Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Assets and liabilities measured at fair value on a recurring basis

As of March 31, 2014, assets and liabilities measured at fair value on a recurring basis during the period, together with the level of the fair value hierarchy in which they fall, were as follows:



	Fair Value Measurements Using
As of March 31, 2014:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives	$	—	$	40	$	—	$	40
Interest rate derivatives	3		—		—		3
Nuclear decommissioning trusts^(a)	626		884		2		1,512
Cash equivalents	408		—		—		408
Other investments	9		—		4		13
Total	$	1,046	$	924	$	6	$	1,976
Liabilities:
Energy-related derivatives	$	—	$	43	$	—	$	43

Alabama Power
Assets:
Energy-related derivatives	$	—	$	12	$	—	$	12
Nuclear decommissioning trusts^(b)
Domestic equity	403		77		—		480
Foreign equity	35		65		—		100
U.S. Treasury and government agency securities	—		29		—		29
Corporate bonds	—		88		—		88
Mortgage and asset backed securities	—		18		—		18
Other	—		9		2		11
Cash equivalents	176		—		—		176
Total	$	614	$	298	$	2	$	914
Liabilities:
Energy-related derivatives	$	—	$	6	$	—	$	6



	Fair Value Measurements Using
As of March 31, 2014:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Georgia Power
Assets:
Energy-related derivatives	$	—	$	8	$	—	$	8
Nuclear decommissioning trusts^{(b) (c)}
Domestic equity	188		1		—		189
Foreign equity	—		131		—		131
U.S. Treasury and government agency securities	—		125		—		125
Municipal bonds	—		40		—		40
Corporate bonds	—		153		—		153
Mortgage and asset backed securities	—		103		—		103
Other	—		45		—		45
Total	$	188	$	606	$	—	$	794
Liabilities:
Energy-related derivatives	$	—	$	16	$	—	$	16

Gulf Power
Assets:
Energy-related derivatives	$	—	$	12	$	—	$	12
Cash equivalents	18		—		—		18
Total	$	18	$	12	$	—	$	30
Liabilities:
Energy-related derivatives	$	—	$	13	$	—	$	13

Mississippi Power
Assets:
Energy-related derivatives	$	—	$	8	$	—	$	8
Cash equivalents	63		—		—		63
Total	$	63	$	8	$	—	$	71
Liabilities:
Energy-related derivatives	$	—	$	8	$	—	$	8

Southern Power
Assets:
Cash equivalents	$	115	$	—	$	—	$	115


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


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


(c)	Includes the investment securities pledged to creditors and cash collateral received and excludes payables related to the securities lending program. As of March 31, 2014, approximately $51 million of the fair market value of Georgia Power's nuclear decommissioning trust funds' securities were on loan and pledged 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 March 31, 2014, the fair value measurements of investments calculated at net asset value per share (or its equivalent), as well as the nature and risks of those investments, were as follows:



As of March 31, 2014:	Fair Value		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company
Nuclear decommissioning trusts:
Foreign equity funds	$	131	None	Monthly	5 days
Equity - commingled funds	65		None	Daily/Monthly	Daily/7 days
Other - commingled funds	45		None	Daily/Monthly	Daily/7 days
Trust-owned life insurance	111		None	Daily	15 days
Cash equivalents:
Money market funds	408		None	Daily	Not applicable
Alabama Power
Nuclear decommissioning trusts:
Equity - commingled funds	$	65	None	Daily/Monthly	Daily/7 days
Trust-owned life insurance	111		None	Daily	15 days
Cash equivalents:
Money market funds	176		None	Daily	Not applicable
Georgia Power
Nuclear decommissioning trusts:
Foreign equity funds	$	131	None	Monthly	5 days
Other - commingled funds	45		None	Daily	Not applicable
Gulf Power
Cash equivalents:
Money market funds	$	18	None	Daily	Not applicable
Mississippi Power
Cash equivalents:
Money market funds	$	63	None	Daily	Not applicable
Southern Power
Cash equivalents:
Money market funds	$	115	None	Daily	Not applicable

Financial instruments for which carrying amount did not equal fair value

As of March 31, 2014, 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:
Southern Company	$	22,896	$	23,963
Alabama Power	$	6,228	$	6,689
Georgia Power	$	9,593	$	9,997
Gulf Power	$	1,233	$	1,308
Mississippi Power	$	2,346	$	2,346
Southern Power	$	1,620	$	1,709

- Definition

Tabular disclosure of the fair value of investees that calculate net asset value per share (including by unit, membership interest, or other equity (ownership interest) unit measure) (alternative investments), whether measured at fair value on a recurring or nonrecurring basis, by major category of assets and liabilities (as defined), including, for example, (i) fair value measurements at the reporting date, (ii) the level within the fair value hierarchy in which the fair value measurements fall, (iii) a reconciliation of beginning and ending balances for those alternative investments that are measured at fair value using unobservable inputs (Level 3 - fair value hierarchy fair value measurement inputs), (iv) the inputs and valuation techniques used to measure fair value, (v) a discussion of changes to valuation techniques and inputs, if any, during the period, (vi) a description of the nature and risk associated with the alternative investments, and (vii) a discussion of the probability that any of the alternative investments are to be sold.

+ References+ Details