-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HdYFho/inWtSUrU6pymQ6O51zVEMK1wqul+7ah9XlMTfpHazJcPem2n3zylbAmdw kiYWIlOZvU910XCoKPjyBQ== 0000092122-98-000062.txt : 19980504 0000092122-98-000062.hdr.sgml : 19980504 ACCESSION NUMBER: 0000092122-98-000062 CONFORMED SUBMISSION TYPE: U5S PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980501 SROS: NYSE 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: U5S SEC ACT: SEC FILE NUMBER: 001-03526 FILM NUMBER: 98607959 BUSINESS ADDRESS: STREET 1: 270 PEACHTREE ST CITY: ATLANTA STATE: GA ZIP: 30303 BUSINESS PHONE: 4045060540 MAIL ADDRESS: STREET 1: 270 PEACHTREE STREET CITY: ATLANTA STATE: GA ZIP: 30303 U5S 1 1997 FORM U5S SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ---------------- FORM U5S ANNUAL REPORT For the Fiscal Year Ended December 31, 1997 Filed pursuant to the Public Utility Holding Company Act of 1935 by THE SOUTHERN COMPANY 270 PEACHTREE STREET, N. W. ATLANTA, GEORGIA 30303 THE SOUTHERN COMPANY FORM U5S 1997 TABLE OF CONTENTS ITEM PAGE NUMBER ---- ------------ 1. System Companies and Investments Therein as of December 31, 1997 1 2. Acquisitions or Sales of Utility Assets 5 3 Issue, Sale, Pledge, Guarantee or Assumptions of System Securities 5 4. Acquisition, Redemption or Retirement of System Securities 6 5. Investments in Securities of Nonsystem Companies 8 6. Officers and Directors 9 7. Contributions and Public Relations 43 8. Service, Sales and Construction Contracts 46 9. Wholesale Generators and Foreign Utility Companies 47 10. Financial Statements and Exhibits A
ITEMS ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997. - -------------------------------------------------------------------------- Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value - ----------------- ------------ ----------- ----- ---------- In Thousands THE SOUTHERN COMPANY (SOUTHERN) None None n/a n/a ALABAMA POWER COMPANY (ALABAMA) 5,608,955 100 $2,750,569 $2,750,569 Alabama Property Company 1,000 100 9,401 9,401 Alabama Power Capital Trust I (ALABAMA TRUST I) n/a n/a 3,000 3,000 Alabama Power Capital Trust II (ALABAMA TRUST II) n/a n/a 6,186 6,186 Southern Electric Generating Company (SEGCO) (a) 164,000 50 24,973 24,973 ENERGIA DE NUEVO LEON, S. A. DE C. V. 358 33 1/3 - - GEORGIA POWER COMPANY (GEORGIA) 7,761,500 100 4,019,728 4,019,728 SEGCO (a) 164,000 50 24,973 24,973 Piedmont-Forrest Corporation (PIEDMONT) 100,000 100 8,269 8,269 12,644 (b) 12,644 Georgia Power LP Holdings Corp. (GEORGIA POWER HOLDINGS) 500 100 - - Georgia Power Capital, L.P. (GEORGIA CAPITAL) n/a n/a 3,892 3,892 Georgia Power Capital Trust I (GEORGIA TRUST I) n/a n/a 7,632 7,632 Georgia Power Capital Trust II (GEORGIA TRUST II) n/a n/a 5,807 5,807 Georgia Power Capital Trust III (GEORGIA TRUST III) n/a n/a 6,105 6,105
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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997. - ------------------------------------------------------------------------ (Continued) Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value - ---------------- ------------ --------- ------ ---------- In Thousands GULF POWER COMPANY (GULF) 992,717 100 428,718 428,718 Gulf Power Capital Trust I (GULF TRUST I) n/a n/a 1,324 1,324 MISSISSIPPI POWER COMPANY (MISSISSIPPI) 1,121,000 100 387,824 387,824 Mississippi Power Capital Trust I (MISSISSIPPI TRUST I) n/a n/a 1,082 1,082 MOBILE ENERGY SERVICES HOLDINGS, INC. (MESH) 1,000 100 14,888 14,888 Mobile Energy Services Company, LLC (MESCO) n/a 99 67,020 67,020 SAVANNAH ELECTRIC AND POWER COMPANY (SAVANNAH) 10,844,635 100 $175,631 $175,631 SEI HOLDINGS, INC. (SEIH) 1,000 100 2,132,062 2,132,062 ASOCIADOS DE ELECTRICIDAD 11,999 (c) (d) (d) SEI Y ASOCIADOS DE ARGENTINA S. A. 9,840,000 (c) (d) (d) Hidroelectrica Alicura, S. A. 166,380,000 (c) (d) (d) SOUTHERN COMPANY CAPITAL FUNDING, INC. n/a 100 29,176 29,176 SOUTHERN ELECTRIC, INC. 1,000 100 17 17 SOUTHERN ENERGY FINANCE COMPANY, INC. 1,000 100 108,700 108,700 EPZ Lease, Inc. 1,000 (c) (d) (d) EPZ Lease, L.L.C. None (c) (d) (d) EPZ Lease Holding A, L.L.C. None (c) (d) (d) EPZ Lease Holding B, L.L.C. None (c) (d) (d) EPZ Lease Holding C, L.L.C. None (c) (d) (d) Southern Energy Clairton, Inc. (e) 1,000 (c) (d) (d) Southern Energy Clairton, L.L.C. (e) 1,000 (c) (d) (d) Southern Energy Clairton 2, Inc. (e) 1,000 (c) (d) (d)
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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997. - ------------------------------------------------------------------------ (Continued) Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value - ----------- ------------ ----------- ------ ----------- In Thousands SOUTHERN ENERGY, INC. (Southern Energy) 1,000 100 70,731 70,731 SEI Operadora de Argentina, S. A. 11,999 (c) (d) (d) Southern Electric International- Asia, Inc 1,000 (c) (d) (d) Southern Electric International, GmbH 500 (c) (d) (d) SOUTHERN ENERGY INTERNATIONAL, 1,000 100 2,466,040 2,466,040 INC. CAYMAN ENERGY TRADERS 1 (c) (d) (d) Southern Electric do Brazil Participacoes, Ltda n/a (c) (d) (d) Companhia Energetica de Minas Gerais (f) n/a (c) (d) (d) SOUTHERN ENERGY - ASIA, INC. 1,000 100 1,422,400 1,422,400 Consolidated Electric Power Asia Limited (CEPA) (g) 1,066,124,419 (c) (d) (d) SOUTHERN ENERGY DO BRAZIL, LTDA n/a 99.85 50 50 SOUTHERN ENERGY E ASSOCIADOS PARTICIPACOES, S.A. n/a 100 81,000 81,000 SOUTHERN ENERGY - NEWCO 2, INC. 1,000 100 218,897 218,897 SEI Chile, S. A. 999 (c) (d) (d) Inversiones SEI Chile Limitada n/a (c) (d) (d) Empresa Electrica del Norte Grande, S. A. (Edelnor) 158,643,607 (c) (d) (d) Sitranor S. A. n/a (c) (d) (d) Electrica SEI Chile Limitada n/a (c) (d) (d) Energia del Pacifico S. A. 1,000 (c) (d) (d) SEI Beteiligungs GmbH 1 (c) (d) (d) P. T. Tarahan Power Company n/a (c) (d) (d) Southern Electric Bahamas Holdings, Ltd. 1,000 100 35,541 35,541 Southern Electric Bahamas, Ltd. 5,000 (c) (d) (d) ICD Utilities Limited 2,500,000 (c) (d) (d) Freeport Power Company Limited 910,809 (c) (d) (d) SEI WORLDWIDE HOLDINGS, INC. 1,000 (c) (d) (d) SEI Worldwide Holdings (Germany) GmbH (h) 3 (c) (d) (d) SEI GERMANY BEWAG, INC. 1,000 (c) (d) (d) SEI Worldwide Holdings (Germany) GmbH (h) 3 (c) (d) (d) Southern Energy Holdings Beteiligungs gesellschaft mbH (i) 3 (c) (d) (d) BEWAG (i) 29,120,002 (c) (d) (d)
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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997 ------------------------------------------------------------------------- (Continued) Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value - --------------- ------------ ---------- ----- ---------- In Thousands SOUTHERN ELECTRIC INTERNATIONAL- EUROPE, INC. 1,000 100 367,197 369,197 The Southern Company - Europe plc 50,000 (c) (d) (d) Southern Electric International Finance, Inc. 1,000 (c) (d) (d) Southern Energy Development - Europe Limited 2 (c) (d) (d) Southern Electric International - Netherlands B.V. 55 (c) (d) (d) SWEB Holdings Limited 150,000 (c) (d) (d) Southern Investments UK plc 500,400,587 (c) (d) (d) South Western Electricity plc 113,989,525 (c) (d) (d) SOUTHERN ELECTRIC INTERNATIONAL TRINIDAD, INC. 1,000 100 39,126 39,126 The Power Generation Company of Trinidad and Tobago Limited 188,370,000 (c) (d) (d) SOUTHERN ENERGY NORTH AMERICA, INC. 500 100 118,474 118,474 SEI Birchwood, Inc. 1,000 (c) (d) (d) Birchwood Power Partners, L. P. n/a (c) (d) (d) Greenhost, Inc. 50 50 (d) (d) SEI Hawaiian Cogenerators, Inc. 1,000 (c) (d) (d) SEI State Line, Inc. 1,000 (c) (d) (d) State Line Holding Corporation (j) 1,000 (c) (d) (d) State Line Energy, L.L.C. (j) n/a (c) (d) (d) Southern Energy - Cajun, Inc. 10,000 (c) (d) (d) Louisiana Generating L.L.C. (j) n/a (c) (d) (d) Southern Energy Trading and Marketing, Inc. 1,000 (c) (d) (d) Southern Energy Retail Trading and Marketing, Inc. (j) 1,000 (c) (d) (d) SC Energy Ventures, Inc. (j) 1,000 (c) (d) (d) SC Ashwood Holding, Inc. (j) 1,000 (c) (d) (d) Southern Company Energy Marketing G.P., L.L.C. (j) n/a (c) (d) (d) Southern Company Energy Marketing L.P. (j) n/a (c) (d) (d) SOUTHERN COMPANY SERVICES, INC. (SCS) 14,500 100 875 875 SOUTHERN COMMUNICATIONS SERVICES, INC. (Southern Communications) 500 100 101,725 101,725 67,000 (k) 67,000 SOUTHERN ELECTRIC RAILROAD COMPANY (SERC) 5,000 100 5 5
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ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997 - ------------------------------------------------------------------------ (Continued) Name of Company Number of Percentage Issuer (Add abbreviation Common of Voting Book Owner's used herein) Shares Owned Power Value Book Value ---------------- ------------- --------- ------ ----------- In Thousands SOUTHERN INFORMATION HOLDING COMPANY, INC. 1,000 100 1,382 1,382 Southern Information 1, Inc. 1,000 100 1 1 Southern Information 2, Inc. 1,000 100 1 1 SOUTHERN NUCLEAR OPERATING COMPANY, INC. (Southern Nuclear) 1,000 100 1,862 1,862 5,000 (l) 5,000 SOUTHERN TELECOM HOLDING COMPANY, INC. 1,000 100 3,563 3,563 Southern Telecom 1, Inc. 1,000 100 1 1 Southern Telecom 2, Inc. 1,000 100 1 1 SOUTHERN COMPANY ENERGY SOLUTIONS, INC. (Energy 500 100 20,428 20,428 Solutions) (formerly The Southern Development and Investment Group, Inc.) Notes to Item 1: (a) SEGCO is 50% owned by ALABAMA and 50% owned by GEORGIA. The amounts shown reflect the respective ownership interests of each company. (b) Promissory note due on demand; interest rate, based on GEORGIA's embedded cost of capital, was 9.66% at January 1, 1998. (c) This information is contained in Item 9, Part I(a). (d) This information is filed confidentially pursuant to Rule 104. (e) Southern Energy Clairton, Inc. Southern Energy Clairton, L.L.C., and Southern Energy Clairton 2, Inc. were all incorporated in Delaware, in May, 1997. (f) Incorporated in Brazil, in May, 1952. (g) Incorporated in Bermuda, in 1993. (h) SEI Worldwide Holdings (Germany) GmbH incorporated in Germany, in 1997. (i) Southern Energy Holdings Beteiligungsgesellschaft mbH incorporated in Germany, in July, 1997; and BEWAG incorporated in Germany, in 1992. (j) State Line Holding Corporation incorporated in Delaware, in July, 1997; State Line Energy, L.L.C. incorporated in Indiana, in April, 1996; Louisiana Generating L.L.C. incorporated in Delaware, in June, 1996; Southern Energy Retail Trading and Marketing, Inc. incorporated in Delaware, in February, 1997; SC Energy Ventures, Inc. incorporated in Georgia, in August, 1997; SC Ashwood Holding, Inc. incorporated in Georgia, in August, 1997; Southern Company Energy Marketing G.P., L.L.C. incorporated in Delaware, in August, 1997; and Southern Company Energy Marketing L.P. incorporated in Delaware, in August, 1997. (k) Unsecured notes payable due on or before December 31, 2000 at an end-of-year interest rate of 7.02%. (l) Unsecured notes payable due on or before December 31, 2000 at an end-of-year interest rate of 5.70%. 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 1997 Name of Company Indicate Name of Issuer and Acquiring, Redeeming Number of Shares or Principal Amount Commission Title of Issue or Retiring Securities Acquired Redeemed Retired Consideration Authorization ------------------- ---------------------- -------- -------- ------- ------------- ------------ (See Note) ALABAMA: First Mortgage Bonds 9 1/4% Series due 2021 ALABAMA None $74,951,000 $74,951,000 $74,951,000 Preferred Stock 7.60% Series ALABAMA None $100,000,000 $100,000,000 $100,000,000 5.96% Series ALABAMA None $7,000,000 $7,000,000 $7,235,900 6.88% Series ALABAMA None $5,000,000 $5,000,000 $5,145,000 7.60% Series ALABAMA None $50,000,000 $50,000,000 $50,000,000 4.20% Series ALABAMA $22,880,000 None $22,880,000 $17,967,316 GEORGIA: First Mortgage Bonds 8.625% Series due 2022 GEORGIA None $60,258,000 $60,258,000 $60,258,000 Pollution Control Revenue Bonds 8.375% Series due 2017 GEORGIA None $49,600,000 $49,600,000 $49,600,000 8.375% Series due 2017 GEORGIA None $20,800,000 $20,800,000 $20,800,000 8.375% Series due 2017 GEORGIA None $19,600,000 $19,600,000 $19,600,000 5.70% Series due 2004 GEORGIA None $12,800,000 $12,800,000 $12,800,000 5.70% Series due 2004 GEORGIA None $26,000,000 $26,000,000 $26,000,000 6.20% Series due 2022 GEORGIA None $38,000,000 $38,000,000 $38,000,000 6.20% Series due 2022 GEORGIA None $37,000,000 $37,000,000 $37,000,000 6.20% Series due 2022 GEORGIA None $5,700,000 $5,700,000 $5,700,000 6.20% Series due 2022 GEORGIA None $7,700,000 $7,700,000 $7,700,000 6.20% Series due 2022 GEORGIA None $17,500,000 $17,500,000 $17,500,000 9 3/8% Series due 2017 GEORGIA None $50,000,000 $50,000,000 $50,000,000 Preferred Stock $1.90 Series GEORGIA None $49,027,500 $49,027,500 $49,027,500 $7.72 Series GEORGIA None $30,000,000 $30,000,000 $31,053,000 $1.9875 Series GEORGIA None $54,155,000 $54,155,000 $54,155,000 $1.9375 Series GEORGIA None $58,757,500 $58,757,500 $58,757,500 $5.00 Series GEORGIA $963,600 None $963,600 $917,733 $4.92 Series GEORGIA $7,672,300 None $7,672,300 $7,475,122 $4.60 Series GEORGIA $27,429,800 None $27,429,800 $23,584,142 $4.96 Series GEORGIA $5,810,400 None $5,810,400 $5,706,975 $4.60 1962 Series GEORGIA $5,192,000 None $5,192,000 $4,729,393 $4.60 1963 Series GEORGIA $4,448,800 None $4,448,800 $4,052,412 $4.60 1964 Series GEORGIA $3,899,500 None $3,899,500 $3,552,055 $4.72 Series GEORGIA $4,246,900 None $4,246,900 $3,969,577
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ITEM 4. ACQUISITION, REDEMPTION, OR RETIREMENT OF SYSTEM SECURITIES. - ------------------------------------------------------------------------- Calendar Year 1997 Name of Company Indicate Name of Issuer and Acquiring, Redeeming Number of Shares or Principal Amount Commission Title of Issue or Retiring Securities Acquired Redeemed Retired Consideration Authorization ------------------ ---------------------- ------- -------- ------- ------------ ------------- (See Note) $5.64 Series GEORGIA $5,768,200 None $5,768,200 $5,768,200 Series K Variable Rate GEORGIA $34,321,000 None $34,321,000 $35,111,756 Series L Variable Rate GEORGIA $35,787,075 None $35,787,075 $35,486,464 $1.925 Series GEORGIA None $28,912,500 $28,912,500 $28,912,500 GULF: First Mortgage Bonds 6 7/8% Series due 1997 GULF None None $25,000,000 $25,000,000 Pollution Control Revenue Bonds 8.25% Series due 2017 GULF None $32,000,000 $32,000,000 $32,000,000 6.75% Series due 2022 GULF None $8,930,000 $8,930,000 $8,930,000 Preferred Stock 7.88% Series GULF None 50,000 50,000 $5,000,000 7.52% Series GULF None 50,000 50,000 $5,000,000 7.00% Series GULF None 580,000 580,000 $14,500,000 7.30% Series GULF None 600,000 600,000 $15,000,000 4.64% Series GULF 38,473 None 38,473 $3,336,763 5.16% Series GULF 36,426 None 36,426 $3,642,600 5.44% Series GULF 33,716 None 33,716 $3,371,600 6.72% Series GULF 453,571 None 453,571 $11,339,275 Adjustable Rate GULF 568,440 None 568,440 $14,211,000 MISSISSIPPI: Pollution Control Bonds 5.80% Series due 2007 MISSISSIPPI None $10,000 None $10,000 Preferred Stock 4.40% Series MISSISSIPPI None $3,052,400 $3,052,400 $2,673,192 4.60% Series MISSISSIPPI None $1,136,000 $1,136,000 $997,214 4.72% Series MISSISSIPPI None $3,330,000 $3,330,000 $3,157,810 7.25% Series MISSISSIPPI None $35,000,000 $35,000,000 $35,232,603 SAVANNAH: Pollution Control Bonds 6 3/4% Series SAVANNAH None $13,870,000 $13,870,000 $14,147,400 Note to Item 4: All transactions exempt pursuant to Rule 42(b)(2), (4) or (5) or authorized in File No. 70-8095 or in the respective proceedings relating to the issuance and sale of preferred stock.
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ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES. - ----------------------------------------------------------- Number of Shares or Carrying Principal Value Name of Owner Name of Issuer Amount Owned to Owner - ------------- -------------- ------------ -------- ALABAMA (one item) (1) 204 shares $1 ALABAMA (four items) (2) $654,000 $654,000 GEORGIA (one item) (3) $2,750,000 $2,750,000 GULF (five items) (1) 165 shares $1 Energy Solutions (one item) (4) 130,381 shares $1
Notes to Item 5: (1) Securities representing bankruptcy distributions applicable to obligations of customers incurred in the ordinary course of business. (2) 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. (3) 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.) (4) Represents Energy Solutions investment in Integrated Communication Systems, Inc. (ICS). ICS is engaged in providing two-way communications over local telephone lines for a wide range of energy-related services in the residential and small commercial markets. 8 ITEM 6. OFFICERS AND DIRECTORS. - ------------------------------------ PART I. ------- The following are the abbreviations to be used for principal business address and positions. Principal Business Address Code - ------------------------------------------ 270 Peachtree Street Atlanta, GA 30303 (a) 600 North 18th Street Birmingham, AL 35291 (b) 241 Ralph McGill Boulevard, N.E. Atlanta, GA 30308-3374 (c) 500 Bayfront Parkway Pensacola, FL 32501 (d) 900 Ashwood Parkway Suite 500 Atlanta, GA 30338 (e) 2992 West Beach Boulevard Gulfport, MS 39501 (f) 600 East Bay Street Savannah, GA 31401 (g) Suipacha 1111 Piso 18 1368 Buenos Aires, Argentina (h) LN Alem 712 - Piso 7 (1001) Buenos Aires, Argentina (i) Apoquindo 3721 Office 114 Las Condes, Chile (j) Avenida Grecia 750 Casilla 1290 Antofagasta, Chile (k) 800 Park Avenue, Aztec West Almondsbury, Bristol BS12 4SE (l) 64 Perimeter Center East Atlanta, GA 30346 (m) 42 Inverness Center Parkway Birmingham, AL 35242 (n) 40 Inverness Center Parkway Birmingham, AL 35242 (o) Position Code - ------------------------------------------ Director D President P Chief Executive Officer CEO Chief Financial Officer CFO Chief Accounting Officer CAO Chief Information Officer CIO 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 General Manager GM Managing Director MD Commissioner M SOUTHERN Name and Principal Address (a) Position - -------------------------------------------- John C. Adams D 755 Lee Street P. O. Box 272 Alexander City, AL 35011-0272 A. D. Correll D 133 Peachtree Street, N.E. Atlanta, GA 30303 A. W. Dahlberg D,P,CEO Paul J. DeNicola (c) D,EVP Jack Edwards D P. O. Box 123 Mobile, AL 36601 H. Allen Franklin (c) D,EVP Bruce S. Gordon D 1095 Avenue of the Americas New York, NY 10036 L. G. Hardman III D P. O. Box 149 Commerce, GA 30529 Elmer B. Harris (b) D,EVP William A. Parker, Jr. D 1380 West Paces Ferry Road, N.W. Suite 260 Atlanta, GA 30327 William J. Rushton, III D P. O. Box 2606 Birmingham, AL 35202 Dr. Gloria M. Shatto D 610 Mount Berry Station Mount Berry, GA 30149 9 ITEM 6. OFFICERS AND DIRECTORS. - ---------------------------------- PART I. (Continued) -------------------- SOUTHERN (continued) Name and Principal Address (a) Position - --------------------------------------------- Gerald J. St. Pe' D P. O. Box 149 Pascagoula, MS 39568 Herbert Stockham D P. O. Box 130118 Birmingham, AL 35213 W. L. Westbrook FVP,CFO,T David M. Ratcliffe SVP Stephen A. Wakefield SVP,L David R. Altman VP Thomas G. Boren (e) VP Bill M. Guthrie (b) VP C. Alan Martin VP John G. Richardson VP 1130 Connecticut Avenue, NW Washington, DC 20036 Dr. W. Robert Woodall, Jr. VP W. Dean Hudson (c) C Tommy Chisholm S ALABAMA Name and Principal Address (b) Position - -------------------------------------------- Whit Armstrong D P. O. Box 900 Enterprise, AL 36331 A. W. Dahlberg (a) D Peter V. Gregerson, Sr. D 644 Walnut Street Gadsden, AL 35901 Bill M. Guthrie (b) D,EVP,CPO Elmer B. Harris D,P,CEO Carl E. Jones, Jr. D P. O. Box 2527 Mobile, AL 36622 Patricia M. King D 1501 South Quintard Avenue Anniston, AL 36201 James K. Lowder D 2000 Interstate Park Drive Suite 400 Montgomery, AL 36109 Wallace D. Malone, Jr. D P. O. Box 2554 Birmingham, AL 35290 William V. Muse D Auburn University 107 Samford Hall Auburn, AL 36849 John T. Porter D 1101 Martin L. King, Jr. Dr. S.W. Birmingham, AL 35211 Robert D. Powers D 202 East Broad Street Eufaula, AL 36027 C. Dowd Ritter, III D P. O. Box 11007 Birmingham, AL 35288 John W. Rouse D P. O. Box 55305 Birmingham, AL 35255 William J. Rushton, III D P. O. Box 2606 Birmingham, AL 35202 James H. Sanford D 1001 McQueen Smith Road South Prattville, AL 36066 John C. Webb, IV D 125 W. Washington Street Demopolis, AL 36732 Banks H. Farris EVP William B. Hutchins, III EVP,CFO Charles D. McCrary EVP Robert A. Buettner SVP,L Michael D. Garrett SVP Earl B. Parsons, Jr. SVP Christopher C. Womack SVP Art P. Beattie VP,S,T William W. Cooper VP James M. Corbitt VP W. Roy Crow VP Thomas A. Fanning (c) VP,CIO C. Stephen Fant VP Robert Holmes, Jr. VP Robin A. Hurst VP J. Bruce Jones VP C. Alan Martin (a) VP Donald W. Reese VP Michael L. Scott VP Julian H. Smith, Jr. VP William R. Smith VP Susan N. Story VP Anthony J. Topazi VP Terry H. Waters VP ALABAMA PROPERTY COMPANY Name and Principal Address (b) Position - -------------------------------------------- Elmer B. Harris D,P William B. Hutchins, III D,VP Susan N. Story D,VP Art P. Beattie S,T 10 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) -------------------- GEORGIA Name and Principal Address (c) Position - -------------------------------------------- Daniel P. Amos D 1932 Wynnton Road Columbus, GA Juanita Baranco D 7060 Jonesboro Road Morrow, GA 30260 A. W. Dahlberg (a) D William A. Fickling, Jr. D P. O. Box 1976 Macon, GA 31202-1976 H. Allen Franklin D,P,CEO L. G. Hardman III D P. O. Box 149 Commerce, GA 30529 Warren Y. Jobe D,EVP,T, CFO James R. Lientz, Jr. D P. O. Box 4899 Atlanta, GA 30302-4899 G. Joseph Prendergast D 191 Peachtree Street, N.E. Atlanta, GA 30303-1757 Herman J. Russell D 504 Fair Street, S.W. Atlanta, GA 30313 Dr. Gloria M. Shatto D P. O. Box 490039 Mount Berry, GA 30149-0039 William Jerry Vereen D P. O. Box 460 Moultrie, GA 31776-0460 Carl Ware D P. O. Box Drawer 1734 Atlanta, GA 30301 Thomas R. Williams D 3200 Arden Rd. NW Atlanta, GA 30305 William C. Archer, III EVP Bill M. Guthrie (b) EVP Gene R. Hodges EVP William P. Bowers SVP Wayne T. Dahlke SVP James K. Davis SVP Robert H. Haubein, Jr. SVP Fred D. Williams SVP Judy M. Anderson VP,S Robert L. Boyer VP M. A. Brown VP J. L. Conn VP Fred W. DeMent, Jr. VP Thomas A. Fanning VP,CIO J. W. George VP Leonard J. Haynes VP Craig S. Lesser VP J. B. Manley VP C. Alan Martin (a) VP J. L. Martin, Jr. VP Cliff Thrasher VP,C,CAO James A. Wilson VP Dr. W. Robert Woodall, Jr. (a) VP PIEDMONT Name and Principal Address (c) Position - -------------------------------------------- H. Allen Franklin D,P Warren Y. Jobe D,EVP,T Judy M. Anderson VP,S GEORGIA POWER HOLDINGS Name and Principal Address (c) Position - -------------------------------------------- Warren Y. Jobe D,P,T Judy M. Anderson VP,S Charles O. Rawlins (a) VP SEGCO Name and Principal Address (b) Position - -------------------------------------------- Robert L. Boyer (c) D H. Allen Franklin (c) D,VP Bill M. Guthrie D,VP Elmer B. Harris D,P Robert H. Haubein, Jr. (c) D William B. Hutchins, III D,VP Warren Y. Jobe (c) D Charles D. McCrary D Earl B. Parsons, Jr. D Art P. Beattie S,T 11 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) -------------------- GULF Name and Principal Address (d) Position - -------------------------------------------- Travis J. Bowden D,P,CEO Paul J. DeNicola (c) D Fred C. Donovan D P. O. Box 13370 Pensacola, FL 32591 W. Deck Hull, Jr. D P. O. Box 2266 Panama City, FL 32402 Joseph K. Tannehill D 10 Arthur Drive Lynn Haven, FL 32444 Barbara H. Thames D 1450 Berryhill Road Milton, FL 32570 F. M. Fisher, Jr. VP J. E. Hodges, Jr. VP C. Alan Martin (a) VP Robert G. Moore VP Arlan E. Scarbrough VP,CFO Ronnie R. Labrato C Warren E. Tate S,T ENERGIA de NUEVO LEON, S.A. DE C.V. Name and Principal Address (e) Position - -------------------------------------------- Marcelo Canales Clarion D Lazaro Cardenas 2400 Despacho PD-11 PB Edificia Losoles, Garza Garcia 66220 N. L. Mexico William R. Easter D Jean M. Fauvd D Lazaro Cardenas 2400 Despacho PD-11 PB Edificia Losoles, Garza Garcia 66220 N. L. Mexico Ismael Garza T. D Lazaro Cardenas 2400 Despacho PD-11 PB Edificia Losoles, Garza Garcia 66220 N. L. Mexico Tanenguy Le Marechal D Lazaro Cardenas 2400 Despacho PD-11 PB Edificia Losoles, Garza Garcia 66220 N. L. Mexico Raul Rangel Hinojosa D Lazaro Cardenas 2400 Despacho PD-11 PB Edificia Losoles, Garza Garcia 66220 N. L. Mexico Santiago C. Reyes Retana D Lazaro Cardenas 2400 Despacho PD-11 PB Edificia Losoles, Garza Garcia 66220 N. L. Mexico Andres Gonzalez Sandoval S Lazaro Cardenas 2400 Despacho PD-11 PB Edificia Losoles, Garza Garcia 66220 N. L. Mexico MISSISSIPPI Name and Principal Address (f) Position - -------------------------------------------- Paul J. DeNicola (c) D Edwin E. Downer D 7642 Poplar Springs Drive Meridian, MS 39305 Dwight H. Evans D,P,CEO Robert S. Gaddis D P. O. Box 168 Laurel, MS 39440 Walter H. Hurt, III D P. O. Box 9 Inverness, MS 38753 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 Andrew J. Dearman, III VP Bill M. Guthrie (b) VP,CPO C. Alan Martin (a) VP Don E. Mason VP Michael W. Southern VP,CFO, S,T Frances V. Turnage C 12 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) -------------------- MOBILE ENERGY SERVICES HOLDINGS, INC. Name and Principal Address (e) Position - --------------------------------------------- Kerry E. Adams (n) D Thomas G. Boren D S. Marce Fuller D,P,CEO Alan W. Harrelson D J. Bruce Jones D Thomas J. Madden, III D Dean G. Koch D Richard J. Koch VP James A. Ward D,VP,C Tommy Chisholm (a) S MOBILE ENERGY SERVICES COMPANY, LLC Name and Principal Address (e) Position - -------------------------------------------- Thomas G. Boren P,CEO S. Marce Fuller VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Richard J. Koch VP,GM Christopher Kysar VP Mark R. Ogle VP James A. Ward VP,C Tommy Chisholm (a) S SAVANNAH Name and Principal Address (g) Position - -------------------------------------------- Archie H. Davis D P. O. Box 188 Savannah, GA 31402 Paul J. DeNicola (c) D Walter D. Gnann D P. O. Box 334 Springfield, GA 31329 G. Edison Holland, Jr. D,P,CEO 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 Bill M. Guthrie (b) VP,CPO C. Alan Martin (a) VP Larry M. Porter VP Kirby R. Willis VP,T,CFO Nancy Frankenhauser C,S SEIH Name and Principal Address (e) Position - -------------------------------------------- Thomas G. Boren D,P A. W. Dahlberg (a) D Paul J. DeNicola (c) D H. Allen Franklin (c) D Elmer B. Harris (b) D W. L. Westbrook (a) D S. Marce Fuller VP Raymond D. Hill VP,T,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Ronald E. Leggett VP Richard J. Pershing VP Tommy Chisholm (a) S James A. Ward C Asociados de Electricidad, S.A. Name and Principal Address (h) Position - --------------------------------------------- Ricardo Falabella D Mariano F. Grondona D,S J. William Holden, III (e) D,P SEI y Asociados de Argentina, S.A. Name and Principal Address (i) Position - --------------------------------------------- Juan Carlos Apostolo D Peter J. Davenport D Ricardo Falabella D Mariano F. Grondona D,S J. William Holden, III (e) D,P Martin Inhargue D W. L. Westbrook (a) D 13 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) -------------------- Hidroelectrica Alicura, S.A. Name and Principal Address (i) Position - -------------------------------------------- Peter J. Davenport D Ricardo Falabella D,VP Mariano F. Grondona D,S Roberto Guillermo Haas D J. William Holden, III (e) D,P Santiago J. Bergada Moritan D Oscar Perticone D Diego Sapag D Southern Electric, Inc. Name and Principal Address (e) Position - -------------------------------------------- Richard J. Pershing D,VP Thomas G. Boren P,CEO Tommy Chisholm (a) S Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Barney S. Rush VP James A. Ward VP,T Southern Energy International, Inc. Name and Principal Address (e) Position - -------------------------------------------- Thomas G. Boren D Richard J. Pershing D James A. Ward D,P Raymond D. Hill VP,T 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Tommy Chisholm (a) S Southern Energy - Newco 2, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D James A. Ward D,P Raymond D. Hill VP,T 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Tommy Chisholm (a) S SEI Chile, S.A. Name and Principal Address (j) Position - ---------------------------------------------- Felicia L. Bellows (i) D Edgardo Boeninger Kausel D Jorge Granic Latorre D Pastor Sanjurjo (k) D,CEO Carlos Larrain Pena D Eduardo Zuniga Pacheco D Empresa Electrica del Norte Grande, S.A. Name and Principal Address (k) Position - --------------------------------------------- Edgardo Boeninger Kausel D Edmundo Dupre Echeverria D,VP J. William Holden, III D Andres Kern D Mark S. Lynch CEO Richard J. Pershing D W. L. Westbrook (a) D Sitranor S. A. Name and Principal Address (k) Position - --------------------------------------------- Ricardo Campano Gandara D Mario Espinoza Duran D Luis Hormazibal Villagran D Carlos Larrain Pena D Oscar Moscoso Fabres D Pastor Sanjurjo D Eduardo Zuniga Pacheco D Pedro Artiagoitia Artave CEO Energia del Pacifico S. A. Name and Principal Address (k) Position - --------------------------------------------- Jorge Granic Latorre D Carlos Larrain Pena D Pastor Sanjurjo D SEBH Name and Principal Address (e) Position - -------------------------------------------- Thomas G. Boren D,P J. William Holden, III D,VP Richard J. Pershing D,VP Raymond D. Hill VP,T,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Ronald E. Leggett VP James A. Ward C Tommy Chisholm (a) S 14 ITEM 6. OFFICERS AND DIRECTORS - -------------------------------- PART I. (Continued) -------------------- Southern Electric Bahamas Ltd. Name and Principal Address (e) Position - -------------------------------------------- Thomas G. Boren D,P J. William Holden, III D,VP Richard J. Pershing D,VP Raymond D. Hill VP,T,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Ronald E. Leggett VP Tommy Chisholm (a) S James A. Ward C Freeport Power Company Limited Name and Principal Address Position - ----------------------------------- Thomas G. Boren (e) D Larry R. Brantley D,P,CEO P. O. Box F-40888 Freeport, Grand Bahama Island, Bahamas Jack A. Hayward D P. O. Box F-40888 Freeport, Grand Bahama Island, Bahamas J. William Holden, III (e) D Albert J. Miller D P. O. Box F-40888 Freeport, Grand Bahama Island, Bahamas Richard J. Pershing (e) D Edward P. St. George D P. O. Box F-40888 Freeport, Grand Bahama Island, Bahamas Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Ian O. Barry VP,T P. O. Box F-40888 Freeport, Grand Bahama Island, Bahamas Ronald E. Leggett (e) VP Willie A. M. Moss VP,S P. O. Box F-40888 Freeport, Grand Bahama Island, Bahamas SEI Beteiligungs GmbH Name and Principal Address (e) Position - -------------------------------------------- Thomas G. Boren D,MD Barney S. Rush D,MD James A. Ward D,MD P. T. Tarahan Power Company Name and Principal Address (e) Position - --------------------------------------------- Tanri Abeng M Ir. Aburizal Bakrie P,M Thomas G. Boren M David T. Gallaspy M Mintarto Halim M Ronald E. Leggett M Mark S. Lynch M Soy M. Pardede M Richard J. Pershing M George S. Tahija M James A. Ward M Raymond V. Haley P,D Thomas K. Amster D Lekir A. Daud D Ir. Arjono D. Kamarga D Amin M. Lakhani D Southern Electric Brasil Participacoes Ltda. Name and Principal Address Position - -------------------------------------------- Pedro Paulo Cristofaro D Av Almirante Barroso, No. 52, 5 Andar Rio de Janeiro, Brasil CEP 20031 Julian Fonseca Pena Chediak D Av Almirante Barroso, No. 52, 5 Andar Rio de Janeiro, Brasil CEP 20031 Southern Electric International - Europe, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P Richard J. Pershing D James A. Ward D,VP,T Tommy Chisholm (a) S 15 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) -------------------- Southern Electric International Finance, Inc. Name and Principal Address (e) Position - --------------------------------------------- James J. Coppola, Jr. D D. R. Rozier, Jr. D L. Terry Turner D William R. Bechstein D James A. Ward P Raymond D. Hill VP,T 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Tommy Chisholm S Southern Energy Development - Europe Limited Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D Carson B. Harreld D Raymond D. Hill D 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Gale E. Klappa D Mark R. Ogle D,S Richard J. Pershing D Barney S. Rush D C. Philip Saunders D James A. Ward D Southern Electric International - Netherlands B.V. Name and Principal Address (e) Position - -------------------------------------------------- Thomas G. Boren D Tommy Chisholm D Sam H. Dabbs, Jr. D Raymond D. Hill D 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Richard J. Pershing D Patricia L. Roberts D Barney S. Rush D James A. Ward D The Southern Company - Europe plc Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D Raymond D. Hill D 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Karl E. Olsoni D Richard Owen D Richard J. Pershing D James A. Ward D Mark R. Ogle S Southern Energy UK Generation Limited Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D Sam H. Dabbs, Jr. D Richard J. Pershing D Patricia L. Roberts D James A. Ward D Tommy Chisholm S Southern Investments UK plc Name and Principal Address (e) Position - -------------------------------------------- Accentacross Limited D Thomas G. Boren D Carson B. Harreld D,CFO,CAO Gale E. Klappa D Mighteager Limited D Richard J. Pershing D,CEO Barney S. Rush D C. Philip Saunders D Robert Symons D Mark R. Ogle S South Western Electricity plc Name and Principal Address (l) Position - -------------------------------------------- Maurice Fletcher D Carson B. Harreld D Gale E. Klappa D,CEO Roger L. Petersen D C. Philip Saunders D Robin D. Edmunds S 16 ITEM 6. OFFICERS AND DIRECTORS. - ---------------------------------- PART I. (Continued) -------------------- Southern Electric International Trinidad, Inc. Name and Principal Address (e) Position - ---------------------------------------------- Thomas G. Boren D,P J. William Holden, III D,VP James A. Ward D Tommy Chisholm (a) S,T Southern Electric International, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D James A. Ward D,VP,T S. Marce Fuller VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Richard J. Pershing VP Tommy Chisholm S The Power Generation Company of Trinidad and Tobago Limited Name and Principal Address Position - --------------------------------------------- Ronald Chan D Scotia Centre Cr. Park and Richmond Streets Port of Spain, Trinidad, W.I. Barbara Fagan D 200 Westlake Park Blvd. Houston, TX 77253 J. William Holden, III D Ronald E. Leggett (e) D John MacKay D 6 St. Kitts Avenue Federation Park, Trinidad, W. I. Judith Morris D 63 Frederick Street Port of Spain, Trinidad, W.I. Jacqueline Quamina D Eric Williams Plaza Independence Square Port of Spain, Trinidad, W.I. Chandrabhan Sharma D University of the West Indies St. Augustine, Trinidad, W.I. W. L. Westbrook (a) D Henry T. E. Coolidge, Jr. D,CEO 6A Queens Park West, First Floor Port of Spain, Trinidad, W.I. Charmaine Pemberton-Carrington S 63 Frederick Street Port of Spain, Trinidad, W.I. Southern Energy - Asia, Inc. Name and Principal Address (e) Position - --------------------------------------------- Edwin H. Adams D,VP Thomas G. Boren D,P A. W. Dahlberg D Raymond D. Hill D,EVP 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Dean Koch D,VP Frederick D. Kuester D,VP Richard J. Pershing D,VP James A. Ward D,VP,T S. Marce Fuller VP Karl E. Olsoni VP Tommy Chisholm S 17 ITEM 6. OFFICERS AND DIRECTORS. - ---------------------------------- PART I. (Continued) -------------------- SCS Name and Principal Address (c) Position - --------------------------------------------- A. W. Dahlberg (a) D Paul J. DeNicola D,P,CEO H. Allen Franklin (c) D Elmer B. Harris (b) D Bill M. Guthrie (b) SEVP,CPO Kerry E. Adams (n) EVP David M. Ratcliffe (a) EVP W. L. Westbrook (a) EVP Thomas A. Fanning SVP Robert H. Haubein SVP William K. Newman (b) SVP Earl B. Parsons, Jr. SVP David R. Altman (a) VP Robert S. Beason VP I. Otis Berkhan VP Robert L. Boyer VP Tommy Chisholm (a) VP,S,L James L. Conn VP A. J. Connor (b) VP Andrew J. Dearman, III VP Douglas E. Dutton (n) VP J. Kevin Fletcher VP Dr. C. H. Goodman (b) VP W. Dean Hudson VP,C,CFO Allen L. Leverett VP William L. Marshall, Jr. VP C. Alan Martin (a) VP J. Mike McClure VP Robert G. Moore VP Larry M. Porter VP John G. Richardson VP 1130 Connecticut Avenue, NW Washington, DC 20036 Jerry L. Stewart (b) VP Dr. W. Robert Woodall, Jr. (a) VP John F. Young VP Charles O. Rawlins T Southern Communications Name and Principal Address (m) Position - --------------------------------------------- A. W. Dahlberg (a) D H. Allen Franklin (c) D Robert G. Dawson D,P,CEO Paul J. DeNicola (c) D Elmer B. Harris (b) D W. L. Westbrook (a) D R. Craig Elder VP,T Tommy Chisholm (a) S Southern Energy Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P,CEO A. W. Dahlberg (a) D Paul J. DeNicola (c) D,VP H. Allen Franklin (c) D Elmer B. Harris D W. L. Westbrook (a) D,VP S. Marce Fuller SVP Raymond D. Hill SVP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Richard J. Pershing SVP Vance N. Booker VP Tommy Chisholm (a) VP,S David T. Gallaspy VP Alan W. Harrelson VP J. R. Harris VP Randell E. Harrison VP J. William Holden, III VP Ronald E. Leggett VP William A. Maner, III VP Karl E. Olsoni VP,T Richard Owen VP Joseph T. Pokalsky VP Barney S. Rush VP James A. Ward VP,C SEI Operadora de Argentina, S.A. Name and Principal Address (i) Position - --------------------------------------------- Ricardo Falabella D,VP J. William Holden, III (e) D,P Ronald E. Leggett (e) D Mariano F. Grondona S Southern Electric International - Asia, Inc Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Tommy Chisholm (a) S 18 ITEM 6. OFFICERS AND DIRECTORS. - --------------------------------- PART I. (Continued) -------------------- Southern Electric International GmbH Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren GM Tommy Chisholm (a) GM William A. Franks GM Raymond D. Hill GM 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Richard J. Pershing GM James A. Ward GM SERC Name and Principal Address (n) Position - --------------------------------------------- Bill M. Guthrie (b) D,P T. Roy Harrell VP Earl B. Parsons, Jr. (b) VP Larry M. Porter (g) VP Tommy Chisholm (a) S,T Southern Nuclear Name and Principal Address (o) Position - --------------------------------------------- A. W. Dahlberg (a) D Paul J. DeNicola (c) D H. Allen Franklin (c) D William G. Hairston, III D,P,CEO Elmer B. Harris (b) D James H. Miller, III EVP,L Jackie D. Woodard EVP James W. Averett VP Louis B. Long VP C. Alan Martin (a) VP Charles K. McCoy VP John O. Meier VP,S D. N. Morey, III VP H. Lewis Sumner, Jr. VP Kathleen S. King C,T,CFO Energy Solutions Name and Principal Address (c) Position - --------------------------------------------- Robert S. Beason D William P. Bowers D Paul J. DeNicola D Dwight H. Evans (f) D Thomas A. Fanning D J. Kevin Fletcher D,P Robin A. Hurst (b) D Charles D. McCrary (b) D Michael L. Scott (b) D W. L. Westbrook (a) D Tommy Chisholm (a) S Allen L. Leverett T Southern Energy Finance Company, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P James A. Ward D,VP,T S. Marce Fuller VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong David Rozier VP Tommy Chisholm S EPZ Lease, Inc. Name and Principal Address (e) Position - --------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 David R. Rozier, Jr. D,VP,T L. Terry Turner D Christopher J. Kysar VP Tom Mathew VP James A. Ward P Patricia L. Roberts S 19 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) ------------------- EPZ Lease, L.L.C. Name and Principal Address (e) Position - --------------------------------------------- Christopher J. Kysar Officer Tom Mathew Officer John Rachford Officer EPZ Holding A, L.L.C. Name and Principal Address (e) Position Christopher J. Kysar Officer Tom Mathew Officer John Rachford Officer EPZ Holding B, L.L.C. Name and Principal Address (e) Position Christopher J. Kysar Officer Tom Mathew Officer John Rachford Officer EPZ Holding C, L.L.C. Name and Principal Address (e) Position Christopher J. Kysar Officer Tom Mathew Officer John Rachford Officer Southern Energy North America, Inc. Name and Principal Address (e) Position - --------------------------------------------- Vance N. Booker D Thomas G. Boren D,P S. Marce Fuller D,VP James A. Ward D,C W. L. Westbrook (a) D Raymond D. Hill VP,T,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Ronald E. Leggett VP Richard J. Pershing VP Tommy Chisholm (a) S Southern Energy Trading and Marketing, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P Thomas A. Fanning (c) D S. Marce Fuller D,EVP Raymond D. Hill D,VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Richard J. Pershing D James A. Ward D,VP,T,C W. L. Westbrook (a) D Joseph T. Pokalsky SVP Steve Byone VP Alexander Eydeland VP David T. Gallaspy VP Donald R. Jefferis VP Gary T. Morsches VP O. Jay Oates, II VP William T. Orr VP John W. Ragan VP John J. Robinson VP Mark J. D. Streater VP Christopher Turner VP Tommy Chisholm (a) S SEI Birchwood, Inc. Name and Principal Address (e) Position - --------------------------------------------- Kerry E. Adams (n) D Vance N. Booker D Thomas G. Boren D S. Marce Fuller D,P Alan W. Harrelson D,VP George P. Henefeld VP David R. Rozier, Jr. VP,CFO,T James A. Ward VP,C Patricia L. Roberts (a) S 20 ITEM 6. OFFICERS AND DIRECTORS - ---------------------------------- PART I. (Continued) -------------------- SEI Hawaiian Cogenerators, Inc. Name and Principal Address (e) Position - --------------------------------------------- Kerry E. Adams (n) D,VP Thomas G. Boren D,P W. L. Westbrook (a) D Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Tommy Chisholm (a) S James A. Ward T Southern Energy - Cajun, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D S. Marce Fuller D James A. Ward D,VP,T Randall E. Harrison VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Gary J. Kubik VP Tommy Chisholm S SEI State Line, Inc. Name and Principal Address (e) Position - --------------------------------------------- James A. Ward D,VP,T S. Marce Fuller P Alan W. Harrelson VP Randall E. Harrison VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Patricia L. Roberts S Southern Information Holding Company, Inc. Name and Principal Address (c) Position - --------------------------------------------- Robert S. Beason D,P William P. Bowers D Paul J. DeNicola D Dwight H. Evans (f) D Thomas A Fanning (a) D J. Kevin Fletcher D Robin A. Hurst (b) D Charles D. McCrary (b) D Michael L. Scott (b) D William L. Westbrook (a) D Michael E. Britt VP Allen L. Leverett (a) T Tommy Chisholm (a) S Southern Information 1, Inc. Name and Principal Address (c) Position - --------------------------------------------- Robert S. Beason D,P William P. Bowers D Paul J. DeNicola D Dwight H. Evans (f) D Thomas A. Fanning (c) D J. Kevin Fletcher D Robin A. Hurst D Charles D. McCrary (b) D Michael L. Scott (b) D William L. Westbrook (a) D Michael E. Britt VP Allen L. Leverett (a) T Tommy Chisholm (a) S Southern Information 2, Inc. Name and Principal Address (c) Position - --------------------------------------------- Robert S. Beason D,P William P. Bowers D Paul J. DeNicola D Dwight H. Evans (f) D Thomas A Fanning (a) D J. Kevin Fletcher D Robin A. Hurst (b) D Charles D. McCrary (b) D Michael L. Scott (b) D William L. Westbrook (a) D Michael E. Britt VP Allen L. Leverett (a) T Tommy Chisholm (a) S 21 ITEM 6. OFFICERS AND DIRECTORS - ---------------------------------- PART I. (Continued) ------------------- Southern Telecom Holding Company, Inc. Name and Principal Address (c) Position - --------------------------------------------- Robert S. Beason D,P William P. Bowers D Paul J. DeNicola D Dwight H. Evans (f) D Thomas A. Fanning (c) D J. Kevin Fletcher D Charles D. McCrary (b) D Michael L. Scott (b) D William L. Westbrook (a) D Michael E. Britt VP Tommy Chisholm (a) S Allen L. Leverett (a) T Southern Telecom 1, Inc. Name and Principal Address (c) Position - --------------------------------------------- Robert S. Beason D,P William P. Bowers D Paul J. DeNicola D Dwight H. Evans (f) D Thomas A. Fanning (c) D J. Kevin Fletcher D Robin A. Hurst (b) D Charles D. McCrary (b) D Michael L. Scott (b) D William L. Westbrook (a) D Micheal E. Britt VP Allen L. Leverett (a) T Tommy Chisholm (a) S Southern Telecom 2, Inc. Name and Principal Address (c) Position - --------------------------------------------- Robert S. Beason D,P William P. Bowers D Paul J. DeNicola D Dwight H. Evans (f) D Thomas A. Fanning (c) D J. Kevin Fletcher D Robin A. Hurst (b) D Charles D. McCrary (b) D Michael L. Scott (b) D William L. Westbrook (a) D Micheal E. Britt VP Allen L. Leverett (a) T Tommy Chisholm (a) S Cayman Energy Traders Name and Principal Address Position - --------------------------------------------- Dennis W. Bakke D J. William Holden, III D Barry J. Sharp D William R. Lurasch S Consolidated Electric Power Asia Name and Principal Address Position - --------------------------------------------- Edwin H. Adams D Thomas G. Boren (e) D A. W. Dahlberg (a) D Raymond D. Hill D 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Eddie Ho D Dean G. Koch D Frederick D. Kuester D Richard J. Pershing D Gordon Wu D SC Ashwood Holdings, Inc Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P S. Marce Fuller D,EVP James A. Ward D,VP,T,C Joseph T. Pokalsky SVP Donald R. Jefferis VP Gary J. Morsches VP John J. Robinson VP Tommy Chisholm (a) S SC Energy Ventures, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P S. Marce Fuller D,EVP James A. Ward D,VP,T,C Joseph T. Pokalsky SVP Donald R. Jefferis VP Gary J. Morsches VP John J. Robinson VP Tommy Chisholm (a) S 22 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) --------------------- SEI Germany - BEWAG, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P,CEO Richard J. Pershing D, VP James A. Ward D,VP,T Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Barney S. Rush VP Tommy Chisholm (a) S SEI Worldwide Holdings, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P,CEO Richard J. Pershing D James A. Ward D,VP,T Raymond D. Hill VP, CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Barney S. Rush VP Tommy Chisholm (a) S Southern Company Capital Funding, Inc. Name and Principal Address (a) Position - --------------------------------------------- William R. Bechstein (e) D James J. Coppola, Jr. D D. R. Rozier, Jr. (e) D L. Terry Turner (e) D William L. Westbrook D, P,CEO Charles N. Eldred VP,T Charles O. Rawlins VP, CFO Tommy Chisholm VP,S Southern Energy Clairton, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P James A. Ward D,VP,T S. Marce Fuller VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Karl E. Olsoni VP Tommy Chisholm (a) S Southern Energy Clairton 2, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P James A. Ward D,VP,T S. Marce Fuller VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Karl E. Olsoni VP Tommy Chisholm (a) S Southern Energy Clairton, L.L.C. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren P S. Marce Fuller VP Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Christopher J. Kysar VP James A. Ward VP,T Charles H. Wilson VP Tommy Chisholm (a) S Southern Energy do Brasil Ltda. Name and Principal Address (e) Position - --------------------------------------------- Rodolpho de Oliveira Franco M Protasio Southern Energy E Associados Participacoes,S.A. Name and Principal Address (e ) Position Monica Maria Correa Moreira D,VP Carneiro Kevin L. Mundie D,P 23 ITEM 6. OFFICERS AND DIRECTORS - --------------------------------- PART I. (Continued) -------------------- Southern Energy Finance Company, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P James A. Ward D,VP,T Raymond D. Hill VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Christopher J. Kysar VP Tom Mathew VP Karl E. Olsoni VP Tommy Chisholm (a) S Southen Energy Retail Trading and Marketing, Inc. Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D,P Thomas A. Fanning (c) D S. Marce Fuller D,EVP Raymond D. Hill D,VP,CFO 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay Hong Kong Richard J. Pershing D James A. Ward D,VP,T William L. Westbrook D Joseph T. Pokalsky SVP Donald R. Jerreris VP Gary J. Morsches VP John J. Robinson VP Tommy Chisholm (a) S SEI Worldwide Holdings Beteiligungsgesellschaft mbH Name and Principal Address (e) Position - --------------------------------------------- Thomas G. Boren D Mark R. Ogle D Richard J. Pershing D Barney S. Rush D James A. Ward D 24
ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections. - ------------------------------------------------------------------- Name of Officer Name and Location Position Held in Applicable or Director of Financial Institution Financial Institution Exemption Rule - --------------------- ---------------------------------------- ------------------------ -------------- Rule No. 70 Subdivision John C. Adams Aliant Bank, Alexander City, AL Director (a) Aliant National Corporation, Alexander City, AL Director (a) Whit Armstrong The Citizens Bank Chief Executive (c) Enterprise, AL Officer, Chairman of the Board of Directors and President Enterprise Capital Corporation Chairman of the Board of Enterprise, AL Directors, President (c) A. D. Correll SunTrust Bank of Georgia, Atlanta, GA Director (a) SunTrust Banks Inc., Atlanta, GA Director (a) W. Roy Crow Barbour County Bank, Eufaula, AL Director (f) A. W. Dahlberg SunTrust Bank of Georgia Director (a);(c) Atlanta, GA SunTrust Banks, Inc., Atlanta, GA Director (a);(c) Archie H. Davis The Savannah Bancorp, Savannah, GA President, Chief Executive Officer (c) The Savannah Bank N.A., Savannah, GA President, Chief Executive Officer (c) H. Allen Franklin SouthTrust Bank, Birmingham, AL Director (a);(c) L. G. Hardman, III First Commerce Bancorp, Inc. Chairman of the Board Commerce, GA of Directors and Chief Executive Officer (a);(c);(g) First National Bank of Commerce, Chairman of the Commerce, GA Board of Directors (c);(g) Elmer B. Harris AmSouth Bancorporation, Director (a);(c);(e);(f) Birmingham, AL AmSouth Bank of Alabama, Birmingham, AL Director (a);(c);(e);(f) G. Edison Holland, Jr. SunTrust Bank, Savannah, GA Director (c) Carl E. Jones Regions Financial Corporation, President and Chief Birmingham, AL Operating Officer (c) Patricia M. King Regions Bank, Anniston, AL Director (c) James R. Lientz, Jr. NationsBank, N.A., Atlanta, GA President, Director (c) Wallace D. Malone SouthTrust Corporation, Birmingham, AL Chairman of the Board of Directors and Chief Executive Officer (c) William V. Muse SouthTrust Corporation, Birmingham, AL Director (c) John T. Porter Citizens Federal Bank, Birmingham, AL Director (c)
25
ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections. (Continued) - ------------------------------------------------------------------------------- Name of Officer Name and Location Position Held in Applicable or Director of Financial Institution Financial Institution Exemption Rule - --------------------- --------------------------------- ---------------------- --------------- Rule No. 70 Subdivision G. Joseph Prendergast Wachovia Bank of Georgia, N.A. Chairman of the Atlanta, GA Board of Directors (c) Wachovia Bank of South Carolina Chairman of the Board of Directors (d) Wachovia Bank of North Carolina Chairman of the Board of Directors (d) Wachovia Corporation, Atlanta, GA Senior Executive Vice President (d) C. Dowd Ritter, III AmSouth Bancorporation, Birmingham, AL Chairman, Chief Executive Officer (c) AmSouth Bank, Birmingham, AL Chairman, Chief Executive Officer (c) Herman J. Russell Citizens Trust Bank, Atlanta, GA Chairman of the Board of Directors (c) Citizens Bancshares Corp. Atlanta, GA Chairman of the Board of Directors (c) Wachovia Corporation of Georgia, Director (c) Atlanta, GA George A. Schloegel Hancock Bank - Mississippi, Gulfport, MS Director and President (c) Hancock Holding Company, Gulfport, MS Vice Chairman of the Board of Directors (c) Hancock Bank - Louisiana, Baton Rouge Louisiana Director (d) William R. Smith SouthTrust Bank of Calhoun County, N.A. Anniston, AL Director (f) Gerald St. Pe' Merchants & Marine Bank, Pascagoula, MS Director (a) Herbert Stockham SouthTrust Bank, Birmingham, AL Director (a);(c) SouthTrust Corporation, Director (c) Birmingham, AL Joseph K. Tannehill Regions Bank of North Florida, Director (c) Panama City, FL Arnold M. Tenenbaum First Union National Bank of Georgia, Director (c) Atlanta, GA First Union National Bank of Savannah, Director (c) Savannah, GA Gene Warr Coast Community Bank, Biloxi, MS Director (c)
26 ITEM 6. EXECUTIVE COMPENSATION. PART III. (a) Summary Compensation Tables. The following tables set forth information concerning any Chief Executive Officer and the four most highly compensated executive officers for SCS, Southern Energy, Southern Communications, Energy Solutions and Southern Nuclear serving as of December 31, 1997, as defined by the Securities and Exchange Commission. ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers III-13 through III-18 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 1997. Incorporated by reference to "Summary Compensation Table" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement relating to the 1998 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
SCS SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Underlying Term and Other Annual Stock Incentive All Other Principal Compensation Options Payouts Compensation Position Year Salary($) Bonus($) ($)1 (Shares) ($)2 ($)3 - ------------------------------------------------------------------------------------------------------------------------ A. W. Dahlberg 1997 817,644 206,250 27,485 135,882 433,247 49,766 Director 1996 782,409 118,534 6,833 154,610 770,216 43,850 1995 722,489 120,415 6,577 52,203 866,493 40,755 Paul J. DeNicola 1997 416,452 62,980 8,731 29,638 239,874 25,493 President, Chief 1996 400,491 56,520 3,325 26,330 426,442 22,894 Executive Officer, 1995 384,845 50,464 3,037 26,297 479,747 21,573 Director Bill M. Guthrie 1997 361,881 58,376 1,835 25,754 244,800 21,168 Senior Executive 1996 346,375 49,115 1,574 17,541 244,800 19,141 Vice President 1995 326,877 49,939 1,533 17,518 275,400 17,810
27 See footnotes on the next page.
SCS SUMMARY COMPENSATION TABLE (Continued) ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Underlying Term and Other Annual Stock Incentive All Other Principal Compensation Options Payouts Compensation Position Year Salary($) Bonus($) ($)1 (Shares) ($)2 ($)3 - ------------------------------------------------------------------------------------------------------------------------- David M. Ratcliffe 1997 313,152 50,515 10,828 17,086 207,322 18,342 Executive Vice 1996 347,985 39,465 8,446 15,179 207,322 16,889 President 1995 281,615 68,7854 - 15,524 233,237 13,718 William L. Westbrook 1997 261,020 50,000 9,763 14,242 95,679 15,216 Executive Vice 1996 251,903 35,426 2,793 12,653 170,096 14,032 President 1995 242,606 29,339 1,841 13,002 191,358 13,401
- -------- 1 Tax reimbursements by SCS on certain personal benefits. 2 Payouts made in 1996, 1997 and 1998 for the four-year performance periods ending December 31, 1995, 1996 and 1997. 3 SCS contributions to the ESP, ESOP, non-pension related accruals under the SBP (ERISA excess plan under which accruals are made to offset Internal Revenue Code imposed limitations under the ESP and ESOP), for the following: ESP ESOP SBP A. W. Dahlberg $7,181 $1,072 $41,513 Paul J. DeNicola 7,125 1,072 17,296 Bill M. Guthrie 7,125 1,072 12,971 David M. Ratcliffe 7,200 1,072 10,070 William L. Westbrook 7,181 1,072 6,963 4 Also included for Mr. Ratcliffe is a one-time lump-sum payment of $25,000 given in connection with his appointment to his current position. 28
Southern Communications and Energy Solutions SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Underlying Term and Other Annual Stock Incentive All Other Principal Compensation Options Payouts Compensation Position Year Salary($) Bonus($) ($)5 (Shares) ($)6 ($)7 - ------------------------------------------------------------------------------------------------------------------------- Southern Communications Robert G. Dawson 1997 185,103 37,823 1,199 7,865 100,978 10,305 President, Chief 1996 163,661 116,123 1,185 7,055 - 12,275 Executive Officer, 1995 498,6718 65,000 277 - - 9,430 Director R. Craig Elder 1997 112,606 32,510 304 3,999 46,455 6,088 Vice President, 1996 106,623 70,640 - - - 5,608 Treasurer 1995 - - - - - - Energy Solutions J. Kevin Fletcher 1997 133,797 20,286 - 4,773 60,636 7,556 President, 1996 126,990 17,224 136 4,161 60,636 6,617 Director 1995 113,762 19,506 107 4,023 68,215 5,933 5 Tax reimbursement by Energy Solutions and Southern Communications on certain personal benefits. 6 Payouts made in 1996, 1997 and 1998 for the four-year performance periods ending December 31, 1995, 1996 and 1997. 7 Southern Communications' and Energy Solutions' contributions to the ESP,ESOP, non-pension related accruals under the SBP (ERISA excess plan under which accruals are made to offset Internal Revenue Code imposed limitations under the ESP and ESOP), for the following: ESP ESOP SBP --- ---- ---- Robert G. Dawson $7,481 $1,072 $1,752 R. Craig Elder 5,079 1,009 - J. Kevin Fletcher 6,035 1,072 449 8 Mr. Dawson's gross wages include miscellaneous payments due to his assignment in Buenos Aires, Argentina. Mr. Dawson served as vice president of SEI's Latin American and Caribbean Assets from March 1994 until October 1995.
29
Southern Energy SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Underlying Term and Other Annual Stock Incentive All Other Principal Compensation Options Payouts Compensation Position Year Salary($) Bonus($) ($)9 (Shares) ($)10 ($)11 - ------------------------------------------------------------------------------------------------------------------------- Thomas G. Boren 1997 345,000 387,625 14,868 18,941 - 19,415 President, 1996 291,086 275,000 13,757 14,250 - 16,293 Director 1995 248,333 298,49712 12,579 13,295 - 10,215 S. Marce Fuller 1997 244,167 228,125 1,098 13,529 - 11,080 Senior Vice President 1996 215,000 175,000 1,491 8,881 - 9,403 1995 184,267 67,500 1,844 - - 6,768 Richard J. Pershing 1997 244,167 228,125 3,645 13,529 - 13,346 Senior Vice President 1996 190,417 175,000 3,568 8,881 - 9,869 1995 162,500 165,000 2,974 - - 8,287 Raymond D. Hill 1997 192,083 228,125 1,323 13,529 - 13,329 Senior Vice President 1996 190,657 175,000 2,820 8,881 - 9,868 1995 162,500 165,000 1,641 - - 8,252 Joseph T. Pokalsky 1997 200,000 160,000 19,458 - - - Vice President 1996 - - - - - - 1995 - - - - - - 9 Tax reimbursement by Southern Energy on certain personal benefits. 10 Employees of Southern Energy are not yet eligible for these payouts. 11 Southern Energy contributions to the ESP, ESOP, non-pension related accruals under the SBP (ERISA excess plan under which accruals are made to offset Internal Revenue Code imposes limitations under the ESP and ESOP), for the following: ESP ESOP SBP --- ------ ------- Thomas G. Boren $6,469 $1,072 $11,875 S. Marce Fuller 6,195 1,072 3,813 Richard J. Pershing 6,469 1,072 5,805 Raymond D. Hill 6,469 1,072 5,788 Joseph T. Pokalsky - - - 12 Includes a one-time award of $48,497 under the key contributor program in recognition of exemplary performance in 1995. 30
Southern Nuclear SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Securities Long- Name Underlying Term and Other Annual Stock Incentive All Other Principal Compensation Options Payouts Compensation Position Year Salary($) Bonus($) ($)13 (Shares) ($)14 ($)15 - ----------------------------------------------------------------------------------------------------------------------- W. G. Hairston, III 1997 323,942 58,903 7,593 17,709 257,040 19,287 President and Chief 1996 308,789 46,748 3,555 15,583 257,040 17,070 Executive Officer 1995 296,988 47,489 6,020 15,785 289,170 16,442 Jack D. Woodard 1997 233,467 42,848 1,457 10,642 126,075 13,526 Executive Vice 1996 214,083 38,953 1,903 8,939 126,075 11,675 President 1995 202,085 37,116 1,235 8,969 141,834 10,215 James H. Miller, III 1997 222,117 40,388 5,948 10,031 126,075 12,838 Executive Vice 1996 211,583 16,193 5,115 8,827 126,075 11,260 President 1995 201,216 30,094 1,946 8,941 141,834 4,500 Charles K. McCoy 1997 171,817 27,661 1,262 7,729 84,048 9,758 Vice President 1996 166,829 19,638 835 6,933 84,047 8,136 1995 161,974 22,587 716 7,159 94,553 8,549 David N. Morey 1997 166,554 26,053 515 7,514 84,048 9,474 Vice President 1996 159,410 22,036 574 6,644 84,047 8,500 1995 152,701 20,447 146 6,051 94,553 7,865 13 Tax reimbursement by Southern Nuclear on certain personal benefits. 14 Payouts made in 1996, 1997 and 1998 for the four-year performance periods ending December 31, 1995, 1996 and 1997, respectively. 15 Southern Nuclear contributions to the ESP, ESOP, non-pension related accruals under the SBP (ERISA excess plan under which accruals are made to offset Internal Revenue Code imposed limitations under the ESP and ESOP), for the following: ESP ESOP SBP ---- ---- --- William G. Hairston, III $7,125 $1,072 $11,090 Jack D. Woodard 7,181 1,072 5,273 James H. Miller, III 7,181 1,072 4,585 Charles K. McCoy 7,125 1,072 1,561 David N. Morey 7,125 1,072 1,277
31 STOCK OPTION GRANTS IN 1997 Stock Option Grants. The following table sets forth all stock option grants to the named executive officers of each operating subsidiary during the year ending December 31, 1997. ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers III-19 and III-20 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 1997. Stock Option Grants in 1997 for SOUTHERN is incorporated by reference to "Stock Option Grants" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement relating to 1997 annual meeting of stockholders.
Individual Grants Grant Date Value Number of Securities % of Total Underlying Options Exercise Share Granted to or Options Employees in Base Price Expiration Grant Date Name Granted16 Fiscal Year17 ($/Sh)18 Date 18 Present Value($)18 ------------------------------------------------------------------------------------------------------------ SCS A. W. Dahlberg 135,882 8.0 21.25 07/21/2007 1,445,785 Paul J. DeNicola 29,638 2.0 21.25 07/21/2007 169,529 Bill M. Guthrie 25,754 1.5 21.25 06/01/2000 147,313 David M. Ratcliffe 17,086 1.0 21.25 07/21/2007 97,732 William L. Westbrook 14,242 1.0 21.25 07/21/2007 81,464 Southern Communications Robert G. Dawson 7,865 0.4 21.25 07/21/2007 44,988 R. Craig Elder 3,999 0.2 21.25 07/21/2007 22,874 Energy Solutions J. Kevin Fletcher 4,773 0.3 21.25 07/21/2007 27,302 See footnotes on the next page.
32
STOCK OPTION GRANTS IN 1997 Individual Grants Grant Date Value Number of Securities % of Total Underlying Options Exercise Share Granted to or Options Employees in Base Price Expiration Grant Date Name Granted16 Fiscal Year17 ($/Sh)18 Date18 Present Value($)18 ------------------------------------------------------------------------------------------------------------- Southern Energy Thomas G. Boren 18,941 1.0 21.25 07/21/2007 108,343 S. Marce Fuller 13,529 0.8 21.25 07/21/2007 77,386 Richard J. Pershing 13,529 0.8 21.25 07/21/2007 77,386 Raymond D. Hill 13,529 0.8 21.25 07/21/2007 77,386 Joseph T. Pokalsky - - - - - Southern Nuclear William G. Hairston, III 17,709 1.0 21.25 07/21/2007 101,295 Jack D. Woodard 10,642 0.6 21.25 07/21/2007 60,872 James H. Miller, III 10,031 0.6 21.25 07/21/2007 57,377 Charles K. McCoy 7,729 0.4 21.25 07/21/2007 44,210 David N. Morey 7,514 0.4 21.25 07/21/2007 42,980 16 Performance Stock Plan grants were made on July 21, 1997, and vest 25% per year on the anniversary date of the grant. Grants fully vest upon termination incident to death, disability, or retirement. The exercise price is the average of the high and low fair market value of SOUTHERN's common stock on the date granted. In accordance with the terms of the Performance Stock Plan, Mr. Guthrie's unexercised options expire on June 1, 2000, three years after his normal date of retirement. 17 A total of 1,776,094 stock options were granted in 1997 to key executives participating in SOUTHERN's Performance Stock Plan. 18 Based on the Black-Scholes option valuation model. The actual value, if any, an executive officer may realize ultimately depends on the market value of the Company's common stock at a future date. This valuation is provided pursuant to Securities and Exchange Commission disclosure rules. There is no assurance that the value realized will be at or near the value estimated by the Black-Scholes model. Assumptions used to calculate this value for the chairman: price volatility - 17.471 percent; risk-free rate of return - 6.49 percent; dividend yield - zero percent; and time to exercise - 10 years. Assumptions used to calculate this value for other named executive officers: price volatility - 17.471 percent; risk-free rate of return - 6.49 percent; dividend yield - 3.06 percent; and time to exercise - 10 years. These assumptions reflect the effects of cash dividend equivalents paid to participants at the target rates under the Performance Dividend Plan.
33 AGGREGATED STOCK OPTION EXERCISES IN 1997 AND YEAR-END OPTION VALUES Aggregated Stock Option Exercises. The following table sets forth information concerning options exercised during the year ending December 31, 1997 by the named executive officers and value of unexercised options held by them as of December 31, 1997 ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers III-21 and III-22 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 1997 Aggregated Stock Option Exercises in 1997 and Year-End Option Values information for SOUTHERN is incorporated by reference to "Aggregated Stock Option Exercises in 1997 and Year-End Option Values" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement relating to 1998 annual meeting of stockholders.
Value of Number of Unexercised Unexercised In-the-Money Options at Options at Fiscal Fiscal Year-End (#) Year-End($)19 Shares Acquired Value Exercisable/ Exercisable/ Name on Exercise (#) Realized($)20 Unexercisable Unexercisable - ------------------------------------------------------------------------------------------------------------- SCS A. W. Dahlberg - - 193,347/288,708 1,249,649/1,148,129 Paul J. DeNicola - - 75,791/69,493 484,399/297,574 Bill M. Guthrie - - 91,055/51,865 788,903/223,534 David M. Ratcliffe - - 54,436/39,518 416,549/167,738 William L. Westbrook - - 20,401/32,569 104,375/137,134 Southern Communications Robert G. Dawson - - 6,543/13,157 27,325/51,590 R. Craig Elder - - 0/3,999 0/18,495 Energy Solutions J. Kevin Fletcher - - 3,051/9,9906 11,537/39,599 See footnotes on the next page.
34
AGGREGATED STOCK OPTION EXERCISES IN 1997 AND YEAR-END OPTION VALUES -------------------------------------------------------------------- Value of Number of Unexercised Unexercised In-the-Money Options at Options at Fiscal Fiscal Year-End (#) Year-End($)19 Shares Acquired Value Exercisable/ Exercisable/ Name on Exercise (#) Realized($)20 Unexercisable Unexercisable - -------------------------------------------------------------------------------------------------------------- Southern Energy Thomas G. Boren - - 28,832/39,456 153,707/168,837 S. Marce Fuller - - 2,220/20,190 6,383/81,722 Richard J. Pershing - - 2,220/20,190 6,383/81,722 Raymond D. Hill - - 2,220/20,190 6,383/81,722 Joseph T. Pokalsky - - 0/0 0/0 Southern Nuclear William G. Hairston, III - - 33,535/41,222 171,004/176,576 Jack D. Woodard - - 18,819/23,746 95,275/100,955 James H. Miller, III - - 12,397/23,031 65,387/97,787 Charles K. McCoy - - 5,312/16,509 20,193/65,912 David N. Morey - - 4,686/15,523 17,632/61,939 19 This represents the excess of the fair market value as of December 31, 1997, of the option shares over exercise price of the options. One column reports the "value" of options that are vested and therefore could be exercised; the other the "value" of options that are not vested and therefore could not be exercised as of December 31, 1997. 20 The "Value Realized" is ordinary income, before taxes, and represents the amount equal to the excess of the fair market value of the shares or rights at the time of exercise over the exercise price.
35 LONG-TERM INCENTIVE PLANS - AWARDS IN 1997 ------------------------------------------- Long-Term Incentive Awards. The following table sets forth the long-term incentive plan awards made to the named executive officers for the performance period January 1, 1997 through December 31, 2000. ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers III-23 and III-24 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 1997. Long-Term Incentive Plans- Awards information for SOUTHERN is incorporated by reference to "Aggregated Stock Option Exercises in 1997 and Year-End Option Values" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement relating to the 1998 annual meeting of stockholders.
Estimated Future Payouts under Non-Stock Price-Based Plans Number Performance or of Other Period Units Until Maturation Threshold Target Maximum Name (#)21 or Payout ($)22 ($)22 ($)22 - --------------------------------------------------------------------------------------------------------------- SCS A. W. Dahlberg 500,830 4 years 250,415 500,830 1,001,660 Paul J. DeNicola 277,290 4 years 138,645 277,290 554,580 Bill M. Guthrie 159,180 4 years 79,590 159,180 318,360 David M. Ratcliffe 134,814 4 years 67,407 134,814 269,628 William L. Westbrook 110,500 4 years 55,250 110,500 221,000 Southern Communications Robert G. Dawson - - - - - R. Craig Elder - - - - - Energy Solutions J. Kevin Fletcher 42,635 4 years 21,318 42,635 85,270
See footnotes on the next page. 36
LONG-TERM INCENTIVE PLANS - AWARDS IN 1997 ------------------------------------------- Estimated Future Payouts under Non-Stock Price-Based Plans ----------------------------- Number Performance or of Other Period Units Until Maturation Threshold Target Maximum Name (#)21 or Payout ($)22 ($)22 ($)22 - ------------------------------------------------------------------------------------------------------------ Southern Energy Thomas G. Boren 838,983 4 - 10 years - 0 - S. Marce Fuller 499,395 4 - 10 years - 0 - Richard J. Pershing 499,395 4 - 10 years - 0 - Raymond D. Hill 499,395 4 - 10 years - 0 - Joseph T. Pokalsky - - - - - Southern Nuclear William G. Hairston, III 167,142 4 years 83,571 167,142 334,284 Jack D. Woodard 81,854 4 years 40,927 81,854 163,708 James H. Miller, III 81,854 4 years 40,927 81,854 163,708 Charles K. McCoy 59,686 4 years 29,843 59,686 119,372 David N. Morey 59,686 4 years 29,843 59,686 119,372 21 A performance unit is a method of assigning a dollar value to a performance award opportunity. Under the Executive Productivity Improvement Plan of the Company (the "plan"), the number of units granted to named executive officers (except Mr. Boren who does not participate in the plan) is 50 to 65 percent of their base salary range midpoint at the beginning of the performance period, with each unit valued at $1.00. No awards are paid unless the participant remains employed by the Company through the end of the performance period. The Compensation & Management Succession Committee awarded Mr. Boren 76,271 appreciation rights and 762,712 indexed rights, Ms. Fuller, and Messrs. Pershing and Hill each were awarded 45,400 appreciation rights and 453,995 indexed rights to the appreciation in the value of Southern Energy, Inc. over a term of ten years from March 15, 1997, under the Southern Energy, Inc. Value Creation Plan. Each unit of phantom interest in Southern Energy, Inc. had an initial value and exercise price of $10.00. Appreciation rights vest annually at a rate of 25 percent on the anniversary date of the grant and indexed rights vest 100 percent on the fourth anniversary date of the grant. 22 The threshold, target, and maximum value of a unit under the plan is $0.50, $1.00, and $2.00, respectively, and can vary based on the Company's return on common equity and total shareholder return relative to selected groups of electric and gas utilities. If certain minimum performance relative to the selected groups is not achieved, there will be no payout; nor is there a payout if the current earnings of the Company are not sufficient to fund the dividend rate paid in the last calendar year. The plan provides that in the discretion of the committee extraordinary income may be excluded for purposes of calculating the amount available for the payment of awards. All awards are payable in cash at the end of the performance period. The target value of a unit under the Southern Energy, Inc. Value Creation Plan is not determinable. The actual value, if any, a participant may realize ultimately depends on the value of Southern Energy, Inc. at a future date. For the indexed rights, the appreciation in value is adjusted by an interest rate over the ten-year period. As of December 31, 1997, each unit of phantom interest in Southern Energy, Inc. had a value of less than the initial value. Based on the 1997 performance, the rights issued under this plan would have no value.
37 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, 1997. 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, 1997. SOUTHERN is incorporated by reference to "Stock Ownership" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement relating to the 1998 annual meeting of stockholders. ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers III-30 through III-35 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 1997.
Name of Directors or Nominees and Number of Shares Executive Officers Title of Class Beneficially Owned (1)(2) - ------------------ -------------- ------------------ SCS A. W. Dahlberg SOUTHERN Common 255,790 Paul J. DeNicola SOUTHERN Common 109,746 H. Allen Franklin SOUTHERN Common 146,255 Elmer B. Harris SOUTHERN Common 204,339 Bill M. Guthrie SOUTHERN Common 139,031 David M. Ratcliffe SOUTHERN Common 64,270 William L. Westbrook SOUTHERN Common 80,288 The directors, nominees and executive officers of SCS as a Group SOUTHERN Common 1,062,705 shares SEGCO Robert L. Boyer SOUTHERN Common 44,960 H. Allen Franklin SOUTHERN Common 146,255 Bill M. Guthrie SOUTHERN Common 139,031 Elmer B. Harris SOUTHERN Common 204,339 Robert H. Haubein, Jr. SOUTHERN Common 27,243 William B. Hutchins, III SOUTHERN Common 46,463
38 ITEM 6. OFFICERS AND DIRECTORS. - ----------------------------------- PART III. - --------
Name of Directors or Nominees and Number of Shares Executive Officers Title of Class Beneficially Owned (1)(2) - ------------------ -------------- ------------------ SEGCO (continued) Warren Y. Jobe SOUTHERN Common 60,369 GEORGIA Preferred 200 Charles D. McCrary SOUTHERN Common 30,576 Earl B. Parsons, Jr. SOUTHERN Common 8,836 The directors, nominees and executive officers of SEGCO as a Group SOUTHERN Common 707,722 shares GEORGIA Preferred 200 shares Southern Communications A. W. Dahlberg SOUTHERN Common 255,790 Robert G. Dawson SOUTHERN Common 27,429 Paul J. DeNicola SOUTHERN Common 109,746 H. Allen Franklin SOUTHERN Common 146,255 Elmer B. Harris SOUTHERN Common 204,339 W. L. Westbrook SOUTHERN Common 80,288 R. Craig Elder SOUTHERN Common 4,725 The directors, nominees and executive officers of Southern Communications as a Group SOUTHERN Common 828,572 shares
39 ITEM 6. OFFICERS AND DIRECTORS. - ----------------------------------- PART III. - ---------
Name of Directors or Nominees and Number of Shares Executive Officers Title of Class Beneficially Owned (1)(2) - ------------------ -------------- ------------------ Energy Solutions Robert S. Beason SOUTHERN Common 10,693 William P. Bowers SOUTHERN Common 10,158 Paul J. DeNicola SOUTHERN Common 109,746 Dwight E. Evans SOUTHERN Common 51,740 GEORGIA Preferred 400 MISSISSIPPI Preferred 200 SOUTHERN Preferred 200 J. Kevin Fletcher SOUTHERN Common 10,965 The directors, nominees and executive officers of Energy Solutions as a Group SOUTHERN Common 192,512 shares GEORGIA Preferred 400 shares MISSISSIPPI Preferred 200 shares SOUTHERN Preferred 200 shares Southern Energy Thomas G. Boren SOUTHERN Common 41,526 A. W. Dahlberg SOUTHERN Common 255,790 Paul J. DeNicola SOUTHERN Common 109,746 H. Allen Franklin SOUTHERN Common 146,255 W. L. Westbrook SOUTHERN Common 80,288 S. Marce Fuller SOUTHERN Common 5,459 Raymond D. Hill SOUTHERN Common 3,716 40
ITEM 6. OFFICERS AND DIRECTORS. - ---------------------------------- PART III. - ---------
Name of Directors or Nominees and Number of Shares Executive Officers Title of Class Beneficially Owned (1)(2) - ------------------ -------------- ------------------ Southern Energy (continued) Richard J. Pershing SOUTHERN Common 24,518 The directors, nominees and executive officers of Southern Energy as a Group SOUTHERN Common 995,289 shares Southern Nuclear A. W. Dahlberg SOUTHERN Common 255,790 Paul J. DeNicola SOUTHERN Common 109,746 H. Allen Franklin SOUTHERN Common 146,255 William G. Hairston, III SOUTHERN Common 52,906 Elmer B. Harris SOUTHERN Common 204,339 Charles K. McCoy SOUTHERN Common 6,333 James H. Miller, III SOUTHERN Common 15,375 David N. Morey SOUTHERN Common 20,802 Jack D. Woodard SOUTHERN Common 43,929 The directors, nominees and executive officers of Southern Nuclear as a Group SOUTHERN Common 860,859 shares ALABAMA Preferred 40 shares Notes to Item 6, Part III(b): (1) As used in these tables, "beneficial ownership" means the sole or shared power to vote, or to direct the voting of, a security and/or investment power with respect to a security (i.e., the power to dispose of, or to direct the disposition of, a security). (2) The shares shown include shares of common stock of which certain directors and officers have the right to acquire beneficial ownership within 60 days pursuant to the Executive Stock Option Plan, as follows: Mr. Beason, 3,142 shares; Mr. Boren, 28,832 shares; Mr. Bowden, 65,767 shares; Mr. Bowers, 2,966 shares; Mr. Boyer, 4,415 shares; Mr. Dahlberg, 193,347 shares; Mr. Dawson, 6,543 shares; Mr. DeNicola, 75,791 shares; Mr. Evans, 31,172 shares; Mr. Fletcher, 3,051 shares; Mr. Franklin, 120,384 shares; Mr. Guthrie, 91,055 shares; Mr. Hairston, 33,535 shares; Mr. Harris, 150,793 shares; Mr. Hodges, 25,873 shares; Mr. Haubein, 24,693 shares; Mr. Hutchins, 23,799 shares; Mr. McCoy, 5,312 shares; Mr. Miller, 12,397 shares; Mr. Morey, 4,686 shares; Mr. Newman, 11,702 shares; Mr. Parsons, 6,005 shares; Mr. Ratcliffe, 54,436 shares; Mr. Westbrook, 20,401 shares; and Mr. Woodard, 18,819 shares. Also included are shares of SOUTHERN common stock held by the spouse of the Mr. Harris, 310 shares.
