Common Stock and Stock Compensation (Tables)

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of stock options granted:



Year Ended December 31	2013	2012	2011
Expected volatility	16.6%	17.7%	17.5%
Expected term (in years)	5.0	5.0	5.0
Interest rate	0.9%	0.9%	2.3%
Dividend yield	4.4%	4.2%	4.8%
Weighted average grant-date fair value	$2.93	$3.39	$3.23

Southern Company's activity in the stock option program for 2013 is summarized below:



	Shares Subject to Option		Weighted Average Exercise Price
Outstanding at December 31, 2012	35,916,303		$	36.37
Granted	9,152,716		44.17
Exercised	(6,078,735	)	33.39
Cancelled	(170,918	)	43.30
Outstanding at December 31, 2013	38,819,366		$	38.64
Exercisable at December 31, 2013	24,150,442		$	35.70

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of performance share award units granted:



Year Ended December 31	2013	2012	2011
Expected volatility	12.0%	16.0%	19.2%
Expected term (in years)	3.0	3.0	3.0
Interest rate	0.4%	0.4%	1.4%
Annualized dividend rate	$1.96	$1.89	$1.82
Weighted average grant-date fair value	$40.50	$41.99	$35.97

Shares used to compute diluted earnings per share were as follows:



	Average Common Stock Shares
	2013	2012	2011
	(in millions)
As reported shares	877	871	857
Effect of options and performance share award units	4	8	7
Diluted shares	881	879	864

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of stock options granted:



Year Ended December 31	2013	2012	2011
Expected volatility	16.6%	17.7%	17.5%
Expected term (in years)	5.0	5.0	5.0
Interest rate	0.9%	0.9%	2.3%
Dividend yield	4.4%	4.2%	4.8%
Weighted average grant-date fair value	$2.93	$3.39	$3.23

The Company's activity in the stock option program for 2013 is summarized below:



	Shares Subject to Option		Weighted Average Exercise Price
Outstanding at December 31, 2012	1,388,915		$	36.08
Granted	285,209		44.06
Exercised	(281,377	)	33.62
Cancelled	—		—
Outstanding at December 31, 2013	1,392,747		$	38.21
Exercisable at December 31, 2013	883,985		$	35.29

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of performance share award units granted:



Year Ended December 31	2013	2012	2011
Expected volatility	12.0%	16.0%	19.2%
Expected term (in years)	3.0	3.0	3.0
Interest rate	0.4%	0.4%	1.4%
Annualized dividend rate	$1.96	$1.89	$1.82
Weighted average grant-date fair value	$40.50	$41.99	$35.97

Alabama Power [Member]

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of stock options granted:



Year Ended December 31	2013	2012	2011
Expected volatility	16.6%	17.7%	17.5%
Expected term (in years)	5.0	5.0	5.0
Interest rate	0.9%	0.9%	2.3%
Dividend yield	4.4%	4.2%	4.8%
Weighted average grant-date fair value	$2.93	$3.39	$3.23

The Company's activity in the stock option program for 2013 is summarized below:



	Shares Subject to Option		Weighted Average Exercise Price
Outstanding at December 31, 2012	6,060,552		$	36.02
Granted	1,319,038		44.07
Exercised	(1,035,611	)	32.74
Cancelled	(4,271	)	42.88
Outstanding at December 31, 2013	6,339,708		$	38.23
Exercisable at December 31, 2013	4,021,541		$	35.29

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of performance share award units granted:



Year Ended December 31	2013	2012	2011
Expected volatility	12.0%	16%	19.2%
Expected term (in years)	3.0	3.0	3.0
Interest rate	0.4%	0.4%	1.4%
Annualized dividend rate	$1.96	$1.89	$1.82
Weighted average grant-date fair value	$40.50	$41.99	$35.97

Georgia Power [Member]

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of stock options granted:



Year Ended December 31	2013	2012	2011
Expected volatility	16.6%	17.7%	17.5%
Expected term (in years)	5.0	5.0	5.0
Interest rate	0.9%	0.9%	2.3%
Dividend yield	4.4%	4.2%	4.8%
Weighted average grant-date fair value	$2.93	$3.39	$3.23

The Company's activity in the stock option program for 2013 is summarized below:



	Shares Subject to Option		Weighted Average Exercise Price
Outstanding at December 31, 2012	6,547,498		$	36.18
Granted	1,509,662		44.09
Exercised	(1,196,585	)	33.38
Cancelled	(11,421	)	40.99
Outstanding at December 31, 2013	6,849,154		$	38.41
Exercisable at December 31, 2013	4,321,853		$	35.51

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of performance share award units granted:



Year Ended December 31	2013	2012	2011
Expected volatility	12.0%	16.0%	19.2%
Expected term (in years)	3.0	3.0	3.0
Interest rate	0.4%	0.4%	1.4%
Annualized dividend rate	$1.96	$1.89	$1.82
Weighted average grant-date fair value	$40.50	$41.99	$35.97

Mississippi Power [Member]

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of stock options granted:



Year Ended December 31	2013	2012	2011
Expected volatility	16.6%	17.7%	17.5%
Expected term (in years)	5.0	5.0	5.0
Interest rate	0.9%	0.9%	2.3%
Dividend yield	4.4%	4.2%	4.8%
Weighted average grant-date fair value	$2.93	$3.39	$3.23

The Company's activity in the stock option program for 2013 is summarized below:



	Shares Subject to Option		Weighted Average Exercise Price
Outstanding at December 31, 2012	1,373,566		$	36.34
Granted	345,830		44.03
Exercised	(379,933	)	33.59
Cancelled	(5,870	)	44.94
Outstanding at December 31, 2013	1,333,593		$	39.08
Exercisable at December 31, 2013	898,518		$	37.02

The following table shows the assumptions used in the pricing model and the weighted average grant-date fair value of performance share award units granted:



Year Ended December 31	2013	2012	2011
Expected volatility	12.0%	16.0%	19.2%
Expected term (in years)	3.0	3.0	3.0
Interest rate	0.4%	0.4%	1.4%
Annualized dividend rate	$1.96	$1.89	$1.82
Weighted average grant-date fair value	$40.50	$41.99	$35.97