SOUTHERN COMPANY
Table of Contents

SECURITIES AND EXCHANGE COMMISSION


Washington, D. C. 20549


FORM U5S

ANNUAL REPORT

For the Fiscal Year Ended December 31, 2004

Filed pursuant to the Public Utility Holding Company Act of 1935

by

THE SOUTHERN COMPANY

270 PEACHTREE STREET, N. W.

ATLANTA, GEORGIA 30303

 


THE SOUTHERN COMPANY
FORM U5S
2004

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Table of Contents

ITEMS

ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

                                                   
 
        Number of                            
  Name of Company     Common     Percentage     Issuer     Owner’s     Type  
  (Add abbreviation     Shares     of     Book     Book     of  
  used herein)     Owned     Voting Power     Value     Value     Company  
                            (In thousands)          
 
THE SOUTHERN COMPANY (SOUTHERN)
      None         None         n/a         n/a       Registered holding  
 
unsecured debts
                        $ 118,157 (a)     $ 118,157       company  
 
ALABAMA POWER COMPANY (ALABAMA)
      8,250,000         100 %     $ 3,610,204       $ 3,610,204       Electric utility company  
 
Alabama Energy Providers, Inc.*
      1,000         100 %       1         1       Energy-related company  
 
Alabama Property Company
      1,000         100 %     $ 10,599       $ 10,599       Non-utility subsidiary  
 
Alabama Power Capital Trust IV (ALABAMA TRUST IV) (b)
      n/a         n/a       $ 3,093       $ 3,093       Special purpose subsidiary  
 
Alabama Power Capital Trust V (ALABAMA TRUST V) (b)
      n/a         n/a       $ 6,186       $ 6,186       Special purpose subsidiary  
 
Alabama Power Capital Trust VI *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Alabama Power Capital Trust VII *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Alabama Power Capital Trust VIII *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Southern Electric Generating Company (SEGCO) (c)
      164,000         50 %     $ 29,734       $ 29,734          
 
GEORGIA POWER COMPANY (GEORGIA) (d)
      7,761,500         100 %     $ 4,890,561       $ 4,890,561       Electric utility company  
 
SEGCO (c)
      164,000         50 %     $ 29,734       $ 29,734          
 
Piedmont-Forrest Corporation
                        $ 5,743       $ 5,743       Non-utility subsidiary  
 
(PIEDMONT)
      100,000         100 %     $ 11,499 (e)     $ 11,499 (e)        
 
Georgia Power Capital Trust IV (GEORGIA TRUST IV) (b)*
      n/a         n/a       $ 0       $ 0       Special purpose subsidiary  
 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

                                                   
 
        Number of                            
  Name of Company     Common     Percentage     Issuer     Owner’s     Type  
  (Add abbreviation     Shares     of     Book     Book     of  
  used herein)     Owned     Voting Power     Value     Value     Company  
                            (In thousands)          
 
Georgia Power Capital Trust V (GEORGIA TRUST V) (b)
      n/a         n/a       $ 13,608       $ 13,608       Special purpose subsidiary  
 
Georgia Power Capital Trust VI (GEORGIA TRUST VI) (b)
      n/a         n/a       $ 9,354       $ 9,354       Special purpose subsidiary  
 
Georgia Power Capital Trust VII (GEORGIA TRUST VII) (b)
      n/a         n/a       $ 6,261       $ 6,261       Special purpose subsidiary  
 
Georgia Power Capital Trust VIII *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Georgia Power Capital Trust IX *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Georgia Power Capital Trust X *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
GULF POWER COMPANY (GULF)
      992,717         100 %     $ 592,172       $ 592,172       Electric utility company  
 
Gulf Power Capital Trust III (GULF TRUST III) (b)
      n/a         n/a       $ 928       $ 928       Special purpose subsidiary  
 
Gulf Power Capital Trust IV (GULF TRUST IV) (b)
      n/a         n/a       $ 1,238       $ 1,238       Special purpose subsidiary  
 
Gulf Power Capital Trust V *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Gulf Power Capital Trust VI *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
MISSISSIPPI POWER COMPANY (MISSISSIPPI)
      1,121,000         100 %     $ 545,837       $ 545,837       Electric utility company  
 
Mississippi Power Capital Trust II (MISSISSIPPI TRUST II) (b)
      n/a         n/a       $ 1,082       $ 1,082       Special purpose subsidiary  
 
Mississippi Power Capital Trust III *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

                                                   
 
        Number of                            
  Name of Company     Common     Percentage     Issuer     Owner’s     Type  
  (Add abbreviation     Shares     of     Book     Book     of  
  used herein)     Owned     Voting Power     Value     Value     Company  
                            (In thousands)          
 
Mississippi Power Capital Trust IV *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Mississippi Power Services, Inc.*
      100         100 %     $ 10       $ 10       Energy-related company  
 
SAVANNAH ELECTRIC AND POWER COMPANY (SAVANNAH) (f)
      10,844,635         100 %     $ 232,156       $ 232,156       Electric utility company  
 
Savannah Electric Capital Trust II *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
CHANGE IN CONTROL TRUST (g)
      n/a         n/a       $ 30,472       $ 30,472          
 
DEFERRED CASH TRUST (g)
      n/a         n/a       $ 960       $ 960          
 
DEFERRED STOCK TRUST (g)
      n/a         n/a       $ 7,236       $ 7,236          
 
SOUTHERN COMPANY HOLDINGS, INC. (Southern Holdings) (h)
      9,111         91.11 %     $ 456,776       $ 423,070       Non-utility subsidiary  
 
Southern Company Capital Funding, Inc. (Capital Funding)
      1,000         100 %     $ 25,216       $ 25,216       Special purpose subsidiary  
 
Southern Company Capital Trust I (b)
      n/a         n/a       $ 10,395       $ 10,395       Special purpose subsidiary  
 
Southern Company Capital Trust II (b)
      n/a         n/a       $ 2,391       $ 2,391       Special purpose subsidiary  
 
Southern Company Capital Trust VI (b)
      n/a         n/a       $ 6,197       $ 6,197       Special purpose subsidiary  
 
Southern Company Capital Trust VII *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Southern Company Capital Trust VIII *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Southern Company Capital Trust IX *
      n/a         n/a         n/a         n/a       Special purpose subsidiary  
 
Southern Company Energy Solutions LLC (SCES LLC)
      n/a         100 %     $ 8,196       $ 8,196       Energy-related company  
 
Biomass Synthetic Gas Production Facility, LLC*
      n/a         100 %                     Energy-related company  
 
Alabama Synfuel Energy, Inc.
      1,000         100 %     $ 50,800       $ 50,800       Energy-related company  
 
Synfuel Services, Inc. (Synfuel Services)
      1,000         100 %     $ 1,275       $ 1,275       Energy-related company  
 
Energy Related Activities Inc. (ERA)
      1,000         100 %     $ 8,925       $ 8,925       Energy-related company  
 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

                                                   
 
        Number of                            
  Name of Company     Common     Percentage     Issuer     Owner’s     Type  
  (Add abbreviation     Shares     of     Book     Book     of  
  used herein)     Owned     Voting Power     Value     Value     Company  
                            (In thousands)          
 
Southern Company Electrotechnologies, Inc. (Electrotechnologies)(i)
      100         100 %     $ 34,835       $ 34,835       Energy-related company  
 
Southern Company Rail Services, Inc. (SCRS)
      1,000         100 %     $ 3,807       $ 3,807       Energy-related company  
 
Southern Electric Railroad Company (SERC)
      5,000         100 %     $ 5       $ 5       Non-utility subsidiary  
 
SE Finance Capital Corporation II
      1,000         100 %     $ 287,100       $ 287,100       Non-utility subsidiary  
 
SE Finance Capital Corporation
      1,000         100 %     $ 225,484       $ 225,484       Non-utility subsidiary  
 
Southern Energy Finance Company, Inc.
      1,000         100 %     $ 385,767       $ 385,767       Non-utility subsidiary  
 
Carbontronics, LLC (j)
      n/a         1 %     $ 23,663       $ 237       Energy-related company  
 
EPZ Lease, Inc.
      1,000         100 %     $ 74,236       $ 74,236       Non-utility subsidiary  
 
EPZ Lease, LLC
      n/a         n/a       $ 118,893       $ 118,893       Non-utility subsidiary  
 
EPZ Lease Holding A, LLC
      n/a         n/a       $ 36,028       $ 36,028       Non-utility subsidiary  
 
EPZ Lease Trust A (b)
      n/a         n/a       $ 36,027       $ 36,027       Foreign utility company  
 
EPZ Lease Holding B, LLC
      n/a         n/a       $ 36,028       $ 36,028       Non-utility subsidiary  
 
EPZ Lease Trust B (b)
      n/a         n/a       $ 36,027       $ 36,027       Foreign utility company  
 
EPZ Lease Holding C, LLC
      n/a         n/a       $ 48,037       $ 48,037       Non-utility subsidiary  
 
EPZ Lease Trust C (b)
      n/a         n/a       $ 48,036       $ 48,036       Foreign utility company  
 
Dutch Gas Lease, Inc.
      1,000         100 %     $ 148,653       $ 148,653       Non-utility subsidiary  
 
Dutch Gas Lease, LLC
      n/a         n/a       $ 264,403       $ 264,403       Non-utility subsidiary  
 
Dutch Gas Lease Holding A, LLC
      n/a         n/a       $ 104,725       $ 104,725       Non-utility subsidiary  
 
Dutch Gas Lease Trust A (b)
      n/a         n/a       $ 104,725       $ 104,725       Foreign utility company  
 
Dutch Gas Lease Holding B, LLC
      n/a         n/a       $ 80,567       $ 80,567       Non-utility subsidiary  
 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

                                                   
 
        Number of                            
  Name of Company     Common     Percentage     Issuer     Owner’s     Type  
  (Add abbreviation     Shares     of     Book     Book     of  
  used herein)     Owned     Voting Power     Value     Value     Company  
                            (In thousands)          
 
Dutch Gas Lease Trust B (b)
      n/a         n/a       $ 80,567       $ 80,567       Foreign utility company  
 
Dutch Gas Lease Holding C, LLC
      n/a         n/a       $ 79,112       $ 79,112       Non-utility subsidiary  
 
Dutch Gas Lease Trust C (b)
      n/a         n/a       $ 79,112       $ 79,112       Foreign utility company  
 
NUON Lease, Inc.
      1,000         100 %     $ 139,750       $ 139,750       Non-utility subsidiary  
 
NUON Lease Holding D, LLC
      n/a         n/a       $ 105,720       $ 105,720       Non-utility subsidiary  
 
NUON Lease Trust D (b)
      n/a         n/a       $ 105,720       $ 105,720       Foreign utility company  
 
NUON Lease Holding E, LLC
      n/a         n/a       $ 82,805       $ 82,805       Non-utility subsidiary  
 
NUON Lease Trust E (b)
      n/a         n/a       $ 78,182       $ 78,182       Foreign utility company  
 
NUON Lease Holding F, LLC
      n/a         n/a       $ 54,094       $ 54,094       Non-utility subsidiary  
 
NUON Lease Trust F (b)
      n/a         n/a       $ 51,562       $ 51,562       Foreign utility company  
 
GAMOG Lease, Inc.
      1,000         100 %     $ 108,530       $ 108,530       Non-utility subsidiary  
 
GAMOG Lease Holding G, LLC
      n/a         n/a       $ 40,413       $ 40,413       Non-utility subsidiary  
 
GAMOG Lease Trust G (b)
      n/a         n/a       $ 40,413       $ 40,413       Foreign utility company  
 
GAMOG Lease Holding H, LLC
      n/a         n/a       $ 94,610       $ 94,610       Non-utility subsidiary  
 
GAMOG Lease Trust H (b)
      n/a         n/a       $ 94,610       $ 94,610       Foreign utility company  
 
GAMOG Lease Holding I, LLC
      n/a         n/a       $ 47,032       $ 47,032       Non-utility subsidiary  
 
GAMOG Lease Trust I (b)
      n/a         n/a       $ 47,032       $ 47,032       Foreign utility company  
 
Clairton, Inc.
      1,000         100 %     $ 13,483       $ 13,483       Non-utility subsidiary  
 
Clairton, LLC (k)
      n/a         85 %     $ 17,567       $ 14,932       Energy-related company  
 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

                                                   
 
        Number of                                  
  Name of Company     Common       Percentage       Issuer       Owner’s       Type  
  (Add abbreviation     Shares       of       Book       Book       of  
  used herein)     Owned       Voting Power       Value       Value       Company  
                            (In thousands)          
 
Clairton 2, Inc.
      1,000         100 %     $ 3,348       $ 3,348       Non-utility subsidiary  
 
Clairton, LLC (k)
      n/a         15 %     $ 17,567       $ 2,635       Energy-related company  
 
Carbontronics, Inc
      1,000         100 %     $ 34,514       $ 34,514       Non-utility subsidiary  
 
Carbontronics, LLC (j)
      n/a         99 %     $ 23,663       $ 23,426       Energy-related company  
 
SE Choctaw, Inc.
      1,000         100 %     $ 14,807       $ 14,807       Non-utility company  
 
SE Choctaw II, LLC
      n/a         100 %     $ 98,126       $ 98,126       Non-utility subsidiary  
 
SE Choctaw, LLC
      n/a         100 %     $ 98,126       $ 98,126       Exempt wholesale generator  
 
SE Lease, Inc. (l)
      1,000         100 %     $ 67,092       $ 67,092       Non-utility subsidiary  
 
SE Ravenswood Lease LLC (l)
      n/a         100 %     $ 75,880       $ 75,880       Non-utility subsidiary  
 
SE Ravenswood Trust (l)
      n/a         100 %     $ 75,880       $ 75,880       Exempt wholesale generator  
 
SOUTHERN COMPANY FUNDING CORPORATION (Southern Funding)
      1,000         100 %     $ 10         10       Special purpose subsidiary  
 
SOUTHERN COMPANY GAS LLC (Southern Company GAS)
      n/a         100 %     $ 17,620       $ 17,620       Energy-related company  
 
SOUTHERN COMPANY SERVICES, INC. (SCS) (m)
      14,500         100 %   ( $ 24,850 )   ( $ 24,850 )     Service company  
 
SOUTHERN COMMUNICATIONS SERVICES, INC. (SouthernLINC Wireless)
      500         100 %     $ 122,641       $ 122,641       Non-utility subsidiary  
 
Reese Telecommunications, Inc.
      50,000         100 %     $ 800       $ 800       Non-utility subsidiary  
 
SOUTHERN INFORMATION HOLDING COMPANY, INC. (Powercall)
      1,000         100 %     $ 1,453       $ 1,453       Non-utility subsidiary  
 
Southern Information 1, Inc.*
      1,000         100 %     $ 0       $ 0       Non-utility subsidiary  
 
Southern Information 2, Inc.*
      1,000         100 %     $ 0       $ 0       Non-utility subsidiary  
 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

                                                   
 
        Number of                                  
  Name of Company     Common       Percentage       Issuer       Owner’s       Type  
  (Add abbreviation     Shares       of       Book       Book       of  
  used herein)     Owned       Voting Power       Value       Value       Company  
                            (In thousands)          
 
SOUTHERN NUCLEAR OPERATING COMPANY, INC. (Southern Nuclear)
      1,000         100 %     $ 33,468       $ 33,468       Service company  
 
SOUTHERN POWER COMPANY (SOUTHERN POWER)
      1,000         100 %     $ 811,611       $ 811,611       Electric utility company  
 
Cherokee Falls Development of South Carolina LLC (Southern Company Cherokee)
      n/a         100 %     $ 33       $ 33       Non-utility subsidiary  
 
Klondike Development LLC (Southern Company Klondike)
      n/a         100 %     $ 220       $ 220       Non-utility subsidiary  
 
Southern Company-Florida LLC (Southern Company Florida)
      n/a         100 %     $ 151,436       $ 151,436       Exempt wholesale generator  
 
Southern Company-Jet Port LLC (Southern Company Jet Port)
      n/a         100 %     $ 3,715       $ 3,715       Non-utility subsidiary  
 
SPC McLeod LLC (Southern Company McLeod)
      n/a         n/a       $ 4,506       $ 4,506       Non-utility subsidiary  
 
St. Lucie Holdings Cana LLC (n)
      n/a         n/a       $ 4,657       $ 4,657       Non-utility subsidiary  
 
SOUTHERN TELECOM, INC. (Southern Telecom)
      1,000         100 %     $ 8,177       $ 8,177       Exempt tele-communication company  
 
Southern Telecom 1, Inc.
      1,000         100 %     $ 0       $ 0       Non-utility subsidiary  
 
Southern Telecom 2, Inc.
      1,000         100 %     $ 0       $ 0       Non-utility subsidiary  
 
SOUTHERN MANAGEMENT DEVELOPMENT, INC. (Southern Management)
      500         100 %     $ 35,433       $ 35,433       Energy-related company  
 
Southern Holdings (h)
      889         8.89 %     $ 456,776       $ 33,676       Non-utility subsidiary  
 
NuStart Energy Development, LLC
      n/a         12.5 %     $ 8,000       $ 1,000       Energy-related company  
 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2004.

     Notes to Item 1.

     * Inactive companies.

     (a) Unsecured debt –

                         
 
        Amount            
  Company Name     (in thousands)       Interest Rate    
 
SouthernLINC Wireless
    $ 40,341         5.50 %  
 
Southern Holdings
    $ 22,400         5.50 %  
 
Southern Company GAS
    $ 50,690         5.29 %  
 
SCRS
    $ 4,726         5.50 %  
 

(b)   A Delaware statutory trust. The form of equity investment is paid in capital.
 
(c)   SEGCO is 50% owned by ALABAMA and 50% owned by GEORGIA. The amounts shown reflect the respective ownership of each company.
 
(d)   GEORGIA has an investment in Alliance Technology Ventures which is consolidated with the accounts of GEORGIA in accordance with generally accepted accounting principles, but does not represent a subsidiary of GEORGIA in accordance with the Public Utility Holding Company Act, as amended.
 
(e)   Promissory note due on demand; interest rate, based on GEORGIA’s embedded cost of capital, was 8.80% at January 1, 2005.
 
(f)   Savannah Electric Capital Trust I was dissolved in 2004.
 
(g)   Trusts established to fund certain deferred compensation arrangements for SOUTHERN’s management and directors. These trusts are consolidated with the accounts of SOUTHERN in accordance with generally accepted accounting principles, but do not represent subsidiaries of SOUTHERN.
 
(h)   Southern Holdings is partially owned by Southern Management.
 
(i)   Electrotechnologies has an investment in Advent Energy II LP which is consolidated with the accounts of Electrotechnologies in accordance with generally accepted accounting principles, but does not represent a subsidiary of Electrotechnologies in accordance with the Public Utility Holding Company Act of 1935, as amended.
 
(j)   Carbontronics, LLC is 1% owned by Southern Energy Finance Company, Inc. and 99% owned by Carbontronics, Inc.
 
(k)   Clairton, LLC is 85% owned by Clairton, Inc. and 15% owned by Clairton 2, Inc.
 
(l)   SE Lease, Inc. was incorporated in Delaware on May 3, 2004, SE Ravenswood Lease, LLC is a limited liability company organized in Delaware on May 25, 2004 and the SE Ravenswood Trust is a Delaware statutory trust formed on May 17, 2004. These companies were organized for the purpose of completing the purchase from Keyspan Corporation and subsequent leaseback of the Ravenswood Expansion Facility, a 250 megawatt combined cycle gas turbine facility in New York, NY.
 
(m)   See Consolidating Statements of Comprehensive Income on page A-15 herein for information regarding SCS’ negative book value.
 
(n)   St. Lucie Holdings Cana, LLC is a limited liability company organized in Delaware on June 4, 2004 for the purpose of holding potential generating facility sites.

ITEM 2. ACQUISITION OR SALES OF UTILITY ASSETS.

          NONE.

ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES.

          NONE.

8


Table of Contents

ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES.

Calendar Year 2004

                                                 
    Name of Company                                     Indicate  
Name of Issuer and   Acquiring, Redeeming     Number of Shares or Principal Amount             Commission  
Title of Issue   or Retiring Securities     Acquired     Redeemed     Retired     Consideration     Authorization  
                                            (See Note)  
ALABAMA:
                                               
 
                                               
Senior Notes
                                               
Series J 6.75% due 2039
  ALABAMA   None     $ 200,000,000     None     $ 200,000,000          
Series K 7.125% due 2004
  ALABAMA   None     $ 250,000,000     None     $ 250,000,000          
Series N 4.875% due 2004
  ALABAMA   None     $ 275,000,000     None     $ 275,000,000          
 
                                               
GEORGIA:
                                               
 
                                               
Senior Notes
                                               
Series D 6.625% due 2039
  GEORGIA   $ 100,000,000     None     $ 100,000,000     $ 100,000,000          
Series H 6.70% due 2011
  GEORGIA   $ 100,000,000     None     $ 100,000,000     $ 100,000,000          
 
Trust Preferred Securities
                                               
6.85% due 2029
  GEORGIA   $ 200,000,000     None     $ 200,000,000     $ 200,000,000          
 
                                               
GULF:
                                               
 
                                               
Senior Notes
                                               
Series B 7.05% due 2004
  GULF   None     $ 50,000,000     None     $ 50,000,000          
Series D 6.10% due 2016
  GULF   None     $ 75,000,000     None     $ 75,000,000          
 
                                               
MISSISSIPPI:
                                               
 
                                               
Preferred Stock
                                               
7% Series
  MISSISSIPPI   None     $ 4,984,000     None     $ 4,984,000          
6.32% Series
  MISSISSIPPI   None     $ 15,000,000     None     $ 15,000,000          
6.65% Series
  MISSISSIPPI   None     $ 8,404,000     None     $ 8,404,000          
5.25% Series
  MISSISSIPPI   $ 30,000,000     None     None     $ 30,000,000          
 
                                               
Senior Notes
                                               
Series D Floating Rate due 2004
  MISSISSIPPI   None     $ 80,000,000     None     $ 80,000,000          
Series F Floating Rate due 2009
  MISSISSIPPI   $ 40,000,000     None     None     $ 40,000,000          
 
                                               
SAVANNAH:
                                               
 
                                               
Trust Preferred Securities
                                               
Series A 6.85% due 2028
  SAVANNAH   None     $ 40,000,000     None     $ 40,000,000          

Note to Item 4: All transactions exempt pursuant to Rule 42(b)(2), (4) or (5).

9


Table of Contents

ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES.

                     
        Number of        
        Shares or     Carrying  
        Principal     Value  
Name of Owner   Name of Issuer   Amount Owned   to Owner  
SOUTHERN (one item)
  (1)   2,132,669 shares   $ 1,119,635  
ALABAMA (four items)
  (2)   1,972,386 shares   $ 1,972,386  
GEORGIA (one item)
  (3) $   3,500,538     $ 1,350,425  
GULF (20 items)
  (4)   1,012 shares   $ 0  
Southern Management (one item)
  (5)     10.351 %   $ 1,026,671  
SAVANNAH (15 items)
  (4)   385 shares   $ 1  
Electrotechnologies (one item)
  (6)     85.2 %   $ 21,958,226  
Alabama Synfuel Energy, Inc. (one item)
  (7)     60.6 %   $ 17,048,818  
Carbontronics, LLC (one item)
  (7)     24.975 %   $ 11,859,341  
Clairton, LLC (one item)
  (8)     14.67 %   $ 17,490,933  

Notes to Item 5:

     (1) Represents SOUTHERN’s participation in Perfect Commerce, Inc. (Perfect Commerce). Prior to November 2004, SOUTHERN’s participation was in Pantellos Corporation (Pantellos). In November 2004, Perfect Commerce completed its merger with Pantellos. Perfect Commerce is focused on helping participants reduce the cost and complexity of their purchasing processes.

     (2) Debt securities issued by instrumentalities of political subdivisions within ALABAMA’s service area to build promotional industrial buildings that will assist in advancing business and industrial development.

     (3) Investment made in a private venture capital fund for the purpose of assisting early-stage and high technology companies located principally in the Southeast, with a focus on Georgia-based firms. (See File No. 70-8085.)

     (4) Securities representing bankruptcy distributions applicable to obligations of customers incurred in the ordinary course of business.

     (5) Investment in a limited partnership that consists of energy related companies.

     (6) Investment in a limited partnership that provides risk capital for, and makes investments in, the securities of companies engaged in the development and commercialization of electrotechnologies.

     (7) Investment in an entity that converts coal into synthetic fuel.

     (8) Investment in a limited partnership that produces alternative fuel.

10


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS.

PART I.

The following are the abbreviations to be used for principal business address and positions.

     
Principal Business Address   Code
 
270 Peachtree Street
   
Atlanta, GA 30303
  (a)
 
   
600 North 18th Street
   
Birmingham, AL 35291
  (b)
 
   
241 Ralph McGill Boulevard, N.E.
   
Atlanta, GA 30308-3374
  (c)
 
   
One Energy Place
   
Pensacola, FL 32520
  (d)
 
   
2992 West Beach Boulevard
   
Gulfport, MS 39501
  (e)
 
   
600 East Bay Street
   
Savannah, GA 31401
  (f)
 
   
5555 Glenridge Connector
   
Atlanta, GA 30342
  (g)
 
   
42 Inverness Center Parkway
   
Birmingham, AL 35242
  (h)
 
   
40 Inverness Center Parkway
   
Birmingham, AL 35242
  (i)
 
   
601 Pennsylvania Ave., NW
   
Suite 800 South
   
Washington, DC 20004
  (j)
 
   
1403 Foulk Road
   
Foulkstone Plaza Suite 102-9
   
Wilmington, DE 19803
  (k)
 
   
4000 DeKalb Technology Parkway
   
Suite 100
   
Atlanta, GA 30340
  (l)
 
   
3003 Summit Boulevard
  (m)
Suite 700
   
Atlanta, GA 30319
   
     
Position   Code
 
Chairman of the Board
  CH
Director
  D
President
  P
Chief Executive Officer
  CEO
Chief Financial Officer
  CFO
Chief Accounting Officer
  CAO
Chief Information Officer
  CIO
Chief Operating Officer
  COO
Chief Production Officer
  CPO
Senior Executive Vice President
  SEVP
Executive Vice President
  EVP
Senior Vice President
  SVP
Financial Vice President
  FVP
Vice President
  VP
Controller/Comptroller
  C
Counsel
  L
Manager
  M
Secretary
  S
Treasurer
  T
     
SOUTHERN    
Name and Principal Address (a)   Position
 
Daniel P. Amos
  D
1932 Wynnton Road
   
Columbus, GA 31999
   
Dorrit J. Bern
  D
450 Winks Lane
   
Bensalem, PA 19020
   
Francis S. Blake
  D
2455 Paces Ferry Road
   
Atlanta, GA 30329
   
Thomas F. Chapman
  D
1550 Peachtree Street, NW
   
Atlanta, GA 30309
   
Bruce S. Gordon
  D
166 Duane Street
   
Apt. 7B
   
New York, NY 10013
   
Donald M. James
  D
1200 Urban Center Drive
   
Liberty Park Office Complex
   
Birmingham, AL 35242
   
Zack T. Pate
  D
806 Kinloch N.W.
   
Atlanta, GA 30327
   
J. Neal Purcell
  D
590 Marsh Park Drive
   
Duluth, GA 30097
   
David M. Ratcliffe
  D,P, CEO,CH

11


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS.

