U5S 1 u5s.txt FORM U5S FOR YEAR ENDED DECEMBER 31, 2002 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ---------------- FORM U5S ANNUAL REPORT For the Fiscal Year Ended December 31, 2002 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 2002 TABLE OF CONTENTS ITEM PAGE NUMBER ---- ----------- 1. System Companies and Investments therein as of December 31, 2002 1 2. Acquisitions or Sales of Utility Assets 5 3 Issue, Sale, Pledge, Guarantee or Assumption 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 32 8. Service, Sales and Construction Contracts 35 9. Wholesale Generators and Foreign Utility Companies 36 10. Financial Statements and Exhibits A i ITEMS ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002. ---------------------------------------------------------------------------
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) 6,000,000 100 $3,377,740 $3,377,740 Alabama Energy Providers, Inc. 1,000 100 1 1 Alabama Property Company 1,000 100 10,214 10,214 Alabama Power Capital Trust I (ALABAMA TRUST I) (a) n/a n/a n/a n/a Alabama Power Capital Trust II (ALABAMA TRUST II) (a) n/a n/a n/a n/a Alabama Power Capital Trust III (ALABAMA TRUST III) (a) n/a n/a n/a n/a Alabama Power Capital Trust IV (ALABAMA TRUST IV) (b) n/a n/a 3,093 3,093 Alabama Power Capital Trust V (ALABAMA TRUST V) (b) n/a n/a 6,186 6,186 Southern Electric Generating Company (SEGCO) (c) 164,000 50 29,660 29,660 GEORGIA POWER COMPANY (GEORGIA) 7,761,500 100 4,434,447 4,434,447 SEGCO (c) 164,000 50 29,660 29,660 Piedmont-Forrest Corporation (PIEDMONT) 100,000 100 5,467 5,467 11,388 (d) 11,388 Georgia Power Capital Trust I (GEORGIA TRUST I) (a) n/a n/a n/a n/a Georgia Power Capital Trust II (GEORGIA TRUST II) (a) n/a n/a n/a n/a Georgia Power Capital Trust III (GEORGIA TRUST III) (a) n/a n/a n/a n/a
1 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002. ------------------------------------------------------------------------- (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 Georgia Power Capital Trust IV (GEORGIA TRUST IV) (b) n/a n/a 7,817 7,817 Georgia Power Capital Trust V (GEORGIA TRUST V) (b) n/a n/a 14,117 14,117 Georgia Power Capital Trust VI (GEORGIA TRUST VI) (b) n/a n/a 9,348 9,348 GULF POWER COMPANY (GULF) 992,717 100 549,505 549,505 Gulf Power Capital Trust I (GULF TRUST I) (b) n/a n/a 1,795 1,795 Gulf Power Capital Trust II (GULF TRUST II) (b) n/a n/a 1,883 1,883 Gulf Power Capital Trust III (GULF TRUST III) (b) n/a n/a 1,005 1,005 Gulf Power Capital Trust IV (GULF TRUST IV) (b) n/a n/a 1,353 1,353 MISSISSIPPI POWER COMPANY (MISSISSIPPI) 1,121,000 100 517,953 517,953 Mississippi Power Capital Trust I (MISSISSIPPI TRUST I) (a) n/a n/a n/a n/a Mississippi Power Capital Trust II (MISSISSIPPI TRUST II) (b) n/a n/a 0 0 Mississippi Power Services, Inc. 100 100 10 10 MOBILE ENERGY SERVICES HOLDINGS, INC. (MESH) 1,000 100 0 0 Mobile Energy Services Company, LLC (MESC) n/a 100 0 0 SAVANNAH ELECTRIC AND POWER COMPANY (SAVANNAH) 10,844,635 100 179,804 179,804 Savannah Electric and Power Capital Trust I (SAVANNAH ELECTRIC TRUST I) (b) n/a n/a 1,581 1,581 CHANGE IN CONTROL TRUST n/a n/a 23,275 23,275 DEFERRRED CASH TRUST n/a n/a 875 875
2 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002. ------------------------------------------------------------------------- (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 DEFERRED STOCK TRUST n/a n/a 4,311 4,311 SOUTHERN COMPANY HOLDINGS, INC. (e) 9,111 91.11 244,366 244,366 Southern Company Capital Funding, Inc. (Southern Funding) 1,000 100 52,170 52,170 Southern Company Capital Trust I (b) n/a n/a 10,395 10,395 Southern Company Capital Trust II (b) n/a n/a 2,390 2,390 Southern Company Capital Trust III (a) n/a n/a n/a n/a Southern Company Capital Trust IV (b) n/a n/a 6,186 6,186 Southern Company Capital Trust V (b) n/a n/a 4,636 4,636 Southern Company Capital Trust VI (b) n/a n/a 6,186 6,186 Southern Company Energy Solutions LLC n/a 100 5,004 5,004 Alabama Synfuel Energy, Inc. 1,000 100 16,670 16,670 Synfuel Services, Inc. 1,000 100 5,790 5,790 Energy Related Activities Inc. 1,000 100 2,983 2,983 Southern Company Electrotechnologies, Inc. 100 100 3,091 3,091 SE Finance Capital Corporation II (f) 1,000 100 176,998 176,998 SE Finance Capital Corporation 1,000 100 152,038 152,038 Southern Energy Finance Company, Inc. 1,000 100 332,509 332,509 EPZ Lease, Inc. 1,000 100 48,103 48,103 EPZ Lease, LLC n/a n/a 108,518 108,518 EPZ Lease Holding A, LLC n/a n/a 32,885 32,885 EPZ Lease Trust A (b) n/a n/a 32,884 32,884 EPZ Lease Holding B, LLC n/a n/a 32,885 31,093 EPZ Lease Trust B (b) n/a n/a 32,884 31,091 EPZ Lease Holding C, LLC n/a n/a 43,846 41,456 EPZ Lease Trust C (b) n/a n/a 43,845 41,455 Dutch Gas Lease, Inc. 1,000 100 154,144 156,281 Dutch Gas Lease, LLC n/a n/a 239,265 220,404 Dutch Gas Lease Holding A, LLC n/a n/a 93,626 86,125 Dutch Gas Lease Trust A (b) n/a n/a 93,626 86,125 Dutch Gas Lease Holding B, LLC n/a n/a 74,741 69,037 Dutch Gas Lease Trust B (b) n/a n/a 74,741 69,037 Dutch Gas Lease Holding C, LLC n/a n/a 70,898 65,241 Dutch Gas Lease Trust C (b) n/a n/a 70,898 65,241 NUON Lease, Inc. 1,000 100 140,192 140,946 NUON Lease Holding D, LLC n/a n/a 91,893 91,893 NUON Trust D (b) n/a n/a 91,893 91,893
3 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002. ------------------------------------------------------------------------- (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 NUON Lease Holding E, LLC n/a n/a 68,821 68,821 NUON Trust E (b) n/a n/a 68,821 68,821 NUON Lease Holding F, LLC n/a n/a 45,175 45,175 NUON Trust F (b) n/a n/a 45,175 45,175 GAMOG Lease, Inc. 1,000 100 108,854 108,854 GAMOG Lease Holding G, LLC n/a n/a 34,707 34,707 GAMOG Trust G (b) n/a n/a 34,707 34,707 GAMOG Lease Holding H, LLC n/a n/a 82,657 82,657 GAMOG Trust H (b) n/a n/a 82,657 82,657 GAMOG Lease Holding I, LLC n/a n/a 41,635 41,635 GAMOG Trust I (b) n/a n/a 41,635 41,635 Clairton, Inc. 1,000 100 19,290 19,290 Clairton, LLC 1,000 85 26,536 26,536 Clairton 2, Inc. 1,000 100 4,303 4,303 Carbontronics, Inc. 1,000 100 28,786 28,786 Carbontronics, LLC 1,000 99 18,115 18,115 SE Choctaw, Inc. (g) 1,000 100 79,000 79,000 SE Choctaw II, LLC (h) n/a 100 77,000 77,000 SE Choctaw, LLC (i) n/a 100 77,000 77,000 SOUTHERN COMPANY FUNDING CORPORATION 1,000 100 10 10 SOUTHERN COMPANY GAS LLC (Southern Company GAS) (j) n/a 100 40,546 40,546 SOUTHERN COMPANY SERVICES, INC. (SCS) (k) 14,500 100 (14,114) (k) (14,114) (k) SOUTHERN COMMUNICATIONS SERVICES, INC. (Southern LINC) 500 100 89,392 89,392 SOUTHERN ELECTRIC RAILROAD COMPANY (SERC) 5,000 100 5 5 SOUTHERN NUCLEAR OPERATING COMPANY, INC. (Southern Nuclear) 1,000 100 16,210 16,210 SOUTHERN POWER COMPANY 1,000 100 746,604 746,604 Cherokee Falls Development of South Carolina LLC (Cherokee) (l) n/a 100 38 38 Klondike Development LLC (Klondike) n/a 100 613 613 Madison County Energy Center LLC (Madison) n/a 100 1 1 Southern Company-Florida LLC 1,000 100 170,537 170,537 Southern Company-Jet Port LLC (m) 1,000 100 3,714 3,714
4 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002. ------------------------------------------------------------------------- (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 TELECOM, INC. (Southern Telecom) 1,000 100 5,351 5,351 SOUTHERN MANAGEMENT DEVELOPMENT, INC. (Southern 500 100 19,984 19,984 Management) (e) Southern Company Holdings, Inc. 889 8.89 268,210 23,844 Notes to Item 1: (a) Inactive and/or dissolved. The Alabama Power Capital Trusts I, II and III were dissolved in January 2003. The Mississippi Power Capital Trust I was dissolved in July 2002. The Southern Company Capital Trust III and Georgia Power Capital Trusts I and III were dissolved in September 2002 and the Georgia Power Capital Trust II was dissolved in December 2002. (b) A Delaware business trust. The form of equity investment is paid in capital. (c) SEGCO is 50% owned by ALABAMA and 50% owned by GEORGIA. The amounts shown reflect the respective ownership interests of each company. (d) Promissory note due on demand; interest rate, based on GEORGIA's embedded cost of capital, was 9.31% at January 1, 2003. (e) Southern Company Holdings, Inc. is partially owned by Southern Management. (f) A Delaware corporation organized on October 7, 2002. (g) A Mississippi corporation organized on October 8, 2002. (h) A Delaware limited liability company organized on September 6, 2002. Also qualified to do business in Mississippi on November 25, 2002. (i) A Delaware limited liability company organized on September 6, 2002. Also qualified to do business in Mississippi on December 5, 2002. (j) A Georgia limited liability company organized on June 3, 2002. (k) See Consolidating Statements of Comprehensive Income on page A-16 herein for item affecting SCS' book value. (l) A Delaware limited liability company organized on November 29, 2001. (m) A Delaware limited liability company organized on March 26, 2002. Also qualified to do business in Florida on March 27, 2002.
ITEM 2. ACQUISITION OR SALES OF UTILITY ASSETS. NONE. ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES. --------------------------------------------------------------------------- NONE. 5 ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES.
