Retirement Benefits

9 Months Ended

Sep. 30, 2012

Compensation and Retirement Disclosure [Abstract]

RETIREMENT BENEFITS

RETIREMENT BENEFITS

Southern Company has a defined benefit, trusteed, pension plan covering substantially all employees. The qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended. No mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2012. Southern Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, Southern Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional operating companies fund related other postretirement trusts to the extent required by their respective regulatory commissions.

See Note 2 to the financial statements of Southern Company, Alabama Power, Georgia Power, Gulf Power, and Mississippi Power in Item 8 of the Form 10-K for additional information.

Components of the net periodic benefit costs for the three and nine months ended September 30, 2012 and 2011 were as follows:

Pension Plans	Southern Company			Alabama Power			Georgia Power			Gulf Power			Mississippi   Power
	(in millions)
Three Months Ended September 30, 2012
Service cost	$	49		$	11		$	15		$	2		$	2
Interest cost	98			23			35			5			5
Expected return on plan assets	(145		)	(40		)	(56		)	(7		)	(6		)
Net amortization	32			8			12			1			2
Net cost	$	34		$	2		$	6		$	1		$	3
Nine Months Ended September 30, 2012
Service cost	$	148		$	33		$	45		$	7		$	7
Interest cost	295			70			106			13			14
Expected return on plan assets	(436		)	(121		)	(166		)	(20		)	(18		)
Net amortization	94			23			34			4			4
Net cost	$	101		$	5		$	19		$	4		$	7
Three Months Ended September 30, 2011
Service cost	$	46		$	11		$	14		$	2		$	3
Interest cost	97			24			36			4			4
Expected return on plan assets	(152		)	(44		)	(59		)	(6		)	(7		)
Net amortization	14			3			5			—			1
Net cost (income)	$	5		$	(6	)	$	(4	)	$	—		$	1
Nine Months Ended September 30, 2011
Service cost	$	138		$	32		$	43		$	6		$	7
Interest cost	292			72			108			13			13
Expected return on plan assets	(456		)	(130		)	(176		)	(20		)	(19		)
Net amortization	40			10			14			1			2
Net cost (income)	$	14		$	(16	)	$	(11	)	$	—		$	3

Postretirement Benefits	Southern Company			Alabama Power			Georgia Power			Gulf Power			Mississippi Power
	(in millions)
Three Months Ended September 30, 2012
Service cost	$	5		$	1		$	2		$	—		$	—
Interest cost	21			6			8			1			1
Expected return on plan assets	(15		)	(6		)	(7		)	—			—
Net amortization	5			1			3			—			—
Net cost	$	16		$	2		$	6		$	1		$	1
Nine Months Ended September 30, 2012
Service cost	$	16		$	4		$	5		$	1		$	1
Interest cost	63			17			27			3			3
Expected return on plan assets	(45		)	(18		)	(21		)	(1		)	(1		)
Net amortization	15			4			8			—			—
Net cost	$	49		$	7		$	19		$	3		$	3
Three Months Ended September 30, 2011
Service cost	$	6		$	1		$	1		$	—		$	—
Interest cost	23			6			11			1			1
Expected return on plan assets	(16		)	(6		)	(8		)	—			—
Net amortization	5			2			3			—			—
Net cost	$	18		$	3		$	7		$	1		$	1
Nine Months Ended September 30, 2011
Service cost	$	16		$	4		$	5		$	1		$	1
Interest cost	69			18			31			3			3
Expected return on plan assets	(48		)	(19		)	(23		)	(1		)	(1		)
Net amortization	15			5			8			—			—
Net cost	$	52		$	8		$	21		$	3		$	3