U5S 1 du5s.htm ANNUAL REPORT Annual Report
Table of Contents

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D. C. 20549

 


 

FORM U5S

 

ANNUAL REPORT

 

For the Fiscal Year Ended December 31, 2003

 

Filed pursuant to the Public Utility Holding Company Act of 1935

 

by

 

THE SOUTHERN COMPANY

 

270 PEACHTREE STREET, N. W.

ATLANTA, GEORGIA 30303


Table of Contents

THE SOUTHERN COMPANY

FORM U5S

2003

 

TABLE OF CONTENTS

 

    

ITEM


   PAGE NUMBER

1.    System Companies and Investments therein as of December 31, 2003    1
2.    Acquisitions or Sales of Utility Assets    5
3.    Issue, Sale, Pledge, Guarantee or Assumption 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    32
8.    Service, Sales and Construction Contracts    34
9.    Wholesale Generators and Foreign Utility Companies    35
10.    Financial Statements and Exhibits    A

 

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Table of Contents

ITEMS

 

ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003.

 

Name of Company

(Add abbreviation

    used herein)


   Number of
Common
Shares Owned


   Percentage
of Voting
Power


  

Issuer

Book

Value


   

Owner’s
Book

Value


               In Thousands

THE SOUTHERN COMPANY

                        

(SOUTHERN)

   None    None      n/a       n/a

ALABAMA POWER COMPANY

                        

(ALABAMA)

   7,250,000    100    $ 3,500,660     $ 3,500,660

Alabama Energy Providers, Inc.

   1,000    100      1       1

Alabama Property Company

   1,000    100      10,061       10,061

Alabama Power Capital Trust I

                        

(ALABAMA TRUST I) (a)

   n/a    n/a      n/a       n/a

Alabama Power Capital Trust II

                        

(ALABAMA TRUST II) (a)

   n/a    n/a      n/a       n/a

Alabama Power Capital Trust III

                        

(ALABAMA TRUST III) (a)

   n/a    n/a      n/a       n/a

Alabama Power Capital Trust IV

                        

(ALABAMA TRUST IV) (b)

   n/a    n/a      3,093       3,093

Alabama Power Capital Trust V

                        

(ALABAMA TRUST V) (b)

   n/a    n/a      6,186       6,186

Alabama Power Capital Trust VI (a)

   n/a    n/a      n/a       n/a

Alabama Power Capital Trust VII (a)

   n/a    n/a      n/a       n/a

Alabama Power Capital Trust VIII (a)

   n/a    n/a      n/a       n/a

Southern Electric

                        

Generating

                        

Company (SEGCO) (c)

   164,000    50      31,743       31,743

GEORGIA POWER COMPANY

                        

(GEORGIA)

   7,761,500    100      4,540,221       4,540,211

SEGCO (c)

   164,000    50      31,743       31,743

Piedmont-Forrest

                        

Corporation (PIEDMONT)

   100,000    100      5,360       5,360
                 11,079 (d)     11,079

Georgia Power Capital Trust IV

                        

(GEORGIA TRUST IV) (b)

   n/a    n/a      8,241       8,241

Georgia Power Capital Trust V

                        

(GEORGIA TRUST V) (b)

   n/a    n/a      15,087       15,087

Georgia Power Capital Trust VI

                        

(GEORGIA TRUST VI) (b)

   n/a    n/a      9,800       9,800

 

 

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Table of Contents
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003.

  (Continued)

 

Name of Company

(Add abbreviation

    used herein)


   Number of
Common
Shares Owned


   Percentage
of Voting
Power


   Issuer
Book
Value


   Owner’s
Book
Value


               In Thousands

Georgia Power Capital Trust VII (a)

   n/a    n/a    n/a    n/a

Georgia Power Capital Trust VIII (a)

   n/a    n/a    n/a    n/a

Georgia Power Capital Trust IX (a)

   n/a    n/a    n/a    n/a

Georgia Power Capital Trust X (a)

   n/a    n/a    n/a    n/a

GULF POWER COMPANY (GULF)

   992,717    100    561,358    561,358

Gulf Power Capital Trust I

                   

(GULF TRUST I) (a)

   n/a    n/a    n/a    n/a

Gulf Power Capital Trust II

                   

(GULF TRUST II) (a)

   n/a    n/a    n/a    n/a

Gulf Power Capital Trust III

                   

(GULF TRUST III) (b)

   n/a    n/a    1,073    1,073

Gulf Power Capital Trust IV

                   

(GULF TRUST IV) (b)

   n/a    n/a    1,484    1,484

Gulf Power Capital Trust V (a)

   n/a    n/a    n/a    n/a

Gulf Power Capital Trust VI (a)

   n/a    n/a    n/a    n/a

MISSISSIPPI POWER COMPANY

                   

(MISSISSIPPI)

   1,121,000    100    532,489    532,489

Mississippi Power Capital Trust II

                   

(MISSISSIPPI TRUST II) (b)

   n/a    n/a    1,082    1,082

Mississippi Power Capital Trust III (a)

   n/a    n/a    n/a    n/a

Mississippi Power Capital Trust IV (a)

   n/a    n/a    n/a    n/a

Mississippi Power Services, Inc.

   100    100    10    10

SAVANNAH ELECTRIC AND POWER COMPANY (SAVANNAH)

   10,844,635    100    186,292    186,292

Savannah Electric Capital Trust I

                   

(SAVANNAH TRUST I) (b)

   n/a    n/a    1,666    1,666

Savannah Electric Capital Trust II (a)

   n/a    n/a    n/a    n/a

CHANGE IN CONTROL TRUST (e)

   n/a    n/a    23,809    23,809

DEFERRED CASH TRUST (e)

   n/a    n/a    958    958

DEFERRED STOCK TRUST (e)

   n/a    n/a    5,613    5,613

SOUTHERN COMPANY HOLDINGS, INC. (f)

(Southern Holdings)

   9,111    91.11    292,759    292,759

Southern Company Capital Funding, Inc. (Capital Funding)

   1,000    100    30,367    30,367

Southern Company Capital Trust I (b)

   n/a    n/a    9,149    9,149

Southern Company Capital Trust II (b)

   n/a    n/a    2,350    2,350

Southern Company Capital Trust IV (a)

   n/a    n/a    n/a    n/a

Southern Company Capital Trust V (a)

   n/a    n/a    n/a    n/a

Southern Company Capital Trust VI (b)

   n/a    n/a    6,188    6,188

Southern Company Capital Trust VII (a)

   n/a    n/a    n/a    n/a

 

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Table of Contents
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003.

(Continued)

 

          Name of Company

(Add abbreviation used herein)


  

Number of

Common

Shares Owned


  

Percentage

of Voting

Power


  

Issuer

Book

Value


   

Owner’s

Book Value


 
               In Thousands  

Southern Company Energy Solutions LLC (SCES LLC)

   n/a    100    7,632     7,632  

Alabama Synfuel Energy, Inc.

   1,000    100    (8,320 )   (8,320 )

Synfuel Services, Inc. (Synfuel Services)

   1,000    100    4,420     4,420  

Energy Related Activities Inc. (ERA)

   1,000    100    5,574     5,574  

Southern Company Electrotechnologies, Inc. (Electrotechnologies)

   100    100    17,785     17,785  

Southern Company Rail Services, Inc. (SCRS) (g)

   1,000    100    2,250     2,250  

Southern Electric Railroad Company (SERC)

   5,000    100    5     5  

SE Finance Capital Corporation II

   1,000    100    196,165     196,165  

SE Finance Capital Corporation

   1,000    100    172,584     172,584  

Southern Energy Finance Company, Inc.

   1,000    100    340,252     340,252  

EPZ Lease, Inc.

   1,000    100    72,968     72,968  

EPZ Lease, LLC

   n/a    n/a    113,960     113,960  

EPZ Lease Holding A, LLC

   n/a    n/a    34,534     34,534  

EPZ Lease Trust A (b)

   n/a    n/a    34,533     34,533  

EPZ Lease Holding B, LLC

   n/a    n/a    34,534     34,534  

EPZ Lease Trust B (b)

   n/a    n/a    34,533     34,533  

EPZ Lease Holding C, LLC

   n/a    n/a    46,045     46,045  

EPZ Lease Trust C (b)

   n/a    n/a    46,044     46,044  

Dutch Gas Lease, Inc.

   1,000    100    141,544     141,544  

Dutch Gas Lease, LLC

   n/a    n/a    247,481     247,481  

Dutch Gas Lease Holding A, LLC

   n/a    n/a    97,872     97,872  

Dutch Gas Lease Trust A (b)

   n/a    n/a    97,872     97,872  

Dutch Gas Lease Holding B, LLC

   n/a    n/a    75,639     75,639  

Dutch Gas Lease Trust B (b)

   n/a    n/a    75,639     75,639  

Dutch Gas Lease Holding C, LLC

   n/a    n/a    73,971     73,971  

Dutch Gas Lease Trust C (b)

   n/a    n/a    73,971     73,971  

NUON Lease, Inc.

   1,000    100    131,938     131,938  

NUON Lease Holding D, LLC

   n/a    n/a    97,644     97,644  

NUON Trust D (b)

   n/a    n/a    97,644     97,644  

NUON Lease Holding E, LLC

   n/a    n/a    77,037     77,037  

NUON Trust E (b)

   n/a    n/a    72,414     72,414  

NUON Lease Holding F, LLC

   n/a    n/a    50,326     50,326  

NUON Trust F (b)

   n/a    n/a    47,794     47,794  

GAMOG Lease, Inc.

   1,000    100    102,520     102,520  

GAMOG Lease Holding G, LLC

   n/a    n/a    37,455     37,455  

GAMOG Trust G (b)

   n/a    n/a    37,455     37,455  

GAMOG Lease Holding H, LLC

   n/a    n/a    87,541     87,541  

GAMOG Trust H (b)

   n/a    n/a    87,541     87,541  

GAMOG Lease Holding I, LLC

   n/a    n/a    43,445     43,445  

GAMOG Trust I (b)

   n/a    n/a    43,445     43,445  

 

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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003.

(Continued)

 

          Name of Company

(Add abbreviation used herein)


  

Number of

Common

Shares Owned


  

Percentage

of Voting

Power


  

Issuer

Book

Value


   

Owner’s

Book Value


 
               In Thousands  

Clairton, Inc.

   1,000    100    14,714     14,714  

Clairton, LLC

   n/a    85    17,761     17,761  

Clairton 2, Inc.

   1,000    100    3,485     3,485  

Carbontronics, Inc.

   1,000    100    28,563     28,563  

Carbontronics, LLC

   n/a    99    19,744     19,744  

SE Choctaw, Inc.

   1,000    100    10,430     10,430  

SE Choctaw II, LLC

   n/a    100    88,959     88,959  

SE Choctaw, LLC

   n/a    100    88,959     88,959  

SOUTHERN COMPANY FUNDING CORPORATION

   1,000    100    10     10  

SOUTHERN COMPANY GAS LLC (Southern Company GAS)

   n/a    100    15,520     15,520  

SOUTHERN COMPANY SERVICES, INC. (SCS) (h)

   14,500    100    (18,925 )   (18,925 )

SOUTHERN COMMUNICATIONS SERVICES, INC. (Southern LINC)

   500    100    106,175     106,175  

SOUTHERN NUCLEAR OPERATING COMPANY, INC. (Southern Nuclear)

   1,000    100    24,596     24,596  

SOUTHERN POWER COMPANY

   1,000    100    1,011,476     1,011,476  

Cherokee Falls Development of South Carolina LLC (Cherokee)

   n/a    100    39     39  

Klondike Development LLC (Klondike)

   n/a    100    614     614  

Southern Company-Florida LLC

   n/a    100    196,551     196,551  

Southern Company-Jet Port LLC

   n/a    100    3,715     3,715  

SPC McLeod LLC (i)

   n/a    n/a    4,506     4,506  

SOUTHERN TELECOM, INC. (Southern Telecom)

   1,000    100    15,591     15,591  

SOUTHERN MANAGEMENT DEVELOPMENT, INC. (Southern Management) (f)

   500    100    19,641     19,641  

Southern Company Holdings, Inc.

   889    8.89    292,759     292,759  

 

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Notes to Item 1:

 

(a) Inactive and/or dissolved. ALABAMA TRUSTS I, II and III, Southern Company Capital Trusts IV and V and GULF TRUST I and II were dissolved in 2003. Madison County Energy Center LLC was dissolved in 2003. Alabama Power Capital Trusts VI, VII and VIII are inactive and were incorporated as statutory trusts in Delaware on October 21, 2002. Georgia Power Capital Trusts VII and VIII are inactive and were incorporated as statutory trusts in Delaware on March 23, 2001. In addition, Georgia Power Capital Trusts IX and X are inactive and were incorporated as statutory trusts on May 22, 2003. Gulf Power Capital Trusts V and VI were inactive and incorporated as statutory trusts in Delaware on April 7, 2003. Mississippi Power Capital Trusts III and IV are inactive and were incorporated as statutory trusts in Delaware on January 7, 1998 and August 15, 2003, respectively.

 

Savannah Electric Capital Trust I was inactive and incorporated as a statutory trust in Delaware on March 23, 2001. Southern Company Capital Trust VII was inactive and incorporated as a statutory trust in Delaware on September 28, 1998.

 

(b) A Delaware statutory trust. The form of equity investment is paid in capital.

 

(c) SEGCO is 50% owned by ALABAMA and 50% owned by GEORGIA.

 

The amounts shown reflect the respective ownership interests of each company.

 

(d) Promissory note due on demand; interest rate, based on GEORGIA’s embedded cost of capital, was 8.94% at January 1, 2004.

 

(e) Trusts established to fund certain deferred compensation arrangements for SOUTHERN’S management and directors. These trusts are consolidated with the accounts of SOUTHERN in accordance with generally accepted accounting principles, but do not represent subsidiaries of SOUTHERN.

 

(f) Southern Holdings is partially owned by Southern Management.

 

(g) A Delaware corporation organized in April 9, 2003.

 

(h) See Consolidating Statements of Comprehensive Income on page A-15 herein for item affecting SCS’ book value.

 

(i) A Delaware limited liability company organized on June 4, 2003.

 

ITEM 2. ACQUISITION OR SALES OF UTILITY ASSETS.

 

NONE.

 

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

 

NONE.

 

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

 

Calendar Year 2003

 

Name of Issuer and

Title of Issue


  

Name of Company

Acquiring,
Redeeming

or Retiring
Securities


   Number of Shares or Principal Amount

   Consideration

  

Indicate

Commission

Authorization


      Acquired

   Redeemed

   Retired

     
                              (See Note)
SOUTHERN:                                    

Trust Preferred Securities

                                   

Southern Company

   Capital Funding    None    $ 42,514,000      None    $ 42,514,000     

Capital Trust I

                                   

Southern Company

   Capital Funding    None    $ 1,500,000      None    $ 1,500,000     

Capital Trust II

                                   

Southern Company

   Capital Funding    None    $ 206,000,000      None    $ 206,000,000     

Capital Trust IV

                                   

Southern Company

   Capital Funding    None    $ 154,639,200      None    $ 154,639,200     

Capital Trust V

                                   

Southern Company

   Capital Funding    None    $ 500,000      None    $ 500,000     

Capital Trust VI

                                   

Senior Notes

                                   

Series B due 2004

   Capital Funding    None    $ 25,000,000      None    $ 25,000,000     

ALABAMA:

                                   

Senior Notes

                                   

Series A 7.125% due 2047

   ALABAMA    None    $ 193,800,000      None    $ 193,800,000     

Series B 7% due 2047

   ALABAMA    None    $ 200,000,000      None    $ 200,000,000     

Series C 7% due 2048

   ALABAMA    None    $ 190,000,000      None    $ 190,000,000     

Series I 5.35% due 2003

   ALABAMA    None    $ 156,200,000      None    $ 156,200,000     

Series M 7.85% due 2003

   ALABAMA    None    $ 250,000,000      None    $ 250,000,000     

Series O 1.525% due 2003

   ALABAMA    None    $ 167,000,000      None    $ 167,000,000     

Series P 3.015% due 2003

   ALABAMA    None    $ 350,000,000      None    $ 350,000,000     

GEORGIA:

                                   

Senior Notes

                                   

Series F 5.75% due 2003

   GEORGIA    None    $ 170,000,000    $ 170,000,000    $ 170,000,000     

Series A 6.85% due 2047

   GEORGIA    None    $ 145,000,000    $ 145,000,000    $ 145,000,000     

Series I 5.25% due 2003

   GEORGIA    None    $ 150,000,000    $ 150,000,000    $ 150,000,000     

Series B 6.60% due 2038

   GEORGIA    None    $ 200,000,000    $ 200,000,000    $ 200,000,000     

GULF:

                                   

Senior Notes

                                   

Series A 6.70% due 2038

   GULF    None    $ 46,757,000      None    $ 46,757,000     

Series E 6% due 2012

   GULF    None    $ 45,000,000      None    $ 45,000,000     

Series C 4.69% due 2003

   GULF    None      None    $ 60,000,000    $ 60,000,000     

Junior Subordinated Notes

                                   

7.50% due 2037

   GULF    None    $ 20,000,000      None    $ 20,000,000     

Pollution Control Bonds

                                   

5.80% due 2023

   GULF    None    $ 32,550,000      None    $ 32,550,000     

5.70% due 2023

   GULF    None    $ 7,875,000      None    $ 7,875,000     

5.50% due 2026

   GULF    None    $ 21,200,000      None    $ 21,200,000     

 

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

 

Calendar Year 2003

 

Name of Issuer and

Title of Issue


  

Name of Company

Acquiring, Redeeming

or Retiring Securities


   Number of Shares or Principal Amount

  

Indicate

Commission

Authorization


      Acquired

   Redeemed

   Retired

   Consideration

  
                              (See Note)

GULF (continued):

                                     

Trust Preferred Securities

                                     

GULF TRUST II

   GULF      None    $ 45,000,000      None    $ 45,000,000     

GULF TRUST I

   GULF      None    $ 40,000,000      None    $ 40,000,000     

MISSISSIPPI:

                                     

First Mortgage Bonds

                                     

7.45% Series due 2023

   MISSISSIPPI      None    $ 33,350,000      None    $ 33,350,00     

Pollution Control Bonds

                                     

5.80% Series due 2007

   MISSISSIPPI      None    $ 850,000      None    $ 850,000     

Senior Notes

                                     

Series E 5 5/8% due 2003

   MISSISSIPPI    $ 90,000,000      None      None    $ 90,000,000     

Series A 6.75% due 2038

   MISSISSIPPI      None    $ 51,628,000      None    $ 51,628,000     

Series B 6.05% due 2003

   MISSISSIPPI      None      None    $ 35,000,000    $ 35,000,000     

SAVANNAH:

                                     

Senior Notes

                                     

Series B 5.12% due 2003

   SAVANNAH      None    $ 20,000,000      None    $ 20,000,000     

Pollution Control Bonds

                                     

Variable Rate Series due 2037

   SAVANNAH      None    $ 13,870,000      None    $ 13,870,000     

 

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.

 

Name of Owner


   Name
of Issuer


   

Number of

Shares or Principal

Amount Owned


   Carrying
Value to
Owner


SOUTHERN (one item)

   (1 )   528,553 shares    $ 5,285,530

ALABAMA (two items)

   (3 )   666,400 shares    $ 666,400

GEORGIA (one item)

   (4 )   $3,539,544    $ 2,155,675

GULF (17 items)

   (2 )   1,010 shares    $ 0

Southern Management (two items)

   (5 )   106,642 shares    $ 308,392
     (5 )   11.5%    $ 1,101,000

SAVANNAH (one item)

   (2 )   472 shares    $ 1

Southern Telecom (one item)

   (6 )   2,561,005 warrants    $ 265,727
           883,721 shares    $ 141,395

Electrotechnologies (one item)

   (7 )   85.2%    $ 16,669,612

 

Notes to Item 5:

 

(1) Represents SOUTHERN’s investment in Pantellos. 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) Investment in a limited partnership that consists of energy related companies.

 

(6) Investment made in a research and development enterprise dedicated to developing power line communication technology.

 

(7) Investment in a limited partnership that provides risk capital for, and makes investments in the securities of privately held and publicly listed companies in the energy, technology and telecommunications industries, including businesses in all stages of development.

 

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Table of Contents
ITEM  6. OFFICERS AND DIRECTORS.

PART I.

 

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

 

Principal Business Address


   Code

270 Peachtree Street

Atlanta, GA 30303

   (a)

600 North 18th Street

Birmingham, AL 35291

   (b)

241 Ralph McGill Boulevard, N.E.

Atlanta, GA 30308-3374

   (c)

One Energy Place

Pensacola, FL 32520

   (d)

2992 West Beach Boulevard

Gulfport, MS 39501

   (e)

600 East Bay Street

Savannah, GA 31401

   (f)

5555 Glenridge Connector

Atlanta, GA 30342

   (g)

42 Inverness Center Parkway

Birmingham, AL 35242

   (h)

40 Inverness Center Parkway

Birmingham, AL 35242

   (i)

601 Pennsylvania Ave., NW

Suite 800 South

Washington, DC 20004

   (j)

1403 Foulk Road

Foulkstone Plaza Suite 102-9

Wilmington, DE 19803

   (k)

4000 DeKalb Technology Parkway

Suite 100

Atlanta, GA 30340

   (l)

3003 Summit Boulevard

Suite 700

Atlanta, GA 30319

   (m)

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

    

Donald M. James

   D

P. O. Box 385014

    

Birmingham, AL 35238-5014

    

Zack T. Pate

   D

700 Galleria Parkway

    

Atlanta, GA 30339

    

J. Neal Purcell

   D

110 Dover Cliff Way

    

Alpharetta, GA 30022

    

David M. Ratcliffe (c)

   D,EVP

 

9


Table of Contents
ITEM  6. OFFICERS AND DIRECTORS.

PART I. (Continued)

 

SOUTHERN (continued)

Name and Principal Address (a)


   Position

Gerald J. St. Pé

   D

P. O. Box 149

    

Pascagoula, MS 39568

    

Dwight H. Evans

   EVP

Leonard J. Haynes

   EVP

G. Edison Holland

   EVP,L

Thomas A. Fanning

   EVP

Charles D. McCrary (b)

   EVP

David R. Altman

   VP

Rebecca A. Blalock (c)

   VP

Jackie J. Collins

   VP

Ellen N. Lindemann

   VP

Joseph A. Miller (j)

   VP

W. Dean Hudson (c)

   CAO,C

Tommy Chisholm

   S
ALABAMA     

Name and Principal Address (b)


   Position

Whit Armstrong

   D

P. O. Box 900

    

Enterprise, AL 36331

    

David J. Cooper

   D

118 N. Royal Street

    

Mobile, AL 36602

    

H. Allen Franklin (a)

   D

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

2548 US Highway 78

    

Anniston, AL 36207

    

James K. Lowder

   D

2000 Interstate Park Drive

    

Suite 400

    

Montgomery, AL 36109

    

Wallace D. Malone, Jr.

   D

P. O. Box 2554

    

Birmingham, AL 35290

    

Charles D. McCrary

   D,P,CEO

Malcolm Portera

   D

401 Queen City Avenue

    

Tuscaloosa, AL 35401

    

Robert D. Powers

   D

202 East Broad Street

    

Eufaula, AL 36027

    

C. Dowd Ritter

   D

P. O. Box 11007

    

Birmingham, AL 35288

    

James H. Sanford

   D

1001 McQueen Smith Road South

    

Prattville, AL 36066

    

William F. Walker

   D

107 Samford Hall

    

Auburn University, AL 36849-5113

    

John C. Webb, IV

   D

125 W. Washington Street

    

Demopolis, AL 36732

    

James W. Wright

   D

100 Commerce Street

    

Montgomery, AL 36104

    

William B. Hutchins, III

   EVP,CFO,T

C. Alan Martin

   EVP

Steve R. Spencer

   EVP

Robert Holmes, Jr.

   SVP

Robin A. Hurst

   SVP

Rodney O. Mundy

   SVP,L

Michael L. Scott

   SVP

Jerry L. Stewart

   SVP

Art P. Beattie

   VP,CAO,C

Christopher T. Bell

   VP

Willard L. Bowers

   VP

Larry R. Grill

   VP

Gerald L. Johnson

   VP

Marsha S. Johnson

   VP

William B. Johnson

   VP

J. Bruce Jones

   VP

Bobbie J. Knight

   VP

Ellen N. Lindemann (a)

   VP

Gordon G. Martin

   VP

Donald W. Reese

   VP

R. Michael Saxon

   VP

Julia H. Segars

   VP

Julian H. Smith, Jr.

   VP

W. Ronald Smith

   VP

Cheryl A. Thompson

   VP

Terry H. Waters

   VP

William E. Zales, Jr.

   VP,S

 

10


Table of Contents
ITEM  6. OFFICERS AND DIRECTORS

PART I. (Continued)

 

ALABAMA PROPERTY COMPANY

Name and Principal Address (b)


   Position

Charles D. McCrary

   D,P

William B. Hutchins, III

   D,VP

C. Alan Martin

   D,VP

Larry Grill

   VP

Art P. Beattie

   C

William E. Zales, Jr.

   S

J. Randy DeRieux

   T
ALABAMA ENERGY PROVIDERS, INC.     

Name and Principal Address (b)


   Position

Rodney O. Mundy

   D

William B. Hutchins, III

   D,VP

C. Alan Martin

   D

Michael L. Scott

   D,P

William E. Zales, Jr.

   S

J. Randy DeRieux

   T
GEORGIA     

Name and Principal Address (c)


   Position

Juanita Baranco

   D

4355 Highway 78

    

Lilburn, GA 30047

    

Robert L. Brown

   D

250 East Ponce de Leon Avenue

    

Eighth Floor

    

Decatur, GA 30030

    

Anna R. Cablik

   D

1513 Johnson Ferry Road

    

Suite B-20

    

Marietta, GA 30062

    

H. Allen Franklin (a)

   D

David M. Ratcliffe

   D,P,CEO

Gary D. Thompson

   D

191 Peachtree Street

    

Mail Code GA 8063

    

Atlanta, GA 30303

    

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

C. B. Harreld

   EVP,T,CFO

Judy M. Anderson

   SVP

Ronnie L. Bates

   SVP

M. A. Brown

   SVP

Richard L. Holmes

   SVP

Christopher C. Womack

   SVP

W. Craig Barrs

   VP

Rebecca A. Blalock

   VP

A. Bryan Fletcher

   VP

J. Kevin Fletcher

   VP

O. Ben Harris

   VP

W. Ron Hinson

   VP,C,CAO

Chris M. Hobson

   VP

Ed F. Holcombe

   VP

E. Lamont Houston

   VP

Brian L. Ivey

   VP

Anne H. Kaiser

   VP

Ellen N. Lindemann (a)

   VP

Frank J. McCloskey

   VP

Leslie R. Sibert

   VP

James E. Sykes

   VP

Jeffrey L. Wallace

   VP

Janice G. Wolfe

   S

PIEDMONT

    

Name and Principal Address (c)


   Position

David M. Ratcliffe

   D,P

C. B. Harreld

   D,EVP,T

Janice G. Wolfe

   D,VP,S
SEGCO     

Name and Principal Address (b)


   Position

William C. Archer (c)

   D

Art P. Beattie

   D,C

William P. Bowers

   D,VP

C. B. Harreld (c)

   D

William B. Hutchins, III

   D,VP

Charles D. McCrary

   D,P

David M. Ratcliffe (c)

   D,VP

Jerry L. Stewart

   D

Christopher C. Womack (c)

   D

William E. Zales, Jr.

   S

J. Randy DeRieux

   T

 

11


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

PART I. (Continued)

 

GULF     

Name and Principal Address (d)


   Position

C. LeDon Anchors    D

909 Mar Walt Drive

    

Suite 1014

    

Fort Walton Beach, FL 32547

    
William C. Cramer    D

2251 West 23rd Street

    

Panama City, FL 32405

    
Fred C. Donovan, Sr.    D

P. O. Box 13370

    

Pensacola, FL 32591

    
H. Allen Franklin (a)    D
William A. Pullum    D

8494 Navarre Parkway

    

Navarre, FL 32566

    
Winston E. Scott    D

100 Spaceport Way

    

Cape Canaveral, FL 32920-4003

    
Susan N. Story    D,P,CEO
F. M. Fisher, Jr.    VP
P. Bernard Jacob    VP
Ronnie R. Labrato    VP,CFO,CAO,C
Ellen N. Lindemann (a)    VP
Gene L. Ussery, Jr. (e)    VP
Susan D. Ritenour    S,T
MISSISSIPPI     

Name and Principal Address (e)


   Position

Tommy E. Dulaney    D

P. O. Box 2929

    

Meridian, MS 39302

    
Michael D. Garrett    D,P,CEO
Linda T. Howard    D

P.O. Box 1588

    

Laurel, MS 39401

    
Robert C. Khayat    D

P. O. Box 1848, 123 Lyceum

    

University, MS 38677

    
Aubrey K. Lucas    D

Box 5164

    

Hattiesburg, MS 39406

    
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
Bobby J. Kerley    VP
Ellen N. Lindemann (a)    VP
Don E. Mason    VP
Michael W. Southern    VP,CFO,CAO,T
Gene L. Ussery, Jr.    VP
Frances V. Turnage    C
Vicki L. Pierce    S
MISSISSIPPI POWER SERVICES, INC.     

Name and Principal Address (e)


   Position

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    CAO,C
Vicki L. Pierce    S
Randall J. Richardson    GM
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 (a)    VP
Ellen N. Lindemann (a)    VP
Sandra R. Miller    VP
Kirby R. Willis    VP,T,CFO
Nancy Frankenhauser    S

 

12


Table of Contents

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

 

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 (a)    EVP
Thomas A. Fanning (a)    EVP
Leonard J. Haynes (a)    EVP
G. Edison Holland, Jr. (a)    EVP,L
William O. Ball    SVP
Andrew J. Dearman, III (b)    SVP
Rebecca A. Blalock    SVP
Ed Day (h)    SVP
Charles H. Goodman (b)    SVP
W. Dean Hudson    SVP,C,CFO
Douglas E. Jones (a)    SVP
Ellen N. Lindemann (a)    SVP
C. Philip Saunders (a)    SVP
Michael L. Scott    SVP
Jerry L. Stewart (b)    SVP
Christopher C. Womack    SVP
David R. Altman (a)    VP
Curtis Ashley Baker    VP
Robert A. Bell (a)    VP
Ronald P. Bertasi (l)    VP
Ronald R. Campbell    VP
Tommy Chisholm (a)    VP,S
David L. Coker    VP
Jackie J. Collins (a)    VP
James C. Fleming (a)    VP
Kimberly S. Greene (a)    VP,T
Barbara S. Hingst    VP
Charles D. Long, IV (b)    VP
Jacqualyn Lowe    VP
William L. Marshall, Jr. (b)    VP
William N. McKenzie    VP
Christopher S. Miller (a)    VP
Joseph A. Miller (j)    VP
Sandra R. Miller (f)    VP
Marie D. Mouchet    VP
Karl R. Moor (j)    VP
Robert G. Moore (d)    VP
Rodney O. Mundy (b)    VP
Earl B. Parsons, III (b)    VP
Cliff S. Thrasher (a)    VP
Gene L. Ussery, Jr. (e)    VP
Stephen A. Wakefield (a)    VP
Southern LINC     

Name and Principal Address (g)


   Position

Robert G. Dawson    D,P,CEO
H. Allen Franklin (a)    D
Thomas A. Fanning (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

W. Paul Bowers (b)    D,P
T. Roy Harrell (b)    VP
Sandra R. Miller (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
John E. Garlington    VP
Jeffrey T. Gasser    VP
Kathleen S. King    VP,CFO,C,T
Ellen N. Lindemann (a)    VP
Louis B. Long    VP
John O. Meier    VP,L
H. Lewis Sumner, Jr.    VP
Sherry A. Mitchell    S
Southern Holdings     

Name and Principal Address (a)


   Position

H. Allen Franklin    D
Thomas A. Fanning    D
Kimberly S. Greene    D,P,CEO
Charles D. McCrary (b)    D
David M. Ratcliffe (c)    D
Tommy Chisholm    S
Ann P. Daiss (c)    C
Earl S. Long    T

 

13


Table of Contents

ITEM 6. OFFICERS AND DIRECTORS

PART I. (Continued)

 

SCES LLC     

Name and Principal Address (l)


   Position

Ronald P. Bertasi    P,CEO
Robert M. Gilbert    VP,CFO
Timothy S. Marvin    T
Tommy Chisholm (a)    S
SE Finance Capital Corporation     

Name and Principal Address (a)


   Position

Thomas A. Fanning    D
H. Allen Franklin    D
Kimberly S. Greene    D,P,CEO
James C. Fleming    VP
Christopher J. Kysar    VP,T,CFO
Tommy Chisholm    S
Judith A. Rosenberg    C
SE Finance Capital Corporation II     

Name and Principal Address (a)


   Position

H. Allen Franklin    D
Kimberly S. Greene    D,P,CEO
Thomas A. Fanning    D
James C. Fleming    VP
Christopher J. Kysar    VP,T,CFO
Tommy Chisholm    S
Judith A. Rosenberg    C
SE Choctaw Inc.     

