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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of specific impacts of applying ASC 606 to revenues from contracts with customers
The specific impacts of applying ASC 606 to revenues from contracts with customers on the financial statements of Southern Company, Alabama Power, Georgia Power, and Southern Company Gas compared to previously recognized guidance is shown below.
 
For the Year Ended December 31, 2018
Statements of Income
As Reported
Balances Without Adoption of
ASC 606
Effect of Change
 
(in millions)
Southern Company
 
 
 
Natural gas revenues
$
3,854

$
3,852

$
2

Other revenues
1,239

1,234

5

Other operations and maintenance
5,889

5,830

59

Operating Income
4,191

4,243

(52
)
Other income (expense), net
114

60

54

Earnings Before Income Taxes
2,749

2,747

2

Income taxes
449

448

1

Consolidated Net Income
2,300

2,299

1

Consolidated Net Income Attributable to Southern Company
2,226

2,225

1

 
 
 
 
Alabama Power
 
 
 
Other revenues
$
267

$
230

$
37

Other operations and maintenance
1,669

1,625

44

Taxes other than income taxes
389

388

1

Operating Income
1,477

1,485

(8
)
Other income (expense), net
20

12

8

 
 
 
 
Georgia Power
 
 
 
Other revenues
$
481

$
387

$
94

Other operations and maintenance
1,860

1,772

88

Operating Income
1,289

1,283

6

Other income (expense), net
115

121

(6
)
 
 
 
 
Southern Company Gas
 
 
 
Natural gas revenues
$
3,874

$
3,872

$
2

Operating Income
915

913

2

Earnings Before Income Taxes
836

834

2

Income taxes
464

463

1

Net Income
372

371

1

 
For the Year Ended December 31, 2018
Statements of Cash Flows
As Reported
Balances Without Adoption of
ASC 606
Effect of Change
 
(in millions)
Southern Company
 
 
 
Consolidated net income
$
2,300

$
2,299

$
1

Changes in certain current assets and liabilities:
 
 
 
Receivables
(426
)
(472
)
46

Other current assets
(127
)
(81
)
(46
)
Accrued taxes
267

268

(1
)
Other current liabilities
63

61

2

 
 
 
 
Georgia Power
 
 
 
Changes in certain current assets and liabilities:
 
 
 
Receivables
$
8

$
1

$
7

Other current assets
(43
)
(36
)
(7
)
 
 
 
 
Southern Company Gas
 
 
 
Net income
$
372

$
371

$
1

Changes in certain current assets and liabilities:
 
 
 
Accrued taxes
10

11

(1
)
Other current liabilities
(22
)
(24
)
2

 
At December 31, 2018
Balance Sheets
As Reported
Balances Without Adoption of
ASC 606
Effect of Change
 
(in millions)
Southern Company
 
 
 
Unbilled revenues
$
654

$
728

$
(74
)
Other accounts and notes receivable
813

814

(1
)
Other current assets
162

87

75

Accrued taxes
656

655

1

Other current liabilities
852

854

(2
)
Total Stockholders' Equity
29,039

29,038

1

 
 
 
 
Georgia Power
 
 
 
Unbilled revenues
$
208

$
243

$
(35
)
Other accounts and notes receivable
80

81

(1
)
Other current assets
70

34

36

 
 
 
 
Southern Company Gas
 
 
 
Accrued income taxes
$
66

$
65

$
1

Other current liabilities
130

132

(2
)
Common Stockholder's Equity
8,570

8,569

1
Schedule of costs for affiliate transactions
Transportation costs under these agreements in 2018, 2017, and 2016 were as follows:
 
Alabama
Power
Georgia
Power
Southern
Power
Southern Company Gas
 
(in millions)
2018
$
8

$
101

$
25

$
32

2017
9

102

25

32

2016(*)
2

35

7

15

(*)
Represents costs incurred for the period subsequent to Southern Company Gas' investment in SNG.
On November 16, 2018, SNG completed its purchase of Georgia Power's natural gas lateral pipeline serving Plant McDonough Units 4 through 6 at net book value, as approved by the Georgia PSC on January 16, 2018. SNG expects to pay $142 million to Georgia Power in the first quarter 2020. During the interim period, Georgia Power will receive a discounted shipping rate to reflect the delayed consideration. Southern Company Gas' portion of the expected capital expenditures for the purchase of this pipeline and additional construction is $122 million.
SCS, as agent for the traditional electric operating companies and Southern Power, has agreements with certain subsidiaries of Southern Company Gas to purchase natural gas. Natural gas purchases made under these agreements were immaterial for Alabama Power and Mississippi Power and as follows for Georgia Power and Southern Power in 2018, 2017, and 2016:
 
Georgia
Power
Southern
Power
 
(in millions)
2018
$
21

$
119

2017
22

119

2016(*)
10

17

(*)
Represents costs incurred for the period subsequent to Southern Company's acquisition of Southern Company Gas.
Mississippi Power's and Southern Power's total power purchased from affiliates through the power pool is included in purchased power on their respective statements of income and was as follows:
 
Mississippi
Power
Southern
Power
 
(in millions)
2018
$
15

$
41

2017
16

27

2016
29

21

Costs for these services from SCS in 2018, 2017, and 2016 were as follows:
 
Alabama
Power
Georgia
Power
Mississippi
Power
Southern
Power(a)
Southern Company Gas(b)
 
(in millions)
2018
$
508

$
653

$
104

$
98

$
194

2017
479

625

140

218

63

2016
460

606

231

193

17

(a)
Prior to December 2017, Southern Power had no employees but was billed for employee-related costs from SCS.
(b)
Southern Company Gas' 2016 costs represent services provided subsequent to the Merger.
The approximate rates for 2018, 2017, and 2016 are as follows:
 
2018
2017
2016
 
(percent)
Alabama Power
3.0
%
2.9
%
3.0
%
Georgia Power
2.6
%
2.7
%
2.8
%
Mississippi Power(*)
4.1
%
3.7
%
4.2
%
Southern Company Gas
2.9
%
2.9
%
2.8
%
(*)
Mississippi Power's decrease in 2017 is primarily the result of recording a loss on its lignite mine in June 2017.
Schedule of concentration of revenue
The following table shows the percentage of total revenues for Southern Power's top three customers for each of the years presented:
 
2018
2017
2016
Georgia Power
9.8
%
11.3
%
16.5
%
Duke Energy Corporation
6.8
%
6.7
%
7.8
%
Southern California Edison
6.2
%
N/A

N/A

Morgan Stanley Capital Group
N/A

4.5
%
N/A

San Diego Gas & Electric Company
N/A

N/A

5.7
%
Schedule of total AFUDC and interest capitalized
Total AFUDC and interest capitalized for the registrants in 2018, 2017, and 2016 was as follows:
 
Southern Company
Alabama
Power
Georgia
Power(a)
Mississippi
Power(b)
Southern
Power
 
(in millions)
2018
$
210

$
84

$
94

$
—

$
17

2017
249

54

63

72

11

2016
327

39

68

124

44

(a)
See Note 2 under "Georgia Power – Nuclear Construction" for information on the inclusion of a portion of construction costs related to Plant Vogtle Units 3 and 4 in Georgia Power's rate base.
(b)
Mississippi Power's decrease in 2017 resulted from the Kemper IGCC project suspension in June 2017.
 
Successor
 
 
Predecessor
 
Year Ended December 31, 2018
Year Ended December 31, 2017
July 1, 2016
through
December 31, 2016
 
 
January 1, 2016 through
June 30, 2016
 
(in millions)
 
 
(in millions)
Southern Company Gas
$
14

$
19

$
6

 
 
$
4
Schedule of average AFUDC composite rates
The average AFUDC composite rates for 2018, 2017, and 2016 for the traditional electric operating companies and Southern Company Gas were as follows:
 
Alabama
Power
Georgia
Power
Mississippi
Power
2018
8.3
%
7.3
%
3.3
%
2017
8.3
%
5.6
%
6.7
%
2016
8.2
%
6.9
%
6.5
%
 
Successor
 
 
Predecessor
 
Year Ended December 31, 2018
Year Ended December 31, 2017
July 1, 2016
through
December 31, 2016
 
 
January 1, 2016 through
June 30, 2016
Southern Company Gas:
 
 
 
 
 
