Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Assets and Liabilities Measured at Fair Value

At March 31, 2026, 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, 2026	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)	$	2	$	76	$	—	$	—	$	78
Interest rate derivatives	—		7		—		—		7
Foreign currency derivatives	—		5		—		—		5
Investments in trusts:(b)
Domestic equity	884		259		—		—		1,143
Foreign equity	177		231		—		—		408
U.S. Treasury and government agency securities	—		390		—		—		390
Municipal bonds	—		50		—		—		50
Pooled funds – fixed income	—		4		—		—		4
Corporate bonds	—		529		—		—		529
Mortgage- and asset-backed securities	—		108		—		—		108
Private equity	—		—		—		195		195
Cash and cash equivalents	1		—		—		—		1
Other	63		3		—		9		75
Investments, available-for-sale:
U.S. Treasury and government agency securities	2		12		—		—		14
Municipal bonds	—		1		—		—		1
Corporate bonds	—		3		—		—		3
Mortgage- and asset-backed securities	—		4		—		—		4
Cash equivalents	486		15		—		—		501
Other investments	10		39		8		—		57
Other	—		—		10		—		10
Total	$	1,625	$	1,736	$	18	$	204	$	3,583
Liabilities:
Energy-related derivatives(a)	$	9	$	151	$	—	$	—	$	160
Interest rate derivatives	—		191		—		—		191
Foreign currency derivatives	—		50		—		—		50
Contingent consideration	—		—		11		—		11
Other	—		13		11		—		24
Total	$	9	$	405	$	22	$	—	$	436


	Fair Value Measurements Using
At March 31, 2026	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	$	—	$	25	$	—	$	—	$	25

Nuclear decommissioning trusts:(b)
Domestic equity	502		248		—		—		750
Foreign equity	177		—		—		—		177
U.S. Treasury and government agency securities	—		15		—		—		15
Municipal bonds	—		1		—		—		1
Corporate bonds	—		317		—		—		317
Mortgage- and asset-backed securities	—		30		—		—		30
Private equity	—		—		—		195		195
Other	13		1		—		9		23
Cash equivalents	9		15		—		—		24
Other investments	—		39		—		—		39
Total	$	701	$	691	$	—	$	204	$	1,596
Liabilities:
Energy-related derivatives	$	—	$	48	$	—	$	—	$	48



Georgia Power
Assets:
Energy-related derivatives	$	—	$	25	$	—	$	—	$	25

Nuclear decommissioning trusts:(b)
Domestic equity	382		1		—		—		383
Foreign equity	—		229		—		—		229
U.S. Treasury and government agency securities	—		375		—		—		375
Municipal bonds	—		49		—		—		49
Corporate bonds	—		212		—		—		212
Mortgage- and asset-backed securities	—		78		—		—		78
Other	50		2		—		—		52
Cash equivalents	8		—		—		—		8
Total	$	440	$	971	$	—	$	—	$	1,411
Liabilities:
Energy-related derivatives	$	—	$	49	$	—	$	—	$	49



Mississippi Power
Assets:
Energy-related derivatives	$	—	$	19	$	—	$	—	$	19



Liabilities:
Energy-related derivatives	$	—	$	38	$	—	$	—	$	38


	Fair Value Measurements Using
At March 31, 2026	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 Power
Assets:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4
Foreign currency derivatives	—		5		—		—		5

Other	—		—		10		—		10
Total	$	—	$	9	$	10	$	—	$	19
Liabilities:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3

Contingent consideration	—		—		11		—		11
Other	—		13		11		—		24
Total	$	—	$	16	$	22	$	—	$	38

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	2	$	3	$	—	$	—	$	5

Non-qualified deferred compensation trusts:
Domestic equity	—		10		—		—		10
Foreign equity	—		2		—		—		2
Pooled funds – fixed income	—		4		—		—		4
Cash and cash equivalents	1		—		—		—		1
Cash equivalents	121		—		—		—		121

Total	$	124	$	19	$	—	$	—	$	143
Liabilities:
Energy-related derivatives(a)	$	9	$	13	$	—	$	—	$	22
Interest rate derivatives	—		55		—		—		55

Total	$	9	$	68	$	—	$	—	$	77

(a)Excludes cash collateral of $22 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 under "Nuclear Decommissioning" in Item 8 of the Form 10-K for additional information.

Schedule of Increase (Decrease) In Fair Value Of Funds

The changes were recorded as a change to the regulatory assets and liabilities related to AROs for Georgia Power and Alabama Power, respectively.


	Three Months Ended March 31,
Fair value increases (decreases)		2026		2025
		(in millions)
Southern Company		$	(44)	$	(6)
Alabama Power		(30)		(13)
Georgia Power		(14)		7

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

At March 31, 2026, 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	$	72.1	$	12.0	$	21.7	$	1.8	$	2.9	$	9.3
Fair value	66.5		10.7		20.2		1.7		2.8		8.3

(*)The carrying amount of Southern Company Gas' long-term debt includes fair value adjustments from 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.