Mississippi Power (MSPWP) 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating Revenues:
Retail revenues	$3,997,659	$4,478,292	$10,355,330	$10,933,784
Wholesale revenues	519,122	774,847	1,408,286	1,880,311
Other electric revenues	139,869	142,459	391,070	413,811
Other revenues	24,832	30,901	78,267	96,690
Total operating revenues	4,681,482	5,426,499	12,232,953	13,324,596
Operating Expenses:
Fuel	1,733,527	2,152,828	4,588,932	5,226,845
Purchased power	166,791	378,259	407,623	668,423
Other operations and maintenance	820,889	908,404	2,523,184	2,720,219
MC Asset Recovery litigation settlement	0	0	202,000	0
Depreciation and amortization	332,117	367,014	1,099,216	1,069,644
Taxes other than income taxes	212,882	215,298	620,851	602,612
Total operating expenses	3,266,206	4,021,803	9,441,806	10,287,743
Operating Income	1,415,276	1,404,696	2,791,147	3,036,853
Other Income and (Expense):
Allowance for equity funds used during construction	51,061	35,541	141,173	111,612
Interest income	6,013	9,744	17,791	20,737
Equity in income (losses) of unconsolidated subsidiaries	(34)	4,704	(330)	6,129
Leveraged lease income (losses)	6,578	6,343	24,695	(53,611)
Gain on disposition of lease termination	0	0	26,300	0
Loss on extinguishment of debt	0	0	(17,184)	0
Interest expense, net of amounts capitalized	(226,345)	(219,066)	(684,902)	(665,123)
Other income (expense), net	(10,432)	(10,816)	(26,963)	(14,385)
Total other income and (expense)	(173,159)	(173,550)	(519,420)	(594,641)
Earnings Before Income Taxes	1,242,117	1,231,146	2,271,727	2,442,212
Income taxes	435,947	434,515	828,833	837,605
Consolidated net income	806,170	796,631	1,442,894	1,604,607
Dividends on Preferred and Preference Stock of Subsidiaries	16,195	16,195	48,585	48,585
Consolidated Net Income After Dividends on Preferred and Preference Stock of Subsidiaries	$789,975	$780,436	$1,394,309	$1,556,022
Earnings per share (EPS) -
Basic EPS	0.99	1.01	1.77	2.02
Diluted EPS	0.99	1	1.76	2.01
Average number of shares of common stock outstanding (in thousands)
Basic	798,418	772,622	789,675	769,298
Diluted	800,178	776,903	791,259	773,451
Cash dividends paid per share of common stock	0.4375	0.42	1.295	1.2425

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating Activities:
Consolidated net income	$1,442,894	$1,604,607
Adjustments to reconcile consolidated net income to net cash provided from operating activities --
Depreciation and amortization, total	1,310,854	1,265,696
Deferred income taxes and investment tax credits	(14,565)	46,006
Deferred revenues	(40,781)	94,924
Allowance for equity funds used during construction	(141,173)	(111,612)
Equity in income (losses) of unconsolidated subsidiaries	330	(6,129)
Leveraged lease income (losses)	(24,695)	53,611
Gain on disposition of lease termination	(26,300)	0
Loss on extinguishment of debt	17,184	0
Pension, postretirement, and other employee benefits	42,775	75,965
Stock option expense	20,850	17,730
Hedge settlements	(16,167)	17,289
Other, net	10,036	(56,200)
Changes in certain current assets and liabilities --
-Receivables	319,286	(522,004)
-Fossil fuel stock	(361,520)	(112,328)
-Materials and supplies	(40,811)	(25,347)
-Other current assets	(50,977)	(33,896)
-Accounts payable	(210,459)	(45,079)
-Accrued taxes	238,988	409,684
-Accrued compensation	(273,349)	(86,436)
-Other current liabilities	157,384	49,651
Net cash provided from operating activities	2,359,784	2,636,132
Investing Activities:
Property additions	(3,179,009)	(2,860,118)
Investment in restricted cash from pollution control revenue bonds	(49,528)	(5,454)
Distribution of restricted cash from pollution control revenue bonds	90,088	46,782
Nuclear decommissioning trust fund purchases	(1,066,688)	(581,171)
Nuclear decommissioning trust fund sales	1,019,401	574,291
Proceeds from property sales	339,911	5,718
Cost of removal, net of salvage	(85,022)	(74,714)
Change in construction payables	110,265	(8,703)
Other investing activities	(35,766)	(76,402)
Net cash used for investing activities	(2,856,348)	(2,979,771)
Financing Activities:
Increase (decrease) in notes payable, net	118,124	62,302
Proceeds --
Long-term debt issuances	2,216,010	2,416,035
Common stock issuances	668,529	381,200
Redemptions --
Long-term debt	(1,229,484)	(769,789)
Redeemable preferred stock	0	(125,000)
Payment of common stock dividends	(1,018,928)	(954,438)
Payments of dividends on preferred and preference stock of subsidiaries	(48,675)	(49,497)
Other financing activities	(18,732)	(11,705)
Net cash provided from financing activities	686,844	949,108
Net Change in Cash and Cash Equivalents	190,280	605,469
Cash and Cash Equivalents at Beginning of Period	416,581	200,550
Cash and Cash Equivalents at End of Period	606,861	806,019
Cash paid during the period for --
Interest (net of $59,849 and $54,404 capitalized for 2009 and 2008, respectively)	589,919	575,597
Income taxes (net of refunds)	$644,541	$489,600

