RETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

RETIREMENT BENEFITS

RETIREMENT BENEFITSThe Southern Company system has a qualified defined benefit, trusteed pension plan covering substantially all employees, with the exception of PowerSecure employees. The qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the qualified pension plan were made for the year ended December 31, 2022 and no mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2023. The Southern Company system also provides certain non-qualified defined benefits for a select group of management and highly compensated employees, which are funded on a cash basis. In addition, the Southern Company system provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional electric operating companies fund other postretirement trusts to the extent required by their respective regulatory commissions. Southern Company Gas has a separate unfunded supplemental retirement health care plan that provides medical care and life insurance benefits to employees of discontinued businesses. For the year ending December 31, 2023, no contributions to any other postretirement trusts are expected.

Actuarial Assumptions

The weighted average rates assumed in the actuarial calculations used to determine both the net periodic costs for the pension and other postretirement benefit plans for the following year and the benefit obligations as of the measurement date are presented below.

	2022
Assumptions used to determine net periodic costs:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate – benefit obligations	3.09	%	3.12	%	3.07	%	3.07	%	3.21	%	3.04	%
Discount rate – interest costs	2.55		2.58		2.51		2.54		2.79		2.53
Discount rate – service costs	3.34		3.36		3.37		3.35		3.36		3.21
Expected long-term return on plan assets	8.25		8.25		8.25		8.25		8.25		8.25
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80
Other postretirement benefit plans
Discount rate – benefit obligations	2.90	%	2.95	%	2.87	%	2.88	%	3.07	%	2.82	%
Discount rate – interest costs	2.32		2.38		2.30		2.27		2.55		2.17
Discount rate – service costs	3.26		3.30		3.27		3.26		3.25		3.22
Expected long-term return on plan assets	7.21		7.54		6.88		7.22		—		6.08
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80

	2021
Assumptions used to determine net periodic costs:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate – benefit obligations	2.81	%	2.85	%	2.79	%	2.80	%	2.99	%	2.75	%
Discount rate – interest costs	2.13		2.17		2.09		2.12		2.46		2.10
Discount rate – service costs	3.18		3.23		3.21		3.20		3.22		2.97
Expected long-term return on plan assets	8.25		8.25		8.25		8.25		8.25		8.25
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80
Other postretirement benefit plans
Discount rate – benefit obligations	2.56	%	2.63	%	2.52	%	2.53	%	2.78	%	2.46	%
Discount rate – interest costs	1.84		1.91		1.82		1.78		2.12		1.64
Discount rate – service costs	3.07		3.13		3.08		3.06		3.05		3.01
Expected long-term return on plan assets	7.09		7.18		6.84		6.98		—		6.54
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80

	2020
Assumptions used to determine net periodic costs:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate – benefit obligations	3.41	%	3.44	%	3.40	%	3.41	%	3.52	%	3.39	%
Discount rate – interest costs	2.99		3.01		2.96		2.99		3.18		2.99
Discount rate – service costs	3.66		3.69		3.67		3.67		3.70		3.53
Expected long-term return on plan assets	8.25		8.25		8.25		8.25		8.25		8.25
Annual salary increase	4.73		4.73		4.73		4.73		4.73		4.73
Other postretirement benefit plans
Discount rate – benefit obligations	3.24	%	3.28	%	3.22	%	3.22	%	3.39	%	3.19	%
Discount rate – interest costs	2.80		2.84		2.79		2.76		2.97		2.71
Discount rate – service costs	3.57		3.61		3.57		3.57		3.57		3.52
Expected long-term return on plan assets	7.25		7.36		7.05		7.07		—		6.69
Annual salary increase	4.73		4.73		4.73		4.73		4.73		4.73

	2022
Assumptions used to determine benefit obligations:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate	5.25	%	5.26	%	5.25	%	5.25	%	5.31	%	5.24	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80
Other postretirement benefit plans
Discount rate	5.18	%	5.20	%	5.17	%	5.17	%	5.24	%	5.16	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80

	2021
Assumptions used to determine benefit obligations:	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
Pension plans
Discount rate	3.09	%	3.12	%	3.07	%	3.07	%	3.21	%	3.04	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80
Other postretirement benefit plans
Discount rate	2.90	%	2.95	%	2.87	%	2.88	%	3.07	%	2.82	%
Annual salary increase	4.80		4.80		4.80		4.80		4.80		4.80

The Registrants estimate the expected rate of return on pension plan and other postretirement benefit plan assets using a financial model to project the expected return on each current investment portfolio. The analysis projects an expected rate of return on each of the different asset classes in order to arrive at the expected return on the entire portfolio relying on each trust's target asset allocation and reasonable capital market assumptions. The financial model is based on four key inputs: anticipated returns by asset class (based in part on historical returns), each trust's target asset allocation, an anticipated inflation rate, and the projected impact of a periodic rebalancing of each trust's portfolio. The Registrants set the expected rate of return assumption using an arithmetic mean which represents the expected simple average return to be earned by the pension plan assets over any one year. The Registrants believe the use of the arithmetic mean is more compatible with the expected rate of return's function of estimating a single year's investment return.

An additional assumption used in measuring the accumulated other postretirement benefit obligations (APBO) was a weighted average medical care cost trend rate. The weighted average medical care cost trend rates used in measuring the APBO for the Registrants at December 31, 2022 were as follows:

	Initial Cost Trend Rate		Ultimate Cost Trend Rate		Year That Ultimate Rate is Reached
Pre-65	6.60	%	4.50	%	2030
Post-65 medical	5.50		4.50		2030
Post-65 prescription	7.50		4.50		2031

Pension Plans

The total accumulated benefit obligation for the pension plans at December 31, 2022 and 2021 was as follows:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
December 31, 2022	$	11,422	$	2,601	$	3,534	$	520	$	135	$	801
December 31, 2021	14,687		3,362		4,562		672		178		1,030

Actuarial gains of $3.9 billion and $393 million were recorded for the annual remeasurement of the Southern Company system pension plans at December 31, 2022 and 2021, respectively, primarily due to increases of 216 basis points and 28 basis points, respectively, in the overall discount rate used to calculate the benefit obligation as a result of higher market interest rates.

