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Revenue from Contracts with Customers and Lease Income
 9 Months Ended
Sep. 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 nine months ended September 30, 2024 and 2023:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended September 30, 2024
Operating revenues
Retail electric revenues
Residential$2,651 $975 $1,580 $96 $— $— 
Commercial1,991 607 1,288 96 — — 
Industrial1,184 483 606 95 — — 
Other33 3 28 2 — — 
Total retail electric revenues5,859 2,068 3,502 289 — — 
Natural gas distribution revenues
Residential212 — — — — 212 
Commercial55 — — — — 55 
Transportation294 — — — — 294 
Industrial 4 — — — — 4 
Other45 — — — — 45 
Total natural gas distribution revenues610 — — — — 610 
Wholesale electric revenues
PPA energy revenues300 58 26 1 222 — 
PPA capacity revenues190 24 42 15 125 — 
Non-PPA revenues67 34 — 106 67 — 
Total wholesale electric revenues557 116 68 122 414 — 
Other natural gas revenues
Gas marketing services51 — — — — 51 
Other
6 — — — — 6 
Total other natural gas revenues
57 — — — — 57 
Other revenues398 60 170 13 9 — 
Total revenue from contracts with customers7,481 2,244 3,740 424 423 667 
Other revenue sources(*)
(207)(106)(268)(12)177 15 
Total operating revenues$7,274 $2,138 $3,472 $412 $600 $682 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Nine Months Ended September 30, 2024
Operating revenues
Retail electric revenues
Residential$6,551 $2,477 $3,832 $242 $— $— 
Commercial5,075 1,583 3,243 249 — — 
Industrial3,019 1,338 1,424 257 — — 
Other94 9 78 7 — — 
Total retail electric revenues14,739 5,407 8,577 755 — — 
Natural gas distribution revenues
Residential1,244 — — — — 1,244 
Commercial300 — — — — 300 
Transportation959 — — — — 959 
Industrial 25 — — — — 25 
Other221 — — — — 221 
Total natural gas distribution revenues2,749 — — — — 2,749 
Wholesale electric revenues
PPA energy revenues838 171 66 3 616 — 
PPA capacity revenues495 71 106 47 320 — 
Non-PPA revenues179 103 3 292 176 — 
Total wholesale electric revenues1,512 345 175 342 1,112 — 
Other natural gas revenues
Gas marketing services352 — — — — 352 
Other
16 — — — — 16 
Total other natural gas revenues
368 — — — — 368 
Other revenues1,145 174 507 34 31 — 
Total revenue from contracts with customers20,513 5,926 9,259 1,131 1,143 3,117 
Other revenue sources(*)
(130)(123)(514)(13)454 103 
Total operating revenues$20,383 $5,803 $8,745 $1,118 $1,597 $3,220 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended September 30, 2023
Operating revenues
Retail electric revenues
Residential$2,543 $969 $1,473 $101 $— $— 
Commercial1,845 599 1,151 95 — — 
Industrial1,116 498 528 90 — — 
Other30 3 25 2 — — 
Total retail electric revenues5,534 2,069 3,177 288 — — 
Natural gas distribution revenues
Residential217 — — — — 217 
Commercial56 — — — — 56 
Transportation275 — — — — 275 
Industrial 4 — — — — 4 
Other60 — — — — 60 
Total natural gas distribution revenues612 — — — — 612 
Wholesale electric revenues
PPA energy revenues317 66 31 2 226 — 
PPA capacity revenues151 26 13 3 110 — 
Non-PPA revenues101 15 21 137 126 — 
Total wholesale electric revenues569 107 65 142 462 — 
Other natural gas revenues
Gas marketing services54 — — — — 54 
Other
8 — — — — 8 
Total other natural gas revenues
62 — — — — 62 
Other revenues330 54 146 10 18 — 
Total revenue from contracts with customers7,107 2,230 3,388 440 480 674 
Other revenue sources(*)
(127)(147)(151)(4)173 15 
Total operating revenues$6,980 $2,083 $3,237 $436 $653 $689 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Nine Months Ended September 30, 2023