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Parenthetical Cash Flow Information
Cash Paid for Capitalized Interest	$59,849	$54,404

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Current Assets:
Cash and cash equivalents	$606,861	$416,581
Restricted cash and cash equivalents	66,403	102,537
Receivables --
Customer accounts receivable	1,234,810	1,053,674
Unbilled revenues	394,815	320,439
Under recovered regulatory clause revenues	416,805	646,318
Other accounts and notes receivable	270,348	301,028
Accumulated provision for uncollectible accounts	(29,044)	(26,326)
Fossil fuel stock, at average cost	1,373,037	1,018,314
Materials and supplies, at average cost	795,622	756,746
Vacation pay	135,061	140,283
Prepaid expenses	372,951	301,570
Other regulatory assets, current	193,710	275,424
Other current assets	50,554	51,044
Total current assets	5,881,933	5,357,632
Property, Plant, and Equipment:
In service	52,326,502	50,618,219
Less accumulated depreciation	18,985,998	18,285,800
Plant in service, net of depreciation	33,340,504	32,332,419
Nuclear fuel, at amortized cost	536,191	510,274
Construction work in progress	4,265,084	3,035,795
Total property, plant, and equipment	38,141,779	35,878,488
Other Property and Investments:
Nuclear decommissioning trusts, at fair value	1,060,161	864,396
Leveraged leases	606,165	897,338
Miscellaneous property and investments	228,594	226,757
Total other property and investments	1,894,920	1,988,491
Deferred Charges and Other Assets
Deferred charges related to income taxes	1,033,025	972,781
Unamortized debt issuance expense	209,607	207,763
Unamortized loss on reacquired debt	260,077	270,919
Deferred under recovered regulatory clause revenues	317,780	606,483
Other regulatory assets, deferred	2,404,534	2,636,217
Other deferred charges and assets	380,552	428,432
Total deferred charges and other assets	4,605,575	5,122,595
Total Assets	50,524,207	48,347,206
Current Liabilities:
Securities due within one year	412,295	616,415
Notes payable	1,064,694	953,437
Accounts payable	1,158,560	1,249,694
Customer deposits	325,035	302,495
Accrued taxes --
Accrued income taxes	176,299	195,922
Unrecognized tax benefits	160,649	131,641
Other accrued taxes	423,540	396,206
Accrued interest	227,821	195,500
Accrued vacation pay	168,955	178,519
Accrued compensation	191,139	446,718
Liabilities from risk management activities	147,464	260,977
Other regulatory liabilities, current	422,199	78,360
Other current liabilities	297,364	220,351
Total current liabilities	5,176,014	5,226,235
Long-term Debt	18,010,235	16,816,438
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	6,350,882	6,080,104
Deferred credits related to income taxes	257,581	259,156
Accumulated deferred investment tax credits	435,785	455,398
Employee benefit obligations	2,023,883	2,057,424
Asset retirement obligations	1,235,309	1,182,769
Other cost of removal obligations	1,048,279	1,320,558
Other regulatory liabilities, deferred	241,160	261,970
Other deferred credits and liabilities	301,167	329,534
Total deferred credits and other liabilities	11,894,046	11,946,913
Total Liabilities	35,080,295	33,989,586
Redeemable Preferred Stock of Subsidiaries	374,496	374,496
Common Stockholders' Equity:
Par value	4,003,446	3,888,041
Paid-in capital	2,469,185	1,892,802
Treasury, at cost	14,042	12,279
Retained earnings	7,987,893	7,611,977
Accumulated other comprehensive loss	(84,433)	(104,784)
Total Common Stockholders' Equity	14,362,049	13,275,757
Preferred and Preference Stock of Subsidiaries	707,367	707,367
Total Stockholders' Equity	15,069,416	13,983,124
Total Liabilities and Stockholders' Equity	$50,524,207	$48,347,206