41 ITEM 6. OFFICERS AND DIRECTORS. - ----------------------------------- PART III. - -------- (c) Contracts and transactions with system companies. ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers III-36 and III-37 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 1997. (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" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement relating to the 1998 annual meeting of stockholders. (f) Rights to indemnity. Incorporated by reference are the by-laws, for the companies of the SOUTHERN system, contained herein as Exhibits. 42 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. - ------------------------------------------- (1) Expenditures, disbursements or payments, directly or indirectly, in money, goods or services, to or for the account of any political party, candidate for public office or holder of such office, or any committee or agent thereof.
Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) - --------------- -------------------------------- ------- ------------- --------- None ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH have established political action committees and have incurred certain costs in the administration of these committees in accordance with the provisions of the Federal Election Campaign Act and the Public Utility Holding Company Act. (2) Expenditures, disbursements or payments, directly or indirectly, in money, goods or services, to or for the account of any citizens group or public relations counsel. The information called for by this item was compiled, and memoranda from each company in the system were received and are being preserved by SOUTHERN, in accordance with the instructions to this item. Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) - --------------- -------------------------------- ------- ------- --------- SOUTHERN American Cancer Society Support 426 500 Carl E. Sanders YMCA Support 426 25,000 Rand Nature Center - Bahamas Support 426 11,425 Resources for the Future Support 426 25,000 ALABAMA Business Council of Alabama Dues & Support 930,426 93,546 Cahaba River Society Dues & Support 793,426 12,135 Edison Electric Institute Dues 923,930 533,147 National Association of Manufacturers Dues 426 12,250 Nature Conservancy Support 426 11,100 Nuclear Energy Institute Dues 524,426 359,686 Public Affairs Research Council of Alabama Dues & Support 930,426 17,280
43 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued) - ------------------------------------------------------------------
Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) - --------------- -------------------------------- ------- ------- --------- GEORGIA American National Standards Institute Dues 930 15,223 Buckhead Coalition Dues 930 5,000 Central Atlanta Progress Dues 930 25,500 Clean Air Action Dues 930 20,000 Edison Electric Institute Dues 426,930 735,876 Georgia Conservancy Support 426 100,000 Georgia Council on Economic Education Dues N/A 26,666* Georgia Electrification Council, Inc. Dues 930 38,500 National Association of Manufacturers Dues 930 10,000 Nature Conservancy Support 426 20,000 Nuclear Energy Institute Dues 524,426 410,338** GULF Associated Industries of Florida Dues 426 2,670 City of Crestview - Downtown Redevelopment & Revitalization Project Support 912 10,000 Florida Public Relations Association Dues 921 850 Florida State Society of Washington, D.C. Dues 426 300 Florida Taxwatch, Inc. Dues 426 5,000 Northwest Florida Regional Economic Development Coalition Support 912 188,056 Pensacola Area Chamber of Commerce Support 912 50,222 Santa Rosa County Authority for Economic Activity Support 912 10,000 University of West Florida - Center for Business Research & Economic Development Support 912 27,300 Washington County Chamber of Commerce Support 912 10,000 Other Economic Development Councils/ Activity Groups (13 Beneficiaries) Dues & Support 426,912,921,930 23,220 MISSISSIPPI Area Development Partnership Dues 930 6,000 East Mississippi Business Development Corporation Dues 930 10,000 Economic Development Authority of Jones County Dues 930 2,750 Edison Electric Institute Dues 930 60,933 Jackson County Economic Development Dues 930 4,000 Mississippi Gulf Coast Chamber of Commerce Dues 930 2,920 Mississippi Manufacturers Association Dues 930 2,000 Mississippi Nature Conservancy Dues 930 5,000 * Georgia Power Foundation. ** Excludes dues billed to joint owners of Plants Hatch and Vogtle.
44 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued) - -----------------------------------------------------------------
Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) - --------------- -------------------------------- ------- ------- --------- SAVANNAH American Economic Development Council Dues 930 305 Association County Commissioners of Georgia Dues 930 500 Economic Opportunity Authority Support 426 250 Edison Electric Institute Dues 426,930 47,356 Georgia Economic Developers Association Dues 930 200 Georgia Municipal Association Dues 930 500 Georgia Quality Workforce Business Alliance Dues 930 150 Nature Conservancy Support 426 1,000 National Council for Urban Economic Development Dues 930 295 Southern Economic Development Council Dues 930 250 Utilities State Government Organization Membership 426 150
45 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS. - ----------------------------------------------------------- PART I. - ------
In Effect on Dec. 31 Transactions Serving Company Receiving Company Compensation Contract (Yes or No) (1) (2) (3) (4) (5) (6) - ---------------------------------------------------------------------------------------------------------------------- (Note) (Note) SEI (Note) (Note) Yes (Note) (Note) Southern Communications (Note) (Note) Yes (Note) (Note) Energy Solutions (Note) (Note) Yes Sublease of railcars MISSISSIPPI ALABAMA $78,778 Yes Sublease of railcars MISSISSIPPI GEORGIA $2,693 Yes Sublease of railcars SAVANNAH ALABAMA $16,027 Yes Sublease of railcars SAVANNAH GEORGIA $59,522 Yes Sublease of railcars SAVANNAH MISSISSIPPI $7,560 Yes Note: Southern Energy, Southern Communications, and Energy Solutions have agreements with SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH pursuant to which Southern Energy, Southern Communications and Energy Solutions reimburse each of such companies for the full cost of services, personnel and facilities provided to Southern Energy, Southern Communications and Energy Solutions. Pursuant to such agreements, during 1997 the total reimbursements to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH from Southern Energy were $10,779,336; $256,450; $1,009,144; $52,710; $93,054; and $9,573, respectively; from Southern Communications were were $26,094,245; $1,087,362; $1,396,034; $215,847; $542,297; and $59,221, respectively; and from Energy Solutions were $17,904,000 $1,826,000; $3,329,000; $92,000; $52,000; and $0, respectively.
Part II. None. Part III. SAVANNAH - LCG Associates, Inc. - Pension Advisors - $10,000. 46 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES. - -------------------------------------------------------------- Part I(a) - --------- Key terms: FUCO means Foreign Utility Company FUCO-S means a subsidiary of a FUCO EWG means Exempt Wholesale Generator IS means Intermediate Subsidiary PP means Project Parent SPS means Special Purpose Subsidiary
- -------------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, IS TRANSMISSION, DISTRIBUTION - -------------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST ---------------------------- 1. Southern Electric Bahamas IS N/A N/A N/A Southern Energy-Newco2, 100% Holdings, Ltd. Inc. 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 2. Southern Electric Bahamas, Ltd. IS N/A N/A N/A Southern Electric 100% 900 Ashwood Parkway, Suite 500 Bahamas Holdings, Ltd. Atlanta, GA 30338 3. ICD Utilities Limited IS N/A N/A N/A Southern Electric 25% P.O. Box F-42666 Bahamas, Ltd. Freeport, Grand Bahamas, Bahamas Foreign Company 75% 4. Freeport Power Company, Ltd. FUCO Note Note Note Southern Electric 62.5% Freeport, Grand Bahamas, Bahamas (1) (2) (3) Bahamas, Ltd. Port Authority Building Third Party 37.5% P.O. Box F-40888 Freeport, Grand Bahamas, Bahamas 5. SEI Operadora de Argentina, S.A. FUCO N/A N/A N/A Southern Energy 99.99% Buenos Aires, Argentina Resources, Inc. LN Alem 712 - Piso 7 Southern Energy, Inc. .01% (1001) Buenos Aires, Argentina 6. Southern Electric International Asia, Inc. SPS N/A N/A N/A Southern Energy 100% 18/F Hong Kong Telecom Tower Resources Inc. Taikoo Place 979 King's Road Quarry Bay, Hong Kong 7. Southern Electric International GmbH, Inc. SPS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 Resources Inc. Atlanta, GA 30338 8. Southern Energy Inc. (formerly known as IS N/A N/A N/A The Southern Co. 100% SEI Holdings, Inc.) 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 9. Asociados de Electricidad, S.A. IS N/A N/A N/A Southern Energy, Inc. 100% Buenos Aires, Argentina LN Alem 712 - Piso 7 (1001) Buenos Aires, Argentina
47
- ---------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - ---------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 10. SEI y Asociados de Argentina, S.A. IS N/A N/A N/A Southern Energy, Inc. Buenos Aires, Argentina SEI Worldwide 40.52 LN Alem 712 - Piso 7 Holdings GmbH (1001) Buenos Aires, Argentina Asociados de 45.79 Electricidad, S.A. Third Party 7.14 6.55 11. Hidroelectrica Alicura, S.A. FUCO Note N/A N/A SEI y Asociados de 59% Buenos Aires, Argentina (1) Argentina, S.A. LN Alem 712 - Piso 7 Third Party 41% (1001) Buenos Aires, Argentina 12. Southern Energy Resources, Inc. (formerly IS N/A N/A N/A Southern Energy, Inc. 100% known as Southern Energy, Inc.) 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 13. SEI Chile, S.A. IS N/A N/A N/A Southern 100% Apoquindo 3721 Energy-Newco2, Inc. Oficina 114 Edificio "Torre Las Condes" Las Condes, Chile 14. Inversiones SEI Chile Limitada IS N/A N/A N/A SEI Chile, S.A. 99% Apoquindo 3721 Southern Energy, 1% Oficina 114 Inc. Edificio "Torre Las Condes" Las Condes, Chile 15. Electrica SEI Chile Limitada (Inactive) IS N/A N/A N/A SEI Chile, S.A. 97.05% Apoquindo 3721 Southern Energy, Oficina 114 Inc 1% Edificio "Torre Las Condes" Las Condes, Chile 16. Empresa Electrica del Norte Grande, S.A. FUCO Note Note N/A Inversiones SEI 26.63% Antofagasta, Chile (3) (2) Chile Ltda Avenida Grecia 750 Electrica SEI Chile 38.35% Casilla 1290 Ltda Antofagasta, Chile Third Party 35.02% 17. Sitranor S. A. SUB N/A N/A N/A Empressa Electrica 60% Antofagasta, Chile OF del Avenida Grecia 750 FUCO Norte Grande, SA Casilla 1290 Third Party 40% Antofagasta, Chile
48
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- -------- --------- -------- GEN TRAN DIST -------- --------- -------- 18. Energia del Pacifico IS N/A N/A N/A SEI Chile, S.A. 99.9% Apoquindo 3721, Oficina 114 Southern Energy Edificio, Las Condes, Santiago, Chile International, Inc. .1% 19. Energia de Nuevo Leon, SA De CV FUCO N/A N/A N/A The Southern Company 33.33% 900 Ashwood Parkway, Suite 500 Third Party Atlanta, GA 30338 66.66% 20. Southern Electric International, Europe Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 International, Inc. Atlanta, GA 30338 21. Southern Electric International, Inc. IS N/A N/A N/A Southern Energy, 900 Ashwood Parkway, Suite 500 Inc. 100% Atlanta, GA 30338 22. Southern Investment UK, plc IS N/A N/A N/A SWEB Holdings 100% 31 Curzon Street Limited London, WIY 7AE England 23. South West Electricity, plc FUCO Note N/A Note Southern Investment 100% 800 Park Avenue (1) (3) UK, plc Aztec West Almondsbury, Bristol BS12 4SE 24. Electricity Association Limited FUCO SUB N/A N/A N/A South Western 5.9% 800 Park Avenue Electricity, plc Aztec West Third Party 94.1% Almondsbury, Bristol BS12 4SE 25. SWEB Finance Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 26. Electricity Association Technology Limited SUB N/A N/A N/A South Western 7.7% Capenhurst OF Electricity, plc 92.3% Chester CH1 6ES FUCO Third Party 27. SWEB Telecom Limited (Inactive) SUB N/A N/A N/A South Western 100% 800 Park Avenue OF Electricity, plc Aztec West FUCO Almondsbury, Bristol BS12 4SE 28. SWEB Gas Limited (Inactive) SUB N/A N/A N/A South Western 100% 800 Park Avenue OF Electricity, plc Aztec West FUCO Almondsbury, Bristol BS12 4SE
49
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST -------- --------- -------- 29. South Western Energy Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 30. SWEB Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 31. SWEB Natural Gas Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 32. South Western Natural Gas Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 33.Western Natural Gas Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 34. SWEB Retail Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 35. Electricity Pensions Limited FUCO SUB N/A N/A N/A South Western 0% 110 Buckingham Palace Road Electricity, plc Note (4) London SW1 W9SL 36. Electricity Pensions Trustee Limited FUCO SUB N/A N/A N/A South Western 5% 110 Buckingham Palace Road Electricity, plc London SW1 W9SL Third Party 95% 37. ESN Holdings Limited FUCO SUB N/A N/A N/A South Western 4.5% 800 Park Avenue Electricity, plc Aztec West Third Party 95.5% Almondsbury, Bristol BS12 4SE 38. REC Collect Limited FUCO SUB N/A N/A N/A South Western 25.0% 800 Park Avenue Electricity, plc Aztec West Third Party 75.0% Almondsbury, Bristol BS12 4SE
50
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 39. South Western Power Limited FUCO SUB Note N/A N/A South Western 100% 800 Park Avenue (1) Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 40. South Western Power Investments Limited FUCO SUB N/A N/A N/A South Western Power 100% 800 Park Avenue Limited Aztec West Almondsbury, Bristol BS12 4SE 41. Non-Fossil Purchasing Agency Limited FUCO SUB N/A N/A N/A South Western 8.3% Bamburgh House Electricity, plc Market Street Third Party 91.7% Newcastle-upon-Tyne NE1 6BH 42. Winterton Power Limited FUCO SUB Note N/A N/A South Western Power 25.0% 800 Park Avenue (1) Investments Limited Aztec West Third Party Almondsbury, Bristol BS12 4SE 75.0% 43. Teeside Power Limited FUCO SUB Note N/A N/A South Western Power 7.7% 4 Millbank (1) Investments Limited Westminster Third Party London SW1P 3ET 92.3% 44. Wind Resources Limited FUCO SUB N/A N/A N/A South Western Power 45.0% 800 Park Avenue Investments Limited Aztec West Third Party Almondsbury, Bristol BS12 4SE 55.0% 45. Coal Clough Limited FUCO SUB Note N/A N/A Wind Resources 100% 800 Park Avenue (1) Limited Aztec West Almondsbury, Bristol BS12 4SE 46. Carland Cross Limited FUCO SUB Note N/A N/A Wind Resources 100% 800 Park Avenue (1) Limited Aztec West Almondsbury, Bristol BS12 4SE 47. SWEB Property Investments Ltd. FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 48. SWEB Property Developments Ltd. FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE
51
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 49. Temple Back Developments Ltd. FUCO SUB N/A N/A N/A SWEB Property 49.0% 800 Park Avenue Developments Ltd. Aztec West Third Party Almondsbury, Bristol BS12 4SE 51.0% 50. Weston Super Mare Developments Limited FUCO SUB N/A N/A N/A Temple Back 100% 800 Park Avenue Developments, Ltd. Aztec West Almondsbury, Bristol BS12 4SE 51. SWEB Investments Limited FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 52. South West Enterprise Limited FUCO SUB N/A N/A N/A South Western 0% 800 Park Avenue Electricity, plc Note (4) Aztec West Almondsbury, Bristol BS12 4SE 53. Croeso Systems Development Ltd. FUCO SUB N/A N/A N/A SWEB Investments 50.0% Newport Road 1996 Limited St Mellons Third Party Cardiff CF3 9XW 50.0% 54. Midlands Enterprises Fund FUCO N/A N/A N/A SWEB Investments 26.80% Newport Road SUB 1996 Limited St Mellons Cardiff CF3 9XW 55.Wind Electric Limited FUCO SUB N/A N/A N/A South Western Power 11.7% Deli Investments Limited Delabole Third Party Cornwall PL33 9BZ 88.3% 56.St. Clements Services Limited FUCO SUB N/A N/A N/A South Western 9.1% 210 High Holborn Electricity, plc London WC1V 7BW Third Party 90.9% 57.SWEB Data Collection Services Limited FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 58.SWEB Investments 1996 Limited FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE
52
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 59.UK Data Collections Services Limited FUCO SUB N/A N/A N/A South Western 8.3% Chesterton House Electricity, plc 352 Avebury Boulevard Third Party 91.7% Central Milton Keynes MK9 2JH 60. South Western Helicopters Limited FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 61. Concorde House Limited FUCO SUB N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 62.SWEB Insurance Limited FUCO N/A N/A N/A South Western 100% Dixcart House, Sir William Place SUB Electricity, plc St. Peter Port, Guernsey Channel Islands GY 1 4NB 63. AZTEC Insurance Ltd. FUCO SUB N/A N/A N/A South Western 100% Dixcart House, Sir William Place Electricity, plc St Peter Port, Guernsey Channel Islands GY1 4NB 64. SWEB Pension Trustee Limited IS N/A N/A N/A South Western 100% 800 Park Avenue Electricity, plc Aztec West Almondsbury, Bristol BS12 4SE 65. South Western Electricity Share Scheme FUCO SUB N/A N/A N/A South Western 100% Trustees Limited (Inactive) Electricity, plc 800 Park Avenue Aztec West Almondsbury, Bristol BS12 4SE 66.Electralink Limited FUCO SUB N/A N/A N/A South Western 6.19% Templar House Electricity, plc 81-87 High Holborn Third parties 93.81% London WC1V 6NU 67.Northmere Limited FUCO SUB N/A N/A N/A South Western 0% 30 Millbank Electricity plc London SW1P 4RD + Others 68.Green Electron Limited FUCO SUB N/A N/A N/A South Western 90% 30 Millbank Electricity plc London SW1P 4RD Third party 10%
53
- ---------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - ----------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST -------- -------- -------- 69. Southern Electric International -Netherlands B.V. IS N/A N/A N/A Southern Electric 100% (formerly Tesro Holding, B.V.) International - Amsterdam, The Netherlands Europe, Inc. Hoekenrode 6-8 1102 BR Amsterdam The Netherlands 70.Zamojska Spolka Energetycnza s.p. 2.0.0 FUCO N/A N/A N/A Southern Electric 49% 1 Kozmiana Street International - 22-400 Zamosc Netherlands B.V. Poland Third Party 51% 71.Southern Energy UK Generation Limited IS N/A N/A N/A Southern Electric 100% 900 Ashwood Parkway, Suite 500 International - Atlanta, GA 30338 Europe, Inc. 72.Southern Energy Development - Europe Limited SPS N/A N/A N/A Southern Electric 100% 900 Ashwood Parkway, Suite 500 International - Atlanta, GA 30338 Europe, Inc 73. Southern Electric, Inc. EWG N/A N/A N/A Southern Energy, 100% 900 Ashwood Parkway, Suite 500 Inc. Atlanta, GA 30338 74. SEI Beteilligungs, GmbH IS N/A N/A N/A Southern 900 Ashwood Parkway, Suite 500 Energy-Newco2, 100% Atlanta, GA 30338 Inc. 75. P.T. Tarahan Power Company FUCO N/A N/A N/A SEI 55% JL.H.R. Rasuna Said Kav B-1 Beteilligungs, Gedung Wisma Bakrie Setiabudi GmbH Jakarta, Selatan 12920 Third Party 45% 76. Southern Electric International Trinidad, Inc. EWG N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 International, Atlanta, GA 30338 Inc. 77. The Power Generation Company of EWG Note N/A N/A Southern Electric 39% Trinidad & Tobago, Limited (1) International 6A Queens Park West Trinidad, Inc. Port of Spain, Trinidad, West Indies Third Party 61% 78. Southern Electric do Brasil Participacoes, IS N/A N/A N/A Cayman Energy 90.6% Limitada Traders 900 Ashwood Parkway, Suite 500 Foreign Pension 9.4% Atlanta, GA 30338
54
- ---------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - ---------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 79. Southern Energy North America, Inc. IS N/A N/A N/A Southern Energy, 100% (formerly Southern Electric Wholesale Inc. Generators, Inc.) 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 80. Southern Energy Trading and Marketing, IS N/A N/A N/A Southern Energy 100% Inc. (formerly Southern Energy Marketing North America, Inc. Inc.) 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 81. SC Energy Ventures, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 Trading and Atlanta, GA 30338 Marketing, Inc. 82. Southern Company Energy Marketing L.P. IS N/A N/A N/A SC Energy Ventures, 59.4% 900 Ashwood Parkway, Suite 500 Inc. Atlanta, GA 30338 Southern Company 1% Energy Marketing G.P., L.L.C Domestic Corporation 39.6% 83. Southern Company Retail Energy Marketing L.P. IS N/A N/A N/A Southern Company 99% 900 Ashwood Parkway, Suite 500 Energy Marketing Atlanta, GA 30338 L.P., Southern Company 1% Energy Marketing G.P. L.L.C. 84. Southern Energy Retail Trading and IS N/A N/A N/A Southern Energy 100% Marketing, Inc. Trading and 900 Ashwood Parkway, Suite 500 Marketing, Inc. Atlanta, GA 30338 85. SC Ashwood Holdings, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 Trading and Atlanta, GA 30338 Marketing, Inc. 86. Southern Company Energy Marketing G.P., IS N/A N/A N/A SC Ashwood 60% L.L.C. Holdings, Inc. 900 Ashwood Parkway, Suite 500 Domestic Corporation 40% Atlanta, GA 30338 87. SEI Birchwood, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 North America Inc. Atlanta, GA 30338
55
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 88. Greenhost, Inc. EWG N/A N/A N/A SEI Birchwood, Inc. 50% 900 Ashwood Parkway, Suite 500 Domestic Corporation Atlanta, GA 30338 50% 89. Birchwood Power Partners, L.P. EWG Note N/A N/A SEI Birchwood, Inc. 50% 900 Ashwood Parkway, Suite 500 (1) Third Party Atlanta, GA 30338 50% 90. SEI Hawaiian Cogenerators, Inc. EWG N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 North America, Inc. Atlanta, GA 30338 91. Southern Energy - Cajun, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 North America, Inc. Atlanta, GA 30338 92.Louisiana Generating, LLC IS N/A N/A N/A Southern 40% 900 Ashwood Parkway, Suite 500 Energy-Cajun, Inc. Atlanta, GA 30338 Third Party 60% 93. SEI State Line, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 North America, Inc. Atlanta, GA 30338 94. State Line Holding Corporation IS N/A N/A N/A SEI State Line, Inc. 100% 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 95. State Line Energy, L.L.C. EWG N/A N/A N/A SEI State Line, Inc. 60% 900 Ashwood Parkway, Suite 500 State Line Holding Atlanta, GA 30338 Corporation 40% 96. Southern Energy International, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 Inc. Atlanta, GA 30338 97. Southern Energy do Brazil Ltda. SPS N/A N/A N/A Southern Energy 99.85% 900 Ashwood Parkway, Suite 500 International, Inc. Atlanta, GA 30338 Southern Energy .15% Resources, Inc. 98. Southern Energy-Newco2, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 International, Inc. Atlanta, GA 30338
56
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 99. Southern Energy- Asia, Inc. IS N/A N/A N/A Southern Energy 100% Suite 1401, Two Exchange Square International, Inc. 8 Connaught Place Hong Kong 100.Consolidated Electric Power Asia Limited SPS N/A N/A N/A Southern Energy 80.004% 18/F Hong Kong Telecom Tower Asia, Inc. Taikoo Place Foreign Corp 19.996% 979 King's Road Quarry Bay, Hong Kong 101.Allied Queensland Coalfields, Ltd SPS N/A N/A N/A CEPA Mining and 95.17% 18/F Hong Kong Telecom Tower Engineering Limited Taikoo Place Marsford 979 King's Road Investments Ptd. 4.83% Quarry Bay, Hong Kong Centre Ltd. Hong Kong 102.Aberdare Collieries Pty Limited SPS N/A N/A N/A Allied Queensland 100% 18/F Hong Kong Telecom Tower Coalfield Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 103.AQC (Wilkie Creek) Pty Ltd. SPS N/A N/A N/A AQC (Kogan Creek) 100% 18/F Hong Kong Telecom Tower Pty Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 104.AQC (Kogan Creek) Pty Limited SPS N/A N/A N/A Allied Queensland 100% 18/F Hong Kong Telecom Tower Coalfields Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 105.Baralaba Coal Pty Limited SPS N/A N/A N/A Allied Queensland 100% 18/F Hong Kong Telecom Tower Coalfields Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 106.CEPA Power China (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong
57
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 107.CEPA Energy (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 108.CEPA Project Management (BVI) Company Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 109.CEPA Energy International (BVI) Limited SPS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 110.CEPA Slipform Power Systems (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 111.CEPA Tileman Power Systems (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 112.CEPA Mobile Power Systems (BVI) IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 113.CEPA Guangxi Energy (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 114.CEPA Nominee (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong
58
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 115.CEPA Construction Resources (BVI) SPS N/A N/A N/A CEPA Construction 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 116. Consolidated Construction Resources Limited SPS N/A N/A N/A CEPA Construction 50% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 117. HOPEC Engineering Design Limited SPS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Construction Taikoo Place Resources Limited 979 King's Road Quarry Bay, Hong Kong 118.CEPA Construction (Hong Kong) Limited SPS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 119.CEPA Operations, (Hong Kong) Limited SPS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 120.CEPA Eastern Power Plant Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 121.CEPA Pangasinan Electric Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 122.CEPA Pakistan (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong
59
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 123.CEPA India (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 124.CEPA Operations (Phillippines) Corp. SPS N/A N/A N/A CEPA Operations, 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 125.CEPA Project Management and Engineering IS N/A N/A N/A Consolidated 100% (BVI) Limited Electric Power Asia 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 126.CEPA Energy Pakistan Limited FUCO N/A N/A N/A CEPA Pakistan 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 127.CEPA Procurement (BVI) Ltd IS N/A N/A N/A CEPA Construction 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 128.CEPA Sourcing (BVI) Ltd IS N/A N/A N/A CEPA Construction 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 129.CEPA Procurement (Delaware) L.L.C. SPS N/A N/A N/A CEPA (BVI) 51% 18/F Hong Kong Telecom Tower Procurement Limited Taikoo Place CEPA Sourcing 979 King's Road Limited 49% Quarry Bay, Hong Kong
60
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 130.CEPA Mining and Engineering Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 131.Marsford Investments Pte Ltd. I/S N/A N/A N/A CEPA Mining and 100% 18/F Hong Kong Telecom Tower Engineering Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 132.Carrigon Management Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 133.Cachelot Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 134.CEPA Services Corp. SPS N/A N/A N/A Hopewell Mobil 100% 18/F Hong Kong Telecom Tower Power Systems Corp. Taikoo Place 979 King's Road Quarry Bay, Hong Kong 135.CEPA Investment (Mauritius) Limited IS N/A N/A N/A CEPA India (BVI) 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 136.Consolidated Electric Power Asia Limited FUCO N/A N/A N/A CEPA Investment 100% (India) Private Limited (Mauritius) Limited 18/F Hong Kong Telecom Tower Taikoo Place 979 King's Road Quarry Bay, Hong Kong
61
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 137.CEPA Guangxi Energy Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 138.Excellent Crown Limited SPS N/A N/A N/A Montana Enterprises 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 139.Fortune Wheels Investment Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place, 979 King's Road Limited Quarry Bay, Hong Kong 140.Five Stars Venture Limited IS N/A N/A N/A CEPA Operations 16.98% 18/F Hong Kong Telecom Tower (Hong Kong) Limited Taikoo Place CEPA Project 979 King's Road Management and 15.11% Quarry Bay, Hong Kong Engineering (BVI) Limited CEPA Construction (Hong Kong) Limited 67.91% 141.Hopewell Project Management Company Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 142.Hopewell Energy Limited IS N/A N/A N/A Consolidated 80% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Foreign Company 20% Quarry Bay, Hong Kong 143.Guangdong Guanghope Power Co., Ltd. FUCO N/A N/A N/A Hopewell Energy 40% 18/F Hong Kong Telecom Tower Limited Taikoo Place Foreign Company 60% 979 King's Road Quarry Bay, Hong Kong
62
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 144.Hopewell Energy International Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 145.Hopewell Energy (Phillippines) Corp. FUCO N/A N/A N/A Hopewell Project 60.1% 18/F Hong Kong Telecom Tower Management Company Taikoo Place Limited 979 King's Road Foreign Company 39.9% Quarry Bay, Hong Kong 146.Hopewell Power (Phillippines) Corp. FUCO N/A N/A N/A Consolidated 87.22% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Foreign Company 12.78% Quarry Bay, Hong Kong 147.Hopewell Tileman (Phillippines) Corp. FUCO N/A N/A N/A Navotas II Holding 100% 18/F Hong Kong Telecom Tower Corp. Taikoo Place 979 King's Road Quarry Bay, Hong Kong 148.Hopewell Mobile Power Systems Corp. FUCO N/A N/A N/A CEPA Mobile Power 100% 18/F Hong Kong Telecom Tower Systems (BVI) Taikoo Place Corporation 979 King's Road Quarry Bay, Hong Kong 149.Hopewell Energy International (BVI) Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 150.Lemon Grove Investments Pty Limited SPS N/A N/A N/A Allied Queensland 100% 18/F Hong Kong Telecom Tower Coalfields Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 151.Montana Enterprises Limited SPS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong
63
- ---------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 152.New Whitwood Collieries Pty Ltd. SPS N/A N/A N/A Aberdare Collieries 100% 18/F Hong Kong Telecom Tower Pty Ltd. Taikoo Place 979 King's Road Quarry Bay, Hong Kong 153.Navotas II (BVI) Holdings Corp. IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 154.Pangasinan Electric Corporation FUCO N/A N/A N/A CEPA Pangasinan 100% 18/F Hong Kong Telecom Tower Electric Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 155.Pagbilao Shipping Corporation SPS N/A N/A N/A CEPA Construction 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 156.Phillippine Power and Infrastructure Holding IS N/A N/A N/A Consolidated 100% Corporation Electric Power Asia 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong
64
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 157.Riverview Coal Terminal Pty Ltd. SPS N/A N/A N/A Aberdare Collieries 100% 18/F Hong Kong Telecom Tower Pty Ltd. Taikoo Place 979 King's Road Quarry Bay, Hong Kong 158.CEPA - Finance Corporation SPS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place 979 King's Road Quarry Bay, Hong Kong 159.Sorensen Enterprises Limited IS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 160.Sual Construction Corporation SPS N/A N/A N/A CEPA Construction 100% 18/F Hong Kong Telecom Tower Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 161.Treharn Assets Limited SPS N/A N/A N/A Consolidated 100% 18/F Hong Kong Telecom Tower Electric Power Asia Taikoo Place Limited 979 King's Road Quarry Bay, Hong Kong 162.Tiaro Coal Pty Limited SPS N/A N/A N/A Allied Queensland 100% 18/F Hong Kong Telecom Tower Coalfields Limited Taikoo Place 979 King's Road Quarry Bay, Hong Kong 163.Southern Electric International Finance, IS N/A N/A N/A Southern Electric 100% Inc. International - 1105 North Market Street Europe, Inc. Suite 1300 Wilmington, Delaware 19899
65
- --------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 164.The Southern Company - Europe, plc IS N/A N/A N/A Southern Electric 100% 31 Curzon Street International - London W1Y 7AE England Europe, Inc. 165.SWEB Holdings Limited IS N/A N/A N/A Southern Electric 75% 800 Park Avenue International - Aztec West Europe, Inc. Almondsbury, Bristol BS12 4SE Domestic Corporation 25% 166.Southern Energy Finance Company, Inc. IS N/A N/A N/A Southern Energy, 100% 900 Ashwood Parkway, Suite 500 Inc. Atlanta, GA 30338 167.EPZ Lease, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 Finance Company, Atlanta, GA 30338 Inc. 168.EPZ Lease, LLC IS N/A N/A N/A EPZ Lease, Inc. 99% 900 Ashwood Parkway, Suite 500 Southern Energy 1% Atlanta, GA 30338 Finance Company, Inc. 169.EPZ Lease Holding A, LLC IS N/A N/A N/A EPZ Lease,LLC 99% 900 Ashwood Parkway, Suite 500 EPZ Lease, Inc. 1% Atlanta, GA 30338 170.EPZ Lease Holding B, LLC IS N/A N/A N/A EPZ Lease, LLC 99% 900 Ashwood Parkway, Suite 500 EPZ Lease, Inc. 1% Atlanta, GA 30338 171.EPZ Lease Holding C, LLC IS N/A N/A N/A EPZ Lease, LLC 99% 900 Ashwood Parkway, Suite 500 EPZ Lease, Inc. 1% Atlanta, GA 30338 172.EPZ Lease Trust A FUCO N/A N/A N/A EPZ Lease Holding 100% 900 Ashwood Parkway, Suite 500 A, LLC Atlanta, GA 30338 173.EPZ Lease Trust B FUCO N/A N/A N/A EPZ Lease Holding 100% 900 Ashwood Parkway, Suite 500 B, LLC Atlanta, GA 30338
66
- -------------------------------------------------------------------------------------------------------------------------------- COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - -------------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 174.EPZ Lease Trust C FUCO N/A N/A N/A EPZ Lease Holding C, LLC 100% 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 175.Southern Energy E Associados IS N/A N/A N/A Southern Electric Brasil 99% Participacoes, S.A. Participacoes, Ltda Av. Presidente Juscelino Kubitschek 50 Southern Energy Conj. 172 International, Inc. 04543-000 Sao Paulo, Brazil 1% 176.Cayman Energy Traders IS N/A N/A N/A Southern Energy 51% P.O. Box 309 Ugland House International Inc. South Church Street Third Party 49% Grand Cayman, Cayman Islands, British West Indies 177.SEI Germany - BEWAG, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 International Atlanta, GA 30338 178 SEI Worldwide Holdings, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 International Atlanta, GA 30338 179. SEI Worldwide Holdings (Germany) GmbH IS N/A N/A N/A SEI Germany- BEWAG, Inc. 50% 900 Ashwood Parkway, Suite 500 SEI Worldwide Holdings, Atlanta, GA 30338 Inc. 50% 180.Southern Energy Holding IS N/A N/A N/A SEI Worldwide Holdings 100% Beteiligungsgesellschaft GmbH (Germany GmbH) 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 181.BEWAG FUCO N/A N/A N/A Southern Energy 26% 900 Ashwood Parkway, Suite 500 Beteiligungsgsellschaft Atlanta, GA 30338 GmbH 182. Southern Energy Clairton, Inc. IS N/A N/A N/A Southern Energy Finance 100% 900 Ashwood Parkway, Suite 500 Company, Inc. Atlanta, GA 30338
67
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED EWG, TRANSMISSION, IS DISTRIBUTION - --------------------------------------------------------------------------------------------------------------------------- GEN TRAN DIST --------- --------- -------- 183. Southern Energy Clairton, L.L.C IS N/A N/A N/A Southern Energy 85% 900 Ashwood Parkway, Suite 500 Clairton, Inc. Atlanta, GA 30338 Southern Energy 15% Clairton2, Inc. 184. Clairton 1314 B Partnership, L.P. IS N/A N/A N/A Southern Energy 27% 900 Ashwood Parkway, Suite 500 Clairton, L.L.C Atlanta, GA 30338 Domestic Corp. 73% 185. Southern Energy Clairton2, Inc. IS N/A N/A N/A Southern Energy 100% 900 Ashwood Parkway, Suite 500 Finance Company, Atlanta, GA 30338 Inc. 186.Southern Company Capital Funding, Inc. IS N/A N/A N/A Southern Energy, 100% 900 Ashwood Parkway, Suite 500 Inc. Atlanta, GA 30338 187. Southern Company Capital Trust I SPS N/A N/A N/A Southern Company 100% 900 Ashwood Parkway, Suite 500 Capital Funding, Atlanta, GA 30338 Inc. 188. Southern Company Capital Trust II SPS N/A N/A N/A Southern Company 100% 900 Ashwood Parkway, Suite 500 Capital Funding, Atlanta, GA 30338 Inc. 189. Southern Company Capital Trust III SPS N/A N/A N/A Southern Company 100% 900 Ashwood Parkway, Suite 500 Capital Funding, Atlanta, GA 30338 Inc. 190. Mobile Energy Services Holdings, Inc. IS N/A N/A N/A Southern Company 100% 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 191. Mobile Energy Services, L.L.C. IS N/A N/A N/A Mobile Energy 99% 900 Ashwood Parkway, Suite 500 Services Holdings, Atlanta, GA 30338 Inc. Southern Energy 1% Resources, Inc. 192. Companhia Energetica de Minas Gerais FUCO N/A N/A N/A Cayman Energy 33% (CEMIG) Traders 900 Ashwood Parkway, Suite 500 Foreign Government 51% Atlanta, GA 30338 General Public 16%
68
ITEM 9. WHOLSALE GENERATORS AND FOREIGN UTILITY COMPANIES. - ----------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Note 1 - Generating Facilities: - -------------------------------- Facilities in Operation - ---------------------------------------------------------------------------------------------------------------------------- Megawatts of Capacity Percentage ----------------------- ---------- Facility Location Units Owned Operated Ownership Type -------- -------- ----- ----- ------- --------- ---- Alicura Argentina 4 (A) 551 (A) 1,000 55.14% Hydro BEWAG Germany 18 443 1,702 26.00% Coal BEWAG Germany 17 375 1,444 26.00% Oil & Gas Birchwood Virginia 1 111 222 50.00% Coal (B) CEPA China 3 634 - (C) 32.00% Coal CEPA Philippines 2 641 735 87.22% Coal CEPA Philippines 3 126 210 60.10% Oil CEPA Philippines 13 381 381 100.00% Oil Edelnor Chile 1 111 166 67.00% Coal Edelnor Chile 37 77 115 67.00% Oil Edelnor Chile 2 7 10 67.00% Hydro Freeport Grand Bahama 8 79 127 62.50% Oil UDG - Niagara New York 1 - 50 - Coal (B) Mobile Energy Alabama 3 111 111 100.00% Waste/Biomass (B) PowerGen Co. Trinidad and Tobago 21 459 1,178 39.00% Gas State Line Indiana 2 490 490 100.00% Coal South Western Electricity United Kingdom 8 108 - (C) 5.78% Gas South Western Electricity United Kingdom 12 11 15 75.00% Oil & Gas South Western Electricity United Kingdom 3 5 - (C) 28.50% Wind South Western Electricity United Kingdom 3 1 - (C) 18.75% Landfill Gas Total Capacity 4,721 7,956(C) Facilities Under Development - -------------------------------------------------------------------------------------------------------------------------------- Megawatts of Capacity Percentage Facility Location Units Owned Operated Ownership Type CEPA Philippines 2 1,200 * 1,200 100.00% Coal Edelnor Chile 1 104 160 67.00% Coal Total Capacity 1,304 1,360 - -------------------------------- ---------------------------------------------------------------------------------------------- * Percentage owned will ultimately be 91.91% on completion, with the owned capacity reduced to 1,103 MW (A) Represents megawatts of capacity under a concession agreement expiring in the year 2023. (B) Cogeneration facility. (C) Does not include Shajiao C (1,980 MW) or UK power plants (150 MW) that are partially owned but not operated by CEPA and SWEB, respectively.
69 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES. - ------------------------------------------------------------ Note 2 - Transmission Facilities: - ----------------------------------- Edelnor (Chile) - approximately 962 kilometers as follows: Operating Voltage Approximate Kilometers ----------------- ---------------------- (kVs) 23 17 66 197 110 282 220 466 --- 962 === Freeport (Grand Bahamas) - approximately 50 miles of 69 kV transmission lines. Note 3 - Distribution Facilities: Freeport (Grand Bahamas) - 420 Miles of 7.2 KV Overhead 18 Miles of 7.2 KV Underground 205 Miles of 12.5 KV Overhead 20 Miles of 7.2 KV Underground South West Electricity (United Kingdom) - approximately 48,054 kilometers as follows: Operating Voltage Approximate Kilometers ----------------- ---------------------- (kVs) Under 5 18,944 6.6 148 11 23,645 33 3,794 132 1,523 ------ 48,054 ====== South Western Electricity's distribution system for the Isles of Scilly includes 57 kilometers of 33 kV submarine cable, which connects the islands to the mainland, and 15 kilometers of 11 kV submarine cable which interconnects the individual islands. Note 4 - Notes to Item 9 - Part 1A: Electricity Pensions Limited and South West Enterprise Limited are both subsidiaries of South Western Electricity, plc that show 0% ownership due to both companies being limited by a guarantee. Electricity Pensions Limited was created to coordinate the administration of the Electricity Supply Pension Scheme. South West Enterprise Limited was created to catalyze, coordinate, and promote economic development in Devon and Cornwall. 70 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES - ----------------------------------------------------------- PART I(b); PART I(c) and PART I(d) are being filed pursuant to Rule 104. PART II Exhibits H and I submitted with this filing, are being incorporated by reference. PART III is being filed pursuant to Rule 104. 71
ITEM 10 - FINANCIAL STATEMENTS AND EXHIBITS - ------------------------------------------- SOUTHERN AND SUBSIDIARY COMPANIES INDEX TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Page Number ------ REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS A-1 FINANCIAL STATEMENTS: Consolidating Statement of Income for the Year Ended December 31, 1997 A-2 Consolidating Statement of Cash Flows for the Year Ended December 31, 1997 A-4 Consolidating Balance Sheet at December 31, 1997 A-6 Consolidating Statement of Capitalization at December 31, 1997 A-10 Consolidating Statement of Retained Earnings for the Year Ended December 31, 1997 A-13 Consolidating Statement of Paid-in Capital for the Year Ended December 31, 1997 A-14 Notes to Financial Statements at December 31, 1997 A-15 OTHER FINANCIAL STATEMENTS: ALABAMA consolidated with ALABAMA TRUST I and ALABAMA TRUST II A-16 ALABAMA TRUST I (Consolidated in Parent, ALABAMA) A-21 ALABAMA TRUST II (Consolidated in Parent, ALABAMA) A-23 Alabama Property Company (Unaudited; Not consolidated in Parent, ALABAMA) A-25 GEORGIA consolidated with PIEDMONT, GEORGIA CAPITAL, GEORGIA TRUST I, GEORGIA TRUST II and GEORGIA TRUST III A-28 PIEDMONT (Consolidated in Parent, GEORGIA) A-33 GEORGIA CAPITAL (Consolidated in Parent, GEORGIA) A-36 GEORGIA TRUST I (Consolidated in Parent, GEORGIA) A-38 GEORGIA TRUST II (Consolidated in Parent, GEORGIA) A-40 GEORGIA TRUST III (Consolidated in Parent, GEORGIA) A-42 GULF consolidated with GULF TRUST I A-44 GULF TRUST I (Consolidated in Parent, GULF) A-48 MISSISSIPPI consolidated with MISSISSIPPI TRUST I A-50 MISSISSIPPI TRUST I A-54 EXHIBITS A-56 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, 1997, as filed with the Federal Energy Regulatory Commission.
A REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To The Southern Company: We have audited the consolidated balance sheet and consolidated statement of capitalization of THE SOUTHERN COMPANY (a Delaware corporation) and its subsidiaries as of December 31, 1997, and the related consolidated statement of income, retained earnings, paid-in capital, and cash flows for the year then ended (included in the 1997 annual report on Form 10-K, which is Exhibit A-1 to this Form U5S). These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Southern Company and its subsidiaries as of December 31, 1997, and the results of their operations and their cash flows for the year then ended, in conformity with generally accepted accounting principles. /s/ Arthur Andersen LLP Atlanta, Georgia February 11, 1998 A-1
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers OPERATING REVENUES: Consolidated Add (Deduct) SOUTHERN ALABAMA Subsidiary operating companies-- Revenues $12,610,972 $ (14,729) $ - $ 2,987,316 Sales to affiliates - (388,375) - 161,795 SOUTHERN, equity in earnings of subsidiary companies - (1,059,991) 1,059,991 - - --------------------------------------------------------------------------------------------------------------------------------- Total operating revenues 12,610,972 (1,463,095) 1,059,991 3,149,111 - --------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation-- Fuel 2,280,956 - - 896,014 Purchased power from non-affiliates 3,032,637 221 - 41,795 Purchased power from affiliates - (377,634) - 95,538 Other 1,930,064 (26,702) 34,822 510,203 Maintenance 762,945 - - 242,691 Depreciation & amortization 1,246,111 3,039 - 330,377 Amortization of deferred Plant Vogtle costs, net 120,577 - - - Taxes other than income taxes 572,341 - 155 185,062 Income taxes 724,881 (76) (0) 220,228 - --------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 10,670,512 (401,152) 34,977 2,521,908 - --------------------------------------------------------------------------------------------------------------------------------- OPERATING INCOME 1,940,460 (1,061,943) 1,025,014 627,203 - --------------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSE): Allowance for equity funds used during construction 6,461 - - - Interest income 151,693 (61,881) 23,815 37,844 Other, net 52,960 (8,630) 7,073 (34,256) Income taxes - other income 33,868 - - 12,351 Windfall profits tax assessed in United Kingdom (148,062) - - - - --------------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 2,037,380 (1,132,454) 1,055,902 643,142 - --------------------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES AND OTHER: Interest on long-term debt 679,696 (60,811) 39,781 167,172 Allowance for debt funds used during construction (14,053) - - (4,787) Interest on interim obligations 111,694 - 42,865 22,787 Amortization of debt discount, premium, & expense, net 34,233 - - 9,645 Other interest charges 63,250 - 1,680 36,037 Distributions on capital and preferred securities of subsidiary companies 119,577 - - 21,763 - --------------------------------------------------------------------------------------------------------------------------------- Interest charges and other, net 994,397 (60,811) 84,326 252,617 - --------------------------------------------------------------------------------------------------------------------------------- NET INCOME 1,042,983 (1,071,643) 971,576 390,525 Preferred dividends of subsidiary companies 42,741 - - 14,586 - --------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK OF SUBSIDIARY COMPANIES 1,000,242 (1,071,643) 971,576 375,939 Minority Interest 28,666 (98) - - - --------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $ 971,576 $(1,071,545) $ 971,576 $ 375,939 ================================================================================================================================= AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING (in thousands) 685,033 EARNINGS PER SHARE OF COMMON STOCK $1.42 CASH DIVIDENDS PAID PER SHARE OF COMMON STOCK $1.30 (Continued on following page) A-2A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) OPERATING REVENUES: GEORGIA GULF MISSISSIPPI SAVANNAH Subsidiary operating companies-- Revenues $ 4,347,009 $ 609,096 $533,445 $ 224,225 Sales to affiliates 38,708 16,760 10,143 2,052 SOUTHERN, equity in earnings of subsidiary companies - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Total operating revenues 4,385,717 625,856 543,588 226,277 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING EXPENSES: Operation-- Fuel 857,269 180,843 142,059 35,563 Purchased power from non-affiliates 143,409 11,938 14,536 2,347 Purchased power from affiliates 177,240 24,955 37,794 42,107 Other 702,159 126,266 102,365 47,735 Maintenance 317,199 47,988 47,302 13,236 Depreciation & amortization 572,640 57,874 45,574 20,152 Amortization of deferred Plant Vogtle costs, net 120,577 - - - Taxes other than income taxes 207,192 51,775 44,034 11,494 Income taxes 426,918 35,034 31,968 16,419 - ------------------------------------------------------------------------------------------------------------------------------------ Total operating expenses 3,524,603 536,673 465,632 189,053 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING INCOME 861,114 89,183 77,956 37,224 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSE): Allowance for equity funds used during construction 6,012 3 - 239 Interest income 10,581 1,203 857 279 Other, net (31,568) (995) 2,368 (781) Income taxes - other income 31,763 1,584 588 1,233 Windfall profits tax assessed in United Kingdom - - - - - ------------------------------------------------------------------------------------------------------------------------------------ INCOME BEFORE INTEREST CHARGES 877,902 90,978 81,769 38,194 - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST CHARGES AND OTHER: Interest on long-term debt 194,344 21,699 19,856 10,907 Allowance for debt funds used during construction (8,962) (5) - (164) Interest on interim obligations 7,795 891 96 172 Amortization of debt discount, premium, & expense, net 14,179 2,281 1,577 739 Other interest charges 10,254 2,081 574 369 Distributions on capital and preferred securities of subsidiary companies 47,369 2,804 2,369 - - ------------------------------------------------------------------------------------------------------------------------------------ Interest charges and other, net 264,979 29,751 24,472 12,023 - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME 612,923 61,227 57,297 26,171 Preferred dividends of subsidiary companies 18,927 3,617 3,287 2,324 - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK OF SUBSIDIARY COMPANIES 593,996 57,610 54,010 23,847 Minority Interest - - - - - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $ 593,996 $ 57,610 $ 54,010 $ 23,847 ==================================================================================================================================== AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING (in thousands) EARNINGS PER SHARE OF COMMON STOCK CASH DIVIDENDS PAID PER SHARE OF COMMON STOCK (Continued on following page) A-2B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) OPERATING REVENUES: SEGCO SEIH* MESH Subsidiary operating companies-- Revenues $ 1,298 $3,750,458 $ 86,481 Sales to affiliates 147,307 - - SOUTHERN, equity in earnings of subsidiary companies - - - - ---------------------------------------------------------------------------------------------------------------------- Total operating revenues 148,605 3,750,458 86,481 - ---------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation-- Fuel 91,776 74,080 3,352 Purchased power from non-affiliates - 2,812,574 5,817 Purchased power from affiliates - - - Other 20,001 268,337 16,524 Maintenance 11,328 74,109 8,555 Depreciation & amortization 8,034 181,539 12,322 Amortization of deferred Plant Vogtle costs, net - - - Taxes other than income taxes 760 69,204 1,062 Income taxes 4,405 3,565 3,810 - ---------------------------------------------------------------------------------------------------------------------- Total operating expenses 136,304 3,483,408 51,442 - ---------------------------------------------------------------------------------------------------------------------- OPERATING INCOME 12,301 267,050 35,039 - ---------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSE): Allowance for equity funds used during construction 207 - - Interest income - 137,569 922 Other, net 633 119,071 45 Income taxes - other income 5 (13,656) - Windfall profits tax assessed in United Kingdom - (148,062) - - ---------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 13,146 361,972 36,006 - ---------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES AND OTHER: Interest on long-term debt 4,726 251,074 27,799 Allowance for debt funds used during construction (135) - - Interest on interim obligations - 37,088 - Amortization of debt discount, premium, & expense, net 23 3,712 2,077 Other interest charges - 12,255 - Distributions on capital and preferred securities of subsidiary companies - 45,272 - - ---------------------------------------------------------------------------------------------------------------------- Interest charges and other, net 4,614 349,401 29,876 - ---------------------------------------------------------------------------------------------------------------------- NET INCOME 8,532 12,571 6,130 Preferred dividends of subsidiary companies - - - - ---------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK OF SUBSIDIARY COMPANIES 8,532 12,571 6,130 Minority Interest - 28,666 98 - ---------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $ 8,532 $(16,095) $ 6,032 ====================================================================================================================== * Preliminary. Currently under audit. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement. A-3A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Energy Southern Southern Southern OPERATING REVENUES: Solutions Communications Information Telecom Subsidiary operating companies-- Revenues $ 43,015 $ 41,495 $ 342 $ 1,521 Sales to affiliates 2,496 9,114 - - SOUTHERN, equity in earnings of subsidiary companies - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Total operating revenues 45,511 50,609 342 1,521 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING EXPENSES: Operation-- Fuel - - - - Purchased power from non-affiliates - - - - Purchased power from affiliates - - - - Other 53,459 72,965 1,139 791 Maintenance - 537 - - Depreciation & amortization 424 14,136 - - Amortization of deferred Plant Vogtle costs, net - - - - Taxes other than income taxes 124 1,479 - - Income taxes (2,895) (14,545) (279) 329 - ------------------------------------------------------------------------------------------------------------------------------------ Total operating expenses 51,112 74,572 860 1,120 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING INCOME (5,601) (23,963) (518) 401 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSE): Allowance for equity funds used during construction - - - - Interest income 225 100 - 179 Other, net - - - - Income taxes - other income - - - - Windfall profits tax assessed in United Kingdom - - - - - ------------------------------------------------------------------------------------------------------------------------------------ INCOME BEFORE INTEREST CHARGES (5,376) (23,863) (518) 580 - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST CHARGES AND OTHER: Interest on long-term debt - 3,149 - - Allowance for debt funds used during construction - - - - Interest on interim obligations - - - - Amortization of debt discount, premium, & expense, net - - - - Other interest charges - - - - Distributions on capital and preferred securities of subsidiary companies - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Interest charges and other, net - 3,149 - - - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME (5,376) (27,012) (518) 580 Preferred dividends of subsidiary companies - - - - - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK OF SUBSIDIARY COMPANIES (5,376) (27,012) (518) 580 Minority Interest - - - - - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $(5,376) $(27,012) $(518) $580 ==================================================================================================================================== AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING (in thousands) EARNINGS PER SHARE OF COMMON STOCK CASH DIVIDENDS PAID PER SHARE OF COMMON STOCK (Continued on following page) A-3B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) SOUTHERN ALABAMA OPERATING ACTIVITIES: Consolidated net income $ 971,576 $ (1,114,286) $ 971,576 $ 390,525 Adjustments to reconcile consolidated net income to net cash provided by operating activities-- Depreciation and amortization 1,470,814 - - 394,572 Deferred income taxes and investment tax credits (4,548) (402) - (12,429) Allowance for equity funds used during construction (6,461) - - - Amortization of deferred Plant Vogtle costs, net 120,577 - - - Loss (Gain) on asset sales (25,031) - - - Other, net (59,881) (96,531) 36,375 (11,353) Changes in certain current assets and liabilities excluding effects from acquisitions -- Receivables, net (238,122) 1,027,928 (923,731) (30,268) Fossil fuel stock 41,362 - - 7,518 Materials and supplies 20,871 - - 6,191 Accounts payable 138,344 (53,785) (1,392) (9,745) Other 195,884 (40,947) 15,840 20,426 - ------------------------------------------------------------------------------------------------------------------------------ NET CASH PROVIDED FROM OPERATING ACTIVITIES 2,625,385 (278,023) 98,668 755,437 - ------------------------------------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES: Gross property additions (1,858,745) - - (451,167) Southern Energy business acquisitions, net of cash acquired (2,924,765) - - - Sales of property 32,125 - - - Other (13,818) 2,118,565 (1,507,988) (51,791) - ------------------------------------------------------------------------------------------------------------------------------ NET CASH USED FOR INVESTING ACTIVITIES (4,765,203) 2,118,565 (1,507,988) (502,958) - ------------------------------------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES: Proceeds -- Common stock 359,691 - 359,691 - Capital contributions - (1,422,809) 445,000 - Preferred securities 1,321,250 - - 200,000 First mortgage bonds - - - - Other long-term debt 2,498,959 (1,475,142) 618,558 258,800 Retirements -- Preferred stock (659,709) - - (184,888) First mortgage bonds (167,559) - - (74,951) Other long-term debt (802,198) (17,914) - (951) Interim obligations, net 508,849 (6,400) 701,599 (57,971) Payment of common stock dividends (889,005) 1,028,376 (889,005) (339,600) Payment of preferred stock dividends - 60,422 - (22,524) Miscellaneous 125,528 (7,075) (1,205) (16,024) - ------------------------------------------------------------------------------------------------------------------------------ NET CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES 2,295,806 (1,840,542) 1,234,638 (238,109) - ------------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 155,988 - (174,682) 14,370 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 444,832 - 208,700 9,587 - ------------------------------------------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS AT END OF YEAR $ 600,820 $ - $ 34,018 $ 23,957 ============================================================================================================================== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the year for -- Interest (net of amount capitalized) $ 876,216 $ (31,714) $ 70,841 $ 209,919 Income taxes 822,781 - - 207,653 (Continued on following page) A-4A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) GEORGIA GULF MISSISSIPPI SAVANNAH OPERATING ACTIVITIES: Consolidated net income $ 612,923 $ 61,227 $ 57,297 $ 26,171 Adjustments to reconcile consolidated net income to net cash provided by operating activities-- Depreciation and amortization 674,286 72,860 49,661 21,083 Deferred income taxes and investment tax credits (21,425) (7,047) (1,809) 3,841 Allowance for equity funds used during construction (6,012) (3) - (239) Amortization of deferred Plant Vogtle costs, net 120,577 - - - Loss (Gain) on asset sales (974) - - - Other, net 3,050 2,408 3,206 (2,577) Changes in certain current assets and liabilities excluding effects from acquisitions -- Receivables, net 13,387 (1,111) (8,583) (3,239) Fossil fuel stock 21,315 9,056 1,517 687 Materials and supplies 18,433 1,618 1,631 1,033 Accounts payable (10,007) 1,398 8,357 (1,608) Other (53,725) 25,141 3,980 4,667 - -------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES 1,371,828 165,547 115,257 49,819 - -------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES: Gross property additions (475,921) (54,289) (55,375) (18,846) Southern Energy business acquisitions, net of cash acquired - - - - Sales of property - - - - Other 16,223 509 (489) (1,418) - -------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES (459,698) (53,780) (55,864) (20,264) - -------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES: Proceeds -- Common stock - - - - Capital contributions (205,000) - - - Preferred securities 364,250 40,000 35,000 - First mortgage bonds - - - - Other long-term debt 284,700 60,930 - 13,870 Retirements -- Preferred stock (356,392) (75,911) (42,518) - First mortgage bonds (60,258) (25,000) - - Other long-term debt (284,700) (56,902) (10) (14,303) Interim obligations, net (64,266) 22,000 - (5,000) Payment of common stock dividends (520,000) (64,600) (49,400) (20,500) Payment of preferred stock dividends (26,917) (5,370) (3,287) (2,324) Miscellaneous 24,430 (3,014) (1,804) (368) - -------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES (844,153) (107,867) (62,019) (28,625) - -------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 67,977 3,900 (2,626) 930 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 15,356 807 7,058 5,214 - -------------------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 83,333 $ 4,707 $ 4,432 $ 6,144 ================================================================================================================================ SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the year for -- Interest (net of amount capitalized) $ 258,298 $ 26,558 $ 22,297 $ 11,619 Income taxes 427,596 36,010 33,450 11,150 A-4B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) SOUTHERN SEGCO SCS NUCLEAR SEIH* OPERATING ACTIVITIES: Consolidated net income $ 8,532 $ - $ - $ (16,095) Adjustments to reconcile consolidated net income to net cash provided by operating activities-- Depreciation and amortization 8,683 16,471 1,256 202,983 Deferred income taxes and investment tax credits (900) - - 15,700 Allowance for equity funds used during construction (207) - - - Amortization of deferred Plant Vogtle costs, net - - - - Loss (Gain) on asset sales - - - (24,057) Other, net (111) 27,585 (6,645) (10,680) Changes in current assets and liabilities excluding effects from acquisitions -- Receivables, net 9,018 (66,765) (21,008) (213,763) Fossil fuel stock - - - 1,269 Materials and supplies - 835 - (5,239) Accounts payable (1,639) 38,306 2,075 137,129 Other 87 15,755 25,881 175,603 - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES 23,463 32,187 1,559 262,850 - ---------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES: Gross property additions (4,753) (19,108) (687) (719,963) Southern Energy business acquisitions, net of cash acquired - - - (2,924,765) Sales of property - - - 32,125 Other (3,581) 1,048 184 (589,078) - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES (8,334) (18,060) (503) (4,201,681) - ---------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES: Proceeds -- Common stock - - - - Capital contributions - - (7) 1,166,957 Preferred securities - - - 682,000 First mortgage bonds - - - - Other long-term debt - - - 2,683,888 Retirements -- Preferred stock - - - - First mortgage bonds - - - - Other long-term debt (4,698) (25,129) - (397,591) Interim obligations, net - 6,400 - (80,824) Payment of common stock dividends (10,448) - - (7,816) Payment of preferred stock dividends - - - - Miscellaneous - - - 130,588 - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES (15,146) (18,729) (7) 4,177,202 - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (17) (4,602) 1,049 238,371 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 111 4,607 1,205 160,130 - ---------------------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 94 $ 5 $ 2,254 $ 398,501 ================================================================================================================================== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the year for -- Interest (net of amount capitalized) $4,362 $7,308 $ 282 $ 268,289 Income taxes 4,684 - 2,550 99,688 A-5A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) Energy Southern Southern Southern MESH Solutions Communications Information Telecom SERC OPERATING ACTIVITIES: Consolidated net income $ 6,032 $ (5,376) $(27,012) $ (518) $ 580 $ - net cash provided by operating activities-- Depreciation and amortization 14,398 424 14,137 - - - Deferred income taxes and investment tax credits 11,650 1,644 6,629 - - - Allowance for equity funds used during construction - - - - - - Amortization of deferred Plant Vogtle costs, net - - - - - - Loss (Gain) on asset sales - - - - - - Other, net (4,687) (583) (4,918) 3 5,577 - Changes in current assets and liabilities excluding effects from acquisitions -- Receivables, net (673) (14,848) (1,909) (727) (1,933) 103 Fossil fuel stock - - - - - - Materials and supplies (331) (90) (3,063) (147) - - Accounts payable 7,918 5,216 14,821 633 333 334 Other (983) 626 1,632 (215) 2,116 - - ------------------------------------------------------------------------------------------------------------------------------------ NET CASH PROVIDED FROM OPERATING ACTIVITIES 33,324 (12,987) 317 (971) 6,673 437 - ------------------------------------------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES: Gross property additions (1,172) (2,639) (51,433) - (3,392) - Southern Energy business acquisitions, net of cash acquired - - - - - - Sales of property - - - - - - Other - 6,043 - (919) (1,126) - - ------------------------------------------------------------------------------------------------------------------------------------ NET CASH USED FOR INVESTING ACTIVITIES (1,172) 3,404 (51,433) (919) (4,518) - - ------------------------------------------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES: Proceeds -- Common stock - - - - - - Capital contributions - 11,184 - 1,895 2,780 - Preferred securities - - - - - - First mortgage bonds - - - - - - Other long-term debt - 1,247 52,108 - - - Retirements -- Preferred stock - - - - - - First mortgage bonds (7,350) - - - - - Other long-term debt - - - - - - Interim obligations, net (6,689) - - - - - Payment of common stock dividends (16,012) - - - - - Payment of preferred stock dividends - - - - - - Miscellaneous - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ NET CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES (30,051) 12,431 52,108 1,895 2,780 - - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,101 2,848 992 5 4,935 437 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 26,679 882 4,216 3 197 80 - ------------------------------------------------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS AT END OF YEAR $ 28,780 $ 3,730 $ 5,208 $ 8 $5,132 $517 ==================================================================================================================================== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the year for -- Interest (net of amount capitalized) $ 28,142 $ - $ 15 $ - $ - $ - Income taxes - - - - - - * Preliminary. Currently under audit. A-5B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers Consolidated Add (Deduct) SOUTHERN ALABAMA UTILITY PLANT: Plant in service $34,044,182 $ - $ - $11,070,323 Less accumulated provision for depreciation 11,933,718 - - 4,384,180 - ---------------------------------------------------------------------------------------------------------------------------------- 22,110,464 - - 6,686,143 Nuclear fuel, at amortized cost 230,154 - - 103,272 Construction work in progress 1,311,540 - - 311,223 - ---------------------------------------------------------------------------------------------------------------------------------- Total 23,652,158 - - 7,100,638 - ---------------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS: Goodwill, being amortized 1,887,574 - - - Leasehold interests, being amortized 1,388,928 - - - Equity investments in subsidiaries 1,167,739 (10,089,871) 10,039,259 34,374 Nuclear decommissioning trusts 387,425 - - 193,008 Miscellaneous 741,936 (623,009) 15,735 12,831 - ---------------------------------------------------------------------------------------------------------------------------------- Total 5,573,602 (10,712,880) 10,054,994 240,213 - ---------------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS: Cash and cash equivalents 600,820 - 34,018 23,957 Special Deposits 17,337 (94) - - Receivables-- Customer accounts receivable 1,347,193 (4,456) - 368,255 Affiliated companies - (1,321,492) 942,149 50,353 Other accounts and notes receivable 830,105 (26,252) 32,899 28,921 Accumulated provision for uncollectible accounts (77,056) - - (2,272) Refundable income taxes - (33,480) - - Fossil fuel stock, at average cost 214,406 1,611 - 74,186 Materials and supplies, at average cost 492,516 - - 161,601 Prepayments 98,398 (12,855) 47 20,453 Vacation pay deferred 78,866 - - 28,783 - ---------------------------------------------------------------------------------------------------------------------------------- Total 3,602,585 (1,397,018) 1,009,113 754,237 - ---------------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES AND OTHER ASSETS: Deferred charges related to income taxes 1,142,045 (66,566) - 384,549 Prepaid pension costs 398,736 - - 130,733 Deferred Plant Vogtle costs 50,412 - - - Debt expense, being amortized 101,068 - - 7,276 Premium on reacquired debt, being amortized 285,149 - - 81,417 Nuclear decontamination and decommissioning fund 63,103 - - 34,416 Miscellaneous 401,652 20,445 - 79,388 - ---------------------------------------------------------------------------------------------------------------------------------- Total 2,442,165 (46,121) - 717,779 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $35,270,510 $(12,156,019) $11,064,107 $8,812,867 ================================================================================================================================== A-6A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) ASSETS GEORGIA GULF MISSISSIPPI SAVANNAH UTILITY PLANT: Plant in service $15,082,570 $1,762,244 $1,518,402 $ 760,694 Less accumulated provision for depreciation 5,319,680 737,767 559,098 321,509 - ----------------------------------------------------------------------------------------------------------------------------------- 9,762,890 1,024,477 959,304 439,185 Nuclear fuel, at amortized cost 126,882 - - - Construction work in progress 214,128 31,030 41,083 7,709 - ----------------------------------------------------------------------------------------------------------------------------------- Total 10,103,900 1,055,507 1,000,387 446,894 - ----------------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS: Goodwill, being amortized - - - - Leasehold interests, being amortized - - - - Equity investments in subsidiaries 24,973 - - - Nuclear decommissioning trusts 194,417 - - - Miscellaneous 87,907 622 650 1,783 - ----------------------------------------------------------------------------------------------------------------------------------- Total 307,297 622 650 1,783 - ----------------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS: Cash and cash equivalents 83,333 4,707 4,432 6,144 Special Deposits - - - 94 Receivables-- Customer accounts receivable 385,844 69,822 39,839 28,842 Affiliated companies 20,333 7,329 7,398 1,128 Other accounts and notes receivable 110,278 2,744 8,666 720 Accumulated provision for uncollectible accounts (3,000) (796) (698) (354) Refundable income taxes - - - - Fossil fuel stock, at average cost 96,067 19,296 10,651 5,205 Materials and supplies, at average cost 240,387 28,634 19,452 6,980 Prepayments 27,503 2,171 10,170 5,922 Vacation pay deferred 40,996 4,057 5,030 - - ----------------------------------------------------------------------------------------------------------------------------------- Total 1,001,741 137,964 104,940 54,681 - ----------------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES AND OTHER ASSETS: Deferred charges related to income taxes 688,472 26,586 21,906 17,267 Prepaid pension costs 67,777 10,385 - 3,424 Deferred Plant Vogtle costs 50,412 - - - Debt expense, being amortized 40,927 2,447 2,726 2,255 Premium on reacquired debt, being amortized 166,609 20,494 9,508 7,121 Nuclear decontamination and decommissioning fund 28,687 - - - Miscellaneous 117,906 11,607 26,712 13,927 - ----------------------------------------------------------------------------------------------------------------------------------- Total 1,160,790 71,519 60,852 43,994 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $12,573,728 $1,265,612 $1,166,829 $547,352 ===================================================================================================================================
A-6B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) SOUTHERN ASSETS SEGCO SCS NUCLEAR SEIH* UTILITY PLANT: Plant in service $312,313 $ 209,657 $ 11,555 $ 2,734,414 Less accumulated provision for depreciation 201,451 135,276 8,922 206,153 - --------------------------------------------------------------------------------------------------------------------------------- 110,862 74,381 2,633 2,528,261 Nuclear fuel, at amortized cost - - - - Construction work in progress 10,735 23,106 - 661,997 - --------------------------------------------------------------------------------------------------------------------------------- Total 121,597 97,487 2,633 3,190,258 - --------------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS: Goodwill, being amortized - - - 1,887,574 Leasehold interests, being amortized - - - 1,388,928 Equity investments in subsidiaries - - - 1,159,004 Nuclear decommissioning trusts - - - - Miscellaneous 7 2,877 1,605 1,230,820 - --------------------------------------------------------------------------------------------------------------------------------- Total 7 2,877 1,605 5,666,326 - --------------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS: Cash and cash equivalents 94 5 2,254 398,501 Special Deposits - - - 2 Receivables-- Customer accounts receivable - - - 432,206 Affiliated companies 27,586 155,207 102,705 1,883 Other accounts and notes receivable 9 41,749 52 605,550 Accumulated provision for uncollectible accounts - - - (67,443) Refundable federal income tax - - - 32,407 Fossil fuel stock, at average cost - - - 7,373 Materials and supplies, at average cost - 2,116 - 23,198 Prepayments 4,581 4,228 3,967 30,123 Vacation pay deferred - - - - - --------------------------------------------------------------------------------------------------------------------------------- Total 32,270 203,305 108,978 1,463,800 - --------------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES AND OTHER ASSETS: Deferred charges related to income taxes 3,265 - - 66,566 Prepaid pension costs 2 - - 186,415 Deferred Plant Vogtle costs - - - - Debt expense, being amortized 133 - - 31,799 Premium on reacquired debt, being amortized - - - - Nuclear decontamination and decommissioning fund - - - - Miscellaneous 669 5,778 24,733 91,068 - --------------------------------------------------------------------------------------------------------------------------------- Total 4,069 5,778 24,733 375,848 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $157,943 $ 309,447 $137,949 $10,696,232 ================================================================================================================================= * Preliminary. Currently under audit. A-7A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Energy Southern ASSETS MESH Solutions Communications UTILITY PLANT: Plant in service $ 369,310 1,274 $ 210,481 Less accumulated provision for depreciation 35,091 739 23,852 - --------------------------------------------------------------------------------------------------------------------------- 334,219 535 186,629 Nuclear fuel, at amortized cost - - - Construction work in progress 1,676 2,737 6,010 - --------------------------------------------------------------------------------------------------------------------------- Total 335,895 3,272 192,639 - --------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS: Goodwill, being amortized - - - Leasehold interests, being amortized - - Equity investments in subsidiaries - - - Nuclear decommissioning trusts - - - Miscellaneous 2,727 5,336 - - --------------------------------------------------------------------------------------------------------------------------- Total 2,727 5,336 - - --------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS: Cash and cash equivalents 28,780 3,730 5,208 Special Deposits 17,335 - - Receivables-- Customer accounts receivable 15,465 - 11,376 Affiliated companies 1 3,210 1,908 Other accounts and notes receivable 44 21,607 538 Accumulated provision for uncollectible accounts - (222) (2,271) Refundable income taxes - - 1,073 Fossil fuel stock, at average cost 17 - - Materials and supplies, at average cost 3,185 169 6,647 Prepayments 967 - 856 Vacation pay deferred - - - - --------------------------------------------------------------------------------------------------------------------------- Total 65,794 28,494 25,335 - --------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES AND OTHER ASSETS: Deferred charges related to income taxes - - - Prepaid pension costs - - - Deferred Plant Vogtle costs - - - Debt expense, being amortized 13,505 - - Premium on reacquired debt, being amortized - - - Nuclear decontamination and decommissioning fund - - - Miscellaneous 5,694 42 1,604 - --------------------------------------------------------------------------------------------------------------------------- Total 19,199 42 1,604 - --------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 423,615 37,144 $ 219,578 =========================================================================================================================== A-7B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Southern Southern ASSETS Information Telecom SERC UTILITY PLANT: Plant in service $ - $ 945 $ - Less accumulated provision for depreciation - - - - ------------------------------------------------------------------------------------------------------------ - 945 - Nuclear fuel, at amortized cost - - - Construction work in progress - 106 - - ------------------------------------------------------------------------------------------------------------ Total - 1,051 - - ------------------------------------------------------------------------------------------------------------ OTHER PROPERTY AND INVESTMENTS: Goodwill, being amortized - - - Leasehold interests, being amortized - - - Equity investments in subsidiaries - - - Nuclear decommissioning trusts - - - Miscellaneous 919 1,126 - - ------------------------------------------------------------------------------------------------------------ Total 919 1,126 - - ------------------------------------------------------------------------------------------------------------ CURRENT ASSETS: Cash and cash equivalents 8 5,132 517 Special Deposits - - - Receivables-- Customer accounts receivable - - - Affiliated companies 5 75 222 Other accounts and notes receivable 722 1,858 - Accumulated provision for uncollectible accounts - - - Refundable income taxes - - - Fossil fuel stock, at average cost - - - Materials and supplies, at average cost 147 - - Prepayments 265 - - Vacation pay deferred - - - - ------------------------------------------------------------------------------------------------------------ Total 1,147 7,065 739 - ------------------------------------------------------------------------------------------------------------ DEFERRED CHARGES AND OTHER ASSETS: Deferred charges related to income taxes - - - Prepaid pension costs - - - Deferred Plant Vogtle costs - - - Debt expense, being amortized - - - Premium on reacquired debt, being amortized - - - Nuclear decontamination and decommissioning fund - - - Miscellaneous - 1,925 154 - ------------------------------------------------------------------------------------------------------------ Total - 1,925 154 - ------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $ 2,066 $ 11,167 893 ============================================================================================================ A-7C
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers CAPITALIZATION AND LIABILITIES Consolidated Add (Deduct) SOUTHERN ALABAMA CAPITALIZATION (see accompanying statements): Common stock equity $ 9,646,964 $(10,089,205) $9,646,964 $2,750,569 Preferred stock of subsidiaries 493,346 - - 255,512 Company or subsidiary obligated mandatorily redeemable capital and preferred securities 1,743,520 - - 297,000 Long-term debt 10,273,606 (1,521,090) 618,558 2,473,202 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,157,436 (11,610,295) 10,265,522 5,776,283 - ------------------------------------------------------------------------------------------------------------------------------------ MINORITY INTEREST 434,987 (667) - - - ------------------------------------------------------------------------------------------------------------------------------------ CURRENT LIABILITIES: Long-term debt due within one year 783,805 - - 75,336 Notes payable 690,706 (6,400) - - Commercial paper 1,373,543 - 768,688 306,882 Accounts payable-- Affiliated companies - (288,733) 2,238 79,822 Other 1,048,266 47 4,102 159,146 Customer deposits 133,018 - - 34,968 Taxes accrued-- Federal and state income 119,782 (46,335) - 21,177 Other 259,297 - 9 15,309 Interest accrued 261,668 (17,938) 18,296 50,722 Vacation pay accrued 108,207 - - 28,783 Miscellaneous 608,761 (16,233) - 103,602 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,387,053 (375,592) 793,333 875,747 - ------------------------------------------------------------------------------------------------------------------------------------ DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes 4,649,826 (92,929) - 1,192,265 Deferred credits related to income taxes 745,674 - - 327,328 Accumulated deferred investment tax credits 753,861 - - 282,873 Employee benefits provisions(1) 447,187 (20,987) - 80,354 Prepaid capacity revenues, net 109,982 - - 109,982 Department of Energy assessments 72,193 - - 30,592 Disallowed Plant Vogtle capacity buyback costs 55,856 - - - Storm damage reserves 38,407 - - 22,416 Miscellaneous 418,048 (55,549) 5,252 115,027 - ------------------------------------------------------------------------------------------------------------------------------------ Total 7,291,034 (169,465) 5,252 2,160,837 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CAPITALIZATION AND LIABILITIES $35,270,510 $(12,156,019) $11,064,107 $8,812,867 ==================================================================================================================================== (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. (Continued on following page) A-8A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) CAPITALIZATION AND LIBILITIES GEORGIA GULF MISSISSIPPI SAVANNAH CAPITALIZATION (see accompanying statements): Common stock equity $4,019,728 $ 428,718 $ 387,824 $ 175,631 Preferred stock of subsidiaries 157,247 13,691 31,896 35,000 Company or subsidiary obligated mandatorily redeemable capital and preferred securities 689,250 40,000 35,000 - Long-term debt 2,982,835 296,993 291,665 142,846 - ---------------------------------------------------------------------------------------------------------------------------------- Total 7,849,060 779,402 746,385 353,477 - ---------------------------------------------------------------------------------------------------------------------------------- MINORITY INTEREST - - - - - ---------------------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES: Long-term debt due within one year 220,855 53,327 35,020 21,764 Notes payable 142,300 47,000 - - Commercial paper 223,930 - - - Accounts payable-- Affiliated companies 71,373 14,334 8,548 6,025 Other 261,293 20,205 34,065 7,862 Customer deposits 68,618 13,778 3,225 5,541 Taxes accrued-- Federal and state income 4,480 - 1,101 534 Other 111,541 8,258 33,859 2,791 Interest accrued 72,437 7,227 4,098 4,963 Vacation pay accrued 32,285 4,057 5,017 1,893 Miscellaneous 73,398 24,011 23,256 9,031 - ---------------------------------------------------------------------------------------------------------------------------------- Total 1,282,510 192,197 148,189 60,404 - ---------------------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes 2,417,547 166,302 134,645 80,697 Deferred credits related to income taxes 297,560 56,935 38,203 21,469 Accumulated deferred investment tax credits 397,202 31,552 27,121 12,607 Employee benefits provisions(1) 169,887 25,323 51,189 6,353 Prepaid capacity revenues, net - - - - Department of Energy assessments 41,601 - - - Disallowed Plant Vogtle capacity buyback costs 55,856 - - - Storm damage reserves - - 13,991 2,000 Miscellaneous 62,505 13,901 7,106 10,345 - ---------------------------------------------------------------------------------------------------------------------------------- Total 3,442,158 294,013 272,255 133,471 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $12,573,728 $1,265,612 $1,166,829 $ 547,352 ================================================================================================================================== (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. (Continued on following page) A-8B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) SOUTHERN CAPITALIZATION AND LIABILITIES SEGCO SCS NUCLEAR SEIH* CAPITALIZATION (see accompanying statements): Common stock equity $ 49,945 $ 875 $ 1,862 $ 2,132,062 Preferred stock of subsidiaries - - - - Company or subsidiary obligated mandatorily redeemable capital and preferred securities - - - 682,270 Long-term debt 71,642 36,021 5,000 4,517,903 - -------------------------------------------------------------------------------------------------------------------------------- Total 121,587 36,896 6,862 7,332,235 - -------------------------------------------------------------------------------------------------------------------------------- MINORITY INTEREST - - - 434,984 - -------------------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES: Long-term debt due within one year - 2,300 - 366,806 Notes payable - 6,400 - 485,251 Commercial paper - - - 74,043 Accounts payable-- Affiliated companies 8,468 43,385 13,780 1,059 Other - 58,381 13,805 462,501 Customer deposits - - - 6,888 Taxes accrued-- Federal and state income 2,648 - 4,608 129,288 Other 543 5,275 896 79,297 Interest accrued 1,107 3 72 106,780 Vacation pay accrued - 18,197 13,482 3,786 Miscellaneous 389 63,163 25,481 297,784 - -------------------------------------------------------------------------------------------------------------------------------- Total 13,155 197,104 72,124 2,013,483 - -------------------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes 16,516 - - 663,693 Deferred credits related to income taxes 4,179 - - - Accumulated deferred investment tax credits 2,506 - - - Employee benefits provisions(1) - 64,800 58,527 11,124 Prepaid capacity revenues, net - - - - Department of Energy assessments - - - - Disallowed Plant Vogtle capacity buyback costs - - - - Storm damage reserves - - - - Miscellaneous - 10,647 436 240,713 - -------------------------------------------------------------------------------------------------------------------------------- Total 23,201 75,447 58,963 915,530 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $157,943 $309,447 $ 137,949 $10,696,232 ================================================================================================================================ * Preliminary. Currently under audit. (1) Includes Post Retirement Life & Medical Provisions, Supplemental and Other Pension Accruals, Early Retirement Incentive Program Costs and Other Work Force Reduction Costs, and Miscellaneous Post Employment Benefits. The notes to the financial statements (herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this statement. A-9A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Energy Southern CAPITALIZATION AND LIABILITIES MESH Solutions Communications CAPITALIZATION (see accompanying statements): Common stock equity $ 14,888 $ 20,428 $ 101,725 Preferred stock of subsidiaries - - - Company or subsidiary obligated mandatorily redeemable capital and preferred securities - - - Long-term debt 289,969 774 67,288 - ----------------------------------------------------------------------------------------------------------------------------- Total 304,857 21,202 169,013 - ----------------------------------------------------------------------------------------------------------------------------- MINORITY INTEREST 670 - - - ----------------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES: Long-term debt due within one year 7,885 473 39 Notes payable 16,155 - - Commercial paper - - - Accounts payable-- Affiliated companies 23,882 2,414 12,188 Other 4,812 8,411 13,128 Customer deposits - - - Taxes accrued-- Federal and state income 165 - - Other 297 47 1,175 Interest accrued 13,504 - 397 Vacation pay accrued - 266 441 Miscellaneous - 2,836 1,993 - ----------------------------------------------------------------------------------------------------------------------------- Total 66,700 14,447 29,361 - ----------------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes 51,388 985 18,717 Deferred credits related to income taxes - - - Accumulated deferred investment tax credits - - - Employee benefits provisions(1) - - 617 Prepaid capacity revenues, net - - - Department of Energy assessments - - - Disallowed Plant Vogtle capacity buyback costs - - - Storm damage reserves - - - Miscellaneous - 510 1,870 - ----------------------------------------------------------------------------------------------------------------------------- Total 51,388 1,495 21,204 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $ 423,615 $ 37,144 $ 219,578 ============================================================================================================================= (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. (Continued on following page) A-9B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997 (Stated in Thousands of Dollars) (Continued) Southern Southern CAPITALIZATION AND LIABILITIES Information Telecom SERC CAPITALIZATION (see accompanying statements): Common stock equity $ 1,382 $ 3,563 $ 5 Preferred stock of subsidiaries - - - Company or subsidiary obligated mandatorily redeemable capital and preferred securities - - - Long-term debt - - - - ---------------------------------------------------------------------------------------------------------------------- Total 1,382 3,563 5 - ---------------------------------------------------------------------------------------------------------------------- MINORITY INTEREST - - - - ---------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES: Long-term debt due within one year - - - Notes payable - - - Commercial paper - - - Accounts payable-- Affiliated companies 196 305 716 Other 438 52 18 Customer deposits - - - Taxes accrued-- Federal and state income - 2,116 - Other - - - Interest accrued - - - Vacation pay accrued - - - Miscellaneous 50 - - - ---------------------------------------------------------------------------------------------------------------------- Total 684 2,473 734 - ---------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes - - - Deferred credits related to income taxes - - - Accumulated deferred investment tax credits - - - Employee benefits provisions(1) - - - Prepaid capacity revenues, net - - - Department of Energy assessments - - - Disallowed Plant Vogtle capacity buyback costs - - - Storm damage reserves - - - Miscellaneous - 5,131 154 - ---------------------------------------------------------------------------------------------------------------------- Total - 5,131 154 - ---------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $ 2,066 $ 11,167 $ 893 ====================================================================================================================== (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. A-9C
