Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Assets and liabilities measured at fair value on a recurring basis

As of September 30, 2016, assets and liabilities measured at fair value on a recurring basis during the period, together with their associated level of the fair value hierarchy, were as follows:



	Fair Value Measurements Using
As of September 30, 2016:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives^(a)	$	203	$	190	$	—	$	—	$	393
Interest rate derivatives	—		19		—		—		19
Foreign currency derivatives	—		23		—		—		23
Nuclear decommissioning trusts^(b)	660		938		—		18		1,616
Cash equivalents	1,680		—		—		—		1,680
Other investments	9		—		1		—		10
Total	$	2,552	$	1,170	$	1	$	18	$	3,741
Liabilities:
Energy-related derivatives	$	267	$	274	$	—	$	—	$	541
Interest rate derivatives	—		7		—		—		7
Foreign currency derivatives	—		24		—		—		24
Contingent consideration	—		—		18		—		18
Total	$	267	$	305	$	18	$	—	$	590

Alabama Power
Assets:
Energy-related derivatives	$	—	$	8	$	—	$	—	$	8
Nuclear decommissioning trusts^(c)
Domestic equity	373		72		—		—		445
Foreign equity	49		49		—		—		98
U.S. Treasury and government agency securities	—		22		—		—		22
Corporate bonds	22		148		—		—		170
Mortgage and asset backed securities	—		21		—		—		21
Private Equity	—		—		—		18		18
Other	—		7		—		—		7
Cash equivalents	410		—		—		—		410
Total	$	854	$	327	$	—	$	18	$	1,199
Liabilities:
Energy-related derivatives	$	—	$	21	$	—	$	—	$	21



	Fair Value Measurements Using
As of September 30, 2016:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Georgia Power
Assets:
Energy-related derivatives	$	—	$	15	$	—	$	—	$	15
Interest rate derivatives	—		10		—		—		10
Nuclear decommissioning trusts^{(c) (d)}
Domestic equity	197		1		—		—		198
Foreign equity	—		125		—				125
U.S. Treasury and government agency securities	—		59		—		—		59
Municipal bonds	—		70		—		—		70
Corporate bonds	—		172		—		—		172
Mortgage and asset backed securities	—		149		—		—		149
Other	19		43		—		—		62
Cash equivalents	32		—		—		—		32
Total	$	248	$	644	$	—	$	—	$	892
Liabilities:
Energy-related derivatives	$	—	$	16	$	—	$	—	$	16

Gulf Power
Assets:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1
Cash equivalents	20		—		—		—		20
Total	$	20	$	1	$	—	$	—	$	21
Liabilities:
Energy-related derivatives	$	—	$	51	$	—	$	—	$	51
Interest rate derivatives	—		6		—		—		6
Total	$	—	$	57	$	—	$	—	$	57

Mississippi Power
Assets:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1
Cash equivalents	137		—		—		—		137
Total	$	137	$	1	$	—	$	—	$	138
Liabilities:
Energy-related derivatives	$	—	$	21	$	—	$	—	$	21
Interest rate derivatives	—		1		—		—		1
Total	$	—	$	22	$	—	$	—	$	22



	Fair Value Measurements Using
As of September 30, 2016:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Southern Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Foreign currency derivatives	—		23		—		—		23
Cash equivalents	647		—		—		—		647
Total	$	647	$	26	$	—	$	—	$	673
Liabilities:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Foreign currency derivatives	—		24		—		—		24
Contingent consideration	—		—		18		—		18
Total	$	—	$	27	$	18	$	—	$	45


(a)	Excludes $7 million associated with certain weather derivatives accounted for based on intrinsic value rather than fair value.


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


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


(d)	Includes the investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. As of September 30, 2016, approximately $42 million of the fair market value of Georgia Power's nuclear decommissioning trust funds' securities were on loan 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 September 30, 2016, the fair value measurements of private equity investments held in the nuclear decommissioning trust that are calculated at net asset value per share (or its equivalent) as a practical expedient, as well as the nature and risks of those investments, were as follows:



As of September 30, 2016:	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company	$	18	$	27	Not Applicable	Not Applicable
Alabama Power	$	18	$	27	Not Applicable	Not Applicable

Financial instruments for which carrying amount did not equal fair value

As of September 30, 2016, 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, including securities due within one year:
Southern Company	$	43,668	$	47,227
Alabama Power	$	7,091	$	7,961
Georgia Power	$	10,398	$	11,582
Gulf Power	$	1,184	$	1,267
Mississippi Power	$	2,981	$	2,967
Southern Power	$	4,608	$	4,821