REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

The Registrants generate revenues from a variety of sources, some of which are not accounted for as revenue from contracts with customers, such as leases, derivatives, and certain cost recovery mechanisms. ASC 606 became effective on January 1, 2018 and the Registrants adopted it using the modified retrospective method applied to open contracts and only to the version of contracts in effect as of January 1, 2018. In accordance with the modified retrospective method, the Registrants' previously issued financial statements have not been restated to comply with ASC 606 and the Registrants did not have a cumulative-effect adjustment to retained earnings. See Note 1 under "Revenues" for additional information on the revenue policies of the Registrants. See Notes 9 and 14 for additional information on revenue accounted for under lease and derivative accounting guidance, respectively.

The following tables disaggregate revenue from contracts with customers for 2019 and 2018:



2019	Southern Company			Alabama Power			Georgia Power			Mississippi Power			Southern Power		Southern Company Gas
	(in millions)
Operating revenues
Retail electric revenues
Residential	$	6,164		$	2,509		$	3,377		$	278		$	—	$	—
Commercial	5,065			1,677			3,097			291			—		—
Industrial	3,126			1,460			1,360			306			—		—
Other	90			25			54			11			—		—
Total retail electric revenues	14,445			5,671			7,888			886			—		—
Natural gas distribution revenues
Residential	1,413			—			—			—			—		1,413
Commercial	389			—			—			—			—		389
Transportation	907			—			—			—			—		907
Industrial	35			—			—			—			—		35
Other	245			—			—			—			—		245
Total natural gas distribution revenues	2,989			—			—			—			—		2,989
Wholesale electric revenues
PPA energy revenues	833			145			60			11			648		—
PPA capacity revenues	453			102			54			3			322		—
Non-PPA revenues	232			81			9			352			238		—
Total wholesale electric revenues	1,518			328			123			366			1,208		—
Other natural gas revenues
Gas pipeline investments	32			—			—			—			—		32
Wholesale gas services	2,095			—			—			—			—		2,095
Gas marketing services	440			—			—			—			—		440
Other natural gas revenues	42			—			—			—			—		42
Total natural gas revenues	2,609			—			—			—			—		2,609
Other revenues	1,035			153			407			19			12		—
Total revenue from contracts with customers	22,596			6,152			8,418			1,271			1,220		5,598
Other revenue sources^(a)	4,266			(27		)	(10		)	(7		)	718		3,637
Other adjustments^(b)	(5,443		)	—			—			—			—		(5,443		)
Total operating revenues	$	21,419		$	6,125		$	8,408		$	1,264		$	1,938	$	3,792


(a)	Other revenue sources primarily relate to revenues from customers accounted for as derivatives and leases, as well as alternative revenues program at Southern Company Gas and other cost recovery mechanisms at the traditional electric operating companies.


(b)	Other adjustments relate to the cost of Southern Company Gas' energy and risk management activities. Wholesale gas services revenues are presented net of the related costs of those activities on the statement of income. See Note 16 under "Southern Company Gas" for additional information on the components of wholesale gas services' operating revenues.



2018	Southern Company			Alabama Power		Georgia Power		Mississippi Power			Southern Power		Southern Company Gas
	(in millions)
Operating revenues
Retail electric revenues
Residential	$	6,586		$	2,285	$	3,295	$	277		$	—	$	—
Commercial	5,255			1,541		3,025		290			—		—
Industrial	3,152			1,364		1,321		326			—		—
Other	94			25		56		9			—		—
Total retail electric revenues	15,087			5,215		7,697		902			—		—
Natural gas distribution revenues
Residential	1,525			—		—		—			—		1,525
Commercial	436			—		—		—			—		436
Transportation	944			—		—		—			—		944
Industrial	40			—		—		—			—		40
Other	230			—		—		—			—		230
Total natural gas distribution revenues	3,175			—		—		—			—		3,175
Wholesale electric revenues
PPA energy revenues	950			158		81		15			727		—
PPA capacity revenues	498			101		53		6			394		—
Non-PPA revenues	263			119		24		329			230		—
Total wholesale electric revenues	1,711			378		158		350			1,351		—
Other natural gas revenues
Gas pipeline investments	32			—		—		—			—		32
Wholesale gas services	3,083			—		—		—			—		3,083
Gas marketing services	571			—		—		—			—		571
Other natural gas revenues	53			—		—		—			—		53
Total other natural gas revenues	3,739			—		—		—			—		3,739
Other revenues	1,529			210		236		22			13		—
Total revenue from contracts with customers	25,241			5,803		8,091		1,274			1,364		6,914
Other revenue sources^(a)	5,108			229		329		(9		)	841		3,849
Other adjustments^(b)	(6,854		)	—		—		—			—		(6,854		)
Total operating revenues	$	23,495		$	6,032	$	8,420	$	1,265		$	2,205	$	3,909