 
Atlanta Gas Light(a)
7.9
%
8.1
%
4.1
%
 
 
4.1
%
Chattanooga Gas(a)
7.4
%
7.4
%
3.7
%
 
 
3.7
%
Nicor Gas(b)
2.1
%
1.2
%
1.5
%
 
 
1.5
%
(a)
Fixed rates authorized by the Georgia PSC and Tennessee Public Utilities Commission for Atlanta Gas Light and Chattanooga Gas, respectively.
(b)
Variable rate determined by the FERC method of AFUDC accounting.
Schedule of goodwill balances
The following table presents 2018 changes in goodwill balances for Southern Company and Southern Company Gas:
 
Southern Company
 
Southern Company Gas
 
 
Gas Distribution Operations
Gas Marketing Services
 
(in millions)
Balance at December 31, 2017
$
6,268

 
$
4,702

$
1,265

Impairment(a)
(42
)
 
—

(42
)
Dispositions(b)
(910
)
 
(668
)
(242
)
Balance at December 31, 2018
$
5,315

(c) 
$
4,034

$
981

(a)
On April 11, 2018, Southern Company Gas entered into a stock purchase agreement for the sale of Pivotal Home Solutions. In contemplation of this transaction and based on the purchase price, a goodwill impairment charge of $42 million was recorded in the first quarter 2018. See Note 15 under "Southern Company Gas" for additional information.
(b)
Gas distribution operations reflects goodwill allocated to Elizabethtown Gas, Elkton Gas, and Florida City Gas, which were sold during the third quarter 2018. Gas marketing services reflects goodwill associated with Pivotal Home Solutions, which was sold on June 4, 2018. See Note 15 under "Southern Company Gas" for additional information.
(c)
Total does not add due to rounding.
Schedule of intangible assets subject to amortization
At December 31, 2018 and 2017, other intangible assets were as follows:
 
At December 31, 2018
 
At December 31, 2017
 
Gross Carrying Amount
Accumulated Amortization
Other
Intangible Assets, Net
 
Gross Carrying Amount
Accumulated Amortization
Other
Intangible Assets, Net
 
(in millions)
 
(in millions)
Southern Company
 
 
 
 
 
 
 
Other intangible assets subject to amortization:
 
 
 
 
 
 
 
Customer relationships(a)
$
223

$
(94
)
$
129

 
$
288

$
(83
)
$
205

Trade names(a)
70

(21
)
49

 
159

(17
)
142

Storage and transportation contracts
64

(54
)
10

 
64

(34
)
30

PPA fair value adjustments(b)
405

(61
)
344

 
456

(47
)
409

Other
11

(5
)
6

 
17

(5
)
12

Total other intangible assets subject to amortization
$
773

$
(235
)
$
538


$
984

$
(186
)
$
798

Other intangible assets not subject to amortization:
 
 
 
 
 
 
 
Federal Communications Commission licenses
75

—

75

 
75

—

75

Total other intangible assets
$
848

$
(235
)
$
613


$
1,059

$
(186
)
$
873

 
 
 
 
 
 
 
 
Southern Power
 
 
 
 
 
 
 
Other intangible assets subject to amortization:
 
 
 
 
 
 
 
PPA fair value adjustments(b)
$
405

$
(61
)
$
344

 
$
456

$
(47
)
$
409

 
 
 
 
 
 
 
 
Southern Company Gas
 
 
 
 
 
 
 
Other intangible assets subject to amortization:
 
 
 
 
 
 
 
Gas marketing services(a)
 
 
 
 
 
 
 
Customer relationships
$
156

$
(84
)
$
72

 
$
221

$
(77
)
$
144

Trade names
26

(7
)
19

 
115

(9
)
106

Wholesale gas services
 
 
 
 
 
 
 
Storage and transportation contracts
64

(54
)
10

 
64

(34
)
30

Total other intangible assets subject to amortization
$
246

$
(145
)
$
101

 
$
400

$
(120
)
$
280

(a)
Balances as of December 31, 2018 reflect the sale of Pivotal Home Solutions. See Note 15 under "Southern Company Gas – Sale of Pivotal Home Solutions" for additional information.
(b)
Balances as of December 31, 2018 exclude Plant Mankato-related intangible assets that were reclassified as assets held for sale. See Note 15 under "Southern Power – Sales of Natural Gas Plants" for additional information.
Schedule of intangible assets not subject to amortization
At December 31, 2018 and 2017, other intangible assets were as follows:
 
At December 31, 2018
 
At December 31, 2017
 
Gross Carrying Amount
Accumulated Amortization
Other
Intangible Assets, Net
 
Gross Carrying Amount
Accumulated Amortization
Other
Intangible Assets, Net
 
(in millions)
 
