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Revenue from Contracts with Customers and Lease Income | 6 Months Ended
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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 Company | Alabama Power | Georgia Power | Mississippi Power | Southern Power | Southern Company Gas
| (in millions)
Three Months Ended June 30, 2024 |  |  |  |  |  |
Operating revenues |  |  |  |  |  |
Retail electric revenues |  |  |  |  |  |
Residential | $ | 2,049 |  | $ | 736 |  | $ | 1,236 |  | $ | 77 |  | $ | — |  | $ | — |
Commercial | 1,613 |  | 508 |  | 1,023 |  | 82 |  | — |  | — |
Industrial | 962 |  | 445 |  | 434 |  | 83 |  | — |  | — |
Other | 30 |  | 3 |  | 25 |  | 2 |  | — |  | — |
Total retail electric revenues | 4,654 |  | 1,692 |  | 2,718 |  | 244 |  | — |  | — |
Natural gas distribution revenues |  |  |  |  |  |
Residential | 287 |  | — |  | — |  | — |  | — |  | 287 |
Commercial | 69 |  | — |  | — |  | — |  | — |  | 69 |
Transportation | 304 |  | — |  | — |  | — |  | — |  | 304 |
Industrial | 5 |  | — |  | — |  | — |  | — |  | 5 |
Other | 63 |  | — |  | — |  | — |  | — |  | 63 |
Total natural gas distribution revenues | 728 |  | — |  | — |  | — |  | — |  | 728 |
Wholesale electric revenues |  |  |  |  |  |
PPA energy revenues | 265 |  | 55 |  | 22 |  | 1 |  | 192 |  | — |
PPA capacity revenues | 153 |  | 23 |  | 32 |  | 15 |  | 99 |  | — |
Non-PPA revenues | 54 |  | 27 |  | 2 |  | 95 |  | 50 |  | — |
Total wholesale electric revenues | 472 |  | 105 |  | 56 |  | 111 |  | 341 |  | — |
Other natural gas revenues |  |  |  |  |  |
Gas marketing services | 68 |  | — |  | — |  | — |  | — |  | 68 |
Other | 6 |  | — |  | — |  | — |  | — |  | 6 |
Total other natural gas revenues | 74 |  | — |  | — |  | — |  | — |  | 74 |
Other revenues | 419 |  | 62 |  | 185 |  | 10 |  | 11 |  | — |
Total revenue from contracts with customers | 6,347 |  | 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 Company | Alabama Power | Georgia Power | Mississippi Power | Southern Power | Southern Company Gas
| (in millions)
Six Months Ended June 30, 2024 |  |  |  |  |  |
Operating revenues |  |  |  |  |  |
Retail electric revenues |  |  |  |  |  |
Residential | $ | 3,900 |  | $ | 1,501 |  | $ | 2,252 |  | $ | 147 |  | $ | — |  | $ | — |
Commercial | 3,084 |  | 976 |  | 1,955 |  | 153 |  | — |  | — |
Industrial | 1,834 |  | 855 |  | 817 |  | 162 |  | — |  | — |
Other | 60 |  | 6 |  | 50 |  | 4 |  | — |  | — |
Total retail electric revenues | 8,878 |  | 3,338 |  | 5,074 |  | 466 |  | — |  | — |
Natural gas distribution revenues |  |  |  |  |  |
Residential | 1,032 |  | — |  | — |  | — |  | — |  | 1,032 |
Commercial | 245 |  | — |  | — |  | — |  | — |  | 245 |
Transportation | 666 |  | — |  | — |  | — |  | — |  | 666 |
Industrial | 21 |  | — |  | — |  | — |  | — |  | 21 |
Other | 176 |  | — |  | — |  | — |  | — |  | 176 |
Total natural gas distribution revenues | 2,140 |  | — |  | — |  | — |  | — |  | 2,140 |
Wholesale electric revenues |  |  |  |  |  |
PPA energy revenues | 537 |  | 112 |  | 40 |  | 2 |  | 394 |  | — |
