U5S 1 u5s01.txt FORM U5S FOR THE YEAR ENDED DECEMBER 31, 2001 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ---------------- FORM U5S ANNUAL REPORT For the Fiscal Year Ended December 31, 2001 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 2001 TABLE OF CONTENTS ----------------- ITEM PAGE NUMBER ---- ----------- 1. System Companies and Investments therein as of December 31, 2001 1 2. Acquisitions or Sales of Utility Assets 5 3 Issue, Sale, Pledge, Guarantee or Assumptions of System Securities 5 4. Acquisition, Redemption or Retirement of System Securities 6 5. Investments in Securities of Nonsystem Companies 8 6. Officers and Directors 9 7. Contributions and Public Relations 30 8. Service, Sales and Construction Contracts 33 9. Wholesale Generators and Foreign Utility Companies 34 10. Financial Statements and Exhibits A i
ITEMS ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001. --------------------------------------------------------------------------- Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value ----------------- ------------ ---------- ------ ---------- In Thousands THE SOUTHERN COMPANY (SOUTHERN) None None n/a n/a ALABAMA POWER COMPANY (ALABAMA) 6,000,000 100 $3,310,877 $3,310,877 Alabama Energy Providers, Inc. 1,000 100 1 1 Alabama Property Company 1,000 100 10,418 10,418 Alabama Power Capital Trust I (ALABAMA TRUST I) n/a n/a 3,000 3,000 Alabama Power Capital Trust II (ALABAMA TRUST II) n/a n/a 6,186 6,186 Alabama Power Capital Trust III (ALABAMA TRUST III) n/a n/a 1,550 1,550 Southern Electric Generating Company (SEGCO) (a) 164,000 50 28,944 28,944 GEORGIA POWER COMPANY (GEORGIA) 7,761,500 100 4,397,485 4,397,486 SEGCO (a) 164,000 50 28,944 28,944 Piedmont-Forrest Corporation (PIEDMONT) 100,000 100 5,714 5,714 13,576 (b) 13,576 Georgia Power Capital Trust I (GEORGIA TRUST I) n/a n/a 9,789 9,789 Georgia Power Capital Trust II (GEORGIA TRUST II) n/a n/a 7,452 7,452 Georgia Power Capital Trust III (GEORGIA TRUST III) n/a n/a 7,918 7,918
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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001. ------------------------------------------------------------------------- (Continued) Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value ----------------- ------------ ----- ----- ---------- In Thousands ------------ Georgia Power Capital Trust IV (GEORGIA TRUST IV) n/a n/a 7,393 7,393 GULF POWER COMPANY (GULF) 992,717 100 504,894 504,894 Gulf Power Capital Trust I (GULF TRUST I) n/a n/a 1,701 1,701 Gulf Power Capital Trust II (GULF TRUST II) n/a n/a 1,785 1,785 MISSISSIPPI POWER COMPANY (MISSISSIPPI) 1,121,000 100 491,680 491,680 Mississippi Power Capital Trust I (MISSISSIPPI TRUST I) n/a n/a 1,082 1,082 Mississippi Power Services, Inc. 100 100 705 705 MOBILE ENERGY SERVICES HOLDINGS, INC. (MESH) 1,000 100 0 0 Mobile Energy Services Company, LLC (MESC) n/a 99 0 0 SAVANNAH ELECTRIC AND POWER COMPANY (SAVANNAH) 10,844,635 100 176,918 176,918 Savannah Electric and Power Capital Trust I (SAVANNAH ELECTRIC TRUST I) n/a n/a 1,497 1,497 CHANGE IN CONTROL TRUST n/a n/a 19,930 19,930 DEFERRRED CASH TRUST n/a n/a 843 843 SOUTHERN COMPANY HOLDINGS, INC. 10,000 91.11 280,085 280,085 Southern Company Capital Funding, Inc. 1,000 100 50,489 50,489 Southern Company Capital Trust I n/a n/a 335,395 335,395 Southern Company Capital Trust II n/a n/a 77,391 77,391 Southern Company Capital Trust III n/a n/a 206,186 206,186 Southern Company Capital Trust IV n/a n/a 206,186 206,186 Southern Company Capital Trust V n/a n/a 154,636 154,636
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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001. ------------------------------------------------------------------------- (Continued) Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value ----------------- ------------ ----- ----- ---------- In Thousands Southern Company Energy Solutions LLC (c) n/a 100 19,574 19,574 Alabama Synfuel Energy, Inc. 1,000 100 21,314 21,314 Synfuel Services, Inc. 1,000 100 467 467 Energy Related Activities Inc. 1,000 100 1,029 1,029 Southern Company Electrotechnologies (d) 100 100 n/a n/a SE Finance Capital Corporation 1,000 100 157,597 157,597 SE Finance Company, Inc. 1,000 100 339,839 339,839 EPZ Lease, Inc. 1,000 100 52,208 52,208 EPZ Lease, LLC n/a n/a 102,603 102,603 EPZ Lease Holding A, LLC n/a n/a 31,093 31,093 EPZ Lease Trust A (e) n/a n/a 31,091 31,091 EPZ Lease Holding B, LLC n/a n/a 31,093 31,093 EPZ Lease Trust B (e) n/a n/a 31,091 31,091 EPZ Lease Holding C, LLC n/a n/a 41,456 41,456 EPZ Lease Trust C (e) n/a n/a 41,455 41,455 Dutch Gas Lease, Inc. 1,000 100 156,281 156,281 Dutch Gas Lease, LLC n/a n/a 220,404 220,404 Dutch Gas Lease Holding A, LLC n/a n/a 86,125 86,125 Dutch Gas Lease Trust A (e) n/a n/a 86,125 86,125 Dutch Gas Lease Holding B, LLC n/a n/a 69,037 69,037 Dutch Gas Lease Trust B (e) n/a n/a 69,037 69,037 Dutch Gas Lease Holding C, LLC n/a n/a 65,241 65,241 Dutch Gas Lease Trust C (e) n/a n/a 65,141 65,241 NUON Lease, Inc. 1,000 100 140,946 140,946 NUON Lease Holding D, LLC n/a n/a 83,280 83,280 NUON Trust D (e) n/a n/a 83,280 83,280 NUON Lease Holding E, LLC n/a n/a 62,570 62,570 NUON Trust E (e) n/a n/a 62,570 62,570 NUON Lease Holding F, LLC n/a n/a 41,068 41,068 NUON Trust F (e) n/a n/a 41,068 41,068 GAMOG Lease, Inc. 1,000 100 109,507 109,507 GAMOG Lease Holding G, LLC n/a n/a 30,815 30,815 GAMOG Trust G (e) n/a n/a 30,815 30,815 GAMOG Lease Holding H, LLC n/a n/a 75,050 75,050 GAMOG Trust H (e) n/a n/a 75,050 75,050 GAMOG Lease Holding I, LLC n/a n/a 38,481 38,481 GAMOG Trust I (e) n/a n/a 38,481 38,481 Clairton, Inc. 1,000 100 27,865 27,865 Clairton, LLC 1,000 85 36,848 36,848 Clairton 2, Inc. 1,000 100 5,713 5,713 Carbontronics, Inc. 1,000 100 20,176 20,176 Carbontronics, LLC 1,000 99 11,937 11,937
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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001. ------------------------------------------------------------------------- (Continued) Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value ----------------- ------------ ----- ----- ---------- In Thousands SOUTHERN COMPANY FUNDING CORPORATION (f) 1,000 100 10 10 SOUTHERN COMPANY SERVICES, INC. (SCS) 14,500 100 875 875 SOUTHERN COMMUNICATIONS SERVICES, INC. (Southern LINC) 500 100 80,139 80,139 SOUTHERN ELECTRIC RAILROAD COMPANY (SERC) 5,000 100 5 5 SOUTHERN NUCLEAR OPERATING COMPANY, INC. (Southern Nuclear) 1,000 100 7,117 7,117 SOUTHERN POWER COMPANY (g) 1,000 100 466,993 466,993 Southern Power-Florida LLC (h) 1,000 100 29,576 29,576 Klondike Development LLC (i) n/a 100 1,000 1,000 Madison County Energy Center LLC (j) n/a 100 1,000 1,000 SOUTHERN TELECOM, INC. 1,000 100 5,478 5,478 SOUTHERN MANAGEMENT DEVELOPMENT, INC. (Southern 500 100 25,069 25,069 Management)
4 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001. ------------------------------------------------------------------------- (Continued) Notes to Item 1: (a) SEGCO is 50% owned by ALABAMA and 50% owned by GEORGIA. The amounts shown reflect the respective ownership interests of each company. (b) Promissory note due on demand; interest rate, based on GEORGIA's embedded cost of capital, was 9.55% at January 1, 2002. (c) A Delaware limited liability company organized on February 21, 2001. (d) A Georgia corporation was organized on November 29, 2001. The corporation was inactive at year-end 2001. (e) A Delaware business trust. The form of equity investment is paid in capital. (f) A Delaware corporation organized on January 17, 2001. (g) A Delaware corporation organized on January 8, 2001. (h) A Delaware limited liability company organized on January 9, 2001. (i) A Delaware limited liability company organized on August 31, 2001. (j) A Delaware limited liability company organized on November 21, 2001. ITEM 2. ACQUISITION OR SALES OF UTILITY ASSETS. ------------------------------------------------ NONE. ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES. --------------------------------------------------------------------------- NONE. 5
ITEM 4. ACQUISITION, REDEMPTION, OR RETIREMENT OF SYSTEM SECURITIES. ---------------------------------------------------------------------- Calendar Year 2001 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: First Mortgage Bonds 9.00% Series due 2024 ALABAMA None $138,991,000 $138,991,000 $138,991,000 GEORGIA: First Mortgage Bonds 6 5/8% Series due 2003 GEORGIA None $200,000,000 $200,000,000 $200,000,000 6.35% Series due 2003 GEORGIA None $75,000,000 $75,000,000 $75,000,000 6.07% Series due 2005 GEORGIA None $8,140,000 $8,140,000 $8,140,000 6 7/8% Series due 2008 GEORGIA None $50,000,000 $50,000,000 $50,000,000 7.70% Series due 2025 GEORGIA None $57,000,000 $57,000,000 $57,000,000 Pollution Control Revenue Bonds 6.25% Series due 2019 GEORGIA None $5,300,000 $5,300,000 $5,300,000 6.75% Series due 2024 GEORGIA None $43,420,000 $43,420,000 $43,420,000 6.625% Series due 2024 GEORGIA None $10,000,000 $10,000,000 $10,000,000 5.0% Series due 2005 GEORGIA None $57,000,000 $57,000,000 $57,000,000 6.25% Series due 2021 GEORGIA None $10,125,000 $10,125,000 $10,125,000 5.40% Series due 2024 GEORGIA None $28,065,000 $28,065,000 $28,065,000 5.75% Series due 2023 GEORGIA None $11,935,000 $11,935,000 $11,935,000 6.0% Series due 2025 GEORGIA None $71,580,000 $71,580,000 $71,580,000 5.75% Series due 2023 GEORGIA None $60,000,000 $60,000,000 $60,000,000 6.10% Series due 2025 GEORGIA None $73,535,000 $73,535,000 $73,535,000 Variable Rate Series due 2024 GEORGIA None $12,475,000 $12,475,000 $12,475,000 Variable Rate Series due 2026 GEORGIA None $1,600,000 $1,600,000 $1,600,000 GULF: Senior Notes 6.70% Series due 2038 GULF None $862,000 None $862,000 First Mortgage Bonds 6.125% Series due 2003 GULF None None $30,000,000 $30,000,000 MISSISSIPPI: First Mortgage Bonds 7.45% Series due 2023 MISSISSIPPI None $1,000,000 None $1,000,000 6.60% Series due 2004 MISSISSIPPI None $35,000,000 None $35,000,000 Pollution Control Bonds 5.80% Series due 2007 MISSISSIPPI None $20,000 None $20,000
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ITEM 4. ACQUISITION, REDEMPTION, OR RETIREMENT OF SYSTEM SECURITIES. ------------------------------------------------------------------------- Calendar Year 2001 Name of Company Name of Issuer and Acquiring, Redeeming Number of Shares or Principal Amount Indicate Title of Issue or Retiring Securities --------------------------------------- Commnission ------------------ --------------------- Acquired Redeemed Retired Consideration Authorization -------- -------- ------- ------------- ------------- (See Note) MISSISSIPPI (Continued): Senior Notes Floating Rate due 2002 MISSISSIPPI None $20,000,000 $20,000,000 $20,000,000 6.75% Series due 2038 MISSISSIPPI None $1,001,000 None $1,001,000 SAVANNAH: Senior Notes Variable Rate Notes due 2001 SAVANNAH None $20,000,000 $20,000,000 $20,000,000 6.88% Note due 2001 SAVANNAH None $10,000,000 $10,000,000 $10,000,000 Note to Item 4: All transactions exempt pursuant to Rule 42(b)(2), (4) or (5) or authorized in File No. 70-8095.
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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) 538,935 shares $4,439,210 ALABAMA (one item) (2) 204 shares $1 ALABAMA (five items) (3) $2,591,140 $2,591,140 GEORGIA (one item) (4) $4,700,000 $3,604,674 GULF (nine items) (2) 640 shares $1 Southern Management (one item) (5) 130,381 shares $1 SAVANNAH (one item) (2) 285 shares $1 SOUTHERN (one item) (6) option for 323,812 shares $5,025,512
Notes to Item 5: (1) Represents the transfer of the investment in Pantellos from Southern Telecom to SOUTHERN. Pantellos is an independent, open marketplace for the energy and utility industries that brings together buyers and sellers to improve the way they do business. (2) Securities representing bankruptcy distributions applicable to obligations of customers incurred in the ordinary course of business. (3) 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. (4) 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.) (5) Represents Southern Management's investment in Integrated Communication Systems, Inc. (ICS). ICS is engaged in providing two-way communications over local telephone lines for a wide range of energy-related services in residential and small commercial markets. (6) Represents SOUTHERN's option on Mirant Corporation shares to be used in 2003 to settle certain employee compensation liabilities related to a long-term incentive plan assumed in connection with the spin-off of Mirant Corporation (File No. 70-9727). The option can be settled in cash only. Any Mirant Corporation shares acquired with the cash settlement will be owned directly by these individuals. 8 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) 1130 Connecticut Ave., NW Suite 830 Washington, DC 20036 (j) 1403 Foulk Road Foulkstone Plaza Suite 102-9 Wilmington, DE 19803 (k) 4000 DeKalb Technology Parkway Suite 100 Atlanta, GA 30340 (l) Position Code ------------------------------------------ Chairman of the Board CH Vice Chairman of the Board VCH 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 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 Thomas F. Chapman D 1600 Peachtree Street, NW Atlanta, GA 30309 H. Allen Franklin D,P,CEO,CH Bruce S. Gordon D 1095 Avenue of the Americas New York, NY 10036 L. G. Hardman III D P. O. Box 149 Commerce, GA 30529 Elmer B. Harris (b) D, EVP Donald M. James D P. O. Box 385014 Birmingham, AL 35238-5014 9 ITEM 6. OFFICERS AND DIRECTORS. ---------------------------------- PART I. (Continued) -------------------- SOUTHERN (continued) Name and Principal Address (a) Position -------------------------------------------- Zack T. Pate D 700 Galleria Parkway Atlanta, GA 303339 Gerald J. St. Pe' D P. O. Box 149 Pascagoula, MS 39568 Dwight H. Evans EVP Leonard J. Haynes EVP G. Edison Holland EVP,L Charles D. McCrary (b) EVP David M. Ratcliffe (c) EVP Gale E. Klappa SVP David R. Altman VP Joseph A. Miller (j) VP W. Dean Hudson (c) C Tommy Chisholm S ALABAMA Name and Principal Address (b) Position -------------------------------------------- Whit Armstrong D P. O. Box 900 Enterprise, AL 36331 David J. Cooper D 118 N. Royal Street Mobile, AL 36602 H. Allen Franklin (a) D Elmer B. Harris D,CH R. Kent Henslee D 754 Chestnut Street Gadsden, AL 35901 Carl E. Jones, Jr. D P. O. Box 1024 Birmingham, AL 35202 Patricia M. King D 1501 South Quintard Avenue Anniston, AL 36201 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 Thomas C. Meredith D 401 Queen City Avenue Tuscaloosa, AL 35401 Mayer Mitchell D 3800 Airport Boulevard, Suite 301 Mobile, AL 36608 William V. Muse D 107 Samford Hall Auburn, AL 36849 Robert D. Powers D 202 East Broad Street Eufaula, AL 36027 Andreas Renschler D Dornierstrasse 6 Renningen, Germany 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 Steven R. Spencer EVP Robert Holmes, Jr. SVP Robin A. Hurst SVP Rodney O. Mundy SVP,L Michael L. Scott SVP Jerry L. Stewart SVP Christopher C. Womack (c) SVP Art P. Beattie VP,C Christopher T. Bell VP Gerald L. Johnson VP Marsha S. Johnson VP William B. Johnson VP J. Bruce Jones VP William B. Keller VP Bobby Kerley VP Penny M. Manuel VP Gordon Martin VP Donald W. Reese VP Julian H. Smith, Jr. VP W. Ronald Smith VP Cheryl A. Thompson VP Terry H. Waters VP William E. Zales, Jr. VP,S 10 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 Baranco D 7060 Jonesboro Road Morrow, GA 30260 Anna R. Cablik D 1513 Johnson Ferry Road Suite B-20 Marietta, GA 30062 William A. Fickling, Jr. D P. O. Box 1976 Macon, GA 31202-1976 H. Allen Franklin (a) D L. G. Hardman III D P. O. Box 149 Commerce, GA 30529 James R. Lientz, Jr. D P. O. Box 4899 Mail Code GAI-006-55-05 Atlanta, GA 30302-4899 G. Joseph Prendergast D 100 North Main Street Winston-Salem, NC 27101 David M. Ratcliffe D,P,CEO Richard W. Ussery D 1600 First Avenue Columbus, GA 31902-1755 William Jerry Vereen D P. O. Box 1663 Moultrie, GA 31776-1663 Carl Ware D P. O. Box Drawer 1734, Nat 25 Atlanta, GA 30301 E. Jenner Wood, III D P.O. Box 4418 M.C. 0445 Atlanta, GA 30302 William C. Archer, III EVP Thomas A. Fanning EVP,T,CFO Judy M. Anderson SVP Ronnie L. Bates SVP M. A. Brown SVP James K. Davis SVP Fred D. Williams SVP Christopher C. Womack SVP David R. Altman VP Rebecca A. Blalock VP Robert L. Boyer VP A. Bryan Fletcher VP J. Kevin Fletcher VP O. Ben Harris VP Chris M. Hobson VP Ed F. Holcombe VP Richard L. Holmes VP E. Lamont Houston VP Anne Kaiser VP Frank J. McCloskey VP C. Philip Saunders VP Leslie Sibert VP Cliff S.Thrasher VP,C,CAO Jeffrey L. Wallace VP Janice G. Wolfe S PIEDMONT Name and Principal Address (c) Position -------------------------------------------- David M. Ratcliffe D,P Thomas A. Fanning D,EVP,T Janice G. Wolfe D,VP,S SEGCO Name and Principal Address (b) Position -------------------------------------------- Art P. Beattie D,C William P. Bowers D,VP Robert L. Boyer (c) D Thomas A. Fanning (c) D Robert H. Haubein, Jr. D William B. Hutchins, III D,VP Charles D. McCrary D,P David M. Ratcliffe (c) D,VP Jerry L. Stewart D William E. Zales, Jr. S J. Randy DeRieux T 11 ITEM 6. OFFICERS AND DIRECTORS --------------------------------- PART I. (Continued) -------------------- GULF Name and Principal Address (d) Position -------------------------------------------- C. LeDon Anchors D Travis J. Bowden D,P,CEO Fred C. Donovan, Sr. D P. O. Box 13370 Pensacola, FL 32591 H. Allen Franklin (a) D W. Deck Hull, Jr. D P. O. Box 2266 Panama City, FL 32402 William D. Pullum D 8494 Navarre Parkway Navarre, FL 32566 Joseph K. Tannehill D 10 Arthur Drive Lynn Haven, FL 32444 F. M. Fisher, Jr. VP J. E. Hodges, Jr. VP Ronnie R. Labrato VP,CFO,C Robert G. Moore VP Christopher C. Womack (c) VP Warren E. Tate VP,S,T MISSISSIPPI Name and Principal Address (e) Position -------------------------------------------- Tommy E. Dulaney D P. O. Box 2929 Meridian, MS 39302 Michael D. Garrett D,P,CEO Linda T. Howard D P.O. Box 1588 Laurel, MS 39401 Aubrey K. Lucas D Box 5164 Hattiesburg, MS 39406 Malcolm Portera D 401 Queen City Avenue Tuscaloosa, AL 35401 George A. Schloegel D Hancock Bank P. O. Box 4019 Gulfport, MS 39502 Philip J. Terrell D 701 West North Street Pass Christian, MS 39571 Gene Warr D 2600 Beach Boulevard Biloxi, MS 39531 H. Ed Blakeslee VP Don E. Mason VP Michael L. Scott VP Michael W. Southern VP,CFO,T Gene L. Ussery, Jr. VP Christopher C. Womack (c) VP Vicki L. Pierce S Frances V. Turnage C MISSISSIPPI POWER SERVICES, INC. Name and Principal Address (e) Position -------------------------------------------- H. Ed Blakeslee D,P,CEO Michael D. Garrett D,CH Don E. Mason D,VP Michael W. Southern D,VP,T,CFO 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 Anthony R. James D,P,CEO Walter D. Gnann D P. O. Box 334 Springfield, GA 31329 Robert B. Miller, III D P. O. Box 8003 Savannah, GA 31412 Arnold M. Tenenbaum D P. O. Box 2567 Savannah, GA 31498 W. Miles Greer VP Leonard J. Haynes (c) VP Sandra R. Miller VP Kirby R. Willis VP,T,CFO Christopher C. Womack (c) VP Nancy Frankenhauser S,C SCS Name and Principal Address (c) Position -------------------------------------------- H. Allen Franklin (a) D,P,CEO Charles D. McCrary (b) D David M. Ratcliffe D W. Paul Bowers (b) EVP Dwight H. Evans EVP Gale E. Klappa (a) EVP Leonard J. Haynes (a) EVP G. Edison Holland, Jr. (a) EVP,L Susan N. Story (b) EVP Andrew J. Dearman, III (b) SVP Charles H. Goodman (b) SVP 12 ITEM 6. OFFICERS AND DIRECTORS ---------------------------------- PART I. (Continued) ------------------------ SCS (continued) Name and Principal Address (c) Position -------------------------------------------- Robert H. Haubein (b) SVP W. Dean Hudson SVP,C,CFO Douglas E. Jones (a) SVP William K. Newman (b) SVP C. Philip Saunders SVP Michael L. Scott SVP Jerry L. Stewart (b) SVP Christopher C. Womack (a) SVP David R. Altman (a) VP Curtis Ashley Baker VP William O. Ball VP Robert A. Bell (a) VP Ronald P. Bertasi (l) VP Robert L. Boyer VP Ronald R. Campbell VP Tommy Chisholm (a) VP,S David L. Coker VP James M. Corbitt (b) VP Ed Day (a) VP James C. Fleming (a) VP Barbara S. Hingst (a) VP Allen L. Leverett (a) VP,T Ellen N. Lindemann VP Charles D. Long, IV (b) VP Jacqualyn Lowe VP William L. Marshall, Jr. (b) VP Christopher S. Miller VP James H. Miller, III (b) VP Joseph A. Miller (j) VP Sandra R. Miller (f) VP Karl R. Moor (j) VP Robert G. Moore (d) VP Rodney O. Mundy (b) VP Earl B. Parsons, III (b) VP James P. Sale (a) VP Anthony J. Topazi (b) VP Gene L. Ussery, Jr. (e) VP Stephen A. Wakefield (a) VP Southern LINC Name and Principal Address (g) Position -------------------------------------------- Robert G. Dawson D,P,CEO H. Allen Franklin (a) D Gale E. Klappa (a) D Charles D. McCrary (b) D David M. Ratcliffe (c) 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 -------------------------------------------- Charles D. McCrary (b) D,P T. Roy Harrell (b) VP Larry M. Porter (e) VP Jerry L. Stewart (b) VP Tommy Chisholm (a) S,T Southern Nuclear Name and Principal Address (i) Position -------------------------------------------- H. Allen Franklin (a) D William G. Hairston, III D,P,CEO Charles D. McCrary (b) D David M. Ratcliffe (c) D Jackie D. Woodard EVP James W. Averett VP James B. Beasley VP Kathleen S. King VP,CFO,C,T Louis B. Long VP John O. Meier VP,L D. N. Morey, III VP H. Lewis Sumner, Jr. VP Christopher C. Womack (c) VP Sherry A. Mitchell S Southern Company Holdings, Inc. Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Gale E. Klappa D Allen L. Leverett D,P Christopher J. Kysar VP,T Tommy Chisholm S Southern Company Energy Solutions LLC Name and Principal Address (l) Position -------------------------------------------- Ronald P. Bertasi P,CEO Michael E. Ellis VP Allen L. Leverett (a) T Tommy Chisholm (a) S SE Finance Capital Corporation Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Gale E. Klappa D Allen L. Leverett D,P,CEO James C. Fleming VP Christopher J. Kysar VP,T,CFO Tommy Chisholm S 13 ITEM 6. OFFICERS AND DIRECTORS --------------------------------- PART I. (Continued) ------------------- SE Finance Company Inc. Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Gale E. Klappa D Allen L. Leverett D,P,CEO James C. Fleming VP Christopher J. Kysar VP,T,CFO Tommy Chisholm S Southern Power Company Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) D,P,CEO H. Allen Franklin D Gale E. Klappa D Charles D. McCrary (b) D David M. Ratcliffe (c) D Robert G. Moore SVP Carson B. Harreld VP,C,CFO Douglas E. Jones VP James H. Miller, III (b) VP,L Anthony J. Topazi (b) VP Allen L. Leverett T Tommy Chisholm S Southern Company-Florida LLC Name and Principal Address (a) Position -------------------------------------------- Charles D. McCrary (b) D,P Allen L. Leverett VP,T Tommy Chisholm S Southern Company Funding Corporation Name and Principal Address (a) Position -------------------------------------------- Gale E. Klappa D Allen L. Leverett D,P,CEO Earl C. Long D,VP,CFO,T 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 Allen Leverett (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 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 Allen Leverett (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 14 ITEM 6. OFFICERS AND DIRECTORS --------------------------------- PART I. (Continued) -------------------- 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 Christopher J. Kysar (a) D,VP,T,CFO Allen Leverett (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 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 Christopher J. Kysar (a) D,VP,T,CFO Allen Leverett (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 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 Southern Company Capital Funding, 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 Allen L. Leverett (a) D,P,CEO Daniel P. McCollom D Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C Clairton, 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 Allen L. Leverett (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 15 ITEM 6. OFFICERS AND DIRECTORS --------------------------------- PART I. (Continued) -------------------- Clairton 2, 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 Allen L. Leverett (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 Clairton, LLC Name and Principal Address (k) Position -------------------------------------------- Clairton, Inc. Member Clairton 2, Inc. Member Carbontronics, Inc. Name and Principal Address (a) Position Christopher J. Kysar D,VP,T,CFO Allen L. Leverett D,CEO,P Judith A. Rosenberg D James C. Fleming VP Tommy Chisholm S Carbontronics, LLC Name and Principal Address (k) Position -------------------------------------------- Carbontronics, Inc. Member SE Finance Company, Inc. Member Southern Telecom, Inc. Name and Principal Address (g) Position Robert G. Dawson D,P,CEO H. Allen Franklin (a) D Gale E. Klappa (a) D Charles D. McCrary (b) D David M. Ratcliffe (c) D Tommy Chisholm (a) S R. Craig Elder T Southern Management Name and Principal Address (l) Position -------------------------------------------- Ronald P. Bertasi D,P,CEO H. Allen Franklin (a) D Leonard J. Haynes (a) D Gale E. Klappa (a) D Charles D. McCrary (b) D David M. Ratcliffe (c) D Michael E. Ellis VP Tommy Chisholm (a) S Allen L. Leverett (a) T Synfuel Services Inc. Name and Principal Address (b) Position -------------------------------------------- Robert H. Haubein D Charles D. McCrary D Jerry L. Stewart D Anthony J. Topazi D,VP David Stewart P Art P. Beattie VP Tommy Chisholm (a) S Carson B. Harreld (a) T Energy Related Activities, Inc. Name and Principal Address (b) Position -------------------------------------------- Robert H. Haubein D Charles D. McCrary D Jerry L. Stewart D,VP Anthony J. Topazi D,P Art P. Beattie VP Earl B. Parsons, III VP Tommy Chisholm (a) S Carson B. Harreld (a) T Alabama Synfuel Energy, Inc. Name and Principal Address (b) Position -------------------------------------------- Robert H. Haubein D Charles D. McCrary D Jerry L. Stewart D,VP Anthony J. Topazi D,P Art P. Beattie VP Tommy Chisholm (a) S Carson B. Harreld (a) T Klondike Development LLC Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) P, CEO Carson B. Harreld CFO,T Tommy Chisholm S Southern Power Company Member 16
ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections. ------------------------------------------------------------------------ Applicable Exemption Rule Name of Officer Name and Location Position Held in Rule No. 70 or Director of Financial Institution Financial Institution Subdivision --------------- ------------------------ -------------------- -------------------- C. LeDon Anchors Regions Bank of Okaloosa County, FL Chairman of the Board (a) 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, President (c) Gus H. Bell, III SunTrust Bank, Savannah, GA Director (c) David J. Cooper SouthTrust Bank, Birmingham, AL Director (c) Archie H. Davis The Savannah Bancorp, Savannah, GA President, Chief Executive Officer (c) The Savannah Bank N.A., Savannah, GA Chief Executive Officer (c) Bryan Bank & Trust, Richmond Hill, GA Director (c) H. Allen Franklin SouthTrust Corporation, Birmingham, AL Director (a);(c);(d);(e);(f) Michael D. Garrett Hancock Bank, Gulfport, MS Director (c) L. G. Hardman III nBank.Corp., Commerce, GA Chairman of the Board of Directors and Chief Executive Officer (c);(g) First National Bank of Commerce, Chairman of the Commerce, GA Board of Directors (c);(g) Charles D. McCrary AmSouth Bancorporation, Director (a);(c);(e);(f) Birmingham, AL AmSouth Bank, Birmingham, AL Director (a);(c);(e);(f) Anthony R. James SunTrust Bank, Savannah, GA Director (c);(f) Donald M. James SouthTrust Corporation, Birmingham, AL Director (a) Carl E. Jones, Jr. Regions Financial Corporation, Chairman of the Board of Birmingham, AL Directors, President, Chief Executive Officer (c) Bobby J. Kerley Barbour County Bank, Eufaula, AL Director (f) James R. Lientz, Georgia Banking Company, Atlanta, GA Director (c) FCB Financials, Savannah, GA Director (c) Wallace D. Malone, Jr. SouthTrust Corporation, Birmingham, AL Chairman of the Board of Directors and Chief Executive Officer (c) Mayer Mitchell The Banc Corporation, Birmingham, AL Director (c) William V. Muse SouthTrust Bank, Birmingham, AL Director (c)
17
ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections. (Continued) ------------------------------------------------------------------------------------- Applicable Excemption Rule Name of Officer Name and Location Position Held in Rule No. 70 or Director of Financial Institution Financial Institution Subdivision --------------- ------------------------ --------------------- ---------------- C. Dowd Ritter, III AmSouth Bancorporation, Birmingham, AL Chairman, Chief Executive Officer (c) AmSouth Bank, Birmingham, AL Chairman, Chief Executive Officer (c) George A. Schloegel Hancock Bank - Mississippi, Gulfport, MS Director, Chief Executive Officer and President (c) Hancock Holding Company, Gulfport, MS Vice Chairman of the Board of Directors (c) Hancock Bank - Louisiana, Baton Rouge Director (d) Louisiana Gerald St. Pe' Merchants & Marine Bank, Pascagoula, MS Director (a) Joseph K. Tannehill Regions Bank, Panama City, FL Director (c) Arnold M. Tenenbaum First Union National Bank of Georgia, Director (c) Atlanta, GA First Union National Bank of Savannah, Director (c) Savannah, GA Gene Warr Coast Community Bank, Biloxi, MS Director (c) E. Jenner Wood, III SunTrust Bank of Georgia, Atlanta, GA Chairman, President (c) Atlanta, GA and Chief Executive Officer James W. Wright First Tuskegee Bank, Montgomery, AL Chairman of the Board of Directors and Chief Executive Officer (c)
18 ITEM 6. EXECUTIVE COMPENSATION. PART III. ------------------------------------------ (a) Summary Compensation Tables. The following tables set forth information concerning any Chief Executive Officer and the four most highly compensated executive officers for SCS, Southern LINC and Southern Nuclear serving as of December 31, 2001, 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 2002 Annual Meeting 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, 2001. SOUTHERN is incorporated by reference to "Summary Compensation Table" in SOUTHERN's definitive Proxy Statement relating to the 2002 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 19
SCS SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Restricted Underlying Term and Other Annual Stock Stock Incentive All Other Principal Compensation Awards Options Payouts Compensation Position Year Salary($) Bonus($) ($) ($)1 (Shares) ($)2 ($)3 - --------------------------------------------------------------------------------------------------------------------------------- H. Allen Franklin 2001 855,969 1,867,320 2,770 648,863 497,790 - 44,786 President, Chief 2000 655,806 1,014,696 8,305 - 83,354 201,760 34,902 Executive Officer, 1999 603,658 126,000 31,023 - 71,153 375,137 32,654 Director Charles D. McCrary 2001 391,647 438,652 91,403 - 92,338 - 118,975 Executive 2000 335,995 335,247 8,515 - 29,201 - 16,342 Vice President 1999 317,616 57,646 10,701 - 13,865 226,439 15,698 Gale E. Klappa 2001 321,052 410,810 9,303 - 79,319 - 17,663 Executive Vice 2000 284,015 273,165 8,812 - 24,602 - 15,543 President 1999 - - - - - - - G. Edison Holland 2001 333,539 324,022 7,021 - 68,071 - 49,827 Executive Vice 2000 - - - - - - - President 1999 - - - - - - - Dwight H. Evans 2001 326,876 296,139 51,963 - 91,299 - 67,664 Executive Vice 2000 - - - - - - - President 1999 - - - - - - - W. Paul Bowers 2001 273,758 273,630 3,072 - 51,740 - 39,542 Executive Vice 2000 168,077 175,686 116 - 18,236 - 11,108 President 1999 - - - - - - -
___________________ 1 The amount for Mr. Franklin reflects the value of the grant of restricted stock units on the date granted. The restricted stock units vested on April 2, 2001 and were transferred to SOUTHERN's Deferred Compensation Plan. 2 Payouts made in 2000 and 2001 for the four-year performance periods ending December 31, 1999 and 2000, respectively. 3 SCS contributions in 2001 to the Employee Savings Plan (ESP), Employee Stock Ownership Plan (ESOP), non-pension related accruals under the Supplemental Benefit Plan (SBP), and tax sharing benefits paid to participants who elected receipt of dividends on SOUTHERN's common stock held in the ESP are as follows:-
Name ESP ESOP SBP ESP Tax Sharing Benefit -------- ---- --- --- ------------------------ H. Allen Franklin $6,853 $764 $37,168 $2,620 Charles D. McCrary 5,958 764 12,253 - Gale E. Klappa 7,650 764 9,249 - G. Edison Holland 6,853 764 9,861 721 Dwight H. Evans 6,853 764 10,047 - W. Paul Bowers 5,958 764 8,440 -
In 2001, this amount includes for Messrs. Evans, Holland and Bowers additional incentive compensation of $50,000, $31,628 and $24,380, respectively. 20
Southern LINC SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Underlying Term and Other Annual Stock Incentive All Other Principal Compensation Options Payouts Compensation Position Year Salary($) Bonus($) ($)4 (Shares) ($)2 ($)3 ------------------------------------------------------------------------------------------------------------------------------ Robert G. Dawson 2001 245,269 197,310 2,774 54,900 - 13,652 President, Chief 2000 235,091 118,760 9,297 20,431 78,507 13,188 Executive Officer, 1999 222,232 204,473 5,840 8,014 94,837 11,931 Director R. Craig Elder 2001 153,433 98,373 - 19,007 - 8,127 Vice President, 2000 139,789 68,562 - 5,809 16,966 7,438 Treasurer 1999 126,247 93,996 - 3,596 20,169 6,931 Rodney H. Johnson 2001 120,786 58,915 - 7,703 - 3,632 Vice President 2000 113,927 40,799 2,310 3,971 9,040 2,679 1999 100,894 75,115 1,934 - 10,748 1,636 Julie T. Pigott 2001 120,786 58,915 - 7,703 - 6,463 Vice President 2000 101,081 40,799 - 3,971 9,093 5,622 1999 100,796 74,831 - - 10,827 5,406
______________________ 1 Tax reimbursement by Southern LINC on certain personal benefits. 2 Payouts made in 2000 and 2001 for the four-year performance periods ending December 31, 1999 and 2000, respectively. 3 In 2001, Southern LINC's contributions to the ESP, ESOP, non-pension related accruals under the SBP and tax sharing benefits paid to participants who elected receipt of dividends on SOUTHERN's common stock held in the ESP are as follows:-
ESP ESOP SBP ESP Tax Sharing Benefit --- ---- --- ------------------------ Robert G. Dawson $6,853 $764 $6,035 $2,604 R. Craig Elder 6,624 764 739 - Rodney H. Johnson 2,726 764 142 - Julie T. Pigott 5,442 764 257 -
21
Southern Nuclear SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Underlying Term and Other Annual Stock Incentive All Other Principal Compensation Options Payouts Compensation Position Year Salary($) Bonus($) ($)7 (Shares) ($)2 ($)3 -------------------------------------------------------------------------------------------------------------------------- W. G. Hairston, III 2001 414,594 370,798 1,583 96,135 - 22,522 President and Chief 2000 388,195 366,074 11,581 42,172 - 21,179 Executive Officer 1999 366,897 66,601 1,615 20,895 311,562 20,285 Jack D. Woodard 2001 327,079 267,169 8,172 83,534 - 16,212 Executive Vice 2000 309,806 267,952 1,783 27,076 - 14,928 President 1999 280,528 62,951 1,756 12,388 166,466 14,789 David N. Morey 2001 208,950 140,074 8,046 48,844 - 11,099 Vice President 2000 200,626 140,717 1,104 17,379 - 10,695 1999 193,000 32,045 1,316 6,948 111,258 10,335 H. L. Sumner, Jr. 2001 199,067 137,354 6,184 42,248 - 10,516 Vice President 2000 190,529 137,676 117 14,453 - 1,836 1999 182,244 29,401 90 6,572 97,722 1,337 James B. Beasley, Jr. 2001 194,302 136,055 3,911 37,727 - 13,967 Vice President 2000 185,071 136,214 7,802 14,074 - 10,635 1999 175,740 28,667 11,643 6,309 83,916 9,134
_____________________ 1 Tax reimbursement by Southern Nuclear on certain personal benefits. 2 Payouts made in 2000 for the four-year performance period ending December 31, 1999. 3 Southern Nuclear contributions to the ESP, ESOP, non-pension related accruals under the SBP, and tax sharing benefits paid to participants who elected receipt of dividends on SOUTHERN's common stock held in the ESP are provided in the following table:
ESP ESOP SBP ESP Tax Sharing Benefit --- ---- --- ----------------------- William G. Hairston, III $6,853 $764 $14,905 $ - Jack D. Woodard 5,958 764 9,490 - David N. Morey 6,853 764 3,482 - H. L. Sumner, Jr. 6,853 764 2,899 - James B. Beasley, Jr. 6,841 764 2,586 3,776
22 STOCK OPTION GRANTS IN 2001 --------------------------- 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, 2001. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2002 Annual Meeting of Shareholders. SAVANNAH is incorporated by reference to page number III-4 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2001. SOUTHERN is incorporated by reference to "Option Grants in 2001" under STOCK OPTIONS in SOUTHERN's definitive Proxy Statement relating to the 2002 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 Granted10 Fiscal Year11 ($/Sh)3 Date3 Present Value($)3 ------------------------------------------------------------------------------------------------------------------------------ SCS H. Allen Franklin 298,644 2.19 19.0762 02/16/2011 1,583,019 199,146 1.46 22.4250 04/16/2011 1,055,474 Charles D. McCrary 37,725 0.28 19.0762 02/16/2011 199,968 54,613 0.40 22.4250 04/16/2011 289,449 Gale E. Klappa 34,074 0.25 19.0762 02/16/2011 180,616 46,245 0.34 22.4250 04/16/2011 245,099 Dwight H. Evans 33,037 0.24 19.0762 02/16/2011 175,119 58,262 0.43 22.4250 04/16/2011 308,789 G. Edison Holland, Jr. 33,159 0.24 19.0762 02/16/2011 175,766 34,912 0.26 22.4250 04/16/2011 185,034 W. Paul Bowers 25,561 0.19 19.0762 02/16/2011 135,491 26,179 0.19 22.4250 04/16/2011 138,749
1 Under the terms of the Omnibus Incentive Compensation Plan, stock option grants were made on February 16, 2001 and April 16, 2001 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's common stock on the date granted. Options may be transferred to certain family members, family trusts, and family limited partnerships. The number of options granted on February 16, 2001 and the exercise price thereof were adjusted after the spin-off of Mirant Corporation from SOUTHERN under the antidilution provisions of the plan such that the options had the same aggregate intrinsic value on the day of the spin-off as the day before. 2 A total of 13,623,507 stock options were granted in 2001. 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's common stock at a future date. Significant assumptions are shown below:
Discount for forfeiture risk: Grant Risk-free Dividend before after Date Volatility rate of return opportunity Term vesting vesting ------------------------------------------------------------------------------------------------------------------- 2/16/01 27.34% 5.10 50% 10 7.79% 12.45% 4/16/01 26.11% 5.14 50% 10 7.79% 11.77% ------------------------------------------------------------------------------------------------------------------- These assumptions reflect the effects of cash dividend equivalents paid to participants under the Omnibus Incentive Compensation Plan assuming targets are met.
23
STOCK OPTION GRANTS IN 2001 (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 Granted13 Fiscal Year14 ($/Sh)3 Date 3 Present Value($)3 ----------------------------------------------------------------------------------------------------------------------------- Southern LINC Robert G. Dawson 25,898 0.19 19.0762 02/16/2011 137,277 29,002 0.21 22.4250 04/16/2011 153,711 R. Craig Elder 10,165 0.07 19.0762 02/16/2011 53,881 8,842 0.06 22.425 04/16/2011 46,863 Rodney H. Johnson 6,381 0.05 19.0762 02/16/2011 33,824 1,322 0.01 22.425 04/16/2011 7,007 Julie T. Pigott 6,381 0.05 19.0762 02/16/2011 33,824 1,322 0.01 22.425 04/16/2011 7,007 Southern Nuclear William G. Hairston, III 54,988 0.40 19.0762 02/16/2011 291,527 41,137 0.30 22.4250 04/16/2011 218,026 Jack D. Woodard 34,584 0.25 19.0762 02/16/2011 183,319 48,950 0.36 22.4250 04/16/2011 259,435 David N. Morey 22,071 0.16 19.0762 02/16/2011 116,991 26,773 0.20 22.4250 04/16/2011 141,897 H. L. Sumner, Jr. 21,038 0.15 19.0762 02/16/2011 111,516 21,210 0.16 22.4250 04/16/2011 112,413 James B. Beasley, Jr. 17,976 0.13 19.0762 02/16/2011 95,285 19,751 0.15 22.4250 04/16/2011 104,680
1 Under the terms of the Omnibus Incentive Compensation Plan, stock option grants were made on February 16, 2001 and April 16, 2001 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's common stock on the date granted. Options may be transferred to certain family members, family trusts, and family limited partnerships. The number of options granted on February 16, 2001 and the exercise price thereof were adjusted after the spin-off of Mirant Corporation from SOUTHERN under the antidilution provisions of the plan such that the options had the same aggregate intrinsic value on the day of the spin-off as the day before. 2 A total of 13,623,507 stock options were granted in 2001. 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's common stock at a future date. Significant assumptions are shown below:
Discount for forfeiture risk: Grant Risk-free Dividend before after Date Volatility rate of return opportunity Term vesting vesting ------------------------------------------------------------------------------------------------------------------- 2/16/01 27.34% 5.10 50% 10 7.79% 12.45% 4/16/01 26.11% 5.14 50% 10 7.79% 11.77% -------------------------------------------------------------------------------------------------------------------
These assumptions reflect the effects of cash dividend equivalents paid to participants under the Omnibus Incentive Compensation Plan assuming targets are met. 24 AGGREGATED STOCK OPTION EXERCISES IN 2001 AND YEAR-END OPTION VALUES -------------------------------------------------------------------- Aggregated Stock Option Exercises. The following table sets forth information concerning options exercised during the year ending December 31, 2001 by the named executive officers and value of unexercised options held by them as of December 31, 2001. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2002 Annual Meeting of Shareholders. SAVANNAH is incorporated by reference to page number III-5 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2001. SOUTHERN is incorporated by reference to "Aggregated Stock Option Exercises in 2001 and Year-End Option Values" under OPTION EXERCISES in SOUTHERN's definitive Proxy Statement relating to the 2002 annual meeting of stockholders.
Number of UnexercisedValue of Unexercised Options at Fiscal In-the-Money Options at Year-End (#) Fiscal Year-End($)1 Shares Acquired Value Name on Exercise (#) Realized($)17 Exercisable Unexercisable Exercisable Unexercisable ------------------------------------------------------------------------------------------------------------------------------- SCS H. Allen Franklin 163,074 2,035,273 307,206 625,548 3,208,190 3,741,835 Charles D. McCrary 44,007 511,851 81,824 130,511 833,171 788,743 Gale E. Klappa 26,216 314,347 80,722 112,355 849,587 678,499 Dwight H. Evans 45,736 441,615 95,028 125,497 1,010,284 728,940 G. Edison Holland 38,297 419,217 35,004 99,611 325,235 637,703 W. Paul Bowers 10,570 104,401 45,004 74,783 459,597 475,106 Southern LINC Robert G. Dawson 4,780 54,312 56,497 80,717 580,907 514,148 R. Craig Elder 18,520 160,323 0 27,042 0 171,468 Rodney H. Johnson - - 1,324 10,350 14,138 72,166 Julie T. Pigott - - 1,324 10,350 14,138 72,166 Southern Nuclear William G. Hairston, III - - 67,948 151,724 623,137 1,035,909 Jack D. Woodard 31,923 329,974 79,928 118,682 830,167 721,801 David N. Morey 9,589 80,195 48,783 44,101 498,823 366,045 H. L. Sumner, Jr. 4,237 51,242 40,719 60,987 417,219 386,876 James B. Beasley, Jr. 6,869 56,728 34,245 55,927 347,688 357,933
1 This represents the excess of the fair market value of SOUTHERN's common stock of $25.35 per share, as of December 31, 2001, 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, 2001. 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. 25 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, 2001. 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, 2001. SOUTHERN is incorporated by reference to the Stock Ownership Table in SOUTHERN's definitive Proxy Statement relating to the 2002 annual meeting of stockholders. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2002 Annual Meeting of Shareholders. SAVANNAH is incorporated by reference to page number III-9 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2001.
Name of Directors or Nominees and Number of Shares Executive Officers Title of Class Beneficially Owned (1)(2) ------------------ -------------- ------------------ SCS H. Allen Franklin SOUTHERN Common 489,080 David M. Ratcliffe SOUTHERN Common 194,402 Charles D. McCrary SOUTHERN Common 112,440 William P. Bowers SOUTHERN Common 55,857 Dwight H. Evans SOUTHERN Common 120,605 G. Edison Holland, Jr SOUTHERN Common 38,366 Gale E. Klappa SOUTHERN Common 103,753 The directors, nominees and executive officers of SCS as a Group SOUTHERN Common 1,337,777 shares Southern LINC Robert G. Dawson SOUTHERN Common 82,087 H. Allen Franklin SOUTHERN Common 489,080 Gale E. Klappa SOUTHERN Common 103,753 Charles D. McCrary SOUTHERN Common 112,440 David M. Ratcliffe SOUTHERN Common 194,402 R. Craig Elder SOUTHERN Common 2,742 Rodney H. Johnson SOUTHERN Common 4,220 Julie T. Pigott SOUTHERN Common 2,632 The directors, nominees and executive officers of Southern LINC as a Group SOUTHERN Common 991,356 shares
26
ITEM 6. OFFICERS AND DIRECTORS. ----------------------------------- PART III. --------- Name of Directors or Nominees and Number of Shares Executive Officers Title of Class Beneficially Owned (1)(2) ------------------ -------------- ------------------ Southern Nuclear H. Allen Franklin SOUTHERN Common 489,080 William G. Hairston, III SOUTHERN Common 117,334 Charles D. McCrary SOUTHERN Common 112,440 David M. Ratcliffe SOUTHERN Common 194,402 James B. Beasley, Jr. SOUTHERN Common 52,338 David N. Morey SOUTHERN Common 60,649 H. L. Sumner, Jr. SOUTHERN Common 43,913 Jack D. Woodard SOUTHERN Common 111,548 The directors, nominees and executive officers of Southern Nuclear as a Group SOUTHERN Common 1,181,705 shares
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 and/or investment power with respect to a security (i.e., the power to dispose of, or to direct the disposition of, a security). (2) The shares shown include shares of common stock of which certain directors and officers have the right to acquire beneficial ownership within 60 days pursuant to the Executive Stock Option Plan, as follows: Mr. Beasley, 47,671 shares; Mr. Bowers, 63,157 shares; Mr. Dawson, 75,922 shares; Mr. Elder, 6,457 shares; Mr. Evans, 119,808 shares; Mr. Fanning, 43,655 shares; Mr. Franklin, 451,840 shares; Mr. Garrett, 75,498 shares; Mr. Hairston, 108,557 shares; Mr. Haubein, 90,145 shares; Mr. Haynes, 46,512 shares; Mr. Holland, 59,615 shares; Mr. Hutchins 94,165 shares; Mr. Johnson, 4,774 shares; Mr. Klappa, 105,075 shares; Mr. McCrary, 109,823 shares; Mr. Morey, 65,320 shares; Ms. Pigott, 4,774 shares; Mr. Ratcliffe 182,791 shares; Mr. Stewart, 53,407 shares; Mr. Sumner, 55,366 shares; and Mr. Woodard, 105,758 shares. 27 ITEM 6. OFFICERS AND DIRECTORS. ----------------------------------- PART III. --------- (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 2002 Annual Meeting of Shareholders. SAVANNAH is incorporated by reference to page number III-10 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2001. (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 2002 annual meeting of stockholders. Also, ALABAMA, GEORGIA, GULF, and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2002 Annual Meeting of Shareholders. SAVANNAH is incorporated by reference to page number III-8 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2001. 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, and Southern LINC, 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 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 the agreement. A SOUTHERN change in control is defined under the agreements as: * acquisition of at least 20 percent of the SOUTHERN's stock, * a change in the majority of the members of the 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 February 28, 1998, SOUTHERN and GEORGIA entered into a Deferred Compensation Agreement with Mr. Franklin. On the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its subsidiaries, Mr. Franklin will receive the cash value of the number of shares of SOUTHERN common stock that could have been purchased for $500,000 on February 28, 1998, and on which dividends were reinvested throughout the five-year period. If certain performance goals are met, Mr. Franklin also will receive the estimated income tax expense on the compensation. Mr. Franklin may elect to defer receipt of the award until termination of employment. GEORGIA assigned this agreement to SCS effective July 8, 1999. On February 23, 1998, SOUTHERN and Southern Nuclear entered into a Deferred Compensation Agreement with Mr. Woodard. On the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its subsidiaries, Mr. Woodard will receive the cash value of the number of shares of SOUTHERN common stock that could have been purchased for $200,000 on February 23, 1998, and on which dividends were reinvested throughout the five-year period. If certain performance goals are met, Mr. Woodard also will receive the estimated income tax expense on the compensation. Mr. Woodard may elect to defer receipt of the award until termination of employment. 28 On February 23, 1998, SOUTHERN and Southern Nuclear entered into a Deferred Compensation Agreement with Mr. Hairston. On the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its subsidiaries, Mr. Hairston will receive the cash value of the number of shares of SOUTHERN common stock that could have been purchased for $250,000 on February 23, 1998, and on which dividends were reinvested throughout the five-year period. If certain performance goals are met, Mr. Hairston also will receive the estimated income tax expense on the compensation. Mr. Hairston may elect to defer receipt of the award until termination of employment. (f) Rights to indemnity. Incorporated by reference are the by-laws, for the companies of the SOUTHERN system, contained herein as Exhibits. 29 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. ------------------------------------------ (1) Expenditures, disbursements or payments, directly or indirectly, in money, goods or services, to or for the account of any political party, candidate for public office or holder of such office, or any committee or agent thereof.
Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) --------------- -------------------------------- ------- ------- --------- 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($) --------------- -------------------------------- ------- --------------------- --------- ALABAMA Business Council of Alabama Dues & Support 930,426,506,520 161,995 539,549,563 Edison Electric Institute Dues 426,921,930 564,178 National Association of Manufacturers Dues 930 17,000 Nature Conservancy of Alabama Dues & Support 921 100 Nuclear Energy Institute Dues 524 417,926 * Public Affairs Research Council of Alabama Dues & Support 930,426 12,510 GEORGIA Central Atlanta Progress Dues 930 26,750 Cobb County Convention and Visitors Bureau Dues 930 5,000 Edison Electric Institute Dues 426,930 793,817 Georgia Conservancy Support 426 5,000 n/a 50,000 ** Georgia Council on Economic Education Dues n/a 75,000 ** National Association of Manufacturers Dues 930 12,000 Nature Conservancy Support 426 5,000 n/a 255,000 ** Nuclear Energy Institute Dues 524,426 484,122 *** Regional Business Coalition Dues 930 6,000
* This amount was paid by Southern Nuclear and billed to ALABAMA. ** Georgia Power Foundation. *** This amount, which excludes dues billed to joint owners of Plants Hatch and Vogtle, was paid by Southern Nuclear and billed to GEORGIA. 30
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued) Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) --------------- -------------------------------- ------- ------- --------- GULF Economic Development Council - Bay County Dues & Support 912 20,000 Economic Development Council - Okaloosa County Dues & Support 912 16,050 Economic Development Council - Walton County Support 912 15,000 Edison Electric Institute Dues 426,930 136,502 Enterprise Florida Support 912 41,000 Florida Chamber of Commerce Dues 912 33,100 Florida's Great Northwest Support 912 100,000 Foundation for the Future Support 930 25,000 University of West Florida Support 912 36,000 T.E.A.M. Santa Rosa - Council of Economic Activity Dues & Support 912 11,950 Washington County Chamber of Commerce Support 912 10,470 Other Economic Development Councils/ Activity Groups (7 Beneficiaries) Dues & Support 426,912,930 35,000 MISSISSIPPI Business and Industry Political Education Committee Dues 426 500 Center for Public Utilities at New Mexico State University Dues 930 2,500 East Mississippi Business Development Corporation Dues 930 10,000 Edison Electric Institute Dues 930 103,557 Foundation for Education/Economic Development Gold Sponsorship Due 426 3,000 Mississippi Gulf Coast Chamber of Commerce Dues 930 4,095 Mississippi Gulf Coast Economic Development Council Dues 426,930 2,000 Mississippi Manufacturers Association Dues 426,930 2,100 Mississippi Society of Washington Dues 930 1,000 Mississippi Wildlife Federation Dues 426 6,000 Retail Association of Mississippi Dues 426,930 4,000 Wildlife Rehabilitation and Nature Preservation Society, Inc Dues 426 500 Wolf River Conservation Dues 426 3,000
31
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($) --------------- -------------------------------- ------- ------- --------- SAVANNAH Business, Education and Technology Alliance of Southeast Georgia Dues 930 1,000 Economic Opportunity Authority Support 426 14,000 Edison Electric Institute Dues 426,930 59,688 Georgia Conservancy Support 426 1,000 Georgia Council on Economic Education Support 426 2,000 Georgia Economic Developers Association Dues 930 1,000 Georgia Municipal Association Dues 930 500 Nature Conservancy Support 426 5,000 Savannah Tree Foundation Support 426 5,000 Tourism Leadership Council Membership 930 500 Other Economic Development Councils/ Activity Groups (4 Beneficiaries) Membership & Dues 930 1,194
32 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS. ------------------------------------------------------------ PART I. ------
In Effect on Dec. 31 Transactions Serving Company Receiving Company Compensation Contract (Yes or No) (1) (2) (3) (4) (5) (6) ----------------------------------------------------------------------------------------------------------------------- (Note) (Note) Southern LINC (Note) (Note) Yes (Note) (Note) Southern Management (Note) (Note) Yes Sublease of railcars ALABAMA SAVANNAH $42,355 Yes Sublease of railcars GEORGIA SAVANNAH $234,471 Yes Sublease of railcars MISSISSIPPI ALABAMA $1,004,154 Yes Sublease of railcars MISSISSIPPI GEORGIA $1,196,741 Yes Sublease of railcars SAVANNAH GEORGIA $189,000 Yes Sublease of railcars SAVANNAH GULF $6,266 Yes
Note: Southern LINC and Southern Management have agreements with SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH pursuant to which Southern LINC and Southern Management reimburse each of such companies for the full cost of services, personnel and facilities provided to Southern LINC and Southern Management. Pursuant to such agreements, during 2001 the total reimbursements to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH from Southern LINC were $41,395,821; $1,694,528; $1,140,693; $208,276; $136,229; and $18,916, respectively; and from Southern Management were $2,369,357; $476,812; $586,250; $8,217; $384; and $10,758, respectively. Part II. ------- None. Part III. -------- None. 33
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES Part I(b) Key terms: FUCO means Foreign Utility Company EWG means Exempt Wholesale Generator SPS means Special Purpose Subsidiary IS means Intermediate Subsidiary ---------------------------------------------------------------------------------------------------------------------------------- EWG, OWNERSHIP % OWNED SOUTHERN COMPANY'S DIRECT COMPANY FUCO, OR INDIRECT INVESTMENT IN SPS THIS ENTITY IS --------------------------------------------------------------------------------------------------------------------------------- SE Finance Capital Corporation (See Note 1) SPS Southern Company 100% - SE Finance Company, Inc. (See Note 1) IS SE Finance Capital 100% - Corporation EPZ Lease, Inc. IS SE Finance Company, 100% - Inc. EPZ Lease, LLC IS EPZ Lease, Inc. 99% - SE Finance Company, 1% Inc. EPZ Lease Holding A, LLC IS EPZ Lease,LLC 99% - EPZ Lease, Inc. 1% EPZ Lease Holding B, LLC IS EPZ Lease, LLC 99% - EPZ Lease, Inc. 1% EPZ Lease Holding C, LLC IS EPZ Lease, LLC 99% - EPZ Lease, Inc. 1% EPZ Lease Trust A FUCO EPZ Lease Holding A, 100% See Note 2 LLC EPZ Lease Trust B FUCO EPZ Lease Holding B, 100% See Note 2 LLC EPZ Lease Trust C FUCO EPZ Lease Holding C, 100% See Note 2 LLC Southern Company Capital Funding, Inc. IS SOUTHERN 100% - Southern Company Capital Trust I SPS Southern Company 100% - Capital Funding, Inc. Southern Company Capital Trust II SPS Southern Company 100% - Capital Funding, Inc. Southern Company Capital Trust III SPS Southern Company 100% - Capital Funding, Inc. Southern Company Capital Trust IV SPS Southern Company 100% - Capital Funding, Inc. Southern Company Capital Trust V SPS Southern Company 100% - Capital Funding, Inc.
34
COMPANY EWG, OWNERSHIP % OWNED SOUTHERN COMPANY'S DIRECT FUCO, OR INDIRECT INVESTMENT IN SPS THIS ENTITY IS ---------------------------------------------------------------------------------------------------------------------------------- Dutch Gas Lease, Inc. IS SE Finance Company, 100% - Inc. Dutch Gas Lease, LLC IS Dutch Gas Lease, Inc. 99% - SE Finance Company, Inc. 1% Dutch Gas Lease Holding A, L.L.C. IS Dutch Gas Lease, L.L.C. 100% - Dutch Gas Lease Trust A FUCO Dutch Gas Lease 100% See Note 2 Holding A, L.L.C. Dutch Gas Lease Holding B, L.L.C. IS Dutch Gas Lease, 100% - L.L.C. Dutch Gas Lease Trust B FUCO Dutch Gas Lease 100% See Note 2 Holding B. L.L.C. Dutch Gas Lease Holding C, L.L.C. IS Dutch Gas Lease, 100% - L.L.C. Dutch Gas Lease Trust C FUCO Dutch Gas Lease 100% See Note 2 Holding C, L.L.C. NUON Lease, Inc. IS SE Finance Company, 100% - Inc. NUON Lease Holding D, L.L.C. IS NUON Lease, Inc. 100% - NUON Lease Trust D FUCO NUON Lease Holding D, 100% See Note 2 L.L.C. NUON Lease Holding E, L.L.C. IS NUON Lease, Inc. 100% - NUON Lease Trust E FUCO NUON Lease Holding E, 100% See Note 2 L.L.C. NUON Lease Holding F, L.L.C. IS NUON Lease, Inc. 100% - NUON Lease Trust F FUCO NUON Lease Holding F, 100% See Note 2 L.L.C. GAMOG Lease, Inc. IS SE Finance Company, 100% - Inc. GAMOG Lease Holding G, L.L.C. IS Gamog Lease, Inc. 100% - GAMOG Lease Trust G FUCO Gamog Lease Holding G, 100% See Note 2 L.L.C. GAMOG Lease Holding H, L.L.C. IS Gamog Lease, Inc. 100% - GAMOG Lease Trust H FUCO Gamog Lease Holding H, 100% See Note 2 L.L.C. GAMOG Lease Holding I, L.L.C. IS Gamog Lease, Inc. 100% - GAMOG Lease Trust I FUCO Gamog Lease Holding I, 100% See Note 2 L.L.C.
35
COMPANY EWG, OWNERSHIP % OWNED SOUTHERN COMPANY'S DIRECT FUCO, OR INDIRECT INVESTMENT IN SPS THIS ENTITY IS ---------------------------------------------------------------------------------------------------------------------------------- Southern Company-Florida LLC EWG Southern Power 100% $102,546,743 Company Southern Company Holdings, Inc. SPS Southern Company 100% - ----------------------------------------------------------------------------------------------------------------------------------
SOUTHERN's aggregate investment as defined under Rules 53 and 58 in EWGs and FUCOs, at December 31, 2001 was $102,546,743. NOTE 1 ------ SOUTHERN has executed limited keep-well commitments whereby SOUTHERN would be required to make capital contributions to Southern Energy Finance Capital Corp. or to Southern Energy Finance Company, Inc. in the event of a shortfall in the scheduled debt service resulting from certain changes in the payments due from SOUTHERN under the Southern Company Income Tax Allocation Agreement. The maximum potential capital contribution required under these commitments is the unamortized balance of the related loans, which totaled approximately $388.4 million as of December 31, 2001. NOTE 2 ------ As discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727) relating to the spin-off of Mirant Corporation (Mirant), SOUTHERN and Mirant reorganized certain energy-related and FUCO activities and Mirant completed a tax-free distribution to SOUTHERN of these activities on March 5, 2001 (the "Mini-Spin"). On April 2, 2001, SOUTHERN completed the spin-off of its remaining ownership interest in Mirant to SOUTHERN's shareholders. Therefore, the four indirect subsidiaries (EPZ Lease, Inc., Dutch Gas Lease, Inc., GAMOG Lease, Inc. and NUON Lease, Inc.) obtained through the Mini-Spin are the only remaining FUCO or EWG investments held by SOUTHERN. Although it now owns all of the equity in these companies as a result of the Mini-Spin, SOUTHERN has no direct or indirect investment or any aggregate investment within the meaning of Rule 53 in these FUCOs. SOUTHERN's only other EWG investment is Southern Company Florida LLC (SCF), which was formed in January 2001. At December 31, 2001, SOUTHERN's aggregate investment in SCF was $102,546,743, including $73 million in guarantees by SOUTHERN. 36 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES PART I(c) COMPANIES DEBT TO EQUITY EARNINGS ------------------------------------------------------------------------------- SE Finance Capital Corporation 2.46 $37,009,360 SE Finance Company, Inc. 0.58 $44,812,950 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 $29,423 ------------------------------------------------------------------------------- PART I(d) None. PART II Exhibits G and H submitted with this filing, are being incorporated by reference. 37 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES PART III SOUTHERN's aggregate investment in EWGs and FUCOs at December 31, 2001 is as follows:
Total 1 Equity 1 Debt Guarantees(2) -------------- --------------- ------------- -------------- Investment In EWGs & FUCOs (A) $102,546,743 $29,546,743 $- $73,000,000 ------------------------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------------------- Investment in SOUTHERN's Investment -------------------------------------------------------------------------- Domestic Public-Utility Subs Total Equity Debt Guarantees ----------------------------------------------------------------------------------------------------------------------- ALABAMA..........................................$2,090,676,530 $2,090,676,530 $- $- GEORGIA...........................................2,526,806,941 2,526,806,941 - - GULF................................................344,019,450 344,019,450 - - MISSISSIPPI.........................................304,946,256 304,946,256 - - SAVANNAH............................................ 67,050,145 67,050,145 - - (B) Total Domestic Public - Utility $5,333,499,322 $5,333,499,322 $- $- Subsidiaries -----------------------------------------------------------------------------------------------------------------------
RATIO A/B...................................................0.0191 (1) Following the completion of the spin-off of Mirant on April 2, 2001 and as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727) relating to the spin-off, SOUTHERN retained only four indirect subsidiaries (EPZ Lease, Inc., Dutch Gas Lease, Inc., GAMOG Lease, Inc. and NUON Lease, Inc.) that qualify as FUCOs and none that qualify as EWGs. SOUTHERN has no equity or debt investment within the meaning of Rule 53 in these four FUCO subsidiaries. (2) SOUTHERN granted performance guarantees on behalf of Southern Power and its subsidiary, Southern Company - Florida LLC (SCF) for SCF's payment obligations under construction and power purchase agreements associated with Plant Stanton in Orlando. SOUTHERN's maximum exposure is $53 million under the construction and ownership agreement and $20 million under the power purchase agreement. 38
ITEM 10 - FINANCIAL STATEMENTS AND EXHIBITS ------------------------------------------- SOUTHERN AND SUBSIDIARY COMPANIES INDEX TO FINANCIAL STATEMENTS DECEMBER 31, 2001 Page Number REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS A-1 FINANCIAL STATEMENTS: Consolidating Statement of Income for the Year Ended December 31, 2001 A-2 Consolidating Statement of Cash Flows for the Year Ended December 31, 2001 A-4 Consolidating Balance Sheet at December 31, 2001 A-6 Consolidating Statement of Capitalization at December 31, 2001 A-10 Consolidating Statement of Retained Earnings for the Year Ended December 31, 2001 A-14 Consolidating Statement of Paid-in Capital for the Year Ended December 31, 2001 A-15 Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2001 A-16 Consolidating Statements of Accumulated Other Comprehensive Income for the Year Ended December 31, 2001 A-16 Notes to Financial Statements at December 31, 2001 A-17 OTHER FINANCIAL STATEMENTS: ALABAMA consolidated with ALABAMA TRUST I, ALABAMA TRUST II and ALABAMA TRUST III A-18 Alabama Property Company (Unaudited; Not consolidated in Parent, ALABAMA) A-23 GEORGIA consolidated with PIEDMONT, GEORGIA TRUST I, GEORGIA TRUST II, GEORGIA TRUST III and GEORGIA TRUST IV A-25 GULF consolidated with GULF TRUST I, GULF TRUST II and GULF TRUST III A-28 MISSISSIPPI consolidated with MISSISSIPPI TRUST I A-34 SAVANNAH consolidated with SAVANNAH ELECTRIC TRUST I A-38 EXHIBITS A-42
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, 2001, as filed with the Federal Energy Regulatory Commission. A REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Southern Company: We have audited the consolidated balance sheet and consolidated statement of capitalization of SOUTHERN COMPANY (a Delaware corporation) and subsidiary companies as of December 31, 2001, and the related consolidated statements of income, comprehensive income, retained earnings, paid-in capital, accumulated other comprehensive income, and cash flows for the year then ended (included in the 2001 annual report on Form 10-K, which is Exhibit A-1 to this Form U5S). These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Southern Company and subsidiary companies as of December 31, 2001, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States. As explained in Note 1 to the financial statements included in the 2001 annual report on Form 10-K, effective January 1, 2001, Southern Company changed its method of accounting for derivative instruments and hedging activities. /s/ Arthur Andersen LLP Atlanta, Georgia February 13, 2002 A-1
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Operating Revenues: Retail sales $ 8,439,901 $ - $ - $ 2,747,673 Sales for resale -- Non-affiliates 1,174,208 - - 485,974 Affiliates - (643,271) - 245,189 Other revenues 540,881 (20,280) - 107,554 ------------------------------------------------------------------------------------------------------------------------------------ Total operating revenues 10,154,990 (663,551) - 3,586,390 ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Operation -- Fuel 2,577,102 - - 1,000,828 Purchased power -- Non-affiliates 717,509 (878) - 144,991 Affiliates - (625,305) - 147,967 Other 1,899,287 (35,658) 46,910 508,264 Maintenance 862,035 - - 275,510 Depreciation and amortization 1,172,991 - - 383,473 Taxes other than income taxes 535,472 - 35 214,665 ------------------------------------------------------------------------------------------------------------------------------------ Total operating expenses 7,764,396 (661,841) 46,945 2,675,698 ------------------------------------------------------------------------------------------------------------------------------------ Operating Income 2,390,594 (1,710) (46,945) 910,692 Other Income (Expense): Interest income 26,894 (105,142) 13,483 15,101 Equity in earnings of unconsolidated subsidiaries (51,884) (1,355,629) 1,342,821 4,494 Other, net 55,326 961 - (8,579) ------------------------------------------------------------------------------------------------------------------------------------ Earnings From Continuing Operations 2,420,930 (1,461,520) 1,309,359 921,708 Before Interest and Income Taxes ------------------------------------------------------------------------------------------------------------------------------------ Interest Charges and Other: Interest expense, net 557,626 (99,417) 112,031 246,436 Distributions on preferred securities of subsidiary 168,593 - - 24,775 Preferred dividends of subsidiaries 18,452 - - 15,524 ------------------------------------------------------------------------------------------------------------------------------------ Total interest charges and other, net 744,671 (99,417) 112,031 286,735 ------------------------------------------------------------------------------------------------------------------------------------ Earnings From Continuing Operations 1,676,259 (1,362,103) 1,197,328 634,973 Before Income Taxes Income taxes 557,515 (558) (64,403) 248,597 ------------------------------------------------------------------------------------------------------------------------------------ Earnings From Continuing Operations 1,118,744 (1,361,545) 1,261,731 386,376 Before Cumulative Effect of Accounting Change Cumulative effect of accounting change 770 - - 353 ------------------------------------------------------------------------------------------------------------------------------------ Earnings from Continuing Operations 1,119,514 (1,361,545) 1,261,731 386,729 Earnings from Discontinued Operations(1) 142,217 (34,874) - - ------------------------------------------------------------------------------------------------------------------------------------ Consolidated Net Income $ 1,261,731 $ (1,396,419) $ 1,261,731 $ 386,729 ==================================================================================================================================== Common Stock Data: Earnings Per Share from continuing operations - Average number of shares of common stock outstanding - Basic $1.62 Basic 689,352 Diluted $1.61 Diluted 693,544 Earnings Per Share including discontinued operations - Cash dividends paid per share of common stock $1.34 Basic $1.83 Diluted $1.82 (Continued on following page)
