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LEASES (Tables)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Major categories of lease obligations The major categories of lease obligations are as follows:
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
As of December 31, 2020
Electric generating units$941 $146 $1,368 $— $— $— 
Real estate/land815 4 53 2 451 61 
Communication towers158 2 3 — — 20 
Railcars42 16 23 3 — — 
Other127 7 5 23 — 1 
Total$2,083 $175 $1,452 $28 $451 $82 
As of December 31, 2019
Electric generating units$990 $125 $1,487 $— $— $— 
Real estate/land782 4 54 2 398 74 
Communication towers154 2 3 — — 18 
Railcars51 21 26 3 — — 
Other93 8 12 1 — — 
Total$2,070 $160 $1,582 $6 $398 $92 
Balance sheet amounts recorded for operating and financing leases
Balance sheet amounts recorded for operating and finance leases are as follows:
Southern CompanyAlabama
Power		Georgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
As of December 31, 2020
Operating Leases
Operating lease ROU assets, net$1,802 $151 $1,308 $9 $415 $81 
Operating lease obligations - current$241 $51 $151 $2 $25 $15 
Operating lease obligations - non-current1,611 119 1,156 7 426 67 
Total operating lease obligations$1,852 $170 $1,307 $9 $451 $82 
Finance Leases
Finance lease ROU assets, net$218 $5 $115 $19 $— $— 
Finance lease obligations - current$17 $1 $9 $1 $— $— 
Finance lease obligations - non-current214 4 136 18 — — 
Total finance lease obligations $231 $5 $145 $19 $— $— 
As of December 31, 2019
Operating Leases
Operating lease ROU assets, net$1,800 $132 $1,428 $6 $369 $93 
Operating lease obligations - current$229 $49 $144 $2 $22 $14 
Operating lease obligations - non-current1,615 107 1,282 4 376 78 
Total operating lease obligations$1,844 $156 $1,426 $6 $398 $92 
Finance Leases
Finance lease ROU assets, net$216 $4 $130 $— $— $— 
Finance lease obligations - current$21 $1 $11 $— $— $— 
Finance lease obligations - non-current205 3 145 — — — 
Total finance lease obligations$226 $4 $156 $— $— $— 
Lease costs and other information
Lease costs for 2020 and 2019, which includes both amounts recognized as operations and maintenance expense and amounts capitalized as part of the cost of another asset, are as follows:
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
2020
Lease cost
Operating lease cost $309 $55 $212 $3 $29 $19 
Finance lease cost:
Amortization of ROU assets26 1 15 — — — 
Interest on lease obligations11 — 16 — — — 
Total finance lease cost37 1 31 — — — 
Short-term lease costs 39 11 26 — — — 
Variable lease cost91 4 76 — 7 — 
Sublease income— (1)— — — — 
Total lease cost $476 $70 $345 $3 $36 $19 
2019
Lease cost
Operating lease cost$310 $54 $206 $3 $28 $18 
Finance lease cost:
Amortization of ROU assets28 1 15 — — — 
Interest on lease obligations12 — 18 — — — 
Total finance lease cost40 1 33 — — — 
Short-term lease costs48 19 22 — — — 
Variable lease cost105 6 85 — 7 — 
Sublease income— (1)— — — — 
Total lease cost$503 $79 $346 $3 $35 $18 
Rent expense and PPA capacity expense related to leases for 2018, prior to the adoption of ASC 842, were as follows:
Southern Company(a)(b)(c)
Alabama
Power
Georgia
Power(a)
Mississippi
Power(b)
Southern Power(c)
Southern Company Gas
 (in millions)
2018:
Rent expense$192 $23 $34 $4 $31 $15 
PPA capacity expense231 44 206 — — — 
(a)Georgia Power's energy-only solar PPAs accounted for as leases contained contingent rent expense of $72 million, of which $29 million related to solar PPAs with Southern Power.
(b)Mississippi Power's energy-only solar PPAs accounted for as operating leases contained contingent rent expense of $10 million.
(c)Rent expense includes contingent rent expense related to Southern Power's land leases based on wind production and escalation in the Consumer Price Index for All Urban Consumers.
