0000092122-19-000008.txt : 20190220 0000092122-19-000008.hdr.sgml : 20190220 20190220070611 ACCESSION NUMBER: 0000092122-19-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20190220 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20190220 DATE AS OF CHANGE: 20190220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN CO CENTRAL INDEX KEY: 0000092122 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 580690070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03526 FILM NUMBER: 19617071 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD., N.W. CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD., N.W. CITY: ATLANTA STATE: GA ZIP: 30308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALABAMA POWER CO CENTRAL INDEX KEY: 0000003153 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 630004250 STATE OF INCORPORATION: AL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03164 FILM NUMBER: 19617066 BUSINESS ADDRESS: STREET 1: 600 N 18TH ST STREET 2: P O BOX 2641 CITY: BIRMINGHAM STATE: AL ZIP: 35291 BUSINESS PHONE: 2052571000 MAIL ADDRESS: STREET 1: 600 N 18TH ST CITY: BIRMINGHAM STATE: AL ZIP: 35291 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GEORGIA POWER CO CENTRAL INDEX KEY: 0000041091 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 580257110 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06468 FILM NUMBER: 19617067 BUSINESS ADDRESS: STREET 1: 241 RALPH MCGILL BOULEVARD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045066526 MAIL ADDRESS: STREET 1: 241 RALPH MCGILL BOULEVARD CITY: ATLANTA STATE: GA ZIP: 30308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MISSISSIPPI POWER CO CENTRAL INDEX KEY: 0000066904 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 640205820 STATE OF INCORPORATION: MS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11229 FILM NUMBER: 19617068 BUSINESS ADDRESS: STREET 1: 2992 WEST BEACH CITY: GULFPORT STATE: MS ZIP: 39501 BUSINESS PHONE: 2288641211 MAIL ADDRESS: STREET 1: 2992 WEST BEACH CITY: GULFPORT STATE: MS ZIP: 39501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN Co GAS CENTRAL INDEX KEY: 0001004155 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 582210952 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14174 FILM NUMBER: 19617070 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: 2Q ZIP: 30308 FORMER COMPANY: FORMER CONFORMED NAME: AGL RESOURCES INC DATE OF NAME CHANGE: 19951129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN POWER CO CENTRAL INDEX KEY: 0001160661 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 582598670 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37803 FILM NUMBER: 19617069 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 8-K 1 earnrelease8-kq42018.htm 8-K Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported)
February 20, 2019

Commission
File Number
Registrant, State of Incorporation,
Address and Telephone Number
I.R.S. Employer
Identification No.
 
 
 
1-3526
The Southern Company
(A Delaware Corporation)
30 Ivan Allen Jr. Blvd., N.W.
Atlanta, Georgia 30308
(404) 506-5000
58-0690070
1-3164
Alabama Power Company
(An Alabama Corporation)
600 North 18th Street
Birmingham, Alabama 35203
(205) 257-1000
63-0004250
1-6468
Georgia Power Company
(A Georgia Corporation)
241 Ralph McGill Boulevard, N.E.
Atlanta, Georgia 30308
(404) 506-6526
58-0257110
001-11229
Mississippi Power Company
(A Mississippi Corporation)
2992 West Beach Boulevard
Gulfport, Mississippi 39501
(228) 864-1211
64-0205820
001-37803
Southern Power Company
(A Delaware Corporation)
30 Ivan Allen Jr. Blvd., N.W.
Atlanta, Georgia 30308
(404) 506-5000
58-2598670
1-14174
Southern Company Gas
(A Georgia Corporation)
Ten Peachtree Place N.E.
Atlanta, Georgia 30309
(404) 584-4000
58-2210952
The names and addresses of the registrants have not changed since the last report.



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

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

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

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




Item 2.02
Results of Operations and Financial Condition
The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On February 20, 2019, The Southern Company (“Southern Company”) issued a press release regarding its earnings for the three-month and twelve-month periods ended December 31, 2018. A copy of this release is being furnished as Exhibit 99.01 to this Current Report on Form 8-K. In addition, certain additional information regarding the financial results for the three-month and twelve-month periods ended December 31, 2018 is being furnished as Exhibits 99.02 through 99.07 to this Current Report on Form 8-K.
Use of Non-GAAP Financial Measures
Exhibits 99.01, 99.02, 99.03 and 99.04 to this Current Report on Form 8-K include earnings and earnings per share in accordance with generally accepted accounting principles (“GAAP”) for the three-month and twelve-month periods ended December 31, 2018 and 2017. These exhibits also include earnings and earnings per share (1) for the three-month and twelve-month periods ended December 31, 2018 and 2017, excluding (a) charges and an income tax credit related to plants under construction, (b) earnings from the Wholesale Gas Services business of Southern Company Gas, (c) acquisition, disposition and integration impacts, and (d) additional net tax benefits and expense as a result of implementing federal tax reform legislation; (2) for the twelve-month period ended December 31, 2017, excluding (a) a charge for the write-down of Gulf Power Company’s ownership of Plant Scherer Unit 3 and (b) earnings associated with equity return as a result of extending the construction schedule for Mississippi Power Company's integrated coal gasification combined cycle project in Kemper County,



Mississippi beyond November 30, 2016; and (3) for the twelve-month period ended December 31, 2018, excluding settlement proceeds of Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The attached exhibits include additional information regarding these excluded items, as well as reconciliations of each non-GAAP financial measure to the most comparable financial measure under GAAP. Southern Company believes the presentation of earnings and earnings per share, excluding these items, is useful to investors because it provides investors with additional information to evaluate the performance of Southern Company’s ongoing business activities.  Southern Company management also uses earnings and earnings per share, excluding the effect of these items, to evaluate the performance of Southern Company’s ongoing business activities.  The presentation of this additional information is not meant to be considered a substitute for financial measures prepared in accordance with GAAP.
Exhibits
The exhibits hereto contain business segment information for Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company and Southern Company Gas. Accordingly, this report is also being furnished on behalf of each such registrant.
The following exhibits relate to the three-month and twelve-month periods ended December 31, 2018:



2


SIGNATURES

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

Date:   February 20, 2019
THE SOUTHERN COMPANY

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

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


3
 EX-99.01 2 ex9901-pressreleaseq42018.htm EXHIBIT 99.01 Exhibit


 
 
Exhibit 99.01
 
socologoa13.gif
News
 
Media Contact:
Southern Company Media Relations
 
 
404-506-5333 or 1-866-506-5333
 
 
www.southerncompany.com
 
 
 
 
Investor Relations Contact:
 
 
Scott Gammill
 
 
404-506-0901
 
 
sagammil@southernco.com
 
 
February 20, 2019

Southern Company reports fourth-quarter and full-year 2018 earnings

ATLANTA - Southern Company today reported fourth-quarter 2018 earnings of $278 million, or 27 cents per share, compared with earnings of $496 million, or 49 cents per share, in the fourth quarter of 2017. Southern Company also reported full-year 2018 earnings of $2.23 billion, or $2.18 per share, compared with earnings of $842 million, or 84 cents per share, in 2017.

Excluding the items described in the “Net Income - Excluding Items” table below, Southern Company earned $256 million, or 25 cents per share, during the fourth quarter of 2018, compared with $509 million, or 51 cents per share, during the fourth quarter of 2017. For the full-year 2018, excluding these items, Southern Company earned $3.13 billion, or $3.07 per share, compared with earnings of $3.02 billion, or $3.02 per share, in 2017.
Non-GAAP Financial Measures
Three Months Ended December
 
Year-to-Date December
Net Income - Excluding Items (in millions)
2018
2017
 
2018
2017
Net Income - As Reported
$278
 $496
 
$2,226
 $842
Estimated Loss on Plants Under Construction
(6)
211
 
1,102
3,366
  Tax Impact
(94)
(25)
 
(376)
(975)
Loss on Plant Scherer Unit 3
-
-
 
-
33
  Tax Impact
-
-
 
-
(13)
Acquisition, Disposition, and Integration Impacts
58
16
 
(35)
35
       Tax Impact
(11)
10
 
294
12
Wholesale Gas Services
41
105
 
(42)
57
       Tax Impact
(14)
(20)
 
4
-
Litigation Settlement
-
-
 
(24)
-
       Tax Impact
-
-
 
6
-
Earnings Guidance Comparability Items:
 
 
 
 
 
Equity Return Related to Kemper IGCC
    Schedule Extension
-
-
 
-
(47)
       Tax Impact
-
-
 
-
(9)
Adoption of Tax Reform
4
(284)
 
(27)
(284)
Net Income - Excluding Items
$256
$509
 
$3,128
$3,017
       Average Shares Outstanding - (in millions)
1,034
1,007
 
1,020
1,000
Basic Earnings Per Share - Excluding Items
$0.25
$0.51
 
$3.07
$3.02
NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.