PPA capacity revenues | 304 |  | 46 |  | 64 |  | 31 |  | 196 |  | — |
Non-PPA revenues | 112 |  | 68 |  | 2 |  | 187 |  | 110 |  | — |
Total wholesale electric revenues | 953 |  | 226 |  | 106 |  | 220 |  | 700 |  | — |
Other natural gas revenues |  |  |  |  |  |
Gas marketing services | 300 |  | — |  | — |  | — |  | — |  | 300 |
Other | 11 |  | — |  | — |  | — |  | — |  | 11 |
Total other natural gas revenues | 311 |  | — |  | — |  | — |  | — |  | 311 |
Other revenues | 746 |  | 114 |  | 337 |  | 22 |  | 21 |  | — |
Total revenue from contracts with customers | 13,028 |  | 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 Company | Alabama Power | Georgia Power | Mississippi Power | Southern Power | Southern Company Gas
| (in millions)
Three Months Ended June 30, 2023 |  |  |  |  |  |
Operating revenues |  |  |  |  |  |
Retail electric revenues |  |  |  |  |  |
Residential | $ | 1,647 |  | $ | 648 |  | $ | 928 |  | $ | 71 |  | $ | — |  | $ | — |
Commercial | 1,370 |  | 465 |  | 830 |  | 75 |  | — |  | — |
Industrial | 864 |  | 429 |  | 353 |  | 82 |  | — |  | — |
Other | 27 |  | 3 |  | 22 |  | 2 |  | — |  | — |
Total retail electric revenues | 3,908 |  | 1,545 |  | 2,133 |  | 230 |  | — |  | — |
Natural gas distribution revenues |  |  |  |  |  |
Residential | 330 |  | — |  | — |  | — |  | — |  | 330 |
Commercial | 82 |  | — |  | — |  | — |  | — |  | 82 |
Transportation | 284 |  | — |  | — |  | — |  | — |  | 284 |
Industrial | 6 |  | — |  | — |  | — |  | — |  | 6 |
Other | 51 |  | — |  | — |  | — |  | — |  | 51 |
Total natural gas distribution revenues | 753 |  | — |  | — |  | — |  | — |  | 753 |
Wholesale electric revenues |  |  |  |  |  |
PPA energy revenues | 253 |  | 58 |  | 24 |  | 2 |  | 175 |  | — |
PPA capacity revenues | 149 |  | 44 |  | 13 |  | 2 |  | 91 |  | — |
Non-PPA revenues | 61 |  | 12 |  | 6 |  | 70 |  | 83 |  | — |
Total wholesale electric revenues | 463 |  | 114 |  | 43 |  | 74 |  | 349 |  | — |
Other natural gas revenues |  |  |  |  |  |
Gas marketing services | 73 |  | — |  | — |  | — |  | — |  | 73 |
Other | 8 |  | — |  | — |  | — |  | — |  | 8 |
Total other natural gas revenues | 81 |  | — |  | — |  | — |  | — |  | 81 |
Other revenues | 327 |  | 43 |  | 145 |  | 10 |  | 16 |  | — |
Total revenue from contracts with customers | 5,532 |  | 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 Company | Alabama Power | Georgia Power | Mississippi Power | Southern Power | Southern Company Gas
| (in millions)
Six Months Ended June 30, 2023 |  |  |  |  |  |
Operating revenues |  |  |  |  |  |
Retail electric revenues |  |  |  |  |  |
Residential | $ | 3,174 |  | $ | 1,308 |  | $ | 1,730 |  | $ | 136 |  | $ | — |  | $ | — |
Commercial | 2,619 |  | 894 |  | 1,582 |  | 143 |  | — |  | — |
Industrial | 1,653 |  | 827 |  | 666 |  | 160 |  | — |  | — |
Other | 54 |  | 6 |  | 44 |  | 4 |  | — |  | — |
Total retail electric revenues | 7,500 |  | 3,035 |  | 4,022 |  | 443 |  | — |  | — |
Natural gas distribution revenues |  |  |  |  |  |
Residential | 1,226 |  | — |  | — |  | — |  | — |  | 1,226 |
Commercial | 314 |  | — |  | — |  | — |  | — |  | 314 |