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) SOUTHERN ALABAMA COMMON STOCK EQUITY: Common stock, par value $5 per share Authorized -- 1,000,000,000 shares Outstanding -- 1997: 693 million shares $3,467,115 $ (699,656) $ 3,467,115 $ 224,358 Paid-in capital(1) 2,337,714 (6,022,280) 2,337,714 1,304,744 Retained earnings 3,842,135 (3,367,269) 3,842,135 1,221,467 - --------------------------------------------------------------------------------------------------------------------------------- Total common stock equity 9,646,964 (10,089,205) 9,646,964 2,750,569 - --------------------------------------------------------------------------------------------------------------------------------- CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES $100 par or stated value-- 4.20% to 5.64% 88,930 - - 47,512 6.32% to 7.00% 47,074 - - - $25 par or stated value-- 6.40% to 6.80% 131,661 - - 88,000 Auction rates--at January 1, 1998-- 4.20% to 4.235% 70,000 - - 70,000 Adjustable rates--at January 1, 1998-- 4.67% to 5.27% 155,681 - - 50,000 - --------------------------------------------------------------------------------------------------------------------------------- Total (annual dividend requirement--$27 million) 493,346 - - 255,512 - --------------------------------------------------------------------------------------------------------------------------------- COMPANY OR SUBSIDIARY OBLIGATED MANDATORILY REDEEMABLE CAPITAL AND PREFERRED SECURITIES: $25 liquidation value-- 7.375% 97,000 - - 97,000 7.60% to 7.625% 415,000 - - 200,000 7.75% 649,250 - - - 8.14% to 9% 582,270 - - - - --------------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement--$138 million) 1,743,520 - - 297,000 - --------------------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT OF SUBSIDIARIES: First mortgage bonds -- Maturity Interest Rates -------------------- --------------------------------- 1998 5% to 8.665% 237,885 - - 50,000 1999 6 1/8% to 8.665% 373,340 - - 170,000 2000 6% to 8.665% 348,840 - - 100,000 2001 8.665% 9,335 2002 6.85% to 8.665% 259,695 100,000 2003 through 2007 6.07% to 8.665% 944,270 - - 475,000 2008 through 2012 6 7/8% to 8.665% 120,740 - - - 2013 through 2017 8.665% 72,860 - - - 2018 through 2022 8.30% to 8 3/4% 476,108 - - 446,108 2023 through 2026 6 7/8% to 9% 1,109,250 - - 500,000 - ----------------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds 3,952,323 - - 1,841,108 Other long-term debt 7,190,532 (1,521,090) 618,558 742,045 Unamortized debt premium (discount), net (85,444) - - (34,615) - ------------------------------------------------------------------------------------------------------------------------------------ Total long-term debt (annual interest requirement--$738 million) 11,057,411 (1,521,090) 618,558 2,548,538 Less amount due within one year 783,805 - - 75,336 - ------------------------------------------------------------------------------------------------------------------------------------ Long-term debt excluding amount due within one year 10,273,606 (1,521,090) 618,558 2,473,202 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CAPITALIZATION $ 22,157,436 $(11,610,295) $10,265,522 5,776,283 =================================================================================================================================== A-10A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997 (Stated in Thousands of Dollars) GEORGIA GULF MISSISSIPPI SAVANNAH COMMON STOCK EQUITY: Common stock, par value $5 per share Authorized -- 1,000,000,000 shares Outstanding -- 1997: 693 million shares $ 344,250 $ 38,060 $ 37,691 $ 54,223 Paid-in capital(1) 1,930,131 218,450 179,716 8,688 Retained earnings 1,745,347 172,208 170,417 112,720 - ---------------------------------------------------------------------------------------------------------------------------- Total common stock equity 4,019,728 428,718 387,824 175,631 - ---------------------------------------------------------------------------------------------------------------------------- CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES $100 par or stated value-- 4.20% to 5.64% 30,355 4,241 6,822 - 6.32% to 7.00% 22,000 - 25,074 - $25 par or stated value-- 6.40% to 6.80% - 8,661 - 35,000 Auction rates--at January 1, 1998-- 4.20% to 4.235% - - - - Adjustable rates--at January 1, 1998-- 4.67% to 5.27% 104,892 789 - - - ---------------------------------------------------------------------------------------------------------------------------- Total (annual dividend requirement--$27 million) 157,247 13,691 31,896 35,000 - ---------------------------------------------------------------------------------------------------------------------------- COMPANY OR SUBSIDIARY OBLIGATED MANDATORILY REDEEMABLE CAPITAL AND PREFERRED SECURITIES: $25 liquidation value-- 7.375% - - - - 7.60% to 7.625% 175,000 40,000 - - 7.75% 414,250 - 35,000 - 8.14% to 9% 100,000 - - - - ---------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement--$138 million) 689,250 40,000 35,000 - - ---------------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT OF SUBSIDIARIES: First mortgage bonds -- Maturity Interest Rates ----------------------------- ----------------- 1998 5% to 8.665% 100,000 45,000 35,000 - 1999 6 1/8% to 8.665% 195,000 - - - 2000 6% to 8.665% 200,000 - 40,000 - 2001 8.665% - - 2002 6.85% to 8.665% 150,000 - - 2003 through 2007 6.07% to 8.665% 285,000 55,000 35,000 40,000 2008 through 2012 6 7/8% to 8.665% 50,000 - - - 2013 through 2017 8.665% - - - - 2018 through 2022 8.30% to 8 3/4% - - - 30,000 2023 through 2026 6 7/8% to 9% 474,250 30,000 65,000 40,000 - ---------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds 1,454,250 130,000 175,000 110,000 Other long-term debt 1,757,865 224,957 153,725 54,610 Unamortized debt premium (discount), net (8,425) (4,637) (2,040) - - ---------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement--$738 million) 3,203,690 350,320 326,685 164,610 Less amount due within one year 220,855 53,327 35,020 21,764 - ---------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year 2,982,835 296,993 291,665 142,846 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION $7,849,060 $779,402 $746,385 $ 353,477 ============================================================================================================================ (1) Includes premium on preferred stock. A-10B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997 (Stated in Thousands of Dollars) SOUTHERN SEGCO SCS NUCLEAR SEIH* COMMON STOCK EQUITY: Common stock, par value $5 per share Authorized -- 1,000,000,000 shares Outstanding -- 1997: 693 million shares $ 328 $ 725 $ $ 10 $ 1 Paid-in capital(1) 32,472 150 1,852 2,131,937 Retained earnings 17,145 - - 124 - ---------------------------------------------------------------------------------------------------------------------------------- Total common stock equity 49,945 875 1,862 2,132,062 - ---------------------------------------------------------------------------------------------------------------------------------- CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES $100 par or stated value-- 4.20% to 5.64% - - - - 6.32% to 7.00% - - - - $25 par or stated value-- 6.40% to 6.80% - - - - Auction rates--at January 1, 1998-- 4.20% to 4.235% - - - - Adjustable rates--at January 1, 1998-- 4.67% to 5.27% - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Total (annual dividend requirement--$27 million) - - - - - ---------------------------------------------------------------------------------------------------------------------------------- COMPANY OR SUBSIDIARY OBLIGATED MANDATORILY REDEEMABLE CAPITAL AND PREFERRED SECURITIES: $25 liquidation value-- 7.375% - - - - 7.60% to 7.625% - - - - 7.75% - - - 200,000 8.14% to 9% - - - 482,270 - ---------------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement--$138 million) - - - 682,270 - ---------------------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT OF SUBSIDIARIES: First mortgage bonds -- Maturity Interest Rates ----------------------------- -------------------- 1998 5% to 8.665% - - - - 1999 6 1/8% to 8.665% - - - - 2000 6% to 8.665% - - - - 2001 8.665% - - 2002 6.85% to 8.665% - - 2003 through 2007 6.07% to 8.665% - - - - 2008 through 2012 6 7/8% to 8.665% - - - - 2013 through 2017 8.665% - - - - 2018 through 2022 8.30% to 8 3/4% - - - - 2023 through 2026 6 7/8% to 9% - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds - - - - Other long-term debt 71,902 38,321 5,000 4,891,065 Unamortized debt premium (discount), net (260) - - (6,356) - ---------------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement--$738 million) 71,642 38,321 5,000 4,884,709 Less amount due within one year - 2,300 - 366,806 - ---------------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year 71,642 36,021 5,000 4,517,903 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION $121,587 $ 36,896 $ 6,862 $7,332,235 ================================================================================================================================== (1) Includes premium on preferred stock. * Preliminary. Currently under audit. (Continued on following page) A-11A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997 (Stated in Thousands of Dollars) Energy Southern Southern Southern MESH Solutions Communications Information Telecom SERC COMMON STOCK EQUITY: Common stock, par value $5 per share Authorized -- 1,000,000,000 shares Outstanding -- 1997: 693 million shares $ 1 $ 1 $ 1 $ 1 $ 1 5 Paid-in capital(1) 14,887 36,842 157,505 1,900 3,006 - Retained earnings - (16,415) (55,781) (519) 556 - - ------------------------------------------------------------------------------------------------------------------------------------ Total common stock equity 14,888 20,428 101,725 1,382 3,563 5 - ------------------------------------------------------------------------------------------------------------------------------------ CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES $100 par or stated value-- 4.20% to 5.64% - - - - - - 6.32% to 7.00% - - - - - - $25 par or stated value-- 6.40% to 6.80% - - - - - - Auction rates--at January 1, 1998-- 4.20% to 4.235% - - - - - - Adjustable rates--at January 1, 1998-- 4.67% to 5.27% - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Total (annual dividend requirement--$27 million) - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ COMPANY OR SUBSIDIARY OBLIGATED MANDATORILY REDEEMABLE CAPITAL AND PREFERRED SECURITIES: $25 liquidation value-- 7.375% - - - - - - 7.60% to 7.625% - - - - - - 7.75% - - - - - - 8.14% to 9% - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Total (annual distribution requirement--$138 million) - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM DEBT OF SUBSIDIARIES: First mortgage bonds -- Maturity Interest Rates ----------------------------- ---------------------- 1998 5% to 8.665% 7,885 - - - - - 1999 6 1/8% to 8.665% 8,340 - - - - - 2000 6% to 8.665% 8,840 - - - - - 2001 8.665% 9,335 2002 6.85% to 8.665% 9,695 2003 through 2007 6.07% to 8.665% 54,270 - - - - - 2008 through 2012 6 7/8% to 8.665% 70,740 - - - - - 2013 through 2017 8.665% 72,860 - - - - - 2018 through 2022 8.30% to 8 3/4% - - - - - - 2023 through 2026 6 7/8% to 9% - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Total first mortgage bonds 241,965 - - - - - Other long-term debt 85,000 1,247 67,327 - - - Unamortized debt premium (discount), net (29,111) - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ Total long-term debt (annual interest requirement--$738 million) 297,854 1,247 67,327 - - - Less amount due within one year 7,885 473 39 - - - - ------------------------------------------------------------------------------------------------------------------------------------ Long-term debt excluding amount due within one year 289,969 774 67,288 - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CAPITALIZATION 304,857 $ 21,202 $169,013 $1,382 $3,563 $5 ==================================================================================================================================== (1) Includes premium on preferred stock. A-11B
SOUTHERN AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997 (Continued) NOTE TO CONSOLIDATING STATEMENT OF CAPITALIZATION: Shares authorized, shares outstanding and redemption prices of the preferred stock and preferred securities are shown below:
Shares Redemption Price Series Authorized Outstanding Per Share** ------- ----------- ----------- -------------------- Cumulative Preferred Stock, $100 par or stated value-- 4.20% to 5.64% 2,165,125 855,992 $102.18 to $110.00 6.32% to 7.00% 1,304,040 504,040 $103.18 to $108.32* Undesignated 9,535,733 - - $25 par or stated value-- 6.40% to 6.80% 5,266,429 5,266,429 $26.60* to $26.90* Adjustable rate--at 1/1/98 4.67%-1993 Series 31,560 31,560 $26.25* 4.82%-1993 Series 2,000,000 2,000,000 $26.25* 5.27%-1993 Series 1,627,160 1,627,160 $27.50* 4.85%-1993 Series 2,568,517 2,568,517 $27.50* Undesignated 46,604,323 - - $1 Par Value--Undesignated 21,479,800 - - Auction rate--at 1/1/98: 4.235% $100 Stated Capital 500,000 500,000 $100 Auction rate--at 1/1/98: 4.20% $100,000 Stated Capital 200 200 $100,000 $10 Par or Stated Value-- Undesignated 9,622,011 - - Preferred Securities Redemption Price Series Authorized Outstanding Per Preferred Security** ------ ---------- ----------- ----------------------- Subsidiary Obligated Mandatorily Redeemable Preferred Securities 7.375% 3,880,000 3,880,000 $25 7.60% 8,000,000 8,000,000 $25 7.60% 7,000,000 7,000,000 $25 7.625% 1,600,000 1,600,000 $25 7.75% 1,400,000 1,400,000 $25 7.75% 7,570,000 7,570,000 $25 7.75% 9,000,000 9,000,000 $25 9% 4,000,000 4,000,000 $25
*Amount of premium in excess of par or stated value reduces in future years. **Plus accrued dividends in each case. A-12
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dolllars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) SOUTHERN ALABAMA BALANCE, December 31, 1996 $3,763,987 $ (3,310,385) $ 3,763,987 $ 1,185,128 ADD: Net income after dividends on preferred stock of subsidiary companies 971,576 (1,071,545) 971,576 375,939 - -------------------------------------------------------------------------------------------------------------------------------- 4,735,563 (4,381,930) 4,735,563 1,561,067 DEDUCT (ADD): Cash dividends paid on common stock 889,005(1) (1,010,782) 889,005(1) 339,600 Other common and preferred stock transactions, net 4,423 (3,879) 4,423 - - -------------------------------------------------------------------------------------------------------------------------------- BALANCE, December 31, 1997 $3,842,135 $ (3,367,269) $ 3,842,135 $ 1,221,467 ================================================================================================================================ (1) SOUTHERN paid quarterly dividends during 1997 of 32-1/2(cent) per share or $1.30 for the year. A-13A
CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dolllars) GEORGIA GULF MISSISSIPPI SAVANNAH BALANCE, December 31, 1996 $1,674,774 $179,179 $166,282 $109,373 ADD: Net income after dividends on preferred stock of subsidiary companies 593,996 57,610 54,010 23,847 - ----------------------------------------------------------------------------------------------------------- 2,268,770 236,789 220,292 133,220 DEDUCT (ADD): Cash dividends paid on common stock 520,000 64,600 49,400 20,500 Other common and preferred stock transactions, net 3,423 (19) 475 - - ----------------------------------------------------------------------------------------------------------- BALANCE, December 31, 1997 $1,745,347 $172,208 $170,417 $112,720 =========================================================================================================== (1)SOUTHERN paid quarterly dividends during 1997 of 32-1/2(cent)per share or $1.30 for the year. A-13B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dolllars) Energy SEGCO SEIH* MESH Solutions BALANCE, December 31, 1996 $ 19,263 $ 16,219 $ - $ (11,039) ADD: Net income after dividends on preferred stock of subsidiary companies 8,532 (16,095) 6,032 (5,376) - ------------------------------------------------------------------------------------------------------------------------------ 27,795 124 6,032 (16,415) DEDUCT (ADD): Cash dividends paid on common stock 10,650 - 6,032 - Other common and preferred stock transactions, net - - - - - ------------------------------------------------------------------------------------------------------------------------------ BALANCE, December 31, 1997 $ 17,145 $ 124 $ - $ (16,415) ============================================================================================================================== (1)SOUTHERN paid quarterly dividends during 1997 of 32-1/2(cent)per share or $1.30 for the year. A-13C
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dolllars) Southern Southern Southern Communications Information Telecom BALANCE, December 31, 1996 $ (28,769) $ (1) $ (24) ADD: Net income after dividends on preferred stock of subsidiary companies (27,012) (518) 580 - ------------------------------------------------------------------------------------------------------------------------------ (55,781) (519) 556 DEDUCT (ADD): Cash dividends paid on common stock - - - Other common and preferred stock transactions, net - - - - ------------------------------------------------------------------------------------------------------------------------------ BALANCE, December 31, 1997 $ (55,781) $ (519) $ 556 ===========================================================================================-----============================== * Preliminary. Currently under audit. 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-13D
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1) FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) SOUTHERN ALABAMA BALANCE, December 31, 1996 $ 2,067,228 $(5,067,756) $ 2,067,228 $ 1,304,791 ADD (DEDUCT): Proceeds from issuance of common stock over the par value thereof 277,756(2) - 277,756(2) - Contributions to (distributions from) capital - (961,330) - - Conversion of debt to equity - - - - Translation adjustment - 6,512 - - Unrealized gains/losses on investment valuations - - - - Other (7,270) 294 (7,270) (47) - ------------------------------------------------------------------------------------------------------------------------------- BALANCE, December 31, 1997 $ 2,337,714 $(6,022,280) $ 2,337,714 $ 1,304,744 =============================================================================================================================== (1) Includes premium on preferred stock. (2) SOUTHERN issued 16.4 million shares of common stock during 1997. A-14A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1) FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) GEORGIA GULF MISSISSIPPI SAVANNAH BALANCE, December 31, 1996 $ 2,135,257 $ 218,519 $ 179,761 8,688 ADD (DEDUCT): Proceeds from issuance of common stock over the par value thereof - - - - Contributions to (distributions from) capital (205,000) - - - Conversion of debt to equity - - - - Translation adjustment - - - - Unrealized gains/losses on investment valuations - - - - Other (126) (69) (45) - - ------------------------------------------------------------------------------------------------------------------ BALANCE, December 31, 1997 $ 1,930,131 $ 218,450 $ 179,716 8,688 ================================================================================================================== (1) Includes premium on preferred stock. (2) SOUTHERN issued 16.4 million shares of common stock during 1997. A-14B
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1) FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) SOUTHERN SEGCO SCS NUCLEAR SEIH* BALANCE, December 31, 1996 $ 32,472 $150 $ 1,859 $ 971,492 ADD (DEDUCT): Proceeds from issuance of common stock over the par value thereof - - - - Contributions to (distributions from) capital - - - 1,166,957 Conversion of debt to equity - - - - Translation adjustment - - - (6,512) Unrealized gains/losses on investment valuations - - - - Other - - (7) - - ------------------------------------------------------------------------------------------------------------------------ BALANCE, December 31, 1997 $ 32,472 $150 $ 1,852 2,131,937 ======================================================================================================================== * Preliminary. Currently under audit. 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-14C
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1) FOR THE YEAR ENDED DECEMBER 31, 1997 (Stated in Thousands of Dollars) Energy Southern Southern Southern MESH Solutions Communications Information Telecom BALANCE, December 31, 1996 $ 31,373 $ 25,658 $ 157,505 $ 5 $ 226 ADD (DEDUCT): Proceeds from issuance of common stock over the par value thereof - - - - - Contributions to (distributions from) capital (16,486) 11,184 - 1,895 2,780 Conversion of debt to equity - - - - - Translation adjustment - - - - - Unrealized gains/losses on investment valuations - - - - - Other - - - - - - --------------------------------------------------------------------------------------------------------------------- BALANCE, December 31, 1997 $ 14,887 $36,842 $ 157,505 $ 1,900 $ 3,006 ===================================================================================================================== * Preliminary. Currently under audit. 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-14D
Notes to Financial Statements at December 31, 1997 The notes to the financial statements are herein incorporated by reference as part of exhibit numbers A-1 through A-6 inclusive and are an integral part of the financial statements. A-15
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) ALABAMA ALABAMA Consolidated Eliminations CORPORATE - ------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $3,149,111 $ - $3,149,111 - ------------------------------------------------------------------------------------------------------------------------------ OPERATING EXPENSES: Operation -- Fuel 896,014 - 896,014 Purchased and interchanged, net 41,795 - 41,795 Purchase power from affiliates 95,538 - 95,538 Other 510,203 - 510,203 Maintenance 242,691 - 242,691 Depreciation and amortization 330,377 - 330,377 Taxes other than income taxes 185,062 - 185,062 Federal and state income taxes 220,228 - 220,228 - ------------------------------------------------------------------------------------------------------------------------------ Total operating expenses 2,521,908 - 2,521,908 - ------------------------------------------------------------------------------------------------------------------------------ OPERATING INCOME 627,203 627,203 OTHER INCOME (EXPENSE): Income from subsidiary 4,266 - 4,266 Interest income 37,844 (23,109) 38,517 Other, net (38,522) - (38,522) Income taxes applicable to other income 12,351 - 12,351 - ------------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 643,142 (23,109) 643,815 - ------------------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES: Interest on long-term debt 167,172 (22,436) 189,608 Allowance for debt funds used during construction (4,787) - (4,787) Interest on interim obligations 22,787 - 22,787 Amortization of debt discount, premium and expense, net 9,645 - 9,645 Other interest charges 57,800 (673) 36,037 - ------------------------------------------------------------------------------------------------------------------------------ Net interest charges 252,617 (23,109) 253,290 - ------------------------------------------------------------------------------------------------------------------------------ NET INCOME 390,525 - 390,525 DIVIDENDS ON PREFERRED STOCK 14,586 - - - ------------------------------------------------------------------------------------------------------------------------------ NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $375,939 $ - $390,525 ============================================================================================================================== A-16A
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) ALABAMA ALABAMA TRUST I TRUST II - ---------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ - $ - - ---------------------------------------------------------------------------------------------------------- - OPERATING EXPENSES: - Operation -- - Fuel - - Purchased and interchanged, net - - Purchase power from affiliates - - Other - - Maintenance - - Depreciation and amortization - - Taxes other than income taxes - - Federal and state income taxes - - - ------------------------------------------------------------------------------------------------------------ Total operating expenses - - - ------------------------------------------------------------------------------------------------------------ OPERATING INCOME OTHER INCOME (EXPENSE): Income from subsidiary - - Interest income 7,375 15,061 Other, net - - Income taxes applicable to other income - - - ------------------------------------------------------------------------------------------------------------ INCOME BEFORE INTEREST CHARGES 7,375 15,061 - ------------------------------------------------------------------------------------------------------------ INTEREST CHARGES: Interest on long-term debt - - Allowance for debt funds used during construction - - Interest on interim obligations - - Amortization of debt discount, premium and expense, net - - Other interest charges 7,375 15,061 - ------------------------------------------------------------------------------------------------------------ Net interest charges 7,375 15,061 - ------------------------------------------------------------------------------------------------------------ NET INCOME - - DIVIDENDS ON PREFERRED STOCK - ------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ - $ - ============================================================================================================= A-16B
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) - ----------------------------------------------------------------------------------------------------------------------------------- ALABAMA ALABAMA Consolidated Eliminations CORPORATE - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 390,525 $ - $ 390,525 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 394,572 - 394,572 Deferred income taxes, net (12,429) - (12,429) Other, net (11,353) - (11,353) Change in current assets and liabilities - Receivables, net (30,268) - (30,268) Inventories 13,709 - 13,709 Payables (9,745) - (9,745) Taxes accrued 6,191 - 6,191 Energy cost recovery, retail 7,108 - 7,108 Other 7,127 - 7,127 - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES 755,437 - 755,437 - ----------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Gross property additions (451,167) - (451,167) Other (51,791) 212,372 (57,977) - --------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES (502,958) 212,372 (509,144) - --------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Proceeds-- Preferred securities 200,000 (6,186) - Other long term debt 258,800 (206,186) 464,986 Retirements-- Preferred stock (184,888) - (184,888) First mortgage bonds (74,951) - (74,951) Other long term debt (951) - (951) Interim obligations, net (57,971) - (57,971) Payment of common stock dividends (339,600) - (339,600) Payment of preferred stock dividends (22,524) - (22,524) Other-- (16,024) - (16,024) - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR FINANCINGS (238,109) (212,372) (231,923) - ---------------------------------------------------------------------------------------------------------------------------------- NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 14,370 - 14,370 CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 9,587 - 9,587 - --------------------------------------------------------------------------------------------------------------------------------- CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 23,957 $ - $ 23,957 ================================================================================================================================== A-17A
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) ALABAMA ALABAMA TRUST I TRUST II - --------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ - $ - Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization - - Deferred income taxes, net - - Other, net - - Change in current assets and liabilities - Receivables, net - - Inventories - - Payables - - Taxes accrued - - Energy cost recovery, retail - - Other - - - --------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES - - - --------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Gross property additions - - Other - (206,186) - --------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES - - --------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Proceeds-- Preferred securities - 206,186 Other long term debt - - Retirements-- Preferred stock - - First mortgage bonds - - Other long term debt - - Interim obligations, net - - Payment of common stock dividends - - Payment of preferred stock dividends - - Other-- - - - --------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR FINANCINGS - 206,186 - --------------------------------------------------------------------------------------------------------------------------- NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS - 206,186 CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD - - - -------------------------------------------------------------------------------------------------------------------------- CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ - $ 206,186 =========================================================================================================================== A17B
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) ALABAMA ALABAMA Consolidated Eliminations CORPORATE - ------------------------------------------------------------------------------------------------------------------------- UTILITY PLANT $7,100,638 $ - $7,100,638 - ------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS 240,213 (315,372) 249,399 - ------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents 23,957 - 23,957 Receivables - Customer accounts receivable 368,255 - 368,255 Affiliated companies 50,353 - 50,353 Other accounts receivable 28,921 - 28,921 Accumulated provision for uncollectible accts (2,272) - (2,272) Fossil fuel stock, at average cost 74,186 - 74,186 Materials and supplies, at average cost 161,601 - 161,601 Prepayments 20,453 - 20,453 Vacation pay deferred 28,783 - 28,783 - ------------------------------------------------------------------------------------------------------------------------- TOTAL 754,237 - 754,237 - ----------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES Deferred charges related to income taxes 384,549 - 384,549 Debt expense, being amortized 7,276 - 7,276 Premium on reacquired debt, being amortized 81,417 - 81,417 Prepaid pension Costs 130,733 - 130,733 Department of Energy assessments 34,416 - 34,416 Miscellaneous 79,388 - 79,388 - ----------------------------------------------------------------------------------------------------------------------- TOTAL 717,779 - 717,779 - ----------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $8,812,867 $(315,372) $ 8,822,053 ======================================================================================================================= A-18A
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) ALABAMA ALABAMA TRUST I TRUST II - ---------------------------------------------------------------------------------------------------------------------------------- UTILITY PLANT $ - $ - - ---------------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS 100,000 206,186 - ---------------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents - - Receivables - Customer accounts receivable - - Affiliated companies - - Other accounts receivable - - Accumulated provision for uncollectible accts - - Fossil fuel stock, at average cost - - Materials and supplies, at average cost - - Prepayments - - Vacation pay deferred - - - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL - - - ---------------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES Deferred charges related to income taxes - - Debt expense, being amortized - - Premium on reacquired debt, being amortized - - Prepaid pension Costs - - Department of Energy assessments - - Miscellaneous - - - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL - - - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 100,000 $ 206,186 ================================================================================================================================== A-18B
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) ALABAMA ALABAMA Consolidated Eliminations CORPORATE - ----------------------------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Stock Equity $2,750,569 $ - $ 2,750,569 Preferred Stock 255,512 - 255,512 Company obligated mandatorily redeemable preferred securities 297,000 (9,186) - Long-term debt 2,473,202 (306,186) 2,779,388 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 5,776,283 (315,372) 5,785,469 - ----------------------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Long-term debt due within one year 75,336 - 75,336 Commercial paper 306,882 - 306,882 Accounts payable - Affiliated companies 79,822 - 79,822 Other 159,146 - 159,146 Customer deposits 34,968 - 34,968 Taxes accrued 36,486 - 36,486 Interest accrued 50,722 - 50,722 Vacation pay accrued 28,783 - 28,783 Miscellaneous 103,602 - 103,602 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 875,747 - 875,747 - ----------------------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 1,192,265 - 1,192,265 Accumulated deferred investment tax credits 282,873 - 282,873 Prepaid capacity revenues, net 109,982 - 109,982 Department of Energy assessments 30,592 - 30,592 Deferred credits related to income taxes 327,328 - 327,328 Natural disaster reserve 22,416 - 22,416 Miscellaneous 195,381 - 195,381 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 2,160,837 - 2,160,837 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $8,812,867 $(315,372) $8,822,053 =================================================================================================================================== A-19A
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) ALABAMA ALABAMA TRUST I TRUST II - ---------------------------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Stock Equity $ - $ - Preferred Stock - - Company obligated mandatorily redeemable preferred securities 100,000 206,186 Long-term debt - - - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL 100,000 206,186 - ---------------------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Long-term debt due within one year - - Commercial paper - - Accounts payable - Affiliated companies - - Other - - Customer deposits - - Taxes accrued - - Interest accrued - - Vacation pay accrued - - Miscellaneous - - - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL - - - ---------------------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes - - Accumulated deferred investment tax credits - - Prepaid capacity revenues, net - - Department of Energy assessments - - Deferred credits related to income taxes - - Natural disaster reserve - - Miscellaneous - - - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL - - - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $ 100,000 $ 206,186 ================================================================================================================================== A-19B
Notes to ALABAMA's Consolidated Financial Statements (A) Represents equity in earnings of SEGCO, a non-consolidated subsidiary in which ALABAMA has 50% ownership, which is accounted for on the equity basis. See pages A-2 through A-16 for SEGCO's financial statements consolidated for SOUTHERN. (B) Includes $984,000 equity in earnings of Alabama Property Company, a non-consolidated subsidiary, which is accounted for on the equity basis. See pages A-24 through A-26 for Alabama Property Company's financial statements. (C) Represents ALABAMA's investment in SEGCO. (D) Includes $9,400,601 of investments in Alabama Property Company. A-20 ALABAMA TRUST I STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, ALABAMA) (Unaudited) (in thousands) Interest Revenue $7,375 Distribution Expense 7,375 ------ NET OF REVENUES AND EXPENSES $ 0 ====== ALABAMA TRUST I STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, ALABAMA) (Unaudited) (in thousands) INVESTING ACTIVITIES: $0 FINANCING ACTIVITIES: 0 NET INCREASE ( DECREASE) IN CASH 0 CASH AT BEGINNING OF PERIOD 0 ------ CASH AT END OF PERIOD $ 0 ====== A-21 ALABAMA TRUST I BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, ALABAMA) (Unaudited) (in thousands) ASSETS Investment in ALABAMA $100,000 -------- TOTAL ASSETS $100,000 ======== LIABILITIES Common securities $ 3,000 Preferred securities 97,000 -------- TOTAL LIABILITIES $100,000 ======== A-22 ALABAMA TRUST II STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, ALABAMA) (Unaudited) (in thousands) Interest Revenue $15,061 Distribution Expense 15,061 NET OF REVENUES AND EXPENSES $ 0 ======= ALABAMA TRUST II STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, ALABAMA) (Unaudited) (in thousands) INVESTING ACTIVITIES: Investment in ALABAMA Junior Subordinated Notes $206,186 -------- FINANCING ACTIVITIES: Proceeds from issuance of 7.60% Trust Common Securities 6,186 Proceeds from issuance of 7.60% Trust Preferred Securities 200,000 -------- NET INCREASE ( DECREASE) IN CASH 0 CASH AT BEGINNING OF PERIOD 0 -------- CASH AT END OF PERIOD $ 0 ======== A-23 ALABAMA TRUST II BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, ALABAMA) (Unaudited) (in thousands) ASSETS Investment in ALABAMA $206,186 TOTAL ASSETS $206,186 -------- LIABILITIES Common securities $ 6,186 Preferred securities 200,000 -------- TOTAL LIABILITIES $206,186 ======== A-24 ALABAMA PROPERTY COMPANY STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Unaudited; Not Consolidated in Parent, ALABAMA) REVENUES: Sales of recreational lots $1,982,900 Rentals 117,738 ---------- Total Revenues 2,110,638 ---------- COSTS AND EXPENSES: Cost of recreational lot sales 300,935 Selling, administrative and general expenses 546,815 ---------- Total costs and expenses 847,750 ---------- OPERATING INCOME 1,252,888 OTHER INCOME (EXPENSE): Interest income 197,230 INCOME BEFORE PROVISION FOR INCOME TAXES 1,450,118 PROVISION FOR INCOME TAXES 466,118 ---------- NET INCOME $ 984,000 ========== ALABAMA PROPERTY COMPANY STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1997 (Unaudited; Not Consolidated in Parent, ALABAMA) RETAINED EARNINGS AT DECEMBER 31, 1996 $7,966,601 Net income 984,000 ---------- RETAINED EARNINGS AT DECEMBER 31, 1997 $8,950,661 ========== A-25 ALABAMA PROPERTY COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Unaudited; Not Consolidated in Parent, ALABAMA) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 984,000 ---------- Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and liabilities: (Increase) decrease in receivables (32,537) Increase (decrease) in accounts payable 590,205 Increase (decrease) in taxes accrued (816,376) ---------- NET CASH PROVIDED FROM OPERATING ACTIVITIES (258,708) ---------- INVESTING AND FINANCING ACTIVITIES: Gross property additions, net (1,763,040) NET CHANGE IN CASH AND CASH EQUIVALENTS (1,037,748) CASH AND CASH EQUIVALENTS, Beginning of year 4,088,787 CASH AND CASH EQUIVALENTS, End of year $3,051,039 ========== A-26 ALABAMA PROPERTY COMPANY BALANCE SHEET AT DECEMBER 31, 1996 (Unaudited; Not Consolidated in Parent, ALABAMA) ASSETS CURRENT ASSETS: Cash $ 150,490 Temporary cash investments 2,900,549 Accounts receivable Other 2,500 Associated Companies 38,586 ---------- Total current assets 3,092,125 PROPERTY AND MINERAL RIGHTS HELD FOR FUTURE DEVELOPMENT 6,391,389 ---------- Total Assets $9,483,514 ========== LIABILITIES AND CAPITALIZATION CURRENT LIABILITIES: Payable to parent company $ 653,128 Accrued income taxes (591,725) Other accrued taxes 21,510 ---------- Total current liabilities 82,913 SHAREHOLDER'S INVESTMENT: Common stock, $150 par value; 1,000 shares authorized, issued and outstanding 150,000 Additional paid-in capital 300,000 Retained earnings 8,950,601 ----------- Total shareholder's investment 9,400,601 ---------- Total liabilities and capitalization $9,483,514 ========== A-27
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE - --------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $4,385,717 $ (838) $4,385,717 - --------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 857,269 - 857,269 Purchased and interchanged, net 143,409 - 143,409 Purchase power from affiliates 177,240 - 177,240 Other 702,159 (838) 702,950 Maintenance 317,199 - 317,199 Depreciation and amortization 572,640 - 572,592 Amortization of deferred Plant Vogtle expenses, net 120,577 - 120,577 Taxes other than income taxes 207,192 - 206,853 Federal and state income taxes 426,918 - 426,743 - --------------------------------------------------------------------------------------------------------------------------- Total operating expenses 3,524,603 (838) 3,524,832 - --------------------------------------------------------------------------------------------------------------------------- OPERATING INCOME 861,114 - 860,885 OTHER INCOME (EXPENSE): Allowance for equity funds used during construction 6,012 - 6,012 Interest income 10,581 (49,417) 10,188 Other, net (31,568) - (31,498) Income taxes applicable to other income 31,763 - 31,902 - --------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 877,902 (49,417) 877,489 - --------------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES: Interest on long-term debt 194,344 (49,417) 243,179 Allowance for debt funds used during construction (8,962) - (8,962) Amortization of debt discount, premium and expense, net 14,179 - 14,179 Other interest charges 65,418 - 18,049 - -------------------------------------------------------------------------------------------------------------------------- Net interest charges 264,979 (49,417) 266,445 - -------------------------------------------------------------------------------------------------------------------------- NET INCOME 612,923 - 611,044 DIVIDENDS ON PREFERRED STOCK 18,927 - 18,927 - -------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 593,996 $ - $592,117 ========================================================================================================================== A-28A
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA PIEDMONT CAPITAL TRUST I - ------------------------------------------------------------------------------------------------------------------------------ TOTAL OPERATING REVENUES $ 838 $ - $ - - ----------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel - - - Purchased and interchanged, net - - - Purchase power from affiliates - - - Other - 47 - Maintenance - - - Depreciation and amortization 48 - - Amortization of deferred Plant Vogtle expenses, net - - - Taxes other than income taxes 339 - - Federal and state income taxes 175 - - - ----------------------------------------------------------------------------------------------------------------------------- Total operating expenses 562 47 - - ----------------------------------------------------------------------------------------------------------------------------- OPERATING INCOME 276 (47) - OTHER INCOME (EXPENSE): Allowance for equity funds used during construction Interest income 976 9,279 17,977 Other, net (70) Income taxes applicable to other income (139) - ----------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 1,043 9,232 17,977 - ----------------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES: Interest on long-term debt 582 - - Allowance for debt funds used during construction - - - Amortization of debt discount, premium and expense, net - - - Other interest charges - 9,000 17,438 - ----------------------------------------------------------------------------------------------------------------------------- Net interest charges 582 9,000 17,438 - ---------------------------------------------------------------------------------------------------------------------------- NET INCOME 461 232 539 DIVIDENDS ON PREFERRED STOCK - - - - ----------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 461 $ 232 $ 539 ============================================================================================================================ A-28B
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA TRUST II TRUST III - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ - $ - - ---------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel - - Purchased and interchanged, net - - Purchase power from affiliates - - Other - - Maintenance - - Depreciation and amortization - - Amortization of deferred Plant Vogtle expenses, net - - Taxes other than income taxes - - Federal and state income taxes - - - ---------------------------------------------------------------------------------------------------------------------------------- Total operating expenses - - - ---------------------------------------------------------------------------------------------------------------------------------- OPERATING INCOME - - OTHER INCOME (EXPENSE): Allowance for equity funds used during construction Interest income 13,178 8,400 Other, net Income taxes applicable to other income - ---------------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 13,178 8,400 - ---------------------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES: Interest on long-term debt - - Allowance for debt funds used during construction - - Amortization of debt discount, premium and expense, net - - Other interest charges 12,783 8,148 - ---------------------------------------------------------------------------------------------------------------------------------- Net interest charges 12,783 8,148 - ---------------------------------------------------------------------------------------------------------------------------------- NET INCOME 395 252 DIVIDENDS ON PREFERRED STOCK - - - ---------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 395 $ 252 ================================================================================================================================== A-28C
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE - -------------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $612,923 $ - $ 611,044 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 674,286 - 674,180 Deferred income taxes, net (21,425) - (21,545) Allowance for equity funds used during construction (6,012) - (6,012) Amortization of deferred Plant Vogtle costs 120,577 - 120,577 Other, net 27,200 - 27,200 Change in current assets and liabilities - Receivables, net 13,387 1,497 13,386 Inventories 39,748 - 39,748 Payables (10,007) (1,497) (8,588) Taxes accrued (3,596) - (3,704) Other (75,253) - (75,253) - -------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES 1,371,828 - 1,371,033 - -------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Property additions (475,921) - (475,921) Sales of property - - Other investing activities 16,223 385,987 5,751 - -------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES (459,698) 385,987 (470,170) - -------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Proceeds-- Preferred securities 364,250 - - First mortgage bonds - - - Other long term debt 284,700 (375,560) 660,215 Retirements-- Preferred stock (356,392) - (356,392) First mortgage bonds (60,258) - (60,258) Other long term debt (284,700) - (284,700) Interim obligations, net (64,266) - (64,266) Special deposits - redemption funds 44,454 - 44,454 Capital distribution to parent company (205,000) - (205,000) Payment of common stock dividends (520,000) - (520,000) Payment of preferred stock dividends (26,917) - (26,917) Other-- (20,024) (10,427) (20,024) - ------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR FINANCINGS (844,153) (385,987) (832,888) - ------------------------------------------------------------------------------------------------------------------------------- NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 67,977 - 67,975 CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 15,356 - 15,313 - -------------------------------------------------------------------------------------------------------------------------------- CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $83,333 $ - $83,288 ================================================================================================================================ A-29A
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA PIEDMONT CAPITAL TRUST I - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING ACTIVITIES Net Income $ 461 $ 232 $ 539 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 106 - - Deferred income taxes, net 120 - - Allowance for equity funds used during construction - - - Amortization of deferred Plant Vogtle costs - - - Other, net - - - Change in current assets and liabilities - - - Receivables, net - (232) (539) Inventories - - - Payables - - - Taxes accrued 108 - - Other - - - - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES 795 - - - ---------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Property additions - - - Sales of property - - - Other investing activities - - - - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES - - - - ---------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Proceeds-- Preferred securities - - - First mortgage bonds - - - Other long term debt 45 - - Retirements-- Preferred stock - - - First mortgage bonds - - - Other long term debt - - - Interim obligations, net - - - Special deposits - redemption funds - - - Capital distribution to parent company - - - Payment of common stock dividends - - - Payment of preferred stock dividends - - - Other-- (838) - - - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR FINANCINGS (793) - - - ---------------------------------------------------------------------------------------------------------------------------------- NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 2 - - CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 43 - - ================================================================================================================================== CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 45 $ - $ - ================================================================================================================================== A-29B
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA TRUST II TRUST III - ---------------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 395 $ 252 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization - - Deferred income taxes, net - - Allowance for equity funds used during construction - - Amortization of deferred Plant Vogtle costs - - Other, net - - Change in current assets and liabilities - Receivables, net (432) (293) Inventories - - Payables 37 41 Taxes accrued - - Other - - - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES - - - ---------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Property additions - - Sales of property - - Other investing activities (180,412) (195,103) - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR INVESTING ACTIVITIES (180,412) (195,103) - ---------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Proceeds-- Preferred securities 175,000 189,250 First mortgage bonds - - Other long term debt - - Retirements-- Preferred stock - - First mortgage bonds - - Other long term debt - - Interim obligations, net - - Special deposits - redemption funds - - Capital distribution to parent company - - Payment of common stock dividends - - Payment of preferred stock dividends - - Other-- 5,412 5,853 - ---------------------------------------------------------------------------------------------------------------------------------- NET CASH USED FOR FINANCINGS 180,412 195,103 - ---------------------------------------------------------------------------------------------------------------------------------- NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS - - CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD - - ================================================================================================================================== CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ - $ - ================================================================================================================================== A-29C
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE - ------------------------------------------------------------------------------------------------------------------------------- UTILITY PLANT $10,103,900 $ - $10,084,770 - ------------------------------------------------------------------------------------------------------------------------------ OTHER PROPERTY AND INVESTMENTS 307,297 (754,935) 349,461 - ------------------------------------------------------------------------------------------------------------------------------ CURRENT ASSETS Cash and cash equivalents 83,333 - 83,288 Receivables - Customer accounts receivable 385,844 - 385,844 Affiliated companies 20,333 - 20,333 Other accounts receivable 110,278 (2,190) 110,278 Accumulated provision for uncollectible accts (3,000) - (3,000) Fossil fuel stock, at average cost 96,067 - 96,067 Materials and supplies, at average cost 240,387 - 240,387 Prepayments 27,503 - 27,503 Vacation pay deferred 40,996 - 40,996 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL 1,001,741 (2,190) 1,001,696 - ------------------------------------------------------------------------------------------------------------------------------ DEFERRED CHARGES Deferred charges related to income taxes 688,472 - 688,472 Deferred Plant Vogtle costs 50,412 - 50,412 Prepaid pension Costs 67,777 - 67,777 Miscellaneous 354,129 - 354,128 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL 1,160,790 - 1,160,789 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $12,573,728 $(757,125) $12,596,716 ============================================================================================================================== A-30A
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA PIEDMONT CAPITAL TRUST I - -------------------------------------------------------------------------------------------------------------------- UTILITY PLANT $19,130 $ - $ - - ------------------------------------------------------------------------------------------------------------------ OTHER PROPERTY AND INVESTMENTS 2,197 103,100 231,959 - ------------------------------------------------------------------------------------------------------------------ CURRENT ASSETS Cash and cash equivalents 45 - - Receivables - Customer accounts receivable - - - Affiliated companies - - - Other accounts receivable - 792 673 Accumulated provision for uncollectible accts - - - Fossil fuel stock, at average cost - - - Materials and supplies, at average cost - - - Prepayments - - - Vacation pay deferred - - - ------------------------------------------------------------------------------------------------------------------ TOTAL 45 792 673 - ------------------------------------------------------------------------------------------------------------------ DEFERRED CHARGES Deferred charges related to income taxes - - - Deferred Plant Vogtle costs - - - Prepaid pension Costs - - - Miscellaneous 1 - - - ------------------------------------------------------------------------------------------------------------------ TOTAL 1 - - - ------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $21,373 $ 103,892 $232,632 ================================================================================================================== A-30B
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA TRUST II TRUST III - --------------------------------------------------------------------------------------------------------------------------- UTILITY PLANT $ - $ - - --------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS 180,412 195,103 - --------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents - - Receivables - Customer accounts receivable - - Affiliated companies - - Other accounts receivable 432 293 Accumulated provision for uncollectible accts - - Fossil fuel stock, at average cost - - Materials and supplies, at average cost - - Prepayments - - Vacation pay deferred - - - --------------------------------------------------------------------------------------------------------------------------- TOTAL 432 293 - --------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES Deferred charges related to income taxes - - Deferred Plant Vogtle costs - - Prepaid pension Costs - - Miscellaneous - - - --------------------------------------------------------------------------------------------------------------------------- TOTAL - - - --------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 180,844 $ 195,396 =========================================================================================================================== A-30C
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE - ------------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Stock Equity $4,019,728 $ (31,706) $ 4,019,729 Preferred Stock 157,247 - 157,247 Company obligated mandatorily redeemable preferred securities 689,250 - - Long-term debt 2,982,835 (723,229) 3,693,420 - ------------------------------------------------------------------------------------------------------------------ TOTAL 7,849,060 (754,935) 7,870,396 - ------------------------------------------------------------------------------------------------------------------ CURRENT LIABILITIES Securities due within one year 220,855 - 220,855 Notes payable to banks 142,300 - 142,300 Commercial paper 223,930 - 223,930 Accounts payable - - - - Affiliated companies 71,373 - 71,373 Other 261,293 - 261,293 Customer deposits 68,618 - 68,618 Taxes accrued 116,021 - 115,402 Interest accrued 72,437 (2,190) 74,549 Vacation pay accrued 32,285 - 32,285 Miscellaneous 73,398 - 73,398 - ------------------------------------------------------------------------------------------------------------------ TOTAL 1,282,510 (2,190) 1,284,003 - ------------------------------------------------------------------------------------------------------------------ DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 2,417,547 - 2,417,706 Accumulated deferred investment tax credits 397,202 - 397,202 Deferred credits related to income taxes 297,560 - 297,560 Miscellaneous 329,849 - 329,849 - ------------------------------------------------------------------------------------------------------------------ TOTAL 3,442,158 - 3,442,317 - ------------------------------------------------------------------------------------------------------------------ TOTAL CAPITALIZATION AND LIABILITIES $12,573,728 $(757,125) $ 12,596,716 =================================================================================================================== A-31A
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA PIEDMONT CAPITAL TRUST I - ----------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Stock Equity $ 8,269 $ 3,892 $ 7,632 Preferred Stock - - - Company obligated mandatorily redeemable preferred securities - 100,000 225,000 Long-term debt 12,644 - - - -------------------------------------------------------------------------------------------------------------- TOTAL 20,913 103,892 232,632 - -------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Securities due within one year - - - Notes payable to banks - - - Commercial paper - - - Accounts payable - - - - Affiliated companies - - - Other - - - Customer deposits - - - Taxes accrued 619 - - Interest accrued - - - Vacation pay accrued - - - Miscellaneous - - - - ---------------------------------------------------------------------------------------------------------------- TOTAL 619 - - - ---------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes (159) - - Accumulated deferred investment tax credits - - - Deferred credits related to income taxes - - - Miscellaneous - - - - ---------------------------------------------------------------------------------------------------------------- TOTAL (159) - - - ---------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $ 21,373 $ 103,892 $ 232,632 ================================================================================================================ A-31B
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GEORGIA GEORGIA TRUST II TRUST III - --------------------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Stock Equity $ 5,807 $ 6,105 Preferred Stock - - Company obligated mandatorily redeemable preferred securities 175,000 189,250 Long-term debt - - - --------------------------------------------------------------------------------------------------------------------------- TOTAL 180,807 195,355 - --------------------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Securities due within one year - - Notes payable to banks - - Commercial paper - - Accounts payable - - - Affiliated companies - - Other - - Customer deposits - - Taxes accrued - - Interest accrued 37 41 Vacation pay accrued - - Miscellaneous - - - --------------------------------------------------------------------------------------------------------------------------- TOTAL 37 41 - --------------------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes - - Accumulated deferred investment tax credits - - Deferred credits related to income taxes - - Miscellaneous - - - --------------------------------------------------------------------------------------------------------------------------- TOTAL - - - --------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $ 180,844 $ 195,396 =========================================================================================================================== A-31C
Notes to GEORGIA's Consolidated Financial Statements (A) Includes $4,266,000 equity in earnings for SEGCO, a non-consolidated subsidiary in which GEORGIA has 50% ownership. SEGCO is accounted for on the equity basis. See pages A-2 through A-14 for SEGCO's financial statements consolidated for SOUTHERN. (B) Includes $24,973,000 of investments in SEGCO. A-32 PIEDMONT STATEMENT OF INCOME AND EARNINGS RETAINED IN THE BUSINESS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) REVENUES: Rent $838 Other (Interest) 976 $1,814 ----- EXPENSES: Interest 582 Taxes 653 Depreciation 105 Miscellaneous 13 1,353 ----- ------- NET INCOME 461 ======= EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 1,391 ------- EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $1,852 ====== A-33 PIEDMONT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) OPERATING ACTIVITIES: Net income $461 Deferred income taxes 120 Depreciation 106 Change in current liabilities 108 Other, net - $795 ------ FINANCING ACTIVITIES: Increase in advances from parent 45 Decrease in capital contributions (838) (793) ---- ----- NET CHANGE IN CASH $ 2 ====== A-34 PIEDMONT BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) ASSETS INVESTMENTS: Plant-in-service $19,130 Non-utility property 2,197 $21,327 --------- CURRENT ASSETS: Cash 45 MISCELLANEOUS DEFERRED DEBITS 1 -------- TOTAL ASSETS $21,373 ======= CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock, $1 par (1,000,000 shares authorized, 100,000 shares issued) $ 100 Other paid-in capital 6,317 Retained earnings 1,852 $ 8,269 ----- Long-term debt - Advances from parent company 12,644 ------ Total capitalization 20,913 CURRENT LIABILITIES: Federal and state income taxes accrued 619 619 DEFERRED CREDITS: Accumulated deferred income taxes (159) ------- TOTAL CAPITALIZATION AND LIABILITIES $21,373 ======= A-35 GEORGIA CAPITAL STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) Interest Income $9,279 Less: Preferred Distributions 9,000 Other Expenses 47 ------ NET INCOME 232 EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 560 ------- EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 792 ====== GEORGIA CAPITAL STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) OPERATING ACTIVITIES: Net income $232 Change in current assets and current liabilities (232) ------ NET CHANGE IN CASH $ 0 ====== A-36 GEORGIA CAPITAL BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) ASSETS ------ INVESTMENTS $103,100 CURRENT ASSETS: Interest receivable 792 --------- TOTAL ASSETS $103,892 ======== CAPITALIZATION -------------- CAPITALIZATION: Miscellaneous paid-in capital $3,100 Retained earnings 792 $ 3,892 -------- Preferred securities 100,000 -------- Total Capitalization 103,892 -------- TOTAL CAPITALIZATION $103,892 ======== A-37 GEORGIA TRUST I STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) Interest Income $17,977 Less: Preferred Distributions 17,438 NET INCOME 539 EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 134 ------- EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 673 ======= GEORGIA TRUST I STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) OPERATING ACTIVITIES: Net income $ 539 Change in current assets and current liabilities (539) ------- NET CHANGE IN CASH $ 0 ======= A-38 GEORGIA TRUST I BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) ASSETS ------ INVESTMENTS $231,959 CURRENT ASSETS: Interest receivable 673 -------- TOTAL ASSETS $232,632 ======== CAPITALIZATION -------------- CAPITALIZATION: Miscellaneous paid-in capital $6,959 Retained earnings 673 $ 7,632 -------- Preferred securities 225,000 -------- TOTAL CAPITALIZATION $232,632 ========= A-39 GEORGIA TRUST II STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) Interest Income $13,178 Less: Preferred Distributions 12,783 ------- NET INCOME 395 EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 0 ------- EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 395 ======= GEORGIA TRUST II STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) OPERATING ACTIVITIES: Net income $ 395 Change in current assets and current liabilities (395) ------- - INVESTING ACTIVITIES: Junior subordinated notes issued to parent (180,412) FINANCING ACTIVITIES: Preferred securities 175,000 Advances from parent 5,412 180,412 -------- -------- NET CHANGE IN CASH $ 0 ======== A-40 GEORGIA TRUST II BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) ASSETS ----- INVESTMENTS $180,412 CURRENT ASSETS: Interest receivable 432 -------- TOTAL ASSETS $180,844 ======== CAPITALIZATION AND LIABILITIES CAPITALIZATION: Miscellaneous paid-in capital $5,412 Retained earnings 395 $ 5,807 -------- Preferred securities 175,000 -------- TOTAL CAPITALIZATION 180,807 -------- CURRENT LIABILITIES: Interest payable 37 -------- TOTAL CAPITALIZATION AND LIABILITIES $180,844 ======== A-41 GEORGIA TRUST III STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) Interest Income $8,400 Less: Preferred Distributions 8,148 ------ NET INCOME 252 EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 0 ------ EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 252 ====== GEORGIA TRUST III STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) OPERATING ACTIVITIES: Net income $ 252 Change in current assets and current liabilities (252) --------- - INVESTING ACTIVITIES: Junior subordinated notes issued to parent 95,103) FINANCING ACTIVITIES: Preferred securities 189,250 Advances from parent 5,853 195,103 -------- -------- NET CHANGE IN CASH $ 0 ======== A-42 GEORGIA TRUST III BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, GEORGIA) (Unaudited) (in thousands) ASSETS ------ INVESTMENTS $195,103 CURRENT ASSETS: Interest receivable 293 -------- TOTAL ASSETS $195,396 ======== CAPITALIZATION AND LIABILITIES ------------------------------ CAPITALIZATION: Miscellaneous paid-in capital $5,853 Retained earnings 252 $ 6,105 -------- Preferred securities 189,250 -------- TOTAL CAPITALIZATION 195,355 -------- CURRENT LIABILITIES: Interest payable 41 -------- TOTAL CAPITALIZATION AND LIABILITIES $195,396 ======== A-43
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ 625,856 $ - $625,856 $ - - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 180,843 - 180,843 - Purchased power from non-affiliates 11,938 - 11,938 - Purchased power from affiliates 24,955 - 24,955 - Other 126,266 - 126,266 - Maintenance 47,988 - 47,988 - Depreciation and amortization 57,874 - 57,874 - Taxes other than income taxes 51,775 - 51,775 - Federal and state income taxes 35,034 - 35,034 - - ----------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 536,673 - 536,673 - - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING INCOME 89,183 89,183 OTHER INCOME (EXPENSE): Interest income 1,203 (2,891) 1,203 2,891 Other, net (992) - (992) - Income taxes applicable to other income 1,584 - 1,584 - - ----------------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 90,978 (2,891) 90,978 2,891 - ----------------------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES: Interest on long-term debt 21,699 (2,891) 24,590 - Other interest charges 2,076 - 2,076 - Interest on notes payable 891 - 891 - Amortization of debt discount, premium and expense, net 2,281 - 2,281 - Distributions on preferred securities of subsidiary trust 2,804 - - 2,804 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest charges 29,751 (2,891) 29,838 2,804 - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME 61,227 - 61,140 87 DIVIDENDS ON PREFERRED STOCK 3,617 - 3,617 - - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 57,610 $ - $ 57,523 $ 87 =================================================================================================================================== A-44
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) - ----------------------------------------------------------------------------------------------------------------------------------- GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 61,227 - $ 61,140 $ 87 Adjustments to reconcile Consolidated net income to net cash provided by operating activities - Depreciation and amortization 72,860 - 72,860 - Deferred income taxes, net (7,047) - (7,047) - Accumulated provision for property damage 2,572 - 2,572 - Deferred costs of 1995 coal contract renegotiation 1,246 - 1,246 - Other, net (1,413) - (1,413) - Change in current assets and liabilities - Receivables, net (1,111) 87 (1,111) (87) Inventories 10,674 - 10,674 - Payables 1,398 (87) 1,485 - Taxes accrued 6,123 - 6,123 - Current cost of 1995 coal contract renegotiation 14,778 - 14,778 - Other 4,240 - 4,240 - - ----------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED FROM OPERATING ACTIVITIES 165,547 - 165,547 - - ----------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Gross property additions (54,289) - (54,289) - Other 509 42,474 (728) (41,237) - ------------------------------------------------------------------------------------------------------------------------------------ NET CASH USED FOR INVESTING ACTIVITIES (53,780) 42,474 (55,017) (41,237) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Proceeds-- Common securities - (1,237) - 1,237 Preferred securities 40,000 - - 40,000 Pollution control bonds 40,930 - 40,930 - Other long-term debt 20,000 (41,237) 61,237 - Retirements-- Preferred stock (75,911) - (75,911) - First mortgage bonds (25,000) - (25,000) - Pollution control bonds (40,930) - (40,930) - Other long-term debt (15,972) - (15,972) - Notes payable, net 22,000 - 22,000 - Payment of common stock dividends (64,600) - (64,600) - Payment of preferred stock dividends (5,370) - (5,370) - Miscellaneous (3,014) - (3,014) - - ------------------------------------------------------------------------------------------------------------------------------------ NET CASH USED FOR FINANCINGS (107,867) (42,474) (106,630) 41,237 - ------------------------------------------------------------------------------------------------------------------------------------ NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 3,900 - 3,900 - CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 807 - 807 - - ------------------------------------------------------------------------------------------------------------------------------------ CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 4,707 $ - $ 4,707 $ - =================================================================================================================================== A-45
GULF POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I - ----------------------------------------------------------------------------------------------------------------------------------- UTILITY PLANT $1,055,507 $ - $1,055,507 $ - - ----------------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS 622 (42,474) 1,859 41,237 - ----------------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents 4,707 - 4,707 - Receivables - Customer accounts receivable 63,691 - 63,691 - Other accounts and notes receivable 2,744 (87) 2,744 87 Affiliated companies 7,329 - 7,329 - Accumulated provision for uncollectible accts (796) - (796) - Fossil fuel stock, at average cost 19,296 - 19,296 - Materials and supplies, at average cost 28,634 - 28,634 - Current portion of accumulated deferred income taxes 4,456 - 4,456 - Regulatory clauses under recovery 1,675 - 1,675 - Prepayments 2,171 - 2,171 - Vacation pay deferred 4,057 - 4,057 - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 137,964 (87) 137,964 87 - ----------------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES Debt expense and loss, being amortized 22,941 - 22,941 - Deferred charges related to income taxes 26,586 - 26,586 - Prepaid pension costs 10,385 - 10,385 - Deferred storm charges 703 - 703 - Miscellaneous 10,904 - 10,904 - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 71,519 - 71,519 - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $1,265,612 $(42,561) $1,266,849 $ 41,324 =================================================================================================================================== A-46
GULF POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I - ----------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Stock Equity $428,718 $ (1,237) $ 428,631 $ 1,324 Preferred Stock 13,691 - 13,691 - Company obligated mandatorily redeemable preferred securities 40,000 - - 40,000 Long-term debt 296,993 (41,237) 338,230 - - ----------------------------------------------------------------------------------------------------------------- TOTAL 779,402 (42,474) 780,552 41,324 - ----------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Long-term debt due within one year 53,327 - 53,327 - Notes payable 47,000 - 47,000 - Accounts payable Affiliated companies 14,334 - 14,334 - Other 20,205 - 20,205 - Customer deposits 13,778 - 13,778 - Taxes accrued 8,258 - 8,258 - Interest accrued 7,227 (87) 7,314 - Regulatory clauses over recovery 5,062 - 5,062 - Vacation pay accrued 4,057 - 4,057 - Dividends declared 10,210 - 10,210 - Miscellaneous 8,739 - 8,739 - - ----------------------------------------------------------------------------------------------------------------- TOTAL 192,197 (87) 192,284 - - ----------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 166,302 - 166,302 - Accumulated deferred investment tax credits 31,552 - 31,552 - Deferred credits related to income taxes 56,935 - 56,935 - Accumulated provision for postretirement benefits 20,491 - 20,491 - Miscellaneous 18,733 - 18,733 - - ----------------------------------------------------------------------------------------------------------------- TOTAL 294,013 - 294,013 - - ----------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $1,265,612 $(42,561) $1,266,849 $41,324 ================================================================================================================= A-47
GULF TRUST I STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GULF) (Unaudited) (in thousands) Interest Income $2,891 Less: Preferred Distributions 2,804 ------ NET INCOME $ 87 ====== GULF TRUST I STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, GULF) (Unaudited) (in thousands) OPERATING ACTIVITIES: Net income $ 87 Change in current assets and current liabilities (87) -------- Net cash provided from operating activities - -------- INVESTING ACTIVITIES: Other (41,237) FINANCING ACTIVITIES: Proceeds from common securities 1,237 Proceeds from preferred securities 40,000 ------- Net cash provided from financings 41,237 ------- NET CHANGE IN CASH $ - ======= A-48 GULF TRUST I BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, GULF) (Unaudited) (in thousands) ASSETS ------ INVESTMENTS $41,237 CURRENT ASSETS: Receivables 87 ------- TOTAL ASSETS $41,324 ======= CAPITALIZATION -------------- CAPITALIZATION: Common stock equity $ 1,324 Preferred securities 40,000 ------- TOTAL CAPITALIZATION $41,324 ======= A-49
MISSISSIPPI POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I - ------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $543,588 $ - $ 543,588 $ - - ------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 142,059 - 142,059 - Purchased and interchanged, net 14,536 - 14,536 - Purchase power from affiliates 37,794 - 37,794 - Other 102,365 - 102,365 - Maintenance 47,302 - 47,302 - Depreciation and amortization 45,574 - 45,574 - Taxes other than income taxes 44,034 - 44,034 - Federal and state income taxes 31,968 - 31,968 - - ------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 465,632 - 465,632 - - ------------------------------------------------------------------------------------------------------------------------------- OPERATING INCOME 77,956 - 77,956 - OTHER INCOME (EXPENSE): Income from subsidiary - - - - Interest income 857 (2,369) 857 2,369 Other, net 2,368 - 2,368 - Income taxes applicable to other income 588 - 588 - - ------------------------------------------------------------------------------------------------------------------------------- INCOME BEFORE INTEREST CHARGES 81,769 (2,369) 81,769 2,369 - ------------------------------------------------------------------------------------------------------------------------------- INTEREST CHARGES: Interest on long-term debt 19,856 (2,369) 22,225 - Allowance for debt funds used during construction 96 - 96 - Interest on interim obligations 1,577 - 1,577 - Amortization of debt discount, premium and expense, net 574 - 574 - Other interest charges 2,369 - - 2,369 - ------------------------------------------------------------------------------------------------------------------------------- Net interest charges 24,472 (2,369) 24,472 2,369 - ------------------------------------------------------------------------------------------------------------------------------- NET INCOME 57,297 - 57,297 - DIVIDENDS ON PREFERRED STOCK 3,287 - 3,287 - - ------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $54,010 $ - $ 54,010 $ - =============================================================================================================================== A-50
MISSISSIPPI POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) - ----------------------------------------------------------------------------------------------------------------------------------- MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 57,297 $ - $ 57,297 $ - Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 49,661 - 49,661 - Deferred income taxes, net (1,809) - (1,809) - Other, net 3,206 - 3,206 - Change in current assets and liabilities - Receivables, net (8,583) - (8,583) - Inventories 3,148 - 3,148 - Payables 8,357 - 8,357 - Taxes accrued 2,515 - 2,515 - Other 1,465 - 1,465 - - ------------------------------------------------------------------------------------------------------------------------------ NET CASH PROVIDED FROM OPERATING ACTIVITIES 115,257 - 115,257 - - ------------------------------------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES Gross property additions (55,375) - (55,375) - Other (489) 37,164 (1,571) (36,082) - ------------------------------------------------------------------------------------------------------------------------------ NET CASH USED FOR INVESTING ACTIVITIES (55,864) 37,164 (56,946) (36,082) - ------------------------------------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Proceeds-- Preferred securities 35,000 - - 35,000 Retirements-- - (36,082) 36,082 - Preferred stock (42,518) - (42,518) - Pollution control bonds (10) - (10) - Payment of common stock dividends (49,400) - (49,400) - Payment of preferred stock dividends (3,287) - (3,287) - Miscellaneous (1,804) (1,082) (1,804) 1,082 - ------------------------------------------------------------------------------------------------------------------------------ NET CASH USED FOR FINANCINGS (62,019) (37,164) (60,937) 36,082 - ------------------------------------------------------------------------------------------------------------------------------ NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS (2,626) - (2,626) - CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 7,058 - 7,058 - - ------------------------------------------------------------------------------------------------------------------------------ CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 4,432 $ - $4,432 $ - ============================================================================================================================== A-51
MISSISSIPPI POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I - ---------------------------------------------------------------------------------------------------------------------------- UTILITY PLANT $1,000,387 $ - $ 1,000,387 $ - - -------------------------------------------------------------------------------------------------------------------------- OTHER PROPERTY AND INVESTMENTS (35,432) (37,164) 1,732 36,082 - -------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents 4,432 - 4,432 - Receivables - Customer accounts receivable 32,220 - 32,220 - Regulatory clauses under recovery 7,619 - 7,619 - Other accounts and notes receivable 8,666 - 8,666 - Affiliated companies 7,398 - 7,398 - Accumulated provision for uncollectible accts (698) - (698) - Fossil fuel stock, at average cost 10,651 - 10,651 - Materials and supplies, at average cost 19,452 - 19,452 - Current portion of accumulated deferred income taxes 8,379 - 8,379 - Prepayments 1,791 - 1,791 - Vacation pay deferred 5,030 - 5,030 - - -------------------------------------------------------------------------------------------------------------------------- TOTAL 104,940 - 104,940 - - -------------------------------------------------------------------------------------------------------------------------- DEFERRED CHARGES Debt expense and loss, being amortized 12,234 - 12,234 - Deferred charges related to income taxes 21,906 - 21,906 - Long-term notes receivable 2,837 - 2,837 - Workforce Reduction Plan 18,236 - 18,236 - Miscellaneous 5,639 5,639 - - -------------------------------------------------------------------------------------------------------------------------- TOTAL 60,852 - 60,852 - - -------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $1,130,747 $(37,164) $1,167,911 $36,082 ========================================================================================================================== A-52
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I - -------------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Stock Equity $ 387,824 $ (1,082) $ 387,824 $ 1,082 Preferred Stock 31,896 - 31,896 - Company obligated mandatorily redeemable preferred securities 35,000 - - 35,000 Long-term debt 291,665 (36,082) 327,747 - ----------------------------------------------------------------------------------------------------------------- TOTAL 746,385 (37,164) 747,467 36,082 - ----------------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Long-term debt due within one year 35,020 - 35,020 - Accounts payable 58,089 - 58,089 - Customer deposits 3,225 - 3,225 - Taxes accrued 34,960 - 34,960 - Interest accrued 4,098 - 4,098 - Vacation pay accrued 5,017 - 5,017 - Miscellaneous 7,780 - 7,780 - - ----------------------------------------------------------------------------------------------------------------- TOTAL 148,189 - 148,189 - - ----------------------------------------------------------------------------------------------------------------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 134,645 - 134,645 - Accumulated deferred investment tax credits 27,121 - 27,121 - Deferred credits related to income taxes 38,203 - 38,203 - Miscellaneous 72,286 - 72,286 - - ----------------------------------------------------------------------------------------------------------------- TOTAL 272,255 - 272,255 - - ----------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $1,166,829 $(37,164) $1,167,911 $ 36,082 ================================================================================================================= A-53
MISSISSIPPI TRUST I STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, MISSISSIPPI) (Unaudited) (in thousands) Interest Income $2,369 Less: Preferred Distributions 2,369 ------ NET INCOME $ - ====== MISSISSIPPI TRUST I STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1997 (Consolidated in Parent, MISSISSIPPI) (Unaudited) (in thousands) INVESTING ACTIVITIES: Junior subordinated notes issued to parent $(36,082) FINANCING ACTIVITIES: Proceeds from preferred securities 35,000 Advances from parent 1,082 ------- Net cash used for financings 36,082 ------- NET CHANGE IN CASH $ 0 ======= A-54 MISSISSIPPI TRUST I BALANCE SHEET AT DECEMBER 31, 1997 (Consolidated in Parent, MISSISSIPPI) (Unaudited) (in thousands) ASSETS ------ INVESTMENTS $36,082 ------- TOTAL ASSETS $36,082 ======= CAPITALIZATION -------------- CAPITALIZATION: Common stock equity $ 1,082 Preferred securities 35,000 ------- TOTAL CAPITALIZATION $36,082 ======= A-55
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, 1997. (File No. 1-3526.) A-2 Annual Report of ALABAMA on Form 10-K for the year ended December 31, 1997. (File No. 1-3164.) A-3 Annual Report of GEORGIA on Form 10-K for the year ended December 31, 1997. (File No. 1-6468.) A-4 Annual Report of GULF on Form 10-K for the year ended December 31, 1997. (File No. 0-2429.) A-5 Annual Report of MISSISSIPPI on Form 10-K for the year ended December 31, 1997. (File No. 0-6849.) A-6 Annual Report of SAVANNAH on Form 10-K for the year ended December 31, 1997. (File No. 1-5072.) A-7 Annual Report on Form U-13-60 for SEI for the year ended December 31, 1997. B-1 Composite Certificate of Incorporation of SOUTHERN, reflecting all amendments thereto through January 5, 1994. (Designated in Registration No. 33-3546, as Exhibit 4(a), in Certificate of Notification, File No. 70-7341, as Exhibit A and in Certificate of Notification, File No. 70-8181, as Exhibit A.) B-2 By-laws of SOUTHERN as amended effective October 21, 1991, and as presently in effect. (Designated in Form U-1, File No. 70-8181, as Exhibit A-2.) B-3 Charter of ALABAMA and amendments thereto through December 15, 1997. (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 and in Form 10-K for the year ended December 31, 1997, File No. 1-3164, as Exhibit 3(b)2.) B-4 By-laws of ALABAMA as amended effective July 23, 1993, and as presently in effect. (Designated in Form U-1, File No. 70-8191, as Exhibit A-2.)
A-56
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------ ---------------------- B-5 Charter of GEORGIA and amendments thereto through January 26, 1998. (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) and in Form 10-K for the year ended December 31, 1997, File No. 1-6468, as Exhibit 3(c)2.) B-6 By-laws of GEORGIA as amended effective July 18, 1990, and as presently in effect. (Designated in GEORGIA's Form 10-K for the year ended December 31, 1990, File No. 1-6468, as Exhibit 3.) B-7 Restated Articles of Incorporation of GULF and amendments thereto through January 28, 1998. (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 and in Form 10-K for the year ended December 31, 1997, File No. 0-2429, as Exhibit 3(d)2.) B-8 By-laws of GULF as amended effective July 26, 1996, and as presently in effect. (Designated in Form U-1, File No. 70-8949, as Exhibit A-2(c).) 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 December 31, 1997. (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 and in Form 10-K for the year ended December 31, 1997, File No. 0-6849, as Exhibit 3(e)2.) B-10 By-laws of MISSISSIPPI as amended effective April 2, 1996, and as presently in effect. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-10.)
A-57
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------ ---------------------- B-11 Charter of SAVANNAH and amendments thereto through November 10, 1993. (Designated in Registration No. 33-25183 as Exhibit 4(b)-(1), in Registration No. 33-45757 as Exhibit 4(b)-(2) and in Form 8-K dated November 9, 1993, File No. 1-5072 as Exhibit 4(b).) B-12 By-laws of SAVANNAH as amended effective February 16, 1994, and as presently in effect. (Designated in SAVANNAH's Form 10-K for the year ended December 31, 1993, File No. 1-5072, as Exhibit 3(f)2.) B-13 SEGCO Certificate of Incorporation as amended to date, last amended November 29, 1966. (Designated in Forms U-1, File No. 70-3480, as Exhibit A-5, File No. 70-3630, as Exhibit A-6, File Nos. 70-3738 and 70-3842, as Exhibit A-8(b); Registration No. 2-18084 as Exhibit 3(a)-2 and First Certificate of Notification, File No. 70-3945, as Exhibit A.) B-14 SEGCO By-laws as amended to date, last amended July 10, 1986. (Designated in Form U5S for the year ended December 31, 1990, as Exhibit B-14.) B-15 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-16 SCS By-laws as amended to date, last amended February 20, 1995. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-16) B-17 Alabama Property Company Certificate of Incorporation. (Designated in Form U-5B, File No. 30-115, as Exhibit B-29.) B-18 Alabama Property Company By-laws. (Designated in Form U-5B, File No. 30-115, as Exhibit B-30.) B-19 Piedmont-Forrest Corporation Articles of Incorporation and amendments thereto through August 31, 1987. (Designated in Form U-1, File No. 70-6135, as Exhibit A-1 and in Form U5S for 1987, File No. 30-222-2, as Exhibit B-21.) B-20 Piedmont-Forrest Corporation By-laws as presently in effect. (Designated in Form U-1, File No. 70-6135, as Exhibit A-2.) B-21 Articles of Incorporation of SEI and amendments thereto. (Designated in Form U5S for 1982, File No. 30-222-2, as Exhibit A-19, in Form U5S for 1987, File No. 30-222-2, as Exhibit B-24 and in Form U5S for 1996, File No. 30-222-2, as Exhibit B-22.)
A-58
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------ ---------------------- B-22 By-laws of SEI as amended to date, last amended February 20, 1997. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-23.) B-23 Articles of Incorporation of MESH and amendments thereto. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-23.) B-24 By-laws of MESH. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-24.) B-25 Articles of Incorporation of Energy Solutions and amendments thereto through March 25, 1993. (Designated in Form U5S for 1985, File No. 30-222-2, as Exhibit B-23 , in Form U5S for 1987, File No. 30-222-2, as Exhibit B-27 and in Form U5S for 1993, File No. 30-222-2, as Exhibit B-25.) B-26 By-laws of Energy Solutions. (Designated in Form U5S for 1985, File No. 30-222-2, as Exhibit B-24.) B-27 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.) B-28 Amendments to By-laws of Southern Nuclear through December 13, 1993. B-29 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-30 Certificate of Incorporation of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-30.) B-31 By-laws of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-31.) B-32 Certificate of Incorporation of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-31) B-33 By-laws of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-32) B-34 Certificate of Incorporation of SEIH. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-32.) B-35 By-laws of SEIH. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-33.) B-36 Certificate of Incorporation of SEIH-III. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-34.)
A-59
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------- ---------------------- B-37 By-laws of SEIH-III. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-35.) B-38 Certificate of Incorporation of Southern Electric International - Europe, Inc. and amendments thereto. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-37.) B-39 By-laws of Southern Electric International - Europe, Inc. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-38.) B-40 Certificate of Incorporation of Southern Energy North America, Inc. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-38.) B-41 Certificate of Amendment of Certificate of Incorporation of Southern Electric Wholesale Generators, Inc. changing name to Southern Energy North America Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-41.) B-42 By-laws of Southern Energy North America, Inc. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-39.) B-43 Certificate of Incorporation of SEIH-VIII. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-41) B-44 By-laws of SEIH-VIII. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-42) B-45 Certificate of Incorporation of Southern Electric International Trinidad, Inc. and amendments thereto. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-43.) B-46 By-laws of Southern Electric International Trinidad, Inc. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-44.) B-47 Certificate of Incorporation of SEIH-X. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-45) B-48 By-laws of SEIH-X. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-46) B-49 Certificate of Incorporation of SEIH-XI. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-47) B-50 By-laws of SEIH-XI. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-48)
A-60
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------- ----------------------- B-51 Articles of Organization of MESCO and amendments thereto. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-49.) B-52 Operating Agreement of MESCO. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-50.) B-53 Certificate of Incorporation of Southern Electric, Inc. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-51) B-54 By-laws of Southern Electric, Inc. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-52) B-55 Certificate of Incorporation of GEORGIA POWER HOLDINGS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-53) B-56 By-laws of GEORGIA POWER HOLDINGS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-54) B-57 Certificate of Limited Partnership of GEORGIA CAPITAL. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-55) B-58 Amended and Restated Agreement of Limited Partnership of GEORGIA CAPITAL. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-56) B-59 Action of General Partner of GEORGIA CAPITAL dated December 9, 1994. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-57) B-60 Certificate of Incorporation of Southern Energy International, Inc. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-58.) B-61 Certificate of Amendment of Certificate of Incorporation of SEI Newco 1 changing name to Southern Energy International, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-61.) B-62 By-laws of Southern Energy International, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-62.) B-63 Certificate of Incorporation of Southern Energy - Newco 2, Inc. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-60.) B-64 Certificates of Amendment of Certificate of Incorporation of SEI Newco 2 changing name to Southern Energy - Newco 2, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-64.)
A-61
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------- ---------------------- B-65 By-laws of Southern Energy - Newco 2, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-65.) B-66 By-Laws of Southern Energy Finance Company, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-66.) B-67 Certificate of Incorporation of EPZ Lease, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-67.) B-68 By-laws of EPZ Lease, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-68.) B-69 Certificate of Formation of EPZ Lease, L.L.C. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-69.) B-70 Certificate of Formation of EPZ Lease Holding A, L.L.C. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-70.) B-71 Articles of Organization of EPZ Lease Holding A, L.L.C. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-71.) B-72 Certificate of Formation of EPZ Lease Holding B, L.L.C. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-72.) B-73 Articles of Organization of EPZ Lease Holding B, L.L.C. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-73.) B-74 Certificate of Formation of EPZ Lease Holding C, L.L.C. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-74.) B-75 Articles of Organization of EPZ Lease Holding C, L.L.C. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit B-75.) C-1 Subordinated Note Indenture dated as of February 1, 1997, between SOUTHERN, Southern Company Capital Funding, Inc. and 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, between SOUTHERN, Southern Company Capital Funding, Inc. and Bankers Trust Company, as Trustee, and indenture supplemental thereto dated as of June 6, 1997. (Designated in Form 10-K for the year ended December 31, 1997, File No. 1-3526, as Exhibit 4(a)2.)
A-62
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------- ---------------------- C-3 Indenture dated as of January 1, 1942, between ALABAMA and The Chase Manhattan Bank (formerly Chemical Bank), as Trustee, and indentures supplemental thereto through that dated as of 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-4 Subordinated Note Indenture dated as of January 1, 1996, between ALABAMA and The Chase Manhattan Bank (formerly Chemical 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-5 Subordinated Note Indenture dated as of January 1, 1997, between ALABAMA and The Chase Manhattan Bank, as Trustee, and indenture supplemental thereto dated as of January 1, 1997. (Designated in Form 8-K dated January 9, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2.) C-6 Senior Note Indenture dated as of December 1, 1997, between ALABAMA and The Chase Manhattan Bank, as Trustee, and indentures supplemental thereto through that dated February 26 , 1998. (Designated in Form 8-K dated December 4, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2 and in Form 8-K dated February 20, 1998, File No. 1-3164, as Exhibit 4.2.)
A-63
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------- ---------------------- C-7 Indenture dated as of March 1, 1941, between GEORGIA and The Chase Manhattan Bank (formerly Chemical Bank), as Trustee, and indentures supplemental thereto dated as of March 1, 1941, March 3, 1941 (3 indentures), March 6, 1941 (139 indentures), March 1, 1946 (88 indentures) and December 1, 1947, through October 15, 1995. (Designated in Registration Nos. 2-4663 as Exhibits B-3 and B-3(a), 2-7299 as Exhibit 7(a)-2, 2-61116 as Exhibit 2(a)-3 and 2(a)-4, 2-62488 as Exhibit 2(a)-3, 2-63393 as Exhibit 2(a)-4, 2-63705 as Exhibit 2(a)-3, 2-68973 as Exhibit 2(a)-3, 2-70679 as Exhibit 4(a)-(2), 2-72324 as Exhibit 4(a)-2, 2-73987 as Exhibit 4(a)-(2), 2-77941 as Exhibits 4(a)-(2) and 4(a)-(3), 2-79336 as Exhibit 4(a)-(2), 2-81303 as Exhibit 4(a)-(2), 2-90105 as Exhibit 4(a)-(2), 33-5405 as Exhibit 4(a)-(2), 33-14367 as Exhibits 4(a)-(2) and 4(a)-(3), 33-22504 as Exhibits 4(a)-(2), 4(a)-(3) and 4(a)-(4), 33-32420 as Exhibit 4(a)-(2), 33-35683 as Exhibit 4(a)-(2), in GEORGIA's Form 10-K for the year ended December 31, 1990, File No. 1-6468, as Exhibit 4(a)(3), in Form 10-K for the year ended December 31, 1991, File No. 1-6468, as Exhibit 4(a)(5), in Registration No. 33-48895 as Exhibit 4(a)-(2), in Form 8-K dated August 26, 1992, File No. 1-6468, as Exhibit 4(a)-(3), in Form 8-K dated September 9, 1992, File No. 1-6468, as Exhibits 4(a)-(3) and 4(a)-(4), in Form 8-K dated September 23, 1992, File No. 1-6468, as Exhibit 4(a)-(3), in Form 8-A dated October 12, 1992, as Exhibit 2(b), in Form 8-K dated January 27, 1993, File No. 1-6468, as Exhibit 4(a)-(3), in Registration No. 33-49661 as Exhibit 4(a)-(2), in Form 8-K dated July 26, 1993, File No. 1-6468, as Exhibit 4, in Certificate of Notification, File No. 70-7832, as Exhibit M, in Certificate of Notification, File No. 70-7832, as Exhibit C, in Certificate of Notification, File No. 70-7832, as Exhibits K and L, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Certificate of Notification, File No. 70-8443, as Exhibit E, in Certificate of Notification, File No. 70-8443, as Exhibit E, in Certificate of Notification, File No. 70-8443, as Exhibit E, in GEORGIA's Form 10-K for the year ended December 31, 1994, File No. 1-6468, as Exhibits 4(c)2 and 4(c)3, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Certificate of Notification, File No. 70-8443, as Exhibit C, in Form 8-K dated May 17, 1995, File No. 1-6468, as Exhibit 4 and in GEORGIA's Form 10-K for the year ended December 31, 1995, File No. 1-6468, as Exhibits 4(c)2, 4(c)3, 4(c)4, 4(c)5 and 4(c)6.) C-8 Indenture dated as of June 1, 1994, between GEORGIA and Trust Company Bank, as Trustee and indenture supplemental thereto dated December 15, 1994. (Designated in Certificate of Notification, File No. 70-8461 as Exhibits E and F.) C-9 Subordinated Note Indenture dated as of August 1, 1996, between GEORGIA and The Chase Manhattan Bank, as Trustee, and indentures supplemental thereto through January 1, 1997. (Designated in Form 8-K dated August 21, 1996, File No. 1-6468, as Exhibits 4.1 and 4.2 and in Form 8-K dated January 9, 1997, File No. 1-6468, as Exhibit 4.2.)
A-64
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------- ---------------------- C-10 Subordinated Note Indenture dated as of June 1, 1997, between GEORGIA and The Chase Manhattan Bank, as Trustee, and indenture supplemental thereto dated as of June 11, 1997. (Designated in Certificate of Notification, File No. 70-8461, as Exhibits D and E.) C-11 Senior Note Indenture dated as of January 1, 1998, between GEORGIA and The Chase Manhattan Bank, as Trustee, and indenture supplemental thereto dated as of January 27, 1998. (Designated in Form 8-K dated January 21, 1998, File No. 1-6468, as Exhibits 4.1 and 4.2.) C-12 Indenture dated as of September 1, 1941, between GULF and The Chase Manhattan Bank (formerly The Chase Manhattan Bank (National Association)), 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 The Chase Manhattan Bank, as Trustee, and indentures supplemental thereto through that dated as of January 1, 1998. (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 and in Form 8-K dated January 13, 1998, File No. 0-2429, as Exhibit 4.2.)
A-65
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------- ---------------------- C-14 Indenture dated as of September 1, 1941, between MISSISSIPPI and Bankers Trust Company, as Successor Trustee, and indentures supplemental thereto through December 1, 1995. (Designated in Registration Nos. 2-4834 as Exhibit B-3, 2-62965 as Exhibit 2(b)-2, 2-66845 as Exhibit 2(b)-2, 2-71537 as Exhibit 4(a)-(2), 33-5414 as Exhibit 4(a)-(2), 33-39833 as Exhibit 4(a)-2, in MISSISSIPPI's Form 10-K for the year ended December 31, 1991, File No. 0-6849, as Exhibit 4(b), in Form 8-K dated August 5, 1992, File No. 0-6849, as Exhibit 4(a)-2, in Second Certificate of Notification, File No. 70-7941, as Exhibit I, in MISSISSIPPI's Form 8-K dated February 26, 1993, File No. 0-6849, as Exhibit 4(a)-2, in Certificate of Notification, File No. 70-8127, as Exhibit A, in Form 8-K dated June 22, 1993, File No. 0-6849, as Exhibit 1, in Certificate of Notification, File No. 70-8127, as Exhibit A, in Form 8-K dated March 8, 1994, File No. 0-6849, as Exhibit 4, in Certificate of Notification, File No. 70-8127, as Exhibit C and in Form 8-K dated December 5, 1995, File No. 0-6849, as Exhibit 4.) C-15 Subordinated Note Indenture dated as of February 1, 1997, between MISSISSIPPI and Bankers Trust Company, as Trustee, and indenture supplemental thereto dated as of February 1, 1997. (Designated in Form 8-K dated February 20, 1997, File No. 0-6849, as Exhibits 4.1 and 4.2.) C-16 Indenture dated as of March 1, 1945, between SAVANNAH and Bank of New York, 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-17 Senior Note Indenture dated as of March 1, 1998 between SAVANNAH and The Bank of New York, as Trustee and indenture supplemental thereto dated as of March 1, 1998. (Designated in Form 8-K dated March 9, 1998, File No. 1-5072, as Exhibits 4.1 and 4.2.)
A-66
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit ------ ---------------------- D-1 Income Tax Allocation Agreement and Amendments 1 through 42 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 and in Form U5S for 1996, File No. 30-222-2, as Exhibit D-2.) D-2 Amendments 43 through 55 to Income Tax Allocation Agreement. 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 and in Form U5S for 1995, File No. 30-222-2, as Exhibit E-2.) E-2 Supplement to GULF's personnel policies pertaining to employee loans. G-1 ALABAMA's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No. 1-3164, as Exhibit 27.) G-2 GEORGIA's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No. 1-6468, as Exhibit 27.) G-3 GULF's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No. 0-2429, as Exhibit 27.) G-4 MISSISSIPPI's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No. 0-6849, as Exhibit 27.) G-5 SAVANNAH's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No. 1-5072, as Exhibit 27.) G-6 SOUTHERN system's consolidated Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No. 1-3526, as Exhibit 27.) A-67
EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit -------- ---------------------- H Organizational Chart I Financial statements relating to certain exempt wholesale generators and foreign utility companies. Exhibits listed above which have heretofore been filed with the SEC pursuant to various Acts administered by the SEC, and which were designated as noted above, are hereby incorporated herein by reference and made a part hereof with the same effect as if filed herewith. 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 30, 1998 By /s/ W. L. Westbrook ------------------------- W. L. Westbrook Financial Vice President, Chief Financial Officer, and Treasurer A-69 EX-99 2 SOUTHERN ENERGY U-13-60 Exhibit A-7 MODIFIED Form U-13-60 ANNUAL REPORT For The Period Beginning January 1, 1997 and Ending December 31, 1997 To The U.S. SECURITIES AND EXCHANGE COMMISSION Of SOUTHERN ENERGY RESOURCES, INC. (formerly known as SOUTHERN ENERGY, INC.) (Exact Name of Reporting Company) A Subsidiary Company Date of Incorporation July 29, 1981. If not incorporated Date of Organization______________ State or Sovereign Power under which Incorporated or Organized State of Delaware Location of Principal Executive Offices of Reporting Company 900 Ashwood Parkway, Suite 500 Atlanta, GA 30338 Report filed pursuant to File Number 70-6599 Name, title, and address of officer to whom correspondence concerning this report should be addressed: James A. Ward V. President & Controller 900 Ashwood Parkway, Suite 500 (Name) (Title) (Address) Name of Principal Holding Company under which Reporting Company is Organized: THE SOUTHERN COMPANY 1 INSTRUCTIONS FOR THE USE OF MODIFIED FORM U-13-60 1. Time of Filing - - Annual Report essentially in the form of U-13-60 shall be filed appended to Form U5S, Annual Report of the Parent and Associate Companies Pursuant to the Public Utility Holding Company Act of 1935. Form U5S is required to be filed by May 1. 2. Number of Copies - - Each annual report shall be filed in duplicate. The company should prepare and retain at least one extra copy for itself in case correspondence with reference to the report becomes necessary. 3. Definitions - - Definitions contained in Instruction 01-8 to the Uniform System of Accounts for Mutual Service Companies and Subsidiary Service Companies, Public Utility Holding Company Act of 1935, as amended February 2, 1979 shall be applicable to words or terms used specifically within the modified Form U-13-60. 4. Organization Chart - - The company shall submit with each annual report a copy of its current organization chart. 2 - ------------------------------------------------------------------------------ LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS - ------------------------------------------------------------------------------ Description of Schedules and Accounts Schedule or Page Account Number Number - ------------------------------------------------------------------------------- COMPARATIVE BALANCE SHEET Schedule I 3-4 - ------------------------ COMPANY PROPERTY Schedule II 5 ACCUMULATED PROVISIONS FOR DEPRECIATION AND AMORTIZATION OF COMPANY PROPERTY Schedule III 6 INVESTMENTS Schedule IV 7 ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 8 MISCELLANEOUS DEFERRED DEBITS Schedule IX 9 PROPRIETARY CAPITAL Schedule XI 10 LONG TERM DEBT Schedule XII 11 CURRENT AND ACCRUED LIABILITIES Schedule XIII 12 NOTES TO FINANCIAL STATEMENTS Schedule XIV 13 COMPARATIVE INCOME STATEMENT Schedule XV 14 - --------------------------- ANALYSIS OF BILLING-ASSOCIATE COMPANIES Account 457 15 ANALYSIS OF BILLING-NONASSOCIATE COMPANIES Account 458 16 SCHEDULE OF EXPENSE BY DEPARTMENT OR FUNCTION Schedule XVII 17-18 DEPARTMENTAL ANALYSIS OF SALARIES Account 920 19 DISPOSITION OF INTELLECTUAL PROPERTY Account 928 20 MISCELLANEOUS GENERAL EXPENSES Account 930.2 21 TAXES OTHER THAN INCOME TAXES Account 408 22 DONATIONS Account 426.1 23 OTHER DEDUCTIONS Account 426.5 24 NOTES TO STATEMENT OF INCOME Schedule XVIII 25 OUTSIDE SERVICES EMPLOYED Schedule XIX 26 ORGANIZATION CHART 27-28 - ------------------------------------------------------------------------------ 3 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. - ------------------------------------------------------------------------------ SCHEDULE I - COMPARATIVE BALANCE SHEET Give balance sheet of the Company as of December 31 of the current and prior year. (Note: Amounts are in thousands of dollars) - ------------------------------------------------------------------------------ ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31 CURRENT PRIOR --------- --------- COMPANY PROPERTY 101 Company Property (Schedule II) 10,610 8,742 107 Construction work in progress (Schedule II) - - ------- ------ Total Property 10,610 8,742 ------- ------ 108 Less accumulated provision for depreciation and amortization of company property (Schedule III) (5,723) (4,465) ------- ------ Net Company Property 4,887 4,277 ------- ------ INVESTMENTS 123 Investments in associate companies - - 124 Other Investments (Schedule IV) 667 626 ------- ------ Total Investments 667 626 ------- ------ CURRENT AND ACCRUED ASSETS 131 Cash 1,998 7,558 134 Special deposits 941 594 135 Working funds 168 108 136 Temporary cash investments (Schedule IV) - - 141 Notes Receivable 75 75 143 Accounts Receivable 6,653 5,284 144 Accumulated provision for uncollectable accounts (555) (288) 146 Accounts receivable from associate companies (Schedule V) 79,255 16,436 152 Fuel stock expenses undistributed - - 154 Materials and supplies - - 163 Stores expenses undistributed - - 165 Prepayments 128 235 174 Miscellaneous current and accrued assets 2,186 6,773 ------- ------ Total Current and Accrued Assets 90,849 36,775 ------- ------ DEFERRED DEBITS 181 Unamortized debt expense - - 184 Clearing accounts - - 186 Miscellaneous deferred debits (Schedule IX) 64 (143) 188 Research, development, or demonstration expenditures - - 190 Accumulated deferred income taxes 35,088 26,930 ------- ------ Total Deferred Debits 35,152 26,787 ------- ------ TOTAL ASSETS AND OTHER DEBITS 131,555 68,465 ------- ------ 4 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. - ------------------------------------------------------------------------------- SCHEDULE I - COMPARATIVE BALANCE SHEET - ------------------------------------------------------------------------------- ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31 CURRENT PRIOR --------- ------- PROPRIETARY CAPITAL 201 Common stock issued (Schedule XI) 100 100 211 Miscellaneous paid-in capital (Schedule XI) 205,059 130,799 215 Appropriated retained earnings (Schedule XI) - - 216 Unappropriated retained earnings (Schedule XI) (134,428) (128,478) -------- -------- Total Proprietary Capital 70,731 2,421 -------- -------- LONG TERM DEBT 223 Advances from associate companies (Schedule XII) - - 224 Other long-term debt (Schedule XII) - - 225 Unamortized premium on long-term debt - - 226 Unamortized discount on long-term debt-debit - - -------- -------- Total long-term debt - - -------- -------- CURRENT AND ACCRUED LIABILITIES 231 Notes Payable - - 232 Accounts payable 12,857 9,029 233 Notes payable to associate companies (Schedule XIII) - - 234 Accounts payable to associate companies (Schedule XIII) 2,714 2,147 236 Taxes accrued 2,094 156 237 Interest accrued - - 238 Dividends declared - - 241 Tax collections payable 645 7 242 Miscellaneous current and accrued liabilities (Schedule XIII) 13,652 43,045 ------- ------ Total current and accrued liabilities 31,962 54,384 ------- ------ DEFERRED CREDITS 253 Other deferred credits 15,424 11,660 255 Accumulated deferred investment tax credits - - ------- ------ Total Deferred Credits 15,424 11,660 ------- ------ 282 ACCUMULATED DEFERRED INCOME TAXES 13,438 - --------------------------------- ------- ------ TOTAL LIABILITIES AND PROPRIETARY CAPITAL 131,555 68,465 ------- ------
5 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ---------------------------------------------------------------------------------------------------------------------- SCHEDULE II - COMPANY PROPERTY - ---------------------------------------------------------------------------------------------------------------------- START OF YEAR END OF YEAR BALANCE RETIRED OTHER YEAR DESCRIPTION ADDITION OR SOLD CHANGES BALANCE --------------------------------------------------------------------------------------------------------------------- COMPANY PROPERTY Account 301 ORGANIZATION 7 - - (2) 5 303 MISCELLANEOUS INTANGIBLE PLANT 795 - - - 795 304 LAND AND LAND RIGHTS - - - - - 305 STRUCTURES AND IMPROVEMENTS - - - - - 306 LEASEHOLD IMPROVEMENTS 1 909 571 - - 1,480 307 EQUIPMENT 1 2 4,979 1,094 1 (300) 5,774 308 OFFICE FURNITURE AND EQUIPMENT 1 1,916 408 1 - 2,324 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT 136 96 - - 232 310 AIRCRAFT AND AIRPORT EQUIPMENT - - - - - 311 OTHER COMPANY PROPERTY 3 - - - - - ------ ------ --- ---- SUB-TOTAL 8,742 2,169 1 (302) 10,610 ------ ------ --- ---- ------ 107 CONSTRUCTION WORK IN PROGRESS 4 - ----- TOTAL 8,742 2,169 1 (302) 10,610 ----- ----- --- ---- ------ 1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: Purchase of compute hardware: $ 821 Purchase of File Servers (SETMI) 203 Purchase of Software Licenses: 70 Purchase of office furniture: 408 Professional Office Expansion: 571 Transfer to Southern Energy Trading & Marketing (300) 2) SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR: - ---------------------------------------------------------------------------------------------------------- BALANCE AT CLOSE OF YEAR SUBACCOUNT DESCRIPTION ADDITIONS - ---------------------------------------------------------------------------------------------------------- Computer Software - 795 Computer Hardware 1,094 5,774 - ---------------------------------------------------------------------------------------------------------- 3) DESCRIBE OTHER COMPANY PROPERTY: Not Applicable 4) DESCRIBE CONSTRUCTION WORK IN PROGRESS: Not Applicable
6 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------------------------------------------------- SCHEDULE III ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF COMPANY PROPERTY - ------------------------------------------------------------------------------------------------------------------------- CHARGED TO OTHER CHANGES START OF YEAR ACCOUNT 403 ADD (DEDUCT) END OF YEAR BALANCE (2) RETIRE- YEAR DESCRIPTION MENTS BALANCE - ------------------------------------------------------------------------------------------------------------------------- COMPANY PROPERTY Account 301 ORGANIZATION - - - - - 303 MISCELLANEOUS INTANGIBLE PLANT 550 114 - - 663 304 LAND AND LAND RIGHTS - - - - - 305 STRUCTURES AND IMPROVEMENTS - - - - - 306 LEASEHOLD IMPROVEMENTS 396 202 - (13) 585 307 EQUIPMENT 2,761 776 (1) (15) 3,523 308 OFFICE FURNITURE AND FIXTURES 650 169 - - 819 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT 108 25 - - 134 310 AIRCRAFT AND AIRPORT EQUIPMENT - - - - - 311 OTHER COMPANY PROPERTY - - - - - ----- ----- --- ---- ----- TOTAL 4,465 1,287 (1) (28) 5,723 ----- ----- --- ---- ----- (2) Depreciation expense of $8 is included on Schedule XV and is related to Vienna. This is charged to Southern Energy's depreciation expense but instead of accumulated depreciation, it is charged directly against the asset account balance.
7 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------ SCHEDULE IV - INVESTMENTS - ------------------------------------------------------------------------------ INSTRUCTIONS: Complete the following schedule concerning investments. Under account 124, "Other Investments", state each investment separately, with description, including the name of issuing company, number of shares or principal amount, etc. BALANCE AT BEGINNING OF BALANCE AT CLOSE DESCRIPTION YEAR OF YEAR --------------- -------------- ------------------ ACCOUNT 124 - OTHER INVESTMENT Investment in Mobile Energy Services Co. , LLC 626 667 --- --- TOTAL 626 667 --- ---
8 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ---------------------------------------------------------------------------------------------------------- SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES - ---------------------------------------------------------------------------------------------------------- INSTRUCTIONS: Complete the following schedule listing accounts receivable from each associate company. Where the company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each associate by subaccount should be provided. - ---------------------------------------------------------------------------------------------------------- BALANCE AT BEGINNING OF YEAR BALANCE AT CLOSE OF DESCRIPTION YEAR ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES: Joint Venture - - Alabama Power Co. 99 1 Georgia Power Co. 1 2 Southern Company Services 516 512 The Southern Co. - - Southern Energy North America, Inc. 26 26 SEI Birchwood, Inc. 338 956 Southern Energy, Inc. (formerly SEI Holdings, 14 492 Inc.) Associadios 17 - Southern Energy-Newco2, Inc. 555 1,500 Electricidad 15 - Hidroelectric Alicura, S.A. 216 324 Mobile Energy Services Company (MESCO) 419 868 Mobile Energy Services Holding (MESH) 522 500 Southern Energy Trading and Marketing, Inc. 4,076 23,731 Edelnor 1,518 3,118 SEI Chile S.A. - - Southern Electric International Trinidad, Inc. 338 104 Birchwood Power Partners 274 1,624 SEI Hawaii Cogenerators 818 - Southern Electric, Inc. 3 3 Southern Electric Holdings X - - Southern Electric Holdings VIII - - Electrica SEI Chile Limitada 503 - Inversiones SEI Chile Limitada 310 - Southern Investments Holding UK - (10) Southern Investments UK plc 1,843 1,500 South Western Electricity plc 361 796 Southern Electric Bahamas Holding, Ltd. 481 619 Beteiligungs GmbH 595 1,164 SEI Europe, Inc. 795 822 SEI Europe, Limited 1,682 1,341 Greenhost, Inc. - 5 Southern Electric Bahamas Limited 101 101 SE do Brasil - 378 SEI State Line - 10 State Line LLC - 5,091 SEI Clairton, Inc. - 324 SEI Finance - 1 Worldwide Holdings Beteiligungs - 412 Germany BEWAG, Inc - 1,340 SEI Worldwide Holdings, Inc. - 1,340 Southern Energy Holdings GmbH2 - 9,440 SoCo Capital Funding - 2 Southern Energy Asia, Inc. - 15,184 CEPA - 1,505 Sual Slipform - 424 CEPA Slipform - 796 CEPA Tileman Power Systems - 7 CEPAL - 735 Allied Queensland Coalfield - 104 Hopewell Tileman Philippines - 8 Hopewell Energy Philippines - 8 Southern Energy Finance - 992 Hopewell Power Philippines - 110 EPZ Lease, Inc. - 8 SEI Brazil - 937 ------ ------ TOTAL 16,436 79,255 ------ ------ ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL PAYMENTS Not Applicable - ------ TOTAL PAYMENTS - ------
9 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the year Ended December 31, 1997 - ------------------------------------------------------------------------------ SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS - ------------------------------------------------------------------------------ INSTRUCTION: Provide detail of items in this account. Items less than $10,000 may be grouped by class showing the number of items in each class. BALANCE AT BEGINNING OF YEAR BALANCE AT CLOSE DESCRIPTION OF YEAR -------------- ------------- ------------------ ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS 1) (143) 64 ----- -- TOTAL (143) 64 ----- -- 1) Miscellaneous Deferred Debits: $ 64 K for "VAT" credit & the SEI Employee Promissory Note.
10 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ----------------------------------------------------------------------------------------------------------------------------------- SCHEDULE XI PROPRIETARY CAPITAL - ---------------------------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES PAR OR STATED VALUE ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE OUTSTANDING CLOSE OF PERIOD - -------------- -------------- ----------- ------------------- ---------------------------- NO. OF SHARES TOTAL AMOUNT 201 COMMON STOCK ISSUED 1,000 $100 1,000 100 INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of transactions which give rise to the reported amounts. DESCRIPTION AMOUNT ----------- ------- ACCOUNT 211 MISC. PAID IN CAPITAL 205,059 ACCOUNT 215 APPROPRIATED RETAINED EARNINGS - ------- TOTAL 205,059 ------- BALANCE AT BEGINNING OF NET INCOME OR YEAR (LOSS) 1 BALANCE AT CLOSE D E S C R I P T I O N DIVIDENDS PAID OF YEAR --------------------------- ------------- ------------- ----------------- ----------------- ACCOUNT 216 UNAPPROPRIATED RETAINED EARNINGS (128,478) (5,947) - (134,428) TOTAL (128,478) (5,947) - (134,428) -------- ------ --- -------- 1 The actual net income from operations was ($5,939). Also, a currency translation adjustment loss of ($ 8) was reflected in the Net Income/(Loss), which is not income but a contra equity account.
11 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - --------------------------------------------------------------------------------------------------------------------------------- SCHEDULE XII LONG-TERM DEBT - --------------------------------------------------------------------------------------------------------------------------------- INSTRUCTIONS: Advances from parent and associate companies should be reported separately for advances on notes, and advances on open accounts. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224 - Other Long Term Debt provide the name of creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding. TERMS OF OBLIG CLASS & SERIES BALANCE AT BALANCE NAME OF CREDITOR OF OBLIGATION DATE OF INTEREST AMOUNT BEGINNING (1) AT CLOSE MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR - ------------------- ---------------- -------- ------- ----------- ---------- --------- ---------- -------- ACCOUNT 223 - ADVANCES FROM PARENT AND ASSOCIATE COMPANIES: - - - - ACCOUNT 224 - OTHER LONG -TERM DEBT: Not Applicable -- -- -- -- TOTAL - - - - -- -- -- --
(1) GIVE AN EXPLANATION OF DEDUCTIONS: 12 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES - ------------------------------------------------------------------------------- INSTRUCTIONS: Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group. BALANCE AT BALANCE AT BEGINNING CLOSE OF D E S C R I P T I O N OF YEAR YEAR --------------------- ---------- ------------- ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES: THE SOUTHERN COMPANY - - TOTAL - - ------- -------- ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES : Alabama Power Company 8 - Georgia Power Company 689 100 Southern Company Services 675 950 Mobile Energy Services Holdings 1 1 SEI Europe, Limited 403 1,175 Hidroelectric Alicura, S.A. - - Birchwood Power Partners - - South Western Electricity plc 337 428 Mobile Energy Services Co., LLC - - SEI Birchwood - - Southern Energy, Inc. (formerly SEI Holdings, Inc.) 34 - Southern Enterprises - - SEI Hawaii - 60 ------- ------- TOTAL 2,147 2,714 ------- ------- ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES: Employee Garnishments W/H (1) - Employee Flex Care 11 4 Accrued Bonuses - Home Office 4,246 7,269 Accrued Bonuses - Plant 256 514 Accrued Incentive Payable 699 1,379 Employee Group Insurance Premiums Withheld 14 - Billing in Excess of Cost on Uncompleted Contracts 34,443 1,296 Vacation Clearing Current/Prior Year 1,873 1,627 Loss Provision - Macon Kraft 1,477 1,477 ESP and ESOP - 70 MESCO Insurance / Union Dues - - Miscellaneous 27 - United Way Withholdings - 16 ------ ------ TOTAL 43,045 13,652 ------- ------ 13 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------- - -INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any accounts thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. - ------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Southern Energy Resources, INC. ("SEI" or the "Company"), a wholly owned subsidiary of The Southern Company ("Southern"), is engaged in the development, construction, operation and maintenance ("O&M"), and ownership of cogeneration and independent power facilities in the United States and internationally. The Company's affiliate construction activities in Virginia represent approximately 64% of revenues, while its O&M activities with unaffiliated entities in New York represent approximately 8% of revenues. SEI's international consulting efforts represent approximately 10% of the Company's revenues with the remaining 18% being derived from SEI's global business development efforts. SEI owns 99% of SEI Operadora del Argentina, S.A., incorporated in 1993 for the purpose of providing operational and maintenance services to Hidroelectrica Alicura, S.A., and 1% of Mobile Energy Services Company, L.L.C. ("Mobile Energy"), formed in 1995 for the purpose of owning and operating an energy and chemical recovery complex located in Mobile, Alabama. SEI also owns 100% of Southern Electric International, Asia, Inc. and 100% of Southern Electric International, GmbH, which were formed in 1995 for the purpose of business development in Asia and Europe, respectively. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basis of Presentation The consolidated financial statements include the accounts of SEI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform with the current financial statement presentation. Cash and Cash Equivalents Investments with an original maturity of 90 days or less are classified as cash and cash equivalents. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated economic lives of the related assets (ranging from 3 years to 12 years). Leasehold improvements are amortized over the shorter of the respective lease terms or the useful lives of the improvements. The Company's capitalization policy expenses the cost of certain immaterial assets when purchased. Upon the retirement or sale of assets, the costs of such assets and the related accumulated depreciation are removed from the balance sheet and the gain or loss, if any, is credited or charged to income. Project Development Costs SEI capitalizes and simultaneously fully reserves for development costs for projects in which a milestone has not yet been achieved but whose likelihood of success is probable. It is reasonably possible that the estimated reserve will be reduced significantly in the near term due to successful project development efforts, which would have a beneficial impact on earnings. 13-A ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------ INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any accounts thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. - --------------------- --------------------------------------------------------- Income Taxes The Company provides deferred income taxes for all significant income tax temporary differences in accordance with Financial Accounting Standards Board Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes." SFAS No. 109 requires, among other things, the use of an asset and liability method for the recognition of deferred tax liabilities and assets. Revenue Recognition Revenues from construction contracts are recognized using the percentage-of-completion method. The extent of progress toward completion is measured by comparing the percentage of costs incurred to date to total estimated costs on each contract. Provisions for estimated losses on uncompleted contracts are charged to income in full when such losses become probable and are reasonably estimable. Other service revenues are recognized when earned. 2. EMPLOYEE BENEFITS Pension Plan SEI participates in the Pension Plan for Employees of Southern Company Services, Inc., a defined benefit, trusteed, noncontributory plan covering substantially all regular employees. Certain union employees engaged in the operations and maintenance contract with Mobile Energy participate in a separate pension plan. The following table sets forth SEI's defined benefit plans' funded status as of December 31, 1997 (in thousands):
1997 ----- Actuarial present value of benefit obligations: Vested Benefits Obligation $(10,188) Nonvested Benefits Obligation (1,029) -------- Accumulated benefit obligation (11,217) Excess of Projected Benefit Obligation over Accumulated Benefit Obligation (7,345) ------- Projected benefit obligation (18,562) Less: Fair value of plan assets, primarily equity and fixed income securities 10,380 Cash Flow Adjustment (4th Quarter) 10,328 Funded Status 2,146 Unrecognized net transition obligation 113 Unrecognized Net (Gain)/Loss (5,419) Unrecognized prior service cost 6 -------- Accrued pension costs recognized in the balance sheets $ (3,154) ======== The actuarial present value of the projected benefit obligation for the plans was determined using a discount rate of 7.75% for 1997 and a rate of increase in future compensation levels of 5.25% for 1997. The expected long-term rate of return on assets was 8.5% for 1997.
13-B ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------ SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------ INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any accounts thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. The net periodic pension cost for 1997 included the following components (in thousands): 1997 Service cost-benefits earned $ 1,215 Interest cost on projected benefit obligation 1,262 Actual return on plan assets (2,253) Net amortization and deferrals 718 ------- Net periodic pension cost $ 942 ======= Postretirement Benefits SEI also provides certain medical care and life insurance benefits for retired employees. Substantially all employees may become eligible for these benefits when they retire. Effective January 1, 1993, the Company adopted SFAS No. 106, "Employers Accounting for Postretirement Benefits Other Than Pensions." SFAS No. 106 requires that medical care and life insurance benefits for retired employees be accounted for on an accrual basis using a specified actuarial method, benefit/years-of-service. The funded status of the medical and life plans at December 31, 1997 was as follows (in thousands): 1997 -------------------- Medical Life ------- ---- Actuarial present value of benefit obligation: Retirees and dependents $ 154 $ 199 Employees eligible to retire 225 0 Other 1,537 618 ------- ----- Accumulated benefit obligation 1,916 817 ------- ----- Unrecognized prior service cost 1,089 316 Unrecognized net (gain) / loss (923) (322) ------- ----- Accrued liability recognized in the balance sheets $ 2,082 $ 811 The discount, future compensation, and expected long-term return on assets rates used for the pensions described above were also used in measuring the postretirement benefit obligation. The weighted average medical care cost trend rate was 9.25 % for 1997, decreasing gradually to 5.75% through the year 2005 and remaining at that level thereafter. 13-C ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------- INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any accounts thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. - --------------------- --------------------------------------------------------- The components of the plans' net costs are shown below (in thousands): 1997 ------------------- Medical Life ------- ----- Benefits earned during the year $138 $ 41 Net Amortization and Deferrals (14) (8) Interest costs on accumulated projected benefit obligation 129 55 ----- ---- Net postretirement costs $ 253 $ 88 ===== ==== Deferred Compensation Plans In 1993, SEI began to partially compensate certain senior management through a stock formula plan, which seeks to reward individuals for the performance of the investments of SEI and its affiliated companies over a period of four years, relative to the performance of SEI and Southern Company. Effective January 1, 1997 the Amended and Restated Deferred Incentive Compensation Plan and the Value Creation Plan were enacted. The purposes of the Southern Energy, Inc. Amended and Restated Deferred Incentive Compensation Plan is to provide a financial incentive which will focus the efforts of certain executives on areas which will have a direct and significant influence on the corporate performance of Southern Energy Resources, Inc. and to provide the potential for levels of compensation which will enhance the ability of the Company to attract, retain and motivate such executives. The Value Creation Plan grants Stock Appreciation Rights that grow as SEI's value grows, and can be exercised for the full appreciation amount after four years (when the SAR's are fully vested). The amount of the grant is based on market data for a given job, adjusted for Southern Energy's performance compared to net income and return on investment goals, as determined by Management Council and approved by the Southern Company Compensation Committee. Participants credited with an account balance at December 31, 1996 under the terms of the original deferred compensation plan have had such balances converted into awards under this new plan based on the dollar value of such account as of December 31, 1996 as determined under the terms of the original plan. Thereafter, the converted award shall continue to vest in accordance with their original terms under the original plan but shall be adjusted annually based on SEI Value alone. As the value of the award is not known until the vesting date, SEI accounts for this formula plan as a variable plan; as such, the Company regularly assesses the current value of the awards and adjusts its accrued liability accordingly. At December 31, 1997 the Company had accrued approximately $3,923,627 related to this plan, which are included in long-term liabilities in the accompanying consolidated balance sheets. In addition to the stock formula plan for senior officers, SEI partially compensates employees associated with a specific successful project bid effort through a deferred cash compensation program. Upon successful completion of a bid, members directly affiliated with the effort receive a cash bonus, half of which is paid immediately and half of which is deferred for a period of two years and paid based on the actual performance of the related investment. SEI accrues amounts at the time the award is granted and adjusts the liability accordingly when awards vest and are paid. At December 31, 1997 the Company had accrued approximately $1,378,898 related to this plan, which is included in other accrued liabilities in the accompanying consolidated balance sheets. SEI paid approximately $1,017,175 to employees under this plan during 1997 related to successful bids in 1997. 13-D ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------- INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any accounts thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. - ------------------------------------------------------------------------------ 3. OPERATING LEASES SEI has entered into noncancelable operating leases for office space. The expenses under these leases were approximately $1,365,000 in 1997. These leases contain certain concessions and escalations; therefore, rent expense is recognized on a straight-line basis over the lease terms. The future rental obligations for the remaining lease terms are as follows (in thousands): 1998 $1,966 1999 2,072 2000 1,960 2001 691 2002 638 Thereafter 1,330 ------ Total minimum lease commitments $8,657 ====== 4. RELATED-PARTY TRANSACTIONS Additional Equity Contributions Southern Energy, Inc. (formerly SEI Holdings) contributed approximately $28,867,000 and $74,260,000 in 1996 and 1997, respectively to paid-in capital. Construction Activities During 1994, SEI was engaged by an affiliated company to construct a coal-fired cogeneration facility and related greenhouse in King George County, Virginia, the construction of which was completed during 1997. The fixed contract price for the construction of these facilities is $292,040,000. Services SEI has agreements with Southern Company Services, Inc. and each of the system operating companies under which those companies provide the following services to SEI at cost: general engineering, design engineering, accounting and statistical budgeting, business promotion and public relations, systems and procedures, training, and administrative and financial services. In addition to these services, certain facilities of the system companies are made available to SEI and its customers. SEI reimburses the service company and the various operating companies at cost for these services. Such costs in 1997 and 1996 amounted to approximately $ 31,417,464 and $ 21,958,358, respectively. 13-E ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------- INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any accounts thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. SEI has a contract with Mobile Energy, an affiliated entity to operate and maintain an energy complex in Mobile, Alabama for a period of 25 years at cost. SEI has a similar agreement with Birchwood Power Partners, L.P. ("BPP") to operate and maintain its 220 megawatt coal-fired cogeneration facility located in King George County, Virginia, for a period of 25 years for a fee of $120,000 per year, adjusted annually for inflation. 5. CONTINGENCIES Litigation With Former President In October 1991, a former SEI president filed suit in the Superior Court of DeKalb County (Georgia) against Southern, SEI, and an executive vice president of Southern. The plaintiff alleged defamation, breach of contract, and intentional infliction of emotional distress arising from his termination as president of SEI. Judgment in favor of the plaintiff was awarded by the court during 1994 in the amount of $2,700,000, plus legal costs of approximately $2,000,000. In 1994, SEI filed an insurance claim for an amount equal to the total judgment. The Company's insurer has elected to appeal the Superior Court's judgment. In the opinion of management, any portion of the judgment ultimately deemed uninsurable will not have a material adverse impact on the results of operations or financial position of the Company. Labor Subject to Collective Bargaining Agreements Substantially all of the employees engaged in the operations and maintenance contract with Mobile Energy are subject to collective bargaining agreements, none of which expire during 1997. Other Matters The Company is subject to other legal actions and claims arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse impact on the results of operations or financial position of the Company. 14 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- SCHEDULE XV STATEMENT OF INCOME - ------------------------------------------------------------------------------- CURRENT PRIOR ACCOUNT DESCRIPTION YEAR YEAR - ------------------------------------------------------------------------------- INCOME 457 Charges rendered to associate companies - - 458 Services rendered to non-associate companies 58,760 70,339 421 Miscellaneous income or loss 776 710 ------ ------ Total Income 59,536 71,049 ------ ------ EXPENSES 920 Salaries and wages 15,589 19,921 921 Office supplies and expenses 5,750 7,715 922 Administrative expense transferred - credit (20,912) (8,316) 923 Outside services employed 35,546 73,125 924 Property insurance 176 317 925 Injuries and damages 237 205 926 Employee pensions and benefits 18,927 8,262 928 Disposition of intellectual property - - 930.1 General advertising expense 26 110 930.2 Miscellaneous general expenses 1,596 1,204 931 Rents 3,654 2,012 932 Maintenance of structures and equipment 1,404 1,340 403 Depreciation and amortization expense 1,295 1,246 408 Taxes other than income taxes 4,075 4,086 409 Income taxes (7,235) (1,721) 410 Provision for deferred income taxes 14,107 (10,264) 411 Provision for deferred income taxes - credit (9,875) (1,837) 411.5 Investment tax credit - - Foreign taxes 186 112 426.1 Donations 150 61 426.5 Other deductions - 2 427 Interest on long-term debt 779 31 430 Interest on debt to associate companies - - 431 Other interest expense - - ------ ------- Total Expense 65,475 97,611 ------ ------- Net Income or (Loss) (5,939) (26,562) ------ ------- INSTRUCTION: Provide a schedule briefly describing types of intercompany transactions. TRANSACTIONS WITH ASSOCIATE COMPANIES SEI has agreements with Southern Company Services, Inc. and each of the system operating companies under which those companies provide the following services to SEI at cost: general engineering, design engineering, accounting and statistical, rates, budgeting, business promotion and public relations, systems and procedures, training, administrative, and financial services. In addition to these services, certain facilities of the system companies are made available to SEI and its customers. The service company and operating companies provide technical direction and management of the services provided to SEI and its customers. SEI reimburses the service company and operating companies at cost for these services. 15 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------ ANALYSIS OF BILLINGS CHARGES FOR INTELLECTUAL PROPERTY TO ASSOCIATE COMPANIES ACCOUNT 457 - ------------------------------------------------------------------------------ TOTAL NAME OF ASSOCIATE COMPANY AMOUNT BILLED - ------------------------------------------------------------------------------- Not Applicable --- TOTAL - 16 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ------------------------------------------------------------------------------- ANALYSIS OF BILLING NON-ASSOCIATE COMPANIES ACCOUNT 458 - ------------------------------------------------------------------------------- DESCRIPTION TOTAL COST EXCESS OR DEFICIENCY TOTAL AMOUNT BILLED ----------- --------- ------------------- ------------- Consulting & Engineering (1) 3,686 53 3,739 Information Systems - - - Nuclear - - - Franchises & Other - - - Operations 7,892 (1,870) 6,022 Project Management - - - Construction (2) 6,343 29,710 36,054 Pooled Inventory Management (PEICO) - - - Good Cents - - - ------ ------ ------ TOTAL 17,922 27,893 45,815 ------ ------ ------ INSTRUCTION: Provide a brief description of the sales and services rendered by category in accordance with your sales and service contracts and list the amounts applicable per category. 1) Consulting & Engineering includes Revenues and Costs relative to the Virgin Islands Storm Restoration project as a result of Hurricane Marilyn. The totals for 1997 are as follows: Costs 11 Excess / Efficiency (62) ------- Amount Billed (51) 2) Construction revenues are associated with the construction of the Birchwood EPC facility.
17 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 - ----------------------------------------------------------------------------------------------------------------- SCHEDULE XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION - ----------------------------------------------------------------------------------------------------------------- DESCRIPTION OF ITEMS TOTAL AMOUNT OVERHEAD SEI Operadora Asia & GmbH - ----------------------------------------------------------------------------------------------------------------- 920 SALARIES AND WAGES 15,589 15,544 - 45 921 OFFICE SUPPLIES AND EXPENSES 5,750 5,691 - 58 922 ADMIN EXP TRANSFERRED - CREDIT (20,912) (20,912) - - 923 OUTSIDE SERVICES EMPLOYED 35,546 34,906 323 317 924 PROPERTY INSURANCE 176 176 - - 925 INJURIES AND DAMAGES 237 237 - - 926 EMPLOYEE PENSIONS AND BENEFITS 18,927 18,927 - - 928 DISPOSITION OF INTELLECTUAL PROP. - - - - 930.1 GENERAL ADVERTISING EXPENSE 26 26 - - 930.2 MISCELLANEOUS GENERAL EXPENSE 1,596 730 - 865 931 RENTS 3,654 2,216 - 1,438 932 MAINTENANCE OF STRUCTURES & EQUIP 1,404 1,404 - - 403 DEPRECIATION & AMORTIZATION EXP 1,295 1,248 - 47 408 TAXES OTHER THAN INCOME TAX 4,075 4,051 - 25 409 INCOME TAXES (7,235) (7,235) - - 410 PROVISION FOR DEFERRED INCOME TAX 14,107 14,107 - - 411 PROV DEFERRED INCOME TAX - CREDIT (9,875) (9,875) - - FOREIGN TAXES 186 - 186 - 411.5 INVESTMENT TAX CREDIT - - - - 426.1 DONATIONS 150 150 - - 426.5 OTHER DEDUCTIONS - - - - 427 INTEREST ON LONG TERM DEBT 779 779 - - 430 INTEREST ON DEBT TO ASSOCIATE CO. - - - - 431 OTHER INTEREST EXPENSE - - - - - - INSTRUCTION: Indicate each department or service function. 65,475 62,170 510 2,795 (See instruction 01-3 Gen'l Structure of Acc'ting Structure System: Uniform System Account. TOTAL EXPENSES
18 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31, 1997 SCHEDULES OF EXPENSE DISTRIBUTION BY DEPARTMENT OR FUNCTION - ------------------------------------------------------------------------------ ACCOUNT NUMBER DEPARTMENT OR FUNCTION - ------------------------------------------------------------------------------ 920 Not needed 921 922 923 924 925 926 928 930.1 930.2 931 932 403 408 409 410 411 411.5 426.1 426.5 427 430 431 19 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 DEPARTMENTAL ANALYSIS OF SALARIES ACCOUNT 920 SALARY NUMBER NAME OF DEPARTMENT OR SERVICE FUNCTION EXPENSE PERSONNEL - -------------------------------------- ------- --------- Indicate each department or service function TOTAL AMOUNT END OF YEAR SOUTHERN ENERGY RESOURCES, INC. 15,589 525 TOTAL 15,589 525 20 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 - ------------------------------------------------------------------------------- DISPOSITION OF INTELLECTUAL PROPERTY ACCOUNT 928 - ------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 928, "Disposition of Intellectual Property", classifying such expenses by associate company receiving compensation for Disposition of Intellectual Property. ASSOCIATE COMPANY AMOUNT Not Applicable --- TOTAL - 21 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 - ------------------------------------------------------------------------------ MISCELLANEOUS GENERAL EXPENSES ACCOUNT 930.2 - ------------------------------------------------------------------------------ INSTRUCTIONS: Provide a listing of the amount in Account 930.2, "Miscellaneous General Expenses", classifying such expense according to their nature. Payments and expenses permitted by Section 321 (b) (2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C.S. 441 (b)(2)shall be separately classified.
