Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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 with Customer, Asset and Liability and Revenue Recognized

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

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.

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

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