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Revenue from Contracts with Customers and Lease Income
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers and Lease Income REVENUE FROM CONTRACTS WITH CUSTOMERS AND LEASE INCOME
Revenue from Contracts with Customers
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. Included in the wholesale electric revenues of the traditional electric operating companies and Southern Power are revenues associated with affiliate transactions. These revenues are generated through long-term PPAs or short-term energy sales made in accordance with the IIC, as approved by the FERC. Amounts related to these affiliate revenues are eliminated in consolidation for Southern Company. See Note 1 to the financial statements under "Revenues" and "Affiliate Transactions" in Item 8 of the Form 10-K for additional information. See "Lease Income" herein and Note (J) for additional information on revenue accounted for under lease and derivative accounting guidance, respectively.
The following table disaggregates revenue from contracts with customers for the three and six months ended June 30, 2024 and 2023:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended June 30, 2024
Operating revenues
Retail electric revenues
Residential$2,049 $736 $1,236 $77 $— $— 
Commercial1,613 508 1,023 82 — — 
Industrial962 445 434 83 — — 
Other30 3 25 2 — — 
Total retail electric revenues4,654 1,692 2,718 244 — — 
Natural gas distribution revenues
Residential287 — — — — 287 
Commercial69 — — — — 69 
Transportation304 — — — — 304 
Industrial 5 — — — — 5 
Other63 — — — — 63 
Total natural gas distribution revenues728 — — — — 728 
Wholesale electric revenues
PPA energy revenues265 55 22 1 192 — 
PPA capacity revenues153 23 32 15 99 — 
Non-PPA revenues54 27 2 95 50 — 
Total wholesale electric revenues472 105 56 111 341 — 
Other natural gas revenues
Gas marketing services68 — — — — 68 
Other
6 — — — — 6 
Total other natural gas revenues
74 — — — — 74 
Other revenues419 62 185 10 11 — 
Total revenue from contracts with customers6,347 1,859 2,959 365 352 802 
Other revenue sources(*)
116 14 (84)(1)172 29 
Total operating revenues$6,463 $1,873 $2,875 $364 $524 $831 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Six Months Ended June 30, 2024
Operating revenues
Retail electric revenues
Residential$3,900 $1,501 $2,252 $147 $— $— 
Commercial3,084 976 1,955 153 — — 
Industrial1,834 855 817 162 — — 
Other60 6 50 4 — — 
Total retail electric revenues8,878 3,338 5,074 466 — — 
Natural gas distribution revenues
Residential1,032 — — — — 1,032 
Commercial245 — — — — 245 
Transportation666 — — — — 666 
Industrial 21 — — — — 21 
Other176 — — — — 176 
Total natural gas distribution revenues2,140 — — — — 2,140 
Wholesale electric revenues
PPA energy revenues537 112 40 2 394 — 
PPA capacity revenues304 46 64 31 196 — 
Non-PPA revenues112 68 2 187 110 — 
Total wholesale electric revenues953 226 106 220 700 — 
Other natural gas revenues
Gas marketing services300 — — — — 300 
Other
11 — — — — 11 
Total other natural gas revenues
311 — — — — 311 
Other revenues746 114 337 22 21 — 
Total revenue from contracts with customers13,028 3,678 5,517 708 721 2,451 
Other revenue sources(*)
81 (14)(244)(2)276 87 
Total operating revenues$13,109 $3,664 $5,273 $706 $997 $2,538 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended June 30, 2023
Operating revenues
Retail electric revenues
Residential$1,647 $648 $928 $71 $— $— 
Commercial1,370 465 830 75 — — 
Industrial864 429 353 82 — — 
Other27 3 22 2 — — 
Total retail electric revenues3,908 1,545 2,133 230 — — 
Natural gas distribution revenues
Residential330 — — — — 330 
Commercial82 — — — — 82 
Transportation284 — — — — 284 
Industrial 6 — — — — 6 
Other51 — — — — 51 
Total natural gas distribution revenues753 — — — — 753 
Wholesale electric revenues
PPA energy revenues253 58 24 2 175 — 
PPA capacity revenues149 44 13 2 91 — 
Non-PPA revenues61 12 6 70 83 — 
Total wholesale electric revenues463 114 43 74 349 — 
Other natural gas revenues
Gas marketing services73 — — — — 73 
Other
8 — — — — 8 
Total other natural gas revenues
81 — — — — 81 
Other revenues327 43 145 10 16 — 
Total revenue from contracts with customers5,532 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 CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Six Months Ended June 30, 2023
Operating revenues
Retail electric revenues
Residential$3,174 $1,308 $1,730 $136 $— $— 
Commercial2,619 894 1,582 143 — — 
Industrial1,653 827 666 160 — — 
Other54 6 44 4 — — 
Total retail electric revenues7,500 3,035 4,022 443 — — 
Natural gas distribution revenues
Residential1,226 — — — — 1,226 
Commercial314 — — — — 314 
Transportation603 — — — — 603 
Industrial 29 — — — — 29 
Other168 — — — — 168 
Total natural gas distribution revenues2,340 — — — — 2,340 
Wholesale electric revenues
PPA energy revenues534 129 35 5 376 — 
PPA capacity revenues341 105 25 34 179 — 
Non-PPA revenues98 32 10 178 187 — 
Total wholesale electric revenues973 266 70 217 742 — 
Other natural gas revenues
Gas marketing services304 — — — — 304 
Other
20 — — — — 20 
Total other natural gas revenues
324 — — — — 324 
Other revenues640 103 276 22 27 — 
Total revenue from contracts with customers11,777 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 
(*)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 (including those related to fuel costs) that meet other scope exceptions for revenues from contracts with customers at the traditional electric operating companies.
