulatory assets, current	$	(74	)	$	(163	)	Other regulatory liabilities, current	$	10	$	9
	Other regulatory assets, deferred	(35		)	(72		)	Other regulatory liabilities, deferred	13		5
Total energy-related derivative gains (losses)		$	(109	)	$	(235	)		$	23	$	14

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

For the years ended December 31, 2012, 2011, and 2010, the pre-tax effects of derivatives designated as cash flow hedging instruments on the statements of income were as follows:



Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)									Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
											Amount
Derivative Category	2012			2011			2010			Statements of Income Location	2012			2011			2010
	(in millions)										(in millions)
Energy-related derivatives	$	—		$	—		$	1		Fuel	$	—		$	—		$	—
Interest rate derivatives	(19		)	(28		)	(3		)	Interest expense, net of amounts capitalized	(18		)	(14		)	(25		)
Foreign currency derivatives	—			—			1			Other operations and maintenance	—			—			1
										Other income (expense), net	—			(1		)	—
Total	$	(19	)	$	(28	)	$	(1	)		$	(18	)	$	(15	)	$	(24	)

pre tax effect of interest rate and foreign currency derivatives [Table Text Block]

For the years ended December 31, 2012, 2011, and 2010, the pre-tax effects of interest rate and foreign currency derivatives designated as fair value hedging instruments on the statements of income were as follows:



Derivatives in Fair Value Hedging Relationships
		Amount
Derivative Category	Statements of Income Location	2012			2011			2010
		(in millions)
Interest rate derivatives:	Interest expense	$	(3	)	$	3		$	10
Foreign currency derivatives:	Other operations and maintenance	1			(4		)	3
Total		$	(2	)	$	(1	)	$	13

Mississippi Power [Member]

Derivative [Line Items]

Energy-related derivative contracts

At December 31, 2012, the net volume of energy-related derivative contracts for natural gas positions for the Company, together with the longest hedge date over which it is hedging its exposure to the variability in future cash flows for forecasted transactions and the longest date for derivatives not designated as hedges, were as follows:



Gas
Net Purchased mmBtu*	Longest Hedge Date	Longest Non-Hedge Date
(in millions)
38	2017	—



*	mmBtu — million British thermal units

Outstanding foreign currency derivatives

At December 31, 2012, the following foreign currency derivatives were outstanding:



	Notional Amount	Forward Rate	Hedge Maturity Date	Fair Value Gain (Loss) December 31, 2012
	(in thousands)			(in thousands)
Fair value hedges of firm commitments
	EUR735	1.3758 Dollars per Euro	March 2014	$(37)

Fair value of energy-related derivatives and interest rate derivatives

At December 31, 2012 and 2011, the fair value of energy-related derivatives, foreign currency derivatives, and interest rate derivatives was reflected in the balance sheets as follows:



	Asset Derivatives					Liability Derivatives
Derivative Category	Balance Sheet Location	2012		2011		Balance Sheet Location	2012		2011
		(in thousands)					(in thousands)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:	Other current assets	$	638	$	125	Liabilities from risk management activities	$	13,116	$	36,455
	Other deferred charges and assets	1,881		37		Other deferred credits and liabilities	6,330		14,697
Total derivatives designated as hedging instruments for regulatory purposes		$	2,519	$	162		$	19,446	$	51,152
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:	Other current assets	$	—	$	—	Liabilities from risk management activities	$	—	$	—
Interest rate derivatives:	Other current assets	—		—		Liabilities from risk management activities	—		15,208
Foreign currency derivatives:	Other current assets	—		19		Liabilities from risk management activities	—		625
	Other deferred charges and assets	—		—		Other deferred credits and liabilities	37		46
Total derivatives designated as hedging instruments in cash flow and fair value hedges		$	—	$	19		$	37	$	15,879
Derivatives not designated as hedging instruments
Energy-related derivatives:	Other current assets	$	—	$	—	Liabilities from risk management activities	$	—	$	—
Foreign currency derivatives:	Other current assets	—		1,507		Liabilities from risk management activities	—		1,839
Total derivatives not designated as hedging instruments		$	—	$	1,507		$	—	$	1,839
Total		$	2,519	$	1,688		$	19,483	$	68,870

Pre-tax effect of unrealized derivative gains (losses)



	Unrealized Losses							Unrealized Gains
Derivative Category	Balance Sheet Location	2012			2011			Balance Sheet Location	2012		2011
		(in thousands)							(in thousands)
Energy-related derivatives:	Other regulatory assets, current	$	(13,116	)	$	(36,455	)	Other regulatory liabilities, current	$	638	$	125
	Other regulatory assets, deferred	(6,330		)	(14,697		)	Other regulatory liabilities, deferred	1,881		37
Total energy-related derivative gains (losses)		$	(19,446	)	$	(51,152	)		$	2,519	$	162