     PART I. (Continued)

     
SOUTHERN (continued)    
Name and Principal Address (a)   Position
 
Gerald J. St. Pé
  D
1020 Eastwood Drive
   
Pascagoula, MS 39567
   
Dwight H. Evans
  EVP
Thomas A. Fanning
  EVP
Michael D. Garrett (c)
  EVP
Leonard J. Haynes
  EVP
G. Edison Holland
  EVP,L
Charles D. McCrary (b)
  EVP
David R. Altman
  VP
Rebecca A. Blalock (c)
  VP
Jackie J. Collins
  VP
Ellen N. Lindemann
  VP
Joseph A. Miller (j)
  VP
W. Dean Hudson (c)
  CAO,C
Tommy Chisholm
  S
     
ALABAMA    
Name and Principal Address (b)   Position
 
Whit Armstrong
  D
P. O. Box 310900
   
Enterprise, AL 36331
   
David J. Cooper, Sr.
  D
118 N. Royal Street
   
Mobile, AL 36602
   
R. Kent Henslee
  D
754 Chestnut Street
   
Gadsden, AL 35901
   
John D. Johns
  D
2801 Highway 280 South
   
Birmingham, AL 35223
   
Carl E. Jones, Jr.
  D
P. O. Box 10247
   
Birmingham, AL 35202
   
Patricia M. King
  D
2548 US Highway 78
   
Anniston, AL 36207
   
James K. Lowder
  D
2000 Interstate Park Drive
   
Suite 400
   
Montgomery, AL 36109
   
Wallace D. Malone, Jr.
  D
P. O. Box 2554
   
Birmingham, AL 35290
   
Charles D. McCrary
  D,P,CEO
Malcolm Portera
  D
401 Queen City Avenue
   
Tuscaloosa, AL 35401
   
Robert D. Powers
  D
202 East Broad Street
   
Eufaula, AL 36027
   
David M. Ratcliffe (a)
  D
C. Dowd Ritter
  D
P. O. Box 11007
   
Birmingham, AL 35288
   
James H. Sanford
  D
1001 McQueen Smith Road South
   
Prattville, AL 36066
   
John C. Webb, IV
  D
125 W. Washington Street
   
Demopolis, AL 36732
   
James W. Wright
  D
100 Commerce Street
   
Montgomery, AL 36104
   
William B. Hutchins, III
  EVP,CFO,T
C. Alan Martin
  EVP
Steve R. Spencer
  EVP
Robert Holmes, Jr.
  SVP
Robin A. Hurst
  SVP
Rodney O. Mundy
  SVP,L
Michael L. Scott
  SVP
Jerry L. Stewart
  SVP
Art P. Beattie
  VP,CAO,C
Christopher T. Bell
  VP
Willard L. Bowers
  VP
Larry R. Grill
  VP
Gerald L. Johnson
  VP
Marsha S. Johnson
  VP
William B. Johnson
  VP
Bobbie J. Knight
  VP
Ellen N. Lindemann (a)
  VP
Gordon G. Martin
  VP
Donald W. Reese
  VP
R. Michael Saxon
  VP
Julia H. Segars
  VP
Julian H. Smith, Jr.
  VP
W. Ronald Smith
  VP
Cheryl A. Thompson
  VP
Terry H. Waters
  VP
William E. Zales, Jr.
  VP,S

12


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

     PART I. (Continued)

     
ALABAMA PROPERTY COMPANY    
Name and Principal Address (b)   Position
 
Charles D. McCrary
  D,P
William B. Hutchins, III
  D,VP
C. Alan Martin
  D,VP
Larry Grill
  VP
Art P. Beattie
  C
William E. Zales, Jr.
  S
J. Randy DeRieux
  T
     
ALABAMA ENERGY PROVIDERS, INC.    
Name and Principal Address (b)   Position
 
Rodney O. Mundy
  D
William B. Hutchins, III
  D,VP
C. Alan Martin
  D
Michael L. Scott
  D,P
William E. Zales, Jr.
  S
J. Randy DeRieux
  T
     
GEORGIA    
Name and Principal Address (c)   Position
 
Juanita Powell Baranco
  D
4355 Highway 78
   
Lilburn, GA 30047
   
Robert L. Brown, Jr.
  D
250 East Ponce de Leon Avenue
   
Eighth Floor
   
Decatur, GA 30030
   
Ronald D. Brown
  D
100 Auburn Avenue
   
Atlanta, GA 30303
   
Anna R. Cablik
  D
1513 Johnson Ferry Road
   
Suite T-20
   
Marietta, GA 30062
   
Michael D. Garrett
  D,P,CEO
David M. Ratcliffe (a)
  D
D. Gary Thompson
  D
1384 Wesley Circle
   
Atlanta, GA 30327
   
Richard W. Ussery
  D
1600 First Avenue
   
Columbus, GA 31902-1755
   
William Jerry Vereen
  D
P. O. Box 1663
   
Moultrie, GA 31776-1663
   
E. Jenner Wood, III
  D
P.O. Box 4418
   
M.C. 0103
   
Atlanta, GA 30303
   
William C. Archer, III
  EVP
C. B. Harreld
  EVP,T,CFO
Judy M. Anderson
  SVP
Ronnie L. Bates
  SVP
M. A. Brown
  SVP
Richard L. Holmes
  SVP
James H. Miller, III
  SVP,L
Christopher C. Womack
  SVP
W. Craig Barrs
  VP
Rebecca A. Blalock
  VP
A. Bryan Fletcher
  VP
J. Kevin Fletcher
  VP
O. Ben Harris
  VP
W. Ron Hinson
  VP,C,CAO
Ed F. Holcombe
  VP
E. Lamont Houston
  VP
Brian L. Ivey
  VP
Anne H. Kaiser
  VP
Ellen N. Lindemann (a)
  VP
Jackie W. Lowe
  VP
Frank J. McCloskey
  VP
Leslie R. Sibert
  VP
James E. Sykes
  VP
Jeffrey L. Wallace
  VP
Janice G. Wolfe
  S
     
PIEDMONT    
Name and Principal Address (c)   Position
 
Michael D. Garrett
  D,P
C. B. Harreld
  D,EVP,T
Janice G. Wolfe
  D,VP,S
     
SEGCO    
Name and Principal Address (b)   Position
 
William C. Archer (c)
  D
Art P. Beattie
  D,C
W. Paul Bowers
  D,VP
Michael D. Garrett (c)
  D, VP
C. B. Harreld (c)
  D
William B. Hutchins, III
  D,VP
Charles D. McCrary
  D,P
Jerry L. Stewart
  D
Christopher C. Womack (c)
  D
William E. Zales, Jr.
  S
J. Randy DeRieux
  T

13


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

     PART I. (Continued)

     
GULF    
Name and Principal Address (d)   Position
 
C. LeDon Anchors
  D
909 Mar Walt Drive
   
Suite 1014
   
Fort Walton Beach, FL 32547
   
William C. Cramer
  D
2251 West 23rd Street
   
Panama City, FL 32405
   
Fred C. Donovan, Sr.
  D
449 W. Main Street
   
Pensacola, FL 32502
   
William A. Pullum
  D
8494 Navarre Parkway
   
Navarre, FL 32566
   
Winston E. Scott
  D
100 Spaceport Way
   
Cape Canaveral, FL 32920-4003
   
Susan N. Story
  D,P,CEO
F. M. Fisher, Jr.
  VP
P. Bernard Jacob
  VP
Ronnie R. Labrato
  VP,CFO,CAO,C
Ellen N. Lindemann (a)
  VP
Gene L. Ussery, Jr. (e)
  VP
Susan D. Ritenour
  S,T
     
MISSISSIPPI    
Name and Principal Address (e)   Position
 
Tommy E. Dulaney
  D
P. O. Box 2929
   
Meridian, MS 39302
   
Warren A. Hood, Jr.
  D
P.O. Box 682
   
Hattiesburg, MS 39402
   
Robert C. Khayat
  D
P. O. Box 1848
   
123 Lyceum Building
   
University, MS 38677
   
George A. Schloegel
  D
Hancock Bank
   
P. O. Box 4019
   
Gulfport, MS 39502
   
Philip J. Terrell
  D
799 East Second Street
   
Pass Christian, MS 39571
   
Anthony J. Topazi
  D,P,CEO
Gene Warr
  D
767 16th Street
   
Gulfport, MS 39507
   
Bobby J. Kerley
  VP
Ellen N. Lindemann (a)
  VP
Don E. Mason
  VP
Michael W. Southern
  VP,CFO,CAO,T
Gene L. Ussery, Jr.
  VP
Frances V. Turnage
  C
Vicki L. Pierce
  S
     
MISSISSIPPI POWER SERVICES, INC.    
Name and Principal Address (e)   Position
 
Bobby J. Kerley
  D,P,CEO
Don E. Mason
  D,VP
Michael W. Southern
  D,VP,T,CFO
Anthony J. Topazi
  D, CH
Gene L. Ussery, Jr.
  D,VP
Frances V. Turnage
  C
Vicki L. Pierce
  S
     
SAVANNAH    
Name and Principal Address (f)   Position
 
Gus H. Bell, III
  D
P. O. Box 14247
   
Savannah, GA 31416
   
Archie H. Davis
  D
P. O. Box 188
   
Savannah, GA 31402
   
Walter D. Gnann
  D
234 Sienes Landing Drive
   
Springfield, GA 31329
   
Anthony R. James
  D,P,CEO
Robert B. Miller, III
  D
P. O. Box 8003
   
Savannah, GA 31412
   
Arnold M. Tenenbaum
  D
300 Bull Street
   
Savannah, GA 31401
   
W. Miles Greer
  VP
Ellen N. Lindemann (a)
  VP
Kirby R. Willis
  VP,T,CFO
Nancy Frankenhauser
  C,S

14


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

     PART I. (Continued)

     
SCS    
Name and Principal Address (c)   Position
 
Michael D. Garrett
  D
Charles D. McCrary (b)
  D
David M. Ratcliffe (a)
  D,P,CEO
W. Paul Bowers (b)
  EVP
Dwight H. Evans (a)
  EVP
Thomas A. Fanning (a)
  EVP
Leonard J. Haynes (a)
  EVP
G. Edison Holland, Jr. (a)
  EVP,L
William O. Ball
  SVP
Rebecca A. Blalock
  SVP
Ed Day (h)
  SVP
Andrew J. Dearman, III (b)
  SVP
Charles H. Goodman (b)
  SVP
Kimberly S. Greene (a)
  SVP,T
Chris M. Hobson (b)
  SVP
W. Dean Hudson
  SVP,C,CFO
Ellen N. Lindemann (a)
  SVP
C. Philip Saunders (a)
  SVP
Michael L. Scott
  SVP
Jerry L. Stewart (b)
  SVP
Christopher C. Womack
  SVP
David R. Altman (a)
  VP
Curtis Ashley Baker (h)
  VP
Robert A. Bell (a)
  VP
Ronald P. Bertasi (l)
  VP
Thomas P. Bishop (a)
  VP
Ronald R. Campbell (h)
  VP
Tommy Chisholm (a)
  VP,S
David L. Coker
  VP
Jackie J. Collins (a)
  VP
Mark A. Crosswhite (b)
  VP
James C. Fleming (a)
  VP
Barbara S. Hingst
  VP
Mark S. Lantrip (a)
  VP
Charles D. Long, IV (b)
  VP
Jacqualyn Lowe
  VP
William L. Marshall, Jr. (b)
  VP
William N. McKenzie (a)
  VP
Christopher S. Miller (a)
  VP
Joseph A. Miller (j)
  VP
Sandra R. Miller (f)
  VP
Karl R. Moor (j)
  VP
Robert G. Moore (b)
  VP
Marie D. Mouchet (b)
  VP
Rodney O. Mundy (b)
  VP
Earl B. Parsons, III (b)
  VP
Cliff S. Thrasher (a)
  VP
Gene L. Ussery, Jr. (e)
  VP
Stephen A. Wakefield (a)
  VP
     
SouthernLINC Wireless    
Name and Principal Address (g)   Position
 
Robert G. Dawson
  D,P,CEO
Thomas A. Fanning (a)
  D
Michael D. Garrett (c)
  D
Charles D. McCrary (b)
  D
David M. Ratcliffe (a)
  D
R. Craig Elder
  VP,T,CFO
Rodney H. Johnson
  VP
Julie T. Pigott
  VP
Tommy Chisholm (a)
  S
Carmine A. Reppucci
  C
     
SERC    
Name and Principal Address (h)   Position
 
W. Paul Bowers (b)
  D,P
T. Roy Harrell (b)
  VP
Jerry L. Stewart (b)
  VP
Tommy Chisholm (a)
  S,T
     
Southern Nuclear    
Name and Principal Address (i)   Position
 
J. Barnie Beasley
  D,P,CEO
Michael D. Garrett (c)
  D
William G. Hairston, III
  D
Charles D. McCrary (b)
  D
David M. Ratcliffe (a)
  D
Jeffrey T. Gasser
  EVP
John E. Garlington
  VP
Don E. Grissette
  VP
Kathleen S. King
  VP,CFO
Ellen N. Lindemann (a)
  VP
Louis B. Long
  VP
John O. Meier
  VP,L
Lawrence M. Stinson
  VP
H. Lewis Sumner, Jr.
  VP
Sherry A. Mitchell
  S
Mark K. Tate
  C,T
     
Southern Holdings    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  D,EVP
Thomas A. Fanning
  D
Michael D. Garrett (c)
  D,EVP
Kimberly S. Greene
  D,EVP
Leonard J. Haynes
  D,EVP
Charles D. McCrary (b)
  D
David M. Ratcliffe
  D,P,CEO
Tommy Chisholm
  S
Laura I. Patterson
  C
Earl S. Long
  T

15


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

     PART I. (Continued)

     
SCES LLC    
Name and Principal Address (l)   Position
 
Ronald P. Bertasi
  P,CEO
Thomas A. Fanning (a)
  M
Michael D. Garrett (c)
  M
Robert M. Gilbert
  VP,CFO
C. B. Harreld (c)
  M
Leonard J. Haynes (a)
  M
Timothy S. Marvin
  T
Charles D. McCrary (b)
  M
David M. Ratcliffe (a)
  M
Tommy Chisholm (a)
  S
     
SE Finance Capital Corporation    
Name and Principal Address (a)   Position
 
Thomas A. Fanning
  D
Kimberly S. Greene
  D,P,CEO
James C. Fleming
  VP
Christopher J. Kysar
  VP,T,CFO
Tommy Chisholm
  S
Judith A. Rosenberg
  C
     
SE Finance Capital Corporation II    
Name and Principal Address (a)   Position
 
Kimberly S. Greene
  D,P,CEO
Thomas A. Fanning
  D
James C. Fleming
  VP
Christopher J. Kysar
  VP,T,CFO
Tommy Chisholm
  S
Judith A. Rosenberg
  C
     
SE Choctaw Inc.    
Name and Principal Address (a)   Position
 
Kimberly S. Greene
  D,P,CEO
Thomas A. Fanning
  D
James C. Fleming
  VP
Christopher J. Kysar
  VP,T,CFO
Tommy Chisholm
  S
Judith A. Rosenberg
  C
     
Southern Energy Finance Company Inc.    
Name and Principal Address (a)   Position
 
Kimberly S. Greene
  D,P,CEO
Thomas A. Fanning
  D
James C. Fleming
  VP
Christopher J. Kysar
  VP,T,CFO
Tommy Chisholm
  S
Judith A. Rosenberg
  C
     
SOUTHERN POWER    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  D,P,CEO
Thomas A. Fanning
  D
Michael D. Garrett (c)
  D
Charles D. McCrary (b)
  D
David M. Ratcliffe
  D
Douglas E. Jones
  EVP
Ed Day (h)
  SVP
Mark A. Crosswhite (b)
  SVP,L
Robert G. Moore (b)
  SVP
Christopher C. Womack (c)
  SVP
Cliff S. Thrasher
  SVP,C,CFO
William N. McKenzie
  VP
Christopher Kysar
  T
Tommy Chisholm
  S
     
Southern Company Florida    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  P,CEO
Mark A. Crosswhite (b)
  VP
Cliff S. Thrasher
  VP,T
Tommy Chisholm
  S
     
Southern Company Jet Port    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  P,CEO
Mark A. Crosswhite (b)
  VP
Cliff S. Thrasher
  CFO,T
Tommy Chisholm
  S
     
Southern Company Funding Corporation    
Name and Principal Address (a)   Position
 
Thomas A. Fanning
  D
Kimberly S. Greene
  D,P,CEO
Earl C. Long
  D,VP,CFO,T
Sam H. Dabbs
  S
     
EPZ Lease, Inc.    
Name and Principal Address (k)   Position
 
William R. Bechstein
  D,VP
1105 N. Market Street
   
Suite 1300
   
Wilmington, DE 19801
   
Christopher J. Kysar (a)
  D,VP,T,CFO
Kimberly S. Greene (a)
  D,P,CEO
Daniel P. McCollum
  D,S
Morris, James, Hitchens &
   
Williams LLP
   
222 Delaware Avenue
   
Wilmington, DE 19899
   
Judith A. Rosenberg (a)
  D,C
James C. Fleming (a)
  VP

16


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

     PART I. (Continued)

     
EPZ Lease, LLC    
Name and Principal Address (k)   Position
 
Southern Energy Finance
  Member
Company Inc.
   
EPZ Lease, Inc.
  Member
     
EPZ Lease Holding A, LLC    
Name and Principal Address (k)   Position
 
EPZ Lease, Inc.
  Member
EPZ Lease, LLC
  Member
     
EPZ LeaseHolding B, LLC    
Name and Principal Address (k)   Position
 
EPZ Lease, Inc.
  Member
EPZ Lease, LLC
  Member
     
EPZ Lease Holding C, LLC    
Name and Principal Address (k)   Position
 
EPZ Lease, Inc.
  Member
EPZ Lease, LLC
  Member
     
Dutch Gas Lease, Inc.    
Name and Principal Address (k)   Position
 
William R. Bechstein
  D,VP
1105 N. Market Street
   
Suite 1300
   
Wilmington, DE 19801
   
Christopher J. Kysar (a)
  D,VP,T,CFO
Kimberly S. Greene (a)
  D,P,CEO
Daniel P. McCollum
  D,S
Morris, James, Hitchens &
   
Williams LLP
   
222 Delaware Avenue
   
Wilmington, DE 19899
   
Judith A. Rosenberg (a)
  D,C
James C. Fleming (a)
  VP
     
Dutch Gas Lease, LLC    
Name and Principal Address (k)   Position
 
Dutch Gas Lease, Inc.
  Member
     
Dutch Gas Lease Holding A, LLC    
Name and Principal Address (k)   Position
 
Dutch Gas Lease, LLC
  Member
     
Dutch Gas Lease Holding B, LLC    
Name and Principal Address (k)   Position
 
Dutch Gas Lease, LLC
  Member
     
Dutch Gas Lease Holding C, LLC    
Name and Principal Address (k)   Position
 
Dutch Gas Lease, LLC
  Member
     
GAMOG Lease, Inc.    
Name and Principal Address (k)   Position
 
William R. Bechstein
  D,VP
1105 N. Market Street
   
Suite 1300
   
Wilmington, DE 19801
   
Kimberly S. Greene (a)
  D,P,CEO
Christopher J. Kysar (a)
  D,VP,T,CFO
Daniel P. McCollum
  D,S
Morris, James, Hitchens &
   
Williams LLP
   
222 Delaware Avenue
   
Wilmington, DE 19899
   
Judith A. Rosenberg (a)
  D,C
James C. Fleming (a)
  VP
     
GAMOG Lease Holding G, LLC    
Name and Principal Address (k)   Position
 
GAMOG Lease, Inc.
  Member
     
GAMOG Lease Holding H, LLC    
Name and Principal Address (k)   Position
 
GAMOG Lease, Inc.
  Member
     
GAMOG Lease Holding I, LLC    
Name and Principal Address (k)   Position
 
GAMOG Lease, Inc.
  Member
     
NUON Lease, Inc.    
Name and Principal Address (k)   Position
 
William R. Bechstein
  D,VP
1105 N. Market Street
   
Suite 1300
   
Wilmington, DE 19801
   
Kimberly S. Greene (a)
  D,P,CEO
Christopher J. Kysar (a)
  D,VP,T,CFO
Daniel P. McCollum
  D,S
Morris, James, Hitchens &
   
Williams LLP
   
222 Delaware Avenue
   
Wilmington, DE 19899
   
Judith A. Rosenberg (a)
  D,C
James C. Fleming (a)
  VP

 17


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

     PART I. (Continued)

     
NUON Lease Holding D, LLC    
Name and Principal Address (k)   Position
 
NUON Lease, Inc.
  Member
     
NUON Lease Holding E, LLC    
Name and Principal Address (k)   Position
 
NUON Lease, Inc.
  Member
     
NUON Lease Holding F, LLC    
Name and Principal Address (k)   Position
 
NUON Lease, Inc.
  Member
     
Capital Funding    
Name and Principal Address (k)   Position
 
William R. Bechstein
  D,VP
1105 N. Market Street
   
Suite 1300
   
Wilmington, DE 19801
   
Kimberly S. Greene (a)
  D,P,CEO
Christopher J. Kysar (a)
  D,VP,CFO,T
Daniel P. McCollom
  D,S
Morris, James, Hitchens &
   
Williams LLP
   
222 Delaware Avenue
   
Wilmington, DE 19899
   
Judith A. Rosenberg (a)
  D,C
James C. Fleming (a)
  VP
     
Clairton, Inc.    
Name and Principal Address (k)   Position
 
William R. Bechstein
  D,VP
1105 N. Market Street
   
Suite 1300
   
Wilmington, DE 19801
   
Kimberly S. Greene (a)
  D,P,CEO
Christopher J. Kysar (a)
  D,VP,T,CFO
Daniel P. McCollum
  D,S
Morris, James, Hitchens &
   
Williams LLP
   
222 Delaware Avenue
   
Wilmington, DE 19899
   
Judith A. Rosenberg (a)
  D,C
James C. Fleming (a)
  VP
     
Clairton 2, Inc.    
Name and Principal Address (k)   Position
 
William R. Bechstein
  D,VP
1105 N. Market Street
   
Suite 1300
   
Wilmington, DE 19801
   
Kimberly S. Greene (a)
  D,P,CEO
Christopher J. Kysar (a)
  D,VP,T,CFO
Daniel P. McCollum
  D,S
Morris, James, Hitchens &
   
Williams LLP
   
222 Delaware Avenue
   
Wilmington, DE 19899
   
Judith A. Rosenberg (a)
  D,C
James C. Fleming (a)
  VP
     
Clairton, LLC    
Name and Principal Address (k)   Position
 
Clairton, Inc.
  M
Clairton 2, Inc.
  M
     
Carbontronics, Inc.    
Name and Principal Address (a)   Position
 
Kimberly S. Greene
  D,CEO,P
Christopher J. Kysar
  D,VP,T,CFO
Judith A. Rosenberg
  D,C
James C. Fleming
  VP
Tommy Chisholm
  S
     
Carbontronics, LLC    
Name and Principal Address (k)   Position
 
Carbontronics, Inc.
  M
SE Finance Company, Inc.
  M
     
Southern Telecom, Inc.    
Name and Principal Address (m)   Position
 
Robert G. Dawson (g)
  D,P,CEO
Thomas A. Fanning (a)
  D
Michael D. Garrett (c)
  D
Charles D. McCrary (b)
  D
David M. Ratcliffe (a)
  D
R. Craig Elder (g)
  VP,CFO,T
Tommy Chisholm (a)
  S
Carmine A. Reppucci (g)
  C
     
Southern Telecom 1, Inc.    
Name and Principal Address (m)   Position
 
Robert G. Dawson (g)
  D,P,CEO
Tommy Chisholm (a)
  S
R. Craig Elder (g)
  T
     
Southern Telecom 2, Inc.    
Name and Principal Address (m)   Position
 
Robert G. Dawson (g)
  D,P,CEO
Tommy Chisholm (a)
  S
R. Craig Elder (g)
  T

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Table of Contents

ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued)

     
Southern Management    
Name and Principal Address (l)   Position
 
Ronald P. Bertasi
  D,P,CEO
Thomas A. Fanning (a)
  D
Michael D. Garrett (c)
  D
Leonard J. Haynes (a)
  D
Charles D. McCrary (b)
  D
David M. Ratcliffe (a)
  D
Robert M. Gilbert
  VP,CFO
Tommy Chisholm (a)
  S
Timothy S. Marvin
  T
     
Synfuel Services    
Name and Principal Address (b)   Position
 
W. Paul Bowers
  D
Jerry L. Stewart
  D,P
Douglas E. Jones
  D,VP
Art P. Beattie
  VP
Earl B. Parsons, III
  VP
Tommy Chisholm (a)
  S
Cliff S. Thrasher (a)
  T
     
ERA    
Name and Principal Address (b)   Position
 
W. Paul Bowers
  D
Douglas E. Jones
  D,P
Jerry L. Stewart
  D,VP
Art P. Beattie
  VP
Earl B. Parsons, III
  VP
Tommy Chisholm (a)
  S
Cliff S. Thrasher (a)
  T
     
Alabama Synfuel Energy, Inc.    
Name and Principal Address (b)   Position
 
W. Paul Bowers
  D
Douglas E. Jones
  D,P
Jerry L. Stewart
  D,VP
Art P. Beattie
  VP
Earl B. Parsons, III
  VP
Tommy Chisholm (a)
  S
Cliff S. Thrasher (a)
  T
     
Southern Company Klondike    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  P,CEO
Cliff S. Thrasher
  CFO, T
Tommy Chisholm
  S
SOUTHERN POWER
  Member
     
Electrotechnologies    
Name and Principal Address (a)   Position
 
Kimberly S. Greene
  D,P,CEO
Thomas A. Fanning
  D
James C. Fleming
  VP
Christopher J. Kysar
  VP,T
Tommy Chisholm
  S
     
Southern Company Cherokee    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  P,CEO
Mark A. Crosswhite (b)
  VP
Douglas E. Jones
  VP
Cliff S. Thrasher
  CFO,T
Tommy Chisholm
  S
     
Southern Company McLeod    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  P,CEO
Mark A. Crosswhite (b)
  SVP,L
Ed Day (h)
  SVP
Douglas E. Jones
  SVP
Robert G. Moore (b)
  SVP
Cliff S. Thrasher
  SVP,CFO,C
Tommy Chisholm
  S
Christopher J. Kysar
  T
     
Southern Company GAS    
Name and Principal Address (a)   Position
 
Thomas A. Fanning
  M
Michael D. Garrett (c)
  M
Leonard J. Haynes
  M
Anthony R. James (f)
  M
David M. Ratcliffe
  M
C. Philip Saunders
  P,CEO,M
Sandra R. Miller
  C
Tommy Chisholm
  S
Kimberly S. Greene
  T
     
Reese Telecommunications, Inc.    
Name and Principal Address (c)   Position
 
Robert G. Dawson (g)
  D,P
R. Craig Elder (g)
  D,T
Rodney H. Johnson (g)
  D
Julie T. Pigott (g)
  D
Michael D. Rosenthal (g)
  S

19


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued)

     
St. Lucie Holdings Cana, LLC    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  P,CEO
Mark A. Crosswhite (b)
  SVP,L
Ed Day (h)
  SVP
Douglas E. Jones
  SVP
Robert G. Moore (b)
  SVP
Cliff S. Thrasher
  SVP,C,CFO
Christopher J. Kysar
  T
     
Southern Information Holding Company, Inc.    
Name and Principal Address (c)   Position
 
Leonard J. Haynes (a)
  D,P
Tommy Chisholm (a)
  S
Kimberly Greene (a)
  T
     
Southern Information 1, Inc.    
Name and Principal Address (c)   Position
 
Leonard J. Haynes (a)
  D,P
Tommy Chisholm (a)
  S
Kimberly Greene (a)
  T
     
Southern Information 2, Inc.    
Name and Principal Address (c)   Position
 
Leonard J. Haynes (a)
  D,P
Tommy Chisholm (a)
  S
Kimberly Greene (a)
  T
     
SE Lease, Inc.    
Name and Principal Address (a)   Position
 
Thomas A. Fanning
  D
Kimberly S. Greene
  D,P,CEO
James C. Fleming
  VP
Christopher J. Kysar
  VP,T,CFO
Tommy Chisholm
  S
Judith A. Rosenberg
  C
     
SE Ravenswood Lease, LLC    
Name and Principal Address (a)   Position
 
Kimberly S. Greene
  P,CEO
James C. Fleming
  VP
Christopher J. Kysar
  VP,T, CFO
Judith A. Rosenberg
  C
Tommy Chisholm
  S
     
SCRS    
Name and Principal Address (a)   Position
 
W. Paul Bowers (b)
  D,P
Douglas E. Jones
  D,EVP
Earl B. Parsons, III (b)
  D,VP
Tommy Chisholm
  S
Cliff S. Thrasher
  T

20


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections.

             
Name of Officer   Name and Location   Position Held in   Applicable
or Director   of Financial Institution   Financial Institution   Exemption Rule
            Rule No. 70
            Subdivision
Daniel P. Amos
  Synovus Financial Corporation,   Director   (a)
 
     Columbus, GA        
Whit Armstrong
  The Citizens Bank   Chief Executive   (c)
 
     Enterprise, AL      Officer,    
 
      Chairman of the Board    
 
         of Directors and President    
 
  Enterprise Capital Corporation   Chairman of the Board of    
 
     Enterprise, AL      Directors, Chief Executive    
 
         Officer, President   (c)
Robert L. Brown, Jr.
  Citizens Trust Bank, Atlanta, GA   Director   (c)
Anna R. Cablik
  Branch Banking and Trust,   Director   (d)
 
     Winston Salem, NC        
Archie H. Davis
  The Savannah Bancorp, Savannah, GA   Director Emeritus   (c)
 
  The Savannah Bank N.A., Savannah, GA   Director   (c)
G. Edison Holland
  FCB Financial Corporation, Savannah, GA   Director   (e)
Charles D. McCrary
  AmSouth Bancorporation,   Director   (c);(e);(f)
 
     Birmingham, AL        
Donald M. James
  Wachovia Corporation, Charlotte, NC   Director   (b)
John D. Johns
  Alabama National Bancorporation   Director   (c)
 
     Birmingham, Alabama        
Carl E. Jones, Jr.
  Regions Financial Corporation,   Chairman of the Board of    
 
     Birmingham, AL      Directors, Chief    
 
         Executive Officer   (c)
Wallace D. Malone, Jr.
  Wachovia Corporation, Charlotte, NC   Vice Chairman of the Board    
 
         of Directors   (d)
Malcolm Portera
  Regions Financial Corporation, Birmingham, AL      Director   (c)
J. Neal Purcell
  Synovus Financial Corporation, Columbus, GA      Director   (a)

21


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections. (Continued)

             
Name of Officer   Name and Location   Position Held in   Applicable
or Director   of Financial Institution   Financial Institution   Exemption Rule
            Rule No. 70
            Subdivision
C. Dowd Ritter
  AmSouth Bancorporation, Birmingham, AL   Chairman, Chief   (c)
 
         Executive Officer,    
 
         President    
 
  AmSouth Bank, Birmingham, AL   Chairman, Chief   (c)
 
         Executive Officer    
George A. Schloegel
  Hancock Bank - Mississippi, Gulfport, MS   Director, Chief   (c)
 
         Executive Officer    
 
         and President    
 
  Hancock Holding Company, Gulfport, MS   Vice Chairman, Chief    
 
         Executive Officer   (c)
 
  Hancock Bank - Louisiana, Baton Rouge, LA   Director   (d)
Gerald St. Pé
  Merchants & Marine Bank, Pascagoula, MS   Director   (a)
Arnold M.
  First Chatham Bank Holding Company,   Chairman of the   (c)
Tenenbaum
     Savannah, GA      Board of Directors    
D. Gary Thompson
  Wachovia Bank, Georgia Banking,   Chief Executive   (c)
 
     Atlanta, GA      Officer    
 
  Wachovia Corporation, Charlotte, NC   Executive Officer   (c)
Gene Warr
  Coast Community Bank, Gulfport, MS   Director   (c)
E. Jenner Wood, III
  SunTrust Bank Central Group, Atlanta, GA   Chairman, President   (c)
 
         and Chief    
 
         Executive Officer    
 
  SunTrust Banks Inc., Atlanta, GA   Executive Officer   (c)
James W. Wright
  First Tuskegee Bank, Montgomery, AL   Chairman of the   (c)
 
         Board of    
 
         Directors,    
 
         President and Chief    
 
         Executive Officer    

22


Table of Contents

ITEM 6. EXECUTIVE COMPENSATION. PART III.

  (a)   Summary Compensation Tables. The following tables set forth information concerning any Chief Executive Officer and the most highly compensated executive officers for SCS, SouthernLINC Wireless, Southern Telecom, Southern Management and Southern Nuclear serving as of December 31, 2004, as defined by the Securities and Exchange Commission. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2005 Annual Meetings of Shareholders. SAVANNAH is incorporated by reference to page number III-3 in the SOUTHERN system’s combined Form 10-K for the year ended December 31, 2004 (the “Form 10-K”). SOUTHERN POWER’s information was omitted pursuant to General Instruction I(2)(c) of the Form 10-K. SOUTHERN is incorporated by reference to “Summary Compensation Table” in SOUTHERN’s definitive Proxy Statement relating to the 2005 Annual Meeting of Stockholders.

