REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2020

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 not accounted for as revenue from contracts with customers, such as leases, derivatives, and certain cost recovery mechanisms. See Note 1 under "Revenues" for additional information on the revenue policies of the Registrants. See Notes 9 and 14 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 periods presented:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2020
Operating revenues
Retail electric revenues
Residential	$	6,113	$	2,377	$	3,476	$	260	$	—	$	—
Commercial	4,699		1,512		2,933		254		—		—
Industrial	2,775		1,293		1,197		285		—		—
Other	90		21		60		9		—		—
Total retail electric revenues	13,677		5,203		7,666		808		—		—
Natural gas distribution revenues
Residential	1,338		—		—		—		—		1,338
Commercial	340		—		—		—		—		340
Transportation	971		—		—		—		—		971
Industrial	30		—		—		—		—		30
Other	209		—		—		—		—		209
Total natural gas distribution revenues	2,888		—		—		—		—		2,888
Wholesale electric revenues
PPA energy revenues	735		133		42		9		570		—
PPA capacity revenues	454		108		50		3		296		—
Non-PPA revenues	210		43		10		311		239		—
Total wholesale electric revenues	1,399		284		102		323		1,105		—
Other natural gas revenues
Wholesale gas services	1,727		—		—		—		—		1,727
Gas marketing services	391		—		—		—		—		391
Other natural gas revenues	33		—		—		—		—		33
Total natural gas revenues	2,151		—		—		—		—		2,151
Other revenues	982		159		447		26		14		—
Total revenue from contracts with customers	21,097		5,646		8,215		1,157		1,119		5,039
Other revenue sources(a)	3,764		184		94		15		614		2,881
Other adjustments(b)	(4,486)		—		—		—		—		(4,486)
Total operating revenues	$	20,375	$	5,830	$	8,309	$	1,172	$	1,733	$	3,434

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2019
Operating revenues
Retail electric revenues
Residential	$	6,164	$	2,509	$	3,377	$	278	$	—	$	—
Commercial	5,065		1,677		3,097		291		—		—
Industrial	3,126		1,460		1,360		306		—		—
Other	90		25		54		11		—		—
Total retail electric revenues	14,445		5,671		7,888		886		—		—
Natural gas distribution revenues
Residential	1,413		—		—		—		—		1,413
Commercial	389		—		—		—		—		389
Transportation	907		—		—		—		—		907
Industrial	35		—		—		—		—		35
Other	245		—		—		—		—		245
Total natural gas distribution revenues	2,989		—		—		—		—		2,989
Wholesale electric revenues
PPA energy revenues	833		145		60		11		648		—
PPA capacity revenues	453		102		54		3		322		—
Non-PPA revenues	232		81		9		352		238		—
Total wholesale electric revenues	1,518		328		123		366		1,208		—
Other natural gas revenues
Gas pipeline investments	32		—		—		—		—		32
Wholesale gas services	2,095		—		—		—		—		2,095
Gas marketing services	440		—		—		—		—		440
Other natural gas revenues	42		—		—		—		—		42
Total other natural gas revenues	2,609		—		—		—		—		2,609
Other revenues	1,035		153		407		19		12		—
Total revenue from contracts with customers	22,596		6,152		8,418		1,271		1,220		5,598
Other revenue sources(a)	4,266		(27)		(10)		(7)		718		3,637
Other adjustments(b)	(5,443)		—		—		—		—		(5,443)
Total operating revenues	$	21,419	$	6,125	$	8,408	$	1,264	$	1,938	$	3,792

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2018
Operating revenues
Retail electric revenues
Residential	$	6,586	$	2,285	$	3,295	$	277	$	—	$	—
Commercial	5,255		1,541		3,025		290		—		—
Industrial	3,152		1,364		1,321		326		—		—
Other	94		25		56		9		—		—
Total retail electric revenues	15,087		5,215		7,697		902		—		—
Natural gas distribution revenues
Residential	1,525		—		—		—		—		1,525
Commercial	436		—		—		—		—		436
Transportation	944		—		—		—		—		944
Industrial	40		—		—		—		—		40
Other	230		—		—		—		—		230
Total natural gas distribution revenues	3,175		—		—		—		—		3,175
Wholesale electric revenues
PPA energy revenues	950		158		81		15		727		—
PPA capacity revenues	498		101		53		6		394		—
Non-PPA revenues	263		119		24		329		230		—
Total wholesale electric revenues	1,711		378		158		350		1,351		—
Other natural gas revenues
Gas pipeline investments	32		—		—		—		—		32
Wholesale gas services	3,083		—		—		—		—		3,083
Gas marketing services	571		—		—		—		—		571
Other natural gas revenues	53		—		—		—		—		53
Total other natural gas revenues	3,739		—		—		—		—		3,739
Other revenues	1,529		210		236		22		13		—
Total revenue from contracts with customers	25,241		5,803		8,091		1,274		1,364		6,914
Other revenue sources(a)	5,108		229		329		(9)		841		3,849
Other adjustments(b)	(6,854)		—		—		—		—		(6,854)
Total operating revenues	$	23,495	$	6,032	$	8,420	$	1,265	$	2,205	$	3,909

(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 16 under "Southern Company Gas" for additional information on the components of wholesale gas services' operating revenues.

Contract Balances

The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers at December 31, 2020 and 2019:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivables
As of December 31, 2020	$	2,614	$	632	$	806	$	77	$	112	$	788
As of December 31, 2019	2,413		586		688		79		97		749
Contract Assets
As of December 31, 2020	$	158	$	2	$	71	$	—	$	—	$	—
As of December 31, 2019	117		—		69		—		—		—
Contract Liabilities
As of December 31, 2020	$	61	$	6	$	27	$	1	$	1	$	1
As of December 31, 2019	52		10		13		—		1		1

As of December 31, 2020 and 2019, 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 a one-year contract term. Contract liabilities for Georgia Power relate to cash collections recognized in advance of revenue for certain unregulated service agreements. Alabama Power had contract liabilities for outstanding performance obligations primarily related to pole attachment and extended service agreements. Southern Company's unregulated distributed generation business had contract assets of $81 million and $40 million at December 31, 2020 and 2019, respectively, and contract liabilities of $27 million and $28 million at December 31, 2020 and 2019, respectively, for outstanding performance obligations.

The following table reflects revenue from contracts with customers recognized in 2020 and 2019 included in the contract liability at December 31, 2019 and December 31, 2018, respectively, for the applicable Registrants:

	Southern Company		Alabama Power		Georgia Power		Southern Power		Southern Company Gas
	(in millions)
Revenue Recognized
2020	$	33	$	10	$	8	$	1	$	1
2019	30		11		6		11		2

Remaining Performance Obligations

The traditional electric operating companies and Southern Power have long-term contracts with customers in which revenues are recognized as performance obligations are satisfied over 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. Revenues from contracts with customers related to these performance obligations remaining at December 31, 2020 are expected to be recognized as follows:

	2021		2022		2023		2024		2025		Thereafter
	(in millions)
Southern Company	$	547	$	395	$	338	$	326	$	306	$	2,634
Alabama Power	33		31		24		7		5		—
Georgia Power	75		46		35		24		21		42
Southern Power	285		287		280		296		280		2,610

Revenue expected to be recognized for performance obligations remaining at December 31, 2020 was immaterial for Mississippi Power.