Effective Tax Rate and Unrecognized Tax Benefits (Tables)

6 Months Ended

Jun. 30, 2011

Effective Tax Rate and Unrecognized Tax Benefits [Abstract]


	Southern			Alabama		Georgia			Gulf		Mississippi		Southern
	Company			Power		Power			Power		Power		Power

	(in millions)
Unrecognized tax benefits as of December 31, 2010	$	296		$	43	$	237		$	4	$	4	$	2
Tax positions from current periods		43			4		7			—		1		—
Tax positions from prior periods		(67	)		—		(67	)		—		—		—
Reductions due to settlements		(112	)		—		(112	)		—		—		—
Reductions due to expired statute of limitations		—			—		—			—		—		—

Balance as of June 30, 2011	$	160		$	47	$	65		$	4	$	5	$	2

Impact on effective tax rate


					As of
	As of June 30, 2011				December 31, 2010
	Georgia		Other		Southern		Southern
	Power		Registrants		Company		Company

	(in millions
Tax positions impacting the effective tax rate	$	26	$	12	$	73	$	217
Tax positions not impacting the effective tax rate		39		47		87		79

Balance of unrecognized tax benefits	$	65	$	59	$	160	$	296

Accrued interest for unrecognized tax benefits


	Georgia			Other		Southern
	Power			Registrants		Company

	(in millions)
Interest accrued as of December 31, 2010	$	27		$	2	$	29
Interest reclassified due to settlements		(24	)		—		(24	)
Interest accrued during the period		3			2		5

Balance as of June 30, 2011	$	6		$	4	$	10

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details