DESCRIPTION AMOUNT ----------- ------ Dues and Memberships 581 Miscellaneous General Expense for : 1,003 Storage of records Jan - Dec 97 Birchwood Construction Costs Inside move of Accounting and Construction Staff Misc. purchases from the Atlanta Novelty Company Annual license, certification & registration fees Bank & wire transfer fee Holiday Gala Expenses Kitchen/Bathroom Supplies Office cleaning Petty cash expense Miscellaneous Other Expenses Bad Debt Expense 12 ----- TOTAL 1,596 -----
22 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 - ------------------------------------------------------------------------------- TAXES OTHER THAN INCOME TAXES ACCOUNT 408 - ------------------------------------------------------------------------------- INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income Taxes". Separate the analysis into two groups: (1) other than U.S. Government taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes and show the amounts thereof. Provide a subtotal for each class of tax. K I N D O F T A X AMOUNT - ------------------------------------------------------------------------------- Other than U.S. Government: State Unemployment Real Estate and Personal Property 62 Other State and Local Taxes and Licenses 84 Sales Tax 8 Argentina Withholding Tax expense - Chile Withholding Tax expense 1,359 Mexico Expatriate Social Security Tax - Employer - Australia Expatriate Income tax - Employer - Puerto Rico Income Tax - Employee Differential - Austria Income Tax - Employee Differential 44 Use Tax - Expatriate Taxes 345 ----- Subtotal 1,902 ----- U. S. Government: FICA - Employers Portion 2,082 FUTA 31 SUTA 60 ----- Subtotal 2,173 ----- TOTAL 4,075 ----- 23 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 - ------------------------------------------------------------------------------ DONATIONS ACCOUNT 426.1 - ------------------------------------------------------------------------------ INSTRUCTIONS: Provide a listing of the amount included in Account 426.1 "Donations", classifying such expenses by its purpose. The aggregate number and amount of all items less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT ------------------ -------------------- -------- 32 Items ( Less than $3,000 each) Employer Gift Matching Contributions 18 United Way of Metropolitan Atlanta Corporate Contribution 16 Boy Scouts of America Atlanta Area Council 25 Atlanta Classic Foundation Inc. Bell South Golf Tournament 7 Zoo Atlanta Table 1997 Beastly Feast Festival 4 Carter Center China Project 10 Robert College of Istanbul Charitable Contribution 5 Have A Heart thru Art Northshore Jazz Festival 5 Carter Center Latin American Program 15 Greater Houston Partnership Sponsorship Dinner 3 Forward Atlanta Forward Atlanta Campaign 5 Peoples National Party of Jamaica Contribution 10 Columbus House for Teenage Boys Contribution 3 Grand Bahama Children Homes Contribution 3 So Center for International Study Fall Reception 3 American Foundation Univ West Indies 1/2 page Journal 10 Atlanta Classic Foundation Gold Circle Pro Am 8 --- TOTAL 150 ---
24 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 - ------------------------------------------------------------------------------ OTHER DEDUCTIONS ACCOUNT 426.5 - ------------------------------------------------------------------------------ INSTRUCTIONS: Provide a listing of the amount included in Account 426.5 "Other Deductions", classifying such expenses according to their nature. AMOUNT DESCRIPTION NAME OF PAYEE BILLED - -------------------------------------------- ---------------------------------- State & Local - Penalties /Fines 1.00 Federal - Penalties / Fines 1.00 ---- TOTAL 2.00 ---- 25 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 - ------------------------------------------------------------------------------- SCHEDULE XVIII NOTES TO STATEMENT OF INCOME - ------------------------------------------------------------------------------- INSTRUCTIONS: The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increase in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. Account 922 Administrative expense transferred: This account changed significantly in 1997 due to a corresponding increase in related affiliate billings. Account 923 Outside services employed: This account decreased due to the slowdown in Birchwood Construction in 1997. Account 926 Employee pensions and benefits: The expenses associated with this account are higher in 1997 due to an underaccrual of benefits in 1996 which was corrected in the current year. This increase corresponds to the increase in 1997 gross salaries. 26 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. For the Year Ended December 31,1997 - ------------------------------------------------------------------------------ SCHEDULE XIX OUTSIDE SERVICES EMPLOYED 923 INSTRUCTIONS: Provided below is a break down of outside services employed. 1997 1996 ---- ---- Legal Fees 7,313 8,377 Accounting and Audit Fees 267 152 Alabama Power Company 19 548 Georgia Power Company 372 2,932 Gulf Power Company 53 125 Mississippi Power Company 51 137 Southern Company Services 6,473 7,897 Savannah Electric Company 3 198 Southern Development & Investment Group 4 190 Other Outside Companies 1) 20,991 52,569 Joint Venture SEI/Daniel - - ------ ------- TOTAL 35,546 73,125 1) Detail of Other Outside Companies for 1997 is as follows: Consulting Meals 28 Engineering 78 Underwriter Fees 163 Computer consulting 146 Temporary office services 517 Consulting (non financial) 12,138 Construction subcontractors (Birchwood) 2,900 Other plant operations 5 Financial consulting 3,860 Other Outside Companies - Sual / CEPA Procurement 1,724 Charges billed for audit & professional services 1,432 provide to various SEI projects Operadora expenses 323 Asia expenses 282 Eliminate intercompany expenses (2,841) Other (agent fees, license renewals, etc.) 236 ------- TOTAL 20,991 27 ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. ORGANIZATION CHART OF SOUTHERN ENERGY RESOURCES, INC. Tom Boren/President and CEO S. Marce Fuller / Senior Vice President, North America Division Steve Gillis / Finance Director Randy Harrison / Vice President David Gallaspy / Vice President Alan W. Harrelson / Vice President Joe Pokalsky / Vice President, Energy Trading & Marketing Roger Benefield / Business Unit Manager, Stateline Dick Koch / Business Unit Manager, Mobile George P. Henefeld / Business Unit Manager, Birchwood Raymond D. Hill / Senior Vice President Corporate Services Division and Chief Financial Officer Tommy Chisholm / Vice President and Corporate Secretary Vance Booker / Vice President, Administration J.R. Harris / Vice President, External Affairs Bill Maner, III / Vice President Karl Olsoni / Vice President and Treasurer James Ward / Vice President and Controller David R Rozier, Jr. / Assistant Comptroller Richard Pershing / Senior Vice President, International Division Kim Heinz / Manager, Market Evaluation Gale Klappa / President and CEO, South Western Electricity plc Tom Allen / Manager, Economic Development Bill Holden / Vice President, Operations & Development Bob Richwine / Chief Consultant Dave Dunbar / Manager, Consulting Services Barney Rush / Vice President, SEI Europe, Inc. Ron Leggett / Vice President, International Operations ORGANIZATION CHART OF SEI OPERADORA DE ARGENTINA, S.A. J. William Holden, III/ President of the Board Ricardo Falabella / Vice President of the Board Mariano F. Grondona/Secretary of the Board ORGANIZATION CHART OF SEI BETEILIGUNGS GmbH Thomas G. Boren / Managing Director Barney Rush / Managing Director James A. Ward / Managing Director ORGANIZATION CHART OF SEI ASIA Thomas G. Boren / President Raymond D. Hill / Vice President & Chief Financial Officer James A. Ward / Treasurer Tommy Chisholm / Secretary & Assistant Treasurer Sam H. Dabbs, Jr. / Assistant Secretary ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC. SIGNATURE CLAUSE Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and in accordance with release numbers 22132, and order number 70-6599, dated July 17, 1981, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized. SOUTHERN ENERGY RESOURCES, INC. Name of Reporting Company By: (Signature of Signing Officer) James A. Ward, Controller (Printed Name and Title of Signing Officer) Date: April 29, 1998 EX-99 3 EXHIBIT B-28 Exhibit B-28 Adopted by the Southern Nuclear board of directors on May 21, 1991: RESOLVED, that Article V, Section 2. of the By-Laws of the Company is hereby revised as follows: Section 2. Duties of the Chairman of the Board. The Chairman of the Board shall be the Corporation's chief executive officer and shall have general authority over the business and affairs of the Corporation, subject to the control and direction of the board. He shall report to the Board of Directors and shall see that all orders and resolutions of the board of directors and of the executive committee are carried into effect. The Chairman of the Board shall preside at all meetings of the stockholders and Board of Directors. He shall have authority to execute bonds, mortgages, and other contracts requiring a seal, under the seal of the Corporation; he shall have power to endorse, when sold, assigned, transferred or otherwise disposed of by Corporation, all certificates or shares of stock, bonds, or other securities issued by other corporations, associations, trust, whether public or private, or by any government or agency thereof, and owned or held by the Corporation, and to make, execute and deliver all instruments of assignment or transfer of any such stocks, bonds or other securities. He may, with the approval of the board, or shall, at the Boards' discretion, delegate any or all of such duties to the President. RESOLVED FURTHER, that Article V, Section 3. of the By-Laws of the Company is hereby revised to read as follows: Section 3. Duties of the President. The President shall be the Corporation's chief operating officer and shall be responsible for all of the operations of the Corporation and shall report to the Chairman of the Board. The President shall, under the direction of the Chairman of the Board, have general supervision and direction of the other officers, employees and agents of the Corporation and shall see that their duties, as assigned by the Board, are properly performed. He shall designate and assign the duties of the officers under his supervision, with the approval of the Chairman of the Board or at his direction. The President shall have authority to execute bonds, mortgages and other contracts requiring a seal, under the seal of the Corporation; he shall have power to endorse, when sold, assigned, transferred or otherwise disposed of by the Corporation, all certificates for shares, bonds, or other securities or other evidences of indebtedness issued by other corporations, associations, trusts, whether public or private, or by any government or agency thereof, and owned or held by the Corporation and to make, execute and deliver all instruments or assignments or transfers of any such stocks, bonds, or other securities. In the absence of the Chairman of the Board, the President shall have full authority to do any and all things delegated to the Chairman of the Board by the Board of Directors or by any committee of the Board having authority. The President will perform all of the duties and have all of the authority of the Chairman of the Board in the absence of the Chairman of the Board. RESOLVED FURTHER, that Article V, Section 6. of the By-Laws of the Company is hereby revised to read as follows: Section 6. Comptroller. The Comptroller shall be the chief accounting officer of the Corporation and shall be responsible for maintaining adequate records of all assets, liabilities, and accounting transactions of the corporation; he shall have charge of the installation and supervision of all accounting and statistical records, the preparation of all financial and statistical statements and reports; and the supervision of the accounting methods, systems and forms in use by all departments and shall perform such other duties as may be assigned to him from time to time by the board of directors, the executive committee, the chairman of the executive committee, the chairman of the board, the president, or a vice-president. Adopted by the Southern Nuclear board of directors on May 11, 1992: RESOLVED, that the revisions to Article V, Section 2. of the By-Laws of the Company, Duties of the Chairman of the Board, which were adopted by resolution of the Board on May 21, 1991 are hereby rescinded; RESOLVED FURTHER, that the revisions to Article V, Section 3. of the By-Laws of the Company, Duties of the President, which were adopted by resolution of the Board on May 21, 1991 are hereby rescinded; Adopted by the Southern Nuclear board of directors on May 3, 1993: RESOLVED, that Article V, Section 2. of the By-Laws of the Company is hereby revised to read as follows: Section 2. Duties of the Chairman of the Board. The Chairman of the Board shall be the Corporation's chief executive officer and shall have general authority over the business and affairs of the Corporation, subject to the control and direction of the board. He shall report to the board of directors and shall see that all orders and resolutions of the board of directors and of the executive committee are carried into effect. The Chairman of the Board shall preside at all meetings of the stockholders and board of directors. He shall have authority to execute bonds, mortgages, and other contracts requiring a seal, under the seal of the Corporation; he shall have power to endorse, when sold, assigned, transferred or otherwise disposed of by the Corporation, all certificates or shares of stock, bonds, or other securities issued by other corporations, associations, trusts, whether public or private, or by any government or agency thereof, and owned or held by the Corporation, and to make, execute and deliver all instruments of assignment or transfer of any such stocks, bonds or other securities. He may, with the approval of the board, or shall, at the board's discretion, delegate any or all of such duties to the President. RESOLVED, that Article V, Section 3. of the By-Laws of the Company is hereby revised to read as follows: Section 3. Duties of the President. The President shall be the Corporation's chief operating officer and shall be responsible for all of the operations of the Corporation and shall report to the Chairman of the Board. The President shall, under the direction of the Chairman of the Board, have general supervision and direction of the other officers, employees and agents of the Corporation and shall see that their duties, as assigned by the board, are properly performed. He shall designate and assign the duties of the officers under his supervision, with the approval of the Chairman of the Board or at his direction. The President shall have authority to execute bonds, mortgages and other contracts requiring a seal, under the seal of the Corporation; he shall have power to endorse, when sold, assigned, transferred or otherwise disposed of by the Corporation, all certificates for shares, bonds, or other securities or other evidences of indebtedness issued by other corporations, associations, trusts, whether public or private, or by any government or agency thereof, and owned or held by the Corporation and to make, execute and deliver all instruments of assignment or transfer of any such stocks, bonds, or other securities. In the absence of the Chairman of the Board, the President shall have full authority to do any and all things delegated to the Chairman of the Board by the board of directors or by any committee of the board having authority. The President will perform all of the duties and have all of the authority of the Chairman of the Board in the absence of the Chairman of the Board. Adopted by the Southern Nuclear board of directors on December 6, 1993: RESOLVED, that Article VIII of the By-Laws of the Company is hereby revised in its entirety to read as follows: ARTICLE VIII Indemnification Each person who is or was a director of the corporation or officer or employee of the corporation holding one or more positions of management through and inclusive of department managers (but not positions below the level of department managers) (such positions being hereinafter referred to as "Management Positions") and who was or is a party or was or is threatened to be made a party to any threatened, pending or completed claim, action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that said person is or was a director of the corporation or officer or employee of the corporation holding one or more Management Positions, or is or was serving at the request of the corporation as a director, officer, employee, agent or trustee of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, shall be indemnified by the corporation as a matter of right against any and all expenses (including attorneys' fees) actually and reasonably incurred by said person and against any and all claims, judgments, fines, penalties, liabilities and amounts paid in settlement actually incurred by said person in defense of such claim, action, suit or proceeding, including appeals, to the full extent permitted by applicable law. The indemnification provided by this Article shall inure to the benefit of the heirs, executors and administrators of said person. Expenses (including attorneys' fees) incurred by a director of the corporation or officer or employee of the corporation holding one or more Management Positions with respect to the defense of any such claim, action, suit or proceeding may be advanced by the corporation prior to the final disposition of such claim, action, suit or proceeding, as authorized by the board of directors in the specific case, upon receipt of an undertaking by or on behalf of said person to repay such amount unless it shall ultimately be determined that said person is entitled to be indemnified by the corporation under this Article or otherwise; provided, however, that the advancement of such expenses shall not be deemed to be indemnification unless and until it shall ultimately be determined that said person is entitled to be indemnified by the corporation. The corporation may purchase and maintain insurance at the expense of the corporation on behalf of any person who is or was a director, officer, employee or agent of the corporation, or any person who is or was serving at the request of the corporation as a director (or the equivalent), officer, employee, agent or trustee of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, against any liability or expense (including attorneys' fees) asserted against said person and incurred by said person in any such capacity, or arising out of said person's status as such, whether or not the corporation would have the power to indemnify said person against such liability or expense under this Article or otherwise. Without limiting the generality of the foregoing provisions of this Article, no present or future director or officer of the corporation, or his heirs, executors, or administrators, shall be liable for any act, omission, step, or conduct taken or had in good faith, which is required, authorized, or approved by any order or orders issued pursuant to the Public Utility Holding Company Act of 1935, the Federal Power Act, or any federal or state statute or municipal ordinance regulating the corporation or its parent by reason of their being holding or investment companies, public utility companies, public utility holding companies, or subsidiaries of public utility holding companies. In any action, suit, or proceeding based on any act, omission, step, or conduct, as in this paragraph described, the provisions hereof shall be brought to the attention of the court. In the event that the foregoing provisions of this paragraph are found by the court not to constitute a valid defense on the grounds of not being applicable to the particular class of plaintiff, each such director and officer, and his heirs, executors, and administrators, shall be reimbursed for, or indemnified against, all expenses and liabilities incurred by said person or imposed on said person, in connection with, or arising out of, any such action, suit, or proceeding based on any act, omission, step, or conduct taken or had in good faith as in this paragraph described. Such expenses and liabilities shall include, but shall not be limited to, judgments, court costs, and attorneys' fees. The foregoing rights shall not be exclusive of any other rights to which any such director or officer or employee may otherwise be entitled and shall be available whether or not the director or officer or employee continues to be a director or officer or employee at the time of incurring any such expenses and liabilities. Adopted by the Southern Nuclear board of directors on December 13, 1993: RESOLVED, that the revisions to Article V, Section 2. of the By-Laws of the Company, Duties of the Chairman of the Board, which were adopted by resolution of the Board on May 3, 1993 are hereby rescinded; RESOLVED FURTHER, that the revisions to Article V, Section 3. of the By-Laws of the Company, Duties of the President, which were adopted by resolution of the Board on May 3, 1993 are hereby rescinded; EX-99 4 EXHIBIT D-2 EXHIBIT D-2 INCOME TAX ALLOCATION AGREEMENT FORTY-THIRD AMENDMENT Southern Energy Retail Trading and Marketing, Inc. was incorporated in 1997 and is wholly owned by Southern Energy Trading and Marketing, Inc. Southern Energy Retail Trading and Marketing, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29TH day of January, 1998. ATTEST Southern Energy Retail Trading and Marketing, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FORTY-FOURTH AMENDMENT Southern Company Capital Funding, Inc. was incorporated in 1997 and is wholly owned by SEI Holdings, Inc. Southern Company Capital Funding, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST Southern Company Capital Funding, Inc. Tommy Chisholm BY: C. O. Rawlins INCOME TAX ALLOCATION AGREEMENT FORTY-FIFTH AMENDMENT SEI Germany - BEWAG, Inc. was incorporated in 1997 and is wholly owned by Southern Energy International, Inc. SEI Germany - BEWAG, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST SEI Germany - BEWAG, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FORTY-SIXTH AMENDMENT Southern Energy Clairton, Inc. was incorporated in 1997 and is wholly owned by Southern Energy Finance Company, Inc. Southern Energy Clairton, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST Southern Energy Clairton, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FORTY-SEVENTH AMENDMENT Southern Energy Clairton 2, Inc. was incorporated in 1997 and is wholly owned by Southern Energy Finance Company, Inc. Southern Energy Clairton 2, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST Southern Energy Clairton 2, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FORTY-EIGHTH AMENDMENT Alabama Energy Providers, Inc. was incorporated in 1997 and is wholly owned by Alabama Power Company. Alabama Energy Providers, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 16th day of March, 1998. ATTEST Alabama Energy Providers, Inc. Anita A. Baker BY: Art P. Beattie INCOME TAX ALLOCATION AGREEMENT FORTY-NINTH AMENDMENT SEI Worldwide Holdings, Inc. was incorporated in 1997 and is wholly owned by Southern Energy International, Inc. SEI Worldwide Holdings, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST SEI Worldwide Holdings, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FIFTIETH AMENDMENT SC Ashwood Holdings, Inc. was incorporated in 1997 and is wholly owned by Southern Energy Trading and Marketing, Inc. SC Ashwood Holdings, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST SC Ashwood Holdings, Inc. Tommy Chisholm BY: James A. WArd Assistant Secretary INCOME TAX ALLOCATION AGREEMENT FIFTY-FIRST AMENDMENT State Line Holding Corporation was incorporated in 1997 and is wholly owned by SEI State Line, Inc. State Line Holding Corporation does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST State Line Holding Corporation Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FIFTY-SECOND AMENDMENT Southern Electric International, Inc. was incorporated in 1997 and is wholly owned by SEI Holdings, Inc. Southern Electric International, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST Southern Electric International, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FIFTY-THIRD AMENDMENT SC Energy Ventures, Inc. was incorporated in 1997 and is wholly owned by Southern Energy Retail Trading and Marketing, Inc. SC Energy Ventures, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST SC Energy Ventures, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FIFTY-FOURTH AMENDMENT Southern Energy - Asia, Inc. was formed in 1996 and is wholly owned by Southern Energy International, Inc. Southern Energy - Asia, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997 and subsequent years. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST Southern Energy - Asia, Inc. Tommy Chisholm BY: James A. Ward INCOME TAX ALLOCATION AGREEMENT FIFTY-FIFTH AMENDMENT Eskom Lease, Inc. was formed in 1997 and is wholly owned by Southern Energy Finance Company, Inc. Eskom Lease, Inc. does hereby declare and agree to the terms and conditions provided in the Income Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988. Effective Date This Agreement is effective for the Consolidated Tax reflected on the Consolidated Tax Return for 1997. IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of January, 1998. ATTEST Eskom Lease, Inc. Tommy Chisholm BY: James A. Ward EX-99 5 EXHIBIT E-2 EXHIBIT E-2 FINANCIAL SERVICES/ASSISTANCE Energy-Saving Equipment Loans Purpose Southern Company's Employee Energy Express Loan Program, marketed through Southern Development, is intended to encourage participation in product promotion programs by providing interest-free home energy loans for the installation of energy efficient facilities and imporovements at employees' residences (new or existing). Eligibility You are eligible to participate in the Energy Loan Program is you are: a regular full-time or regular part-time employee with at least six months of service on long-term disability a retired employee a surviving spouse of an active or retired employee The financing is limited to primary homes only (no second or vacation homes) and you must own and occupy or be purchasing the home. Manufactured homes qualify is fermanently located on land owned by you or leased from a Southern Compnay subsidiary. Benefits You may apply for a loan to pay for energy saving equipment and improvements for your home. These interest-free loans are available for any amount from $1,500to $15,000 and can be finance for year-long intervals from two to seven years. Repaying the loan You pay back your loan through bi-monthly payroll deduction. If you ar a retiree, on LTD or a surviving spouse, your payment are remitted directly to Southern Development via coupon. You may pay off the balance of the loan at any time without penalty. Responsibility The Manager of Residential Marketing is responsible for providing energy efficience specification to employees upon request. EX-99 6 EXHIBIT H
EXHIBIT H EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Southern Energy, Inc. (formerly SEI Holdings, Inc.) (Holdings) (100% - The Southern Company) Southern Energy Resources, Inc. (formerly Southern Energy, Inc. (Project Development) (100% - Holdings) SEI Operadora de Argentina, S.A. (FUCO) (99.99% - Southern Energy Resources, Inc.; .01% - Holdings) Southern Electric International Asia, Inc. (Special Purpose Subsidiary - Project Development) (100% - Southern Energy Resources, Inc.) Southern Electric International, GmbH (Special Purpose Subsidiary - Project Development) (100% - Southern Energy Resources, Inc.) Asociados de Electricidad, S.A. (Intermediate Subsidiary) (100% Holdings) Southern Electric International, Inc. (Intermediate Subsidiary) (100 % Holdings) Southern Electric, Inc. (EWG) (100% - Holdings) Southern Energy North America, Inc. (Domestic Holdings) (100% - Holdings) Southern Energy Trading and Marketing, Inc. (Energy-Related Company) (100% - Southern Energy North America, Inc.) SC Energy Ventures, Inc. (Intermediate Subsidiary) (100% - Southern Energy Trading and Marketing, Inc.) Southern Company Energy Marketing L.P. (Energy-Related Company) (59.4% - SC Energy Ventures, Inc.; 39.6% - Domestic Corporation; 1% - Southern Company Energy Marketing G.P., L.L.C.) Southern Company Retail Energy Marketing L.P. (Energy-Related) (99% - Southern Company Energy Marketing L.P.; 1% - Southern Company Energy Marketing G.P., L.L.C.) Southern Energy Retail Trading and Marketing, Inc. (Energy-Related Company) (100% - Southern Energy Trading and Marketing, Inc.) SC Ashwood Holdings, Inc. (Intermediate Subsidiary) (100% - Southern Energy Trading and Marketing, Inc.) Southern Company Energy Marketing G.P., L.L.C. (Intermediate Subsidiary) (60% - SC Ashwood Holdings, Inc.; 40% - Domestic Corporation) SEI Birchwood, Inc. (Intermediate Subsidiary) (100% - Southern Energy North America, Inc.) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy North-America, Inc. - CONTINUED SEI Birchwood, Inc. - CONTINUED Birchwood Power Partners, LP (EWG) (50% - SEI Birchwood, Inc.; 50% - Domestic Corporation) Greenhost, Inc. (Authorized by Order of 11/20/96)) (50% - SEI Birchwood, Inc.; 50% - Domestic Corporation) SEI Hawaiian Cogenerators, Inc. (EWG) (100% - Southern Energy North America, Inc.) Southern Energy-Cajun, Inc. (Intermediate Subsidiary) (100% - Southern Energy North America, Inc.) Louisiana Generating, LLC (Intermediate Subsidiary) (40% - Southern Energy-Cajun, Inc.; 60% - Domestic Corporations) SEI State Line, Inc. (Intermediate Subsidiary) (100% - Southern Energy North America, Inc.) State Line Holding Corporation (Intermediate Subsidiary) (100% - SEI State Line, Inc.) State Line Energy, L.L.C. (EWG) (60% - SEI State Line, Inc.; 40% - State Line Holding Corporation) Southern Energy International, Inc. (Foreign Holdings) (100% - Holdings) Southern Energy do Brazil Ltda. (Special Purpose Subsidiary - Project Development) (99.85% - Southern Energy International, Inc.; .15% - Southern Energy Resources, Inc.) Southern Energy - Asia, Inc. (Intermediate Subsidiary) (100% - Southern Energy International, Inc.) Consolidated Electric Power Asia Limited (Special Purpose Subsidiary) (NOTE 1) (80.004% - Southern Energy - Asia, Inc.; 19.996% Foreign Corporation) (NOTE 2) Hopewell Energy International Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Hopewell Power (Philippines) Corp. (FUCO) (87.22% - Hopewell Energy International Limited; 12.78% Foreign Company) Hopewell Energy Limited (Intermediate Subsidiary) (80% - Consolidated Electric Power Asia Limited; 20% Foreign Company) Guangdong Guanghope Power Co., Ltd (FUCO) (40% - Hopewell Energy Limited; 60% Foreign Company) Hopewell Project Management Company Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited ) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Energy Asia, Inc. - CONTINUED Consolidated Electric Power Asia Limited - CONTINUED Hopewell Project Management Company Limited - CONTINUED Hopewell Energy (Philippines) Corp. (FUCO) (60.1%- Hopewell Project Management Company, Limited; 39.9% -Foreign Company) Navotas II (BVI) Holdings Corp (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Hopewell Tileman (Philippines) Corp. (FUCO) (100% - Navotas II Holdings Corp.) CEPA Mobile Power Systems (BVI) (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Hopewell Mobile Power Systems Corp. (FUCO) (100% - CEPA Mobile Power Systems (BVI) Corporation) CEPA Services Corp. (Special Purpose Subsidiary) (100% - Hopewell Mobile Power Systems Corp.) CEPA Guangxi Energy Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Eastern Power Plant Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Construction (Hong Kong) Limited (Special Purpose Subsidiary) (100% - Consolidated Electric Power Asia Limited) Sual Construction Corporation (Special Purpose Subsidiary) (100% - CEPA Construction Limited) CEPA Construction Resources (BVI) (Special Purpose Subsidiary) (100% - CEPA Construction Limited) Consolidated Construction Resources Limited (Special Purpose Subsidiary) (50% - CEPA Construction Limited) HOPEC Engineering Design Limited (Special Purpose Subsidiary) (100% - Consolidated Construction Resources Limited) CEPA Procurement (BVI) Ltd (Intermediate Subsidiary) (100% - CEPA Construction Limited) CEPA Procurement (Delaware) L.L.C. (Special Purpose Subsidiary) (51% - CEPA (BVI) Procurement Limited; 49% CEPA Sourcing Limited) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Energy Asia, Inc. - CONTINUED Consolidated Electric Power Asia Limited - CONTINUED CEPA Construction (Hong Kong) Limited - CONTINUED CEPA Sourcing (BVI) Ltd (Intermediate Subsidiary) (100% - CEPA Construction Limited) Pagbilao Shipping Corporation (Special Purpose Subsidiary) (100% - CEPA Construction Limited) Montana Enterprises Limited (Special Purpose Subsidiary) (100% Consolidated Electric Power Asia Limited) Excellent Crown Limited (Special Purpose Subsidiary) (100% - Montana Enterprises Limited) CEPA Pangasinan Electric Limited (Intermediate Subsidiary) (100% Consolidated Electric Power Asia Limited) Pangasinan Electric Corporation (FUCO) (100% - CEPA Pangasinan Electric Limited) CEPA Pakistan (BVI) Limited (Intermediate Subsidiary) (100% Consolidated Electric Power Asia Limited) CEPA Energy Pakistan Limited (FUCO) (100% - CEPA Pakistan Limited) CEPA Nominee (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Treharn Assets Limited (Special Purpose Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA India (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Investment (Mauritius) Limited (Intermediate Subsidiary) (100% - CEPA India (BVI) Limited) Consolidated Electric Power Asia Limited Limited (India) Private Limited (FUCO) (100% - CEPA Investment (Mauritius) Limited) Sorensen Enterprises Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Energy Asia, Inc. - CONTINUED Consolidated Electric Power Asia Limited - CONTINUED CEPA Operations, (Hong Kong) Limited (Special Purpose Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Operations (Philippines) Corp. (Special Purpose Subsidiary) (100% - CEPA Operations, Limited) Five Stars Venture Limited (Intermediate Subsidiary) ( 16.98 % - CEPA Operations, (Hong Kong) Limited; 15.11% - CEPA Project Management and Engineering (BVI)Limited; 67.91% - CEPA Construction (Hong Kong) Limited) CEPA Project Management and Engineering (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Mining and Engineering Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Marsford Investments Pte Ltd. (Intermediate Subsidiary) (100% - beneficially owned by CEPA Mining and Engineering Limited) Allied Queensland Coalfields, Ltd (Special Purpose Subsidiary) (95.17% - CEPA Mining and Engineering Limited; 4.83% - Marsford Investments Ptd Ltd)) Aberdare Colliers Pty Limited (Special Purpose Subsidiary) (100% - Allied Queensland Coalfields Limited) New Whitwood Collieries Pty Ltd. (Special Purpose Subsidiary) (100% - Aberdare Collieries Pty Ltd.) Riverview Coal Terminal Pty Ltd. (Special Purpose Subsidiary) (100% - Aberdare Collieries Pty Ltd.) AQC (Kogan Creek) Pty Limited (Special Purpose Subsidiary) (100% - Allied Queensland Coalfields Limited) AQC (Wilkie Creek) Pty Limited (Special Purpose Subsidiary) (100% - AQC (Kogan Creek) Pty Limited) Baralaba Coal Pty Limited (Special Purpose Subsidiary) (100% - Allied Queensland Coalfields Limited) Lemon Grove Investment Pty Limited (Special Purpose Subsidiary) (100% - Allied Queensland Coalfields Limited) Tiaro Coal Pty Limited (Special Purpose Subsidiary) (100% - Allied Queensland Coalfields Limited) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Energy Asia, Inc. - CONTINUED Consolidated Electric Power Asia Limited - CONTINUED Philippine Power and Infrastructure Holding Corporation (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Finance Corporation (Special Purpose Subsidiary) (100% - Consolidated Electric Power Asia Limited) Hopewell Energy International (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Energy International (BVI) Limited (Special Purpose Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Power China (BVI) Limited (Intermediate Subsidiary (100% - Consolidated Electric Power Asia Limited) CEPA Energy (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Cachelot Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Fortune Wheels Investment Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) Carrigon Management Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Project Management (BVI) Company Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Tileman Power Systems (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Guangxi Energy (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) CEPA Slipform Power Systems (BVI) Limited (Intermediate Subsidiary) (100% - Consolidated Electric Power Asia Limited) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Electric International - Europe, Inc. (Intermediate Subsidiary) (100% - Southern Energy International, Inc.) Southern Electric International - Netherlands, BV (Intermediate Subsidiary) (100% - Southern Electric International - Europe, Inc.) Zamojska Spolka Energetycnza Sp.z.o.o. (FUCO) (49% - Southern Electric International - Netherlands, BV; 51% Foreign Company) Southern Energy UK Generation Limited (Intermediate Subsidiary) (100% - Southern Electric International - Europe, Inc.) Southern Energy Development - Europe Limited (Special Purpose Subsidiary - Project Development) (100% - Southern Electric International - Europe, Inc.) Southern Electric International Finance, Inc. (Intermediate Subsidiary) (100% - Southern Electric International - Europe, Inc.) The Southern Company - Europe, plc (Intermediate Subsidiary) (100% - Southern Electric International - Europe, Inc.) SWEB Holdings Limited (Intermediate Subsidiary) (75% - Southern Electric International - Europe, Inc.; 25% - Domestic Corporation) Southern Investment UK plc (Intermediate Subsidiary) (100% - SWEB Holdings Limited) South Western Electricity plc (FUCO) (100% - Southern Investment UK plc) SWEB Investments Limited (FUCO Subsidiary) (100% - South Western Electricity plc) South Western Helicopters Limited (FUCO Subsidiary) (100% - South Western Electricity plc) AZTEC Insurance Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Insurance Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Investments 1996 Limited (FUCO Subsidiary) (100% - South Western Electricity plc) Croeso Systems Development Limited (FUCO Subsidiary) (50% - SWEB Investments 1996 Limited) Midlands Enterprise Fund (FUCO Subsidiary) (26.80% - SWEB Investments 1996 Limited) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Electric International - Europe, Inc. - CONTINUED SWEB Holdings Limited - CONTINUED Southern Investment UK plc - CONTINUED South Western Electricity plc - CONTINUED SWEB Property Investments Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Property Developments Limited (FUCO Subsidiary) (100% - South Western Electricity plc) Temple Back Developments Limited (FUCO Subsidiary) (49.0% - SWEB Property Developments Limited) Weston-Super-Mare Developments Limited (FUCO Subsidiary) (100.0% - Temple Back Developments Limited) South Western Power Limited (FUCO Subsidiary) (100% - South Western Electricity plc) South Western Power Investments Limited (FUCO Subsidiary) (100% - South Western Power Limited) Teeside Power Limited (FUCO Subsidiary) (7.7% - South Western Power Investments Limited) Wind Electric Limited (FUCO Subsidiary) (11.7% - South Western Power Investments Limited) Wind Resources Limited (FUCO Subsidiary) (45% - South Western Power Investments Limited) Carland Cross Limited (FUCO Subsidiary) (100% - Wind Resources Limited) Coal Clough Limited (FUCO Subsidiary) (100% - Wind Resources Limited) Winterton Power Limited (FUCO Subsidiary) (25% - South Western Power Investments Limited) Green Electron Limited (FUCO Subsidiary) (90% - South Western Power Limited; 10% Foreign Corporation) SWEB Data Collection Services Limited (FUCO Subsidiary) (100% - South Western Electricity plc) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Electric International - Europe, Inc. - CONTINUED SWEB Holdings Limited - CONTINUED Southern Investment UK plc - CONTINUED South Western Electricity plc - CONTINUED Concorde House Limited (FUCO Subsidiary) (100% - South Western Electricity plc) Electricity Association Technology Limited (FUCO Subsidiary) (7.7% - South Western Electricity plc) Non-Fossil Purchasing Agency Limited (FUCO Subsidiary) (8.3% - South Western Electricity plc) ElectraLink Limited (FUCO Subsidiary) (6.19% - South Western Electricity plc) South Western Energy Limited (FUCO Subsidiary) (100% - South Western Electricity plc) South Western Natural Gas Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Finance Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Gas Limited (FUCO Subsidiary) (100% - South Western Electricity plc) REC Collect Limited (FUCO Subsidiary) (25% - South Western Electricity plc) South Western Electricity Share Scheme Trustees Limited (FUCO Subsidiary) (100% - South Western Electricity plc) Electricity Pensions Trustee Limited (FUCO Subsidiary) (Limited by Guarantee - South Western Electricity plc) St. Clements Services Limited (FUCO Subsidiary) (9.1% - South Western Electricity plc) Electricity Pension Limited (FUCO Subsidiary) (5% - South Western Electricity plc) ESN Holdings Limited (FUCO Subsidiary) (4.5% - South Western Electricity plc) Electricity Association Limited (FUCO Subsidiary) (5.9% - South Western Electricity plc) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Electric International - Europe, Inc. - CONTINUED SWEB Holdings Limited - CONTINUED Southern Investment UK plc - CONTINUED South Western Electricity plc - CONTINUED Northmere Limited (FUCO Subsidiary) (Limited by Guarantee - South Western Electricity plc) South West Enterprise Limited (FUCO Subsidiary) (Limited by Guarantee - South Western Electricity plc) SWEB Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Retail Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Natural Gas Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Pension Trustee Limited (FUCO Subsidiary) (100% - South Western Electricity plc) SWEB Telecom Limited (FUCO Subsidiary) (100% - South Western Electricity plc) UK Data Collection Service Limited (FUCO Subsidiary) (8.33% - South Western Electricity plc) Western Natural Gas Limited (FUCO Subsidiary) (100% - South Western Electricity plc) Southern Energy - Newco2, Inc. (Intermediate Subsidiary) (100% - Southern Energy International, Inc.) SEI Chile, SA (Intermediate Subsidiary) (100% - Southern Energy - Newco2, Inc.) Inversiones SEI Chile Limitada (Intermediate Subsidiary) (99% - SEI Chile, SA; 1% - Holdings) Energia del Pacifico, SA (Intermediate Subsidiary) (99.9% - SEI Chile, SA, .1% - Southern Energy International, Inc.) Electrica SEI Chile Limitada (Intermediate Subsidiary) (97.05% - SEI Chile, SA; 1% - Holdings) Empressa Electrica del Norte Grande, SA (FUCO) (26.63% - Inversiones SEI Chile Limitada; 38.35% - Electrica SEI Chile Limitada; 10.67% - Foreign Government; 24.35% - Natural Persons) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED Southern Energy - Newco2, Inc. - CONTINUED Electrica SEI Chile Limitada - CONTINUED Empressa Electrica del Norte Grande, SA - CONTINUED Sitranor, SA (FUCO Subsidiary) (60% - Empressa Electrica del Norte Grande, SA; 40% - Foreign Government) Southern Electric Bahamas Holdings, Limited (Intermediate Subsidiary) (100% - Southern Energy - Newco2, Inc.) Southern Electric Bahamas, Ltd (Intermediate Subsidiary) (100% - Southern Electric Bahamas Holdings, Limited) ICD Utilities Limited (Intermediate Subsidiary) (25% - Southern Electric Bahamas, Ltd; 75% - Foreign Company) Freeport Power Company Limited (FUCO) (62.5% - Southern Electric Bahamas, Ltd; 37.5% - Third Party) SEI Beteilligungs, GmbH (Intermediate Subsidiary) (100% - Southern Energy - Newco2, Inc.) P.T. Tarahan Power Company (FUCO) (55% - SEI Beteilligungs, GmbH; 2.5% - Domestic Corporation; 42.5% - Foreign Company) Cayman Energy Traders (Intermediate Subsidiary) (51% - Southern Energy International, Inc.; 49% - Domestic Corporation) Southern Electric do Brasil Participacoes, Limitada (Intermediate Subsidiary) (90.6% - Cayman Energy Traders; 9.4% - Foreign Pension Fund) Companhia Energetica de Minas Gerais (CEMIG) (FUCO) (33% - Cayman Energy Traders; 51% - Foreign Government; 16% - General Public) Southern Energy E Associados Particpacoes, S.A. (Intermediate Subsidiary) (100% - Southern Energy International, Inc.) SEI Germany - BEWAG, Inc. (Intermediate Subsidiary) (100% - Southern Energy International, Inc.) SEI Worldwide Holdings, Inc.. (Intermediate Subsidiary) (100% - Southern Energy International, Inc.) SEI Worldwide Holdings (Germany) GmbH (Intermediate Subsidiary) (50% - SEI Germany - BEWAG, Inc.; 50% - SEI Worldwide Holdings, Inc.) Southern Energy Holding Beteiligungsgesellschaft GmbH (Intermediate Subsidiary) (100% - SEI Worldwide Holdings (Germany) GmbH) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy International, Inc. - CONTINUED SEI Worldwide Holdings, Inc. - CONTINUED SEI Worldwide Holdings (Germany) GmbH - CONTINUED Southern Energy Holding Beteiligungsgesellschaft GmbH - CONTINUED BEWAG ( FUCO) (26% - Southern Energy Holding Beteiligungsgesellschaft GmbH, ) SEI y Asociados de Argentina, S.A. (Intermediate Subsidiary) (45.79% - SEI Worldwide Holdings GmbH; 7.14%- Asociados de Electricidad, S.A.; 40.52% - Holdings: 5.55% - Foreign Corporation; 1% - Domestic Company) Hidroelectrica Alicura, S.A. (FUCO) (59% - SEI y Asociados de Argentina, S.A.; 41% - Foreign Government) Southern Electric International Trinidad, Inc. (EWG) (100% - Southern Energy International, Inc.) The Power Generation Company of Trinidad & Tobago Limited (EWG) (39% - Southern Electric International Trinidad, Inc.; 51% - Foreign Government; 10% - Domestic Corporation) Southern Energy Finance Company, Inc. (Intermediate Subsidiary) (100% Holdings) EPZ Lease, Inc. (Intermediate Subsidiary) (100% Southern Energy Finance Company, Inc.) EPZ Lease, LLC (Intermediate Subsidiary) (99% EPZ Lease, Inc.; 1% Southern Energy Finance Company, Inc.) EPZ Lease Holding A, LLC (Intermediate Subsidiary) (99% EPZ Lease, LLC; 1% EPZ Lease, Inc.) EPZ Lease Trust A (FUCO) (100% - EPZ Lease Holding A, LLC {Beneficial Interest}) EPZ Lease Holding B, LLC (Intermediate Subsidiary) (99% EPZ Lease, LLC; 1% EPZ Lease, Inc.) EPZ Lease Trust B (FUCO) (100% - EPZ Lease Holding B, LLC {Beneficial Interest}) EPZ Lease Holding C, LLC (Intermediate Subsidiary) (99% EPZ Lease, LLC; 1% EPZ Lease, Inc.) EPZ Lease Trust C (FUCO) (100% - EPZ Lease Holding C, LLC {Beneficial Interest}) Southern Energy Clairton, Inc. (Intermediate Subsidiary) (100% - Southern Energy Finance Company, Inc.) EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES Holdings - CONTINUED Southern Energy Finance Company, Inc. - CONTINUED Southern Energy Clairton, Inc. - CONTINUED Southern Energy Clairton, L.L.C. (Intermediate Subsidiary) (85% - Southern Energy Clairton, Inc.; 15% Southern Energy Clairton2, Inc.) Clairton 1314 B Partnership, L.P. (Rule 58 Energy-Related Company) (27% - Southern Energy Clairton, L.L.C.; 73% - Domestic Corporations) Southern Energy Clairton2, Inc.(Intermediate Subsidiary) (100% - Southern Energy Finance Company, Inc.) Southern Company Capital Funding, Inc. (Intermediate Subsidiary) (100% - Holdings) Southern Company Capital Trust I (Special Purpose Subsidiary) (100% - Southern Company Capital Funding, Inc.) Southern Company Capital Trust II (Special Purpose Subsidiary) (100% - Southern Company Capital Funding, Inc.) Southern Company Capital Trust III (Special Purpose Subsidiary) (100% - Southern Company Capital Funding, Inc.) Mobile Energy Services Holdings, Inc. (Intermediate Subsidiary) (100% - The Southern Company) Mobile Energy Services Company, L.L.C. (Public Utility) (99% - Mobile Energy Services Holdings, Inc.; 1% - Southern Energy Resources, Inc.) Energia de Neuvo Leon, SA De CV (FUCO) (33 1/3% - The Southern Company; 33 1/3% Foreign Corporations; 33 1/3% - Foreign Government) Footnotes: NOTE 1 - The organization chart above that includes the subsidiaries of Consolidated Electric Power Asia Limited is updated annually as of December 31. NOTE 2 - Certain of CEPA's holdings in the Philippines were reorganized through a series of agreements which were dated and executed on or before December 31, 1997. However, these agreements are awaiting the approval of certain governmental authorities in the Philippines and are not yet effective.
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