Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables disaggregate revenue sources for the three and nine months ended September 30, 2019 and 2018:

	For the Three Months Ended September 30,  2019		For the Three Months Ended September 30, 2018		For the Nine Months Ended September 30, 2019		For the Nine Months Ended September 30,  2018
	(in millions)
Southern Company
Operating revenues
Retail electric revenues(a)
Residential	$	2,056	$	2,148	$	4,832	$	5,266
Commercial	1,508		1,527		3,859		4,084
Industrial	916		901		2,356		2,471
Other	32		29		89		92
Natural gas distribution revenues(b)	445		433		2,169		2,299
Alternative revenue programs(c)	—		5		—		(23		)
Total retail electric and gas distribution revenues	$	4,957	$	5,043	$	13,305	$	14,189
Wholesale energy revenues(d)(e)	477		521		1,254		1,458
Wholesale capacity revenues(e)	148		177		413		479
Other natural gas revenues(f)(g)	53		54		492		530
Other revenues(h)	360		364		1,041		1,502
Total operating revenues	$	5,995	$	6,159	$	16,505	$	18,158

(a) Retail electric revenues include $8 million, $17 million, $24 million, and $54 million of revenues accounted for as leases for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, and a net increase/(reduction) of $(155) million, $(98) million, $(272) million, and $4 million for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, from certain cost recovery mechanisms that are not accounted for as revenue under ASC 606.

(b) Natural gas distribution revenues include $3 million for each of the three months ended September 30, 2019 and 2018 and $11 million for each of the nine months ended September 30, 2019 and 2018 of revenues not accounted for under ASC 606.

(c) Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.

(d) Wholesale energy revenues include $28 million, $63 million, $109 million, and $217 million of revenues accounted for as derivatives for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, primarily related to physical energy sales in the wholesale electricity market.

(e) Wholesale energy revenues include $141 million, $130 million, $324 million, and $318 million for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, and wholesale capacity revenues include $15 million, $31 million, $62 million, and $92 million for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, related to PPAs accounted for as leases.

(f) Other natural gas revenues related to Southern Company Gas' energy and risk management activities are presented net of the related costs of those activities and include gross third-party revenues of $1.1 billion, $1.6 billion, $4.3 billion, and $4.8 billion for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, of which $0.7 billion, $0.9 billion, $2.7 billion, and $2.7 billion, respectively, relates to contracts that are accounted for as derivatives. See Note (M) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues.

(g) Other natural gas revenues include $10 million and $37 million for the three and nine months ended September 30, 2019, respectively, of revenues not accounted for under ASC 606, including $8 million and $24 million, respectively, of revenues accounted for as leases.

(h) Other revenues include $93 million, $92 million, $278 million, and $274 million for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, of revenues not accounted for under ASC 606, including $33 million, $35 million, $104 million, and $106 million, respectively, accounted for as leases.

	Alabama Power		Georgia Power		Mississippi Power
	(in millions)
For the Three Months Ended September 30, 2019
Operating revenues
Retail revenues(a)(b)
Residential	$	796	$	1,174	$	86
Commercial	493		932		83
Industrial	398		439		79
Other	7		22		3
Total retail electric revenues	$	1,694	$	2,567	$	251
Wholesale energy revenues(c)	48		25		114
Wholesale capacity revenues	25		14		1
Other revenues(b)(d)	74		149		4
Total operating revenues	$	1,841	$	2,755	$	370
For the Three Months Ended September 30, 2018
Operating revenues
Retail revenues(a)(b)
Residential	$	721	$	1,142	$	85
Commercial	464		877		82
Industrial	392		385		86
Other	7		21		1
Total retail electric revenues	$	1,584	$	2,425	$	254
Wholesale energy revenues(c)	62		33		97
Wholesale capacity revenues	26		14		1
Other revenues(b)(d)	68		121		6
Total operating revenues	$	1,740	$	2,593	$	358

(a) Retail revenues at Alabama Power, Georgia Power, and Mississippi Power include a net reduction of $(64) million, $(83) million, and $(8) million, respectively, for the three months ended September 30, 2019 and $(12) million, $(47) million, and $(3) million, respectively, for the three months ended September 30, 2018 related to certain cost recovery mechanisms that are not accounted for as revenue under ASC 606.

(b) Retail revenues and other revenues at Georgia Power include $8 million and $10 million, respectively, for the three months ended September 30, 2019 and $17 million and $34 million, respectively, for the three months ended September 30, 2018 of revenues accounted for as leases.

(c) Wholesale energy revenues at Alabama Power, Georgia Power, and Mississippi Power include $3 million, $4 million, and $1 million, respectively, for the three months ended September 30, 2019 and $6 million, $8 million, and $1 million, respectively, for the three months ended September 30, 2018 accounted for as derivatives primarily related to physical energy sales in the wholesale electricity market.

(d) Other revenues at Alabama Power and Georgia Power include $36 million and $26 million, respectively, for the three months ended September 30, 2019 and $27 million and $28 million, respectively, for the three months ended September 30, 2018 of revenues not accounted for under ASC 606.

