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DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Energy-Related Derivatives
At September 30, 2020, the net volume of energy-related derivative contracts for natural gas positions, together with the longest hedge date over which the respective entity is hedging its exposure to the variability in future cash flows for forecasted transactions and the longest non-hedge date for derivatives not designated as hedges, were as follows:
Net
Purchased
mmBtu		Longest
Hedge
Date		Longest
Non-Hedge
Date
(in millions)
Southern Company(*)
87720242031
Alabama Power782024—
Georgia Power1312023—
Mississippi Power862024—
Southern Power1420222021
Southern Company Gas(*)
56820232031
(*)Southern Company Gas' derivative instruments include both long and short natural gas positions. A long position is a contract to purchase natural gas and a short position is a contract to sell natural gas. Southern Company Gas' volume represents the net of long natural gas positions of 4.6 billion mmBtu and short natural gas positions of 4.1 billion mmBtu as of September 30, 2020, which is also included in Southern Company's total volume.
Schedule of Interest Rate Derivatives
At September 30, 2020, the following interest rate derivatives were outstanding:
Notional
Amount		Interest
Rate
Received		Weighted
Average
Interest
Rate Paid		Hedge
Maturity
Date		Fair Value Gain (Loss) at September 30, 2020
 (in millions)   (in millions)
Cash Flow Hedges of Existing Debt
Mississippi Power$60 1-month LIBOR0.58%December 2021$— 
Fair Value Hedges of Existing Debt
Southern Company parent1,500 2.35%
1-month LIBOR + 0.87%
July 202120 
Southern Company$1,560 $20 
Schedule of Foreign Currency Derivatives
At September 30, 2020, the following foreign currency derivatives were outstanding:
Pay NotionalPay RateReceive NotionalReceive RateHedge
Maturity Date		Fair Value Gain (Loss) at September 30, 2020
(in millions)(in millions) (in millions)
Cash Flow Hedges of Existing Debt
Southern Power$677 2.95%€600 1.00%June 2022$11 
Southern Power564 3.78%500 1.85%June 2026(5)
Total$1,241 €1,100 $6 
Fair Value of Energy-Related Derivatives and Interest Rate Derivatives
The fair value of energy-related derivatives, interest rate derivatives, and foreign currency derivatives was reflected in the balance sheets as follows:
As of September 30, 2020As of December 31, 2019
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Southern Company
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets/Other current liabilities$52 $13 $3 $70 
Other deferred charges and assets/Other deferred credits and liabilities30 15 6 44 
Total derivatives designated as hedging instruments for regulatory purposes$82 $28 $9 $114 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Other current assets/Other current liabilities$8 $3 $1 $6 
Other deferred charges and assets/Other deferred credits and liabilities2 — — — 
Interest rate derivatives:
Other current assets/Other current liabilities19 — 2 23 
Other deferred charges and assets/Other deferred credits and liabilities— — — 1 
Foreign currency derivatives:
Other current assets/Other current liabilities— 23 — 24 
Other deferred charges and assets/Other deferred credits and liabilities29 — 16 — 
Total derivatives designated as hedging instruments in cash flow and fair value hedges$58 $26 $19 $54 
Derivatives not designated as hedging instruments
Energy-related derivatives:
Other current assets/Other current liabilities$392 $428 $461 $358 
Other deferred charges and assets/Other deferred credits and liabilities338 291 207 225 
Total derivatives not designated as hedging instruments$730 $719 $668 $583 
Gross amounts recognized$870 $773 $696 $751 
Gross amounts offset(a)
(636)(706)(463)(562)
Net amounts recognized in the Balance Sheets(b)
$234 $67 $233 $189 
As of September 30, 2020As of December 31, 2019
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Alabama Power
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets/Other current liabilities$14 $2 $2 $14 
Other deferred charges and assets/Other deferred credits and liabilities9 4 2 10 
