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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
The registrants generate revenues from a variety of sources, some of which are excluded from the scope of ASC 606, Revenue from Contracts with Customers (ASC 606), such as leases, derivatives, and certain cost recovery mechanisms. See Note 1 to the financial statements under "Recently Adopted Accounting Standards – Revenue" in Item 8 of the Form 10-K for additional information on the adoption of ASC 606 for revenue from contracts with customers and Note 1 to the financial statements under "Revenues" and "Other Taxes" in Item 8 of the Form 10-K for additional information on the revenue policies of the registrants. For additional information on revenues accounted for under other accounting guidance, see Notes (J) and (L) for energy-related derivative contracts and lessor revenues, respectively, Note 1 to the financial statements under "Revenues – Southern Company Gas" in Item 8 of the Form 10-K for alternative revenue programs at the natural gas distribution utilities, and Note 2 to the financial statements in Item 8 of the Form 10-K for cost recovery mechanisms.
The following tables disaggregate revenue sources for the three and six months ended June 30, 2019 and 2018:
 
For the Three Months Ended
June 30, 2019
For the Three Months Ended
June 30, 2018
For the
Six Months Ended
June 30, 2019
For the
Six Months Ended
June 30, 2018
 
(in millions)
Southern Company
 
 
 
 
Operating revenues
 
 
 
 
Retail electric revenues(a)
 
 
 
 
Residential
$
1,488

$
1,579

$
2,776

$
3,118

Commercial
1,258

1,315

2,350

2,557

Industrial
763

814

1,440

1,569

Other
31

32

57

64

Natural gas distribution revenues(b)
562

642

1,724

1,865

Alternative revenue programs(c)
1

(4
)
—

(27
)
Total retail electric and gas distribution revenues
$
4,103

$
4,378

$
8,347

$
9,146

Wholesale energy revenues(d)(e)
410

464

777

937

Wholesale capacity revenues(e)
132

152

264

302

Other natural gas revenues(f)(g)
126

68

439

476

Other revenues(h)
327

565

683

1,138

Total operating revenues
$
5,098

$
5,627

$
10,510

$
11,999

(a)
Retail electric revenues include $8 million, $18 million, $16 million, and $36 million of revenues accounted for as leases for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, and a (net reduction) or net increase of $(14) million, $68 million, $(117) million and $101 million for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, from certain cost recovery mechanisms that are not accounted for as revenue under ASC 606.
(b)
Natural gas distribution revenues include $5 million for each of the three months ended June 30, 2019 and 2018 and $8 million for each of the six months ended June 30, 2019 and 2018 of revenues not accounted for under ASC 606.
(c)
Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.
(d)
Wholesale energy revenues include $30 million, $61 million, $82 million, and $155 million of revenues accounted for as derivatives for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, primarily related to physical energy sales in the wholesale electricity market.
(e)
Wholesale energy revenues include $115 million, $118 million, $182 million, and $187 million for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, and wholesale capacity revenues include $22 million, $31 million, $47 million, and $61 million for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, related to PPAs accounted for as leases.
(f)
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 $1.2 billion, $1.3 billion, $3.1 billion, and $3.3 billion for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, of which $0.8 billion, $0.7 billion, $2.0 billion, and $1.8 billion, respectively, relates to contracts that are accounted for as derivatives. See Note (M) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues.
(g)
Other natural gas revenues include $10 million and $27 million for the three and six months ended June 30, 2019, respectively, of revenues not accounted for under ASC 606, including $8 million and $16 million, respectively, of revenues accounted for as leases.
(h)
Other revenues include $89 million, $89 million, $180 million, and $183 million for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, of revenues not accounted for under ASC 606, including $28 million, $33 million, $59 million, and $66 million, respectively, accounted for as leases.
 
Alabama Power
Georgia Power
Mississippi Power
 
(in millions)
For the Three Months Ended June 30, 2019
 
 
 
Operating revenues
 
 
 
Retail revenues(a)(b)
 
 
 
Residential
$
588

$
831

$
69

Commercial
418

767

73

Industrial
366

327

70

Other
6

21

3

Total retail electric revenues
$
1,378

$
1,946

$
215

Wholesale energy revenues(c)
41

14

93

Wholesale capacity revenues
25

22

1

Other revenues(b)(d)
69

135

4

Total operating revenues
$
1,513

$
2,117

$
313

 
 
 
 
For the Three Months Ended June 30, 2018
 
 
 
Operating revenues
 
 
 
Retail revenues(a)(b)
 
 
 
