Revenue from Contracts with Customers and Lease Income (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

The following table disaggregates revenue from contracts with customers for the three and nine months ended September 30, 2023 and 2022:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2023
Operating revenues
Retail electric revenues
Residential	$	2,543	$	969	$	1,473	$	101	$	—	$	—
Commercial	1,845		599		1,151		95		—		—
Industrial	1,116		498		528		90		—		—
Other	30		3		25		2		—		—
Total retail electric revenues	5,534		2,069		3,177		288		—		—
Natural gas distribution revenues
Residential	217		—		—		—		—		217
Commercial	56		—		—		—		—		56
Transportation	275		—		—		—		—		275
Industrial	4		—		—		—		—		4
Other	60		—		—		—		—		60
Total natural gas distribution revenues	612		—		—		—		—		612
Wholesale electric revenues
PPA energy revenues	317		66		31		2		226		—
PPA capacity revenues	151		26		13		3		110		—
Non-PPA revenues	101		15		21		137		126		—
Total wholesale electric revenues	569		107		65		142		462		—
Other natural gas revenues
Gas marketing services	54		—		—		—		—		54
Other natural gas revenues	8		—		—		—		—		8
Total natural gas revenues	62		—		—		—		—		62
Other revenues	330		54		146		10		18		—
Total revenue from contracts with customers	7,107		2,230		3,388		440		480		674
Other revenue sources(*)	(127)		(147)		(151)		(4)		173		15

Total operating revenues	$	6,980	$	2,083	$	3,237	$	436	$	653	$	689


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2023
Operating revenues
Retail electric revenues
Residential	$	5,717	$	2,277	$	3,202	$	238	$	—	$	—
Commercial	4,464		1,493		2,733		238		—		—
Industrial	2,770		1,324		1,195		251		—		—
Other	84		10		68		6		—		—
Total retail electric revenues	13,035		5,104		7,198		733		—		—
Natural gas distribution revenues
Residential	1,443		—		—		—		—		1,443
Commercial	370		—		—		—		—		370
Transportation	878		—		—		—		—		878
Industrial	33		—		—		—		—		33
Other	228		—		—		—		—		228
Total natural gas distribution revenues	2,952		—		—		—		—		2,952
Wholesale electric revenues
PPA energy revenues	853		196		66		8		601		—
PPA capacity revenues	490		130		38		36		289		—
Non-PPA revenues	199		49		30		315		312		—
Total wholesale electric revenues	1,542		375		134		359		1,202		—
Other natural gas revenues

Gas marketing services	358		—		—		—		—		358
Other natural gas revenues	28		—		—		—		—		28
Total natural gas revenues	386		—		—		—		—		386
Other revenues	971		159		422		31		46		—
Total revenue from contracts with customers	18,886		5,638		7,754		1,123		1,248		3,338
Other revenue sources(*)	322		(218)		51		14		438		79

Total operating revenues	$	19,208	$	5,420	$	7,805	$	1,137	$	1,686	$	3,417


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2022
Operating revenues
Retail electric revenues
Residential	$	2,104	$	799	$	1,212	$	93	$	—	$	—
Commercial	1,637		499		1,051		87		—		—
Industrial	1,183		452		642		89		—		—
Other	27		3		22		2		—		—
Total retail electric revenues	4,951		1,753		2,927		271		—		—
Natural gas distribution revenues
Residential	331		—		—		—		—		331
Commercial	93		—		—		—		—		93
Transportation	259		—		—		—		—		259
Industrial	12		—		—		—		—		12
Other	49		—		—		—		—		49
Total natural gas distribution revenues	744		—		—		—		—		744
Wholesale electric revenues
PPA energy revenues	812		187		40		4		591		—
PPA capacity revenues	175		56		12		1		107		—
Non-PPA revenues	58		67		4		242		303		—
Total wholesale electric revenues	1,045		310		56		247		1,001		—
Other natural gas revenues
Gas marketing services	84		—		—		—		—		84
Other natural gas revenues	15		—		—		—		—		15
Total natural gas revenues	99		—		—		—		—		99
Other revenues	277		65		110		13		9		—
Total revenue from contracts with customers	7,116		2,128		3,093		531		1,010		843
Other revenue sources(*)	1,262		316		796		(21)		170		14

