0000092122-19-000055.txt : 20191030 0000092122-19-000055.hdr.sgml : 20191030 20191030070629 ACCESSION NUMBER: 0000092122-19-000055 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 22 CONFORMED PERIOD OF REPORT: 20191030 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20191030 DATE AS OF CHANGE: 20191030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN CO CENTRAL INDEX KEY: 0000092122 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 580690070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03526 FILM NUMBER: 191177591 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD., N.W. CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD., N.W. CITY: ATLANTA STATE: GA ZIP: 30308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALABAMA POWER CO CENTRAL INDEX KEY: 0000003153 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 630004250 STATE OF INCORPORATION: AL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03164 FILM NUMBER: 191177592 BUSINESS ADDRESS: STREET 1: 600 N 18TH ST STREET 2: P O BOX 2641 CITY: BIRMINGHAM STATE: AL ZIP: 35291 BUSINESS PHONE: 2052571000 MAIL ADDRESS: STREET 1: 600 N 18TH ST CITY: BIRMINGHAM STATE: AL ZIP: 35291 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GEORGIA POWER CO CENTRAL INDEX KEY: 0000041091 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 580257110 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06468 FILM NUMBER: 191177596 BUSINESS ADDRESS: STREET 1: 241 RALPH MCGILL BOULEVARD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045066526 MAIL ADDRESS: STREET 1: 241 RALPH MCGILL BOULEVARD CITY: ATLANTA STATE: GA ZIP: 30308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MISSISSIPPI POWER CO CENTRAL INDEX KEY: 0000066904 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 640205820 STATE OF INCORPORATION: MS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11229 FILM NUMBER: 191177595 BUSINESS ADDRESS: STREET 1: 2992 WEST BEACH CITY: GULFPORT STATE: MS ZIP: 39501 BUSINESS PHONE: 2288641211 MAIL ADDRESS: STREET 1: 2992 WEST BEACH CITY: GULFPORT STATE: MS ZIP: 39501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN Co GAS CENTRAL INDEX KEY: 0001004155 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 582210952 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14174 FILM NUMBER: 191177593 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: 2Q ZIP: 30308 FORMER COMPANY: FORMER CONFORMED NAME: AGL RESOURCES INC DATE OF NAME CHANGE: 19951129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN POWER CO CENTRAL INDEX KEY: 0001160661 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 582598670 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37803 FILM NUMBER: 191177594 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 8-K 1 earnrelease8-kq32019.htm 8-K Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 
Date of Report (Date of earliest event reported)
October 30, 2019
 

 
Commission
File Number
 
Registrant,
State of Incorporation,
Address and Telephone Number
 
I.R.S. Employer
Identification No.
 
 
1-3526
 
The Southern Company
 
58-0690070
 
(A Delaware Corporation)
30 Ivan Allen Jr. Boulevard, N.W.
Atlanta, Georgia 30308
(404) 506-5000
 
1-3164
 
Alabama Power Company
 
63-0004250
 
(An Alabama Corporation)
600 North 18th Street
Birmingham, Alabama 35203
(205) 257-1000
 
1-6468
 
Georgia Power Company
 
58-0257110
 
(A Georgia Corporation)
241 Ralph McGill Boulevard, N.E.
Atlanta, Georgia 30308
(404) 506-6526
 
001-11229
 
Mississippi Power Company
 
64-0205820
 
(A Mississippi Corporation)
2992 West Beach Boulevard
Gulfport, Mississippi 39501
(228) 864-1211
 
001-37803
 
Southern Power Company
 
58-2598670
 
(A Delaware Corporation)
30 Ivan Allen Jr. Boulevard, N.W.
Atlanta, Georgia 30308
(404) 506-5000
 
1-14174
 
Southern Company Gas
 
58-2210952
 
(A Georgia Corporation)
Ten Peachtree Place, N.E.
Atlanta, Georgia 30309
(404) 584-4000

The names and addresses of the registrants have not changed since the last report.




This combined Form 8-K is furnished separately by six registrants: The Southern Company, Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company and Southern Company Gas. Information contained herein relating to each registrant is furnished by each registrant solely on its own behalf. Each registrant makes no representation as to information relating to the other registrants.

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Registrant
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
The Southern Company
Common Stock, par value $5 per share
SO
New York Stock Exchange
The Southern Company
Series 2015A 6.25% Junior
Subordinated Notes due 2075
SOJA
New York Stock Exchange
The Southern Company
Series 2016A 5.25% Junior
Subordinated Notes due 2076
SOJB
New York Stock Exchange
The Southern Company
Series 2017B 5.25% Junior
Subordinated Notes due 2077
SOJC
New York Stock Exchange
The Southern Company
2019 Series A Corporate Units
SOLN
New York Stock Exchange
Alabama Power Company
5.00% Series Class A Preferred Stock
ALP PR Q
New York Stock Exchange
Georgia Power Company
Series 2017A 5.00% Junior
Subordinated Notes due 2077
GPJA
New York Stock Exchange
Southern Power Company
Series 2016A 1.000% Senior Notes due 2022
SO/22B
New York Stock Exchange
Southern Power Company
Series 2016B 1.850% Senior Notes due 2026
SO/26A
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). (Response applicable to each registrant)
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  





