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ASSET RETIREMENT OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Details of AROs included in the balance sheets

Details of the AROs included in the balance sheets are as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power(*)
	(in millions)
Balance at December 31, 2019	$	9,786	$	3,540	$	5,784	$	190	$	89
Liabilities incurred	19		—		10		—		9
Liabilities settled	(442)		(219)		(185)		(22)		—
Accretion	409		152		238		8		4
Cash flow revisions	912		501		418		—		(7)
Balance at December 31, 2020	$	10,684	$	3,974	$	6,265	$	176	$	95
Liabilities incurred	26		—		3		—		23
Liabilities settled	(456)		(202)		(210)		(24)		—
Accretion	407		156		236		7		5
Cash flow revisions	1,026		406		530		31		8
Balance at December 31, 2021	$	11,687	$	4,334	$	6,824	$	190	$	131

(*)Included in other deferred credits and liabilities on Southern Power's consolidated balance sheets.

Investment securities in the Funds

Investment securities in the Funds for December 31, 2021 and 2020 were as follows:


	Southern Company		Alabama Power		Georgia Power
	(in millions)
At December 31, 2021:
Equity securities	$	1,358	$	849	$	509
Debt securities	986		316		670
Other securities	197		159		38
Total investment securities in the Funds	$	2,541	$	1,324	$	1,217

At December 31, 2020:
Equity securities	$	1,339	$	842	$	497
Debt securities	851		231		620
Other securities	111		83		28
Total investment securities in the Funds	$	2,301	$	1,156	$	1,145

Fair value increases (decreases) of the Funds

The fair value increases (decreases) of the Funds, including unrealized gains (losses) and reinvested interest and dividends and excluding the Funds' expenses, for 2021, 2020, and 2019 are shown in the table below.


	Southern Company		Alabama Power		Georgia Power
	(in millions)
Fair value increases
2021	$	274	$	200	$	74
2020	280		142		138
2019	344		194		150

Unrealized gains (losses)
At December 31, 2021	$	(27)	$	(30)	$	3
At December 31, 2020	220		121		99
At December 31, 2019	259		149		110

At December 31, 2021, assets and liabilities measured at fair value on a recurring basis during the period, together with their associated level of the fair value hierarchy, were as follows:


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives(a)	$	24	$	195	$	—	$	—	$	219
Interest rate derivatives	—		19		—		—		19

Investments in trusts:(b)(c)
Domestic equity	791		225		—		—		1,016
Foreign equity	165		188		—		—		353
U.S. Treasury and government agency securities	—		314		—		—		314
Municipal bonds	—		56		—		—		56
Pooled funds – fixed income	—		13		—		—		13
Corporate bonds	1		522		—		—		523
Mortgage and asset backed securities	—		93		—		—		93
Private equity	—		—		—		150		150
Cash and cash equivalents	2		—		—		—		2
Other	22		25		—		—		47
Cash equivalents	1,160		14		—		—		1,174
Other investments	9		35		—		—		44
Total	$	2,174	$	1,699	$	—	$	150	$	4,023
Liabilities:
Energy-related derivatives(a)	$	10	$	36	$	—	$	—	$	46
Interest rate derivatives	—		29		—		—		29
Foreign currency derivatives	—		79		—		—		79
Contingent consideration	—		—		14		—		14
Other	—		13		—		—		13
Total	$	10	$	157	$	14	$	—	$	181


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Alabama Power
Assets:
Energy-related derivatives	$	—	$	55	$	—	$	—	$	55
Nuclear decommissioning trusts:(b)
Domestic equity	468		216		—		—		684
Foreign equity	165		—		—		—		165
U.S. Treasury and government agency securities	—		21		—		—		21
Municipal bonds	—		1		—		—		1
Corporate bonds	1		271		—		—		272
Mortgage and asset backed securities	—		22		—		—		22
Private equity	—		—		—		150		150
Other	9		—		—		—		9
Cash equivalents	839		14		—		—		853
Other investments	—		35		—		—		35
Total	$	1,482	$	635	$	—	$	150	$	2,267
Liabilities:
Energy-related derivatives	$	—	$	11	$	—	$	—	$	11

Georgia Power
Assets:
Energy-related derivatives	$	—	$	75	$	—	$	—	$	75

Nuclear decommissioning trusts:(b)(c)
Domestic equity	323		1		—		—		324
Foreign equity	—		185		—		—		185
U.S. Treasury and government agency securities	—		293		—		—		293
Municipal bonds	—		55		—		—		55
Corporate bonds	—		251		—		—		251
Mortgage and asset backed securities	—		71		—		—		71
Other	13		25		—		—		38

Total	$	336	$	956	$	—	$	—	$	1,292
Liabilities:
Energy-related derivatives	$	—	$	8	$	—	$	—	$	8


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	56	$	—	$	—	$	56

Cash equivalents	40		—		—		—		40
Total	$	40	$	56	$	—	$	—	$	96
Liabilities:
Energy-related derivatives	$	—	$	5	$	—	$	—	$	5

Southern Power
Assets:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4




Liabilities:

Foreign currency derivatives	$	—	$	16	$	—	$	—	$	16
Contingent consideration	—		—		14		—		14
Other	—		13		—		—		13
Total	$	—	$	29	$	14	$	—	$	43

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	24	$	5	$	—	$	—	$	29
Interest rate derivatives	—		6		—		—		6
Non-qualified deferred compensation trusts:
Domestic equity	—		8		—		—		8
Foreign equity	—		3		—		—		3
Pooled funds - fixed income	—		13		—		—		13
Cash equivalents	2		—		—		—		2

Total	$	26	$	35	$	—	$	—	$	61
Liabilities:
Energy-related derivatives(a)(b)	$	10	$	12	$	—	$	—	$	22
Interest rate derivatives	—		5		—		—		5
Total	$	10	$	17	$	—	$	—	$	27

(a)Excludes immaterial cash collateral.