Earnings drivers for the full year 2018 were positively influenced by effects of constructive regulatory outcomes and weather at the state-regulated utilities. These impacts were partially offset by increases in depreciation and amortization, interest expense and share issuances.

“2018 was a banner year for Southern Company, as we continued to see outstanding operational execution throughout the franchise,” said Chairman, President and CEO Thomas A. Fanning. “All of our state-regulated electric and gas companies delivered strong performance. We experienced solid customer growth, and we delivered significant benefits to customers resulting from tax reform while maintaining credit metrics across our businesses. We also saw excellent progress with the construction of the new nuclear units at Georgia Power’s Plant Vogtle, achieving our year-end construction targets.”

Fourth quarter 2018 operating revenues were $5.34 billion, compared with $5.63 billion for the fourth quarter of 2017, a decrease of 5.2 percent. Operating revenues for the full year 2018 were $23.50 billion, compared with $23.03 billion in 2017, an increase of 2.0 percent.

Southern Company’s fourth quarter earnings slides with supplemental financial information, including its earnings guidance for 2019, are available at http://investor.southerncompany.com.

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

About Southern Company

Southern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries as of Jan. 1, 2019. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women’s Choice Award. To learn more, visit www.southerncompany.com.


###







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


Exhibit 99.02
 
Page 1
 
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
Net Income–As Reported (See Notes)
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
  Traditional Electric Operating Companies
 
$
407

 
$
(191
)
 
$
2,117

 
$
(193
)
  Southern Power
 
(48
)
 
795

 
187

 
1,071

Southern Company Gas
 
78

 
(60
)
 
372

 
243

  Total
 
437

 
544

 
2,676

 
1,121

  Parent Company and Other
 
(159
)
 
(48
)
 
(450
)
 
(279
)
  Net Income–As Reported
 
$
278

 
$
496

 
$
2,226

 
$
842

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share1
 
$
0.27

 
$
0.49

 
$
2.18

 
$
0.84

 
 
 
 
 
 
 
 
 
  Average Shares Outstanding (in millions)
 
1,034

 
1,007

 
1,020

 
1,000

  End of Period Shares Outstanding (in millions)
 
 
 
 
 
1,034

 
1,008

 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures
 
Three Months Ended
December
 
Year-to-Date
December
Net Income–Excluding Items (See Notes)
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
  Net Income–As Reported
 
$
278

 
$
496

 
$
2,226

 
$
842

Estimated Loss on Plants Under Construction2
 
(6
)
 
211

 
1,102

 
3,366

Tax Impact
 
(94
)
 
(25
)
 
(376
)
 
(975
)
Loss on Plant Scherer Unit 33
 
—

 
—

 
—

 
33

Tax Impact
 
—

 
—

 
—

 
(13
)
Acquisition, Disposition, and Integration Impacts4
 
58

 
16

 
(35
)
 
35

Tax Impact
 
(11
)
 
10

 
294

 
12

Wholesale Gas Services5
 
41

 
105

 
(42
)
 
57

Tax Impact
 
(14
)
 
(20
)
 
4

 
—

Litigation Settlement6
 
—

 
—

 
(24
)
 
—

Tax Impact
 
—

 
—

 
6

 
—

Earnings Guidance Comparability Items:
 
 
 
 
 
 
 
 
Equity Return Related to Kemper IGCC
   Schedule Extension7
 
—

 
—

 
—

 
(47
)
Tax Impact
 
—

 
—

 
—

 
(9
)
Adoption of Tax Reform8
 
4

 
(284
)
 
(27
)
 
(284
)
  Net Income–Excluding Items
 
$
256

 
$
509

 
$
3,128

 
$
3,017

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share–Excluding Items
 
$
0.25

 
$
0.51

 
$
3.07

 
$
3.02

 
 
 
 
 
 
 
 
 
-See Notes on the following page.






