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Southern Company reports first quarter earnings

               Southern Company reports first quarter earnings

PR Newswire

ATLANTA, April 24, 2013

ATLANTA, April 24, 2013 /PRNewswire/ -- Southern Company today reported first
quarter 2013 earnings of $81 million, or 9 cents a share, compared with
earnings of $368 million, or 42 cents a share, in the first quarter of 2012.

The first quarter results include two charges against earnings – a $333
million (38 cents per share) after-tax charge related to an increased
construction estimate for Mississippi Power's Kemper County project and a $16
million (2 cents per share) after-tax charge related to the restructuring of a
leveraged lease investment. Excluding these items, Southern Company earned
$430 million, or 49 cents a share, during the first quarter of 2013.

The revised construction cost estimate reflects the company's current analysis
of the cost to complete the Kemper project and the related recognition of
charges to income. The company's analysis is ongoing and will continue
throughout the project's construction phase.

"In keeping with our commitment to customers, Southern Company will fully
absorb the increased costs related to the Kemper project," said Thomas A.
Fanning, Southern Company chairman, president and chief executive officer.
"This decision enables us to maintain our commitment to the Mississippi Public
Service Commission under the settlement agreement, while retaining the
benefits of 21^st century coal for customers."

Mississippi Powerdoesnot intend to amend its recent regulatory filings
foraseven-yearrateplan, whichdo not reflect these new estimates.

Elsewhere, earnings were positively influenced by closer-to-normal weather in
the first quarter of 2013 compared to the first quarter of 2012, as well as
retail revenue effects at some of Southern Company's traditional operating
companies.

"We continue to see positive signs of emerging economic growth in the
Southeast, albeit at a slow pace," said Fanning. "Activity in our economic
development pipeline remains robust, and housing-related manufacturing
segments are beginning to strengthen as well. These developments bode well for
the recovery of our region and the future of our business."

First quarter 2013 operating revenues were $3.9 billion, compared with $3.6
billion for the same period in 2012, an increase of 8.1 percent.

Kilowatt-hour sales to retail customers in Southern Company's four-state
service area increased 2.3 percent in the first quarter of 2013 compared with
the first quarter of 2012. Residential and commercial energy sales increased
8.3 percent and 1.2 percent, respectively, while industrial energy sales
decreased 2.1 percent.

Total energy sales to Southern Company's customers in the Southeast, including
wholesale sales, increased 4.9 percent in the first quarter of 2013 compared
with the same period in 2012.

Southern Company's financial analyst call will begin at 1 p.m. Eastern time
today, during which Fanning and Chief Financial Officer Art P. Beattie will
discuss earnings and provide a general business update. Investors, media and
the public may listen to a live webcast of the call and view associated slides
at http://investor.southerncompany.com/events.cfm. A replay of the webcast
only will be available at the site for 12 months.

Southern Company has also posted on its website detailed financial information
on its first quarter performance. These materials are available at
www.southerncompany.com.

With 4.4 million customers and nearly 46,000 megawatts of generating capacity,
Atlanta-based Southern Company (NYSE: SO) is the premier energy company
serving the Southeast through its subsidiaries. A leading U.S. producer of
clean, safe, reliable and affordable electricity, Southern Company owns
electric utilities in four states and a growing competitive generation
company, as well as fiber optics and wireless communications. Southern Company
brands are known for energy innovation, excellent customer service, high
reliability and retail electric prices that are below the national average.
Southern Company and its subsidiaries are leading the nation's nuclear
renaissance through the construction of the first new nuclear units to be
built in a generation of Americans and are demonstrating their commitment to
energy innovation through the development of a state-of-the-art coal
gasification plant. Southern Company has been recognized by the U.S.
Department of Defense and G.I. Jobs magazine as a top military employer and
listed by DiversityInc as a top company for Blacks. The company received the
2012 Edison Award from the Edison Electric Institute for its leadership in new
nuclear development, was named  Electric Light & Power magazine's Utility of
the Year for 2012 and is continually ranked among the top utilities in
Fortune's annual World's Most Admired Electric and Gas Utility rankings. Visit
our website at www.southerncompany.com.