A-2a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah SEGCO Operating Revenues: Retail sales $ 4,349,312 $ 584,591 $ 489,153 $ 269,172 $ - Sales for resale -- Non-affiliates 366,085 82,252 204,623 8,884 - Affiliates 99,411 27,256 85,652 3,205 161,740 Other revenues 150,986 31,104 16,637 2,591 1,648 ------------------------------------------------------------------------------------------------------------------------------------ Total operating revenues 4,965,794 725,203 796,065 283,852 163,388 ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Operation -- Fuel 939,092 200,633 277,946 50,796 104,028 Purchased power -- Non-affiliates 442,196 65,585 41,254 23,147 - Affiliates 329,232 40,660 53,990 49,939 - Other 810,043 117,394 134,845 50,607 19,641 Maintenance 430,413 60,193 56,153 19,886 17,065 Depreciation and amortization 600,631 68,218 54,077 25,951 8,836 Taxes other than income taxes 202,483 55,261 44,966 13,984 1,018 ------------------------------------------------------------------------------------------------------------------------------------ Total operating expenses 3,754,090 607,944 663,231 234,310 150,588 ------------------------------------------------------------------------------------------------------------------------------------ Operating Income 1,211,704 117,259 132,834 49,542 12,800 Other Income (Expense): Interest income 4,264 1,258 369 173 - Equity in earnings of unconsolidated subsidiaries 4,178 59 (526) 48 - Other, net (2,816) 2,651 (6) (734) 1,351 ------------------------------------------------------------------------------------------------------------------------------------ Earnings From Continuing Operations 1,217,330 121,227 132,671 49,029 14,151 Before Interest and Income Taxes ------------------------------------------------------------------------------------------------------------------------------------ Interest Charges and Other: Interest expense, net 183,879 25,034 23,568 12,517 2,704 Distributions on preferred securities of subsidiary 59,104 6,477 2,712 2,740 - Preferred dividends of subsidiaries 670 217 2,041 - - ------------------------------------------------------------------------------------------------------------------------------------ Total interest charges and other, net 243,653 31,728 28,321 15,257 2,704 ------------------------------------------------------------------------------------------------------------------------------------ Earnings From Continuing Operations 973,677 89,499 104,350 33,772 11,447 Before Income Taxes Income taxes 363,599 31,260 40,533 11,731 3,942 ------------------------------------------------------------------------------------------------------------------------------------ Earnings From Continuing Operations 610,078 58,239 63,817 22,041 7,505 Before Cumulative Effect of Accounting Change Cumulative effect of accounting change 257 68 70 22 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from Continuing Operations 610,335 58,307 63,887 22,063 7,505 Earnings from Discontinued Operations(1) - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Consolidated Net Income $ 610,335 $ 58,307 $ 63,887 $ 22,063 $ 7,505 ==================================================================================================================================== Common Stock Data: Earnings Per Share from continuing operations - Average number of shares of common stock outstanding - Basic $1.62 Basic 689,352 Diluted $1.61 Diluted 693,544 Earnings Per Share including discontinued operations - Cash dividends paid per share of common stock $1.34 Basic $1.83 Diluted $1.82 (Continued on following page)
A-2b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Mirant(2) Funding Power Holdings Operating Revenues: Retail sales $ - $ - $ - $ - Sales for resale -- Non-affiliates - - 26,390 - Affiliates - - 2,906 1,299 Other revenues - 0 5 80,908 ---------------------------------------------------------------------------------------------------------------------------------- Total operating revenues - - 29,301 82,207 ---------------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Operation -- Fuel - - 3,779 - Purchased power -- Non-affiliates - - 1,214 - Affiliates - - 3,517 - Other 139 - 6,243 90,063 Maintenance - - 377 - Depreciation and amortization 228 - 3,291 2,530 Taxes other than income taxes - - 393 - ---------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 367 - 18,814 92,593 ---------------------------------------------------------------------------------------------------------------------------------- Operating Income (367) - 10,487 (10,386) Other Income (Expense): Interest income 12,889 16,947 78 65,667 Equity in earnings of unconsolidated subsidiaries (2,756) - - (49,085) Other, net 9,909 - 580 50,835 ---------------------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 19,675 16,947 11,145 57,031 Before Interest and Income Taxes ---------------------------------------------------------------------------------------------------------------------------------- Interest Charges and Other: Interest expense, net 5,373 16,947 427 22,252 Distributions on preferred securities of subsidiary 11,876 - - 60,909 Preferred dividends of subsidiaries - - - - ---------------------------------------------------------------------------------------------------------------------------------- Total interest charges and other, net 17,249 16,947 427 83,161 ---------------------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 2,426 - 10,718 (26,130) Before Income Taxes Income taxes (3,297) - 2,511 (76,850) ---------------------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 5,723 - 8,207 50,720 Before Cumulative Effect of Accounting Change Cumulative effect of accounting change - - - - ---------------------------------------------------------------------------------------------------------------------------------- Earnings from Continuing Operations 5,723 - 8,207 50,720 Earnings from Discontinued Operations(1) 177,091 - - - ---------------------------------------------------------------------------------------------------------------------------------- Consolidated Net Income $ 182,814 $ - $ 8,207 $ 50,720 ================================================================================================================================== (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) Includes only consolidated financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-3a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Deferred Change in Mgt Dev LINC Powercall Telecom Cash Trust ControlTrust Operating Revenues: Retail sales $ - $ - $ - $ - $ - $ - Sales for resale -- Non-affiliates - - - - - - Affiliates 2,879 13,734 - - - - Other revenues 11,910 144,614 - 13,204 - - -------------------------------------------------------------------------------------------------------------------------------- Total operating revenues 14,789 158,348 - 13,204 - - -------------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Operation -- Fuel - - - - - - Purchased power -- Non-affiliates - - - - - - Affiliates - - - - - - Other 20,817 118,517 - 11,462 - - Maintenance - 2,438 - - - - Depreciation and amortization 228 24,649 - 879 - - Taxes other than income taxes 587 1,887 - 193 - - -------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 21,632 147,491 - 12,534 - - -------------------------------------------------------------------------------------------------------------------------------- Operating Income (6,843) 10,857 - 670 - - Other Income (Expense): Interest income 136 302 180 110 50 1,029 Equity in earnings of unconsolidated subsidiaries 4,509 3 - - - - Other, net 1,174 - - - - - -------------------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations (1,024) 11,162 180 780 50 1,029 Before Interest and Income Taxes -------------------------------------------------------------------------------------------------------------------------------- Interest Charges and Other: Interest expense, net (21) 5,895 - 1 - - Distributions on preferred securities of subsidiary - - - - - - Preferred dividends of subsidiaries - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Total interest charges and other, net (21) 5,895 - 1 - - -------------------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations (1,003) 5,267 180 779 50 1,029 Before Income Taxes Income taxes (2,073) 2,251 63 209 - - -------------------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 1,070 3,016 117 570 50 1,029 Before Cumulative Effect of Accounting Change Cumulative effect of accounting change - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Earnings from Continuing Operations 1,070 3,016 117 570 50 1,029 Earnings from Discontinued Operations(1) - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Consolidated Net Income $ 1,070 $ 3,016 $ 117 $ 570 $ 50 $ 1,029 ================================================================================================================================ (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) Includes only consolidated financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-3b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Operating Activities: Consolidated Net income $ 1,261,731 $ (1,414,871) $ 1,261,731 $ 402,253 Adjustments to reconcile consolidated net income to net cash provided from operating activities -- Less income from discontinued operations(1) 142,217 (34,874) - - Depreciation and amortization 1,358,062 - - 437,490 Deferred income taxes and investment tax credits, net (21,663) - (1) (21,569) Other, net (192,363) 269,939 (248,300) (122,651) Changes in certain current assets and liabilities -- Receivables, net 344,385 129,742 (29,074) 87,832 Fossil fuel stock (199,251) - - (38,663) Materials and supplies (42,792) - - (13,025) Accounts payable (50,712) 4,620 (26,310) (83,077) Energy cost recovery, retail - (124,481) - 154,320 Other 68,697 2,166 8,993 34,996 ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities of continuing operations 2,383,877 (1,098,011) 967,039 837,906 ----------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (2,617,447) 641,331 - (635,540) Other (118,196) 153,623 (780,974) 67,297 ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities of continuing operations (2,735,643) 794,954 (780,974) (568,243) ----------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 222,669 (995,058) 399,524 (271,347) Proceeds -- Long-term senior notes 1,242,000 - - 442,000 Other long-term debt 757,240 - - 35,000 Preferred securities 30,000 - - - Capital contributions from parent company - (950,471) 13,455 107,313 Common Stock 394,895 (15,642) 394,895 15,642 Redemptions -- First mortgage bonds (615,773) - - (138,991) Other long-term debt (569,679) 117,984 (1) (19,021) Capital distributions to parent company - 181,000 - - Payment of preferred stock dividends - 17,778 - (14,942) Payment of common stock dividends (922,058) 1,082,863 (922,058) (393,900) Other (32,704) 864,603 (679) (9,908) ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities of continuing operations 506,590 303,057 (114,864) (248,154) ----------------------------------------------------------------------------------------------------------------------------------- Cash provided from (used for) discontinued operations(1) - - - - Net Increase (Decrease) in Cash and Cash Equivalents 154,824 - 71,201 21,509 Cash and Cash Equivalents at Beginning of Period 199,191 - 74 14,247 ----------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ 354,015 $ - $ 71,275 $ 35,756 =================================================================================================================================== Supplemental Cash Flow Information From Continuing Operations: Cash paid during the period for -- Interest (net of amount capitalized) $ 624,258 $ (116,054) $ 112,302 $ 246,316 Income taxes (net of refunds) 720,931 - - 223,961 -----------------------------------------------------------------------------------------------------------------------------------
(continued on following page) A-4a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah Operating Activities: Consolidated Net income $ 611,005 $ 58,524 $ 65,928 $ 22,063 Adjustments to reconcile consolidated net income to net cash provided from operating activities -- Less income from discontinued operations(1) - - - - Depreciation and amortization 697,143 72,320 58,105 27,895 Deferred income taxes and investment tax credits, net (48,329) 3,394 (9,718) (20,528) Other, net (92,403) (1,804) 2,441 4,084 Changes in certain current assets and liabilities -- Receivables, net 78,532 16,028 (7,796) 24,079 Fossil fuel stock (103,296) (30,887) (20,269) (2,711) Materials and supplies (15,628) 176 (1,529) (4,025) Accounts payable (15,406) (12,962) 53,462 (8,439) Energy cost recovery, retail (29,839) - - - Other (20,617) (31,286) 11,251 12,631 --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities of continuing operations 1,061,162 73,503 151,875 55,049 --------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (1,389,751) (274,668) (61,193) (31,296) Other 529,986 5,290 (2,988) (1,875) --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities of continuing operations (859,765) (269,378) (64,181) (33,171) --------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 43,698 44,311 (40,027) (13,241) Proceeds -- Long-term senior notes 600,000 135,000 - 65,000 Other long-term debt 404,535 - - - Preferred securities - 30,000 - - Capital contributions from parent company 225,060 72,484 73,095 1,561 Common Stock - - - - Redemptions -- First mortgage bonds (390,140) (30,000) (36,000) (20,642) Other long-term debt (385,035) (862) (21,021) (30,071) Capital distributions to parent company (160,000) - - - Payment of preferred stock dividends (578) (217) (2,041) - Payment of common stock dividends (527,300) (53,275) (50,200) (21,700) Other (17,747) (3,703) (81) (394) --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities of continuing operations (207,507) 193,738 (76,275) (19,487) --------------------------------------------------------------------------------------------------------------------------------- Cash provided from (used for) discontinued operations(1) - - - - Net Increase (Decrease) in Cash and Cash Equivalents (6,110) (2,137) 11,419 2,391 Cash and Cash Equivalents at Beginning of Period 29,370 4,381 7,531 - --------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ 23,260 $ 2,244 $ 18,950 $ 2,391 ================================================================================================================================= Supplemental Cash Flow Information From Continuing Operations: Cash paid during the period for -- Interest (net of amount capitalized) $ 234,456 $ 30,813 $ 28,126 $ 15,340 Income taxes (net of refunds) 381,995 33,349 45,761 21,034 ---------------------------------------------------------------------------------------------------------------------------------
(Continued on following page) A-4b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Southern SEGCO SCS Nuclear Operating Activities: Consolidated Net income $ 7,505 $ - $ - Adjustments to reconcile consolidated net income to net cash provided from operating activities -- Less income from discontinued operations(1) - - - Depreciation and amortization 9,491 22,071 423 Deferred income taxes and investment tax credits, net 2,288 - - Other, net (460) 36,693 4,133 Changes in certain current assets and liabilities -- Receivables, net (3,760) 26,931 (12,376) Fossil fuel stock - - - Materials and supplies - 50 - Accounts payable 4,240 (721) 2,361 Energy cost recovery, retail - - - Other (2,637) 23,965 1,766 ------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities of continuing operations 16,667 108,989 (3,693) ------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (16,252) (34,764) (121) Other (7,074) (2,111) (587) ------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities of continuing operations (23,326) (36,875) (708) ------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 59,734 - - Proceeds -- Long-term senior notes - - - Other long-term debt 24,500 - - Preferred securities - - - Capital contributions from parent company (33) - 2,564 Common Stock - - - Redemptions -- First mortgage bonds - - - Other long-term debt (76,507) (8,685) - Capital distributions to parent company - - - Payment of preferred stock dividends - - - Payment of common stock dividends - - - Other (871) - - ------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities of continuing operations 6,823 (8,685) 2,564 ------------------------------------------------------------------------------------------------------------- Cash provided from (used for) discontinued operations(1) - - - Net Increase (Decrease) in Cash and Cash Equivalents 164 63,429 (1,837) Cash and Cash Equivalents at Beginning of Period 533 32,072 2,570 ------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ 697 $ 95,501 $ 733 ============================================================================================================= Supplemental Cash Flow Information From Continuing Operations: Cash paid during the period for -- Interest (net of amount capitalized) $ 4,191 $ 4,622 $ - Income taxes (net of refunds) 3,285 - 7,592 -------------------------------------------------------------------------------------------------------------
(Continued on following page) A-4c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Mirant(2) Mgt Dev LINC Powercall Operating Activities: Consolidated Net income $ 177,091 $ 1,070 $ 3,016 $ 117 Adjustments to reconcile consolidated net income to net cash provided from operating activities -- Less income from discontinued operations(1) 177,091 - - - Depreciation and amortization - 228 24,649 - Deferred income taxes and investment tax credits, net - - 3,095 - Other, net - (14,315) (7,143) 50 Changes in certain current assets and liabilities -- Receivables, net - 50,902 (1,272) 3,695 Fossil fuel stock - - - - Materials and supplies - (474) 1,843 - Accounts payable - (9,656) (7,542) (2,293) Energy cost recovery, retail - - - - Other - (3,864) 4,242 51 ------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities of continuing operations - 23,891 20,888 1,620 ------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - - (19,653) - Other - (17,699) - - ------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities of continuing operations - (17,699) (19,653) - ------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net - - 122,528 - Proceeds -- Long-term senior notes - - - - Other long-term debt - - - - Preferred securities - - - - Capital contributions from parent company - (2,963) 196 - Common Stock - - - - Redemptions -- First mortgage bonds - - - - Other long-term debt - (2,097) (118,004) - Capital distributions to parent company - (15,000) - (6,000) Payment of preferred stock dividends - - - - Payment of common stock dividends - - - - Other - - - - ------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities of continuing operations - (20,060) 4,720 (6,000) ------------------------------------------------------------------------------------------------------------------------------- Cash provided from (used for) discontinued operations(1) - - - - Net Increase (Decrease) in Cash and Cash Equivalents - (13,868) 5,955 (4,380) Cash and Cash Equivalents at Beginning of Period - 18,520 867 6,670 ------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ - $ 4,652 $ 6,822 $ 2,290 =============================================================================================================================== Supplemental Cash Flow Information From Continuing Operations: Cash paid during the period for -- Interest (net of amount capitalized) $ - $ 16 $ 27 $ - Income taxes (net of refunds) - - (716) - ------------------------------------------------------------------------------------------------------------------------------- (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) For purposes of this consolidating cash flow statement only, Southern Holdings includes financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations and is included at Mirant. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-5a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Change In Cash Control Southern Southern Trust Trust Telecom Holdings(2) Operating Activities: Consolidated Net income $ 50 $ 1,029 $ 570 $ 56,443 Adjustments to reconcile consolidated net income to net cash provided from operating activities -- Less income from discontinued operations(1) - - - - Depreciation and amortization - - 879 4,077 Deferred income taxes and investment tax credits, net - - 1 66,170 Other, net 10 264 (5,683) (16,638) Changes in certain current assets and liabilities -- Receivables, net - (66) 2,432 (6,883) Fossil fuel stock - - - - Materials and supplies - - (2,893) (1,556) Accounts payable - - (20) 22,163 Energy cost recovery, retail - - - - Other - (1) 13,911 11,473 -------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities of continuing operations 60 1,226 9,197 135,249 -------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - - (19,728) (13,375) Other (843) (5,877) 1,707 (56,071) -------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities of continuing operations (843) (5,877) (18,021) (69,446) -------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net - - 3,470 5,367 Proceeds -- Long-term senior notes - - - - Other long-term debt - - - - Preferred securities - - - - Capital contributions from parent company 783 4,650 199 - Common Stock - - - - Redemptions -- First mortgage bonds - - - - Other long-term debt - - - (26,359) Capital distributions to parent company - - - - Payment of preferred stock dividends - - - - Payment of common stock dividends - - - (36,488) Other - - - - -------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities of continuing operations 783 4,650 3,669 (57,480) -------------------------------------------------------------------------------------------------------------------------- Cash provided from (used for) discontinued operations(1) - - - - Net Increase (Decrease) in Cash and Cash Equivalents - (1) (5,155) 8,323 Cash and Cash Equivalents at Beginning of Period - 2 5,257 77,072 -------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ - $ 1 $ 102 $ 85,395 ========================================================================================================================== Supplemental Cash Flow Information From Continuing Operations: Cash paid during the period for -- Interest (net of amount capitalized) $ - $ - $ 47 $ 57,723 Income taxes (net of refunds) - - 4,670 - -------------------------------------------------------------------------------------------------------------------------- (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) For purposes of this consolidating cash flow statement only, Southern Holdings includes financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations and is included at Mirant. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-5b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Funding Power SERC Operating Activities: Consolidated Net income $ - $ 8,207 $ - Adjustments to reconcile consolidated net income to net cash provided from operating activities -- Less income from discontinued operations(1) - - - Depreciation and amortization - 3,291 - Deferred income taxes and investment tax credits, net - 3,534 - Other, net - (580) - Changes in certain current assets and liabilities -- Receivables, net - (14,588) 27 Fossil fuel stock - (3,425) - Materials and supplies - (5,731) - Accounts payable - 28,694 174 Energy cost recovery, retail - - - Other 1,164 494 (1) ---------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities of continuing operations 1,164 19,896 200 ---------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - (762,437) - Other - - - ---------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities of continuing operations - (762,437) - ---------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 862,760 950 - Proceeds -- Long-term senior notes - - - Other long-term debt - 293,205 - Preferred securities - - - Capital contributions from parent company 10 452,097 - Common Stock - - - Redemptions -- First mortgage bonds - - - Other long-term debt - - - Capital distributions to parent company - - - Payment of preferred stock dividends - - - Payment of common stock dividends - - - Other (863,924) - - ---------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities of continuing operations (1,154) 746,252 - ---------------------------------------------------------------------------------------------------------- Cash provided from (used for) discontinued operations(1) - - - Net Increase (Decrease) in Cash and Cash Equivalents 10 3,711 200 Cash and Cash Equivalents at Beginning of Period - - 25 ---------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ 10 $ 3,711 $ 225 ========================================================================================================== Supplemental Cash Flow Information From Continuing Operations: Cash paid during the period for -- Interest (net of amount capitalized) $ - $ 6,333 $ - Income taxes (net of refunds) - - - --------------------------------------------------------------------------------------------------------- (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) For purposes of this consolidating cash flow statement only, Southern Holdings includes financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations and is included at Mirant. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-5c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama ASSETS Current Assets: Cash and cash equivalents $ 354,015 $ - $ 71,275 $ 35,756 Special Deposits 23,032 - - 4,309 Receivables -- Customer accounts receivable 846,795 - - 281,985 Other accounts and notes receivable 309,452 - 13,153 45,631 Affiliated companies 222 (1,519,499) 134,753 72,639 Accumulated provision for uncollectible accounts (24,383) - - (5,237) Unrecovered retail fuel clause revenue 280,003 - - 83,497 Refundable income taxes - (8,405) - - Fossil fuel stock, at average cost 394,457 - - 99,278 Materials and supplies, at average cost 550,217 - - 191,324 Other 222,257 (59,536) 14,132 74,640 --------------------------------------------------------------------------------------------------------------------------------- Total current assets 2,956,067 (1,587,440) 233,313 883,822 --------------------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service 35,813,369 - - 13,159,560 Less accumulated provision for depreciation 15,020,415 - - 5,309,557 --------------------------------------------------------------------------------------------------------------------------------- 20,792,954 - - 7,850,003 Nuclear fuel, at amortized cost 201,548 - - 88,777 Construction work in progress 2,089,259 - - 357,906 --------------------------------------------------------------------------------------------------------------------------------- Total property, plant, and equipment 23,083,761 - - 8,296,686 --------------------------------------------------------------------------------------------------------------------------------- Other Property and Investments: Equity investments in unconsolidated subsidiaries 90,320 (9,820,351) 9,725,397 44,742 Nuclear decommissioning trusts, at fair value 681,688 - - 317,508 Leveraged Leases 655,308 - - - Other 102,476 (979,691) 20,129 12,244 --------------------------------------------------------------------------------------------------------------------------------- Total other property and investments 1,529,792 (10,800,042) 9,745,526 374,494 --------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 924,139 - - 334,830 Prepaid pension costs 547,075 (42,737) - 314,100 Debt expense, being amortized 102,768 - - 8,150 Premium on reacquired debt, being amortized 279,800 - - 77,173 Department of Energy assessments 39,690 - - 21,015 Other 360,954 (81,632) 6,611 108,031 --------------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 2,254,426 (124,369) 6,611 863,299 --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- Total Assets $ 29,824,046 $(12,511,851) $9,985,450 $ 10,418,301 ================================================================================================================================= (Continued on following page)
A-6a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah SEGCO SCS ASSETS Current Assets: Cash and cash equivalents $ 23,260 $ 2,244 $ 18,950 $ 2,391 $ 697 $ 95,501 Special Deposits 18,508 76 137 2 - - Receivables -- Customer accounts receivable 376,322 65,955 63,286 29,959 - - Other accounts and notes receivable 110,565 4,240 25,931 2,880 - 79,181 Affiliated companies 87,786 2,689 22,569 1,170 33,209 127,589 Accumulated provision for uncollectible accounts (8,895) (1,342) (856) (500) - - Unrecovered retail fuel clause revenue 161,462 23,070 - 11,974 - - Refundable income taxes - - - - 1,009 - Fossil fuel stock, at average cost 202,759 47,655 31,489 9,851 - - Materials and supplies, at average cost 279,237 28,857 23,223 12,969 - 1,356 Other 125,246 12,662 16,002 13,097 2 14,724 ----------------------------------------------------------------------------------------------------------------------------------- Total current assets 1,376,250 186,106 200,731 83,793 34,917 318,351 ----------------------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service 16,886,399 1,951,512 1,741,499 855,290 342,679 251,201 Less accumulated provision for depreciation 7,243,209 912,581 698,681 402,492 219,825 131,361 ----------------------------------------------------------------------------------------------------------------------------------- 9,643,190 1,038,931 1,042,818 452,798 122,854 119,840 Nuclear fuel, at amortized cost 112,771 - - - - - Construction work in progress 883,285 264,525 38,253 8,540 17,065 2,152 ----------------------------------------------------------------------------------------------------------------------------------- Total property, plant, and equipment 10,639,246 1,303,456 1,081,071 461,338 139,919 121,992 ----------------------------------------------------------------------------------------------------------------------------------- Other Property and Investments: Equity investments in unconsolidated subsidiaries 35,209 1,111 925 1,076 - 4,744 Nuclear decommissioning trusts, at fair value 364,180 - - - - - Leveraged Leases - - - - - - Other 29,618 5,938 975 1,666 7 69 ----------------------------------------------------------------------------------------------------------------------------------- Total other property and investments 429,007 7,049 1,900 2,742 7 4,813 ----------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 543,584 16,766 13,394 12,283 3,282 - Prepaid pension costs 228,259 26,364 4,501 - - 16,588 Debt expense, being amortized 58,165 3,036 4,396 3,197 246 254 Premium on reacquired debt, being amortized 173,724 14,518 6,719 6,890 776 - Department of Energy assessments 18,675 - - - - - Other 99,031 12,222 20,821 24,500 669 26,529 ----------------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 1,121,438 72,906 49,831 46,870 4,973 43,371 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- Total Assets $13,565,941 $1,569,517 $ 1,333,533 $594,743 $ 179,816 $ 488,527 =================================================================================================================================== (Continued on following page)
A-6b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Southern ASSETS Nuclear Mgt Dev LINC Powercall Telecom Current Assets: Cash and cash equivalents $ 733 $ 4,652 $ 6,822 $ 2,290 $ 102 Special Deposits - - - - - Receivables -- Customer accounts receivable - 2,657 23,361 166 3,104 Other accounts and notes receivable 1,518 11 563 - - Affiliated companies 142,345 6,929 686 381 328 Accumulated provision for uncollectible accounts - (3,274) (3,485) (18) (502) Unrecovered retail fuel clause revenue - - - - - Refundable income taxes - 3 7,393 - - Fossil fuel stock, at average cost - - - - - Materials and supplies, at average cost - 852 2,219 - 2,893 Other 6,617 2 825 - 2,102 ------------------------------------------------------------------------------------------------------------------------------------ Total current assets 151,213 11,832 38,384 2,819 8,027 ------------------------------------------------------------------------------------------------------------------------------------ Property, Plant, and Equipment: In service 4,403 839 320,608 - 23,759 Less accumulated provision for depreciation 3,720 294 92,920 - 1,120 ------------------------------------------------------------------------------------------------------------------------------------ 683 545 227,688 - 22,639 Nuclear fuel, at amortized cost - - - - - Construction work in progress - - 10,174 - 5,709 ------------------------------------------------------------------------------------------------------------------------------------ Total property, plant, and equipment 683 545 237,862 - 28,348 ------------------------------------------------------------------------------------------------------------------------------------ Other Property and Investments: Equity investments in unconsolidated subsidiaries 952 17,539 41 - - Nuclear decommissioning trusts, at fair value - - - - - Leveraged Leases - - - - - Other - 2,511 - - - ------------------------------------------------------------------------------------------------------------------------------------ Total other property and investments 952 20,050 41 - - ------------------------------------------------------------------------------------------------------------------------------------ Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - - Prepaid pension costs - - - - - Debt expense, being amortized - - - - - Premium on reacquired debt, being amortized - - - - - Department of Energy assessments - - - - - Other 48,407 3,869 106 336 19,474 ------------------------------------------------------------------------------------------------------------------------------------ Total deferred charges and other assets 48,407 3,869 106 336 19,474 ------------------------------------------------------------------------------------------------------------------------------------ Total Assets $ 201,255 $ 36,296 $ 276,393 $ 3,155 $ 55,849 ==================================================================================================================================== (Continued on following page)
A-7a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Change In Cash Control Southern Southern Southern ASSETS Trust Trust Holdings Funding Power SERC Current Assets: Cash and cash equivalents $ - $ 1 $ 85,395 $ 10 $ 3,711 $ 225 Special Deposits - - - - - - Receivables -- Customer accounts receivable - - - - - - Other accounts and notes receivable - 204 16,720 - 8,855 - Affiliated companies - - 16,824 863,924 5,733 167 Accumulated provision for uncollectible accounts - - (274) - - - Unrecovered retail fuel clause revenue - - - - - - Refundable income taxes - - - - - - Fossil fuel stock, at average cost - - - - 3,425 - Materials and supplies, at average cost - - 1,556 - 5,731 - Other - - 1,559 - 183 - ------------------------------------------------------------------------------------------------------------------------------------ Total current assets - 205 121,780 863,934 27,638 392 ------------------------------------------------------------------------------------------------------------------------------------ Property, Plant, and Equipment: In service - - 10,467 - 265,153 - Less accumulated provision for depreciation - - 1,364 - 3,291 - ------------------------------------------------------------------------------------------------------------------------------------ - - 9,103 - 261,862 - Nuclear fuel, at amortized cost - - - - - - Construction work in progress - - 3,897 - 497,753 - ------------------------------------------------------------------------------------------------------------------------------------ Total property, plant, and equipment - - 13,000 - 759,615 - ------------------------------------------------------------------------------------------------------------------------------------ Other Property and Investments: Equity investments in unconsolidated subsidiaries - - 78,935 - - - Nuclear decommissioning trusts, at fair value - - - - - - Leveraged Leases - 655,308 - - - Other 843 19,725 979,383 - 9,059 - ------------------------------------------------------------------------------------------------------------------------------------ Total other property and investments 843 19,725 1,713,626 - 9,059 - ------------------------------------------------------------------------------------------------------------------------------------ Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - - - Prepaid pension costs - - - - - - Debt expense, being amortized - - 25,324 - - - Premium on reacquired debt, being amortized - - - - - - Department of Energy assessments - - - - - - Other - - 40,146 - 31,834 - ------------------------------------------------------------------------------------------------------------------------------------ Total deferred charges and other assets - - 65,470 - 31,834 - ------------------------------------------------------------------------------------------------------------------------------------ Total Assets $ 843 $ 19,930 $1,913,876 $ 863,934 $ 828,146 $ 392 ==================================================================================================================================== (Continued on following page)
A-7b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $ 428,671 $ - $ - $ 5,382 Notes payable 1,902,312 (995,058) 949,585 9,996 Accounts payable -- Affiliated 44 (378,656) 5,058 98,268 Other 847,112 - 7,502 151,705 Customer deposits 152,579 - - 42,124 Taxes accrued -- Income taxes 159,764 (67,941) 36,523 113,003 Other 193,735 - - 19,023 Interest accrued 117,959 (19,048) 17,027 35,522 Vacation pay accrued 124,608 - - 32,324 Other 445,310 (1,463) 7,313 93,589 ----------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 4,372,094 (1,462,166) 1,023,008 600,936 ----------------------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) 8,296,878 (979,383) 979,383 3,742,346 ----------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 4,087,902 (93,121) - 1,387,661 Deferred credits related to income taxes 500,151 - - 202,881 Accumulated deferred investment tax credits 634,020 - - 238,225 Employee benefits provisions(1) 449,631 (151,434) 2,025 99,919 Prepaid capacity revenues 40,730 - - 40,730 Other 814,289 (5,302) 4,349 130,214 ----------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 6,526,723 (249,857) 6,374 2,099,630 ----------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trusts holding company junior subordinated notes (See accompanying statements) 2,276,250 - - 347,000 ----------------------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) 368,126 - - 317,512 ----------------------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 7,983,975 (9,820,445) 7,976,685 3,310,877 ----------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 29,824,046 $(12,511,851) $9,985,450 $ 10,418,301 =================================================================================================================================== (Continued on following page)
A-8a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Georgia Gulf Mississippi Savannah LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $ 311,620 $ - $ 80,020 $ 1,178 Notes payable 747,537 87,311 15,973 32,159 Accounts payable -- Affiliated 109,591 18,202 6,175 5,087 Other 409,253 39,838 105,834 10,160 Customer deposits 83,172 14,506 6,540 6,237 Taxes accrued -- Income taxes 35,247 8,162 14,981 2,587 Other 125,807 8,053 35,282 1,668 Interest accrued 46,942 8,305 5,079 4,014 Vacation pay accrued 41,830 4,725 5,810 2,361 Other 112,686 10,247 11,483 9,097 -------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 2,023,685 199,349 287,177 74,548 -------------------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) 2,961,726 467,784 233,753 160,709 -------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 2,163,959 161,968 138,913 77,331 Deferred credits related to income taxes 229,216 28,293 23,626 13,776 Accumulated deferred investment tax credits 337,482 24,056 22,268 9,952 Employee benefits provisions(1) 207,795 37,892 39,304 18,936 Prepaid capacity revenues - - - - Other 440,774 26,045 30,003 22,573 -------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 3,379,226 278,254 254,114 142,568 -------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trusts holding company junior subordinated notes (See accompanying statements) 789,250 115,000 35,000 40,000 -------------------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) 14,569 4,236 31,809 - -------------------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 4,397,485 504,894 491,680 176,918 -------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 13,565,941 $1,569,517 $ 1,333,533 $594,743 ================================================================================================================================ (Continued on following page)
A-8b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) SEGCO SCS LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $ - $ 8,154 Notes payable 59,734 - Accounts payable -- Affiliated 12,158 67,446 Other - 70,234 Customer deposits - - Taxes accrued -- Income taxes 2,607 - Other 568 780 Interest accrued 150 127 Vacation pay accrued - 20,587 Other 104 111,412 ----------------------------------------------------------------------------------------- Total current liabilities 75,321 278,740 ------------------------------------------------------------------------------------------ Long-term debt (See accompanying statements) 26,381 44,543 ----------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 15,830 - Deferred credits related to income taxes 2,359 - Accumulated deferred investment tax credits 2,037 - Employee benefits provisions(1) - 85,147 Prepaid capacity revenues - - Other - 79,222 ----------------------------------------------------------------------------------------- Total deferred credits and other liabilities 20,226 164,369 ----------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trusts holding company junior subordinated notes (See accompanying statements) - - ----------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) - - ----------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 57,888 875 ----------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 179,816 $ 488,527 ========================================================================================= (Continued on following page)
A-8c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Southern LIABILITIES AND STOCKHOLDERS' EQUITY Nuclear Mgt Dev LINC Powercall Telecom Current Liabilities: Securities due within one year $ - $ - $ 23 $ - $ - Notes payable - - 122,528 - 3,470 Accounts payable -- Affiliated 20,138 2,183 1,837 33 1,478 Other 10,701 1,507 8,265 1,520 3,246 Customer deposits - - - - - Taxes accrued -- Income taxes 173 468 1,875 64 - Other 1,359 3 1,184 - - Interest accrued - - 3,667 - 6 Vacation pay accrued 15,773 - 1,139 - 59 Other 36,209 177 7,411 - 42,028 --------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 84,353 4,338 147,929 1,617 50,287 --------------------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) - - 343 - - --------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - 183 23,637 89 - Deferred credits related to income taxes - - - - - Accumulated deferred investment tax credits - - - - - Employee benefits provisions(1) 106,009 9 2,618 - 84 Prepaid capacity revenues - - - - - Other 3,776 6,697 21,727 - - --------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 109,785 6,889 47,982 89 84 --------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trusts holding company junior subordinated notes (See accompanying statements) - - - - - --------------------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) - - - - - --------------------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 7,117 25,069 80,139 1,449 5,478 --------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 201,255 $ 36,296 $ 276,393 $ 3,155 $ 55,849 ================================================================================================================================= (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 exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-9a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Change In Cash Control Southern Southern Southern LIABILITIES AND STOCKHOLDERS' EQUITY Trust Trust Holdings Funding Power SERC Current Liabilities: Securities due within one year $ - $ - $ 22,294 $ - $ - $ - Notes payable - - 5,367 862,760 950 - Accounts payable -- Affiliated - - 7,129 - 23,530 387 Other - - 23,069 - 4,278 - Customer deposits - - - - - - Taxes accrued -- Income taxes - - 11,621 - 394 - Other - - 8 - - - Interest accrued - - 15,004 1,164 - - Vacation pay accrued - - - - - - Other - - 4,132 - 885 - ---------------------------------------------------------------------------------------------------------------------------------- Total current liabilities - - 88,624 863,924 30,037 387 ---------------------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) - - 366,088 - 293,205 - ---------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - 203,557 - 7,895 - Deferred credits related to income taxes - - - - - - Accumulated deferred investment tax credits - - - - - - Employee benefits provisions(1) - - 1,327 - - - Prepaid capacity revenues - - - - - - Other - - 24,195 - 30,016 - ---------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities - - 229,079 - 37,911 - ---------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trusts holding company junior subordinated notes (See accompanying statements) - - 950,000 - - - ---------------------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 843 19,930 280,085 10 466,993 5 ---------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 843 $ 19,930 $1,913,876 $ 863,934 $ 828,146 $ 392 ================================================================================================================================== (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 exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-9b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2005 6.07% $ 1,860 $ - $ - $ - 2006 6.50% to 6.90% 45,000 - - - 2021 through 2025 6.88% to 7.75% 437,558 - - 350,000 2026 through 2030 6.88% 30,000 - - - ----------------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds 514,418 - - 350,000 ----------------------------------------------------------------------------------------------------------------------------------- Long-term notes payable -- 4.69% to 9.75% due 2002-2005 1,833,897 - - 1,156,200 5.38% to 7.63% due 2006-2009 595,366 - - 360,000 6.10% to 6.70% due 2010-2016 304,622 - - 99,622 6.38% to 8.12% due 2018-2038 788,369 - - 315,980 6.63% to 7.13% due 2039-2048 1,028,800 - - 783,800 Adjustable rates (1.98% to 3.44% at 1/1/02) due 2002-2005 1,077,587 - - 167,000 Long-term notes payable to affiliates - (979,383) 979,383 - ----------------------------------------------------------------------------------------------------------------------------------- Total long-term notes payable 5,628,641 (979,383) 979,383 2,882,602 ----------------------------------------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Collateralized: 5.25% to 6.30% due 2006-2026 167,645 - - 24,400 Variable rates (1.61% to 1.95% at 1/1/02) due 2015-2017 89,800 - - 89,800 Non-collateralized: 4.20% to 5.45% due 2012-2034 726,260 - - - Variable rates (1.75% to 2.05% at 1/1/02) due 2011-2037 1,565,775 - - 445,940 ----------------------------------------------------------------------------------------------------------------------------------- Total other long-term debt 2,549,480 - - 560,140 ----------------------------------------------------------------------------------------------------------------------------------- Capitalized lease obligations 92,068 - - 3,323 ----------------------------------------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net (59,058) - - (48,337) ----------------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) 8,725,549 (979,383) 979,383 3,747,728 Less amount due within one year 428,671 - - 5,382 ----------------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ 8,296,878 $ (979,383) $ 979,383 $3,742,346 ----------------------------------------------------------------------------------------------------------------------------------- (Continued on following page)
A-10a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah SEGCO Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2005 6.07% $ 1,860 $ - $ - $ - $ - 2006 6.50% to 6.90% - 25,000 - 20,000 - 2021 through 2025 6.88% to 7.75% - - 64,000 23,558 - 2026 through 2030 6.88% - 30,000 - - - ----------------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds 1,860 55,000 64,000 43,558 - ----------------------------------------------------------------------------------------------------------------------------------- Long-term notes payable -- 4.69% to 9.75% due 2002-2005 500,000 110,000 35,000 20,000 - 5.38% to 7.63% due 2006-2009 150,000 - - 45,000 - 6.10% to 6.70% due 2010-2016 100,000 75,000 - 30,000 - 6.38% to 8.12% due 2018-2038 200,000 67,211 52,178 - - 6.63% to 7.13% due 2039-2048 245,000 - - - - Adjustable rates (1.98% to 3.44% at 1/1/02) due 2002-2005 300,000 - 80,000 - 2,000 Long-term notes payable to affiliates - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total long-term notes payable 1,495,000 252,211 167,178 95,000 2,000 ----------------------------------------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Collateralized: 5.25% to 6.30% due 2006-2026 7,800 108,700 26,745 - - Variable rates (1.61% to 1.95% at 1/1/02) due 2015-2017 - - - - - Non-collateralized: 4.20% to 5.45% due 2012-2034 701,760 - - - 24,500 Variable rates (1.75% to 2.05% at 1/1/02) due 2011-2037 984,130 60,930 56,820 17,955 - ----------------------------------------------------------------------------------------------------------------------------------- Total other long-term debt 1,693,690 169,630 83,565 17,955 24,500 ----------------------------------------------------------------------------------------------------------------------------------- Capitalized lease obligations 83,371 - - 5,374 - ----------------------------------------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net (575) (9,057) (970) - (119) ----------------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) 3,273,346 467,784 313,773 161,887 26,381 Less amount due within one year 311,620 - 80,020 1,178 - ----------------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $2,961,726 $ 467,784 $233,753 $ 160,709 $ 26,381 ----------------------------------------------------------------------------------------------------------------------------------- (Continued on following page)
