Retirement Benefits

6 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

Retirement Benefits

RETIREMENT BENEFITS

The Southern Company system has a qualified defined benefit, trusteed, pension plan covering substantially all employees, with the exception of employees at PowerSecure. The qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2024. The Southern Company system also provides certain non-qualified defined benefits for a select group of management and highly compensated employees, which are funded on a cash basis. In addition, the Southern Company system provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional electric operating companies fund other postretirement trusts to the extent required by their respective regulatory commissions. Southern Company Gas has a separate unfunded supplemental retirement health care plan that provides medical care and life insurance benefits to employees of discontinued businesses.

See Note 11 to the financial statements in Item 8 of the Form 10-K for additional information.

On each Registrant's condensed statements of income, the service cost component of net periodic benefit costs is included in other operations and maintenance expenses and all other components of net periodic benefit costs are included in other income (expense), net. Components of the net periodic benefit costs for the three and six months ended June 30, 2024 and 2023 are presented in the following tables.

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended June 30, 2024
Pension Plans
Service cost	$	73	$	17	$	17	$	3	$	1	$	7
Interest cost	158		37		48		7		2		11
Expected return on plan assets	(315)		(76)		(98)		(15)		(4)		(21)
Amortization:
Prior service costs	—		—		1		—		—		(1)
Regulatory asset	—		—		—		—		—		4
Net loss	13		4		4		2		1		—
Net periodic pension income	$	(71)	$	(18)	$	(28)	$	(3)	$	—	$	—
Postretirement Benefits
Service cost	$	3	$	1	$	1	$	—	$	—	$	—
Interest cost	17		4		5		—		—		2
Expected return on plan assets	(22)		(8)		(8)		—		—		(2)
Amortization:
Regulatory asset	—		—		—		—		—		2
Net gain	(4)		(2)		—		—		—		(1)
Net periodic postretirement benefit cost (income)	$	(6)	$	(5)	$	(2)	$	—	$	—	$	1
Six Months Ended June 30, 2024
Pension Plans
Service cost	$	146	$	34	$	35	$	6	$	3	$	14
Interest cost	317		74		96		14		4		21
Expected return on plan assets	(631)		(153)		(197)		(29)		(8)		(43)
Amortization:
Prior service costs	—		—		1		—		—		(1)
Regulatory asset	—		—		—		—		—		8
Net loss	27		8		9		2		1		—
Net periodic pension income	$	(141)	$	(37)	$	(56)	$	(7)	$	—	$	(1)
Postretirement Benefits
Service cost	$	7	$	2	$	2	$	—	$	—	$	—
Interest cost	33		8		11		1		—		4
Expected return on plan assets	(44)		(17)		(16)		—		—		(4)
Amortization:
Prior service costs	1		—		—		—		—		—
Regulatory asset	—		—		—		—		—		3
Net gain	(8)		(2)		(1)		(1)		—		(3)
Net periodic postretirement benefit income	$	(11)	$	(9)	$	(4)	$	—	$	—	$	—

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended June 30, 2023
Pension Plans
Service cost	$	69	$	16	$	17	$	3	$	1	$	6
Interest cost	157		36		47		7		2		11
Expected return on plan assets	(308)		(74)		(96)		(14)		(4)		(22)
Amortization:
Prior service costs	—		—		1		—		—		(1)
Regulatory asset	—		—		—		—		—		4
Net (gain)/loss	8		3		3		—		—		(1)
Net periodic pension income	$	(74)	$	(19)	$	(28)	$	(4)	$	(1)	$	(3)
Postretirement Benefits
Service cost	$	3	$	1	$	1	$	—	$	—	$	—
Interest cost	17		4		7		1		—		2
Expected return on plan assets	(20)		(9)		(8)		—		—		(2)
Amortization:
Prior service costs	1		—		—		—		—		—
Regulatory asset	—		—		—		—		—		2
Net gain	(3)		—		(1)		—		—		(1)
Net periodic postretirement benefit cost (income)	$	(2)	$	(4)	$	(1)	$	1	$	—	$	1
Six Months Ended June 30, 2023
Pension Plans
Service cost	$	138	$	32	$	34	$	6	$	3	$	12
Interest cost	313		72		95		14		4		21
Expected return on plan assets	(615)		(148)		(192)		(28)		(8)		(44)
Amortization:
Prior service costs	—		—		1		—		—		(1)
Regulatory asset	—		—		—		—		—		8
Net (gain) loss	16		5		6		—		—		(2)
Net periodic pension income	$	(148)	$	(39)	$	(56)	$	(8)	$	(1)	$	(6)
Postretirement Benefits
Service cost	$	7	$	2	$	2	$	—	$	—	$	—
Interest cost	35		8		13		2		—		4
Expected return on plan assets	(41)		(17)		(15)		(1)		—		(3)
Amortization:
Prior service costs	1		—		—		—		—		—
Regulatory asset	—		—		—		—		—		3
Net gain	(6)		(1)		(2)		—		—		(2)
Net periodic postretirement benefit cost (income)	$	(4)	$	(8)	$	(2)	$	1	$	—	$	2