Cautionary Note Regarding Forward-Looking Statements:

Certain information contained in this release is forward-looking information
based on current expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things, statements
concerning the economy, customer growth and the Company's future financial
performance. Southern Company cautions that there are certain factors that can
cause actual results to differ materially from the forward-looking information
that has been provided. The reader is cautioned not to put undue reliance on
this forward-looking information, which is not a guarantee of future
performance and is subject to a number of uncertainties and other factors,
many of which are outside the control of Southern Company; accordingly, there
can be no assurance that such suggested results will be realized. The
following factors, in addition to those discussed in Southern Company's Annual
Report on Form 10-K for the year ended December 31, 2012, and subsequent
securities filings, could cause actual results to differ materially from
management expectations as suggested by such forward-looking information: the
impact of recent and future federal and state regulatory changes, including
legislative and regulatory initiatives regarding deregulation and
restructuring of the electric utility industry, environmental laws including
regulation of water, coal combustion byproducts, and emissions of sulfur,
nitrogen, carbon, soot, particulate matter, hazardous air pollutants,
including mercury, and other substances, financial reform legislation, and
also changes in tax and other laws and regulations to which Southern Company
and its subsidiaries are subject, as well as changes in application of
existing laws and regulations; current and future litigation, regulatory
investigations, proceedings, or inquiries, including the pending Environmental
Protection Agency civil actions against certain Southern Company subsidiaries,
Federal Energy Regulatory Commission matters, and Internal Revenue Service and
state tax audits; the effects, extent, and timing of the entry of additional
competition in the markets in which Southern Company's subsidiaries operate;
variations in demand for electricity, including those relating to weather, the
general economy and recovery from the recent recession, population and
business growth (and declines), the effects of energy conservation measures,
and any potential economic impacts resulting from federal fiscal decisions;
available sources and costs of fuels; effects of inflation; ability to control
costs and avoid cost overruns during the development and construction of
facilities, including the development and construction of facilities with
designs that have not been finalized or previously constructed, to construct
facilities in accordance with the requirements of permits and licenses, and to
satisfy any operational and environmental performance standards, including the
requirements of tax credits and other incentives; investment performance of
Southern Company's employee benefit plans and the Southern Company system's
nuclear decommissioning trust funds; advances in technology; state and federal
rate regulations and the impact of pending and future rate cases and
negotiations, including rate actions relating to fuel and other cost recovery
mechanisms; regulatory approvals and actions related to the Plant Vogtle
expansion, including Georgia Public Service Commission approvals, Nuclear
Regulatory Commission actions, and potential U.S. Department of Energy loan
guarantees; regulatory approvals and legislative actions related to the Kemper
County project, including Mississippi Public Service Commission approvals and
legislation relating to cost recovery for the Kemper County project, the
ability to complete the proposed sale of an undivided interest in the Kemper
County project to the South Mississippi Electric Power Association as
contemplated by Mississippi Power's proposed rate recovery plan, satisfaction
of requirements to utilize investment tax credits and grants, and the outcome
of any proceedings regarding the Mississippi Public Service Commission's
issuance of the certificate of public convenience and necessity for the Kemper
County project; the inherent risks involved in operating and constructing
nuclear generating facilities, including environmental, health, regulatory,
natural disaster, terrorism, and financial risks; the performance of projects
undertaken by the non-utility businesses and the success of efforts to invest
in and develop new opportunities; internal restructuring or other
restructuring options that may be pursued; potential business strategies,
including acquisitions or dispositions of assets or businesses, which cannot
be assured to be completed or beneficial to Southern Company or its
subsidiaries; the ability of counterparties of Southern Company and its
subsidiaries to make payments as and when due and to perform as required; the
ability to obtain new short- and long-term contracts with wholesale customers;
the direct or indirect effect on the Southern Company system's business
resulting from terrorist incidents and the threat of terrorist incidents,
including cyber intrusion; interest rate fluctuations and financial market
conditions and the results of financing efforts, including Southern Company's
and its subsidiaries' credit ratings; the impacts of any potential U.S. credit
rating downgrade or other sovereign financial issues, including impacts on
interest rates, access to capital markets, impacts on currency exchange rates,
counterparty performance, and the economy in general, as well as potential
impacts on the availability or benefits of proposed U.S. Department of Energy
loan guarantees; the ability of Southern Company and its subsidiaries to
obtain additional generating capacity at competitive prices; catastrophic
events such as fires, earthquakes, explosions, floods, hurricanes, droughts,
pandemic health events such as influenzas, or other similar occurrences; the
direct or indirect effects on the Southern Company system's business resulting
from incidents affecting the U.S. electric grid or operation of generating
resources; and the effect of accounting pronouncements issued periodically by
standard setting bodies. Southern Company expressly disclaims any obligation
to update any forward-looking information.

Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
                                    Three Months Ended

                                    March
                                    2013                      2012
Consolidated Earnings–As
Reported
(See Notes)
 Traditional Operating             $      66                 $    340
Companies
 Southern Power                    29                        29
 Total                             95                        369
 Parent Company and Other          (14)                      (1)
 Net Income–As Reported            $      81                 $    368
 Basic Earnings Per Share          $      0.09               $    0.42
 Average Shares Outstanding        870                       868
(in millions)
 End of Period Shares              871                       869
Outstanding (in millions)
                                    Three Months Ended

                                    March
                                    2013                      2012
Consolidated
Earnings–Excluding Items
(See Notes)
 Net Income–As Reported            $      81                 $    368
 Estimated Loss on Kemper          333                       —
IGCC
 Leveraged Lease Restructure       16                        —
 Net Income–Excluding Items        $      430                $    368
 Basic Earnings Per                $      0.49               $    0.42
Share–Excluding Items
Notes
- For the three months ended March 31, 2013 and 2012, dilution does not change
basic earnings per share by more than 1 cent and is not material.
- The charge for an estimated probable loss relating to Mississippi Power
Company's construction of the integrated coal gasification combined cycle
facility in Kemper County, Mississippi (Kemper IGCC) and the charge related to
the restructuring of a leveraged lease investment that was completed on March
1, 2013 significantly impacted the presentation of earnings and earnings per
share for the three months ended March 31, 2013, and similar charges are not
expected to occur with any regularity in the future.
- Certain prior year data has been reclassified to conform with current year
presentation.
- All figures in this earnings release are preliminary and remain subject to
the completion of normal quarter-end accounting procedures and adjustments,
which could result in changes to these preliminary results. In addition,
certain classifications and rounding may be different from final results
published in the Form 10-Q.



Southern Company
Significant Factors Impacting EPS
                           Three Months Ended

                           March
                           2013               2012             Change
Consolidated Earnings
Per Share–
As Reported (See           $    0.09          $   0.42         $   (0.33)
Notes)
 Significant Factors:
 Traditional                                                  (0.31)
Operating Companies
 Parent Company and                                           (0.02)
Other
 Total–As Reported                                            $   (0.33)
                           Three Months Ended

                           March
                           2013               2012             Change
Consolidated Earnings
Per Share–
Excluding Items (See       $    0.49          $   0.42         $   0.07
Notes)
 Total–As Reported                                            (0.33)
 Estimated Loss on                                            0.38
Kemper IGCC
 Leveraged Lease                                              0.02
Restructure
 Total–Excluding                                              $   0.07
Items
Notes
- For the three months ended March 31, 2013 and 2012, dilution does not change
basic earnings per share by more than 1 cent and is not material.
- The charge for an estimated probable loss relating to Mississippi Power
Company's construction of the integrated coal gasification combined cycle
facility in Kemper County, Mississippi (Kemper IGCC) and the charge related to
the restructuring of a leveraged lease investment that was completed on March
1, 2013 significantly impacted the presentation of earnings and earnings per
share for the three months ended March 31, 2013, and similar charges are not
expected to occur with any regularity in the future.
- Certain prior year data has been reclassified to conform with current year
presentation.
- All figures in this earnings release are preliminary and remain subject to
the completion of normal quarter-end accounting procedures and adjustments,
which could result in changes to these preliminary results. In addition,
certain classifications and rounding may be different from final results
published in the Form 10-Q.



Southern Company
EPS Earnings Analysis
Three Months Ended March 2013
Cents                            Description
(1)¢                             Retail Sales
4                                Retail Revenue Impacts
5                                Weather
1                                Other Operating Revenues
(1)                              Non-Fuel O&M
1                                Purchased Power Capacity Expense
(1)                              Depreciation and Amortization
(1)                              Taxes Other Than Income Taxes
1                                Other Income and Deductions
(1)                              Income Taxes
7¢                               Total Change in EPS (x-items)
(38)                             Estimated Loss on Kemper IGCC
(2)                              Leveraged Lease Restructure
(33)¢                            Total Change in EPS (As Reported)
Notes
- The charge for an estimated probable loss relating to Mississippi Power
Company's construction of the integrated coal gasification combined cycle
facility in Kemper County, Mississippi (Kemper IGCC) and the charge related to
the restructuring of a leveraged lease investment that was completed on March
1, 2013 significantly impacted the presentation of earnings and earnings per
share for the three months ended March 31, 2013, and similar charges are not
expected to occur with any regularity in the future.
- All figures in this earnings release are preliminary and remain subject to
the completion of normal quarter-end accounting procedures and adjustments,
which could result in changes to these preliminary results. In addition,
certain classifications and rounding may be different from final results
published in the Form 10-Q.



