ACQUISITIONS AND DISPOSITIONS (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of business acquisitions, by acquisition

During 2019, Southern Power acquired a controlling interest in the fuel cell generation facility listed below and acquired the Skookumchuck wind facility discussed under "Construction Projects" below.

Project Facility	Resource	Seller	Approximate Nameplate Capacity (MW)	Location	Southern Power Ownership Percentage	COD	PPA Remaining Period
DSGP(a)	Fuel Cell	Bloom Energy	28	Delaware	100% of Class B	N/A(b)	15 years

(a) During 2019, Southern Power made a total investment of approximately $167 million in DSGP and now holds a controlling interest and consolidates 100% of DSGP's operating results. Southern Power records net income attributable to noncontrolling interests for approximately 10 MWs of the facility.

(b)

Southern Power's 18-MW share of the facility was repowered between June and August 2019. In December 2019, a Class C member joined the existing partnership between the Class A member and Southern Power and made an investment to repower the remaining 10 MWs. In connection with the Class C member joining the partnership, the original fuel cells (before repower), which had a carrying value of approximately $55 million, were distributed to the Class A member in a non-cash transaction that was excluded from the statements of cash flows.

Acquisitions During 2018

During 2018, Southern Power acquired and completed the project below and acquired the Wildhorse Mountain and Reading wind facilities discussed under "Construction Projects" below.

Project Facility	Resource	Seller	Approximate Nameplate Capacity (MW)	Location	Southern Power Ownership Percentage		COD	PPA Contract Period
Gaskell West 1	Solar	Recurrent Energy Development Holdings, LLC	20	Kern County, CA	100% of Class B	(*)	March 2018	20 years

(*)

Southern Power owns 100% of the Class B membership interests under a tax equity partnership.

Schedule of construction projects

During 2019, Southern Power completed construction of and placed in service the 385-MW Plant Mankato expansion and the Wildhorse Mountain facility, acquired and continued construction of the Skookumchuck facility, and continued construction of the Reading facility. Total aggregate construction costs, excluding acquisition costs, are expected to be between $490 million and $535 million for the two facilities under construction. At December 31, 2019, total costs of construction incurred for the two facilities under construction were $417 million and are included in CWIP. The ultimate outcome of these matters cannot be determined at this time.

Project Facility	Resource	Approximate Nameplate Capacity (MW)	Location	Actual/Expected COD	PPA Contract Period
Projects Completed During the Year Ended December 31, 2019
Mankato expansion(a)	Natural Gas	385	Mankato, MN	May 2019	20 years
Wildhorse Mountain(b)	Wind	100	Pushmataha County, OK	December 2019	20 years
Projects Under Construction at December 31, 2019
Reading(c)	Wind	200	Osage and Lyon Counties, KS	Second quarter 2020	12 years
Skookumchuck(d)	Wind	136	Lewis and Thurston Counties, WA	Second quarter 2020	20 years

(a) Southern Power completed the sale of its equity interests in Plant Mankato, including the expansion, to a subsidiary of Xcel on January 17, 2020. The expansion unit started providing energy under a PPA with Northern States Power on June 1, 2019. See "Sales of Natural Gas and Biomass Plants" below and "Assets Held for Sale" herein for additional information.

(b) In May 2018, Southern Power purchased 100% of the membership interests of the Wildhorse Mountain facility. In December 2019, Southern Power entered into a tax equity partnership and, as a result, owns 100% of the Class B membership interests.

(c) In August 2018, Southern Power purchased 100% of the membership interests of the Reading facility pursuant to a joint development arrangement. Southern Power may enter into a tax equity partnership, in which case it would then own 100% of the Class B membership interests. The ultimate outcome of this matter cannot be determined at this time.

(d)

Disposal groups, including discontinued operations

The following table provides the major classes of assets and liabilities classified as held for sale for Southern Company, Southern Power, and Southern Company Gas at December 31, 2019 and/or 2018:

	Southern Company				Southern Power				Southern Company Gas
	At December 31,				At December 31,				At December 31,
	2019		2018		2019		2018		2019
	(in millions)				(in millions)				(in millions)
Assets Held for Sale:
Current assets	$	19	$	393	$	17	$	8	$	2
Total property, plant, and equipment	565		4,583		547		536		18
Goodwill and other intangible assets	40		40		40		40		—
Equity investments in unconsolidated subsidiaries	151		—		—		—		151
Other non-current assets	14		727		14		—		—
Total Assets Held for Sale	$	789	$	5,743	$	618	$	584	$	171
Liabilities Held for Sale:
Current liabilities	$	5	$	425	$	3	$	15	$	2
Long-term debt	—		1,286		—		—		—
Accumulated deferred income taxes	—		618		—		—		—
Other non-current liabilities	—		932		—		—		—
Total Liabilities Held for Sale	$	5	$	3,261	$	3	$	15	$	2

Gulf Power and Southern Power's Florida Plants, Plant Nacogdoches, and Plant Mankato represented individually significant components of Southern Company and Southern Power, respectively; therefore, pre-tax income for these components for the years ended December 31, 2019, 2018, and 2017 are presented below:

	2019		2018		2017
	(in millions)
Earnings before income taxes:(a)
Gulf Power	N/A		$	140	$	229
Southern Power's Florida Plants(b)	N/A		$	49	$	37
Southern Power's Plant Nacogdoches(c)	$	13	$	27	$	25
Southern Power's Plant Mankato	$	29	N/M		N/M

N/M - Not material

(a) Earnings before income taxes for Southern Power's components reflect the cessation of depreciation and amortization on the long-lived assets being sold upon classification as held for sale.

(b) Earnings before income taxes for the Florida Plants in 2018 represents the period from January 1, 2018 to December 4, 2018 (the divestiture date).

(c)

Earnings before income taxes for Plant Nacogdoches in 2019 represents January 1, 2019 through June 13, 2019 (the divestiture date)