Exhibit 99.02
Page 2
Southern Company
Financial Highlights
Notes
 
 
 
 
 
 
 
 
(1) For the three and twelve months ended December 31, 2018 and 2017, dilution does not change basic earnings per share by more than 1 cent and is not material.
(2) Earnings for the three and twelve months ended December 31, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a state income tax valuation allowance recorded in the twelve months ended December 31, 2017 related to a net operating loss carryforward associated with the Kemper IGCC. Earnings for the twelve months ended December 31, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power's construction of Plant Vogtle Units 3 and 4. These items significantly impacted the presentation of earnings and earnings per share. Additional pre-tax closure costs, including mine reclamation, of up to $25 million for Mississippi Power's Kemper IGCC may occur through 2020. Mississippi Power is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.
(3) Earnings for the twelve months ended December 31, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power's ownership of Plant Scherer Unit 3 as a result of its 2017 retail rate case settlement.
(4) Earnings for the three months ended December 31, 2018 include: (i) a net combined $27 million pre-tax loss (net combined $15 million after-tax loss) in connection with the finalization of the gain and loss calculations for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax, which includes $10 million related to reapportioning state income taxes as a result of the dispositions). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $291 million pre-tax gain ($51 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with Southern Power's disposition of Plants Stanton and Oleander; and (iv) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Earnings for the three and twelve months ended December 31, 2017 include other acquisition, disposition, and integration costs related to the acquisition of Southern Company Gas and the dispositions of Elizabethtown Gas and Elkton Gas. Further impacts are expected to be recorded in 2019 including a preliminary gain of $2.5 billion pre tax ($1.3 billion after tax) in connection with the sale of Gulf Power, as well as impacts related to Southern Power's announced sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.
(5) Earnings for the three and twelve months ended December 31, 2018 and 2017 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
(6) Earnings for the twelve months ended December 31, 2018 include the settlement proceeds of Mississippi Power's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.
(7) Earnings for the twelve months ended December 31, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.
(8) Earnings for the three and twelve months ended December 31, 2018 and 2017 include net tax impacts as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's performance.


 EX-99.03 4 ex9903-significantfactorsi.htm EXHIBIT 99.03 Exhibit

Exhibit 99.03
 
Page 1
 
Southern Company
Significant Factors Impacting EPS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
 
 
2018
 
2017
 
Change
 
2018
 
2017
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
As Reported1 (See Notes)
 
$
0.27

 
$
0.49

 
$
(0.22
)
 
$
2.18

 
$
0.84

 
$
1.34

 
 
 
 
 
 
 
 
 
 
 
 
 
  Significant Factors:
 
 
 
 
 
 
 
 
 
 
 
 
  Traditional Electric Operating Companies
 
 
 
 
 
$
0.59

 
 
 
 
 
$
2.31

Southern Power
 
 
 
 
 
(0.84
)
 
 
 
 
 
(0.88
)
Southern Company Gas
 
 
 
 
 
0.14

 
 
 
 
 
0.13

Parent Company and Other
 
 
 
 
 
(0.10
)
 
 
 
 
 
(0.18
)
Increase in Shares
 
 
 
 
 
(0.01
)
 
 
 
 
 
(0.04
)
  Total–As Reported
 
 
 
 
 
$
(0.22
)
 
 
 
 
 
$
1.34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
Non-GAAP Financial Measures
 
2018
 
2017
 
Change
 
2018
 
2017
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
Excluding Items (See Notes)
 
$
0.25

 
$
0.51

 
$
(0.26
)
 
$
3.07

 
$
3.02

 
$
0.05

 
 
 
 
 
 
 
 
 
 
 
 
 
  Total–As Reported
 
 
 
 
 
$
(0.22
)
 
 
 
 
 
$
1.34

Estimated Loss on Plants Under Construction2
 
 
 
 
 
(0.29
)
 
 
 
