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Derivatives (Tables)

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Energy-Related Derivatives

At March 31, 2026, the net volume of energy-related derivative contracts for natural gas positions, together with the longest hedge date over which the respective entity is hedging its exposure to the variability in future cash flows for forecasted transactions and the longest non-hedge date for derivatives not designated as hedges, were as follows:

			Net Purchased mmBtu						Longest Hedge Date						Longest Non-Hedge Date
			(in millions)
Southern Company(*)			469						2030						2029
Alabama Power			145						2029						2026
Georgia Power			132						2028						2026
Mississippi Power			112						2030						2026
Southern Power			7						2030						2026
Southern Company Gas(*)			73						2028						2029

(*)Southern Company Gas' derivative instruments include both long and short natural gas positions. A long position is a contract to purchase natural gas and a short position is a contract to sell natural gas. Southern Company Gas' volume represents the net of 80 million mmBtu long natural gas positions and 7 million mmBtu short natural gas positions at March 31, 2026, which is also included in Southern Company's total volume.

Schedule of Interest Rate Derivatives

At March 31, 2026, the following interest rate derivatives were outstanding:

			Notional Amount			Weighted Average Interest Rate Paid			Interest Rate Received			Hedge Maturity Date			Fair Value Gain (Loss) at March 31, 2026
			(in millions)												(in millions)
Fair Value Hedges of Existing Debt
Southern Company parent			$	400		1-day SOFR + 0.80%			1.75%			March 2028			$	(20)
Southern Company parent			1,000			1-day SOFR + 2.48%			3.70%			April 2030			(103)
Southern Company parent			565			1-day SOFR + 1.56%			6.50%			March 2045			(6)
Southern Company Gas			500			1-day SOFR + 0.49%			1.75%			January 2031			(55)
Southern Company			$	2,465											$	(184)

Schedule of Foreign Currency Derivatives

At March 31, 2026, the following foreign currency derivatives were outstanding:

			Pay Notional			Pay Rate			Receive Notional			Receive Rate			Hedge Maturity Date			Fair Value Gain (Loss) at March 31, 2026
			(in millions)						(in millions)									(in millions)
Cash Flow Hedges of Existing Debt
Southern Power			$	564		3.78%			€	500		1.85%			June 2026			$	5
Fair Value Hedges of Existing Debt
Southern Company parent			1,476			3.39%			1,250			1.88%			September 2027			(50)
Southern Company			$	2,040					€	1,750								$	(45)

Schedule of Derivative Category and Balance Sheet Location

The fair value of energy-related derivatives, interest rate derivatives, and foreign currency derivatives was reflected as either assets or liabilities in the balance sheets (included in "Other" or shown separately as "Risk Management Activities") as follows:

			At March 31, 2026						At December 31, 2025
Derivative Category and Balance Sheet Location			Assets			Liabilities			Assets			Liabilities
			(in millions)
Southern Company
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	35		$	91		$	24		$	64
Non-current			34			56			31			35
Total derivatives designated as hedging instruments for regulatory purposes			69			147			55			99
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current			2			8			1			6
Non-current			2			—			2			1
Interest rate derivatives:
Current			7			49			8			48
Non-current			—			142			—			139
Foreign currency derivatives:
Current			5			22			17			22
Non-current			—			28			4			—
Total derivatives designated as hedging instruments in cash flow and fair value hedges			16			249			32			216
Energy-related derivatives not designated as hedging instruments
Current			5			5			6			6
Gross amounts recognized			90			401			93			321
Gross amounts offset(a)			(53)			(75)			(21)			(54)
Net amounts recognized in the Balance Sheets(b)			$	37		$	326		$	72		$	267
Alabama Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	12		$	26		$	9		$	18
Non-current			13			22			10			13
Total derivatives designated as hedging instruments for regulatory purposes			25			48			19			31
Gross amounts offset			(23)			(23)			(13)			(13)
Net amounts recognized in the Balance Sheets			$	2		$	25		$	6		$	18

			At March 31, 2026						At December 31, 2025
Derivative Category and Balance Sheet Location			Assets			Liabilities			Assets			Liabilities
			(in millions)
Georgia Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	13		$	32		$	7		$	23
Non-current			9			17			10			10
Total derivatives designated as hedging instruments for regulatory purposes			22			49			17			33
Energy-related derivatives not designated as hedging instruments
Current			3			—			1			—
Gross amounts recognized			25			49			18			33
Gross amounts offset			(21)			(21)			(14)			(14)
Net amounts recognized in the Balance Sheets			$	4		$	28		$	4		$	19
Mississippi Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	7		$	21		$	3		$	15
Non-current			12			17			11			12
Total derivatives designated as hedging instruments for regulatory purposes			19			38			14			27
Gross amounts offset			(18)			(18)			(13)			(13)
Net amounts recognized in the Balance Sheets			$	1		$	20		$	1		$	14
Southern Power
Derivatives designated as hedging instruments in cash flow hedges
Energy-related derivatives:
Current			$	1		$	2		$	1		$	1
Non-current			2			—			2			—
Foreign currency derivatives:
Current			5			—			17			—
Total derivatives designated as hedging instruments in cash flow hedges			8			2			20			1
Energy-related derivatives not designated as hedging instruments
Energy-related derivatives:
Current			1			1			1			—
Gross amounts recognized			9			3			21			1
Gross amounts offset			(1)			(1)			—			—
Net amounts recognized in the Balance Sheets			$	8		$	2		$	21		$	1

