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Revenue from Contracts with Customers and Lease Income
 3 Months Ended
Mar. 31, 2022
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. See Note 1 to the financial statements under "Revenues" in Item 8 of the Form 10-K for additional information on the revenue policies of the Registrants. 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 months ended March 31, 2022 and 2021:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended March 31, 2022
Operating revenues
Retail electric revenues
Residential$1,525 $634 $821 $70 $— $— 
Commercial1,178 375 738 65 — — 
Industrial727 323 334 70 — — 
Other26 4 20 2 — — 
Total retail electric revenues3,456 1,336 1,913 207 — — 
Natural gas distribution revenues
Residential1,016 — — — — 1,016 
Commercial270 — — — — 270 
Transportation337 — — — — 337 
Industrial 32 — — — — 32 
Other129 — — — — 129 
Total natural gas distribution revenues1,784 — — — — 1,784 
Wholesale electric revenues
PPA energy revenues342 59 32 3 251 — 
PPA capacity revenues134 39 12 3 81 — 
Non-PPA revenues58 64 9 102 73 — 
Total wholesale electric revenues534 162 53 108 405 — 
Other natural gas revenues
Gas marketing services243 — — — — 243 
Other natural gas revenues16 — — — — 16 
Total natural gas revenues259 — — — — 259 
Other revenues225 48 95 9 8 — 
Total revenue from contracts with customers6,258 1,546 2,061 324 413 2,043 
Other revenue sources(a)
390 103 147 11 126 15 
Total operating revenues$6,648 $1,649 $2,208 $335 $539 $2,058 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended March 31, 2021
Operating revenues
Retail electric revenues
Residential$1,468 $628 $776 $64 $— $— 
Commercial1,117 372 686 59 — — 
Industrial668 320 284 64 — — 
Other24 5 17 2 — — 
Total retail electric revenues3,277 1,325 1,763 189 — — 
Natural gas distribution revenues
Residential614 — — — — 614 
Commercial170 — — — — 170 
Transportation288 — — — — 288 
Industrial 16 — — — — 16 
Other97 — — — — 97 
Total natural gas distribution revenues1,185 — — — — 1,185 
Wholesale electric revenues
PPA energy revenues212 43 13 4 156 — 
PPA capacity revenues119 29 13 3 75 — 
Non-PPA revenues67 32 9 88 61 — 
Total wholesale electric revenues398 104 35 95 292 — 
Other natural gas revenues
Wholesale gas services1,590 — — — — 1,590 
Gas marketing services194 — — — — 194 
Other natural gas revenues7 — — — — 7 
Total natural gas revenues1,791 — — — — 1,791 
Other revenues249 46 113 8 4 — 
Total revenue from contracts with customers6,900 1,475 1,911 292 296 2,976 
Other revenue sources(a)
1,306 84 59 15 144 1,014 
Other adjustments(b)
(2,296)— — — — (2,296)
Total operating revenues$5,910 $1,559 $1,970 $307 $440 $1,694 
(a)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 that meet other scope exceptions for revenues from contracts with customers at the traditional electric operating companies.
(b)Other adjustments relate to the cost of Southern Company Gas' energy and risk management activities. Wholesale gas services revenues are presented net of the related costs of those activities on the statement of income. See Note 15 to the financial statements under "Southern Company Gas" in Item 8 of the Form 10-K and Note (L) under "Southern Company Gas" for information on the sale of Sequent and components of wholesale gas services' operating revenues, respectively.
Contract Balances
The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers at March 31, 2022 and December 31, 2021:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Accounts Receivable
At March 31, 2022$2,571 $616 $695 $85 $128 $865 
At December 31, 20212,504 589 736 73 149 753 
Contract Assets
At March 31, 2022$81 $2 $31 $— $— $— 
At December 31, 2021117 2 63 — 1 — 
Contract Liabilities
At March 31, 2022$72 $3 $13 $2 $1 $— 
At December 31, 202157 4 14 — 1 — 
At March 31, 2022 and December 31, 2021, Georgia Power had contract assets primarily related 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 relate to cash collections recognized in advance of revenue for unregulated service agreements. Southern Company's unregulated distributed generation business had $47 million and $50 million of contract assets and $54 million and $39 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively, for outstanding performance obligations.
Revenues recognized in the three months ended March 31, 2022, which were included in contract liabilities at December 31, 2021, were immaterial for all Registrants.
Remaining Performance Obligations
The Subsidiary Registrants have 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 March 31, 2022 are expected to be recognized as follows:
2022 (remaining)2023202420252026Thereafter
(in millions)
Southern Company$529 $459 $351 $321 $307 $2,345 
Alabama Power24 24 7 5 — — 
Georgia Power55 55 26 22 11 21 
Southern Power252 294 310 294 299 2,339 
Revenue expected to be recognized for performance obligations remaining at March 31, 2022 was immaterial for Mississippi Power and Southern Company Gas.
Lease Income
Lease income for the three months ended March 31, 2022 and 2021 is as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
For the Three Months Ended March 31, 2022
Lease income - interest income on sales-type leases$6 $— $— $4 $2 $— 
Lease income - operating leases51 20 8 — 21 9 
Variable lease income84 — — — 90 — 
Total lease income$141 $20 $8 $4 $113 $9 
For the Three Months Ended March 31, 2021
Lease income - interest income on sales-type leases$3 $— $— $3 $— $— 
Lease income - operating leases55 21 10 — 21 9 
Variable lease income84 — — — 90 — 
Total lease income$142 $21 $10 $3 $111 $9 
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 for Alabama Power and Southern Power is included in wholesale revenues.