Item 2.02
Results of Operations and Financial Condition
The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On October 30, 2019, The Southern Company (“Southern Company”) issued a press release regarding its earnings for the three-month and nine-month periods ended September 30, 2019. A copy of this release is being furnished as Exhibit 99.01 to this Current Report on Form 8-K. In addition, certain additional information regarding the financial results for the three-month and nine-month periods ended September 30, 2019 is being furnished as Exhibits 99.02 through 99.07 to this Current Report on Form 8-K.
Use of Non-GAAP Financial Measures
Exhibits 99.01, 99.02, 99.03 and 99.04 to this Current Report on Form 8-K include earnings and earnings per share in accordance with generally accepted accounting principles (“GAAP”) for the three-month and nine-month periods ended September 30, 2019 and 2018. These exhibits also include earnings and earnings per share (1) for the three-month and nine-month periods ended September 30, 2019 and 2018, excluding (a) acquisition, disposition and integration impacts, (b) charges related to plants under construction, and (c) earnings from the Wholesale Gas Services business of Southern Company Gas, (2) for the three-month and nine-month periods ended September 30, 2019, excluding an impairment charge associated with Southern Company Gas’ natural gas storage facility in Louisiana, and (3) for the nine-month period ended September 30, 2018, excluding (a) settlement proceeds of Mississippi Power Company’s claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico and (b) additional net tax benefits as a result of implementing federal tax reform

1



legislation. The attached exhibits include additional information regarding these excluded items, as well as reconciliations of each non-GAAP financial measure to the most comparable financial measure under GAAP. Southern Company believes the presentation of earnings and earnings per share, excluding these items, is useful to investors because it provides investors with additional information to evaluate the performance of Southern Company’s ongoing business activities.  Southern Company management also uses earnings and earnings per share, excluding the effect of these items, to evaluate the performance of Southern Company’s ongoing business activities.  The presentation of this additional information is not meant to be considered a substitute for financial measures prepared in accordance with GAAP.
Exhibits
The exhibits hereto contain business segment information for Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company and Southern Company Gas. Accordingly, this report is also being furnished on behalf of each such registrant.
The following exhibits relate to the three-month and nine-month periods ended September 30, 2019:
 
Exhibit 99.01
 
Exhibit 99.02
 
Exhibit 99.03
 
Exhibit 99.04
 
Exhibit 99.05
 
Exhibit 99.06
 
Exhibit 99.07
 
Exhibit 104
Cover Page Interactive Data File – The cover page iXBRL tags are embedded within the inline XBRL document.



2



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:   October 30, 2019
THE SOUTHERN COMPANY

 
By
/s/Ann P. Daiss
 
 
Ann P. Daiss
Comptroller
 
 
 
 
ALABAMA POWER COMPANY
GEORGIA POWER COMPANY
MISSISSIPPI POWER COMPANY
SOUTHERN POWER COMPANY
SOUTHERN COMPANY GAS


 
By
/s/Melissa K. Caen
 
 
Melissa K. Caen
Assistant Secretary


3
EX-99.01 2 ex9901-pressreleaseq32.htm EXHIBIT 99.01 Exhibit


 
 
Exhibit 99.01
 
socologoa19.gif
News
 
Media Contact:
Southern Company Media Relations
 
 
404-506-5333 or 1-866-506-5333
 
 
www.southerncompany.com
 
 
 
 
Investor Relations Contact:
 
 
Scott Gammill
 
 
404-506-0901
 
 
sagammil@southernco.com
 
 
October 30, 2019

Southern Company reports third-quarter 2019 earnings

ATLANTA - Southern Company today reported third-quarter 2019 earnings of $1.32 billion, or $1.26 per share, compared with $1.16 billion, or $1.14 per share, in the third quarter of 2018. For the nine months ended September 30, 2019, Southern Company reported earnings of $4.30 billion, or $4.12 per share, compared with earnings of $1.95 billion, or $1.92 per share, for the same period in 2018.

Excluding the items described in the “Net Income - Excluding Items” table below, Southern Company earned $1.40 billion, or $1.34 per share, during the third quarter of 2019, compared with $1.16 billion, or $1.14 per share, during the third quarter of 2018. For the nine months ended September 30, 2019, excluding these items, Southern Company earned $2.97 billion, or $2.84 per share, compared with earnings of $2.87 billion, or $2.83 per share, for the same period in 2018.

Non-GAAP Financial Measures
Three Months Ended September
 
Year-to-Date September
Net Income - Excluding Items (in millions)
2019
2018
 
2019
2018
Net Income - As Reported
$1,316
$1,164
 
$4,298
 $1,948
Acquisition, Disposition, and Integration Impacts
5
(326)
 
(2,477)
(93)
       Tax Impact
7
306
 
1,130
305
Estimated Loss on Plants Under Construction
3
2
 
16
1,108
       Tax Impact
(1)
(1)
 
(4)
(282)
Wholesale Gas Services
14
24
 
(79)
(83)
       Tax Impact
(5)
(6)
 
18
18
Asset Impairment
92
-
 
92
-
       Tax Impact
(27)
-
 
(27)
-
Litigation Settlement
-
-
 
-
(24)
       Tax Impact
-
-
 
-
6
Earnings Guidance Comparability Items:
 
 
 
 
 
Adoption of Tax Reform
-
-
 
-
(31)
Net Income - Excluding Items
$1,404
$1,163
 
$2,967
$2,872
       Average Shares Outstanding - (in millions)
1,048
1,023
 
1,043
1,016
Basic Earnings Per Share - Excluding Items
$1.34
$1.14
 
$2.84
$2.83
NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.





Earnings drivers year-over-year for the third quarter 2019 were positively influenced by higher revenues associated with changes in rates and pricing, net of usage changes, as well as warmer than normal weather at Southern Company’s regulated utilities. These impacts were partially offset by the impact of divested entities on earnings.

