The following tables disaggregate revenue sources for the three and nine months ended September 30, 2018:



	For the Three Months Ended September 30, 2018		For the Nine Months Ended September 30, 2018
	(in millions)
Southern Company
Operating revenues
Retail electric revenues^(a)
Residential	$	2,148	$	5,266
Commercial	1,527		4,084
Industrial	901		2,471
Other	29		92
Natural gas distribution revenues	433		2,299
Alternative revenue programs^(b)	5		(23		)
Total retail electric and gas distribution revenues	$	5,043	$	14,189
Wholesale energy revenues^(c)(d)	516		1,444
Wholesale capacity revenues^(d)	177		479
Other natural gas revenues^(e)	54		530
Other revenues^(f)	369		1,516
Total operating revenues	$	6,159	$	18,158

(a)

Retail electric revenues include $17 million and $54 million of leases for the three and nine months ended September 30, 2018, respectively, and a (net reduction) or net increase of $(98) million and $4 million for the three and nine months ended September 30, 2018, respectively, from certain cost recovery mechanisms that are not accounted for as revenue under ASC 606. See Note 3 to the financial statements of Southern Company under "Regulatory Matters" in Item 8 of the Form 10-K for additional information on cost recovery mechanisms.


(b)	See Note 1 to the financial statements of Southern Company under "Revenues" in Item 8 of the Form 10-K for additional information on alternative revenue programs at the natural gas distribution utilities. Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.


(c)	Wholesale energy revenues include $63 million and $217 million for the three and nine months ended September 30, 2018, respectively, of revenues accounted for as derivatives, primarily related to physical energy sales in the wholesale electricity market. See Note (I) for additional information on energy-related derivative contracts.


(d)	Wholesale energy and wholesale capacity revenues include $130 million and $31 million, respectively, for the three months ended September 30, 2018 and $318 million and $92 million, respectively, for the nine months ended September 30, 2018 of PPA contracts accounted for as leases.

(e)

Other natural gas revenues related to Southern Company Gas' energy and risk management activities are presented net of the related costs of those activities and include gross third-party revenues of $1.6 billion and $4.8 billion for the three and nine months ended September 30, 2018, respectively, of which $0.9 billion and $2.7 billion, respectively, relates to contracts that are accounted for as derivatives. See Note (L) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues.


(f)	Other revenues include $92 million and $274 million for the three and nine months ended September 30, 2018, respectively, of revenues not accounted for under ASC 606.



	Alabama Power		Georgia Power		Gulf Power		Mississippi Power
	(in millions)
For the Three Months Ended September 30, 2018
Operating revenues
Retail revenues^(a)(b)
Residential	$	721	$	1,142	$	200	$	85
Commercial	464		877		103		82
Industrial	392		385		37		86
Other	7		21		1		1
Total retail electric revenues	$	1,584	$	2,425	$	341	$	254
Wholesale energy revenues^(c)	62		33		48		92
Wholesale capacity revenues	26		14		7		1
Other revenues^(b)(d)	68		121		18		11
Total operating revenues	$	1,740	$	2,593	$	414	$	358

For the Nine Months Ended September 30, 2018
Operating revenues
Retail revenues^(a)(b)
Residential	$	1,848	$	2,671	$	537	$	209
Commercial	1,238		2,343		291		212
Industrial	1,103		1,036		100		233
Other	19		62		4		6
Total retail electric revenues	$	4,208	$	6,112	$	932	$	660
Wholesale energy revenues^(c)	234		99		104		259
Wholesale capacity revenues	75		41		20		6
Other revenues^(b)(d)	199		349		50		31
Total operating revenues	$	4,716	$	6,601	$	1,106	$	956

(a)

Retail revenues at Alabama Power, Georgia Power, Gulf Power, and Mississippi Power include a net increase or (net reduction) of $(12) million, $(47) million, $(36) million, and $(3) million, respectively, for the three months ended September 30, 2018 and $113 million, $(35) million, $(63) million, and $(11) million, respectively, for the nine months ended September 30, 2018 related to certain cost recovery mechanisms that are not accounted for as revenue under ASC 606. See Note 3 to the financial statements of Alabama Power, Georgia Power, Gulf Power, and Mississippi Power under "Retail Regulatory Matters" in Item 8 of the Form 10-K for additional information on cost recovery mechanisms.


(b)	Retail revenues and other revenues at Georgia Power include $17 million and $34 million, respectively, for the three months ended September 30, 2018 and $54 million and $100 million, respectively, for the nine months ended September 30, 2018 of revenues accounted for as leases.

(c)

Wholesale energy revenues at Alabama Power and Georgia Power include $6 million and $8 million, respectively, for the three months ended September 30, 2018 and $14 million and $21 million, respectively, for the nine months ended September 30, 2018 accounted for as derivatives primarily related to physical energy sales in the wholesale electricity market. See Note (I) for additional information on energy-related derivative contracts.


(d)	Other revenues at Alabama Power, Georgia Power, and Gulf Power include $27 million, $28 million, and $2 million, respectively, for the three months ended September 30, 2018 and $79 million, $80 million, and $5 million, respectively, for the nine months ended September 30, 2018 of revenues not accounted for under ASC 606.



	For the Three Months Ended September 30, 2018		For the Nine Months Ended September 30, 2018
	(in millions)
Southern Power
PPA capacity revenues^(a)	$	168	$	450
PPA energy revenues^(a)	336		892
Non-PPA revenues^(b)	126		347
Other revenues	5		10
Total operating revenues	$	635	$	1,699

(a)

PPA capacity revenues and PPA energy revenues include $47 million and $139 million, respectively, for the three months ended September 30, 2018 and $141 million and $342 million, respectively, for the nine months ended September 30, 2018 related to PPAs accounted for as leases. See Note 1 to the financial statements of Southern Power under "Revenues" in Item 8 of the Form 10-K for additional information on capacity revenues accounted for as leases.

(b)

Non-PPA revenues include $47 million and $176 million for the three and nine months ended September 30, 2018, respectively, of revenues from short-term sales related to physical energy sales from uncovered capacity in the wholesale electricity market. See Note 1 to the financial statements of Southern Power under "Revenues" in Item 8 of the Form 10-K and Note (I) for additional information on energy-related derivative contracts.



	For the Three Months Ended September 30, 2018			For the Nine Months Ended September 30, 2018
	(in millions)
Southern Company Gas
Operating revenues
Natural gas distribution revenues
Residential	$	149		$	1,082
Commercial	45			313
Transportation	203			708
Industrial	4			28
Other	32			168
Alternative revenue programs^(a)	5			(23		)
Total natural gas distribution revenues	$	438		$	2,276
Gas marketing services^(b)	44			403
Wholesale gas services^(c)	(10		)	121
Gas midstream operations	20			60
Other revenues	—			1
Total operating revenues	$	492		$	2,861


(a)	See Note 1 to the financial statements of Southern Company Gas under "Revenues" in Item 8 of the Form 10-K for additional information on alternative revenue programs at the natural gas distribution utilities. Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.


(b)	Gas marketing services includes $4 million for the nine months ended September 30, 2018 of revenues not accounted for under ASC 606.

(c)

Wholesale gas services revenues are presented net of the related costs associated with its energy trading and risk management activities. Operating revenues, as presented, include gross third-party revenues of $1.6 billion and $4.8 billion for the three and nine months ended September 30, 2018, respectively, of which $0.9 billion and $2.7 billion, respectively, relates to contracts that are accounted for as derivatives. See Note (L) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues and Note (I) for additional information on energy-related derivative contracts.