Key terms used in this Item will have the following meanings:

     
ESP
  Employee Savings Plan
ESOP
  Employee Stock Ownership Plan
SBP
  Supplemental Benefit Plan
ERISA
  Employee Retirement Income Security Act of 1973, as amended

23


Table of Contents

SCS
SUMMARY COMPENSATION TABLE

                                                         
            ANNUAL COMPENSATION     LONG-TERM COMPENSATION  
                                    Number of              
                                    Securities              
Name                                   Underlying     Long-Term        
And                           Other Annual   Stock     Incentive     All Other  
Principal                           Compensation   Options     Payouts     Compensation  
Position   Year   Salary ($)   Bonus ($)   ($)1   (Shares)     ($)2     ($)3  
 
H. Allen Franklin4
    2004       525,662       1,034,918       17,010       519,115       2,319,320       125,905  
President, Chief
    2003       966,240       2,083,162       5,940       501,935       2,404,720       59,881  
Executive Officer,
    2002       929,215       1,984,320       7,080       382,242       1,672,510       61,822  
Director
                                                       
 
                                                       
David M. Ratcliffe5
    2004       802,372       1,723,874       6,521       355,296       838,495       39,317  
President, Chief
                                                       
Executive Officer,
                                                       
Director
                                                       
 
                                                       
Thomas A. Fanning6
    2004       506,327       770,721       561       63,215       239,155       24,977  
Executive Vice
    2003       375,820       522,396       110,691       42,314       223,482       156,405  
President
                                                       
 
                                                       
G. Edison Holland
    2004       478,642       525,042       7,629       58,072       239,852       24,563  
Executive Vice
    2003       380,716       421,131       7,796       48,992       207,170       19,583  
President
    2002       364,868       416,003       69,102       54,624       219,677       90,046  

(SCS Summary Compensation Table continued on the next page.)


1  Tax reimbursements on certain perquisites. In 2002, Mr. Holland’s amount includes $59,548 in tax assistance associated with relocation.

2  Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Southern Company Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2002, 2003 and 2004, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. If the total shareholder return is below the 30th percentile, no dividend equivalents are paid. For eligible stock options held on December 31, 2002, 2003 and 2004, all named executives received a payout of $1.355, $1.385 and $1.22 per option, respectively.

3  Contributions in 2004 to the ESP, ESOP and non-pension related accruals under SBP are as follows:

                         
Name   ESP     ESOP     SBP  
H. Allen Franklin
  $ 8,634     $ 740     $ 31,916  
David M. Ratcliffe
    8,567       740       30,010  
Thomas A. Fanning
    8,309       740       15,928  
G. Edison Holland
    8,333       740       15,490  

In 2004, Mr. Franklin’s amount includes payment for unused vacation of $84,615 in connection with his retirement. In 2003, the amount for Mr. Fanning also included $138,149 of additional relocation assistance. In 2002, Mr. Holland’s amount included $70,307 of additional relocation expenses.

4  Mr. Franklin retired as Chairman and Chief Executive Officer effective July 2004.

5  Mr. Ratcliffe became Chairman and Chief Executive Officer effective July 2004.

6  Mr. Fanning became an executive officer on April 11, 2003.

24


Table of Contents

SCS (continued)
SUMMARY COMPENSATION TABLE

                                                         
            ANNUAL COMPENSATION     LONG-TERM COMPENSATION  
                                    Number of              
                                    Securities              
Name                                   Underlying     Long-Term        
And                           Other Annual   Stock     Incentive     All Other
Principal                           Compensation   Options     Payouts     Compensation
Position   Year   Salary ($)     Bonus ($)     ($)1   (Shares)     ($)2     ($)3  
 
W. Paul Bowers4
    2004       429,704       509,828       9,166       52,052       244,023       22,945  
Executive Vice
    2003       356,994       431,675       6,257       46,181       234,253       18,063  
President
    2002       329,570       403,433       12,337       50,046       214,133       16,802  
 
                                                       
Dwight H. Evans
    2004       383,102       416,833       13,445       46,103       249,640       21,176  
Executive Vice
    2003       368,369       407,481       5,190       47,404       407,250       20,183  
President
    2002       353,038       402,519       10,365       52,854       352,667       23,685  


1  Tax reimbursements on certain perquisites.

2  Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2002, 2003 and 2004, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. If the total shareholder return is below the 30th percentile, no dividend equivalents are paid. For eligible stock options held on December 31, 2002, 2003 and 2004, all named executives received a payout of $1.355, $1.385 and $1.22 per option, respectively.

3  Contributions in 2004 to the ESP, ESOP and non-pension related accruals under SBP are as follows:

                         
Name   ESP     ESOP     SBP  
W. Paul Bowers
    $9,225       $740       $12,980  
Dwight H. Evans
    9,108       740       11,328  

4  Mr. Bowers is also President and Chief Executive Officer of Southern Power.

25


Table of Contents

SouthernLINC Wireless
SUMMARY COMPENSATION TABLE

                                                         
            ANNUAL COMPENSATION     LONG-TERM COMPENSATION  
                                    Number of              
                                    Securities              
Name                                   Underlying     Long-Term        
And                           Other Annual   Stock     Incentive     All Other  
Principal                           Compensation   Options     Payouts     Compensation  
Position   Year   Salary ($)     Bonus ($)     ($)1   (Shares)     ($)2     ($)3  
 
Robert G. Dawson4
    2004       295,175       291,427       2,900       27,910       175,076       16,510  
President, Chief
    2003       283,824       331,668       2,397       28,698       237,489       16,760  
Executive Officer,
    2002       269,682       310,687       5,798       31,997       215,936       19,345  
Director
                                                       
 
                                                       
R. Craig Elder4
    2004       180,528       144,041       719       10,862       42,077       8,941  
Vice President,
    2003       173,606       148,994       1,973       11,169       49,662       8,663  
Chief Financial
    2002       165,763       187,069       1,664       12,458       49,365       8,500  
Officer, Treasurer
                                                       
 
                                                       
Rodney H. Johnson
    2004       150,783       105,669       2,259       6,472       16,343       8,002  
Vice President
    2003       145,433       107,434             6,700       35,661       6,878  
 
    2002       136,075       135,639       206       7,374       25,810       4,458  
 
                                                       
Julie T. Pigott
    2004       147,078       105,520       719       6,272       33,805       7,720  
Vice President
    2003       141,276       104,107       1,438       6,492       35,190       5,426  
 
    2002       134,060       133,223             7,242       25,631       6,745  


1   Tax reimbursements on certain perquisites.

2   Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2002, 2003 and 2004, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. If the total shareholder return is below the 30th percentile, no dividend equivalents are paid. For eligible stock options held on December 31, 2002, 2003 and 2004, all named executives received a payout of $1.355, $1.385 and $1.22 per option, respectively.

3  Contributions in 2004 to the ESP, ESOP and non-pension related accruals under the SBP are as follows:

                         
Name   ESP     ESOP     SBP  
Robert G. Dawson
  $ 9,225     $ 740     $ 6,545  
R. Craig Elder
    7,357       740       844  
Rodney H. Johnson
    6,785       740       477  
Julie T. Pigott
    6,572       740       408  

4 Messrs. Dawson and Elder are also chief executive officer and chief financial officer, respectively, of Southern Telecom.

26


Table of Contents

Southern Management
and
Southern Company GAS

SUMMARY COMPENSATION TABLE

                                                         
    ANNUAL COMPENSATION     LONG-TERM COMPENSATION  
                                    Number of              
                                    Securities     Long-        
Name                                   Underlying     Term        
and                           Other Annual     Stock     Incentive     All Other  
Principal                           Compensation     Options     Payouts     Compensation  
Position   Year   Salary($)     Bonus($)     ($)1     (Shares)     ($)2     ($)3  
 
Southern Management
                                                       
 
                                                       
Ronald P. Bertasi
    2004       199,588       146,868       4,867       11,983       46,541       9,981  
President, Chief
    2003       190,959       155,210       7,700       12,465       36,239       9,382  
Executive Officer,
    2002       185,000       48,100       18,395       13,700       18,564       7,001  
Director
                                                       
 
                                                       
Southern Company GAS
                                                       
 
                                                       
C. Philip Saunders4
    2004       244,994       244,787       4,720       23,207       88,988       13,116  
President, Chief
    2003       233,323       94,194       7,144       23,634       126,649       12,332  
Executive Officer
    2002       221,321       210,821             26,100       91,881       11,554  


1 Tax reimbursements on certain perquisites.

2 Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2002, 2003 and 2004, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. If the total shareholder return is below the 30th percentile, no dividend equivalents are paid. For eligible stock options held on December 31, 2002, 2003 and 2004, all named executives received a payout of $1.355, $1.385 and $1.22 per option, respectively.

3 Contributions in 2004 to the ESP, ESOP and non-pension related accruals under the SBP are as follows:-

                         
Name   ESP     ESOP     SBP  
Ronald P. Bertasi
  $ 8,982     $ 740     $ 259  
C. Philip Saunders
    5,512       740       6,864  

4 Mr. Saunders became the President and Chief Executive Officer of Southern Company GAS on July 15, 2002.

27


Table of Contents

Southern Nuclear
SUMMARY COMPENSATION TABLE

                                                         
    ANNUAL COMPENSATION     LONG-TERM COMPENSATION  
                                    Number of              
                                    Securities     Long-        
Name                                   Underlying     Term        
and                           Other Annual   Stock     Incentive     All Other  
Principal                           Compensation   Options     Payouts     Compensation  
Position   Year   Salary($)     Bonus($)     ($)1   (Shares)     ($)2     ($)3  
 
William G. Hairston, III 4
    2004       481,573       518,813       25,387       58,028       169,687       29,651  
President and Chief
    2003       459,231       499,660       9,296       59,097       217,489       24,353  
Executive Officer
    2002       440,104       507,131       11,485       65,890       239,842       27,969  
 
                                                       
J. Barnie Beasley 5
    2004       314,408       403,305       3,577       31,523       130,683       16,116  
President and Chief
    2003       220,077       179,723       4,415       18,220       126,949       12,326  
Executive Officer
    2002       206,286       181,714       3,798       19,647       129,732       13,819  
 
                                                       
Jeffrey T. Gasser 6
    2004       226,393       234,750       7,217       16,045       72,246       11,560  
Executive Vice
    2003       198,894       162,742       263       16,498       59,795       7,929  
President
    2002       164,378       162,826             8,195       51,634       8,339  
 
                                                       
H. Lewis Sumner, Jr.
    2004       224,674       181,142       563       17,365       119,022       12,096  
Vice President
    2003       215,888       176,981       3,016       17,942       142,789       11,553  
 
    2002       208,321       179,632       5,931       20,004       140,011       10,864  
 
                                                       
Lawrence M. Stinson 7
    2004       200,132       162,191       3,892       15,558       94,362       10,383  
Vice President
                                                       
 
                                                       
Kathleen S. King 8
    2004       182,328       146,688       7,339       10,300       59,443       9,088  
Vice President and Chief Financial Officer
                                                       


1 Tax reimbursements on certain perquisites.

2 Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2001, 2002 and 2003, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. If the total shareholder return is below the 30th percentile, no dividend equivalents are paid. For eligible stock options held on December 31, 2002, 2003 and 2004, all named executives received a payout of $1.355, $1.385 and $1.22 per option, respectively.

3 Southern Nuclear contributions to the ESP, ESOP and non-pension related accruals under the SBP are provided in the following table:

                         
Name   ESP     ESOP     SBP  
 
William G. Hairston, III
  $ 8,296     $ 740     $ 20,615  
J. Barnie Beasley
    9,225       740       6,151  
Jeffrey T. Gasser
    8,603       740       2,217  
H. Lewis Sumner, Jr.
    9,225       740       2,131  
Lawrence M. Stinson
    8,105       740       1,538  
Kathleen S. King
    7,839       740       509  

4 Mr. Hairston resigned as President and Chief Executive Officer effective September 1, 2004.

5 Mr. Beasley became President and Chief Executive Officer effective September 1, 2004.

6 Mr. Gasser became an executive officer effective September 1, 2002

7 Mr. Stinson became an executive officer effective January 1, 2004.

8 Ms. King became an executive officer effective April 26, 2004.

28


Table of Contents

STOCK OPTION GRANTS IN 2004

     Stock Option Grants. The following table sets forth all stock option grants to the named executive officers of each operating subsidiary during the year ending December 31, 2004. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2005 Annual Meetings of Shareholders. SAVANNAH is incorporated by reference to page number III-4 in the Form 10-K. SOUTHERN POWER’s information was omitted pursuant to General Instruction I(2)(c) of Form 10-K. SOUTHERN is incorporated by reference to “Option Grants in 2004” under STOCK OPTIONS in SOUTHERN’s definitive Proxy Statement relating to the 2005 Annual Meeting of Stockholders.

                                         
    Individual Grants     Grant Date Value  
    Number of     % of Total                    
    Securities     Options     Exercise              
    Underlying     Granted to     or              
    Share Options     Employees in     Base Price     Expiration     Grant Date  
Name   Granted1     Fiscal Year2     ($/Sh)3     Date3     Present Value($)3  
 
SCS
                                       
 
                                       
H. Allen Franklin
    519,115       7.2       29.50       7/1/2009       1,707,888  
David M. Ratcliffe
    82,265       1.1       29.50       2/13/2014       270,652  
 
    273,031       3.8       29.3150       8/2/2014       911,924  
Thomas A. Fanning
    63,215       0.9       29.50       2/13/2014       207,977  
G. Edison Holland, Jr.
    58,072       0.8       29.50       2/13/2014       191,057  
W. Paul Bowers
    52,052       0.7       29.50       2/13/2014       171,251  
Dwight H. Evans
    46,103       0.6       29.50       2/13/2014       151,679  
 
                                       
SouthernLINC Wireless
                                       
 
                                       
Robert G. Dawson
    27,910       0.4       29.50       2/13/2014       91,824  
R. Craig Elder
    10,862       0.2       29.50       2/13/2014       35,736  
Rodney H. Johnson
    6,472       0.1       29.50       2/13/2014       21,293  
Julie T. Pigott
    6,272       0.1       29.50       2/13/2014       20,635  


    1 Under the terms of the Southern Company Omnibus Incentive Compensation Plan, stock option grants were made on February 13, 2004 and for Mr. Ratcliffe, also on August 2, 2004, following his promotion to Chief Executive Officer. The options vest annually at a rate of one-third on the anniversary date of the grant. Grants fully vest upon termination as a result of death, total disability or retirement and expire five years after retirement, three years after death or total disability or their normal expiration date if earlier. The exercise price is the average of the high and low price of Southern Company’s common stock on the date granted. Options may be transferred to a revocable trust and, for the named executives, also may be transferred to certain family members, family trusts and family limited partnerships.
 
    2 A total of 7,231,703 stock options were granted in 2004.
 
    3 Value was calculated using the Black-Scholes option valuation model. The actual value, if any, ultimately realized depends on the market value of Southern Company’s common stock at a future date. Significant assumptions for the February 13, 2004 grant are shown below:
                         
    Risk-free     Dividend     Expected  
Volatility   rate of return        Yield        Term  
 
19.65%
      3.08%         4.75%           5 years
 

The assumptions for the August 2, 2004 grant to Mr. Ratcliffe were:

                         
    Risk-free     Dividend     Expected  
Volatility   rate of return     Yield     Term  
 
19.00%
      3.75%         4.88%          5 years

29


Table of Contents

STOCK OPTION GRANTS IN 2004 (continued)

                                         
    Individual Grants     Grant Date Value  
    Number of     % of Total                    
    Securities     Options     Exercise              
    Underlying     Granted to     or              
    Share Options     Employees in     Base Price     Expiration     Grant Date  
Name   Granted1     Fiscal Year2     ($/Sh)3     Date3     Present Value($)3  
 
Southern Management
                                       
 
                                       
Ronald P. Bertasi
    11,983       0.2       29.50       2/13/2014       39,424  
 
                                       
Southern Company GAS
                                       
 
                                       
C. Philip Saunders
    23,207       0.3       29.50       2/13/2014       76,351  
 
                                       
Southern Nuclear
                                       
 
                                       
William G. Hairston, III
    58,028       0.8       29.50       2/13/2014       190,912  
 
                                       
J. Barnie Beasley
    31,523       0.4       29.50       2/13/2014       103,711  
 
                                       
Jeffrey T. Gasser
    16,045       0.2       29.50       2/13/2014       52,788  
 
                                       
H. Lewis Sumner, Jr.
    17,365       0.2       29.50       2/13/2014       57,131  
 
                                       
Lawrence M. Stinson
    15,558       0.2       29.50       2/13/2014       51,186  
 
                                       
Kathleen S. King
    10,300       0.1       29.50       2/13/2014       33,887  


    1 Under the terms of the Omnibus Incentive Compensation Plan, stock option grants were made on February 13, 2004 and vest annually at a rate of one-third on the anniversary date of the grant. Grants fully vest upon termination as a result of death, total disability or retirement and expire five years after retirement, three years after death or total disability or their normal expiration date if earlier. The exercise price is the average of the high and low price of Southern Company’s common stock on the date granted. Options may be transferred to a revocable trust and for Mr. Hairston, options also may be transferred to certain family members, family trusts and family limited partnerships.
 
    2 A total of 7,231,703 stock options were granted in 2004.
 
    3. Value was calculated using the Black-Scholes option valuation model. The actual value, if any, ultimately realized depends on the market value of Southern Companys common stock at a future date. Significant assumptions are shown below:
                         
    Risk-free     Dividend     Expected  
Volatility   rate of return     Yield     Term  
 
19.65%
      3.08%         4.75%         5 years

30


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AGGREGATED STOCK OPTION EXERCISES IN 2004 AND YEAR-END OPTION VALUES

     Aggregated Stock Option Exercises. The following table sets forth information concerning options exercised during the year ending December 31, 2004 by the named executive officers and value of unexercised options held by them as of December 31, 2004. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2005 Annual Meetings of Shareholders. SAVANNAH is incorporated by reference to page number III-5 in the Form 10-K. SOUTHERN POWER’s information was omitted pursuant to General Instruction I(2)(c) of Form 10-K. SOUTHERN is incorporated by reference to “Aggregated Stock Option Exercises in 2004 and Year-End Option Values” under OPTION EXERCISES in SOUTHERN’s definitive Proxy Statement relating to the 2005 Annual Meeting of Stockholders.

                                                 
                    Number of Unexercised     Value of Unexercised  
                    Options at Fiscal     In-the-Money Options at  
    Shares Acquired     Value     Year-End (#)     Fiscal Year-End($)1  
Name   on Exercise (#)     Realized($)2     Exercisable     Unexercisable     Exercisable     Unexercisable  
 
SCS
                                               
H. Allen Franklin
  Not exercised     0       1,901,082       0       14,550,470       0  
David M. Ratcliffe
  Not exercised     0       245,302       441,989       2,604,287       2,043,244  
Thomas A. Fanning
    28,545       364,036       93,963       102,066       996,511       498,446  
G. Edison Holland
    11,053       125,498       87,659       108,941       778,700       564,953  
W. Paul Bowers
    21,169       256,162       100,498       99,521       1,020,600       517,756  
Dwight H. Evans
    135,523       1,874,454       109,300       95,323       1,025,088       506,092  
 
                                               
SouthernLINC Wireless
                                               
Robert G. Dawson
    55,877       811,705       85,797       57,708       925,080       306,386  
R. Craig Elder
    12,230       146,793       12,028       22,461       89,243       119,257  
Rodney H. Johnson
    18,824       168,414       0       13,396       0       71,084  
Julie T. Pigott
    3,971       61,650       14,695       13,014       158,712       69,152  
 
                                               
Southern Management
                                               
Ronald P. Bertasi
  Not exercised     0       13,288       24,860       98,478       131,974  
 
                                               
Southern Company GAS
                                               
C. Philip Saunders
    41,709       401,200       25,278       47,663       187,407       252,521  
 
                                               
Southern Nuclear
                                               
William G. Hairston, III
    75,972       631,479       19,699       119,389       109,231       633,149  
J. Barnie Beasley
    16,066       212,496       56,899       50,218       620,649       248,167  
Jeffrey T. Gasser
  Not exercised     0       29,443       29,775       311,724       148,051  
H. Lewis Sumner, Jr.
    22,903       350,671       61,565       35,994       682,514       191,209  
Lawrence M. Stinson
  Not exercised     0       51,479       25,867       569,563       127,686  
Kathleen S. King
    10,784       148,843       27,588       21,136       297,706       111,925  


1   This represents the excess of the fair market value of SOUTHERN’s common stock of $33.52 per share, as of December 31, 2004, above the exercise price of the options. The Exercisable column reports the “value” of options that are vested and therefore could be exercised. The Unexercisable column reports the “value” of options that are not vested and therefore could not be exercised as of December 31, 2004.
 
2   The “Value Realized” is ordinary income, before taxes, and represents the amount equal to the excess of the fair market value of the shares at the time of exercise above the exercise price.

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ITEM 6. OFFICERS AND DIRECTORS.
PART III.

     (b) Stock Ownership. The following tables show the number of shares of SOUTHERN common stock and preferred stock owned by the directors, nominees and executive officers as of December 31, 2004. It is based on information furnished to SOUTHERN by the directors, nominees and executive officers. The shares owned by all directors, nominees and executive officers of each company as a group constitute less than one percent of the total number of shares of the respective classes outstanding on December 31, 2004. SOUTHERN is incorporated by reference to the Stock Ownership Table in SOUTHERN’s definitive Proxy Statement relating to the 2005 Annual Meeting of Stockholders. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2005 Annual Meetings of Shareholders. SAVANNAH is incorporated by reference to page number III-9 in the Form 10-K. SOUTHERN POWER’s information was omitted pursuant to General Instruction I(2)(c) of Form 10-K.

                             
Name of Directors       Shares         Shares Beneficially Owned Include:      
or Nominees and       Beneficially         Shares Individuals Have Rights To      
Executive Officers   Title of Class   Owned (1)         Acquire Within 60 Days(2)      
SCS
                           
 
                           
Michael D. Garrett
  SOUTHERN Common     139,986           138,885      
David M. Ratcliffe
  SOUTHERN Common     345,682           331,490      
Charles D. McCrary
  SOUTHERN Common     247,659           243,753      
W. Paul Bowers
  SOUTHERN Common     157,864           149,924      
Dwight H. Evans
  SOUTHERN Common     173,419           158,087      
Thomas A. Fanning
  SOUTHERN Common     141,941           139,781      
G. Edison Holland, Jr.
  SOUTHERN Common     146,393           141,555      
 
                           
The directors, nominees and executive officers of SCS as a Group
  SOUTHERN Common     1,563,971     shares     1,497,122     shares
 
                           
SouthernLINC Wireless
                           
 
                           
Robert G. Dawson
  SOUTHERN Common     145,166           115,333      
Thomas A. Fanning
  SOUTHERN Common     141,941           139,781      
Michael D. Garrett
  SOUTHERN Common     139,986           138,885      
Charles D. McCrary
  SOUTHERN Common     247,659           243,753      
David M. Ratcliffe
  SOUTHERN Common     345,682           331,490      
R. Craig Elder
  SOUTHERN Common     27,518           23,525      
Rodney H. Johnson
  SOUTHERN Common     7,637           6,849      
Julie T. Pigott
  SOUTHERN Common     23,568           21,364      
 
                           
The directors, nominees and executive officers of SouthernLINC Wireless as a Group
  SOUTHERN Common     1,079,157     shares     1,020,980     shares

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ITEM 6.OFFICERS AND DIRECTORS.
PART III.

                             
Name of Directors       Shares         Shares Beneficially Owned Include:      
or Nominees and       Beneficially         Shares Individuals Have Rights To      
Executive Officers   Title of Class   Owned (1)         Acquire Within 60 Days(2)      
Southern Telecom
                           
 
                           
Robert G. Dawson
  SOUTHERN Common     145,166           115,333      
Thomas A. Fanning
  SOUTHERN Common     141,941           139,781      
Michael D. Garrett
  SOUTHERN Common     139,986           138,885      
Charles D. McCrary
  SOUTHERN Common     247,659           243,753      
David M. Ratcliffe
  SOUTHERN Common     345,682           331,490      
R. Craig Elder
  SOUTHERN Common     27,518           23,525      
 
                           
The directors, nominees and executive officers of Southern Telecom as a Group
  SOUTHERN Common     1,047,952     shares     992,767     shares
 
                           
Southern Management
                           
 
                           
Ronald P. Bertasi
  SOUTHERN Common     13,429           13,288      
Thomas A. Fanning
  SOUTHERN Common     141,941           139,781      
Michael D. Garrett
  SOUTHERN Common     139,986           138,885      
Leonard J. Haynes
  SOUTHERN Common     103,169           96,000      
Charles D. McCrary
  SOUTHERN Common     247,659           243,753      
David M. Ratcliffe
  SOUTHERN Common     345,682           331,490      
Robert M. Gilbert
  SOUTHERN Common     2,885           2,720      
 
The directors, nominees and executive officers of Southern Management as a Group
  SOUTHERN Common     1,013,190     shares     983,521     shares
 
                           
Southern Company GAS
                           
 
                           
C. Philip Saunders
  SOUTHERN Common     50,804           49,592      
 
                           
Southern Nuclear
                           
 
                           
J. Barnie Beasley
  SOUTHERN Common     89,450           80,029      
Michael D. Garrett
  SOUTHERN Common     139,986           138,885      
William G. Hairston, III
  SOUTHERN Common     85,459           80,704      
Charles D. McCrary
  SOUTHERN Common     247,659           243,753      
David M. Ratcliffe
  SOUTHERN Common     345,682           331,490      
Jeffrey T. Gasser
  SOUTHERN Common     48,762           43,023      
Kathleen King
  SOUTHERN Common     40,164           38,361      
Lawrence Stinson
  SOUTHERN Common     88,022           63,289      
H. L. Sumner, Jr.
  SOUTHERN Common     84,739           80,002      
 
                           
The directors, nominees and executive officers of Southern Nuclear as a Group
  SOUTHERN Common     1,169,924     shares     1,099,536     shares

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ITEM 6. OFFICERS AND DIRECTORS.
PART III.

Notes to Item 6, Part III(b):

(1)   As used in these tables, “beneficial ownership” means the sole or shared power to vote, or to direct the voting of, a security, or investment power with respect to a security, or any combination thereof.

(2)   Indicates shares of SOUTHERN’s common stock that directors and executive officers have the right to acquire within 60 days.

    (c) Contracts and transactions with system companies.
 
    ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2005 Annual Meetings of Shareholders. SAVANNAH is incorporated by reference to page number III-8 in the Form 10-K. SOUTHERN POWER’s information was omitted pursuant to General Instruction I(2)(c) of Form 10-K.
 
    (d) Indebtedness to system companies.    None.
 
    (e) Participation in bonus and profit sharing arrangements and other benefits.
 
    SOUTHERN is incorporated by reference to Executive Compensation in SOUTHERN’s definitive Proxy Statement relating to the 2005 Annual Meeting of Stockholders. Also, ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2005 Annual Meetings of Shareholders. SAVANNAH is incorporated by reference to page numbers III-6 and III-7 in the Form 10-K. SOUTHERN POWER’s information was omitted pursuant to General Instruction I(2)(c) of Form 10-K.
 
    SOUTHERN’s Change in Control Plan is applicable to certain of its officers, and individual change in control agreements have been entered into with some of the most highly compensated executive officers of SCS, SouthernLINC Wireless, Southern Telecom, Southern Management, Southern Company GAS and Southern Nuclear. If an executive is involuntarily terminated, other than for cause, within two years following a change in control of SOUTHERN the agreements provide for:

  •   lump sum payment of two or three times annual compensation,
 
  •   up to five years’ coverage under group health and life insurance plans,
 
  •   immediate vesting of all stock options, stock appreciation rights and restricted stock previously granted,
 
  •   payment of any accrued long-term and short-term bonuses and dividend equivalents, and
 
  •   payment of any excise tax liability incurred as a result of payments made under any individual agreements.

    A SOUTHERN change in control is defined under the agreements as:

  •   acquisition of at least 20 percent of SOUTHERN’s stock,
 
  •   a change in the majority of the members of SOUTHERN’s board of directors,
 
  •   a merger or other business combination that results in SOUTHERN’s shareholders immediately before the merger owning less than 65 percent of the voting power after the merger, or
 
  •   a sale of substantially all the assets of SOUTHERN.

    If a change in control affects only a subsidiary of SOUTHERN, these payments would only be made to executives of the affected subsidiary who are involuntarily terminated as a result of that change in control.
 
    SOUTHERN also provides in its incentive plans for pro-rata payments at not less than target-level performance if a change in control occurs and the plans are not continued or replaced with comparable plans.
 
    On December 22, 2004, Southern Nuclear entered into an employment agreement with William G. Hairston III. Under the agreement, Mr. Hairston will continue his employment as Chairman of Southern Nuclear, a position he has held since September 1, 2004. Prior to September 1, 2004, Mr. Hairston served as President and Chief Executive Officer of Southern Nuclear. The agreement will terminate on July 1, 2005, unless earlier terminated by either Southern Nuclear or Mr. Hairston in accordance with its terms. Under the agreement, Mr. Hairston received a base salary of $40,482 per month until March 1, 2005, when it was increased under SOUTHERN’s base salary program to $42,101. He also receives benefits under various Southern Nuclear and SOUTHERN benefit plans generally provided to similarly situated employees, including pension, capital accumulation and welfare benefit plans. The agreement also

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    includes confidentiality and non-disclosure provisions that apply during the term of the agreement and for periods of time following Mr. Hairston’s termination of employment.
 
    Southern Nuclear and Mr. Hairston also entered into a Release and Restrictive Covenant Agreement on December 22, 2004, under which Mr. Hairston would receive a lump sum payment of approximately $1.3 million by February 28, 2005, which has been paid. Under the Release, Mr. Hairston released SOUTHERN and its subsidiaries from any claims relating to his prior service with SOUTHERN and its subsidiaries and agreed to comply with confidentiality and non-disclosure provisions consistent with those included in the Employment Agreement, as well as non-competition provisions, for periods of time following his termination of employment .
 
    On February 22, 2002, SOUTHERN, SAVANNAH, SCS and GULF entered into a Supplemental Pension Agreement with Mr. Holland. The agreement provides that upon the retirement of Mr. Holland, he will be paid a monthly amount equal to the difference in the amount he receives from the Southern Company Pension Plan and the amount he would have received had he been employed by a subsidiary or affiliate of SOUTHERN since January 1, 1980. The agreement also provides for lump sum payments upon Mr. Holland’s retirement equal to the amount he would have received under the Southern Company Employee Savings Plan and Employee Stock Ownership Plan had he participated in such plans in 1992.
 
    Under the terms of the offer of employment extended to Kathleen King, Southern Nuclear agreed that upon her retirement she will receive supplemental retirement payments calculated as if she had an additional eight years of accredited service under the Southern Company Pension Plan.
 