A-10b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) Southern SCS Nuclear Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2005 6.07% $ - $ - 2006 6.50% to 6.90% - - 2021 through 2025 6.88% to 7.75% - - 2026 through 2030 6.88% - - --------------------------------------------------------------------------------------- Total first mortgage bonds - - --------------------------------------------------------------------------------------- Long-term notes payable -- 4.69% to 9.75% due 2002-2005 12,697 - 5.38% to 7.63% due 2006-2009 40,000 - 6.10% to 6.70% due 2010-2016 - - 6.38% to 8.12% due 2018-2038 - - 6.63% to 7.13% due 2039-2048 - - Adjustable rates (1.98% to 3.44% at 1/1/02) due 2002-2005 - - Long-term notes payable to affiliates - - --------------------------------------------------------------------------------------- Total long-term notes payable 52,697 - --------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Collateralized: 5.25% to 6.30% due 2006-2026 - - Variable rates (1.61% to 1.95% at 1/1/02) due 2015-2017 - - Non-collateralized: 4.20% to 5.45% due 2012-2034 - - Variable rates (1.75% to 2.05% at 1/1/02) due 2011-2037 - - --------------------------------------------------------------------------------------- Total other long-term debt - - --------------------------------------------------------------------------------------- Capitalized lease obligations - - --------------------------------------------------------------------------------------- Unamortized debt premium (discount), net - - --------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) 52,697 - Less amount due within one year 8,154 - --------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ 44,543 $ - --------------------------------------------------------------------------------------- (Continued on following page)
A-10c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Cash Mgt Dev LINC Powercall Telecom Trust Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2005 6.07% $ - $ - $ - $ - $ - 2006 6.50% to 6.90% - - - - - 2021 through 2025 6.88% to 7.75% - - - - - 2026 through 2030 6.88% - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Long-term notes payable -- 4.69% to 9.75% due 2002-2005 - - - - - 5.38% to 7.63% due 2006-2009 - 366 - - - 6.10% to 6.70% due 2010-2016 - - - - - 6.38% to 8.12% due 2018-2038 - - - - - 6.63% to 7.13% due 2039-2048 - - - - - Adjustable rates (1.98% to 3.44% at 1/1/02) due 2002-2005 - - - - - Long-term notes payable to affiliates - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total long-term notes payable - 366 - - - ----------------------------------------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Collateralized: 5.25% to 6.30% due 2006-2026 - - - - - Variable rates (1.61% to 1.95% at 1/1/02) due 2015-2017 - - - - - Non-collateralized: 4.20% to 5.45% due 2012-2034 - - - - - Variable rates (1.75% to 2.05% at 1/1/02) due 2011-2037 - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total other long-term debt - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Capitalized lease obligations - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) - 366 - - - Less amount due within one year - 23 - - - ----------------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ - $ 343 $ - $ - $ - ----------------------------------------------------------------------------------------------------------------------------------- (Continued on following page)
A-11a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Change In Control Southern Southern Southern Trust Holdings Funding Power SERC Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2005 6.07% $ - $ - $ - $ - $ - 2006 6.50% to 6.90% - - - - - 2021 through 2025 6.88% to 7.75% - - - - - 2026 through 2030 6.88% - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds - - - - - --------------------------------------------------------------------------------------------------------------------------------- Long-term notes payable -- 4.69% to 9.75% due 2002-2005 - - - - - 5.38% to 7.63% due 2006-2009 - - - - - 6.10% to 6.70% due 2010-2016 - - - - - 6.38% to 8.12% due 2018-2038 - 153,000 - - - 6.63% to 7.13% due 2039-2048 - - - - - Adjustable rates (1.98% to 3.44% at 1/1/02) due 2002-2005 - 235,382 - 293,205 - Long-term notes payable to affiliates - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total long-term notes payable - 388,382 - 293,205 - --------------------------------------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Collateralized: 5.25% to 6.30% due 2006-2026 - - - - - Variable rates (1.61% to 1.95% at 1/1/02) due 2015-2017 - - - - - Non-collateralized: 4.20% to 5.45% due 2012-2034 - - - - - Variable rates (1.75% to 2.05% at 1/1/02) due 2011-2037 - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total other long-term debt - - - - - --------------------------------------------------------------------------------------------------------------------------------- Capitalized lease obligations - - - - - --------------------------------------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) - 388,382 - 293,205 - Less amount due within one year - 22,294 - - - --------------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ - $ 366,088 $ - $ 293,205 $ - --------------------------------------------------------------------------------------------------------------------------------- (Continued on following page)
A-11b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Georgia Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 6.85% to 7.00% $ 435,000 $ - $ - $ - $ 200,000 7.13% to 7.38% 327,000 - - 97,000 - 7.60% to 7.63% 415,000 - - 200,000 175,000 7.75% 649,250 - - - 414,250 8.14% to 8.19% 400,000 - - - - Auction rate (6.52% at 1/1/02) 50,000 - - 50,000 - ------------------------------------------------------------------------------------------------------------------------------------ Total (annual distribution requirement -- $170 million) 2,276,250 - - 347,000 789,250 ------------------------------------------------------------------------------------------------------------------------------------ Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% 98,126 - - 47,512 14,569 $25 par or stated value -- 5.20% to 5.83% 200,000 - - 200,000 - Adjustable and auction rates -- at 1/1/02 3.10% to 3.56% 70,000 - - 70,000 - ------------------------------------------------------------------------------------------------------------------------------------ Total (annual dividend requirement -- $18 million) 368,126 - - 317,512 14,569 Less amount due within one year - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Total excluding amount due within one year 368,126 - - 317,512 14,569 ------------------------------------------------------------------------------------------------------------------------------------ Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 701 million shares Treasury: 2 million shares Par value 3,503,112 (715,306) 3,503,112 240,000 344,250 Paid-in capital 14,381 (5,637,936) 13,932 1,850,775 2,182,597 Treasury, at cost (57,309) (308) (57,001) - - Retained earnings 4,516,642 (3,466,895) 4,516,642 1,220,102 1,870,791 Accumulated other comprehensive income 7,149 - - - (153) ------------------------------------------------------------------------------------------------------------------------------------ Total common stockholders' equity 7,983,975 (9,820,445) 7,976,685 3,310,877 4,397,485 ------------------------------------------------------------------------------------------------------------------------------------ Total Capitalization $ 18,925,229 $(10,799,828) $8,956,068 $7,717,735 $8,163,030 ==================================================================================================================================== (Continued on following page)
A-12a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Gulf Mississippi Savannah SEGCO SCS Nuclear Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 6.85% to 7.00% $ 45,000 $ - $ 40,000 $ - $ - $ - 7.13% to 7.38% 30,000 - - - - - 7.60% to 7.63% 40,000 - - - - - 7.75% - 35,000 - - - - 8.14% to 8.19% - - - - - - Auction rate (6.52% at 1/1/02) - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $170 million) 115,000 35,000 40,000 - - - ----------------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% 4,236 31,809 - - - - $25 par or stated value -- 5.20% to 5.83% - - - - - - Adjustable and auction rates -- at 1/1/02 3.10% to 3.56% - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total (annual dividend requirement -- $18 million) 4,236 31,809 - - - - Less amount due within one year - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total excluding amount due within one year 4,236 31,809 - - - - ----------------------------------------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 701 million shares Treasury: 2 million shares Par value 38,060 37,691 54,223 328 725 10 Paid-in capital 305,972 267,582 12,826 32,940 150 7,107 Treasury, at cost - - - - - - Retained earnings 160,862 186,407 109,869 24,620 - - Accumulated other comprehensive income - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total common stockholders' equity 504,894 491,680 176,918 57,888 875 7,117 ----------------------------------------------------------------------------------------------------------------------------------- Total Capitalization $1,091,914 $792,242 $ 377,627 $ 84,269 $ 45,418 $ 7,117 =================================================================================================================================== (Continued on following page)
A-12b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Cash Mgt Dev LINC Powercall Telecom Trust Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 6.85% to 7.00% $ - $ - $ - $ - $ - 7.13% to 7.38% - - - - - 7.60% to 7.63% - - - - - 7.75% - - - - - 8.14% to 8.19% - - - - - Auction rate (6.52% at 1/1/02) - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $170 million) - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% - - - - - $25 par or stated value -- 5.20% to 5.83% - - - - - Adjustable and auction rates -- at 1/1/02 3.10% to 3.56% - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total (annual dividend requirement -- $18 million) - - - - - Less amount due within one year - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Total excluding amount due within one year - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 701 million shares Treasury: 2 million shares Par value 1 1 1 1 - Paid-in capital 66,588 157,735 15,994 1,572 783 Treasury, at cost - - - - - Retained earnings (41,520) (77,597) (14,546) 3,905 50 Accumulated other comprehensive income - - - - 10 ----------------------------------------------------------------------------------------------------------------------------------- Total common stockholders' equity 25,069 80,139 1,449 5,478 843 ----------------------------------------------------------------------------------------------------------------------------------- Total Capitalization $ 25,069 $ 80,482 $ 1,449 $ 5,478 $ 843 =================================================================================================================================== The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-13a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2001 (Stated in Thousands of Dollars) (Continued) Change In Control Southern Southern Southern Trust Holding Funding Power SERC Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 6.85% to 7.00% $ - $ 150,000 $ - $ - $ - 7.13% to 7.38% - 200,000 - - - 7.60% to 7.63% - - - - - 7.75% - 200,000 - - - 8.14% to 8.19% - 400,000 - - - Auction rate (6.52% at 1/1/02) - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $170 million) - 950,000 - - - --------------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% - - - - - $25 par or stated value -- 5.20% to 5.83% - - - - - Adjustable and auction rates -- at 1/1/02 3.10% to 3.56% - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total (annual dividend requirement -- $18 million) - - - - - Less amount due within one year - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total excluding amount due within one year - - - - - --------------------------------------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 701 million shares Treasury: 2 million shares Par value - 10 - - 5 Paid-in capital 17,815 265,842 10 452,097 - Treasury, at cost - - - - - Retained earnings 1,512 14,233 - 8,207 - Accumulated other comprehensive income 603 - - 6,689 - --------------------------------------------------------------------------------------------------------------------------------- Total common stockholders' equity 19,930 280,085 10 466,993 5 --------------------------------------------------------------------------------------------------------------------------------- Total Capitalization $ 19,930 $1,596,173 $ 10 $ 760,198 $ 5 ================================================================================================================================= The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-13b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Georgia Balance, December 31, 2000 $4,671,881 $(3,503,902) $ 4,671,881 $ 1,227,952 $ 1,787,757 ADD: Net Income After Preferred Dividends 1,261,731 (1,396,419) 1,261,731 386,729 610,335 ADD (DEDUCT): Dividends on Common Stock of Southern Company (922,058) - (922,058) - - Dividends on Common Stock of Subsidiary Companies - 1,083,563 - (393,900) (527,300) Mirant spin off distribution(1) (391,010) 340,665 (391,010) - - Loss on Issuance of Treasury Stock (92,458) - (92,458) - - Other Adjustments to Retained Earnings (11,444) 9,198 (11,444) (679) (1) ------------------------------------------------------------------------------------------------------------------------------------ Balance, December 31, 2001 $4,516,642 $(3,466,895) $ 4,516,642 $ 1,220,102 $ 1,870,791 ==================================================================================================================================== Gulf Mississippi Savannah SEGCO Balance, December 31, 2000 $ 155,830 $172,720 $109,506 $17,815 ADD: Net Income After Preferred Dividends 58,307 63,887 22,063 7,505 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - - - Dividends on Common Stock of Subsidiary Companies (53,275) (50,200) (21,700) (700) Mirant spin off distribution(1) - - - - Loss on Issuance of Treasury Stock - - - - Other Adjustments to Retained Earnings - - - - ------------------------------------------------------------------------------------------------------------- Balance, December 31, 2001 $ 160,862 $186,407 $109,869 $24,620 ============================================================================================================= Southern Southern Southern Mirant(2) Mgt Dev LINC Powercall Telecom Balance, December 31, 2000 $ 166,281 $ (42,590) $ (80,614) $ (14,663) $ 3,335 ADD: Net Income After Preferred Dividends 182,814 1,070 3,016 117 570 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - - - - Dividends on Common Stock of Subsidiary Companies - - - - - Mirant spin off distribution(1) (340,665) - - - - Loss on Issuance of Treasury Stock - - - - - Other Adjustments to Retained Earnings (8,430) - 1 - - ---------------------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2001 $ - $ (41,520) $ (77,597) $ (14,546) $ 3,905 ================================================================================================================================== Change In Deferred Control Cash Southern Southern Trust Trust Power Holdings Balance, December 31, 2000 $ 573 $ - $ - $ - ADD: Net Income After Preferred Dividends 1,029 50 8,207 50,720 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - - - Dividends on Common Stock of Subsidiary Companies - - - (36,488) Mirant spin off distribution(1) - - - - Loss on Issuance of Treasury Stock - - - - Other Adjustments to Retained Earnings (90) - - 1 ----------------------------------------------------------------------------------------------------------- Balance, December 31, 2001 $ 1,512 $ 50 $ 8,207 $14,233 =========================================================================================================== (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) Includes only consolidated financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-14
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF PAID IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Georgia Gulf Balance, December 31, 2000 $ 3,152,984 $ (8,700,933) $3,153,461 $1,743,363 $2,117,497 $ 233,476 ADD (DEDUCT): Contributions & adjustments to capital for the twelve month period - (1,058,139) - 107,313 65,060 72,484 Capital distribution to SOUTHERN for the twelve month period - 23,963 - - - - Mirant spin off distribution(1) (3,167,858) 4,096,724 (3,167,858) - - - Other 28,778 449 28,329 - - - ------------------------------------------------------------------------------------------------------------------------------------ Balance, December 31, 2001 $ 13,904 $ (5,637,936) $ 13,932 $1,850,676 $2,182,557 $ 305,960 ====================================================================================================================================
Southern Mississippi Savannah SEGCO SCS Nuclear Balance, December 31, 2000 $194,161 $11,265 $32,973 $ 150 $4,543 ADD (DEDUCT): Contributions & adjustments to capital for the twelve month period 73,095 1,561 (33) - 2,564 Capital distribution to SOUTHERN for the twelve month period - - - - - Mirant spin off distribution(1) - - - - - Other - - - - - ----------------------------------------------------------------------------------------------------------- Balance, December 31, 2001 $267,256 $12,826 $32,940 $ 150 $7,107 ===========================================================================================================
Southern Southern Southern Control Mirant(2) Mgt Dev LINC Powercall Telecom Trust Balance, December 31, 2000 $ 4,084,406 $ 84,551 $ 157,539 $ 21,994 $ 1,373 $ 13,165 ADD (DEDUCT): Contributions & adjustments to capital for the twelve month period 12,318 - 196 - 199 4,650 Capital distribution to SOUTHERN for the twelve month period - (17,963) - (6,000) - - Mirant spin off distribution(1) (4,096,724) - - - - - Other - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Balance, December 31, 2001 $ - $ 66,588 $ 157,735 $ 15,994 $ 1,572 $ 17,815 ====================================================================================================================================
Change In Deferred Cash Southern Southern Southern Trust Holdings Funding Power Balance, December 31, 2000 $ - $ - $ - $ - ADD (DEDUCT): Contributions & adjustments to capital for the twelve month period 783 265,842 10 452,097 Capital distribution to SOUTHERN for the twelve month period - - - - Mirant spin off distribution(1) - - - - Other - - - - ----------------------------------------------------------------------------------------------- Balance, December 31, 2001 $ 783 $265,842 $ 10 $452,097 =============================================================================================== (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) Includes only consolidated financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement.
A-15
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers All Other Consolidated Add (Deduct) Subsidiaries Consolidated Net Income $ 1,261,731 $(1,396,419) $ 1,855,715 ----------------------------------------------------------------------------------------------------------------------------- Other comprehensive income - continuing operations: Changes in fair value of qualifying cash flow hedges, net of tax 6,900 - - ----------------------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income - continuing operations 6,900 - - ----------------------------------------------------------------------------------------------------------------------------- Other comprehensive income - discontinued operations: Cumulative effect of accounting change for qualifying hedges, net of tax of $(121) million (249,246) 61,120 - Changes in fair value of qualifying hedges, net of tax of $(51) million (103,962) 25,494 - Less: Reclassification adjustment for amounts included in net income, net of tax of $29 million 59,858 (14,678) - Foreign currency translation adjustments, net of tax $(22) million (21,200) 5,198 - ----------------------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income - discontinued operations (314,550) 77,134 - ----------------------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ 954,081 $ (1,319,285) $ 1,855,715 =============================================================================================================================
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Southern Georgia Power Mirant(2) Consolidated Net Income $ 610,335 $ 8,207 $ 182,814 ------------------------------------------------------------------------------------------------------------------------------ Other comprehensive income - continuing operations: Changes in fair value of qualifying cash flow hedges, net of tax (153) 6,689 - ------------------------------------------------------------------------------------------------------------------------------ Total Other Comprehensive Income - continuing operations (153) 6,689 - ------------------------------------------------------------------------------------------------------------------------------ Other comprehensive income - discontinued operations: Cumulative effect of accounting change for qualifying hedges, net of tax of $(121) million - - (310,366) Changes in fair value of qualifying hedges, net of tax of $(51) million - - (129,456) Less: Reclassification adjustment for amounts included in net income, net of tax of $29 million - - 74,536 Foreign currency translation adjustments, net of tax $(22) million - - (26,398) ------------------------------------------------------------------------------------------------------------------------------ Total Other Comprehensive Income - discontinued operations - - (391,684) ------------------------------------------------------------------------------------------------------------------------------ Consolidated Comprehensive Income $ 610,182 $ 14,896 $ (208,870) ==============================================================================================================================
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Deferred Change In Cash Control Trust Trust Consolidated Net Income $ 50 $ 1,029 -------------------------------------------------------------------------------------------------- Other comprehensive income - continuing operations: Changes in fair value of qualifying cash flow hedges, net of tax 10 354 -------------------------------------------------------------------------------------------------- Total Other Comprehensive Income - continuing operations 10 354 -------------------------------------------------------------------------------------------------- Other comprehensive income - discontinued operations: Cumulative effect of accounting change for qualifying hedges, net of tax of $(121) million - - Changes in fair value of qualifying hedges, net of tax of $(51) million - - Less: Reclassification adjustment for amounts included in net income, net of tax of $29 million - - Foreign currency translation adjustments, net of tax $(22) million - - -------------------------------------------------------------------------------------------------- Total Other Comprehensive Income - discontinued operations - - -------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ 60 $ 1,383 ==================================================================================================
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Southern Consolidated Add (Deduct) Georgia Power Balance at beginning of period - continuing operations $ 249 $ - $ - $ - Change in current period - continuing operations 6,900 - (153) 6,689 ---------------------------------------------------------------------------------------------------------------------------------- BALANCE AT END OF PERIOD - 7,149 - (153) 6,689 Continuing Operations ---------------------------------------------------------------------------------------------------------------------------------- Balance at beginning of period - discontinued operations (93,847) 23,013 - - Change in current period - discontinued operations (314,550) 77,134 - - Impact of Mirant spin off(1) 408,397 (100,147) - - ---------------------------------------------------------------------------------------------------------------------------------- BALANCE AT END OF PERIOD - - - - - Discontinued Operations ---------------------------------------------------------------------------------------------------------------------------------- Total Accumulated Other Comprehensive Income $ 7,149 $ - $ (153) $ 6,689 ==================================================================================================================================
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Stated in Thousands of Dollars)
Deferred Change In Cash Control Mirant(2) Trust Trust Balance at beginning of period - continuing operations $ - $ - $ 249 Change in current period - continuing operations - 10 354 --------------------------------------------------------------------------------------------------------------- BALANCE AT END OF PERIOD - - 10 603 Continuing Operations --------------------------------------------------------------------------------------------------------------- Balance at beginning of period - discontinued operations (116,860) - - Change in current period - discontinued operations (391,684) - - Impact of Mirant spin off(1) 508,544 - - --------------------------------------------------------------------------------------------------------------- BALANCE AT END OF PERIOD - - - - Discontinued Operations --------------------------------------------------------------------------------------------------------------- Total Accumulated Other Comprehensive Income $ - $ 10 $ 603 ================================================================================================================ (1) Effective April 2, 2001, SOUTHERN completed a spin off of Mirant (formerly Southern Energy). As a result of the spin off, the financial statements for the year 2001 have been prepared with Mirant reflected as discontinued operations. For further details, see note 11 in the Annual Report of SOUTHERN on Form 10-K. (2) Includes only consolidated financial information for Southern Energy Finance Capital Corporation and Southern Company Capital Funding, which were retained by SOUTHERN through a tax-free distribution from Mirant as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727). All other Mirant information is reflected as discontinued operations. (3) 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-6 inclusive) are an integral part of this statement.