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

For the years ended December 31, 2012, 2011, and 2010, the pre-tax effects of derivatives designated as cash flow hedging instruments on the statements of income were as follows:



Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)								Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships										Amount
Derivative Category	2012			2011			2010		Statements of Income Location	2012			2011		2010
	(in thousands)									(in thousands)
Energy-related derivatives	$	—		$	(3	)	$	3	Fuel	$	—		$	—	$	—
Interest rate derivatives	(774		)	(14,361		)	—		Interest Expense	(1,073		)	48		—
Total	$	(774	)	$	(14,364	)	$	3		$	(1,073	)	$	48	$	—

Southern Power [Member]

Derivative [Line Items]

Fair value of energy-related derivatives and interest rate derivatives

At December 31, 2012 and 2011, the fair value of energy-related derivatives was reflected in the balance sheets as follows:



	Asset Derivatives					Liability Derivatives
Derivative Category	Balance Sheet Location	2012		2011		Balance Sheet Location	2012		2011
		(in millions)					(in millions)
Derivatives designated as hedging instruments in cash flow hedges
Energy-related derivatives:	Assets from risk management activities	$	—	$	—	Liabilities from risk management activities	$	—	$	0.8
	Other deferred charges and assets – non-affiliated	—		—		Other deferred credits and liabilities – non-affiliated	—		—
Total derivatives designated as hedging instruments in cash flow hedges		$	—	$	—		$	—	$	0.8
Derivatives not designated as hedging instruments
Energy-related derivatives:	Assets from risk management activities	$	0.4	$	0.2	Liabilities from risk management activities	$	0.7	$	8.8
	Other deferred charges and assets – non-affiliated	1.7		0.4		Other deferred credits and liabilities – non-affiliated	0.6		0.2
Total derivatives not designated as hedging instruments		$	2.1	$	0.6		$	1.3	$	9.0
Total		$	2.1	$	0.6		$	1.3	$	9.8

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

For the years ended December 31, 2012, 2011, and 2010, 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 Relationships	Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)							Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships									Amount
Derivative Category	2012			2011		2010		Statements of Income Location	2012			2011			2010
	(in millions)								(in millions)
Energy-related derivatives	$	(0.2	)	$	0.1	$	1.5	Depreciation and amortization	$	0.4		$	0.4		$	0.4
Interest rate derivatives	—			—		—		Interest expense, net of amounts capitalized	(10.5		)	(11.4		)	(10.8		)
								Other income (expense), net	—			(1.0		)	—
Total	$	(0.2	)	$	0.1	$	1.5		$	(10.1	)	$	(12.0	)	$	(10.4	)

Gulf Power [Member]

Derivative [Line Items]

Energy-related derivative contracts



Gas
Net Purchased mmBtu*	Longest Hedge Date	Longest Non-Hedge Date
(in thousands)
70,510	2017	—



*	mmBtu — million British thermal units

Fair value of energy-related derivatives and interest rate derivatives

At December 31, 2012 and 2011, the fair value of energy-related derivatives was reflected in the balance sheets as follows:



	Asset Derivatives					Liability Derivatives
Derivative Category	Balance Sheet Location	2012		2011		Balance Sheet Location	2012		2011
		(in thousands)					(in thousands)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:	Other current assets	$	1,293	$	154	Liabilities from risk management activities	$	16,529	$	22,786
	Other deferred charges and assets	3,065		44		Other deferred credits and liabilities	10,583		18,197
Total derivatives designated as hedging instruments for regulatory purposes		$	4,358	$	198		$	27,112	$	40,983
Derivatives not designated as hedging instruments
Energy-related derivatives:	Other current assets	$	—	$	—	Liabilities from risk management activities	$	—	$	—
Total		$	4,358	$	198		$	27,112	$	40,983

Pre-tax effect of unrealized derivative gains (losses)



	Unrealized Losses							Unrealized Gains
Derivative Category	Balance Sheet Location	2012			2011			Balance Sheet Location	2012		2011
		(in thousands)							(in thousands)
Energy-related derivatives:	Other regulatory assets, current	$	(16,529	)	$	(22,786	)	Other regulatory liabilities, current	$	1,293	$	154
	Other regulatory assets, deferred	(10,583		)	(18,197		)	Other regulatory liabilities, deferred	3,065		44
Total energy-related derivative gains (losses)		$	(27,112	)	$	(40,983	)		$	4,358	$	198

