REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2022

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)
2022
Operating revenues
Retail electric revenues
Residential	$	6,604	$	2,638	$	3,664	$	302	$	—	$	—
Commercial	5,369		1,685		3,385		299		—		—
Industrial	3,764		1,507		1,921		336		—		—
Other	102		14		79		9		—		—
Total retail electric revenues	15,839		5,844		9,049		946		—		—
Natural gas distribution revenues
Residential	2,843		—		—		—		—		2,843
Commercial	763		—		—		—		—		763
Transportation	1,186		—		—		—		—		1,186
Industrial	84		—		—		—		—		84
Other	342		—		—		—		—		342
Total natural gas distribution revenues	5,218		—		—		—		—		5,218
Wholesale electric revenues
PPA energy revenues	2,274		489		130		16		1,673		—
PPA capacity revenues	596		194		47		4		356		—
Non-PPA revenues	250		200		30		690		740		—
Total wholesale electric revenues	3,120		883		207		710		2,769		—
Other natural gas revenues
Gas marketing services	636		—		—		—		—		636
Other natural gas revenues	51		—		—		—		—		51
Total natural gas revenues	687		—		—		—		—		687
Other revenues	1,077		194		446		47		36		—
Total revenue from contracts with customers	25,941		6,921		9,702		1,703		2,805		5,905
Other revenue sources(a)	3,338		896		1,882		(9)		564		57
Total operating revenues	$	29,279	$	7,817	$	11,584	$	1,694	$	3,369	$	5,962

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
2021
Operating revenues
Retail electric revenues
Residential	$	6,207	$	2,467	$	3,471	$	269	$	—	$	—
Commercial	4,877		1,600		3,010		267		—		—
Industrial	3,067		1,386		1,391		290		—		—
Other	93		17		68		8		—		—
Total retail electric revenues	14,244		5,470		7,940		834		—		—
Natural gas distribution revenues
Residential	1,799		—		—		—		—		1,799
Commercial	470		—		—		—		—		470
Transportation	1,038		—		—		—		—		1,038
Industrial	49		—		—		—		—		49
Other	269		—		—		—		—		269
Total natural gas distribution revenues	3,625		—		—		—		—		3,625
Wholesale electric revenues
PPA energy revenues	1,122		184		95		11		854		—
PPA capacity revenues	493		115		55		5		323		—
Non-PPA revenues	236		170		21		401		398		—
Total wholesale electric revenues	1,851		469		171		417		1,575		—
Other natural gas revenues
Wholesale gas services	2,168		—		—		—		—		2,168
Gas marketing services	464		—		—		—		—		464
Other natural gas revenues	36		—		—		—		—		36
Total other natural gas revenues	2,668		—		—		—		—		2,668
Other revenues	1,075		202		452		31		30		—
Total revenue from contracts with customers	23,463		6,141		8,563		1,282		1,605		6,293
Other revenue sources(a)	3,349		272		697		40		611		1,786
Other adjustments(b)	(3,699)		—		—		—		—		(3,699)
Total operating revenues	$	23,113	$	6,413	$	9,260	$	1,322	$	2,216	$	4,380

	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 other 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

(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 15 and 16 under "Southern Company Gas" for information on the sale of Sequent and components of wholesale gas services' operating revenues, respectively.

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, 2022 and 2021:

	Southern Company		Alabama Power		Georgia Power		Mississippi Power		Southern Power		Southern Company Gas
	(in millions)
Accounts Receivable
At December 31, 2022	$	3,123	$	696	$	922	$	92	$	237	$	1,107
At December 31, 2021	2,504		589		736		73		149		753
Contract Assets
At December 31, 2022	$	156	$	2	$	89	$	—	$	—	$	—
At December 31, 2021	117		2		63		—		1		—
Contract Liabilities
At December 31, 2022	$	45	$	4	$	9	$	—	$	1	$	—
At December 31, 2021	57		4		14		—		1		—

At December 31, 2022 and 2021, Georgia Power had contract assets primarily related to retail customer fixed 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, and unregulated service agreements, where payment is contingent on project completion. Contract liabilities for Georgia Power relate to cash collections recognized in advance of revenue for unregulated service agreements. Southern Company's unregulated distributed generation business had contract assets of $65 million and $50 million at December 31, 2022 and 2021, respectively, and contract liabilities of $32 million and $39 million at December 31, 2022 and 2021, respectively, for outstanding performance obligations.

Revenues recognized in 2022 and 2021, which were included in contract liabilities at December 31, 2021 and December 31, 2020, respectively, were $36 million and $29 million, respectively, for Southern Company and immaterial for the other Registrants.

Remaining Performance Obligations

The Subsidiary Registrants have long-term contracts with customers in which revenues are recognized as performance obligations are satisfied over the contract term. For the traditional electric operating companies and Southern Power, these contracts primarily relate to PPAs whereby electricity and generation capacity are provided 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. For Southern Company Gas, these contracts involve energy infrastructure enhancement and upgrade projects for certain governmental customers. 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, 2022 are expected to be recognized as follows:

	2023		2024		2025		2026		2027		Thereafter
	(in millions)
Southern Company	$	640	$	483	$	332	$	311	$	315	$	2,076
Alabama Power	24		7		6		—		—		—
Georgia Power	74		39		22		11		10		10
Southern Power	355		345		302		303		310		2,077
Southern Company Gas	34		29		—		—		—		—

Revenue expected to be recognized for performance obligations remaining at December 31, 2022 was immaterial for Mississippi Power.