A-16 Notes to Financial Statements at December 31, 2001 The notes to the financial statements are herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive and are an integral part of the financial statements. A-17
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) ALABAMA ALABAMA ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I TRUST II TRUST III ----------------------------------------------------------------------------------------------------------------------------------- Total Operating Revenues $ 3,586,390 $ - $3,586,390 $ - $ - $ - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 1,000,828 - 1,000,828 - - - Purchased power from non-affiliates 144,991 - 144,991 - - - Purchase power from affiliates 147,967 - 147,967 - - - Other 508,264 - 508,264 - - - Maintenance 275,510 - 275,510 - - - Depreciation and amortization 383,473 - 383,473 - - - Taxes other than income taxes 214,665 - 214,665 - - - ----------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 2,675,698 - 2,675,698 - - - ----------------------------------------------------------------------------------------------------------------------------------- Operating Income 910,692 910,692 Other Income (Expense): Interest income 15,101 (26,307) 15,867 7,375 15,670 2,496 Equity in earnings of unconcolidated subsidiaries 4,494 - 4,494 - - - Other, net (8,579) - (8,579) - - - ----------------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 921,708 (26,307) 922,747 7,375 15,670 2,496 ----------------------------------------------------------------------------------------------------------------------------------- Interest and Other: Interest expense, net 246,436 (25,541) 220,895 - - - Distributions on preferred securities of subsidiaries 24,775 (766) - 7,375 15,670 2,496 ----------------------------------------------------------------------------------------------------------------------------------- Total interest charges and other, net 271,211 (26,307) 271,977 7,375 15,670 2,496 ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 650,497 - - - - - Income taxes 248,597 - - - - - ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Cumulative Effect of Accounting Change 401,900 Cumulative effect of accounting change, net of tax 353 ----------------------------------------------------------------------------------------------------------------------------------- Net Income 402,253 - - - - - Dividends on Preferred Stock 15,524 - - - - - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 386,729 $ - $ - $ - $ - $ - ===================================================================================================================================
A-18
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) ----------------------------------------------------------------------------------------------------------------------------------- ALABAMA ALABAMA ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I TRUST II TRUST III ---------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 402,253 $ - $402,253 $ - $ - $ - Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 437,490 - 437,490 - - - Deferred income taxes and investment tax credits, net (21,569) - (21,569) - - - Other, net (122,651) - (122,651) - - - Change in current assets and liabilities - Receivables, net 88,325 - 88,325 - - - Fossil fuel stock (38,663) - (38,663) - - - Materials and supplies (13,025) - (13,025) - - - Accounts payable (83,077) - (83,077) - - - Energy cost recovery, retail 154,320 - 154,320 - - - Other 34,503 - 34,503 - - - ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 837,906 - 837,906 - - - ----------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (635,540) - (635,540) - - - Sales of property 102068 102,068 Other (34,771) - (34,771) - - - ----------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (568,243) - (568,243) - - - ----------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net (271,347) - (271,347) - - - Proceeds-- Common stock 15,642.00 15,642 Other long-term debt 477,000 - 477,000 - - - Capital contributions from parent company 107,313 - 107,313 - - - Retirements-- First mortgage bonds (138,991) - (138,991) - - - Other long term debt (19,021) - (19,021) - - - Payment of preferred stock dividends (14,942) - (14,942) - - - Payment of common stock dividends (393,900) - (393,900) - - - Other-- (9,908) - (9,908) - - - ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities (248,154) - (248,154) - - - ----------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 21,509 - 21,509 - - - Cash and Cash Equivalents at Beginning of Period 14,247 - 14,247 - - - ----------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 35,756 $ - $ 35,756 $ - $ - $ - ===================================================================================================================================
A-19
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) ALABAMA ALABAMA ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I TRUST II TRUST III ----------------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 35,756 $ - $ 35,756 $ - $ - $ - Receivables - Customer accounts receivable 281,985 - 281,985 - - - Unrecovered retail fuel clause revenue 83,497 - 83,497 - - - Other accounts and notes receivable 49,940 - 49,940 - - - Affiliated companies 72,639 - 72,639 - - - Accumulated provision for uncollectible accounts (5,237) - (5,237) - - - Fossil fuel stock, at average cost 99,278 - 99,278 - - - Materials and supplies, at average cost 191,324 - 191,324 - - - Other 74,640 - 74,640 - - - ----------------------------------------------------------------------------------------------------------------------------------- Total current assets 883,822 - 883,822 - - - ----------------------------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment 8,296,686 - 8,296,686 - - - ----------------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 374,494 (368,472) 385,230 100,000 206,186 51,550 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 334,830 - 334,830 - - - Debt expense, being amortized 8,150 - 8,150 - - - Premium on reacquired debt, being amortized 77,173 - 77,173 - - - Prepaid pension Costs 314,100 - 314,100 - - - Department of Energy assessments 21,015 - 21,015 - - - Other 108,031 - 108,031 - - - ----------------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 863,299 - 863,299 - - - ----------------------------------------------------------------------------------------------------------------------------------- Total Assets $ 10,418,301 $ (368,472) $10,429,037 $ 100,000 $ 206,186 $ 51,550 ===================================================================================================================================
A-20
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) ALABAMA ALABAMA ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I TRUST II TRUST III ---------------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ 5,382 $ - $ 5,382 $ - $ - $ - Notes payable 9,996 - 9,996 - - - Accounts payable - Affiliated 98,268 - 98,268 - - - Other 151,705 - 151,705 - - - Customer deposits 42,124 - 42,124 - - - Taxes accrued 132,026 - 132,026 - - - Interest accrued 35,522 - 35,522 - - - Vacation pay accrued 32,324 - 32,324 - - - Other 93,589 - 93,589 - - - ---------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 600,936 - 600,936 - - - ---------------------------------------------------------------------------------------------------------------------------------- Long-term debt 3,742,346 (357,736) 3,384,610 - - - ---------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 1,387,661 - 1,387,661 - - - Deferred credits related to income taxes 202,881 - 202,881 - - - Accumulated deferred investment tax credits 238,225 - 238,225 - - - Employee benefits provisions 99,919 - 99,919 - - - Prepaid capacity revenues 40,730 - 40,730 - - - Other 130,214 - 130,214 - - - ---------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 2,099,630 - 2,099,630 - - - ---------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 347,000 (10,736) - 100,000 206,186 51,550 Cumulative preferred stock 317,512 - - - - - Common stock equity 3,310,877 - 3,310,877 - - - ---------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 10,418,301 $(368,472) $ 10,429,037 $ 100,000 $ 206,186 $ 51,550 ----------------------------------------------------------------------------------------------------------------------------------
A-21 Notes to ALABAMA's Consolidated Financial Statements (A) Represents equity in earnings of SEGCO, a non-consolidated subsidiary in which ALABAMA has 50% ownership, which is accounted for on the equity basis. See pages A-2 through A-15 for SEGCO's financial statements consolidated for SOUTHERN. (B) Includes $463,959 in earnings of Alabama Property Company, a non-consolidated subsidiary, which is accounted for on the equity basis. See pages A-23 through A-24 for Alabama Property Company's financial statements. (C) Represents ALABAMA's investment in SEGCO. (D) Includes $10,417,599 of investments in Alabama Property Company. A-22 ALABAMA PROPERTY COMPANY STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (Unaudited; Not Consolidated in Parent, ALABAMA) REVENUES: Sales of recreational lots $ 6,154 Rentals 141,410 Interest on securities owned 250,225 Profit on sale of land 667,011 Non-operating income 50,388 --------- Total Revenues 1,115,188 COSTS AND EXPENSES: Operating expenses 245,309 Taxes other than income taxes 123,842 Income taxes 282,078 --------- Total costs and expenses 651,229 --------- NET INCOME $ 463,959 =========== ALABAMA PROPERTY COMPANY STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2001 (Unaudited; Not Consolidated in Parent, ALABAMA) RETAINED EARNINGS AT DECEMBER 31, 2000 $9,493,074 Net Income 463,959 ----------- RETAINED EARNINGS AT DECEMBER 31, 2001 $9,957,033 ========== A-23 ALABAMA PROPERTY COMPANY BALANCE SHEET AT DECEMBER 31, 2001 (Unaudited; Not Consolidated in Parent, ALABAMA) ASSETS ------ CURRENT ASSETS: Cash $ 50,288 Temporary cash investments 6,611,065 Accounts receivable Other 2,500 Associated Companies 36,496 ----------- Total current assets 6,700,349 PROPERTY AND MINERAL RIGHTS HELD FOR FUTURE DEVELOPMENT 3,900,198 ----------- Total Assets $10,600,547 =========== LIABILITIES AND CAPITALIZATION ------------------------------ CURRENT LIABILITIES: Accounts payable to associated companies $ 18,751 Accrued income taxes 164,177 ----------- Total current liabilities 182,928 ----------- SHAREHOLDER'S INVESTMENT: Common stock, $150 par value; 1,000 shares authorized, issued and outstanding 150,000 Additional paid-in capital 310,566 Retained earnings 9,957,033 ----------- Total shareholder's investment 10,417,599 ----------- Total liabilities and capitalization $10,600,527 =========== A-24
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT ----------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ 4,965,794 $ (839) $4,965,794 $ 839 ----------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 939,092 - 939,092 - Purchased and interchanged, net 442,196 - 442,196 - Purchase power from affiliates 329,232 - 329,232 - Other 810,043 (839) 810,882 - Maintenance 430,413 - 430,413 - Depreciation and amortization 600,631 - 600,631 - Taxes other than income taxes 202,483 - 202,164 319 ----------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 3,754,090 (839) 3,754,610 319 ----------------------------------------------------------------------------------------------------------------------------------- Operating Income 1,211,704 - 1,211,184 520 Other Income (Expense): Interest income 4,264 (61,828) 4,264 919 Equity in earnings of unconsolidated subsidiaries 4,178 - 4,178 - Other, net (2,816) - (2,816) - ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Interest and Income Taxes 1,217,330 (61,828) 1,216,810 1,439 ----------------------------------------------------------------------------------------------------------------------------------- Interest Charges and Other: Interest on long-term debt 161,562 (61,828) 222,990 400 Interest on notes payable 24,456 - 24,456 - Amortization of debt discount, premium and expense, net 15,078 - 15,078 - Other interest charges, net (17,217) - (17,217) - Distributions on preferred securities of subsidiary companies 59,104 - - - ----------------------------------------------------------------------------------------------------------------------------------- Total interest charges and other, net 242,983 (61,828) 245,307 400 ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 974,347 - 971,503 1,039 ----------------------------------------------------------------------------------------------------------------------------------- Income taxes 363,599 - 363,197 402 ----------------------------------------------------------------------------------------------------------------------------------- Net Income Before Cumulative Effect of Accounting Change 610,748 - 608,306 637 Cumulative effect of accounting change, net of taxes 257 - 257 - ----------------------------------------------------------------------------------------------------------------------------------- Net Income 611,005 - 608,563 637 Dividends on Preferred Stock 670 - 670 - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 610,335 $ - $ 607,893 $ 637 ===================================================================================================================================
A-25a
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV --------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ - $ - $ - $ - --------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel - - - - Purchased and interchanged, net - - - - Purchase power from affiliates - - - - Other - - - - Maintenance - - - - Depreciation and amortization - - - - Taxes other than income taxes - - - - --------------------------------------------------------------------------------------------------------------------------------- Total operating expenses - - - - --------------------------------------------------------------------------------------------------------------------------------- Operating Income - - - - Other Income (Expense): Interest income 17,977 13,711 15,121 14,100 Equity in earnings of unconsolidated subsidiaries - - - - Other, net - - - - --------------------------------------------------------------------------------------------------------------------------------- Earnings Before Interest and Income Taxes 17,977 13,711 15,121 14,100 --------------------------------------------------------------------------------------------------------------------------------- Interest Charges and Other: Interest on long-term debt - - - - Interest on notes payable - - - - Amortization of debt discount, premium and expense, net - - - - Other interest charges, net - - - - Distributions on preferred securities of subsidiary companies 17,437 13,300 14,667 13,700 --------------------------------------------------------------------------------------------------------------------------------- Total interest charges and other, net 17,437 13,300 14,667 13,700 --------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 540 411 454 400 --------------------------------------------------------------------------------------------------------------------------------- Income taxes - - - - --------------------------------------------------------------------------------------------------------------------------------- Net Income Before Cumulative Effect of Accounting Change 540 411 454 400 Cumulative effect of accounting change, net of taxes - - - - --------------------------------------------------------------------------------------------------------------------------------- Net Income 540 411 454 400 Dividends on Preferred Stock - - - - --------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 540 $ 411 $ 454 $ 400 =================================================================================================================================
A-25b
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT --------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 611,005 $ - $ 608,563 $ 637 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 697,143 - 697,143 - Deferred income taxes and investment tax credits, net (48,329) - (47,612) (717) Allowance for equity funds used during construction (9,081) - (9,081) - Other, net (83,322) - (83,322) - Change in current assets and liabilities - Receivables, net 78,532 2,442 77,895 - Inventories (118,924) - (118,924) - Payables (15,406) (2,442) (12,964) - Taxes accrued 18,392 - 17,652 740 Energy cost recovery, retail (29,839) - (29,839) - Other (39,009) - (39,009) - --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 1,061,162 - 1,060,502 660 --------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (1,389,751) - (1,389,751) - Sales of property 534,760 - 534,760 - Other (4,774) - (4,774) - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (859,765) - (859,765) - --------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 43,698 - 43,698 - Proceeds-- Senior notes and other long-term debt 600,000 - 599,781 219 Pollution control bonds 404,535 - 404,535 - Capital contributions from parent company 225,060 - 225,060 - Retirements-- First mortgage bonds (390,140) - (390,140) - Pollution control bonds (385,035) - (385,035) - Capital distributions to parent company (160,000) - (160,000) - Payment of preferred stock dividends (578) - (578) - Payment of common stock dividends (527,300) - (527,300) - Other-- (17,747) - (16,868) (879) --------------------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities (207,507) - (206,847) (660) --------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents (6,110) - (6,110) - Cash and Cash Equivalents at Beginning of Year 29,370 - 29,370 - --------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ 23,260 $ - $ 23,260 $ - =================================================================================================================================
A-26a
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV --------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 540 $ 411 $ 454 $ 400 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization - - - - Deferred income taxes and investment tax credits, net - - - - Allowance for equity funds used during construction - - - - Other, net - - - - Change in current assets and liabilities - Receivables, net (540) (411) (454) (400) Inventories - - - - Payables - - - - Taxes accrued - - - - Energy cost recovery, retail - - - - Other - - - - --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities - - - - --------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - - - - Sales of property - - - - Other - - - - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities - - - - --------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net - - - - Proceeds-- Senior notes and other long-term debt - - - - Pollution control bonds - - - - Capital contributions from parent company - - - - Retirements-- First mortgage bonds - - - - Pollution control bonds - - - - Capital distributions to parent company - - - - Payment of preferred stock dividends - - - - Payment of common stock dividends - - - - Other-- - - - - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities - - - - --------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents - - - - Cash and Cash Equivalents at Beginning of Year - - - - --------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ - $ - $ - $ - =================================================================================================================================
A-26b
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT ---------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 23,260 $ - $ 23,260 $ - Receivables - Customer accounts receivable 537,784 - 537,784 - Other accounts and notes receivable 129,073 (8,142) 129,073 - Affiliated companies 87,786 - 87,786 - Accumulated provision for uncollectible accts (8,895) - (8,895) - Fossil fuel stock, at average cost 202,759 - 202,759 - Materials and supplies, at average cost 279,237 - 279,237 - Other 125,246 - 125,246 - ---------------------------------------------------------------------------------------------------------------------------- Total current assets 1,376,250 (8,142) 1,376,250 - ---------------------------------------------------------------------------------------------------------------------------- Utility Plant 10,639,246 - 10,620,978 18,268 ---------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 429,007 (865,502) 479,833 1,016 ---------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 543,584 - 543,584 - Prepaid pension costs 228,259 - 228,259 - Debt expense, being amortized 58,165 - 58,165 - Premium on reacquired debt, being amortized 173,724 - 173,724 - Other 117,706 - 117,706 - ---------------------------------------------------------------------------------------------------------------------------- Ttoal deferred charges and other assets 1,121,438 - 1,121,438 - ---------------------------------------------------------------------------------------------------------------------------- Total Assets $ 13,565,941 $ (873,644) $ 13,598,499 $ 19,284 ============================================================================================================================
A-27a
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV -------------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ - $ - $ - Receivables - Customer accounts receivable - - - - Other accounts and notes receivable 2,830 2,040 2,065 1,207 Affiliated companies - - - - Accumulated provision for uncollectible accounts - - - - Fossil fuel stock, at average cost - - - - Materials and supplies, at average cost - - - - Other - - - - -------------------------------------------------------------------------------------------------------------------------------- Total current assets 2,830 2,040 2,065 1,207 -------------------------------------------------------------------------------------------------------------------------------- Utility Plant - - - - -------------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 231,959 180,412 195,103 206,186 -------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - Prepaid pension costs - - - - Debt expense, being amortized - - - - Premium on reacquired debt, being amortized - - - - Other - - - - -------------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets - - - - -------------------------------------------------------------------------------------------------------------------------------- Total Assets $234,789 $182,452 $197,168 $ 207,393 ================================================================================================================================
A-27b
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT ---------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ 311,620 $ - $ 311,620 $ - Notes payable to banks 747,537 - 747,537 - Accounts payable - Affiliated 109,591 - 109,591 - Other 409,253 - 409,253 - Customer deposits 83,172 - 83,172 - Taxes accrued 161,054 - 160,383 671 Interest accrued 46,942 (8,142) 55,084 - Vacation pay accrued 41,830 - 41,830 - Other 112,686 - 112,686 - ---------------------------------------------------------------------------------------------------------------------------- Totral current liabilities 2,023,685 (8,142) 2,031,156 671 ---------------------------------------------------------------------------------------------------------------------------- Long-Term Debt 2,961,726 (827,236) 3,775,386 13,576 ---------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 2,163,959 - 2,164,636 (677) Accumulated deferred investment tax credits 337,482 - 337,482 - Deferred credits related to income taxes 229,216 - 229,216 - Employee benefits provisions 207,795 - 207,795 - Other 440,774 - 440,774 - ---------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 3,379,226 - 3,379,903 (677) ---------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 789,250 - - - ---------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock 14,569 - 14,569 - ---------------------------------------------------------------------------------------------------------------------------- Common Stockholder's Equity 4,397,485 (38,266) 4,397,485 5,714 ---------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 13,565,941 $ (873,644) $13,598,499 $ 19,284 ============================================================================================================================
A-28a
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV ---------------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ - $ - $ - $ - Notes payable to banks - - - - Accounts payable - Affiliated - - - - Other - - - - Customer deposits - - - - Taxes accrued - - - - Interest accrued - - - - Vacation pay accrued - - - - Other - - - - ---------------------------------------------------------------------------------------------------------------------------------- Totral current liabilities - - - - ---------------------------------------------------------------------------------------------------------------------------------- Long-Term Debt - - - - ---------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - - Accumulated deferred investment tax credits - - - - Deferred credits related to income taxes - - - - Employee benefits provisions - - - - Other - - - - ---------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities - - - - ---------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 225,000 175,000 189,250 200,000 ---------------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock - - - - ---------------------------------------------------------------------------------------------------------------------------------- Common Stockholder's Equity 9,789 7,452 7,918 7,393 ---------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $234,789 $182,452 $ 197,168 $ 207,393 ==================================================================================================================================
A-28b Notes to GEORGIA's Consolidated Financial Statements (A) Includes $3,752,500 equity in earnings for SEGCO, a non-consolidated subsidiary in which GEORGIA has 50% ownership. SEGCO is accounted for on the equity basis. See pages A-2 through A-15 for SEGCO's financial statements consolidated for SOUTHERN. (B) Includes $28,944,000 of investments in SEGCO. A-29
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GULF GULF Consolidated Eliminations CORPORATE -------------------------------------------------------------------------------------------------------- Total operating revenues $ 725,203 $ - $ 725,203 -------------------------------------------------------------------------------------------------------- Operating Expenses: Operation -- Fuel 200,633 - 200,633 Purchased power from non-affiliates 65,585 - 65,585 Purchased power from affiliates 40,660 - 40,660 Other 117,394 - 117,394 Maintenance 60,193 - 60,193 Depreciation and amortization 68,218 - 68,218 Taxes other than income taxes 55,261 - 55,261 -------------------------------------------------------------------------------------------------------- Total operating expenses 607,944 - 607,944 -------------------------------------------------------------------------------------------------------- Operating income 117,259 - 117,259 -------------------------------------------------------------------------------------------------------- Other Income (Expense): Interest income 1,258 (6,676) 1,258 Other, net 2,778 - 2,778 -------------------------------------------------------------------------------------------------------- Earnings Before Interest and Income Taxes 121,295 (6,676) 121,295 -------------------------------------------------------------------------------------------------------- Interest and Other: -------------------------------------------------------------------------------------------------------- Interest expense, net 25,034 (6,676) 31,710 Distributions on preferred securities of subsidiary 6,477 - - -------------------------------------------------------------------------------------------------------- Total interest charges and other, net 31,511 (6,676) 31,710 -------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 89,784 - 89,585 -------------------------------------------------------------------------------------------------------- Income taxes 31,260 - 31,260 -------------------------------------------------------------------------------------------------------- Net Income 58,524 - 58,325 Dividends on Preferred Stock 217 - 217 -------------------------------------------------------------------------------------------------------- Net Income After Dividends on Preferred Stock $ 58,307 $ - $ 58,108 ========================================================================================================
A-30a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GULF GULF GULF TRUST I TRUST II TRUST III ------------------------------------------------------------------------------------------------------------------------- Total operating revenues $ - $ - $ - ------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Operation -- Fuel - - - Purchased power from non-affiliates - - - Purchased power from affiliates - - - Other - - - Maintenance - - - Depreciation and amortization - - - Taxes other than income taxes - - - ------------------------------------------------------------------------------------------------------------------------- Total operating expenses - - - ------------------------------------------------------------------------------------------------------------------------- Operating income - - - ------------------------------------------------------------------------------------------------------------------------ Other Income (Expense): Interest income 3,144 3,247 285 Other, net - - - ------------------------------------------------------------------------------------------------------------------------- Earnings Before Interest and Income Taxes 3,144 3,247 285 ------------------------------------------------------------------------------------------------------------------------- Interest and Other: ------------------------------------------------------------------------------------------------------------------------- Interest expense, net - - - Distributions on preferred securities of subsidiary 3,050 3,150 276 ------------------------------------------------------------------------------------------------------------------------- Total interest charges and other, net 3,050 3,150 276 ------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 94 97 9 ------------------------------------------------------------------------------------------------------------------------- Income taxes - - - ------------------------------------------------------------------------------------------------------------------------- Net Income 94 97 9 Dividends on Preferred Stock - - - ------------------------------------------------------------------------------------------------------------------------- Net Income After Dividends on Preferred Stock $ 94 $ 97 $ 9 =========================================================================================================================
A-30b
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GULF GULF Consolidated Eliminations CORPORATE ---------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 58,524 $ - $ 58,324 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 72,320 - 72,320 Deferred income taxes and investment tax credits, net 3,394 - 3,394 Other, net (1,804) - (1,804) Change in current assets and liabilities - Receivables, net 15,991 191 15,991 Fossil fuel stock (30,887) - (30,887) Materials and supplies 176 - 176 Accounts payable (14,492) (191) (14,292) Provision for rate refund 1,530 - 1,530 Other (31,249) - (31,249) ---------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES 73,503 - 73,503 ---------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Gross property additions (274,668) - (274,668) Other 5,290 - 5,290 ---------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES (269,378) - (269,378) ---------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Increase (decrease) in notes payable, net 44,311 - 44,311 Proceeds-- Other long-term debt 135,000 - 135,000 Preferred securities 30,000 - 30,000 Capital contributions from parent company 72,484 - 72,484 Retirements-- First mortgage bondst (30,000) - (30,000) Other long-term debt (862) - (862) Payment of preferred stock dividends (217) - (217) Payment of common stock dividends (53,275) - (53,275) Other (3,703) - (3,703) ---------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR FINANCINGS 193,738 - 193,738 ---------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents (2,137) - (2,137) Cash and Cash Equivalents at Beginning of Period 4,381 - 4,381 ---------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 2,244 $ - $ 2,244 ============================================================================================================================
A-31a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) GULF GULF GULF TRUST I TRUST II TRUST III -------------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 94 $ 97 $ 9 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization - - - Deferred income taxes and investment tax credits, net - - - Other, net - - - Change in current assets and liabilities - Receivables, net (94) (97) (9) Fossil fuel stock - - - Materials and supplies - - - Accounts payable - - - Provision for rate refund - - - Other - - - -------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES - - - -------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Gross property additions - - - Other - - - -------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES - - - -------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Increase (decrease) in notes payable, net - - - Proceeds-- Other long-term debt Preferred securities Capital contributions from parent company - - - Retirements-- First mortgage bondst Other long-term debt - - - Payment of preferred stock dividends - - - Payment of common stock dividends - - - Other - - - -------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR FINANCINGS - - - -------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents - - - Cash and Cash Equivalents at Beginning of Period - - - -------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ - $ - $ - ================================================================================================================================
