2.2.0.25falsefalse0206 - Disclosure - Financingtruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
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<!-- Begin Block Tagged Note 6 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>6. FINANCING</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Long-Term Debt Payable to Affiliated Trusts</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Certain of the traditional operating companies have formed certain wholly-owned trust subsidiaries
for the purpose of issuing preferred securities. The proceeds of the related equity investments
and preferred security sales were loaned back to the applicable traditional operating company
through the issuance of junior subordinated notes totaling $412 million, which constitute
substantially all of the assets of these trusts and are reflected in the balance sheets as
long-term debt. Each traditional operating company considers that the mechanisms and obligations
relating to the preferred securities issued for its benefit, taken together, constitute a full and
unconditional guarantee by it of the respective trust’s payment obligations with respect to these
securities. At December 31, 2010, preferred securities of $400 million were outstanding. See Note
1 under “Variable Interest Entities” for additional information on the accounting treatment for
these trusts and the related securities.
</div>
<!-- Folio -->
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Securities Due Within One Year</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A summary of scheduled maturities and redemptions of securities due within one year at December 31
was as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">2009</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><i>(in millions)</i></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Pollution control revenue bonds
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>8</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Capitalized leases
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>23</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior notes
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>600</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,090</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long-term debt
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>670</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,301</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,113</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Maturities through 2015 applicable to total long-term debt are as follows: $1.3 billion in 2011;
$1.8 billion in 2012; $1.7 billion in 2013; $441 million in 2014; and $1.2 billion in 2015.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Bank Term Loans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Certain of the traditional operating companies have entered into bank term loan agreements. In
2010, Mississippi Power entered into a one-year $125 million aggregate principal amount long-term
floating rate bank loan that bears interest based on one-month London Interbank Offered Rate
(LIBOR). The proceeds from this loan were used to repay maturing long-term and short-term
indebtedness and for other general corporate purposes, including Mississippi Power’s continuous
construction program. At December 31, 2010 and 2009, certain of the traditional operating
companies had outstanding bank term loans totaling $615 million and $490 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Senior Notes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Southern Company and its subsidiaries issued a total of $2.9 billion of senior notes in 2010.
Southern Company issued $400 million, and the traditional operating companies’ combined issuances
totaled $2.5 billion. The proceeds of these issuances were used to repay long-term and short-term
indebtedness and for other general corporate purposes including the applicable subsidiary’s
continuous construction program.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At December 31, 2010 and 2009, Southern Company and its subsidiaries had a total of $15.2 billion
and $14.7 billion, respectively, of senior notes outstanding. At December 31, 2010 and 2009,
Southern Company had a total of $1.6 billion and $1.8 billion, respectively, of senior notes
outstanding.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Subsequent to December 31, 2010, Georgia Power issued $300 million aggregate principal amount of
Series 2011A Floating Rate Senior Notes due January 15, 2013. The proceeds were used to repay a
portion of Georgia Power’s outstanding short-term indebtedness and for general corporate purposes,
including Georgia Power’s continuous construction program.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Pollution Control and Other Revenue Bonds</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Pollution control obligations represent loans to the traditional operating companies from public
authorities of funds derived from sales by such authorities of revenue bonds issued to finance
pollution control and solid waste disposal facilities. The traditional operating companies have
$3.1 billion of outstanding pollution control revenue bonds and are required to make payments
sufficient for the authorities to meet principal and interest requirements of such bonds. Proceeds
from certain issuances are restricted until qualifying expenditures are incurred.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2010, Mississippi Power incurred obligations relating to the issuance of $100 million
of revenue bonds in two series, each of which is due December 1, 2040. The first series of $50
million was issued with an initial fixed rate of 2.25% through January 14, 2013 and the second
series of $50 million was issued with a floating rate. Proceeds from the second series bonds were
classified as restricted cash at December 31, 2010 and these bonds were redeemed on February 8,
2011. The proceeds from the first series bonds were used to finance the acquisition and
construction of buildings and immovable equipment in connection with Mississippi Power’s
construction of the Kemper IGCC.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Assets Subject to Lien</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Each of Southern Company’s subsidiaries is organized as a legal entity, separate and apart from
Southern Company and its other subsidiaries. Alabama Power and Gulf Power have granted one or more
liens on certain of their respective property in connection
with the issuance of certain pollution control revenue bonds with an outstanding principal amount
of $194 million. There are no agreements or other arrangements among the Southern Company system
companies under which the assets of one company have been pledged or otherwise made available to
satisfy obligations of Southern Company or any of its other subsidiaries.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Bank Credit Arrangements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table outlines the credit arrangements by company:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="19%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Executable</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Expires Within One</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Term-Loans</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Expires</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Year</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Term</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>No Term</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>One</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Two</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Loan</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Loan</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Company</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Unused</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Year</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Years</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2012</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2013</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Option</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Option</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15"><i>(in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11"><i>(in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><i>(in millions)</i></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Southern Company
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">950</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">950</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">950</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Alabama Power
</div></td>
<td> </td>
<td> </td>
<td align="right">1,271</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,271</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">372</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">506</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">765</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">372</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">134</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Georgia Power
</div></td>
<td> </td>
<td> </td>
<td align="right">1,715</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,703</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">220</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">595</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,120</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">260</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">335</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gulf Power
</div></td>
<td> </td>
<td> </td>
<td align="right">240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">210</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">210</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mississippi Power
</div></td>
<td> </td>
<td> </td>
<td align="right">161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">106</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Southern Power
</div></td>
<td> </td>
<td> </td>
<td align="right">400</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">400</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">400</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
<td colspan="1" align="left" style="border-top: 0px double #000000"> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
<td colspan="1" align="left" style="border-top: 0px double #000000"> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">4,797</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">4,785</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">927</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">81</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,562</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,235</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,008</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">554</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
<td colspan="1" align="left" style="border-top: 0px double #000000"> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000"> </td>
<td colspan="1" align="left" style="border-top: 0px double #000000"> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 3pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Reflects facilities expiring on or before December 31, 2011.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">All of the credit arrangements require payment of commitment fees based on the unused portion
of the commitments or the maintenance of compensating balances with the banks. Commitment fees
average approximately <font style="font-size: 70%"><sup>1</sup></font>/<font style="font-size: 60%">2</font> of 1% or less for Southern Company, the traditional operating companies,
and Southern Power. Compensating balances are not legally restricted from withdrawal.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Most of the credit arrangements with banks have covenants that limit debt levels to 65% of total
capitalization, as defined in the agreements. For purposes of these definitions, debt excludes the
long-term debt payable to affiliated trusts and, in certain arrangements, other hybrid securities.
