v3.26.1
Derivatives (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Energy-Related Derivatives
At June 30, 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(*)
46920302029
Alabama Power15520292026
Georgia Power11720282026
Mississippi Power11420302026
Southern Power820302026
Southern Company Gas(*)
7520282029
(*)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 85 million mmBtu long natural gas positions and 10 million mmBtu short natural gas positions at June 30, 2026, which is also included in Southern Company's total volume.
Schedule of Interest Rate Derivatives
At June 30, 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
June 30, 2026
 (in millions)   (in millions)
Fair Value Hedges of Existing Debt
Southern Company parent$400 
1-day SOFR + 0.80%
1.75%March 2028$(23)
Southern Company parent1,000 
1-day SOFR + 2.48%
3.70%April 2030(103)
Southern Company parent565 
1-day SOFR + 1.56%
6.50%March 2045(12)
Southern Company Gas500 
1-day SOFR + 0.49%
1.75%January 2031(62)
Southern Company$2,465 $(200)
Schedule of Foreign Currency Derivatives
At June 30, 2026, the following foreign currency derivatives were outstanding:
Pay
Notional		Pay
Rate		Receive
Notional		Receive
Rate		Hedge
Maturity Date
Fair Value
Gain (Loss) at
June 30, 2026
(in millions)(in millions)(in millions)
Fair Value Hedges of Existing Debt
Southern Company parent$1,476 3.39%€1,250 1.88%September 2027$(63)
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 June 30, 2026At December 31, 2025
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)
Southern Company
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current
$28 $89 $24 $64 
Non-current
30 60 31 35 
Total derivatives designated as hedging instruments for regulatory purposes58 149 55 99 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current3 12 1 6 
Non-current2 1 2 1 
Interest rate derivatives:
Current5 52 8 48 
Non-current— 153 — 139 
Foreign currency derivatives:
Current— 23 17 22 
Non-current— 40 4 — 
Total derivatives designated as hedging instruments in cash flow and fair value hedges10 281 32 216 
Energy-related derivatives not designated as hedging instruments
Current6 4 6 6 
Gross amounts recognized74 434 93 321 
Gross amounts offset(a)
(39)(57)(21)(54)
Net amounts recognized in the Balance Sheets(b)
$35 $377 $72 $267 
Alabama Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current$15 $31 $9 $18 
Non-current12 25 10 13 
Total derivatives designated as hedging instruments for regulatory purposes27 56 19 31 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current— 2 — — 
Gross amounts recognized27 58 19 31 
Gross amounts offset(16)(16)(13)(13)
Net amounts recognized in the Balance Sheets$11 $42 $6 $18 
At June 30, 2026At December 31, 2025
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)
Georgia Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current$5 $32 $7 $23 
Non-current7 16 10 10 
Total derivatives designated as hedging instruments for regulatory purposes12 48 17 33 
Energy-related derivatives not designated as hedging instruments
Current
2 — 1 — 
Gross amounts recognized14 48 18 33 
Gross amounts offset(11)(11)(14)(14)
Net amounts recognized in the Balance Sheets$3 $37 $4 $19 
Mississippi Power
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current$3 $21 $3 $15 
Non-current11 19 11 12 
Total derivatives designated as hedging instruments for regulatory purposes14 40 14 27 
Gross amounts offset(13)(13)(13)(13)
Net amounts recognized in the Balance Sheets$1 $27 $1 $14 
Southern Power
Derivatives designated as hedging instruments in cash flow hedges
Energy-related derivatives:
Current$1 $2 $1 $1 
Non-current2 1 2 — 
Foreign currency derivatives:
Current— — 17 — 
Total derivatives designated as hedging instruments in cash flow hedges
3 3 20 1 
Energy-related derivatives not designated as hedging instruments
Current
— 1 1 — 
Gross amounts recognized3 4 21 1 
Gross amounts offset(1)(1)— — 
Net amounts recognized in the Balance Sheets$2 $3 $21 $1 
At June 30, 2026At December 31, 2025
Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
(in millions)
Southern Company Gas
Energy-related derivatives designated as hedging instruments for regulatory purposes
Current
$5 $5 $5 $8 
Derivatives designated as hedging instruments in cash flow and fair value hedges
Energy-related derivatives:
Current2 8 — 5 
Non-current— — — 1 
Interest rate derivatives:
Current— 13 — 13 
Non-current— 49 — 46 
Total derivatives designated as hedging instruments in cash flow and fair value hedges2 70 — 65 
Energy-related derivatives not designated as hedging instruments
Current4 3 4 6 
Gross amounts recognized11 78 9 79 
Gross amounts offset(a)
6 (12)19 (14)
Net amounts recognized in the Balance Sheets(b)
$17 $66 $28 $65 
(a)Gross amounts offset includes cash collateral held on deposit in broker margin accounts of $18 million and $33 million at June 30, 2026 and December 31, 2025, respectively.
