Acquisitions and Dispositions (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Schedule of Business Acquisitions

During the nine months ended September 30, 2018, one of Southern Power's wholly-owned subsidiaries acquired and completed construction of the Gaskell West 1 solar facility. Acquisition-related costs were expensed as incurred and were not material.

Project Facility	Resource	Seller; Acquisition Date	Approximate Nameplate Capacity (MW)	Location	Southern Power Percentage Ownership		Actual COD	PPA Contract Period
Gaskell West 1	Solar	Recurrent Energy Development Holdings, LLC January 26, 2018	20	Kern County, CA	100% of Class B	(*)	March 2018	20 years

(*) Southern Power owns 100% of the class B membership interests under a tax equity partnership agreement.

Schedule of Construction Projects

Project Facility	Resource	Approximate Nameplate Capacity (MW)	Location	Actual/Expected COD	PPA Contract Period
Cactus Flats(a)	Wind	148	Concho County, TX	July 2018	12-15 years
Mankato	Natural Gas	385	Mankato, MN	First half 2019	20 years
Wild Horse Mountain(b)	Wind	100	Pushmataha County, OK	Fourth quarter 2019	20 years
Reading(c)	Wind	200	Osage and Lyon Counties, KS	Second quarter 2020	12 years

(a) In July 2017, Southern Power purchased 100% of the Cactus Flats facility and commenced construction. In July 2018, the facility was placed in service and, in August 2018, Southern Power closed on a tax equity partnership agreement and owns 100% of the class B membership interests.

(b) In May 2018, Southern Power purchased 100% of the Wild Horse Mountain facility and commenced construction. Southern Power may enter into a tax equity partnership agreement, in which case it would then own 100% of the class B membership interests.

(c) In August 2018, Southern Power purchased 100% of the membership interests from the joint development arrangement with Renewable Energy Systems Americas, Inc. and commenced construction. Southern Power may enter into a tax equity partnership agreement, in which case it would then own 100% of the class B membership interests.

Disposal Groups, Including Discontinued Operations

Gulf Power and the Florida Plants represent individually significant components of Southern Company and Southern Power, respectively; therefore, pre-tax profit for these components for the three and nine months ended September 30, 2018 and 2017 is presented below:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2018		2017		2018		2017
	(in millions)				(in millions)
Earnings before income taxes:
Gulf Power	$	59	$	103	$	146	$	199
Southern Power's Florida Plants	$	18	$	11	$	40	$	28

The following table provides Southern Company's and Southern Power's major classes of assets and liabilities classified as held for sale at September 30, 2018:

	Southern Company		Southern Power
	(in millions)
Assets Held for Sale:
Current assets	$	407	$	18
Total property, plant, and equipment	4,093		168
Other non-current assets	574		17
Total Assets Held for Sale	$	5,074	$	203
Liabilities Held for Sale:
Current liabilities	$	355	$	4
Long-term debt	1,285		—
Accumulated deferred income taxes	542		—
Other non-current liabilities	1,008		—
Total Liabilities Held for Sale	$	3,190	$	4