At December 31, 2010, Southern Company, Southern Power, and the traditional operating companies
were each in compliance with their respective debt limit covenants.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In addition, the credit arrangements typically contain cross default provisions that would be
triggered if the borrower defaulted on other indebtedness above a specified threshold. The cross
default provisions are restricted only to the indebtedness, including any guarantee obligations, of
the company that has such credit arrangements. Southern Company and its subsidiaries are currently
in compliance with all such covenants.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A portion of the $4.8 billion unused credit with banks is allocated to provide liquidity support to
the traditional operating companies’ variable rate pollution control revenue bonds. The amount of
variable rate pollution control revenue bonds requiring liquidity support as of December 31, 2010
was approximately $1.3 billion. Subsequent to December 31, 2010, Georgia Power’s remarketing of
$137 million of puttable variable rate pollution control bonds increased the total requiring
liquidity support to $522 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Southern Company, the traditional operating companies, and Southern Power make short-term
borrowings primarily through commercial paper programs that have the liquidity support of committed
bank credit arrangements. Southern Company and the traditional operating companies may also borrow
through various other arrangements with banks. The amount of short-term bank loans included in
notes payable in the balance sheets at December 31, 2010 was $1 million. There were no short
term-bank loans included in notes payable in the balance sheets at December 31, 2009. At
December 31, 2010, the Southern Company system had approximately $1.3 billion of commercial paper
borrowings outstanding with a weighted average interest rate of 0.3% per annum. During 2010,
Southern Company had an average of $690 million of commercial paper outstanding at a weighted
average interest rate of 0.3% per annum and the maximum amount outstanding was $1.3 billion. At
December 31, 2009, the Southern Company system had approximately $638 million of commercial paper
borrowings outstanding with a weighted average interest rate of 0.3% per annum. During 2009,
Southern Company had an average of $956 million of commercial paper outstanding at a weighted
average interest rate of 0.4% per annum and the maximum amount outstanding was $1.4 billion.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Changes in Redeemable Preferred Stock of Subsidiaries</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Each of the traditional operating companies has issued preferred and/or preference stock. The
preferred stock of Alabama Power and Mississippi Power contains a feature that allows the holders
to elect a majority of such subsidiary’s board of directors if dividends are not paid for four
consecutive quarters. Because such a potential redemption-triggering event is not solely within
the control of Alabama Power and Mississippi Power, this preferred stock is presented as
“Redeemable Preferred Stock of Subsidiaries” in a manner consistent with temporary equity under
applicable accounting standards. The preferred and preference stock at Georgia Power and the
preference stock at Alabama Power and Gulf Power do not contain such a provision that would allow
the holders to elect a majority of such subsidiary’s board. As a result, under applicable
accounting standards, the preferred and preference stock at Georgia Power and the preference stock
at Alabama Power and Gulf Power are required to be shown as “noncontrolling interest,” separately
presented as a component of “Stockholders’ Equity” on Southern Company’s balance sheets, statements
of capitalization, and statements of stockholders’ equity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents changes during the year in redeemable preferred stock of subsidiaries
for Southern Company:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Redeemable Preferred Stock</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>of Subsidiaries</b></td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><i style="font-size: 8pt">(in millions)</i></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at December 31, 2007</b>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">498</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Issued
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Redeemed
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(125</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at December 31, 2008</b>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">375</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Issued
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Redeemed
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at December 31, 2009</b>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">375</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Issued
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Redeemed
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at December 31, 2010</b>
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>375</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringInformation about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 19, 20, 22
-Article 5
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 4
falsefalse12FinancingUnKnownUnKnownUnKnownUnKnownfalsetrue