Changes in the projected benefit obligations and the fair value of plan assets during the plan years ended December 31, 2022 and 2021 were as follows:

	2022
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	16,382	$	3,806	$	5,012	$	743	$	222	$	1,134
Service cost	412		99		103		17		9		34
Interest cost	408		96		123		18		6		28
Benefits paid	(692)		(144)		(226)		(30)		(5)		(75)
Actuarial gain	(3,908)		(951)		(1,161)		(179)		(69)		(253)
Balance at end of year	12,602		2,906		3,851		569		163		868
Change in plan assets
Fair value of plan assets at beginning of year	17,225		4,141		5,415		786		213		1,241
Actual loss on plan assets	(2,376)		(579)		(753)		(110)		(31)		(167)
Employer contributions	61		9		20		3		1		3
Benefits paid	(692)		(144)		(226)		(30)		(5)		(75)
Fair value of plan assets at end of year	14,218		3,427		4,456		649		178		1,002
Accrued asset	$	1,616	$	521	$	605	$	80	$	15	$	134

	2021
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	16,646	$	3,854	$	5,127	$	754	$	217	$	1,189
Service cost	434		102		112		18		10		37
Interest cost	346		82		104		16		5		24
Benefits paid	(651)		(137)		(210)		(28)		(4)		(73)
Actuarial gain	(393)		(95)		(121)		(17)		(6)		(43)
Balance at end of year	16,382		3,806		5,012		743		222		1,134
Change in plan assets
Fair value of plan assets at beginning of year	15,367		3,684		4,844		701		186		1,123
Actual return on plan assets	2,449		586		781		111		30		181
Employer contributions	60		8		—		2		1		10
Benefits paid	(651)		(137)		(210)		(28)		(4)		(73)
Fair value of plan assets at end of year	17,225		4,141		5,415		786		213		1,241
Accrued asset (liability)	$	843	$	335	$	403	$	43	$	(9)	$	107

The projected benefit obligations for the qualified and non-qualified pension plans at December 31, 2022 are shown in the following table. All pension plan assets are related to the qualified pension plan.

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Projected benefit obligations:
Qualified pension plan	$	11,928	$	2,799	$	3,717	$	540	$	140	$	819
Non-qualified pension plan	674		107		134		28		23		49

Amounts recognized in the balance sheets at December 31, 2022 and 2021 related to the Registrants' pension plans consist of the following:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
December 31, 2022:
Prepaid pension costs(a)	$	2,290	$	629	$	738	$	108	$	37	$	183
Other regulatory assets, deferred(b)	2,455		679		887		123		—		111
Other current liabilities	(56)		(10)		(12)		(2)		(2)		(3)
Employee benefit obligations(c)	(618)		(98)		(121)		(26)		(20)		(42)
Other regulatory liabilities, deferred	(85)		—		—		—		—		—
AOCI	24		—		—		—		11		(75)
December 31, 2021:
Prepaid pension costs(a)	$	1,657	$	464	$	563	$	78	$	20	$	175
Other regulatory assets, deferred(b)	2,920		809		971		146		—		91
Other current liabilities	(55)		(9)		(12)		(2)		(2)		(2)
Employee benefit obligations(c)	(759)		(120)		(148)		(33)		(27)		(66)
Other regulatory liabilities, deferred	(119)		—		—		—		—		—
AOCI	100		—		—		—		35		(45)

(a)Included in prepaid pension and other postretirement benefit costs on Alabama Power's balance sheet and other deferred charges and assets on Southern Power's consolidated balance sheet.

(b)Amounts for Southern Company exclude regulatory assets of $190 million and $210 million at December 31, 2022 and 2021, respectively, associated with unamortized amounts in Southern Company Gas' pension plans prior to its acquisition by Southern Company.

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

Presented below are the amounts included in regulatory assets at December 31, 2022 and 2021 related to the portion of the defined benefit pension plan attributable to Southern Company, the traditional electric operating companies, and Southern Company Gas that had not yet been recognized in net periodic pension cost.

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Balance at December 31, 2022
Regulatory assets:
Prior service cost	$	10	$	4	$	7	$	1	$	(9)
Net loss	2,361		675		880		122		66
Regulatory amortization	—		—		—		—		54
Total regulatory assets(*)	$	2,371	$	679	$	887	$	123	$	111
Balance at December 31, 2021
Regulatory assets:
Prior service cost	$	11	$	5	$	8	$	1	$	(11)
Net loss	2,790		804		963		145		38
Regulatory amortization	—		—		—		—		64
Total regulatory assets(*)	$	2,801	$	809	$	971	$	146	$	91

(*)Amounts for Southern Company exclude regulatory assets of $190 million and $210 million at December 31, 2022 and 2021, respectively, associated with unamortized amounts in Southern Company Gas' pension plans prior to its acquisition by Southern Company.

