XML 77 R49.htm IDEA: XBRL DOCUMENT
v3.24.3

Introduction | 9 Months Ended
--- | ---
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Introduction | INTRODUCTION The condensed quarterly financial statements of each Registrant included herein have been prepared by such Registrant, without audit, pursuant to the rules and regulations of the SEC. The Condensed Balance Sheets at December 31, 2023 have been derived from the audited financial statements of each Registrant. In the opinion of each Registrant's management, the information regarding such Registrant furnished herein reflects all adjustments, which, except as otherwise disclosed, are of a normal recurring nature, necessary to present fairly the results of operations for the periods ended September 30, 2024 and 2023. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although each Registrant believes that the disclosures regarding such Registrant are adequate to make the information presented not misleading. Disclosures which would substantially duplicate the disclosures in the Form 10-K and details which have not changed significantly in amount or composition since the filing of the Form 10-K are generally omitted from this Quarterly Report on Form 10-Q unless specifically required by GAAP. Therefore, these Condensed Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K. Due to the seasonal variations in the demand for energy and other factors, operating results for the periods presented are not necessarily indicative of the operating results to be expected for the full year. Certain prior year data presented in the financial statements have been reclassified to conform to the current year presentation. These reclassifications had no impact on the overall results of operations, financial position, or cash flows of any Registrant. Impairment of Long-Lived Assets See Note 1 to the financial statements under "Impairment of Long-Lived Assets" in Item 8 of the Form 10-K for additional information. In the third quarter 2024, Alabama Power discontinued the development of a multi-use commercial facility. Given the decision to discontinue commercial development, Alabama Power performed an impairment test using a comparative market analysis and determined the carrying amount of the asset exceeded its fair value, net of selling costs. This resulted in a pre-tax impairment loss of $36 million ($27 million after tax) reflected in other operations and maintenance on the statements of income. Goodwill and Other Intangible Assets Goodwill at both September 30, 2024 and December 31, 2023 was as follows:
| Goodwill |
| (in millions)
Southern Company | $ | 5,161 |  |
Southern Company Gas: |  |
Gas distribution operations | $ | 4,034 |  |
Gas marketing services | 981 |  |
Southern Company Gas total | $ | 5,015 |  |
Goodwill is not amortized but is subject to an annual impairment test during the fourth quarter of each year, or more frequently if goodwill impairment indicators exist. Other intangible assets were as follows:
| At September 30, 2024 |  | At December 31, 2023
| Gross Carrying Amount | Accumulated Amortization | Other Intangible Assets, Net |  | Gross Carrying Amount | Accumulated Amortization | Other Intangible Assets, Net
| (in millions) |  | (in millions)
Southern Company |  |  |  |  |  |  |
Subject to amortization: |  |  |  |  |  |  |
Customer relationships | $ | 212 |  | $ | (179) |  | $ | 33 |  |  | $ | 212 |  | $ | (172) |  | $ | 40 |
Trade names | 64 |  | (58) |  | 6 |  |  | 64 |  | (53) |  | 11 |
PPA fair value adjustments | 390 |  | (163) |  | 227 |  |  | 390 |  | (148) |  | 242 |
Other | 3 |  | (3) |  | — |  |  | 3 |  | (3) |  | — |
Total subject to amortization | $ | 669 |  | $ | (403) |  | $ | 266 |  |  | $ | 669 |  | $ | (376) |  | $ | 293 |
Not subject to amortization: |  |  |  |  |  |  |
FCC licenses | 75 |  | — |  | 75 |  |  | 75 |  | — |  | 75 |
Total other intangible assets | $ | 744 |  | $ | (403) |  | $ | 341 |  |  | $ | 744 |  | $ | (376) |  | $ | 368 |
