Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Assets and liabilities measured at fair value on a recurring basis

As of June 30, 2017, 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 June 30, 2017:	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^(a)(b)	$	193	$	179	$	—	$	—	$	372
Interest rate derivatives	—		11		—		—		11
Foreign currency derivatives	—		56		—		—		56
Nuclear decommissioning trusts^(c)	728		966		—		25		1,719
Cash equivalents	834		—		—		—		834
Other investments	9		—		1		—		10
Total	$	1,764	$	1,212	$	1	$	25	$	3,002
Liabilities:
Energy-related derivatives^(a)(b)	$	205	$	161	$	—	$	—	$	366
Interest rate derivatives	—		23		—		—		23
Foreign currency derivatives	—		23		—		—		23
Contingent consideration	—		—		20		—		20
Total	$	205	$	207	$	20	$	—	$	432

Alabama Power
Assets:
Energy-related derivatives	$	—	$	9	$	—	$	—	$	9
Nuclear decommissioning trusts:^(d)
Domestic equity	411		79		—		—		490
Foreign equity	56		54		—		—		110
U.S. Treasury and government agency securities	—		29		—		—		29
Corporate bonds	22		145		—		—		167
Mortgage and asset backed securities	—		18		—		—		18
Private Equity	—		—		—		25		25
Other	—		6		—		—		6
Cash equivalents	493		—		—		—		493
Total	$	982	$	340	$	—	$	25	$	1,347
Liabilities:
Energy-related derivatives	$	—	$	11	$	—	$	—	$	11



	Fair Value Measurements Using:
As of June 30, 2017:	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	$	—	$	15	$	—	$	—	$	15
Interest rate derivatives	—		1		—		—		1
Nuclear decommissioning trusts:^{(d) (e)}
Domestic equity	225		1		—		—		226
Foreign equity	—		147		—		—		147
U.S. Treasury and government agency securities	—		198		—		—		198
Municipal bonds	—		72		—		—		72
Corporate bonds	—		169		—		—		169
Mortgage and asset backed securities	—		41		—		—		41
Other	14		7		—		—		21
Cash equivalents	50		—		—		—		50
Total	$	289	$	651	$	—	$	—	$	940
Liabilities:
Energy-related derivatives	$	—	$	14	$	—	$	—	$	14
Interest rate derivatives	—		3		—		—		3
Total	$	—	$	17	$	—	$	—	$	17

Gulf Power
Assets:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1
Cash equivalents	21		—		—		—		21
Total	$	21	$	1	$	—	$	—	$	22
Liabilities:
Energy-related derivatives	$	—	$	29	$	—	$	—	$	29

Mississippi Power
Assets:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2
Interest rate derivatives	—		3		—		—		3
Cash equivalents	100		—		—		—		100
Total	$	100	$	5	$	—	$	—	$	105
Liabilities:
Energy-related derivatives	$	—	$	10	$	—	$	—	$	10



	Fair Value Measurements Using:
As of June 30, 2017:	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 Power
Assets:
Energy-related derivatives	$	—	$	14	$	—	$	—	$	14
Foreign currency derivatives	—		56		—		—		56
Total	$	—	$	70	$	—	$	—	$	70
Liabilities:
Energy-related derivatives	$	—	$	9	$	—	$	—	$	9
Foreign currency derivatives	—		23		—		—		23
Contingent consideration	—		—		20		—		20
Total	$	—	$	32	$	20	$	—	$	52

Southern Company Gas
Assets:
Energy-related derivatives^(a)(b)	$	193	$	138	$	—	$	—	$	331
Liabilities:
Energy-related derivatives^(a)(b)	$	205	$	86	$	—	$	—	$	291


(a)	Excludes $11 million associated with certain weather derivatives accounted for based on intrinsic value rather than fair value.


(b)	Excludes cash collateral of $71 million.


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


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


(e)	Includes the investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. As of June 30, 2017, approximately $38 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 June 30, 2017, 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 June 30, 2017:	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company	$	25	$	22	Not Applicable	Not Applicable
Alabama Power	$	25	$	22	Not Applicable	Not Applicable

Financial instruments for which carrying amount did not equal fair value

As of June 30, 2017, 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	$	46,631	$	48,228
Alabama Power	$	7,440	$	8,041
Georgia Power	$	10,888	$	11,585
Gulf Power	$	1,292	$	1,336
Mississippi Power	$	2,125	$	2,071
Southern Power	$	5,725	$	5,878
Southern Company Gas	$	5,699	$	6,031