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Revenue from Contracts with Customers and Lease Income
 9 Months Ended
Sep. 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 nine months ended September 30, 2025 and 2024:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended September 30, 2025
Operating revenues
Retail electric revenues
Residential$2,737 $982 $1,653 $102 $— $— 
Commercial2,074 614 1,358 102 — — 
Industrial1,195 481 620 94 — — 
Other32 3 27 2 — — 
Total retail electric revenues6,038 2,080 3,658 300 — — 
Natural gas distribution revenues
Residential236 — — — — 236 
Commercial65 — — — — 65 
Transportation316 — — — — 316 
Industrial 4 — — — — 4 
Other47 — — — — 47 
Total natural gas distribution revenues668 — — — — 668 
Wholesale electric revenues
PPA energy revenues373 81 58 3 246 — 
PPA capacity revenues180 32 40 16 109 — 
Non-PPA revenues106 42 23 150 59 — 
Total wholesale electric revenues659 155 121 169 414 — 
Other natural gas revenues
Gas marketing services56 — — — — 56 
Other
1 — — — — 1 
Total other natural gas revenues
57 — — — — 57 
Other revenues400 59 191 12 3 — 
Total revenue from contracts with customers7,822 2,294 3,970 481 417 725 
Other revenue sources(*)
1 24 (200)(1)196 9 
Total operating revenues$7,823 $2,318 $3,770 $480 $613 $734 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Nine Months Ended September 30, 2025
Operating revenues
Retail electric revenues
Residential$6,822 $2,512 $4,056 $254 $— $— 
Commercial5,400 1,599 3,539 262 — — 
Industrial3,127 1,304 1,560 263 — — 
Other94 8 79 7 — — 
Total retail electric revenues15,443 5,423 9,234 786 — — 
Natural gas distribution revenues
Residential1,475 — — — — 1,475 
Commercial357 — — — — 357 
Transportation1,053 — — — — 1,053 
Industrial 30 — — — — 30 
Other217 — — — — 217 
Total natural gas distribution revenues3,132 — — — — 3,132 
Wholesale electric revenues
PPA energy revenues1,097 193 192 8 739 — 
PPA capacity revenues478 89 113 50 276 — 
Non-PPA revenues235 139 43 384 180 — 
Total wholesale electric revenues1,810 421 348 442 1,195 — 
Other natural gas revenues
Gas marketing services394 — — — — 394 
Other
11 — — — — 11 
Total other natural gas revenues
405 — — — — 405 
Other revenues1,352 209 627 42 17 — 
Total revenue from contracts with customers22,142 6,053 10,209 1,270 1,212 3,537 
Other revenue sources(*)
430 245 (291)31 514 15 
Total operating revenues$22,572 $6,298 $9,918 $1,301 $1,726 $3,552 
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 
(*)Other revenue sources relate to revenues from customers accounted for as derivatives and leases, alternative revenue programs primarily 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, 2025 and December 31, 2024:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Accounts Receivable
At September 30, 2025$2,942 $827 $1,390 $137 $106 $331 
At December 31, 20243,048 783 1,244 113 106 660 
Contract Assets
At September 30, 2025$443 $8 $283 $— $— $74 
At December 31, 2024323 3 184 — — 72 
Contract Liabilities
At September 30, 2025$185 $15 $72 $2 $2 $— 
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 September 30, 2025 and December 31, 2024, Southern Company's unregulated distributed generation business had contract assets of $77 million and $67 million, respectively, and contract liabilities of $96 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 nine months ended September 30, 2025, which were included in contract liabilities at December 31, 2024, were $20 million and $92 million, respectively, for Southern Company, $8 million and $24 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 September 30, 2025 are expected to be recognized as follows:
2025 (remaining)2026202720282029Thereafter
(in millions)
Southern Company$296 $742 $470 $344 $309 $2,636 
Alabama Power46 6 5 2 — — 
Georgia Power19 48 22 15 2 27 
Mississippi Power(*)
16 66 69 73 12 — 
Southern Power(*)
75 331 340 316 312 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 nine months ended September 30, 2025 and 2024 was as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
Three Months Ended September 30, 2025
Lease income - interest income on sales-type leases$6 $— $— $4 $2 $— 
Lease income - operating leases38 2 7 1 37 9 
Variable lease income141 — — — 151 — 
Total lease income$185 $2 $7 $5 $190 $9 
Nine Months Ended September 30, 2025
Lease income - interest income on sales-type leases$18 $— $— $11 $7 $— 
Lease income - operating leases104 5 22 2 111 27 
Variable lease income347 1 — — 375 — 
Total lease income$469 $6 $22 $13 $493 $27 
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 
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 
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.