The changes in the balance of regulatory assets related to the portion of the defined benefit pension plan attributable to Southern Company, the traditional electric operating companies, and Southern Company Gas for the years ended December 31, 2022 and 2021 are presented in the following table:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Regulatory assets (liabilities):(*)
Balance at December 31, 2020	$	4,621	$	1,286	$	1,598	$	235	$	205
Net gain	(1,523)		(394)		(527)		(74)		(97)
Reclassification adjustments:
Amortization of prior service costs	(1)		(1)		(1)		—		2
Amortization of net loss	(296)		(82)		(99)		(15)		(9)
Amortization of regulatory assets(*)	—		—		—		—		(10)
Total reclassification adjustments	(297)		(83)		(100)		(15)		(17)
Total change	(1,820)		(477)		(627)		(89)		(114)
Balance at December 31, 2021	$	2,801	$	809	$	971	$	146	$	91
Net (gain) loss	(183)		(67)		(9)		(12)		27
Reclassification adjustments:
Amortization of prior service costs	(1)		(1)		(1)		—		2
Amortization of net gain (loss)	(246)		(62)		(74)		(11)		1
Amortization of regulatory assets(*)	—		—		—		—		(10)
Total reclassification adjustments	(247)		(63)		(75)		(11)		(7)
Total change	(430)		(130)		(84)		(23)		20
Balance at December 31, 2022	$	2,371	$	679	$	887	$	123	$	111

(*)Amounts for Southern Company exclude regulatory assets of $190 million and $210 million at December 31, 2022 and 2021, respectively, associated with unamortized amounts in Southern Company Gas' pension plans prior to its acquisition by Southern Company.

Presented below are the amounts included in AOCI at December 31, 2022 and 2021 related to the portion of the defined benefit pension plan attributable to Southern Company, Southern Power, and Southern Company Gas that had not yet been recognized in net periodic pension cost.

	Southern Company		Southern Power		Southern Company Gas
	(in millions)
Balance at December 31, 2022
AOCI:
Prior service cost	$	(2)	$	—	$	(3)
Net (gain) loss	26		11		(72)
Total AOCI	$	24	$	11	$	(75)
Balance at December 31, 2021
AOCI:
Prior service cost	$	(2)	$	—	$	(3)
Net (gain) loss	102		35		(42)
Total AOCI	$	100	$	35	$	(45)

The components of OCI related to the portion of the defined benefit pension plan attributable to Southern Company, Southern Power, and Southern Company Gas for the years ended December 31, 2022 and 2021 are presented in the following table:

	Southern Company		Southern Power		Southern Company Gas
	(in millions)
AOCI:
Balance at December 31, 2020	$	245	$	60	$	1
Net gain	(128)		(22)		(47)
Reclassification adjustments:
Amortization of net gain (loss)	(17)		(3)		1
Total change	(145)		(25)		(46)
Balance at December 31, 2021	$	100	$	35	$	(45)
Net gain	(82)		(22)		(30)
Reclassification adjustments:
Amortization of net gain (loss)	6		(2)		—
Total reclassification adjustments	6		(2)		—
Total change	(76)		(24)		(30)
Balance at December 31, 2022	$	24	$	11	$	(75)

Components of net periodic pension cost for the Registrants were as follows:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2022
Service cost	$	412	$	99	$	103	$	17	$	9	$	34
Interest cost	408		96		123		18		6		28
Expected return on plan assets	(1,265)		(306)		(399)		(57)		(15)		(91)
Recognized net loss	240		62		75		11		2		8
Net amortization	—		1		1		—		—		15
Prior service cost	—		—		—		—		—		(3)
Net periodic pension cost (income)	$	(205)	$	(48)	$	(97)	$	(11)	$	2	$	(9)
2021
Service cost	$	434	$	102	$	112	$	18	$	10	$	37
Interest cost	346		82		104		16		5		24
Expected return on plan assets	(1,191)		(287)		(375)		(55)		(14)		(86)
Recognized net loss	314		82		100		15		3		13
Net amortization	1		1		1		—		—		15
Prior service cost	—		—		—		—		—		(3)
Net periodic pension cost (income)	$	(96)	$	(20)	$	(58)	$	(6)	$	4	$	—
2020
Service cost	$	376	$	89	$	96	$	15	$	8	$	33
Interest cost	432		100		133		20		6		31
Expected return on plan assets	(1,100)		(264)		(347)		(51)		(13)		(75)
Recognized net loss	269		71		86		13		2		6
Net amortization	1		1		1		—		—		15
Prior service cost	—		—		—		—		—		(3)
Net periodic pension cost (income)	$	(22)	$	(3)	$	(31)	$	(3)	$	3	$	7

The service cost component of net periodic pension cost is included in operations and maintenance expenses and all other components of net periodic pension cost are included in other income (expense), net in the Registrants' statements of income.

Net periodic pension cost is the sum of service cost, interest cost, and other costs netted against the expected return on plan assets. The expected return on plan assets is determined by multiplying the expected rate of return on plan assets and the market-related value of plan assets. In determining the market-related value of plan assets, the Registrants have elected to amortize changes in the market value of return-seeking plan assets over five years and to recognize the changes in the market value of liability-hedging plan assets immediately. Given the significant concentration in return-seeking plan assets, the accounting value of plan assets that is used to calculate the expected return on plan assets differs from the current fair value of the plan assets.

Future benefit payments reflect expected future service and are estimated based on assumptions used to measure the projected benefit obligation for the pension plans. At December 31, 2022, estimated benefit payments were as follows:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Benefit Payments:
2023	$	734	$	155	$	230	$	32	$	6	$	83
2024	735		160		236		33		7		57
2025	760		167		243		34		7		58
2026	784		173		248		35		7		60
2027	806		178		252		36		8		61
2028 to 2032	4,262		952		1,304		192		43		323

Other Postretirement Benefits

Changes in the APBO and the fair value of the Registrants' plan assets during the plan years ended December 31, 2022 and 2021 were as follows:

	2022
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	1,849	$	440	$	656	$	76	$	11	$	237
Service cost	23		6		6		1		—		1
Interest cost	42		10		15		2		—		5
Benefits paid	(109)		(23)		(38)		(4)		(1)		(18)
Actuarial gain	(365)		(89)		(125)		(16)		(1)		(46)
Retiree drug subsidy	1		—		—		—		—		—
Balance at end of year	1,441		344		514		59		9		179
Change in plan assets
Fair value of plan assets at beginning of year	1,251		489		450		29		—		143
Actual loss on plan assets	(218)		(98)		(71)		(4)		—		(25)
Employer contributions	73		4		27		3		1		13
Benefits paid	(108)		(23)		(38)		(4)		(1)		(18)
Fair value of plan assets at end of year	998		372		368		24		—		113
Accrued asset (liability)	$	(443)	$	28	$	(146)	$	(35)	$	(9)	$	(66)

	2021
	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	1,948	$	463	$	699	$	81	$	12	$	248
Service cost	24		6		7		1		—		2
Interest cost	35		9		12		1		—		4
Benefits paid	(105)		(22)		(36)		(5)		—		(18)
Actuarial (gain) loss	(54)		(16)		(26)		(2)		(1)		1
Retiree drug subsidy	1		—		—		—		—		—
Balance at end of year	1,849		440		656		76		11		237
Change in plan assets
Fair value of plan assets at beginning of year	1,158		458		427		27		—		128
Actual return on plan assets	154		55		55		4		—		18
Employer contributions	43		(2)		4		3		—		15
Benefits paid	(104)		(22)		(36)		(5)		—		(18)
Fair value of plan assets at end of year	1,251		489		450		29		—		143
Accrued asset (liability)	$	(598)	$	49	$	(206)	$	(47)	$	(11)	$	(94)

Amounts recognized in the balance sheets at December 31, 2022 and 2021 related to the Registrants' other postretirement benefit plans consist of the following:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
December 31, 2022:
Prepaid other postretirement benefit costs(a)	$	—	$	28	$	—	$	—	$	—	$	—
Other regulatory assets, deferred(b)	34		—		19		—		—		—
Other current liabilities	(6)		—		—		—		(1)		—
Employee benefit obligations(c)	(437)		—		(146)		(35)		(8)		(66)
Other regulatory liabilities, deferred	(170)		(21)		(58)		(9)		—		(58)
AOCI	(4)		—		—		—		—		(2)
December 31, 2021:
Prepaid other postretirement benefit costs(a)	$	—	$	49	$	—	$	—	$	—	$	—
Other regulatory assets, deferred(b)	97		—		30		2		—		—
Other current liabilities	(5)		—		—		—		—		—
Employee benefit obligations(c)	(593)		—		(206)		(47)		(11)		(94)
Other regulatory liabilities, deferred	(171)		(62)		(40)		(1)		—		(34)
AOCI	—		—		—		—		2		(5)

(a)Included in prepaid pension and other postretirement benefit costs on Alabama Power's balance sheet.

(b)Amounts for Southern Company exclude regulatory assets of $32 million and $40 million at December 31, 2022 and 2021, respectively, associated with unamortized amounts in Southern Company Gas' other postretirement benefit plans prior to its acquisition by Southern Company.

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

Presented below are the amounts included in net regulatory assets (liabilities) at December 31, 2022 and 2021 related to the other postretirement benefit plans of Southern Company, the traditional electric operating companies, and Southern Company Gas that had not yet been recognized in net periodic other postretirement benefit cost.

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Balance at December 31, 2022:
Regulatory assets (liabilities):
Prior service cost	$	14	$	4	$	6	$	1	$	1
Net gain	(150)		(25)		(45)		(10)		(64)
Regulatory amortization	—		—		—		—		5
Total regulatory assets (liabilities)(*)	$	(136)	$	(21)	$	(39)	$	(9)	$	(58)
Balance at December 31, 2021:
Regulatory assets (liabilities):
Prior service cost	$	13	$	3	$	5	$	1	$	1
Net gain	(87)		(65)		(15)		—		(51)
Regulatory amortization	—		—		—		—		16
Total regulatory assets (liabilities)(*)	$	(74)	$	(62)	$	(10)	$	1	$	(34)

(*)Amounts for Southern Company exclude regulatory assets of $32 million and $40 million at December 31, 2022 and 2021, respectively, associated with unamortized amounts in Southern Company Gas' other postretirement benefit plans prior to its acquisition by Southern Company.

The changes in the balance of net regulatory assets (liabilities) related to the other postretirement benefit plans for the plan years ended December 31, 2022 and 2021 are presented in the following table:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Company Gas
	(in millions)
Net regulatory assets (liabilities):(*)
Balance at December 31, 2020	$	51	$	(21)	$	47	$	5	$	(23)
Net gain	(120)		(41)		(55)		(4)		(2)
Reclassification adjustments:
Amortization of prior service costs	1		—		1		—		—
Amortization of net loss	(6)		—		(3)		—		—
Amortization of regulatory assets(*)	—		—		—		—		(9)
Total reclassification adjustments	(5)		—		(2)		—		(9)
Total change	(125)		(41)		(57)		(4)		(11)
Balance at December 31, 2021	$	(74)	$	(62)	$	(10)	$	1	$	(34)
Net (gain) loss	(64)		41		(27)		(10)		(13)
Reclassification adjustments:
Amortization of prior service costs	1		—		—		—		—
Amortization of net gain (loss)	1		—		(2)		—		—
Amortization of regulatory assets(*)	—		—		—		—		(11)
Total reclassification adjustments	2		—		(2)		—		(11)
Total change	(62)		41		(29)		(10)		(24)
Balance at December 31, 2022	$	(136)	$	(21)	$	(39)	$	(9)	$	(58)

(*)Amounts for Southern Company exclude regulatory assets of $32 million and $40 million at December 31, 2022 and 2021, respectively, associated with unamortized amounts in Southern Company Gas' other postretirement benefit plans prior to its acquisition by Southern Company.