(b)Net amounts of derivative instruments outstanding exclude immaterial premium and intrinsic value associated with weather derivatives at June 30, 2026 and December 31, 2025.
Schedule of Pre-tax Effects of Unrealized Derivative Gains (Losses)
At June 30, 2026 and December 31, 2025, the pre-tax effects of unrealized derivative gains (losses) arising from energy-related derivative instruments designated as regulatory hedging instruments and deferred were as follows:
Regulatory Hedge Unrealized Gain (Loss) Recognized in the Balance Sheets
Derivative Category and
Balance Sheet Location		Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern Company Gas
 (in millions)
At June 30, 2026:
Energy-related derivatives:
Other regulatory assets, current$(75)$(26)$(27)$(18)$(4)
Other regulatory assets, deferred(31)(13)(10)(8)— 
Other regulatory liabilities, current15 10 — — 5 
Total energy-related derivative gains (losses)$(91)$(29)$(37)$(26)$1 
At December 31, 2025:
Energy-related derivatives:
Other regulatory assets, current$(48)$(13)$(17)$(12)$(6)
Other regulatory assets, deferred(8)(5)(1)(2)— 
Other regulatory liabilities, current7 4 1 — 2 
Other regulatory liabilities, deferred4 2 1 1 — 
Total energy-related derivative gains (losses)$(45)$(12)$(16)$(13)$(4)
Schedule of Pre-Tax Effects of Hedging on AOCI
For the three and six months ended June 30, 2026 and 2025, the pre-tax effects of cash flow and fair value hedge accounting on accumulated OCI for the applicable Registrants were as follows:
Gain (Loss) From Derivatives Recognized in OCIThree Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Southern Company
Cash flow hedges:
Energy-related derivatives$(8)$(13)$1 $6 
Interest rate derivatives— 9 — 5 
Foreign currency derivatives(7)47 (19)67 
Fair value hedges(*):
Foreign currency derivatives— 3 (1)(13)
Total$(15)$46 $(19)$65 
Alabama Power
Cash flow hedges:
Energy-related derivatives$(2)$— $(2)$— 
Georgia Power
Cash flow hedges:
Interest rate derivatives$— $5 $— $3 
Southern Power
Cash flow hedges:
Energy-related derivatives$(2)$(1)$— $2 
Foreign currency derivatives(7)47 (19)67 
Total$(9)$46 $(19)$69 
Southern Company Gas
Cash flow hedges:
Energy-related derivatives$(4)$(12)$3 $4 
Interest rate derivatives— 4 — 4 
Total$(4)$(8)$3 $8 
(*)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 and six months ended June 30, 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 June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Southern Company
Fuel
Energy-related cash flow hedges
$(1)$— $2 $1 
Cost of natural gas
Energy-related cash flow hedges
(3)1 7 — 
Interest expense, net of amounts capitalized
Interest rate cash flow hedges
(2)(3)(5)(6)
Foreign currency cash flow hedges
(2)(2)(5)(5)
Interest rate fair value hedges
(41)29 (21)69 
Other income (expense), net
Foreign currency cash flow hedges
(2)45 (14)67 
Foreign currency fair value hedges
(13)115 (45)155 
Amount excluded from effectiveness testing recognized in earnings— (3)1 13 
Southern Power
Fuel
Energy-related cash flow hedges
$(1)$— $2 $1 
Interest expense, net of amounts capitalized
Foreign currency cash flow hedges
(2)(2)(5)(5)
Other income (expense), net
Foreign currency cash flow hedges
(2)45 (14)67 
Southern Company Gas
Cost of natural gas
Energy-related cash flow hedges
$(3)$1 $7 $— 
Interest expense, net of amounts capitalized
Interest rate fair value hedges
(32)3 (3)21 
Schedule of Cumulative Basis Adjustments for Fair Value Hedges
At June 30, 2026 and December 31, 2025, the following amounts were recorded on the balance sheets related to cumulative basis adjustments for fair value hedges:
Carrying Amount of the Hedged
Item		Cumulative Amount of Fair Value
Hedging Adjustment included in
Carrying Amount of the Hedged
Item
Balance Sheet Location of Hedged ItemsAt June 30, 2026At December 31, 2025At June 30, 2026At December 31, 2025
(in millions)
Southern Company
Long-term debt$(3,687)$(3,742)$169 $156 
Southern Company Gas
Long-term debt$(442)$(446)$56 $51