			At March 31, 2026						At December 31, 2025
Derivative Category and Balance Sheet Location			Assets			Liabilities			Assets			Liabilities
			(in millions)
Southern Company Gas
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current			$	3		$	12		$	5		$	8
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current			1			6			—			5
Non-current			—			—			—			1
Interest rate derivatives:
Current			—			12			—			13
Non-current			—			43			—			46
Total derivatives designated as hedging instruments in cash flow and fair value hedges			1			61			—			65
Energy-related derivatives not designated as hedging instruments
Current			1			4			4			6
Gross amounts recognized			5			77			9			79
Gross amounts offset(a)			10			(12)			19			(14)
Net amounts recognized in the Balance Sheets(b)			$	15		$	65		$	28		$	65

(a)Gross amounts offset includes cash collateral held on deposit in broker margin accounts of $22 million and $33 million at March 31, 2026 and December 31, 2025, respectively.

(b)Net amounts of derivative instruments outstanding exclude immaterial premium and intrinsic value associated with weather derivatives at March 31, 2026 and December 31, 2025.

Schedule of Pre-tax Effects of Unrealized Derivative Gains (Losses)

At March 31, 2026 and December 31, 2025, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred were as follows:

Regulatory Hedge Unrealized Gain (Loss) Recognized in the Balance Sheets
Derivative Category and Balance Sheet Location			Southern Company			Alabama Power			Georgia Power			Mississippi Power			Southern Company Gas
			(in millions)
At March 31, 2026:
Energy-related derivatives:
Other regulatory assets, current			$	(60)		$	(16)		$	(20)		$	(14)		$	(10)
Other regulatory assets, deferred			(23)			(10)			(8)			(5)			—
Other regulatory liabilities, current			4			2			1			—			1
Other regulatory liabilities, deferred			1			1			—			—			—
Total energy-related derivative gains (losses)			$	(78)		$	(23)		$	(27)		$	(19)		$	(9)
At December 31, 2025:
Energy-related derivatives:
Other regulatory assets, current			$	(48)		$	(13)		$	(17)		$	(12)		$	(6)
Other regulatory assets, deferred			(8)			(5)			(1)			(2)			—
Other regulatory liabilities, current			7			4			1			—			2
Other regulatory liabilities, deferred			4			2			1			1			—
Total energy-related derivative gains (losses)			$	(45)		$	(12)		$	(16)		$	(13)		$	(4)

Schedule of Pre-Tax Effects of Hedging on AOCI

For the three months ended March 31, 2026 and 2025, the pre-tax effects of cash flow and fair value hedge accounting on accumulated OCI for the applicable Registrants were as follows:

Gain (Loss) From Derivatives Recognized in OCI						Three Months Ended March 31,
									2026			2025
									(in millions)
Southern Company
Cash flow hedges:
Energy-related derivatives									$	10		$	19
Interest rate derivatives									—			(2)
Foreign currency derivatives									(12)			19
Fair value hedges(*):
Foreign currency derivatives									(1)			(16)
Total									$	(3)		$	20
Georgia Power
Cash flow hedges:
Interest rate derivatives									$	—		$	(2)
Southern Power
Cash flow hedges:
Energy-related derivatives									$	2		$	3
Foreign currency derivatives									(12)			19
Total									$	(10)		$	22
Southern Company Gas
Cash flow hedges:
Energy-related derivatives									$	8		$	16

(*)Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in OCI.

Schedule of Pre-Tax Effects of Cash Flow and Fair Value Hedging on Income

For the three months ended March 31, 2026 and 2025, the pre-tax effects of cash flow and fair value hedge accounting on income were as follows:

												Gain (Loss)
Statements of Income Location			Derivative Category						Three Months Ended March 31,
												2026			2025
												(in millions)
Southern Company
Fuel			Energy-related cash flow hedges									$	3		$	1
Cost of natural gas			Energy-related cash flow hedges									10			(1)
Interest expense, net of amounts capitalized			Interest rate cash flow hedges									(2)			(2)
			Foreign currency cash flow hedges									(3)			(3)
			Interest rate fair value hedges									20			40
Other income (expense), net			Foreign currency cash flow hedges									(13)			21
			Foreign currency fair value hedges									(32)			40
			Amount excluded from effectiveness testing recognized in earnings									1			16
Southern Power
Fuel			Energy-related cash flow hedges									$	3		$	1
Interest expense, net of amounts capitalized			Foreign currency cash flow hedges									(3)			(3)
Other income (expense), net			Foreign currency cash flow hedges									(13)			21
Southern Company Gas
Cost of natural gas			Energy-related cash flow hedges									$	10		$	(1)
Interest expense, net of amounts capitalized			Interest rate fair value hedges									29			17

Schedule of Cumulative Basis Adjustments for Fair Value Hedges

At March 31, 2026 and December 31, 2025, the following amounts were recorded on the balance sheets related to cumulative basis adjustments for fair value hedges:

			Carrying Amount of the Hedged Item						Cumulative Amount of Fair Value Hedging Adjustment included in Carrying Amount of the Hedged Item
Balance Sheet Location of Hedged Items			At March 31, 2026			At December 31, 2025			At March 31, 2026			At December 31, 2025
			(in millions)
Southern Company
Long-term debt			$	(3,710)		$	(3,742)		$	158		$	156
Southern Company Gas
Long-term debt			$	(446)		$	(446)		$	52		$	51

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