Name and Principal Address (a)


   Position

H. Allen Franklin    D
Kimberly S. Greene    D,P,CEO
Thomas A. Fanning    D
James C. Fleming    VP
Christopher J. Kysar    VP,T,CFO
Tommy Chisholm    S
Judith A. Rosenberg    C
Southern Energy Finance Company Inc.     

Name and Principal Address (a)


   Position

H. Allen Franklin    D
Kimberly S. Greene    D,P,CEO
Thomas A. Fanning    D
James C. Fleming    VP
Christopher J. Kysar    VP,T,CFO
Tommy Chisholm    S
Judith A. Rosenberg    C
Southern Power Company     

Name and Principal Address (a)


   Position

W. Paul Bowers (b)    D,P,CEO
Thomas A. Fanning    D
H. Allen Franklin    D
Charles D. McCrary (b)    D
David M. Ratcliffe (c)    D
Douglas E. Jones    EVP
Ed Day    SVP
James H. Miller, III (b)    SVP,L
Robert G. Moore (d)    SVP
Christopher C. Womack (c)    SVP
Cliff S. Thrasher    VP,C,CFO
William N. McKenzie    VP
Anthony J. Topazi (b)    VP
Christopher Kysar    T
Tommy Chisholm    S
Southern Company-Florida LLC     

Name and Principal Address (a)


   Position

W. Paul Bowers (b)    P,CEO
James H. Miller, III (b)    VP
Cliff S. Thrasher    VP,T
Tommy Chisholm    S
Southern Company-Jet Port LLC     

Name and Principal Address (a)


   Position

W. Paul Bowers (b)    P,CEO
James H. Miller, III (b)    VP
Cliff S. Thrasher    CFO,T
Tommy Chisholm    S
Southern Company Funding Corporation     

Name and Principal Address (a)


   Position

Thomas A. Fanning

   D

Kimberly S. Greene

   D,P,CEO

Earl C. Long

   D,VP,CFO,T
EPZ Lease, Inc.     

Name and Principal Address (k)


   Position

William R. Bechstein    D,VP

1105 N. Market Street

    

Suite 1300

    

Wilmington, DE 19801

    
Christopher J. Kysar (a)    D,VP,T,CFO
Kimberly S. Greene (a)    D,P,CEO
Daniel P. McCollum    D,S

Morris, James, Hitchens &

    

Williams LLP

    

222 Delaware Avenue

    

Wilmington, DE 19899

    
Judith A. Rosenberg (a)    D,C
James C. Fle ming (a)    VP

 

14


Table of Contents

ITEM 6.    OFFICERS AND DIRECTORS

 

PART I. (Continued)

 

EPZ Lease, LLC     

Name and Principal Address (k)


   Position

Southern Energy Finance Company Inc.

   Member

EPZ Lease, Inc.

   Member

EPZ Lease Holding A, LLC

    

Name and Principal Address (k)


   Position

EPZ Lease, Inc.

   Member

EPZ Lease, LLC

   Member

EPZ LeaseHolding B, LLC

    

Name and Principal Address (k)


   Position

EPZ Lease, Inc.

   Member

EPZ Lease, LLC

   Member

EPZ Lease Holding C, LLC

    

Name and Principal Address (k)


   Position

EPZ Lease, Inc.

   Member

EPZ Lease, LLC

   Member

Dutch Gas Lease, Inc.

    

Name and Principal Address (k)


   Position

William R. Bechstein

   D,VP

1105 N. Market Street

Suite 1300

Wilmington, DE 19801

    

Christopher J. Kysar (a)

   D,VP,T,CFO

Kimberly S. Greene (a)

   D,P,CEO

Daniel P. McCollum

   D,S

Morris, James, Hitchens & Williams LLP

    

222 Delaware Avenue

    

Wilmington, DE 19899

    

Judith A. Rosenberg (a)

   D,C

James C. Fleming (a)

   VP

Dutch Gas Lease, LLC

    

Name and Principal Address (k)


   Position

Dutch Gas Lease, Inc.

   Member

Dutch Gas Lease Holding A, LLC

    

Name and Principal Address (k)


   Position

Dutch Gas Lease, LLC

   Member

Dutch Gas Lease Holding B, LLC

    

Name and Principal Address (k)


   Position

Dutch Gas Lease, LLC

   Member

Dutch Gas Lease Holding C, LLC

    

Name and Principal Address (k)


   Position

Dutch Gas Lease, LLC

   Member

GAMOG Lease, Inc.

    

Name and Principal Address (k)


   Position

William R. Bechstein

   D,VP

1105 N. Market Street

Suite 1300

Wilmington, DE 19801

    

Kimberly S. Greene (a)

   D,P,CEO

Christopher J. Kysar (a)

   D,VP,T,CFO

Daniel P. McCollum

   D,S

Morris, James, Hitchens & Williams LLP

    

222 Delaware Avenue

    

Wilmington, DE 19899

    

Judith A. Rosenberg (a)

   D,C

James C. Fleming (a)

   VP

GAMOG Lease Holding G, LLC

    

Name and Principal Address (k)


   Position

GAMOG Lease, Inc.

   Member

GAMOG Lease Holding H, LLC

    

Name and Principal Address (k)


   Position

GAMOG Lease, Inc.

   Member

GAMOG Lease Holding I, LLC

    

Name and Principal Address (k)


   Position

GAMOG Lease, Inc.

   Member

NUON Lease, Inc.

    

Name and Principal Address (k)


   Position

William R. Bechstein

   D,VP

1105 N. Market Street

    

Suite 1300

    

Wilmington, DE 19801

    

Kimberly S. Greene (a)

   D,P,CEO

Christopher J. Kysar (a)

   D,VP,T,CFO

Daniel P. McCollum

   D,S

Morris, James, Hitchens & Williams LLP

    

222 Delaware Avenue

    

Wilmington, DE 19899

    

Judith A. Rosenberg (a)

   D,C

James C. Fleming (a)

   VP

 

15


Table of Contents

ITEM 6.    OFFICERS AND DIRECTORS

 

PART I. (Continued)

 

NUON Lease Holding D, LLC

    

Name and Principal Address (k)


   Position

NUON Lease, Inc.

   Member

NUON Lease Holding E, LLC

    

Name and Principal Address (k)


   Position

NUON Lease, Inc.

   Member

NUON Lease Holding F, LLC

    

Name and Principal Address (k)


   Position

NUON Lease, Inc.

   Member

Capital Funding

    

Name and Principal Address (k)


   Position

William R. Bechstein

   D,VP

1105 N. Market Street

    

Suite 1300

    

Wilmington, DE 19801

    

Kimberly S. Greene (a)

   D,P,CEO

Christopher J. Kysar (a)

   D,VP,CFO,T

Daniel P. McCollom

   D,S

Morris, James, Hitchens & Williams LLP

    

222 Delaware Avenue

    

Wilmington, DE 19899

    

Judith A. Rosenberg (a)

   D,C

James C. Fleming (a)

   VP

Clairton, Inc.

    

Name and Principal Address (k)


   Position

William R. Bechstein

   D,VP

1105 N. Market Street

    

Suite 1300

    

Wilmington, DE 19801

    

Kimberly S. Greene (a)

   D,P,CEO

Christopher J. Kysar (a)

   D,VP,T,CFO

Daniel P. McCollum

   D,S

Morris, James, Hitchens & Williams LLP

    

222 Delaware Avenue

    

Wilmington, DE 19899

    

Judith A. Rosenberg (a)

   D,C

James C. Fleming (a)

   VP

Clairton 2, Inc.

    

Name and Principal Address (k)


   Position

William R. Bechstein

   D,VP

1105 N. Market Street

    

Suite 1300

    

Wilmington, DE 19801

    

Christopher J. Kysar (a)

   D,VP,T,CFO

Kimberly S. Greene (a)

   D,P,CEO

Daniel P. McCollum

   D,S

Morris, James, Hitchens & Williams LLP

    

222 Delaware Avenue

    

Wilmington, DE 19899

    

Judith A. Rosenberg (a)

   D,C

James C. Fleming (a)

   VP

Clairton, LLC

    

Name and Principal Address (k)


   Position

Clairton, Inc.

   Member

Clairton 2, Inc.

   Member

Carbontronics, Inc.

    

Name and Principal Address (a)


   Position

Kimberly S. Greene

   D,CEO,P

Christopher J. Kysar

   D,VP,T,CFO

Judith A. Rosenberg

   D,C

James C. Fleming

   VP

Tommy Chisholm

   S

Carbontronics, LLC

    

Name and Principal Address (k)


   Position

Carbontronics, Inc.

   Member

SE Finance Company, Inc.

   Member

Southern Telecom, Inc.

    

Name and Principal Address (m)


   Position

Robert G. Dawson (g)

   D,P,CEO

Thomas A. Fanning (a)

   D

H. Allen Franklin (a)

   D

Charles D. McCrary (b)

   D

David M. Ratcliffe (c)

   D

R. Craig Elder (g)

   VP,CFO,T

Tommy Chisholm (a)

   S

Carmine A. Reppucci (g)

   C

Southern Management

    

Name and Principal Address (l)


   Position

Ronald P. Bertasi

   D,P,CEO

Thomas A. Fanning (a)

   D

H. Allen Franklin (a)

   D

Leonard J. Haynes (a)

   D

Charles D. McCrary (b)

   D

David M. Ratcliffe (c)

   D

Robert M. Gilbert

   VP,CFO

Tommy Chisholm (a)

   S

Timothy S. Marvin

   T

 

16


Table of Contents

ITEM 6.    OFFICERS AND DIRECTORS

 

PART I. (Continued)

 

Synfuel Services

    

Name and Principal Address (b)


   Position

W. Paul Bowers

   D

Jerry L. Stewart

   D,P

Anthony J. Topazi

   D,VP

Art P. Beattie

   VP

Earl B. Parsons, III

   VP

Tommy Chisholm (a)

   S

Cliff S. Thrasher (a)

   T

ERA

    

Name and Principal Address (b)


   Position

W. Paul Bowers

   D

Jerry L. Stewart

   D,VP

Anthony J. Topazi

   D,P

Art P. Beattie

   VP

Earl B. Parsons, III

   VP

Tommy Chisholm (a)

   S

Cliff S. Thrasher (a)

   T

Alabama Synfuel Energy, Inc.

    

Name and Principal Address (b)


   Position

W. Paul Bowers

   D

Jerry L. Stewart

   D,VP

Anthony J. Topazi

   D,P

Art P. Beattie

   VP

Earl B. Parsons, III

   VP

Tommy Chisholm (a)

   S

Cliff S. Thrasher (a)

   T

Klondike Development LLC

    

Name and Principal Address (a)


   Position

W. Paul Bowers (b)

   D.P,CEO

Cliff S. Thrasher

   CFO, T

Tommy Chisholm

   S

Southern Power Company

   Member

Electrotechnologies

    

Name and Principal Address (a)


   Position

H. Allen Franklin

   D

Kimberly S. Greene

   D,P,CEO

Thomas A. Fanning

   D

James C. Fleming

   VP

Christopher J. Kysar

   VP,T

Tommy Chisholm

   S

Cherokee Falls Development of South Carolina LLC

    

Name and Principal Address (a)


   Position

W. Paul Bowers (b)

   P,CEO

James H. Miller, III (b)

   VP

Cliff S. Thrasher

   CFO,T

Anthony J. Topazi (b)

   VP

Tommy Chisholm

   S

SPC McLeod LLC

    

Name and Principal Address (a)


   Position

W. Paul Bowers (b)

   P,CEO

Ed Day

   SVP

Robert G. Moore

   SVP

Cliff S. Thrasher

   SVP,CFO,C

James H. Miller, III (b)

   VP

Anthony J. Topazi (b)

   VP

Tommy Chisholm

   S

Christopher J. Kysar

   T

Southern Company GAS

    

Name and Principal Address (a)


   Position

C. Philip Saunders

   P,CEO

Constance J. Erickson

   C

Tommy Chisholm

   S

Kimberly S. Greene

   T

 

17


Table of Contents
ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections.

 

Name of Officer
or Director


  

Name and Location
of Financial Institution


  

Position Held in Financial Institution


  

Applicable
Exemption Rule


               Rule No. 70
Subdivision
Daniel P. Amos   

Synovus Financial Corporation,

Columbus, GA

   Director    (a);(b)
Whit Armstrong   

The Citizens Bank

Enterprise, AL

   Chief Executive Officer, Chairman of the Board of Directors and President    (c)
     Enterprise Capital Corporation Enterprise, AL    Chairman of the Board of Directors, Chief Executive Officer, President    (c)
Gus H. Bell, III    SunTrust Bank, Savannah, GA    Director    (c)
Robert L. Brown, Jr.    Citizens Trust Bank, Atlanta, GA    Director    (c)
David J. Cooper    SouthTrust Corporation, Birmingham, AL    Director    (c)
Archie H. Davis    The Savannah Bancorp, Savannah, GA    President, Chief Executive Officer, Director    (c)
     The Savannah Bank N.A., Savannah, GA    Vice Chairman, Director    (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)
G. Edison Holland    FCB Financial Corporation, Savannah, GA    Director    (e)
Charles D. McCrary    AmSouth Bancorporation,    Director    (a);(c);(e);(f)
     Birmingham, AL          
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, Birmingham, AL    Chairman of the Board of Directors, President, Chief Executive Officer    (c)
Bobby J. Kerley    Mid South Bank, Eufaula, AL    Director    (f)
Wallace D. Malone, Jr.    SouthTrust Corporation, Birmingham, AL    Chairman of the Board of Directors and Chief Executive Officer    (c)
Malcolm Portera    Regions Financial Corporation, Birmingham, AL    Director    (c)
J. Neal Purcell    Synovus Financial Corporation, Columbus, GA    Director    (a)

 

18


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

 

Name of Officer
or Director


  

Name and Location
of Financial Institution


  

Position Held in
Financial Institution


   Applicable
Exemption Rule


               Rule No. 70
Subdivision
C. Dowd Ritter    AmSouth Bancorporation, Birmingham, AL    Chairman, Chief Executive Officer, President    (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, LA    Director    (d)
Steve R. Spencer    AmSouth Bank, Birmingham, AL    Director    (c);(f)
W. Ronald Smith    SouthTrust Bank of Calhoun County, N.A. Anniston, AL    Director    (c);(f)
Gerald St. Pe’    Merchants & Marine Bank, Pascagoula, MS    Director    (a)
Arnold M. Tenenbaum    First Chatham Bank Holding Company, Savannah, GA    Chairman of the Board of Directors    (c)
Philip J. Terrell    Hancock Bank, Gulfport, MS    Director    (c)
D. Gary Thompson    Wachovia Bank, Georgia Banking, Atlanta, GA    Chief Executive Officer    (c)
     Wachovia Corporation, Charlotte, NC    Executive Officer    (d)
Gene Warr    Coast Community Bank, Gulfport, MS    Director    (c)
E. Jenner Wood, III    SunTrust Bank Central Group, Atlanta, GA    Chairman, President and Chief Executive Officer    (c)
     SunTrust Banks Inc., Atlanta, GA    Executive Officer    (c)
James W. Wright    First Tuskegee Bank, Montgomery, AL    Chairman of the Board of Directors and Chief Executive Officer    (c)

 

19


Table of Contents
ITEM 6. EXECUTIVE COMPENSATION. PART III.

 

  (a) Summary Compensation Tables. The following tables set forth information concerning any Chief Executive Officer and the most highly compensated executive officers for SCS, Southern LINC, Southern Telecom, Southern Management and Southern Nuclear serving as of December 31, 2003, 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 2004 Annual Meetings of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page numbers III-6 and III-7 in the SOUTHERN system’s combined Form 10-K for the year ended December 31, 2003. SOUTHERN is incorporated by reference to “Summary Compensation Table” in SOUTHERN’s definitive Proxy Statement relating to the 2004 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

 

20


Table of Contents

SCS

SUMMARY COMPENSATION TABLE

 

          ANNUAL COMPENSATION

        LONG-TERM COMPENSATION

       Name and

Principal Position


   Year

   Salary($)

   Bonus($)

  

Other Annual

Compensation($)1


  

Restricted

Stock

Awards($)2


  

Number of

Securities

Underlying

Stock

Options

(Shares)


  

Long-Term

Incentive

Payouts($)3


  

All Other

Compensation($)4


H. Allen Franklin

President, Chief

Executive Officer,

Director

   2003
2002
2001
   966,240
929,215
855,969
   2,083,162
1,984,320
1,867,320
   5,940
7,080
2,770
   —  
—  
648,863
   501,935
382,242
497,790
   2,404,720
1,672,510
1,249,890
   59,881
61,822
44,786

Thomas A. Fanning5

Executive Vice

President

   2003
2002
2001
   375,820
—  

—  
   522,396
—  

—  
   110,691
—  

—  
   —  
—  
—  
   42,314
—  

—  
   223,482
—  

—  
   156,405
—  

—  

G. Edison Holland

Executive Vice

President

   2003
2002
2001
   380,716
364,868
333,539
   421,131
416,003
324,022
   7,796
69,102
24,036
   —  
—  
—  
   48,992
54,624
68,071
   207,170
219,677
180,384
   19,583
90,046
69,760

Dwight H. Evans

Executive Vice

President

   2003
2002
2001
   368,369
353,038
326,876
   407,481
402,519
296,139
   5,190
10,365
51,963
   —  
—  
—  
   47,404
52,854
91,299
   407,250
352,667
295,504
   20,183
23,685
67,664

W. Paul Bowers

Executive Vice

President

   2003
2002
2001
   356,994
329,570
273,758
   431,675
403,433
273,630
   6,257
12,337
3,072
   —  
—  
—  
   46,181
50,046
51,740
   234,253
214,133
160,515
   18,063
16,802
39,542

1 Tax reimbursements on certain perquisites. In 2002, Mr. Holland’s amount includes $59,548 in tax assistance associated with relocation. In 2001, Mr. Holland’s amount included $17,015 in tax assistance associated with relocation.
2 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.
3 Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2001, 2002 and 2003, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. No dividend equivalents are paid if the total stockholder return is below the 30th percentile or if the Company’s earnings are not sufficient to fund the common stock dividend. For eligible stock options held on December 31, 2000, 2001 and 2002, all named executives received a payout of $1.34, $1.355 and $1.385 per option, respectively.
4 Contributions in 2003 to the ESP, ESOP, non-pension related accruals under 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

  $8,100   $744   $49,696   $1,341

Thomas A. Fanning

    7,600     744       9,912   —  

G. Edison Holland

    8,074     744     10,553       212

Dwight H. Evans

    7,971     744     10,190   1,278

W. Paul Bowers

    7,934     744       9,385   —  

 

In 2003, the amount for Mr. Fanning also included $138,149 of additional relocation assistance. In 2001, this amount includes for Messrs. Evans, Holland and Bowers additional incentive compensation of $50,000, $31,628 and $24,380, respectively. In 2001 and 2002, these amounts for Mr. Holland also included $19,933 and $70,307, respectively, of additional relocation expenses.

 

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

 

21


Table of Contents

Southern LINC

SUMMARY COMPENSATION TABLE

 

     ANNUAL COMPENSATION

   LONG-TERM COMPENSATION

      Name and

Principal Position


   Year

   Salary($)

   Bonus($)

  

Other Annual

Compensation($)1


  

Restricted

Stock

Award ($)


  

Number of

Securities

Underlying

Stock

Options

(Shares)


  

Long-Term

Incentive

Payouts($)2


  

All Other

Compensation($)3


Robert G. Dawson4

President, Chief

Executive Officer,

Director

   2003
2002
2001
   283,824
269,682
245,269
   331,668
310,687
260,479
   2,397
5,798
2,774
   —  
—  
—  
   28,698
31,997
54,900
   237,489
215,936
165,142
   16,760
19,345
13,652

R. Craig Elder4

Vice President, Chief

Financial Officer,

Treasurer

   2003
2002
2001
   173,606
165,763
153,433
   148,994
187,069
118,209
   1,973
1,664
—  
   —  
—  
—  
   11,169
12,458
19,007
   49,662
49,365
36,236
   8,663
8,500
8,127

Rodney H. Johnson

Vice President

   2003
2002
2001
   145,433
136,075
120,786
   107,434
135,639
70,589
   —  
206
—  
   —  
—  
—  
   6,700
7,374
7,703
   35,661
25,810
15,643
   6,878
4,458
3,632

Julie T. Pigott

Vice President

   2003
2002
2001
   141,276
134,060
120,786
   104,107
133,223
70,589
   1,438
—  
—  
   —  
—  
—  
   6,492
7,242
7,703
   35,190
25,631
15,643
   5,426
6,745
6,463

1 Tax reimbursements on certain perquisites.
2 Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2001, 2002 and 2003, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. No dividend equivalents are paid if the total stockholder return is below the 30th percentile or if the Company’s earnings are not sufficient to fund the common stock dividend. For eligible stock options held on December 31, 2001, 2002 and 2003, all named executives received a payout of $1.34, $1.355 and $1.385 per option, respectively.
3 Contributions in 2003 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:-

 

Name


 

ESP


 

ESOP


 

SBP


 

ESP Tax Sharing Benefit


Robert G. Dawson

  $9,000   $744   $5,688   $1,328

R. Craig Elder

    6,758     744     1,161       —  

Rodney H. Johnson

    6,058     744         76       —  

Julie T. Pigott

    4,613     744         69       —  

 

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

 

22


Table of Contents

Southern Management

and

Southern Company GAS

 

SUMMARY COMPENSATION TABLE

 

          ANNUAL COMPENSATION

        LONG-TERM COMPENSATION

Name and Principal Position


   Year

   Salary($)

   Bonus($)

   Other Annual
Compensation
($)1


  

Restricted

Stock
Award ($)


  

Number of
Securities

Underlying

Stock Options
(Shares)


   Long-Term
Incentive
Payouts ($)2


   All Other
Compensation
($)3


Southern Management

                                       

Ronald P. Bertasi4

   2003    190,959    155,210    7,700    —      12,465    36,239    9,382

President, Chief

   2002    185,000    48,100    18,395    —      13,700    18,564    7,001

Executive Officer, Director

                                       

Southern Company GAS

                                       

C. Philip Saunders5

   2003    233,323    94,194    7,144    —      23,634    126,649    12,332

President, Chief

   2002    221,321    210,821    —      —      26,100    91,881    11,554

Executive Officer

                                       

1 Tax reimbursements on certain perquisites.
2 Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2001, 2002 and 2003, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. No dividend equivalents are paid if the total stockholder return is below the 30th percentile or if the Company’s earnings are not sufficient to fund the common stock dividend. For eligible stock options held on December 31, 2001, 2002 and 2003, all named executives received a payout of $1.34, $1.355 and $1.385 per option, respectively.
3 Contributions in 2003 to the ESP, ESOP and non-pension related accruals under the SBP are as follows:-

 

Name


   ESP

   ESOP

   SBP

Ronald P. Bertasi

   $ 8,694    $ 688    $ —  

C. Philip Saunders

     5,249      744      6,339

 

4 Mr. Bertasi became the President and Chief Executive Officer of Southern Management on December 17, 2001.
5 Mr. Saunders became the President and Chief Executive Officer of Southern Company GAS on July 15, 2002.

 

23


Table of Contents

Southern Nuclear

SUMMARY COMPENSATION TABLE

 

          ANNUAL COMPENSATION

        LONG-TERM COMPENSATION

Name and Principal Position


   Year

   Salary($)

   Bonus($)

   Other Annual
Compensation
($)1


   Restricted
Stock
Awards ($)


   Number of
Securities
Underlying
Stock Options
(Shares)


   Long-Term
Incentive
Payouts ($)2


   All Other
Compensation
($)3


W. G. Hairston, III

President and Chief

Executive Officer

   2003
2002
2001
   459,231
440,104
414,594
   499,660
507,131
370,798
   9,296
11,485
1,583
   —  
—  
—  
   59,097
65,890
96,135
   217,489
239,842
294,360
   24,353
27,969
22,523

Jack D. Woodard

Executive Vice

President

   2003
2002
2001
   354,294
343,203
327,079
   352,705
361,604
267,169
   5,744
9,048
8,172
   —  
—  
—  
   42,258
47,592
83,534
   350,312
308,315
241,129
   20,241
22,968
16,212

James B. Beasley, Jr.

Vice President

   2003
2002
2001
   220,077
206,286
194,302
   179,723
181,714
136,055
   4,415
3,798
3,911
   —  
—  
—  
   18,220
19,647
37,727
   126,949
129,732
111,914
   12,326
13,819
13,967

H. L. Sumner, Jr.

Vice President

   2003
2002
2001
   215,888
208,321
199,067
   176,981
179,632
137,354
   3,016
5,931
6,184
   —  
—  
—  
   17,942
20,004
42,248
   142,789
140,011
124,254
   11,553
10,864
10,516

Jeffrey T. Gasser4

Vice President

   2003
2002
2001
   198,894
164,378
—  
   162,742
162,826
—  
   263
—  
—  
   —  
—  
—  
   16,498
8,195
—  
   59,795
51,634
—  
   7,929
8,339
—  

1 Tax reimbursements on certain perquisites.
2 Payout of performance dividend equivalents on most stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2000, 2001 and 2002, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. No dividend equivalents are paid if the total stockholder return is below the 30th percentile or if the Company’s earnings are not sufficient to fund the common stock dividend. For eligible stock options held on December 31, 2001, 2002 and 2003, all named executives received a payout of $1.34, $1.355 and $1.385 per option, respectively.
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

   $ 8,026    $ 744    $ 15,207    $ 376

Jack D. Woodard

     8,692      744      9,460      1,345

James B. Beasley, Jr.

     8,417      744      2,445      720

H. L. Sumner, Jr.

     9,000      744      1,789      —  

Jeffrey T. Gasser

     6,828      744      357      —  

 

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

 

24


Table of Contents

STOCK OPTION GRANTS IN 2003

 

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, 2003. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2004 Annual Meetings of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page number III-8 in the SOUTHERN system’s combined Form 10-K for the year ended December 31, 2003. SOUTHERN is incorporated by reference to “Option Grants in 2003” under STOCK OPTIONS in SOUTHERN’s definitive Proxy Statement relating to the 2004 Annual Meeting of Stockholders.

 

     Individual Grants

        Grant Date Value

Name


   Number of
Securities
Underlying
Share Options
Granted1


   % of Total
Options Granted
to Employees in
Fiscal Year2


   Exercise or
Base Price
($/Sh)3


   Expiration
Date3


   Grant Date
Present Value($)3


SCS

                        

H. Allen Franklin

   501,935    7.0    27.975    07/01/2009    1,801,947

Thomas A. Fanning

   42,314    0.6    27.975    02/14/2013    151,907

Dwight H. Evans

   47,404    0.7    27.975    02/14/2013    170,180

G. Edison Holland, Jr.

   48,992    0.7    27.975    02/14/2013    175,881

W. Paul Bowers

   46,181    0.6    27.975    02/14/2013    165,790

Southern LINC

                        

Robert G. Dawson

   28,698    0.4    27.975    02/14/2013    103,026

R. Craig Elder

   11,169    0.2    27.975    02/14/2013    40,097

Rodney H. Johnson

   6,700    0.1    27.975    02/14/2013    24,053

Julie T. Pigott

   6,492    0.1    27.975    02/14/2013    23,306

1 Under the terms of the Omnibus Incentive Compensation Plan, stock option grants were made on February 14, 2003 and vest annually at a rate of one-third on the anniversary date of the grant. Grants fully vest upon termination as a result of death, total disability or retirement and expire five years after retirement, three years after death or total disability or their normal expiration date if earlier. The exercise price is the average of the high and low price of Southern Company’s common stock on the date granted. Options may be transferred to a revocable trust and for Messrs. Franklin, Fanning, Evans, Holland and Bowers options also may be transferred to certain family members, family trusts and family limited partnerships.
2 A total of 7,165,452 stock options were granted in 2003.
3 Value was calculated using the Black-Scholes option valuation model. The actual value, if any, ultimately realized depends on the market value of Southern Company’s common stock at a future date. Significant assumptions are shown below:

 

Volatility


  

Risk-free

rate of return


   

Dividend

Yield


   

Expected

Term


      

23.59%

   2.72 %   4.90 %   4.28 years

 

25


Table of Contents

STOCK OPTION GRANTS IN 2003 (continued)

 

     Individual Grants

  

Exercise

or

Base Price

($/Sh)3


   Grant Date Value

Name


  

Number of

Securities

Underlying

Share Options

Granted1


  

% of Total

Options

Granted to

Employees in

Fiscal Year2


     

Expiration

Date3


  

Grant Date

Present Value($)3


Southern Management

                        

Ronald P. Bertasi

   12,465    0.2    27.975    02/14/2013    44,749

Southern Company GAS

                        

C. Philip Saunders

   23,634    0.3    27.975    02/14/2013    84,846

Southern Nuclear

                        

William G. Hairston, III

   59,097    0.8    27.975    02/14/2013    212,158

Jack D. Woodard

   42,258    0.6    27.975    02/14/2013    151,706

James B. Beasley, Jr.

   18,220    0.2    27.975    02/14/2013    65,410

H. L. Sumner, Jr.

   17,942    0.2    27.975    02/14/2013    64,412

Jeffrey T. Gasser

   16,498    0.2    27.975    02/14/2013    59,228

1 Under the terms of the Omnibus Incentive Compensation Plan, stock option grants were made on February 14, 2003 and vest annually at a rate of one-third on the anniversary date of the grant. Grants fully vest upon termination as a result of death, total disability or retirement and expire five years after retirement, three years after death or total disability or their normal expiration date if earlier. The exercise price is the average of the high and low price of Southern Company’s common stock on the date granted. Options may be transferred to a revocable trust and for Mr. Hairston options also may be transferred to certain family members, family trusts and family limited partnerships.

 

2 A total of 7,165,452 stock options were granted in 2003.

 

3 Value was calculated using the Black-Scholes option valuation model. The actual value, if any, ultimately realized depends on the market value of Southern Company’s common stock at a future date. Significant assumptions are shown below:

 

Volatility


  

Risk-free

rate of return


   

Dividend

Yield


   

Expected

Term


23.59%

   2.72 %   4.90 %   4.28 years

 

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Table of Contents

AGGREGATED STOCK OPTION EXERCISES IN 2003 AND YEAR-END OPTION VALUES

 

Aggregated Stock Option Exercises. The following table sets forth information concerning options exercised during the year ending December 31, 2003 by the named executive officers and value of unexercised options held by them as of December 31, 2003. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2004 Annual Meetings of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page number III-9 in the SOUTHERN system’s combined Form 10-K for the year ended December 31, 2003. SOUTHERN is incorporated by reference to “Aggregated Stock Option Exercises in 2003 and Year-End Option Values” under OPTION EXERCISES in SOUTHERN’s definitive Proxy Statement relating to the 2004 Annual Meeting of Stockholders.

 

Name


  

Shares Acquired

on Exercise (#)


  

Value

Realized($)2


  

Number of Unexercised

Options at Fiscal

Year-End (#)


  

Value of Unexercised

In-the-Money Options at

Fiscal Year-End($)1


         Exercisable

   Unexercisable

   Exercisable

   Unexercisable

SCS

                             

H. Allen Franklin

   —      —      813,567    922,693    9,140,670    4,045,262

Thomas A. Fanning

   22,830    332,827    78,236    83,123    801,883    386,126

Dwight H. Evans

   13,632    202,796    180,970    113,073    2,177,134    558,687

G. Edison Holland

   61,534    889,176    41,483    108,098    272,985    507,736

W. Paul Bowers

   35,077    541,068    72,345    96,791    692,848    435,030

Southern LINC

                             

Robert G. Dawson

   18,363    277,386    103,143    68,329    1,215,598    343,837

R. Craig Elder

   11,744    163,461    10,048    25,809    66,852    127,768

Rodney H. Johnson

   —      —      11,564    14,184    128,555    66,991

Julie T. Pigott

   —      —      11,520    13,888    128,335    66,078

Southern Management

                             

Ronald P. Bertasi

   —      —      4,567    21,598    22,789    73,932

Southern Company GAS

                             

C. Philip Saunders

   —      —      37,445    53,998    362,040    265,676

Southern Nuclear

                             

William G. Hairston, III

   79,070    799,208    21,964    135,068    109,600    665,782

Jack D. Woodard

   —      —      151,102    101,831    1,749,770    510,952

James B. Beasley, Jr.

   22,303    315,150    47,766    43,894    484,524    225,283

H. L. Sumner, Jr.

   18,174    215,578    57,736    45,361    657,426    241,049

Jeffrey T. Gasser

   —      —      16,311    26,862    170,691    76,370

1 This represents the excess of the fair market value of SOUTHERN’s common stock of $30.25 per share, as of December 31, 2003, 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, 2003.

 

2 The “Value Realized” is ordinary income, before taxes, and represents the amount equal to the excess of the fair market value of the shares at the time of exercise above the exercise price.

 

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Table of Contents
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, 2003. 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, 2003. SOUTHERN is incorporated by reference to the Stock Ownership Table in SOUTHERN’s definitive Proxy Statement relating to the 2004 Annual Meeting of Stockholders. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2004 Annual Meetings of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page numbers III-13 and III-14 in the SOUTHERN system’s combined Form 10-K for the year ended December 31, 2003.

 

 

Name of Directors

or Nominees and

Executive Officers


  

Title of Class


  

Shares

Beneficially

Owned (1)


  

Shares Beneficially Owned Include:

Shares Individuals Have Rights To

Acquire Within 60 Days(2)


SCS

              

H. Allen Franklin

   SOUTHERN Common    1,249,367    1,207,841

David M. Ratcliffe

   SOUTHERN Common      227,807      214,558

Charles D. McCrary

   SOUTHERN Common      259,492      256,031

W. Paul Bowers

   SOUTHERN Common      120,941      112,941

Dwight H. Evans

   SOUTHERN Common      235,770      225,402

Thomas A. Fanning

   SOUTHERN Common        85,419        83,657

G. Edison Holland, Jr

   SOUTHERN Common        91,269        87,075

The directors, nominees

and executive officers

of SCS as a Group

   SOUTHERN Common               2,687,395 shares               2,574,404 shares

Southern LINC

              

Robert G. Dawson

   SOUTHERN Common      157,527      132,007

Thomas A. Fanning

   SOUTHERN Common        85,419        83,657

H. Allen Franklin

   SOUTHERN Common    1,249,367    1,207,841

Charles D. McCrary

   SOUTHERN Common      259,492      256,031

David M. Ratcliffe

   SOUTHERN Common      227,807      214,558

R. Craig Elder

   SOUTHERN Common        24,854        21,311

Rodney H. Johnson

   SOUTHERN Common        21,052        18,383

Julie T. Pigott

   SOUTHERN Common        20,094        18,225

The directors, nominees

and executive officers

of Southern LINC

as a Group

   SOUTHERN Common               2,045,612 shares               1,952,013 shares

 

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Table of Contents
ITEM 6. OFFICERS AND DIRECTORS.

PART III.

 

Name of Directors

or Nominees and

Executive Officers


  

Title of Class


  

Shares

Beneficially

Owned (1)


  

Shares Beneficially Owned Include:

Shares Individuals Have Rights To

Acquire Within 60 Days(2)


Southern Telecom

              

Robert G. Dawson

   SOUTHERN Common       157,527      132,007

Thomas A. Fanning

   SOUTHERN Common         85,419        83,657

H. Allen Franklin

   SOUTHERN Common    1,249,367    1,207,841

Charles D. McCrary

   SOUTHERN Common      259,492      256,031

David M. Ratcliffe

   SOUTHERN Common       227,807      214,558

R. Craig Elder

   SOUTHERN Common        24,854        21,331

The directors, nominees

and executive officers

of Southern Telecom

as a Group

   SOUTHERN Common               2,004,466 shares               1,915,425 shares

Southern Management

              

Ronald P. Bertasi

   SOUTHERN Common        13,429        13,288

Thomas A. Fanning

   SOUTHERN Common        85,419        83,657

H. Allen Franklin

   SOUTHERN Common    1,249,367    1,207,841

Leonard J. Haynes

   SOUTHERN Common      103,169        96,000

Charles D. McCrary

   SOUTHERN Common      259,492      256,031

David M. Ratcliffe

   SOUTHERN Common       227,807      214,558

Robert M. Gilbert

   SOUTHERN Common          2,885          2,720

The directors, nominees

and executive officers

of Southern Management

as a Group

   SOUTHERN Common               1,941,568 shares               1,874,095 shares

Southern Company GAS

              

C. Philip Saunders

   SOUTHERN Common        61,950        61,082

Southern Nuclear

              

H. Allen Franklin

   SOUTHERN Common    1,249,367    1,207,841

William G. Hairston, III

   SOUTHERN Common        86,225        81,959

Charles D. McCrary

   SOUTHERN Common      259,492      256,031

David M. Ratcliffe

   SOUTHERN Common      227,807      214,558

Jack D. Woodard

   SOUTHERN Common      202,960      192,580

H. L. Sumner, Jr.

   SOUTHERN Common        56,972        54,495

James B. Beasley, Jr.

   SOUTHERN Common        74,775        66,381

Jeffrey T. Gasser

   SOUTHERN Common        35,156        27,755

The directors, nominees

and executive officers

of Southern Nuclear

as a Group

   SOUTHERN Common               2,192,754 shares               2,101,600 shares

 

29


Table of Contents

Notes to Item 6, Part III(b):

 

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

 

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

 

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 2004 Annual Meetings of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page number III-6 and III-7 in the SOUTHERN system’s combined Form 10-K for the year ended December 31, 2003.

 

(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 2004 annual meeting of stockholders. Also, ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2004 Annual Meetings of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page numbers III-10 to III-12 in the SOUTHERN system’s combined Form 10-K for the year ended December 31, 2003.

 

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, Southern LINC, Southern Telecom, Southern Management, Southern Company GAS and Southern Nuclear. If an executive is involuntarily terminated, other than for cause, within two years following a change in control of SOUTHERN the agreements provide for:

 

  lump sum payment of two or three times annual compensation,

 

  up to five years’ coverage under group health and life insurance plans,

 

  immediate vesting of all stock options, stock appreciation rights and restricted stock previously granted,

 

  payment of any accrued long-term and short-term bonuses and dividend equivalents, and

 

  payment of any excise tax liability incurred as a result of payments made under any individual agreements.

 

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

 

  acquisition of at least 20 percent of SOUTHERN’s stock,

 

  a change in the majority of the members of SOUTHERN’s board of directors,

 

  a merger or other business combination that results in SOUTHERN’s shareholders immediately before the merger owning less than 65 percent of the voting power after the merger, or

 

  a sale of substantially all the assets of SOUTHERN.

 

If a change in control affects only a subsidiary of SOUTHERN, these payments would only be made to executives of the affected subsidiary who are involuntarily terminated as a result of that change in control.

 

SOUTHERN also provides in its incentive plans for pro-rata payments at not less than target-level performance if a change in control occurs and the plans are not continued or replaced with comparable plans.

 

On February 23, 1998, SOUTHERN and Southern Nuclear entered into a Deferred Compensation Agreement with Mr. Woodard that provided that on the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its subsidiaries, Mr. Woodard would 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 would receive the estimated income tax expense on the compensation. Mr. Woodard could elect to defer receipt of the award until termination of employment. This Agreement expired by its terms on February 23, 2003, and the cash value of the shares on that date ($474,514) was deferred by Mr. Woodard along with the estimated income tax expense on the compensation ($366,823) for a total deferral of $841,337.

 

30


Table of Contents

Mr. Woodard retired from Southern Nuclear on April 1, 2004. In connection with his retirement, Southern Nuclear entered into an agreement with Mr. Woodard. The Agreement provides for the payment to Mr. Woodard of $951,756. This amount will be paid in five annual installments which will be determined based on an effective interest rate of 7.5% per annum. The Agreement also contains customary releases by Southern Nuclear and Mr. Woodard and an agreement by Mr. Woodard to not engage in specified competitive activities for two years.

 

On February 23, 1998, SOUTHERN and Southern Nuclear entered into a Deferred Compensation Agreement with Mr. Hairston that provided that on the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its subsidiaries, Mr. Hairston would 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 would receive the estimated income tax expense on the compensation. Mr. Hairston could elect to defer receipt of the award until termination of employment. This Agreement expired by its terms on February 23, 2003, and the cash value of the shares on that date ($601,058) was paid to Mr. Hairston along with the estimated income tax expense on the compensation ($464,647) for a total payment of $1,065,705.

 

On February 22, 2002, SOUTHERN, SAVANNAH, SCS and GULF entered into a Supplemental Pension Agreement with Mr. Holland. The Agreement provides that upon the retirement of Mr. Holland, he will be paid a monthly amount equal to the difference in the amount he receives from the Southern Company Pension Plan and the amount he would have received had he been employed by a subsidiary or affiliate of SOUTHERN since January 1, 1980. The Agreement also provides for lump sum payments upon Mr. Holland’s retirement equal to the amount he would have received under the Southern Company Employee Savings Plan and Employee Stock Ownership Plan had he participated in such plans in 1992.

 

(f) Rights to indemnity. Incorporated by reference are the by-laws, for the companies of the SOUTHERN system, contained herein as Exhibits.

 

31


Table of Contents
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.

 

Name of Company


  

Name of Recipient or Beneficiary


  

Purpose


  

Accounts Charged,

if any, per Books

of Disbursing

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.

 

Name of Company


  

Name of Recipient or Beneficiary


  

Purpose


  

Accounts Charged,

if any, per Books of

Disbursing Company


   Amount($)

 
ALABAMA    Business Council of Alabama    Dues & Support    930,426,506,520    320,395  
               539,549,563       
     Edison Electric Institute    Dues    426,921,930    625,066  
     Nature Conservancy of Alabama    Dues & Support    921    2,200  
     Nuclear Energy Institute    Dues    524    438,871 *
     Public Affairs Research Council of Alabama    Dues & Support    930,426    42,185  
GEORGIA    Buckhead Coalition    Dues    930    5,000  
     Central Atlanta Progress    Dues    930    26,750  
     Edison Electric Institute    Dues    426,930    885,996  
     Georgia Conservancy    Support    426    16,000  
               n/a    25,000 **
     Georgia Municipal Association    Support    930    5,000  
     National Association of Manufacturers    Dues    930    15,000  
     National Association of Regional Councils    Support    930    2,500  
     Nature Conservancy    Support    426    15,000  
               n/a    260,000 **
     Nuclear Energy Institute    Dues    524,426    566,103 ***
     Regional Business Coalition    Dues    930    10,000  

 

* 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.

 

32


Table of Contents
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued)

 

Name of Company


  

Name of Recipient or Beneficiary


   Purpose

   Accounts Charged,
if any, per Books of
Disbursing
Company


   Amount($)

GULF

  

Economic Development Council—Bay County

   Support    912    20,000
    

Economic Development Council—Holmes County

   Support    912    10,000
    

Economic Development Council—Okaloosa County

   Support & Dues    912    17,000
    

Chamber of Commerce—Florida

   Support & Dues    912,921,426    32,065
    

Chamber of Commerce—Pensacola

   Support & Dues    426,912,921,930    10,681
    

Chamber of Commerce—Washington County

   Support    426,912    11,500
    

Edison Electric Institute

   Dues    921,930    150,140
    

Enterprise Florida

   Support    912,921    52,105
    

Florida’s Great Northwest

   Support & Dues    912    102,500
    

Other Economic Development Councils/Activity Groups 13 Beneficiaries)

   Support & Dues    921    46,400

MISSISSIPPI

  

Center for Public Utilities at New Mexico State University

   Dues    426    2,500
    

Edison Electric Institute

   Dues    426,930    111,080
    

Land Trust for the Mississippi Coastal Plain

   Dues    426    2,000
    

Mississippi Economic Council

   Dues    426,930    50,000
    

Mississippi Gulf Coast Economic Development Council

   Dues    426,930    2,000
    

Mississippi Manufacturers Association

   Dues    426,930    2,300
    

Mississippi Wildlife Federation

   Dues    426    1,000
    

Retail Association of Mississippi

   Dues    426,930    2,000

SAVANNAH

  

Association of County Commissioners of Georgia

   Dues    930    500
    

Edison Electric Institute

   Dues    426,930    64,437
    

Georgia Conservancy

   Support    426    1,000
    

Georgia Municipal Association

   Dues    426    500
    

Nature Conservancy

   Support    426    55,000
    

North American Energy Standards Board

   Membership    930    5,000
    

Savannah Foundation

   Support    426    5,000
    

Southeastern Electrification Council

   Membership    930    1,600
    

Southeastern Electric Exchange

   Membership    930    4,909
    

Other Economic Development Councils/Activity Groups (3 Beneficiaries)

   Dues    930    973

 

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Table of Contents
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS.

 

PART I.

 

Transactions

(1)


  

Serving Company

(2)


 

Receiving Company

(3)


  

Compensation

(4)


   

Contract

(5)


   

In Effect

on Dec. 31

(Yes or No)

(6)


(Note)

   (Note)   Southern LINC      (Note )   (Note )   Yes

(Note)

   (Note)   Southern Management      (Note )   (Note )   Yes

Sublease of railcars

   SAVANNAH   GEORGIA    $ 318,420           Yes

Sublease of railcars

   ALABAMA   MISSISSIPPI    $ 1,104,282           Yes

Sublease of railcars

   GEORGIA   MISSISSIPPI    $ 73,906           Yes

Sublease of railcars

   MISSISSIPPI   GEORGIA    $ 411,219           Yes

Sublease of railcars

   ALABAMA   GEORGIA    $ 2,121,842           Yes

Sublease of railcars

   GEORGIA   ALABAMA    $ 900,305           Yes

Sublease of railcars

   MISSISSIPPI   ALABAMA    $ 33,351           Yes

Sublease of railcars

   ALABAMA   SAVANNAH    $ 2,968           Yes

Sublease of railcars

   GEORGIA   GULF    $ 305,394           Yes

Sublease of railcars

   SAVANNAH   MISSISSIPPI    $ 243           Yes

Sublease of railcars

   GEORGIA   SAVANNAH    $ 272,782           Yes

Sublease of railcars

   ALABAMA   ERA    $ 377,400           Yes

Sublease of railcars

   GEORGIA   ERA    $ 102,628           Yes

Sublease of railcars

   GEORGIA   SCRS    $ 38,662           Yes

Sublease of railcars

   SCRS   GEORGIA    $ 320,421           Yes

Sublease of railcars

   SCRS   ALABAMA    $ 8,301           Yes

 

Note: The Serving Company leased the cars; the Receiving Company owns or leases the cars and the Compensation is the amount paid to the Receiving Company for use of the cars, at cost.

 

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 2003 the total reimbursements to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH from Southern LINC were $40,791,791; $1,280,858; $2,507,025; $118,678; $145,472 and $19,761, respectively; and from Southern Management were $3,129,482, $254,657, $238,899; $85,861; none and $46,626, respectively. Southern Management in 2003 also reimbursed SCES LLC $453,220 for the full cost of services, personnel and facilities.

 

Southern Company GAS during 2003 also reimbursed GEORGIA and SCS for certain services which were furnished, at cost in the amounts of $419,501 and $10,457,391, respectively.

 

Synfuel Services has agreements with SCS, ALABAMA and GEORGIA pursuant to which Synfuel Services reimburses each of these companies for full cost of services, personnel and facilities. Pursuant to these agreements, during 2003 Synfuel Services’ reimbursements to SCS, ALABAMA and GEORGIA were $29,082, $34,151,396 and $33,183,094, respectively.

 

SCES LLC has agreements with SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI, SAVANNAH, Southern Management, and Southern Nuclear for services, personnel and facilities. During 2003, SCES LLC reimbursed to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI, SAVANNAH, Southern Management and Southern Nuclear $2,602,210; $248,500; $342,206; $8,839; none; $1,513;$299,269 and $10,268, respectively.

 

PART II. None.

PART III. None.

 

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Table of Contents
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES

 

PART I (a) See Item 6—Part I for the name of the company, its location and business address.

PART I (b)

Key terms:       EWG means Exempt Wholesale Generator

FUCO means Foreign Utility Company

SPS means Special Purpose Subsidiary

IS means Intermediate Subsidiary

 

COMPANY


  

EWG,

FUCO,

SPS,

IS


   OWNERSHIP

   %
OWNED


    SOUTHERN
COMPANY’S DIRECT
OR INDIRECT
INVESTMENT IN THIS
ENTITY AS DEFINED
UNDER RULES 53 AND
58


SE Finance Capital Corporation II (See Note 1)

   SPS    Southern Company
Holdings, Inc.
   100 %   —  

SE Finance Capital Corporation (See Note 1)

   SPS    SE Finance Capital
Corporation II
   100 %   —  

Southern Energy Finance Company, Inc. (See Note 1)

   IS    SE Finance Capital
Corporation
   100 %   —  

EPZ Lease, Inc.

   IS    Southern Energy
Finance Company,
Inc.
   100 %   —  

EPZ Lease, LLC

   IS    EPZ Lease, Inc.
Southern Energy
Finance Company,
Inc.
   99
1
%
%
  —  

EPZ Lease Holding A, LLC

   IS    EPZ Lease, LLC
EPZ Lease, Inc.
   99
1
%
%
  —  

EPZ Lease Holding B, LLC

   IS    EPZ Lease, LLC
EPZ Lease, Inc.
   99
1
%
%
  —  

EPZ Lease Holding C, LLC

   IS    EPZ Lease, LLC
EPZ Lease, Inc.
   99
1
%
%
  —  

EPZ Lease Trust A

   FUCO    EPZ Lease
Holding A, LLC
   100 %   See Note 2

EPZ Lease Trust B

   FUCO    EPZ Lease
Holding B, LLC
   100 %   See Note 2

EPZ Lease Trust C

   FUCO    EPZ Lease
Holding C, LLC
   100 %   See Note 2

Southern Company Capital Funding, Inc.

   IS    Southern Company
Holdings, Inc.
   100 %   —  

Southern Company Capital Trust IV

   SPS    Southern Company
Capital Funding,
Inc.
   100 %   —  

Southern Company Capital Trust V

   SPS    Southern Company
Capital Funding,
Inc.
   100 %   —  

Southern Company Capital Trust VI

   SPS    Southern Company
Capital Funding,
Inc.
   100 %   —  

 

35


Table of Contents
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES

PART I(b)

 

COMPANY


  

EWG,

FUCO,

SPS

IS

ER


   OWNERSHIP

   %
OWNED


    SOUTHERN
COMPANY’S
DIRECT OR
INDIRECT
INVESTMENT IN
THIS ENTITY AS
DEFINED UNDER
RULES 53 AND 58


Dutch Gas Lease, Inc.    IS    Southern Energy
Finance Company,
Inc.
   100 %   —  

Dutch Gas Lease, LLC

   IS    Dutch Gas Lease, Inc.
Southern Energy
Finance Company,
Inc.
   99
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
Holding A, L.L.C.
   100 %   See Note 2

Dutch Gas Lease Holding B, L.L.C.

   IS    Dutch Gas Lease,
L.L.C.
   100 %   —  

Dutch Gas Lease Trust B

   FUCO    Dutch Gas Lease
Holding B. L.L.C.
   100 %   See Note 2

Dutch Gas Lease Holding C, L.L.C.

   IS    Dutch Gas Lease,
L.L.C.
   100 %   —  

Dutch Gas Lease Trust C

   FUCO    Dutch Gas Lease
Holding C, L.L.C.
   100 %   See Note 2

NUON Lease, Inc.

   IS    Southern Energy
Finance Company,
Inc.
   100 %   —  

NUON Lease Holding D, L.L.C.

   IS    NUON Lease, Inc.    100 %   —  

NUON Lease Trust D

   FUCO    NUON Lease
Holding D, L.L.C.
   100 %   See Note 2

NUON Lease Holding E, L.L.C.

   IS    NUON Lease, Inc.    100 %   —  

NUON Lease Trust E

   FUCO    NUON Lease
Holding E, L.L.C.
   100 %   See Note 2

NUON Lease Holding F, L.L.C.

   IS    NUON Lease, Inc.    100 %   —  

NUON Lease Trust F

   FUCO    NUON Lease
Holding F, L.L.C.
   100 %   See Note 2

GAMOG Lease, Inc.

   IS    Southern Energy
Finance Company,
Inc.
   100 %   —  

GAMOG Lease Holding G, L.L.C.

   IS    Gamog Lease, Inc.    100 %   —  

GAMOG Lease Trust G

   FUCO    Gamog Lease
Holding G, L.L.C.
   100 %   See Note 2

GAMOG Lease Holding H, L.L.C.

   IS    Gamog Lease, Inc.    100 %   —  

GAMOG Lease Trust H

   FUCO    Gamog Lease
Holding H, L.L.C.
   100 %   See Note 2

GAMOG Lease Holding I, L.L.C.

   IS    Gamog Lease, Inc.    100 %   —  

GAMOG Lease Trust I

   FUCO    Gamog Lease
Holding I, L.L.C.
   100 %   See Note 2

 

36


Table of Contents
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES

PART I(b)

 

COMPANY


  

EWG,

FUCO,

SPS

IS

ER


   OWNERSHIP

   %
OWNED


    SOUTHERN
COMPANY’S
DIRECT OR
INDIRECT
INVESTMENT IN
THIS ENTITY AS
DEFINED UNDER
RULES 53 AND 58


Southern Company-Florida LLC

   EWG    Southern Power
Company
   100 %   $ 260,575,639

Southern Company Holdings, Inc.

   SPS    SOUTHERN    100 %     —  

SE Choctaw, Inc.

   IS    SE Finance Capital
Corporation II
   100 %     —  

SE Choctaw LLC

   EWG    SE Choctaw, Inc.    100 %   $ 59,907,662

 

SOUTHERN’s aggregate investment as defined under Rules 53 and 58 in EWGs and FUCOs at December 31, 2003 was $320,483,301.

 

NOTE 1

 

SOUTHERN has executed limited keep-well commitments whereby SOUTHERN would be required to make capital contributions to SE Finance Capital Corporation II, SE Finance Capital Corp. or 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 $380 million as of December 31, 2003.

 

NOTE 2

 

As discussed in SOUTHERN’s Application on Form U-1 (File No. 70-9727) relating to the spin-off of 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 FUCOs 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.

 

37


Table of Contents
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES

PART I(c)

 

COMPANIES


  

DEBT TO EQUITY


   EARNINGS

SE Finance Capital Corporation II

   2.0    $ 52,167,008

SE Choctaw LLC

   0    $ 59,907,662

SE Finance Capital Corporation

   2.1    $ 46,546,539

Southern Energy Finance Company, Inc.

   0.5    $ 49,557,585

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    $ 260,575,639

 

PART I(d)

 

None.

 

PART II

 

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

 

 

38


Table of Contents
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES

PART III

 

SOUTHERN’s aggregate investment in EWGs and FUCOs at December 31, 2003 is as follows:

 

     Total1

   Equity1

   Debt

   Guarantees2

     (in thousands)

Investment In EWGs & FUCOs (A)

   $ 320,483    $ 195,913    $ 56,000    $ 68,570

Investment in

Domestic Public-Utility Subs


  

SOUTHERN’s Investment

(in thousands)


   Total

   Equity

   Debt

   Guarantees

ALABAMA

   $ 2,217,068    $ 2,217,068    $ —      $ —  

GEORGIA

   $ 2,552,788    $ 2,552,788      —        —  

GULF

   $ 402,924    $ 402,924      —        —  

MISSISSIPPI

   $ 330,532    $ 330,532      —        —  

SAVANNAH

   $ 78,640    $ 78,640      —        —  

SOUTHERN POWER

   $ 658,306    $ 658,306      —        —  

SEGCO

   $ 33,848    $ 33,848      —        —  

(B) Total Domestic Public—Utility Subsidiaries

   $ 6,466,112    $ 6,466,112    $ —      $ —  
RATIO A÷B      0.050 1                     

 

(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 agreed to grant performance guarantees on behalf of SOUTHERN POWER and its subsidiary, Southern Company – Florida LLC (SCF), for SCF’s payment obligations under ownership and power purchase agreements associated with Plant Stanton in Orlando. Construction of Plant Stanton was completed and the unit placed in commercial operation in October 2003. Subsequently, the guarantees have been transferred to SOUTHERN POWER and SOUTHERN has been released from these guarantees.

 

     Acting as an agent for all of SOUTHERN’s operating companies, SOUTHERN POWER and Southern Company GAS, SCS may enter into various types of wholesale energy and natural gas contracts. Under these agreements, each of the operating companies, SOUTHERN POWER and Southern Company GAS may be jointly and severally liable for the obligations of each of the operating companies, SOUTHERN POWER and Southern Company GAS. The creditworthiness of SOUTHERN POWER and Southern Company GAS is currently inferior to the creditworthiness of the operating companies; therefore, SOUTHERN has entered into keep-well agreements with each of the operating companies to insure they will not subsidize nor be responsible for any costs, losses, liabilities or damages resulting from the inclusion of SOUTHERN POWER and Southern Company GAS as a contracting party under these agreements.

 

39


Table of Contents

ITEM 10 – FINANCIAL STATEMENTS AND EXHIBITS

 

SOUTHERN AND SUBSIDIARY COMPANIES

 

INDEX TO FINANCIAL STATEMENTS

 

December 31, 2003

 

     Page
Number


FINANCIAL STATEMENTS:

    

Consolidating Statement of Income for the Year Ended December 31, 2003

   A-1

Consolidating Statement of Cash Flows for the Year Ended December 31, 2003

   A-3

Consolidating Balance Sheet at December 31, 2003

   A-5

Consolidating Statement of Capitalization at December 31, 2003

   A-9

Consolidating Statement of Retained Earnings for the Year Ended December 31, 2003

   A-13

Consolidating Statement of Paid-in Capital for the Year Ended December 31, 2003

   A-14

Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2003

   A-15

Consolidating Statements of Accumulated Other Comprehensive Income for the Year Ended December 31, 2003

   A-15

Notes to Financial Statements at December 31, 2003

   A-16

OTHER FINANCIAL STATEMENTS:

    

ALABAMA consolidated with ALABAMA TRUST II, ALABAMA TRUST III, ALABAMA TRUST IV and ALABAMA TRUST V

   A-17

Alabama Property Company (Unaudited; Not consolidated in Parent, ALABAMA)

   A-22

GEORGIA consolidated with PIEDMONT, GEORGIA TRUST IV, GEORGIA TRUST V and GEORGIA TRUST VI

   A-24

GULF consolidated with GULF TRUST I, GULF TRUST II, GULF TRUST III and GULF TRUST IV

   A-29

MISSISSIPPI consolidated with MISSISSIPPI TRUST II

   A-33

SAVANNAH consolidated with SAVANNAH ELECTRIC TRUST I

   A-37

SOUTHERN POWER consolidated with SOUTHERN COMPANY FLORIDA, SOUTHERN COMPANY JET PORT, KLONDIKE, McLEOD and CHEROKEE

   A-41

SOUTHERN HOLDINGS consolidated with SE FINANCE CAPITAL CORP II, CAPITAL FUNDING, SCES LLC, ALABAMA SYNFUEL ENERGY, SYNFUEL SERVICES, ERA, ELECTROTECHNOLOGIES, SCRS and SERC

   A-45

EXHIBITS

   A-49

 

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, 2003, as filed with the Federal Energy Regulatory Commission.

 

A


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

     Consolidated

   

Intercompany

Eliminations
and Transfers
Add (Deduct)


    Southern

    Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

    SEGCO

   

Southern

Funding


 

Operating Revenues:

                                                                                

Retail sales

   $ 8,874,655     $ —       $ —       $ 3,051,463     $ 4,309,972     $ 699,174     $ 516,301     $ 297,745     $ —       $ —    

Sales for resale —

                                                                                

Non-affiliates

     1,357,797       —         —         487,456       259,376       76,767       249,986       5,653       —         —    

Affiliates

     —         (1,052,422 )     —         277,287       174,855       63,268       26,723       6,499       175,012       —    

Other electric revenues

     515,033       (10,184 )     —         143,955       169,304       38,488       76,914       4,158       1,763       —    

Other revenues

     503,944       (5,793 )     —         —         —         —         —         —         —         —    
    


 


 


 


 


 


 


 


 


 


Total operating revenues

     11,251,429       (1,068,399 )     —         3,960,161       4,913,507       877,697       869,924       314,055       176,775       —    
    


 


 


 


 


 


 


 


 


 


Operating Expenses:

                                                                                

Fuel

     3,030,887       (90,167 )     —         1,067,821       1,103,963       316,503       229,251       55,308       110,034       —    

Purchased power —

                                                                                

Non-affiliates

     472,732       619       —         110,885       258,621       17,137       18,523       5,713       —         —    

Affiliates

     —         (1,036,850 )     —         204,353       516,944       33,020       74,674       83,792       —         —    

Other operations

     2,302,491       (32,263 )     49,853       611,418       827,972       140,166       230,075       56,823       22,695       —    

Maintenance

     936,643       —         —         309,451       419,206       70,534       70,043       26,798       21,346       —    

Depreciation and amortization

     1,027,476       —         —         412,919       349,984       82,322       55,700       20,499       11,343       —    

Taxes other than income taxes

     586,036       —         250       228,414       212,827       66,115       53,991       14,665       1,161       —    
    


 


 


 


 


 


 


 


 


 


Total operating expenses

     8,356,265       (1,158,661 )     50,103       2,945,261       3,689,517       725,797       732,257       263,598       166,579       —    
    


 


 


 


 


 


 


 


 


 


Operating Income

     2,895,164       90,262       (50,103 )     1,014,900       1,223,990       151,900       137,667       50,457       10,196       —    

Other Income and (Expense):

                                                                                

Allowance for equity funds used during construction

     24,645       —         —         12,594       10,752       712       —         193       394       —    

Interest income

     35,635       (101,234 )     10,643       15,220       15,625       888       617       290       —         3,742  

Equity in earnings (losses) of unconsolidated subsidiaries

     (183,939 )     (1,616,403 )     1,511,910       3,247       3,557       64       36       56       —         —    

Leveraged lease income

     65,778       —         —         —         —         —         —         —         —         —    

Interest expense, net of amounts capitalized

     (527,295 )     100,674       (92,340 )     (214,302 )     (182,583 )     (31,069 )     (14,369 )     (9,590 )     (3,110 )     (3,742 )

Distributions on mandatorily redeemable preferred securities

     (151,358 )     —         —         (15,255 )     (59,675 )     (7,085 )     (2,520 )     (2,740 )     —         —    

Preferred dividends of subsidiaries

     (21,167 )     —         —         (18,267 )     (670 )     (217 )     (2,013 )     —         —         —    

Other income (expense), net

     (51,819 )     (60 )     (8,203 )     (34,949 )     (14,108 )     (5,306 )     (604 )     (751 )     458       —    
    


 


 


 


 


 


 


 


 


 


Total other income and (expense)

     (809,520 )     (1,617,023 )     1,422,010       (251,712 )     (227,102 )     (42,013 )     (18,853 )     (12,542 )     (2,258 )     —    
    


 


 


 


 


 


 


 


 


 


Earnings From Continuing Operations Before Income Taxes

     2,085,644       (1,526,761 )     1,371,907       763,188       996,888       109,887       118,814       37,915       7,938       —    

Income taxes

     612,460       —         (101,927 )     290,378       366,311       40,877       45,315       15,108       1,532       —    
    


 


 


 


 


 


 


 


 


 


Earnings From Continuing Operations Before Cumulative Effect of Accounting Change

     1,473,184       (1,526,761 )     1,473,834       472,810       630,577       69,010       73,499       22,807       6,406       —    

Cumulative effect of accounting change— less income taxes of $231

     367       —         —         —         —         —         —         —         —         —    
    


 


 


 


 


 


 


 


 


 


Consolidated Net Income

   $ 1,473,551     $ (1,526,761 )   $ 1,473,834     $ 472,810     $ 630,577     $ 69,010     $ 73,499     $ 22,807     $ 6,406     $ —    
    


 


 


 


 


 


 


 


 


 


Common Stock Data:

                                                     

Earnings Per Share from continuing operations—

               Average number of shares of common stock outstanding (stated in
thousands)—

Basic

   $ 2.03          Basic                          726,702          

Diluted

   $ 2.02          Diluted                          731,905          

Earnings Per Share including discontinued operations—

               Cash dividends paid per share of common stock         $ 1.38½          

Basic

   $ 2.03                                                

Diluted

   $ 2.02                                                

 

(Continued on following page)

 

A-1


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

(Continued)

 

     Southern
Power


   

Southern

Holdings


    Southern
Mgt Dev


    Southern
LINC


    Powercall

   

Southern

Telecom


    Southern
Gas


   

Deferred

Cash
Trust


   

Deferred

Stock
Trust


  

Change in

Control

Trust


 

Operating Revenues:

                                                                               

Retail sales

   $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —      $ —    

Sales for resale—  

                                                                               

Non-affiliates

     278,559       —         —         —         —         —         —         —         —        —    

Affiliates

     312,586       819       51       15,322       —         —         —         —         —        —    

Other electric revenues

     90,635       —         —         —         —         —         —         —         —        —    

Other revenues

     —         142,926       5,720       182,865       —         9,735       168,491       —         —        —    
    


 


 


 


 


 


 


 


 

  


Total operating revenues

     681,780       143,745       5,771       198,187       —         9,735       168,491       —         —        —    
    


 


 


 


 


 


 


 


 

  


Operating Expenses:

                                                                               

Fuel

     115,256       —         —         —         —         —         122,918       —         —        —    

Purchased power—  

                                                                               

Non-affiliates

     61,234       —         —         —         —         —         —         —         —        —    

Affiliates

     124,067       —         —         —         —         —         —         —         —        —    

Other operations

     50,852       151,035       8,903       123,276       28       7,411       54,185       11       —        51  

Maintenance

     11,389       —         —         7,876       —         —         —         —         —        —    

Depreciation and amortization

     39,012       16,928       228       31,113       —         1,657       5,771       —         —        —    

Taxes other than income taxes

     6,665       —         9       1,630       —         238       71       —         —        —    
    


 


 


 


 


 


 


 


 

  


Total operating expenses

     408,475       167,963       9,140       163,895       28       9,306       182,945       11       —        51  
    


 


 


 


 


 


 


 


 

  


Operating Income

     273,305       (24,218 )     (3,369 )     34,292       (28 )     429       (14,454 )     (11 )     —        (51 )

Other Income and (Expense):

                                                                               

Allowance for equity funds used during construction

     —         —         —         —         —         —         —         —         —        —    

Interest income

     435       88,239       53       63       19       24       —         30       221      760  

Equity in earnings (losses) of unconsolidated subsidiaries

     —         (93,282 )     6,875       1       —         —         —         —         —        —    

Leveraged lease income

     —         65,778       —         —         —         —         —         —         —        —    

Interest expense, net of amounts capitalized

     (31,708 )     (38,107 )     (262 )     (4,873 )     —         (446 )     (1,468 )     —         —        —    

Distributions on mandatorily redeemable preferred securities

     —         (64,083 )     —         —         —         —         —         —         —        —    

Preferred dividends of subsidiaries

     —         —         —         —         —         —         —         —         —        —    

Other income (expense), net

     (2,029 )     1,630       (40 )     (3,777 )     —         15,888       (21 )     —         53      —    
    


 


 


 


 


 


 


 


 

  


Total other income and (expense)

     (33,302 )     (39,825 )     6,626       (8,586 )     19       15,466       (1,489 )     30       274      760  
    


 


 


 


 


 


 


 


 

  


Earnings From Continuing Operations Before Income Taxes

     240,003       (64,043 )     3,257       25,706       (9 )     15,895       (15,943 )     19       274      709  

Income taxes

     85,221       (145,157 )     (1,390 )     10,209       26       5,957       —         —         —        —    
    


 


 


 


 


 


 


 


 

  


Earnings Before Cumulative Effect of Accounting Change

     154,782       81,114       4,647       15,497       (35 )     9,938       (15,943 )     19       274      709  

Cumulative effect of accounting change—less income taxes of $231

     367       —         —         —         —         —         —         —         —        —    
    


 


 


 


 


 


 


 


 

  


Consolidated Net Income

   $ 155,149     $ 81,114     $ 4,647     $ 15,497     $ (35 )   $ 9,938     $ (15,943 )   $ 19     $ 274    $ 709  
    


 


 


 


 


 


 


 


 

  


 

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-2


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

    Consolidated

    Intercompany
Eliminations
and Transfers
Add (Deduct)


    Southern

    Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

    SEGCO

    SCS

    Southern
Nuclear


 

Operating Activities:

                                                                                       

Consolidated net income

  $ 1,473,551     $ (1,547,928 )   $ 1,473,834     $ 491,077     $ 631,247     $ 69,227     $ 75,512     $ 22,807     $ 6,406     $ —       $ —    

Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities—

                                                                                       

Depreciation and amortization

    1,163,139       —         635       467,085       390,201       87,949       60,226       22,587       11,674       22,520       854  

Deferred income taxes and investment tax credits

    450,974       —         (30,932 )     153,154       230,221       2,303       (8,562 )     793       2,006       —         (7,562 )

Plant Daniel capacity

    60,300       —         —         —         —         —         60,300       —         —         —         —    

Deferred capacity revenues

    (15,316 )     (15,724 )     —         (9,589 )     —         —         —         —         —         —         —    

Equity in losses of unconsolidated subsidiaries

    93,772       1,520,405       (1,511,910 )     (3,246 )     (2,393 )     55       —         —         —         (205 )     (358 )

Leveraged lease income

    (65,778 )     —         —         —         —         —         —         —         —         —         —    

Pension, postretirement, and other employee benefits

    (18,656 )     —         792       (32,029 )     (29,118 )     (717 )     (1,014 )     6,215       —         17,940       16,838  

Tax benefit of stock options

    29,782       (30,533 )     29,782       8,680       11,649       1,768       2,323       884       —         —         3,801  

Settlement of interest rate hedges

    (115,771 )     —         —         (7,957 )     (11,250 )     (3,266 )     —         —         —         —         —    

Other, net

    10,831       11,200       1,455       14,639       5,161       6,774       6,517       4,015       316       (10,172 )     (15,994 )

Changes in certain current assets and liabilities—

                                                                                       

Receivables, net

    5,770       (12,485 )     9,084       7,134       (4,870 )     8,223       21,038       1,189       (3,996 )     (4,885 )     (652 )

Fossil fuel stock

    (17,172 )     —         —         (13,251 )     (17,490 )     1,837       2,070       (323 )     —         —         —    

Materials and supplies

    (11,522 )     —         —         (4,651 )     (7,677 )     (1,091 )     (1,607 )     516       —         149       —    

Other current assets

    27,038       (11,537 )     8,882       (953 )     (2,352 )     12,207       1,750       4,057       (95 )     16,237       (2,054 )

Accounts payable

    (67,103 )     (7,732 )     (24,162 )     50,928       (49,598 )     (1,105 )     (12,292 )     3,713       (1,652 )     (43,294 )     2,666  

Accrued taxes

    19,012       11,535       11,301       (33,507 )     52,348       (549 )     (8,976 )     (983 )     (979 )     35       1,148  

Other current liabilities

    43,510       3,160       (7,843 )     30,580       16,734       7,576       (13,804 )     (5,311 )     1,114       819       (287 )
   


 


 


 


 


 


 


 


 


 


 


Net cash provided from (used for) operating activities of continuing operations

    3,066,361       (79,639 )     (39,082 )     1,118,094       1,212,813       191,191       183,481       60,159       14,794       (856 )     (1,600 )
   


 


 


 


 


 


 


 


 


 


 


Investing Activities:

                                                                                       

Gross property additions

    (2,001,878 )     939       —         (648,560 )     (742,810 )     (99,284 )     (69,345 )     (40,242 )     (11,782 )     (8,888 )     (3,269 )

Investment in unconsolidated subsidiaries

    (72,338 )     (1,111,394 )     1,113,015       —         —         —         —         —         —         (1,621 )     —    

Cost of removal net of salvage

    (80,381 )     —         —         (35,440 )     (28,265 )     (7,881 )     (5,811 )     (613 )     (2,327 )     —         —    

Other

    (39,157 )     (748,238 )     57,760       (13,763 )     (16,262 )     (4,440 )     (2,080 )     1,508       (1 )     (953 )     799  
   


 


 


 


 


 


 


 


 


 


 


Net cash provided from (used for) investing activities of continuing operations

    (2,193,754 )     (1,858,693 )     1,170,775       (697,763 )     (787,337 )     (111,605 )     (77,236 )     (39,347 )     (14,110 )     (11,462 )     (2,470 )
   


 


 


 


 


 


 


 


 


 


 


Financing Activities:

                                                                                       

Increase (decrease) in notes payable, net

    (365,958 )     336,603       (175,906 )     (36,991 )     (220,400 )     9,187       —         (2,897 )     (47,814 )     —         —    

Proceeds—

                                                                                       

Long-term debt

    3,494,886       —         —         1,415,000       1,000,000       286,625       90,000       73,870       50,000       891       —    

Mandatorily redeemable preferred securities

    —         —         —         —         —         —         —         —         —         —         —    

Preferred stock

    125,000       —         —         125,000       —         —         —         —         —         —         —    

Common Stock

    470,480       (50,000 )     470,480       50,000       —         —         —         —         —         —         —    

Capital contributions from parent company

    —         (94,142 )     —         17,826       40,809       13,315       4,912       6,757       20       —         4,758  

Redemptions—

                                                                                       

Long-term debt

    (3,009,732 )     430,339       (430,339 )     (1,507,943 )     (665,000 )     (233,382 )     (120,828 )     (39,411 )     —         (3,031 )     —    

Mandatorily redeemable preferred securities

    (479,514 )     —         —         —         —         (85,000 )     —         —         —         —         —    

Preferred stock

    —         —         —         —         —         —         —         —         —         —         —    

Common Stock Repurchased

    —         —         —         —         —         —         —         —         —         —         —    

Capital distributions to parent company

    —         77,000       —         —         —         —         —         —         —         —         —    

Payment of preferred stock dividends

    —         21,107       —         (18,181 )     (696 )     (217 )     (2,013 )     —         —         —         —    

Payment of common stock dividends

    (1,004,445 )     1,217,425       (1,004,445 )     (430,200 )     (565,800 )     (70,200 )     (66,000 )     (23,000 )     (2,225 )     —         —    

Other

    (64,813 )     —         —         (14,775 )     (22,563 )     (10,644 )     (5,891 )     (2,166 )     (526 )     —         —    
   


 


 


 


 


 


 


 


 


 


 


Net cash provided from (used for) financing activities of continuing operations

    (834,096 )     1,938,332       (1,140,210 )     (400,264 )     (433,650 )     (90,316 )     (99,820 )     13,153       (545 )     (2,140 )     4,758  
   


 


 


 


 


 


 


 


 


 


 


Net Change in Cash and Cash Equivalents

    38,511       —         (8,517 )     20,067       (8,174 )     (10,730 )     6,425       33,965       139       (14,458 )     688  

Cash and Cash Equivalents at Beginning of Period

    272,762       —         8,795       22,685       16,873       13,278       62,695       3,978       559       19,337       858  
   


 


 


 


 


 


 


 


 


 


 


Cash and Cash Equivalents at End of Period

  $ 311,273     $ —       $ 278     $ 42,752     $ 8,699     $ 2,548     $ 69,120     $ 37,943     $ 698     $ 4,879     $ 1,546  
   


 


 


 


 


 


 


 


 


 


 


Supplemental Cash Flow Information:

                                                                                       

Cash paid during the period for—

                                                                                       

Interest (net of amount capitalized)

  $ 602,583     $ (92,324 )   $ 96,141     $ 185,272     $ 215,463     $ 37,468     $ 17,334     $ 11,334     $ —       $ 4,592     $ —    

Income taxes

    188,539       —         (80,946 )     161,004       145,048       23,777       60,618       8,439       546       (246 )     2,831  
   


 


 


 


 


 


 


 


 


 


 


(Continued on following page)

 

A-3


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

(Continued)

 

   

Southern

Funding


   

Southern

Power


   

Southern

Holdings


   

Southern

Mgt Dev


   

Southern

LINC


    Powercall

   

Southern

Telecom


   

Southern

Gas


   

Deferred

Cash

Trust


   

Deferred

Stock

Trust


   

Change in

Control

Trust


 

Operating Activities:

                                                                                       

Consolidated net income

  $ —       $ 155,149     $ 81,114     $ 4,647     $ 15,497     $ (35 )   $ 9,938     $ (15,943 )   $ 19     $ 274     $ 709  

Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities—

                                                                                       

Depreciation and amortization

    —         43,712       16,928       228       31,113       —         1,657       5,770       —         —         —    

Deferred income taxes and investment tax credits

    —         22,521       82,485       —         1,575       —         2,972       —         —         —         —    

Plant Daniel capacity

    —         —         —         —         —         —         —         —         —         —         —    

Deferred capacity revenues

    —         9,997       —         —         —         —         —         —         —         —         —    

Equity in losses of unconsolidated subsidiaries

    —         —         93,282       (1,846 )     (12 )     —         —         —         —         —         —    

Leveraged lease income

    —         —         (65,778 )     —         —         —         —         —         —         —         —    

Pension, postretirement, and other employee benefits

    —         —         149       (4 )     2,222       —         70       —         —         —         —    

Tax benefit of stock options

    —         130       61       16       1,202       —         —         19       —         —         —    

Settlement of interest rate hedges

    —         (93,298 )     —         —         —         —         —         —         —         —         —    

Other, net

    —         (25,787 )     20,207       (5,306 )     892       —         451       (3,104 )     (19 )     —         (414 )

Changes in certain current assets and liabilities—

                                                                                       

Receivables, net

    —         (7,008 )     (29,341 )     4,380       2,040       24       3,337       12,812       —         —         (254 )

Fossil fuel stock

    —         5,232       —         —         —         —         —         4,753       —         —         —    

Materials and supplies

    —         (1,570 )     7,152       147       (2,890 )     —         —         —         —         —         —    

Other current assets

    —         (9,675 )     14,309       196       410       —         (2,320 )     (2,024 )     —         —         —    

Accounts payable

    —         32,694       (11,207 )     (38 )     (5,083 )     (373 )     (800 )     232       —         —         —    

Accrued taxes

    —         (6,939 )     (4,536 )     1,127       (1,553 )     32       18       (510 )     —         —         —    

Other current liabilities

    —         9,535       (1,975 )     (192 )     551       —         2,896       (43 )     —         —         —    
   


 


 


 


 


 


 


 


 


 


 


Net cash provided from (used for) operating activities of continuing operations

    —         134,693       202,850       3,355       45,964       (352 )     18,219       1,962       —         274       41  
   


 


 


 


 


 


 


 


 


 


 


Investing Activities:

                                                                                       

Gross property additions

    —         (344,362 )     (10,177 )     (211 )     (22,625 )     —         (477 )     (785 )     —         —         —    

Investment in unconsolidated subsidiaries

    —         —         (72,774 )     436       —         —         —         —         —         —         —    

Cost of removal net of salvage

    —         —         —         —         (44 )     —         —         —         —         —         —    

Other

    279,152       (16,931 )     416,857       1,343       5,791       —         37       1,529       —         (1,265 )     —    
   


 


 


 


 


 


 


 


 


 


 


Net cash provided from (used for) investing activities of continuing operations

    279,152       (361,293 )     333,906       1,568       (16,878 )     —         (440 )     744       —         (1,265 )     —    
   


 


 


 


 


 


 


 


 


 


 


Financing Activities:

                                                                                       

Increase (decrease) in notes payable, net

    (279,152 )     93,859       (3,597 )     850       (30,870 )     —         (7,780 )     (1,050 )     —         —         —    

Proceeds—

                                                                                       

Long-term debt

    —         575,000       3,500       —         —         —         —         —         —         —         —    

Mandatorily redeemable preferred securities

    —         —         —         —         —         —         —         —         —         —         —    

Preferred stock

    —         —         —         —         —         —         —         —         —         —         —    

Common Stock

    —         —         —         —         —         —         —         —         —         —         —    

Capital contributions from parent company

    —         5,953       3,379       (5,005 )     87       —         303       —         —         1,028       —    

Redemptions—

                                                                                       

Long-term debt

    —         (379,640 )     (60,469 )     —         (28 )     —         —         —         —         —         —    

Mandatorily redeemable preferred securities

    —         —         (394,514 )     —         —         —         —         —         —         —         —    

Preferred stock

    —         —         —         —         —         —         —         —         —         —         —    

Common Stock Repurchased

    —         —         —         —         —         —         —         —         —         —         —    

Capital distributions to parent company

    —         (77,000 )     —         —         —         —         —         —         —         —         —    

Payment of preferred stock dividends

    —         —         —         —         —         —         —         —         —         —         —    

Payment of common stock dividends

    —         —         (60,000 )     —         —         —         —         —         —         —         —    

Other

    —         (8,248 )     —         —         —         —         —         —         —         —         —    
   


 


 


 


 


 


 


 


 


 


 


Net cash provided from (used for) financing activities of continuing operations

    (279,152 )     209,924       (511,701 )     (4,155 )     (30,811 )     —         (7,477 )     (1,050 )     —         1,028       —    
   


 


 


 


 


 


 


 


 


 


 


Net Change in Cash and Cash Equivalents

    —         (16,676 )     25,055       768       (1,725 )     (352 )     10,302       1,656       —         37       41  

Cash and Cash Equivalents at Beginning of Period

    10       19,474       90,363       345       8,564       2,165       1,150       1,432       —         196       5  
   


 


 


 


 


 


 


 


 


 


 


Cash and Cash Equivalents at End of Period

  $ 10     $ 2,798     $ 115,418     $ 1,113     $ 6,839     $ 1,813     $ 11,452     $ 3,088     $  —       $ 233     $ 46  
   


 


 


 


 


 


 


 


 


 


 


Supplemental Cash Flow Information:

                                                                                       

Cash paid during the period for—

                                                                                       

Interest (net of amount capitalized)

  $ —       $ 105,765     $ 18,832     $ —       $ 934     $ —       $ 305     $ 1,467     $  —       $ —       $ —    

Income taxes

    —         77,993       (225,604 )     2,791       8,953       —         3,335       —         —         —         —    

 

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-4


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING BALANCE SHEET—DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

    Consolidated

   

Intercompany

Eliminations

and Transfers

Add (Deduct)


    Southern

  Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

    SEGCO

  SCS

 

Southern

Nuclear


ASSETS

                                                                               

Current Assets:

                                                                               

Cash and cash equivalents

  $ 311,273     $ —       $ 278   $ 42,752     $ 8,699     $ 2,548     $ 69,120     $ 37,943     $ 698   $ 4,879   $ 1,546

Receivables—

                                                                               

Customer accounts receivable

    695,043       —         —       240,562       261,771       44,001       30,514       19,674       —       —       —  

Unbilled revenues

    275,394       —         —       95,953       117,327       31,548       19,278       11,288       —       —       —  

Under recovered regulatory clause revenues

    187,866       —         —       —         151,447       21,812       14,607       —         —       —       —  

Other accounts and notes receivable

    338,559       —         19,004     53,547       101,783       6,179       8,088       1,138       5     109,823     1,316

Affiliated companies

    187       (834,341 )     125,261     48,876       52,413       9,826       12,160       4,872       37,702     242,845     59,158

Accumulated provision for uncollectible accounts

    (30,155 )     —         —       (4,756 )     (5,350 )     (947 )     (897 )     (641 )     —       —       —  

Fossil fuel stock, at average cost

    316,126       —         —       86,993       137,537       35,354       25,233       8,652       —       —       —  

Vacation pay

    96,700       —         —       35,530       50,150       5,254       5,766       —         —       —       —  

Materials and supplies, at average cost

    570,786       —         —       211,690       271,040       35,930       23,670       9,070       668     1,192     —  

Prepaid expenses

    125,477       (91,753 )     14,049     44,608       46,157       6,314       31,932       25,796       343     11,881     10,071

Other

    30,193       —         —       19,454       83       4,981       2,857       623       —       4     —  
   


 


 

 


 


 


 


 


 

 

 

Total current assets

    2,917,449       (926,094 )     158,592     875,209       1,193,057       202,800       242,328       118,415       39,416     370,624     72,091
   


 


 

 


 


 


 


 


 

 

 

Property, Plant, and Equipment:

                                                                               

In service

    40,339,783       —         —       14,224,117       18,171,862       2,306,959       1,841,668       912,504       377,064     248,281     8,281

Less accumulated depreciation

    14,303,515       —         —       4,905,920       6,898,725       847,519       672,730       402,394       219,847     130,780     5,305
   


 


 

 


 


 


 


 


 

 

 

      26,036,268       —         —       9,318,197       11,273,137       1,459,440       1,168,938       510,110       157,217     117,501     2,976

Nuclear fuel, at amortized cost

    222,667       —         —       93,611       129,056       —         —         —         —       —       —  

Construction work in progress

    1,274,889       —         —       321,316       341,783       49,438       25,844       14,121       7,303     241     696
   


 


 

 


 


 


 


 


 

 

 

Total property, plant, and equipment

    27,533,824       —         —       9,733,124       11,743,976       1,508,878       1,194,782       524,231       164,520     117,742     3,672
   


 


 

 


 


 


 


 


 

 

 

Other Property and Investments:

                                                                               

Nuclear decommissioning trusts, at fair value

    807,893       —         —       384,574       423,319       —         —         —         —       —       —  

Leveraged leases

    837,843       —         —       —         —         —         —         —         —       —       —  

Equity investments in unconsolidated subsidiaries

    75,808       (10,996,100 )     10,885,503     47,811       38,714       1,393       1,659       1,888       —       8,392     1,643

Other

    162,385       (978,173 )     15,522     16,992       37,142       11,204       1,091       360       7     69     —  
   


 


 

 


 


 


 


 


 

 

 

Total other property and investments

    1,883,929       (11,974,273 )     10,901,025     449,377       499,175       12,597       2,750       2,248       7     8,461     1,643
   


 


 

 


 


 


 


 


 

 

 

Deferred Charges and Other Assets:

                                                                               

Deferred charges related to income taxes

    874,443       —         —       321,077       509,887       18,263       12,125       9,611       3,480     —       —  

Prepaid pension costs

    911,442       (53,461 )     —       446,256       405,164       42,014       18,167       —         —       53,302     —  

Unamortized debt issuance expense

    151,560       —         1,994     23,457       75,245       6,877       6,993       5,652       647     191     —  

Unamortized loss on reacquired debt

    326,389       —         —       110,946       177,707       19,389       10,201       7,488       658     —       —  

Other

    446,147       (337,240 )     31,160     111,178       177,817       28,235       31,038       42,276       1,464     63,398     187,410
   


 


 

 


 


 


 


 


 

 

 

Total deferred charges and other assets

    2,709,981       (390,701 )     33,154     1,012,914       1,345,820       114,778       78,524       65,027       6,249     116,891     187,410
   


 


 

 


 


 


 


 


 

 

 

Total Assets

  $ 35,045,183     $ (13,291,068 )   $ 11,092,771   $ 12,070,624     $ 14,782,028     $ 1,839,053     $ 1,518,384     $ 709,921     $ 210,192   $ 613,718   $ 264,816
   


 


 

 


 


 


 


 


 

 

 

 

(Continued on following page)

 

 

A-5


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING BALANCE SHEET—DECEMBER 31, 2003

(Stated in Thousands of Dollars)

(Continued)

 

     Southern
Funding


   Southern
Power


    Southern
Holdings


    Southern
Mgt Dev


    Southern
LINC


    Powercall

   Southern
Telecom


    Southern
Gas


   

Deferred

Cash
Trust


  

Deferred

Stock

Trust


  

Change in

Control

Trust


ASSETS

                                                                                  

Current Assets:

                                                                                  

Cash and cash equivalents

   $ 10    $ 2,798     $ 115,418     $ 1,113     $ 6,839     $ 1,813    $ 11,452     $ 3,088     $ —      $ 233    $ 46

Receivables—  

                                                                                  

Customer accounts receivable

     —        10,772       14,218       316       18,978       —        834       53,403       —        —        —  

Unbilled revenues

     —        —         —         —         —         —        —         —         —        —        —  

Under recovered regulatory clause revenues

     —        —         —         —         —         —        —         —         —        —        —  

Other accounts and notes receivable

     —        270       35,495       —         11       —        10       1,467       —        —        423

Affiliated companies

     194,922      14,130       26,662       273       1,761       —        67       3,600       —        —        —  

Accumulated provision for uncollectible accounts

     —        (350 )     (228 )     (140 )     (2,176 )     —        (151 )     (14,519 )     —        —        —  

Fossil fuel stock, at average cost

     —        5,798       —         —         —         —        —         16,559       —        —        —  

Vacation pay

     —        —         —         —         —         —        —         —         —        —        —  

Materials and supplies, at average cost

     —        8,123       1,827       1,352       6,224       —        —         —         —        —        —  

Prepaid expenses

     —        13,750       (1,494 )     27       7,667       —        4,081       2,048       —        —        —  

Other

     —        1,174       —         —         (67 )     —        278       806       —        —        —  
    

  


 


 


 


 

  


 


 

  

  

Total current assets

     194,932      56,465       191,898       2,941       39,237       1,813      16,571       66,452       —        233      469
    

  


 


 


 


 

  


 


 

  

  

Property, Plant, and Equipment:

                                                                                  

In service

     —        1,831,139       17,020       281       359,372       —        32,979       8,256       —        —        —  

Less accumulated depreciation

     —        60,005       6,955       148       146,894       —        4,141       2,152       —        —        —  
    

  


 


 


 


 

  


 


 

  

  

       —        1,771,134       10,065       133       212,478       —        28,838       6,104       —        —        —  

Nuclear fuel, at amortized cost

     —        —         —         —         —         —        —         —         —        —        —  

Construction work in progress

     —        504,097       5,186       —         4,843       —        21       —         —        —        —  
    

  


 


 


 


 

  


 


 

  

  

Total property, plant, and equipment

     —        2,275,231       15,251       133       217,321       —        28,859       6,104       —        —        —  
    

  


 


 


 


 

  


 


 

  

  

Other Property and Investments:

                                                                                  

Nuclear decommissioning trusts, at fair value

     —        —         —         —         —         —        —         —         —        —        —  

Leveraged leases

     —        —         837,843       —         —         —        —         —         —        —        —  

Equity investments in unconsolidated subsidiaries

     —        —         65,710       19,110       85       —        —         —         —        —        —  

Other

     —        —         1,002,700       1,409       —         —        141       24,243       958      5,380      23,340
    

  


 


 


 


 

  


 


 

  

  

Total other property and investments

     —        —         1,906,253       20,519       85       —        141       24,243       958      5,380      23,340
    

  


 


 


 


 

  


 


 

  

  

Deferred Charges and Other Assets:

                                                                                  

Deferred charges related to income taxes

     —        —         —         —         —         —        —         —         —        —        —  

Prepaid pension costs

     —        —         —         —         —         —        —         —         —        —        —  

Unamortized debt issuance expense

     —        18,315       12,189       —         —         —        —         —         —        —        —  

Unamortized loss on reacquired debt

     —        —         —         —         —         —        —         —         —        —        —  

Other

     —        59,274       32,607       1,089       457       336      15,648       —         —        —        —  
    

  


 


 


 


 

  


 


 

  

  

Total deferred charges and other assets

     —        77,589       44,796       1,089       457       336      15,648       —         —        —        —  
    

  


 


 


 


 

  


 


 

  

  

Total Assets

   $ 194,932    $ 2,409,285     $ 2,158,198     $ 24,682     $ 257,100     $ 2,149    $ 61,219     $ 96,799     $ 958    $ 5,613    $ 23,809
    

  


 


 


 


 

  


 


 

  

  

 

(Continued on following page)

 

A-6


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING BALANCE SHEET—DECEMBER 31, 2003

(Stated in Thousands of Dollars)

(Continued)

 

    Consolidated

  Intercompany
Eliminations
and Transfers
Add (Deduct)


    Southern

  Alabama

  Georgia

  Gulf

  Mississippi

  Savannah

  SEGCO

    SCS

    Southern
Nuclear


LIABILITIES AND STOCKHOLDERS’ EQUITY

                                                                       

Current Liabilities:

                                                                       

Securities due within one year

  $ 741,073   $ —       $ —     $ 526,019   $ 2,304   $ 50,000   $ 80,000   $ 40,910   $ —       $ 8,031     $ —  

Notes payable

    567,770     (318,128 )     258,597     —       137,277     37,666     —       —       19,882       —         —  

Accounts payable—  

          —                                                              

Affiliated

    3,566     (491,642 )     7,731     135,017     121,928     26,945     21,259     13,797     12,481       61,987       6,424

Other

    695,958     —         4,958     162,314     238,069     21,952     55,309     13,147     —         163,186       8,515

Customer deposits

    189,001     —         —       47,507     103,756     18,271     11,863     6,922     —         —         —  

Accrued taxes—  

          —                                                              

Income taxes

    153,757     (91,754 )     8,293     83,544     107,532     6,405     1,696     1,172     (652 )     720       1,055

Other

    248,935     —         —       22,273     166,892     8,621     42,834     1,473     309       (63 )     1,890

Accrued interest

    186,935     (21,888 )     21,303     46,489     70,844     8,077     3,223     2,802     1,203       136       —  

Accrued vacation pay

    128,505     —         —       35,530     38,206     5,254     5,766     2,530     —         20,158       19,604

Accrued compensation

    436,855     —         —       75,620     134,004     13,456     23,832     5,652     —         115,480       59,043

Other

    264,689     (36 )     18,793     34,513     105,234     9,694     35,985     5,107     144       26,261       370
   

 


 

 

 

 

 

 

 


 


 

Total current liabilities

    3,617,044     (923,448 )     319,675     1,168,826     1,226,046     206,341     281,767     93,512     33,367       395,896       96,901
   

 


 

 

 

 

 

 

 


 


 

Long-term debt (See accompanying statements)

    10,164,019     (974,045 )     998,275     3,377,148     3,762,333     515,827     202,488     222,493     74,304       51,041       —  
   

 


 

 

 

 

 

 

 


 


 

Mandatorily redeemable preferred securities (See accompanying statements)

    1,900,486     —         —       300,000     940,000     70,000     35,000     —       —         —         —  
   

 


 

 

 

 

 

 

 


 


 

Deferred Credits and Other Liabilities:

                                                                       

Accumulated deferred income taxes

    4,586,377     (129,945 )     3,208     1,571,076     2,303,085     175,685     142,088     83,852     22,840       —         —  

Deferred credits related to income taxes

    409,340     —         —       162,168     186,625     26,545     23,279     9,804     919       —         —  

Accumulated deferred investment tax credits

    579,490     —         —       216,309     312,506     20,451     19,841     8,625     1,758       —         —  

Employee benefit obligations

    764,624     (200,392 )     7,852     180,960     295,788     52,395     54,830     39,833     —         181,594       143,300

Asset retirement obligations

    845,392     —         —       358,759     475,585     4,271     2,502     4,220     55       —         —  

Other cost of removal obligations

    1,268,729     —         —       574,445     412,161     151,229     80,588     36,843     13,463       —         —  

Deferred capacity revenues

    90,321     (20,456 )     —       36,567     —       186     —       —       —         —         —  

Miscelleanous regulatory liabilities

    576,390     —         —       213,669     249,687     27,903     72,199     12,932     —         —         —  

Other

    172,259     (46,354 )     2,905     37,525     63,432     22,626     39,504     11,515     —         4,112       19
   

 


 

 

 

 

 

 

 


 


 

Total deferred credits and other liabilities

    9,292,922     (397,147 )     13,965     3,351,478     4,298,869     481,291     434,831     207,624     39,035       185,706       143,319
   

 


 

 

 

 

 

 

 


 


 

Total Liabilities

    24,974,471     (2,294,640 )     1,331,915     8,197,452     10,227,248     1,273,459     954,086     523,629     146,706       632,643       240,220
   

 


 

 

 

 

 

 

 


 


 

Cumulative preferred stock of subsidiaries (See accompanying statements)

    423,126     —         —       372,512     14,569     4,236     31,809     —       —         —         —  
   

 


 

 

 

 

 

 

 


 


 

Common stockholders’ equity (See accompanying statements)

    9,647,586     (10,996,428 )     9,760,856     3,500,660     4,540,211     561,358     532,489     186,292     63,486       (18,925 )     24,596
   

 


 

 

 

 

 

 

 


 


 

Total Liabilities and Stockholders’ Equity

  $ 35,045,183   $ (13,291,068 )   $ 11,092,771   $ 12,070,624   $ 14,782,028   $ 1,839,053   $ 1,518,384   $ 709,921   $ 210,192     $ 613,718     $ 264,816
   

 


 

 

 

 

 

 

 


 


 

(Continued on following page)

 

A-7


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING BALANCE SHEET—DECEMBER 31, 2003

(Stated in Thousands of Dollars)

(Continued)

 

    Southern
Funding


  Southern
Power


  Southern
Holdings


  Southern
Mgt Dev


  Southern
LINC


  Powercall

  Southern
Telecom


  Southern
Gas


  Deferred
Cash
Trust


  Deferred
Stock
Trust


  Change in
Control
Trust


LIABILITIES AND STOCKHOLDERS’ EQUITY

                                                                 

Current Liabilities:

                                                                 

Securities due within one year

  $ —     $ 200   $ 31,179   $ —     $ 2,430   $ —     $ —     $ —     $ —     $ —     $ —  

Notes payable

    194,826     114,347     3,250     850     65,203     —       —       54,000     —       —       —  

Accounts payable —

                                                                 

Affiliated

    —       51,442     13,680     2,204     2,027     28     330     17,928     —       —       —  

Other

    —       6,591     7,178     734     6,170     483     742     6,610     —       —       —  

Customer deposits

    —       —       —       —       682     —       —       —       —       —       —  

Accrued taxes —  

                                                                 

Income taxes

    —       —       34,240     1,140     239     109     18     —       —       —       —  

Other

    —       1,289     —       4     1,745     —       —       1,668     —       —       —  

Accrued interest

    96     30,012     22,532     56     1,854     —       —       196     —       —       —  

Accrued vacation pay

    —       —       —       —       1,383     —       74     —       —       —       —  

Accrued compensation

    —       —       2,100     51     6,520     —       922     175     —       —       —  

Other

    —       489     14,549     —       7,772     —       5,112     702     —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Total current liabilities

    194,922     204,370     128,708     5,039     96,025     620     7,198     81,279     —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Long-term debt (See accompanying statements)

    —       1,149,112     781,732     —       3,311     —       —       —       —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Mandatorily redeemable preferred securities (See accompanying statements)

    —       —       555,486     —       —       —       —       —       —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

                                                                 

Accumulated deferred income taxes

    —       —       384,766     —       29,632     90     —       —       —       —       —  

Deferred credits related to income taxes

    —       —       —       —       —       —       —       —       —       —       —  

Accumulated deferred investment tax credits

    —       —       —       —       —       —       —       —       —       —       —  

Employee benefit obligations

    —       —       1,721     —       6,555     —       188     —       —       —       —  

Asset retirement obligations

    —       —       —       —       —       —       —       —       —       —       —  

Other cost of removal obligations

    —       —       —       —       —       —       —       —       —       —       —  

Deferred capacity revenues

    —       20,712     —       —       15,070     —       38,242     —       —       —       —  

Miscelleanous regulatory liabilities

    —       —       —       —       —       —       —       —       —       —       —  

Other

    —       23,615     13,026     2     332     —       —       —       —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Total deferred credits and other liabilities

    —       44,327     399,513     2     51,589     90     38,430     —       —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Total Liabilities

    194,922     1,397,809     1,865,439     5,041     150,925     710     45,628     81,279     —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Cumulative preferred stock of subsidiaries (See accompanying statements)

    —       —       —       —       —       —       —       —       —       —       —  
   

