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Revenue from Contracts with Customers and Lease Income
 3 Months Ended
Mar. 31, 2023
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, 2023 and 2022:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended March 31, 2023
Operating revenues
Retail electric revenues
Residential$1,525 $659 $801 $65 $— $— 
Commercial1,251 430 753 68 — — 
Industrial789 398 313 78 — — 
Other27 3 22 2 — — 
Total retail electric revenues3,592 1,490 1,889 213 — — 
Natural gas distribution revenues
Residential896 — — — — 896 
Commercial232 — — — — 232 
Transportation319 — — — — 319 
Industrial 23 — — — — 23 
Other117 — — — — 117 
Total natural gas distribution revenues1,587 — — — — 1,587 
Wholesale electric revenues
PPA energy revenues284 72 12 4 202 — 
PPA capacity revenues190 60 11 32 89 — 
Non-PPA revenues36 20 3 107 103 — 
Total wholesale electric revenues510 152 26 143 394 — 
Other natural gas revenues
Gas marketing services231 — — — — 231 
Other natural gas revenues11 — — — — 11 
Total natural gas revenues242 — — — — 242 
Other revenues310 54 132 11 11 — 
Total revenue from contracts with customers6,241 1,696 2,047 367 405 1,829 
Other revenue sources(*)
239 (49)129 23 103 46 
Total operating revenues$6,480 $1,647 $2,176 $390 $508 $1,875 
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(*)
390 103 147 11 126 15 
Total operating revenues$6,648 $1,649 $2,208 $335 $539 $2,058 
(*)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.
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, 2023 and December 31, 2022:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Accounts Receivable
At March 31, 2023$2,433 $622 $672 $79 $119 $853 
At December 31, 20223,123 696 922 92 237 1,107 
Contract Assets
At March 31, 2023$160 $3 $74 $— $— $19 
At December 31, 2022156 2 89 — — — 
Contract Liabilities
At March 31, 2023$61 $2 $14 $1 $1 $— 
At December 31, 202245 4 9 — 1 — 
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. At March 31, 2023, 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 $30 million had been received at March 31, 2023. 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 March 31, 2023 and December 31, 2022, Southern Company's unregulated distributed generation business had contract assets of $64 million and $65 million, respectively, and contract liabilities of $44 million and $32 million, respectively, for outstanding performance obligations.
Revenues recognized in the three months ended March 31, 2023, which were included in contract liabilities at December 31, 2022, were $19 million for Southern Company and immaterial for the other Registrants.
Remaining Performance Obligations
The Subsidiary Registrants may enter into long-term contracts with customers in which revenues are recognized as performance obligations are satisfied over the contract term. For Alabama Power, Georgia Power, 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 March 31, 2023 are expected to be recognized as follows:
2023 (remaining)2024202520262027Thereafter
(in millions)
Southern Company$632 $553 $347 $315 $319 $2,089 
Alabama Power17 7 6 — — — 
Georgia Power68 60 25 13 14 23 
Southern Power268 345 302 303 310 2,077 
Southern Company Gas15 29 — — — — 
Lease Income
Lease income for the three months ended March 31, 2023 and 2022 is as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
For the Three Months Ended March 31, 2023
Lease income - interest income on sales-type leases$6 $— $— $4 $2 $— 
Lease income - operating leases49 18 7 1 21 9 
Variable lease income69 — — — 75 — 
Total lease income$124 $18 $7 $5 $98 $9 
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 
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.