    (f) Rights to indemnity. Incorporated by reference are the by-laws for the companies of the SOUTHERN system, contained herein as Exhibits.

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ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS.

  (1) Expenditures, disbursements or payments, directly or indirectly, in money, goods or services, to or for the account of any political party, candidate for public office or holder of such office, or any committee or agent thereof.

                                 
                    Accounts Charged,        
                    if any, per Books        
                    of Disbursing        
Name of Company   Name of Recipient or Beneficiary     Purpose     Company     Amount($)  
 
                               

None

          SOUTHERN, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH have established political action committees and have incurred certain costs in the administration of these committees in accordance with the provisions of the Federal Election Campaign Act and the Public Utility Holding Company Act.

  (2)   Expenditures, disbursements or payments, directly or indirectly, in money, goods or services, to or for the account of any citizens group or public relations counsel.

The information called for by this item was compiled, and memoranda from each company in the system were received and are being preserved by SOUTHERN, in accordance with the instructions to this item.

                         
            Accounts Charged,        
            if any, per Books        
Name of Company   Name of Recipient or Beneficiary   Purpose   of Disbursing Company     Amount($)  
ALABAMA
  Business Council of Alabama   Dues & Support     426       236,030  
 
  Edison Electric Institute   Dues     921       1,344  
 
  Nature Conservancy of Alabama   Dues & Support     426,921       300,100  
 
  Nuclear Energy Institute   Dues     524       520,420 *
 
  Public Affairs Research Council of Alabama   Dues     426,921,930       12,580  
 
                       
GEORGIA
  Atlanta Committee for Progress   Dues     930       40,000  
 
  Buckhead Coalition   Dues     930       5,000  
 
  Central Atlanta Progress   Dues     930       53,750  
 
  Edison Electric Institute   Dues     426,930       774,262  
 
  Forward Atlanta   Support     930       250,000  
 
  Georgia Conservancy   Support     426       36,511  
 
            n/a       25,000 **
 
  Georgians for Better Transportation   Dues     930       10,000  
 
  Nature Conservancy   Support     426       15,000  
 
            n/a       50,000 **
 
  Nuclear Energy Institute   Dues     524,426       608,865 ***

*   This amount was paid by Southern Nuclear and billed to ALABAMA.
 
**   Georgia Power Foundation.
 
***   This amount, which excludes dues billed to joint owners of Plants Hatch and Vogtle, was paid by Southern Nuclear and billed to GEORGIA.

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ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued)

                         
            Accounts Charged,        
            if any, per Books        
            of Disbursing        
Name of Company   Name of Recipient or Beneficiary   Purpose   Company     Amount($)  
GULF  
Economic Development Council - Bay County
  Support     912       20,000  
   
Economic Development Council - Holmes County
  Support     912       10,000  
   
Chamber of Commerce – Florida
  Support & Dues     912,921       31,640  
   
Chamber of Commerce – Pensacola
  Support & Dues     909,921,930       39,904  
   
Chamber of Commerce – Washington County
  Support     426,912       11,500  
   
Edison Electric Institute
  Dues     426,921,930       195,842  
   
Enterprise Florida
  Support     912,921,930       61,000  
   
Florida’s Great Northwest
  Support & Dues     912       110,000  
   
University of West Florida HAAS Center
  Support     912       35,000  
   
Other Economic Development Councils/ Activity Groups (13 Beneficiaries)
  Support & Dues     426,909,912,921,930       39,175  
 
                       
MISSISSIPPI  
American Association of Blacks in Energy
  Dues     921       3,000  
   
Area Development Partnership
  Dues     426       8,000  
   
Business & Industry Political Education Committee
  Dues     426       4,000  
   
Coastal Conservation Association
  Dues     921       1,200  
   
East Mississippi Business Development Authority
  Dues     426       10,000  
   
Economic Development Authority
  Dues     426       2,750  
   
Edison Electric Institute
  Dues     426,930       177,275  
   
Mississippi Economic Council
  Dues     426,930       65,000  
   
Mississippi Gulf Coast Economic Development Council
  Dues     426,930       2,750  
   
Mississippi Manufacturers Association
  Dues     426,930       3,350  
   
Mississippi Minority Business Alliance
  Dues     426       1,500  
   
Mississippi Municipal Association
  Dues     426,930       4,200  
   
Mississippi Partnership for Economic Development
  Support     921       20,000  
   
Mississippi Wildlife Federation
  Dues     426,930       5,000  
   
Mississippi World Trade Center
  Dues     921       5,000  
   
North American Association for Environmental Education
  Dues     930       3,000  
   
Partners for Stennis Space Center
  Dues     921       2,500  
   
Retail Association of Mississippi
  Dues     426,930       2,000  
 
                       
SAVANNAH  
Association of Edison Illuminating Companies, Inc.
  Dues     930       346  
   
Clean Coast
  Support     426       5,000  
   
Edison Electric Institute
  Dues     426,930       81,751  
   
Georgia Conservancy
  Support     426       1,500  
   
Georgians for Better Transportation
  Dues     930       1,000  
   
Nature Conservancy
  Support     426       5,000  
   
North American Energy Standards Board
  Membership     930       5,000  
   
Southeastern Electric Reliability Council
  Membership     930       30,688  
   
Southeastern Electrification Council
  Membership     930       3,200  
   
Southeastern Electric Exchange
  Membership     930       5,488  

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ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS.

PART I.

                 
Transactions   Serving Company   Receiving Company   Compensation  
 
(Note 1)
  (Note 1)   SouthernLINC Wireless     (Note 1)
 
(Note 1)
  (Note 1)   Southern Management     (Note 1)
 
(Note 1)
  (Note 1)   Southern Company GAS     (Note 1)
 
(Note 1)
  (Note 1)   Synfuel Services     (Note 1)
 
(Note 1)
  (Note 1)   ERA     (Note 1)
 
(Note 1)
  (Note 1)   Alabama Synfuel Services, Inc.     (Note 1)
 
(Note 1)
  (Note 1)   SCES LLC     (Note 1)
 
Sublease of railcars (Note 2)
  ALABAMA   GEORGIA   $ 891,039  
Sublease of railcars (Note 2)
  ALABAMA   GULF   $ 200  
Sublease of railcars (Note 2)
  ALABAMA   MISSISSIPPI   $ 720,287  
Sublease of railcars (Note 2)
  ALABAMA   SAVANNAH   $ 45,159  
Sublease of railcars (Note 2)
  GEORGIA   ALABAMA   $ 215,790  
Sublease of railcars (Note 2)
  GEORGIA   GULF   $ 305,394  
Sublease of railcars (Note 2)
  GEORGIA   MISSISSIPPI   $ 447,152  
Sublease of railcars (Note 2)
  GEORGIA   SAVANNAH   $ 334,013  
Sublease of railcars (Note 2)
  MISSISSIPPI   ALABAMA   $ 163,114  
Sublease of railcars (Note 2)
  MISSISSIPPI   GEORGIA   $ 941,848  
Sublease of railcars (Note 2)
  MISSISSIPPI   GULF   $ 104,390  
Sublease of railcars (Note 2)
  MISSISSIPPI   SAVANNAH   $ 10,477  
Sublease of railcars (Note 2)
  SAVANNAH   GEORGIA   $ 143,167  
Sublease of railcars (Note 2)
  GEORGIA   SCRS   $ 384,119  
Sublease of railcars (Note 2)
  SCRS   ALABAMA   $ 11,241  
Sublease of railcars (Note 2)
  SCRS   GEORGIA   $ 2,471,015  
Sublease of railcars (Note 2)
  ALABAMA   SCRS   $ 91,583  
Sublease of railcars (Note 2)
  GEORGIA   SCRS   $ 499,454  
Sublease of railcars (Note 2)
  MISSISSIPPI   SCRS   $ 49,300  

Note 1: SouthernLINC Wireless and Southern Management have agreements with SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI, SAVANNAH and Southern Nuclear pursuant to which SouthernLINC Wireless and Southern Management reimburse each of such companies for the full cost of services, personnel and facilities provided to SouthernLINC Wireless and Southern Management.

Pursuant to such agreements, during 2004 the total reimbursements to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI, SAVANNAH and Southern Nuclear from SouthernLINC Wireless were $35,036,642; $1,169,839; $997,967; $118,729; $140,119; $23,923 and none, respectively; and from Southern Management were $962,626; none; $160,180; $22,350; none; $6,201 and $4,933, respectively. Southern Management in 2004 also reimbursed SCES LLC $287,795 for the full cost of services, personnel and facilities.

Southern Company GAS during 2004 also reimbursed GEORGIA and SCS for certain services which were furnished, at cost in the amounts of $363,724 and $12,444,777 , respectively.

Synfuel Services has agreements with SCS, ALABAMA and GEORGIA pursuant to which Synfuel Services reimburses each of these companies for full cost of services, personnel and facilities. Pursuant to these agreements, during 2004 Synfuel Services’ reimbursements to SCS, ALABAMA and GEORGIA were $66,534, $28,539,290 and $53,340,084, respectively.

ERA has an agreement with SCS pursuant to which ERA reimburses SCS for the full cost of services, personnel and facilities. Pursuant to this agreement, during 2004 ERA’s reimbursement to SCS was $111,048.

Alabama Synfuel Energy, Inc. has an agreement with SCS pursuant to which reimburses SCS for the full cost of services, personnel and facilities. Pursuant to this agreement, during 2004 Alabama Synfuel Energy, Inc.’s reimbursement to SCS was $642,374.

38


Table of Contents

ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS. (Continued)

SCES LLC has agreements with SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPPI, SAVANNAH and Southern Nuclear for services, personnel and facilities. During 2004, SCES LLC reimbursed to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI, SAVANNAH and Southern Nuclear $1,727,963; $113,114; $140,230; $20,211; $461; none and $780, respectively. During 2004, SCES LLC reimbursed SouthernLINC Wireless $340 for the full cost of services, personnel and facilities.

Note 2: The Serving Company owns or leases the railcars; the Receiving Company subleases the railcars and the Compensation is the amount paid to the Serving Company for use of the railcars. From time to time, on an as-needed, as-available basis, an affiliate may sublease its railcars, at cost, to other affiliates.

PART II.

                 
Transactions   Serving Company   Receiving Company   Compensation  
 
Surveyor Services
  Baskerville-Donovan, Inc.   GULF   $ 9,507  
 

Mr. Fred C. Donovan, a director of GULF, is the Chairman and Chief Executive Officer Baskerville-Donovan, Inc. (an architectural and engineering firm) in Pensacola, Florida.

PART III. None.

39


Table of Contents

ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES

Part I (a)  See Item 1 for the names of the companies and Item 6 – Part I for its location and business address.

Part I (b)  Information for this item was filed confidentially under a Rule 24 Certificate of Notification for File No. 70-9727 for the year ended December 31, 2004 as Exhibit B.

Part I (c)

                     
   
  COMPANIES     DEBT TO EQUITY     EARNINGS    
                 
 
SE Finance Capital Corporation II
    1.5     $ 65,934,302    
 
SE Choctaw LLC
       0     $ 9,596,993    
 
SE Finance Capital Corporation
    1.5     $ 59,279,777    
 
Southern Energy Finance Company, Inc.
    0.4     $ 63,026,023    
 
 
                 
 
EPZ Lease, Inc.
                 
 
EPZ Lease, LLC
                 
 
EPZ Lease Holdings A, LLC
                 
 
EPZ Lease Trust A
                 
 
EPZ Lease Holdings B LLC
                 
 
EPZ Lease Trust B
                 
 
EPZ Lease Holdings C LLC
                 
 
EPZ Lease Trust C
                 
 
 
                 
 
Dutch Gas Lease, Inc.
                 
 
Dutch Gas Lease, LLC
                 
 
Dutch Gas Lease Holdings A, LLC
                 
 
Dutch Gas Lease Trust A
                 
 
Dutch Gas Lease Holdings B LLC
                 
 
Dutch Gas Lease Trust B
                 
 
Dutch Gas Lease Holdings C LLC
                 
 
Dutch Gas Lease Trust C
                 
 
 
                 
 
GAMOG Lease, Inc.
                 
 
GAMOG Lease Holdings A, LLC
                 
 
GAMOG Lease Trust A
                 
 
GAMOG Lease Holdings B, LLC
                 
 
GAMOG Lease Trust B
                 
 
GAMOG Lease Holdings C, LLC
                 
 
GAMOG Lease Trust C
                 
 
 
                 
 
Nuon Lease, Inc.
                 
 
Nuon Lease Holdings D, LLC
                 
 
Nuon Lease Trust D
                 
 
Nuon Lease Holdings E, LLC
                 
 
Nuon Lease Trust E
                 
 
Nuon Lease Holdings F, LLC
                 
 
Nuon Lease Trust F
                 
 
 
                 
 
Southern Company-Florida LLC
    0     $ 15,382,000    
 
 
                 
 
SE Ravenswood Trust
    0     $ 7,442,996    
                 

PART I(d)L

None.

PART II

Exhibits G and H, submitted with this filing, are being incorporated by reference.

40


Table of Contents

ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
PART III

SOUTHERN’s aggregate investment in EWGs and FUCOs at December 31, 2004 is as follows:

                                             
 
      Total Equity1 Debt2 Guarantees3
        (in thousands)    
 
Investment In EWGs & FUCOs (A)
    $ 264,793       $ 264,793       $       $    
 
                                             
 
        SOUTHERN’s Investment    
  Investment in   (in thousands)
  Domestic Public-Utility Subs     Total       Equity       Debt       Guarantees    
                             
 
ALABAMA
    $ 2,285,183       $ 2,285,183       $       $    
 
GEORGIA
      2,822,518         2,822,518                    
 
GULF
      435,455         435,455                    
 
MISSISSIPPI
      333,528         333,528                    
 
SAVANNAH
      126,756         126,756                    
 
SOUTHERN POWER4
      602,228         602,228                    
 
SEGCO
      34,432         34,432                    
 
(B) Total Domestic Public – Utility Subsidiaries
    $ 6,640,100       $ 6,640,100       $       $    
                             

RATIO A÷B           0.04 1


(1)   Included Common Stock held by SOUTHERN and Paid-in-Capital by SOUTHERN.
 
(2)   Long-term debt owed to SOUTHERN.
 
(3)   Direct or indirect guarantees of securities of EWGs and FUCOs by SOUTHERN.
 
(4)   SOUTHERN’s investment in SOUTHERN POWER less SOUTHERN’s investment in EWGs at SOUTHERN POWER.

41


ITEM 10 - FINANCIAL STATEMENTS AND EXHIBITS

SOUTHERN AND SUBSIDIARY COMPANIES

INDEX TO FINANCIAL STATEMENTS

December 31, 2004

         
    Page  
    Number  
FINANCIAL STATEMENTS:
       
    A-1  
    A-3  
    A-5  
    A-9  
    A-13  
    A-14  
    A-15  
    A-15  
    A-16  
 
       
OTHER FINANCIAL STATEMENTS:
       
    A-17  
    A-22  
    A-27  
    A-30  
    A-33  
    A-36  
    A-41  
 
       
EXHIBITS
    A-45  
 
       
SCHEDULES:
       

     Schedules supporting financial statements of ALABAMA, GEORGIA, GULF, MISSISSIPPI, SAVANNAH and SEGCO are incorporated by reference to those companies’ annual reports on Federal Energy Regulatory Commission Form 1 for the year ended December 31, 2004, as filed with the Federal Energy Regulatory Commission.

 


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
                                                                                 
            Intercompany                                                                
            Eliminations                                                             Southern  
            and Transfers                                                             Company  
    Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     Funding  
Operating Revenues:
                                                                               
Retail sales
  $ 9,732,131     $ (631 )   $     $ 3,292,828     $ 4,776,985     $ 736,870     $ 584,313     $ 341,766     $     $  
Sales for resale —
                                                                               
Non-affiliates
    1,341,282                   483,839       246,545       73,537       265,863       5,035              
Affiliates
          (1,251,828 )           308,312       166,245       110,264       44,371       6,130       172,642        
Other electric revenues
    391,430       (11,433 )           151,012       181,033       39,460       15,779       4,029       1,767        
Other revenues
    437,249       (92,670 )                                                
 
Total operating revenues
    11,902,092       (1,356,562 )           4,235,991       5,370,808       960,131       910,326       356,960       174,409        
 
Operating Expenses:
                                                                               
Fuel
    3,521,425       (81,720 )           1,186,472       1,232,496       367,155       320,997       55,721       105,114        
Purchased power —
                                                                               
Non-affiliates
    642,721       (757 )           186,187       304,978       30,720       33,528       11,413              
Affiliates
          (1,232,272 )           226,697       671,098       35,177       73,235       114,261              
Other operations
    2,301,644       (43,258 )     70,758       634,030       902,167       160,635       164,362       61,134       22,090        
Maintenance
    1,027,067                   313,407       498,114       69,077       77,001       24,831       20,090        
Depreciation and amortization
    955,435                   425,906       275,488       82,799       39,390       21,252       11,734        
Taxes other than income taxes
    626,866             198       242,809       227,806       69,856       55,572       15,245       1,307        
 
Total operating expenses
    9,075,158       (1,358,007 )     70,956       3,215,508       4,112,147       815,419       764,085       303,857       160,335        
 
Operating Income
    2,826,934       1,445       (70,956 )     1,020,483       1,258,661       144,712       146,241       53,103       14,074        
Other Income and (Expense):
                                                                               
Allowance for equity funds used during construction
    47,198                   16,141       26,659       1,855             2,379       164        
Interest income
    27,090       (75,327 )     6,468       15,677       6,657       1,224       777       208             2,538  
Equity in earnings (losses) of unconsolidated subsidiaries
    (94,786 )     (1,598,399 )     1,578,302       4,322       4,898       26       89       35              
Leveraged lease income
    70,170                                                        
Interest expense, net of amounts capitalized
    (540,523 )     74,873       (66,469 )     (193,590 )     (182,370 )     (31,482 )     (11,776 )     (12,047 )     (3,185 )     (2,538 )
Interest expense to affiliate trusts
    (99,736 )                 (16,191 )     (44,565 )     (3,443 )     (1,948 )                  
Distributions on mandatorily redeemable preferred securities
    (27,230 )                       (15,839 )     (1,113 )     (630 )     (109 )            
Preferred dividends of subsidiaries
    (29,816 )                 (23,597 )     (670 )     (217 )     (3,832 )     (1,500 )            
Other income (expense), net
    (60,273 )     (480 )     (8,698 )     (29,050 )     (16,260 )     (3,644 )     (1,454 )     (3,459 )     661        
 
Total other income and (expense)
    (707,906 )     (1,599,333 )     1,509,603       (226,288 )     (221,490 )     (36,794 )     (18,774 )     (14,493 )     (2,360 )      
 
Earnings Before Income Taxes
    2,119,028       (1,597,888 )     1,438,647       794,195       1,037,171       107,918       127,467       38,610       11,714        
Income taxes
    586,771       559       (93,098 )     313,024       379,170       39,695       50,666       14,378       4,326        
 
Consolidated Net Income
  $ 1,532,257     $ (1,598,447 )   $ 1,531,745     $ 481,171     $ 658,001     $ 68,223     $ 76,801     $ 24,232     $ 7,388     $  
 
         
Common Stock Data:
       
Earnings Per Share -
       
Basic
  $ 2.07  
Diluted
  $ 2.06  
Average number of shares of common stock outstanding (stated in thousands)
     
Basic
    738,879  
Diluted
    743,076  
Cash dividends paid per share of common stock
  $ 1.415  

(Continued on following page)

A-1


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                 
                            Southern                     Southern     Deferred     Deferred     Change in  
    Southern     Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
    Power     Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
Operating Revenues:
                                                                               
Retail sales
  $     $     $     $     $     $     $     $     $     $  
Sales for resale —
                                                                               
Non-affiliates
    266,463                                                        
Affiliates
    425,065       2,707             16,092                                      
Other electric revenues
    9,783                                                        
Other revenues
          155,960       2,803       188,251             9,417       173,488                    
 
Total operating revenues
    701,311       158,667       2,803       204,343             9,417       173,488                    
 
Operating Expenses:
                                                                               
Fuel
    127,103       81,719                               126,368                    
Purchased power —
                                                                               
Non-affiliates
    76,652                                                        
Affiliates
    111,804                                                        
Other operations
    58,111       87,756       3,659       137,567             7,214       35,307       10             102  
Maintenance
    17,084       4             7,459                                      
Depreciation and amortization
    51,161       9,480       133       30,577             1,560       5,955                    
Taxes other than income taxes
    11,273             5       2,375             390       30                    
 
Total operating expenses
    453,188       178,959       3,797       177,978             9,164       167,660       10             102  
 
Operating Income
    248,123       (20,292 )     (994 )     26,365             253       5,828       (10 )           (102 )
Other Income and (Expense):
                                                                               
Allowance for equity funds used during construction
                                                           
Interest income
    736       66,971       86       86       22       118             20       287       542  
Equity in earnings (losses) of unconsolidated subsidiaries
          (96,736 )     12,677                                            
Leveraged lease income
          70,170                                                  
Interest expense, net of amounts capitalized
    (66,088 )     (41,121 )     (97 )     (2,486 )           (458 )     (1,689 )                  
Interest expense to affiliate trusts
          (33,589 )                                                
Distributions on mandatorily redeemable preferred securities
          (9,539 )                                                
Preferred dividends of subsidiaries
                                                           
Other income (expense), net
    1,672       1,667       (1,054 )     (242 )           445       (496 )           119        
 
Total other income and (expense)
    (63,680 )     (42,177 )     11,612       (2,642 )     22       105       (2,185 )     20       406       542  
 
Earnings Before Income Taxes
    184,443       (62,469 )     10,618       23,723       22       358       3,643       10       406       440  
Income taxes
    72,935       (205,507 )     (734 )     9,715       8       227       1,407                    
 
Consolidated Net Income
  $ 111,508     $ 143,038     $ 11,352     $ 14,008     $ 14     $ 131     $ 2,236     $ 10     $ 406     $ 440  
 

The notes to the financial statements (herein incorporated by reference as part of exhibit
numbers A-1 through A-7 inclusive) are an integral part of this statement.

A-2


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
                                                                                         
            Intercompany                                                                        
            Eliminations                                                                        
            and Transfers                                                                     Southern  
    Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     SCS     Nuclear  
Operating Activities:
                                                                                       
Consolidated net income
  $ 1,532,257     $ (1,627,994 )   $ 1,531,476     $ 504,768     $ 658,671     $ 68,440     $ 80,633     $ 25,732     $ 7,388     $     $  
Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities —
                                                                                       
Depreciation and amortization
    1,177,991             647       497,010       361,958       88,772       60,260       23,710       12,783       19,875       691  
Deferred income taxes and investment tax credits
    558,802             (21 )     252,858       251,623       46,255       44,424       13,441       (2,143 )            
Plant Daniel capacity
    (16,508 )                                   (16,508 )                        
Allowance for equity funds used during construction
    (47,199 )                 (16,141 )     (26,659 )     (1,855 )           (2,379 )     (165 )            
Equity in losses (earnings) of unconsolidated subsidiaries
    94,786       1,598,287       (1,578,033 )     (4,322 )     (4,898 )     (26 )     (88 )     (35 )           (143 )     (27 )
Leveraged lease income
    (70,170 )                                                            
Pension, postretirement, and other employee benefits
    (470 )           (190 )     (29,362 )     2,636       (895 )     (1,084 )     6,114             19,650       (558 )
Tax benefit of stock options
    31,344       (31,040 )     31,344       10,672       9,701       3,063       1,532       861                   3,692  
Hedge settlements
    (9,686 )                 2,241       (12,394 )                 467                    
Other, net
    (21,267 )     (12,041 )     (988 )     1,388       (33,289 )     11,982       (1,612 )     (7,658 )     9,579       1,490       (6,401 )
Changes in certain current assets and liabilities —
                                                                                       
Receivables, net
    (369,061 )     73,512       16,520       (144,256 )     (225,454 )     1,741       (26,373 )     (26,371 )     4,593       (31,647 )     (2,310 )
Fossil fuel stock
    (8,320 )                 30,130       (46,730 )     2,355       5,528       (1,938 )                  
Materials and supplies
    (31,477 )                 (26,229 )     618       (831 )     (3,768 )     (842 )           (715 )      
Other current assets
    13,991       31,967       (3,325 )     19,131       (9,314 )     (29,622 )     1,401       (5,324 )     (234 )     (6,735 )     (1,422 )
Accounts payable
    28,967       (69,446 )     6,931       (12,778 )     132,001       (51,876 )     (5,555 )     5,035       (1,534 )     24,554       7,036  
Accrued taxes
    (108,867 )     (32,141 )     (3,662 )     (24,568 )     (64,563 )     629       151       3,352       1,115       14,610       (743 )
Accrued compensation
    (15,803 )     (193 )           (7,041 )     (6,664 )     1,946       82       (40 )           (3,215 )     (1,175 )
Other current liabilities
    (47,189 )     (2,297 )     2,636       (42,544 )     5,836       3,111       (19,709 )     (911 )     (301 )     7,871       (238 )
 
Net cash provided from (used for) operating activities
    2,692,121       (71,386 )     3,335       1,010,957       993,079       143,189       119,314       33,214       31,081       45,595       (1,455 )
 
Investing Activities:
                                                                                       
Gross property additions
    (2,109,995 )                 (797,014 )     (786,314 )     (161,205 )     (70,063 )     (51,301 )     (11,974 )     (23,005 )     (2,094 )
Property sales to (purchases from) affiliates
                            (339,750 )                 (74,832 )                  
Investment in unconsolidated subsidiaries
    (96,536 )     464,638       (457,517 )     (242 )     1,058       (79 )     (1,816 )     (41 )           (2,564 )     (830 )
Cost of removal net of salvage
    (74,817 )                 (37,369 )     (21,756 )     (10,259 )     (3,189 )     (885 )     (1,975 )            
Construction receivables/payable, net
    24,570       14,074             7,941       413       13,682       1,243       1,566                    
Other
    4,914       (1,460,966 )     1,497,358       3,876       30,445       22,788       (2,253 )     291       164       (7,939 )      
 
Net cash provided from (used for) investing activities
    (2,251,864 )     (982,254 )     1,039,841       (822,808 )     (1,115,904 )     (135,073 )     (76,078 )     (125,202 )     (13,785 )     (33,508 )     (2,924 )
 
Financing Activities:
                                                                                       
Increase (decrease) in notes payable, net
    (141,228 )     (42,803 )     (124,980 )           70,956       12,334             20,567       (5,907 )            
Proceeds —
                                                                                       
Long-term debt
    1,861,711             4,414       900,000       600,000       210,000       40,000       45,376             5,521        
Mandatorily redeemable preferred securities
    200,000                         200,000                                      
Preferred stock
    175,000                   100,000                   30,000       45,000                    
Common Stock
    123,571       (40,000 )     123,571       40,000                                            
Capital contributions from parent company
          (394,905 )           17,541       260,068       29,481       1,791       47,255       583             5,474  
Redemptions —
                                                                                       
Long-term debt
    (1,245,796 )                 (726,445 )     (200,000 )     (125,000 )     (80,000 )     (30,000 )           (1,512 )      
Mandatorily redeemable preferred securities
    (240,000 )                       (200,000 )                 (40,000 )                  
Preferred stock
    (28,388 )                                   (28,388 )                        
Capital distributions to parent company
          113,000                                                        
Payment of preferred stock dividends
          27,164             (23,639 )     (654 )     (217 )     (1,829 )     (825 )                  
Payment of common stock dividends
    (1,044,734 )     1,391,189       (1,044,734 )     (437,300 )     (565,500 )     (70,000 )     (66,200 )     (23,200 )     (11,989 )            
Other
    (38,467 )     (5 )     1       (16,597 )     (17,247 )     (2,433 )     (785 )     (1,266 )     (123 )            
 
Net cash provided from (used for) financing activities
    (378,331 )     1,053,640       (1,041,728 )     (146,440 )     147,623       54,165       (105,411 )     62,907       (17,436 )     4,009       5,474  
 
Net Change in Cash and Cash Equivalents
    61,926             1,448       41,709       24,798       62,281       (62,175 )     (29,081 )     (140 )     16,096       1,095  
Cash and Cash Equivalents at Beginning of Period
    311,273             278       42,752       8,699       2,548       69,120       37,943       698       4,879       1,546  
 
Cash and Cash Equivalents at End of Period
  $ 373,199     $     $ 1,726     $ 84,461     $ 33,497     $ 64,829     $ 6,945     $ 8,862     $ 558     $ 20,975     $ 2,641  
 
Supplemental Cash Flow Information:
                                                                                       
Cash paid during the period for —
                                                                                       
Interest (net of amount capitalized)
  $ 550,782     $ (68,594 )   $ 69,066     $ 188,556     $ 228,190     $ 28,796     $ 12,084     $ 10,080     $ 3,446     $ 4,130     $  
Income taxes
    78,486             (70,723 )     69,068       127,115       24,130       6,654       4,581       5,627       648       4,777  
 

(Continued on following page)

A-3


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                         
    Southern                             Southern                     Southern     Deferred     Deferred     Change in  
    Company     Southern     Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
    Funding     Power     Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
Operating Activities:
                                                                                       
Consolidated net income
  $     $ 111,508     $ 143,038     $ 11,352     $ 14,008     $ 14     $ 131     $ 2,236     $ 10     $ 406     $ 440  
Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities —
                                                                                       
Depreciation and amortization
          65,838       8,248       (148 )     30,832             1,560       5,955                    
Deferred income taxes and investment tax credits
          23,510       (70,886 )           1,082             (616 )     (725 )                  
Plant Daniel capacity
                                                                 
Allowance for equity funds used during construction
                                                                 
Equity in losses (earnings) of unconsolidated subsidiaries
                96,736       (12,676 )     11                                      
Leveraged lease income
                (70,170 )                                                
Pension, postretirement, and other employee benefits
                305             2,785             129                          
Tax benefit of stock options
          415       45             1,041             18                          
Hedge settlements
                                                                 
Other, net
          20,021       5,672       1       (1,452 )           (2,913 )     (4,332 )     (10 )           (704 )
Changes in certain current assets and liabilities —
                                                                                       
Receivables, net
          (14,009 )     6,294       193       (631 )     (3 )     (94 )     (984 )                 218  
Fossil fuel stock
          2,894                                     (559 )                  
Materials and supplies
          (1,715 )     1,310       1,352       (657 )                                    
Other current assets
          4,144       15,868       407       (2,586 )           (390 )     25                    
Accounts payable
          (13,844 )     8,003       (2,287 )     3,462       (249 )     (336 )     (150 )                  
Accrued taxes
          32,330       (35,198 )     (580 )     (299 )     44       8       648                    
Accrued compensation
                413             512             (253 )     (175 )                  
Other current liabilities
          (1,692 )     4,633       (107 )     (3,611 )           6       128                    
 
Net cash provided from (used for) operating activities
          229,400       114,311       (2,493 )     44,497       (194 )     (2,750 )     2,067             406       (46 )
 
Investing Activities:
                                                                                       
Gross property additions
          (115,606 )     (71,606 )           (18,942 )           (225 )     (646 )                  
Property sales to (purchases from) affiliates
          414,582                                                        
Investment in unconsolidated subsidiaries
                (97,759 )     (1,162 )     (222 )                                    
Cost of removal net of salvage
                      344       (36 )                 308                    
Construction receivables/payable, net
          (14,349 )                                                      
Other
    (48,100 )     (10,043 )     (12,970 )     (719 )     148             855                   (1,570 )     (6,451 )
 
Net cash provided from (used for) investing activities
    (48,100 )     274,584       (182,335 )     (1,537 )     (19,052 )           630       (338 )           (1,570 )     (6,451 )
 
Financing Activities:
                                                                                       
Increase (decrease) in notes payable, net
    48,100       (114,349 )     23,876       (850 )     (24,862 )                 (3,310 )                  
Proceeds —
                                                                                       
Long-term debt
                56,400                                                  
Mandatorily redeemable preferred securities
                                                                 
Preferred stock
                                                                 
Common Stock
                                                                 
Capital contributions from parent company
          2,808       14,576       4,300       911             2,448                   1,218       6,451  
Redemptions —
                                                                                       
Long-term debt
          (50,000 )     (31,499 )           (1,340 )                                    
Mandatorily redeemable preferred securities
                                                                 
Preferred stock
                                                                 
Capital distributions to parent company
          (113,000 )                                                      
Payment of preferred stock dividends
                                                                 
Payment of common stock dividends
          (207,000 )                             (10,000 )                        
Other
                                        (12 )                        
 
Net cash provided from (used for) financing activities
    48,100       (481,541 )     63,353       3,450       (25,291 )           (7,564 )     (3,310 )           1,218       6,451  
 
Net Change in Cash and Cash Equivalents
          22,443       (4,671 )     (580 )     154       (194 )     (9,684 )     (1,581 )           54       (46 )
Cash and Cash Equivalents at Beginning of Period
    10       2,798       115,418       1,113       6,839       1,813       11,452       3,088             233       46  
 
Cash and Cash Equivalents at End of Period
  $ 10     $ 25,241     $ 110,747     $ 533     $ 6,993     $ 1,619     $ 1,768     $ 1,507     $     $ 287     $  
 
Supplemental Cash Flow Information:
                                                                                       
Cash paid during the period for —
                                                                                       
Interest (net of amount capitalized)
  $     $ 52,146     $ 19,946     $     $ 1,247     $     $     $ 1,689     $     $     $  
Income taxes
          13,313       (116,236 )     (702 )     7,680       (39 )     860       1,733                    
 

The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-7 inclusive) are an integral part of this statement.