“We continue to be pleased with our operational performance through the first three quarters of 2019, as our premier, state-regulated electric and gas franchises provided reliable energy to customers despite the challenge of record-breaking temperatures in our service footprint” said Chairman, President and CEO Thomas A. Fanning. “Our electrical system demonstrated great resilience during these conditions with strong generation availability and record year-to-date transmission performance, resulting in exceptional reliability for customers. Even amid these peak loads, a diverse fuel mix enabled the Southern Company system to reduce carbon emissions by 35% compared to the strongest demand of 2007 - our benchmark year for carbon emissions.”

Third quarter 2019 operating revenues were $6.0 billion, compared with $6.2 billion for the third quarter of 2018, a decrease of 2.7 percent. For the nine months ended September 30, 2019, operating revenues were $16.5 billion, compared with $18.2 billion for the corresponding period in 2018, a decrease of 9.1 percent. These decreases reflect the sales of Gulf Power and other assets that are no longer affiliated with Southern Company.

Southern Company’s third quarter earnings slides with supplemental financial information are available at http://investor.southerncompany.com.


Southern Company’s financial analyst call will begin at 8 a.m. Eastern Time today, during which Fanning and Chief Financial Officer Andrew W. Evans will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com/webcasts. A replay of the webcast will be available on the site for 12 months.

About Southern Company

Southern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women’s Choice Award. To learn more, visit www.southerncompany.com.


###


EX-99.02 3 ex9902-financialhighli.htm EXHIBIT 99.02 Exhibit


Exhibit 99.02
 
Page 1
 
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September
 
Year-to-Date
September
Net Income–As Reported (See Notes)
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
  Traditional Electric Operating Companies
 
$
1,373

 
$
1,148

 
$
2,719

 
$
1,711

  Southern Power
 
86

 
92

 
316

 
235

Southern Company Gas
 
(29
)
 
46

 
347

 
294

  Total
 
1,430

 
1,286

 
3,382

 
2,240

  Parent Company and Other
 
(114
)
 
(122
)
 
916

 
(292
)
  Net Income–As Reported
 
$
1,316

 
$
1,164

 
$
4,298

 
$
1,948

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share1
 
$
1.26

 
$
1.14

 
$
4.12

 
$
1.92

 
 
 
 
 
 
 
 
 
  Average Shares Outstanding (in millions)
 
1,048

 
1,023

 
1,043

 
1,016

  End of Period Shares Outstanding (in millions)
 
 
 
 
 
1,049

 
1,029

 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures
 
Three Months Ended
September
 
Year-to-Date
September
Net Income–Excluding Items (See Notes)
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
  Net Income–As Reported
 
$
1,316

 
$
1,164

 
$
4,298

 
$
1,948

Acquisition, Disposition, and Integration Impacts2
 
5

 
(326
)
 
(2,477
)
 
(93
)
Tax Impact
 
7

 
306

 
1,130

 
305

Estimated Loss on Plants Under Construction3
 
3

 
2

 
16

 
1,108

Tax Impact
 
(1
)
 
(1
)
 
(4
)
 
(282
)
Wholesale Gas Services4
 
14

 
24

 
(79
)
 
(83
)
Tax Impact
 
(5
)
 
(6
)
 
18

 
18

Asset Impairment5
 
92

 

 
92

 

Tax Impact
 
(27
)
 

 
(27
)
 

Litigation Settlement6
 

 

 

 
(24
)
Tax Impact
 

 

 

 
6

Earnings Guidance Comparability Items:
 
 
 
 
 
 
 
 
Adoption of Tax Reform7
 

 

 

 
(31
)
  Net Income–Excluding Items
 
$
1,404

 
$
1,163

 
$
2,967

 
$
2,872

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share–Excluding Items
 
$
1.34

 
$
1.14

 
$
2.84

 
$
2.83

 
 
 
 
 
 
 
 
 
-See Notes on the following page.







 
Exhibit 99.02
 
Page 2
 
Southern Company
 
Financial Highlights
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
(1)
For the three and nine months ended September 30, 2019 and 2018, dilutive impacts are immaterial ($0.03 or less per share). Diluted earnings per share was $1.25 and $4.09 in the third quarter and year-to-date 2019, respectively, and $1.13 and $1.91 in the third quarter and year-to-date 2018, respectively.
 
 
(2)
Earnings for the three months ended September 30, 2019 include an $18 million pre-tax and after-tax impairment charge in contemplation of the sale of PowerSecure Inc.'s lighting services business, partially offset by $13 million pre tax ($6 million after tax) of other acquisition, disposition, and integration impacts. Earnings for the nine months ended September 30, 2019 include a $2.5 billion pre-tax gain ($1.3 billion after tax) on the sale of Gulf Power Company, a $23 million pre-tax ($88 million after tax) gain on the sale of Southern Power Company's Plant Nacogdoches, and $17 million pre tax ($7 million after tax) of other acquisition, disposition, and integration impacts, partially offset by pre-tax and after-tax impairment charges totaling $50 million related to the sale and contemplated sale of PowerSecure Inc.'s utility infrastructure services and lighting businesses, respectively. Earnings for the three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after tax) gain on the sales of Elizabethtown Gas, Elkton Gas, and Florida City Gas and (ii) $25 million pre tax ($18 million after tax) of other acquisition, disposition, and integration costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the Pivotal Home Solutions transaction; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iv) $63 million pre tax ($46 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2019 in connection with the sale of Gulf Power Company, as well as the pending sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.
 
 
(3)
Earnings for the three and nine months ended September 30, 2019 and 2018 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Additional pre-tax closure costs, including mine reclamation, of up to $20 million for Mississippi Power Company's Kemper IGCC may occur through 2020. Mississippi Power Company is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.
 