Presented below are the amounts included in AOCI at December 31, 2022 and 2021 related to the other postretirement benefit plans of Southern Company, Southern Power, and Southern Company Gas that had not yet been recognized in net periodic other postretirement benefit cost.

	Southern Company		Southern Power		Southern Company Gas
	(in millions)
Balance at December 31, 2022
AOCI:
Prior service cost	$	1	$	—	$	—
Net (gain) loss	(5)		—		(2)
Total AOCI	$	(4)	$	—	$	(2)
Balance at December 31, 2021
AOCI:
Prior service cost	$	1	$	—	$	1
Net (gain) loss	(1)		2		(6)
Total AOCI	$	—	$	2	$	(5)

The components of OCI related to the other postretirement benefit plans for the plan years ended December 31, 2022 and 2021 are presented in the following table:

	Southern Company		Southern Power		Southern Company Gas
	(in millions)
AOCI:
Balance at December 31, 2020	$	8	$	3	$	—
Net gain	(11)		(1)		—
Reclassification adjustments:
Amortization of net gain (loss)	3		—		(5)
Total change	(8)		(1)		(5)
Balance at December 31, 2021	$	—	$	2	$	(5)
Net gain	(3)		(2)		—
Reclassification adjustments:
Amortization of net gain (loss)	(1)		—		3
Total change	(4)		(2)		3
Balance at December 31, 2022	$	(4)	$	—	$	(2)

Components of the other postretirement benefit plans' net periodic cost for the Registrants were as follows:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2022
Service cost	$	23	$	6	$	6	$	1	$	—	$	1
Interest cost	42		10		15		2		—		5
Expected return on plan assets	(80)		(32)		(28)		(2)		1		(9)
Net amortization	(1)		—		2		—		—		6
Net periodic postretirement benefit cost (income)	$	(16)	$	(16)	$	(5)	$	1	$	1	$	3
2021
Service cost	$	24	$	6	$	7	$	1	$	—	$	2
Interest cost	35		9		12		1		—		4
Expected return on plan assets	(76)		(30)		(26)		(1)		1		(10)
Net amortization	2		—		2		—		—		6
Net periodic postretirement benefit cost (income)	$	(15)	$	(15)	$	(5)	$	1	$	1	$	2
2020
Service cost	$	22	$	6	$	6	$	1	$	1	$	2
Interest cost	54		13		20		2		—		7
Expected return on plan assets	(72)		(29)		(26)		(1)		—		(10)
Net amortization	1		—		2		—		—		6
Net periodic postretirement benefit cost (income)	$	5	$	(10)	$	2	$	2	$	1	$	5

The service cost component of net periodic postretirement benefit cost is included in operations and maintenance expenses and all other components of net periodic postretirement benefit cost are included in other income (expense), net in the Registrants' statements of income.

The Registrants' future benefit payments, including prescription drug benefits, are provided in the table below. These amounts reflect expected future service and are estimated based on assumptions used to measure the APBO for the other postretirement benefit plans.

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Benefit payments:
2023	$	115	$	25	$	41	$	5	$	1	$	18
2024	110		24		39		5		1		17
2025	114		26		41		5		1		17
2026	113		26		41		5		1		16
2027	113		26		41		5		1		16
2028 to 2032	551		130		199		22		1		68

Benefit Plan Assets

Pension plan and other postretirement benefit plan assets are managed and invested in accordance with all applicable requirements, including ERISA and the Internal Revenue Code. The Registrants' investment policies for both the pension plans and the other postretirement benefit plans cover a diversified mix of assets as described below. Derivative instruments may be used to gain efficient exposure to the various asset classes and as hedging tools. Additionally, the Registrants minimize the risk of large losses primarily through diversification but also monitor and manage other aspects of risk.

The investment strategy for plan assets related to the Southern Company system's qualified pension plan is to be broadly diversified across major asset classes. The asset allocation is established after consideration of various factors that affect the assets and liabilities of the pension plan including, but not limited to, historical and expected returns and interest rates, volatility, correlations of asset classes, the current level of assets and liabilities, and the assumed growth in assets and liabilities. Because a significant portion of the liability of the pension plan is long-term in nature, the assets are invested consistent with long-term investment expectations for return and risk. To manage the actual asset class exposures relative to the target asset allocation, the Southern Company system employs a formal rebalancing program. As additional risk management, external investment managers and service providers are subject to written guidelines to ensure appropriate and prudent investment practices. Management believes the portfolio is well-diversified with no significant concentrations of risk.

Southern Company's investment strategy also includes adjusting the established asset allocation to invest a larger portion of the portfolio in fixed rate debt securities should the qualified pension plan achieve a predetermined funding threshold, which occurred during 2022.

Investment Strategies and Benefit Plan Asset Fair Values

A description of the major asset classes that the pension and other postretirement benefit plans are comprised of, along with the valuation methods used for fair value measurement, is provided below:

Description	Valuation Methodology
Domestic equity: A mix of large and small capitalization stocks with generally an equal distribution of value and growth attributes, managed both actively and through passive index approaches. International equity: A mix of large and small capitalization growth and value stocks with developed and emerging markets exposure, managed both actively and through fundamental indexing approaches.	Domestic and international equities such as common stocks, American depositary receipts, and real estate investment trusts that trade on public exchanges are classified as Level 1 investments and are valued at the closing price in the active market. Equity funds with unpublished prices that are comprised of publicly traded securities (such as commingled/pooled funds) are also valued at the closing price in the active market, but are classified as Level 2.
Fixed income: A mix of domestic and international bonds.	Investments in fixed income securities, including fixed income pooled funds, are generally classified as Level 2 investments and are valued based on prices reported in the market place. Additionally, the value of fixed income securities takes into consideration certain items such as broker quotes, spreads, yield curves, interest rates, and discount rates that apply to the term of a specific instrument.
Trust-owned life insurance (TOLI): Investments of taxable trusts aimed at minimizing the impact of taxes on the portfolio.	Investments in TOLI policies are classified as Level 2 investments and are valued based on the underlying investments held in the policy's separate accounts. The underlying assets are equity and fixed income pooled funds that are comprised of Level 1 and Level 2 securities.
Real estate: Investments in traditional private market, equity-oriented investments in real properties (indirectly through pooled funds or partnerships) and in publicly traded real estate securities. Special situations: Investments in opportunistic strategies with the objective of diversifying and enhancing returns and exploiting short-term inefficiencies, as well as investments in promising new strategies of a longer-term nature. Private equity: Investments in private partnerships that invest in private or public securities typically through privately-negotiated and/or structured transactions, including leveraged buyouts, venture capital, and distressed debt.	Investments in real estate, special situations, and private equity are generally classified as Net Asset Value as a Practical Expedient, since the underlying assets typically do not have publicly available observable inputs. The fund manager values the assets using various inputs and techniques depending on the nature of the underlying investments. Techniques may include purchase multiples for comparable transactions, comparable public company trading multiples, discounted cash flow analysis, prevailing market capitalization rates, recent sales of comparable investments, and independent third-party appraisals. The fair value of partnerships is determined by aggregating the value of the underlying assets less liabilities.

For purposes of determining the fair value of the pension plan and other postretirement benefit plan assets and the appropriate level designation, management relies on information provided by the plan's trustee. This information is reviewed and evaluated by management with changes made to the trustee information as appropriate. The fair values presented herein exclude cash, receivables related to investment income and pending investment sales, and payables related to pending investment purchases.

The fair values, and actual allocations relative to the target allocations, of the Southern Company system's pension plans at December 31, 2022 and 2021 are presented below.

	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				Target Allocation		Actual Allocation
At December 31, 2022:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Equity:											45	%	43	%
Domestic equity	$	2,078	$	691	$	—	$	—	$	2,769
International equity	2,166		1,090		—		—		3,256
Fixed income:											30		28
U.S. Treasury, government, and agency bonds	—		1,469		—		—		1,469
Mortgage- and asset-backed securities	—		29		—		—		29
Corporate bonds	—		1,494		—		—		1,494
Pooled funds	—		607		—		—		607
Cash equivalents and other	399		7		—		—		406
Real estate investments	376		—		—		1,887		2,263		13		15
Special situations	—		—		—		187		187		3		2
Private equity	—		—		—		1,717		1,717		9		12
Total	$	5,019	$	5,387	$	—	$	3,791	$	14,197	100	%	100	%
Liabilities:
Derivatives	(4)		—		—		—		(4)
Total	$	5,015	$	5,387	$	—	$	3,791	$	14,193	100	%	100	%

	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				Target Allocation		Actual Allocation
At December 31, 2022:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Alabama Power
Assets:
Equity:											45	%	43	%
Domestic equity	$	500	$	167	$	—	$	—	$	667
International equity	522		263		—		—		785
Fixed income:											30		28
U.S. Treasury, government, and agency bonds	—		354		—		—		354
Mortgage- and asset-backed securities	—		7		—		—		7
Corporate bonds	—		360		—		—		360
Pooled funds	—		146		—		—		146
Cash equivalents and other	96		2		—		—		98
Real estate investments	91		—		—		455		546		13		15
Special situations	—		—		—		45		45		3		2
Private equity	—		—		—		414		414		9		12
Total	$	1,209	$	1,299	$	—	$	914	$	3,422	100	%	100	%
Liabilities:
Derivatives	(1)		—		—		—		(1)
Total	$	1,208	$	1,299	$	—	$	914	$	3,421	100	%	100	%
Georgia Power
Assets:
Equity:											45	%	43	%
Domestic equity	$	651	$	217	$	—	$	—	$	868
International equity	678		342		—		—		1,020
Fixed income:											30		28
U.S. Treasury, government, and agency bonds	—		460		—		—		460
Mortgage- and asset-backed securities	—		9		—		—		9
Corporate bonds	—		468		—		—		468
Pooled funds	—		190		—		—		190
Cash equivalents and other	125		2		—		—		127
Real estate investments	118		—		—		591		709		13		15
Special situations	—		—		—		59		59		3		2
Private equity	—		—		—		538		538		9		12
Total	$	1,572	$	1,688	$	—	$	1,188	$	4,448	100	%	100	%
Liabilities:
Derivatives	(1)		—		—		—		(1)
Total	$	1,571	$	1,688	$	—	$	1,188	$	4,447	100	%	100	%

	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				Target Allocation		Actual Allocation
At December 31, 2022:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Mississippi Power
Assets:
Equity:											45	%	43	%
Domestic equity	$	95	$	32	$	—	$	—	$	127
International equity	99		50		—		—		149
Fixed income:											30		28
U.S. Treasury, government, and agency bonds	—		67		—		—		67
Mortgage- and asset-backed securities	—		1		—		—		1
Corporate bonds	—		68		—		—		68
Pooled funds	—		28		—		—		28
Cash equivalents and other	18		—		—		—		18
Real estate investments	17		—		—		86		103		13		15
Special situations	—		—		—		9		9		3		2
Private equity	—		—		—		78		78		9		12
Total	$	229	$	246	$	—	$	173	$	648	100	%	100	%
Southern Power
Assets:
Equity:											45	%	43	%
Domestic equity	$	25	$	9	$	—	$	—	$	34
International equity	27		14		—		—		41
Fixed income:											30		28
U.S. Treasury, government, and agency bonds	—		18		—		—		18
Corporate bonds	—		19		—		—		19
Pooled funds	—		8		—		—		8
Cash equivalents and other	5		—		—		—		5
Real estate investments	5		—		—		24		29		13		15
Special situations	—		—		—		2		2		3		2
Private equity	—		—		—		21		21		9		12
Total	$	62	$	68	$	—	$	47	$	177	100%		100	%