A-4


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING BALANCE SHEET — DECEMBER 31, 2004
(Stated in Thousands of Dollars)
                                                                                         
            Intercompany                                                                        
            Eliminations                                                                        
            and Transfers                                                                     Southern  
    Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     SCS     Nuclear  
ASSETS
                                                                                       
Current Assets:
                                                                                       
Cash and cash equivalents
  $ 373,199     $     $ 1,726     $ 84,461     $ 33,497     $ 64,829     $ 6,945     $ 8,862     $ 558     $ 20,975     $ 2,641  
Receivables —
                                                                                       
Customer accounts receivable
    755,436                   235,221       317,937       44,255       32,978       22,875                    
Unbilled revenues
    304,479       4,593             96,486       140,027       35,889       20,803       6,681                    
Under recovered regulatory clause revenues
    530,897                   119,773       345,542       9,283       32,499       23,800                    
Other accounts and notes receivable
    320,106       2       43,056       52,145       94,377       7,177       8,883       1,608       29       74,594       867  
Affiliated companies
          (950,405 )     119,452       61,149       17,042       16,218       15,769       3,392       32,471       309,825       81,521  
Accumulated provision for uncollectible accounts
    (46,100 )           (13,220 )     (5,404 )     (7,100 )     (2,144 )     (774 )     (878 )                  
Fossil fuel stock, at average cost
    325,369                   57,787       184,267       32,999       19,704       10,590                    
Vacation pay
    105,437                   36,494       57,372       5,446       6,125                          
Materials and supplies, at average cost
    601,820                   237,919       270,422       36,761       27,438       9,913       223       1,907        
Prepaid expenses
    126,061       (107,770 )     16,053       61,896       32,696       38,375       9,237       23,030       591       15,506       11,287  
Other
    66,401       2             11,269       25,260       8,732       7,662       2,174             7,607        
 
Total current assets
    3,463,105       (1,053,578 )     167,067       1,049,196       1,511,339       297,820       187,269       112,047       33,872       430,414       96,316  
 
Property, Plant, and Equipment:
                                                                                       
In service
    41,437,588                   14,636,168       18,681,533       2,367,189       1,882,542       945,359       379,810       279,724       9,335  
Less accumulated depreciation
    14,951,009                   5,097,930       7,217,607       844,617       697,862       408,415       225,106       153,118       4,858  
 
 
    26,486,579                   9,538,238       11,463,926       1,522,572       1,184,680       536,944       154,704       126,606       4,477  
Nuclear fuel, at amortized cost
    218,133                   93,388       124,745                                      
Construction work in progress
    1,656,772                   470,844       766,140       74,004       27,961       91,275       10,662       3,977       598  
 
Total property, plant, and equipment
    28,361,484                   10,102,470       12,354,811       1,596,576       1,212,641       628,219       165,366       130,583       5,075  
 
Other Property and Investments:
                                                                                       
Nuclear decommissioning trusts, at fair value
    904,828                   445,634       459,194                                      
Leveraged leases
    976,000                                                              
Equity investments in unconsolidated subsidiaries
    107,232       (11,564,121 )     11,438,402       45,455       66,192       3,674       3,265       1,963             11,099       2,500  
Other
    284,876       (979,686 )     22,675       44,322       66,775       2,751       4,007       1,962       7       15,211       921  
 
Total other property and investments
    2,272,936       (12,543,807 )     11,461,077       535,411       592,161       6,425       7,272       3,925       7       26,310       3,421  
 
Deferred Charges and Other Assets:
                                                                                       
Deferred charges related to income taxes
    864,476                   316,528       505,664       17,566       10,668       10,588       3,462              
Prepaid pension costs
    985,633       (71,046 )     681       489,193       450,270       45,384       19,158                   51,993        
Unamortized debt issuance expense
    153,352             1,348       28,392       77,925       6,615       6,955       5,303       680       159        
Unamortized loss on reacquired debt
    323,395                   109,403       176,825       19,197       9,437       7,935       598              
Other regulatory assets
    248,953                   46,603       72,639       107,994       5,610       16,107                    
Other
    288,752       (492,360 )     18,260       106,263       80,704       13,086       20,103       28,467       5,164       36,723       199,737  
 
Total deferred charges and other assets
    2,864,561       (563,406 )     20,289       1,096,382       1,364,027       209,842       71,931       68,400       9,904       88,875       199,737  
 
Total Assets
  $ 36,962,086     $ (14,160,791 )   $ 11,648,433     $ 12,783,459     $ 15,822,338     $ 2,110,663     $ 1,479,113     $ 812,591     $ 209,149     $ 676,182     $ 304,549  
 

(Continued on following page)

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET — DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                         
    Southern                             Southern                     Southern     Deferred     Deferred     Change in  
    Company     Southern     Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
    Funding     Power     Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
ASSETS
                                                                                       
Current Assets:
                                                                                       
Cash and cash equivalents
  $ 10     $ 25,241     $ 110,747     $ 533     $ 6,993     $ 1,619     $ 1,768     $ 1,507     $     $ 287     $  
Receivables —
                                                                                       
Customer accounts receivable
          12,865       11,372       75       21,168             822       55,868                    
Unbilled revenues
                                                                 
Under recovered regulatory clause revenues
                                                                 
Other accounts and notes receivable
          893       34,832             22                   1,416                   205  
Affiliated companies
    243,022       25,423       23,078       251       1,366       3       72       351                    
Accumulated provision for uncollectible accounts
          (350 )     (66 )     (71 )     (3,352 )           (40 )     (12,701 )                  
Fossil fuel stock, at average cost
          2,904                                     17,118                    
Vacation pay
                                                                 
Materials and supplies, at average cost
          9,839       517             6,881                                      
Prepaid expenses
          12,704       (2,590 )     (380 )     13,687             748       991                    
Other
          112       2,806             (3 )           3       777                    
 
Total current assets
    243,032       89,631       180,696       408       46,762       1,622       3,373       65,327             287       205  
 
Property, Plant, and Equipment:
                                                                                       
In service
          1,821,434       22,117             370,819             33,091       8,467                    
Less accumulated depreciation
          111,200       4,875             176,093             5,690       3,638                    
 
 
          1,710,234       17,242             194,726             27,401       4,829                    
Nuclear fuel, at amortized cost
                                                                 
Construction work in progress
          200,903                   10,351             57                          
 
Total property, plant, and equipment
          1,911,137       17,242             205,077             27,458       4,829                    
 
Other Property and Investments:
                                                                                       
Nuclear decommissioning trusts, at fair value
                                                                 
Leveraged leases
                976,000                                                  
Equity investments in unconsolidated subsidiaries
                65,382       33,125       296                                      
Other
                1,045,453       2,027       35             339       19,901       960       6,949       30,267  
 
Total other property and investments
                2,086,835       35,152       331             339       19,901       960       6,949       30,267  
 
Deferred Charges and Other Assets:
                                                                                       
Deferred charges related to income taxes
                                                                 
Prepaid pension costs
                                                                 
Unamortized debt issuance expense
          14,078       11,897                                                  
Unamortized loss on reacquired debt
                                                                 
Other regulatory assets
                                                                 
Other
          52,167       187,143       1,088       1,353       336       19,711       10,807                    
 
Total deferred charges and other assets
          66,245       199,040       1,088       1,353       336       19,711       10,807                    
 
Total Assets
  $ 243,032     $ 2,067,013     $ 2,483,813     $ 36,648     $ 253,523     $ 1,958     $ 50,881     $ 100,864     $ 960     $ 7,236     $ 30,472  
 

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET — DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                         
            Intercompany                                                                        
            Eliminations                                                                        
            and Transfers                                                                     Southern  
    Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     SCS     Nuclear  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                                       
Current Liabilities:
                                                                                       
Securities due within one year
  $ 983,282     $     $     $ 225,005     $ 452,498     $ 100,000     $     $ 1,010     $     $ 8,466     $  
Notes payable
    426,394       (360,932 )     133,617             208,233       50,000             20,567       13,976              
Accounts payable —
                                                                                     
Affiliated
    12,668       (560,675 )     13,694       141,096       194,253       35,359       19,568       17,379       10,947       68,303       11,380  
Other
    871,572             5,347       198,834       310,763       77,452       52,688       16,166             164,420       9,829  
Customer deposits
    200,454                   49,598       115,661       18,470       9,053       6,973                    
Accrued taxes —
                                                                                     
Income taxes
    47,237       (105,190 )     43,801       28,498       78,269       1,927       396       148       506             167  
Other
    243,200                   29,688       129,520       9,250       44,285       5,390       418       15,267       2,035  
Accrued interest
    179,301       (22,385 )     21,337       40,029       74,529       7,665       1,731       3,050       376       535        
Accrued vacation pay
    137,452                   36,494       44,894       5,446       6,125       2,661             21,108       19,156  
Accrued compensation
    431,023       (193 )           76,858       127,340       16,989       23,913       5,612             112,265       57,868  
Other
    258,356       (1,879 )     22,269       26,365       75,699       12,988       48,677       5,248       59       33,342       598  
 
Total current liabilities
    3,790,939       (1,051,254 )     240,065       852,465       1,811,659       335,546       206,436       84,204       26,282       423,706       101,033  
 
Long-term Debt (See accompanying statements)
    10,488,076       (974,043 )     988,956       3,855,257       3,709,852       550,989       242,498       237,769       74,333       54,568        
 
Long-term Debt Payable to Affiliated Trusts
    1,960,644                   309,279       969,073       72,166       36,082                          
 
Deferred Credits and Other Liabilities:
                                                                                       
Accumulated deferred income taxes
    5,237,160       (290,790 )     1,209       1,885,120       2,556,040       229,909       167,345       90,079       24,137              
Deferred credits related to income taxes
    372,528                   148,395       170,973       23,354       20,261       8,738       807              
Accumulated deferred investment tax credits
    552,109                   205,353       300,018       18,489       18,654       7,961       1,634              
Employee benefit obligations
    864,216       (220,120 )     8,117       194,837       331,002       54,869       57,275       46,580             209,528       170,048  
Deferred capacity revenues
    71,452       (30,775 )           25,056             160                                
Asset retirement obligations
    903,385                   383,621       504,515       5,789       5,532       3,870       58              
Other cost of removal obligations
    1,295,871                   597,147       411,692       155,831       76,228       41,890       13,083              
Miscelleanous regulatory liabilities
    350,168                   214,689       92,611       2,048       28,189       12,631                    
Other
    237,379       (30,020 )     16       36,989       59,733       65,243       41,996       2,775       9,346       13,230        
 
Total deferred credits and other liabilities
    9,884,268       (571,705 )     9,342       3,691,207       4,426,584       555,692       415,480       214,524       49,065       222,758       170,048  
 
Total Liabilities
    26,123,927       (2,597,002 )     1,238,363       8,708,208       10,917,168       1,514,393       900,496       536,497       149,680       701,032       271,081  
 
Preferred Stock of Subsidiaries (See accompanying statements)
    560,472                   465,047       14,609       4,098       32,780       43,938                    
 
Common Stockholders’ Equity (See accompanying statements)
    10,277,687       (11,563,789 )     10,410,070       3,610,204       4,890,561       592,172       545,837       232,156       59,469       (24,850 )     33,468  
 
Total Liabilities and Stockholders’ Equity
  $ 36,962,086     $ (14,160,791 )   $ 11,648,433     $ 12,783,459     $ 15,822,338     $ 2,110,663     $ 1,479,113     $ 812,591     $ 209,149     $ 676,182     $ 304,549  
 

(Continued on following page)

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET — DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                         
    Southern                             Southern                     Southern     Deferred     Deferred     Change in  
    Company     Southern     Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
    Funding     Power     Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                                       
Current Liabilities:
                                                                                       
Securities due within one year
  $     $ 200     $ 195,004     $     $ 1,099     $     $     $     $     $     $  
Notes payable
    242,776             27,126             40,341                   50,690                    
Accounts payable —
                                                                                       
Affiliated
          19,265       22,533       162       2,613             336       16,455                    
Other
          11,024       6,885       489       9,046       263       433       7,933                    
Customer deposits
                            699                                      
Accrued taxes —
                                                                                       
Income taxes
                (2,361 )     564             153             359                    
Other
          4,104       108             1,685             25       1,425                    
Accrued interest
    246       28,626       23,006             199                   357                    
Accrued vacation pay
                            1,489             79                          
Accrued compensation
                2,703             7,033             635                          
Other
          83       21,233             5,711       (1 )     5,140       2,824                    
 
Total current liabilities
    243,022       63,302       296,237       1,215       69,915       415       6,648       80,043                    
 
Long-term Debt (See accompanying statements)
          1,099,435       645,161             3,301                                      
 
Long-term Debt Payable to Affiliated Trusts
                574,044                                                  
 
Deferred Credits and Other Liabilities:
                                                                                       
Accumulated deferred income taxes
          40,212       496,345             34,263       89             3,202                    
Deferred credits related to income taxes
                                                                 
Accumulated deferred investment tax credits
                                                                 
Employee benefit obligations
                2,347             9,416             317                          
Deferred capacity revenues
          30,775                   10,497             35,739                          
Asset retirement obligations
                                                                 
Other cost of removal obligations
                                                                 
Miscelleanous regulatory liabilities
                                                                 
Other
          21,678       12,903             3,490       1             (1 )                  
 
Total deferred credits and other liabilities
          92,665       511,595             57,666       90       36,056       3,201                    
 
Total Liabilities
    243,022       1,255,402       2,027,037       1,215       130,882       505       42,704       83,244                    
 
Preferred Stock of Subsidiaries (See accompanying statements)
                                                                 
 
Common Stockholders’ Equity (See accompanying statements)
    10       811,611       456,776       35,433       122,641       1,453       8,177       17,620       960       7,236       30,472  
 
Total Liabilities and Stockholders’ Equity
  $ 243,032     $ 2,067,013     $ 2,483,813     $ 36,648     $ 253,523     $ 1,958     $ 50,881     $ 100,864     $ 960     $ 7,236     $ 30,472  
 


    1 Includes Post Retirement Life & Medical Provisions, Supplemental and other Pension Accruals , Early Retirement Incentive Program Costs and other Work Force Reduction Costs, and Miscellaneous Post Employment Benefits.

The notes to the financial statements ( herein incorporated by reference as part of exhibits numbers A-1 through A-7 inclusive) are an integral part of this statement.

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF CAPITALIZATION — DECEMBER 31,2004
(Stated in Thousands of Dollars)
                                                                                             
                Intercompany                                                                        
                Eliminations                                                                        
                and Transfers                                                                     Southern  
        Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     SCS     Nuclear  
Long-Term Debt of Subsidiaries:
                                                                                           
First mortgage bonds —
                                                                                           
Maturity
  Interest Rates                                                                                        
2006
  6.50% to 6.90%     45,000                               25,000             20,000                    
2025 through 2026
  6.88%     60,000                               30,000       30,000                          
 
Total first mortgage bonds
        105,000                               55,000       30,000       20,000                    
 
Long-term senior notes and debt —
                                                                                           
Maturity
  Interest Rates                                                                                        
2005
  5.49% to 5.50%     379,187                   225,000       150,000                                        
2006
  2.65% to 6.20%     674,075                   520,000       150,000                                      
2007
  2.79% to 7.13%     1,220,016             14,913       500,000       300,000                                      
2008
  3.13% to 6.55%     462,422                   410,000                         45,000                    
2009
  4.10% to 7.00%     168,586                         125,000                               40,740        
2010 through 2044
  4.00% to 8.12%     4,534,901                   1,425,000       1,225,000       335,000       90,000       150,000       50,000              
Adjustable rates (at 1/1/05):
                                                                                           
2005
  1.66% to 3.63%     563,253                         300,000       100,000                                
2006
  2.09%     195,000                   195,000                                            
2007
  3.76%     89,563                                                              
2009
  2.48% to 2.76%     440,000                   250,000       150,000             40,000                          
Long-term notes payable to affiliates
          (974,043 )     974,043                                                  
 
Total long-term senior notes and debt
        8,727,003       (974,043 )     988,956       3,525,000       2,400,000       435,000       130,000       195,000       50,000       40,740        
 
Other long-term debt —
                                                                                           
Pollution control revenue bonds —
                                                                                           
Maturity
  Interest Rates                                                                                        
Collateralized:
                                                                                           
2006
  5.25%     12,075                               12,075                                
2024
  5.50%     24,400                   24,400                                            
Variable rates (at 1/1/05):
                                                                                           
2015 through 2017
  2.01% to 2.16%     89,800                   89,800                                            
Non-collateralized:
                                                                                           
2012 through 2034
  1.08% to 5.45%     850,060                         812,560       13,000                   24,500              
Variable rates (at 1/1/05):
                                                                                           
2011 through 2038
  1.24% to 2.65%     1,564,475                   445,940       873,330       144,555       82,695       17,955                    
 
Total other long-term debt
        2,540,810                   560,140       1,685,890       169,630       82,695       17,955       24,500              
 
Capitalized lease obligations
        115,052                   52       76,982                   5,824             22,294        
 
Unamortized debt (discount), net
        (16,507 )                 (4,930 )     (522 )     (8,641 )     (197 )           (167 )            
 
Total long-term debt (annual interest requirement — $496 million)
        11,471,358       (974,043 )     988,956       4,080,262       4,162,350       650,989       242,498       238,779       74,333       63,034        
Less amount due within one year
        983,282                   225,005       452,498       100,000             1,010             8,466        
 
Long-term debt excluding amount due within one year   $ 10,488,076     $ (974,043 )   $ 988,956     $ 3,855,257     $ 3,709,852     $ 550,989     $ 242,498     $ 237,769     $ 74,333     $ 54,568     $  
 

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION — DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                             
        Southern                             Southern                     Southern     Deferred     Deferred     Change in  
        Company     Southern     Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
        Funding     Power     Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
Long-Term Debt of Subsidiaries:
                                                                                           
First mortgage bonds —
                                                                                           
Maturity
  Interest Rates                                                                                        
2006
  6.50% to 6.90%                                                                  
2025 through 2026
  6.88%                                                                  
 
Total first mortgage bonds
                                                                     
 
Long-term senior notes and debt —
                                                                                           
Maturity
  Interest Rates                                                                                        
2005
  5.49% to 5.50%                 4,187                                                  
2006
  2.65% to 6.20%                 4,075                                                  
2007
  2.79% to 7.13%           1,685       403,418                                                  
2008
  3.13% to 6.55%                 3,302             4,120                                      
2009
  4.10% to 7.00%                 2,566             280                                      
2010 through 2044
  4.00% to 8.12%           1,100,000       159,901                                                  
Adjustable rates (at 1/1/05):
                                                                                           
2005
  1.66% to 3.63%                   163,253                                                  
2006
  2.09%                                                                  
2007
  3.76%                 89,563                                                  
2009
  2.48% to 2.76%                                                                  
Long-term notes payable to affiliates
                                                                     
 
Total long-term senior notes and debt
              1,101,685       830,265             4,400                                      
 
Other long-term debt —
                                                                                           
Pollution control revenue bonds —
                                                                                           
Maturity
  Interest Rates                                                                                        
Collateralized:
                                                                                           
2006
  5.25%                                                                  
2024
  5.50%                                                                  
Variable rates (at 1/1/05):
                                                                                           
2015 through 2017
  2.01% to 2.16%                                                                  
Non-collateralized:
                                                                                           
2012 through 2034
  1.08% to 5.45%                                                                  
Variable rates (at 1/1/05):
                                                                                           
2011 through 2038
  1.24% to 2.65%                                                                  
 
Total other long-term debt
                                                                     
 
Capitalized lease obligations
                    9,900                                                  
 
Unamortized debt (discount), net
              (2,050 )                                                      
 
Total long-term debt (annual interest requirement — $496 million)
              1,099,635       840,165             4,400                                      
Less amount due within one year
              200       195,004             1,099                                      
 
Long-term debt excluding amount due within one year   $     $ 1,099,435     $ 645,161     $     $ 3,301     $     $     $     $     $     $  
 

(Continued on following page)

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION — DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                             
                Intercompany                                                                        
                Eliminations                                                                        
                and Transfers                                                                     Southern  
        Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     SCS     Nuclear  
Long-term Debt Payable to Affiliated Trusts:
                                                                                           
Maturity
  Interest Rates                                                                                        
2027 through 2041
  7.20% to 8.19%     435,368                               30,928       36,082                          
2042
  4.75% to 7.13%     1,319,090                   309,279       762,887       41,238                                
2044
  5.88%     206,186                         206,186                                      
 
Total long-term debt payable to affiliated trusts (annual interest requirement — $128 million)
        1,960,644                   309,279       969,073       72,166       36,082                          
 
Preferred Stock of Subsidiaries:
                                                                                           
$100 cumulative par or stated value —
                                                                                           
4.20% to 7.00%
        99,098                   47,611       14,609       4,098       32,780                          
$25 par or stated value —
                                                                                           
Cumulative — 5.20% to 5.83%
        294,077                   294,077                                            
Non-cumulative — 6.00%
        43,938                                           43,938                    
$100,000 par or stated value —
                                                                                           
4.95%
        123,359                   123,359                                            
 
Total preferred stock of subsidiaries (annual dividend requirement — $30 million)
        560,472                   465,047       14,609       4,098       32,780       43,938                    
 
Common Stockholders’ Equity:
                                                                                           
Common stock, par value $5 per share —
                                                                                           
Authorized - 1 billion shares
                                                                                           
Issued : 742 million shares
                                                                                           
Treasury: 0.2 million shares
                                                                                           
Par value
        3,708,675       (805,301 )     3,708,675       330,000       344,250       38,060       37,691       54,223       328       725       10  
Paid-in capital
        868,746       (6,630,952 )     866,608       1,955,183       2,478,268       397,396       295,837       72,533       34,104       150       34,799  
Treasury, at cost
        (5,557 )     (5,557 )                                                      
Retained earnings
        5,838,986       (4,121,979 )     5,834,983       1,341,049       2,102,798       159,581       215,893       107,685       25,037              
Accumulated other comprehensive income (loss)
        (133,163 )           (196 )     (16,028 )     (34,755 )     (2,865 )     (3,584 )     (2,285 )           (25,725 )     (1,341 )
 
Total common stockholders’ equity
        10,277,687       (11,563,789 )     10,410,070       3,610,204       4,890,561       592,172       545,837       232,156       59,469       (24,850 )     33,468  
 
Total Capitalization
      $ 23,286,879     $ (12,537,832 )   $ 11,399,026     $ 8,239,787     $ 9,584,095     $ 1,219,425     $ 857,197     $ 513,863     $ 133,802     $ 29,718     $ 33,468  
 

(Continued on following page)

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION — DECEMBER 31, 2004
(Stated in Thousands of Dollars)
(Continued)

                                                                                             
        Southern                             Southern                     Southern     Deferred     Deferred     Change in  
        Company     Southern     Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
        Funding     Power     Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
Long-term Debt Payable to Affiliated Trusts:                                                                                        
Maturity
  Interest Rates                                                                                        
2027 through 2041
  7.20% to 8.19%                 368,358                                                  
2042
  4.75% to 7.13%                 205,686                                                  
2044
  5.88%                                                                  
 
Total long-term debt payable to affiliated trusts
(annual interest requirement — $128 million)
                574,044                                                  
 
Preferred Stock of Subsidiaries:                                                                                        
$100 cumulative par or stated value — 4.20% to 7.00%                                                                  
$25 par or stated value —                                                                                        
Cumulative — 5.20% to 5.83%
                                                                 
Non-cumulative — 6.00%
                                                                 
$100,000 par or stated value — 4.95%                                                
 
Total preferred stock of subsidiaries
(annual dividend requirement — $30 million)
                                                                 
 
Common Stockholders’ Equity:                                                                                        
Common stock, par value $5 per share —                                                                                        
Authorized - 1 billion shares
                                                                                       
Issued : 742 million shares
                                                                                       
Treasury: 0.2 million shares
                                                                                       
Par value
                10       1       1       1       1                          
Paid-in capital
    10       740,535       304,475       75,284       162,019       15,994       4,420       29,016       854       5,283       26,930  
Treasury, at cost
                                                                 
Retained earnings
          122,134       145,938       (39,852 )     (39,325 )     (14,542 )     3,769       (9,679 )     106       1,953       3,437  
Accumulated other comprehensive income (loss)
          (51,058 )     6,353             (54 )           (13 )     (1,717 )                 105  
 
Total common stockholders’ equity     10       811,611       456,776       35,433       122,641       1,453       8,177       17,620       960       7,236       30,472  
 
Total Capitalization   $ 10     $ 1,911,046     $ 1,675,981     $ 35,433     $ 125,942     $ 1,453     $ 8,177     $ 17,620     $ 960     $ 7,236     $ 30,472  
 

The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-7 inclusive) are an integral part of this statement.

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Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
                                                                                 
            Intercompany                                                                
            Eliminations                                                                
            and Transfers                                                             Southern  
    Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     Power  
Balance, December 31, 2003
  $ 5,343,533     $ (3,907,365 )   $ 5,340,329     $ 1,291,558     $ 2,010,297     $ 161,208     $ 203,419     $ 106,653     $ 29,638     $ 217,626  
 
                                                                               
ADD:
                                                                               
 
                                                                               
Net Income After Preferred Dividends
    1,532,257       (1,598,447 )     1,531,745       481,171       658,001       68,223       76,801       24,232       7,388       111,508  
 
                                                                               
ADD (DEDUCT):
                                                                               
 
                                                                               
Dividends on Common Stock of Southern Company
    (1,044,448 )     286       (1,044,734 )                                          
Dividends on Common Stock of Subsidiary Companies
          1,391,189             (437,300 )     (565,500 )     (70,000 )     (66,200 )     (23,200 )     (11,989 )     (207,000 )
Other Adjustments to Retained Earnings
    7,644       (7,642 )     7,643       5,620             150       1,873                    
 
                                                                               
 
Balance, December 31, 2004
  $ 5,838,986     $ (4,121,979 )   $ 5,834,983     $ 1,341,049     $ 2,102,798     $ 159,581     $ 215,893     $ 107,685     $ 25,037     $ 122,134  
 
                                                                         
                    Southern                     Southern     Deferred     Deferred     Change in  
    Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
    Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
Balance, December 31, 2003
  $ 2,900     $ (51,204 )   $ (53,333 )   $ (14,556 )   $ 13,638     $ (11,915 )   $ 96     $ 1,547     $ 2,997  
 
                                                                       
ADD:
                                                                       
 
                                                                       
Net Income After Preferred Dividends
    143,038       11,352       14,008       14       131       2,236       10       406       440  
 
                                                                       
ADD (DEDUCT):
                                                                       
 
                                                                       
Dividends on Common Stock of Southern Company
                                                     
Dividends on Common Stock of Subsidiary Companies
                            (10,000 )                        
Other Adjustments to Retained Earnings
                                                     
 
                                                                       
 
Balance, December 31, 2004
  $ 145,938     $ (39,852 )   $ (39,325 )   $ (14,542 )   $ 3,769     $ (9,679 )   $ 106     $ 1,953     $ 3,437  
 

The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-7 inclusive) are an integral part of this statement.