Residential
$
557

$
785

$
65

Commercial
402

749

68

Industrial
372

335

76

Other
7

20

3

Total retail electric revenues
$
1,338

$
1,889

$
212

Wholesale energy revenues(c)
71

26

77

Wholesale capacity revenues
25

13

1

Other revenues(b)(d)
69

120

7

Total operating revenues
$
1,503

$
2,048

$
297

(a)
Retail revenues at Alabama Power, Georgia Power, and Mississippi Power include a net increase or (net reduction) of $(11) million, $(5) million, and $2 million, respectively, for the three months ended June 30, 2019 and $78 million, $3 million, and $(1) million, respectively, for the three months ended June 30, 2018 related to certain cost recovery mechanisms that are not accounted for as revenue under ASC 606.
(b)
Retail revenues and other revenues at Georgia Power include $8 million and $11 million, respectively, for the three months ended June 30, 2019 and $18 million and $33 million, respectively, for the three months ended June 30, 2018 of revenues accounted for as leases.
(c)
Wholesale energy revenues at Alabama Power, Georgia Power, and Mississippi Power include $3 million, $4 million, and $1 million, respectively, for the three months ended June 30, 2019 and $4 million, $5 million, and $1 million, respectively, for the three months ended June 30, 2018 accounted for as derivatives primarily related to physical energy sales in the wholesale electricity market.
(d)
Other revenues at Alabama Power and Georgia Power include $31 million and $30 million, respectively, for the three months ended June 30, 2019 and $26 million and $26 million, respectively, for the three months ended June 30, 2018 of revenues not accounted for under ASC 606.
 
Alabama Power
Georgia Power
Mississippi Power
 
(in millions)
For the Six Months Ended June 30, 2019
 
 
 
Operating revenues
 
 
 
Retail revenues(a)(b)
 
 
 
Residential
$
1,128

$
1,519

$
129

Commercial
772

1,440

138

Industrial
679

616

145

Other
13

39

6

Total retail electric revenues
$
2,592

$
3,614

$
418

Wholesale energy revenues(c)
135

27

170

Wholesale capacity revenues
51

40

2

Other revenues(b)(d)
143

270

10

Total operating revenues
$
2,921

$
3,951

$
600

 
 
 
 
For the Six Months Ended June 30, 2018
 
 
 
Operating revenues
 
 
 
Retail revenues(a)(b)
 
 
 
Residential
$
1,127

$
1,529

$
125

Commercial
774

1,466

130

Industrial
710

650

146

Other
13

43

5

Total retail electric revenues
$
2,624

$
3,688

$
406

Wholesale energy revenues(c)
172

66

176

Wholesale capacity revenues
49

27

5

Other revenues(b)(d)
131

227

11

Total operating revenues
$
2,976

$
4,008

$
598

(a)
Retail revenues at Alabama Power, Georgia Power, and Mississippi Power include a net increase or (net reduction) of $(68) million, $(52) million, and $3 million, respectively, for the six months ended June 30, 2019 and $125 million, $12 million, and $(8) million, respectively, for the six months ended June 30, 2018 related to certain cost recovery mechanisms that are not accounted for as revenue under ASC 606.
(b)
Retail revenues and other revenues at Georgia Power include $16 million and $23 million, respectively, for the six months ended June 30, 2019 and $36 million and $66 million, respectively, for the six months ended June 30, 2018 of revenues accounted for as leases.
(c)
Wholesale energy revenues at Alabama Power, Georgia Power, and Mississippi Power include $6 million, $8 million, and $1 million, respectively, for the six months ended June 30, 2019 and $9 million, $13 million, and $2 million, respectively, for the six months ended June 30, 2018 accounted for as derivatives primarily related to physical energy sales in the wholesale electricity market.
(d)
Other revenues at Alabama Power and Georgia Power include $59 million and $61 million, respectively, for the six months ended June 30, 2019 and $52 million and $53 million, respectively, for the six months ended June 30, 2018 of revenues not accounted for under ASC 606.
 
For the Three Months Ended
June 30, 2019
For the Three Months Ended
June 30, 2018
For the
Six Months Ended
June 30, 2019
For the
Six Months Ended
 June 30, 2018
 
(in millions)
Southern Power
 
 
 
 
PPA capacity revenues(a)
$
125

$
144

$
252

$
282

PPA energy revenues(a)
291

302

518

556

Non-PPA revenues(b)
91

106

177

221

Other revenues
3

3

6

5

Total operating revenues
$
510

$
555

$
953

$
1,064

(a)
PPA capacity revenues include $39 million, $47 million, $80 million, and $94 million for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, and PPA energy revenues include $125 million, $127 million, $198 million, and $203 million for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, related to PPAs accounted for as leases.
(b)
Non-PPA revenues include $22 million, $50 million, $67 million, and $129 million for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, of revenues from short-term sales related to physical energy sales from uncovered capacity in the wholesale electricity market.
 