	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				Target Allocation		Actual Allocation
At December 31, 2022:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company Gas
Assets:
Equity:											45	%	43	%
Domestic equity	$	146	$	49	$	—	$	—	$	195
International equity	152		77		—		—		229
Fixed income:											30		28
U.S. Treasury, government, and agency bonds	—		104		—		—		104
Mortgage- and asset-backed securities	—		2		—		—		2
Corporate bonds	—		105		—		—		105
Pooled funds	—		43		—		—		43
Cash equivalents and other	28		1		—		—		29
Real estate investments	27		—		—		133		160		13		15
Special situations	—		—		—		13		13		3		2
Private equity	—		—		—		121		121		9		12
Total	$	353	$	381	$	—	$	267	$	1,001	100	%	100	%

	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				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Equity:											51	%	53	%
Domestic equity	$	3,095	$	1,326	$	—	$	—	$	4,421
International equity	2,740		1,402		3		—		4,145
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		1,209		—		—		1,209
Mortgage- and asset-backed securities	—		10		—		—		10
Corporate bonds	—		1,752		—		—		1,752
Pooled funds	—		771		—		—		771
Cash equivalents and other	405		7		—		—		412
Real estate investments	706		—		—		2,038		2,744		14		15
Special situations	—		—		—		171		171		3		1
Private equity	—		—		—		1,590		1,590		9		9
Total	$	6,946	$	6,477	$	3	$	3,799	$	17,225	100	%	100	%
Alabama Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	743	$	319	$	—	$	—	$	1,062
International equity	659		337		1		—		997
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		291		—		—		291
Mortgage- and asset-backed securities	—		2		—		—		2
Corporate bonds	—		421		—		—		421
Pooled funds	—		186		—		—		186
Cash equivalents and other	97		2		—		—		99
Real estate investments	170		—		—		490		660		14		15
Special situations	—		—		—		41		41		3		1
Private equity	—		—		—		382		382		9		9
Total	$	1,669	$	1,558	$	1	$	913	$	4,141	100	%	100	%

	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				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Georgia Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	972	$	417	$	—	$	—	$	1,389
International equity	861		441		1		—		1,303
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		380		—		—		380
Mortgage- and asset-backed securities	—		3		—		—		3
Corporate bonds	—		551		—		—		551
Pooled funds	—		243		—		—		243
Cash equivalents and other	127		2		—		—		129
Real estate investments	222		—		—		641		863		14		15
Special situations	—		—		—		54		54		3		1
Private equity	—		—		—		500		500		9		9
Total	$	2,182	$	2,037	$	1	$	1,195	$	5,415	100	%	100	%
Mississippi Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	142	$	61	$	—	$	—	$	203
International equity	126		64		—		—		190
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		55		—		—		55
Corporate bonds	—		80		—		—		80
Pooled funds	—		35		—		—		35
Cash equivalents and other	18		—		—		—		18
Real estate investments	32		—		—		93		125		14		15
Special situations	—		—		—		8		8		3		1
Private equity	—		—		—		73		73		9		9
Total	$	318	$	295	$	—	$	174	$	787	100	%	100	%

	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				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Southern Power
Assets:
Equity:											51	%	53	%
Domestic equity	$	38	$	16	$	—	$	—	$	54
International equity	34		17		—		—		51
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		15		—		—		15
Corporate bonds	—		22		—		—		22
Pooled funds	—		10		—		—		10
Cash equivalents and other	5		—		—		—		5
Real estate investments	9		—		—		25		34		14		15
Special situations	—		—		—		2		2		3		1
Private equity	—		—		—		20		20		9		9
Total	$	86	$	80	$	—	$	47	$	213	100	%	100	%
Southern Company Gas
Assets:
Equity:											51	%	53	%
Domestic equity	$	223	$	96	$	—	$	—	$	319
International equity	197		101		—		—		298
Fixed income:											23		22
U.S. Treasury, government, and agency bonds	—		87		—		—		87
Mortgage- and asset-backed securities	—		1		—		—		1
Corporate bonds	—		126		—		—		126
Pooled funds	—		56		—		—		56
Cash equivalents and other	29		—		—		—		29
Real estate investments	51		—		—		147		198		14		15
Special situations	—		—		—		12		12		3		1
Private equity	—		—		—		115		115		9		9
Total	$	500	$	467	$	—	$	274	$	1,241	100	%	100	%

The fair values, and actual allocations relative to the target allocations, of the applicable Registrants' other postretirement benefit plan assets at December 31, 2022 and 2021 are presented below.

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient		Total		Target Allocation		Actual Allocation
At December 31, 2022:	(Level 1)		(Level 2)		(NAV)
	(in millions)
Southern Company
Assets:
Equity:									61	%	59	%
Domestic equity	$	85	$	74	$	—	$	159
International equity	58		79		—		137
Fixed income:									30		28
U.S. Treasury, government, and agency bonds	—		43		—		43
Mortgage- and asset-backed securities	—		1		—		1
Corporate bonds	—		40		—		40
Pooled funds	—		79		—		79
Cash equivalents and other	19		—		—		19
Trust-owned life insurance	—		406		—		406
Real estate investments	11		—		51		62		5		7
Special situations	—		—		6		6		1		1
Private equity	—		—		46		46		3		5
Total	$	173	$	722	$	103	$	998	100	%	100	%
Alabama Power
Assets:
Equity:									69	%	65	%
Domestic equity	$	17	$	6	$	—	$	23
International equity	18		9		—		27
Fixed income:									23		23
U.S. Treasury, government, and agency bonds	—		12		—		12
Corporate bonds	—		12		—		12
Pooled funds	—		7		—		7
Cash equivalents and other	3		—		—		3
Trust-owned life insurance	—		252		—		252
Real estate investments	3		—		16		19		4		7
Special situations	—		—		2		2		1		1
Private equity	—		—		14		14		3		4
Total	$	41	$	298	$	32	$	371	100	%	100	%

