LEASES (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Leases [Abstract] |
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| Major categories of lease obligations |
The major categories of lease obligations are as follows: | | | | | | | | | | | | | | | | | | | | | | Southern
Company | Alabama
Power | Georgia
Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | At December 31, 2024 | | | | | | | Electric generating units(*) | $ | 672 | | $ | 56 | | $ | 1,509 | | $ | — | | $ | — | | $ | — | | | Real estate/land | 834 | | 3 | | 45 | | 2 | | 540 | | 20 | | | Communication towers | 118 | | 2 | | 4 | | — | | — | | 21 | | | Railcars | 64 | | 31 | | 29 | | 4 | | — | | — | | | Other | 52 | | 2 | | 2 | | 16 | | — | | — | | | Total | $ | 1,740 | | $ | 94 | | $ | 1,589 | | $ | 22 | | $ | 540 | | $ | 41 | | | | | | | | | | At December 31, 2023 | | | | | | | Electric generating units(*) | $ | 670 | | $ | 58 | | $ | 1,028 | | $ | — | | $ | — | | $ | — | | | Real estate/land | 871 | | 4 | | 54 | | 2 | | 546 | | 28 | | | Communication towers | 123 | | 1 | | 4 | | — | | — | | 23 | | | Railcars | 64 | | 32 | | 27 | | 5 | | — | | — | | | Other | 60 | | 3 | | 2 | | 18 | | — | | — | | | Total | $ | 1,788 | | $ | 98 | | $ | 1,115 | | $ | 25 | | $ | 546 | | $ | 51 | |
(*)Amounts related to affiliate leases are eliminated in consolidation for Southern Company. See "Contracts that Contain a Lease" herein for additional information.
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| Balance sheet amounts recorded for operating and financing leases |
Balance sheet amounts recorded for operating and finance leases are as follows: | | | | | | | | | | | | | | | | | | | | | | Southern Company | Alabama
Power | Georgia
Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | At December 31, 2024 | | | | | | | | Operating Leases | | | | | | | | Operating lease ROU assets, net | $ | 1,386 | | $ | 84 | | $ | 1,331 | | $ | 8 | | $ | 484 | | $ | 38 | | | | | | | | | | Operating lease obligations - current | $ | 200 | | $ | 14 | | $ | 169 | | $ | 4 | | $ | 29 | | $ | 11 | | | Operating lease obligations - non-current | 1,253 | | 76 | | 1,159 | | 4 | | 511 | | 30 | | Total operating lease obligations(*) | $ | 1,453 | | $ | 90 | | $ | 1,328 | | $ | 8 | | $ | 540 | | $ | 41 | | | | | | | | | | Finance Leases | | | | | | | | Finance lease ROU assets, net | $ | 254 | | $ | 4 | | $ | 227 | | $ | 14 | | $ | — | | $ | — | | | | | | | | | | Finance lease obligations - current | $ | 9 | | $ | 1 | | $ | 20 | | $ | 1 | | $ | — | | $ | — | | | Finance lease obligations - non-current | 278 | | 3 | | 241 | | 13 | | — | | — | | | Total finance lease obligations | $ | 287 | | $ | 4 | | $ | 261 | | $ | 14 | | $ | — | | $ | — | | | | | | | | | | At December 31, 2023 | | | | | | | | Operating Leases | | | | | | | | Operating lease ROU assets, net | $ | 1,432 | | $ | 87 | | $ | 884 | | $ | 9 | | $ | 488 | | $ | 47 | | | | | | | | | | Operating lease obligations - current | $ | 183 | | $ | 12 | | $ | 135 | | $ | 3 | | $ | 29 | | $ | 11 | | | Operating lease obligations - non-current | 1,307 | | 81 | | 740 | | 6 | | 517 | | 40 | | Total operating lease obligations(*) | $ | 1,490 | | $ | 93 | | $ | 875 | | $ | 9 | | $ | 546 | | $ | 51 | | | | | | | | | | Finance Leases | | | | | | | | Finance lease ROU assets, net | $ | 272 | | $ | 5 | | $ | 203 | | $ | 15 | | $ | — | | $ | — | | | | | | | | | | Finance lease obligations - current | $ | 11 | | $ | 2 | | $ | 18 | | $ | 1 | | $ | — | | $ | — | | | Finance lease obligations - non-current | 287 | | 3 | | 222 | | 15 | | — | | — | | | Total finance lease obligations | $ | 298 | | $ | 5 | | $ | 240 | | $ | 16 | | $ | — | | $ | — | |
(*)Includes operating lease obligations related to PPAs at Southern Company, Alabama Power, and Georgia Power totaling $567 million, $55 million, and $1.3 billion, respectively, at December 31, 2024 and $566 million, $58 million, and $813 million, respectively, at December 31, 2023.