A-31b
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GULF GULF Consolidated Eliminations CORPORATE -------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 2,244 $ - $ 2,244 Receivables - Customer accounts receivable 64,113 - 64,113 Other accounts and notes receivable 4,316 (1,142) 4,316 Affiliated companies 2,689 - 2,689 Accumulated provision for uncollectible accts (1,342) - (1,342) Fossil fuel stock, at average cost 47,655 - 47,655 Materials and supplies, at average cost 28,857 - 28,857 Regulatory clauses under recovery 24,912 - 24,912 Other 12,662 - 12,662 -------------------------------------------------------------------------------------------------------------- Total current assets 186,106 (1,142) 186,106 -------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment 1,303,456 - 1,303,456 -------------------------------------------------------------------------------------------------------------- Other Property and Investments 7,049 (122,114) 10,606 -------------------------------------------------------------------------------------------------------------- Deferred Charges and OtherAssets: Deferred charges related to income taxes 16,766 - 16,766 Prepaid pension costs 26,364 - 26,364 Debt expense, being amortized 3,036 - 3,036 Premium on reacquired debt, being amortized 14,518 - 14,518 Other 12,222 - 12,222 -------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 72,906 - 72,906 -------------------------------------------------------------------------------------------------------------- Total Assets $ 1,569,517 $ (123,256) $ 1,573,074 ==============================================================================================================
A-32a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GULF GULF GULF TRUST I TRUST II TRUST III ------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ - $ - Receivables - Customer accounts receivable - - - Other accounts and notes receivable 464 393 285 Affiliated companies - - - Accumulated provision for uncollectible accts - - - Fossil fuel stock, at average cost - - - Materials and supplies, at average cost - - - Regulatory clauses under recovery - - - Other - - - ------------------------------------------------------------------------------------------------------------------------ Total current assets 464 393 285 ------------------------------------------------------------------------------------------------------------------------ Property, Plant and Equipment - - - ------------------------------------------------------------------------------------------------------------------------ Other Property and Investments 41,237 46,392 30,928 ------------------------------------------------------------------------------------------------------------------------ Deferred Charges and OtherAssets: Deferred charges related to income taxes - - - Prepaid pension costs - - - Debt expense, being amortized - - - Premium on reacquired debt, being amortized - - - Other - - - ------------------------------------------------------------------------------------------------------------------------ Total deferred charges and other assets - - - ------------------------------------------------------------------------------------------------------------------------ Total Assets $ 41,701 $ 46,785 $ 31,213 ========================================================================================================================
A-32b
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GULF GULF Consolidated Eliminations CORPORATE ---------------------------------------------------------------------------------------------------------------- Current Liabilities: Notes payable $ 87,311 $ - $ 87,311 Accounts payable Affiliated companies 18,202 - 18,202 Other 38,308 - 38,308 Customer deposits 14,506 - 14,506 Taxes accrued 16,215 - 16,215 Interest accrued 8,305 (1,142) 9,447 Provision for rate refund 1,530 - 1,530 Vacation pay accrued 4,725 - 4,725 Regulatory clauses over recovery 3,719 - 3,719 Other 6,528 - 6,528 ---------------------------------------------------------------------------------------------------------------- Total current liabilities 199,349 (1,142) 200,491 ---------------------------------------------------------------------------------------------------------------- Long-term debt 467,784 (118,557) 586,341 ---------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 161,968 - 161,968 Accumulated deferred investment tax credits 24,056 - 24,056 Deferred credits related to income taxes 28,293 - 28,293 Employee benefits provisions 37,892 - 37,892 Other 26,045 - 26,045 ---------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 278,254 - 278,254 ---------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 115,000 - - ---------------------------------------------------------------------------------------------------------------- Preferred stock 4,236 - 4,236 ---------------------------------------------------------------------------------------------------------------- Common stockholder's equity 504,894 (3,557) 503,752 ---------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 1,569,517 $ (123,256) $ 1,573,074 ================================================================================================================
A-33a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) GULF GULF GULF TRUST I TRUST II TRUST III ----------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Notes payable $ - $ - $ - Accounts payable Affiliated companies - - - Other - - - Customer deposits - - - Taxes accrued - - - Interest accrued - - - Provision for rate refund - - - Vacation pay accrued - - - Regulatory clauses over recovery - - - Other - - - ------------------------------------------------------------------------------------------------------------------------ Total current liabilities - - - ------------------------------------------------------------------------------------------------------------------------ Long-term debt - - - ------------------------------------------------------------------------------------------------------------------------ Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - Accumulated deferred investment tax credits - - - Deferred credits related to income taxes - - - Employee benefits provisions - - - Other - - - ------------------------------------------------------------------------------------------------------------------------ Total deferred credits and other liabilities - - - ------------------------------------------------------------------------------------------------------------------------ Company obligated mandatorily redeemable preferred securities 40,000 45,000 30,000 ------------------------------------------------------------------------------------------------------------------------ Preferred stock - - - ------------------------------------------------------------------------------------------------------------------------ Common stockholder's equity 1,701 1,785 1,213 ------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholder's Equity $ 41,701 $ 46,785 $ 31,213 ========================================================================================================================
A-33b
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I -------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ 796,065 $ - $ 796,065 $ $ - -------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 277,946 - 277,946 - Purchased power from non-affiliates 41,254 - 41,254 - Purchased power from affiliates 53,990 - 53,990 - Other 134,845 - 134,845 - Maintenance 56,153 - 56,153 - Depreciation and amortization 54,077 - 54,077 - Taxes other than income taxes 44,966 - 44,966 - -------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 663,231 - 663,231 -------------------------------------------------------------------------------------------------------------------------------- Operating Income 132,834 132,834 Other Income: Interest income 369 (2,712) 369 2,712 Other, net (532) - (532) - -------------------------------------------------------------------------------------------------------------------------------- Earnings Before Interest and Income Taxes 132,671 (2,712) 132,671 2,712 -------------------------------------------------------------------------------------------------------------------------------- Interest Charges and Other: Interest on long-term debt 18,186 (2,712) 20,898 - Interest on notes payable 2,520 - 2,520 - Amortization of debt discount, premium and expense, net 954 - 954 - Other interest charges 1,908 - 1,908 - Distributions on preferred securities of subsidiary trust 2,712 - - 2,712 -------------------------------------------------------------------------------------------------------------------------------- Net interest charges 26,280 (2,712) 26,280 2,712 -------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 106,391 - 106,391 - Income taxes 40,533 - 40,533 - -------------------------------------------------------------------------------------------------------------------------------- Earnings Before Cumulative Effect of Accounting Change 65,858 - 65,858 - Cumulative effect of accounting change, net of taxes 70 - 70 -------------------------------------------------------------------------------------------------------------------------------- Net Income 65,928 - 65,928 Dividends on Preferred Stock 2,041 - 2,041 - ------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 63,887 $ - $ 63,887 $ - ================================================================================================================================
A-34
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I --------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 65,928 $ - $ 65,928 $ - Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 58,105 - 58,105 - Deferred income taxes and investment tax credits, net (9,718) - (9,718) - Other, net 2,441 - 2,441 - Change in current assets and liabilities - Receivables, net (7,796) - (7,796) - Fossil fuel stock (20,269) - (20,269) - Materials and supplies (1,529) - (1,529) - Accounts payable 53,462 - 53,462 - Other 11,251 - 11,251 - --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 151,875 - 151,875 - --------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (61,193) - (61,193) - Other (2,988) - (2,988) - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (64,181) - (64,181) - --------------------------------------------------------------------------------------------------------------------------------- Financing Activities and Capital Contributions Increase (decrease) in notes payable, net (40,027) - (40,027) - Proceeds-- Capital contributions from parent company 73,095 - 73,095 - Retirements-- First mortgage bonds (36,000) - (36,000) - Other long-term debt (21,021) (21,021) Payment of preferred stock dividends (2,041) - (2,041) - Payment of common stock dividends (50,200) - (50,200) - Other (81) - (81) - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities (76,275) - (76,275) - --------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 11,419 - 11,419 - Cash and Cash Equivalents at the Beginning of Period 7,531 - 7,531 - --------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 18,950 $ - $ 18,950 $ - =================================================================================================================================
A-35
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I -------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 18,950 $ - $ 18,950 $ - Receivables - Customer accounts receivable 63,286 - 63,286 - Other accounts and notes receivable 26,068 - 26,068 - Affiliated companies 22,569 - 22,569 - Accumulated provision for uncollectible accounts (856) - (856) - Fossil fuel stock, at average cost 31,489 - 31,489 - Materials and supplies, at average cost 23,223 - 23,223 - Other 16,002 - 16,002 - -------------------------------------------------------------------------------------------------------------------------- Total current assets 200,731 - 200,731 - -------------------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment 1,081,071 - 1,081,071 - -------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 1,900 (37,164) 2,982 36,082 -------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 13,394 - 13,394 - Prepaid pension costs 4,501 - 4,501 - Debt expense, being amortized 4,396 - 4,396 - Premium on reacquired debt, being amortized 6,719 - 6,719 - Other 20,821 - 20,821 - -------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 49,831 - 49,831 - -------------------------------------------------------------------------------------------------------------------------- Total Assets $ 1,333,533 $ (37,164) $ 1,334,615 $36,082 ==========================================================================================================================
A-36
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------- Current Liabilities Securities due within one year $ 80,020 $ - $ 80,020 $ - Notes payable 15,973 - 15,973 - Accounts payable 112,009 - 112,009 - Customer deposits 6,540 - 6,540 - Taxes accrued 50,263 - 50,263 - Interest accrued 5,079 - 5,079 - Vacation pay accrued 5,810 - 5,810 - Other 11,483 - 11,483 - ----------------------------------------------------------------------------------------------------------------------------- Total current liabilities 287,177 - 287,177 - ----------------------------------------------------------------------------------------------------------------------------- Long-term debt 233,753 - 233,753 - ----------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 138,913 - 138,913 - Deferred credits related to income taxes 23,626 - 23,626 - Accumulated deferred investment tax credits 22,268 - 22,268 - Employee benefits provisions 31,041 - 31,041 - Workforce reduction plan 8,263 - 8,263 - Other 30,003 - 30,003 - ----------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 254,114 - 254,114 - ----------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trust holding company junior subordinated notes 35,000 - - 35,000 ----------------------------------------------------------------------------------------------------------------------------- Preferred stock 31,809 - 31,809 - ----------------------------------------------------------------------------------------------------------------------------- Common stockholder's equity 491,680 (1,082) 491,680 1,082 ----------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 1,333,533 $ (1,082) $ 1,298,533 $ 36,082 =============================================================================================================================
A-37
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------------- Total Operating Revenues $ 283,852 $ - $ 283,852 $ - ----------------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Operation -- Fuel 50,796 - 50,796 - Purchased power from non-affiliates 23,147 - 23,147 - Purchase power from affiliates 49,939 - 49,939 - Other 50,607 - 50,607 - Maintenance 19,886 - 19,886 - Depreciation and amortization 25,951 - 25,951 - Taxes other than income taxes 13,984 - 13,984 - ----------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 234,310 - 234,310 - ----------------------------------------------------------------------------------------------------------------------------------- Operating Income 49,542 - 49,542 - ----------------------------------------------------------------------------------------------------------------------------------- Other Income (Expense): Interest income 173 (2,825) 173 2,825 Other, net (686) - (686) - ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Interest and Income Taxes 49,029 (2,825) 49,029 2,825 ----------------------------------------------------------------------------------------------------------------------------------- Interest and Other: Interest expense, net 12,517 (2,825) 15,342 - Distributions on preferred securities of subsidiary trust 2,740 - - 2,740 ----------------------------------------------------------------------------------------------------------------------------------- Total interest charges and other, net 15,257 (2,825) 15,342 2,740 ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 33,772 - 33,687 85 ----------------------------------------------------------------------------------------------------------------------------------- Income taxes 11,731 - 11,731 - ----------------------------------------------------------------------------------------------------------------------------------- Net Income 22,041 - 21,956 85 Cumulative effect of accounting change, net of tax 22 - 22 - ----------------------------------------------------------------------------------------------------------------------------------- Net Income After Dividends on Preferred Stock $ 22,063 $ - $ 21,978 $ 85 ===================================================================================================================================
A-38
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2001 (in thousands) --------------------------------------------------------------------------------------------------------------------------------- SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I ------------------------------------------------------------------------------------------------------------------------------ Operating Activities: Net Income $ 22,063 $ - $ 21,978 $ 85 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 27,895 - 27,895 - Deferred income taxes and investment tax credits, net (20,528) - (20,528) - Other, net 4,084 - 4,084 - Change in certain current assets and liabilities - Receivables, net 24,079 85 24,079 (85) Fossil fuel stock (2,711) - (2,711) - Material and supplies (4,025) - (4,025) - Accounts payable (8,439) (85) (8,354) - Other 12,631 - 12,631 - --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 55,049 - 55,049 - --------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (31,296) - (31,296) - Other (1,875) - (1,875) - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (33,171) - (33,171) - --------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase in notes payable, net (13,241) - (13,241) - Proceeds-- Other long-term debt 65,000 65,000 Capital contribution from parent company 1,561 - 1,561 - Retirements-- First mortgage bonds (20,642) (20,642) Other long-term debt (30,465) - (30,465) - Payment of common stock dividends (21,700) - (21,700) - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities (19,487) - (19,487) - --------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 2,391 - 2,391 - Cash and Cash Equivalents at Beginning of Period - - - - --------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 2,391 $ - $ 2,391 $ - =================================================================================================================================
A-39
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) ----------------------------------------------------------------------------------------------------------------------------- SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 2,391 $ - $ 2,391 $ - Receivables - Customer accounts receivable 29,959 - 29,959 - Unrecovered retail fuel clause revenue 11,974 - 11,974 - Other accounts and notes receivable 2,882 (260) 2,882 260 Affiliated companies 1,170 - 1,170 - Accumulated provision for uncollectible accts (500) - (500) - Fossil fuel stock, at average cost 9,851 - 9,851 - Materials and supplies, at average cost 12,969 - 12,969 - Prepaid taxes 12,511 - 12,511 - Other 586 - 586 - ----------------------------------------------------------------------------------------------------------------------------- Total current assets 83,793 (260) 83,793 260 ----------------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment 461,338 - 461,338 - ----------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 2,742 (42,474) 3,979 41,237 ----------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 12,283 - 12,283 - Cash surrender value of life insurance for deferred - - compensation plans 20,002 - 20,002 - Debt expense, being amortized 3,197 - 3,197 - Premium on reacquired debt, being amortized 6,890 - 6,890 - Other 4,498 - 4,498 - ----------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 46,870 - 46,870 0 ----------------------------------------------------------------------------------------------------------------------------- Total Assets $ 594,743 $ (42,734) $595,980 $41,497 =============================================================================================================================
A-40
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2001 (in thousands) ---------------------------------------------------------------------------------------------------------------------------------- SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I ---------------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ 1,178 $ - $ 1,178 $ - Notes payable 32,159 - 32,159 - Accounts payable 15,247 - 15,247 - Customer deposits 6,237 - 6,237 - Taxes accrued 4,255 - 4,255 - Interest accrued 4,014 (260) 4,274 - Vacation pay accrued 2,361 - 2,361 - Other 9,097 - 9,097 - ---------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 74,548 (260) 74,808 - ---------------------------------------------------------------------------------------------------------------------------------- Long-term debt 160,709 (41,237) 201,946 - ---------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 77,331 - 77,331 - Deferred credits related to income taxes 13,776 - 13,776 - Accumulated deferred investment tax credits 9,952 - 9,952 - Deferred compensation plans 8,550 - 8,550 - Employee benefits provisions 18,936 - 18,936 - Other 14,023 - 14,023 - ---------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 142,568 - 142,568 - ---------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 40,000 - - 40,000 ---------------------------------------------------------------------------------------------------------------------------------- Common stockholder's equity 176,918 (1,237) 176,658 1,497 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $ 554,743 $ (42,734) $ 595,980 $ 41,497 ==================================================================================================================================
A-41
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, 2001. (File No. 1-3526.) A-2 Annual Report of ALABAMA on Form 10-K for the year ended December 31, 2001. (File No. 1-3164.) A-3 Annual Report of GEORGIA on Form 10-K for the year ended December 31, 2001. (File No. 1-6468.) A-4 Annual Report of GULF on Form 10-K for the year ended December 31, 2001. (File No. 0-2429.) A-5 Annual Report of MISSISSIPPI on Form 10-K for the year ended December 31, 2001. (File No. 0-6849.) A-6 Annual Report of SAVANNAH on Form 10-K for the year ended December 31, 2001. (File No. 1-5072.) 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 October 21, 1991, and as presently in effect. (Designated in Form U-1, File No. 70-8181, as Exhibit A-2.) B-3 Charter of ALABAMA and amendments thereto through November 21, 2001. (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 and in Form 10-K for the year ended December 31, 2001, File No. 1-3164, as Exhibit 3(b)2.) B-4 By-laws of ALABAMA as amended effective April 26, 2001, and as presently in effect. (Designated in Form 10-K for the year ended December 31, 2001, File No. 1-3164, as Exhibit 3(b)3.)
A-42
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 November 15, 2000, and as presently in effect. (Designated in GEORGIA's Form 10-K for the year ended December 31, 2000, File No. 1-6468, as Exhibit 3(c)3.) 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 May 22, 2001, and as presently in effect. (Designated in Form 10-K for the year ended December 31, 2001, 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 March 8, 2001. (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 and in Form 10-K for the year ended December 31, 2000, File No. 0-6849, as Exhibit 3(e)2.) 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-43
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit B-11 Charter of SAVANNAH and amendments thereto through December 2, 1998. (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) and in Form 10-K for the year ended December 31, 1998, File No. 1-5072, as Exhibit 3(f)2.) 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 Amended and Restated Articles of Incorporation of MESH dated February 7, 2000. B-16 By-laws of MESH. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-24.) B-17 Articles of Incorporation of Southern Management Development, Inc. and amendments thereto through March 25, 1993. (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 and in Form U5S for 1993, File No. 30-222-2, as Exhibit B-25.) B-18 Amendment to the Articles of Incorporation of Southern Management Development, Inc. dated March 6, 2001. B-19 Amended and Restated By-laws of Southern Management Development, Inc. effective March 5, 2001. B-20 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-21 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-22 Certificate of Incorporation of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-30.) B-23 By-laws of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-31.) B-24 Certificate of Incorporation of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-31.)
A-44
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit B-25 By-laws of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-32.) B-26 Certificate of Incorporation of Southern Telecom, Inc. as amended through February 17, 1998. B-27 By-Laws of Southern Telecom, Inc. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-50.) B-28 Certificate of Incorporation of Southern Company Funding Corporation dated January 17, 2001. B-29 By-Laws of Southern Company Funding Corporation effective January 17, 2001. B-30 Certificate of Incorporation of Southern Company Holdings, Inc. as amended through March 6, 2001. B-31 By-Laws of Southern Company Holdings, Inc. effective March 5, 2001. B-32 Certificate of Incorporation of Southern Information Holding Company, Inc. as amended through February 17, 1998. B-33 By-Laws of Southern Information Holding Company, Inc. effective September 9, 1996. B-34 Certificate of Incorporation of Southern Power Company dated January 8, 2001. B-35 By-Laws of Southern Power Company effective January 8, 2001. C-1 Subordinated Note Indenture dated as of February 1, 1997, among SOUTHERN, Southern Company Capital Funding, Inc. and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as 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.) C-2 Subordinated Note Indenture dated as of June 1, 1997, among SOUTHERN, Southern Company Capital Funding, Inc. and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee, and indentures supplemental thereto through of December 23, 1998. (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 and in Form 8-K dated December 18, 1998, File No. 1-3526, as Exhibit 4.4.) C-3 Senior Note Indenture dated as of February 1, 2002, among SOUTHERN, Southern Company Capital Funding, Inc. 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.)
A-45
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit Indenture dated as of January 1, 1942, between ALABAMA and JPMorgan Chase Bank (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, 1996, between ALABAMA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indenture supplemental thereto dated as of January 1, 1996. (Designated in Certificate of Notification, File No. 70-8461, as Exhibits E and F.) C-6 Subordinated Note Indenture dated as of January 1, 1997, between ALABAMA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through February 25, 1999. (Designated in Form 8-K dated January 9, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2 and in Form 8-K dated February 18, 1999, File No. 1-3164, as Exhibit 4.2.) C-7 Senior Note Indenture dated as of December 1, 1997, between ALABAMA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through August 29, 2001. (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 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 and in Form 8-K dated August 22, 2001, File No. 1-3164, as Exhibits 4.2(a) and 4.2(b).)
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EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit C-8 Indenture dated as of March 1, 1941, between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto dated as of March 1, 1941, March 3, 1941 (3 indentures), March 6, 1941 (139 indentures), March 1, 1946 (88 indentures) and December 1, 1947, through October 15, 1995. (Designated in Registration Nos. 2-4663 as Exhibits B-3 and B-3(a), 2-7299 as Exhibit 7(a)-2, 2-61116 as Exhibit 2(a)-3 and 2(a)-4, 2-62488 as Exhibit 2(a)-3, 2-63393 as Exhibit 2(a)-4, 2-63705 as Exhibit 2(a)-3, 2-68973 as Exhibit 2(a)-3, 2-70679 as Exhibit 4(a)-(2), 2-72324 as Exhibit 4(a)-2, 2-73987 as Exhibit 4(a)-(2), 2-77941 as Exhibits 4(a)-(2) and 4(a)-(3), 2-79336 as Exhibit 4(a)-(2), 2-81303 as Exhibit 4(a)-(2), 2-90105 as Exhibit 4(a)-(2), 33-5405 as Exhibit 4(a)-(2), 33-14367 as Exhibits 4(a)-(2) and 4(a)-(3), 33-22504 as Exhibits 4(a)-(2), 4(a)-(3) and 4(a)-(4), 33-32420 as Exhibit 4(a)-(2), 33-35683 as Exhibit 4(a)-(2), in GEORGIA's Form 10-K for the year ended December 31, 1990, File No. 1-6468, as Exhibit 4(a)(3), in Form 10-K for the year ended December 31, 1991, File No. 1-6468, as Exhibit 4(a)(5), in Registration No. 33-48895 as Exhibit 4(a)-(2), in Form 8-K dated August 26, 1992, File No. 1-6468, as Exhibit 4(a)-(3), in Form 8-K dated September 9, 1992, File No. 1-6468, as Exhibits 4(a)-(3) and 4(a)-(4), in Form 8-K dated September 23, 1992, File No. 1-6468, as Exhibit 4(a)-(3), in Form 8-A dated October 12, 1992, as Exhibit 2(b), in Form 8-K dated January 27, 1993, File No. 1-6468, as Exhibit 4(a)-(3), in Registration No. 33-49661 as Exhibit 4(a)-(2), in Form 8-K dated July 26, 1993, File No. 1-6468, as Exhibit 4, in Certificate of Notification, File No. 70-7832, as Exhibit M, in Certificate of Notification, File No. 70-7832, as Exhibit C, in Certificate of Notification, File No. 70-7832, as Exhibits K and L, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Certificate of Notification, File No. 70-8443, as Exhibit E, in Certificate of Notification, File No. 70-8443, as Exhibit E, in Certificate of Notification, File No. 70-8443, as Exhibit E, in GEORGIA's Form 10-K for the year ended December 31, 1994, File No. 1-6468, as Exhibits 4(c)2 and 4(c)3, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Form 8-K dated May 17, 1995, File No. 1-6468, as Exhibit 4 and in GEORGIA's Form 10-K for the year ended December 31, 1995, File No. 1-6468, as Exhibits 4(c)2, 4(c)3, 4(c)4, 4(c)5 and 4(c)6.) C-9 Satisfaction and Discharge of Indenture, Release and Deed of Reconveyance dated as of February 27, 2002, by JPMorgan Chase Bank, as Trustee, to GEORGIA relating to the defeasance of the Indenture dated as of March 1, 1941 between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through October 15, 1995. (Designated in GEORGIA's Form 10-K for the year ended December 31, 2001, File No. 1-6468, as Exhibit 4(c)2.) C-10 Subordinated Note Indenture dated as of August 1, 1996, between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through January 1, 1997. (Designated in Form 8-K dated August 21, 1996, File No. 1-6468, as Exhibits 4.1 and 4.2 and in Form 8-K dated January 9, 1997, File No. 1-6468, as Exhibit 4.2.) A-47
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit C-11 Subordinated Note Indenture dated as of June 1, 1997, between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through February 25, 1999. (Designated in Certificate of Notification, File No. 70-8461, as Exhibits D and E and in Form 8-K dated February 17, 1999, File No. 1-6468, as Exhibit 4.4.) C-12 Senior Note Indenture dated as of January 1, 1998, between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through May 8, 2001. (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 and in Form 8-K dated May 1, 2001, File No. 1-6468, as Exhibit 4.2.) C-13 Indenture dated as of September 1, 1941, between GULF and JPMorgan Chase Bank (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-14 Subordinated Note Indenture dated as of January 1, 1997, between GULF and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through November 16, 2001. (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 and in Form 8-K dated November 8, 2001, File No. 0-2429, as Exhibit 4.2.) C-15 Senior Note Indenture dated as of January 1, 1998, between GULF and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indenture supplemental thereto dated as of January 30, 2002. (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 and in Form 8-K dated January 18, 2002, File No. 0-2429, as Exhibit 4.2.)
A-48
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit C-16 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.) C-17 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-18 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 22, 2002. (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 and in Form 8-K dated March 12, 2002, File No. 0-6849, as Exhibit 4.2.) C-19 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-20 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.)
A-49
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit C-21 Senior Note Indenture dated as of March 1, 1998 between SAVANNAH and The Bank of New York, as Trustee and indentures supplemental thereto through May 17, 2001. (Designated in Form 8-K dated March 9, 1998, File No. 1-5072, as Exhibits 4.1 and 4.2 and in Form 8-K dated May 8, 2001, File No. 1-5072, as Exhibits 4.2(a) and 4.2(b).) D-1 Income Tax Allocation Agreement and Amendments 1 through 99 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 and in Form U5S for 2000, File No. 30-222-2, as Exhibit D-2.) D-2 Amendments 100 through 108 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. 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 and in Form U5S for 1997, File No. 30-222-2, as Exhibit E-2.) E-2 Supplement to GEORGIA's and Supplement to GULF's personnel licies pertaining to employee loans. 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 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.
A-50 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: May 1, 2002 By /s/Gale E. Klappa --------------------------- Gale E. Klappa Executive Vice President, Chief Financial Officer, and Treasurer