3_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)
	Sep. 30, 2009	Dec. 31, 2008
Common Stockholders' Equity:
Common stock, par value per share --	5	5
Shares authorized	1,000,000,000	1,000,000,000
Shares issued	800,693,706	777,615,751
Treasury shares	482,328	423,477

4_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Consolidated net income	$806,170	$796,631	$1,442,894	$1,604,607
Qualifying hedges:
Changes in fair value, net of tax of $(1,356), $11,996, $(2,338), and $579, respectively	(2,151)	18,603	(3,815)	690
Reclassification adjustment for amounts included in net income, net of tax of $4,610, $1,730, $13,073 and $5,879, respectively	7,339	2,709	20,807	9,217
Marketable securities:
Change in fair value, net of tax $(1,056), $163, $239, and $(2,293), respectively	(1,359)	86	2,310	(3,940)
Reclassification adjustment for amounts included in net income, net of tax of $-, $3, $-, and $3, respectively	0	4	0	4
Pension and other post retirement benefit plans:
Reclassification adjustment for amounts included in net income, net of tax of $222, $237, $665, and $773, respectively	350	376	1,049	1,258
Total other comprehensive income (loss)	4,179	21,778	20,351	7,229
Dividends on preferred and preference stock of subsidiaries	(16,195)	(16,195)	(48,585)	(48,585)
Comprehensive Income	$794,154	$802,214	$1,414,660	$1,563,251

5_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Qualifying hedges, tax:
Changes in fair value of qualifying hedges, tax	($1,356)	$11,996	($2,338)	$579
Reclassification adjustment for amounts of qualifying hedges included in net income, tax	4,610	1,730	13,073	5,879
Marketable securities, tax:
Change in fair value of marketable securities, tax	(1,056)	163	239	(2,293)
Reclassification adjustment for amounts of marketable securities included in net income, tax	0	3	0	3
Pension and other post retirement benefit plans, tax:
Reclassification adjustment for amounts of pension and other post retirement benefit plans included in net income, tax	$222	$237	$665	$773

Sheet1

(A) INTRODUCTION
	9 Months Ended Sep. 30, 2009
(A) INTRODUCTION
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	(A) 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 as of December 31, 2008 have been derived from the audited financial statements of each registrant. In the opinion of each registrants 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, 2009 and 2008. In addition, all subsequent events have been evaluated for disclosure through the issuance of the financial statements on November 6, 2009. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States 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 audited financial statements included in the Form 10-K and, with respect to Southern Company, the subsequently revised audited financial statements included in the Current Report on Form 8-K filed May 8, 2009 (the Form 8-K), and details which have not changed significantly in amount or composition since the filing of the Form 10-K and, for Southern Company, the Form 8-K are generally omitted from this Quarterly Report on Form 10-Q. Therefore, these Condensed Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K and, for Southern Company, the Form 8-K. Due to the seasonal variations in the demand for energy, operating results for the periods presented do not necessarily indicate operating results for the entire year. Reclassifications Certain prior period data presented in the financial statements have been reclassified to conform to the current year presentation. For comparative purposes, each registrants statements of income for the three and nine months ended September 30, 2008 were modified within the operating expenses section to combine the line items Other operations and Maintenance into a single line item entitled Other operations and maintenance. The balance sheets at December 31, 2008 of Southern Company, Alabama Power, and Georgia Power were modified to present a separate line item for Other regulatory assets, current previously included in Other current assets and a separate line item for Other regulatory liabilities, current previously included in Other current liabilities. In addition, Georgia Powers balance sheet was modified to present a separate line item for Joint owner accounts receivable previously included in Other accounts and notes receivable and to reflect a new line item Liabilities from risk management activities previously included in Other current liabilities. Gulf Powers balance sheet shows separately the a