Calendar Year 2002 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) SOUTHERN: Trust Preferred Securities Southern Company Capital Trust III SOUTHERN None $200,000,000 $200,000,000 $200,000,000 ALABAMA: First Mortgage Bonds 7.75% Series due 2023 ALABAMA None $100,000,000 $100,000,000 $100,000,000 7.45% Series due 2023 ALABAMA None $150,000,000 $150,000,000 $150,000,000 7.30% Series due 2023 ALABAMA None $100,000,000 $100,000,000 $100,000,000 Senior Notes 6.50% Series due 2018 ALABAMA None $217,875,000 $217,875,000 $217,875,000 6.375 Series due 2018 ALABAMA None $100,000,000 $100,000,000 $100,000,000 6.25% Series due 2010 ALABAMA None $100,000,000 $100,000,000 $100,000,000 Preferred Stock Auction Rate Series 1988 ALABAMA None $50,000,000 $50,000,000 $50,000,000 Auction Rate Series 1993 ALABAMA None $20,000,000 $20,000,000 $20,000,000 Trust Preferred Securities ALABAMA TRUST I ALABAMA None $97,000,000 $97,000,000 $97,000,000 ALABAMA TRUST II ALABAMA None $200,000,000 $200,000,000 $200,000,000 ALABAMA TRUST III ALABAMA None $50,000,000 $50,000,000 $50,000,000 GEORGIA: First Mortgage Bonds 6.07% Series due 2005 GEORGIA None $1,860,000 $1,860,000 $1,860,000 Senior Notes Variable Rate Series E due 2002 GEORGIA None $300,000,000 $300,000,000 $300,000,000 5.75% Series F due 2003 GEORGIA None $30,000,000 $30,000,000 $30,000,000 Pollution Control Revenue Bonds 6.25% Series due 2019 GEORGIA None $3,200,000 $3,200,000 $3,200,000 6% Series due 2018 GEORGIA None $4,600,000 $4,600,000 $4,600,000 Trust Preferred Securities GEORGIA TRUST I GEORGIA None $225,000,000 $225,000,000 $225,000,000 GEORGIA TRUST II GEORGIA None $189,250,000 $189,250,000 $189,250,000 GEORGIA TRUST III GEORGIA None $175,000,000 $175,000,000 $175,000,000 GULF: Senior Notes 6.70% Series due 2038 GULF None $454,000 None $454,000
6 ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES. Calendar Year 2002
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) GULF (continued): Pollution Control Bonds 6.20% Series due 2023 GULF None $13,000,000 None $13,000,000 6.30% Series due 2024 GULF None $22,000,000 None $22,000,000 Variable rate Series due 2024 GULF None $20,000,000 None $20,000,000 MISSISSIPPI: First Mortgage Bonds 7.45% Series due 2023 MISSISSIPPI None $650,000 None $650,000 Pollution Control Bonds 5.80% Series due 2002 MISSISSIPPI None $20,000 None $20,000 Variable rate Series due 2022 MISSISSIPPI None $16,750,000 None $16,750,000 5.65% Series due 2023 MISSISSIPPI None $7,875,000 None $7,875,000 5.65% Series due 2023 MISSISSIPPI None $18,000,000 None $18,000,000 Senior Notes Series C Floating Rate due 2002 MISSISSIPPI None $80,000,000 None $80,000,000 Series A due 2038 MISSISSIPPI None $550,000 None $550,000 Trust Preferred Securities MISSISSIPPI TRUST I MISSISSIPPI None 1,400,000 None $35,000,000 SAVANNAH: Senior Notes 6 5/8% Intermediate Bonds due 2015 SAVANNAH None $30,000,000 $30,000,000 $30,000,000 First Mortgage Bonds 7.40% Series due 2023 SAVANNAH None $24,311,777 $24,311,777 $24,311,777 SOUTHERN POWER: Senior Notes 6.25% Series A due 2012 SOUTHERN POWER None $575,000,000 $575,000,000 $575,000,000 Note to Item 4: All transactions exempt pursuant to Rule 42(b)(2), (4) or (5) or authorized in File No. 70-8095.
7 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 ------------- -------------- ------------ -------- SOUTHERN (one item) (1) 538,935 shares $5,389,350 ALABAMA (one item) (2) 204 shares $1 ALABAMA (five items) (3) $1,703,090 $1,703,090 GEORGIA (one item) (4) 3,604,674 $2,220,805 GULF (nine items) (2) 640 shares $1 Southern Management (two items) (5) 106,342 shares $117,890 (5) 10.2% $2,061,283 SAVANNAH (one item) (2) 301 shares $1 SOUTHERN (one item) (6) option for 323,812 shares $5,025,512 Southern Telecom (one item) (7) 4,214,539 warrants $281,045
Notes to Item 5: (1) Represents SOUTHERN's investment in Pantellos. Pantellos is an independent, open marketplace for the energy and utility industries that brings together buyers and sellers to improve the way they do business. (2) Securities representing bankruptcy distributions applicable to obligations of customers incurred in the ordinary course of business. (3) 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. (4) 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.) (5) Investment in a limited partnership that consists of energy related companies. (6) Represents SOUTHERN's option on Mirant Corporation (Mirant) shares used in 2003 to settle certain employee compensation liabilities related to a long-term incentive plan assumed in connection with the spin-off of Mirant (File No. 70-9727). The option was settled in cash on March 15, 2003 and the related liabilities have also been paid (7) Investment made in a research and development enterprise dedicated to developing power line communication technology. 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) One Energy Place Pensacola, FL 32520 (d) 2992 West Beach Boulevard Gulfport, MS 39501 (e) 600 East Bay Street Savannah, GA 31401 (f) 5555 Glenridge Connector Atlanta, GA 30342 (g) 42 Inverness Center Parkway Birmingham, AL 35242 (h) 40 Inverness Center Parkway Birmingham, AL 35242 (i) 601 Pennsylvania Ave., NW Suite 800 South Washington, DC 20004 (j) 1403 Foulk Road Foulkstone Plaza Suite 102-9 Wilmington, DE 19803 (k) 4000 DeKalb Technology Parkway Suite 100 Atlanta, GA 30340 (l) Position Code ------------------------------------------ Chairman of the Board CH Vice Chairman of the Board VCH Director D President P Chief Executive Officer CEO Chief Financial Officer CFO Chief Accounting Officer CAO Chief Information Officer CIO Chief Operating Officer COO 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 SOUTHERN Name and Principal Address (a) Position -------------------------------------------- Daniel P. Amos D 1932 Wynnton Road Columbus, GA 31999 Dorrit J. Bern D 450 Winks Lane Bensalem, PA 19020 Thomas F. Chapman D 1600 Peachtree Street, NW Atlanta, GA 30309 H. Allen Franklin D,P,CEO,CH 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 Donald M. James D P. O. Box 385014 Birmingham, AL 35238-5014 Zack T. Pate D 700 Galleria Parkway Atlanta, GA 30339 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 Dwight H. Evans EVP Leonard J. Haynes EVP G. Edison Holland EVP,L Gale E. Klappa EVP Charles D. McCrary (b) EVP David M. Ratcliffe (c) EVP David R. Altman VP Rebecca A. Blalock (c) VP Jackie J. Collins VP Ellen N. Lindemann VP Joseph A. Miller (j) VP W. Dean Hudson (c) CAO,C Tommy Chisholm S ALABAMA Name and Principal Address (b) Position -------------------------------------------- Whit Armstrong D P. O. Box 900 Enterprise, AL 36331 David J. Cooper D 118 N. Royal Street Mobile, AL 36602 H. Allen Franklin (a) D R. Kent Henslee D 754 Chestnut Street Gadsden, AL 35901 Carl E. Jones, Jr. D P. O. Box 1024 Birmingham, AL 35202 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 Charles D. McCrary D,P,CEO Mayer Mitchell D 3800 Airport Boulevard, Suite 301 Mobile, AL 36608 Robert D. Powers D 202 East Broad Street Eufaula, AL 36027 Andreas Renschler D Dornierstrasse 6 Renningen, Germany C. Dowd Ritter D P. O. Box 11007 Birmingham, AL 35288 James H. Sanford D 1001 McQueen Smith Road South Prattville, AL 36066 John C. Webb, IV D 125 W. Washington Street Demopolis, AL 36732 James W. Wright D 100 Commerce Street Montgomery, AL 36104 William B. Hutchins, III EVP,CFO,T C. Alan Martin EVP Steven R. Spencer EVP Robert Holmes, Jr. SVP Robin A. Hurst SVP Rodney O. Mundy SVP,L Michael L. Scott SVP Jerry L. Stewart SVP Art P. Beattie VP,CAO,C Christopher T. Bell VP Williard L. Bowers VP Gerald L. Johnson VP Marsha S. Johnson VP William B. Johnson VP J. Bruce Jones VP William B. Keller VP Bobby Kerley VP Bobbie J. Knight VP Ellen N. Lindemann (a) VP Gordon Martin VP Donald W. Reese VP Julia H. Segars VP Julian H. Smith, Jr. VP W. Ronald Smith VP Cheryl A. Thompson VP Terry H. Waters VP William E. Zales, Jr. VP,S 10 ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued) ALABAMA PROPERTY COMPANY Name and Principal Address (b) Position -------------------------------------------- Charles D. McCrary D,P William B. Hutchins, III D,VP C. Alan Martin D,VP Larry Grill VP Art P. Beattie C William E. Zales, Jr. S J. Randy DeRieux T ALABAMA ENERGY PROVIDERS, INC. Name and Principal Address (b) Position -------------------------------------------- Rodney O. Mundy D William B. Hutchins, III D,VP C. Alan Martin D Michael L. Scott D,P William E. Zales, Jr. S J. Randy DeRieux T GEORGIA Name and Principal Address (c) Position -------------------------------------------- Juanita Baranco D 7060 Jonesboro Road Morrow, GA 30260 Anna R. Cablik D 1513 Johnson Ferry Road Suite B-20 Marietta, GA 30062 H. Allen Franklin (a) D L. G. Hardman III D P. O. Box 149 Commerce, GA 30529 G. Joseph Prendergast D 100 North Main Street Winston-Salem, NC 27101 David M. Ratcliffe D,P,CEO Richard W. Ussery D 1600 First Avenue Columbus, GA 31902-1755 William Jerry Vereen D P. O. Box 1663 Moultrie, GA 31776-1663 Carl Ware D P. O. Box Drawer 1734, Nat 25 Atlanta, GA 30301 E. Jenner Wood, III D P.O. Box 4418 M.C. 0445 Atlanta, GA 30302 William C. Archer, III EVP Allen L. Leverett EVP,T,CFO Judy M. Anderson SVP Ronnie L. Bates SVP M. A. Brown SVP James K. Davis SVP Christopher C. Womack SVP W. Craig Barrs VP A. Bryan Fletcher VP J. Kevin Fletcher VP O. Ben Harris VP W. Ron Hinson VP,C,CAO Chris M. Hobson VP Ed F. Holcombe VP Richard L. Holmes VP E. Lamont Houston VP Anne Kaiser VP Ellen N. Lindemann (a) VP Frank J. McCloskey VP Leslie Sibert VP James E. Sykes VP Jeffrey L. Wallace VP Janice G. Wolfe S PIEDMONT Name and Principal Address (c) Position -------------------------------------------- David M. Ratcliffe D,P Allen L. Leverett D,EVP,T Janice G. Wolfe D,VP,S SEGCO Name and Principal Address (b) Position -------------------------------------------- Art P. Beattie D,C William P. Bowers D,VP Robert L. Boyer D Allen L. Leverett (c) D William B. Hutchins, III D,VP Charles D. McCrary D,P David M. Ratcliffe (c) D,VP Jerry L. Stewart D Christopher C. Womack D William E. Zales, Jr. S J. Randy DeRieux T 11 ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued) GULF Name