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| Lease costs and other information |
Lease costs for 2024, 2023, and 2022, which includes both amounts recognized as operations and maintenance expense and amounts capitalized as part of the cost of another asset, are as follows: | | | | | | | | | | | | | | | | | | | | | | Southern
Company | Alabama
Power | Georgia
Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | 2024 | | | | | | | Lease cost | | | | | | | Operating lease cost(*) | $ | 248 | | $ | 19 | | $ | 190 | | $ | 4 | | $ | 27 | | $ | 12 | | | Finance lease cost: | | | | | | | | Amortization of ROU assets | 20 | | 2 | | 23 | | 1 | | — | | — | | | Interest on lease obligations | 15 | | — | | 15 | | 1 | | — | | — | | | Total finance lease cost | 35 | | 2 | | 38 | | 2 | | — | | — | | | Short-term lease costs | 37 | | 15 | | 15 | | — | | — | | — | | | Variable lease cost | 48 | | (1) | | 77 | | — | | 4 | | — | | | | | | | | | | Total lease cost | $ | 368 | | $ | 35 | | $ | 320 | | $ | 6 | | $ | 31 | | $ | 12 | | | | | | | | | | 2023 | | | | | | | | Lease cost | | | | | | | Operating lease cost(*) | $ | 252 | | $ | 16 | | $ | 192 | | $ | 5 | | $ | 34 | | $ | 12 | | | Finance lease cost: | | | | | | | | Amortization of ROU assets | 24 | | 2 | | 19 | | 1 | | — | | — | | | Interest on lease obligations | 14 | | — | | 17 | | — | | — | | — | | | Total finance lease cost | 38 | | 2 | | 36 | | 1 | | — | | — | | | Short-term lease costs | 40 | | 16 | | 16 | | — | | — | | — | | | Variable lease cost | 47 | | — | | 74 | | — | | 4 | | — | | | | | | | | | | Total lease cost | $ | 377 | | $ | 34 | | $ | 318 | | $ | 6 | | $ | 38 | | $ | 12 | | | | | | | | | | 2022 | | | | | | | | Lease cost | | | | | | | Operating lease cost(*) | $ | 297 | | $ | 59 | | $ | 198 | | $ | 5 | | $ | 32 | | $ | 15 | | | Finance lease cost: | | | | | | | | Amortization of ROU assets | 23 | | 1 | | 15 | | 1 | | — | | — | | | Interest on lease obligations | 13 | | — | | 17 | | 1 | | — | | — | | | Total finance lease cost | 36 | | 1 | | 32 | | 2 | | — | | — | | | Short-term lease costs | 64 | | 44 | | 13 | | — | | — | | — | | | Variable lease cost | 125 | | 13 | | 105 | | — | | 5 | | — | | | Sublease income | (1) | | — | | — | | — | | — | | — | | | Total lease cost | $ | 521 | | $ | 117 | | $ | 348 | | $ | 7 | | $ | 37 | | $ | 15 | |
(*)Includes operating lease costs related to PPAs at Southern Company, Alabama Power, and Georgia Power totaling $108 million, $5 million, and $168 million, respectively, in 2024, $112 million, $4 million, and $174 million, respectively, in 2023, and $162 million, $48 million, and $180 million, respectively, in 2022. Other information with respect to cash and noncash activities related to leases, as well as weighted-average lease terms and discount rates, is as follows: | | | | | | | | | | | | | | | | | | | | | | Southern
Company | Alabama
Power | Georgia
Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | 2024 | | | | | | | | Other information | | | | | | | | Cash paid for amounts included in the measurements of lease obligations: | | | | | | | | Operating cash flows from operating leases | $ | 243 | | $ | 19 | | $ | 186 | | $ | 4 | | $ | 33 | | $ | 12 | | | Operating cash flows from finance leases | 15 | | — | | 21 | | — | | — | | — | | | Financing cash flows from finance leases | 11 | | 2 | | 23 | | 1 | | — | | — | | | ROU assets obtained under operating leases | 146 | | 11 | | 609 | | — | | 10 | | 1 | | | Reassessment of ROU assets under operating leases | (7) | | — | | — | | — | | (7) | | — | | | ROU assets obtained under finance leases | 1 | | — | | 44 | | — | | — | | — | | | | | | | | | | 2023 | | | | | | | | Other information | | | | | | | | Cash paid for amounts included in the measurements of lease obligations: | | | | | | | | Operating cash flows from operating leases | $ | 253 | | $ | 17 | | $ | 199 | | $ | 5 | | $ | 33 | | $ | 12 | | | Operating cash flows from finance leases | 15 | | — | | 22 | | — | | — | | — | | | Financing cash flows from finance leases | 18 | | 2 | | 16 | | 1 | | — | | — | | | ROU assets obtained under operating leases | 100 | | 30 | | 26 | | 1 | | 7 | | 7 | | | | | | | | | | ROU assets obtained under finance leases | 3 | | 3 | | 18 | | — | | — | | — | | | | | | | | | | 2022 | | | | | | | | Other information | | | | | | | | Cash paid for amounts included in the measurements of lease obligations: | | | | | | | | Operating cash flows from operating leases | $ | 303 | | $ | 58 | | $ | 206 | | $ | 5 | | $ | 30 | | $ | 14 | | | Operating cash flows from finance leases | 11 | | — | | 20 | | 1 | | — | | — | | | Financing cash flows from finance leases | 16 | | 1 | | 10 | | 1 | | — | | — | | | ROU assets obtained under operating leases | 56 | | 10 | | 17 | | 9 | | — | | 3 | | | Reassessment of ROU assets under operating leases | 16 | | — | | — | | — | | 16 | | — | | | ROU assets obtained under finance leases | 118 | | 2 | | 116 | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | Southern
Company | Alabama
Power | Georgia
Power | Mississippi
Power | Southern Power | Southern Company Gas | | At December 31, 2024 | | | | | | | | Weighted-average remaining lease term in years: | | | | | | | | Operating leases | 16.4 | 10.2 | 7.9 | 4.3 | 32.3 | 6.8 | | Finance leases | 16.0 | 2.7 | 10.1 | 10.9 | N/A | N/A | | Weighted-average discount rate: | | | | | | | | Operating leases | 4.73 | % | 5.04 | % | 4.73 | % | 3.83 | % | 4.88 | % | 3.84 | % | | Finance leases | 4.86 | % | 4.05 | % | 5.8 | % | 2.74 | % | N/A | N/A | | | | | | | | | At December 31, 2023 | | | | | | | | Weighted-average remaining lease term in years: | | | | | | | | Operating leases | 17.2 | 11.1 | 7.5 | 4.6 | 33.1 | 7.0 | | Finance leases | 16.7 | 4.3 | 10.6 | 11.9 | N/A | N/A | | Weighted-average discount rate: | | | | | | | | Operating leases | 4.68 | % | 5.02 | % | 4.58 | % | 3.67 | % | 4.89 | % | 3.80 | % | | Finance leases | 4.85 | % | 3.93 | % | 5.95 | % | 2.74 | % | N/A | N/A |
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| Maturities of operating lease liabilities |
Maturities of lease liabilities are as follows: | | | | | | | | | | | | | | | | | | | | | | At December 31, 2024 | | Southern
Company | Alabama
Power | Georgia
Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | Maturity Analysis | | | | | | | | Operating leases: | | | | | | | | 2025 | $ | 239 | | $ | 18 | | $ | 228 | | $ | 4 | | $ | 31 | | $ | 12 | | | 2026 | 212 | | 15 | | 224 | | 3 | | 29 | | 9 | | | 2027 | 190 | | 12 | | 223 | | 1 | | 29 | | 4 | | | 2028 | 170 | | 9 | | 217 | | — | | 29 | | 3 | | | 2029 | 138 | | 7 | | 196 | | — | | 30 | | 4 | | | Thereafter | 1,255 | | 56 | | 511 | | 1 | | 978 | | 15 | | | Total | 2,204 | | 117 | | 1,599 | | 9 | | 1,126 | | 47 | | | Less: Present value discount | 751 | | 27 | | 271 | | 1 | | 586 | | 6 | | | Operating lease obligations | $ | 1,453 | | $ | 90 | | $ | 1,328 | | $ | 8 | | $ | 540 | | $ | 41 | | | Finance leases: | | | | | | | | 2025 | $ | 28 | | $ | 2 | | $ | 39 | | $ | 2 | | $ | — | | $ | — | | | 2026 | 27 | | 1 | | 41 | | 2 | | — | | — | | | 2027 | 26 | | 1 | | 41 | | 1 | | — | | — | | | 2028 | 25 | | — | | 42 | | 1 | | — | | — | | | 2029 | 25 | | — | | 42 | | 1 | | — | | — | | | Thereafter | 290 | | — | | 139 | | 9 | | — | | — | | | Total | 421 | | 4 | | 344 | | 16 | | — | | — | | | Less: Present value discount | 134 | | — | | 83 | | 2 | | — | | — | | | Finance lease obligations | $ | 287 | | $ | 4 | | $ | 261 | | $ | 14 | | $ | — | | $ | — | |
