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       &lt;td width="2%" nowrap="nowrap" align="left"&gt;(A)&lt;/td&gt;
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       &lt;td&gt;INTRODUCTION&lt;/td&gt;
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       &lt;td&gt;The condensed quarterly financial statements of each registrant included herein have been prepared
   by such registrant, without audit, pursuant to the rules and regulations of the SEC. The Condensed
   Balance Sheets as of December&amp;#160;31, 2009 have been derived from the audited financial statements of
   each registrant. In the opinion of each registrant&amp;#8217;s management, the information regarding such
   registrant furnished herein reflects all adjustments, which, except as otherwise disclosed, are of
   a normal recurring nature, necessary to present fairly the results of operations for the periods
   ended June&amp;#160;30, 2010 and 2009. Certain information and footnote disclosures normally included in
   annual financial statements prepared in accordance with accounting principles generally accepted in
   the United States have been condensed or omitted pursuant to such rules and regulations, although
   each registrant believes that the disclosures regarding such registrant are adequate to make the
   information presented not misleading. Disclosures which would substantially duplicate the
   disclosures in the Form 10-K and details which have not changed significantly in amount or
   composition since the filing of the Form 10-K are generally omitted from this Quarterly Report on
   Form 10-Q. Therefore, these Condensed Financial Statements should be read in conjunction with the
   financial statements and the notes thereto included in the Form 10-K. Due to the seasonal
   variations in the demand for energy, operating results for the periods presented are not
   necessarily indicative of the operating results to be expected for the full year.&lt;/td&gt;
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       &lt;td&gt;Certain prior years&amp;#8217; data presented in the financial statements have been reclassified to conform
   to the current year presentation.&lt;/td&gt;
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       &lt;td&gt;&lt;b&gt;Affiliate Transactions&lt;/b&gt;&lt;/td&gt;
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       &lt;td&gt;In January&amp;#160;2010, Gulf Power purchased turbine rotor assembly parts owned by Georgia Power and
   Southern Power for approximately $4&amp;#160;million and $6&amp;#160;million, respectively. In June&amp;#160;2010,
   Mississippi Power purchased a turbine rotor assembly part from Gulf Power for approximately $6
   million. These affiliate transactions were in accordance with FERC and state PSC rules and
   guidelines.&lt;/td&gt;
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       &lt;td&gt;&lt;b&gt;Variable Interest Entities&lt;/b&gt;&lt;/td&gt;
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       &lt;td&gt;Effective January&amp;#160;1, 2010, the traditional operating companies and Southern Power adopted new
   accounting guidance which modified the consolidation model and expanded disclosures related to
   variable interest entities (VIE). The primary beneficiary of a VIE is required to consolidate the
   VIE when it has both the power to direct the activities of the VIE that most significantly impact
   the VIE&amp;#8217;s economic performance and the obligation to absorb losses or the right to receive benefits
   from the VIE that could potentially be significant to the VIE. The adoption of this new accounting
   guidance did not result in the traditional operating companies or Southern Power consolidating any
   VIEs that were not already consolidated under previous guidance, nor deconsolidating any VIEs.&lt;/td&gt;
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       &lt;td&gt;Southern Power has certain wholly-owned subsidiaries that are determined to be VIEs. Southern
   Power is considered the primary beneficiary of these VIEs because it controls the most significant
   activities of the VIEs, including operating and maintaining the respective assets, and has the
   obligation to absorb expected losses of these VIEs to the extent of its equity interests.&lt;/td&gt;
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