Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Assets and liabilities measured at fair value on a recurring basis

As of March 31, 2017, 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 March 31, 2017:	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)(b)	$	274	$	213	$	—	$	—	$	487
Interest rate derivatives	—		13		—		—		13
Nuclear decommissioning trusts^(c)	714		942		—		21		1,677
Cash equivalents	589		—		—		—		589
Other investments	9		—		1		—		10
Total	$	1,586	$	1,168	$	1	$	21	$	2,776
Liabilities:
Energy-related derivatives^(a)(b)	$	303	$	155	$	—	$	—	$	458
Interest rate derivatives	—		32		—		—		32
Foreign currency derivatives	—		62		—		—		62
Contingent consideration	—		—		20		—		20
Total	$	303	$	249	$	20	$	—	$	572

Alabama Power
Assets:
Energy-related derivatives	$	—	$	11	$	—	$	—	$	11
Nuclear decommissioning trusts:^(d)
Domestic equity	405		77		—		—		482
Foreign equity	52		51		—		—		103
U.S. Treasury and government agency securities	—		28		—		—		28
Corporate bonds	22		143		—		—		165
Mortgage and asset backed securities	—		18		—		—		18
Private Equity	—		—		—		21		21
Other	—		7		—		—		7
Cash equivalents	555		—		—		—		555
Total	$	1,034	$	335	$	—	$	21	$	1,390
Liabilities:
Energy-related derivatives	$	—	$	10	$	—	$	—	$	10



	Fair Value Measurements Using:
As of March 31, 2017:	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	$	—	$	24	$	—	$	—	$	24
Interest rate derivatives	—		2		—		—		2
Nuclear decommissioning trusts:^{(d) (e)}
Domestic equity	216		1		—		—		217
Foreign equity	—		137		—		—		137
U.S. Treasury and government agency securities	—		196		—		—		196
Municipal bonds	—		70		—		—		70
Corporate bonds	—		168		—		—		168
Mortgage and asset backed securities	—		41		—		—		41
Other	19		5		—		—		24
Cash equivalents	—		—		—		—		—
Total	$	235	$	644	$	—	$	—	$	879
Liabilities:
Energy-related derivatives	$	—	$	13	$	—	$	—	$	13
Interest rate derivatives	—		4		—		—		4
Total	$	—	$	17	$	—	$	—	$	17

Gulf Power
Assets:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2
Cash equivalents	21		—		—		—		21
Total	$	21	$	2	$	—	$	—	$	23
Liabilities:
Energy-related derivatives	$	—	$	31	$	—	$	—	$	31

Mississippi Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Interest rate derivatives	—		4		—		—		4
Total	$	—	$	7	$	—	$	—	$	7
Liabilities:
Energy-related derivatives	$	—	$	12	$	—	$	—	$	12



	Fair Value Measurements Using:
As of March 31, 2017:	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	$	—	$	15	$	—	$	—	$	15
Liabilities:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5
Foreign currency derivatives	—		62		—		—		62
Contingent consideration	—		—		20		—		20
Total	$	—	$	67	$	20	$	—	$	87

Southern Company Gas
Assets:
Energy-related derivatives^(a)(b)	$	274	$	158	$	—	$	—	$	432
Liabilities:
Energy-related derivatives^(a)(b)	$	303	$	84	$	—	$	—	$	387


(a)	Excludes $19 million associated with certain weather derivatives accounted for based on intrinsic value rather than fair value.


(b)	Excludes cash collateral of $92 million.


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


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


(e)	Includes the investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. As of March 31, 2017, approximately $56 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 March 31, 2017, 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 March 31, 2017:	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
	(in millions)
Southern Company	$	21	$	22	Not Applicable	Not Applicable
Alabama Power	$	21	$	22	Not Applicable	Not Applicable

Financial instruments for which carrying amount did not equal fair value

As of March 31, 2017, 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	$	45,881	$	46,828
Alabama Power	$	7,439	$	7,807
Georgia Power	$	11,362	$	11,777
Gulf Power	$	1,079	$	1,110
Mississippi Power	$	2,977	$	2,909
Southern Power	$	5,648	$	5,694
Southern Company Gas	$	5,268	$	5,487