Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Line Items]

Regulatory Assets and Liabilities

Regulatory assets and (liabilities) reflected in the balance sheets at December 31 relate to:

	2013			2012			Note
	(in millions)
Deferred income tax charges	$	1,376		$	1,318		(a)
Deferred income tax charges — Medicare subsidy	65			72			(j)
Asset retirement obligations-asset	145			141			(a,h)
Asset retirement obligations-liability	(139		)	(71		)	(a,h)
Other cost of removal obligations	(1,289		)	(1,225		)	(a)
Deferred income tax credits	(203		)	(212		)	(a)
Loss on reacquired debt	293			309			(b)
Vacation pay	171			165			(c,h)
Under recovered regulatory clause revenues	70			38			(d)
Property damage reserves	(191		)	(193		)	(g)
Cancelled construction projects	70			65			(m)
Power purchase agreement charges	180			138			(h,n)
Fuel-hedging-asset	58			118			(h,o)
Other regulatory assets	337			276			(f)
Environmental remediation-asset	62			74			(g,h)
Other regulatory liabilities	(126		)	(100		)	(b,l,i)
Kemper IGCC* regulatory assets	76			36			(k)
Kemper regulatory deferral	(91		)	—			(k)
Retiree benefit plans	1,760			3,373			(e,h)
Total regulatory assets (liabilities), net	$	2,624		$	4,322

* Integrated coal gasification combined cycle electric generating plant located in Kemper County, Mississippi (Kemper IGCC).

Note: The recovery and amortization periods for these regulatory assets and (liabilities) are as follows:

(a) Asset retirement and removal assets and liabilities are recorded, deferred income tax assets are recovered, and deferred income tax liabilities are amortized over the related property lives, which may range up to 70 years. Asset retirement and removal assets and liabilities will be settled and trued up following completion of the related activities. At December 31, 2013, other cost of removal obligations included $43 million that will be amortized over the three-year period from January 2014 through December 2016 in accordance with Georgia Power's Alternate Rate Plan for the years 2014 through 2016 (2013 ARP). See Note 3 under "Retail Regulatory Matters" for additional information.

(b) Recovered over either the remaining life of the original issue or, if refinanced, over the remaining life of the new issue, which may range up to 50 years.

(c) Recorded as earned by employees and recovered as paid, generally within one year. This includes both vacation and banked holiday pay.

(d) Recorded and recovered or amortized as approved or accepted by the appropriate state PSCs over periods generally not exceeding 10 years.

(e) Recovered and amortized over the average remaining service period which may range up to 15 years. See Note 2 for additional information.

(f) Comprised of numerous immaterial components including storm damage reserves, nuclear and generating plant outage costs, property taxes, post-retirement benefits, generation site selection/evaluation costs, power purchase agreement (PPA) capacity, demand side management cost deferrals, regulatory deferrals, building leases, net book value of retired generating units, Plant Daniel Units 3 and 4 regulatory assets, and other miscellaneous assets. These costs are recorded and recovered or amortized as approved by the appropriate state PSC over periods generally not exceeding, as applicable, 10 years or over the remaining life of the asset but not beyond 2031.

(g) Recovered as storm restoration and potential reliability-related expenses or environmental remediation expenses are incurred as approved by the appropriate state PSCs.

(h) Not earning a return as offset in rate base by a corresponding asset or liability.

(i) Recovered and amortized as approved or accepted by the appropriate state PSC over the life of the contract.

(j) Recovered and amortized as approved by the appropriate state PSCs over periods not exceeding 15 years.

(k) For additional information, See Note 3 under "Integrated Coal Gasification Combined Cycle."

(l) Comprised of immaterial components including over recovered regulatory clause revenues, state income tax credits, fuel-hedging liabilities, mine reclamation and remediation liabilities, PPA credits, and other liabilities that are recorded and recovered or amortized as approved by the appropriate state PSCs generally over periods not exceeding 10 years, except for PPA credits that are recovered over the life of the PPA for periods up to 14 years.

(m) Costs associated with construction of environmental controls that will not be completed as a result of unit retirements and amortized over nine years in accordance with the 2013 ARP.

(n) Recovered over the life of the PPA for periods up to 14 years.

(o) Recorded over the life of the underlying hedged purchase contracts, which generally do not exceed five years. Upon final settlement, actual costs incurred are recovered through the energy cost recovery clause.