A-13


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF PAID IN CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
                                                                                         
            Intercompany                                                                        
            Eliminations                                                                        
            and Transfers                                                                     Southern  
    Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah     SEGCO     SCS     Nuclear  
Balance, December 31, 2003
  $ 746,080     $ (6,307,893 )   $ 744,663     $ 1,927,069     $ 2,208,538     $ 364,864     $ 292,841     $ 24,417     $ 33,520     $ 150     $ 25,633  
 
                                                                                       
ADD (DEDUCT):
                                                                                       
 
                                                                                       
Proceeds from issuance of common stock over the par value thereof
    120,869             120,869                                                  
Contributions and adjustments to capital
          (437,257 )           28,213       269,769       32,544       3,323       48,116       584             9,166  
Capital distribution to SOUTHERN
          113,000                                                        
Other
    1,797       1,198       1,076       (99 )     (39 )     (12 )     (327 )                        
 
                                                                                       
 
Balance, December 31, 2004
  $ 868,746     $ (6,630,952 )   $ 866,608     $ 1,955,183     $ 2,478,268     $ 397,396     $ 295,837     $ 72,533     $ 34,104     $ 150     $ 34,799  
 
                                                                                         
    Southern                             Southern                     Southern     Deferred     Deferred     Change In  
    Company     Southern     Southern     Southern     LINC             Southern     Company     Cash     Stock     Control  
    Funding     Power     Holdings     Management     Wireless     Powercall     Telecom     Gas     Trust     Trust     Trust  
Balance, December 31, 2003
  $ 10     $ 850,312     $ 289,855     $ 65,510     $ 159,525     $ 15,994     $ 1,952     $ 23,720     $ 854     $ 4,066     $ 20,480  
 
                                                                                       
ADD (DEDUCT):
                                                                                       
 
                                                                                       
Proceeds from issuance of common stock over the par value thereof
                                                                 
Contributions and adjustments to capital
          3,223       14,620       9,774       2,494             2,468       5,296             1,217       6,450  
Capital distribution to SOUTHERN
          (113,000 )                                                      
Other
                                                                 
 
                                                                                       
 
Balance, December 31, 2004
  $ 10     $ 740,535     $ 304,475     $ 75,284     $ 162,019     $ 15,994     $ 4,420     $ 29,016     $ 854     $ 5,283     $ 26,930  
 

The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-7 inclusive) are an integral part of this statement.

A-14


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
                                                                         
            Intercompany                                            
            Eliminations                                            
            and Transfers     All Other                                      
    Consolidated     Add (Deduct)     Subsidiaries1     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah  
Consolidated Net Income
  $ 1,532,257     $ (1,598,447 )   $ 19,160     $ 1,531,745     $ 481,171     $ 658,001     $ 68,223     $ 76,801     $ 24,232  
 
Other comprehensive income:
                                                                       
Change in additional minimum pension liability, net of tax of $(11,436)
    (19,188 )                 (197 )     (4,083 )     (6,122 )     (292 )     (1,825 )     (401 )
Change in fair value of marketable securities, net of tax of $3,647
    6,493                         414       (181 )     56       80        
Changes in fair value of qualifying hedges, net of tax of $(11,776)
    (18,977 )                 (61 )     (7,906 )     (7,999 )           (297 )     255  
Less: Reclassification adjustment for amounts included in net income, net of tax of $7,208
    11,514                   1,071       3,514       2,421       145       (80 )     65  
 
Total Other Comprehensive Income
    (20,158 )                 813       (8,061 )     (11,881 )     (91 )     (2,122 )     (81 )
 
Consolidated Comprehensive Income
  $ 1,512,099     $ (1,598,447 )   $ 19,160     $ 1,532,558     $ 473,110     $ 646,120     $ 68,132     $ 74,679     $ 24,151  
 
                                                                         
                                    Southern             Southern     Deferred     Change In  
            Southern     Southern     Southern     LINC     Southern     Company     Cash     Control  
    SCS     Nuclear     Power     Holdings     Wireless     Telecom     Gas     Trust     Trust  
Consolidated Net Income
  $     $     $ 111,508     $ 143,038     $ 14,008     $ 131     $ 2,236     $ 10     $ 440  
 
Other comprehensive income:
                                                                       
Change in additional minimum pension liability, net of tax
    (5,925 )     (294 )                 (36 )     (13 )                  
Change in fair value of marketable securities, net of tax
                      6,359                         (8 )     (227 )
Changes in fair value of qualifying hedges, net of tax
                (920 )                       (2,049 )            
Less: Reclassification adjustment for amounts included in net income, net of tax
                6,324                         (1,946 )            
 
Total Other Comprehensive Income
    (5,925 )     (294 )     5,404       6,359       (36 )     (13 )     (3,995 )     (8 )     (227 )
 
Consolidated Comprehensive Income
  $ (5,925 )   $ (294 )   $ 116,912     $ 149,397     $ 13,972     $ 118     $ (1,759 )   $ 2     $ 213  
 

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2004
(Stated in Thousands of Dollars)
                                                                 
            Intercompany                                      
            Eliminations                                      
            and Transfers                                      
    Consolidated     Add (Deduct)     Southern     Alabama     Georgia     Gulf     Mississippi     Savannah  
Balance at beginning of period
  $ (113,005 )   $     $ (1,009 )   $ (7,967 )   $ (22,874 )   $ (2,774 )   $ (1,462 )   $ (2,204 )
Change in current period
    (20,158 )           813       (8,061 )     (11,881 )     (91 )     (2,122 )     (81 )
 
Balance at end of period
  $ (133,163 )   $       (196 )   $ (16,028 )   $ (34,755 )   $ (2,865 )   $ (3,584 )   $ (2,285 )
 
                                                                         
                                    Southern             Southern     Deferred     Change In  
            Southern     Southern     Southern     LINC     Southern     Company     Cash     Control  
    SCS     Nuclear     Power     Holdings     Wireless     Telecom     Gas     Trust     Trust  
Balance at beginning of period
  $ (19,800 )   $ (1,047 )   $ (56,462 )   $ (6 )   $ (18 )   $     $ 2,278     $ 8     $ 332  
Change in current period
    (5,925 )     (294 )     5,404       6,359       (36 )     (13 )     (3,995 )     (8 )     (227 )
 
Balance at end of period
  $ (25,725 )   $ (1,341 )     (51,058 )   $ 6,353     $ (54 )   $ (13 )   $ (1,717 )   $     $ 105  
 


1   Consolidating Statement of Comprehensive Income breaks out only consolidated subsidiaries which had other comprehensive income. See Consolidating Statement of Income for details of other subsidiaries net income.

The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-7 inclusive) are an integral part of this statement.

A-15


Table of Contents

Notes to Financial Statements
at December 31, 2004

The notes to SOUTHERN’s financial statements included in the Form 10-K on pages II-42 through II-70 are herein incorporated by reference as part of exhibit number A-1 and are an integral part of the financial statements.

A-16


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                 
 
    ALABAMA             ALABAMA     ALABAMA     ALABAMA     ALABAMA  
    Consolidated     Eliminations     CORPORATE     PROPERTY     TRUST IV     TRUST V  
                                    (Note B)     (Note B)  
Operating Revenues:
                                               
Retail sales
  $ 3,292,828     $     $ 3,292,828     $     $     $  
Sales for resale —
                                               
Non-affiliates
    483,839             483,839                    
Affiliates
    308,312             308,312                    
Other revenues
    151,012             151,012                    
 
Total operating revenues
    4,235,991             4,235,991                    
 
Operating Expenses:
                                               
Fuel
    1,186,472             1,186,472                    
Purchased power —
                                               
Non-affiliates
    186,187             186,187                    
Affiliates
    226,697             226,697                    
Other operations
    634,030             634,030                    
Maintenance
    313,407             313,407                    
Depreciation and amortization
    425,906             425,906                    
Taxes other than income taxes
    242,809             242,809                    
 
Total operating expenses
    3,215,508             3,215,508                    
 
Operating Income
    1,020,483             1,020,483                    
Other Income and (Expense):
                                               
Allowance for equity funds used during construction
    16,141             16,141                    
Interest income
    15,677       (4,059 )     15,599       78       1,224       2,835  
Interest expense, net of amounts capitalized
    (193,590 )     4,059       (197,649 )                  
Interest expense to affiliate trusts
    (16,191 )           (12,254 )           (1,187 )     (2,750 )
Other income (expense), net
    (24,728 )     (634 )     (24,754 )     660              
 
Total other income and (expense)
    (202,691 )     (634 )     (202,917 )     738       37       85  
 
Earnings Before Income Taxes
    817,792       (634 )     817,566       738       37       85  
Income taxes
    313,024             312,798       226              
 
Net Income
    504,768       (634 )     504,768       512       37       85  
Dividends on Preferred Stock
    23,597             23,597                    
 
Net Income After Dividends on Preferred Stock
  $ 481,171     $ (634 )   $ 481,171     $ 512     $ 37     $ 85  
 

A-17


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                 
 
    ALABAMA             ALABAMA     ALABAMA     ALABAMA     ALABAMA  
    Consolidated     Eliminations     CORPORATE     PROPERTY     TRUST IV     TRUST V  
                                    (Note B)     (Note B)  
Operating Activities:
                                               
Net income
  $ 504,768     $ (634 )   $ 504,768     $ 512     $ 37     $ 85  
Adjustments to reconcile net income to net cash provided from operating activities —
                                               
Depreciation and amortization
    497,010             497,010                    
Deferred income taxes and investment tax credits, net
    252,858             252,858                    
Deferred revenues
    (11,510 )           (11,510 )                  
Allowance for equity funds used during construction
    (16,141 )           (16,141 )                  
Pension, postretirement, and other employee benefits
    (29,362 )           (29,362 )                  
Tax benefit of stock options
    10,672             10,672                    
Other, net
    10,817       634       10,183                    
Changes in certain current assets and liabilities —
                                               
Receivables, net
    (144,256 )     533       (144,672 )     5       (37 )     (85 )
Fossil fuel stock
    30,130             30,130                    
Materials and supplies
    (26,229 )           (26,229 )                  
Other current assets
    19,131             19,131                    
Accounts payable
    (12,778 )           (12,814 )     36              
Accrued taxes
    (24,568 )           (24,862 )     294              
Accrued compensation
    (7,041 )           (7,041 )                  
Other current liabilities
    (42,544 )     (533 )     (42,011 )                  
 
Net cash provided from (used for) operating activities
    1,010,957             1,010,110       847              
 
Investing Activities:
                                               
Gross property additions
    (797,014 )           (795,585 )     (1,429 )            
Cost of removal net of salvage
    (37,369 )           (37,369 )                  
Other
    11,575             11,575                    
 
Net cash provided from (used for) investing activities
    (822,808 )           (821,379 )     (1,429 )            
 
Financing Activities:
                                               
Proceeds —
                                               
Senior notes
    900,000             900,000                    
Preferred stock
    100,000             100,000                    
Common stock
    40,000             40,000                    
Capital contributions from parent company
    17,541             17,515       26              
Redemptions —
                                         
Senior notes
    (725,000 )           (725,000 )                  
Other long-term debt
    (1,445 )           (1,445 )                  
Payment of preferred stock dividends
    (23,639 )           (23,639 )                  
Payment of common stock dividends
    (437,300 )           (437,300 )                  
Other
    (16,597 )           (16,597 )                  
 
Net cash provided from (used for) financing activities
    (146,440 )           (146,466 )     26              
 
Net Change in Cash and Cash Equivalents
    41,709             42,265       (556 )            
Cash and Cash Equivalents at Beginning of Period
    42,752             36,711       6,041              
 
Cash and Cash Equivalents at End of Period
  $ 84,461     $     $ 78,976     $ 5,485     $     $  
 

A-18


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                 
   
    ALABAMA             ALABAMA     ALABAMA  
    Consolidated     Eliminations     CORPORATE     PROPERTY  
 
Current Assets:
                               
Cash and cash equivalents
  $ 84,461     $     $ 78,976     $ 5,485  
Receivables —
                               
Customer accounts receivable
    235,221             235,221        
Unbilled revenues
    96,486             96,486        
Under recovered regulatory clause revenues
    119,773             119,773        
Other accounts and notes receivable
    52,145             52,145        
Affiliated companies
    61,149             61,091       58  
Accumulated provision for uncollectible accounts
    (5,404 )           (5,404 )      
Fossil fuel stock, at average cost
    57,787             57,787        
Vacation pay
    36,494             36,494        
Materials and supplies, at average cost
    237,919             237,919        
Prepaid expenses
    61,896             61,896        
Other
    11,269             11,269        
 
Total current assets
    1,049,196             1,043,653       5,543  
 
Property, Plant, and Equipment:
                               
In service
    14,636,168             14,636,168        
Less accumulated provision for depreciation
    5,097,930             5,097,930        
 
 
    9,538,238             9,538,238        
Nuclear fuel, at amortized cost
    93,388             93,388        
Construction work in progress
    470,844             470,844        
 
Total property, plant, and equipment
    10,102,470             10,102,470        
 
Other Property and Investments:
                               
Equity investments in subsidiaries
    45,455       (10,599 )     56,054        
Nuclear decommissioning trusts, at fair value
    445,634             445,634        
Other
    44,322             38,960       5,362  
 
Total other property and investments
    535,411       (10,599 )     540,648       5,362  
 
Deferred Charges and Other Assets:
                               
Deferred charges related to income taxes
    316,528             316,528        
Prepaid pension costs
    489,193             489,193        
Unamortized debt issuance expense
    28,392             28,392        
Unamortized loss on reacquired debt
    109,403             109,403        
Other regulatory assets
    46,603             46,603        
Other
    106,263             106,263        
 
Total deferred charges and other assets
    1,096,382             1,096,382        
 
Total Assets
  $ 12,783,459     $ (10,599 )   $ 12,783,153     $ 10,905  
 

A-19


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                 
   
    ALABAMA             ALABAMA     ALABAMA  
    Consolidated     Eliminations     CORPORATE     PROPERTY  
 
Current Liabilities:
                               
Securities due within one year
  $ 225,005     $     $ 225,005     $  
Accounts payable —
                               
Affiliated
    141,096             141,042       54  
Other
    198,834             198,834        
Customer deposits
    49,598             49,598        
Accrued taxes —
                           
Income taxes
    28,498             28,253       245  
Other
    29,688             29,681       7  
Accrued interest
    40,029             40,029        
Accrued vacation pay
    36,494             36,494        
Accrued compensation
    76,858             76,858        
Other
    26,365             26,365        
 
Total current liabilities
    852,465             852,159       306  
 
Long-term Debt
    3,855,257             3,855,257        
 
Long-term Debt Payable to Affiliated Trusts
    309,279             309,279        
 
Deferred Credits and Other Liabilities:
                               
Accumulated deferred income taxes
    1,885,120             1,885,120        
Deferred credits related to income taxes
    148,395             148,395        
Accumulated deferred investment tax credits
    205,353             205,353        
Employee benefit obligations
    194,837             194,837        
Deferred capacity revenues
    25,056             25,056        
Asset retirement obligations
    383,621             383,621        
Asset retirement obligation regulatory liability
    159,230             159,230        
Other cost of removal obligations
    597,147             597,147        
Miscellaneous regulatory liabilities
    55,459             55,459        
Other
    36,989             36,989        
 
Total deferred credits and other liabilities
    3,691,207             3,691,207        
 
Total Liabilities
    8,708,208             8,707,902       306  
 
Cumulative Preferred Stock
    465,047             465,047        
 
Common Stockholder’s Equity
    3,610,204       (10,599 )     3,610,204       10,599  
 
Total Liabilities and Stockholder’s Equity
  $ 12,783,459     $ (10,599 )   $ 12,783,153     $ 10,905  
 

A-20


Table of Contents

Notes to ALABAMA’s Consolidating
Financial Statements

(A)   The notes to ALABAMA’s financial statements included in the Form 10-K on pages II-100 through II-118 are herein incorporated by reference as part of exhibit number A-2 and are an integral part of the financial statements.
 
(B)   Upon the prospective adoption of FIN 46R at March 31, 2004, these trusts were deconsolidated because the Company does not meet the definition of primary beneficiary. See Note 1 to ALABAMA’s financial statements under “Variable Interest Entities” in item 8 of the Form 10-K for additional information.

A-21


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
                                                                         
   
    GEORGIA             GEORGIA                     GEORGIA     GEORGIA     GEORGIA     GEORGIA  
    Consolidated     Eliminations     CORPORATE     PIEDMONT     ATV     TRUST IV     TRUST V     TRUST VI     TRUST VII  
   
                                            (Note B)     (Note B)     (Note B)     (Note B)  
Operating Revenues:
                                                                       
Retail sales
  $ 4,776,985     $     $ 4,776,985     $     $     $     $     $     $  
Sales for resale —
                                                                       
Non-affiliates
    246,545             246,545                                      
Affiliates
    166,245             166,245                                      
Other revenues
    181,033       (838 )     181,033       838                                
 
Total operating revenues
    5,370,808       (838 )     5,370,808       838                                
 
Operating Expenses:
                                                                       
Fuel
    1,232,496             1,232,496                                      
Purchased power —
                                                                       
Non-affiliates
    304,978             304,978                                      
Affiliates
    671,098             671,098                                      
Other operations
    902,167       (838 )     903,005                                      
Maintenance
    498,114             498,114                                      
Depreciation and amortization
    275,488             275,488                                      
Taxes other than income taxes
    227,806             227,506       300                                
 
Total operating expenses
    4,112,147       (838 )     4,112,685       300                                
 
Operating Income
    1,258,661             1,258,123       538                                
Other Income and (Expense):
                                                                       
Allowance for equity funds used during construction
    26,659             26,659                                      
Interest income
    6,657       (17,283 )     6,893       718             2,158       8,080       3,769       2,322  
Interest expense, net of amounts capitalized
    (182,370 )     17,283       (199,417 )     (236 )                              
Interest expense to affiliate trusts
    (44,565 )           (44,565 )                                    
Distributions on mandatorily redeemable preferred securities
    (15,839 )                             (2,093 )     (7,838 )     (3,656 )     (2,252 )
Other income (expense), net
    (11,362 )     (1,645 )     (9,651 ) (B)           (66 )                        
 
Total other income and (expense)
    (220,820 )     (1,645 )     (220,081 )     482       (66 )     65       242       113       70  
 
Earnings Before Income Taxes
    1,037,841       (1,645 )     1,038,042       1,020       (66 )     65       242       113       70  
Income taxes
    379,170             379,371       (201 )                              
 
Net Income
    658,671       (1,645 )     658,671       1,221       (66 )     65       242       113       70  
Dividends on Preferred Stock
    670             670                                      
 
Net Income After Dividends on Preferred Stock
  $ 658,001     $ (1,645 )   $ 658,001     $ 1,221     $ (66 )   $ 65     $ 242     $ 113     $ 70  
 

A-22


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                         
   
    GEORGIA             GEORGIA                     GEORGIA     GEORGIA     GEORGIA     GEORGIA  
    Consolidated     Eliminations     CORPORATE     PIEDMONT     ATV     TRUST IV     TRUST V     TRUST VI     TRUST VII  
   
                                            (Note B)     (Note B)     (Note B)     (Note B)  
Operating Activities:
                                                                       
Net income
  $ 658,671     $ (1,645 )   $ 658,671     $ $1,221     $ (66 )   $ 65     $ 242     $ 113     $ 70  
Adjustments to reconcile net income to net cash provided from operating activities —
                                                                       
Depreciation and amortization
    361,958             361,958                                      
Deferred income taxes and investment tax credits, net
    251,623             251,583       40                                
Deferred expenses - affiliates
    (10,563 )           (10,563 )                                    
Allowance for equity funds used during construction
    (26,659 )           (26,659 )                                      
Pension, postretirement, and other employee benefits
    2,636             2,636                                      
Tax benefit of stock options
    9,701             9,701                                      
Hedge settlements
    (12,394 )           (12,394 )                                    
Other, net
    (27,624 )     1,645       (29,269 )                                    
Changes in certain current assets and liabilities —
                                                                       
Receivables, net
    (225,454 )     1,645       (220,619 )           (82 )     (65 )     (242 )     (3,769 )     (2,322 )
Fossil fuel stock
    (46,730 )           (46,730 )                                    
Materials and supplies
    618             618                                      
Other current assets
    (9,314 )           (9,006 )           (308 )                        
Accounts payable
    132,001       (1,645 )     127,737             1                   3,656       2,252  
Accrued taxes
    (64,563 )           (63,721 )     (842 )                              
Accrued compensation
    (6,664 )           (6,664 )                                    
Other current liabilities
    5,836             5,836                                      
 
Net cash provided from (used for) operating activities
    993,079             993,115       419       (455 )                        
 
Investing Activities:
                                                                       
Gross property additions
    (786,314 )           (786,314 )                                    
Purchase of property from affiliates
    (339,750 )           (339,750 )                                    
Cost of removal net of salvage
    (21,756 )           (21,756 )                                    
Change in construction payables, net of joint owner portion
    413             413                                      
Other
    31,503             31,032             471                          
 
Net cash provided from (used for) investing activities
    (1,115,904 )           (1,116,375 )           471                          
 
Financing Activities:
                                                                       
Increase (decrease) in notes payable, net
    70,956             70,956                                      
Proceeds —
                                                                       
Senior notes
    600,000             600,000                                      
Mandatorily redeemable preferred securities
    200,000             200,000                                      
Capital contributions from parent company
    260,068             260,068                                      
Redemptions —
                                                                       
Other long-term debt
                (420 )     420                                
Senior notes
    (200,000 )           (200,000 )                                    
Mandatorily redeemable preferred securities
    (200,000 )           (200,000 )                                    
Payment of preferred stock dividends
    (654 )           (654 )                                    
Payment of common stock dividends
    (565,500 )           (565,500 )                                    
Other
    (17,247 )           (16,408 )     (839 )                              
 
Net cash provided from (used for) financing activities
    147,623             148,042       (419 )                              
 
Net Change in Cash and Cash Equivalents
    24,798             24,782             16                          
Cash and Cash Equivalents at Beginning of Period
    8,699             8,699                                      
 
Cash and Cash Equivalents at End of Period
  $ 33,497     $     $ 33,481     $     $ 16     $     $     $     $  
 

A-23


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                         
   
    GEORGIA             GEORGIA              
    Consolidated     Eliminations     CORPORATE     PIEDMONT     ATV  
 
Current Assets:
                                       
Cash and cash equivalents
  $ 33,497     $     $ 33,481     $     $ 16  
Receivables —
                                       
Customer accounts receivable
    317,937             317,937              
Unbilled revenues
    140,027             140,027              
Under recovered regulatory clause revenues
    345,542             345,542              
Other accounts and notes receivable
    94,377             94,295             82  
Affiliated companies
    17,042             17,042              
Accumulated provision for uncollectible accounts
    (7,100 )           (7,100 )            
Fossil fuel stock, at average cost
    184,267             184,267              
Vacation pay
    57,372             57,372              
Materials and supplies, at average cost
    270,422             270,422              
Prepaid expenses
    32,696             32,696              
Other
    25,260             24,952             308  
 
Total current assets
    1,511,339             1,510,933             406  
 
Property, Plant, and Equipment:
                                       
In service
    18,681,533             18,664,190       17,343        
Less accumulated provision for depreciation
    7,217,607             7,217,607              
 
 
    11,463,926             11,446,583       17,343        
Nuclear fuel, at amortized cost
    124,745             124,745              
Construction work in progress
    766,140             766,140              
 
Total property, plant, and equipment
    12,354,811             12,337,468       17,343        
 
Other Property and Investments:
                                       
Equity investments in subsidiaries
    66,192       (5,743 )     71,935  (C)            
Nuclear decommissioning trusts, at fair value
    459,194             459,194              
Other
    66,775       (13,254 )     78,679             1,350  
 
Total other property and investments
    592,161       (18,997 )     609,808             1,350  
 
Deferred Charges and Other Assets:
                                       
Deferred charges related to income taxes
    505,664             505,094       570        
Prepaid pension costs
    450,270             450,270              
Unamortized debt issuance expense
    77,925             77,925              
Unamortized loss on reacquired debt
    176,825             176,825              
Other regulatory assets
    72,639             72,639              
Other
    80,704             80,704              
 
Total deferred charges and other assets
    1,364,027             1,363,457       570        
 
Total Assets
  $ 15,822,338     $ (18,997 )   $ 15,821,666     $ 17,913     $ 1,756  
 

A-24


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                         
   
    GEORGIA             GEORGIA              
    Consolidated     Eliminations     CORPORATE     PIEDMONT     ATV  
 
Current Liabilities:
                                       
Securities due within one year
  $ 452,498     $     $ 452,498     $     $  
Notes payable
    208,233             208,233              
Accounts payable —
                                       
Affiliated
    194,253             194,253              
Other
    310,763             310,762             1  
Customer deposits
    115,661             115,661              
Accrued taxes —
                                       
Income taxes
    78,269             77,598       671        
Other
    129,520             129,520              
Accrued interest
    74,529             74,529              
Accrued vacation pay
    44,894             44,894              
Accrued compensation
    127,340             127,340              
Other
    75,699             75,699              
 
Total current liabilities
    1,811,659             1,810,987       671       1  
 
Long-term Debt
    3,709,852       (11,499 )     3,709,852       11,499        
 
Long-term Debt Payable to Affiliated Trusts
    969,073             969,073                
 
Deferred Credits and Other Liabilities:
                                       
Accumulated deferred income taxes
    2,556,040             2,556,040              
Deferred credits related to income taxes
    170,973             170,973              
Accumulated deferred investment tax credits
    300,018             300,018              
Employee benefit obligations
    331,002             331,002              
Asset retirement obligations
    504,515             504,515              
Other cost of removal obligations
    411,692             411,692              
Miscellaneous regulatory liabilities
    92,611             92,611              
Other
    59,733             59,733              
 
Total deferred credits and other liabilities
    4,426,584             4,426,584              
 
Total Liabilities
    10,917,168       (11,499 )     10,916,496       12,170       1  
 
Preferred Stock
    14,609             14,609              
 
Common Stockholder’s Equity
    4,890,561       (7,498 )     4,890,561       5,743       1,755  
 
Total Liabilities and Stockholder’s Equity
  $ 15,822,338     $ (18,997 )   $ 15,821,666     $ 17,913     $ 1,756  
 

A-25


Table of Contents

Notes to GEORGIA’s Consolidating
Financial Statements

     
(A)
  The notes to GEORGIA’s financial statements included in the Form 10-K on pages II-149 through II-173 are herein incorporated by reference as part of exhibit number A-3 and are an integral part of the financial statements.
 
   
(B)
  Upon the prospective adoption of FIN 46R at March 31, 2004, these trusts were deconsolidated because the Company does not meet the definition of primary beneficiary. See Note 1 to GEORGIA’s financial statements under “Variable Interest Entities” in item 8 of the Form 10-K for additional information.

A-26


Table of Contents

GULF POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
                                         
   
    GULF             GULF     GULF     GULF  
    Consolidated     Eliminations     CORPORATE     TRUST III     TRUST IV  
   
                            (Note B)     (Note B)  
Operating Revenues:
                                       
Retail sales
  $ 736,870     $     $ 736,870     $     $  
Sales for resale —
                                       
Non-affiliates
    73,537             73,537              
Affiliates
    110,264             110,264              
Other revenues
    39,460             39,460              
 
Total operating revenues
    960,131             960,131              
 
Operating Expenses:
                                       
Fuel
    367,155             367,155              
Purchased power —
                                       
Non-affiliates
    30,720             30,720              
Affiliates
    35,177             35,177              
Other operations
    160,635             160,635              
Maintenance
    69,077             69,077              
Depreciation and amortization
    82,799             82,799              
Taxes other than income taxes
    69,856             69,856              
 
Total operating expenses
    815,419             815,419              
 
Operating Income
    144,712             144,712              
Other Income and (Expense):
                                       
Allowance for equity funds used during construction
    1,855             1,855              
Interest income
    1,224       (1,147 )     1,224       570       577  
Interest expense, net of amounts capitalized
    (31,482 )     1,147       (32,629 )            
Interest expense to affiliate trusts
    (3,443 )           (3,443 )            
Distributions on mandatorily redeemable preferred securities
    (1,113 )                 (553 )     (560 )
Other income (expense), net
    (3,618 )     (34 )     (3,584 )            
 
Total other income and (expense)
    (36,577 )     (34 )     (36,577 )     17       17  
 
Earnings Before Income Taxes
    108,135       (34 )     108,135       17       17  
Income taxes
    39,695             39,695              
 
Net Income
    68,440       (34 )     68,440       17       17  
Dividends on Preferred Stock
    217             217              
 
Net Income After Dividends on Preferred Stock
  $ 68,223     $ (34 )   $ 68,223     $ 17     $ 17  
 

A-27


Table of Contents

GULF POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                         
   
    GULF             GULF     GULF     GULF  
    Consolidated     Eliminations     CORPORATE     TRUST III     TRUST IV  
   
                            (Note B)     (Note B)  
Operating Activities:
                                       
Net income
  $ 68,440     $ (34 )   $ 68,440     $ 17     $ 17  
Adjustments to reconcile net income to net cash provided from operating activities —
                                       
Depreciation and amortization
    88,772             88,772              
Deferred income taxes
    46,255             46,255              
Pension, postretirement, and other employee benefits
    (895 )           (895 )            
Tax benefit of stock options
    3,063             3,063              
Other, net
    10,101       34       10,067              
Changes in certain current assets and liabilities —
                                       
Receivables, net
    1,741       (52 )     1,845             (52 )
Fossil fuel stock
    2,355             2,355              
Materials and supplies
    (831 )           (831 )            
Other current assets
    (29,622 )           (29,622 )            
Accounts payable
    (51,876 )           (51,876 )            
Accrued taxes
    629             629              
Accrued compensation
    1,946             1,946              
Other current liabilities
    3,111       52       3,007             52  
 
Net cash provided from operating activities
    143,189             143,155       17       17  
 
Investing Activities:
                                       
Gross property additions
    (161,205 )           (161,205 )            
Cost of removal net of salvage
    (10,259 )           (10,259 )            
Other
    36,391             36,425       (17 )     (17 )
 
Net cash used for investing activities
    (135,073 )           (135,039 )     (17 )     (17 )
 
Financing Activities:
                                       
Increase (decrease) in notes payable, net
    12,334             12,334              
Proceeds —
                                       
Senior notes
    110,000             110,000              
Other long-term debt
    100,000             100,000              
Capital contributions from parent company
    29,481             29,481              
Redemptions — Senior notes
    (125,000 )           (125,000 )            
Payment of preferred stock dividends
    (217 )           (217 )            
Payment of common stock dividends
    (70,000 )           (70,000 )            
Other
    (2,433 )           (2,433 )            
 
Net cash provided from financing activities
    54,165             54,165              
 
Net Change in Cash and Cash Equivalents
    62,281             62,281              
Cash and Cash Equivalents at Beginning of Period
    2,548             2,548              
 
Cash and Cash Equivalents at End of Period
  $ 64,829     $     $ 64,829     $     $  
 

A-28


Table of Contents

Notes to GULF’s Consolidating
Financial Statements

     
(A)
  The notes to GULF’s financial statements included in the Form 10-K on pages II-202 through II-219 are herein incorporated by reference as part of exhibit number A-4 and are an integral part of the financial statements.
 