 
 
(1.62
)
Loss on Plant Scherer Unit 33
 
 
 
 
 
—

 
 
 
 
 
(0.02
)
Acquisition, Disposition, and Integration
    Impacts4
 
 
 
 
 
0.02

 
 
 
 
 
0.21

Wholesale Gas Services5
 
 
 
 
 
(0.05
)
 
 
 
 
 
(0.09
)
Litigation Settlement6
 
 
 
 
 
—

 
 
 
 
 
(0.02
)
Adoption of Tax Reform7
 
 
 
 
 
0.28

 
 
 
 
 
0.25

  Total–Excluding Items
 
 
 
 
 
$
(0.26
)
 
 
 
 
 
$
0.05

 
 
 
 
 
 
 
 
 
 
 
 
 
- See Notes on the following page.



Exhibit 99.03
Page 2
Southern Company
Significant Factors Impacting EPS
Notes
 
 
 
 
 
 
 
 
 
 
 
 
(1) For the three and twelve months ended December 31, 2018 and 2017, dilution does not change basic earnings per share by more than 1 cent and is not material.
(2) Earnings for the three and twelve months ended December 31, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a state income tax valuation allowance recorded in the twelve months ended December 31, 2017 related to a net operating loss carryforward associated with the Kemper IGCC. Earnings for the twelve months ended December 31, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power's construction of Plant Vogtle Units 3 and 4. These items significantly impacted the presentation of earnings and earnings per share. Additional pre-tax closure costs, including mine reclamation, of up to $25 million for Mississippi Power's Kemper IGCC may occur through 2020. Mississippi Power is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.

Earnings for the twelve months ended December 31, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.
(3) Earnings for the twelve months ended December 31, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power's ownership of Plant Scherer Unit 3 as a result of its 2017 retail rate case settlement.
(4) Earnings for the three months ended December 31, 2018 include: (i) a net combined $27 million pre-tax loss (net combined $15 million after-tax loss) in connection with the finalization of the gain and loss calculations for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax, which includes $10 million related to reapportioning state income taxes as a result of the dispositions). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $291 million pre-tax gain ($51 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with Southern Power's disposition of Plants Stanton and Oleander; and (iv) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Earnings for the three and twelve months ended December 31, 2017 include other acquisition, disposition, and integration costs related to the acquisition of Southern Company Gas and the dispositions of Elizabethtown Gas and Elkton Gas. Further impacts are expected to be recorded in 2019 including a preliminary gain of $2.5 billion pre tax ($1.3 billion after tax) in connection with the sale of Gulf Power, as well as impacts related to Southern Power's announced sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.
(5) Earnings for the three and twelve months ended December 31, 2018 and 2017 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
(6) Earnings for the twelve months ended December 31, 2018 include the settlement proceeds of Mississippi Power's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.
(7) Earnings for the three and twelve months ended December 31, 2018 and 2017 include net tax impacts as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's performance.

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


Exhibit 99.04
Page 1
Southern Company
EPS Earnings Analysis
Description
 
Three Months Ended December
2018 vs. 2017
 
Year-to-Date
December
2018 vs. 2017
 
 
 
 
 
Retail Sales
 
$0.01
 
$0.05
 
 
 
 
 
Retail Revenue Impacts, Excluding Tax Reform Changes
 
(0.10)
 
(0.08)
 
 
 
 
 
Weather
 
—
 
0.18
 
 
 
 
 
Other Operating Revenues
 
—
 
(0.01)
 
 
 
 
 
Purchased Power Capacity Expense
 
—
 
0.01
 
 
 
 
 
Non-Fuel O&M
 
0.01
 
0.02
 
 
 
 
 
Depreciation and Amortization
 
(0.01)
 
(0.07)
 
 
 
 
 
Taxes Other Than Income Taxes
 
—
 
(0.02)
 
 
 
 
 
Gain on Dispositions, Net
 
(0.02)
 
(0.02)
 
 
 
 
 
Interest Expense
 
0.01
 
(0.02)
 
 
 
 
 
Other Income and Deductions
 
—
 
0.01
 
 
 
 
 
Impacts of Tax Reform (Ongoing Basis), Net of Amounts to be Returned to Customers
 