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, 2024 and December 31, 2023:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Accounts Receivable
At June 30, 2024$3,090 $864 $1,448 $102 $141 $387 
At December 31, 20232,820 821 1,011 90 122 684 
Contract Assets
At June 30, 2024$304 $— $130 $— $— $67 
At December 31, 2023271 2 121 — — 56 
Contract Liabilities
At June 30, 2024$235 $2 $42 $— $1 $— 
At December 31, 2023116 — 1 — 4 — 
Contract assets for Georgia Power primarily relate to retail customer fixed bill programs, where the payment is contingent upon Georgia Power's continued performance and the customer's continued participation in the program over a one-year contract term, and unregulated service agreements, where payment is contingent on project completion. Contract liabilities for Georgia Power primarily relate to cash collections recognized in advance of revenue for unregulated service agreements. Southern Company Gas' contract assets relate to work performed on an energy efficiency enhancement and upgrade contract with the U.S. General Services Administration. Southern Company Gas receives cash advances from a third-party financial institution to fund work performed, of which approximately $68 million had been received at June 30, 2024. These advances have been accounted for as long-term debt on the balance sheets. See Note 1 to the financial statements under "Affiliate Transactions" in Item 8 of the Form 10-K for additional information regarding the construction contract. At June 30, 2024 and December 31, 2023, Southern Company's unregulated distributed generation business had contract assets of $118 million and $91 million, respectively, and contract liabilities of $190 million and $115 million, respectively, for outstanding performance obligations, all of which are expected to be satisfied within one year.
Revenues recognized in the three and six months ended June 30, 2024, which were included in contract liabilities at December 31, 2023, were $52 million and $77 million, respectively, for Southern Company and immaterial for the other Registrants. Contract liabilities are primarily classified as current on the balance sheets as the corresponding revenues are generally expected to be recognized within one year.
Remaining Performance Obligations
Southern Company's subsidiaries may enter into long-term contracts with customers in which revenues are recognized as performance obligations are satisfied over the contract term. For the traditional electric operating companies and Southern Power, these contracts primarily relate to PPAs whereby electricity and generation capacity are provided 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. For Southern Company Gas, these contracts primarily relate to the U.S. General Services Administration contract described above. 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 June 30, 2024 are expected to be recognized as follows:
2024 (remaining)2025202620272028Thereafter
(in millions)
Southern Company$641 $931 $374 $336 $325 $2,180 
Alabama Power12 12 — — — — 
Georgia Power41 57 21 17 17 17 
Mississippi Power(*)
30 63 66 69 73 — 
Southern Power(*)
196 312 299 306 297 2,169 
Southern Company Gas9 — — — — — 
(*)Includes performance obligations related to affiliate PPAs with Georgia Power. See Note 1 to the financial statements under "Affiliate Transactions" in Item 8 of the Form 10-K for additional information.
Lease Income
Lease income for the three and six months ended June 30, 2024 and 2023 is as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
For the Three Months Ended June 30, 2024
Lease income - interest income on sales-type leases$7 $— $— $5 $2 $— 
Lease income - operating leases35 2 9 1 22 9 
Variable lease income129 — — — 139 — 
Total lease income$171 $2 $9 $6 $163 $9 
For the Six Months Ended June 30, 2024
Lease income - interest income on sales-type leases$14 $— $— $9 $5 $— 
Lease income - operating leases71 5 16 2 43 18 
Variable lease income201 — — — 218 — 
Total lease income$286 $5 $16 $11 $266 $18 
For the Three Months Ended June 30, 2023
Lease income - interest income on sales-type leases$6 $— $— $4 $2 $— 
Lease income - operating leases42 11 7 1 21 9 
Variable lease income123 — — — 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 leases92 29 14 2 42 18 
Variable lease income192 — — — 207 — 
Total lease income$296 $29 $14 $9 $254 $18 
Lease payments received under tolling arrangements and PPAs consist of either scheduled payments or variable payments based on the amount of energy produced by the underlying electric generating units. Lease income related to PPAs is included in wholesale revenues for Alabama Power, Georgia Power, and Southern Power