Property Plant and Equipment

The Southern Company system's property, plant, and equipment in service consisted of the following at December 31:

	2013		2012
	(in millions)
Generation	$	35,360	$	33,444
Transmission	9,289		8,747
Distribution	16,499		15,958
General	3,958		4,208
Plant acquisition adjustment	123		124
Utility plant in service	65,229		62,481
Information technology equipment and software	242		230
Communications equipment	437		430
Other	113		110
Other plant in service	792		770
Total plant in service	$	66,021	$	63,251

Assets Acquired Under Capital Leases

Assets acquired under a capital lease are included in property, plant, and equipment and are further detailed in the table below:

	Asset Balances at December 31,
	2013			2012
	(in millions)
Office building	$	61		$	61
Nitrogen plant	83			—
Computer-related equipment	62			58
Gas pipeline	6			—
Less: Accumulated amortization	(48		)	(39		)
Balance, net of amortization	$	164		$	80

Acquisitions

Acquisitions entered into or made by Southern Power and Turner Renewable Energy through Southern Turner Renewable Energy, LLC during 2013 and 2012 are detailed in the table below:

	MW Capacity*	Year of Operation	Party Under PPA Contract for Plant Output	PPA Contract Period	Purchase Price
					(millions)
Adobe Solar, LLC (a)	20	2014	Southern California Edison Company	20 years	$100.0
Campo Verde Solar, LLC (b)	139	2013	San Diego Gas & Electric Company	20 years	$136.6
Spectrum Nevada Solar, LLC (c)	30	2013	Nevada Power Company	25 years	$17.6
Apex Nevada Solar, LLC	20	2012	Nevada Power Company	25 years	$102.0

* megawatt (MW)

(a) This acquisition is expected to occur in spring 2014, and the purchase price is expected to be $100 million.

(b) Under an engineering, procurement, and construction agreement, an additional $355.5 million was paid to a subsidiary of First Solar Inc. to complete the construction of the solar facility.

(c) Under an engineering, procurement, and construction agreement, an additional $104 million was paid to a subsidiary of Sun Edison, LLC to complete the construction of the solar facility.

Asset Retirement Obligations and Other Costs of Removal

Details of the asset retirement obligations included in the balance sheets are as follows:

	2013			2012
	(in millions)
Balance at beginning of year	$	1,757		$	1,344
Liabilities incurred	6			45
Liabilities settled	(16		)	(16		)
Accretion	97			112
Cash flow revisions	174			272
Balance at end of year	$	2,018		$	1,757

Accumulated Provisions for Decommissioning

At December 31, 2013 and 2012, the accumulated provisions for decommissioning were as follows:

	External Trust Funds				Internal Reserves				Total
	2013		2012		2013		2012		2013		2012
	(in millions)
Plant Farley	$	713	$	604	$	21	$	22	$	734	$	626
Plant Hatch	469		435		—		—		469		435
Plant Vogtle Units 1 and 2	277		256		—		—		277		256

Estimated Cost of Decommissioning

The estimated costs of decommissioning as of December 31, 2013 based on the most current studies, which were performed in 2013 for Alabama Power's Plant Farley and in 2012 for the Georgia Power plants, were as follows for Alabama Power's Plant Farley and Georgia Power's ownership interests in Plant Hatch and Plant Vogtle Units 1 and 2:

	Plant Farley		Plant Hatch		Plant Vogtle Units 1 and 2
Decommissioning periods:
Beginning year	2037		2034		2047
Completion year	2076		2068		2072
	(in millions)
Site study costs:
Radiated structures	$	1,362	$	680	$	568
Non-radiated structures	80		51		76
Total site study costs	$	1,442	$	731	$	644

Net Investments in Leveraged Leases

Southern Company's net investment in domestic and international leveraged leases consists of the following at December 31:

	2013			2012
	(in millions)
Net rentals receivable	$	1,440		$	1,214
Unearned income	(775		)	(544		)
Investment in leveraged leases	665			670
Deferred taxes from leveraged leases	(287		)	(278		)
Net investment in leveraged leases	$	378		$	392

Components of Income from Leveraged Leases

A summary of the components of income from the leveraged leases follows:

	2013			2012			2011
	(in millions)
Pretax leveraged lease income (loss)	$	(5	)	$	21		$	25
Income tax expense	2			(8		)	(9		)
Net leveraged lease income (loss)	$	(3	)	$	13		$	16

Accumulated Other Comprehensive Income (Loss) Balances, Net of Tax Effects

Accumulated OCI (loss) balances, net of tax effects, were as follows:

	Qualifying Hedges			Marketable Securities			Pension and Other Postretirement Benefit Plans			Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balance at December 31, 2012	$	(45	)	$	3		$	(81	)	$	(123	)
Current period change	9			(3		)	42			48
Balance at December 31, 2013	$	(36	)	$	—		$	(39	)	$	(75	)

Alabama Power [Member]

Summary of Significant Accounting Policies [Line Items]

Regulatory Assets and Liabilities

Regulatory assets and (liabilities) reflected in the balance sheets at December 31 relate to:

	2013			2012			Note
	(in millions)
Deferred income tax charges	$	519		$	525		(a,k)
Loss on reacquired debt	86			93			(b)
Vacation pay	63			61			(c,j)
Under/(over) recovered regulatory clause revenues	(18		)	34			(d)
Fuel-hedging (realized and unrealized) losses	8			18			(e)
Other regulatory assets	52			51			(f)
Asset retirement obligations	(132		)	(64		)	(a)
Other cost of removal obligations	(828		)	(759		)	(a)
Deferred income tax credits	(75		)	(79		)	(a)
Fuel-hedging (realized and unrealized) gains	(8		)	(5		)	(e)
Nuclear outage	51			33			(d)
Natural disaster reserve	(96		)	(103		)	(h)
Other regulatory liabilities	(11		)	(13		)	(d,g)
Retiree benefit plans	461			911			(i,j)
Regulatory deferrals	20			—			(l)
Total regulatory assets (liabilities), net	$	92		$	703

Note: The recovery and amortization periods for these regulatory assets and (liabilities) are as follows:

(a) Asset retirement and removal assets and liabilities are recorded, deferred income tax assets are recovered, and deferred income tax liabilities are amortized over the related property lives, which may range up to 50 years. Asset retirement and removal assets and liabilities will be settled and trued up following completion of the related activities.

(b) Recovered over the remaining life of the original issue, which may range up to 50 years.

(c) Recorded as earned by employees and recovered as paid, generally within one year. This includes both vacation and banked holiday pay.

(d) Recorded and recovered or amortized as approved or accepted by the Alabama PSC over periods not exceeding ten years.

(e) Fuel-hedging assets and liabilities are recorded over the life of the underlying hedged purchase contracts, which generally do not exceed three years. Upon final settlement, actual costs incurred are recovered through the energy cost recovery clause.

(f) Comprised of components including generation site selection/evaluation costs, PPA capacity, and other miscellaneous assets. Recorded as accepted by the Alabama PSC. Capitalized upon initialization of related construction projects, if applicable.

(g) Comprised of components including mine reclamation and remediation liabilities and other liabilities. Recorded as accepted by the Alabama PSC. Mine reclamation and remediation liabilities will be settled following completion of the related activities.

(h) Utilized as storm restoration and potential reliability-related expenses are incurred, as approved by the Alabama PSC.

(i) Recovered and amortized over the average remaining service period which may range up to 15 years. See Note 2 for additional information.

(j) Not earning a return as offset in rate base by a corresponding asset or liability.

(k) Included in the deferred income tax charges are $20 million for 2013 and $21 million for 2012 for the retiree Medicare drug subsidy, which is recovered and amortized, as approved by the Alabama PSC, over the average remaining service period which may range up to 15 years.

(l) Recorded and amortized as approved by the Alabama PSC for 2015 through 2017.

Property Plant and Equipment

The Company's property, plant, and equipment in service consisted of the following at December 31:

	2013		2012
	(in millions)
Generation	$	11,314	$	11,110
Transmission	3,287		3,137
Distribution	5,934		5,714
General	1,545		1,434
Plant acquisition adjustment	12		12
Total plant in service	$	22,092	$	21,407

Asset Retirement Obligations and Other Costs of Removal

Details of the asset retirement obligations included in the balance sheets are as follows:

	2013			2012
	(in millions)
Balance at beginning of year	$	589		$	553
Liabilities incurred	—			—
Liabilities settled	(1		)	(1		)
Accretion	40			37
Cash flow revisions (a)	102			—
Balance at end of year	$	730		$	589

(a) Updated based on results from the 2013 nuclear decommissioning study

Accumulated Provisions for Decommissioning

At December 31, the accumulated provisions for decommissioning were as follows:

	2013		2012
	(in millions)
External trust funds	$	713	$	604
Internal reserves	21		22
Total	$	734	$	626

Estimated Cost of Decommissioning

The estimated costs of decommissioning as of December 31, 2013 based on the most current study performed in 2013 for Plant Farley are as follows:

Decommissioning periods:
Beginning year	2037
Completion year	2076
	(in millions)
Site study costs:
Radiated structures	$	1,362
Non-radiated structures	80
Total site study costs	$	1,442

Gulf Power [Member]

Summary of Significant Accounting Policies [Line Items]

Regulatory Assets and Liabilities

Regulatory assets and (liabilities) reflected in the balance sheets at December 31 relate to:

	2013			2012			Note
	(in thousands)
Deferred income tax charges	$	47,573		$	46,788		(a)
Deferred income tax charges — Medicare subsidy	3,351			3,678			(b)
Asset retirement obligations	(6,089		)	(5,793		)	(a,j)
Other cost of removal obligations	(228,148		)	(213,413		)	(a)
Deferred income tax credits	(5,238		)	(6,515		)	(a)
Loss on reacquired debt	16,565			16,400			(c)
Vacation pay	9,521			9,238			(d,j)
Under recovered regulatory clause revenues	45,191			3,523			(e)
Over recovered regulatory clause revenues	—			(17,092		)	(e)
Property damage reserve	(35,380		)	(31,956		)	(f)
Fuel-hedging (realized and unrealized) losses	17,043			29,038			(g,j)
Fuel-hedging (realized and unrealized) gains	(6,962		)	(4,358		)	(g,j)
PPA charges	180,149			137,568			(j,k)
Other regulatory assets	12,772			11,034			(l)
Environmental remediation	50,384			60,452			(h,j)
PPA credits	(7,496		)	(7,502		)	(j,k)
Other regulatory liabilities	(1,308		)	(534		)	(f)
Retiree benefit plans, net	68,296			141,429			(i,j)
Total regulatory assets (liabilities), net	$	160,224		$	171,985

Note: The recovery and amortization periods for these regulatory assets and (liabilities) are as follows:

(a) Asset retirement and removal assets and liabilities are recorded, deferred income tax assets are recovered, and deferred income tax liabilities are amortized over the related property lives, which may range up to 65 years. Asset retirement and removal assets and liabilities will be settled and trued up following completion of the related activities.

(b) Recovered and amortized over periods not exceeding 14 years.

(c) Recovered over either the remaining life of the original issue or, if refinanced, over the life of the new issue, which may range up to 40 years.

(d) Recorded as earned by employees and recovered as paid, generally within one year. This includes both vacation and banked holiday pay.

(e) Recorded and recovered or amortized as approved by the Florida PSC, generally within one year.

(f) Recorded and recovered or amortized as approved by the Florida PSC.

(g) Fuel-hedging assets and liabilities are recognized over the life of the underlying hedged purchase contracts, which generally do not exceed five years. Upon final settlement, costs are recovered through the fuel cost recovery clause.

(h) Recovered through the environmental cost recovery clause when the remediation is performed.

(i) Recovered and amortized over the average remaining service period which may range up to 15 years. See Note 2 for additional information.

(j) Not earning a return as offset in rate base by a corresponding asset or liability.

(k) Recovered over the life of the PPA for periods up to 14 years.

(l) Comprised primarily of net book value of retired meters, deferred rate case expenses, and generation site evaluation costs. These costs are recorded and recovered or amortized as approved by the Florida PSC, generally over periods not exceeding eight years, or deferred pursuant to Florida statute while the Company continues to evaluate certain potential new generating projects.

Property Plant and Equipment

The Company's property, plant, and equipment in service consisted of the following at December 31:

	2013		2012
	(in thousands)
Generation	$	2,607,166	$	2,598,773
Transmission	473,378		429,341
Distribution	1,117,024		1,069,065
General	164,065		161,379
Plant acquisition adjustment	2,031		2,286
Total plant in service	$	4,363,664	$	4,260,844

Asset Retirement Obligations and Other Costs of Removal

Details of the asset retirement obligations included in the balance sheets are as follows:

	2013			2012
	(in thousands)
Balance at beginning of year	$	16,055		$	10,729
Liabilities incurred	518			—
Liabilities settled	(1,913		)	(107		)
Accretion	751			507
Cash flow revisions	773			4,926
Balance at end of year	$	16,184		$	16,055

Georgia Power [Member]

Summary of Significant Accounting Policies [Line Items]

Regulatory Assets and Liabilities

Regulatory assets and (liabilities) reflected in the balance sheets at December 31 relate to:

	2013			2012			Note
	(in millions)
Retiree benefit plans	$	691		$	1,331		(a, k)
Deferred income tax charges	684			695			(b)
Deferred income tax charges — Medicare subsidy	38			43			(c)
Loss on reacquired debt	181			190			(d)
Asset retirement obligations	137			131			(b, k)
Fuel-hedging (realized and unrealized) losses	22			49			(e)
Vacation pay	88			85			(f, k)
Building leases	37			40			(g)
Cancelled construction projects	70			65			(h)
Remaining net book value of retired units	28			—			(i)
Other regulatory assets	86			100			(c)
Other cost of removal obligations	(58		)	(94		)	(b)
Deferred income tax credits	(112		)	(115		)	(b)
State income tax credits	—			(36		)	(j)
Other regulatory liabilities	(6		)	(13		)	(e)
Total regulatory assets (liabilities), net	$	1,886		$	2,471

Note: The recovery and amortization periods for these regulatory assets and (liabilities) are as follows:

(a) Recovered and amortized over the average remaining service period which may range up to 14 years. See Note 2 for additional information.

(b) Asset retirement and other cost of removal obligations and deferred income tax assets are recovered, and deferred income tax liabilities are amortized over the related property lives, which may range up to 70 years. Asset retirement and removal liabilities will be settled and trued up following completion of the related activities. At December 31, 2013, other cost of removal obligations included $43 million that will be amortized over the three-year period of January 2014 through December 2016 in accordance with the Company's Alternate Rate Plan for the years 2014 through 2016 (2013 ARP).

(c) Recorded and recovered or amortized as approved by the Georgia PSC over periods generally not exceeding nine years.

(d) Recovered over either the remaining life of the original issue or, if refinanced, over the remaining life of the new issue, which currently does not exceed 39 years.

(e) Fuel-hedging assets and liabilities are recorded over the life of the underlying hedged purchase contracts, which generally do not exceed two years. Upon final settlement, actual costs incurred are recovered through the Company's fuel cost recovery mechanism.

(f) Recorded as earned by employees and recovered as paid, generally within one year. This includes both vacation and banked holiday pay.

(g) See Note 6 under "Capital Leases." Recovered over the remaining lives of the buildings through 2026.

(h) Costs associated with construction of environmental controls that will not be completed as a result of unit retirements and amortized over nine years in accordance with the 2013 ARP.

(i) Amortization period over original remaining life beginning October 2013 through December 2022 as approved by the Georgia PSC in the 2013 ARP.

(j) Additional tax benefits resulting from the Georgia state income tax credit settlement that were amortized over a 21-month period that began in April 2012 and ended in December 2013, in accordance with a Georgia PSC order. See Note 5 under "Current and Deferred Income Taxes" for additional information.

(k) Not earning a return as offset in rate base by a corresponding asset or liability.

Property Plant and Equipment

The Company's property, plant, and equipment in service consisted of the following at December 31:

	2013		2012
	(in millions)
Generation	$	14,872	$	14,567
Transmission	4,859		4,581
Distribution	8,620		8,373
General	1,753		1,695
Plant acquisition adjustment	28		28
Total plant in service	$	30,132	$	29,244

Asset Retirement Obligations and Other Costs of Removal

Details of the asset retirement obligations included in the balance sheets are as follows:

	2013			2012
	(in millions)
Balance at beginning of year	$	1,105		$	757
Liabilities incurred	2			24
Liabilities settled	(13		)	(15		)
Accretion	55			72
Cash flow revisions	73			267
Balance at end of year	$	1,222		$	1,105

Accumulated Provisions for Decommissioning

The site study costs and external trust funds for decommissioning as of December 31, 2013 based on the Company's ownership interests were as follows:

	Plant Hatch		Plant Vogtle Units 1 and 2
Decommissioning periods:
Beginning year	2034		2047
Completion year	2068		2072
	(in millions)
Site study costs:
Radiated structures	$	549	$	453
Spent fuel management	131		115
Non-radiated structures	51		76
Total site study costs	$	731	$	644
External trust funds	$	469	$	277

Mississippi Power [Member]

Summary of Significant Accounting Policies [Line Items]

Regulatory Assets and Liabilities

Regulatory assets and (liabilities) reflected in the balance sheets at December 31 relate to:

	2013			2012			Note
	(in thousands)
Retiree benefit plans – regulatory assets	$	82,799		$	162,293		(a,g)
Retiree benefit plans – regulatory liabilities	(3,111		)	—			(a,g)
Property damage	(60,092		)	(58,789		)	(i)
Deferred income tax charges	140,185			68,175			(c)
Property tax	31,206			27,882			(d)
Vacation pay	10,214			9,635			(e,g)
Loss on reacquired debt	9,178			9,815			(k)
Plant Daniel Units 3 and 4 regulatory assets	18,821			12,386			(j)
Other regulatory assets	1,201			2,035			(b)
Fuel-hedging (realized and unrealized) losses	10,340			20,906			(f,g)
Asset retirement obligations	8,918			9,353			(c)
Deferred income tax credits	(10,191		)	(11,157		)	(c)
Other cost of removal obligations	(156,683		)	(143,461		)	(c)
Fuel-hedging (realized and unrealized) gains	(5,335		)	(2,519		)	(f,g)
Kemper IGCC* regulatory assets	75,873			36,047			(h)
Kemper regulatory deferral	(90,524		)	—			(h)
Other regulatory liabilities	(409		)	—			(b)
Deferred income tax charges – Medicare subsidy	4,214			4,868			(l)
Total regulatory assets (liabilities), net	$	66,604		$	147,469

*    Integrated coal gasification combined cycle electric generating plant located in Kemper County, Mississippi (Kemper IGCC).

Note:    The recovery and amortization periods for these regulatory assets and (liabilities) are as follows:

(a) Recovered and amortized over the average remaining service period which may range up to 14 years. See Note 2 for additional information.

(b) Recorded and recovered as approved by the Mississippi PSC.

(c) Asset retirement and removal assets and liabilities and deferred income tax assets are recovered, and removal assets and deferred income tax liabilities are amortized over the related property lives, which may range up to 50 years. Asset retirement and removal assets and liabilities will be settled and trued up following completion of the related activities.

(d) Recovered through the ad valorem tax adjustment clause over a 12-month period beginning in April of the following year. See Note 3 under "Ad Valorem Tax Adjustment" for additional information.

(e) Recorded as earned by employees and recovered as paid, generally within one year. This includes both vacation and banked holiday pay.

(f) Fuel-hedging assets and liabilities are recorded over the life of the underlying hedged purchase contracts, which generally do not exceed four years. Upon final settlement, costs are recovered through the Energy Cost Management clause (ECM).

(g) Not earning a return as offset in rate base by a corresponding asset or liability.

(h) For additional information, see Note 3 under "Integrated Coal Gasification Combined Cycle."

(i) For additional information, see Note 1 under "Provision for Property Damage" and Note 3 under "Retail Regulatory Matters – System Restoration Rider."

(j) Deferred and amortized over a 10-year period beginning October 2021, as approved by the Mississippi PSC for the difference between the revenue requirement under the purchase option and the revenue requirement assuming operating lease accounting treatment for the extended term.

(k) Recovered over the remaining life of the original issue or, if refinanced, over the life of the new issue, which may range up to 50 years.

(l) Recovered and amortized over a 10-year period beginning in 2012, as approved by the Mississippi PSC for the retail portion and a five-year period for the wholesale portion, as approved by FERC.

Property Plant and Equipment

The Company's property, plant, and equipment in service consisted of the following at December 31:

	2013		2012
	(in thousands)
Generation	$	1,475,264	$	1,363,269
Transmission	633,903		563,037
Distribution	828,470		802,718
General	439,721		225,723
Plant acquisition adjustment	81,412		81,412
Total plant in service	$	3,458,770	$	3,036,159

Purchase of the Plant Daniel Combined Cycle Generating Units

The fair value is considered a Level 2 disclosure for financial reporting purposes. Accordingly, Plant Daniel Units 3 and 4 were reflected in the Company's financial statements as follows:

	(in thousands)
Assumption of debt obligations	$	270,000
Fair value adjustment at date of purchase	76,051
Total debt	346,051
Cash payment for the purchase	84,803
Total value of Plant Daniel Units 3 and 4	$	430,854

Asset Retirement Obligations and Other Costs of Removal

Details of the ARO included in the balance sheets are as follows:

	2013			2012
	(in thousands)
Balance at beginning of year	$	42,115		$	19,148
Liabilities incurred	—			20,989
Liabilities settled	(24		)	(282		)
Accretion	1,840			1,874
Cash flow revisions	(2,021		)	386
Balance at end of year	$	41,910		$	42,115

Southern Power [Member]

Summary of Significant Accounting Policies [Line Items]

Future Amortization Expense for PPAs

The amortization expense for the acquired PPAs is as follows:

	Amortization Expense
	(in millions)
2013	$	2.5
2014	2.5
2015	2.5
2016	2.5
2017	2.5
2018 and beyond	33.5
Total	$	46.0