Revenue from Contracts with Customers and Lease Income (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

The following table disaggregates revenue from contracts with customers for the three and nine months ended September 30, 2021 and 2020:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2021
Operating revenues
Retail electric revenues
Residential	$	1,974	$	750	$	1,138	$	86	$	—	$	—
Commercial	1,432		471		882		79		—		—
Industrial	902		394		428		80		—		—
Other	24		4		18		2		—		—
Total retail electric revenues	4,332		1,619		2,466		247		—		—
Natural gas distribution revenues
Residential	218		—		—		—		—		218
Commercial	55		—		—		—		—		55
Transportation	239		—		—		—		—		239
Industrial	6		—		—		—		—		6
Other	31		—		—		—		—		31
Total natural gas distribution revenues	549		—		—		—		—		549
Wholesale electric revenues
PPA energy revenues	359		61		41		2		261		—
PPA capacity revenues	125		14		14		1		97		—
Non-PPA revenues	63		54		3		120		134		—
Total wholesale electric revenues	547		129		58		123		492		—
Other natural gas revenues


Gas marketing services	45		—		—		—		—		45
Other natural gas revenues	11		—		—		—		—		11
Total natural gas revenues	56		—		—		—		—		56
Other revenues	248		53		112		8		9		—
Total revenue from contracts with customers	5,732		1,801		2,636		378		501		605
Other revenue sources(a)	506		103		220		—		178		18

Total operating revenues	$	6,238	$	1,904	$	2,856	$	378	$	679	$	623


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2021
Operating revenues
Retail electric revenues
Residential	$	4,910	$	1,931	$	2,765	$	214	$	—	$	—
Commercial	3,727		1,229		2,293		205		—		—
Industrial	2,299		1,048		1,034		217		—		—
Other	70		13		51		6		—		—
Total retail electric revenues	11,006		4,221		6,143		642		—		—
Natural gas distribution revenues
Residential	1,143		—		—		—		—		1,143
Commercial	298		—		—		—		—		298
Transportation	775		—		—		—		—		775
Industrial	29		—		—		—		—		29
Other	187		—		—		—		—		187
Total natural gas distribution revenues	2,432		—		—		—		—		2,432
Wholesale electric revenues
PPA energy revenues	782		143		71		9		575		—
PPA capacity revenues	375		86		41		4		247		—
Non-PPA revenues	181		108		14		283		273		—
Total wholesale electric revenues	1,338		337		126		296		1,095		—
Other natural gas revenues

Wholesale gas services	2,168		—		—		—		—		2,168
Gas marketing services	303		—		—		—		—		303
Other natural gas revenues	27		—		—		—		—		27
Total natural gas revenues	2,498		—		—		—		—		2,498
Other revenues	792		150		362		22		18		—
Total revenue from contracts with customers	18,066		4,708		6,631		960		1,113		4,930
Other revenue sources(a)	2,979		311		419		28		497		1,763
Other adjustments(b)	(3,699)		—		—		—		—		(3,699)
Total operating revenues	$	17,346	$	5,019	$	7,050	$	988	$	1,610	$	2,994


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Three Months Ended September 30, 2020
Operating revenues
Retail electric revenues
Residential	$	2,019	$	752	$	1,183	$	84	$	—	$	—
Commercial	1,354		447		833		74		—		—
Industrial	783		358		352		73		—		—
Other	22		5		15		2		—		—
Total retail electric revenues	4,178		1,562		2,383		233		—		—
Natural gas distribution revenues
Residential	170		—		—		—		—		170
Commercial	41		—		—		—		—		41
Transportation	224		—		—		—		—		224
Industrial	4		—		—		—		—		4
Other	35		—		—		—		—		35
Total natural gas distribution revenues	474		—		—		—		—		474
Wholesale electric revenues
PPA energy revenues	214		40		13		2		165		—
PPA capacity revenues	136		26		15		1		95		—
Non-PPA revenues	59		10		3		93		68		—
Total wholesale electric revenues	409		76		31		96		328		—
Other natural gas revenues

Wholesale gas services	431		—		—		—		—		431
Gas marketing services	38		—		—		—		—		38
Other natural gas revenues	7		—		—		—		—		7
Total natural gas revenues	476		—		—		—		—		476
Other revenues	218		33		115		6		4		—
Total revenue from contracts with customers	5,755		1,671		2,529		335		332		950
Other revenue sources(a)	968		58		88		1		191		630
Other adjustments(b)	(1,103)		—		—		—		—		(1,103)
Total operating revenues	$	5,620	$	1,729	$	2,617	$	336	$	523	$	477