and Principal Address (d) Position -------------------------------------------- C. LeDon Anchors D 909 Mar Walt Drive Suite 1014 Fort Walton Beach, FL 32547 William C. Cramer D 2251 West 23rd Street Panama City, FL 32405 Fred C. Donovan, Sr. D P. O. Box 13370 Pensacola, FL 32591 Thomas A. Fanning D,P,CEO H. Allen Franklin (a) D William D. Pullum D 8494 Navarre Parkway Navarre, FL 32566 Joseph K. Tannehill D 10 Arthur Drive Lynn Haven, FL 32444 F. M. Fisher, Jr. VP J. E. Hodges, Jr. VP Ronnie R. Labrato VP,CFO,CAO,C Ellen N. Lindemann (a) VP Warren E. Tate VP,S,T Gene L. Ussery, Jr. (e) VP MISSISSIPPI Name and Principal Address (e) Position -------------------------------------------- Tommy E. Dulaney D P. O. Box 2929 Meridian, MS 39302 Michael D. Garrett D,P,CEO Linda T. Howard D P.O. Box 1588 Laurel, MS 39401 Robert C. Khayat D P. O. Box 1848, 123 Lyceum University, MS 38677 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 Ellen N. Lindemann (a) VP Don E. Mason VP Michael L. Scott VP Michael W. Southern VP,CFO,T Gene L. Ussery, Jr. VP Frances V. Turnage C Vicki L. Pierce S MISSISSIPPI POWER SERVICES, INC. Name and Principal Address (e) Position -------------------------------------------- H. Ed Blakeslee D,P,CEO Michael D. Garrett D,CH Don E. Mason D,VP Michael W. Southern D,VP,T,CFO Gene L. Ussery, Jr. D,VP Frances V. Turnage CAO,C Vicki L. Pierce S SAVANNAH Name and Principal Address (f) Position -------------------------------------------- Gus H. Bell, III D P. O. Box 14247 Savannah, GA 31416 Archie H. Davis D P. O. Box 188 Savannah, GA 31402 Anthony R. James D,P,CEO Walter D. Gnann D P. O. Box 334 Springfield, GA 31329 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 Leonard J. Haynes (a) VP Ellen N. Lindemann (a) VP Sandra R. Miller VP Kirby R. Willis VP,T,CFO Nancy Frankenhauser S,CAO,C SCS Name and Principal Address (c) Position -------------------------------------------- H. Allen Franklin (a) D,P,CEO Charles D. McCrary (b) D David M. Ratcliffe D W. Paul Bowers (b) EVP Dwight H. Evans (a) EVP Leonard J. Haynes (a) EVP G. Edison Holland, Jr. (a) EVP,L Gale E. Klappa (a) EVP Susan N. Story (b) EVP Andrew J. Dearman, III (b) SVP 12 ITEM 6. OFFICERS AND DIRECTORS --------------------------------- PART I. (Continued) SCS (continued) Name and Principal Address (c) Position -------------------------------------------- Charles H. Goodman (b) SVP Carson B. Harreld (a) SVP,T W. Dean Hudson SVP,C,CFO Douglas E. Jones (a) SVP Ellen N. Lindemann (a) SVP William K. Newman (b) SVP C. Philip Saunders (a) SVP Michael L. Scott SVP Jerry L. Stewart (b) SVP David R. Altman (a) VP Curtis Ashley Baker VP William O. Ball VP Robert A. Bell (a) VP Ronald P. Bertasi (l) VP Ronald R. Campbell VP Tommy Chisholm (a) VP,S David L. Coker VP Jackie J. Collins (a) VP James M. Corbitt (b) VP Ed Day (a) VP James C. Fleming (a) VP Barbara S. Hingst VP Charles D. Long, IV (b) VP Jacqualyn Lowe VP William L. Marshall, Jr. (b) VP Christopher S. Miller (a) VP James H. Miller, III (b) VP Joseph A. Miller (j) VP Sandra R. Miller (f) VP Karl R. Moor (j) VP Robert G. Moore (d) VP Rodney O. Mundy (b) VP Earl B. Parsons, III (b) VP Cliff S. Thrasher (a) VP Anthony J. Topazi (b) VP Gene L. Ussery, Jr. (e) VP Stephen A. Wakefield (a) VP Southern LINC Name and Principal Address (g) Position -------------------------------------------- Robert G. Dawson D,P,CEO H. Allen Franklin (a) D Gale E. Klappa (a) D Charles D. McCrary (b) D David M. Ratcliffe (c) D R. Craig Elder VP,T,CFO Rodney H. Johnson VP Julie T. Pigott VP Tommy Chisholm (a) S Carmine A. Reppucci C SERC Name and Principal Address (h) Position -------------------------------------------- W. Paul Bowers (b) D,P T. Roy Harrell (b) VP Sandra R. Miller (e) VP Jerry L. Stewart (b) VP Tommy Chisholm (a) S,T Southern Nuclear Name and Principal Address (i) Position -------------------------------------------- H. Allen Franklin (a) D William G. Hairston, III D,P,CEO Charles D. McCrary (b) D David M. Ratcliffe (c) D Jackie D. Woodard EVP James W. Averett VP James B. Beasley VP John E. Garlington VP Jeffrey T. Gasser VP Kathleen S. King VP,CFO,C,T Ellen N. Lindemann (a) VP Louis B. Long VP John O. Meier VP,L H. Lewis Sumner, Jr. VP Sherry A. Mitchell S Southern Company Holdings, Inc. Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Gale E. Klappa D Carson B. Harreld D,P,CEO Allen L. Leverett (c) D Christopher J. Kysar VP,T Tommy Chisholm S Southern Company Energy Solutions LLC Name and Principal Address (l) Position -------------------------------------------- Ronald P. Bertasi P,CEO Robert M. Gilbert VP,CFO Jackie Chen T Tommy Chisholm (a) S SE Finance Capital Corporation Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Carson B. Harreld D,P,CEO Gale E. Klappa D Allen L. Leverett (c) D James C. Fleming VP Christopher J. Kysar VP,T,CFO Tommy Chisholm S 13 ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued) SE Finance Capital Corporation II Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Carson B. Harreld D,P,CEO Gale E. Klappa D Allen L. Leverett (c) D James C. Fleming VP Christopher J. Kysar VP,T,CFO Tommy Chisholm S SE Choctaw Inc. Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Carson B. Harreld D,P,CEO Gale E. Klappa D Allen L. Leverett (c) D James C. Fleming VP Christopher J. Kysar VP,T,CFO Tommy Chisholm S Southern Energy Finance Company Inc. Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Carson B. Harreld D,P,CEO Gale E. Klappa D Allen L. Leverett (c) D James C. Fleming VP Christopher J. Kysar VP,T,CFO Tommy Chisholm S Southern Power Company Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) D,P,CEO H. Allen Franklin D Gale E. Klappa D Charles D. McCrary (b) D David M. Ratcliffe (c) D James H. Miller, III (b) SVP,L Robert G. Moore (d) SVP Susan N. Story (b) SVP Cliff S. Thrasher VP,C,CFO Ed Day VP Douglas E. Jones VP Anthony J. Topazi (b) VP Christopher Kysar T Tommy Chisholm S Southern Company-Florida LLC Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) P,CEO Cliff S. Thrasher VP,T Tommy Chisholm S Southern Company-Jet Port LLC Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) P,CEO James H. Miller, III VP Cliff S. Thrasher CFO,T Tommy Chisholm S Southern Company Funding Corporation Name and Principal Address (a) Position -------------------------------------------- Gale E. Klappa D Carson B. Harreld D,P,CEO Earl C. Long D,VP,CFO,T EPZ Lease, Inc. Name and Principal Address (k) Position -------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 Christopher J. Kysar (a) D,VP,T,CFO Carson B. Harreld (a) D,P,CEO Daniel P. McCollum D,S Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C James C. Fleming (a) VP EPZ Lease, LLC Name and Principal Address (k) Position -------------------------------------------- Southern Energy Finance Member Company Inc. EPZ Lease, Inc. Member EPZ Lease Holding A, LLC Name and Principal Address (k) Position -------------------------------------------- EPZ Lease, Inc. Member EPZ Lease, LLC Member EPZ LeaseHolding B, LLC Name and Principal Address (k) Position -------------------------------------------- EPZ Lease, Inc. Member EPZ Lease, LLC Member 14 ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued) EPZ Lease Holding C, LLC Name and Principal Address (k) Position -------------------------------------------- EPZ Lease, Inc. Member EPZ Lease, LLC Member Dutch Gas Lease, Inc. Name and Principal Address (k) Position -------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 Christopher J. Kysar (a) D,VP,T,CFO Carson B. Harreld (a) D,P,CEO Daniel P. McCollum D,S Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C James C. Fleming (a) VP Dutch Gas Lease, LLC Name and Principal Address (k) Position -------------------------------------------- Dutch Gas Lease, Inc. Member Dutch Gas Lease Holding A, LLC Name and Principal Address (k) Position -------------------------------------------- Dutch Gas Lease, LLC Member Dutch Gas Lease Holding B, LLC Name and Principal Address (k) Position -------------------------------------------- Dutch Gas Lease, LLC Member Dutch Gas Lease Holding C, LLC Name and Principal Address (k) Position -------------------------------------------- Dutch Gas Lease, LLC Member GAMOG Lease, Inc. Name and Principal Address (k) Position -------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 Carson B. Harreld (a) D,P,CEO Christopher J. Kysar (a) D,VP,T,CFO Daniel P. McCollum D,S Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C James C. Fleming (a) VP GAMOG Lease Holding G, LLC Name and Principal Address (k) Position -------------------------------------------- GAMOG Lease, Inc. Member GAMOG Lease Holding H, LLC Name and Principal Address (k) Position -------------------------------------------- GAMOG Lease, Inc. Member GAMOG Lease Holding I, LLC Name and Principal Address (k) Position -------------------------------------------- GAMOG Lease, Inc. Member NUON Lease, Inc. Name and Principal Address (k) Position -------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 Carson B. Harreld (a) D,P,CEO Christopher J. Kysar (a) D,VP,T,CFO Daniel P. McCollum D,S Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C James C. Fleming (a) VP NUON Lease Holding D, LLC Name and Principal Address (k) Position -------------------------------------------- NUON Lease, Inc. Member NUON Lease Holding E, LLC Name and Principal Address (k) Position -------------------------------------------- NUON Lease, Inc. Member NUON Lease Holding F, LLC Name and Principal Address (k) Position -------------------------------------------- NUON Lease, Inc. Member Southern Company Capital Funding, Inc. Name and Principal Address (k) Position -------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 15 ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued) Carson B. Harreld (a) D,P,CEO Christopher J. Kysar (a) D,VP Daniel P. McCollom D Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C Clairton, Inc. Name and Principal Address (k) Position -------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 Carson B. Harreld (a) D,P,CEO Christopher J. Kysar (a) D,VP,T,CFO Daniel P. McCollum D,S Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C