(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 under "Nuclear Decommissioning" for additional information.

(c)Includes investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. See Note 6 under "Nuclear Decommissioning" for additional information.

At December 31, 2020, assets and liabilities measured at fair value on a recurring basis during the period, together with their associated level of the fair value hierarchy, were as follows:


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2020:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives(a)	$	401	$	271	$	32	$	—	$	704
Interest rate derivatives	—		20		—		—		20
Foreign currency derivatives	—		87		—		—		87
Investments in trusts:(b)(c)
Domestic equity	862		151		—		—		1,013
Foreign equity	85		253		—		—		338
U.S. Treasury and government agency securities	—		284		—		—		284
Municipal bonds	—		85		—		—		85
Pooled funds – fixed income	—		17		—		—		17
Corporate bonds	13		386		—		—		399
Mortgage and asset backed securities	—		83		—		—		83
Private equity	—		—		—		76		76
Cash and cash equivalents	1		—		—		—		1
Other	28		7		—		—		35
Cash equivalents	575		9		—		—		584
Other investments	9		24		—		—		33
Total	$	1,974	$	1,677	$	32	$	76	$	3,759
Liabilities:
Energy-related derivatives(a)	$	389	$	204	$	4	$	—	$	597

Foreign currency derivatives	—		23		—		—		23
Contingent consideration	—		—		17		—		17
Total	$	389	$	227	$	21	$	—	$	637


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2020:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Alabama Power
Assets:
Energy-related derivatives	$	—	$	12	$	—	$	—	$	12
Nuclear decommissioning trusts:(b)
Domestic equity	543		141		—		—		684
Foreign equity	85		73		—		—		158
U.S. Treasury and government agency securities	—		21		—		—		21
Municipal bonds	—		1		—		—		1
Corporate bonds	13		167		—		—		180
Mortgage and asset backed securities	—		29		—		—		29
Private equity	—		—		—		76		76
Other	7		—		—		—		7
Cash equivalents	311		9		—		—		320
Other investments	—		24		—		—		24
Total	$	959	$	477	$	—	$	76	$	1,512
Liabilities:

Energy-related derivatives	$	—	$	7	$	—	$	—	$	7

Georgia Power
Assets:
Energy-related derivatives	$	—	$	15	$	—	$	—	$	15

Nuclear decommissioning trusts:(b)(c)
Domestic equity	319		1		—		—		320
Foreign equity	—		177		—		—		177
U.S. Treasury and government agency securities	—		263		—		—		263
Municipal bonds	—		84		—		—		84
Corporate bonds	—		219		—		—		219
Mortgage and asset backed securities	—		54		—		—		54
Other	21		7		—		—		28

Total	$	340	$	820	$	—	$	—	$	1,160
Liabilities:
Energy-related derivatives	$	—	$	13	$	—	$	—	$	13


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
At December 31, 2020:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	9	$	—	$	—	$	9

Cash equivalents	21		—		—		—		21
Total	$	21	$	9	$	—	$	—	$	30
Liabilities:
Energy-related derivatives	$	—	$	9	$	—	$	—	$	9



Southern Power
Assets:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2
Foreign currency derivatives	—		87		—		—		87

Total	$	—	$	89	$	—	$	—	$	89
Liabilities:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3
Foreign currency derivatives	—		23		—		—		23
Contingent consideration	—		—		17		—		17
Total	$	—	$	26	$	17	$	—	$	43

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	401	$	233	$	32	$	—	$	666

Non-qualified deferred compensation trusts:
Domestic equity	—		9		—		—		9
Foreign equity	—		3		—		—		3
Pooled funds - fixed income	—		17		—		—		17

Cash equivalents	1		—		—		—		1
Total	$	402	$	262	$	32	$	—	$	696
Liabilities:
Energy-related derivatives(a)(b)	$	389	$	172	$	4	$	—	$	565

(a)Excludes $6 million associated with premiums and certain weather derivatives accounted for based on intrinsic value rather than fair value and cash collateral of $28 million.

Accumulated provisions for the external decommissioning trust funds

At December 31, 2021 and 2020, the accumulated provisions for the external decommissioning trust funds were as follows:


	2021		2020
	(in millions)
Alabama Power
Plant Farley	$	1,324	$	1,156

Georgia Power
Plant Hatch	$	757	$	716
Plant Vogtle Units 1 and 2	460		429
Total	$	1,217	$	1,145

Estimated costs of decommissioning

The estimated costs of decommissioning at December 31, 2021 based on the most current studies, which were performed in 2018 for Alabama Power and in 2021 for Georgia Power, were as follows:


	Plant Farley		Plant Hatch(*)		Plant Vogtle Units 1 and 2(*)
Decommissioning periods:
Beginning year	2037		2034		2047
Completion year	2076		2075		2079
	(in millions)
Site study costs:
Radiated structures	$	1,234	$	771	$	628
Spent fuel management	387		186		170
Non-radiated structures	99		61		85
Total site study costs	$	1,720	$	1,018	$	883

(*)Based on Georgia Power's ownership interests.