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Revenue from Contracts with Customers and Lease Income
 6 Months Ended
Jun. 30, 2025
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 "Affiliate Transactions" and "Revenues" 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, 2025 and 2024:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended June 30, 2025
Operating revenues
Retail electric revenues
Residential$2,021 $725 $1,217 $79 $— $— 
Commercial1,716 504 1,127 85 — — 
Industrial1,015 432 496 87 — — 
Other29 2 25 2 — — 
Total retail electric revenues4,781 1,663 2,865 253 — — 
Natural gas distribution revenues
Residential394 — — — — 394 
Commercial94 — — — — 94 
Transportation331 — — — — 331 
Industrial 7 — — — — 7 
Other60 — — — — 60 
Total natural gas distribution revenues886 — — — — 886 
Wholesale electric revenues
PPA energy revenues310 58 50 2 210 — 
PPA capacity revenues154 29 35 17 85 — 
Non-PPA revenues60 36 10 100 59 — 
Total wholesale electric revenues524 123 95 119 354 — 
Other natural gas revenues
Gas marketing services81 — — — — 81 
Other
5 — — — — 5 
Total other natural gas revenues
86 — — — — 86 
Other revenues457 67 206 9 8 — 
Total revenue from contracts with customers6,734 1,853 3,166 381 362 972 
Other revenue sources(*)
239 115 (56)19 184 7 
Total operating revenues$6,973 $1,968 $3,110 $400 $546 $979 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Six Months Ended June 30, 2025
Operating revenues
Retail electric revenues
Residential$4,087 $1,531 $2,403 $153 $— $— 
Commercial3,327 986 2,181 160 — — 
Industrial1,930 822 940 168 — — 
Other61 4 52 5 — — 
Total retail electric revenues9,405 3,343 5,576 486 — — 
Natural gas distribution revenues
Residential1,239 — — — — 1,239 
Commercial292 — — — — 292 
Transportation737 — — — — 737 
Industrial 26 — — — — 26 
Other170 — — — — 170 
Total natural gas distribution revenues2,464 — — — — 2,464 
Wholesale electric revenues
PPA energy revenues723 112 134 5 491 — 
PPA capacity revenues299 57 74 34 169 — 
Non-PPA revenues136 106 19 233 121 — 
Total wholesale electric revenues1,158 275 227 272 781 — 
Other natural gas revenues
Gas marketing services337 — — — — 337 
Other
10 — — — — 10 
Total other natural gas revenues
347 — — — — 347 
Other revenues954 150 436 30 14 — 
Total revenue from contracts with customers14,328 3,768 6,239 788 795 2,811 
Other revenue sources(*)
420 212 (91)33 318 7 
Total operating revenues$14,748 $3,980 $6,148 $821 $1,113 $2,818 
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 
(*)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, 2025 and December 31, 2024:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Accounts Receivable
At June 30, 2025$3,106 $778 $1,485 $133 $132 $451 
At December 31, 20243,048 783 1,244 113 106 660 
Contract Assets
At June 30, 2025$304 $— $134 $— $— $74 
At December 31, 2024323 3 184 — — 72 
Contract Liabilities
At June 30, 2025$170 $14 $73 $2 $1 $— 
At December 31, 2024140 11 34 — 2 3 
Contract assets for Georgia Power primarily relate to unregulated service agreements, where payment is contingent on project completion, and 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. 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 received cash advances totaling approximately $68 million from a third-party financial institution to fund work performed. 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, 2025 and December 31, 2024, Southern Company's unregulated distributed generation business had contract assets of $95 million and $67 million, respectively, and contract liabilities of $81 million and $95 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, 2025, which were included in contract liabilities at December 31, 2024, were $44 million and $72 million, respectively, for Southern Company, $11 million and $16 million, respectively, for Georgia Power, 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. 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, 2025 are expected to be recognized as follows:
2025 (remaining)2026202720282029Thereafter
(in millions)
Southern Company$548 $535 $405 $343 $309 $2,636 
Alabama Power49 6 4 1 — — 
Georgia Power37 43 18 15 2 27 
Mississippi Power(*)
31 66 69 73 — — 
Southern Power(*)
183 331 340 316 312 2,609 
(*)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, 2025 and 2024 was as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
Three Months Ended June 30, 2025
Lease income - interest income on sales-type leases$6 $— $— $4 $2 $— 
Lease income - operating leases33 2 7 1 37 9 
Variable lease income125 — — — 136 — 
Total lease income$164 $2 $7 $5 $175 $9 
Six Months Ended June 30, 2025
Lease income - interest income on sales-type leases$11 $— $— $7 $4 $— 
Lease income - operating leases66 3 14 1 73 18 
Variable lease income207 1 — — 225 — 
Total lease income$284 $4 $14 $8 $302 $18 
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 
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 
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.