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

For the years ended December 31, 2012, 2011, and 2010, the pre-tax effects of 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)								Amount
Derivative Category	2012		2011		2010			Statements of Income Location	2012			2011			2010
	(in thousands)								(in thousands)
Interest rate derivatives	$	—	$	—	$	(1,405	)	Interest expense, net of amounts capitalized	$	(933	)	$	(933	)	$	(974	)

Georgia Power [Member]

Derivative [Line Items]

Fair value of energy-related derivatives and interest rate derivatives

At December 31, 2012 and 2011, the fair value of energy-related derivatives was reflected in the balance sheets as follows:



	Asset Derivatives					Liability Derivatives
Derivative Category	Balance Sheet Location	2012		2011		Balance Sheet Location	2012		2011
		(in millions)					(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:	Other current assets	$	6	$	8	Liabilities from risk management activities	$	30	$	68
	Other deferred charges and assets	5		5		Other deferred credits and liabilities	15		27
Total derivatives designated as hedging instruments for regulatory purposes		$	11	$	13		$	45	$	95

All derivative instruments are measured at fair value. See Note 10 for additional information.

Pre-tax effect of unrealized derivative gains (losses)



	Unrealized Losses							Unrealized Gains
Derivative Category	Balance Sheet Location	2012			2011			Balance Sheet Location	2012		2011
		(in millions)							(in millions)
Energy-related derivatives:	Other regulatory assets, current	$	(30	)	$	(68	)	Other regulatory liabilities, current	$	6	$	8
	Other regulatory assets, deferred	(15		)	(27		)	Other deferred credits and liabilities	5		5
Total energy-related derivative gains (losses)		$	(45	)	$	(95	)		$	11	$	13

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

The pre-tax effects of gains (losses) related to interest rate derivatives designated as cash flow hedging instruments recognized in OCI were not material for any year presented. Gains (losses) reclassified from accumulated OCI into income were as follows:



Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
	Amount
Statements of Income Location	2012			2011			2010
	(in millions)
Interest expense, net of amounts capitalized	$	(3	)	$	(4	)	$	(16	)

Alabama Power [Member]

Derivative [Line Items]

Energy-related derivative contracts



	Gas
Net Purchased mmBtu*	Longest Hedge Date	Longest Non-Hedge Date
(in millions)
57	2017	—



*	mmBtu – million British thermal units

Fair value of energy-related derivatives and interest rate derivatives

At December 31, 2012 and 2011, the fair value of energy-related derivatives and interest rate derivatives was reflected in the balance sheets as follows:



	Asset Derivatives					Liability Derivatives
Derivative Category	Balance Sheet Location	2012		2011		Balance Sheet Location	2012		2011
		(in millions)					(in millions)
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:	Other current assets	$	2	$	—	Liabilities from risk management activities	$	14	$	36
	Other deferred charges and assets	3		—		Other deferred credits and liabilities	4		12
Total derivatives designated as hedging instruments for regulatory purposes		$	5	$	—		$	18	$	48
Derivatives designated as hedging instruments in cash flow hedges
Interest rate derivatives:	Other current assets	$	—	$	—	Liabilities from risk management activities	$	—	$	18
Total		$	5	$	—		$	18	$	66

Pre-tax effect of unrealized derivative gains (losses)

At December 31, 2012 and 2011, the pre-tax effect of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred on the balance sheets was as follows:



	Unrealized Losses							Unrealized Gains
Derivative Category	Balance Sheet Location	2012			2011			Balance Sheet Location	2012		2011
		(in millions)							(in millions)
Energy-related derivatives:	Other regulatory assets, current	$	(14	)	$	(36	)	Other current liabilities	$	2	$	—
	Other regulatory assets, deferred	(4		)	(12		)	Other regulatory liabilities, deferred	3		—
Total energy-related derivative gains (losses)		$	(18	)	$	(48	)		$	5	$	—

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

For the years ended December 31, 2012, 2011, and 2010, the pre-tax effect of interest rate derivatives designated as cash flow hedging instruments on the statements of income was as follows:



Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)								Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships										Amount
Derivative Category	2012			2011			2010		Statements of Income Location	2012			2011	2010
	(in millions)									(in millions)
Interest rate derivatives	$	(18	)	$	(14	)	$	—	Interest expense, net of amounts capitalized	$	(3	)	$3	$	3

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1B

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(n)(2))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1A

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 25

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4B

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

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-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

+ Details

Net
Purchased
mmBtu*

Longest
Hedge
Date

Longest
Non-Hedge
Date

(in millions)

Southern Company