(in millions)
Southern Company
 
 
 
 
 
 
 
Other intangible assets subject to amortization:
 
 
 
 
 
 
 
Customer relationships(a)
$
223

$
(94
)
$
129

 
$
288

$
(83
)
$
205

Trade names(a)
70

(21
)
49

 
159

(17
)
142

Storage and transportation contracts
64

(54
)
10

 
64

(34
)
30

PPA fair value adjustments(b)
405

(61
)
344

 
456

(47
)
409

Other
11

(5
)
6

 
17

(5
)
12

Total other intangible assets subject to amortization
$
773

$
(235
)
$
538


$
984

$
(186
)
$
798

Other intangible assets not subject to amortization:
 
 
 
 
 
 
 
Federal Communications Commission licenses
75

—

75

 
75

—

75

Total other intangible assets
$
848

$
(235
)
$
613


$
1,059

$
(186
)
$
873

 
 
 
 
 
 
 
 
Southern Power
 
 
 
 
 
 
 
Other intangible assets subject to amortization:
 
 
 
 
 
 
 
PPA fair value adjustments(b)
$
405

$
(61
)
$
344

 
$
456

$
(47
)
$
409

 
 
 
 
 
 
 
 
Southern Company Gas
 
 
 
 
 
 
 
Other intangible assets subject to amortization:
 
 
 
 
 
 
 
Gas marketing services(a)
 
 
 
 
 
 
 
Customer relationships
$
156

$
(84
)
$
72

 
$
221

$
(77
)
$
144

Trade names
26

(7
)
19

 
115

(9
)
106

Wholesale gas services
 
 
 
 
 
 
 
Storage and transportation contracts
64

(54
)
10

 
64

(34
)
30

Total other intangible assets subject to amortization
$
246

$
(145
)
$
101

 
$
400

$
(120
)
$
280

(a)
Balances as of December 31, 2018 reflect the sale of Pivotal Home Solutions. See Note 15 under "Southern Company Gas – Sale of Pivotal Home Solutions" for additional information.
(b)
Balances as of December 31, 2018 exclude Plant Mankato-related intangible assets that were reclassified as assets held for sale. See Note 15 under "Southern Power – Sales of Natural Gas Plants" for additional information.
Schedule of amortization associated with other intangible assets
Amortization associated with other intangible assets in 2018, 2017, and 2016 was as follows:
 
2018
2017
2016
 
(in millions)
Southern Company
$
89

$
124

$
50

Southern Power
$
25

$
25

$
10

 
Successor
 
 
Predecessor
 
Year Ended December 31, 2018
Year Ended December 31, 2017
July 1, 2016
through
December 31, 2016
 
 
January 1, 2016 through
June 30, 2016
 
(in millions)
 
 
(in millions)
Southern Company Gas:
 
 
 
 
 
 
Wholesale gas services(a)
$
20

$
32

$
2

 
 
$
—

Gas marketing services(b)
32

54

32

 
 
8

(a)
Recorded as a reduction to operating revenues.
(b)
Included in depreciation and amortization.
Schedule of amortization of other intangible assets
At December 31, 2018, the estimated amortization associated with other intangible assets for the next five years is as follows:
 
2019
2020
2021
2022
2023
 
(in millions)
Southern Company(*)
$
61

$
50

$
43

$
39

$
38

Southern Power(*)
20

20

20

20

20

Southern Company Gas
29

19

13

10

9

(*)
Excludes amounts related to held for sale assets. See Note 15 under "Southern Power – Sales of Natural Gas Plants" for additional information.
Reconciliation of cash, and cash equivalents
The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets that total to the amounts shown in the statements of cash flows for the registrants that had restricted cash at December 31, 2018 and/or 2017:
 
Southern
Company
Georgia
Power
Southern
Company Gas
 
(in millions)
At December 31, 2018
 
 
 
Cash and cash equivalents
$
1,396

$
4

$
64

Cash and cash equivalents classified as assets held for sale
9

—

—

Restricted cash:






Restricted cash
—

108

—

Other accounts and notes receivable
114

—

6

Total cash, cash equivalents, and restricted cash
$
1,519

$
112

$
70

 
Southern
Company
Southern
Power
Southern
Company Gas
 
(in millions)
At December 31, 2017
 
 
 