	Alabama Power		Georgia Power		Mississippi Power
	(in millions)
For the Nine Months Ended September 30, 2019
Operating revenues
Retail revenues(a)(b)
Residential	$	1,923	$	2,693	$	216
Commercial	1,266		2,372		221
Industrial	1,077		1,055		224
Other	20		61		8
Total retail electric revenues	$	4,286	$	6,181	$	669
Wholesale energy revenues(c)	183		66		285
Wholesale capacity revenues	77		41		2
Other revenues(b)(d)	216		418		14
Total operating revenues	$	4,762	$	6,706	$	970
For the Nine Months Ended September 30, 2018
Operating revenues
Retail revenues(a)(b)
Residential	$	1,848	$	2,671	$	209
Commercial	1,238		2,343		212
Industrial	1,103		1,036		233
Other	19		62		6
Total retail electric revenues	$	4,208	$	6,112	$	660
Wholesale energy revenues(c)	234		99		272
Wholesale capacity revenues	75		41		6
Other revenues(b)(d)	199		349		18
Total operating revenues	$	4,716	$	6,601	$	956

(a) Retail revenues at Alabama Power, Georgia Power, and Mississippi Power include a net increase/(reduction) of $(132) million, $(135) million, and $(5) million, respectively, for the nine months ended September 30, 2019 and $113 million, $(35) million, and $(11) million, respectively, for the nine months ended September 30, 2018 related to certain cost recovery mechanisms that are not accounted for as revenue under ASC 606.

(b) Retail revenues and other revenues at Georgia Power include $24 million and $33 million, respectively, for the nine months ended September 30, 2019 and $54 million and $100 million, respectively, for the nine months ended September 30, 2018 of revenues accounted for as leases.

(c) Wholesale energy revenues at Alabama Power, Georgia Power, and Mississippi Power include $8 million, $12 million, and $2 million, respectively, for the nine months ended September 30, 2019 and $14 million, $21 million, and $3 million, respectively, for the nine months ended September 30, 2018 accounted for as derivatives primarily related to physical energy sales in the wholesale electricity market.

(d)

Other revenues at Alabama Power and Georgia Power include $95 million and $88 million, respectively, for the nine months ended September 30, 2019 and $79 million and $80 million, respectively, for the nine months ended September 30, 2018 of revenues not accounted for under ASC 606.

	For the Three Months Ended September 30, 2019		For the Three Months Ended September 30, 2018		For the Nine Months Ended September 30, 2019		For the Nine Months Ended September 30, 2018
	(in millions)
Southern Power
PPA capacity revenues(a)	$	131	$	168	$	384	$	450
PPA energy revenues(a)	339		336		857		892
Non-PPA revenues(b)	101		126		276		347
Other revenues	3		5		10		10
Total operating revenues	$	574	$	635	$	1,527	$	1,699

(a) PPA capacity revenues include $31 million, $47 million, $111 million, and $141 million for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, and PPA energy revenues include $151 million, $139 million, $349 million, and $342 million for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, related to PPAs accounted for as leases.

(b)

Non-PPA revenues include $20 million, $47 million, $87 million, and $176 million for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, of revenues from short-term sales related to physical energy sales from uncovered capacity in the wholesale electricity market.

	For the Three Months Ended September 30, 2019			For the Three Months Ended September 30, 2018			For the Nine Months Ended September 30, 2019		For the Nine Months Ended September 30, 2018
	(in millions)
Southern Company Gas
Operating revenues
Natural gas distribution revenues(a)
Residential	$	162		$	149		$	992	$	1,082
Commercial	42			45			277		313
Transportation	204			203			673		708
Industrial	3			4			25		28
Other	34			32			202		168
Alternative revenue programs(b)	—			5			—		(23		)
Total natural gas distribution revenues	$	445		$	438		$	2,169	$	2,276
Gas pipeline investments(c)	8			8			24		24
Wholesale gas services(d)	(4		)	(10		)	110		121
Gas marketing services(e)	39			44			326		403
Other revenues	10			12			32		37
Total operating revenues	$	498		$	492		$	2,661	$	2,861

(a) Natural gas distribution revenues include $3 million for each of the three months ended September 30, 2019 and 2018 and $11 million for each of the nine months ended September 30, 2019 and 2018 of revenues not accounted for under ASC 606.

(b) Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.

(c) Revenues from gas pipeline investments include $8 million and $24 million for the three and nine months ended September 30, 2019, respectively, accounted for as leases.

(d) Wholesale gas services revenues are presented net of the related costs associated with its energy trading and risk management activities. Operating revenues, as presented, include gross third-party revenues of $1.1 billion, $1.6 billion, $4.3 billion, and $4.8 billion for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively, of which $0.7 billion, $0.9 billion, $2.7 billion, and $2.7 billion, respectively, relates to contracts accounted for as derivatives. See Note (M) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues.

(e)

Gas marketing services include $2 million for the three months ended September 30, 2019 and $13 million and $4 million for the nine months ended September 30, 2019 and 2018, respectively, of revenues not accounted for under ASC 606.

Contract with Customer, Asset and Liability and Revenue Recognized

The following table reflects revenue from contracts with customers recognized in the three and nine months ended September 30, 2019 included in the contract liability at December 31, 2018:

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
	(in millions)
Southern Company	$	4	$	29
Southern Power	—		11

The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers as of September 30, 2019 and December 31, 2018:

	Receivables				Contract Assets				Contract Liabilities
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
	(in millions)
Southern Company	$	2,523	$	2,630	$	132	$	102	$	58	$	32
Alabama Power	713		520		2		—		12		12
Georgia Power	993		721		91		58		15		7
Mississippi Power	94		100		—		—		6		—
Southern Power	132		118		—		—		3		11
Southern Company Gas	441		952		—		—		1		2

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

Registrants with revenues from contracts with customers related to these performance obligations remaining at September 30, 2019 expect the revenues to be recognized as follows:

	2019 (remaining)		2020		2021		2022		2023		Thereafter
	(in millions)
Southern Company	$	138	$	419	$	345	$	326	$	317	$	2,256
Alabama Power	6		23		27		23		22		140
Georgia Power	15		56		47		31		32		83
Southern Power	61		309		291		290		283		2,180