Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Assets and liabilities measured at fair value on a recurring basis

As of March 31, 2016, assets and liabilities measured at fair value on a recurring basis during the period, together with their associated level of the fair value hierarchy, were as follows:



	Fair Value Measurements Using
As of March 31, 2016:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives	$	—	$	12	$	—	$	—	$	12
Interest rate derivatives	—		33		—		—		33
Nuclear decommissioning trusts^(a)	624		898		—		16		1,538
Cash equivalents	503		—		—		—		503
Other investments	9		—		1		—		10
Total	$	1,136	$	943	$	1	$	16	$	2,096
Liabilities:
Energy-related derivatives	$	—	$	201	$	—	$	—	$	201
Interest rate derivatives	—		193		—		—		193
Total	$	—	$	394	$	—	$	—	$	394

Alabama Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Nuclear decommissioning trusts^(b)
Domestic equity	365		67		—		—		432
Foreign equity	46		48		—		—		94
U.S. Treasury and government agency securities	—		25		—		—		25
Corporate bonds	11		137		—		—		148
Mortgage and asset backed securities	—		21		—		—		21
Private Equity	—		—		—		16		16
Other	—		9		—		—		9
Cash equivalents	321		—		—		—		321
Total	$	743	$	310	$	—	$	16	$	1,069
Liabilities:
Energy-related derivatives	$	—	$	49	$	—	$	—	$	49



	Fair Value Measurements Using
As of March 31, 2016:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Georgia Power
Assets:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4
Interest rate derivatives	—		14		—		—		14
Nuclear decommissioning trusts^{(b) (c)}
Domestic equity	180		1		—		—		181
Foreign equity	—		115		—		—		115
U.S. Treasury and government agency securities	—		111		—		—		111
Municipal bonds	—		66		—		—		66
Corporate bonds	—		146		—		—		146
Mortgage and asset backed securities	—		145		—		—		145
Other	22		7		—		—		29
Cash equivalents	57		—		—		—		57
Total	$	259	$	609	$	—	$	—	$	868
Liabilities:
Energy-related derivatives	$	—	$	11	$	—	$	—	$	11

Gulf Power
Assets:
Cash equivalents	$	20	$	—	$	—	$	—	$	20
Liabilities:
Energy-related derivatives	$	—	$	94	$	—	$	—	$	94
Interest rate derivatives	—		5		—		—		5
Total	$	—	$	99	$	—	$	—	$	99

Mississippi Power
Assets:
Cash equivalents	$	24	$	—	$	—	$	—	$	24
Liabilities:
Energy-related derivatives	$	—	$	44	$	—	$	—	$	44

Southern Power
Assets:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5
Interest rate derivatives	—		1		—		—		1
Cash equivalents	39		—		—		—		39
Total	$	39	$	6	$	—	$	—	$	45
Liabilities:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3


(a)	For additional detail, see the nuclear decommissioning trusts sections for Alabama Power and Georgia Power in this table.


(b)	Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies.


(c)	Includes the investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. As of March 31, 2016, approximately $58 million of the fair market value of Georgia Power's nuclear decommissioning trust funds' securities were on loan to creditors under the funds' managers' securities lending program.

Fair value measurements of investments calculated at net asset value per share as well as the nature and risk of those investments

As of March 31, 2016, the fair value measurements of private equity investments held in the nuclear decommissioning trust that are calculated at net asset value per share (or its equivalent) as a practical expedient, as well as the nature and risks of those investments, were as follows:



As of March 31, 2016:	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company	$	16	$	29	Not Applicable	Not Applicable
Alabama Power	$	16	$	29	Not Applicable	Not Applicable

Financial instruments for which carrying amount did not equal fair value

As of March 31, 2016, other financial instruments for which the carrying amount did not equal fair value were as follows:



	Carrying Amount		Fair Value
	(in millions)
Long-term debt, including securities due within one year:
Southern Company	$	28,341	$	29,827
Alabama Power	$	7,089	$	7,688
Georgia Power	$	10,549	$	11,400
Gulf Power	$	1,303	$	1,366
Mississippi Power	$	3,209	$	2,938
Southern Power	$	3,123	$	3,171