 
 
 
 
 
 
 
 
 
(4)
Earnings for the three and nine months ended September 30, 2019 and 2018 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
 
 
 
 
 
 
 
 
 
 
(5)
Earnings for the three and nine months ended September 30, 2019 include a pre-tax impairment charge of $92 million ($65 million after tax) associated with Southern Company Gas' natural gas storage facility in Louisiana. Further charges associated with this facility are not expected. Southern Company Gas has two other natural gas storage facilities with a combined net book value of $328 million at September 30, 2019. These facilities could be impacted by ongoing U.S. natural gas storage market changes that may imply impacts to future rates and/or asset values, and, if sustained, could trigger impairment.
 
 
 
 
 
 
 
 
 
 
(6)
Earnings for the nine months ended September 30, 2018 include the settlement proceeds of Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.
 
 
 
 
 
 
 
 
 
 
(7)
Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected.



EX-99.03 4 ex9903-significantfact.htm EXHIBIT 99.03 Exhibit
Exhibit 99.03
 
Page 1
 
Southern Company
Significant Factors Impacting EPS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September
 
Year-to-Date
September
 
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
As Reported1 (See Notes)
 
$
1.26

 
$
1.14

 
$
0.12

 
$
4.12

 
$
1.92

 
$
2.20

 
 
 
 
 
 
 
 
 
 
 
 
 
  Significant Factors:
 
 
 
 
 
 
 
 
 
 
 
 
  Traditional Electric Operating Companies
 
 
 
 
 
$
0.22

 
 
 
 
 
$
0.99

Southern Power
 
 
 
 
 
(0.01
)
 
 
 
 
 
0.08

Southern Company Gas
 
 
 
 
 
(0.07
)
 
 
 
 
 
0.05

Parent Company and Other
 
 
 
 
 
0.01

 
 
 
 
 
1.19

Increase in Shares
 
 
 
 
 
(0.03
)
 
 
 
 
 
(0.11
)
  Total–As Reported
 
 
 
 
 
$
0.12

 
 
 
 
 
$
2.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September
 
Year-to-Date
September
Non-GAAP Financial Measures
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
Excluding Items (See Notes)
 
$
1.34

 
$
1.14

 
$
0.20

 
$
2.84

 
$
2.83

 
$
0.01

 
 
 
 
 
 
 
 
 
 
 
 
 
  Total–As Reported
 
 
 
 
 
$
0.12

 
 
 
 
 
$
2.20

Acquisition, Disposition, and Integration
    Impacts2
 
 
 
 
 
0.03

 
 
 
 
 
(1.50
)
Estimated Loss on Plants Under Construction3
 
 
 
 
 

 
 
 
 
 
(0.80
)
Wholesale Gas Services4
 
 
 
 
 
(0.01
)
 
 
 
 
 

Asset Impairment5
 
 
 
 
 
0.06

 
 
 
 
 
0.06

Litigation Settlement6
 
 
 
 
 

 
 
 
 
 
0.02

Adoption of Tax Reform7
 
 
 
 
 

 
 
 
 
 
0.03

  Total–Excluding Items
 
 
 
 
 
$
0.20

 
 
 
 
 
$
0.01

 
 
 
 
 
 
 
 
 
 
 
 
 
- See Notes on the following page.




 
Exhibit 99.03
 
Page 2
 
Southern Company
 
Significant Factors Impacting EPS
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
(1)
For the three and nine months ended September 30, 2019 and 2018, dilutive impacts are immaterial ($0.03 or less per share). Diluted earnings per share was $1.25 and $4.09 in the third quarter and year-to-date 2019, respectively, and $1.13 and $1.91 in the third quarter and year-to-date 2018, respectively.
 
 
(2)
Earnings for the three months ended September 30, 2019 include an $18 million pre-tax and after-tax impairment charge in contemplation of the sale of PowerSecure Inc.'s lighting services business, partially offset by $13 million pre tax ($6 million after tax) of other acquisition, disposition, and integration impacts. Earnings for the nine months ended September 30, 2019 include a $2.5 billion pre-tax gain ($1.3 billion after tax) on the sale of Gulf Power Company, a $23 million pre-tax ($88 million after tax) gain on the sale of Southern Power Company's Plant Nacogdoches, and $17 million pre tax ($7 million after tax) of other acquisition, disposition, and integration impacts, partially offset by pre-tax and after-tax impairment charges totaling $50 million related to the sale and contemplated sale of PowerSecure Inc.'s utility infrastructure services and lighting businesses, respectively. Earnings for the three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after tax) gain on the sales of Elizabethtown Gas, Elkton Gas, and Florida City Gas and (ii) $25 million pre tax ($18 million after tax) of other acquisition, disposition, and integration costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the Pivotal Home Solutions transaction; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iv) $63 million pre tax ($46 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2019 in connection with the sale of Gulf Power Company, as well as the pending sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.
 
 
(3)
Earnings for the three and nine months ended September 30, 2019 and 2018 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Additional pre-tax closure costs, including mine reclamation, of up to $20 million for Mississippi Power Company's Kemper IGCC may occur through 2020. Mississippi Power Company is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.
 
 
(4)
Earnings for the three and nine months ended September 30, 2019 and 2018 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
 
 
 
 
 
 
 
 
 
 
(5)
Earnings for the three and nine months ended September 30, 2019 include a pre-tax impairment charge of $92 million ($65 million after tax) associated with Southern Company Gas' natural gas storage facility in Louisiana. Further charges associated with this facility are not expected. Southern Company Gas has two other natural gas storage facilities with a combined net book value of $328 million at September 30, 2019. These facilities could be impacted by ongoing U.S. natural gas storage market changes that may imply impacts to future rates and/or asset values, and, if sustained, could trigger impairment.
 