 

 

 

 

 

 

 

 

 

 

Common stockholders’ equity (See accompanying statements)

    10     1,011,476     292,759     19,641     106,175     1,439     15,591     15,520     958     5,613     23,809
   

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

  $ 194,932   $ 2,409,285   $ 2,158,198   $ 24,682   $ 257,100   $ 2,149   $ 61,219   $ 96,799   $ 958   $ 5,613   $ 23,809
   

 

 

 

 

 

 

 

 

 

 

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-8


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

 

CONSOLIDATING STATEMENT OF CAPITALIZATION—DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

 

        Consolidated

   

Intercompany

Eliminations

and Transfers

Add (Deduct)


    Southern

  Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

  SEGCO

    SCS

 

Southern

Nuclear


Long-Term Debt of Subsidiaries:

                                                                               

First mortgage bonds —

                                                                               

Maturity

  Interest Rates                                                                                

2006

  6.50% to 6.90%     45,000       —         —       —         —         25,000       —         20,000     —         —       —  

2025 through 2026

  6.50% to 6.88%     60,000       —         —       —         —         30,000       30,000       —       —         —       —  
       


 


 

 


 


 


 


 

 


 

 

Total first mortgage bonds

    105,000       —         —       —         —         55,000       30,000       20,000     —         —       —  
       


 


 

 


 


 


 


 

 


 

 

Long-term senior notes and debt —  

                                                                               

Maturity

  Interest Rates                                                                                

2004

  4.88% to 7.25%     580,176       —         —       525,000       —         50,000       —         —       —         1,512     —  

2005

  5.49% to 9.85%     378,683       —         —       225,000       150,000       —         —         —       —               —  

2006

  1.60% to 6.20%     678,961       —         —       520,000       150,000       —         —         —       —         —       —  

2007

  4.88% to 7.13%     904,919       —         —       200,000       300,000       —         —         —       —         —       —  

2008

  3.13% to 6.55%     457,870       —         —       410,000                       —         45,000     —               —  

2009 through 2039

  4.35% to 8.12%     4,285,666       —         —       1,275,000       1,100,000       300,000       90,000       115,000     50,000       40,000     —  

Adjustable rates:

                                                                                   

2004

  1.27% to 2.44%     88,977       —         —       —         —         —         80,000       —       —         —       —  

2005

  1.25% to 2.44%     491,590       —         —       —         300,000       —         —         20,000     —         —       —  

2006

  1.37%     195,000       —         —       195,000       —         —         —         —       —         —       —  

2007

  2.57% to 4.13%     71,724       —         24,230     —         —         —         —         —       —         787     —  

Long-term notes payable to affiliates

    —         (974,045 )     974,045     —         —         —         —         —       —         —       —  
       


 


 

 


 


 


 


 

 


 

 

Total long-term senior notes and debt

    8,133,566       (974,045 )     998,275     3,350,000       2,000,000       350,000       170,000       180,000     50,000       42,299     —  
       


 


 

 


 


 


 


 

 


 

 

Other long-term debt —  

                                                                               

Pollution control revenue bonds —  

                                                                               

Maturity

  Interest Rates                                                                                

Collateralized:

                                                                                   

2006

  5.25%     12,075       —         —       —         —         12,075       —         —       —         —       —  

2024

  5.50%     24,400       —         —       24,400       —         —         —         —       —         —       —  

Variable rates (at 1/1/04):

  1.27% to 1.33%     89,800       —         —       89,800       —         —         —         —       —         —       —  

2015 through 2017

                                                                                   

Non-collateralized:

  1.20% to 5.45%     850,060       —         —       —         812,560       13,000       —         —       24,500       —       —  

2012 through 2034

                                                                                   

Variable rates (at 1/1/04)

                                                                                   

2011 through 2038

  1.05% to 1.45%     1,564,475       —         —       445,940       873,330       144,555       82,695       17,955     —         —       —  
       


 


 

 


 


 


 


 

 


 

 

Total other long-term debt

    2,540,810       —         —       560,140       1,685,890       169,630       82,695       17,955     24,500       —       —  
       


 


 

 


 


 


 


 

 


 

 

Capitalized lease obligations

    106,504       —         —       1,497       79,286       —         —         5,448     —         16,773     —  
       


 


 

 


 


 


 


 

 


 

 

Unamortized debt (discount), net

    (20,788 )     —         —       (8,470 )     (539 )     (8,803 )     (207 )     —       (196 )     —       —  
       


 


 

 


 


 


 


 

 


 

 

Total long-term debt (annual interest requirement—$485 million)

    10,865,092       (974,045 )     998,275     3,903,167       3,764,637       565,827       282,488       223,403     74,304       59,072     —  

Less amount due within one year

    701,073       —         —       526,019       2,304       50,000       80,000       910     —         8,031     —  
 


 


 

 


 


 


 


 

 


 

 

Long-term debt excluding amount due within one year

  $ 10,164,019     $ (974,045 )   $ 998,275   $ 3,377,148     $ 3,762,333     $ 515,827     $ 202,488     $ 222,493   $ 74,304     $ 51,041   $ —  
       


 


 

 


 


 


 


 

 


 

 

 

(Continued on following page)

 

A-9


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF CAPITALIZATION — DECEMBER 31, 2003

(Stated in Thousands of Dollars)

(Continued)

 

                                                  Deferred    Deferred    Change in
         Southern    Southern     Southern    Southern    Southern         Southern    Southern    Cash    Stock    Control
         Funding

   Power

    Holdings

   Mgt Dev

   LINC

   Powercall

   Telecom

   Gas

   Trust

   Trust

   Trust

Long-Term Debt of Subsidiaries:

                                                                               

First mortgage bonds —  

                                                                               

Maturity

   Interest Rates                                                                           

2006

   6.50% to 6.90%     —      —         —        —        —        —        —        —        —        —        —  

2025 through 2026

   6.50% to 6.88%     —      —         —        —        —        —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Total first mortgage bonds

         —      —         —        —        —        —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Long-term senior notes and debt —  

                                                                               

Maturity

   Interest Rates                                                                           

2004

   4.88% to 7.25%     —      —         3,664      —        —        —        —        —        —        —        —  

2005

   5.49% to 9.85%     —      —         3,683      —        —        —        —        —        —        —        —  

2006

   1.60% to 6.20%     —      —         3,535      —        5,426      —        —        —        —        —        —  

2007

   4.88% to 7.13%     —      1,885       403,034      —        —        —        —        —        —        —        —  

2008

   3.13% to 6.55%     —              2,870      —               —        —        —        —        —        —  

2009 through 2039

   4.35% to 8.12%     —      1,150,000       165,351      —        315      —        —        —        —        —        —  

Adjustable rates:

                                                                               

2004

   1.27% to 2.44%     —      —         8,977      —        —        —        —        —        —        —        —  

2005

   1.25% to 2.44%     —      —         171,590      —        —        —        —        —        —        —        —  

2006

   1.37%                         —        —        —        —        —        —        —        —  

2007

   2.57% to 4.13%     —      —         46,707      —        —        —        —        —        —        —        —  

Long-term notes payable to affiliates

         —      —         —        —        —        —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Total long-term notes payable

         —      1,151,885       809,411      —        5,741      —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Other long-term debt —  

                                                                               

Pollution control revenue bonds —  

                                                                               

Maturity

   Interest Rates                                                                           

Collateralized:

                                                                               

2006

   5.25%     —      —         —        —        —        —        —        —        —        —        —  

2024

   5.50%     —      —         —        —        —        —        —        —        —        —        —  

Variable rates (at 1/1/04):

                                                                               

due 2015-2017

   1.27% to 1.33%     —      —         —        —        —        —        —        —        —        —        —  

Non-collateralized

                                                                               

2012 through 2034

   1.20% to 5.45%     —      —         —        —        —        —        —        —        —        —        —  

Variable rates (at 1/1/04)

   1.05% to 1.45%     —                                                                       

due 2011-2038

         —      —         —        —        —        —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Total other long-term debt

         —      —         —        —        —        —        —        —        —               —  
        

  

 

  

  

  

  

  

  

  

  

Capitalized lease obligations

         —      —         3,500      —        —        —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Unamortized debt (discount), net

         —      (2,537 )     —        —        —        —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Total long-term debt (annual interest

                                                                               

requirement —   $485 million)

         —      1,149,312       812,911      —        5,741      —        —        —        —        —        —  

Less amount due within one year

         —      200       31,179      —        2,430      —        —        —        —        —        —  
        

  

 

  

  

  

  

  

  

  

  

Long-term debt excluding amount due within one year

       $ —      1,149,112     $ 781,732    $ —      $ 3,311    $ —      $    $ —      $    $ —      $ —  
        

  

 

  

  

  

  

  

  

  

  

 

(Continued on following page)

 

A-10


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF CAPITALIZATION — DECEMBER 31, 2003

(Stated in Thousands of Dollars)

(Continued)

 

        Consolidated

    Intercompany
Eliminations
and Transfers
Add (Deduct)


    Southern

    Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

    SEGCO

  SCS

    Southern
Nuclear


 

Mandatorily Redeemable Preferred Securities:

                                                                                     

$25 liquidation value —  

                                                                                     

Maturity

2028 through 2042

 

Interest Rates

6.85% to 7.375%

    944,500       —         —         —         640,000       30,000       35,000       40,000       —       —         —    

$1,000 liquidation value —  

                                                                                         

Maturity

2027 through 2042

 

Interest Rates

4.75% to 8.19%

    995,986       —         —         300,000       300,000       40,000       —         —         —       —         —    
       


 


 


 


 


 


 


 


 

 


 


Total mandatorily redeemable preferred securities (annual distribution requirement-$182 million)

    1,940,486       —         —         300,000       940,000       70,000       35,000       40,000       —       —         —    

Less amount due within one year

    40,000       —         —         —         —         —         —         40,000       —       —         —    
       


 


 


 


 


 


 


 


 

 


 


Mandatorily redeemable preferred securities

    1,900,486       —         —         300,000       940,000       70,000       35,000       —         —       —         —    
       


 


 


 


 


 


 


 


 

 


 


Cumulative Preferred Stock of Subsidiaries:

                                                                                     

$100 par or stated value —  

                                                                                     

4.20% to 7.00%

    98,126       —         —         47,512       14,569       4,236       31,809       —         —       —         —    

$25 par or stated value —  

                                                                                     

5.20% to 5.83%

    200,000       —         —         200,000       —         —         —         —         —       —         —    

$100,000 par or stated value —  

                                                                                     

4.95%

    125,000       —         —         125,000       —         —         —         —         —       —         —    
       


 


 


 


 


 


 


 


 

 


 


Total cumulative preferred stock of subsidiaries

    423,126       —         —         372,512       14,569       4,236       31,809       —         —       —         —    
       


 


 


 


 


 


 


 


 

 


 


Common Stockholders’ Equity:

                                                                                     

Common stock, par value $5 per share —  

                                                                                     

Authorized—1 billion shares

                                                                                     

Issued: 735 million shares

                                                                                     

Treasury: 0.2 million shares

                                                                                     

Par value

    3,675,106       (765,301 )     3,675,106       290,000       344,250       38,060       37,691       54,223       328     725       10  

Paid-in capital

    746,080       (6,307,892 )     744,663       1,927,068       2,208,538       364,864       292,841       24,417       33,520     150       25,633  

Treasury, at cost

    (4,066 )     (4,066 )     —         —                 —         —         —         —       —         —    

Retained earnings

    5,343,471       (3,919,169 )     5,343,533       1,291,559       2,010,297       161,208       203,419       109,856       29,638             —    

Accumulated other comprehensive income (loss)

    (113,005 )     —         (2,446 )     (7,967 )     (22,874 )     (2,774 )     (1,462 )     (2,204 )     —       (19,800 )     (1,047 )
       


 


 


 


 


 


 


 


 

 


 


Total common stockholders’ equity

    9,647,586       (10,996,428 )     9,760,856       3,500,660       4,540,211       561,358       532,489       186,292       63,486     (18,925 )     24,596  
       


 


 


 


 


 


 


 


 

 


 


Total Capitalization

  $ 22,135,217     $ (11,970,473 )   $ 10,759,131     $ 7,550,320     $ 9,257,113     $ 1,151,421     $ 801,786     $ 408,785     $ 137,790   $ 32,116     $ 24,596  
   


 


 


 


 


 


 


 


 

 


 


 

(Continued on following page)

 

A-11


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF CAPITALIZATION—DECEMBER 31, 2003

(Stated in Thousands of Dollars) (Continued)

 

             

Southern

Funding


  

Southern

Power


   

Southern

Holdings


   

Southern

Mgt Dev


   

Southern

LINC


   

Powercall


   

Southern

Telecom


  

Southern

Gas


   

Deferred

Cash

Trust


  

Deferred

Stock

Trust


  

Change in

Control

Trust


Mandatorily Redeemable Preferred Securities:

                                                                                 

$25 liquidation value—

                                                                                 
     Maturity

   Interest Rates

                                                           
     2028 to 2042    6.85% to 7.375%     —        —         199,500       —         —         —         —        —         —        —        —  

$1,000 liquidation value—

                                                                                 
     Maturity

   Interest Rates

                                                           
     2027 to 2042    4.75% to 8.19%     —        —         355,986       —         —         —         —        —         —        —        —  
             

  


 


 


 


 


 

  


 

  

  

Total mandatorily redeemable preferred securities
(annual distribution requirement—$182 million)

    —        —         555,486       —         —         —         —        —         —        —        —  

Less amount due within one year

    —        —         —         —         —         —         —        —         —        —        —  
             

  


 


 


 


 


 

  


 

  

  

Mandatorily redeemable preferred securities

    —        —         555,486       —         —         —         —        —         —        —        —  
             

  


 


 


 


 


 

  


 

  

  

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%

    —        —         —         —         —         —         —        —         —        —        —  

$100,000 par or stated value—

                                                                                 

4.95%

    —        —         —         —         —         —         —        —         —        —        —  
             

  


 


 


 


 


 

  


 

  

  

Total cumulative preferred stock of subsidiaries

    —        —         —         —         —         —         —        —         —        —        —  
             

  


 


 


 


 


 

  


 

  

  

Common Stockholders’ Equity:

                                                                                 

Common stock, par value $5 per share—

                                                                                 

Authorized—1 billion shares

                                                                                 

Issued: 735 million shares

                                                                                 

Treasury: 0.2 million shares

                                                                                 

Par value

    —        —         10       1       1       1       1      —         —        —        —  

Paid-in capital

    10      850,312       289,855       65,510       159,525       15,994       1,952      23,720       854      4,066      20,480

Treasury, at cost

    —        —         —         —         —         —         —        —         —        —        —  

Retained earnings

    —        217,626       2,900       (45,870 )     (53,333 )     (14,556 )     13,638      (11,915 )     96      1,547      2,997

Accumulated other comprehensive income

    —        (56,462 )     (6 )     —         (18 )     —         —        3,715       8      —        332
             

  


 


 


 


 


 

  


 

  

  

Total common stockholders’ equity

    10      1,011,476       292,759       19,641       106,175       1,439       15,591      15,520       958      5,613      23,809
             

  


 


 


 


 


 

  


 

  

  

Total Capitalization

  $ 10    $ 2,160,588     $ 1,629,977     $ 19,641     $ 109,486     $ 1,439     $ 15,591    $ 15,520     $ 958    $ 5,613    $ 23,809
             

  


 


 


 


 


 

  


 

  

  

 

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-12


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF RETAINED EARNINGS

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

 

     Consolidated

   

Intercompany
Eliminations

and Transfers

Add (Deduct)


    Southern

    Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

    SEGCO

    Southern
Power


Balance, December 31, 2002

   $ 4,874,939     $ (3,611,734 )   $ 4,874,939     $ 1,250,594     $ 1,945,520     $ 162,398     $ 195,920     $ 110,049     $ 25,492     $ 62,477

ADD:

                                                                              

Net Income After Preferred Dividends

     1,473,551       (1,526,761 )     1,473,834       472,810       630,577       69,010       73,499       22,807       6,406       155,149

ADD (DEDUCT):

                                                                              

Dividends on Common Stock of Southern Company

     (1,004,225 )     220       (1,004,445 )     —         —         —         —         —         —         —  

Dividends on Common Stock of Subsidiary Companies

     —         1,217,460       —         (430,200 )     (565,800 )     (70,200 )     (66,000 )     (23,000 )     (2,260 )     —  

Other Adjustments to Retained Earnings

     (794 )     1,646       (795 )     (1,645 )     —         —         —         —         —         —  
    


 


 


 


 


 


 


 


 


 

Balance, December 31, 2003

   $ 5,343,471     $ (3,919,169 )   $ 5,343,533     $ 1,291,559     $ 2,010,297     $ 161,208     $ 203,419     $ 109,856     $ 29,638     $ 217,626
    


 


 


 


 


 


 


 


 


 

     Southern
Holdings


    Southern
Mgt Dev


    Southern
LINC


    Powercall

    Southern
Telecom


    Southern
Gas


   

Deferred

Cash
Trust


    Deferred
Stock
Trust


    Change in
Control
Trust


     

Balance, December 31, 2002

   $ (18,214 )   $ (50,517 )   $ (68,830 )   $ (14,521 )   $ 3,700     $ 4,028     $ 77     $ 1,273     $ 2,288        

ADD:

                                                                              

Net Income After Preferred Dividends

     81,114       4,647       15,497       (35 )     9,938       (15,943 )     19       274       709        

ADD (DEDUCT):

                                                                              

Dividends on Common Stock of Southern Company

     —         —         —         —         —         —         —         —         —          

Dividends on Common Stock of Subsidiary Companies

     (60,000 )     —         —         —         —         —         —         —         —          

Other Adjustments to Retained Earnings

     —         —         —         —         —         —         —         —         —          
    


 


 


 


 


 


 


 


 


 

Balance, December 31, 2003

   $ 2,900     $ (45,870 )   $ (53,333 )   $ (14,556 )   $ 13,638     $ (11,915 )   $ 96     $ 1,547     $ 2,997        
    


 


 


 


 


 


 


 


 


     

 

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-13


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENT OF PAID IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

 

    Consolidated

 

Intercompany
Eliminations

and Transfers
Add (Deduct)


    Southern

  Alabama

    Georgia

  Gulf

  Mississippi

  Savannah

  SEGCO

  SCS

 

Southern

Nuclear


Balance, December 31, 2002

  $ 337,670   $ (6,070,659 )   $ 336,765   $ 1,900,563     $ 2,156,080   $ 349,781   $ 285,606   $ 16,776   $ 33,500   $ 150   $ 17,074

ADD (DEDUCT):

                                                                     

Proceeds from issuance of common stock over the par value thereof

    407,055     —         407,055     —         —       —       —       —       —       —       —  

Contributions & adjustments to capital for the twelve month period

    —       (319,438 )     —       26,505       52,458     15,083     7,235     7,641     —       —       8,559

Capital distribution to SOUTHERN for the twelve month period

    —       82,334       —       —         —       —       —       —       —       —       —  

Other

    1,355     (129 )     843     —         —       —       —       —       20     —       —  
   

 


 

 


 

 

 

 

 

 

 

Balance, December 31, 2003

  $ 746,080   $ (6,307,892 )   $ 744,663   $ 1,927,068     $ 2,208,538   $ 364,864   $ 292,841   $ 24,417   $ 33,520   $ 150   $ 25,633
   

 


 

 


 

 

 

 

 

 

 

    Southern
Funding


  Southern
Power


    Southern
Holdings


  Southern
Mgt Dev


    Southern
LINC


  Powercall

  Southern
Telecom


  Southern
Gas


  Deferred
Cash
Trust


 

Deferred

Stock
Trust


  Change In
Control
Trust


Balance, December 31, 2002

  $ 10   $ 731,230     $ 286,414   $ 70,500     $ 158,235   $ 15,994   $ 1,650   $ 23,700   $ 783   $ 3,038   $ 20,480

ADD (DEDUCT):

                                                                     

Proceeds from issuance of common stock over the par value thereof

    —       —         —       —         —       —       —       —       —       —       —  

Contributions & adjustments to capital for the twelve month period

    —       196,082       3,209     339       1,290     —       302     20     —       715     —  

Capital distribution to SOUTHERN for the twelve month period

    —       (77,000 )     —       (5,334 )     —       —       —       —       —       —       —  

Other

    —       —         232     5       —       —       —       —       71     313     —  
   

 


 

 


 

 

 

 

 

 

 

Balance, December 31, 2003

  $ 10   $ 850,312     $ 289,855   $ 65,510     $ 159,525   $ 15,994   $ 1,952   $ 23,720   $ 854   $ 4,066   $ 20,480
   

 


 

 


 

 

 

 

 

 

 

 

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


Table of Contents

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

 

     Consolidated

   

Intercompany

Eliminations
and Transfers

Add (Deduct)


   

All Other

Subsidiaries1


   Southern

    Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

 

Consolidated Net Income

   $ 1,473,551     $ (1,526,761 )   $ 21,230    $ 1,473,834     $ 472,810     $ 630,577     $ 69,010     $ 73,499     $ 22,807  

Other comprehensive income:

                                                                       

Change in additional minimum pension liability, net of tax of $(10,679)

     (17,777 )     —         —        —         (3,785 )     (8,138 )     (134 )     (198 )     (533 )

Change in fair value of marketable securities, net of tax of $0

     (183 )     —         —        —         —         —         —         —         —    

Changes in fair value of qualifying hedges, net of tax of $(2,030)

     (16,076 )     —         —        (9,988 )     2,188       (5,550 )     (2,006 )     —         (450 )

Less: Reclassification adjustment for amounts included in net income, net of tax of $1,185

     2,901       —         —        11,706       7,047       2,217       100       —         23  
    


 


 

  


 


 


 


 


 


Total Other Comprehensive Income

     (31,135 )     —         —        1,718       5,450       (11,471 )     (2,040 )     (198 )     (960 )
    


 


 

  


 


 


 


 


 


Consolidated Comprehensive Income

   $ 1,442,416     $ (1,526,761 )   $ 21,230    $ 1,475,552     $ 478,260     $ 619,106     $ 66,970     $ 73,301     $ 21,847  
    


 


 

  


 


 


 


 


 


 

     SCS

   

Southern

Nuclear


   

Southern

Power


   

Southern

Holdings


   

Southern

LINC


   

Southern

Gas


   

Deferred

Cash

Trust


   

Change In
Control

Trust


 

Consolidated Net Income

   $ —       $ —       $ 155,149     $ 81,114     $ 15,497     $ (15,943 )   $ 19     $ 709  

Other comprehensive income:

                                                                

Change in additional minimum pension liability, net of tax

     (4,811 )     (172 )     —         (2 )     (4 )     —         —         —    

Change in fair value of marketable securities, net of tax

     —         —         —         —         —         —         (7 )     (176 )

Changes in fair value of qualifying hedges, net of tax

     —         —         (12,788 )     —         —         12,518       —         —    

Less: Reclassification adjustment for amounts included in net income, net of tax

     —         —         3,429       —         —         (21,621 )     —         —    
    


 


 


 


 


 


 


 


Total Other Comprehensive Income

     (4,811 )     (172 )     (9,359 )     (2 )     (4 )     (9,103 )     (7 )     (176 )
    


 


 


 


 


 


 


 


Consolidated Comprehensive Income

   $ (4,811 )   $ (172 )   $ 145,790     $ 81,112     $ 15,493     $ (25,046 )   $ 12     $ 533  
    


 


 


 


 


 


 


 


 

THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(Stated in Thousands of Dollars)

 

     Consolidated

   

Intercompany

Eliminations
and Transfers

Add (Deduct)


   Southern

    Alabama

    Georgia

    Gulf

    Mississippi

    Savannah

 

Balance at beginning of period

   $ (81,870 )   $ —      $ (4,164 )   $ (13,417 )   $ (11,403 )   $ (734 )   $ (1,264 )   $ (1,244 )

Change in current period

     (31,135 )     —        1,718       5,450       (11,471 )     (2,040 )     (198 )     (960 )
    


 

  


 


 


 


 


 


Balance at end of period

   $ (113,005 )   $ —        (2,446 )   $ (7,967 )   $ (22,874 )   $ (2,774 )   $ (1,462 )   $ (2,204 )
    


 

  


 


 


 


 


 


 

     SCS

   

Southern

Nuclear


   

Southern

Power


   

Southern

Holdings


   

Southern

LINC


   

Southern

Gas


   

Deferred

Cash

Trust


   

Change In
Control

Trust


 

Balance at beginning of period

   $ (14,989 )   $ (875 )   $ (47,103 )   $ (4 )   $ (14 )   $ 12,818     $ 15     $ 508  

Change in current period

     (4,811 )     (172 )     (9,359 )     (2 )     (4 )     (9,103 )     (7 )     (176 )
    


 


 


 


 


 


 


 


Balance at end of period

   $ (19,800 )   $ (1,047 )     (56,462 )   $ (6 )   $ (18 )   $ 3,715     $ 8     $ 332  
    


 


 


 


 


 


 


 


 

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

 

The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive)

are an integral part of this statement.

 

A-15


Table of Contents

Notes to Financial Statements

at December 31, 2003

 

 

The notes to the financial statements included in SOUTHERN’s Annual Report on Form 10-K for the year ended December 31, 2003 on pages II-36 through II-61 are herein incorporated by reference as part of exhibit numbers A-1 through A-7 inclusive and are an integral part of the financial statements.

 

A-16


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

    

ALABAMA

Consolidated


    Eliminations

   

ALABAMA

CORPORATE


   

ALABAMA

TRUST II


  

ALABAMA

TRUST III


   

ALABAMA

TRUST IV


   

ALABAMA

TRUST V


 

Operating Revenues:

                                                       

Retail sales

   $ 3,051,463     $ —       $ 3,051,463     $ —      $ —       $ —       $ —    

Sales for resale —  

                                                       

Non-affiliates

     487,456       —         487,456       —        —         —         —    

Affiliates

     277,287       —         277,287       —        —         —         —    

Other revenues

     143,955       —         143,955       —        —         —         —    
    


 


 


 

  


 


 


Total operating revenues

     3,960,161       —         3,960,161       —        —         —         —    
    


 


 


 

  


 


 


Operating Expenses:

                                                       

Fuel

     1,067,821       —         1,067,821       —        —         —         —    

Purchased power —  

                                                       

Non-affiliates

     110,885       —         110,885       —        —         —         —    

Affiliates

     204,353       —         204,353       —        —         —         —    

Other operations

     611,418       —         611,418       —        —         —         —    

Maintenance

     309,451       —         309,451       —        —         —         —    

Depreciation and amortization

     412,919       —         412,919       —        —         —         —    

Taxes other than income taxes

     228,414       —         228,414       —        —         —         —    
    


 


 


 

  


 


 


Total operating expenses

     2,945,261       —         2,945,261       —        —         —         —    
    


 


 


 

  


 


 


Operating Income

     1,014,900       —         1,014,900       —        —         —         —    

Other Income and (Expense):

                                                       

Allowance for equity funds used during construction

     12,594       —         12,594       —        —         —         —    

Interest income

     15,220       (16,398 )     15,220       —        39       4,934       11,425  

Interest expense, net of amounts capitalized

     (214,302 )     16,398       (230,700 )     —        —         —         —    

Distributions on mandatorily redeemable preferred securities

     (15,255 )     —         —         654      (39 )     (4,787 )     (11,083 )

Other income (expense), net

     (31,702 )     —         (31,702 )(A,B)     —        —         —         —    
    


 


 


 

  


 


 


Total other income and (expense)

     (233,445 )     —         (234,588 )     654      —         147       342  
    


 


 


 

  


 


 


Earnings Before Income Taxes

     781,455       —         780,312       654      —         147       342  

Income taxes

     290,378       —         290,378       —        —         —         —    
    


 


 


 

  


 


 


Net Income

     491,077       —         489,934       654      —         147       342  

Dividends on Preferred Stock

     18,267       —         18,267       —        —         —         —    
    


 


 


 

  


 


 


Net Income After Dividends on Preferred Stock

   $ 472,810     $ —       $ 471,667     $ 654    $ —       $ 147     $ 342  
    


 


 


 

  


 


 


 

A-17


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

   

ALABAMA

Consolidated


   

Eliminations


   

ALABAMA

CORPORATE


   

ALABAMA

TRUST II


   

ALABAMA

TRUST III


 

ALABAMA

TRUST IV


   

ALABAMA

TRUST V


 

Operating Activities:

                                                     

Net income

  $ 491,077     $ —       $ 489,934     $ 654     $ —     $ 147     $ 342  

Adjustments to reconcile net income to net cash provided from operating activities—

                                                     

Depreciation and amortization

    467,085       —         467,085       —         —       —         —    

Deferred income taxes and investment tax credits, net

    153,154       —         153,154       —         —       —         —    

Deferred capacity revenues

    (9,589 )     —         (9,589 )     —         —       —         —    

Pension, postretirement, and other employee benefits

    (32,029 )     —         (32,029 )     —         —       —         —    

Tax benefit of stock options

    8,680       —         8,680       —         —       —         —    

Settlement of interest rate hedges

    (7,957 )     —         (7,957 )     —         —       —         —    

Other, net

    11,393       —         11,393       —         —       —         —    

Changes in certain current assets and liabilities—

                                                     

Receivables, net

    7,134       489       7,134       —         —       (147 )     (342 )

Fossil fuel stock

    (13,251 )     —         (13,251 )     —         —       —         —    

Materials and supplies

    (4,651 )     —         (4,651 )     —         —       —         —    

Other current assets

    (953 )     —         (953 )     —         —       —         —    

Accounts payable

    50,928       —         50,928       —         —       —         —    

Accrued taxes

    (33,507 )     —         (33,507 )     —         —       —         —    

Energy cost recovery, retail

    1,195       —         1,195       —         —       —         —    

Other current liabilities

    29,385       (489 )     29,874       —         —       —         —    
   


 


 


 


 

 


 


Net cash provided from operating activities

    1,118,094       —         1,117,440       654       —       —         —    
   


 


 


 


 

 


 


Investing Activities:

                                                     

Gross property additions

    (648,560 )     —         (648,560 )     —         —       —         —    

Cost of removal net of salvage

    (35,440 )     —         (35,440 )     —         —       —         —    

Other

    (13,763 )     —         (13,109 )     (654 )     —       —         —    
   


 


 


 


 

 


 


Net cash used for investing activities

    (697,763 )     —         (697,109 )     (654 )     —       —         —    
   


 


 


 


 

 


 


Financing Activities:

                                                     

Decrease in notes payable, net

    (36,991 )     —         (36,991 )     —         —       —         —    

Proceeds—

                                                     

Senior notes

    1,415,000       —         1,415,000       —         —       —         —    

Preferred stock

    125,000       —         125,000       —         —       —         —    

Common stock

    50,000       —         50,000       —         —       —         —    

Capital contributions from parent company

    17,826       —         17,826       —         —       —         —    

Redemptions—

                                                     

Senior notes

    (1,507,000 )     —         (1,507,000 )     —         —       —         —    

Other long-term debt

    (943 )     —         (943 )     —         —       —         —    

Payment of preferred stock dividends

    (18,181 )     —         (18,181 )     —         —       —         —    

Payment of common stock dividends

    (430,200 )     —         (430,200 )     —         —       —         —    

Other

    (14,775 )     —         (14,775 )     —         —       —         —    
   


 


 


 


 

 


 


Net cash used for financing activities

    (400,264 )     —         (400,264 )     —         —       —         —    
   


 


 


 


 

 


 


Net Change in Cash and Cash Equivalents

    20,067       —         20,067       —         —       —         —    

Cash and Cash Equivalents at Beginning of Period

    22,685       —         22,685       —         —       —         —    
   


 


 


 


 

 


 


Cash and Cash Equivalents at End of Period

  $ 42,752     $ —       $ 42,752     $ —       $ —     $ —       $ —    
   


 


 


 


 

 


 


 

A-18


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     ALABAMA
Consolidated


    Eliminations

    ALABAMA
CORPORATE


    ALABAMA
TRUST II


   ALABAMA
TRUST III


   ALABAMA
TRUST IV


   ALABAMA
TRUST V


Current Assets:

                                                   

Cash and cash equivalents

   $ 42,752     $ —       $ 42,752     $ —      $ —      $ —      $ —  

Receivables —  

                                                   

Customer accounts receivable

     240,562       —         240,562       —        —        —        —  

Unbilled revenues

     95,953       —         95,953       —        —        —        —  

Other accounts and notes receivable

     53,547       —         53,547       —        —        —        —  

Affiliated companies

     48,876       (4,232 )     48,876       —        —        1,276      2,956

Accumulated provision for uncollectible accounts

     (4,756 )     —         (4,756 )     —        —        —        —  

Fossil fuel stock, at average cost

     86,993       —         86,993       —        —        —        —  

Vacation pay

     35,530       —         35,530       —        —        —        —  

Materials and supplies, at average cost

     211,690       —         211,690       —        —        —        —  

Prepaid expenses

     44,608       —         44,608       —        —        —        —  

Other

     19,454       —         19,454       —        —        —        —  
    


 


 


 

  

  

  

Total current assets

     875,209       (4,232 )     875,209       —        —        1,276      2,956
    


 


 


 

  

  

  

Property, Plant, and Equipment:

                                                   

In service

     14,224,117       —         14,224,117       —        —        —        —  

Less accumulated provision for depreciation

     4,905,920       —         4,905,920       —        —        —        —  
    


 