Cash and cash equivalents
$
2,130

$
129

$
73

Restricted cash:
 
 
 
Other accounts and notes receivable
5

—

5

Deferred charges and other assets
12

11

—

Total cash, cash equivalents, and restricted cash
$
2,147

$
140

$
78
Reconciliation of restricted cash and cash equivalents
The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets that total to the amounts shown in the statements of cash flows for the registrants that had restricted cash at December 31, 2018 and/or 2017:
 
Southern
Company
Georgia
Power
Southern
Company Gas
 
(in millions)
At December 31, 2018
 
 
 
Cash and cash equivalents
$
1,396

$
4

$
64

Cash and cash equivalents classified as assets held for sale
9

—

—

Restricted cash:






Restricted cash
—

108

—

Other accounts and notes receivable
114

—

6

Total cash, cash equivalents, and restricted cash
$
1,519

$
112

$
70

 
Southern
Company
Southern
Power
Southern
Company Gas
 
(in millions)
At December 31, 2017
 
 
 
Cash and cash equivalents
$
2,130

$
129

$
73

Restricted cash:
 
 
 
Other accounts and notes receivable
5

—

5

Deferred charges and other assets
12

11

—

Total cash, cash equivalents, and restricted cash
$
2,147

$
140

$
78
Schedule of storm damage reserves
In accordance with their respective state PSC orders, the traditional electric operating companies accrued the following amounts related to storm damage reserves in 2018, 2017, and 2016:
 
Southern
Company(*)
Alabama
Power
Georgia
Power
Mississippi
Power
 
(in millions)
2018
$
74

$
16

$
30

$
1

2017
41

4

30

3

2016
40

3

30

4

(*)
Includes accruals at Gulf Power of $26.9 million in 2018 and $3.5 million in each of 2017 and 2016. See Note 15 under "Southern Company's Sale of Gulf Power" for information regarding the sale of Gulf Power.
Schedule of net investment in domestic and international leveraged leases
Southern Company's net investment in domestic and international leveraged leases consists of the following at December 31:
 
2018
 
2017
 
(in millions)
Net rentals receivable
$
1,563

 
$
1,498

Unearned income
(765
)
 
(723
)
Investment in leveraged leases
798

 
775

Deferred taxes from leveraged leases
(255
)
 
(252
)
Net investment in leveraged leases
$
543

 
$
523
Summary of the components of income from leveraged leases
A summary of the components of income from the leveraged leases follows:
 
2018
 
2017
 
2016
 
(in millions)
Pretax leveraged lease income
$
25

 
$
25

 
$
25

Net impact of Tax Reform Legislation
—

 
48

 
—

Income tax expense
(6
)
 
(9
)
 
(9
)
Net leveraged lease income
$
19

 
$
64

 
$
16
Schedule of AOCI (loss) balances, net of tax effects
AOCI (loss) balances, net of tax effects, for Southern Company, Southern Power, and Southern Company Gas were as follows:
 
Qualifying
Hedges
 
Pension and Other
Postretirement
Benefit Plans
 
Accumulated Other
Comprehensive
Income (Loss)
 
(in millions)
Southern Company
 
 
 
 
 
Balance at December 31, 2017
$
(119
)
 
$
(70
)
 
$
(189
)
Adjustment to beginning balance(*)
(26
)
 
(14
)
 
(40
)
Current period change
24

 
2

 
26

Balance at December 31, 2018
$
(121
)
 
$
(82
)
 
$
(203
)
 
 
 
 
 
 
Southern Power
 
 
 
 
 
Balance at December 31, 2017
$
25

 
$
(27
)
 
$
(2
)
Adjustment to beginning balance(*)
4

 
—

 
4

Current period change
7

 
7

 
14

Balance at December 31, 2018
$
36

 
$
(20
)
 
$
16

 
 
 
 
 
 
Southern Company Gas
 
 
 
 
 
Balance at December 31, 2017
$
(6
)
 
$
26

 
$
20

Adjustment to beginning balance(*)
(1
)
 
5

 
4

Current period change
4

 
(2
)
 
2

Balance at December 31, 2018
$
(3
)
 
$
29

 
$
26

(*)
Reflects the reclassification related to stranded tax effects resulting from the Tax Reform Legislation as allowed by ASU 2018-02. See "Recently Adopted Accounting Standards – Other" herein for additional information.