Revenue from Contracts with Customers and Lease Income (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

The following table disaggregates revenue from contracts with customers for the three and nine months ended September 30, 2024 and 2023:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2024
Operating revenues
Retail electric revenues
Residential	$	2,651	$	975	$	1,580	$	96	$	—	$	—
Commercial	1,991		607		1,288		96		—		—
Industrial	1,184		483		606		95		—		—
Other	33		3		28		2		—		—
Total retail electric revenues	5,859		2,068		3,502		289		—		—
Natural gas distribution revenues
Residential	212		—		—		—		—		212
Commercial	55		—		—		—		—		55
Transportation	294		—		—		—		—		294
Industrial	4		—		—		—		—		4
Other	45		—		—		—		—		45
Total natural gas distribution revenues	610		—		—		—		—		610
Wholesale electric revenues
PPA energy revenues	300		58		26		1		222		—
PPA capacity revenues	190		24		42		15		125		—
Non-PPA revenues	67		34		—		106		67		—
Total wholesale electric revenues	557		116		68		122		414		—
Other natural gas revenues
Gas marketing services	51		—		—		—		—		51
Other	6		—		—		—		—		6
Total other natural gas revenues	57		—		—		—		—		57
Other revenues	398		60		170		13		9		—
Total revenue from contracts with customers	7,481		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 Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2024
Operating revenues
Retail electric revenues
Residential	$	6,551	$	2,477	$	3,832	$	242	$	—	$	—
Commercial	5,075		1,583		3,243		249		—		—
Industrial	3,019		1,338		1,424		257		—		—
Other	94		9		78		7		—		—
Total retail electric revenues	14,739		5,407		8,577		755		—		—
Natural gas distribution revenues
Residential	1,244		—		—		—		—		1,244
Commercial	300		—		—		—		—		300
Transportation	959		—		—		—		—		959
Industrial	25		—		—		—		—		25
Other	221		—		—		—		—		221
Total natural gas distribution revenues	2,749		—		—		—		—		2,749
Wholesale electric revenues
PPA energy revenues	838		171		66		3		616		—
PPA capacity revenues	495		71		106		47		320		—
Non-PPA revenues	179		103		3		292		176		—
Total wholesale electric revenues	1,512		345		175		342		1,112		—
Other natural gas revenues
Gas marketing services	352		—		—		—		—		352
Other	16		—		—		—		—		16
Total other natural gas revenues	368		—		—		—		—		368
Other revenues	1,145		174		507		34		31		—
Total revenue from contracts with customers	20,513		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 Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2023
Operating revenues
Retail electric revenues
Residential	$	2,543	$	969	$	1,473	$	101	$	—	$	—
Commercial	1,845		599		1,151		95		—		—
Industrial	1,116		498		528		90		—		—
Other	30		3		25		2		—		—
Total retail electric revenues	5,534		2,069		3,177		288		—		—
Natural gas distribution revenues
Residential	217		—		—		—		—		217
Commercial	56		—		—		—		—		56
Transportation	275		—		—		—		—		275
Industrial	4		—		—		—		—		4
Other	60		—		—		—		—		60
Total natural gas distribution revenues	612		—		—		—		—		612
Wholesale electric revenues
PPA energy revenues	317		66		31		2		226		—
PPA capacity revenues	151		26		13		3		110		—
Non-PPA revenues	101		15		21		137		126		—
Total wholesale electric revenues	569		107		65		142		462		—
Other natural gas revenues
Gas marketing services	54		—		—		—		—		54
Other	8		—		—		—		—		8
Total other natural gas revenues	62		—		—		—		—		62
Other revenues	330		54		146		10		18		—
Total revenue from contracts with customers	7,107		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 Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2023
Operating revenues
Retail electric revenues
Residential	$	5,717	$	2,277	$	3,202	$	238	$	—	$	—
Commercial	4,464		1,493		2,733		238		—		—
Industrial	2,770		1,324		1,195		251		—		—
Other	84		10		68		6		—		—
Total retail electric revenues	13,035		5,104		7,198		733		—		—
Natural gas distribution revenues
Residential	1,443		—		—		—		—		1,443
Commercial	370		—		—		—		—		370
Transportation	878		—		—		—		—		878
Industrial	33		—		—		—		—		33
Other	228		—		—		—		—		228
Total natural gas distribution revenues	2,952		—		—		—		—		2,952
Wholesale electric revenues
PPA energy revenues	853		196		66		8		601		—
PPA capacity revenues	490		130		38		36		289		—
Non-PPA revenues	199		49		30		315		312		—
Total wholesale electric revenues	1,542		375		134		359		1,202		—
Other natural gas revenues
Gas marketing services	358		—		—		—		—		358
Other	28		—		—		—		—		28
Total other natural gas revenues	386		—		—		—		—		386
Other revenues	971		159		422		31		46		—
Total revenue from contracts with customers	18,886		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.

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, 2024 and December 31, 2023:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivable
At September 30, 2024	$	2,946	$	978	$	1,347	$	111	$	125	$	306
At December 31, 2023	2,820		821		1,011		90		122		684
Contract Assets
At September 30, 2024	$	379	$	7	$	202	$	—	$	—	$	71
At December 31, 2023	271		2		121		—		—		56
Contract Liabilities
At September 30, 2024	$	181	$	—	$	49	$	—	$	2	$	3
At December 31, 2023	116		—		1		—		4		—

Schedule of Remaining Performance Obligations

Revenues from contracts with customers related to these performance obligations remaining at September 30, 2024 are expected to be recognized as follows:


	2024 (remaining)		2025		2026		2027		2028		Thereafter
	(in millions)
Southern Company	$	303	$	884	$	375	$	336	$	325	$	2,180
Alabama Power	11		11		—		—		—		—
Georgia Power	21		64		26		17		17		17
Mississippi Power(*)	15		63		66		69		73		—
Southern Power(*)	73		312		299		306		297		2,169
Southern Company Gas	3		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.

Schedule of Lease Income

Lease income for the three and nine months ended September 30, 2024 and 2023 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, 2024
Lease income - interest income on sales-type leases	$	5	$	—	$	—	$	3	$	2	$	—
Lease income - operating leases	38		2		13		—		20		9
Variable lease income	142		—		—		—		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 leases	108		6		28		2		63		27
Variable lease income	343		—		—		—		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 leases	36		3		7		—		21		9
Variable lease income	134		—		—		—		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 leases	129		32		22		2		64		27
Variable lease income	327		1		—		—		351		—
Total lease income	$	474	$	33	$	22	$	13	$	422	$	27