(0.04)
 
0.15
 
 
 
 
 
Income Taxes, Excluding Tax Reform
 
—
 
(0.04)
 
 
 
 
 
Dividends on Preferred and Preference Stock
 
—
 
0.02
 
 
 
 
 
Total Traditional Electric Operating Companies
 
$(0.14)
 
$0.18
 
 
 
 
 
Southern Power
 
(0.03)
 
0.02
 
 
 
 
 
Southern Company Gas
 
(0.01)
 
0.04
 
 
 
 
 
Parent and Other
 
(0.07)
 
(0.13)
 
 
 
 
 
Increase in Shares
 
(0.01)
 
(0.06)
 
 
 
 
 
Total Change in EPS (Excluding Items)
 
$(0.26)
 
$0.05
 
 
 
 
 
Estimated Loss on Plants Under Construction1
 
0.29
 
1.62
 
 
 
 
 
Loss on Plant Scherer Unit 32
 
—
 
0.02
 
 
 
 
 
Acquisition, Disposition, and Integration Impacts3
 
(0.02)
 
(0.21)
 
 
 
 
 
Wholesale Gas Services4
 
0.05
 
0.09
 
 
 
 
 
Litigation Settlement5
 
—
 
0.02
 
 
 
 
 
Adoption of Tax Reform6
 
(0.28)
 
(0.25)
 
 
 
 
 
Total Change in EPS (As Reported)
 
$(0.22)
 
$1.34
 
 
 
 
 
- See Notes on the following page.
 




Exhibit 99.04
Page 2
Southern Company
EPS Earnings Analysis
Three and Twelve Months Ended December 2018 vs. December 2017
Notes
 
(1) Earnings for the three and twelve months ended December 31, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a state income tax valuation allowance recorded in the twelve months ended December 31, 2017 related to a net operating loss carryforward associated with the Kemper IGCC. Earnings for the twelve months ended December 31, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power's construction of Plant Vogtle Units 3 and 4. These items significantly impacted the presentation of earnings and earnings per share. Additional pre-tax closure costs, including mine reclamation, of up to $25 million for Mississippi Power's Kemper IGCC may occur through 2020. Mississippi Power is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.

Earnings for the twelve months ended December 31, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.
(2) Earnings for the twelve months ended December 31, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power's ownership of Plant Scherer Unit 3 as a result of its 2017 retail rate case settlement.
(3) Earnings for the three months ended December 31, 2018 include: (i) a net combined $27 million pre-tax loss (net combined $15 million after-tax loss) in connection with the finalization of the gain and loss calculations for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax, which includes $10 million related to reapportioning state income taxes as a result of the dispositions). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $291 million pre-tax gain ($51 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with Southern Power's disposition of Plants Stanton and Oleander; and (iv) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Earnings for the three and twelve months ended December 31, 2017 include other acquisition, disposition, and integration costs related to the acquisition of Southern Company Gas and the dispositions of Elizabethtown Gas and Elkton Gas. Further impacts are expected to be recorded in 2019 including a preliminary gain of $2.5 billion pre tax ($1.3 billion after tax) in connection with the sale of Gulf Power, as well as impacts related to Southern Power's announced sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.
(4) Earnings for the three and twelve months ended December 31, 2018 and 2017 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
(5) Earnings for the twelve months ended December 31, 2018 include the settlement proceeds of Mississippi Power's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.
(6) Earnings for the three and twelve months ended December 31, 2018 and 2017 include net tax impacts as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's performance.



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


Exhibit 99.05
 
Southern Company
Consolidated Earnings
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December
 
Year-to-Date
 December
 
 
2018
 
2017
 
Change
 
2018
 
2017
 
Change
Income Account-
 
 
 
 
 
 
 
 
 
 
 
 
Retail Electric Revenues-
 
 
 
 
 
 
 
 
 
 
 
 
Fuel
 
$
1,012

 
$
966

 
$
46

 
$
4,283

 
$
4,095

 
$
188

Non-Fuel
 
2,297

 
2,578

 
(281
)
 