Transportation | 603 |  | — |  | — |  | — |  | — |  | 603 |
Industrial | 29 |  | — |  | — |  | — |  | — |  | 29 |
Other | 168 |  | — |  | — |  | — |  | — |  | 168 |
Total natural gas distribution revenues | 2,340 |  | — |  | — |  | — |  | — |  | 2,340 |
Wholesale electric revenues |  |  |  |  |  |
PPA energy revenues | 534 |  | 129 |  | 35 |  | 5 |  | 376 |  | — |
PPA capacity revenues | 341 |  | 105 |  | 25 |  | 34 |  | 179 |  | — |
Non-PPA revenues | 98 |  | 32 |  | 10 |  | 178 |  | 187 |  | — |
Total wholesale electric revenues | 973 |  | 266 |  | 70 |  | 217 |  | 742 |  | — |
Other natural gas revenues |  |  |  |  |  |
Gas marketing services | 304 |  | — |  | — |  | — |  | — |  | 304 |
Other | 20 |  | — |  | — |  | — |  | — |  | 20 |
Total other natural gas revenues | 324 |  | — |  | — |  | — |  | — |  | 324 |
Other revenues | 640 |  | 103 |  | 276 |  | 22 |  | 27 |  | — |
Total revenue from contracts with customers | 11,777 |  | 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 Company | Alabama Power | Georgia Power | Mississippi Power | Southern Power | Southern Company Gas
| (in millions)
Accounts Receivable |  |  |  |  |  |
At June 30, 2024 | $ | 3,090 |  | $ | 864 |  | $ | 1,448 |  | $ | 102 |  | $ | 141 |  | $ | 387 |
At December 31, 2023 | 2,820 |  | 821 |  | 1,011 |  | 90 |  | 122 |  | 684 |
Contract Assets |  |  |  |  |  |
At June 30, 2024 | $ | 304 |  | $ | — |  | $ | 130 |  | $ | — |  | $ | — |  | $ | 67 |
At December 31, 2023 | 271 |  | 2 |  | 121 |  | — |  | — |  | 56 |
Contract Liabilities |  |  |  |  |  |
At June 30, 2024 | $ | 235 |  | $ | 2 |  | $ | 42 |  | $ | — |  | $ | 1 |  | $ | — |
At December 31, 2023 | 116 |  | — |  | 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) | 2025 | 2026 | 2027 | 2028 | Thereafter
| (in millions)
Southern Company | $ | 641 |  | $ | 931 |  | $ | 374 |  | $ | 336 |  | $ | 325 |  | $ | 2,180 |
Alabama Power | 12 |  | 12 |  | — |  | — |  | — |  | — |
Georgia Power | 41 |  | 57 |  | 21 |  | 17 |  | 17 |  | 17 |
Mississippi Power(*) | 30 |  | 63 |  | 66 |  | 69 |  | 73 |  | — |
Southern Power(*) | 196 |  | 312 |  | 299 |  | 306 |  | 297 |  | 2,169 |
Southern Company Gas | 9 |  | — |  | — |  | — |  | — |  | — |
(*)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 Power | Georgia Power | Mississippi Power | Southern Power | Southern 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 leases | 35 |  | 2 |  | 9 |  | 1 |  | 22 |  | 9 |
Variable lease income | 129 |  | — |  | — |  | — |  | 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 leases | 71 |  | 5 |  | 16 |  | 2 |  | 43 |  | 18 |
Variable lease income | 201 |  | — |  | — |  | — |  | 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 leases | 42 |  | 11 |  | 7 |  | 1 |  | 21 |  | 9 |
Variable lease income | 123 |  | — |  | — |  | — |  | 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 leases | 92 |  | 29 |  | 14 |  | 2 |  | 42 |  | 18 |
Variable lease income | 192 |  | — |  | — |  | — |  | 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

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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