James C. Fleming (a) VP Clairton 2, Inc. Name and Principal Address (k) Position -------------------------------------------- William R. Bechstein D,VP 1105 N. Market Street Suite 1300 Wilmington, DE 19801 Christopher J. Kysar (a) D,VP,T,CFO Carson B. Harreld (a) D,P,CEO Daniel P. McCollum D,S Morris, James, Hitchens & Williams LLP 222 Delaware Avenue Wilmington, DE 19899 Judith A. Rosenberg (a) D,C James C. Fleming (a) VP Clairton, LLC Name and Principal Address (k) Position -------------------------------------------- Clairton, Inc. Member Clairton 2, Inc. Member Carbontronics, Inc. Name and Principal Address (a) Position -------------------------------------------- Carson B. Harreld D,CEO,P Christopher J. Kysar D,VP,T,CFO Judith A. Rosenberg D James C. Fleming VP Tommy Chisholm S Carbontronics, LLC Name and Principal Address (k) Position -------------------------------------------- Carbontronics, Inc. Member SE Finance Company, Inc. Member Southern Telecom, Inc. Name and Principal Address (g) Position -------------------------------------------- Robert G. Dawson D,P,CEO H. Allen Franklin (a) D Gale E. Klappa (a) D Charles D. McCrary (b) D David M. Ratcliffe (c) D R. Craig Elder VP,CFO,T Tommy Chisholm (a) S Carmine A. Reppucci C Southern Management Name and Principal Address (l) Position -------------------------------------------- Ronald P. Bertasi D,P,CEO H. Allen Franklin (a) D Leonard J. Haynes (a) D Gale E. Klappa (a) D Charles D. McCrary (b) D David M. Ratcliffe (c) D Robert M. Gilbert VP,CFO,T Tommy Chisholm (a) S Synfuel Services Inc. Name and Principal Address (b) Position -------------------------------------------- W. Paul Bowers D Jerry L. Stewart D,P Anthony J. Topazi D,VP Art P. Beattie VP Earl B. Parsons, III VP Tommy Chisholm (a) S Cliff S. Thrasher (a) T Energy Related Activities, Inc. Name and Principal Address (b) Position -------------------------------------------- W. Paul Bowers D Jerry L. Stewart D,VP Anthony J. Topazi D,P Art P. Beattie VP Earl B. Parsons, III VP Tommy Chisholm (a) S Cliff S. Thrasher (a) T 16 ITEM 6. OFFICERS AND DIRECTORS PART I. (Continued) Alabama Synfuel Energy, Inc. Name and Principal Address (b) Position -------------------------------------------- W. Paul Bowers D Jerry L. Stewart D,VP Anthony J. Topazi D,P Art P. Beattie VP Tommy Chisholm (a) S Cliff S. Thrasher (a) T Klondike Development LLC Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) D Cliff S. Thrasher CFO, T Tommy Chisholm S Southern Power Company Member Southern Company Electrotechnologies, Inc. Name and Principal Address (a) Position -------------------------------------------- H. Allen Franklin D Carson B. Harreld D,P,CEO Gale E. Klappa D Allen L. Leverett (c) D James C. Fleming VP Christopher J. Kysar VP,T Tommy Chisholm S Cherokee Falls Development of South Carolina LLC Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) P,CEO James H. Miller, III (b) VP Cliff S. Thrasher CFO,T Anthony J. Topazi (b) VP Tommy Chisholm S Madison County Energy Center LLC Name and Principal Address (a) Position -------------------------------------------- W. Paul Bowers (b) P,CEO Cliff S. Thrasher CFO,T James H. Miller, III VP Anthony J. Topazi VP Tommy Chisholm S Southern Company GAS Name and Principal Address (a) Position -------------------------------------------- C. Philip Saunders P,CEO Constance J. Erickson C Tommy Chisholm S Carson B. Harreld T 17 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 Daniel P. Amos Synovus Financial Corporation, Columbus, GA Director (a);(b) 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, Chief Executive Officer, President (c) Gus H. Bell, III SunTrust Bank, Savannah, GA Director (c) David J. Cooper SouthTrust Bank, Birmingham, AL Director (c) Archie H. Davis The Savannah Bancorp, Savannah, GA President, Chief Executive Officer (c) The Savannah Bank N.A., Savannah, GA Chief Executive Officer (c) Bryan Bank & Trust, Richmond Hill, GA Director (c) H. Allen Franklin SouthTrust Corporation, Birmingham, AL Director (a);(c);(d);(e);(f) Michael D. Garrett Hancock Bank, Gulfport, MS Director (c) L. G. Hardman III nBank.Corp., Commerce, GA Chairman of the Board of Directors and Chief Executive Officer (c);(g) nBank N.A., Commerce, GA Chairman of the Board of Directors (c);(g) G. Edison Holland FCB Financial Corporation, Savannah, GA Director (e) Charles D. McCrary AmSouth Bancorporation, Director (a);(c);(e);(f) Birmingham, AL AmSouth Bank, Birmingham, AL Director (a);(c);(e);(f) Anthony R. James SunTrust Bank, Savannah, GA Director (c);(f) Donald M. James SouthTrust Corporation, Birmingham, AL Director (a) Carl E. Jones, Jr. Regions Financial Corporation, Chairman of the Board of Birmingham, AL Directors, President, Chief Executive Officer (c) Bobby J. Kerley Mid South Bank, Eufaula, AL Director (f) Wallace D. Malone, Jr. SouthTrust Corporation, Birmingham, AL Chairman of the Board of Directors and Chief Executive Officer (c) Mayer Mitchell The Banc of Birmingham, Birmingham, AL Director (c)
18 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 C. Dowd Ritter, III AmSouth Bancorporation, Birmingham, AL Chairman, Chief Executive Officer (c) AmSouth Bank, Birmingham, AL Chairman, Chief Executive Officer (c) George A. Schloegel Hancock Bank - Mississippi, Gulfport, MS Director, Chief Executive Officer and President (c) Hancock Holding Company, Gulfport, MS Vice Chairman of the Board of Directors (c) Hancock Bank - Louisiana, Baton Rouge, LA Director (d) Steven R. Spencer AmSouth Bank, Birmingham, AL Director (c) W. Ronald Smith SouthTrust Bank of Calhoun County, N.A. Anniston, AL Director (c) Gerald St. Pe' Merchants & Marine Bank, Pascagoula, MS Director (a) Philip J. Terrell Hancock Bank, Gulfport, MS Director (c) Gene Warr Coast Community Bank, Biloxi, MS Director (c) E. Jenner Wood, III SunTrust Bank of Georgia, Atlanta, GA Chairman, President (c) and Chief Executive Officer James W. Wright First Tuskegee Bank, Montgomery, AL Chairman of the Board of Directors and Chief Executive Officer (c)
19 ITEM 6. EXECUTIVE COMPENSATION. PART III. ------------------------------------------ (a)Summary Compensation Tables. --------------------------- The following tables set forth information concerning any Chief Executive Officer and the most highly compensated executive officers for SCS, Southern LINC, Southern Telecom, Southern Management and Southern Nuclear serving as of December 31, 2002, as defined by the Securities and Exchange Commission. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2003 Annual Meeting of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page numbers III-5 and III-6 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2002. SOUTHERN is incorporated by reference to "Summary Compensation Table" in SOUTHERN's definitive Proxy Statement relating to the 2003 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 20
SCS SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Restricted Underlying Term and Other Annual Stock Stock Incentive All Other Principal Compensation Awards Options Payouts Compensation Position Year Salary($) Bonus($) ($)1 ($)2 (Shares) ($)3 ($)4 ------------------------------------------------------------------------------------------------------------------------------ H. Allen Franklin 2002 929,215 1,984,320 7,080 - 382,242 1,672,510 61,822 President, Chief 2001 855,969 1,867,320 2,770 648,863 497,790 1,249,890 44,786 Executive Officer, 2000 655,806 1,014,696 8,305 - 85,354 409,975 34,902 Director Gale E. Klappa 2002 377,163 546,971 4,546 - 56,210 290,400 19,581 Executive Vice 2001 321,052 410,810 9,303 - 79,319 243,773 17,663 President 2000 284,015 273,165 8,812 - 24,602 48,155 15,543 G. Edison Holland 2002 364,868 416,003 69,102 - 54,624 219,677 90,046 Executive Vice 2001 333,539 324,022 24,036 - 68,071 180,384 69,760 President 2000 - - - - - - - Dwight H. Evans 2002 353,038 402,519 10,365 - 52,854 352,667 23,685 Executive Vice 2001 326,876 296,139 51,963 - 91,299 295,504 67,664 President 2000 - - - - - - - W. Paul Bowers 2002 329,570 403,433 12,337 - 50,046 214,133 16,802 Executive Vice 2001 273,758 273,630 3,072 - 51,740 160,515 39,542 President 2000 168,077 175,686 116 - 18,236 35,138 11,108 ---------------------------------- 1 Tax reimbursements on certain perquisites. In 2002, Mr. Holland's amount includes $59,548 in tax assistance associated with relocation. In 2001, Mr. Holland's amount included $17,015 in tax assistance associated with relocation. 2 The amount for Mr. Franklin reflects the value of the grant of restricted stock units on the date granted. The restricted stock units vested on April 2, 2001 and were transferred to SOUTHERN's Deferred Compensation Plan. 3 Payout of performance dividend equivalents on stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2000, 2001 and 2002, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. The Southern Company Compensation and Management Succession Committee can increase the payout of performance dividends by up to 200 percent if necessary to maintain the competitiveness of Southern Company's executive compensation program. For eligible stock options held on December 31, 2000, 2001 and 2002, all named executives received a payout of $.90, $1.34 and $1.355 per option, respectively. 4 SCS contributions in 2002 to the Employee Savings Plan (ESP), Employee Stock Ownership Plan (ESOP), non-pension related accruals under the Supplemental Benefit Plan (SBP) and tax sharing benefits paid to participants who elected receipt of dividends on SOUTHERN's common stock held in the ESP are as follows:- Name ESP ESOP SBP ESP Tax Sharing Benefit ---- --- ---- --- ------ ----------------------- H. Allen Franklin $12,683 $701 $43,160 $5,278 Gale E. Klappa 8,250 701 10,630 - G. Edison Holland 7,603 701 10,643 792 Dwight H. Evans 7,746 701 10,189 5,049 W. Paul Bowers 7,701 701 8,400 - In 2001, this amount includes for Messrs. Evans, Holland and Bowers additional incentive compensation of $50,000, $31,628 and $24,380, respectively. In 2001 and 2002, these amounts for Mr. Holland also included $19,933 and $70,307, respectively of additional relocation expenses.