(a)	Other revenue sources primarily relate to revenues from customers accounted for as derivatives and leases, as well as alternative revenues program at Southern Company Gas and other cost recovery mechanisms at the traditional electric operating companies.

(b)

Other adjustments relate to the cost of Southern Company Gas' energy and risk management activities. Wholesale gas services revenues are presented net of the related costs of those activities on the statement of income. See Note 16 under "Southern Company Gas" for additional information on the components of wholesale gas services' operating revenues.

Contract Balances

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



	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivables
As of December 31, 2019	$	2,413	$	586	$	688	$	79	$	97	$	749
As of December 31, 2018	2,630		520		721		100		118		952
Contract Assets
As of December 31, 2019	$	117	$	—	$	69	$	—	$	—	$	—
As of December 31, 2018	102		—		58		—		—		—
Contract Liabilities
As of December 31, 2019	$	52	$	10	$	13	$	—	$	1	$	1
As of December 31, 2018	32		12		7		—		11		2

As of December 31, 2019 and 2018, Georgia Power had contract assets primarily related to fixed retail customer bill programs, where the payment is contingent upon Georgia Power's continued performance and the customer's continued participation in the program over the one-year contract term, and unregulated service agreements, where payment is contingent on project completion. Alabama Power had contract liabilities for outstanding performance obligations primarily related to extended service agreements. Contract liabilities for Georgia Power and Southern Power relate to cash collections recognized in advance of revenue for certain unregulated service agreements and certain levelized PPAs, respectively. Southern Company's unregulated distributed generation business had contract assets of $40 million and $39 million at December 31, 2019 and 2018, respectively, and contract liabilities of $28 million and $11 million at December 31, 2019 and 2018, respectively, for outstanding performance obligations.

The following table reflects revenue from contracts with customers recognized in 2019 included in the contract liability at December 31, 2018:



	Southern Company		Alabama Power		Georgia Power		Southern Power		Southern Company Gas
	(in millions)
Revenue Recognized
2019	$	30	$	11	$	6	$	11	$	2

Remaining Performance Obligations

The traditional electric operating companies and Southern Power have long-term contracts with customers in which revenues are recognized as performance obligations are satisfied over the contract term. These contracts primarily relate to PPAs whereby the traditional electric operating companies and Southern Power provide electricity and generation capacity to a customer. The revenue recognized for the delivery of electricity is variable; however, certain PPAs include a fixed payment for fixed generation capacity over the term of the contract. Southern Company's unregulated distributed generation business also has partially satisfied performance obligations related to certain fixed price contracts. Revenues from contracts with customers related to these performance obligations remaining at December 31, 2019 are expected to be recognized as follows:



	2020		2021		2022		2023		2024		2025 and Thereafter
	(in millions)
Southern Company	$	490	$	430	$	336	$	324	$	323	$	2,108
Alabama Power	21		25		22		22		22		118
Georgia Power	60		49		32		32		23		61
Southern Power	287		280		281		271		279		1,948

Revenue expected to be recognized for performance obligations remaining at December 31, 2019 was immaterial for Mississippi Power.