(B)
  Upon the prospective adoption of FIN 46R at March 31, 2004, these trusts were deconsolidated because the Company does not meet the definition of primary beneficiary. See Note 1 to GULF’s financial statements under “Variable Interest Entities” in item 8 of the Form 10-K for additional information.

A-29


Table of Contents

MISSISSIPPI POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                 
   
    MISSISSIPPI             MISSISSIPPI     MISSISSIPPI  
    Consolidated     Eliminations     CORPORATE     TRUST II  
 
                            (Note B)  
Operating Revenues:
                               
Retail sales
  $ 584,313     $     $ 584,313     $  
Sales for resale —
                               
Non-affiliates
    265,863             265,863        
Affiliates
    44,371             44,371        
Other revenues
    15,779             15,779        
 
Total operating revenues
    910,326             910,326        
 
Operating Expenses:
                               
Fuel
    320,997             320,997        
Purchased power —
                               
Non-affiliates
    33,528             33,528        
Affiliates
    73,235             73,235        
Other operations — Other
    164,362             164,362        
Maintenance
    77,001             77,001        
Depreciation and amortization
    39,390             39,390        
Taxes other than income taxes
    55,572             55,572        
 
Total operating expenses
    764,085             764,085        
 
Operating Income
    146,241             146,241        
Other Income and (Expense):
                               
Interest income
    777       (649 )     777       649  
Interest expense
    (11,776 )     649       (12,425 )      
Interest expense to affiliate trust
    (1,948 )           (1,948 )      
Distributions on mandatorily redeemable preferred securities
    (630 )                 (630 )
Other income (expense), net
    (1,365 )     (19 )     (1,346 )      
 
Total other income and (expense)
    (14,942 )     (19 )     (14,942 )     19  
 
Earnings Before Income Taxes
    131,299       (19 )     131,299       19  
Income taxes
    50,666             50,666        
 
Net Income
    80,633       (19 )     80,633       19  
Dividends on Preferred Stock
    3,832             3,832        
 
Net Income After Dividends on Preferred Stock
  $ 76,801     $ (19 )   $ 76,801     $ 19  
 

A-30


Table of Contents

MISSISSIPPI POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                 
   
    MISSISSIPPI             MISSISSIPPI     MISSISSIPPI  
    Consolidated     Eliminations     CORPORATE     TRUST II  
                            (Note B)  
Operating Activities:
                               
Net income
  $ 80,633     $ (19 )   $ 80,633     $ 19  
Adjustments to reconcile net income to net cash provided from operating
activities —
                               
Depreciation and amortization
    60,260             60,260        
Deferred income taxes and investment tax credits, net
    44,424             44,424        
Plant Daniel capacity
    (16,508 )           (16,508 )      
Pension, postretirement, and other employee benefits
    (1,084 )           (1,084 )      
Tax benefit of stock options
    1,532             1,532        
Other, net
    (1,700 )     19       (1,719 )      
Changes in certain current assets and liabilities —
                               
Receivables, net
    (26,373 )           (26,373 )      
Fossil fuel stock
    5,528             5,528        
Materials and supplies
    (3,768 )           (3,768 )      
Other current assets
    1,401             1,401        
Accounts payable
    (5,555 )           (5,555 )      
Accrued taxes
    151             151        
Accrued compensation
    82             82        
Over recovered regulatory clause revenues
    (25,761 )           (25,761 )      
Other current liabilities
    6,052             6,052        
 
Net cash provided from (used for) operating activities
    119,314             119,295       19  
 
Investing Activities:
                               
Gross property additions
    (70,063 )           (70,063 )      
Cost of removal net of salvage
    (3,189 )           (3,189 )      
Other
    (2,826 )           (2,807 )     (19 )
 
Net cash provided from (used for) investing activities
    (76,078 )           (76,059 )     (19 )
  Financing Activities:
Financing Activities:
                               
Proceeds —
                               
Senior notes
    40,000             40,000        
Preferred stock
    30,000             30,000        
Capital contributions from parent company
    1,791             1,791        
Redemptions —
                               
Senior notes
    (80,000 )           (80,000 )      
Preferred stock
    (28,388 )           (28,388 )      
Payment of preferred stock dividends
    (1,829 )           (1,829 )      
Payment of common stock dividends
    (66,200 )           (66,200 )      
Other
    (785 )           (785 )      
 
Net cash provided from (used for) financing activities
    (105,411 )           (105,411 )      
 
Net Change in Cash and Cash Equivalents
    (62,175 )           (62,175 )      
Cash and Cash Equivalents at Beginning of Period
    69,120             69,120        
 
Cash and Cash Equivalents at End of Period
  $ 6,945     $     $ 6,945     $  
 

A-31


Table of Contents

Notes to MISSISSIPPI’s Consolidating
Financial Statements

(A)   The notes to MISSISSIPPI’s financial statements included in the Form 10-K on pages II-247 through II-265 are herein incorporated by reference as part of exhibit number A-5 and are an integral part of the financial statements.
 
(B)   Upon the prospective adoption of FIN 46R at March 31, 2004, these trusts were deconsolidated because the Company does not meet the definition of primary beneficiary. See Note 1 to MISSISSIPPI’s financial statements under “Variable Interest Entities” in item 8 of the Form 10-K for additional information.

A-32


Table of Contents

SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                 
   
    SAVANNAH             SAVANNAH     SAVANNAH  
    Consolidated     Eliminations     CORPORATE     TRUST I  
                            (Note B)  
Operating Revenues:
                               
Retail sales
  $ 341,766     $     $ 341,766     $  
Sales for resale —
                               
Non-affiliates
    5,035             5,035        
Affiliates
    6,130             6,130        
Other revenues
    4,029             4,029        
 
Total operating revenues
    356,960             356,960        
 
Operating Expenses:
                               
Fuel
    55,721             55,721        
Purchased power —
                               
Non-affiliates
    11,413             11,413        
Affiliates
    114,261             114,261        
Other operations
    61,134             61,134        
Maintenance
    24,831             24,831        
Depreciation and amortization
    21,252             21,252        
Taxes other than income taxes
    15,245             15,245        
 
Total operating expenses
    303,857             303,857        
 
Operating Income
    53,103             53,103        
Other Income and (Expense):
                               
Interest income
    208       (118 )     208       118  
Interest expense, net of amounts capitalized
    (12,047 )     118       (12,165 )      
Distributions on mandatorily redeemable preferred securities
    (109 )                 (109 )
Other income (expense), net
    (1,045 )     (9 )     (1,036 )      
 
Total other income and (expense)
    (12,993 )     (9 )     (12,993 )     9  
 
Earnings Before Income Taxes
    40,110       (9 )     40,110       9  
Income taxes
    14,378             14,378        
 
Net Income
    25,732       (9 )     25,732       9  
Dividends on Preferred Stock
    1,500             1,500        
 
Net Income After Dividends on Preferred Stock
  $ 24,232     $ (9 )   $ 24,232     $ 9  
 

A-33


Table of Contents

SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                 
 
    SAVANNAH             SAVANNAH     SAVANNAH  
    Consolidated     Eliminations     CORPORATE     TRUST I  
                            (Note B)  
Operating Activities:
                               
Net income
  $ 25,732     $ (9 )   $ 25,732     $ 9  
Adjustments to reconcile net income to net cash provided from operating
activities —
                               
Depreciation and amortization
    23,710             23,710        
Deferred income taxes and investment tax credits, net
    13,441             13,441        
Allowance for equity funds used during construction
    (2,379 )           (2,379 )      
Pension, postretirement, and other employee benefits
    6,114             6,114        
Tax benefit of stock options
    861             861        
Other, net
    (7,226 )     9       (7,235 )      
Changes in certain current assets and liabilities —
                               
Receivables, net
    (26,371 )           (26,371 )      
Fossil fuel stock
    (1,938 )           (1,938 )      
Materials and supplies
    (842 )           (842 )      
Other current assets
    (5,324 )           (5,324 )      
Accounts payable
    5,035             5,035        
Accrued taxes
    3,352             3,352        
Accrued compensation
    (40 )           (40 )      
Other current liabilities
    (911 )           (911 )      
 
Net cash provided from operating activities
    33,214             33,205       9  
 
Investing Activities:
                               
Gross property additions
    (51,301 )           (51,301 )      
Purchase of property from affiliates
    (74,832 )           (74,832 )      
Other
    931             940       (9 )
 
Net cash used for investing activities
    (125,202 )           (125,193 )     (9 )
 
Financing Activities:
                               
Increase (decrease) in notes payable, net
    20,567             20,567        
Proceeds —
                               
Senior notes
    35,000             35,000        
Other long-term debt
    10,376             10,376        
Preferred stock
    45,000             45,000        
Capital contributions from parent company
    47,255             47,255        
Redemptions —
                               
Other long-term debt
    (30,000 )           (30,000 )      
Mandatorily redeemable preferred securities
    (40,000 )           (40,000 )      
Payment of preferred stock dividends
    (825 )           (825 )      
Payment of common stock dividends
    (23,200 )           (23,200 )      
Other
    (1,266 )           (1,266 )      
 
Net cash provided from financing activities
    62,907             62,907        
 
Net Change in Cash and Cash Equivalents
    (29,081 )           (29,081 )      
Cash and Cash Equivalents at Beginning of Period
    37,943             37,943        
 
Cash and Cash Equivalents at End of Period
  $ 8,862     $     $ 8,862     $  
 

A-34


Table of Contents

Notes to SAVANNAH’s Consolidating
Financial Statements

(A)   The notes to SAVANNAH’s financial statements included in the Form 10-K on pages II-293 through II-313 are herein incorporated by reference as part of exhibit number A-6 and are an integral part of the financial statements.
 
(B)   In January 2004, the Company redeemed all $40 million of its outstanding mandatorily redeemable preferred securities and dissolved SAVANNAH TRUST 1.

A-35


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                         
 
    SOUTHERN             SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     ST. LUCIE  
    POWER             POWER     COMPANY     COMPANY     COMPANY     COMPANY     COMPANY     HOLDINGS  
    Consolidated     Eliminations     CORPORATE     FLORIDA     JET PORT     KLONDIKE     McLEOD     CHEROKEE     CANA LLC  
 
Operating Revenues:
                                                                       
Sales for resale —
                                                                       
Non-affiliates
  $ 266,463     $     $ 225,823     $ 40,640     $     $     $     $     $  
Affiliates
    425,065             425,065                                      
Other revenues
    9,783             9,688       95                                
 
Total operating revenues
    701,311             660,576       40,735                                
 
Operating Expenses:
                                                                       
Fuel
    127,103             127,103                                      
Purchased power —
                                                                       
Non-affiliates
    76,652             76,652                                      
Affiliates
    111,804             111,805       (1 )                              
Other operations
    58,111             51,994       6,117                                
Maintenance
    17,084             14,477       2,606                         1        
Depreciation and amortization
    51,161             46,713       4,448                                
Taxes other than income taxes
    11,273             8,752       2,451             3       67              
 
Total operating expenses
    453,188             437,496       15,621             3       67       1        
 
Operating Income
    248,123             223,080       25,114             (3 )     (67 )     (1 )      
Other Income and (Expense):
                                                                       
Equity in earnings of subsidiaries
          (15,312 )     15,312                                      
Interest expense, net of amounts capitalized
    (66,088 )           (66,088 )                                    
Other income (expense), net
    2,408             2,346       61                               1  
 
Total other income and (expense)
    (63,680 )     (15,312 )     (48,430 )     61                               1  
 
Earnings Before Income Taxes
    184,443       (15,312 )     174,650       25,175             (3 )     (67 )     (1 )     1  
Income taxes
    72,935             63,142       9,793                                
 
Net Income
  $ 111,508     $ (15,312 )   $ 111,508     $ 15,382     $     $ (3 )   $ (67 )   $ (1 )   $ 1  
 

A-36


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                         
   
    SOUTHERN             SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     ST. LUCIE  
    POWER             POWER     COMPANY     COMPANY     COMPANY     COMPANY     COMPANY     HOLDINGS  
    Consolidated     Eliminations     CORPORATE     FLORIDA     JET PORT     KLONDIKE     McLEOD     CHEROKEE     CANA LLC  
 
Operating Activities:
                                                                       
Net income
  $ 111,508     $ (15,312 )   $ 111,508     $ 15,382     $     $ (3 )   $ (67 )   $ (1 )   $ 1  
Adjustments to reconcile net income to net cash provided from operating activities —
                                                                       
Depreciation and amortization
    65,838             61,390       4,448                                
Deferred income taxes and investment tax credits, net
    23,510             21,367       2,143                                
Deferred revenues
    10,064             10,064                                      
Equity in earnings of subsidiaries
          15,312       (15,312 )                                    
Tax benefit of stock options
    415             415                                      
Other, net
    9,957             12,837       (2,880 )                              
Changes in certain current assets and liabilities —
                                                                       
Receivables, net
    (14,009 )           (14,420 )     411                                
Fossil fuel stock
    2,894             2,894                                      
Materials and supplies
    (1,715 )           (1,432 )     (283 )                              
Other current assets
    4,144             4,144                                      
Accounts payable
    (13,844 )           (13,833 )     (11 )                              
Accrued taxes
    32,330             22,807       9,523                                
Accrued interest
    (1,386 )           (1,386 )                                    
Other current liabilities
    (306 )           (306 )                                    
 
Net cash provided from (used for) operating activities
    229,400             200,737       28,733             (3 )     (67 )     (1 )     1  
 
Investing Activities:
                                                                       
Gross property additions
    (115,606 )           (110,571 )     (777 )           394             4       (4,656 )
Investment in subsidiaries
          4,723       (4,723 )                                    
Return of capital from subsidiaries
          (12,790 )     12,790                                      
Sale of property to affiliates
    414,582             414,582                                      
Change in construction payables, net
    (14,349 )           (14,349 )                                    
Other
    (10,043 )           (10,043 )                                    
 
Net cash provided from (used for) investing activities
    274,584       (8,067 )     287,686       (777 )           394             4       (4,656 )
 
Financing Activities:
                                                                       
Increase (decrease) in notes payable, net
    (114,349 )           (114,349 )                                    
Proceeds —
                                                                       
Capital contributions from parent company
    2,808       (4,723 )     2,808                         67             4,656  
Redemptions —
                                                                       
Senior notes
    (50,000 )           (50,000 )                                    
Capital distributions to parent company
    (113,000 )     12,790       (113,000 )     (12,396 )           (391 )           (3 )      
Payment of common stock dividends
    (207,000 )           (200,201 )     (6,799 )                                
 
Net cash provided from (used for) financing activities
    (481,541 )     8,067       (474,742 )     (19,195 )           (391 )     67       (3 )     4,656  
 
Net Change in Cash and Cash Equivalents
    22,443             13,681       8,761                               1  
Cash and Cash Equivalents at Beginning of Period
    2,798                   2,794       1       1       1       1        
 
Cash and Cash Equivalents at End of Period
  $ 25,241     $     $ 13,681     $ 11,555     $ 1     $ 1     $ 1     $ 1     $ 1  
 

A-37


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                         
   
    SOUTHERN             SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     ST. LUCIE  
    POWER             POWER     COMPANY     COMPANY     COMPANY     COMPANY     COMPANY     HOLDINGS  
    Consolidated     Eliminations     CORPORATE     FLORIDA     JET PORT     KLONDIKE     McLEOD     CHEROKEE     CANA LLC  
 
Current Assets:
                                                                       
Cash and cash equivalents
  $ 25,241     $     $ 13,681     $ 11,555     $ 1     $ 1     $ 1     $ 1     $ 1  
Receivables —
                                                                       
Customer accounts receivable
    12,865             9,904       2,961                                
Other accounts receivable
    893             878       15                                
Accumulated provision for uncollectible accounts
    (350 )           (350 )                                    
Affiliated companies
    25,423             25,423                                      
Fossil fuel stock, at average cost
    2,904             2,904                                      
Materials and supplies, at average cost
    9,839             9,049       790                                
Prepaid income taxes
    4,619             4,619                                      
Prepaid expenses
    8,085             4,711       3,374                                
Other
    112             112                                      
 
Total current assets
    89,631             70,931       18,695       1       1       1       1       1  
 
Property, Plant, and Equipment:
                                                                       
In service
    1,821,434             1,665,736       155,698                                
Less accumulated provision for depreciation
    111,200             105,656       5,544                                
 
 
    1,710,234             1,560,080       150,154                                
Construction work in progress
    200,903             187,493       316       3,714       219       4,505             4,656  
 
Total property, plant, and equipment
    1,911,137             1,747,573       150,470       3,714       219       4,505             4,656  
 
Other Property and Investments
          (164,567 )     164,567                                      
 
Deferred Charges and Other Assets:
                                                                       
Unamortized debt issuance expense
    14,078             14,078                                      
Prepaid long-term service agreements
    34,800             34,800                                      
Other—
                                                                       
Affiliated
    6,455             6,455                                      
Other
    10,912             10,040       839                         33        
 
Total deferred charges and other assets
    66,245             65,373       839                         33        
 
Total Assets
  $ 2,067,013     $ (164,567 )   $ 2,048,444     $ 170,004     $ 3,715     $ 220     $ 4,506     $ 34     $ 4,657  
 

A-38


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (Note A)
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                         
 
    SOUTHERN             SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     SOUTHERN     ST. LUCIE  
    POWER             POWER     COMPANY     COMPANY     COMPANY     COMPANY     COMPANY     HOLDINGS  
    Consolidated     Eliminations     CORPORATE     FLORIDA     JET PORT     KLONDIKE     McLEOD     CHEROKEE     CANA LLC  
 
Current Liabilities:
                                                                       
Securities due within one year
  $ 200     $     $ 200     $     $     $     $     $     $  
Accounts payable —
                                                                       
Affiliated
    19,265             18,221       1,043                         1        
Other
    11,024             8,019       3,005                                
Accrued taxes — Other than income
    4,104             (8,273 )     12,377                                
Accrued interest
    28,626             28,626                                      
Other
    83             83                                      
 
Total current liabilities
    63,302             46,876       16,425                         1        
 
Long-term Debt
    1,099,435             1,099,435                                      
 
Deferred Credits and Other Liabilities:
                                                                       
Accumulated deferred income taxes
    40,212             38,069       2,143                                
Deferred capacity revenues — Affiliated
    39,118             39,118                                      
Other —
                                                                       
Affiliated
    13,333             13,333                                      
Other
    2             2                                      
 
Total deferred credits and other liabilities
    92,665             90,522       2,143                                
 
Total Liabilities
    1,255,402             1,236,833       18,568                         1        
 
Common Stockholder’s Equity:
                                                                       
Common stock, par value $0.01 per share —
                                                     
Authorized - 1,000,000 shares
                                                                       
Outstanding - 1,000 shares
                                                                       
Paid-in capital
    740,535       (151,558 )     740,535       138,307       3,716       228       4,616       35       4,656  
Retained earnings
    122,134       (13,009 )     122,134       13,129       (1 )     (8 )     (110 )     (2 )     1  
Accumulated other comprehensive income (loss)
    (51,058 )           (51,058 )                                    
 
Total common stockholder’s equity
    811,611       (164,567 )     811,611       151,436       3,715       220       4,506       33       4,657  
 
Total Liabilities and Stockholder’s Equity
  $ 2,067,013     $ (164,567 )   $ 2,048,444     $ 170,004     $ 3,715     $ 220     $ 4,506     $ 34     $ 4,657  
 

A-39


Table of Contents

Notes to SOUTHERN POWER’s Consolidating
Financial Statements

(A)   The notes to SOUTHERN POWER’s financial statements included in the Form 10-K on pages II-335 through II-343 are herein incorporated by reference as part of exhibit number A-7 and are an integral part of the financial statements.

A-40


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                                                 
 
    SOUTHERN                     SE FINANCE                     ALABAMA                                  
    HOLDINGS             SOUTHERN     CAPITAL     CAPITAL             SYNFUEL     SYNFUEL             ELECTRO              
    Consolidated     Eliminations     HOLDINGS     CORP II     FUNDING     SCES LLC     ENERGY     SERVICES     ERA     TECHNOLOGIES     SCRS     SERC  
                            (Note A)                                                                  
Operating Revenues:
                                                                                               
Sales for resale — Affiliates
  $ 2,707     $     $     $     $     $ 226     $     $     $     $     $ 2,481     $  
Other revenues
    155,960                               37,843             106,248       8,327       15       3,527        
 
Total operating revenues
    158,667                               38,069             106,248       8,327       15       6,008        
 
Operating Expenses:
                                                                                               
Fuel
    81,719                                           81,719                          
Other operations
    87,756             48       3,411       68       37,421       39,561       227       111       1,587       5,322        
Maintenance
    4                                                             4        
Depreciation and amortization
    9,480                   1,285       301       2,002       1,896             2,631       1,232       133        
 
Total operating expenses
    178,959             48       4,696       369       39,423       41,457       81,946       2,742       2,819       5,459        
 
Operating Income
    (20,292 )           (48 )     (4,696 )     (369 )     (1,354 )     (41,457 )     24,302       5,585       (2,804 )     549        
Other Income and (Expense):
                                                                                               
Interest income
    66,971       (852 )     820       230       66,065       137       125       85       38       5       318        
Equity in earnings (losses) of subsidiaries
    (96,736 )     (142,640 )     142,640       (30,353 )     (207 )           (65,766 )                 (410 )            
Leveraged lease income
    70,170                   70,170                                                  
Interest expense, net of amounts capitalized
    (41,121 )     852       (188 )     (19,466 )     (21,200 )     (11 )     (440 )     (7 )     (108 )           (553 )      
Interest expense to affiliate trusts
    (33,589 )                       (33,589 )                                          
Distributions on mandatorily redeemable preferred securities
    (9,539 )                       (9,539 )                                          
Other income (expense), net
    1,667                   (229 )           2,080                         (155 )     (29 )      
 
Total other income and (expense)
    (42,177 )     (142,640 )     143,272       20,352       1,530       2,206       (66,081 )     78       (70 )     (560 )     (264 )      
 
Earnings Before Income Taxes
    (62,469 )     (142,640 )     143,224       15,656       1,161       852       (107,538 )     24,380       5,515       (3,364 )     285        
Income taxes
    (205,507 )           186       (50,278 )     406       329       (166,657 )     9,551       2,024       (1,180 )     112        
 
Consolidated Net Income
  $ 143,038     $ (142,640 )   $ 143,038     $ 65,934     $ 755     $ 523     $ 59,119     $ 14,829     $ 3,491     $ (2,184 )   $ 173     $  
 


(A)   Excludes after-tax interest expense of $3,526(000) recorded at Southern Company.

A-41


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                                                 
 
    SOUTHERN                     SE FINANCE                     ALABAMA                                  
    HOLDINGS             SOUTHERN     CAPITAL     CAPITAL             SYNFUEL     SYNFUEL             ELECTRO              
    Consolidated     Eliminations     HOLDINGS     CORP II     FUNDING     SCES LLC     ENERGY     SERVICES     ERA     TECHNOLOGIES     SCRS     SERC  
                            (Note A)                                                                  
Operating Activities:
                                                                                               
Consolidated net income
  $ 143,038     $ (142,640 )   $ 143,038     $ 65,934     $ 755     $ 523     $ 59,119     $ 14,829     $ 3,491     $ (2,184 )   $ 173     $  
Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities —
                                                                                               
Depreciation and amortization
    8,248                   1,284       301       2,002       1,896             2,631             134        
Deferred income taxes and investment tax credits
    (70,886 )                 (1,453 )           1,774       (72,194 )                       987        
Equity in losses (earnings) of subsidiaries
    96,736       142,640       (142,640 )     30,353       207             65,766                   410              
Leveraged lease income
    (70,170 )                 (70,170 )                                                
Pension, postretirement, and other employee benefits
    305                               305                                      
Tax benefit of stock options
    45                               45                                      
Other, net
    5,672             (1,105 )     146       (1,669 )     7,727       3,423             (299 )     (2,551 )            
Changes in certain current assets and liabilities —
                                                                           
Receivables, net
    6,294       (7,238 )     8,574       13       45       3,201       6       2,327       174       283       (1,274 )     183  
Materials and supplies
    1,310                               1,310                                      
Other current assets
    15,868             (1,951 )     14,131             3,039       (1,934 )                 2,944       (361 )      
Accounts payable
    8,003       (403 )     9,534       (789 )     7       (3,451 )     5,110       (80 )     (251 )     (684 )     (772 )     (218 )
Accrued taxes
    (35,198 )           (7,214 )     (2,375 )     (4,579 )     (124 )     (21,248 )     (532 )     939       (82 )     17        
Accrued compensation
    413                               413                                      
Other current liabilities
    4,633       7,641       (7,590 )     888       (868 )     4,160       117       7       (78 )           356        
 
Net cash provided from (used for) operating activities
    114,311             646       37,962       (5,801 )     20,924       40,061       16,551       6,607       (1,864 )     (740 )     (35 )
 
Investing Activities:
                                                                                               
Gross property additions
    (71,606 )                 (67,987 )           21                   (203 )           (3,437 )      
Investment in subsidiaries
    (97,759 )     16,422       (16,421 )     (33,031 )     1,037             (65,766 )                              
Other
    (12,970 )     29,885     (28,600 )               2,634                         (10,706 )     (6,183 )      
 
Net cash provided from (used for) investing activities
    (182,335 )     46,307       (45,021 )     (101,018 )     1,037       2,655       (65,766 )           (203 )     (10,706 )     (9,620 )      
 
Financing Activities:
                                                                                               
Increase (decrease) in notes payable, net
    23,876       (29,885 )     23,876       5,600       4,000             20,023       2,700       (6,614 )           4,176        
Proceeds —
                                                                                               
Long-term debt
    56,400                   50,000                                           6,400        
Capital contributions from parent company
    14,576       (41,327 )     14,576     25,000             (47 )           1,026       159       14,105       1,084        
Redemptions — Long-term debt
    (31,499 )                 (27,193 )           (4,306 )                                    
Payment of common stock dividends
          24,905                   (5,905 )               (19,000 )                        
 
Net cash provided from (used for) financing activities
    63,353       (46,307 )     38,452       53,407       (1,905 )     (4,353 )     20,023       (15,274 )     (6,455 )     14,105       11,660        
 
Net Change in Cash and Cash Equivalents
    (4,671 )           (5,923 )     (9,649 )     (6,669 )     19,226       (5,682 )     1,277       (51 )     1,535       1,300       (35 )
Cash and Cash Equivalents at Beginning of Period
    115,418             26,168       37,459       7,246       3,651       34,161       3,445       1,878       1,204       151       55  
 
Cash and Cash Equivalents at End of Period
  $ 110,747     $     $ 20,245     $ 27,810     $ 577     $ 22,877     $ 28,479     $ 4,722     $ 1,827     $ 2,739     $ 1,451     $ 20  
 


(A)   Excludes after-tax interest expense of $3,526(000) recorded at Southern Company.

A-42


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                                                 
 
    SOUTHERN                     SE FINANCE                     ALABAMA                                  
    HOLDINGS             SOUTHERN     CAPITAL     CAPITAL             SYNFUEL     SYNFUEL             ELECTRO              
    Consolidated     Eliminations     HOLDINGS     CORP II     FUNDING     SCES LLC     ENERGY     SERVICES     ERA     TECHNOLOGIES     SCRS     SERC  
                            (Note A)                                                                  
Current Assets:
                                                                                               
Cash and cash equivalents
  $ 110,747     $     $ 20,245     $ 27,810     $ 577     $ 22,877     $ 28,479     $ 4,722     $ 1,827     $ 2,739     $ 1,451     $ 20  
Receivables —
                                                                                               
Customer accounts receivable
    11,372                         2       2,400             7,058       706             1,206        
Other accounts and notes receivable
    34,832             18       29,315       1       5,401       25       5       5             62        
Affiliated companies
    23,078       (7,331 )     7,336             21,131       1,702                               131       109  
Accumulated provision for uncollectible accounts
    (66 )                             (66 )                                    
Materials and supplies, at average cost
    517                               517                                      
Prepaid expenses
    (2,590 )           4,069       (9,391 )     (9,232 )     2,292       8,296                   808       568        
Other
    2,806                               2,806                                      
 
Total current assets
    180,696       (7,331 )     31,668       47,734       12,479       37,929       36,800       11,785       2,538       3,547       3,418       129  
 
Property, Plant, and Equipment:
                                                                                               
In service
    22,117                               2,050                   10,116             9,951        
Less accumulated depreciation
    4,875                               407                   4,336             132        
 
Total property, plant, and equipment
    17,242                               1,643                   5,780             9,819        
 
Other Property and Investments:
                                                                                               
Leveraged leases
    976,000                   976,000                                                  
Equity investments in subsidiaries
    65,382       (413,806 )     413,806       29,350       18,983             17,049                                
Other
    1,045,453       (28,808 )     28,812             974,044       22,997                         38,508       9,900        
 
Total other property and investments
    2,086,835       (442,614 )     442,618       1,005,350       993,027       22,997       17,049                   38,508       9,900        
 
Deferred Charges and Other Assets:
                                                                                               
Unamortized debt issuance expense
    11,897                   2,821       9,076                                            
Other
    187,143             (4 )     99,373             14,998       69,121             2,786       12       857        
 
Total deferred charges and other assets
    199,040             (4 )     102,194       9,076       14,998       69,121             2,786       12       857        
 
Total Assets
  $ 2,483,813     $ (449,945 )   $ 474,282     $ 1,155,278     $ 1,014,582     $ 77,567     $ 122,970     $ 11,785     $ 11,104     $ 42,067     $ 23,994     $ 129  
 

A-43


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)

                                                                                                 
 
    SOUTHERN                     SE FINANCE                     ALABAMA                                  
    HOLDINGS             SOUTHERN     CAPITAL     CAPITAL             SYNFUEL     SYNFUEL             ELECTRO              
    Consolidated     Eliminations     HOLDINGS     CORP II     FUNDING     SCES LLC     ENERGY     SERVICES     ERA     TECHNOLOGIES     SCRS     SERC  
                            (Note A)                                                                  
Current Liabilities:
                                                                                               
Securities due within one year
  $ 195,004     $     $     $ 190,817     $     $ 4,187     $     $     $     $     $     $  
Notes payable
    27,126       (6,700 )     22,400             4,000                                     7,426        
Accounts payable —
                                                                                               
Affiliated
    22,533       (403 )     485       1,193       37       695       12,813       6,938       101       101       449       124  
Other
    6,885             11       (49 )     10       6,776                               137        
Accrued taxes —
                                                                                               
Income taxes
    (2,361 )           748       6,604       (9,856 )     444             (83 )     (111 )     (107 )            
Other
    108                   91                                           17        
Accrued interest
    23,006       (228 )     214       1,352       21,130             125       7       7             399        
Accrued compensation
    2,703                               2,703                                      
Other
    21,233                               21,225                         8              
 
Total current liabilities
    296,237       (7,331 )     23,858       200,008       15,321       36,030       12,938       6,862       (3 )     2       8,428       124  
 
Long-term Debt
    645,161                   212,264       400,000       22,997                               9,900        
 
Long-term Debt Payable to Affiliated Trusts
    574,044       (28,808 )           5,600       574,044             20,023       2,700       485                    
 
Deferred Credits and Other Liabilities:
                                                                                               
Accumulated deferred income taxes
    496,345                   450,306       1       7,935       30,676       449       1,697       3,424       1,857        
Employee benefit obligations
    2,347                               2,347                                      
Other
    12,903                               62       8,533       500             3,806       2        
 
Total deferred credits and other liabilities
    511,595                   450,306       1       10,344       39,209       949       1,697       7,230       1,859        
 
Total Liabilities
    2,027,037       (36,139 )     23,858       868,178       989,366       69,371       72,170       10,511       2,179       7,232       20,187       124  
 
Common Stockholders’ Equity
    456,776       (413,806 )     450,424       287,100       25,216       8,196       50,800       1,274       8,925       34,835       3,807       5  
 
Total Liabilities and Stockholders’ Equity
  $ 2,483,813     $ (449,945 )   $ 474,282     $ 1,155,278     $ 1,014,582     $ 77,567     $ 122,970     $ 11,785     $ 11,104     $ 42,067     $ 23,994     $ 129  
 


(A)   Excludes after-tax interest expense of $3,526(000) recorded at Southern Company.

