Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Assets and Liabilities Measured at Fair Value

At March 31, 2022, 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:
At March 31, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Southern Company
Assets:
Energy-related derivatives(a)	$	74	$	473	$	—	$	—	$	547
Interest rate derivatives	—		17		—		—		17

Investments in trusts:(b)(c)
Domestic equity	754		202		—		—		956
Foreign equity	143		167		—		—		310
U.S. Treasury and government agency securities	—		290		—		—		290
Municipal bonds	—		53		—		—		53
Pooled funds – fixed income	—		10		—		—		10
Corporate bonds	1		490		—		—		491
Mortgage and asset backed securities	—		88		—		—		88
Private equity	—		—		—		156		156
Cash and cash equivalents	3		—		—		—		3
Other	42		25		—		—		67
Cash equivalents	1,182		17		—		—		1,199
Other investments	9		32		—		—		41
Total	$	2,208	$	1,864	$	—	$	156	$	4,228
Liabilities:
Energy-related derivatives(a)	$	3	$	7	$	—	$	—	$	10
Interest rate derivatives	—		139		—		—		139
Foreign currency derivatives	—		130		—		—		130
Contingent consideration	—		—		14		—		14
Other	—		13		—		—		13
Total	$	3	$	289	$	14	$	—	$	306


	Fair Value Measurements Using:
At March 31, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Alabama Power
Assets:
Energy-related derivatives	$	—	$	128	$	—	$	—	$	128

Nuclear decommissioning trusts:(b)
Domestic equity	452		193		—		—		645
Foreign equity	143		—		—		—		143
U.S. Treasury and government agency securities	—		21		—		—		21
Municipal bonds	—		2		—		—		2
Corporate bonds	1		253		—		—		254
Mortgage and asset backed securities	—		20		—		—		20
Private equity	—		—		—		156		156
Other	14		—		—		—		14
Cash equivalents	1,129		17		—		—		1,146
Other investments	—		32		—		—		32
Total	$	1,739	$	666	$	—	$	156	$	2,561
Liabilities:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2



Georgia Power
Assets:
Energy-related derivatives	$	—	$	179	$	—	$	—	$	179
Interest rate derivatives	—		12		—		—		12
Nuclear decommissioning trusts:(b)(c)
Domestic equity	302		1		—		—		303
Foreign equity	—		165		—		—		165
U.S. Treasury and government agency securities	—		269		—		—		269
Municipal bonds	—		51		—		—		51
Corporate bonds	—		237		—		—		237
Mortgage and asset backed securities	—		68		—		—		68
Other	28		25		—		—		53

Total	$	330	$	1,007	$	—	$	—	$	1,337
Liabilities:
Energy-related derivatives	$	—	$	1	$	—	$	—	$	1


	Fair Value Measurements Using:
At March 31, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value as a Practical Expedient (NAV)		Total
	(in millions)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	138	$	—	$	—	$	138



Liabilities:
Energy-related derivatives	$	—	$	2	$	—	$	—	$	2



Southern Power
Assets:
Energy-related derivatives	$	—	$	8	$	—	$	—	$	8



Liabilities:

Foreign currency derivatives	$	—	$	43	$	—	$	—	$	43
Contingent consideration	—		—		14		—		14
Other	—		13		—		—		13
Total	$	—	$	56	$	14	$	—	$	70

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	74	$	20	$	—	$	—	$	94

Non-qualified deferred compensation trusts:
Domestic equity	—		8		—		—		8
Foreign equity	—		2		—		—		2
Pooled funds – fixed income	—		10		—		—		10
Cash equivalents	3		—		—		—		3


Total	$	77	$	40	$	—	$	—	$	117
Liabilities:
Energy-related derivatives(a)	$	3	$	1	$	—	$	—	$	4
Interest rate derivatives	—		36		—		—		36

Total	$	3	$	37	$	—	$	—	$	40

(a)Excludes cash collateral of $36 million.

(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information.

(c)Includes investment securities pledged to creditors and collateral received and excludes payables related to the securities lending program. At March 31, 2022, approximately $72 million of the fair market value of Georgia Power's nuclear decommissioning trust funds' securities were on loan to creditors under the funds' managers' securities lending program. See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information.

Schedule of Increase (Decrease) In Fair Value Of Funds

The fair value of the funds, including reinvested interest and dividends and excluding the funds' expenses, increased (decreased) by the amounts shown in the table below for the three months ended March 31, 2022 and 2021. The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.


Fair value increases (decreases)	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021
	(in millions)
Southern Company	$	(150)	$	39
Alabama Power	(67)		41
Georgia Power	(83)		(2)

Schedule of Financial Instruments for which Carrying Amount Did Not Equal Fair Value

At March 31, 2022, other financial instruments for which the carrying amount did not equal fair value were as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas(*)
	(in billions)
Long-term debt, including securities due within one year:
Carrying amount	$	51.6	$	9.8	$	13.2	$	1.5	$	3.7	$	6.9
Fair value	51.9		10.0		13.5		1.5		3.8		6.9

(*)The long-term debt of Southern Company Gas is recorded at amortized cost, including the fair value adjustments at the effective date of the 2016 merger with Southern Company. Southern Company Gas amortizes the fair value adjustments over the remaining lives of the respective bonds, the latest being through 2043.