21
Southern LINC SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Restricted Underlying Term and Other Annual Stock Stock Incentive All Other Principal Compensation Awards Options Payouts Compensation Position Year Salary($) Bonus($) ($)1 ($) (Shares) ($)2 ($)3 ------------------------------------------------------------------------------------------------------------------------------ Robert G. Dawson 4 2002 269,682 310,687 5,798 - 31,997 215,936 19,345 President, Chief 2001 245,269 197,310 2,774 - 54,900 165,142 13,652 Executive Officer, 2000 235,091 118,760 9,297 - 20,431 38,813 13,188 Director R. Craig Elder 2002 165,763 187,069 1,664 - 12,458 49,365 8,500 Vice President, 2001 153,433 98,373 - - 19,007 36,236 8,127 Chief Financial Officer, Treasurer 2000 139,789 68,562 - - 5,809 15,082 7,438 Rodney H. Johnson 2002 136,075 135,639 206 - 7,374 25,810 4,458 Vice President 2001 120,786 58,915 - - 7,703 15,643 3,632 2000 113,927 40,799 2,310 - 3,971 2,255 2,679 Julie T. Pigott 2002 134,060 133,223 - - 7,242 25,631 6,745 Vice President 2001 120,786 58,915 - - 7,703 15,643 6,463 2000 101,081 40,799 - - 3,971 2,255 5,622 ------------------------------------- 1 Tax reimbursements on certain perquisites. 2 Payout of performance dividend equivalents on stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2000, 2001 and 2002, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. The Southern Company Compensation and Management Succession Committee can increase the payout of performance dividends by up to 200 percent if necessary to maintain the competitiveness of Southern Company's executive compensation program. For eligible stock options held on December 31, 2000, 2001 and 2002, all named executives received a payout of $.90, $1.34, and $1.355 per option, respectively. 3 SCS contributions in 2002 to the ESP, ESOP, non-pension related accruals under the SBP, and tax sharing benefits paid to participants who elected receipt of dividends on SOUTHERN's common stock held in the ESP are as follows:- Name ESP ESOP SBP ESP Tax Sharing Benefit ---- --- ---- --- ----------------------- Robert G. Dawson $7,634 $701 $5,759 $5,251 R. Craig Elder 6,594 701 1,205 - Rodney H. Johnson 3,665 701 92 - Julie T. Pigott 5,370 701 674 - 4 Messrs. Dawson and Elder are also chief executive officer and chief financial officer, respectively, of Southern Telecom.
22
Southern Management and Southern Company GAS SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Restricted Underlying Term and Other Annual Stock Stock Incentive All Other Principal Compensation Awards Options Payouts Compensation Position Year Salary($) Bonus($) ($)1 ($) (Shares) ($)2 ($)3 ------------------------------------------------------------------------------------------------------------------------------ Southern Management Ronald P. Bertasi 4 2002 185,000 48,100 18,395 - 13,700 18,564 7,001 President, Chief Executive Officer, Director Southern Company GAS C. Philip Saunders 5 2002 221,321 210,821 - - 26,100 91,881 11,554 President, Chief Executive Officer ---------------------- 1 Tax reimbursements on certain perquisites. 2 Payout of performance dividend equivalents on stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2000, 2001 and 2002, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. The Southern Company Compensation and Management Succession Committee can increase the payout of performance dividends by up to 200 percent if necessary to maintain the competitiveness of Southern Company's executive compensation program. For eligible stock options held on December 31, 2000, 2001 and 2002, all named executives received a payout of $.90, $1.34 and $1.355 per option, respectively. 3 SCS contributions in 2002 to the ESP, ESOP and non-pension related accruals under the SBP are as follows:- Name ESP ESOP SBP ---- --- ---- --- Ronald P. Bertasi $5,443 $ - $1,558 C. Philip Saunders 7,491 701 3,362 4 Mr. Bertasi became the President and Chief Executive Officer of Southern Management on December 17, 2001. 5 Mr. Saunders became the President and Chief Executive Officer of Southern Company GAS on July 15, 2002.
23
Southern Nuclear SUMMARY COMPENSATION TABLE ANNUAL COMPENSATION LONG-TERM COMPENSATION Number of Securities Long- Name Restricted Underlying Term and Other Annual Stock Stock Incentive All Other Principal Compensation Awards Options Payouts Compensation Position Year Salary($) Bonus($) ($)1 ($) (Shares) ($)2 ($)3 ------------------------------------------------------------------------------------------------------------------------------ W. G. Hairston, III 2002 440,104 507,131 11,485 - 65,890 239,842 27,969 President and Chief 2001 414,594 370,798 1,583 - 96,135 294,360 22,523 Executive Officer 2000 388,195 366,074 11,581 - 42,172 70,161 21,179 Jack D. Woodard 2002 343,203 361,604 9,048 - 47,592 308,315 22,968 Executive Vice 2001 327,079 267,169 8,172 - 83,534 241,129 16,212 President 2000 309,806 267,952 1,783 - 27,076 54,757 14,928 James B. Beasley, Jr. 2002 206,286 181,714 3,798 - 19,647 129,732 13,819 Vice President 2001 194,302 136,055 3,911 - 37,727 111,914 13,967 2000 185,071 136,214 7,802 - 14,074 26,007 10,635 H. L. Sumner, Jr. 2002 208,321 179,632 5,931 20,004 140,011 10,864 Vice President 2001 199,067 137,354 6,184 - 42,248 124,254 10,516 2000 190,529 137,676 117 - 14,453 28,670 1,836 Jeffrey T. Gasser 4 2002 164,378 162,826 - - 8,195 51,634 8,339 Vice President 2001 - - - - - - - 2000 - - - - - - - David N. Morey 5 2002 167,768 140,503 7,718 20,863 160,005 9,079 Vice President 2001 208,950 140,074 8,046 - 48,844 146,233 11,099 2000 200,626 140,717 1,104 - 17,379 34,239 10,695 ----------------------------- 1 Tax reimbursements on certain perquisites. 2 Payout of performance dividend equivalents on stock options granted after 1996 that were held by the executive at the end of the performance periods under the Omnibus Incentive Compensation Plan for the four-year performance periods ended December 31, 2000, 2001 and 2002, respectively. Dividend equivalents can range from 25 percent of the common stock dividend paid during the last year of the performance period if total shareholder return over the four-year period, compared to a group of other large utility companies, is at the 30th percentile to 100 percent of the dividend paid if it reaches the 90th percentile. The Southern Company Compensation and Management Succession Committee can increase the payout of performance dividends by up to 200 percent if necessary to maintain the competitiveness of Southern Company's executive compensation program. For eligible stock options held on December 31, 2000, 2001 and 2002, all named executives received a payout of $.90, $1.34 and $1.355 per option, respectively. 3 Southern Nuclear contributions to the ESP, ESOP, non-pension related accruals under the SBP, and tax sharing benefits paid to participants who elected receipt of dividends on SOUTHERN's common stock held in the ESP are provided in the following table: ESP ESOP SBP ESP Tax Sharing Benefit --- ---- --- ----------------------- William G. Hairston, III $7,808 $701 $14,878 $ 4,582 Jack D. Woodard 6,299 701 10,666 5,302 James B. Beasley, Jr. 7,171 701 2,865 3,082 H. L. Sumner, Jr. 7,665 701 2,498 - Jeffrey T. Gasser 7,397 701 241 - David N. Morey 6,962 701 1,416 - 4 Mr. Gasser became an executive officer effective September 1, 2002. 5 Mr. Morey retired from Southern Nuclear effective October 1, 2002.
24 STOCK OPTION GRANTS IN 2002 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, 2002. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2003 Annual Meeting of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page number III-7 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2002. SOUTHERN is incorporated by reference to "Option Grants in 2002" under STOCK OPTIONS in SOUTHERN's definitive Proxy Statement relating to the 2003 Annual Meeting of Stockholders.
Individual Grants Grant Date Value Number of % of Total Securities Options Exercise Underlying Granted to or Share Options Employees in Base Price Expiration Grant Date Name Granted1 Fiscal Year2 ($/Sh)3 Date3 Present Value($)3 --------------------------------------------------------------------------------------------------------------------------- SCS H. Allen Franklin 382,242 4.8 25.26 02/15/2012 1,288,156 Gale E. Klappa 56,210 0.7 25.26 02/15/2012 189,428 Dwight H. Evans 52,854 0.7 25.26 02/15/2015 178,118 G. Edison Holland, Jr. 54,624 0.7 25.26 02/15/2012 184,083 W. Paul Bowers 50,046 0.6 25.26 02/15/2012 168,655 Southern LINC Robert G. Dawson 31,997 0.4 25.26 02/15/2012 107,830 R. Craig Elder 12,458 0.2 25.26 02/15/2012 41,983 Rodney H. Johnson 7,374 0.1 25.26 02/15/2012 24,850 Julie T. Pigott 7,242 0.1 25.26 02/15/2012 24,406 ---------------------------- 1 Under the terms of the Omnibus Incentive Compensation Plan, stock option grants were made on February 15, 2002 and vest annually at a rate of one-third on the anniversary date of the grant. Grants fully vest upon termination as a result of death, total disability or retirement and expire five years after retirement, three years after death or total disability or their normal expiration date if earlier. The exercise price is the average of the high and low price of Southern Company's common stock on the date granted. Options may be transferred to certain family members, family trusts and family limited partnerships. 2 A total of 8,040,632 stock options were granted in 2002. 3 Value was calculated using the Black-Scholes option valuation model. The actual value, if any, ultimately realized depends on the market value of Southern Company's common stock at a future date. Significant assumptions are shown below: Risk-free Dividend Expected Volatility rate of return Yield Term ------------------------------------------------------------------ 26.34% 2.79% 4.63% 4.28 years ------------------------------------------------------------------
25
STOCK OPTION GRANTS IN 2002 (continued) Individual Grants Grant Date Value Number of % of Total Securities Options Exercise Underlying Granted to or Share Options Employees in Base Price Expiration Grant Date Name Granted1 Fiscal Year2 ($/Sh)3 Date3 Present Value($)3 --------------------------------------------------------------------------------------------------------------------------- Southern Management Ronald P. Bertasi 13,700 0.2 25.26 02/15/2012 46,169 Southern Company GAS C. Philip Saunders 26,100 0.3 25.26 02/15/2012 87,957 Southern Nuclear William G. Hairston, III 65,890 0.8 25.26 02/15/2012 222,049 Jack D. Woodard 47,592 0.6 25.26 02/15/2012 160,385 James B. Beasley, Jr. 19,647 0.2 25.26 02/15/2012 66,210 H. L. Sumner, Jr. 20,004 0.2 25.26 02/15/2012 67,413 Jeffrey T. Gasser 8,195 0.1 25.26 02/15/2012 27,617 David N. Morey 20,863 0.3 25.26 10/01/2007 70,308 ---------------------------- 1 Under the terms of the Omnibus Incentive Compensation Plan, stock option grants were made on February 15, 2002 and vest annually at a rate of one-third on the anniversary date of the grant. Grants fully vest upon termination as a result of death, total disability or retirement and expire five years after retirement, three years after death or total disability or their normal expiration date if earlier. The exercise price is the average of the high and low price of Southern Company's common stock on the date granted. Options may be transferred to certain family members, family trusts and family limited partnerships. 2 A total of 8,040,632 stock options were granted in 2002. 3 Value was calculated using the Black-Scholes option valuation model. The actual value, if any, ultimately realized depends on the market value of Southern Company's common stock at a future date. Significant assumptions are shown below: Risk-free Dividend Expected Volatility rate of return Yield Term ------------------------------------------------------------------ 26.34% 2.79% 4.63% 4.28 years ------------------------------------------------------------------
26 AGGREGATED STOCK OPTION EXERCISES IN 2002 AND YEAR-END OPTION VALUES Aggregated Stock Option Exercises. The following table sets forth information concerning options exercised during the year ending December 31, 2002 by the named executive officers and value of unexercised options held by them as of December 31, 2002. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2003 Annual Meeting of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page number III-8 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2002. SOUTHERN is incorporated by reference to "Aggregated Stock Option Exercises in 2002 and Year-End Option Values" under OPTION EXERCISES in SOUTHERN's definitive Proxy Statement relating to the 2003 Annual Meeting of Stockholders.