 
 
 
 
 
 
 
 
 
(6)
Earnings for the nine months ended September 30, 2018 include the settlement proceeds of Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.
 
 
 
 
 
 
 
 
 
 
(7)
Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected.

EX-99.04 5 ex9904-epsearningsanal.htm EXHIBIT 99.04 Exhibit


Exhibit 99.04
Page 1
Southern Company
EPS Earnings Analysis
 
 
 
 
 
 
Description
 
Three Months Ended September
2019 vs. 2018
 
Year-to-Date
September
2019 vs. 2018
 
 
 
 
 
Retail Sales
 
$(0.05)
 
$(0.10)
 
 
 
 
 
Retail Revenue Impacts
 
0.18
 
0.33
 
 
 
 
 
Weather
 
0.09
 
0.05
 
 
 
 
 
Wholesale and Other Operating Revenues
 
0.02
 
0.05
 
 
 
 
 
Non-Fuel O&M
 
 
(0.03)
 
 
 
 
 
Interest Expense, Depreciation and Amortization, Other
 
(0.02)
 
(0.02)
 
 
 
 
 
Income Taxes
 
0.06
 
0.09
 
 
 
 
 
Gulf Power Earnings
 
(0.06)
 
(0.14)
 
 
 
 
 
Total Traditional Electric Operating Companies
 
$0.22
 
$0.23
 
 
 
 
 
Southern Power
 
(0.01)
 
(0.10)
 
 
 
 
 
Southern Company Gas
 
0.01
 
0.01
 
 
 
 
 
Parent and Other
 
0.01
 
(0.05)
 
 
 
 
 
Increase in Shares
 
(0.03)
 
(0.08)
 
 
 
 
 
Total Change in EPS (Excluding Items)
 
$0.20
 
$0.01
 
 
 
 
 
Acquisition, Disposition, and Integration Impacts1
 
(0.03)
 
1.50
 
 
 
 
 
Estimated Loss on Plants Under Construction2
 
 
0.80
 
 
 
 
 
Wholesale Gas Services3
 
0.01
 
 
 
 
 
 
Asset Impairment4
 
(0.06)
 
(0.06)
 
 
 
 
 
Litigation Settlement5
 
 
(0.02)
 
 
 
 
 
Adoption of Tax Reform6
 
 
(0.03)
 
 
 
 
 
Total Change in EPS (As Reported)
 
$0.12
 
$2.20
 
 
 
 
 
- See Notes on the following page.
 





 
Exhibit 99.04
 
Page 2
 
Southern Company
 
EPS Earnings Analysis
 
Three and Nine Months Ended September 2019 vs. September 2018
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Earnings for the three months ended September 30, 2019 include an $18 million pre-tax and after-tax impairment charge in contemplation of the sale of PowerSecure Inc.'s lighting services business, partially offset by $13 million pre tax ($6 million after tax) of other acquisition, disposition, and integration impacts. Earnings for the nine months ended September 30, 2019 include a $2.5 billion pre-tax gain ($1.3 billion after tax) on the sale of Gulf Power Company, a $23 million pre-tax ($88 million after tax) gain on the sale of Southern Power Company's Plant Nacogdoches, and $17 million pre tax ($7 million after tax) of other acquisition, disposition, and integration impacts, partially offset by pre-tax and after-tax impairment charges totaling $50 million related to the sale and contemplated sale of PowerSecure Inc.'s utility infrastructure services and lighting businesses, respectively. Earnings for the three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after tax) gain on the sales of Elizabethtown Gas, Elkton Gas, and Florida City Gas and (ii) $25 million pre tax ($18 million after tax) of other acquisition, disposition, and integration costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the Pivotal Home Solutions transaction; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iv) $63 million pre tax ($46 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2019 in connection with the sale of Gulf Power Company, as well as the pending sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.
 
 
 
 
 
 
 
 
 
(2)
Earnings for the three and nine months ended September 30, 2019 and 2018 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Additional pre-tax closure costs, including mine reclamation, of up to $20 million for Mississippi Power Company's Kemper IGCC may occur through 2020. Mississippi Power Company is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.
 
 
 
 
 
 
 
 
 
(3)
Earnings for the three and nine months ended September 30, 2019 and 2018 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
 
 
 
 
 
 
 
 
 
(4)
Earnings for the three and nine months ended September 30, 2019 include a pre-tax impairment charge of $92 million ($65 million after tax) associated with Southern Company Gas' natural gas storage facility in Louisiana. Further charges associated with this facility are not expected. Southern Company Gas has two other natural gas storage facilities with a combined net book value of $328 million at September 30, 2019. These facilities could be impacted by ongoing U.S. natural gas storage market changes that may imply impacts to future rates and/or asset values, and, if sustained, could trigger impairment.
 
 
(5)
Earnings for the nine months ended September 30, 2018 include the settlement proceeds of Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.
 
 
 
 
 
 
 
 
 
(6)
Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected.


