Exhibit 99.03
                    Significant Factors Impacting EPS (Notes)



                                     3 Months Ended September                        9 Months Ended September
                              -------------------------------------           --------------------------------------
                               2004            2003         Change            2004            2003            Change
                               ----            ----         ------            ----            ----            ------

                                                                                             
Consolidated Earnings-       $ 0.87          $ 0.85          $0.02           $1.80           $1.75             $0.05

Significant Factors:
Retail Business                                               0.04                                              0.06
Competitive Generation                                       (0.01)                                            (0.03)
Synthetic Fuels                                               0.01                                              0.03
Leasing Business                                               -                                                 -
Parent Company and Other                                     (0.01)                                             0.02
Impact of Additional Shares                                  (0.01)                                            (0.03)
                                                             -----                                             -----
  Total                                                      $0.02                                             $0.05
                                                             =====                                             =====



Notes
-Excludes a one-time after tax gain of $88 million in May 2003 from the
 previously announced termination of all long-term wholesale power
 contracts between Southern Company and Dynegy, Inc. After adjusting for
 revenues that otherwise would have been recognized for the remainder of
 the year, the adjusted gain for 2003 is $83 million.
-Quarterly Earnings Per Share (EPS) is computed by using the current
 year-to-date EPS less the previous period year-to-date EPS. As a result
 of using rounded numbers, the EPS for significant factors may not
 directly correspond to the variance in millions of dollars shown above.
-Diluted earnings per share are not more than 1 cent for any period
 reported above and are not material.
-Certain prior year data has been reclassified to conform with current
 year presentation.
-Information contained in this report is subject to review and
 adjustments and certain classifications may be different from final
 results published in the Form 10-Q.