Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Assets and Liabilities Measured at Fair Value

At June 30, 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 June 30, 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)	$	8	$	61	$	—	$	—	$	69
Interest rate derivatives	—		5		—		—		5

Investments in trusts:(b)
Domestic equity	1,030		293		—		—		1,323
Foreign equity	199		256		—		—		455
U.S. Treasury and government agency securities	—		410		—		—		410
Municipal bonds	—		31		—		—		31
Pooled funds – fixed income	—		4		—		—		4
Corporate bonds	—		533		—		—		533
Mortgage- and asset-backed securities	—		110		—		—		110
Private equity	—		—		—		202		202
Cash and cash equivalents	1		—		—		—		1
Other	33		4		—		9		46
Investments, available-for-sale:
U.S. Treasury and government agency securities	1		12		—		—		13
Municipal bonds	—		2		—		—		2
Corporate bonds	—		4		—		—		4
Mortgage- and asset-backed securities	—		3		—		—		3
Cash equivalents	1,768		18		—		—		1,786
Other investments	10		35		8		—		53
Other	—		—		10		—		10
Total	$	3,050	$	1,781	$	18	$	211	$	5,060
Liabilities:
Energy-related derivatives(a)	$	11	$	155	$	—	$	—	$	166
Interest rate derivatives	—		205		—		—		205
Foreign currency derivatives	—		63		—		—		63
Contingent consideration	—		—		12		—		12
Other	—		13		11		—		24
Total	$	11	$	436	$	23	$	—	$	470


	Fair Value Measurements Using
At June 30, 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	$	—	$	27	$	—	$	—	$	27

Nuclear decommissioning trusts:(b)
Domestic equity	569		282		—		—		851
Foreign equity	199		—		—		—		199
U.S. Treasury and government agency securities	—		16		—		—		16
Municipal bonds	—		1		—		—		1
Corporate bonds	—		319		—		—		319
Mortgage- and asset-backed securities	—		28		—		—		28
Private equity	—		—		—		202		202
Other	14		2		—		9		25
Cash equivalents	40		18		—		—		58
Other investments	—		35		—		—		35
Total	$	822	$	728	$	—	$	211	$	1,761
Liabilities:
Energy-related derivatives	$	—	$	58	$	—	$	—	$	58



Georgia Power
Assets:
Energy-related derivatives	$	—	$	14	$	—	$	—	$	14

Nuclear decommissioning trusts:(b)
Domestic equity	461		1		—		—		462
Foreign equity	—		254		—		—		254
U.S. Treasury and government agency securities	—		394		—		—		394
Municipal bonds	—		30		—		—		30
Corporate bonds	—		214		—		—		214
Mortgage- and asset-backed securities	—		82		—		—		82
Other	19		2		—		—		21
Cash equivalents	11		—		—		—		11
Total	$	491	$	991	$	—	$	—	$	1,482
Liabilities:
Energy-related derivatives	$	—	$	48	$	—	$	—	$	48


	Fair Value Measurements Using
At June 30, 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)
Mississippi Power
Assets:
Energy-related derivatives	$	—	$	14	$	—	$	—	$	14

Cash equivalents	1		—		—		—		1
Total	$	1	$	14	$	—	$	—	$	15
Liabilities:
Energy-related derivatives	$	—	$	40	$	—	$	—	$	40



Southern Power
Assets:
Energy-related derivatives	$	—	$	3	$	—	$	—	$	3

Cash equivalents	162		—		—		—		162
Other	—		—		10		—		10
Total	$	162	$	3	$	10	$	—	$	175
Liabilities:
Energy-related derivatives	$	—	$	4	$	—	$	—	$	4

Contingent consideration	—		—		12		—		12
Other	—		13		11		—		24
Total	$	—	$	17	$	23	$	—	$	40

Southern Company Gas
Assets:
Energy-related derivatives(a)	$	8	$	3	$	—	$	—	$	11

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	200		—		—		—		200

Total	$	209	$	19	$	—	$	—	$	228
Liabilities:
Energy-related derivatives(a)	$	11	$	5	$	—	$	—	$	16
Interest rate derivatives	—		62		—		—		62

Total	$	11	$	67	$	—	$	—	$	78

(a)Excludes cash collateral of $18 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 June 30,				Six Months Ended June 30,
Fair value increases (decreases)	2026		2025		2026		2025
	(in millions)
Southern Company	$	249	$	165	$	205	$	159
Alabama Power	156		99		126		86
Georgia Power	93		66		79		73

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

At June 30, 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	$	72.7	$	12.0	$	22.3	$	1.8	$	3.0	$	9.3
Fair value	68.0		10.7		20.7		1.7		2.9		8.4

(*)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.