VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2021

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

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019


			Additions
Description	Balance at Beginning of Period		Charged to Income		Charged to Other Accounts		Deductions(a)		Balance at End of Period
	(in millions)
Provision for uncollectible accounts:

Southern Company(b)
2021	$	118	$	51	$	(23)	$	68	$	78
2020	49		78		27		36		118
2019	50		68		—		69		49

Alabama Power
2021	$	43	$	(7)	$	—	$	22	$	14
2020	22		25		—		4		43
2019	10		24		—		12		22

Georgia Power(b)
2021	$	26	$	16	$	(23)	$	17	$	2
2020	2		14		23		13		26
2019	2		13		—		13		2

Mississippi Power
2021	$	1	$	1	$	—	$	1	$	1
2020	1		1		—		1		1
2019	1		2		—		2		1

Southern Power
2021	$	—	$	5	$	—	$	—	$	5
2020	—		—		—		—		—
2019	—		—		—		—		—

Southern Company Gas
2021	$	40	$	26	$	—	$	27	$	39
2020	18		35		4		17		40
2019	30		29		—		41		18

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

(b)During 2020, Georgia Power recorded $23 million of expected bad debt related to the COVID-19 pandemic to a regulatory asset in accordance with orders from the Georgia PSC. During 2021, based on a review of bad debt amounts under a Georgia PSC-approved methodology, Georgia Power reversed substantially all of the amount recorded in 2020. See Note 2 to the financial statements under "Georgia Power – Deferral of Incremental COVID-19 Costs" in Item 8 herein for additional information.

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (CONTINUED)

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019


			Additions
Description	Balance at Beginning of Period		Charged to Income		Charged to Other Accounts		Deductions		Balance at End of Period
	(in millions)
Tax valuation allowance (net state):

Southern Company(a)(b)(c)
2021	$	112	$	57	$	—	$	—	$	169
2020	113		—		—		1		112
2019	100		13		—		—		113

Georgia Power(a)
2021	$	28	$	30	$	—	$	—	$	58
2020	28		—		—		—		28
2019	33		(5)		—		—		28

Mississippi Power(b)
2021	$	32	$	—	$	—	$	—	$	32
2020	32		—		—		—		32
2019	32		—		—		—		32

Southern Power
2021	$	27	$	(6)	$	—	$	—	$	21
2020	29		(1)		—		1		27
2019	22		7		—		—		29

Southern Company Gas(c)
2021	$	4	$	3	$	—	$	—	$	7
2020	4		—		—		—		4
2019	12		(8)		—		—		4

(a)In 2018, Georgia Power established a valuation allowance for certain Georgia state tax credits expected to expire prior to being fully utilized, which has been adjusted in subsequent years as a result of changes in projected state taxable income.

(b)Associated with a State of Mississippi net operating loss carryforward expected to expire prior to being fully utilized.

(c)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 15 to the financial statements under "Southern Company Gas" in Item 8 herein for additional information.

See Note 10 to the financial statements in Item 8 herein for additional information.