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient		Total		Target Allocation		Actual Allocation
At December 31, 2022:	(Level 1)		(Level 2)		(NAV)
	(in millions)
Georgia Power
Assets:
Equity:									58	%	56	%
Domestic equity	$	46	$	6	$	—	$	52
International equity	17		39		—		56
Fixed income:									35		34
U.S. Treasury, government, and agency bonds	—		10		—		10
Corporate bonds	—		12		—		12
Pooled funds	—		40		—		40
Cash equivalents and other	9		—		—		9
Trust-owned life insurance	—		154		—		154
Real estate investments	4		—		15		19		4		5
Special situations	—		—		2		2		1		1
Private equity	—		—		14		14		2		4
Total	$	76	$	261	$	31	$	368	100	%	100	%
Mississippi Power
Assets:
Equity:									37	%	35	%
Domestic equity	$	3	$	1	$	—	$	4
International equity	3		2		—		5
Fixed income:									43		41
U.S. Treasury, government, and agency bonds	—		4		—		4
Corporate bonds	—		2		—		2
Pooled funds	—		1		—		1
Cash equivalents and other	2		—		—		2
Real estate investments	1		—		3		4		11		12
Special situations	—		—		—		—		2		2
Private equity	—		—		2		2		7		10
Total	$	9	$	10	$	5	$	24	100	%	100	%

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient		Total		Target Allocation		Actual Allocation
At December 31, 2022:	(Level 1)		(Level 2)		(NAV)
	(in millions)
Southern Company Gas
Assets:
Equity:									72	%	70	%
Domestic equity	$	2	$	56	$	—	$	58
International equity	2		20		—		22
Fixed income:									26		27
U.S. Treasury, government, and agency bonds	—		1		—		1
Corporate bonds	—		1		—		1
Pooled funds	—		27		—		27
Cash equivalents and other	1		—		—		1
Real estate investments	—		—		2		2		1		2
Private equity	—		—		1		1		1		1
Total	$	5	$	105	$	3	$	113	100	%	100	%

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Southern Company
Assets:
Equity:									64	%	66	%
Domestic equity	$	123	$	112	$	—	$	235
International equity	73		99		—		172
Fixed income:									27		25
U.S. Treasury, government, and agency bonds	—		37		—		37
Corporate bonds	—		50		—		50
Pooled funds	—		90		—		90
Cash equivalents and other	14		—		—		14
Trust-owned life insurance	—		530		—		530
Real estate investments	20		—		54		74		5		6
Special situations	—		—		5		5		1		—
Private equity	—		—		42		42		3		3
Total	$	230	$	918	$	101	$	1,249	100	%	100	%
Alabama Power
Assets:
Equity:									71	%	69	%
Domestic equity	$	26	$	11	$	—	$	37
International equity	23		12		—		35
Fixed income:									21		21
U.S. Treasury, government, and agency bonds	—		10		—		10
Corporate bonds	—		18		—		18
Pooled funds	—		6		—		6
Cash equivalents and other	3		—		—		3
Trust-owned life insurance	—		341		—		341
Real estate investments	6		—		17		23		4		7
Special situations	—		—		2		2		1		—
Private equity	—		—		13		13		3		3
Total	$	58	$	398	$	32	$	488	100	%	100	%

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Georgia Power
Assets:
Equity:									60	%	62	%
Domestic equity	$	65	$	13	$	—	$	78
International equity	22		50		—		72
Fixed income:									33		30
U.S. Treasury, government, and agency bonds	—		9		—		9
Corporate bonds	—		14		—		14
Pooled funds	—		46		—		46
Cash equivalents and other	5		—		—		5
Trust-owned life insurance	—		189		—		189
Real estate investments	7		—		16		23		4		5
Special situations	—		—		1		1		1		—
Private equity	—		—		13		13		2		3
Total	$	99	$	321	$	30	$	450	100	%	100	%
Mississippi Power
Assets:
Equity:									43	%	44	%
Domestic equity	$	4	$	2	$	—	$	6
International equity	4		2		—		6
Fixed income:									36		34
U.S. Treasury, government, and agency bonds	—		5		—		5
Corporate bonds	—		2		—		2
Pooled funds	—		1		—		1
Cash equivalents and other	1		—		—		1
Real estate investments	1		—		3		4		11		13
Special situations	—		—		—		—		2		1
Private equity	—		—		2		2		8		8
Total	$	10	$	12	$	5	$	27	100	%	100	%

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Net Asset Value as a Practical Expedient				Target Allocation		Actual Allocation
At December 31, 2021:	(Level 1)		(Level 2)		(NAV)		Total
	(in millions)
Southern Company Gas
Assets:
Equity:									72	%	73	%
Domestic equity	$	3	$	76	$	—	$	79
International equity	2		24		—		26
Fixed income:									26		24
U.S. Treasury, government, and agency bonds	—		1		—		1
Corporate bonds	—		1		—		1
Pooled funds	—		30		—		30
Cash equivalents and other	2		—		—		2
Real estate investments	1		—		2		3		1		2
Private equity	—		—		1		1		1		1
Total	$	8	$	132	$	3	$	143	100	%	100	%

Employee Savings Plan

Southern Company and its subsidiaries also sponsor 401(k) defined contribution plans covering substantially all employees and provide matching contributions up to specified percentages of an employee's eligible pay. Total matching contributions made to the plans for 2022, 2021, and 2020 were as follows:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2022	$	124	$	26	$	29	$	5	$	3	$	17
2021	119		26		28		5		2		16
2020	120		26		29		5		2		16