EX-99.05 6 ex9905-consolidatedear.htm EXHIBIT 99.05 Exhibit


Exhibit 99.05
 
 
Southern Company
Consolidated Earnings
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September
 
Year-to-Date
September
 
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Income Account-
 
 
 
 
 
 
 
 
 
 
 
 
Retail Electric Revenues-
 
 
 
 
 
 
 
 
 
 
 
 
Fuel
 
$
1,083

 
$
1,222

 
$
(139
)
 
$
2,807

 
$
3,271

 
$
(464
)
Non-Fuel
 
3,429

 
3,383

 
46

 
8,329

 
8,642

 
(313
)
Wholesale Electric Revenues
 
625

 
698

 
(73
)
 
1,667

 
1,937

 
(270
)
Other Electric Revenues
 
163

 
165

 
(2
)
 
492

 
495

 
(3
)
Natural Gas Revenues
 
498

 
492

 
6

 
2,661

 
2,806

 
(145
)
Other Revenues
 
197

 
199

 
(2
)
 
549

 
1,007

 
(458
)
Total Revenues
 
5,995

 
6,159

 
(164
)
 
16,505

 
18,158

 
(1,653
)
Fuel and Purchased Power
 
1,326

 
1,567

 
(241
)
 
3,461

 
4,274

 
(813
)
Cost of Natural Gas
 
79

 
104

 
(25
)
 
956

 
1,053

 
(97
)
Cost of Other Sales
 
114

 
120

 
(6
)
 
316

 
688

 
(372
)
Non-Fuel O & M
 
1,292

 
1,404

 
(112
)
 
3,888

 
4,217

 
(329
)
Depreciation and Amortization
 
760

 
787

 
(27
)
 
2,267

 
2,338

 
(71
)
Taxes Other Than Income Taxes
 
303

 
319

 
(16
)
 
931

 
990

 
(59
)
Estimated Loss on Plants Under Construction
 
4

 
1

 
3

 
10

 
1,105

 
(1,095
)
Impairment Charges
 
110

 
36

 
74

 
142

 
197

 
(55
)
(Gain) Loss on Dispositions, net
 
(6
)
 
(353
)
 
347

 
(2,512
)
 
(317
)
 
(2,195
)
Total Operating Expenses
 
3,982

 
3,985

 
(3
)
 
9,459

 
14,545

 
(5,086
)
Operating Income
 
2,013

 
2,174

 
(161
)
 
7,046

 
3,613

 
3,433

Allowance for Equity Funds Used During Construction
 
33

 
36

 
(3
)
 
96

 
99

 
(3
)
Earnings from Equity Method Investments
 
39

 
36

 
3

 
120

 
108

 
12

Interest Expense, Net of Amounts Capitalized
 
434

 
458

 
(24
)
 
1,294

 
1,386

 
(92
)
Other Income (Expense), net
 
61

 
57

 
4

 
239

 
195

 
44

Income Taxes
 
367

 
623

 
(256
)
 
1,872

 
598

 
1,274

Net Income
 
1,345

 
1,222

 
123

 
4,335

 
2,031

 
2,304

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Dividends on Preferred Stock of Subsidiaries
 
4

 
4

 

 
11

 
12

 
(1
)
Net Income Attributable to Noncontrolling Interests
 
25

 
54

 
(29
)
 
26

 
71

 
(45
)
NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY
 
$
1,316

 
$
1,164

 
$
152

 
$
4,298

 
$
1,948

 
$
2,350

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- Certain prior year data may have been reclassified to conform with current year presentation.
 


EX-99.06 7 ex9906-kilowattxhoursa.htm EXHIBIT 99.06 Exhibit


Exhibit 99.06
 
Page 1
 
 
Southern Company
Kilowatt-Hour Sales
(In Millions of KWHs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September
 
 
As Reported
 
Adjusted1
 
 
2019
 
2018
 
Change
 
Weather Adjusted Change
 
2018
 
Change
 
Weather Adjusted Change
Kilowatt-Hour Sales-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Sales
 
56,703

 
59,501

 
(4.7
)%
 
 
 
55,898

 
1.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Retail Sales-
 
43,090

 
46,195

 
(6.7
)%
 
(9.6
)%
 
42,789

 
0.7
 %
 
(2.4
)%
Residential
 
15,368

 
16,458

 
(6.6
)%
 
(12.4
)%
 
14,717

 
4.4
 %
 
(1.9
)%
Commercial
 
14,404

 
15,445

 
(6.7
)%
 
(9.4
)%
 
14,298

 
0.7
 %
 
(2.1
)%
Industrial
 
13,133

 
14,097

 
(6.8
)%
 
(6.8
)%
 
13,585

 
(3.3
)%
 
(3.3
)%
Other
 
185

 
195

 
(5.4
)%
 
(5.7
)%
 
189

 
(2.2
)%
 
(2.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholesale Sales
 
13,613

 
13,306

 
2.3
 %
 
N/A

 
13,109

 
3.8
 %
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year-to-Date September
 
 
As Reported
 
Adjusted1
 
 
2019
 
2018
 
Change
 
Weather Adjusted Change
 
2018
 
Change
 
Weather Adjusted Change
Kilowatt-Hour Sales-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Sales
 
150,303

 
162,605

 
(7.6
)%
 
 
 
153,409

 
(2.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Retail Sales-
 
114,207

 
124,209

 
(8.1
)%
 
(8.5
)%
 
115,520

 
(1.1
)%
 
(1.7
)%
Residential
 
37,790

 
42,115

 
(10.3
)%
 
(11.0
)%
 
37,789

 
 %
 
(0.9
)%
Commercial
 
37,776

 
41,105

 
(8.1
)%
 
(8.8
)%
 
38,112

 
(0.9
)%
 
(1.7
)%
Industrial
 
38,084

 
40,392

 
(5.7
)%
 
(5.7
)%
 
39,043

 
(2.5
)%
 
(2.5
)%
Other
 
557

 
597

 
(6.7
)%
 
(6.6
)%
 
576

 
(3.3
)%
 
(3.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholesale Sales
 
36,096

 
38,396

 
(6.0
)%
 
N/A

 
37,889

 
(4.7
)%
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Kilowatt-hour sales comparisons to the prior year were significantly impacted by the disposition of Gulf Power Company on January 1, 2019. These 2018 kilowatt-hour sales and changes exclude Gulf Power Company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





Exhibit 99.06
 
Page 2
 
 
Southern Company
Customers
(In Thousands of Customers)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period Ended September
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
Change
Regulated Utility Customers-
 
 
 
 
 
 
 
 
 
 
 
 
Total Utility Customers-
 
 
 
 
 
 
 
8,462
 
8,856
 
(4.4)%
Total Traditional Electric1
 
 
 
 
 
 
 
4,254
 
4,679
 
(9.1)%
Southern Company Gas
 
 
 
 
 
 
 
4,208
 
4,177
 
0.7%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes approximately 467,000 customers at September 30, 2018 related to Gulf Power Company, which was sold on January 1, 2019.


