Revenue from Contracts with Customers and Lease Income (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

The following table disaggregates revenue from contracts with customers for the three and nine months ended September 30, 2022 and 2021:


	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(a)	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(a)	2,633		708		1,451		3		461		50

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


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2021
Operating revenues
Retail electric revenues
Residential	$	1,974	$	750	$	1,138	$	86	$	—	$	—
Commercial	1,432		471		882		79		—		—
Industrial	902		394		428		80		—		—
Other	24		4		18		2		—		—
Total retail electric revenues	4,332		1,619		2,466		247		—		—
Natural gas distribution revenues
Residential	218		—		—		—		—		218
Commercial	55		—		—		—		—		55
Transportation	239		—		—		—		—		239
Industrial	6		—		—		—		—		6
Other	31		—		—		—		—		31
Total natural gas distribution revenues	549		—		—		—		—		549
Wholesale electric revenues
PPA energy revenues	359		61		41		2		261		—
PPA capacity revenues	125		14		14		1		97		—
Non-PPA revenues	63		54		3		120		134		—
Total wholesale electric revenues	547		129		58		123		492		—
Other natural gas revenues


Gas marketing services	45		—		—		—		—		45
Other natural gas revenues	11		—		—		—		—		11
Total natural gas revenues	56		—		—		—		—		56
Other revenues	248		53		112		8		9		—
Total revenue from contracts with customers	5,732		1,801		2,636		378		501		605
Other revenue sources(a)	506		103		220		—		178		18

Total operating revenues	$	6,238	$	1,904	$	2,856	$	378	$	679	$	623


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2021
Operating revenues
Retail electric revenues
Residential	$	4,910	$	1,931	$	2,765	$	214	$	—	$	—
Commercial	3,727		1,229		2,293		205		—		—
Industrial	2,299		1,048		1,034		217		—		—
Other	70		13		51		6		—		—
Total retail electric revenues	11,006		4,221		6,143		642		—		—
Natural gas distribution revenues
Residential	1,143		—		—		—		—		1,143
Commercial	298		—		—		—		—		298
Transportation	775		—		—		—		—		775
Industrial	29		—		—		—		—		29
Other	187		—		—		—		—		187
Total natural gas distribution revenues	2,432		—		—		—		—		2,432
Wholesale electric revenues
PPA energy revenues	782		143		71		9		575		—
PPA capacity revenues	375		86		41		4		247		—
Non-PPA revenues	181		108		14		283		273		—
Total wholesale electric revenues	1,338		337		126		296		1,095		—
Other natural gas revenues

Wholesale gas services	2,168		—		—		—		—		2,168
Gas marketing services	303		—		—		—		—		303
Other natural gas revenues	27		—		—		—		—		27
Total natural gas revenues	2,498		—		—		—		—		2,498
Other revenues	792		150		362		22		18		—
Total revenue from contracts with customers	18,066		4,708		6,631		960		1,113		4,930
Other revenue sources(a)	2,979		311		419		28		497		1,763
Other adjustments(b)	(3,699)		—		—		—		—		(3,699)
Total operating revenues	$	17,346	$	5,019	$	7,050	$	988	$	1,610	$	2,994

(a)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 that meet other scope exceptions for revenues from contracts with customers 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 15 to the financial statements under "Southern Company Gas" in Item 8 of the Form 10-K and Note (L) under "Southern Company Gas" for information on the sale of Sequent and components of wholesale gas services' operating revenues, respectively.

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, 2022 and December 31, 2021:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivable
At September 30, 2022	$	2,760	$	800	$	1,035	$	98	$	264	$	433
At December 31, 2021	2,504		589		736		73		149		753
Contract Assets
At September 30, 2022	$	178	$	5	$	114	$	—	$	—	$	—
At December 31, 2021	117		2		63		—		1		—
Contract Liabilities
At September 30, 2022	$	56	$	5	$	6	$	7	$	2	$	—
At December 31, 2021	57		4		14		—		1		—

Schedule of Remaining Performance Obligations

Revenues from contracts with customers related to these performance obligations remaining at September 30, 2022 are expected to be recognized as follows:


	2022 (remaining)		2023		2024		2025		2026		Thereafter
	(in millions)
Southern Company	$	243	$	619	$	434	$	322	$	307	$	2,340
Alabama Power	8		24		7		5		—		—
Georgia Power	20		70		34		22		11		21

Southern Power	80		341		344		294		299		2,334
Southern Company Gas	12		29		29		—		—		—

Schedule of Lease Income

Lease income for the three and nine months ended September 30, 2022 and 2021 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, 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

For the Three Months Ended September 30, 2021
Lease income - interest income on sales-type leases	$	4	$	—	$	—	$	4	$	—	$	—
Lease income - operating leases	56		21		11		—		21		9
Variable lease income	143		—		—		—		151		—
Total lease income	$	203	$	21	$	11	$	4	$	172	$	9

For the Nine Months Ended September 30, 2021
Lease income - interest income on sales-type leases	$	11	$	—	$	—	$	10	$	—	$	—
Lease income - operating leases	168		62		31		1		64		26
Variable lease income	355		—		—		—		379		—
Total lease income	$	534	$	62	$	31	$	11	$	443	$	26