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| Maturities of finance lease liabilities |
Maturities of lease liabilities are as follows: | | | | | | | | | | | | | | | | | | | | | | At December 31, 2024 | | Southern
Company | Alabama
Power | Georgia
Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | Maturity Analysis | | | | | | | | Operating leases: | | | | | | | | 2025 | $ | 239 | | $ | 18 | | $ | 228 | | $ | 4 | | $ | 31 | | $ | 12 | | | 2026 | 212 | | 15 | | 224 | | 3 | | 29 | | 9 | | | 2027 | 190 | | 12 | | 223 | | 1 | | 29 | | 4 | | | 2028 | 170 | | 9 | | 217 | | — | | 29 | | 3 | | | 2029 | 138 | | 7 | | 196 | | — | | 30 | | 4 | | | Thereafter | 1,255 | | 56 | | 511 | | 1 | | 978 | | 15 | | | Total | 2,204 | | 117 | | 1,599 | | 9 | | 1,126 | | 47 | | | Less: Present value discount | 751 | | 27 | | 271 | | 1 | | 586 | | 6 | | | Operating lease obligations | $ | 1,453 | | $ | 90 | | $ | 1,328 | | $ | 8 | | $ | 540 | | $ | 41 | | | Finance leases: | | | | | | | | 2025 | $ | 28 | | $ | 2 | | $ | 39 | | $ | 2 | | $ | — | | $ | — | | | 2026 | 27 | | 1 | | 41 | | 2 | | — | | — | | | 2027 | 26 | | 1 | | 41 | | 1 | | — | | — | | | 2028 | 25 | | — | | 42 | | 1 | | — | | — | | | 2029 | 25 | | — | | 42 | | 1 | | — | | — | | | Thereafter | 290 | | — | | 139 | | 9 | | — | | — | | | Total | 421 | | 4 | | 344 | | 16 | | — | | — | | | Less: Present value discount | 134 | | — | | 83 | | 2 | | — | | — | | | Finance lease obligations | $ | 287 | | $ | 4 | | $ | 261 | | $ | 14 | | $ | — | | $ | — | |
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| Lease income, operating leases |
Lease income for 2024, 2023, and 2022, is as follows: | | | | | | | | | | | | | | | | | | | | | | Southern
Company | Alabama Power | Georgia Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | 2024 | | | | | | | | Lease income - interest income on sales-type leases | $ | 24 | | $ | — | | $ | — | | $ | 15 | | $ | 9 | | $ | — | | | Lease income - operating leases | 136 | | 9 | | 28 | | 3 | | 88 | | 36 | | | Variable lease income | 417 | | 1 | | — | | — | | 450 | | — | | | Total lease income | $ | 577 | | $ | 10 | | $ | 28 | | $ | 18 | | $ | 547 | | $ | 36 | | | | | | | | | | 2023 | | | | | | | | Lease income - interest income on sales-type leases | $ | 24 | | $ | — | | $ | — | | $ | 14 | | $ | 10 | | $ | — | | | Lease income - operating leases | 164 | | 35 | | 29 | | 2 | | 85 | | 37 | | | Variable lease income | 406 | | 1 | | — | | — | | 437 | | — | | | Total lease income | $ | 594 | | $ | 36 | | $ | 29 | | $ | 16 | | $ | 532 | | $ | 37 | | | | | | | | | | 2022 | | | | | | | | Lease income - interest income on sales-type leases | $ | 25 | | $ | — | | $ | — | | $ | 15 | | $ | 10 | | $ | — | | | Lease income - operating leases | 208 | | 77 | | 32 | | 2 | | 85 | | 36 | | | Variable lease income | 417 | | 1 | | — | | — | | 448 | | — | | | Total lease income | $ | 650 | | $ | 78 | | $ | 32 | | $ | 17 | | $ | 543 | | $ | 36 | |
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| Lease income, sales-type leases and Power Purchase Agreements |