10,939

 
11,235

 
(296
)
Wholesale Electric Revenues
 
579

 
559

 
20

 
2,516

 
2,426

 
90

Other Electric Revenues
 
166

 
171

 
(5
)
 
664

 
681

 
(17
)
Natural Gas Revenues
 
1,048

 
1,045

 
3

 
3,854

 
3,791

 
63

Other Revenues
 
235

 
310

 
(75
)
 
1,239

 
803

 
436

Total Revenues
 
5,337

 
5,629

 
(292
)
 
23,495

 
23,031

 
464

Fuel and Purchased Power
 
1,334

 
1,245

 
89

 
5,608

 
5,263

 
345

Cost of Natural Gas
 
486

 
515

 
(29
)
 
1,539

 
1,601

 
(62
)
Cost of Other Sales
 
118

 
220

 
(102
)
 
806

 
513

 
293

Non-Fuel O & M
 
1,672

 
1,640

 
32

 
5,889

 
5,739

 
150

Depreciation and Amortization
 
793

 
774

 
19

 
3,131

 
3,010

 
121

Taxes Other Than Income Taxes
 
325

 
309

 
16

 
1,315

 
1,250

 
65

Estimated Loss on Plants Under Construction
 
(8
)
 
207

 
(215
)
 
1,097

 
3,362

 
(2,265
)
Impairment Charges
 
13

 
—

 
13

 
210

 
—

 
210

Gain on Dispositions, net
 
26

 
(20
)
 
46

 
(291
)
 
(40
)
 
(251
)
Total Operating Expenses
 
4,759

 
4,890

 
(131
)
 
19,304

 
20,698

 
(1,394
)
Operating Income
 
578

 
739

 
(161
)
 
4,191

 
2,333

 
1,858

Allowance for Equity Funds Used During Construction
 
39

 
27

 
12

 
138

 
160

 
(22
)
Earnings from Equity Method Investments
 
40

 
6

 
34

 
148

 
106

 
42

Interest Expense, Net of Amounts Capitalized
 
456

 
446

 
10

 
1,842

 
1,694

 
148

Other Income (Expense), net
 
(81
)
 
(1
)
 
(80
)
 
114

 
163

 
(49
)
Income Taxes
 
(149
)
 
(175
)
 
26

 
449

 
142

 
307

Net Income
 
269

 
500

 
(231
)
 
2,300

 
926

 
1,374

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Dividends on Preferred and Preference Stock of Subsidiaries
 
4

 
6

 
(2
)
 
16

 
38

 
(22
)
Net Income Attributable to Noncontrolling Interests
 
(13
)
 
(2
)
 
(11
)
 
58

 
46

 
12

NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY
 
$
278

 
$
496

 
$
(218
)
 
$
2,226

 
$
842

 
$
1,384

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


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


Exhibit 99.06
 
Southern Company
Kilowatt-Hour Sales and Customers
(In Millions of KWHs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December
 
Year-to-Date December
As Reported
 
2018
 
2017
 
Change
 
Weather Adjusted Change
 
2018
 
2017
 
Change
 
Weather Adjusted Change
Kilowatt-Hour Sales-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Sales
 
49,539

 
49,915

 
(0.8
)%
 
 
 
212,144

 
205,541

 
3.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Retail Sales-
 
37,973

 
37,705

 
0.7
 %
 
0.3
 %
 
162,182

 
156,507

 
3.6
 %
 
0.9
 %
Residential
 
12,475

 
12,034

 
3.7
 %
 
2.2
 %
 
54,590

 
50,536

 
8.0
 %
 
1.2
 %
Commercial
 
12,346

 
12,333

 
0.1
 %
 
0.3
 %
 
53,451

 
52,340

 
2.1
 %
 
0.5
 %
Industrial
 
12,949

 
13,130

 
(1.4
)%
 
(1.4
)%
 
53,341

 
52,785

 
1.1
 %
 
1.1
 %
Other
 
203

 
208

 
(3.1
)%
 
(3.2
)%
 
800

 
846

 
(5.5
)%
 
(5.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholesale Sales
 
11,566

 
12,210

 
(5.3
)%
 
N/A

 
49,962

 
49,034

 
1.9
 %
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands of Customers)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period Ended December
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
Change
 
 
Regulated Utility Customers-
 
 
 
 
 
 
 
 
 
 
 
 
Total Utility Customers1-
 
 
 
 
 
8,933

 
9,263

 
(3.6
)%
 
 
Total Traditional Electric
 
 
 
 
 
4,685

 
4,640

 
1.0
 %
 
 
Southern Company Gas1
 
 
 
 
 
4,248

 
4,623

 
(8.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes total customers of approximately 407,000 at December 31, 2017 related to Elizabethtown Gas, Elkton Gas, and Florida City Gas, which were sold in July 2018.