Number of Unexercised Value of Unexercised Options at Fiscal In-the-Money Options at Year-End (#) Fiscal Year-End($)1 Shares Acquired Value Name on Exercise (#) Realized($)2 Exercisable Unexercisable Exercisable Unexercisable ------------------------------------------------------------------------------------------------------------------------------- SCS H. Allen Franklin 80,671 1,210,521 475,136 759,189 5,286,965 4,461,221 Gale E. Klappa 34,870 470,179 91,566 122,751 1,028,026 749,682 Dwight H. Evans 13,108 199,700 132,784 127,487 1,572,585 791,123 G. Edison Holland 27,116 366,568 48,561 113,562 469,461 701,689 W. Paul Bowers 11,801 156,131 63,861 94,171 727,111 551,603 Southern LINC Robert G. Dawson 8,074 116,226 81,749 79,388 972,829 524,331 R. Craig Elder 3,068 35,155 8,236 28,196 71,231 179,350 Rodney H. Johnson - - 5,215 13,833 58,754 86,120 Julie T. Pigott - - 5,215 13,701 58,754 85,707 Southern Management Ronald P. Bertasi - - - 13,700 - 42,881 Southern Company GAS C. Philip Saunders 50,382 520,602 9,022 58,787 71,468 376,355 Southern Nuclear William G. Hairston, III 108,557 1,023,601 24,750 152,255 210,138 1,016,904 Jack D. Woodard 18,663 245,213 109,956 117,583 1,270,798 754,560 James B. Beasley, Jr. 14,076 195,058 43,511 52,232 484,086 353,636 H. L. Sumner, Jr. 18,381 269,391 47,526 55,803 525,994 382,311 Jeffrey T. Gasser - - 16,956 21,150 193,353 123,243 David N. Morey 22,435 328,051 118,085 - 1,047,776 - -------------------------- 1 This represents the excess of the fair market value of SOUTHERN's common stock of $28.39 per share, as of December 31, 2002, above the exercise price of the options. The Exercisable column reports the "value" of options that are vested and therefore could be exercised. The Unexercisable column reports the "value" of options that are not vested and therefore could not be exercised as of December 31, 2002. 2 The "Value Realized" is ordinary income, before taxes, and represents the amount equal to the excess of the fair market value of the shares at the time of exercise above the exercise price.
27 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, 2002. 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, 2002. SOUTHERN is incorporated by reference to the Stock Ownership Table in SOUTHERN's definitive Proxy Statement relating to the 2003 Annual Meeting of Stockholders. ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2003 Annual Meeting of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page numbers III-12 and III-13 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2002.
Name of Directors Shares Shares Beneficially Owned Include: or Nominees and Beneficially Shares Individuals Have Rights To Executive Officers Title of Class Owned (1) Acquire Within 60 Days(2) ------------------ -------------- ----- ------------------------- SCS H. Allen Franklin SOUTHERN Common 786,517 747,185 David M. Ratcliffe SOUTHERN Common 253,807 241,461 Charles D. McCrary SOUTHERN Common 177,749 174,711 W. Paul Bowers SOUTHERN Common 105,348 98,696 Dwight H. Evans SOUTHERN Common 159,781 42,398 G. Edison Holland, Jr SOUTHERN Common 52,386 42,819 Gale E. Klappa SOUTHERN Common 159,116 134,656 The directors, nominees and executive officers of SCS as a Group SOUTHERN Common 1,830,433 shares 1,378,6572 shares Southern LINC Robert G. Dawson SOUTHERN Common 108,309 30,090 H. Allen Franklin SOUTHERN Common 786,517 747,185 Gale E. Klappa SOUTHERN Common 159,116 134,656 Charles D. McCrary SOUTHERN Common 177,749 174,711 David M. Ratcliffe SOUTHERN Common 253,807 241,461 R. Craig Elder SOUTHERN Common 11,374 26,077 Rodney H. Johnson SOUTHERN Common 10,852 10,683 Julie T. Pigott SOUTHERN Common 10,269 10,639 The directors, nominees and executive officers of Southern LINC as a Group SOUTHERN Common 1,517,993 shares 1,375,502 shares
28 ITEM 6. OFFICERS AND DIRECTORS. PART III.
Name of Directors Shares Shares Beneficially Owned Include: or Nominees and Beneficially Shares Individuals Have Rights To Executive Officers Title of Class Owned (1) Acquire Within 60 Days(2) ------------------ -------------- ----- ------------------------- Southern Telecom Robert G. Dawson SOUTHERN Common 108,309 30,090 H. Allen Franklin SOUTHERN Common 786,517 747,185 Gale E. Klappa SOUTHERN Common 159,116 134,656 Charles D. McCrary SOUTHERN Common 177,749 174,711 David M. Ratcliffe SOUTHERN Common 253,807 241,461 R. Craig Elder SOUTHERN Common 11,374 26,077 The directors, nominees and executive officers of Southern Telecom as a Group SOUTHERN Common 1,496,872 shares 1,354,180 shares Southern Management Ronald P. Bertasi SOUTHERN Common 108,309 30,090 H. Allen Franklin SOUTHERN Common 786,517 747,185 Leonard J. Haynes SOUTHERN Common 63,385 24,341 Gale E. Klappa SOUTHERN Common 159,116 134,656 Charles D. McCrary SOUTHERN Common 177,749 174,711 David M. Ratcliffe SOUTHERN Common 253,807 241,461 Robert M. Gilbert SOUTHERN Common 17 - The directors, nominees and executive officers of Southern Management as a Group SOUTHERN Common 1,440,673 shares 1,326,921 shares Southern Company GAS C. Philip Saunders SOUTHERN Common 9,734 29,842 Southern Nuclear H. Allen Franklin SOUTHERN Common 786,517 747,185 William G. Hairston, III SOUTHERN Common 91,105 87,322 Charles D. McCrary SOUTHERN Common 177,749 174,711 David M. Ratcliffe SOUTHERN Common 253,807 241,461 Jack D. Woodard SOUTHERN Common 127,411 41,694 H. L. Sumner, Jr. SOUTHERN Common 51,209 21,314 James B. Beasley, Jr. SOUTHERN Common 52,892 19,975 Jeffrey T. Gasser SOUTHERN Common 25,305 9,098 The directors, nominees and executive officers of Southern Nuclear as a Group SOUTHERN Common 1,565,994 shares 1,342,760 shares
29 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, or investment power with respect to a security, or any combination thereof. (2) Indicates shares of SOUTHERN's common stock that directors and executive officers have the right to acquire within 60 days ITEM 6. OFFICERS AND DIRECTORS. PART III. (c) Contracts and transactions with system companies. ------------------------------------------------- ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2003 Annual Meeting of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page number III-5 and III-6 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2002. (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 in SOUTHERN's definitive Proxy Statement relating to the 2003 annual meeting of stockholders. Also, ALABAMA, GEORGIA, GULF and MISSISSIPPI are incorporated by reference to the Information Statements relating to each of their respective 2003 Annual Meeting of Shareholders. SAVANNAH and SOUTHERN POWER are incorporated by reference to page number III-11 in the SOUTHERN system's combined Form 10-K for the year ended December 31, 2002. SOUTHERN's Change in Control Plan is applicable to certain of its officers, and individual change in control agreements have been entered into with some of the most highly compensated executive officers of SCS, Southern LINC, Southern Telecom, Southern Management, Southern Company GAS, Southern Nuclear. If an executive is involuntarily terminated, other than for cause, within two years following a change in control of SOUTHERN the agreements provide for: o lump sum payment of two or three times annual compensation, o up to five years' coverage under group health and life insurance plans, o immediate vesting of all stock options previously granted, o payment of any accrued long-term and short-term bonuses and dividend equivalents, and o payment of any excise tax liability incurred as a result of payments made under the agreement. A SOUTHERN change in control is defined under the agreements as: o acquisition of at least 20 percent of the SOUTHERN's stock, o a change in the majority of the members of the SOUTHERN's board of directors, o a merger or other business combination that results in SOUTHERN's shareholders immediately before the merger owning less than 65 percent of the voting power after the merger, or o a sale of substantially all the assets of SOUTHERN. If a change in control affects only a subsidiary of SOUTHERN, these payments would only be made to executives of the affected subsidiary who are involuntarily terminated as a result of that change in control. SOUTHERN also provides in its incentive plans for pro-rata payments at not less than target-level performance if a change in control occurs and the plans are not continued or replaced with comparable plans. On February 28, 1998, SOUTHERN and GEORGIA entered into a Deferred Compensation Agreement with Mr. Franklin. On the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its subsidiaries, Mr. Franklin will receive the cash value of the number of shares of SOUTHERN common stock that could have been purchased for $500,000 on February 28, 1998, and on which dividends were reinvested throughout the five-year period. If certain performance goals are met, Mr. Franklin also will receive the estimated income tax expense on the compensation. Mr. Franklin may elect to defer receipt of the award until termination of employment. GEORGIA assigned this agreement to SCS effective July 8, 1999. On February 23, 1998, SOUTHERN and Southern Nuclear entered into a Deferred Compensation Agreement with Mr. Woodard. On the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its 30 subsidiaries, Mr. Woodard will receive the cash value of the number of shares of SOUTHERN common stock that could have been purchased for $200,000 on February 23, 1998, and on which dividends were reinvested throughout the five-year period. If certain performance goals are met, Mr. Woodard also will receive the estimated income tax expense on the compensation. Mr. Woodard may elect to defer receipt of the award until termination of employment. On February 23, 1998, SOUTHERN and Southern Nuclear entered into a Deferred Compensation Agreement with Mr. Hairston. On the fifth anniversary of the Agreement, if still employed by SOUTHERN or one of its subsidiaries, Mr. Hairston will receive the cash value of the number of shares of SOUTHERN common stock that could have been purchased for $250,000 on February 23, 1998, and on which dividends were reinvested throughout the five-year period. If certain performance goals are met, Mr. Hairston also will receive the estimated income tax expense on the compensation. Mr. Hairston may elect to defer receipt of the award until termination of employment. (f) Rights to indemnity. Incorporated by reference are the by-laws, for the companies of the SOUTHERN system, contained herein as Exhibits. -------------------- 31 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (1) Expenditures, disbursements or payments, directly or indirectly, in money, goods or services, to or for the account of any political party, candidate for public office or holder of such office, or any committee or agent thereof.
Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) --------------- -------------------------------- ------- ------- --------- None
SOUTHERN, 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 Name of Company Name of Recipient or Beneficiary Purpose of Disbursing Company Amount($) --------------- -------------------------------- ------- --------------------- --------- ALABAMA Business Council of Alabama Dues & Support 930,426,506,520 388,465 539,549,563 Edison Electric Institute Dues 426,921,930 602,537 National Association of Manufacturers Dues 930,921 17,184 Nature Conservancy of Alabama Dues & Support 921 100 Nuclear Energy Institute Dues 524 432,597 * Public Affairs Research Council of Alabama Dues & Support 930,426 12,510 GEORGIA Atlanta Convention & Visitors Bureau Dues 930 5,000 Central Atlanta Progress Dues 930 26,750 Edison Electric Institute Dues 426,930 851,372 Georgia Conservancy Support 426 15,000 n/a 50,000 ** National Association of Manufacturers Dues 930 15,000 Nature Conservancy Support 426 14,000 n/a 250,000 ** Nuclear Energy Institute Dues 524,426 488,951 *** Regional Business Coalition Dues 930 10,000
* This amount was paid by Southern Nuclear and billed to ALABAMA. ** Georgia Power Foundation. *** This amount, which excludes dues billed to joint owners of Plants Hatch and Vogtle, was paid by Southern Nuclear and billed to GEORGIA. 32 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued)
Accounts Charged, if any, per Books of Disbursing Name of Company Name of Recipient or Beneficiary Purpose Company Amount($) --------------- -------------------------------- ------- ------- --------- GULF Economic Development Council - Bay County Support 912 20,000 Economic Development Council - Holmes County Support 912 10,000 Economic Development Council - Okaloosa County Support & Dues 912 30,000 Economic Development Council - TEAM Santa Rosa Support & Dues 912 11,000 Chamber of Commerce - Florida Support & Dues 912 25,000 Chamber of Commerce - Pensacola Support & Dues 426,912,921,930 18,414 Chamber of Commerce - Washington County Support 912 10,000 Edison Electric Institute Dues 426,921 147,826 Enterprise Florida Support 912 40,000 Florida's Great Northwest Support & Dues 912 137,000 Foundation for the Future Support 912 50,000 University of West Florida Support 912 20,400 Other Economic Development Councils/ Activity Groups (9 Beneficiaries) Support & Dues 921,930 30,903 MISSISSIPPI Center for Public Utilities at New Mexico State University Dues 426 2,500 Coastal Conservation Association/Mississippi Dues 426 1,000 Edison Electric Institute Dues 426,930 109,650 Equal Employment Advisory Council Dues 930 1,671 Land Trust for the Mississippi Coastal Plain Dues 426 2,000 Mississippi Economic Council Dues 426,930 50,000 Mississippi Gulf Coast Economic Development Council Dues 426,930 2,000 Mississippi Manufacturers Association Dues 426,930 2,100 Mississippi Municipal League Dues 426 1,000 Mississippi Wildlife Federation Dues 426 3,000 Retail Association of Mississippi Dues 426,930 2,000 Wolf River Conservation Dues 426 3,000
33 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 Association of County Commissioners of Georgia Dues 930 500 Business, Education and Technology Alliance of Southeast Georgia Dues 930 500 Coastal Beta Dues 930 500 Edison Electric Institute Dues 426,930 64,928 Georgia Conservancy Support 426 1,000 Georgia Economic Developers Association Dues 930 1,100 Georgians for Better Transportation Dues 930 1,000 Georgia Municipal Association Dues 426 500 Leadership Southeast Georgia Dues 930 1,000 Nature Conservancy Support 426 5,000 North American Energy Standards Board Membership 426 5,000 Savannah Area Tourism Leadership Council Membership 930 500 Southeastern Electrification Council Membership 930 1,600 Other Economic Development Councils/ Activity Groups (4 Beneficiaries) Membership & Dues 930 894
34 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) Southern LINC (Note) (Note) Yes (Note) (Note) Southern Management (Note) (Note) Yes Sublease of railcars ALABAMA SAVANNAH $28,601 Yes Sublease of railcars SAVANNAH GEORGIA $439,692 Yes Sublease of railcars ALABAMA MISSISSIPPI $33,597 Yes Sublease of railcars GEORGIA MISSISSIPPI $190,660 Yes Sublease of railcars GEORGIA SAVANNAH $542,368 Yes Sublease of railcars SAVANNAH GULF $98,490 Yes Sublease of railcars MISSISSIPPI GEORGIA $190,660 Yes Sublease of railcars MISSISSIPPI ALABAMA $33,596 Yes Sublease of railcars MISSISSIPPI SAVANNAH $2,062 Yes
Note: The Serving Company leased the cars; the Receiving Company owns the cars and the Compensation is the amount paid to the Receiving Company for use of the cars. Southern LINC and Southern Management have agreements with SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH pursuant to which Southern LINC and Southern Management reimburse each of such companies for the full cost of services, personnel and facilities provided to Southern LINC and Southern Management. Pursuant to such agreements, during 2002 the total reimbursements to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH from Southern LINC were $37,219,088; $2,060,995; $1,059,071; $147,040; $125,747; and $20,603, respectively; and from Southern Management were $1,497,393, $460,064, $94,519; $658,486; none and $16,351, respectively. Southern Management in 2002 also reimbursed SCES LLC $104,512 for the full cost of services, personnel and facilities. Southern Company GAS during 2002 also reimbursed GEORGIA and SCS for certain services which were furnished , at cost in the amounts of $262,718 and $5,917,010, respectively. PART II. None. PART III. None. 35 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
PART I(a) See Item 6 - Part I for the name of the company, its location and business address. PART I(b) Key terms: EWG means Exempt Wholesale Generator FUCO means Foreign Utility Company SPS means Special Purpose Subsidiary IS means Intermediate Subsidiary --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- COMPANY EWG, OWNERSHIP % OWNED SOUTHERN COMPANY'S DIRECT OR INDIRECT INVESTMENT IN FUCO, THIS ENTITY AS DEFINED SPS, UNDER RULES 53 AND 58 IS --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- SE Finance Capital Corporation II (See Note 1) SPS Southern Company 100% - Holdings, Inc. --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- SE Finance Capital Corporation (See Note 1) SPS SE Finance Capital 100% - Corporation II. --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- Southern Energy Finance Company, Inc. (See Note 1) IS SE Finance Capital 100% - Corporation --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease, Inc. IS Southern Energy 100% - Finance Company, Inc. --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease, LLC IS EPZ Lease, Inc. 99% - Southern Energy 1% Finance Company, Inc. --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease Holding A, LLC IS EPZ Lease,LLC 99% - EPZ Lease, Inc. 1% --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease Holding B, LLC IS EPZ Lease, LLC 99% - EPZ Lease, Inc. 1% --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease Holding C, LLC IS EPZ Lease, LLC 99% - EPZ Lease, Inc. 1% --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease Trust A FUCO EPZ Lease Holding A, 100% See Note 2 LLC --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease Trust B FUCO EPZ Lease Holding B, 100% See Note 2 LLC --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- EPZ Lease Trust C FUCO EPZ Lease Holding C, 100% See Note 2 LLC --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- Southern Company Capital Funding, Inc. IS Southern Company 100% - Holdings, Inc. --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- Southern Company Capital Trust IV SPS Southern Company 100% - Capital Funding, Inc. --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- Southern Company Capital Trust V SPS Southern Company 100% - Capital Funding, Inc. --------------------------------------------------- ---------- ---------------------- ------------- ----------------------------- Southern Company Capital Trust VI SPS Southern Company 100% - Capital Funding, Inc. --------------------------------------------------- ---------- ---------------------- ------------- -----------------------------
36 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES PART I(b)
----------------------------------------------- ------------ ------------------------ ------------ --------------------------- COMPANY EWG, OWNERSHIP % OWNED SOUTHERN COMPANY'S DIRECT FUCO, OR INDIRECT INVESTMENT IN SPS THIS ENTITY AS DEFINED IS UNDER RULES 53 AND 58 ER ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease, Inc. IS Southern Energy 100% - Finance Company, Inc. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease, LLC IS Dutch Gas Lease, Inc. 99% - Southern Energy Finance Company, Inc. 1% ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease Holding A, L.L.C. IS Dutch Gas Lease, L.L.C. 100% - ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease Trust A FUCO Dutch Gas Lease 100% See Note 2 Holding A, L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease Holding B, L.L.C. IS Dutch Gas Lease, 100% - L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease Trust B FUCO Dutch Gas Lease 100% See Note 2 Holding B. L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease Holding C, L.L.C. IS Dutch Gas Lease, 100% - L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- Dutch Gas Lease Trust C FUCO Dutch Gas Lease 100% See Note 2 Holding C, L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- NUON Lease, Inc. IS Southern Energy 100% - Finance Company, Inc. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- NUON Lease Holding D, L.L.C. IS NUON Lease, Inc. 100% - ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- NUON Lease Trust D FUCO NUON Lease Holding D, 100% See Note 2 L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- NUON Lease Holding E, L.L.C. IS NUON Lease, Inc. 100% - ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- NUON Lease Trust E FUCO NUON Lease Holding E, 100% See Note 2 L.L.C. ------------------------------------------------ ------------ ------------------------ ------------ --------------------------- NUON Lease Holding F, L.L.C. IS NUON Lease, Inc. 100% - ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- NUON Lease Trust F FUCO NUON Lease Holding F, 100% See Note 2 L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- GAMOG Lease, Inc. IS Southern Energy 100% - Finance Company, Inc. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- GAMOG Lease Holding G, L.L.C. IS Gamog Lease, Inc. 100% - ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- GAMOG Lease Trust G FUCO Gamog Lease Holding G, 100% See Note 2 L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- GAMOG Lease Holding H, L.L.C. IS Gamog Lease, Inc. 100% - ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- GAMOG Lease Trust H FUCO Gamog Lease Holding H, 100% See Note 2 L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- GAMOG Lease Holding I, L.L.C. IS Gamog Lease, Inc. 100% - ----------------------------------------------- ------------ ------------------------ ------------ --------------------------- GAMOG Lease Trust I FUCO Gamog Lease Holding I, 100% See Note 2 L.L.C. ----------------------------------------------- ------------ ------------------------ ------------ ---------------------------
37
------------------------------------------------- ----------- ---------------------- ------------ ---------------------------- COMPANY EWG, OWNERSHIP % OWNED SOUTHERN COMPANY'S DIRECT FUCO, OR INDIRECT INVESTMENT IN SPS THIS ENTITY AS DEFINED IS UNDER RULES 53 AND 58 ER ------------------------------------------------- ----------- ---------------------- ------------ ---------------------------- Southern Company-Florida LLC EWG Southern Power 100% $242,947,237 Company ------------------------------------------------- ----------- ---------------------- ------------ ---------------------------- Southern Company Holdings, Inc. SPS SOUTHERN 100% - ------------------------------------------------- ----------- ---------------------- ------------ ---------------------------- SE Choctaw, Inc. IS SE Finance Capital 100% - Corporation II ------------------------------------------------- ----------- ---------------------- ------------ ---------------------------- SE Choctaw LLC EWG SE Choctaw, Inc. 100% $79,000,000 ------------------------------------------------- ----------- ---------------------- ------------ ---------------------------- SOUTHERN's aggregate investment as defined under Rules 53 and 58 in EWGs and FUCOs at December 31, 2002 was $325,947,237. NOTE 1 SOUTHERN has executed limited keep-well commitments whereby SOUTHERN would be required to make capital contributions to SE Finance Capital Corporation II, SE Finance Capital Corp. or to Southern Energy Finance Company, Inc. in the event of a shortfall in the scheduled debt service resulting from certain changes in the payments due from SOUTHERN under the Southern Company Income Tax Allocation Agreement. The maximum potential capital contribution required under these commitments is the unamortized balance of the related loans, which totaled approximately $416.1 million as of December 31, 2002. NOTE 2 As discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727) relating to the spin-off of Mirant, SOUTHERN and Mirant reorganized certain energy-related and FUCO activities and Mirant completed a tax-free distribution to SOUTHERN of these activities on March 5, 2001 (the "Mini-Spin"). On April 2, 2001, SOUTHERN completed the spin-off of its remaining ownership interest in Mirant to SOUTHERN's shareholders. Therefore, the four indirect subsidiaries (EPZ Lease, Inc., Dutch Gas Lease, Inc., GAMOG Lease, Inc. and NUON Lease, Inc.) obtained through the Mini-Spin are the only remaining FUCOs held by SOUTHERN. Although it now owns all of the equity in these companies as a result of the Mini-Spin, SOUTHERN has no direct or indirect investment or any aggregate investment within the meaning of Rule 53 in these FUCOs.