Total derivatives designated as hedging instruments for regulatory purposes$23 $6 $4 $24 
Gross amounts recognized$23 $6 $4 $24 
Gross amounts offset(5)(5)(2)(2)
Net amounts recognized in the Balance Sheets$18 $1 $2 $22 
Georgia Power
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets/Other current liabilities$18 $3 $1 $32 
Other deferred charges and assets/Other deferred credits and liabilities13 6 3 21 
Total derivatives designated as hedging instruments for regulatory purposes$31 $9 $4 $53 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Interest rate derivatives:
Other current assets/Other current liabilities$— $— $— $17 
Total derivatives designated as hedging instruments in cash flow and fair value hedges$— $— $— $17 
Gross amounts recognized$31 $9 $4 $70 
Gross amounts offset(9)(9)(3)(3)
Net amounts recognized in the Balance Sheets$22 $— $1 $67 
As of September 30, 2020As of December 31, 2019
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Mississippi Power
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Other current assets/Other current liabilities$10 $2 $— $15 
Other deferred charges and assets/Other deferred credits and liabilities8 5 1 12 
Total derivatives designated as hedging instruments for regulatory purposes$18 $7 $1 $27 
Gross amounts recognized$18 $7 $1 $27 
Gross amounts offset(7)(7)(1)(1)
Net amounts recognized in the Balance Sheets$11 $— $— $26 
Southern Power
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Other current assets/Other current liabilities$4 $1 $1 $2 
Other deferred charges and assets/Other deferred credits and liabilities1 — — — 
Foreign currency derivatives:
Other current assets/Other current liabilities— 23 — 24 
Other deferred charges and assets/Other deferred credits and liabilities29 — 16 — 
Total derivatives designated as hedging instruments in cash flow and fair value hedges$34 $24 $17 $26 
Derivatives not designated as hedging instruments
Energy-related derivatives:
Other current assets/Other current liabilities$— $— $2 $1 
Total derivatives not designated as hedging instruments$— $— $2 $1 
Gross amounts recognized$34 $24 $19 $27 
Gross amounts offset(1)(1)— — 
Net amounts recognized in the Balance Sheets$33 $23 $19 $27 
As of September 30, 2020As of December 31, 2019
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)(in millions)
Southern Company Gas
Derivatives designated as hedging instruments for regulatory purposes
Energy-related derivatives:
Assets from risk management activities/Liabilities from risk management activities-current$10 $6 $— $9 
Other deferred charges and assets/Other deferred credits and liabilities— — — 1 
Total derivatives designated as hedging instruments for regulatory purposes$10 $6 $— $10 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Assets from risk management activities/Liabilities from risk management activities-current$4 $2 $— $4 
Other deferred charges and assets/Other deferred credits and liabilities1 — — — 
Interest rate derivatives:
Assets from risk management activities/Liabilities from risk management activities-current— — 2 — 
Total derivatives designated as hedging instruments in cash flow and fair value hedges$5 $2 $2 $4 
Derivatives not designated as hedging instruments
Energy-related derivatives:
Assets from risk management activities/Liabilities from risk management activities-current$392 $428 $459 $357 
Other deferred charges and assets/Other deferred credits and liabilities338 291 207 225 
Total derivatives not designated as hedging instruments$730 $719 $666 $582 
Gross amounts of recognized$745 $727 $668 $596 
Gross amounts offset(a)
(614)(684)(456)(555)
Net amounts recognized in the Balance Sheets(b)
$131 $43 $212 $41 
(a)Gross amounts offset include cash collateral held on deposit in broker margin accounts of $70 million and $99 million as of September 30, 2020 and December 31, 2019, respectively.
(b)Net amounts of derivative instruments outstanding exclude premium and intrinsic value associated with weather derivatives of $3 million and $4 million as of September 30, 2020 and December 31, 2019, respectively.