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(B) CONTINGENCIES AND REGULATORY MATTERS
	9 Months Ended Sep. 30, 2009
(B) CONTINGENCIES AND REGULATORY MATTERS
Commitments and Contingencies Disclosure [Text Block]	(B) CONTINGENCIES AND REGULATORY MATTERS See Note 3 to the financial statements of the registrants in Item 8 of the Form 10-K for information relating to various lawsuits, other contingencies, and regulatory matters. General Litigation Matters Each registrant is subject to certain claims and legal actions arising in the ordinary course of business. In addition, each registrants business activities are subject to extensive governmental regulation related to public health and the environment, such as regulation of air emissions and water discharges. Litigation over environmental issues and claims of various types, including property damage, personal injury, common law nuisance, and citizen enforcement of environmental requirements such as opacity and air and water quality standards, has increased generally throughout the United States. In particular, personal injury claims for damages caused by alleged exposure to hazardous materials, and common law nuisance claims for injunctive relief and property damage allegedly caused by greenhouse gas emissions, have become more frequent. The ultimate outcome of such pending or potential litigation against the registrants and any of their subsidiaries cannot be predicted at this time; however, for current proceedings not specifically reported herein or in Note 3 to the financial statements of each registrant in Item 8 of the Form 10-K, management does not anticipate that the liabilities, if any, arising from such current proceedings would have a material adverse effect on such registrants financial statements. Mirant Matters Mirant was an energy company with businesses that included independent power projects and energy trading and risk management companies in the United States and selected other countries. It was a wholly-owned subsidiary of Southern Company until its initial public offering in October 2000. In April 2001, Southern Company completed a spin-off to its shareholders of its remaining ownership, and Mirant became an independent corporate entity. Mirant Bankruptcy In July 2003, Mirant and certain of its affiliates filed voluntary petitions for relief under Chapter11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas. The Bankruptcy Court entered an order confirming Mirants plan of reorganization in December2005, and Mirant announced that this plan became effective in January 2006. As part of the plan, Mirant transferred substantially all of its assets and its restructured debt to a new corporation that adopted the name Mirant Corporation (Reorganized Mirant). Southern Company has certain contingent liabilities associated with guarantees of contractual commitments made by Mirants subsidiaries discussed under Guarantees in Note 7 to the financial statements of Southern Company in Item 8 of the Form 10-K and with various lawsuits related to Mirant discussed below. Also, Southern Company has joint and several liability with Mirant regarding the joint consolidated federal income tax returns through 2001, as discussed in Note5 to the financial statements of Southern Company in Item 8 of the Form 10-K. In December 2004, as a result of concl

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(C) FAIR VALUE MEASUREMENTS
	9 Months Ended Sep. 30, 2009
(C) FAIR VALUE MEASUREMENTS
Fair Value Disclosures [Text Block]	(C) FAIR VALUE MEASUREMENTS As of September 30, 2009, assets and liabilities measured at fair value on a recurring basis during the period, together with the level of the fair value hierarchy in which they fall, are as follows: Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs As of September 30, 2009: (Level 1) (Level 2) (Level 3) Total (in millions) Southern Company Assets: Energy-related derivatives $ - $ 20 $ - $ 20 Nuclear decommissioning trusts(a)(b) 681 375 - 1,056 Cash equivalents and restricted cash 499 - - 499 Other 3 48 31 82 Total $1,183 $443 $31 $1,657 Liabilities: Energy-related derivatives $- $183 $- $183 Interest rate derivatives - 12 - 12 Total $- $195 $- $195 Alabama Power Assets: Energy-related derivatives $ - $ 4 $- $ 4 Nuclear decommissioning trusts:(a) Domestic equity 275 48 - 323 U.S. Treasury and government agency securities - 18 - 18 Corporate bonds 7 55 - 62 Mortgage and asset backed securities - 48 - 48 Other - 13 - 13 Cash equivalents and restricted cash 221 - - 221 Total $503 $186 $- $689 Liabilities: Energy-related derivatives $- $51 $- $51 Interest rate derivatives - 6 - 6 Total $- $57 $- $57 Georgia Power Assets: Energy-related derivatives $ - $ 5 $- $ 5 Nuclear decommissioning trusts:(a) Domestic equity 399 1 - 400 U.S. Treasury and government agency securities - 42 - 42 Municipal bonds - 20 - 20 Corporate bonds - 96 - 96 Mortgage and asset backed securities - 26 - 26 Other - 8 - 8 Cash equivalents and restricted cash 6 - - 6 Total $405 $198 $- $603 Liabilities: Energy-related derivatives $- $71 $- $71 Interest rate derivatives - 5 - 5 Total $- $76 $- $76 Gulf Power Assets: Energy-related derivatives $ - $1 $- $ 1 Cash equivalents and restricted cash 24 - - 24 Total $24 $1 $- $25 Liabilities: Energy-related derivatives $- $16 $- $16 Interest rate derivatives - 1 - 1 Total $- $17 $- $17 Mississippi Power Assets: Energy-related derivatives $ - $2 $- $ 2 Cash equivalents 27 - - 27 Total $27 $2 $- $29 Liabilities: Energy-related derivatives $- $41 $- $41 Southern Power Assets: Energy-related d

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(D) STOCKHOLDERS' EQUITY
	1/1/2009 - 9/30/2009
(D) STOCKHOLDERS' EQUITY
Stockholders' Equity Note Disclosure [Text Block]	(D) Stockholders Equity Earnings per Share For Southern Company, the only difference in computing basic and diluted earnings per share is attributable to exercised options and outstanding options under the stock option plan. See Note 8 to the financial statements of Southern Company in Item 8 of the Form 10-K for further information on the stock option plan. The effect of the stock options was determined using the treasury stock method. Shares used to compute diluted earnings per share are as follows (in thousands): Three Months Ended September 30, 2009 Three Months Ended September 30, 2008 Nine Months Ended September 30, 2009 Nine Months Ended September 30, 2008 As reported shares 798,418 772,622 789,675 769,298 Effect of options 1,760 4,281 1,584 4,153 Diluted shares 800,178 776,903 791,259 773,451 The reduction in the effect of options for the three months and nine months ended September 30, 2009 compared to the corresponding periods in 2008 is primarily due to the anti-dilutive nature of certain stock options outstanding that have exercise prices that exceed the average stock price of Southern Company shares in the three months and nine months ended September 30, 2009. For the three months and nine months ended September 30, 2009, there were 25.5 million and 37.7 million stock options, respectively, that were not included in the diluted earnings per share calculation because they were anti-dilutive. Assuming an average stock price of $38.01 (the highest exercise price of the anti-dilutive options outstanding), the effect of options for the three months and nine months ended September 30, 2009 would have increased by 2.2 million and 3.3 million shares, respectively. Changes in Stockholders Equity The following table presents year-to-date changes in stockholders equity of Southern Company: Common Stockholders Equity Preferred and Preference Stock of Subsidiaries Total Stockholders Equity (in millions) Balance at December 31, 2008 $13,276 $707 $13,983 Net income after dividends on preferred and preference stock 1,394 - 1,394 Other comprehensive income (loss) 20 - 20 Stock issued 692 - 692 Cash dividends on common stock (1,018) - (1,018) Other (2) - (2) Balance at September 30, 2009 $14,362 $707 $15,069 Balance at December 31, 2007 $12,385 $707 $13,092 Net income after dividends on preferred and preference stock 1,556 - 1,556 Other comprehensive income (loss) 8 - 8 Stock issued 415 - 415 Cash dividends on common stock (954) - (954) Other (6) - (6) Balance at September 30, 2008 $13,404 $707 $14,111