Lease income for 2024, 2023, and 2022, is as follows: | | | | | | | | | | | | | | | | | | | | | | Southern
Company | Alabama Power | Georgia Power | Mississippi
Power | Southern Power | Southern Company Gas | | | (in millions) | | 2024 | | | | | | | | Lease income - interest income on sales-type leases | $ | 24 | | $ | — | | $ | — | | $ | 15 | | $ | 9 | | $ | — | | | Lease income - operating leases | 136 | | 9 | | 28 | | 3 | | 88 | | 36 | | | Variable lease income | 417 | | 1 | | — | | — | | 450 | | — | | | Total lease income | $ | 577 | | $ | 10 | | $ | 28 | | $ | 18 | | $ | 547 | | $ | 36 | | | | | | | | | | 2023 | | | | | | | | Lease income - interest income on sales-type leases | $ | 24 | | $ | — | | $ | — | | $ | 14 | | $ | 10 | | $ | — | | | Lease income - operating leases | 164 | | 35 | | 29 | | 2 | | 85 | | 37 | | | Variable lease income | 406 | | 1 | | — | | — | | 437 | | — | | | Total lease income | $ | 594 | | $ | 36 | | $ | 29 | | $ | 16 | | $ | 532 | | $ | 37 | | | | | | | | | | 2022 | | | | | | | | Lease income - interest income on sales-type leases | $ | 25 | | $ | — | | $ | — | | $ | 15 | | $ | 10 | | $ | — | | | Lease income - operating leases | 208 | | 77 | | 32 | | 2 | | 85 | | 36 | | | Variable lease income | 417 | | 1 | | — | | — | | 448 | | — | | | Total lease income | $ | 650 | | $ | 78 | | $ | 32 | | $ | 17 | | $ | 543 | | $ | 36 | |
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| Undiscounted cash flows to be received under tolling arrangements accounted for as sales-type leases |
The undiscounted cash flows expected to be received for in-service leased assets under the leases are as follows: | | | | | | | | | | | | | At December 31, 2024 | | Southern Company | Mississippi Power | Southern
Power | | | (in millions) | | 2025 | $ | 52 | | $ | 24 | | $ | 15 | | | 2026 | 38 | | 23 | | 15 | | | 2027 | 37 | | 22 | | 15 | | | 2028 | 36 | | 21 | | 15 | | | 2029 | 35 | | 20 | | 15 | | | Thereafter | 302 | | 132 | | 170 | | | Total undiscounted cash flows | $ | 500 | | $ | 242 | | $ | 245 | | Net investment in sales-type lease(*) | 297 | | 139 | | 158 | | | Difference between undiscounted cash flows and discounted cash flows | $ | 203 | | $ | 103 | | $ | 87 | |
(*)For Mississippi Power, included in other current assets ($10 million and $10 million at December 31, 2024 and 2023, respectively) and other property and investments ($129 million and $138 million at December 31, 2024 and 2023, respectively) on the balance sheets. For Southern Power, included in other current assets ($15 million and $15 million at December 31, 2024 and 2023, respectively) and net investment in sales-type leases ($143 million and $148 million at December 31, 2024 and 2023, respectively) on the balance sheets.
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| Undiscounted cash flows to be received under PPAs accounted for as operating leases |
The undiscounted cash flows to be received under operating leases and contracts accounted for as operating leases are as follows: | | | | | | | | | | | | | | | | | At December 31, 2024 | | Southern
Company | Alabama
Power | | Southern
Power | Southern Company Gas | | | (in millions) | | 2025 | $ | 117 | | $ | 6 | | | $ | 142 | | $ | 35 | | | 2026 | 111 | | 5 | | | 148 | | 29 | | | 2027 | 109 | | 4 | | | 150 | | 28 | | | 2028 | 109 | | 4 | | | 161 | | 28 | | | 2029 | 112 | | 3 | | | 164 | | 28 | | | Thereafter | 621 | | 31 | | | 506 | | 326 | | | Total | $ | 1,179 | | $ | 53 | | | $ | 1,271 | | $ | 474 | |
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