Revenue from Contracts with Customers and Lease Income (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

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


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended June 30, 2023
Operating revenues
Retail electric revenues
Residential	$	1,647	$	648	$	928	$	71	$	—	$	—
Commercial	1,370		465		830		75		—		—
Industrial	864		429		353		82		—		—
Other	27		3		22		2		—		—
Total retail electric revenues	3,908		1,545		2,133		230		—		—
Natural gas distribution revenues
Residential	330		—		—		—		—		330
Commercial	82		—		—		—		—		82
Transportation	284		—		—		—		—		284
Industrial	6		—		—		—		—		6
Other	51		—		—		—		—		51
Total natural gas distribution revenues	753		—		—		—		—		753
Wholesale electric revenues
PPA energy revenues	253		58		24		2		175		—
PPA capacity revenues	149		44		13		2		91		—
Non-PPA revenues	61		12		6		70		83		—
Total wholesale electric revenues	463		114		43		74		349		—
Other natural gas revenues
Gas marketing services	73		—		—		—		—		73
Other natural gas revenues	8		—		—		—		—		8
Total natural gas revenues	81		—		—		—		—		81
Other revenues	327		43		145		10		16		—
Total revenue from contracts with customers	5,532		1,702		2,321		314		365		834
Other revenue sources(*)	216		(13)		70		(3)		160		18

Total operating revenues	$	5,748	$	1,689	$	2,391	$	311	$	525	$	852


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Six Months Ended June 30, 2023
Operating revenues
Retail electric revenues
Residential	$	3,174	$	1,308	$	1,730	$	136	$	—	$	—
Commercial	2,619		894		1,582		143		—		—
Industrial	1,653		827		666		160		—		—
Other	54		6		44		4		—		—
Total retail electric revenues	7,500		3,035		4,022		443		—		—
Natural gas distribution revenues
Residential	1,226		—		—		—		—		1,226
Commercial	314		—		—		—		—		314
Transportation	603		—		—		—		—		603
Industrial	29		—		—		—		—		29
Other	168		—		—		—		—		168
Total natural gas distribution revenues	2,340		—		—		—		—		2,340
Wholesale electric revenues
PPA energy revenues	534		129		35		5		376		—
PPA capacity revenues	341		105		25		34		179		—
Non-PPA revenues	98		32		10		178		187		—
Total wholesale electric revenues	973		266		70		217		742		—
Other natural gas revenues

Gas marketing services	304		—		—		—		—		304
Other natural gas revenues	20		—		—		—		—		20
Total natural gas revenues	324		—		—		—		—		324
Other revenues	640		103		276		22		27		—
Total revenue from contracts with customers	11,777		3,404		4,368		682		769		2,664
Other revenue sources(*)	451		(68)		199		20		264		64

Total operating revenues	$	12,228	$	3,336	$	4,567	$	702	$	1,033	$	2,728


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended June 30, 2022
Operating revenues
Retail electric revenues
Residential	$	1,655	$	617	$	962	$	76	$	—	$	—
Commercial	1,387		410		900		77		—		—
Industrial	1,005		368		553		84		—		—
Other	25		3		20		2		—		—
Total retail electric revenues	4,072		1,398		2,435		239		—		—
Natural gas distribution revenues
Residential	474		—		—		—		—		474
Commercial	130		—		—		—		—		130
Transportation	276		—		—		—		—		276
Industrial	16		—		—		—		—		16
Other	67		—		—		—		—		67
Total natural gas distribution revenues	963		—		—		—		—		963
Wholesale electric revenues
PPA energy revenues	585		108		40		5		441		—
PPA capacity revenues	136		40		12		—		85		—
Non-PPA revenues	62		35		6		169		196		—
Total wholesale electric revenues	783		183		58		174		722		—
Other natural gas revenues
Gas marketing services	90		—		—		—		—		90
Other natural gas revenues	10		—		—		—		—		10
Total natural gas revenues	100		—		—		—		—		100
Other revenues	308		63		121		9		9		—
Total revenue from contracts with customers	6,226		1,644		2,614		422		731		1,063
Other revenue sources(*)	980		287		507		12		168		20