 


 

  

  

  

       9,318,197       —         9,318,197       —        —        —        —  

Nuclear fuel, at amortized cost

     93,611       —         93,611       —        —        —        —  

Construction work in progress

     321,316       —         321,316       —        —        —        —  
    


 


 


 

  

  

  

Total property, plant, and equipment

     9,733,124       —         9,733,124       —        —        —        —  
    


 


 


 

  

  

  

Other Property and Investments:

                                                   

Equity investments in unconsolidated subsidiaries

     47,811       (9,406 )     57,217 (C)     —        —        —        —  

Nuclear decommissioning trusts, at fair value

     384,574       —         384,574       —        —        —        —  

Other

     16,992       (309,279 )     16,992       —        —        103,093      206,186
    


 


 


 

  

  

  

Total other property and investments

     449,377       (318,685 )     458,783       —        —        103,093      206,186
    


 


 


 

  

  

  

Deferred Charges and Other Assets:

                                                   

Deferred charges related to income taxes

     321,077       —         321,077       —        —        —        —  

Prepaid pension costs

     446,256       —         446,256       —        —        —        —  

Unamortized loss on reacquired debt

     110,946       —         110,946       —        —        —        —  

Department of Energy assessments

     13,092       —         13,092       —        —        —        —  

Other

     121,543       —         121,543       —        —        —        —  
    


 


 


 

  

  

  

Total deferred charges and other assets

     1,012,914       —         1,012,914       —        —        —        —  
    


 


 


 

  

  

  

Total Assets

   $ 12,070,624     $ (322,917 )   $ 12,080,030     $ —      $ —      $ 104,369    $ 209,142
    


 


 


 

  

  

  

 

A-19


Table of Contents

ALABAMA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     ALABAMA
Consolidated


   Eliminations

    ALABAMA
CORPORATE


   ALABAMA
TRUST II


   ALABAMA
TRUST III


   ALABAMA
TRUST IV


   ALABAMA
TRUST V


Current Liabilities:

                                                 

Securities due within one year

   $ 526,019    $ —       $ 526,019    $ —      $ —      $ —      $ —  

Accounts payable—

                                                 

Affiliated

     135,017      —         135,017      —        —        —        —  

Other

     162,314      —         162,314      —        —        —        —  

Customer deposits

     47,507      —         47,507      —        —        —        —  

Accrued taxes—

            —                —        —        —        —  

Income taxes

     83,544      —         83,544      —        —        —        —  

Other

     22,273      —         22,273      —        —        —        —  

Accrued interest

     46,489      (4,232 )     46,616      —        —        1,238      2,867

Accrued vacation pay

     35,530      —         35,530      —        —        —        —  

Accrued compensation

     75,620      —         75,620      —        —        —        —  

Other

     34,513      —         34,513      —        —        —        —  
    

  


 

  

  

  

  

Total current liabilities

     1,168,826      (4,232 )     1,168,953      —        —        1,238      2,867
    

  


 

  

  

  

  

Long-term debt

     3,377,148      (309,279 )     3,686,427      —        —        —        —  
    

  


 

  

  

  

  

Mandatorily redeemable preferred securities

     300,000      —         —        —        —        100,000      200,000
    

  


 

  

  

  

  

Deferred Credits and Other Liabilities:

                                                 

Accumulated deferred income taxes

     1,571,076      —         1,571,076      —        —        —        —  

Deferred credits related to income taxes

     162,168      —         162,168      —        —        —        —  

Accumulated deferred investment tax credits

     216,309      —         216,309      —        —        —        —  

Employee benefit obligations

     180,960      —         180,960      —        —        —        —  

Deferred capacity revenues

     36,567      —         36,567      —        —        —        —  

Asset retirement obligations

     358,759      —         358,759      —        —        —        —  

Asset retirement obligation regulatory liability

     127,346      —         127,346      —        —        —        —  

Other cost of removal obligations

     574,445      —         574,445      —        —        —        —  

Miscellaneous regulatory liabilities

     86,323      —         86,323      —        —        —        —  

Other

     37,525      —         37,525      —        —        —        —  
    

  


 

  

  

  

  

Total deferred credits and other liabilities

     3,351,478      —         3,351,478      —        —        —        —  
    

  


 

  

  

  

  

Total liabilities

     8,197,452      (313,511 )     8,206,858      —        —        101,238      202,867
    

  


 

  

  

  

  

Cumulative preferred stock

     372,512      —         372,512      —        —        —        —  
    

  


 

  

  

  

  

Common stockholder’s equity

     3,500,660      (9,406 )     3,500,660      —        —        3,131      6,275
    

  


 

  

  

  

  

Total Liabilities and Stockholder’s Equity

   $ 12,070,624    $ (322,917 )   $ 12,080,030    $ —      $ —      $ 104,369    $ 209,142
    

  


 

  

  

  

  

 

A-20


Table of Contents

Notes to ALABAMA’s Consolidating

Financial Statements

 

(A) Represents equity in earnings of SEGCO, a subsidiary in which ALABAMA has 50% ownership, which is accounted for on the equity basis. See pages A-1 through A-15 for SEGCO’s financial statements consolidated for SOUTHERN.

 

(B) Includes $153,550 in losses of Alabama Property Company, a non-consolidated subsidiary, which is accounted for on the equity basis. See pages A-22 through A-23 for Alabama Property Company’s financial statements.

 

(C) Includes ALABAMA’s investment in SEGCO of $31,740,466 and investment in Alabama Property Company of $10,060,787.

 

A-21


Table of Contents

ALABAMA PROPERTY COMPANY

STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(Unaudited; Not Consolidated in Parent, ALABAMA)

 

REVENUES:

        

Rentals

   $ 154,021  

Interest on securities owned

     82,672  
    


Total Revenues

     236,694  

COSTS AND EXPENSES:

        

Operating expenses

     457,245  

Taxes other than income taxes

     121,277  

Income taxes

     (188,279 )
    


Total Costs and Expenses

     390,244  
    


NET INCOME

   $ (153,550 )
    


 

 

ALABAMA PROPERTY COMPANY

STATEMENT OF RETAINED EARNINGS

FOR THE YEAR ENDED DECEMBER 31, 2003

(Unaudited; Not Consolidated in Parent, ALABAMA)

 

RETAINED EARNINGS AT DECEMBER 31, 2002

   $ 9,750,470  

Net income

     (153,550 )
    


RETAINED EARNINGS AT DECEMBER 31, 2003

   $ 9,596,920  
    


 

A-22


Table of Contents

ALABAMA PROPERTY COMPANY

BALANCE SHEET AT DECEMBER 31, 2003

(Unaudited; Not Consolidated in Parent, ALABAMA)

 

ASSETS

 

CURRENT ASSETS:

        

Cash

   $ 28,523  

Temporary cash investments

     6,011,912  

Accounts receivable

        

Other

     2,500  

Associated Companies

     60,971  
    


Total current assets

     6,103,906  

PROPERTY AND MINERAL RIGHTS HELD FOR FUTURE DEVELOPMENT

     3,933,813  
    


Total Assets

   $ 10,037,719  
    


LIABILITIES AND CAPITALIZATION  

CURRENT LIABILITIES:

        

Accounts payable to associated companies

   $ 18,089  

Accrued income taxes

     (41,157 )
    


Total current liabilities

     (23,068 )
    


SHAREHOLDER’S INVESTMENT:

        

Common stock, $150 par value; 1,000 shares authorized, issued and outstanding

     150,000  

Additional paid-in capital

     313,867  

Retained earnings

     9,596,920  
    


Total shareholder’s investment

     10,060,787  
    


Total Liabilities and Capitalization

   $ 10,037,719  
    


 

A-23


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     GEORGIA
Consolidated


    Eliminations

    GEORGIA
CORPORATE


    PIEDMONT

    GEORGIA
TRUST IV


    GEORGIA
TRUST V


    GEORGIA
TRUST VI


 

Operating Revenues:

                                                        

Retail sales

   $ 4,309,972     $ —       $ 4,309,972     $ —       $ —       $ —       $ —    

Sales for resale—

                                                        

Non-affiliates

     259,376       —         259,376       —         —         —         —    

Affiliates

     174,855       —         174,855       —         —         —         —    

Other revenues

     169,304       (967 )     169,304       967       —         —         —    
    


 


 


 


 


 


 


Total operating revenues

     4,913,507       (967 )     4,913,507       967       —         —         —    
    


 


 


 


 


 


 


Operating Expenses:

                                                        

Fuel

     1,103,963       —         1,103,963       —         —         —         —    

Purchased power—

                                                        

Non-affiliates

     258,621       —         258,621       —         —         —         —    

Affiliates

     516,944       —         516,944       —         —         —         —    

Other operations

     827,972       (967 )     828,939       —         —         —         —    

Maintenance

     419,206       —         419,206       —         —         —         —    

Depreciation and amortization

     349,984               349,984       —         —         —         —    

Taxes other than income taxes

     212,827       —         212,581       246       —         —         —    
    


 


 


 


 


 


 


Total operating expenses

     3,689,517       (967 )     3,690,238       246       —         —         —    
    


 


 


 


 


 


 


Operating Income

     1,223,990       —         1,223,269       721       —         —         —    

Other Income and (Expense):

                                                        

Allowance for equity funds used during construction

     10,752       —         10,752       —         —         —         —    

Interest income

     15,625       (62,283 )     15,625       762       14,124       32,320       15,077  

Interest expense, net of amounts capitalized

     (182,583 )     62,283       (244,576 )     (290 )     —         —         —    

Distributions on mandatorily redeemable preferred securities

     (59,675 )     —         —         —         (13,700 )     (31,350 )     (14,625 )

Other income (expense), net

     (10,551 )     —         (10,551 )(A)     —         —         —         —    
    


 


 


 


 


 


 


Total other income and (expense)

     (226,432 )     —         (228,750 )     472       424       970       452  
    


 


 


 


 


 


 


Earnings Before Income Taxes

     997,558       —         994,519       1,193       424       970       452  

Income taxes

     366,311       —         365,850       461       —         —         —    
    


 


 


 


 


 


 


Net Income

     631,247       —         628,669       732       424       970       452  

Dividends on Preferred Stock

     670       —         670       —         —         —         —    
    


 


 


 


 


 


 


Net Income After Dividends on Preferred Stock

   $ 630,577     $ —       $ 627,999     $ 732     $ 424     $ 970     $ 452  
    


 


 


 


 


 


 


 

A-24


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     GEORGIA
Consolidated


    Eliminations

    GEORGIA
CORPORATE


    PIEDMONT

    GEORGIA
TRUST IV


    GEORGIA
TRUST V


    GEORGIA
TRUST VI


 

Operating Activities:

                                                        

Net income

   $ 631,247     $ —       $ 628,669     $ 732     $ 424     $ 970     $ 452  
                                                          

Adjustments to reconcile net income to net cash provided from operating activities—

                                                        

Depreciation and amortization

     390,201       —         390,201       —         —         —         —    

Deferred income taxes and investment tax credits, net

     230,221       —         230,221       —         —         —         —    

Pension, postretirement, and other employee benefits

     (29,118 )     —         (29,118 )     —         —         —         —    

Tax benefit of stock options

     11,649       —         11,649       —         —         —         —    

Settlement of interest rate hedges

     (11,250 )     —         (11,250 )     —         —         —         —    

Other, net

     2,768       —         2,768       —         —         —         —    

Changes in certain current assets and liabilities—

                                                        

Receivables, net

     (4,870 )     2,578       (5,399 )     —         (424 )     (970 )     (655 )

Fossil fuel stock

     (17,490 )     —         (17,490 )     —         —         —         —    

Materials and supplies

     (7,677 )     —         (7,677 )     —         —         —         —    

Other current assets

     (2,352 )     —         (2,352 )     —         —         —         —    

Accounts payable

     (49,598 )     (2,578 )     (47,223 )     —         —         —         203  

Accrued taxes

     52,348       —         52,131       217       —         —         —    

Other current liabilities

     16,734       —         16,734       —         —         —         —    
    


 


 


 


 


 


 


Net cash provided from operating activities

     1,212,813       —         1,211,864       949       —         —         —    
    


 


 


 


 


 


 


Investing Activities:

                                                        

Gross property additions

     (742,810 )     —         (742,810 )     —         —         —         —    

Cost of removal net of salvage

     (28,265 )     —         (28,265 )     —         —         —         —    

Change in construction payables, net of joint owner portion

     (32,223 )     —         (32,223 )     —         —         —         —    

Other

     15,961       —         15,762       199       —         —         —    
    


 


 


 


 


 


 


Net cash used for investing activities

     (787,337 )     —         (787,536 )     199       —         —         —    
    


 


 


 


 


 


 


Financing Activities:

                                                        

Decrease in notes payable, net

     (220,400 )     —         (220,400 )     —         —         —         —    

Proceeds—

                                                        

Senior notes

     1,000,000       —         1,000,000       —         —         —         —    

Capital contributions from parent company

     40,809       —         40,809       —         —         —         —    

Redemptions—

                                                        

Senior notes

     (665,000 )     —         (665,000 )     —         —         —         —    

Other long-term debt

     —                 309       (309 )                        

Payment of preferred stock dividends

     (696 )     —         (696 )     —         —         —         —    

Payment of common stock dividends

     (565,800 )     —         (565,800 )     —         —         —         —    

Other

     (22,563 )     —         (21,724 )     (839 )     —         —         —    
    


 


 


 


 


 


 


Net cash used for financing activities

     (433,650 )     —         (432,502 )     (1,148 )     —         —         —    
    


 


 


 


 


 


 


Net Change in Cash and Cash Equivalents

     (8,174 )     —         (8,174 )     —         —         —         —    

Cash and Cash Equivalents at Beginning of Period

     16,873       —         16,873       —         —         —         —    
    


 


 


 


 


 


 


Cash and Cash Equivalents at End of Period

   $ 8,699     $ —       $ 8,699     $ —       $ —       $ —       $ —    
    


 


 


 


 


 


 


 

A-25


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     GEORGIA
Consolidated


    Eliminations

    GEORGIA
CORPORATE


    PIEDMONT

   GEORGIA
TRUST IV


   GEORGIA
TRUST V


   GEORGIA
TRUST VI


Current Assets:

                                                   

Cash and cash equivalents

   $ 8,699     $ —       $ 8,699     $ —      $ —      $ —      $ —  

Receivables—

                                                   

Customer accounts receivable

     261,771       —         261,771       —        —        —        —  

Unbilled revenues

     117,327       —         117,327       —        —        —        —  

Under recovered regulatory clause revenues

     151,447       —         151,447       —        —        —        —  

Other accounts and notes receivable

     101,783       (6,493 )     101,783       —        2,055      1,479      2,959

Affiliated companies

     52,413       —         52,413       —        —        —        —  

Accumulated provision for uncollectible accounts

     (5,350 )     —         (5,350 )     —        —        —        —  

Fossil fuel stock, at average cost

     137,537       —         137,537       —        —        —        —  

Materials and supplies, at average cost

     271,040       —         271,040       —        —        —        —  

Vacation pay

     50,150       —         50,150       —        —        —        —  

Prepaid expenses

     46,157       —         46,157       —        —        —        —  

Other

     83       —         83       —        —        —        —  
    


 


 


 

  

  

  

Total current assets

     1,193,057       (6,493 )     1,193,057       —        2,055      1,479      2,959
    


 


 


 

  

  

  

Property, Plant, and Equipment:

                                                   

In service

     18,171,862       —         18,154,519       17,343      —        —        —  

Less accumulated provision for depreciation

     6,898,725       —         6,898,725       —        —        —        —  
    


 


 


 

  

  

  

       11,273,137       —         11,255,794       17,343      —        —        —  

Nuclear fuel, at amortized cost

     129,056       —         129,056       —        —        —        —  

Construction work in progress

     341,783       —         341,783       —        —        —        —  
    


 


 


 

  

  

  

Total property, plant, and equipment

     11,743,976       —         11,726,633       17,343      —        —        —  
    


 


 


 

  

  

  

Other Property and Investments:

                                                   

Equity investments in unconsolidated subsidiaries

     38,714       (49,567 )     88,281 (B)     —        —        —        —  

Nuclear decommissioning trusts, at fair value

     423,319       —         423,319       —        —        —        —  

Other

     37,142       (969,073 )     37,142       —        206,186      453,608      309,279
    


 


 


 

  

  

  

Total other property and investments

     499,175       (1,018,640 )     548,742       —        206,186      453,608      309,279
    


 


 


 

  

  

  

Deferred Charges and Other Assets:

                                                   

Deferred charges related to income taxes

     509,887       —         509,277       610      —        —        —  

Prepaid pension costs

     405,164       —         405,164       —        —        —        —  

Unamortized debt issuance expense

     75,245       —         75,245       —        —        —        —  

Unamortized loss on reacquired debt

     177,707       —         177,707       —        —        —        —  

Other

     177,817       —         177,817       —        —        —        —  
    


 


 


 

  

  

  

Total deferred charges and other assets

     1,345,820       —         1,345,210       610      —        —        —  
    


 


 


 

  

  

  

Total Assets

   $ 14,782,028     $ (1,025,133 )   $ 14,813,642     $ 17,953    $ 208,241    $ 455,087    $ 312,238
    


 


 


 

  

  

  

 

A-26


Table of Contents

GEORGIA POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     GEORGIA
Consolidated


   Eliminations

    GEORGIA
CORPORATE


   PIEDMONT

   GEORGIA
TRUST IV


   GEORGIA
TRUST V


   GEORGIA
TRUST VI


Current Liabilities:

                                                 

Securities due within one year

   $ 2,304    $ —       $ 2,304    $ —      $ —      $ —      $ —  

Notes payable

     137,277      —         137,277      —        —        —        —  

Accounts payable—

                                                 

Affiliated

     121,928      —         121,928      —        —        —        —  

Other

     238,069      —         238,069      —        —        —        —  

Customer deposits

     103,756      —         103,756      —        —        —        —  

Accrued taxes—

                                                 

Income taxes

     107,532      —         106,018      1,514      —        —        —  

Other

     166,892      —         166,892      —        —        —        —  

Accrued interest

     70,844      (6,493 )     74,899      —        —        —        2,438

Accrued vacation pay

     38,206      —         38,206      —        —        —        —  

Accrued compensation

     134,004      —         134,004      —        —        —        —  

Other

     105,234      —         105,234      —        —        —        —  
    

  


 

  

  

  

  

Total current liabilities

     1,226,046      (6,493 )     1,228,587      1,514      —        —        2,438
    

  


 

  

  

  

  

Long-term debt

     3,762,333      (980,152 )     4,731,406      11,079      —        —        —  
    

  


 

  

  

  

  

Mandatorily redeemable preferred securities

     940,000      —         —        —        200,000      440,000      300,000
    

  


 

  

  

  

  

Deferred Credits and Other Liabilities:

                                                 

Accumulated deferred income taxes

     2,303,085      —         2,303,085      —        —        —        —  

Deferred credits related to income taxes

     186,625      —         186,625      —        —        —        —  

Accumulated deferred investment tax credits

     312,506      —         312,506      —        —        —        —  

Employee benefit obligations

     295,788      —         295,788      —        —        —        —  

Asset retirement obligations

     475,585      —         475,585      —        —        —        —  

Other cost of removal obligations

     412,161      —         412,161      —        —        —        —  

Miscellaneous regulatory liabilities

     249,687      —         249,687      —        —        —        —  

Other

     63,432      —         63,432      —        —        —        —  
    

  


 

  

  

  

  

Total deferred credits and other liabilities

     4,298,869      —         4,298,869      —        —        —        —  
    

  


 

  

  

  

  

Total liabilities

     10,227,248      (986,645 )     10,258,862      12,593      200,000      440,000      302,438
    

  


 

  

  

  

  

Preferred stock

     14,569      —         14,569      —        —        —        —  
    

  


 

  

  

  

  

Common stockholder’s equity

     4,540,211      (38,488 )     4,540,211      5,360      8,241      15,087      9,800
    

  


 

  

  

  

  

Total Liabilities and Stockholder’s Equity

   $ 14,782,028    $ (1,025,133 )   $ 14,813,642    $ 17,953    $ 208,241    $ 455,087    $ 312,238
    

  


 

  

  

  

  

 

A-27


Table of Contents

Notes to GEORGIA’s Consolidating

Financial Statements

 

 

(A) Includes $3,202,001 equity in earnings for SEGCO, a subsidiary in which GEORGIA has 50% ownership. SEGCO is accounted for on the equity basis. See pages A-1 through A-15 for SEGCO’s financial statements consolidated for SOUTHERN.

 

(B) Includes $31,684,625 of investments in SEGCO.

 

A-28


Table of Contents

GULF POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

     GULF
Consolidated


    Eliminations

    GULF
CORPORATE


    GULF
TRUST I


    GULF
TRUST II


    GULF
TRUST III


    GULF
TRUST IV


 

Operating Revenues:

                                                        

Retail sales

   $ 699,174     $ —       $ 699,174     $ —       $ —       $ —       $ —    

Sales for resale—

                                                        

Non-affiliates

     76,767       —         76,767       —         —         —         —    

Affiliates

     63,268       —         63,268       —         —         —         —    

Other revenues

     38,488       —         38,488       —         —         —         —    
    


 


 


 


 


 


 


Total operating revenues

     877,697       —         877,697       —         —         —         —    
    


 


 


 


 


 


 


Operating Expenses:

                                                        

Fuel

     316,503       —         316,503       —         —         —         —    

Purchased power—

                                                        

Non-affiliates

     17,137       —         17,137       —         —         —         —    

Affiliates

     33,020       —         33,020       —         —         —         —    

Other operations

     140,166       —         140,166       —         —         —         —    

Maintenance

     70,534       —         70,534       —         —         —         —    

Depreciation and amortization

     82,322       —         82,322       —         —         —         —    

Taxes other than income taxes

     66,115       —         66,115       —         —         —         —    
    


 


 


 


 


 


 


Total operating expenses

     725,797       —         725,797       —         —         —         —    
    


 


 


 


 


 


 


Operating Income

     151,900       —         151,900       —         —         —         —    

Other Income and (Expense):

                                                        

Allowance for equity funds used during construction

     712       —         712       —         —         —         —    

Interest income

     888       (7,301 )     888       127       2,584       2,281       2,309  

Interest expense, net of amounts capitalized

     (31,069 )     7,301       (38,370 )     —         —         —         —    

Distributions on mandatorily redeemable preferred securities

     (7,085 )     —         —         (127 )     (2,584 )     (2,214 )     (2,160 )

Other income (expense), net

     (5,242 )     —         (5,242 )     —         —         —         —    
    


 


 


 


 


 


 


Total other income and (expense)

     (41,796 )     —         (42,012 )     —         —         67       149  
    


 


 


 


 


 


 


Earnings Before Income Taxes

     110,104       —         109,888       —         —         67       149  

Income taxes

     40,877       —         40,877       —         —         —         —    
    


 


 


 


 


 


 


Net Income

     69,227       —         69,011       —         —         67       149  

Dividends on Preferred Stock

     217       —         217       —         —         —         —    
    


 


 


 


 


 


 


Net Income After Dividends on Preferred Stock

   $ 69,010     $ —       $ 68,794     $ —       $ —       $ 67     $ 149  
    


 


 


 


 


 


 


 

A-29


Table of Contents

GULF POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

    

GULF

Consolidated


    Eliminations

    GULF
CORPORATE


    GULF
TRUST I


   

GULF

TRUST II


    GULF
TRUST III


   

GULF

TRUST IV


 

Operating Activities:

                                                        

Net income

   $ 69,227     $ —       $ 69,011     $ —       $ —       $ 67     $ 149  

Adjustments to reconcile net income to net cash provided from operating activities —

                                                        

Depreciation and amortization

     87,949       —         87,949       —         —         —         —    

Deferred income taxes

     2,303       —         2,303       —         —         —         —    

Pension, postretirement, and other employee benefits

     (717 )     —         (717 )     —         —         —         —    

Tax benefit of stock options

     1,768       —         1,768       —         —         —         —    

Settlement of interest rate hedge

     (3,266 )     —         (3,266 )     —         —         —         —    

Other, net

     6,829       —         6,829       —         —         —         —    

Changes in certain current assets and liabilities —

                                                        

Receivables, net

     8,223       75       8,223       —         —         —         (75 )

Fossil fuel stock

     1,837       —         1,837       —         —         —         —    

Materials and supplies

     (1,091 )     —         (1,091 )     —         —         —         —    

Other current assets

     12,207       —         12,207       —         —         —         —    

Accounts payable

     (1,105 )     —         (1,105 )     —         —         —         —    

Accrued taxes

     (549 )     —         (549 )     —         —         —         —    

Other current liabilities

     7,576       (75 )     7,578       —         —         —         73  
    


 


 


 


 


 


 


Net cash provided from operating activities

     191,191       —         190,977       —         —         67       147  
    


 


 


 


 


 


 


Investing Activities:

                                                        

Gross property additions

     (99,284 )     —         (99,284 )     —         —         —         —    

Cost of removal net of salvage

     (7,881 )     —         (7,881 )     —         —         —         —    

Other

     (4,440 )     (87,629 )     (1,597 )     40,000       45,000       (67 )     (147 )
    


 


 


 


 


 


 


Net cash used for investing activities

     (111,605 )     (87,629 )     (108,762 )     40,000       45,000       (67 )     (147 )
    


 


 


 


 


 


 


Financing Activities:

                                                        

Increase in notes payable, net

     9,187       —         9,187       —         —         —         —    

Proceeds —

                                                        

Pollution control bonds

     61,625       —         61,625       —         —         —         —    

Senior notes

     225,000       —         225,000       —         —         —         —    

Capital contributions from parent company

     13,315       —         13,315       —         —         —         —    

Redemptions —

                                                        

Pollution control bonds

     (61,625 )     —         (61,625 )     —         —         —         —    

Senior notes

     (151,757 )     —         (151,757 )     —         —         —         —    

Other long-term debt

     (20,000 )     87,629       (107,629 )     —         —         —         —    

Mandatorily redeemable preferred securities

     (85,000 )     —         —         (40,000 )     (45,000 )     —         —    

Payment of preferred stock dividends

     (217 )     —         (217 )     —         —         —         —    

Payment of common stock dividends

     (70,200 )     —         (70,200 )     —         —         —         —    

Other

     (10,644 )     —         (10,644 )     —         —         —         —    
    


 


 


 


 


 


 


Net cash provided from (used for) financing activities

     (90,316 )     87,629       (92,945 )     (40,000 )     (45,000 )     —         —    
    


 


 


 


 


 


 


Net Change in Cash and Cash Equivalents

     (10,730 )     —         (10,730 )     —         —         —         —    

Cash and Cash Equivalents at Beginning of Period

     13,278       —         13,278       —         —         —         —    
    


 


 


 


 


 


 


Cash and Cash Equivalents at End of Period

   $ 2,548     $ —       $ 2,548     $ —       $ —       $ —       $ —    
    


 


 


 


 


 


 


 

A-30


Table of Contents

GULF POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

    

GULF

Consolidated


    Eliminations

   

GULF

CORPORATE


   

GULF

TRUST I


  

GULF

TRUST II


  

GULF

TRUST III


  

GULF

TRUST IV


Current Assets:

                                                   

Cash and cash equivalents

   $ 2,548     $ —       $ 2,548     $ —      $ —      $ —      $ —  

Receivables —  

                                                   

Customer accounts receivable

     44,001       —         44,001       —        —        —        —  

Unbilled revenues

     31,548       —         31,548       —        —        —        —  

Under recovered regulatory clause revenues

     21,812       —         21,812       —        —        —        —  

Other accounts and notes receivable

     6,179       (187 )     6,179       —        —        —        187

Affiliated companies

     9,826       —         9,826       —        —        —        —  

Accumulated provision for uncollectible accounts

     (947 )     —         (947 )     —        —        —        —  

Fossil fuel stock, at average cost

     35,354       —         35,354       —        —        —        —  

Materials and supplies, at average cost

     35,930       —         35,930       —        —        —        —  

Prepaid income taxes

     4       —         4       —        —        —        —  

Prepaid expenses

     6,310       —         6,310       —        —        —        —  

Vacation pay

     5,254       —         5,254       —        —        —        —  

Other

     4,981       —         4,981       —        —        —        —  
    


 


 


 

  

  

  

Total current assets

     202,800       (187 )     202,800       —        —        —        187
    


 


 


 

  

  

  

Property, Plant, and Equipment:

                                                   

In service

     2,306,959       —         2,306,959       —        —        —        —  

Less accumulated provision for depreciation

     847,519       —         847,519       —        —        —        —  
    


 


 


 

  

  

  

       1,459,440       —         1,459,440       —        —        —        —  

Construction work in progress

     49,438       —         49,438       —        —        —        —  
    


 


 


 

  

  

  

Total property, plant, and equipment

     1,508,878       —         1,508,878       —        —        —        —  
    


 


 


 

  

  

  

Other property and investments

     12,597       (74,332 )     14,763       —        —        30,928      41,238
    


 


 


 

  

  

  

Deferred Charges and Other Assets:

                                                   

Deferred charges related to income taxes

     18,263       —         18,263       —        —        —        —  

Prepaid pension costs

     42,014       —         42,014       —        —        —        —  

Unamortized debt issuance expense

     6,877       —         6,877       —        —        —        —  

Unamortized loss on reacquired debt

     19,389       —         19,389       —        —        —        —  

Other

     28,235       —         28,235       —        —        —        —  
    


 


 


 

  

  

  

Total deferred charges and other assets

     114,778       —         114,778       —        —        —        —  
    


 


 


 

  

  

  

Total Assets

   $ 1,839,053     $ (74,519 )   $ 1,841,219     $ —      $ —      $ 30,928    $ 41,425
    


 


 


 

  

  

  

 

A-31


Table of Contents

GULF POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

GULF

Consolidated


   Eliminations

   

GULF

CORPORATE


  

GULF

TRUST I


  

GULF

TRUST II


  

GULF

TRUST III


  

GULF

TRUST IV


Current Liabilities:

                                                 

Securities due within one year

   $ 50,000    $ —       $ 50,000    $ —      $ —      $ —      $ —  

Notes payable

     37,666      —         37,666      —        —        —        —  

Accounts payable —  

                                                 

Affiliated

     26,945      —         26,945      —        —        —        —  

Other

     21,952      —         21,952      —        —        —        —  

Customer deposits

     18,271      —         18,271      —        —        —        —  

Accrued taxes —  

                                                 

Income taxes

     6,405      —         6,405      —        —        —        —  

Other

     8,621      —         8,621      —        —        —        —  

Accrued interest

     8,077      (187 )     8,077      —        —        —        187

Accrued vacation pay

     5,254      —         5,254      —        —        —        —  

Accrued compensation

     13,456      —         13,456      —        —        —        —  

Other

     9,694      —         9,694      —        —        —        —  
    

  


 

  

  

  

  

Total current liabilities

     206,341      (187 )     206,341      —        —        —        187
    

  


 

  

  

  

  

Long-term debt

     515,827      (72,166 )     587,993      —        —        —        —  
    

  


 

  

  

  

  

Mandatorily redeemable preferred securities

     70,000      —         —        —        —        30,000      40,000
    

  


 

  

  

  

  

Deferred Credits and Other Liabilities:

                                                 

Accumulated deferred income taxes

     175,685      —         175,685      —        —        —        —  

Deferred credits related to income taxes

     26,545      —         26,545      —        —        —        —  

Accumulated deferred investment tax credits

     20,451      —         20,451      —        —        —        —  

Employee benefit obligations

     52,395      —         52,395      —        —        —        —  

Other cost of removal obligations

     151,229      —         151,229      —        —        —        —  

Miscellaneous regulatory liabilities

     27,903      —         27,903      —        —        —        —  

Other

     27,083      —         27,083      —        —        —        —  
    

  


 

  

  

  

  

Total deferred credits and other liabilities

     481,291      —         481,291      —        —        —        —  
    

  


 

  

  

  

  

Total liabilities

     1,273,459      (72,353 )     1,275,625      —        —        30,000      40,187
    

  


 

  

  

  

  

Preferred stock

     4,236      —         4,236      —        —        —        —  
    

  


 

  

  

  

  

Common stockholder's equity

     561,358      (2,166 )     561,358      —        —        928      1,238
    

  


 

  

  

  

  

Total Liabilities and Stockholder's Equity

   $ 1,839,053    $ (74,519 )   $ 1,841,219    $ —      $ —      $ 30,928    $ 41,425
    

  


 

  

  

  

  

 

A-32


Table of Contents

MISSISSIPPI POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

MISSISSIPPI

Consolidated


    Eliminations

   

MISSISSIPPI

CORPORATE


   

MISSISSIPPI

TRUST II


 

Operating Revenues:

                                

Retail sales

   $ 516,301     $ —       $ 516,301     $ —    

Sales for resale —  

                                

Non-affiliates

     249,986       —         249,986       —    

Affiliates

     26,723       —         26,723       —    

Contract termination

     62,111       —         62,111       —    

Other revenues

     14,803       —         14,803       —    
    


 


 


 


Total operating revenues

     869,924       —         869,924       —    
    


 


 


 


Operating Expenses:

                                

Fuel

     229,251       —         229,251       —    

Purchased power —  

                                

Non-affiliates

     18,523       —         18,523       —    

Affiliates

     74,674       —         74,674       —    

Other operations —  

                                