EX-99.07 8 ex9907-financialovervi.htm EXHIBIT 99.07 Exhibit





Exhibit 99.07
 
 
 
 
 
 
 
 
Southern Company
Financial Overview
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September
 
Year-to-Date
September
 
 
2019
 
2018
 
% Change
 
2019
 
2018
 
% Change
Southern Company1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
5,995

 
$
6,159

 
(2.7
)%
 
$
16,505

 
$
18,158

 
(9.1
)%
Earnings Before Income Taxes
 
1,712

 
1,845

 
(7.2
)%
 
6,207

 
2,629

 
136.1
 %
Net Income Available to Common
 
1,316

 
1,164

 
13.1
 %
 
4,298

 
1,948

 
120.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,841

 
$
1,740

 
5.8
 %
 
$
4,762

 
$
4,716

 
1.0
 %
Earnings Before Income Taxes
 
617

 
504

 
22.4
 %
 
1,288

 
1,140

 
13.0
 %
Net Income Available to Common
 
469

 
373

 
25.7
 %
 
982

 
857

 
14.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Georgia Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
2,755

 
$
2,593

 
6.2
 %
 
$
6,706

 
$
6,601

 
1.6
 %
Earnings Before Income Taxes
 
1,094

 
926

 
18.1
 %
 
2,064

 
833

 
147.8
 %
Net Income Available to Common
 
839

 
664

 
26.4
 %
 
1,598

 
621

 
157.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Mississippi Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
370

 
$
358

 
3.4
 %
 
$
970

 
$
956

 
1.5
 %
Earnings Before Income Taxes
 
80

 
61

 
31.1
 %
 
166

 
110

 
50.9
 %
Net Income Available to Common
 
65

 
47

 
38.3
 %
 
139

 
86

 
61.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Power1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
574

 
$
635

 
(9.6
)%
 
$
1,527

 
$
1,699

 
(10.1
)%
Earnings Before Income Taxes
 
130

 
108

 
20.4
 %
 
301

 
96

 
213.5
 %
Net Income Available to Common
 
86

 
92

 
(6.5
)%
 
316

 
235

 
34.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Company Gas1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
498

 
$
492

 
1.2
 %
 
$
2,661

 
$
2,861

 
(7.0
)%
Earnings (Loss) Before Income Taxes
 
(51
)
 
362

 
(114.1
)%
 
408

 
769

 
(46.9
)%
Net Income (Loss) Available to Common
 
(29
)
 
46

 
(163.0
)%
 
347

 
294

 
18.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- See Financial Highlights pages for discussion of certain significant items occurring during the periods presented.
 
 
 
 
 
 
 
(1)
Financial comparisons to the prior year were impacted by (i) Southern Company Gas' disposition of: (a) Pivotal Home Solutions on June 4, 2018, (b) Elizabethtown Gas and Elkton Gas on July 1, 2018, and (c) Florida City Gas on July 29, 2018; (ii) the disposition of Southern Power Company’s ownership interest in (a) Plants Oleander and Stanton on December 4, 2018 and (b) Plant Nacogdoches on June 13, 2019; (iii) Southern Power Company's sale of (a) a 33% equity interest in a limited partnership indirectly owning substantially all of its solar facilities on May 22, 2018 and (b) a noncontrolling interest in its subsidiary owning eight operating wind facilities on December 11, 2018; and (iv) Southern Company's disposition of Gulf Power Company on January 1, 2019.