 EX-99.07 8 ex9907-financialoverviewq4.htm EXHIBIT 99.07 Exhibit





Exhibit 99.07
 
Southern Company
Financial Overview
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December
 
Year-to-Date
December
 
 
2018
 
2017
 
% Change
 
2018
 
2017
 
% Change
Southern Company1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
5,337

 
$
5,629

 
(5.2
)%
 
$
23,495

 
$
23,031

 
2.0
 %
Earnings Before Income Taxes
 
120

 
325

 
(63.1
)%
 
2,749

 
1,068

 
157.4
 %
Net Income Available to Common
 
278

 
496

 
(44.0
)%
 
2,226

 
842

 
164.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,316

 
$
1,433

 
(8.2
)%
 
$
6,032

 
$
6,039

 
(0.1
)%
Earnings Before Income Taxes
 
96

 
198

 
(51.5
)%
 
1,236

 
1,434

 
(13.8
)%
Net Income Available to Common
 
73

 
119

 
(38.7
)%
 
930

 
848

 
9.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Georgia Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,818

 
$
1,884

 
(3.5
)%
 
$
8,420

 
$
8,310

 
1.3
 %
Earnings Before Income Taxes
 
175

 
352

 
(50.3
)%
 
1,007

 
2,258

 
(55.4
)%
Net Income Available to Common
 
173

 
227

 
(23.8
)%
 
793

 
1,414

 
(43.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
359

 
$
372

 
(3.5
)%
 
$
1,465

 
$
1,516

 
(3.4
)%
Earnings Before Income Taxes
 
(6
)
 
30

 
(120.0
)%
 
140

 
229

 
(38.9
)%
Net Income Available to Common
 
13

 
19

 
(31.6
)%
 
160

 
135

 
18.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Mississippi Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
308

 
$
271

 
13.7
 %
 
$
1,265

 
$
1,187

 
6.6
 %
Earnings (Loss) Before Income Taxes
 
24

 
(202
)
 
N/M

 
134

 
(3,120
)
 
N/M

Net Income (Loss) Available to Common
 
149

 
(556
)
 
N/M

 
235

 
(2,590
)
 
N/M

 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Power1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
506

 
$
478

 
5.9
 %
 
$
2,205

 
$
2,075

 
6.3
 %
Earnings Before Income Taxes
 
(14
)
 
(17
)
 
N/M

 
82

 
178

 
(53.9
)%
Net Income Available to Common
 
(48
)
 
795

 
N/M

 
187

 
1,071

 
(82.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Company Gas1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,048

 
$
1,079

 
(2.9
)%
 
$
3,909

 
$
3,920

 
(0.3
)%
Earnings Before Income Taxes
 
67

 
74

 
(9.5
)%
 
836

 
610

 
37.0
 %
Net Income Available to Common
 
78

 
(60
)
 
N/M

 
372

 
243

 
53.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M - not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- See Financial Highlights pages for discussion of certain significant items occurring during the periods presented.
(1) Financial comparisons to the prior year were impacted by (i) Southern Company Gas' disposition of: (a) Pivotal Home Solutions on June 4, 2018, (b) Elizabethtown Gas and Elkton Gas on July 1, 2018, and (c) Florida City Gas on July 29, 2018; (ii) the disposition of Southern Power Company’s ownership interest in Plants Oleander and Stanton on December 4, 2018; and (iii) Southern Power Company's sale of (a) a 33% equity interest in a limited partnership indirectly owning substantially all of its solar facilities on May 22, 2018 and (b) a noncontrolling interest in its subsidiary owning eight operating wind facilities on December 11, 2018.


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