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(E) FINANCING
	9 Months Ended Sep. 30, 2009
(E) FINANCING
Debt Disclosure [Text Block]	(E) FINANCING Bank Credit Arrangements At September 30, 2009, unused credit arrangements with banks totaled $4.7 billion, of which $99 million expires during 2009, $1.4 billion expires in 2010, $25 million expires in 2011, and $3.2 billion expires in 2012. These credit arrangements provide liquidity support to the registrants commercial paper borrowings and the traditional operating companies variable rate pollution control revenue bonds. The following table outlines the credit arrangements by company: Executable Term-Loans Expires Company Total Unused One Year Two Years 2009 2010 2011 2012 (in millions) Southern Company $ 950 $ 950 $ - $ - $ - $ - $ - $ 950 Alabama Power 1,271 1,271 372 - 20 461 25 765 Georgia Power 1,715 1,703 - 40 - 595 - 1,120 Gulf Power 220 220 70 - 60 160 - - Mississippi Power 149 149 15 44 19 130 - - Southern Power 400 400 - - - - - 400 Other 55 55 55 - - 55 - - Total $4,760 $4,748 $512 $84 $99 $1,401 $25 $3,235 Subsequent to September 30, 2009, Gulf Power and Mississippi Power renewed $40 million and $15 million, respectively, of credit facilities that were set to expire in 2009 and extended the maturity dates to 2010. Also subsequent to September 30, 2009, Mississippi Power increased an existing credit facility by $10 million. See Note 6 to the financial statements of Southern Company, Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power under Bank Credit Arrangements in Item 8 of the Form 10-K for additional information.
Schedule of Redeemable Preferred Stock [Text Block]	Changes in Redeemable Preferred Stock of Subsidiaries The following table presents year-to-date changes in redeemable preferred stock of subsidiaries for Southern Company: Redeemable Preferred Stock of Subsidiaries (in millions) Balance at December 31, 2008 $375 Issuance (Redemption) of preferred stock - Balance at September 30, 2009 $375 Balance at December 31, 2007 $498 Issuance (Redemption) of preferred stock (125) Other 2 Balance at September 30, 2008 $375
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Financial Instruments Southern Company, the traditional operating companies, and Southern Power are exposed to market risks, primarily commodity price risk and interest rate risk. To manage the volatility attributable to these exposures, each company nets its exposures, where possible, to take advantage of natural offsets and enters into various derivative transactions for the remaining exposures pursuant to the companies policies in areas such as counterparty exposure and risk management practices. The registrants policy is that derivatives are to be used primarily for hedging purposes and mandates strict adherence to all applicable risk management policies. Derivative positions are monitored using techniques including, but not limited to, market valuation, value at risk, stress testing, and sensitivity analysis. Derivative instruments are recognized at fair value in the statement of financial position as either assets or liabilities. Energy-Related Derivatives The traditional operating companies and Southern Power enter into energy-related derivatives to hedge exposures to electricity, gas, and other fuel price changes. However, due to cost-based rate regulations, the traditional operating companies have limited exposure to market volatility in commodity fuel prices and prices of electricity. Each of the traditional operating companies manages fuel-hedging programs, implemented per the guidelines of their respective state PSCs, through the use of financial derivative contracts. Southern Power also has limited exposure to market volatility in commodity fuel prices and prices of electricity because its long-term sales contracts shift substantially all fuel cost responsibility to the purchaser. However, Southern Power has been and may continue to be exposed to market volatility in energy-related commodity prices as a result of sales of uncontracted generating capacity. To mitigate residual risks relative to movements in electricity prices, the registrants enter into physical fixed-price or heat rate contracts for the purchase and sale of electricity through the wholesale electricity market. To mitigate residual risks relative to movements in gas prices, the registrants may enter into fixed-price contracts for natural gas purchases; however, a significant portion of contracts are priced at market. Energy-related derivative contracts are accounted for in one of three methods: Regulatory Hedges Energy-related derivative contracts which are designated as regulatory hedges relate primarily to the traditional operating companies fuel hedging programs, where gains and losses are initially recorded as regulatory liabilities and assets, respectively, and then are included in fuel expense as the underlying fuel is used in operations and ultimately recovered through the respective fuel cost recovery clauses. Cash Flow Hedges Gains and losses on energy-related derivatives designated as cash flow hedges, which are mainly used by Southern Power, to hedge anticipated purchases and sales are initially deferred in OCI before being recognized in income in the same period as the hedged transactions are reflected in earnings. Not Desi

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(F) RETIREMENT BENEFITS
	9 Months Ended Sep. 30, 2009
(F) RETIREMENT BENEFITS
Pension and Other Postretirement Benefits Disclosure [Text Block]	(F) RETIREMENT BENEFITS Southern Company has a defined benefit, trusteed, pension plan covering substantially all employees. The plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the plan are expected for the year ending December 31, 2009. Southern Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, Southern Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional operating companies fund related trusts to the extent required by their respective regulatory commissions. See Note 2 to the financial statements of Southern Company, Alabama Power, Georgia Power, Gulf Power, and Mississippi Power in Item 8 of the Form 10-K. Components of the pension plans and postretirement plans net periodic costs for the three-month and nine-month periods ended September 30, 2009 and 2008 are as follows (in millions): PENSION PLANS Southern Company Alabama Power Georgia Power Gulf Power Mississippi Power Three Months Ended September 30, 2009 Service cost $36 $ 8 $ 12 $ 2 $ 2 Interest cost 96 24 37 4 4 Expected return on plan assets (135) (41) (54) (6) (6) Net amortization 11 3 4 1 1 Net cost (income) $ 8 $(6) $ (1) $ 1 $ 1 Nine Months Ended September 30, 2009 Service cost $109 $25 $36 $ 5 $ 5 Interest cost 290 72 110 13 13 Expected return on plan assets (406) (123) (162) (18) (16) Net amortization 32 8 12 1 2 Net cost (income) $ 25 $(18) $(4) $ 1 $ 4 Three Months Ended September 30, 2008 Service cost $36 $ 9 $ 12 $ 2 $ 2 Interest cost 87 21 33 4 4 Expected return on plan assets (131) (40) (52) (6) (6) Net amortization 12 4 5 - 1 Net cost (income) $ 4 $(6) $ (2) $ - $ 1 Nine Months Ended September 30, 2008 Service cost $109 $26 $37 $ 5 $ 5 Interest cost 261 65 100 12 12 Expected return on plan assets (394) (120) (158) (18) (16) Net amortization 35 10 13 1 2 Net cost (income) $ 11 $(19) $(8) $ - $ 3 POSTRETIREMENT PLANS Southern Company Alabama Power Georgia Power Gulf Power Mississippi Power Three Months Ended September 30, 2009 Service cost $ 7 $ 2 $ 2 $ - $ - Interest cost 28 7 13 1 1 Expected return on plan assets (16) (6) (8) - - Net amortization 7 2 4 - 1 Net cost (income) $26 $ 5 $11

11_

(G) EFFECTIVE TAX RATE AND UNRECOGNIZED TAX BENEFITS
	9 Months Ended Sep. 30, 2009
(G) EFFECTIVE TAX RATE AND UNRECOGNIZED TAX BENEFITS
Income Tax Disclosure [Text Block]	(G) EFFECTIVE TAX RATE AND UNRECOGNIZED TAX BENEFITS Effective Tax Rate Southern Companys effective tax rate was 36.5% for the nine months ended September 30, 2009, as compared to 34.3% for the same period in 2008. See Note 5 to the financial statements of each registrant in Item 8 of the Form 10-K for information on the effective income tax rate. Southern Companys effective tax rate increased for the nine months ended September 30, 2009 primarily due to the $202 million charge recorded for the MC Asset Recovery settlement. Southern Company is currently evaluating potential recovery of the settlement payment through various means. The degree to which any recovery is realized will determine, in part, the final income tax treatment of the settlement payment. The increase in Southern Companys effective tax rate was partially offset by the early termination of an international leveraged lease investment, which is not taxable. See Note (B) herein under Mirant Matters and Income Tax Matters Leveraged Leases for further information regarding these matters. Unrecognized Tax Benefits Changes during 2009 for unrecognized tax benefits are as follows: Southern Company Alabama Power Georgia Power Gulf Power Mississippi Power Southern Power (in millions) Unrecognized tax benefits as of December 31, 2008 $146.4 $ 3.0 $ 137.1 $ 0.3 $1.8 $ 0.5 Tax positions from current periods 39.5 1.6 32.4 0.2 1.0 0.4 Tax positions from prior periods 4.7 0.3 2.8 0.4 - 0.6 Reductions due to settlements - - - - - - Reductions due to expired statute of limitations (1.0) - - - - - Balance as of September 30, 2009 $189.6 $ 4.9 $172.3 $0.9 $ 2.8 $1.5 The tax positions increase from the current periods relates primarily to the Georgia state tax credits and other miscellaneous uncertain tax positions. See Note (B) herein under Income Tax Matters Georgia State Income Tax Credits for additional information. The tax positions increase from the prior periods relates to the production activities deduction tax position. Impact on Southern Companys effective tax rate, if recognized, is as follows: Georgia Power Other Registrants As of September 30, 2009 As of December 31, 2008 Change (in millions) Tax positions impacting the effective tax rate $169.6 $17.3 $186.9 $143.5 $43.4 Tax positions not impacting the effective tax rate 2.7 - 2.7 2.9 (0.2) Balance of unrecognized tax benefits $172.3 $17.3 $189.6 $146.4 $43.2 The change in the tax positions impacting the effective tax rate increase relates primarily to the Georgia state tax credits and the production activities deduction. Accrued interest for unrecognized tax benefits: (in millions) Interest accrued as of December 31, 2008 $14.8 Interest accrued year-to-date 6.4 Interest reduction due to expired statute of limi