EX-101.SCH 9 so-20191030.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 0001000 - Document - Cover Page Document link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 10 so-20191030_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 11 so-20191030_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.LAB 12 so-20191030_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT Cover page. Document Information [Table] Document Information [Table] Legal Entity [Axis] Legal Entity [Axis] Entity [Domain] Entity [Domain] Alabama Power Company Alabama Power [Member] Alabama Power. Georgia Power Company Georgia Power [Member] Georgia Power. Mississippi Power Company Mississippi Power [Member] Mississippi Power. Southern Power Company Southern Power [Member] Southern Power. Southern Company Gas Southern Company Gas [Member] Southern Company Gas [Member] Class of Stock [Axis] Class of Stock [Axis] Class of Stock [Domain] Class of Stock [Domain] Common Stock, par value $5 per share Common Stock [Member] Series 2015A 6.25% Junior Subordinated Notes due 2075 Series 2015A 6.25% Junior Subordinated Notes Due 2075 [Member] Series 2015A 6.25% Junior Subordinated Notes Due 2075 [Member] Series 2016A 5.25% Junior Subordinated Notes due 2076 Series 2016A 5.25% Junior Subordinated Notes Due 2076 [Member] Series 2016A 5.25% Junior Subordinated Notes Due 2076 [Member] Series 2017B 5.25% Junior Subordinated Notes due 2077 Series 2017B 5.25% Junior Subordinated Notes Due 2077 [Member] Series 2017B 5.25% Junior Subordinated Notes Due 2077 [Member] Series 2019A Corporate Units [Member] Series 2019A Corporate Units [Member] Series 2019A Corporate Units [Member] Series 2016A 1.000% Senior Notes Due 2022 [Member] Series 2016A 1.000% Senior Notes Due 2022 [Member] Series 2016A 1.000% Senior Notes Due 2022 [Member] Series 2016B 1.850% Senior Notes Due 2026 [Member] Series 2016B 1.850% Senior Notes Due 2026 [Member] Series 2016B 1.850% Senior Notes Due 2026 [Member] Document Information [Line Items] Document Information [Line Items] Document Type Document Type Document Period End Date Document Period End Date Entity File Number Entity File Number Entity Registrant Name Entity Registrant Name Entity Tax Identification Number Entity Tax Identification Number Entity Incorporation, State or Country Code Entity Incorporation, State or Country Code Entity Address, Address Line One Entity Address, Address Line One Entity Address, City or Town Entity Address, City or Town Entity Address, State or Province Entity Address, State or Province Entity Address, Postal Zip Code Entity Address, Postal Zip Code City Area Code City Area Code Local Phone Number Local Phone Number Written Communications Written Communications Soliciting Material Soliciting Material Pre-commencement Tender Offer Pre-commencement Tender Offer Pre-commencement Issuer Tender Offer Pre-commencement Issuer Tender Offer Title of 12(b) Security Title of 12(b) Security Trading Symbol Trading Symbol Security Exchange Name Security Exchange Name Entity Emerging Growth Company Entity Emerging Growth Company Entity Central Index Key Entity Central Index Key Amendment Flag Amendment Flag EX-101.PRE 13 so-20191030_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT GRAPHIC 14 socologoa19.gif begin 644 socologoa19.gif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Cover Page Document
Oct. 30, 2019
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 30, 2019
Entity File Number 1-3526
Entity Registrant Name The Southern Company
Entity Tax Identification Number 58-0690070
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 30 Ivan Allen Jr. Boulevard, N.W
Entity Address, City or Town Atlanta
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30308
City Area Code 404
Local Phone Number 506-5000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000092122
Amendment Flag false
Common Stock, par value $5 per share  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, par value $5 per share
Trading Symbol SO
Security Exchange Name NYSE
Series 2015A 6.25% Junior Subordinated Notes due 2075  
Document Information [Line Items]  
Title of 12(b) Security Series 2015A 6.25% Junior Subordinated Notes due 2075
Trading Symbol SOJA
Security Exchange Name NYSE
Series 2016A 5.25% Junior Subordinated Notes due 2076  
Document Information [Line Items]  
Title of 12(b) Security Series 2016A 5.25% Junior Subordinated Notes due 2076
Trading Symbol SOJB
Security Exchange Name NYSE
Series 2017B 5.25% Junior Subordinated Notes due 2077  
Document Information [Line Items]  
Title of 12(b) Security Series 2017B 5.25% Junior Subordinated Notes due 2077
Trading Symbol SOJC
Security Exchange Name NYSE
Series 2019A Corporate Units [Member]  
Document Information [Line Items]  
Title of 12(b) Security 2019 Series A Corporate Units
Trading Symbol SOLN
Security Exchange Name NYSE
Alabama Power Company  
Document Information [Line Items]  
Entity File Number 1-3164
Entity Registrant Name Alabama Power Company
Entity Tax Identification Number 63-0004250
Entity Incorporation, State or Country Code AL
Entity Address, Address Line One 600 North 18th Street
Entity Address, City or Town Birmingham
Entity Address, State or Province AL
Entity Address, Postal Zip Code 35203
City Area Code 205
Local Phone Number 257-1000
Title of 12(b) Security 5.00% Series Class A Preferred Stock
Trading Symbol ALP PR Q
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000003153
Georgia Power Company  
Document Information [Line Items]  
Entity File Number 1-6468
Entity Registrant Name Georgia Power Company
Entity Tax Identification Number 58-0257110
Entity Incorporation, State or Country Code GA
Entity Address, Address Line One 241 Ralph McGill Boulevard, N.E.
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Entity Address, State or Province GA
Entity Address, Postal Zip Code 30308
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Title of 12(b) Security Series 2017A 5.00% Junior Subordinated Notes due 2077
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Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000041091
Mississippi Power Company  
Document Information [Line Items]  
Entity File Number 001-11229
Entity Registrant Name Mississippi Power Company
Entity Tax Identification Number 64-0205820
Entity Incorporation, State or Country Code MS
Entity Address, Address Line One 2992 West Beach Boulevard
Entity Address, City or Town Gulfport
Entity Address, State or Province MS
Entity Address, Postal Zip Code 39501
City Area Code 228
Local Phone Number 864-1211
Entity Emerging Growth Company false
Entity Central Index Key 0000066904
Southern Power Company  
Document Information [Line Items]  
Entity File Number 001-37803
Entity Registrant Name Southern Power Company
Entity Tax Identification Number 58-2598670
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 30 Ivan Allen Jr. Boulevard, N.W.
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Document Information [Line Items]  
Title of 12(b) Security Series 2016A 1.000% Senior Notes due 2022
Trading Symbol SO/22B
Security Exchange Name NYSE
Southern Power Company | Series 2016B 1.850% Senior Notes Due 2026 [Member]  
Document Information [Line Items]  
Title of 12(b) Security Series 2016B 1.850% Senior Notes due 2026
Trading Symbol SO/26A
Security Exchange Name NYSE
Southern Company Gas  
Document Information [Line Items]  
Entity File Number 1-14174
Entity Registrant Name Southern Company Gas
Entity Tax Identification Number 58-2210952
Entity Incorporation, State or Country Code GA
Entity Address, Address Line One Ten Peachtree Place, N.E.
Entity Address, City or Town Atlanta
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Entity Central Index Key 0001004155