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Revenue from Contracts with Customers and Lease Income
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers and Lease Income REVENUE FROM CONTRACTS WITH CUSTOMERS AND LEASE INCOME
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 to the financial statements under "Revenues" in Item 8 of the Form 10-K for additional information on the revenue policies of the Registrants. See "Lease Income" herein and Note (J) 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 three months ended March 31, 2021 and 2020:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended March 31, 2021
Operating revenues
Retail electric revenues
Residential$1,468 $628 $776 $64 $— $— 
Commercial1,117 372 686 59 — — 
Industrial668 320 284 64 — — 
Other24 5 17 2 — — 
Total retail electric revenues3,277 1,325 1,763 189 — — 
Natural gas distribution revenues
Residential614 — — — — 614 
Commercial170 — — — — 170 
Transportation288 — — — — 288 
Industrial 16 — — — — 16 
Other97 — — — — 97 
Total natural gas distribution revenues1,185 — — — — 1,185 
Wholesale electric revenues
PPA energy revenues212 43 13 4 156 — 
PPA capacity revenues119 29 13 3 75 — 
Non-PPA revenues67 32 9 88 61 — 
Total wholesale electric revenues398 104 35 95 292 — 
Other natural gas revenues
Wholesale gas services1,590 — — — — 1,590 
Gas marketing services194 — — — — 194 
Other natural gas revenues7 — — — — 7 
Total natural gas revenues1,791 — — — — 1,791 
Other revenues249 46 113 8 4 — 
Total revenue from contracts with customers6,900 1,475 1,911 292 296 2,976 
Other revenue sources(a)
1,306 84 59 15 144 1,014 
Other adjustments(b)
(2,296)— — — — (2,296)
Total operating revenues$5,910 $1,559 $1,970 $307 $440 $1,694 
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Three Months Ended March 31, 2020
Operating revenues
Retail electric revenues
Residential$1,370 $553 $760 $57 $— $— 
Commercial1,146 364 720 62 — — 
Industrial680 321 281 78 — — 
Other23 5 16 2 — — 
Total retail electric revenues3,219 1,243 1,777 199 — — 
Natural gas distribution revenues
Residential496 — — — — 496 
Commercial130 — — — — 130 
Transportation264 — — — — 264 
Industrial 12 — — — — 12 
Other97 — — — — 97 
Total natural gas distribution revenues999 — — — — 999 
Wholesale electric revenues
PPA energy revenues159 27 9 2 125 — 
PPA capacity revenues105 27 12 1 66 — 
Non-PPA revenues51 19 2 69 58 — 
Total wholesale electric revenues315 73 23 72 249 — 
Other natural gas revenues
Wholesale gas services396 — — — — 396 
Gas marketing services163 — — — — 163 
Other natural gas revenues7 — — — — 7 
Total natural gas revenues566 — — — — 566 
Other revenues192 37 95 5 3 — 
Total revenue from contracts with customers5,291 1,353 1,895 276 252 1,565 
Other revenue sources(a)
868 (2)(70)1 123 825 
Other adjustments(b)
(1,141)— — — — (1,141)
Total operating revenues$5,018 $1,351 $1,825 $277 $375 $1,249 
(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 (L) 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 March 31, 2021 and December 31, 2020:
Southern CompanyAlabama PowerGeorgia PowerMississippi PowerSouthern PowerSouthern Company Gas
(in millions)
Accounts Receivable
As of March 31, 2021$2,375 $567 $679 $87 $85 $778 
As of December 31, 20202,614 632 806 77 112 788 
Contract Assets
As of March 31, 2021$106 $1 $47 $— $— $— 
As of December 31, 2020158 2 71 — — — 
Contract Liabilities
As of March 31, 2021$75 $4 $34 $1 $1 $1 
As of December 31, 202061 6 27 1 1 1 
As of March 31, 2021 and December 31, 2020, 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 $55 million and $81 million of contract assets and $34 million and $27 million of contract liabilities at March 31, 2021 and December 31, 2020, respectively, for outstanding performance obligations.
Revenues recognized in the three months ended March 31, 2021, which were included in contract liabilities at December 31, 2020, were immaterial for all Registrants.
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 March 31, 2021 are expected to be recognized as follows:
2021 (remaining)2022202320242025Thereafter
(in millions)
Southern Company$485 $408 $340 $327 $307 $2,666 
Alabama Power24 31 24 7 5 — 
Georgia Power57 51 36 24 21 41 
Southern Power213 287 280 296 280 2,644 
Revenue expected to be recognized for performance obligations remaining at March 31, 2021 was immaterial for Mississippi Power and Southern Company Gas.
Lease Income
Lease income for the three months ended March 31, 2021 and 2020 is as follows:
Southern
Company		Alabama PowerGeorgia PowerMississippi
Power		Southern PowerSouthern Company Gas
 (in millions)
For the Three Months Ended March 31, 2021
Lease income - interest income on sales-type leases$3 $— $— $3 $— $— 
Lease income - operating leases55 21 10 — 21 9 
Variable lease income84 — — — 90 — 
Total lease income$142 $21 $10 $3 $111 $9 
For the Three Months Ended March 31, 2020
Lease income - interest income on sales-type leases$3 $— $— $3 $— $— 
Lease income - operating leases51 6 16 — 24 9 
Variable lease income74 — — — 80 — 
Total lease income$128 $6 $16 $3 $104 $9 
Lease payments received under tolling arrangements and PPAs consist of either scheduled payments or variable payments based on the amount of energy produced by the underlying electric generating units. Lease income for Alabama Power and Southern Power is included in wholesale revenues.