Plant Daniel capacity

     60,300       —         60,300       —    

Other

     169,775       —         169,775       —    

Maintenance

     70,043       —         70,043       —    

Depreciation and amortization

     55,700       —         55,700       —    

Taxes other than income taxes

     53,991       —         53,991       —    
    


 


 


 


Total operating expenses

     732,257       —         732,257       —    
    


 


 


 


Operating Income

     137,667       —         137,667       —    

Other Income and (Expense):

                                

Interest income

     617       (2,598 )     617       2,598  

Interest expense

     (14,369 )     2,598       (16,967 )     —    

Distributions on mandatorily redeemable preferred securities

     (2,520 )     —         —         (2,520 )

Other income (expense), net

     (568 )     —         (568 )     —    
    


 


 


 


Total other income and (expense)

     (16,840 )     —         (16,918 )     78  
    


 


 


 


Earnings Before Income Taxes

     120,827       —         120,749       78  

Income taxes

     45,315       —         45,315       —    
    


 


 


 


Net Income

     75,512       —         75,434       78  

Dividends on Preferred Stock

     2,013       —         2,013       —    
    


 


 


 


Net Income After Dividends on Preferred Stock

   $ 73,499     $ —       $ 73,421     $ 78  
    


 


 


 


 

A-33


Table of Contents

MISSISSIPPI POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

MISSISSIPPI

Consolidated


    Eliminations

  

MISSISSIPPI

CORPORATE


   

MISSISSIPPI

TRUST II


 

Operating Activities:

                               

Net income

   $ 75,512     $ —      $ 75,434     $ 78  

Adjustments to reconcile net income to net cash provided from operating activities —  

                               

Depreciation and amortization

     60,226       —        60,226       —    

Deferred income taxes and investment tax credits, net

     (8,562 )     —        (8,562 )     —    

Plant Daniel capacity

     60,300       —        60,300       —    

Pension, postretirement, and other employee benefits

     (1,014 )     —        (1,014 )     —    

Tax benefit of stock options

     2,323       —        2,323       —    

Other, net

     6,517       —        6,517       —    

Changes in certain current assets and liabilities —  

                               

Receivables, net

     21,038       —        21,038       —    

Fossil fuel stock

     2,070       —        2,070       —    

Materials and supplies

     (1,607 )     —        (1,607 )     —    

Other current assets

     1,750       —        1,750       —    

Accounts payable

     (12,292 )     —        (12,292 )     —    

Accrued taxes

     (8,976 )     —        (8,976 )     —    

Other current liabilities

     (13,804 )     —        (13,804 )     —    
    


 

  


 


Net cash provided from operating activities

     183,481       —        183,403       78  
    


 

  


 


Investing Activities:

                               

Gross property additions

     (69,345 )     —        (69,345 )     —    

Cost of removal net of salvage

     (5,811 )     —        (5,811 )     —    

Other

     (2,080 )     —        (2,002 )     (78 )
    


 

  


 


Net cash used for investing activities

     (77,236 )     —        (77,158 )     (78 )
    


 

  


 


Financing Activities:

                               

Proceeds —  

                               

Senior notes

     90,000       —        90,000       —    

Capital contributions from parent company

     4,912       —        4,912       —    

Redemptions —  

                               

First mortgage bonds

     (33,350 )     —        (33,350 )     —    

Pollution control bonds

     (850 )     —        (850 )     —    

Senior notes

     (86,628 )     —        (86,628 )     —    

Payment of preferred stock dividends

     (2,013 )     —        (2,013 )     —    

Payment of common stock dividends

     (66,000 )     —        (66,000 )     —    

Other

     (5,891 )     —        (5,891 )     —    
    


 

  


 


Net cash used for financing activities

     (99,820 )     —        (99,820 )     —    
    


 

  


 


Net Change in Cash and Cash Equivalents

     6,425       —        6,425       —    

Cash and Cash Equivalents at Beginning of Period

     62,695       —        62,695       —    
    


 

  


 


Cash and Cash Equivalents at End of Period

   $ 69,120     $ —      $ 69,120     $ —    
    


 

  


 


 

A-34


Table of Contents

MISSISSIPPI POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

    

MISSISSIPPI

Consolidated


    Eliminations

   

MISSISSIPPI

CORPORATE


   

MISSISSIPPI

TRUST II


Current Assets:

                              

Cash and cash equivalents

   $ 69,120     $ —       $ 69,120     $ —  

Receivables —  

                              

Customer accounts receivable

     30,514       —         30,514       —  

Unbilled revenues

     19,278       —         19,278       —  

Under recovered regulatory clause revenues

     14,607       —         14,607       —  

Other accounts and notes receivable

     8,088       —         8,088       —  

Affiliated companies

     12,160       —         12,160       —  

Accumulated provision for uncollectible accounts

     (897 )     —         (897 )     —  

Fossil fuel stock, at average cost

     25,233       —         25,233       —  

Materials and supplies, at average cost

     23,670       —         23,670       —  

Assets from risk management activities

     2,857       —         2,857       —  

Vacation pay

     5,766       —         5,766       —  

Prepaid income taxes

     27,415       —         27,415       —  

Prepaid expenses

     4,517       —         4,517       —  
    


 


 


 

Total current assets

     242,328       —         242,328       —  
    


 


 


 

Property, Plant, and Equipment:

                              

In service

     1,841,668       —         1,841,668       —  

Less accumulated provision for depreciation

     672,730       —         672,730       —  
    


 


 


 

       1,168,938       —         1,168,938       —  

Construction work in progress

     25,844       —         25,844       —  
    


 


 


 

Total property, plant, and equipment

     1,194,782       —         1,194,782       —  
    


 


 


 

Other property and investments

     2,750       (37,164 )     3,832       36,082
    


 


 


 

Deferred Charges and Other Assets:

                              

Deferred charges related to income taxes

     12,125       —         12,125       —  

Prepaid pension costs

     18,167       —         18,167       —  

Unamortized debt issuance expense

     6,993       —         6,993       —  

Unamortized loss on reacquired debt

     10,201       —         10,201       —  

Prepaid rent

     14,758       —         14,758       —  

Other

     16,280       —         16,280       —  
    


 


 


 

Total deferred charges and other assets

     78,524       —         78,524       —  
    


 


 


 

Total Assets

   $ 1,518,384     $ (37,164 )   $ 1,519,466     $ 36,082
    


 


 


 

 

A-35


Table of Contents

MISSISSIPPI POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     MISSISSIPPI
Consolidated


   Eliminations

    MISSISSIPPI
CORPORATE


   MISSISSIPPI
TRUST II


Current Liabilities:

                            

Securities due within one year

   $ 80,000    $ —       $ 80,000    $ —  

Accounts payable—  

                            

Affiliated

     21,259      —         21,259      —  

Other

     55,309      —         55,309      —  

Customer deposits

     11,863      —         11,863      —  

Accrued taxes—  

                            

Income taxes

     1,696      —         1,696      —  

Other

     42,834      —         42,834      —  

Accrued interest

     3,223      —         3,223      —  

Accrued vacation pay

     5,766      —         5,766      —  

Accrued compensation

     23,832      —         23,832      —  

Regulatory clauses over recovery

     31,118      —         31,118      —  

Other

     4,867      —         4,867      —  
    

  


 

  

Total current liabilities

     281,767      —         281,767      —  
    

  


 

  

Long-term debt

     202,488      (36,082 )     238,570      —  
    

  


 

  

Mandatorily redeemable preferred securities

     35,000      —         —        35,000
    

  


 

  

Deferred Credits and Other Liabilities:

                            

Accumulated deferred income taxes

     142,088      —         142,088      —  

Deferred credits related to income taxes

     23,279      —         23,279      —  

Accumulated deferred investment tax credits

     19,841      —         19,841      —  

Employee benefit obligations

     54,830      —         54,830      —  

Plant Daniel lease guarantee obligation, at fair value

     14,758      —         14,758      —  

Plant Daniel capacity

     60,300      —         60,300      —  

Other cost of removal obligations

     80,588      —         80,588      —  

Miscellaneous regulatory liabilities

     11,899      —         11,899      —  

Other

     27,248      —         27,248      —  
    

  


 

  

Total deferred credits and other liabilities

     434,831      —         434,831      —  
    

  


 

  

Total liabilities

     954,086      (36,082 )     955,168      35,000
    

  


 

  

Preferred stock

     31,809      —         31,809      —  
    

  


 

  

Common stockholder’s equity

     532,489      (1,082 )     532,489      1,082
    

  


 

  

Total Liabilities and Stockholder’s Equity

   $ 1,518,384    $ (37,164 )   $ 1,519,466    $ 36,082
    

  


 

  

 

A-36


Table of Contents

SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

    

SAVANNAH

Consolidated


    Eliminations

   

SAVANNAH

CORPORATE


   

SAVANNAH

TRUST I


 

Operating Revenues:

                                

Retail sales

   $ 297,745     $ —       $ 297,745     $ —    

Sales for resale—

                                

Non-affiliates

     5,653       —         5,653       —    

Affiliates

     6,499       —         6,499       —    

Other revenues

     4,158       —         4,158       —    
    


 


 


 


Total operating revenues

     314,055       —         314,055       —    
    


 


 


 


Operating Expenses:

                                

Fuel

     55,308       —         55,308       —    

Purchased power—

                                

Non-affiliates

     5,713       —         5,713       —    

Affiliates

     83,792       —         83,792       —    

Other operations

     56,823       —         56,823       —    

Maintenance

     26,798       —         26,798       —    

Depreciation and amortization

     20,499       —         20,499       —    

Taxes other than income taxes

     14,665       —         14,665       —    
    


 


 


 


Total operating expenses

     263,598       —         263,598       —    
    


 


 


 


Operating Income

     50,457       —         50,457       —    

Other Income and (Expense):

                                

Interest income

     290       (2,825 )     290       2,825  

Interest expense, net of amounts capitalized

     (9,590 )     2,825       (12,415 )     —    

Distributions on mandatorily redeemable preferred securities

     (2,740 )     —         —         (2,740 )

Other income (expense), net

     (502 )     —         (502 )     —    
    


 


 


 


Total other income and (expense)

     (12,542 )     —         (12,627 )     85  
    


 


 


 


Earnings Before Income Taxes

     37,915       —         37,830       85  

Income taxes

     15,108       —         15,108       —    
    


 


 


 


Net Income

   $ 22,807     $ —       $ 22,722     $ 85  
    


 


 


 


 

A-37


Table of Contents

SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

SAVANNAH

Consolidated


    Eliminations

  

SAVANNAH

CORPORATE


   

SAVANNAH

TRUST I


 

Operating Activities:

                               

Net income

   $ 22,807     $ —      $ 22,722     $ 85  

Adjustments to reconcile net income to net cash provided from operating activities—

                               

Depreciation and amortization

     22,587       —        22,587       —    

Deferred income taxes and investment tax credits, net

     793       —        793       —    

Pension, postretirement, and other employee benefits

     6,215       —        6,215       —    

Tax benefit of stock options

     884       —        884       —    

Other, net

     4,015       —        4,015       —    

Changes in certain current assets and liabilities—

                               

Receivables, net

     1,189       —        1,189       —    

Fossil fuel stock

     (323 )     —        (323 )     —    

Materials and supplies

     516       —        516       —    

Other current assets

     4,057       —        4,057       —    

Accounts payable

     3,713       —        3,713       —    

Accrued taxes

     (983 )     —        (983 )     —    

Other current liabilities

     (5,311 )     —        (5,311 )     —    
    


 

  


 


Net cash provided from operating activities

     60,159       —        60,074       85  
    


 

  


 


Investing Activities:

                               

Gross property additions

     (40,242 )     —        (40,242 )     —    

Other

     895       —        980       (85 )
    


 

  


 


Net cash used for investing activities

     (39,347 )     —        (39,262 )     (85 )
    


 

  


 


Financing Activities:

                               

Decrease in notes payable, net

     (2,897 )     —        (2,897 )     —    

Proceeds—

                               

Pollution control bonds

     13,870       —        13,870       —    

Senior notes

     60,000       —        60,000       —    

Capital contributions from parent company

     6,757       —        6,757       —    

Redemptions—

                               

Pollution control bonds

     (13,870 )     —        (13,870 )     —    

Senior notes

     (20,000 )     —        (20,000 )     —    

Other long-term debt

     (5,541 )     —        (5,541 )     —    

Payment of common stock dividends

     (23,000 )     —        (23,000 )     —    

Other

     (2,166 )     —        (2,166 )     —    
    


 

  


 


Net cash provided from financing activities

     13,153       —        13,153       —    
    


 

  


 


Net Change in Cash and Cash Equivalents

     33,965       —        33,965       —    

Cash and Cash Equivalents at Beginning of Period

     3,978       —        3,978       —    
    


 

  


 


Cash and Cash Equivalents at End of Period

   $ 37,943     $ —      $ 37,943     $  —    
    


 

  


 


 

A-38


Table of Contents

SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     SAVANNAH
Consolidated


    Eliminations

    SAVANNAH
CORPORATE


    SAVANNAH
TRUST I


Current Assets:

                              

Cash and cash equivalents

   $ 37,943     $ —       $ 37,943     $ —  

Receivables—  

                              

Customer accounts receivable

     19,674       —         19,674       —  

Unbilled revenues

     11,288       —         11,288       —  

Other accounts and notes receivable

     1,138       —         1,138       —  

Affiliated companies

     4,872       —         4,872       —  

Accumulated provision for uncollectible accounts

     (641 )     —         (641 )     —  

Fossil fuel stock, at average cost

     8,652       —         8,652       —  

Materials and supplies, at average cost

     9,070       —         9,070       —  

Prepaid income taxes

     24,419       —         24,419       —  

Prepaid expenses

     1,377       —         1,377       —  

Other

     623       —         623       —  
    


 


 


 

Total current assets

     118,415       —         118,415       —  
    


 


 


 

Property, Plant, and Equipment:

                              

In service

     912,504       —         912,504       —  

Less accumulated provision for depreciation

     402,394       —         402,394       —  
    


 


 


 

       510,110       —         510,110       —  

Construction work in progress

     14,121       —         14,121       —  
    


 


 


 

Total property, plant, and equipment

     524,231       —         524,231       —  
    


 


 


 

Other property and investments

     2,248       (42,474 )     3,485       41,237
    


 


 


 

Deferred charges and other Assets:

                              

Deferred charges related to income taxes

     9,611       —         9,611       —  

Cash surrender value of life insurance for deferred compensation plans

     23,866       —         23,866       —  

Unamortized debt issuance expense

     5,652       —         5,652       —  

Unamortized loss on reacquired debt

     7,488       —         7,488       —  

Other

     18,410       —         18,410       —  
    


 


 


 

Total deferred charges and other assets

     65,027       —         65,027       —  
    


 


 


 

Total Assets

   $ 709,921     $ (42,474 )   $ 711,158     $ 41,237
    


 


 


 

 

A-39


Table of Contents

SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

SAVANNAH

Consolidated


   Eliminations

   

SAVANNAH

CORPORATE


  

SAVANNAH

TRUST I


Current Liabilities:

                            

Securities due within one year

   $ 40,910    $ (41,237 )   $ 42,147    $ 40,000

Accounts payable —

                            

Affiliated

     13,797      —         13,797      —  

Other

     13,147      —         13,147      —  

Customer deposits

     6,922      —         6,922      —  

Accrued taxes —

                            

Income taxes

     1,172      —         1,172      —  

Other

     1,473      —         1,473      —  

Accrued interest

     2,802      —         2,802      —  

Accrued vacation pay

     2,530      —         2,530      —  

Accrued compensation

     5,652      —         5,652      —  

Other

     5,107      —         5,107      —  
    

  


 

  

Total current liabilities

     93,512      (41,237 )     94,749      40,000
    

  


 

  

Long-term debt

     222,493      —         222,493      —  
    

  


 

  

Deferred Credits and Other Liabilities:

                            

Accumulated deferred income taxes

     83,852      —         83,852      —  

Deferred credits related to income taxes

     9,804      —         9,804      —  

Accumulated deferred investment tax credits

     8,625      —         8,625      —  

Employee benefit obligations

     39,833      —         39,833      —  

Other cost of removal obligations

     36,843      —         36,843      —  

Miscellaneous regulatory liabilities

     12,932      —         12,932      —  

Other

     15,735      —         15,735      —  
    

  


 

  

Total deferred credits and other liabilities

     207,624      —         207,624      —  
    

  


 

  

Total liabilities

     523,629      (41,237 )     524,866      40,000
    

  


 

  

Common stockholder's equity

     186,292      (1,237 )     186,292      1,237
    

  


 

  

Total Liabilities and Stockholder's Equity

   $ 709,921    $ (42,474 )   $ 711,158    $ 41,237
    

  


 

  

 

A-40


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

 

     SOUTHERN
POWER
Consolidated


    Eliminations

    SOUTHERN
POWER
CORPORATE


    SOUTHERN
COMPANY
FLORIDA


   SOUTHERN
COMPANY
JET PORT


   SOUTHERN
COMPANY
KLONDIKE


    SOUTHERN
COMPANY
McLEOD


    SOUTHERN
COMPANY
CHEROKEE


Operating Revenues:

                                                            

Sales for resale—  

                                                            

Non-affiliates

   $ 278,559     $ —       $ 268,877     $ 9,682    $ —      $ —       $ —       $ —  

Affiliates

     312,586       —         312,586       —        —        —         —         —  

Contract termination

     80,000       —         80,000       —        —        —         —         —  

Other revenues

     10,635       —         10,615       20      —        —         —         —  
    


 


 


 

  

  


 


 

Total operating revenues

     681,780       —         672,078       9,702      —        —         —         —  
    


 


 


 

  

  


 


 

Operating Expenses:

                                                            

Fuel

     115,256       —         115,256       —        —        —         —         —  

Purchased power—  

                                                            

Non-affiliates

     61,234       —         61,234       —        —        —         —         —  

Affiliates

     124,067       —         124,067       —        —        —         —         —  

Other operations

     50,852       —         49,772       1,080      —        —         —         —  

Maintenance

     11,389       —         11,173       216      —        —         —         —  

Depreciation and amortization

     39,012       —         37,916       1,096      —        —         —         —  

Taxes other than income taxes

     6,665       —         6,619       —        —        3       43       —  
    


 


 


 

  

  


 


 

Total operating expenses

     408,475       —         406,037       2,392      —        3       43       —  
    


 


 


 

  

  


 


 

Operating Income

     273,305       —         266,041       7,310      —        (3 )     (43 )     —  

Other Income and (Expense):

                                                            

Interest income

     435       —         428       7      —        —         —         —  

Equity in earnings of unconsolidated subsidiaries

     —         (4,449 )     4,449       —        —        —         —         —  

Interest expense, net of amounts capitalized

     (31,708 )     —         (31,708 )     —        —        —         —         —  

Other income (expense), net

     (2,029 )     —         (2,029 )     —        —        —         —         —  
    


 


 


 

  

  


 


 

Total other income and (expense)

     (33,302 )     (4,449 )     (28,860 )     7      —        —         —         —  
    


 


 


 

  

  


 


 

Earnings Before Income Taxes

     240,003       (4,449 )     237,181       7,317      —        (3 )     (43 )     —  

Income taxes

     85,221       —         82,399       2,822      —        —         —         —  
    


 


 


 

  

  


 


 

Earnings Before Cumulative Effect of Accounting Change

     154,782       (4,449 )     154,782       4,495      —        (3 )     (43 )     —  

Cumulative effect of accounting change—less income taxes of $231

     367       —         367       —        —        —         —         —  
    


 


 


 

  

  


 


 

Net Income

   $ 155,149     $ (4,449 )   $ 155,149     $ 4,495    $ —      $ (3 )   $ (43 )   $ —  
    


 


 


 

  

  


 


 

 

A-41


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

     SOUTHERN
POWER
Consolidated


    Eliminations

   

SOUTHERN

POWER

CORPORATE


   

SOUTHERN

COMPANY

FLORIDA


   

SOUTHERN

COMPANY

JET PORT


  

SOUTHERN

COMPANY

KLONDIKE


   

SOUTHERN

COMPANY

McLEOD


   

SOUTHERN

COMPANY

CHEROKEE


Operating Activities:

                                                             

Net income

   $ 155,149     $ (4,449 )   $ 155,149     $ 4,495     $ —      $ (3 )   $ (43 )   $ —  

Adjustments to reconcile net income to net cash provided from operating activities —  

                                                             

Depreciation and amortization

     43,712       —         42,616       1,096       —        —         —         —  

Deferred income taxes and investment tax credits, net

     22,521       —         22,521       —         —        —         —         —  

Deferred capacity revenues

     9,997       —         9,997       —         —        —         —         —  

Equity in earnings of unconsolidated subsidiaries

     —         4,449       (4,449 )     —         —        —         —         —  

Tax benefit of stock options

     130       —         130       —         —        —         —         —  

Settlement of interest rate hedges

     (93,298 )     —         (93,298 )     —         —        —         —         —  

Other, net

     (25,787 )     —         (25,503 )     (284 )     —        —         —         —  

Changes in certain current assets and liabilities —  

                                                             

Receivables, net

     (7,008 )     —         (3,622 )     (3,386 )     —        —         —         —  

Fossil fuel stock

     5,232       —         5,232       —         —        —         —         —  

Materials and supplies

     (1,570 )     —         (1,063 )     (507 )     —        —         —         —  

Other current assets

     (9,675 )     —         (9,791 )     116       —        —         —         —  

Accounts payable

     32,694       —         28,797       3,897       —        —         —         —  

Accrued taxes

     (6,939 )     —         (9,761 )     2,822       —        —         —         —  

Accrued interest

     9,299       —         9,299       —         —        —         —         —  

Other current liabilities

     236       —         236       —         —        —         —         —  
    


 


 


 


 

  


 


 

Net cash provided from operating activities

     134,693       —         126,490       8,249       —        (3 )     (43 )     —  
    


 


 


 


 

  


 


 

Investing Activities:

                                                             

Gross property additions

     (344,362 )     —         (259,423 )     (80,434 )     —        —         (4,505 )     —  

Investment in unconsolidated subsidiaries

     —         76,402       (76,402 )     —         —        —         —         —  

Change in construction payables, net

     (16,931 )     —         (16,931 )     —         —        —         —         —  
    


 


 


 


 

  


 


 

Net cash used for investing activities

     (361,293 )     76,402       (352,756 )     (80,434 )     —        —         (4,505 )     —  
    


 


 


 


 

  


 


 

Financing Activities:

                                                             

Decrease in notes payable, net—affiliated

     (20,488 )     —         (20,488 )     —         —        —         —         —  

Increase in notes payable, net

     114,347       —         114,347       —         —        —         —         —  

Proceeds —  

                                                             

Senior notes

     575,000       —         575,000       —         —        —         —         —  

Capital contributions from parent company

     5,953       (76,402 )     5,953       71,851       —        3       4,548       —  

Retirements —  

                                                             

Other long-term debt

     (379,640 )     —         (379,640 )     —         —        —         —         —  

Capital distributions to parent company

     (77,000 )     —         (77,000 )     —         —        —         —         —  

Other

     (8,248 )     —         (8,248 )     —         —        —         —         —  
    


 


 


 


 

  


 


 

Net cash provided from financing activities

     209,924       (76,402 )     209,924       71,851       —        3       4,548       —  
    


 


 


 


 

  


 


 

Net Change in Cash and Cash Equivalents

     (16,676 )     —         (16,342 )     (334 )     —        —         —         —  

Cash and Cash Equivalents at Beginning of Period

     19,474       —         16,342       3,128       1      1       1       1
    


 


 


 


 

  


 


 

Cash and Cash Equivalents at End of Period

   $ 2,798     $ —       $ —       $ 2,794     $ 1    $ 1     $ 1     $ 1
    


 


 


 


 

  


 


 

 

A-42


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

SOUTHERN

POWER

Consolidated


    Eliminations

   

SOUTHERN

POWER

CORPORATE


   

SOUTHERN

COMPANY

FLORIDA


   

SOUTHERN

COMPANY

JET PORT


  

SOUTHERN

COMPANY

KLONDIKE


  

SOUTHERN

COMPANY

McLEOD


  

SOUTHERN

COMPANY

CHEROKEE


Current Assets:

                                                           

Cash and cash equivalents

   $ 2,798     $     $     $ 2,794     $ 1    $ 1    $ 1    $ 1

Receivables —  

                                                           

Customer accounts receivable

     10,772       —         7,093       3,679       —        —        —        —  

Affiliated companies

     14,130       —         14,423       (293 )     —        —        —        —  

Accumulated provision for uncollectible accounts

     (350 )     —         (350 )     —         —        —        —        —  

Other accounts receivable

     270       —         270       —         —        —        —        —  

Fossil fuel stock, at average cost

     5,798       —         5,798       —         —        —        —        —  

Materials and supplies, at average cost

     8,123       —         7,616       507       —        —        —        —  

Prepaid income taxes

     11,222       —         11,222       —         —        —        —        —  

Prepaid expenses

     2,528       —         2,644       (116 )     —        —        —        —  

Assets from risk management activities

     1,154       —         1,154       —         —        —        —        —  

Other

     20       —         20       —         —        —        —        —  
    


 


 


 


 

  

  

  

Total current assets

     56,465       —         49,890       6,571       1      1      1      1
    


 


 


 


 

  

  

  

Property, Plant, and Equipment:

                                                           

In service

     1,831,139       —         1,633,261       197,878       —        —        —        —  

Less accumulated provision for depreciation

     60,005       —         58,909       1,096       —        —        —        —  
    


 


 


 


 

  

  

  

       1,771,134       —         1,574,352       196,782       —        —        —        —  

Construction work in progress

     504,097       —         496,600       (1,338 )     3,714      612      4,505      4
    


 


 


 


 

  

  

  

Total property, plant, and equipment

     2,275,231       —         2,070,952       195,444       3,714      612      4,505      4
    


 


 


 


 

  

  

  

Other Property and Investments

     —         (205,423 )     205,423       —         —        —        —        —  
    


 


 


 


 

  

  

  

Deferred Charges and Other Assets:

                                                           

Unamortized debt issuance expense

     18,315       —         18,315       —         —        —        —        —  

Accumulated deferred income taxes

     21,911       —         21,911       —         —        —        —        —  

Prepaid maintenance expenses

     21,728       —         21,728       —         —        —        —        —  

Prepaid transmission expenses—affiliated

     12,790       —         12,790       —         —        —        —        —  

Other

     2,845       —         1,339       1,473       —        —        —        33
    


 


 


 


 

  

  

  

Total deferred charges and other assets

     77,589       —         76,083       1,473       —        —        —        33
    


 


 


 


 

  

  

  

Total Assets

   $ 2,409,285     $ (205,423 )   $ 2,402,348     $ 203,488     $ 3,715    $ 613    $ 4,506    $ 38
    


 


 


 


 

  

  

  

 

A-43


Table of Contents

SOUTHERN POWER COMPANY AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

SOUTHERN

POWER

Consolidated


    Eliminations

   

SOUTHERN

POWER

CORPORATE


   

SOUTHERN

COMPANY

FLORIDA


  

SOUTHERN

COMPANY

JET PORT


   

SOUTHERN

COMPANY

KLONDIKE


   

SOUTHERN

COMPANY

McLEOD


   

SOUTHERN

COMPANY

CHEROKEE


Current Liabilities:

                                                             

Securities due within one year

   $ 200     $ —       $ 200     $ —      $ —       $ —       $ —       $ —  

Notes payable

     114,347       —         114,347       —        —         —         —         —  

Accounts payable —  

                                                             

Affiliated

     51,442       —         47,724       3,718      —         —         —         —  

Other

     6,591       —         6,250       341      —         —         —         —  

Accrued taxes —  

                                                             

Income taxes

     —         —         —         —        —         —         —         —  

Other

     1,289       —         (1,565 )     2,854      —         —         —         —  

Accrued interest

     30,012       —         30,012       —        —         —         —         —  

Other

     489       —         489       —        —         —         —         —  
    


 


 


 

  


 


 


 

Total current liabilities

     204,370       —         197,457       6,913      —         —         —         —  
    


 


 


 

  


 


 


 

Long-Term Debt:

                                                             

Senior notes

                                                             

6.25% due 2012

     575,000       —         575,000       —        —         —         —         —  

4.875% due 2015

     575,000       —         575,000       —        —         —         —         —  

Other long-term debt

     1,685       —         1,685       —        —         —         —         —  

Unamortized debt premium (discount), net

     (2,573 )     —         (2,573 )     —        —         —         —         —  
    


 


 


 

  


 


 


 

Long-term debt

     1,149,112       —         1,149,112       —        —         —         —         —  
    


 


 


 

  


 


 


 

Deferred Credits and Other Liabilities:

                                                             

Deferred capacity revenues —  

                                                             

Affiliated

     28,799       —         28,799       —        —         —         —         —  

Other

     256       —         256       —        —         —         —         —  

Other —  

                                                             

Affiliated

     15,061       —         15,061       —        —         —         —         —  

Other

     211       —         187       24      —         —         —         —  
    


 


 


 

  


 


 


 

Total deferred credits and other liabilities

     44,327       —         44,303       24      —         —         —         —  
    


 


 


 

  


 


 


 

Total liabilities

     1,397,809       —         1,390,872       6,937      —         —         —         —  
    


 


 


 

  


 


 


 

Common stockholder’s equity:

                                                             

Common stock, par value $0.01 per share —  

                                                             

Authorized—1,000,000 shares

                                                             

Outstanding—1,000 shares

                                                             

Paid-in capital

     850,312       (200,927 )     850,312       192,006      3,716       618       4,549       38

Retained earnings

     217,626       (4,496 )     217,626       4,545      (1 )     (5 )     (43 )     —  

Accumulated other comprehensive income (loss)

     (56,462 )     —         (56,462 )     —        —         —         —         —  
    


 


 


 

  


 


 


 

Total common stockholder’s equity

     1,011,476       (205,423 )     1,011,476       196,551      3,715       613       4,506       38
    


 


 


 

  


 


 


 

Total Liabilities and Stockholder’s Equity

   $ 2,409,285     $ (205,423 )   $ 2,402,348     $ 203,488    $ 3,715     $ 613     $ 4,506     $ 38
    


 


 


 

  


 


 


 

 

A-44


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

   

SOUTHERN

HOLDINGS

Consolidated


    Eliminations

   

SOUTHERN

HOLDINGS


   

SE FINANCE

CAPITAL

CORP II


   

CAPITAL

FUNDING


    SCES LLC

   

ALABAMA

SYNFUEL

ENERGY


   

SYNFUEL

SERVICES


  ERA

   

ELECTRO

TECHNOLOGIES


    SCRS

    SERC

Operating Revenues:

                                                                                           

Retail sales

  $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —     $ —       $ —       $ —       $ —  

Sales for resale —  

                                                                                           

Non-affiliates

    —         —         —         —         —         —         —         —       —         —         —         —  

Affiliates

    819       —         —         —         —         450       —         —       —         —         369       —  

Other electric revenues

    —         —         —         —         —         —         —         —       —         —         —         —  

Other revenues

    142,926       —         —         —         —         49,449       —         85,244     7,928       —         305       —  
   


 


 


 


 


 


 


 

 


 


 


 

Total operating revenues

    143,745       —         —         —         —         49,899       —         85,244     7,928       —         674       —  
   


 


 


 


 


 


 


 

 


 


 


 

Operating Expenses:

                                                                                           

Fuel

    —         —         —         —         —         —         —         —       —         —         —         —  

Purchased power —  

                                                                                           

Non-affiliates

    —         —         —         —         —         —         —         —       —         —         —         —  

Affiliates

    —         —         —         —         —         —         —         —       —         —         —         —  

Other operations

    151,035       —         23       5,187       62       47,607       30,368       65,396     1,206       57       1,129       —  

Maintenance

    —         —         —         —         —         —         —         —       —         —         —         —  

Depreciation and amortization

    16,928       —         —         1,363       10,631       1,157       1,896       —       1,881       —         —         —  

Taxes other than income taxes

    —         —         —         —         —         —         —         —       —         —         —         —  
   


 


 


 


 


 


 


 

 


 


 


 

Total operating expenses

    167,963       —         23       6,550       10,693       48,764       32,264       65,396     3,087       57       1,129       —  
   


 


 


 


 


 


 


 

 


 


 


 

Operating Income

    (24,218 )     —         (23 )     (6,550 )     (10,693 )     1,135       (32,264 )     19,848     4,841       (57 )     (455 )     —  

Other Income and (Expense):

                                                                                           

Allowance for equity funds used during construction

    —         —         —         —         —         —         —         —       —         —         —         —  

Interest income

    88,239       (480 )     313       380       86,841       811       249       73     23       5       24       —  

Equity in earnings (losses) of unconsolidated subsidiaries

    (93,282 )     (81,002 )     81,002       (40,742 )     —         —         (50,967 )     —       —         (1,573 )     —         —  

Leveraged lease income

    65,778       —         —         65,778       —         —         —         —       —         —         —         —  

Interest expense, net of amounts capitalized

    (38,107 )     480       (117 )     (17,044 )     (21,085 )     (164 )     (49 )     —       (118 )     —         (10 )     —  

Distributions on mandatorily redeemable preferred securities

    (64,083 )     —         —         —         (64,083 )     —         —         —       —         —         —         —  