Total operating revenues	$	8,378	$	2,444	$	3,889	$	510	$	1,180	$	857


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2022
Operating revenues
Retail electric revenues
Residential	$	5,282	$	2,049	$	2,995	$	238	$	—	$	—
Commercial	4,202		1,285		2,688		229		—		—
Industrial	2,914		1,143		1,529		242		—		—
Other	79		10		62		7		—		—
Total retail electric revenues	12,477		4,487		7,274		716		—		—
Natural gas distribution revenues
Residential	1,821		—		—		—		—		1,821
Commercial	493		—		—		—		—		493
Transportation	872		—		—		—		—		872
Industrial	60		—		—		—		—		60
Other	244		—		—		—		—		244
Total natural gas distribution revenues	3,490		—		—		—		—		3,490
Wholesale electric revenues
PPA energy revenues	1,739		354		112		11		1,285		—
PPA capacity revenues	443		135		35		4		273		—
Non-PPA revenues	182		166		19		511		572		—
Total wholesale electric revenues	2,364		655		166		526		2,130		—
Other natural gas revenues

Gas marketing services	417		—		—		—		—		417
Other natural gas revenues	41		—		—		—		—		41
Total natural gas revenues	458		—		—		—		—		458
Other revenues	810		173		327		34		27		—
Total revenue from contracts with customers	19,599		5,315		7,767		1,276		2,157		3,948
Other revenue sources(*)	2,633		708		1,451		3		461		50

Total operating revenues	$	22,232	$	6,023	$	9,218	$	1,279	$	2,618	$	3,998

(*)Other revenue sources relate to revenues from customers accounted for as derivatives and leases, alternative revenue programs at Southern Company Gas, and cost recovery mechanisms and revenues (including those related to fuel costs) that meet other scope exceptions for revenues from contracts with customers at the traditional electric operating companies.

Schedule of Contract Balances

The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers at September 30, 2023 and December 31, 2022:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivable
At September 30, 2023	$	2,680	$	858	$	1,175	$	106	$	138	$	331
At December 31, 2022	3,123		696		922		92		237		1,107
Contract Assets
At September 30, 2023	$	267	$	6	$	146	$	—	$	—	$	41
At December 31, 2022	156		2		89		—		—		—
Contract Liabilities
At September 30, 2023	$	62	$	—	$	8	$	2	$	8	$	—
At December 31, 2022	45		4		9		—		1		—

Schedule of Remaining Performance Obligations

Revenues from contracts with customers related to these performance obligations remaining at September 30, 2023 are expected to be recognized as follows:


	2023 (remaining)		2024		2025		2026		2027		Thereafter
	(in millions)
Southern Company	$	166	$	599	$	359	$	318	$	319	$	2,245
Alabama Power	10		24		8		—		—		—
Georgia Power	23		66		34		14		14		23

Southern Power	84		356		302		303		310		2,233
Southern Company Gas	4		29		—		—		—		—

Schedule of Lease Income

Lease income for the three and nine months ended September 30, 2023 and 2022 is as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
For the Three Months Ended September 30, 2023
Lease income - interest income on sales-type leases	$	6	$	—	$	—	$	4	$	2	$	—
Lease income - operating leases	36		3		7		—		21		9
Variable lease income	134		—		—		—		144		—
Total lease income	$	176	$	3	$	7	$	4	$	167	$	9

For the Nine Months Ended September 30, 2023
Lease income - interest income on sales-type leases	$	18	$	—	$	—	$	11	$	7	$	—
Lease income - operating leases	129		32		22		2		64		27
Variable lease income	327		1		—		—		351		—
Total lease income	$	474	$	33	$	22	$	13	$	422	$	27

For the Three Months Ended September 30, 2022
Lease income - interest income on sales-type leases	$	7	$	—	$	—	$	4	$	3	$	—
Lease income - operating leases	50		19		8		1		21		9
Variable lease income	139		—		—		—		145		—
Total lease income	$	196	$	19	$	8	$	5	$	169	$	9

For the Nine Months Ended September 30, 2022
Lease income - interest income on sales-type leases	$	19	$	—	$	—	$	11	$	8	$	—
Lease income - operating leases	149		58		24		1		64		27
Variable lease income	355		1		—		—		372		—
Total lease income	$	523	$	59	$	24	$	12	$	444	$	27