12_

(I) SEGMENT AND RELATED INFORMATION
	9 Months Ended Sep. 30, 2009
(I) SEGMENT AND RELATED INFORMATION
Segment Reporting Disclosure [Text Block]	(I) SEGMENT AND RELATED INFORMATION Southern Companys reportable business segments are the sale of electricity in the Southeast by the four traditional operating companies and Southern Power. Southern Powers revenues from sales to the traditional operating companies were $148 million and $421 million for the three months and nine months ended September 30, 2009, respectively, and $217 million and $494 million for the three months and nine months ended September 30, 2008, respectively. The All Other column includes parent Southern Company, which does not allocate operating expenses to business segments. Also, this category includes segments below the quantitative threshold for separate disclosure. These segments include investments in telecommunications, energy-related services, and leveraged lease projects. All other intersegment revenues are not material. Financial data for business segments and products and services are as follows: Electric Utilities Traditional Operating Companies Southern Power Eliminations Total All Other Eliminations Consolidated (in millions) Three Months Ended September 30, 2009: Operating revenues $ 4,542 $ 283 $ (168) $ 4,657 $ 43 $ (18) $ 4,682 Segment net income (loss)* 726 67 - 793 (2) (1) 790 Nine Months Ended September 30, 2009: Operating revenues $11,880 $ 745 $ (470) $12,155 $ 130 $ (52) $12,233 Segment net income (loss)* 1,449 126 - 1,575 (182) 1 1,394 Total assets at September 30, 2009 $47,401 $2,918 $ (185) $50,134 $1,061 $ (671) $50,524 Three Months Ended September 30, 2008: Operating revenues $ 5,156 $ 516 $ (276) $ 5,396 $ 46 $ (15) $ 5,427 Segment net income (loss)* 727 60 - 787 (7) - 780 Nine Months Ended September 30, 2008: Operating revenues $12,849 $1,048 $ (669) $13,228 $ 141 $ (44) $13,325 Segment net income (loss)* 1,520 124 - 1,644 (88) - 1,556 Total assets at December 31, 2008 $44,794 $2,813 $ (139) $47,468 $1,407 $ (528) $48,347 *After dividends on preferred and preference stock of subsidiaries. Products and Services Electric Utilities Revenues Period Retail Wholesale Other Total (in millions) Three Months Ended September 30, 2009 $3,997 $ 519 $141 $4,657 Three Months Ended September 30, 2008 4,479 775 142 5,396 Nine Months Ended September 30, 2009 $10,355 $1,408 $392 $12,155 Nine Months Ended September 30, 2008 10,934 1,880 414 13,228

Document Information

Document Information
	9 Months Ended Sep. 30, 2009
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
In Thousands, except Share data	9 Months Ended Sep. 30, 2009
Entity Information [Line Items]
Entity Registrant Name	SOUTHERN CO
Entity Central Index Key	0000092122
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$25,342,694
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding	800,211,378