Southern Power(*) |  |  |  |  |  |  |
PPA fair value adjustments | $ | 390 |  | $ | (163) |  | $ | 227 |  |  | $ | 390 |  | $ | (148) |  | $ | 242 |
Southern Company Gas(*) |  |  |  |  |  |  |
Gas marketing services |  |  |  |  |  |  |
Customer relationships | $ | 156 |  | $ | (149) |  | $ | 7 |  |  | $ | 156 |  | $ | (145) |  | $ | 11 |
Trade names | 26 |  | (22) |  | 4 |  |  | 26 |  | (21) |  | 5 |
Total other intangible assets | $ | 182 |  | $ | (171) |  | $ | 11 |  |  | $ | 182 |  | $ | (166) |  | $ | 16 |
(*) All subject to amortization. Amortization associated with other intangible assets was as follows:
| Three Months Ended September 30, | Nine Months Ended September 30,
| 2024 | 2023 | 2024 | 2023
| (in millions)
Southern Company(a) | $ | 9 |  | $ | 10 |  | $ | 27 |  | $ | 27 |
Southern Power(b) | 5 |  | 5 |  | 15 |  | 14 |
Southern Company Gas | 2 |  | 3 |  | 5 |  | 7 |
(a)Includes $5 million for the three months ended September 30, 2024 and 2023 and $15 million and $14 million for the nine months ended September 30, 2024 and 2023, respectively, recorded as a reduction to operating revenues. (b)Recorded as a reduction to operating revenues. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants:
| Southern Company | Alabama Power | Georgia Power | Southern Power | Southern Company Gas
| (in millions)
At September 30, 2024 |  |  |  |  |
Cash and cash equivalents | $ | 1,018 |  | $ | 476 |  | $ | 43 |  | $ | 179 |  | $ | 44 |
Restricted cash(a): |  |  |  |  |
Other current assets | 31 |  | — |  | 14 |  | 16 |  | 1 |
Other deferred charges and assets | 7 |  | — |  | 7 |  | — |  | — |
Total cash, cash equivalents, and restricted cash(b) | $ | 1,055 |  | $ | 476 |  | $ | 64 |  | $ | 195 |  | $ | 45 |
At December 31, 2023 |  |  |  |  |
Cash and cash equivalents | $ | 748 |  | $ | 324 |  | $ | 9 |  | $ | 124 |  | $ | 33 |
Restricted cash(a): |  |  |  |  |
Other current assets | 141 |  | 85 |  | 37 |  | 17 |  | 2 |
Other deferred charges and assets | 31 |  | — |  | 29 |  | 3 |  | — |
Total cash, cash equivalents, and restricted cash(b) | $ | 921 |  | $ | 409 |  | $ | 75 |  | $ | 144 |  | $ | 35 |
(a)For Alabama Power and Georgia Power, reflects proceeds from the issuance of solid waste disposal facility revenue bonds in 2023 and 2022, respectively. For Southern Power, reflects $16 million and $17 million at September 30, 2024 and December 31, 2023, respectively, resulting from an arbitration award held to fund future replacement costs and $3 million at December 31, 2023 held to fund estimated construction completion costs at the Deuel Harvest wind facility. See Note (C) under "General Litigation Matters – Southern Power" for additional information related to the arbitration award. For Southern Company Gas, reflects collateral for workers' compensation, life insurance, and long-term disability insurance. (b)Total may not add due to rounding. Natural Gas for Sale With the exception of Nicor Gas, Southern Company Gas records natural gas inventories on a WACOG basis. For any declines in market prices below the WACOG considered to be other than temporary, an adjustment is recorded to reduce the value of natural gas inventories to market value. Nicor Gas' natural gas inventory is carried at cost on a LIFO basis. Inventory decrements occurring during the year that are restored prior to year-end are charged to cost of natural gas at the estimated annual replacement cost. Inventory decrements that are not restored prior to year-end are charged to cost of natural gas at the actual LIFO cost of the inventory layers liquidated. Southern Company Gas recorded no material adjustments to natural gas inventories for either period presented. Nicor Gas' inventory decrement at September 30, 2024 is expected to be restored prior to year-end. Storm Damage Reserves See Note 1 to the financial statements under "Storm Damage and Reliability Reserves" in Item 8 of the Form 10-K for additional information. Storm damage reserve activity for the traditional electric operating companies during the nine months ended September 30, 2024 was as follows:
| Southern Company(*) | Alabama Power | Georgia Power(*) | Mississippi Power
| (in millions)
Balance at December 31, 2023 | $ | 66 |  | $ | 76 |  | $ | (54) |  | $ | 44 |
Accrual | 45 |  | 10 |  | 24 |  | 11 |
Weather-related damages | (1,239) |  | (33) |  | (1,201) |  | (5) |
Balance at September 30, 2024 | $ | (1,128) |  | $ | 53 |  | $ | (1,231) |  | $ | 50 |
(*)See Note (B) under "Georgia Power – Storm Damage Recovery" for additional information. Depreciation and Amortization See Note 5 to the financial statements under "Depreciation and Amortization" in Item 8 of the Form 10-K for additional information. On October 25, 2024, Mississippi Power filed an updated depreciation study with the Mississippi PSC requesting an $11 million increase in total annual depreciation. The ultimate outcome of this matter cannot be determined at this time. Asset Retirement Obligations See Note 6 to the financial statements in Item 8 of the Form 10-K for additional information. Following initial criticality for Plant Vogtle Unit 4 on February 14, 2024, Georgia Power recorded AROs of approximately $118 million. See Note (B) under "Georgia Power – Nuclear Construction" for additional information on Plant Vogtle Units 3 and 4. In September 2024, Georgia Power completed updated decommissioning cost site studies for Plants Hatch and Vogtle Units 1 through 4. The estimated cost of decommissioning based on the studies resulted in a decrease in Georgia Power's ARO liability of $389 million. See "Nuclear Decommissioning" herein for additional information. Nuclear Decommissioning See Note 6 to the financial statements in Item 8 of the Form 10-K under "Nuclear Decommissioning" for additional information. Site study cost is the estimate to decommission a specific facility as of the site study year. The decommissioning cost estimates are based on removal of the plant from service and prompt dismantlement. The actual decommissioning costs may vary from these estimates because of changes in the assumed date of decommissioning, changes in NRC requirements, or changes in the assumptions used in making these estimates. The estimated costs of decommissioning Plant Hatch and Plant Vogtle based on Georgia Power's September 2024 site studies are as follows:
| Plant Hatch(*) |  | Plant Vogtle Units 1 and 2(*) |  | Plant Vogtle Unit 3 and 4(*)
Decommissioning periods: |  |  |  |  |
Beginning year | 2034 |  | 2047 |  | 2062
Completion year | 2088 |  | 2092 |  | 2074
| (in millions)
Site study costs: |  |  |  |  |
Radiated structures | $ | 696 |  |  | $ | 545 |  |  | $ | 542 |
Spent fuel management | 306 |  |  | 255 |  |  | 88 |
Non-radiated structures | 77 |  |  | 107 |  |  | 89 |
Total site study costs | $ | 1,079 |  |  | $ | 907 |  |  | $ | 719 |
(*)Based on Georgia Power's ownership interests. For ratemaking purposes, Georgia Power's decommissioning costs are based on the NRC generic estimate to decommission the radioactive portion of the facilities and the site study estimate for spent fuel management. Significant assumptions used to determine these costs for ratemaking were an estimated inflation rate of 2.5% for Plants Hatch and Vogtle Units 1 and 2 and 2.3% for Plant Vogtle Units 3 and 4 and an estimated trust earnings rate of 4.5% for Plants Hatch and Vogtle Units 1 and 2 and 4.3% for Plant Vogtle Units 3 and 4. Effective May 1, 2024, as approved under the Prudency Stipulation, Georgia Power's annual decommissioning cost for ratemaking is $8 million for Plant Vogtle Unit 4.

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480424/946-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480424/946-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205/tableOfContent + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration