Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 224

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 224
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 783 1,244 113 106 660 Contract AssetsAt June 30, 2025$304 $— $134 $— $— $74 At December 31, 2024323 3 184 — — 72 Contract LiabilitiesAt June 30, 2025$170 $14 $73 $2 $1 $— At December 31, 2024140 11 34 — 2 3 Contract assets for Georgia Power primarily relate to unregulated service agreements, where payment is contingent on project completion, and 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. Contract liabilities for Georgia Power primarily relate to cash collections recognized in advance of revenue for unregulated service agreements. Southern Company Gas' contract assets relate to work performed on an energy efficiency enhancement and upgrade contract with the U.S. General Services Administration. Southern Company Gas received cash advances totaling approximately $68 million from a third-party financial institution to fund work performed. These advances have been accounted for as long-term debt on the balance sheets. See Note 1 to the financial statements under "Affiliate Transactions" in Item 8 of the Form 10-K for additional information regarding the construction contract. At June 30, 2025 and December 31, 2024, Southern Company's unregulated distributed generation business had contract assets of $95 million and $67 million, respectively, and contract liabilities of $81 million and $95 million, respectively, for outstanding performance obligations, all of which are expected to be satisfied within one year.Revenues recognized in the three and six months ended June 30, 2025, which were included in contract liabilities at December 31, 2024, were $44 million and $72 million, respectively, for Southern Company, $11 million and $16 million, respectively, for Georgia Power, and immaterial for the other Registrants. Contract liabilities are primarily classified as current on the balance sheets as the corresponding revenues are generally expected to be recognized within one year.Remaining Performance ObligationsSouthern Company's subsidiaries may enter into 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.