Pre-tax Effects of Unrealized Derivative Gains (Losses) Arising from Energy-Related Derivative Instruments
At September 30, 2020 and December 31, 2019, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred were as follows:
Regulatory Hedge Unrealized Gain (Loss) Recognized in the Balance Sheet
Derivative Category and Balance Sheet
Location		Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern Company Gas
 (in millions)
At September 30, 2020:
Energy-related derivatives:
Other regulatory assets, current$(5)$— $— $— $(5)
Other regulatory liabilities, current41 12 15 8 6 
Other regulatory liabilities, deferred15 5 7 3 — 
Total energy-related derivative gains (losses)$51 $17 $22 $11 $1 
At December 31, 2019:
Energy-related derivatives:
Other regulatory assets, current$(63)$(14)$(31)$(15)$(3)
Other regulatory assets, deferred(37)(8)(18)(11)— 
Other regulatory liabilities, current6 2 — — 4 
Total energy-related derivative gains (losses)$(94)$(20)$(49)$(26)$1 
Pre-tax Effects of Interest Rate Derivatives, Designated as Cash Flow Hedging Instruments
For the three and nine months ended September 30, 2020 and 2019, the pre-tax effects of cash flow hedge accounting on accumulated OCI were as follows:
Gain (Loss) Recognized in OCI on DerivativeFor the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
(in millions)(in millions)
Southern Company
Energy-related derivatives$9 $(5)$2 $(11)
Interest rate derivatives1 (52)(27)(88)
Foreign currency derivatives54 (68)(10)(107)
Total$64 $(125)$(35)$(206)
Georgia Power
Interest rate derivatives$— $(47)$(3)$(83)
Southern Power
Energy-related derivatives$5 $(3)$2 $(5)
Foreign currency derivatives54 (68)(10)(107)
Total$59 $(71)$(8)$(112)
Southern Company Gas
Energy-related derivatives$4 $(2)$— $(6)
Interest rate derivatives1 (5)(24)(5)
Total$5 $(7)$(24)$(11)
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
For the three and nine months ended September 30, 2020 and 2019, the pre-tax effects of cash flow and fair value hedge accounting on income were as follows:
Location and Amount of Gain (Loss) Recognized in Income on Cash Flow and Fair Value Hedging RelationshipsFor the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
(in millions)(in millions)
Southern Company
Total cost of natural gas$71 $79 $654 $956 
Gain (loss) on energy-related cash flow hedges(a)
— — (8)— 
Total depreciation and amortization889 760 2,619 2,267 
Gain (loss) on energy-related cash flow hedges(a)
(1)(1)(3)(5)
Total interest expense, net of amounts capitalized(443)(434)(1,343)(1,294)
Gain (loss) on interest rate cash flow hedges(a)
(6)(5)(19)(14)
Gain (loss) on foreign currency cash flow hedges(a)
(6)(6)(18)(18)
Gain (loss) on interest rate fair value hedges(b)
(3)10 27 43 
Total other income (expense), net113 61 319 239 
Gain (loss) on foreign currency cash flow hedges(a)(c)
56 (54)52 (62)
Southern Power
Total depreciation and amortization$129 $120 $367 $357 
Gain (loss) on energy-related cash flow hedges(a)
(1)(1)(3)(5)
Total interest expense, net of amounts capitalized(36)(43)(114)(127)
Gain (loss) on foreign currency cash flow hedges(a)
(6)(6)(18)(18)
Total other income (expense), net13 6 19 48 
Gain (loss) on foreign currency cash flow hedges(a)(c)
56 (54)52 (62)
(a)Reclassified from accumulated OCI into earnings.
(b)For fair value hedges, changes in the fair value of the derivative contracts are generally equal to changes in the fair value of the underlying debt and have no material impact on income.
(c)The reclassification from accumulated OCI into other income (expense), net completely offsets currency gains and losses arising from changes in the U.S. currency exchange rates used to record the euro-denominated notes.
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
As of September 30, 2020 and December 31, 2019, the following amounts were recorded on the balance sheets related to cumulative basis adjustments for fair value hedges:
Carrying Amount of the Hedged ItemCumulative Amount of Fair Value Hedging Adjustment included in Carrying Amount of the Hedged Item
Balance Sheet Location of Hedged ItemsAs of September 30, 2020As of December 31, 2019As of September 30, 2020As of December 31, 2019
(in millions)(in millions)
Southern Company
Securities due within one year$(1,513)$(599)$(15)$— 
Long-term debt— (1,494)— 3 
Pre-tax Effect of Interest Rate and Energy Related Derivatives
For the three and nine months ended September 30, 2020 and 2019, the pre-tax effects of energy-related derivatives not designated as hedging instruments on the statements of income of Southern Company and Southern Company Gas were as follows:
Gain (Loss)
Three Months Ended September 30,Nine Months Ended September 30,
Derivatives in Non-Designated Hedging RelationshipsStatements of Income Location2020201920202019
(in millions)(in millions)
Energy-related derivatives:
Natural gas revenues(*)
$(30)$(2)$54 $81 
Cost of natural gas5 2 18 5 
Total derivatives in non-designated hedging relationships$(25)$— $72 $86 
(*)Excludes immaterial gains (losses) recorded in natural gas revenues associated with weather derivatives for all periods presented.