Total operating revenues	$	7,206	$	1,931	$	3,121	$	434	$	899	$	1,083


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Six Months Ended June 30, 2022
Operating revenues
Retail electric revenues
Residential	$	3,179	$	1,250	$	1,783	$	146	$	—	$	—
Commercial	2,567		786		1,638		143		—		—
Industrial	1,732		691		887		154		—		—
Other	51		7		40		4		—		—
Total retail electric revenues	7,529		2,734		4,348		447		—		—
Natural gas distribution revenues
Residential	1,490		—		—		—		—		1,490
Commercial	400		—		—		—		—		400
Transportation	613		—		—		—		—		613
Industrial	48		—		—		—		—		48
Other	195		—		—		—		—		195
Total natural gas distribution revenues	2,746		—		—		—		—		2,746
Wholesale electric revenues
PPA energy revenues	930		168		72		8		694		—
PPA capacity revenues	268		78		23		3		166		—
Non-PPA revenues	124		99		15		271		269		—
Total wholesale electric revenues	1,322		345		110		282		1,129		—
Other natural gas revenues

Gas marketing services	333		—		—		—		—		333
Other natural gas revenues	26		—		—		—		—		26
Total natural gas revenues	359		—		—		—		—		359
Other revenues	530		109		216		17		17		—
Total revenue from contracts with customers	12,486		3,188		4,674		746		1,146		3,105
Other revenue sources(*)	1,368		392		654		23		292		35

Total operating revenues	$	13,854	$	3,580	$	5,328	$	769	$	1,438	$	3,140

(*)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.

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 June 30, 2023 and December 31, 2022:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivable
At June 30, 2023	$	2,423	$	670	$	986	$	101	$	126	$	461
At December 31, 2022	3,123		696		922		92		237		1,107
Contract Assets
At June 30, 2023	$	167	$	—	$	73	$	—	$	—	$	30
At December 31, 2022	156		2		89		—		—		—
Contract Liabilities
At June 30, 2023	$	73	$	1	$	28	$	3	$	1	$	—
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 June 30, 2023 are expected to be recognized as follows:


	2023 (remaining)		2024		2025		2026		2027		Thereafter
	(in millions)
Southern Company	$	333	$	544	$	351	$	316	$	319	$	2,089
Alabama Power	11		8		7		—		—		—
Georgia Power	43		58		28		14		14		23

Southern Power	188		358		302		303		310		2,077
Southern Company Gas	11		29		—		—		—		—

Schedule of Lease Income

Lease income for the three and six months ended June 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 June 30, 2023
Lease income - interest income on sales-type leases	$	6	$	—	$	—	$	4	$	2	$	—
Lease income - operating leases	42		11		7		1		21		9
Variable lease income	123		—		—		—		132		—
Total lease income	$	171	$	11	$	7	$	5	$	155	$	9

For the Six Months Ended June 30, 2023
Lease income - interest income on sales-type leases	$	12	$	—	$	—	$	7	$	5	$	—
Lease income - operating leases	92		29		14		2		42		18
Variable lease income	192		—		—		—		207		—
Total lease income	$	296	$	29	$	14	$	9	$	254	$	18

For the Three Months Ended June 30, 2022
Lease income - interest income on sales-type leases	$	7	$	—	$	—	$	4	$	3	$	—
Lease income - operating leases	52		19		8		—		21		9
Variable lease income	129		—		—		—		138		—
Total lease income	$	188	$	19	$	8	$	4	$	162	$	9

For the Six Months Ended June 30, 2022
Lease income - interest income on sales-type leases	$	13	$	—	$	—	$	8	$	5	$	—
Lease income - operating leases	105		39		16		1		42		18
Variable lease income	211		—		—		—		227		—
Total lease income	$	329	$	39	$	16	$	9	$	274	$	18