For the Three Months Ended
June 30, 2019
For the Three Months Ended
June 30, 2018
For the
Six Months Ended
June 30, 2019
For the
Six Months Ended
 June 30, 2018
 
(in millions)
Southern Company Gas
 
 
 
 
Operating revenues
 
 
 
 
Natural gas distribution revenues(a)
 
 
 
 
Residential
$
229

$
273

$
830

$
933

Commercial
65

76

235

268

Transportation
213

228

469

505

Industrial
5

7

22

24

Other
50

58

168

135

Alternative revenue programs(b)
1

(4
)
—

(27
)
Total natural gas distribution revenues
$
563

$
638

$
1,724

$
1,838

Gas pipeline investments(c)
8

8

16

16

Wholesale gas services(d)
48

(15
)
114

131

Gas marketing services(e)
58

89

287

359

Other revenues
12

10

22

25

Total operating revenues
$
689

$
730

$
2,163

$
2,369

(a)
Natural gas distribution revenues include $5 million for each of the three months ended June 30, 2019 and 2018 and $8 million for each of the six months ended June 30, 2019 and 2018 of revenues not accounted for under ASC 606.
(b)
Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.
(c)
Revenues from gas pipeline investments include $8 million and $16 million for the three and six months ended June 30, 2019, respectively, accounted for as leases.
(d)
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 $1.2 billion, $1.3 billion, $3.1 billion, and $3.3 billion for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively, of which $0.8 billion, $0.7 billion, $2.0 billion, and $1.8 billion, respectively, relates to contracts accounted for as derivatives. See Note (M) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues.
(e)
Gas marketing services include $2 million for the three months ended June 30, 2019 and $11 million and $4 million for the six months ended June 30, 2019 and 2018, respectively, of revenues not accounted for under ASC 606.
Contract Balances
The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers as of June 30, 2019 and December 31, 2018:
 
Receivables
 
Contract Assets
 
Contract Liabilities
 
June 30, 2019
December 31, 2018
 
June 30, 2019
December 31, 2018
 
June 30, 2019
December 31, 2018
 
(in millions)
Southern Company(*)
$
2,343

$
2,630

 
$
70

$
102

 
$
58

$
32

Alabama Power
629

520

 
—

—

 
10

12

Georgia Power
807

721

 
30

58

 
26

7

Mississippi Power
93

100

 
—

—

 
7

—

Southern Power
119

118

 
—

—

 
1

11

Southern Company Gas
550

952

 
—

—

 
1

2

(*)
Includes amounts related to held for sale investments.
As of June 30, 2019 and December 31, 2018, Georgia Power had contract assets primarily related to unregulated service agreements where payment is contingent on project completion and fixed retail customer bill programs where the payment is contingent upon Georgia Power's continued performance and the customer's continued participation in the program over the one-year contract term. Alabama Power had contract liabilities for outstanding performance obligations primarily related to extended service agreements. Contract liabilities for Georgia Power and Southern Power relate to cash collections recognized in advance of revenue for certain unregulated service agreements and certain levelized PPAs, respectively. Mississippi Power had contract liabilities for cash collections recognized in advance of revenue for operating agreements associated with a tolling arrangement accounted for as a sales-type lease. Southern Company's unregulated distributed generation business had $32 million and $39 million of contract assets and $14 million and $11 million of contract liabilities at June 30, 2019 and December 31, 2018, respectively, remaining for outstanding performance obligations.
The following table reflects revenue from contracts with customers recognized in the three and six months ended June 30, 2019 included in the contract liability at December 31, 2018:
 
Three Months Ended
June 30, 2019
Six Months Ended
June 30, 2019
 
(in millions)
 
Southern Company
$
11

$
27

Southern Power
1

11


Revenues recognized in the three and six months ended June 30, 2019, which were included in contract liabilities at December 31, 2018, were immaterial for Alabama Power, Georgia Power, and Southern Company Gas.
Remaining Performance Obligations
The traditional electric operating companies and Southern Power have long-term contracts with customers in which revenues are recognized when the performance obligations are satisfied during the contract term. These contracts primarily relate to PPAs whereby the traditional electric operating companies and Southern Power provide electricity and generation capacity 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. Registrants with revenues from contracts with customers related to these performance obligations remaining at June 30, 2019 expect the revenues to be recognized as follows:
 
2019 (remaining)
2020
2021
2022
2023
Thereafter
 
(in millions)
Southern Company
$
282

$
490

$
320

$
311

$
302

$
2,230

Alabama Power
11

23

27

23

22

140

Georgia Power
27

51

44

31

31

83

Southern Power
169

295

270

276

269

2,154

Revenues expected to be recognized for performance obligations remaining at June 30, 2019 were immaterial for Mississippi Power.