Operating revenues
Retail electric revenues
Residential$5,717 $2,277 $3,202 $238 $— $— 
Commercial4,464 1,493 2,733 238 — — 
Industrial2,770 1,324 1,195 251 — — 
Other84 10 68 6 — — 
Total retail electric revenues13,035 5,104 7,198 733 — — 
Natural gas distribution revenues
Residential1,443 — — — — 1,443 
Commercial370 — — — — 370 
Transportation878 — — — — 878 
Industrial 33 — — — — 33 
Other228 — — — — 228 
Total natural gas distribution revenues2,952 — — — — 2,952 
Wholesale electric revenues
PPA energy revenues853 196 66 8 601 — 
PPA capacity revenues490 130 38 36 289 — 
Non-PPA revenues199 49 30 315 312 — 
Total wholesale electric revenues1,542 375 134 359 1,202 — 
Other natural gas revenues
Gas marketing services358 — — — — 358 
Other
28 — — — — 28 
Total other natural gas revenues
386 — — — — 386 
Other revenues971 159 422 31 46 — 
Total revenue from contracts with customers18,886 5,638 7,754 1,123 1,248 3,338 
Other revenue sources(*)
322 (218)51 14 438 79 
Total operating revenues$19,208 $5,420 $7,805 $1,137 $1,686 $3,417 
(*)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 September 30, 2024 and December 31, 2023:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Accounts Receivable
At September 30, 2024$2,946 $978 $1,347 $111 $125 $306 
At December 31, 20232,820 821 1,011 90 122 684 
Contract Assets
At September 30, 2024$379 $7 $202 $— $— $71 
At December 31, 2023271 2 121 — — 56 
Contract Liabilities
At September 30, 2024$181 $— $49 $— $2 $3 
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 September 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 September 30, 2024 and December 31, 2023, Southern Company's unregulated distributed generation business had contract assets of $102 million and $91 million, respectively, and contract liabilities of $132 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 nine months ended September 30, 2024, which were included in contract liabilities at December 31, 2023, were $20 million and $97 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 September 30, 2024 are expected to be recognized as follows:
2024 (remaining)2025202620272028Thereafter
(in millions)
Southern Company$303 $884 $375 $336 $325 $2,180 
Alabama Power11 11 — — — — 
Georgia Power21 64 26 17 17 17 
Mississippi Power(*)
15 63 66 69 73 — 
Southern Power(*)
73 312 299 306 297 2,169 
Southern Company Gas3 2 — — — — 
(*)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 nine months ended September 30, 2024 and 2023 is as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
For the Three Months Ended September 30, 2024
Lease income - interest income on sales-type leases$5 $— $— $3 $2 $— 
Lease income - operating leases38 2 13 — 20 9 
Variable lease income142 — — — 152 — 
Total lease income$185 $2 $13 $3 $174 $9 
For the Nine Months Ended September 30, 2024
Lease income - interest income on sales-type leases$18 $— $— $11 $7 $— 
Lease income - operating leases108 6 28 2 63 27 
Variable lease income343 — — — 370 — 
Total lease income$469 $6 $28 $13 $440 $27 
For the Three Months Ended September 30, 2023
Lease income - interest income on sales-type leases$6 $— $— $4 $2 $— 
Lease income - operating leases36 3 7 — 21 9 
Variable lease income134 — — — 144 — 
Total lease income$176 $3 $7 $4 $167 $9 
For the Nine Months Ended September 30, 2023
Lease income - interest income on sales-type leases$18 $— $— $11 $7 $— 
Lease income - operating leases129 32 22 2 64 27 
Variable lease income327 1 — — 351 — 
Total lease income$474 $33 $22 $13 $422 $27 
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