VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

VALUATION AND QUALIFYING ACCOUNTS

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017

(Stated in Millions of Dollars)

			Additions
Description	Balance at Beginning of Period		Charged to Income			Charged to Other Accounts			Deductions		Reclassified to Held for Sale(c)		Balance at End of Period
Provision for uncollectible accounts(a)
2019	$	50	$	68		$	—		$	69	$	—	$	49
2018	44		69			(1		)	61		1		50
2017	43		56			—			55		—		44
Tax valuation allowance (net state)(b)
2019	$	100	$	13		$	—		$	—	$	—	$	113
2018	148		(38		)	—			10		—		100
2017	22		126			—			—		—		148

(a) Deductions represent write-offs of accounts considered to be uncollectible, less recoveries of amounts previously written off.

(b) In 2017, Mississippi Power established a valuation allowance for the State of Mississippi net operating loss carryforward expected to expire prior to being fully utilized. This valuation allowance was reduced in 2018 as a result of higher projected state taxable income. In 2018, Georgia Power established a valuation allowance for certain Georgia state tax credits expected to expire prior to being fully utilized, as a result of lower projected state taxable income. See Note 10 to the financial statements in Item 8 herein for additional information.

(c)

Represents provision for uncollectible accounts at Gulf Power presented on Southern Company's balance sheet at December 31, 2018 as assets held for sale, current. See Note 15 to the financial statements under "Southern Company" and "Assets Held for Sale" in Item 8 herein for additional information.

ALABAMA POWER COMPANY

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017

(Stated in Millions of Dollars)

			Additions
Description	Balance at Beginning of Period		Charged to Income		Charged to Other Accounts		Deductions(*)		Balance at End of Period
Provision for uncollectible accounts
2019	$	10	$	24	$	—	$	12	$	22
2018	9		13		—		12		10
2017	10		10		—		11		9

(*)

Deductions represent write-offs of accounts considered to be uncollectible, less recoveries of amounts previously written off.

GEORGIA POWER COMPANY

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017

(Stated in Millions of Dollars)

			Additions
Description	Balance at Beginning of Period		Charged to Income			Charged to Other Accounts		Deductions		Balance at End of Period
Provision for uncollectible accounts(a)
2019	$	2	$	13		$	—	$	13	$	2
2018	3		11			—		12		2
2017	3		11			—		11		3
Tax valuation allowance (net state)(b)
2019	$	33	$	(5	)	$	—	$	—	$	28
2018	—		39			—		6		33
2017	—		—			—		—		—

(a) Deductions represent write-offs of accounts considered to be uncollectible, less recoveries of amounts previously written off.

(b)

In 2018, Georgia Power established a valuation allowance for certain Georgia state tax credits expected to expire prior to being fully utilized, which was reduced in 2019 as a result of higher projected state taxable income. See Note 10 to the financial statements in Item 8 herein for additional information.

MISSISSIPPI POWER COMPANY

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017

(Stated in Millions of Dollars)

			Additions
Description	Balance at Beginning of Period		Charged to Income			Charged to Other Accounts		Deductions		Balance at End of Period
Provision for uncollectible accounts(a)
2019	$	1	$	2		$	—	$	2	$	1
2018	1		1			—		1		1
2017	—		2			—		1		1
Tax valuation allowance (net state)(b)
2019	$	32	$	—		$	—	$	—	$	32
2018	124		(92		)	—		—		32
2017	—		124			—		—		124

(a) Deductions represent write-offs of accounts considered to be uncollectible, less recoveries of amounts previously written off.

(b)

In 2017, Mississippi Power established a valuation allowance for the State of Mississippi net operating loss carryforward expected to expire prior to being fully utilized, which was reduced in 2018 as a result of higher projected state taxable income. See Note 10 to the financial statements in Item 8 herein for additional information.

SOUTHERN POWER COMPANY AND SUBSIDIARY COMPANIES

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017

(Stated in Millions of Dollars)

			Additions
Description	Balance at Beginning of Period		Charged to Income		Charged to Other Accounts		Deductions		Balance at End of Period
Tax valuation allowance (net state)
2019	$	22	$	7	$	—	$	—	$	29
2018	10		12		—		—		22
2017	—		10		—		—		10

SOUTHERN COMPANY GAS AND SUBSIDIARY COMPANIES

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017

(Stated in Millions of Dollars)

			Additions
Description	Balance at Beginning of Period		Charged to Income			Charged to Other Accounts			Deductions		Balance at End of Period
Provision for uncollectible accounts(a)
2019	$	30	$	29		$	—		$	41	$	18
2018	28		33			(1		)	30		30
2017	27		28			—			27		28
Tax valuation allowance (net state)(b)
2019	$	12	$	(8	)	$	—		$	—	$	4
2018	11		1			—			—		12
2017	19		—			—			8		11

(a) Deductions represent write-offs of accounts considered to be uncollectible, less recoveries of amounts previously written off.

(b)

In 2019, Southern Company Gas reversed a $13 million valuation allowance for a federal deferred tax asset in connection with the sale of Triton. Additionally, in 2019, a $5 million valuation allowance was established for a state net operating loss carryforward expected to expire prior to being fully utilized. See Note 10 to the financial statements and Note 15 to the financial statements under "Southern Company Gas" in Item 8 herein for additional information.