Preferred dividends of subsidiaries

    —         —         —         —         —         —         —         —       —         —         —         —  

Other income (expense), net

    1,630       —         —         (198 )     —         1,828       —         —       —         —         —         —  
   


 


 


 


 


 


 


 

 


 


 


 

Total other income and (expense)

    (39,825 )     (81,002 )     81,198       8,174       1,673       2,475       (50,767 )     73     (95 )     (1,568 )     14       —  
   


 


 


 


 


 


 


 

 


 


 


 

Earnings From Continuing Operations Before Income Taxes

    (64,043 )     (81,002 )     81,175       1,624       (9,020 )     3,610       (83,031 )     19,921     4,746       (1,625 )     (441 )     —  

Income taxes

    (145,157 )     —         61       (50,543 )     (3,157 )     1,254       (101,734 )     7,759     1,945       (569 )     (173 )     —  
   


 


 


 


 


 


 


 

 


 


 


 

Earnings From Continuing Operations Before Cumulative Effect of Accounting Change

    81,114       (81,002 )     81,114       52,167       (5,863 )     2,356       18,703       12,162     2,801       (1,056 )     (268 )     —  

Cumulative effect of accounting change—  less income taxes of less than $1

    —         —         —         —         —         —         —         —       —         —         —         —  
   


 


 


 


 


 


 


 

 


 


 


 

Consolidated Net Income

  $ 81,114     $ (81,002 )   $ 81,114     $ 52,167     $ (5,863 )   $ 2,356     $ 18,703     $ 12,162   $ 2,801     $ (1,056 )   $ (268 )   $
   


 


 


 


 


 


 


 

 


 


 


 

 

A-45


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    SOUTHERN
HOLDINGS
Consolidated


    Eliminations

    SOUTHERN
HOLDINGS


    CAPITAL
CORP II


    CAPITAL
FUNDING


    SCES LLC

 

Operating Activities:

                                               

Consolidated net income

  $ 81,114     $ (81,002 )   $ 81,114     $ 52,167     $ (5,863 )   $ 2,356  

Adjustments to reconcile consolidated neta income to net cash provided from (used for) operating activities

                                               

Depreciation and amortization

    16,928       —         —         1,363       10,631       1,157  

Deferred income taxes and investment tax credits

    82,485       —         —         83,171       —         (699 )

Plant Daniel capacity

    —         —         —         —         —         —    

Deferred capacity revenues

    —         —         —         —         —         —    

Equity in losses of unconsolidated subsidiaries

    93,282       81,002       (81,002 )     40,742       —         —    

Leveraged lease income

    (65,778 )     —         —         (65,778 )     —         —    

Pension, postretirement, and other employee benefits

    149       —         —         —         —         149  

Tax benefit of stock options

    61       —         61       —         —         —    

Settlement of interest rate hedges

    —         —         —         —         —         —    

Other, net

    20,207       —         2,446       (7,029 )     —         15,332  

Changes in certain current assets and liabilities —

                                               

Receivables, net

    (29,341 )     (224 )     137       (24,405 )     1,891       (1,043 )

Fossil fuel stock

    —         —         —         —         —         —    

Materials and supplies

    7,152       —         —         —         —         7,152  

Other current assets

    14,309       —         (2,503 )     (2,836 )     7,228       952  

Accounts payable

    (11,207 )     —         5       (2,743 )     (18 )     (3,554 )

Accrued taxes

    (4,536 )     —         69       415       (3,349 )     (1,041 )

Other current liabilities

    (1,975 )     224       25       (1,750 )     (91 )     (202 )
   


 


 


 


 


 


Net cash provided from (used for) operating activities of continuing operations

    202,850       —         352       73,317       10,429       20,559  
   


 


 


 


 


 


Investing Activities:

                                               

Gross property additions

    (10,177 )     —         —         —         —         (599 )

Investment in unconsolidated subsidiaries

    (72,774 )     19,185       (19,185 )     (6,057 )     —         —    

Return of capital from unconsolidated subsidiaries

    —         (98,240 )     —         33,000       15,940       —    

Cost of removal net of salvage

    —         —         —         —         —         —    

Other

    416,857       (1,000 )     (600 )     1,600       430,339       (9,982 )
   


 


 


 


 


 


Net cash provided from (used for) investing activities of continuing operations

    333,906       (80,055 )     (19,785 )     (28,543 )     446,279       (10,581 )
   


 


 


 


 


 


Financing Activities:

                                               

Increase (decrease) in notes payable, net

    (3,597 )     —         —         (346 )     —         (6,501 )

Proceeds —

                                               

Long-term debt

    3,500       1,000       —         —         —         —    

Mandatorily redeemable preferred securities

    —         —         —         —         —         —    

Preferred stock

    —         —         —         —         —         —    

Common Stock

    —         —         —         —         —         —    

Capital contributions from parent company

    3,379       (19,185 )     3,379       —         1       278  

Redemptions —

            —         —         —         —         —    

Long-term debt

    (60,469 )     —         —         (35,469 )     (25,000 )     —    

Mandatorily redeemable preferred securities

    (394,514 )     —         —         —         (394,514 )     —    

Preferred stock

    —         —         —         —         —         —    

Common Stock Repurchased

    —         —         —         —         —         —    

Capital distributions to parent company

    —         —         —         —         —         —    

Payment of preferred stock dividends

    —         —         —         —         —         —    

Payment of common stock dividends

    (60,000 )     98,240       (60,000 )     (33,000 )     (15,940 )     —    

Other

    —         —         —         —         —         —    
   


 


 


 


 


 


Net cash provided from (used for) financing activities of continuing operations

    (511,701 )     80,055       (56,621 )     (68,815 )     (435,453 )     (6,223 )
   


 


 


 


 


 


Net Change in Cash and Cash Equivalents

    25,055       —         22,175       47       5,315       3,754  

Cash and Cash Equivalents at Beginning of Period

    90,363       —         3,973       37,412       1,932       (103 )
   


 


 


 


 


 


Cash and Cash Equivalents at End of Period

  $ 115,418     $ —       $ 26,148     $ 37,459     $ 7,247     $ 3,651  
   


 


 


 


 


 


 

    ALABAMA
SYNFUEL
ENERGY


    SYNFUEL
SERVICES


    ERA

    ELECTRO
TECHNOLOGIES


    SCRS

    SERC

 

Operating Activities:

                                               

Consolidated net income

  $ 18,703     $ 12,162     $ 2,801     $ (1,056 )   $ (268 )   $ —    

Adjustments to reconcile consolidated neta income to net cash provided from (used for) operating activities —

                                               

Depreciation and amortization

    1,896       —         1,881       —         —         —    

Deferred income taxes and investment tax credits

    —         —         —         —         13       —    

Plant Daniel capacity

    —         —         —         —         —         —    

Deferred capacity revenues

    —         —         —         —         —         —    

Equity in losses of unconsolidated subsidiaries

    50,967       —         —         1,573       —         —    

Leveraged lease income

    —         —         —         —         —         —    

Pension, postretirement, and other employee benefits

    —         —         —         —         —         —    

Tax benefit of stock options

    —         —         —         —         —         —    

Settlement of interest rate hedges

    —         —         —         —         —         —    

Other, net

    8,439       —         —         —         1,019       —    

Changes in certain current assets and liabilities —

                                               

Receivables, net

    —         (5,296 )     18       (1 )     (126 )     (292 )

Fossil fuel stock

    —         —         —         —         —         —    

Materials and supplies

    —         —         —         —         —         —    

Other current assets

    11,664       —         (349 )     94       59       —    

Accounts payable

    (5,285 )     —         (98 )     (96 )     219       363  

Accrued taxes

    302       (897 )     (17 )     (18 )     —         —    

Other current liabilities

    9       —         (233 )     —         43       —    
   


 


 


 


 


 


Net cash provided from (used for) operating activities of continuing operations

    86,695       5,969       4,003       496       959       71  
   


 


 


 


 


 


Investing Activities:

                                               

Gross property additions

    —         —         (3,000 )     —         (6,578 )     —    

Investment in unconsolidated subsidiaries

    (50,967 )     —         —         (15,750 )     —         —    

Return of capital from unconsolidated subsidiaries

    34,750       14,050       500       —         —         —    

Cost of removal net of salvage

    —         —         —         —         —         —    

Other

    —         —         —         —         (3,500 )     —    
   


 


 


 


 


 


Net cash provided from (used for) investing activities of continuing operations

    (16,217 )     14,050       (2,500 )     (15,750 )     (10,078 )     —    
   


 


 


 


 


 


Financing Activities:

                                               

Increase (decrease) in notes payable, net

    —         —         —         —         3,250       —    

Proceeds —

                                               

Long-term debt

    (1,000 )     —         —         —         3,500       —    

Mandatorily redeemable preferred securities

    —         —         —         —         —         —    

Preferred stock

    —         —         —         —         —         —    

Common Stock

    —         —         —         —         —         —    

Capital contributions from parent company

    —         518       120       15,750       2,518       —    

Redemptions —

    —         —         —         —         —         —    

Long-term debt

    —         —         —         —         —         —    

Mandatorily redeemable preferred securities

    —         —         —         —         —         —    

Preferred stock

    —         —         —         —         —         —    

Common Stock Repurchased

    —         —         —         —         —         —    

Capital distributions to parent company

    —         —         —         —         —         —    

Payment of preferred stock dividends

    —         —         —         —         —         —    

Payment of common stock dividends

    (34,750 )     (14,050 )     (500 )     —         —         —    

Other

    —         —         —         —         —         —    
   


 


 


 


 


 


Net cash provided from (used for) financing activities of continuing operations

    (35,750 )     (13,532 )     (380 )     15,750       9,268       —    
   


 


 


 


 


 


Net Change in Cash and Cash Equivalents

    (6,487 )     (923 )     450       498       151       75  
   


 


 


 


 


 


Cash and Cash Equivalents at Beginning of Period

    40,648       4,367       1,428       706       —         —    
   


 


 


 


 


 


Cash and Cash Equivalents at End of Period

  $ 34,161     $ 3,444     $ 1,878     $ 1,204     $ 151     $ 75  
   


 


 


 


 


 


 

A-46


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    SOUTHERN
HOLDINGS
Consolidated


    Eliminations

    SOUTHERN
HOLDINGS


  SE FINANCE
CAPITAL
CORP II


  CAPITAL
FUNDING


    SCES LLC

    ALABAMA
SYNFUEL
ENERGY


  SYNFUEL
SERVICES


  ERA

  ELECTRO
TECHNOLOGIES


    SCRS

  SERC

Current Assets:

                                                                                 

Cash and cash equivalents

  $ 115,418     $ —       $ 26,148   $ 37,459   $ 7,247     $ 3,651     $ 34,161   $ 3,444   $ 1,878   $ 1,204     $ 151   $ 75

Receivables —  

                                                                                 

Customer accounts receivable

    14,218       —         —       —       2       3,917       —       9,386     883     —         30     —  

Unbilled revenues

    —         —         —       —       —         —         —       —       —       —         —       —  

Under recovered regulatory clause revenues

    —         —         —       —       —         —         —       —       —       —         —       —  

Other accounts and notes receivable

    35,495       —         323     29,328     10       5,810       —       —       —       —         24     —  

Affiliated companies

    26,662       (93 )     1,469     227     21,166       3,491       31     5     1     —         72     293

Accumulated provision for uncollectible accounts

    (228 )     —         —       —       —         (228 )     —       —       —       —         —       —  

Fossil fuel stock, at average cost

    —         —         —       —       —         —         —       —       —       —         —       —  

Vacation pay

    —         —         —       —       —         —         —       —       —       —         —       —  

Materials and supplies, at average cost

    1,827       —         —       —       —         1,827       —       —       —       —         —       —  

Prepaid expenses

    (1,494 )     —         2,425     3,180     (9,231 )     1,613       570     —       —       (110 )     59     —  

Other

    —         —         —       —       —         —         —       —       —       —         —       —  
   


 


 

 

 


 


 

 

 

 


 

 

Total current assets

    191,898       (93 )     30,365     70,194     19,194       20,081       34,762     12,835     2,762     1,094       336     368
   


 


 

 

 


 


 

 

 

 


 

 

Property, Plant, and Equipment:

                                                                                 

In service

    17,020       —         —       —       —         5,715       —       —       9,913     —         1,392     —  

Less accumulated depreciation

    6,955       —         —       —       —         2,035       —       —       4,920     —         —       —  
   


 


 

 

 


 


 

 

 

 


 

 

      10,065       —         —       —       —         3,680       —       —       4,993     —         1,392     —  

Nuclear fuel, at amortized cost

    —         —         —       —       —         —         —       —       —       —         —       —  

Construction work in progress

    5,186       —         —       —       —         —         —       —       —       —         5,186     —  
   


 


 

 

 


 


 

 

 

 


 

 

Total property, plant, and equipment

    15,251       —         —       —       —         3,680       —       —       4,993     —         6,578     —  
   


 


 

 

 


 


 

 

 

 


 

 

Other Property and Investments:

                                                                                 

Nuclear decommissioning trusts, at fair value

    —         —         —       —       —         —         —       —       —       —         —       —  

Leveraged leases

    837,843       —         —       837,843     —         —         —       —       —       —         —       —  

Equity investments in unconsolidated subsidiaries

    65,710       (255,885 )     255,885     26,672     —         —         22,368     —       —       16,670       —       —  

Other

    1,002,700       (7,099 )     7,099     —       974,044       25,156       —       —       —       —         3,500     —  
                                                                                   
   


 


 

 

 


 


 

 

 

 


 

 

Total other property and investments

    1,906,253       (262,984 )     262,984     864,515     974,044       25,156       22,368     —       —       16,670       3,500     —  
   


 


 

 

 


 


 

 

 

 


 

 

Deferred Charges and Other Assets:

                                                                                 

Deferred charges related to income taxes

    —         —         —       —       —         —         —       —       —       —         —       —  

Prepaid pension costs

    —         —         —       —       —         —         —       —       —       —         —       —  

Unamortized debt issuance expense

    12,189       —         —       2,812     9,377       —         —       —       —       —         —       —  

Unamortized loss on reacquired debt

    —         —         —       —       —         —         —       —       —       —         —       —  

Other

    32,607       —         —       6,305     —         20,256       46     —       6,000     —         —       —  
   


 


 

 

 


 


 

 

 

 


 

 

Total deferred charges and other assets

    44,796       —         —       9,117     9,377       20,256       46     —       6,000     —         —       —  
   


 


 

 

 


 


 

 

 

 


 

 

Total Assets

  $ 2,158,198     $ (263,077 )   $ 293,349   $ 943,826   $ 1,002,615     $ 69,173     $ 57,176   $ 12,835   $ 13,755   $ 17,764     $ 10,414   $ 368
   


 


 

 

 


 


 

 

 

 


 

 

 

A-47


Table of Contents

SOUTHERN COMPANY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands)

 

    

SOUTHERN

HOLDINGS

Consolidated


   Eliminations

   

SOUTHERN

HOLDINGS


 

SE FINANCE

CAPITAL

CORP II


 

CAPITAL

FUNDING


    SCES LLC

 

ALABAMA

SYNFUEL

ENERGY


   

SYNFUEL

SERVICES


  ERA

 

ELECTRO

TECHNOLOGIES


   

SCRS


  SERC

Current Liabilities:

                                                                                 

Securities due within one year

   $ 31,179    $ —       $ —     $ 27,193   $ —       $ 3,986   $ —       $ —     $ —     $ —       $ —     $ —  

Notes payable

     3,250      —         —       —       —         —       —         —       —       —         3,250     —  

Accounts payable —

                                                                                 

Affiliated

     13,680      —         4     706     31       348     3,910       7,018     5     4       1,291     363

Other

     7,178      —         8     1,226     10       5,520     —         —       347     —         67     —  

Customer deposits

     —        —         —       —       —         —       —         —       —       —         —       —  

Accrued taxes —

                                                                                 

Income taxes

     34,240      —         546     9,071     (5,278 )     568     28,250       897     211     (25 )     —       —  

Other

     —        —         —       —       —         —       —         —       —       —         —       —  

Accrued interest

     22,532      (93 )     25     465     21,999       —       8       —       85     —         43     —  

Accrued vacation pay

     —        —         —       —       —         —       —         —       —       —         —       —  

Accrued compensation

     2,100      —         —       —       —         2,100     —         —       —       —         —       —  

Other

     14,549      —         —       —       —         14,549     —         —       —       —         —       —  
    

  


 

 

 


 

 


 

 

 


 

 

Total current liabilities

     128,708      (93 )     583     38,661     16,762       27,071     32,168       7,915     648     (21 )     4,651     363
    

  


 

 

 


 

 


 

 

 


 

 

Long-term debt

     781,732      (7,099 )     —       353,081     400,000       25,151     —         —       7,099     —         3,500     —  
    

  


 

 

 


 

 


 

 

 


 

 

Mandatorily redeemable preferred securities

     555,486      —         —       —       555,486       —       —         —       —       —         —       —  
    

  


 

 

 


 

 


 

 

 


 

 

Deferred Credits and Other Liabilities:

                                                                                 

Accumulated deferred income taxes

     384,766      —         —       355,919     —         7,397     21,003       —       434     —         13     —  

Deferred credits related to income taxes

     —        —         —       —       —         —       —         —       —       —         —       —  

Accumulated deferred investment tax credits

     —        —         —       —       —         —       —         —       —       —         —       —  

Employee benefit obligations

     1,721      —         —       —       —         1,721     —         —       —       —         —       —  

Asset retirement obligations

     —        —         —       —       —         —       —         —       —       —         —       —  

Other cost of removal obligations

     —        —         —       —       —         —       —         —       —       —         —       —  

Deferred capacity revenues

     —        —         —       —       —         —       —         —       —       —         —       —  

Miscelleanous regulatory liabilities

     —        —         —       —       —         —       —         —       —       —         —       —  

Other

     13,026      —         —       —       —         201     12,325       500     —       —         —       —  
    

  


 

 

 


 

 


 

 

 


 

 

Total deferred credits and other liabilities

     399,513      —         —       355,919     —         9,319     33,328       500     434     —         13     —  
    

  


 

 

 


 

 


 

 

 


 

 

Total Liabilities

     1,865,439      (7,192 )     583     747,661     972,248       61,541     65,496       8,415     8,181     (21 )     8,164     363
    

  


 

 

 


 

 


 

 

 


 

 

Cumulative preferred stock of subsidiaries

     —        —         —       —       —         —       —         —       —       —         —       —  
    

  


 

 

 


 

 


 

 

 


 

 

Common stockholders’ equity

     292,759      (255,885 )     292,766     196,165     30,367       7,632     (8,320 )     4,420     5,574     17,785       2,250     5
    

  


 

 

 


 

 


 

 

 


 

 

Total Liabilities and Stockholders’ Equity

   $ 2,158,198    $ (263,077 )   $ 293,349   $ 943,826   $ 1,002,615     $ 69,173   $ 57,176     $ 12,835   $ 13,755   $ 17,764     $ 10,414   $ 368
    

  


 

 

 


 

 


 

 

 


 

 

 

A-48


Table of Contents

EXHIBITS.

 

Exhibits (including reference to previous filings):

 

Exhibit
Number


  

Description of Exhibit


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

 

A-49


Table of Contents

EXHIBITS.

 

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

 

Exhibit
Number


  

Description of Exhibit


B-5    Charter of GEORGIA and amendments thereto through January 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 February 19, 2003, and as presently in effect. (Designated in GEORGIA’s Form 10-K for the year ended December 31, 2002, File No. 1-6468, as Exhibit 3(c)2.)
B-7    Restated Articles of Incorporation of GULF and amendments thereto through February 9, 2001. (Designated in Registration No. 33-43739 as Exhibit 4(b)-(1), in Form 8-K dated January 15, 1992, File No. 0-2429, as Exhibit 1(b), in Form 8-K dated August 18, 1992, File No. 0-2429, as Exhibit 4(b)-2, in Form 8-K dated September 22, 1993, File No. 0-2429, as Exhibit 4, in Form 8-K dated November 3, 1993, File No. 0-2429, as Exhibit 4, in Form 10-K for the year ended December 31, 1997, File No. 0-2429, as Exhibit 3(d)2 and in Form 10-K for the year ended December 31, 2000, File No. 0-2429, as Exhibit 3(d)2.)
B-8    By-laws of GULF as amended effective July 26, 2002, and as presently in effect. (Designated in Form 10-K for the year ended December 31, 2002, File No. 0-2429, as Exhibit 3(d)2.)
B-9    Articles of incorporation of MISSISSIPPI, articles of merger of Mississippi Power Company (a Maine corporation) into MISSISSIPPI and articles of amendment to the articles of incorporation of MISSISSIPPI through April 2, 2004. (Designated in Registration No. 2-71540 as Exhibit 4(a)-1, in Form U5S for 1987, File No. 30-222-2, as Exhibit B-10, in Registration No. 33-49320 as Exhibit 4(b)-1, in Form 8-K dated August 5, 1992, File No. 0-6849, as Exhibits 4(b)-2 and 4(b)-3 in Form 8-K dated August 4, 1993, File No. 0-6849, as Exhibit 4(b)-3, in Form 8-K dated August 18, 1993, File No. 0-6849, as Exhibit 4(b)-3, in Form 10-K for the year ended December 31, 1997, File No. 0-6849, as Exhibit 3(e)2, in Form 10-K for the year ended December 31, 2000, File No. 0-6849, as Exhibit 3(e)2 and in Form 8-K dated March 3, 2004, File No. 0-6849, as Exhibit 4.6.)
B-10    By-laws of MISSISSIPPI as amended effective February 28, 2001, and as presently in effect. (Designated if Form 10-K for the year ended December 31, 2001, File No. 0-6849, as Exhibit 3(e)2.)

 

A-50


Table of Contents

EXHIBITS.

 

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

 

Exhibit
Number


  

Description of Exhibit


B-11    Charter of SAVANNAH and amendments thereto through 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. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-15.)
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 6, 2001. (Designated in Form U5S for 1985, File No. 30-222-2, as Exhibit B-23 , in Form U5S for 1987, File No. 30-222-2, as Exhibit B-27, in Form U5S for 1993, File No. 30-222-2, as Exhibit B-25 and in Form U5S for 2001, File No. 30-222-2, as Exhibit B-18.)
B-18    Amended and Restated By-laws of Southern Management Development, Inc. effective March 5, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-19.)
B-19    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-20    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-21    Certificate of Incorporation of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-30.)
B-22    By-laws of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-31.)
B-23    Certificate of Incorporation of Southern LINC. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-31.)

 

A-51


Table of Contents

EXHIBITS.

 

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

 

Exhibit
Number


  

Description of Exhibit


B-24    By-laws of Southern LINC. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-32.)
B-25    Certificate of Incorporation of Southern Telecom, Inc. as amended through February 17, 1998. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-26.)
B-26    By-Laws of Southern Telecom, Inc. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-50.)
B-27    Certificate of Incorporation of Southern Company Funding Corporation dated January 17, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-28.)
B-28    By-Laws of Southern Company Funding Corporation effective January 17, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-29.)
B-29    Certificate of Incorporation of Southern Company Holdings, Inc. as amended through March 6, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-30.)
B-30    By-Laws of Southern Company Holdings, Inc. effective March 5, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-31.)
B-31    Certificate of Incorporation of Southern Information Holding Company, Inc. as amended through February 17, 1998. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-32.)
B-32    By-Laws of Southern Information Holding Company, Inc. effective September 9, 1996. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-33.)
B-33    Certificate of Incorporation of Southern Power Company dated January 8, 2001. (Designated in Registration No. 333-98553 as Exhibit 3.1.)
B-34    By-Laws of Southern Power Company effective January 8, 2001. (Designated in Registration No. 333-98553 as Exhibit 3.2.)
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 July 31, 2002. (Designated in Form 10-K for the year ended December 31, 1997, File No. 1-3526, as Exhibit 4(a)2, in Form 8-K dated June 18, 1998, File No. 1-3526, as Exhibit 4.2, in Form 8-K dated December 18, 1998, File No. 1-3526, as Exhibit 4.4 and in Form 8-K dated July 24, 2002, File No. 1-3526, as Exhibit 4.4.)

 

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Table of Contents

EXHIBITS.

 

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

 

Exhibit
Number


  

Description of Exhibit


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.)
C-4    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    Satisfaction and Discharge of Subordinated Note Indenture dated as of April 30, 2003 by JPMorgan Chase Bank, as Trustee, to Alabama Power related to discharging Alabama Power’s Subordinated Note Indenture dated as of January 1, 1996, between Alabama Power and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indenture supplemental thereto dated as of January 1, 1996. (Designated in Form 10-K for the year ended December 31, 2003, File No. 1-3164, as Exhibit 4(b)3.)
C-7    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 October 2, 2002. (Designated in Form 8-K dated January 9, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2, in Form 8-K dated February 18, 1999, File No. 1-3164, as Exhibit 4.2 and in Form 8-K dated September 26, 2002, File No.1-3164, as Exhibits 4.9-A and 4.9-B.)
C-8    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 February 17, 2004. (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

 

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Table of Contents

EXHIBITS.

 

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

 

Exhibit

Number


  

Description of Exhibit


     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, inForm 8-K dated September 8, 1998, File No. 1-3164, as Exhibit 4.2, in Form8-K dated September 16, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated October 7, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated October 28, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated November 12, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated May 19, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 13, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated September 21, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated May 11, 2000, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 22, 2001, File No. 1-3164, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated June 21, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated October 16, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated November 20, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated December 6, 2002, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated February 11, 2003, File No. 1-3164, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated March 12, 2003, File No. 1-3164, as Exhibit 4.2 and in Form 8-K dated April 15, 2003 as Exhibit 4.2(a).)
C-9    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.)
C-10    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 January 23, 2004. (Designated in Certificate of Notification, File No. 70-8461, as Exhibits D and E, in Form 8-K dated February 17, 1999, File No. 1-6468, as Exhibit 4.4, in Form 8-K dated June 13, 2002, File No. 1-6468, as Exhibit 4.4, in Form 8-K dated October 30, 2002, File No. 1-6468, as Exhibit 4.4 and in Form 8-K dated January 15, 2004, File No. 1-6468, as Exhibit 4.4.)
C-11    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 February 17, 2004. (Designated in Form 8-K dated January 21, 1998, File No. 1-6468, as Exhibits 4.1 and 4.2, in Forms 8-K each dated November 19, 1998, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated March 3, 1999, File No. 1-6468, as Exhibit 4.5, in Form 8-K dated February 15, 2000, File No. 1-6468 as Exhibit 4.2, in Form 8-K dated January 26, 2001, File No. 1-6468, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated February 16, 2001, File No. 1-6469 as Exhibit 4.2, in Form 8-K dated May 1, 2001, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated June 27, 2002, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated November 15, 2002, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated February 13, 2003, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated February 21, 2003, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated April 10, 2003, File No. 1-6468, as Exhibits 4.1, 4.2 and 4.3, in Form 8-K dated September 8, 2003, File No. 1-6468, as Exhibit 4.1, in Form 8-K dated September 23, 2003, File No. 1-6468, as Exhibit 4.1, in Form 8-K dated January 12, 2004, File No. 1-6468, as Exhibits 4.1 and 4.2 and in Form 8-K dated February 12, 2004, File No. 1-6468, as Exhibit 4.1.)

 

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Table of Contents

EXHIBITS.

 

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

 

Exhibit

Number


  

Description of Exhibit


C-12    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-13    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 December 13, 2002. (Designated in Form 8-K dated January 27, 1997, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form 8-K dated July 28, 1997, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated January 13, 1998, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated November 8, 2001, File No. 0-2429, as Exhibit 4.2 and in Form 8-K dated December 5, 2002, File No. 0-2429, as Exhibit 4.2.)
C-14    Senior Note Indenture dated as of January 1, 1998, between GULF and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto dated as of April 13, 2004. (Designated in Form 8-K dated June 17, 1998, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form 8-K dated August 17, 1999, File No. 0-2429 as Exhibit 4.2, in Form 8-K dated July 31, 2001, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated October 5, 2001, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated January 18, 2002, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated March 21, 2003, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated July 10, 2003, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form 8-K dated September 5, 2003, File No. 0-2429, as Exhibit 4.1 and in Form 8-K dated April 6, 2004, File No. 0-2429, as Exhibit 4.1.)
C-15    Indenture dated as of September 1, 1941, between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Successor Trustee, and indentures supplemental thereto through December 1, 1995. (Designated in Registration Nos. 2-4834 as Exhibit B-3, 2-62965 as Exhibit 2(b)-2, 2-66845 as Exhibit 2(b)-2, 2-71537 as Exhibit 4(a)-(2), 33-5414 as Exhibit 4(a)-(2), 33-39833 as Exhibit 4(a)-2, in MISSISSIPPI’s Form 10-K for the year ended December 31, 1991, File No. 0-6849, as Exhibit 4(b), in Form 8-K dated August 5, 1992, File No. 0-6849, as Exhibit 4(a)-2, in Second Certificate of Notification, File No. 70-7941, as Exhibit I, in MISSISSIPPI’s Form 8-K dated February 26, 1993, File No. 0-6849, as Exhibit 4(a)-2, in Certificate of Notification, File No. 70-8127, as Exhibit A, in Form 8-K dated June 22, 1993, File No. 0-6849, as Exhibit 1, in Certificate of Notification, File No. 70-8127, as Exhibit A, in Form 8-K dated March 8, 1994, File No. 0-6849, as Exhibit 4, in Certificate of Notification, File No. 70-8127, as Exhibit C and in Form 8-K dated December 5, 1995, File No. 0-6849, as Exhibit 4.)

 

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Table of Contents

EXHIBITS.

 

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

 

Exhibit

Number


  

Description of Exhibit


C-16    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-17    Senior Note Indenture dated as of May 1, 1998 between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee and indentures supplemental thereto through March 9, 2004. (Designated in Form 8-K dated May 14, 1998, File No. 0-6849, as Exhibits 4.1, 4.2(a) and 4.2(b), in Form 8-K dated March 22, 2000, File No. 0-6849, as Exhibit 4.2, in Form 8-K dated March 12, 2002, File No. 0-6849, as Exhibit 4.2, in Form 8-K dated April 24, 2003, File No. 001-11229, as Exhibit 4.2 and in Form 8-K dated March 3, 2004, File No. 001-11229, as Exhibit 4.2.)
C-18    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-19    Subordinated Note Indenture dated as of December 1, 1998, between SAVANNAH and The Bank of New York, as Trustee, and indenture supplemental thereto dated as of December 9, 1998. (Designated in Form 8-K dated December 3, 1998, File No. 1-5072, as Exhibit 4.3 and 4.4.)
C-20    Senior Note Indenture dated as of March 1, 1998 between SAVANNAH and The Bank of New York, as Trustee and indentures supplemental thereto through December 17, 2003. (Designated in Form 8-K dated March 9, 1998, File No. 1-5072, as Exhibits 4.1 and 4.2, in Form 8-K dated May 8, 2001, File No. 1-5072, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated November 4, 2002, File No. 1-5072, as Exhibit 4.2 and in Form 8-K dated December 10, 2003, File No. 1-5072, as Exhibits 4.1 and 4.2.)
C-21    Indenture dated as of June 1, 2002, between SOUTHERN POWER and The Bank of New York, as Trustee, and indenture supplemental thereto dated as of July 8, 2003. (Designated in Registration No. 333-98553 as Exhibits 4.1 and 4.2 and in Southern Power’s Form 10-Q for the quarter ended June 30, 2003, File No. 333-98553, as Exhibit 4(g)1.)

 

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EXHIBITS.

 

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

 

Exhibit

Number


  

Description of Exhibit


D-1    Income Tax Allocation Agreement and Amendments 1 through 110 thereto. (Designated in Form U5S for 1981, File No. 30-222-2, as Exhibit A-21, in Form U5S for 1982, File No. 30-222-2, as Exhibit A-22(b), in Form U5S for 1982, File No. 30-222-2, as Exhibit A-22(c), in Form U5S for 1983, File No. 30-222-2, as Exhibit D-1(d), in Form U5S for 1985, File No. 30-222-2, as Exhibit D-1(e), in Amendment No. 1 to Form U5S for 1985, File No. 30-222-2, as Exhibit D-1(f) in Form U5S for 1987, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1991, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 1992, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1991, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1994, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 1995, File No. 30-222-2, as Exhibit D-2, as Exhibit D-2, in Form U5S for 1994, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1996, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1997, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1998, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1999, File No. 30-222-2, as Exhibit D-2, in Form U5S for 2000, File No. 30-222-2, as Exhibit D-2, in Form U5S for 2001, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 2002, File No. 30-222-2, as Exhibit D-2.)
D-2    Amendment 111 to Income Tax Allocation Agreement.
D-3    Statement of the Effects to the Companies Party to the Southern Company Income Tax Allocation Agreement after the Spin-Off of Mirant Corporation. (Designated in Form U5S for 2002, File No. 30-222-2 as Exhibit No. D-3.)

 

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Table of Contents

EXHIBITS.

 

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

 

Exhibit

Number


  

Description of Exhibit


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

 

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.

 

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SIGNATURE

 

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

 

   

THE SOUTHERN COMPANY

Date: April 16, 2004

 

By:

 

/s/    W. Dean Hudson        

         
           

W. Dean Hudson

Chief Accounting Officer and

Comptroller

 

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