Retirement Benefits

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

RETIREMENT BENEFITS

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. No mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2015. 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 months ended March 31, 2015 and 2014 were as follows:

Pension Plans	Southern Company			Alabama Power			Georgia Power			Gulf Power			Mississippi Power
	(in millions)
Three Months Ended March 31, 2015
Service cost	$	64		$	15		$	18		$	3		$	3
Interest cost	111			26			38			5			5
Expected return on plan assets	(181		)	(45		)	(63		)	(8		)	(8		)
Amortization:
Prior service costs	6			2			3			—			—
Net (gain)/loss	54			14			19			3			3
Net cost	$	54		$	12		$	15		$	3		$	3
Three Months Ended March 31, 2014
Service cost	$	53		$	12		$	16		$	3		$	3
Interest cost	109			26			38			5			5
Expected return on plan assets	(161		)	(42		)	(57		)	(7		)	(7		)
Amortization:
Prior service costs	6			1			3			—			—
Net (gain)/loss	28			8			10			1			1
Net cost	$	35		$	5		$	10		$	2		$	2

Postretirement Benefits	Southern Company			Alabama Power			Georgia Power			Gulf Power		Mississippi Power
	(in millions)
Three Months Ended March 31, 2015
Service cost	$	6		$	1		$	2		$	—	$	—
Interest cost	19			5			8			1		1
Expected return on plan assets	(15		)	(6		)	(6		)	—		—
Amortization:
Prior service costs	1			1			—			—		—
Net (gain)/loss	5			—			3			—		—
Net cost	$	16		$	1		$	7		$	1	$	1
Three Months Ended March 31, 2014
Service cost	$	5		$	1		$	2		$	—	$	—
Interest cost	20			5			8			1		1
Expected return on plan assets	(15		)	(6		)	(6		)	—		—
Amortization:
Prior service costs	1			1			—			—		—
Net (gain)/loss	1			—			—			—		—
Net cost	$	12		$	1		$	4		$	1	$	1