A-44


Table of Contents

     EXHIBITS.

     Exhibits (including reference to previous filings):

     
Exhibit    
Number   Description of Exhibit
A-1
  Annual Report of SOUTHERN on Form 10-K for the year ended December 31, 2004. (File No. 1-3526.)
 
   
A-2
  Annual Report of ALABAMA on Form 10-K for the year ended December 31, 2004. (File No. 1-3164.)
 
   
A-3
  Annual Report of GEORGIA on Form 10-K for the year ended December 31, 2004. (File No. 1-6468.)
 
   
A-4
  Annual Report of GULF on Form 10-K for the year ended December 31, 2004. (File No. 0-2429.)
 
   
A-5
  Annual Report of MISSISSIPPI on Form 10-K for the year ended December 31, 2004. (File No. 001-11229.)
 
   
A-6
  Annual Report of SAVANNAH on Form 10-K for the year ended December 31, 2004. (File No. 1-5072.)
 
   
A-7
  Annual Report of SOUTHERN POWER on Form 10-K for the year ended December 31, 2004. (File No. 333-98553.)
 
   
B-1
  Composite Certificate of Incorporation of SOUTHERN, reflecting all amendments thereto through January 5, 1994. (Designated in Registration No. 33-3546, as Exhibit 4(a), in Certificate of Notification, File No. 70-7341, as Exhibit A and in Certificate of Notification, File No. 70-8181, as Exhibit A.)
 
   
B-2
  By-laws of SOUTHERN as amended effective February 17, 2003, and as presently in effect. (Designated in SOUTHERN’s Form 10-Q for the quarter ended June 30, 2003, File No. 1-3526, as Exhibit 3(a)1.)
 
   
B-3
  Charter of ALABAMA and amendments thereto through February 17, 2004. (Designated in Registration No. 2-59634 as Exhibit 2(b), in Registration No. 2-60209 as Exhibit 2(c), in Registration No. 2-60484 as Exhibit 2(b), in Registration No. 2-70838 as Exhibit 4(a)-2, in Registration No. 2-85987 as Exhibit 4(a)-2, in Registration No. 33-25539 as Exhibit 4(a)-2, in Registration No. 33-43917 as Exhibit 4(a)-2, in Form 8-K dated February 5, 1992, File No. 1-3164, as Exhibit 4(b)-3, in Form 8-K dated July 8, 1992, File No. 1-3164, as Exhibit 4(b)-3, in Form 8-K dated October 27, 1993, File No. 1-3164, as Exhibits 4(a) and 4(b), in Form 8-K dated November 16, 1993, File No. 1-3164, as Exhibit 4(a), in Certificate of Notification, File No. 70-8191, as Exhibit A, in Form 10-K for the year ended December 31, 1997, File No. 1-3164, as Exhibit 3(b)2, in Form 8-K dated August 10, 1998, File No. 1-3164, as Exhibit 4.4, in Form 10-K for the year ended December 31, 2000, File No. 1-3164, as Exhibit 3(b)2, in Form 10-K for the year ended December 31, 2001, File No. 1-3164, as Exhibit 3(b)2, in Form 8-K dated February 5, 2003, File No. 1-3164, as Exhibit 4.4, in ALABAMA’s Form 10Q for the quarter ended March 31, 2003, File No. 1-3164, as Exhibit 3(b)1 and in Form 8-K dated February 5, 2004, File No. 1-3164 as Exhibit 4.4.)
 
   
B-4
  By-laws of ALABAMA as amended effective April 25, 2003, and as presently in effect. (Designated in Form 10-Q for the quarter ended March 31, 2003, File No. 1-3164, as Exhibit 3(b)2.)

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Table of Contents

EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
B-5
  Charter of GEORGIA and amendments thereto through February 16, 2001. (Designated in Registration No. 2-63392 as Exhibit 2(a)-2, in Registration No. 2-78913 as Exhibits 4(a)-(2) and 4(a)-(3), in Registration No. 2-93039 as Exhibit 4(a)-(2), in Registration No. 2-96810 as Exhibit 4(a)(2), in Registration No. 33-141 as Exhibit 4(a)(2), in Registration No. 33-1359 as Exhibit 4(a)(2), in Registration No. 33-5405 as Exhibit 4(b)(2), in Registration No. 33-14367 as Exhibits 4(b)-2 and 4(b)-3, in Registration No. 33-22504 as Exhibits 4(b)-(2), 4(b)-(3) and 4(b)-(4), in GEORGIA’s Form 10-K for the year ended December 31, 1991, File No. 1-6468, as Exhibits 4(a)(2) and 4(a)(3), in Registration No. 33-48895, as Exhibits 4(b)-(2) and 4(b)-(3), in Form 8-K dated December 10, 1992, File No. 1-6468, as Exhibit 4(b), in Form 8-K dated June 17, 1993, File No. 1-6468, as Exhibit 4(b), in Form 8-K dated October 20, 1993, File No. 1-6468, as Exhibit 4(b), in Form 10-K for the year ended December 31, 1997, File No. 1-6468, as Exhibit 3(c)2 and in Form 10-K for the year ended December 31, 2000, File No. 1-6468, as Exhibit 3(c)2.)
 
   
B-6
  By-laws of GEORGIA as amended effective August 20, 2003, and as presently in effect. (Designated in GEORGIA’s Form 10-Q for the quarter ended March 31, 2004, File No. 1-6468, as Exhibit 3(c)1.)
 
   
B-7
  Restated Articles of Incorporation of GULF and amendments thereto through February 9, 2001. (Designated in Registration No. 33-43739 as Exhibit 4(b)-(1), in Form 8-K dated January 15, 1992, File No. 0-2429, as Exhibit 1(b), in Form 8-K dated August 18, 1992, File No. 0-2429, as Exhibit 4(b)-2, in Form 8-K dated September 22, 1993, File No. 0-2429, as Exhibit 4, in Form 8-K dated November 3, 1993, File No. 0-2429, as Exhibit 4, in Form 10-K for the year ended December 31, 1997, File No. 0-2429, as Exhibit 3(d)2 and in Form 10-K for the year ended December 31, 2000, File No. 0-2429, as Exhibit 3(d)2.)
 
   
B-8
  By-laws of GULF as amended effective July 26, 2002, and as presently in effect. (Designated in Form 10-K for the year ended December 31, 2002, File No. 0-2429, as Exhibit 3(d)2.)
 
   
B-9
  Articles of incorporation of MISSISSIPPI, articles of merger of Mississippi Power Company (a Maine corporation) into MISSISSIPPI and articles of amendment to the articles of incorporation of MISSISSIPPI through April 2, 2004. (Designated in Registration No. 2-71540 as Exhibit 4(a)-1, in Form U5S for 1987, File No. 30-222-2, as Exhibit B-10, in Registration No. 33-49320 as Exhibit 4(b)-1, in Form 8-K dated August 5, 1992, File No. 0-6849, as Exhibits 4(b)-2 and 4(b)-3 in Form 8-K dated August 4, 1993, File No. 0-6849, as Exhibit 4(b)-3, in Form 8-K dated August 18, 1993, File No. 0-6849, as Exhibit 4(b)-3, in Form 10-K for the year ended December 31, 1997, File No. 0-6849, as Exhibit 3(e)2, in Form 10-K for the year ended December 31, 2000, File No. 0-6849, as Exhibit 3(e)2 and in Form 8-K dated March 3, 2004, File No. 0-6849, as Exhibit 4.6.)
 
   
B-10
  By-laws of MISSISSIPPI as amended effective February 28, 2001, and as presently in effect. (Designated if Form 10-K for the year ended December 31, 2001, File No. 0-6849, as Exhibit 3(e)2.)

A-46


Table of Contents

EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
B-11
  Charter of SAVANNAH and amendments thereto through June 10, 2004. (Designated in Registration No. 33-25183 as Exhibit 4(b)-(1), in Registration No. 33-45757 as Exhibit 4(b)-(2), in Form 8-K dated November 9, 1993, File No. 1-5072 as Exhibit 4(b), in Form 10-K for the year ended December 31, 1998, File No. 1-5072, as Exhibit 3(f)2 and in Form 8-K dated May 27, 2004, File No. 1-5072, as Exhibits 4.6 and 4.7.)
 
   
B-12
  By-laws of SAVANNAH as amended effective May 17, 2000, and as presently in effect. (Designated in SAVANNAH’s Form 10-K for the year ended December 31, 2000, File No. 1-5072, as Exhibit 3(f)2.)
 
   
B-13
  SCS Certificate of Incorporation as amended. (Designated in Form U-1, File No. 70-3573, as Exhibit A-1; in Form U-1, File No. 70-3833, as Exhibit A-2; Form U5S for 1962, File No. 30-222-2, as Exhibit A-17; and Form U5S for 1985, File No. 30-222-2, as Exhibit B-13(b).)
 
   
B-14
  SCS By-laws as amended to date, last amended October 19, 1998. (Designated in Form U5S for 1998, File No. 30-222-2, as Exhibit B-16.)
 
   
B-15
  Articles of Incorporation of Southern Management and amendments thereto through March 6, 2001. (Designated in Form U5S for 1985, File No. 30-222-2, as Exhibit B-23 , in Form U5S for 1987, File No. 30-222-2, as Exhibit B-27, in Form U5S for 1993, File No. 30-222-2, as Exhibit B-25 and in Form U5S for 2001, File No. 30-222-2, as Exhibit B-18.)
 
   
B-16
  Amended and Restated By-laws of Southern Management effective March 5, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-19.)
B-17
  Articles of Incorporation of SOUTHERN NUCLEAR and amendment thereto through June 14, 1991. (Designated in Form U5S for 1991, File No. 30-222-2, as Exhibit B-28.)
 
   
B-18
  By-laws of SOUTHERN NUCLEAR as amended to date, last amended May 21, 1991. (Designated in Form U5S for 1991, File No. 30-222-2, as Exhibit B-27 and in Form U5S for 1997, File No. 30-222-2, as Exhibit B-28.)
 
   
B-19
  Certificate of Incorporation of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-30.)
 
   
B-20
  By-laws of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-31.)
 
   
B-21
  Certificate of Incorporation of SouthernLINC Wireless. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-31.)

A-47


Table of Contents

EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
B-22
  By-laws of SouthernLINC Wireless. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-32.)
 
   
B-23
  Certificate of Incorporation of Southern Telecom as amended through February 17, 1998. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-26.)
 
   
B-24
  By-Laws of Southern Telecom. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-50.)
 
   
B-25
  Certificate of Incorporation of Southern Company Funding Corporation dated January 17, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-28.)
 
   
B-26
  By-Laws of Southern Company Funding Corporation effective January 17, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-29.)
 
   
B-27
  Certificate of Incorporation of Southern Holdings as amended through March 6, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-30.)
 
   
B-28
  By-Laws of Southern Holdings effective March 5, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-31.)
 
   
B-29
  Certificate of Incorporation of Powercall as amended through February 17, 1998. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-32.)
 
   
B-30
  By-Laws of Powercall effective September 9, 1996. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-33.)
 
   
B-31
  Certificate of Incorporation of SOUTHERN POWER dated January 8, 2001. (Designated in Registration No. 333-98553 as Exhibit 3.1.)
 
   
B-32
  By-Laws of SOUTHERN POWER effective January 8, 2001. (Designated in Registration No. 333-98553 as Exhibit 3.2.)
 
   
B-33
  Certificate of Incorporation of Southern Company Funding Corporation dated January 17, 2001.
 
   
B-34
  By-Laws of Southern Company Funding Corporation effective January 17, 2001.
 
   
B-35
  Limited Liability Company Operating Agreement of Southern Company Gas LLC effective June 3, 2002.
 
   
C-1
  Subordinated Note Indenture dated as of February 1, 1997, among SOUTHERN, Capital Funding and The Bank of New York Trust Company, N.A., as Successor Trustee, and indentures supplemental thereto dated as of February 4, 1997. (Designated in Registration Nos. 333-28349 as Exhibits 4.1 and 4.2 and 333-28355 as Exhibit 4.2.)

A-48


Table of Contents

EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
C-2
  Subordinated Note Indenture dated as of June 1, 1997, among SOUTHERN, Capital Funding and The Bank of New York Trust Company, N.A., as Successor Trustee, and indentures supplemental thereto through of July 31, 2002. (Designated in Form 10-K for the year ended December 31, 1997, File No. 1-3526, as Exhibit 4(a)2, in Form 8-K dated June 18, 1998, File No. 1-3526, as Exhibit 4.2, in Form 8-K dated December 18, 1998, File No. 1-3526, as Exhibit 4.4 and in Form 8-K dated July 24, 2002, File No. 1-3526, as Exhibit 4.4.)
 
   
C-3
  Senior Note Indenture dated as of February 1, 2002, among SOUTHERN, Capital Funding and The Bank of New York, as Trustee, and indentures supplemental thereto through those dated February 1, 2002. (Designated in Form 8-K dated January 29, 2002, File No. 1-3526, as Exhibits 4.1 and 4.2 and in Form 8-K dated January 30, 2002, File No. 1-3526, as Exhibit 4.2.)
 
   
C-4
  Indenture dated as of January 1, 1942, between ALABAMA and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through December 1, 1994. (Designated in Registration Nos. 2-59843 as Exhibit 2(a)-2, 2-60484 as Exhibits 2(a)-3 and 2(a)-4, 2-60716 as Exhibit 2(c), 2-67574 as Exhibit 2(c), 2-68687 as Exhibit 2(c), 2-69599 as Exhibit 4(a)-2, 2-71364 as Exhibit 4(a)-2, 2-73727 as Exhibit 4(a)-2, 33-5079 as Exhibit 4(a)-2, 33-17083 as Exhibit 4(a)-2, 33-22090 as Exhibit 4(a)-2, in ALABAMA’s Form 10-K for the year ended December 31, 1990, File No. 1-3164, as Exhibit 4(c), in Registration Nos. 33-43917 as Exhibit 4(a)-2, 33-45492 as Exhibit 4(a)-2, 33-48885 as Exhibit 4(a)-2, 33-48917 as Exhibit 4(a)-2, in Form 8-K dated January 20, 1993, File No. 1-3436, as Exhibit 4(a)-3, in Form 8-K dated February 17, 1993, File No. 1-3436, as Exhibit 4(a)-3, in Form 8-K dated March 10, 1993, File No. 1-3436, as Exhibit 4(a)-3, in Certificate of Notification, File No. 70-8069, as Exhibits A and B, in Form 8-K dated June 24, 1993, File No. 1-3436, as Exhibit 4, in Certificate of Notification, File No. 70-8069, as Exhibit A, in Form 8-K dated November 16, 1993, File No. 1-3436, as Exhibit 4(b), in Certificate of Notification, File No. 70-8069, as Exhibits A and B, in Certificate of Notification, File No. 70-8069, as Exhibit A, in Certificate of Notification, File No. 70-8069, as Exhibit A and in Form 8-K dated November 30, 1994, File No. 1-3436, as Exhibit 4.)
 
   
C-5
  Subordinated Note Indenture dated as of January 1, 1997, between ALABAMA and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through October 2, 2002. (Designated in Form 8-K dated January 9, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2, in Form 8-K dated February 18, 1999, File No. 1-3164, as Exhibit 4.2 and in Form 8-K dated September 26, 2002, File No.1-3164, as Exhibits 4.9-A and 4.9-B.)
 
   
C-6
  Senior Note Indenture dated as of December 1, 1997, between ALABAMA and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through March 16, 2005. (Designated in Form 8-K dated December 4, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2, in Form 8-K dated February 20, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K

A-49


Table of Contents

EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
  dated April 17, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 11, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated September 8, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated September 16, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated October 7, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated October 28, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated November 12, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated May 19, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 13, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated September 21, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated May 11, 2000, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 22, 2001, File No. 1-3164, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated June 21, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated October 16, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated November 20, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated December 6, 2002, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated February 11, 2003, File No. 1-3164, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated March 12, 2003, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated April 15, 2003 as Exhibit 4.2(a) , in Form 8-K dated May 1, 2003, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated November 14, 2003, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated February 10, 2004, File No. 1-3164, as Exhibit 4.2 in Form 8-K dated April 7, 2004, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 19, 2004, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated November 9, 2004, File No. 1-3164, as Exhibit 4.2 and in Form 8-K dated March 8, 2005, File No. 1-3164, as Exhibit 4.2.)
 
   
C-7
  Subordinated Note Indenture dated as of June 1, 1997, between GEORGIA and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through January 23, 2004. (Designated in Certificate of Notification, File No. 70-8461, as Exhibits D and E, in Form 8-K dated February 17, 1999, File No. 1-6468, as Exhibit 4.4, in Form 8-K dated June 13, 2002, File No. 1-6468, as Exhibit 4.4, in Form 8-K dated October 30, 2002, File No. 1-6468, as Exhibit 4.4 and in Form 8-K dated January 15, 2004, File No. 1-6468, as Exhibit 4.4.)
 
   
C-8
  Senior Note Indenture dated as of January 1, 1998, between GEORGIA and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through January 20, 2005. (Designated in Form 8-K dated January 21, 1998, File No. 1-6468, as Exhibits 4.1 and 4.2, in Forms 8-K each dated November 19, 1998, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated March 3, 1999, File No. 1-6468, as Exhibit 4.5, in Form 8-K dated February 15, 2000, File No. 1-6468 as Exhibit 4.2, in Form 8-K dated January 26, 2001, File No. 1-6468, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated February 16, 2001, File No. 1-6469 as Exhibit 4.2, in Form 8-K dated May 1, 2001, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated June 27, 2002, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated November 15, 2002, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated February 13, 2003, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated February 21, 2003, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated April 10, 2003, File No. 1-6468, as Exhibits 4.1, 4.2 and 4.3, in Form 8-K dated September 8, 2003, File No. 1-6468, as Exhibit 4.1, in Form 8-K dated September 23, 2003, File No. 1-6468, as Exhibit 4.1, in Form 8-K dated January 12, 2004, File No. 1-6468, as Exhibits 4.1 and 4.2, in Form 8-K dated February 12, 2004, File No. 1-6468, as Exhibit 4.1, in Form 8-K dated August 11, 2004, File No. 1-6468, as Exhibits 4.1 and 4.2 and in Form 8-K dated January 13, 2005, File No. 1-6468, as Exhibit 4.1.)

A-50


Table of Contents

EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
C-9
  Indenture dated as of September 1, 1941, between GULF and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through November 1, 1996. (Designated in Registration Nos. 2-4833 as Exhibit B-3, 2-62319 as Exhibit 2(a)-3, 2-63765 as Exhibit 2(a)-3, 2-66260 as Exhibit 2(a)-3, 33-2809 as Exhibit 4(a)-2, 33-43739 as Exhibit 4(a)-2, in GULF’s Form 10-K for the year ended December 31, 1991, File No. 0-2429, as Exhibit 4(b), in Form 8-K dated August 18, 1992, File No. 0-2429, as Exhibit 4(a)-3, in Registration No. 33-50165 as Exhibit 4(a)-2, in Form 8-K dated July 12, 1993, File No. 0-2429, as Exhibit 4, in Certificate of Notification, File No. 70-8229, as Exhibit A, in Certificate of Notification, File No. 70-8229, as Exhibits E and F, in Form 8-K dated January 17, 1996, File No. 0-2429, as Exhibit 4, in Certificate of Notification, File No. 70-8229, as Exhibit A, in Certificate of Notification, File No. 70-8229, as Exhibit A and in Form 8-K dated November 6, 1996, File No. 0-2429, as Exhibit 4.)
 
   
C-10
  Subordinated Note Indenture dated as of January 1, 1997, between GULF and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through December 13, 2002. (Designated in Form 8-K dated January 27, 1997, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form 8-K dated July 28, 1997, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated January 13, 1998, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated November 8, 2001, File No. 0-2429, as Exhibit 4.2 and in Form 8-K dated December 5, 2002, File No. 0-2429, as Exhibit 4.2.)
 
   
C-11
  Senior Note Indenture dated as of January 1, 1998, between GULF and JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto dated as of September 22, 2004. (Designated in Form 8-K dated June 17, 1998, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form 8-K dated August 17, 1999, File No. 0-2429 as Exhibit 4.2, in Form 8-K dated July 31, 2001, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated October 5, 2001, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated January 18, 2002, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated March 21, 2003, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated July 10, 2003, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form 8-K dated September 5, 2003, File No. 0-2429, as Exhibit 4.1, in Form 8-K dated April 6, 2004, File No. 0-2429, as Exhibit 4.1 and in Form 8-K dated September 13, 2004, File No. 0-2429, as Exhibit 4.1.)
 
   
C-12
  Indenture dated as of September 1, 1941, between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Successor Trustee, and indentures supplemental thereto through December 1, 1995. (Designated in Registration Nos. 2-4834 as Exhibit B-3, 2-62965 as Exhibit 2(b)-2, 2-66845 as Exhibit 2(b)-2, 2-71537 as Exhibit 4(a)-(2), 33-5414 as Exhibit 4(a)-(2), 33-39833 as Exhibit 4(a)-2, in MISSISSIPPI’s Form 10-K for the year ended December 31, 1991, File No. 0-6849, as Exhibit 4(b), in Form 8-K dated August 5, 1992, File No. 0-6849, as Exhibit 4(a)-2, in Second Certificate of Notification, File No. 70-7941, as Exhibit I, in MISSISSIPPI’s Form 8-K dated February 26, 1993, File No. 0-6849, as Exhibit 4(a)-2, in Certificate of Notification, File No. 70-8127, as Exhibit A, in Form 8-K dated June 22, 1993, File No. 0-6849, as Exhibit 1, in Certificate of Notification, File No. 70-8127, as Exhibit A, in Form 8-K dated March 8, 1994, File No. 0-6849, as Exhibit 4, in Certificate of Notification, File No. 70-8127, as Exhibit C and in Form 8-K dated December 5, 1995, File No. 0-6849, as Exhibit 4.)

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EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
C-13
  Subordinated Note Indenture dated as of February 1, 1997, between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee, and indentures supplemental thereto through March 22, 2002. (Designated in Form 8-K dated February 20, 1997, File No. 0-6849, as Exhibits 4.1 and 4.2 and in Form 8-K dated March 15, 2002, File No. 0-6849, as Exhibit 4.2.)
 
   
C-14
  Senior Note Indenture dated as of May 1, 1998 between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee and indentures supplemental thereto through March 9, 2004. (Designated in Form 8-K dated May 14, 1998, File No. 0-6849, as Exhibits 4.1, 4.2(a) and 4.2(b), in Form 8-K dated March 22, 2000, File No. 0-6849, as Exhibit 4.2, in Form 8-K dated March 12, 2002, File No. 0-6849, as Exhibit 4.2, in Form 8-K dated April 24, 2003, File No. 001-11229, as Exhibit 4.2 and in Form 8-K dated March 3, 2004, File No. 001-11229, as Exhibit 4.2.)
 
   
C-15
  Indenture dated as of March 1, 1945, between SAVANNAH and The Bank of New York, as Trustee, and indentures supplemental thereto through May 1, 1996. (Designated in Registration Nos. 33-25183 as Exhibit 4(a)-(1), 33-41496 as Exhibit 4(a)-(2), 33-45757 as Exhibit 4(a)-(2), in SAVANNAH’s Form 10-K for the year ended December 31, 1991, File No. 1-5072, as Exhibit 4(b), in Form 8-K dated July 8, 1992, File No. 1-5072, as Exhibit 4(a)-3, in Registration No. 33-50587 as Exhibit 4(a)-(2), in Form 8-K dated July 22, 1993, File No. 1-5072, as Exhibit 4, in Form 8-K dated May 18, 1995, File No. 1-5072, as Exhibit 4 and in Form 8-K dated May 23, 1996, File No. 1-5072, as Exhibit 4.)
 
   
C-16
  Subordinated Note Indenture dated as of December 1, 1998, between SAVANNAH and The Bank of New York, as Trustee, and indenture supplemental thereto dated as of December 9, 1998. (Designated in Form 8-K dated December 3, 1998, File No. 1-5072, as Exhibit 4.3 and 4.4.)
 
   
C-17
  Senior Note Indenture dated as of March 1, 1998 between SAVANNAH and The Bank of New York, as Trustee and indentures supplemental thereto through December 9, 2004. (Designated in Form 8-K dated March 9, 1998, File No. 1-5072, as Exhibits 4.1 and 4.2, in Form 8-K dated May 8, 2001, File No. 1-5072, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated November 4, 2002, File No. 1-5072, as Exhibit 4.2, in Form 8-K dated December 10, 2003, File No. 1-5072, as Exhibits 4.1 and 4.2 and in Form 8-K dated December 2, 2004, File No. 1-5072, as Exhibit 4.1.)
 
   
C-18
  Indenture dated as of June 1, 2002, between SOUTHERN POWER and The Bank of New York, as Trustee, and indenture supplemental thereto dated as of July 8, 2003. (Designated in Registration No. 333-98553 as Exhibits 4.1 and 4.2 and in SOUTHERN POWER’s Form 10-Q for the quarter ended June 30, 2003, File No. 333-98553, as Exhibit 4(g)1.)

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EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
D-1
  Income Tax Allocation Agreement and Amendments 1 through 111 thereto. (Designated in Form U5S for 1981, File No. 30-222-2, as Exhibit A-21, in Form U5S for 1982, File No. 30-222-2, as Exhibit A-22(b), in Form U5S for 1982, File No. 30-222-2, as Exhibit A-22(c), in Form U5S for 1983, File No. 30-222-2, as Exhibit D-1(d), in Form U5S for 1985, File No. 30-222-2, as Exhibit D-1(e), in Amendment No. 1 to Form U5S for 1985, File No. 30-222-2, as Exhibit D-1(f) in Form U5S for 1987, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1991, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 1992, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1991, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1994, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 1995, File No. 30-222-2, as Exhibit D-2, as Exhibit D-2, in Form U5S for 1994, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1996, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1997, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1998, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1999, File No. 30-222-2, as Exhibit D-2, in Form U5S for 2000, File No. 30-222-2, as Exhibit D-2, in Form U5S for 2001, File No. 30-222-2, as Exhibit D-2, in Form U5S for 2002, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 2003, file No. 30-222-2, as Exhibit D-2.)
 
   
D-2
  Amendments 112 and 113 to Income Tax Allocation Agreement.
 
   
D-3
  Statement of the Effects to the Companies Party to the Southern Company Income Tax Allocation Agreement after the Spin-Off of Mirant Corporation. (Designated in Form U5S for 2002, File No. 30-222-2 as Exhibit No. D-3.)

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Table of Contents

EXHIBITS.

Exhibits (including reference to previous filings): (Continued)

     
Exhibit    
Number   Description of Exhibit
E-1
  ALABAMA’s, GEORGIA’s, GULF’s, MISSISSIPPI’s, SCS’s and SOUTHERN NUCLEAR’s personnel policies pertaining to employee loans. (Designated in Form U5S for 1985, File No. 30-222-2, as Exhibits E-1, E-2, E-3, E-4 and E-5, in Form U5S, File No. 30-222-2, for 1987 as Exhibit E-2, in Form U5S for 1990, File No. 30-222-2, as Exhibit E-2, in Form U5S for 1991, File No. 30-222-2, as Exhibits E-2 and E-3 , in Form U5S for 1992, File No. 30-222-2, as Exhibit E-2 in Form U5S for 1993, File No. 30-222-2, as Exhibit E-2, in Form U5S for 1991, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1994, File No. 30-222-2, as Exhibit E-2, in Form U5S for 1995, File No. 30-222-2, as Exhibit E-2, in Form U5S for 1997, File No. 30-222-2, as Exhibit E-2 and in Form U5S for 2001, File No. 30-222-2, as Exhibit E-2.)
 
   
H
  Organizational chart.
 
   
I
  Financial statements relating to certain exempt wholesale generators and foreign utility companies.

          Exhibits listed above which have heretofore been filed with the Securities and Exchange Commission (SEC) pursuant to various Acts administered by the SEC, and which were designated as noted above, are hereby incorporated herein by reference and made a part hereof with the same effect as if filed herewith.

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SIGNATURE

          The undersigned registered holding company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935.

             
    THE SOUTHERN COMPANY
 
           
Date: April 15, 2005
  By   /s/  W. Dean Hudson    
           
      W. Dean Hudson    
      Chief Accounting Officer and    
      Comptroller    

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