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Nine Months Ended September 30, 2020
Operating revenues
Retail electric revenues
Residential	$	4,802	$	1,839	$	2,760	$	203	$	—	$	—
Commercial	3,589		1,152		2,242		195		—		—
Industrial	2,081		956		907		218		—		—
Other	68		16		46		6		—		—
Total retail electric revenues	10,540		3,963		5,955		622		—		—
Natural gas distribution revenues
Residential	906		—		—		—		—		906
Commercial	229		—		—		—		—		229
Transportation	723		—		—		—		—		723
Industrial	21		—		—		—		—		21
Other	179		—		—		—		—		179
Total natural gas distribution revenues	2,058		—		—		—		—		2,058
Wholesale electric revenues
PPA energy revenues	550		94		38		7		425		—
PPA capacity revenues	339		78		30		3		231		—
Non-PPA revenues	159		33		7		235		184		—
Total wholesale electric revenues	1,048		205		75		245		840		—
Other natural gas revenues

Wholesale gas services	1,168		—		—		—		—		1,168
Gas marketing services	258		—		—		—		—		258
Other natural gas revenues	22		—		—		—		—		22
Total natural gas revenues	1,448		—		—		—		—		1,448
Other revenues	677		117		329		19		11		—
Total revenue from contracts with customers	15,771		4,285		6,359		886		851		3,506
Other revenue sources(a)	2,604		160		12		9		486		1,973
Other adjustments(b)	(3,117)		—		—		—		—		(3,117)
Total operating revenues	$	15,258	$	4,445	$	6,371	$	895	$	1,337	$	2,362

(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 Notes (K) and (L) under "Southern Company Gas" for information on the sale of Sequent and components of wholesale gas services' operating revenues, respectively.

Schedule of Contract Balances

The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers at September 30, 2021 and December 31, 2020:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivable
At September 30, 2021	$	2,343	$	712	$	904	$	90	$	170	$	329
At December 31, 2020	2,614		632		806		77		112		788
Contract Assets
At September 30, 2021	$	165	$	5	$	103	$	—	$	1	$	—
At December 31, 2020	158		2		71		—		—		—
Contract Liabilities
At September 30, 2021	$	65	$	6	$	39	$	1	$	2	$	—
At December 31, 2020	61		6		27		1		1		1

Schedule of Remaining Performance Obligations

Revenues from contracts with customers related to these performance obligations remaining at September 30, 2021 are expected to be recognized as follows:


	2021 (remaining)		2022		2023		2024		2025		Thereafter
	(in millions)
Southern Company	$	156	$	543	$	347	$	327	$	307	$	2,667
Alabama Power	13		32		24		7		5		—
Georgia Power	22		64		43		23		21		41

Southern Power	70		323		281		297		281		2,644

Schedule of Lease Income

Lease income for the three and nine months ended September 30, 2021 and 2020 is as follows:


	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
For the Three Months Ended September 30, 2021
Lease income - interest income on sales-type leases	$	4	$	—	$	—	$	4	$	—	$	—
Lease income - operating leases	56		21		11		—		21		9
Variable lease income	143		—		—		—		151		—
Total lease income	$	203	$	21	$	11	$	4	$	172	$	9

For the Nine Months Ended September 30, 2021
Lease income - interest income on sales-type leases	$	11	$	—	$	—	$	10	$	—	$	—
Lease income - operating leases	168		62		31		1		64		26
Variable lease income	355		—		—		—		379		—
Total lease income	$	534	$	62	$	31	$	11	$	443	$	26

For the Three Months Ended September 30, 2020
Lease income - interest income on sales-type leases	$	3	$	—	$	—	$	3	$	—	$	—
Lease income - operating leases	50		11		14		—		21		9
Variable lease income	145		—		—		—		153		—
Total lease income	$	198	$	11	$	14	$	3	$	174	$	9

For the Nine Months Ended September 30, 2020
Lease income - interest income on sales-type leases	$	8	$	—	$	—	$	8	$	—	$	—
Lease income - operating leases	148		24		44		1		66		26
Variable lease income	345		—		—		—		368		—
Total lease income	$	501	$	24	$	44	$	9	$	434	$	26

Undiscounted Cash Flows to be Received Under Sales-type Leases

The undiscounted cash flows expected to be received by Southern Power for assets under the lease are as follows:


	At September 30, 2021
	(in millions)
2021 (remaining)	$	2
2022	8
2023	8
2024	8
2025	8
2026	8
Thereafter	115
Total undiscounted cash flows	$	157
Net investment in sales-type lease(*)	99
Difference between undiscounted cash flows and discounted cash flows	$	58

(*)Included in other current assets and other property and investments on the balance sheet.