Other information with respect to cash and noncash activities related to leases, as well as weighted-average lease terms and discount rates, is as follows:
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
2020
Other information
Cash paid for amounts included in the measurements of lease obligations:
Operating cash flows from operating leases$310 $55 $215 $3 $28 $18 
Operating cash flows from finance leases9 — 18 — — — 
Financing cash flows from finance leases22 1 11 — — — 
ROU assets obtained in exchange for new operating lease obligations227 63 32 — 51 4 
ROU assets obtained in exchange for new finance lease obligations 10 2 — — — — 
2019
Other information
Cash paid for amounts included in the measurements of lease obligations:
Operating cash flows from operating leases$323 $54 $210 $3 $27 $18 
Operating cash flows from finance leases10 — 19 — — — 
Financing cash flows from finance leases32 1 13 — — — 
ROU assets obtained in exchange for new operating lease obligations118 7 21 — 2 19 
ROU assets obtained in exchange for new finance lease obligations35 2 24 — — — 
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
As of December 31, 2020
Weighted-average remaining lease term in years:
Operating leases14.57.89.46.532.19.8
Finance leases18.29.79.514.9N/AN/A
Weighted-average discount rate:
Operating leases 4.44 %4.14 %4.37 %3.26 %5.45 %3.67 %
Finance leases4.79 %3.20 %10.81 %2.74 %N/AN/A
As of December 31, 2019
Weighted-average remaining lease term in years:
Operating leases14.23.110.27.032.89.9
Finance leases18.812.110.5N/AN/AN/A
Weighted-average discount rate:
Operating leases4.53 %3.33 %4.46 %4.02 %5.66 %3.7 %
Finance leases5.04 %3.60 %10.76 %N/AN/AN/A
Maturities of operating lease liabilities
Maturities of lease liabilities are as follows:
As of December 31, 2020
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
Maturity Analysis
Operating leases:
2021$300 $57 $205 $2 $30 $18 
2022287 58 202 4 25 14 
2023230 9 200 1 27 12 
2024187 6 164 1 27 11 
2025165 6 137 — 27 10 
Thereafter1,546 74 701 2 873 35 
Total2,715 210 1,609 10 1,009 100 
Less: Present value discount 863 40 302 1 558 18 
Operating lease obligations $1,852 $170 $1,307 $9 $451 $82 
Finance leases:
2021$28 $1 $24 $2 $— $— 
202225 1 25 1 — — 
202322 1 25 2 — — 
202419 1 25 1 — — 
202516 — 25 2 — — 
Thereafter246 1 109 15 — — 
Total356 5 233 23 — — 
Less: Present value discount125 — 88 4 — — 
Finance lease obligations$231 $5 $145 $19 $— $— 
Maturities of finance lease liabilities
Maturities of lease liabilities are as follows:
As of December 31, 2020
Southern
Company		Alabama
Power		Georgia
Power		Mississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
Maturity Analysis
Operating leases:
2021$300 $57 $205 $2 $30 $18 
2022287 58 202 4 25 14 
2023230 9 200 1 27 12 
2024187 6 164 1 27 11 
2025165 6 137 — 27 10 
Thereafter1,546 74 701 2 873 35 
Total2,715 210 1,609 10 1,009 100 
Less: Present value discount 863 40 302 1 558 18 
Operating lease obligations $1,852 $170 $1,307 $9 $451 $82 
Finance leases:
2021$28 $1 $24 $2 $— $— 
202225 1 25 1 — — 
202322 1 25 2 — — 
202419 1 25 1 — — 
202516 — 25 2 — — 
Thereafter246 1 109 15 — — 
Total356 5 233 23 — — 
Less: Present value discount125 — 88 4 — — 
Finance lease obligations$231 $5 $145 $19 $— $— 
Leases not yet commenced
As of December 31, 2020, Southern Power has additional leases that have not yet commenced, as detailed in the following table:
Southern
Power
Lease categoryLand
Expected commencement date2021
Longest lease term expiration30 years
Estimated total obligations (in millions)
$12
Lease income, operating leases
Lease income for 2020 and 2019 is as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
2020
Lease income - interest income on sales-type leases$16 $— $— $12 $— $— 
Lease income - operating leases208 45 58 2 87 35 
Variable lease income419 — — — 449 — 
Total lease income$643 $45 $58 $14 $536 $35 
2019
Lease income - interest income on sales-type leases$9 $— $— $9 $— $— 
Lease income - operating leases273 24 71 — 160 35 
Variable lease income403 — — — 434 — 
Total lease income$685 $24 $71 $9 $594 $35 
Lease income, sales-type leases
Lease income for 2020 and 2019 is as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
2020
Lease income - interest income on sales-type leases$16 $— $— $12 $— $— 
Lease income - operating leases208 45 58 2 87 35 
Variable lease income419 — — — 449 — 
Total lease income$643 $45 $58 $14 $536 $35 
2019
Lease income - interest income on sales-type leases$9 $— $— $9 $— $— 
Lease income - operating leases273 24 71 — 160 35 
Variable lease income403 — — — 434 — 
Total lease income$685 $24 $71 $9 $594 $35 
Undiscounted cash flows to be received under tolling arrangements accounted for as sales-type leases The undiscounted cash flows to be received by Mississippi Power for in-service leased assets under the lease are as follows:
At December 31, 2020
 (in millions)
2021$20 
202219 
202319 
202418 
202517 
Thereafter162 
Total undiscounted cash flows$255 
Lease receivable(*)
138 
Difference between undiscounted cash flows and discounted cash flows$117 
(*)Included in other current assets and other property and investments on the balance sheets.
Undiscounted cash flows to be received under PPAs accounted for as operating leases
The undiscounted cash flows to be received under operating leases and contracts accounted for as operating leases (adjusted for intercompany eliminations) are as follows:
At December 31, 2020
Southern
Company		Alabama
Power		Georgia PowerSouthern
Power		Southern Company Gas
 (in millions)
2021$207 $83 $19 $86 $35 
2022187 76 8 87 35 
2023138 32 2 88 34 
2024106 4 — 90 33 
202599 3 — 74 28 
Thereafter978 23 — 313 435 
Total$1,715 $221 $29 $738 $600