Southern Company
Consolidated Earnings
(In Millions of Dollars)
                            Three Months Ended March
                            2013              2012              Change
Income Account-
Retail Revenues-
Fuel                        $   1,137         $   1,035         $   102
Non-Fuel                    2,161             2,057             104
Wholesale Revenues          432               349               83
Other Electric Revenues     155               148               7
Non-regulated Operating     12                15                (3)
Revenues
Total Revenues              3,897             3,604             293
Fuel and Purchased Power    1,357             1,205             152
Non-fuel O & M              974               967               7
Depreciation and            466               441               25
Amortization
Taxes Other Than Income     235               225               10
Taxes
Estimated Loss on Kemper    540               —                 540
IGCC
Total Operating Expenses    3,572             2,838             734
Operating Income            325               766               (441)
Allowance for Equity
Funds Used During           41                31                10
Construction
Leveraged Lease Income      (21)              6                 (27)
(Loss)
Interest Expense, Net of    211               211               —
Amounts Capitalized
Other Income (Expense),     (6)               (8)               2
net
Income Taxes                31                200               (169)
Net Income                  97                384               (287)
Dividends on Preferred
and Preference Stock of     16                16                —
Subsidiaries
NET INCOME AFTER
DIVIDENDS ON PREFERRED      $   81            $   368           $   (287)
AND PREFERENCE STOCK
(See Notes)
Notes
- Certain prior year data has been reclassified to conform with current year
presentation.
- All figures in this earnings release are preliminary and remain subject to
the completion of normal quarter-end accounting procedures and adjustments,
which could result in changes to these preliminary results. In addition,
certain classifications and rounding may be different from final results
published in the Form 10-Q.



Southern Company
Kilowatt-Hour Sales
(In Millions of KWHs)
                       Three Months Ended March
As Reported                                                         Weather
                       2013           2012           Change         Adjusted
(See Notes)                                                         Change*
Kilowatt-Hour
Sales-
Total Sales            43,570         41,524         4.9     %
Total Retail Sales-    37,075         36,258         2.3     %      (0.9)    %
Residential            12,346         11,404         8.3     %      (0.9)    %
Commercial             12,101         11,957         1.2     %      0.4      %
Industrial             12,399         12,667         (2.1)   %      (2.1)    %
Other                  229            230            (0.4)   %      (0.7)    %
Total Wholesale        6,495          5,266          23.3    %      N/A
Sales
Notes
* Also reflects reclassification of January 2012 KWH sales among customer
classes consistent with actual advanced meter data. Use of actual advanced
meter data was implemented during the first quarter of 2012.
- Certain prior year data has been reclassified to conform with current year
presentation.
- All figures in this earnings release are preliminary and remain subject to
the completion of normal quarter-end accounting procedures and adjustments,
which could result in changes to these preliminary results. In addition,
certain classifications and rounding may be different from final results
published in the Form 10-Q.



Southern Company
Financial Overview
(In Millions of Dollars)
                          Three Months Ended March
                          2013                  2012                % Change
Consolidated –
Operating Revenues        $    3,897            $    3,604          8.1      %
Earnings Before           128                   584                 (78.1)   %
Income Taxes
Net Income Available      81                    368                 (78.0)   %
to Common
Alabama Power –
Operating Revenues        $    1,308            $    1,216          7.6      %
Earnings Before           248                   220                 12.7     %
Income Taxes
Net Income Available      141                   126                 11.9     %
to Common
Georgia Power –
Operating Revenues        $    1,882            $    1,745          7.9      %
Earnings Before           325                   263                 23.6     %
Income Taxes
Net Income Available      197                   167                 18.0     %
to Common
Gulf Power –
Operating Revenues        $    326              $    316            3.2      %
Earnings Before           37                    34                  10.2     %
Income Taxes
Net Income Available      22                    21                  5.4      %
to Common
Mississippi Power –
Operating Revenues        $    246              $    229            7.5      %
Earnings Before           (493)                 34                  N/M
Income Taxes
Net Income Available      (294)                 25                  N/M
to Common
Southern Power –
Operating Revenues        $    303              $    254            19.4     %
Earnings Before           44                    43                  3.0      %
Income Taxes
Net Income Available      29                    29                  (0.4)    %
to Common
N/M - not meaningful
Notes
- Certain prior year data has been reclassified to conform with current year
presentation.
- All figures in this earnings release are preliminary and remain subject to
the completion of normal quarter-end accounting procedures and adjustments,
which could result in changes to these preliminary results. In addition,
certain classifications and rounding may be different from final results
published in the Form 10-Q.

SOURCE Southern Company

Website: http://www.southerncompany.com
Contact: Southern Company Media Relations, 404-506-5333 or 1-866-506-5333; or
Investor Relations Contact: Dan Tucker, 404-506-5310, dstucker@southernco.com
 
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