38
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES PART I(c) ------------------------------------------------------------------ ------------------------------- ------------------------------ COMPANIES DEBT TO EQUITY EARNINGS ------------------------------------------------------------------ ------------------------------- ------------------------------ SE Finance Capital Corporation II 2.1 $44,391,831 SE Finance Capital Corporation 2.2 $44,441,113 Southern Energy Finance Company, Inc. 0.5 $49,013,698 EPZ Lease, Inc. EPZ Lease, LLC EPZ Lease Holdings A, LLC EPZ Lease Trust A EPZ Lease Holdings B LLC EPZ Lease Trust B EPZ Lease Holdings C LLC EPZ Lease Trust C Dutch Gas Lease, Inc. Dutch Gas Lease, LLC Dutch Gas Lease Holdings A, LLC Dutch Gas Lease Trust A Dutch Gas Lease Holdings B LLC Dutch Gas Lease Trust B Dutch Gas Lease Holdings C LLC Dutch Gas Lease Trust C GAMOG Lease, Inc. GAMOG Lease Holdings A, LLC GAMOG Lease Trust A GAMOG Lease Holdings B, LLC GAMOG Lease Trust B GAMOG Lease Holdings C, LLC GAMOG Lease Trust C Nuon Lease, Inc. Nuon Lease Holdings D, LLC Nuon Lease Trust D Nuon Lease Holdings E, LLC Nuon Lease Trust E Nuon Lease Holdings F, LLC Nuon Lease Trust F Southern Company-Florida LLC 0 21,329 SE Choctaw LLC 0 0 ------------------------------------------------------------------ ------------------------------- ------------------------------
PART I(d) None. PART II Exhibits G and H, submitted with this filing, are being incorporated by reference. 39 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES PART III SOUTHERN's aggregate investment in EWGs and FUCOs at December 31, 2002 is as follows:
--------------------------------------------- ------------------ ------------------ ------------------ ----------------- Total1 Equity (1) Debt Guarantees(2) ------------------ ------------------ ------------------ (in thousands) --------------------------------------------- -------------------------------------------------------------------------- Investment In EWGs & FUCOs (A) $325,947 $253,486 - $72,461 --------------------------------------------- ------------------ ------------------ ------------------ -----------------
----------------------------------------------------------------------------------------------------------------------- SOUTHERN's Investment Investment in (in thousands) -------------------------------------------------------------------------- Domestic Public-Utility Subs Total Equity Debt Guarantees ----------------------------------------------------------------------------------------------------------------------- ALABAMA............................... $2,140,563 $2,140,563 $- $- GEORGIA............................... $2,500,330 $2,500,330 - - GULF.................................. $387,841 $387,841 - - MISSISSIPPI........................... $323,297 $323,297 - - SAVANNAH.............................. $70,999 $70,999 - - SOUTHERN POWER........................ $1,027,679 $731,230 210,488 85,961 SEGCO................................. $33,828 $33,828 - - (B) Total Domestic Public - Utility Subsidiaries $6,484,537 $6,188,088 $210,488 $85,961 <---------------------------------------------------------------------------------------------------------------------- RATIO A/B...................................................0.050 (1) (1) Following the completion of the spin-off of Mirant on April 2, 2001 and as discussed in SOUTHERN's Application on Form U-1 (File No. 70-9727) relating to the spin-off, SOUTHERN retained only four indirect subsidiaries (EPZ Lease, Inc., Dutch Gas Lease, Inc., GAMOG Lease, Inc. and NUON Lease, Inc.) that qualify as FUCOs and none that qualify as EWGs. SOUTHERN has no equity or debt investment within the meaning of Rule 53 in these four FUCO subsidiaries. (2) SOUTHERN has agreed to grant performance guarantees on behalf of SOUTHERN POWER and its subsidiary, Southern Company - Florida LLC (SCF) for SCF's payment obligations under ownership and power purchase agreements associated with Plant Stanton in Orlando. SOUTHERN POWER's maximum exposure is $53 million under the construction and ownership agreement and $20 million under the power purchase agreements. Acting as an agent for all of SOUTHERN's operating companies, SOUTHERN POWER and Southern Company GAS, SCS may enter into various types of wholesale energy and natural gas contracts. Under these agreements, each of the operating companies, SOUTHERN POWER and Southern Company GAS may be jointly and severally liable for the obligations of each of the operating companies, SOUTHERN POWER and Southern Company GAS. The creditworthiness of SOUTHERN POWER and Southern Company GAS is currently inferior to the creditworthiness of the operating companies; therefore, SOUTHERN has entered into keep-well agreements with each of the operating companies to insure they will not subsidize nor be responsible for any costs, losses, liabilities or damages resulting from the inclusion of SOUTHERN POWER as a contracting party under these agreements.
40 ITEM 10 - FINANCIAL STATEMENTS AND EXHIBITS SOUTHERN AND SUBSIDIARY COMPANIES INDEX TO FINANCIAL STATEMENTS DECEMBER 31, 2002
Page Number FINANCIAL STATEMENTS: Consolidating Statement of Income for the Year Ended December 31, 2002 A-1 Consolidating Statement of Cash Flows for the Year Ended December 31, 2002 A-3 Consolidating Balance Sheet at December 31, 2002 A-5 Consolidating Statement of Capitalization at December 31, 2002 A-9 Consolidating Statement of Retained Earnings for the Year Ended December 31, 2002 A-13 Consolidating Statement of Paid-in Capital for the Year Ended December 31, 2002 A-14 Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2002 A-15 Consolidating Statements of Accumulated Other Comprehensive Income for the Year Ended December 31, 2002 A-15 Notes to Financial Statements at December 31, 2002 A-16 OTHER FINANCIAL STATEMENTS: ALABAMA consolidated with ALABAMA TRUST I, ALABAMA TRUST II, ALABAMA TRUST III, ALABAMA TRUST IV AND ALABAMA TRUST V A-17 Alabama Property Company (Unaudited; Not consolidated in Parent, ALABAMA) A-22 GEORGIA consolidated with PIEDMONT, GEORGIA TRUST I, GEORGIA TRUST II, GEORGIA TRUST III, GEORGIA TRUST IV, GEORGIA TRUST V AND GEORGIA TRUST VI A-24 GULF consolidated with GULF TRUST I, GULF TRUST II, GULF TRUST III And GULF TRUST IV A-29 MISSISSIPPI consolidated with MISSISSIPPI TRUST I and MISSISSIPPI TRUST II A-33 SAVANNAH consolidated with SAVANNAH ELECTRIC TRUST I A-37 SOUTHERN POWER consolidated with SOUTHERN COMPANY FLORIDA, SOUTHERN COMPANY JET PORT, KLONDIKE, MADISON and CHEROKEE A-41 EXHIBITS A-45 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, 2002, as filed with the Federal Energy Regulatory Commission.
A
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Operating Revenues: Retail sales $8,727,748 $ - $ - Sales for resale -- Non-affiliates 1,167,688 - - Affiliates - (744,636) - Other electric revenues 310,493 (11,557) - Other revenues 343,140 (5,460) - ----------------------------------------------------------------------------------------------------------------------- Total operating revenues 10,549,069 (761,653) - ----------------------------------------------------------------------------------------------------------------------- Operating Expenses: Fuel 2,830,747 - - Purchased power -- Non-affiliates 448,951 9,925 - Affiliates - (738,344) - Other operations 2,121,949 (32,990) 56,643 Maintenance 961,147 - - Depreciation and amortization 1,047,495 - - Taxes other than income taxes 557,291 - 95 ------------------------------------------------------------------------------------------------------------------------ Total operating expenses 7,967,580 (761,409) 56,738 ------------------------------------------------------------------------------------------------------------------------ Operating Income 2,581,489 (244) (56,738) Other Income and (Expense): Allowance for equity funds used during construction 22,323 - - Interest income 22,263 (122,490) 15,753 Equity in earnings of unconsolidated subsidiaries (90,961) (1,352,488) 1,341,874 Leveraged lease income 58,459 - - Interest expense, net of amounts capitalized (491,890) 122,239 (87,626) Distributions on capital and preferred securities of subsidiaries (174,686) - - Preferred dividends of subsidiaries (17,339) - - Other income and (expense), net (63,655) (300) (564) ------------------------------------------------------------------------------------------------------------------------ Total other income and (expense) (735,486) (1,353,039) 1,269,437 ----------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 1,846,003 (1,353,283) 1,212,699 Before Income Taxes Income taxes 528,208 94 (105,999) ------------------------------------------------------------------------------------------------------------------------ Consolidated Net Income $1,317,795 $ (1,353,377) $ 1,318,698 ======================================================================================================================== Common Stock Data: Earnings Per Share from continuing operations - Basic $1.86 Diluted $1.85 Earnings Per Share including discontinued operations - Basic $1.86 Diluted $1.85 Average number of shares of common stock outstanding (stated in thousands) - Basic 708,161 Diluted 713,570 Cash dividends paid per share of common stock $1.35 1/2 (Continued on following page)
A-1a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Alabama Georgia Gulf Operating Revenues: Retail sales $ 2,951,217 $ 4,288,097 $ 665,836 Sales for resale -- Non-affiliates 474,291 270,678 77,171 Affiliates 188,163 98,323 40,391 Other electric revenues 96,862 165,362 37,069 Other revenues - - - ----------------------------------------------------------------------------------------------------------------- Total operating revenues 3,710,533 4,822,460 820,467 ----------------------------------------------------------------------------------------------------------------- Operating Expenses: Fuel 969,521 1,002,703 273,860 Purchased power -- Non-affiliates 90,998 264,814 23,797 Affiliates 158,121 419,839 39,201 Other operations 574,979 848,436 124,654 Maintenance 279,406 476,962 75,421 Depreciation and amortization 398,428 403,507 77,014 Taxes other than income taxes 216,919 201,857 61,033 ------------------------------------------------------------------------------------------------------------------ Total operating expenses 2,688,372 3,618,118 674,980 ------------------------------------------------------------------------------------------------------------------ Operating Income 1,022,161 1,204,342 145,487 Other Income and (Expense): Allowance for equity funds used during construction 11,168 7,622 2,980 Interest income 13,991 3,857 572 Equity in earnings of unconsolidated subsidiaries 3,399 3,714 39 Leveraged lease income - - - Interest expense, net of amounts capitalized (225,706) (168,391) (31,452) Distributions on capital and preferred securities of subsidiaries (24,599) (62,553) (8,524) Preferred dividends of subsidiaries (14,439) (670) (217) Other income and (expense), net (32,184) (12,973) (4,705) ------------------------------------------------------------------------------------------------------------------ Total other income and (expense) (268,370) (229,394) (41,307) ----------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 753,791 974,948 104,180 Before Income Taxes Income taxes 292,436 357,319 37,144 ------------------------------------------------------------------------------------------------------------------ Consolidated Net Income $ 461,355 $ 617,629 $67,036 ================================================================================================================== (Continued on following page)
A-1b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Mississippi Savannah SEGCO Operating Revenues: Retail sales $ 536,827 $ 285,771 $ - Sales for resale -- Non-affiliates 224,275 6,354 - Affiliates 46,314 4,075 168,043 Other electric revenues 16,749 3,352 1,918 Other revenues - - - -------------------------------------------------------------------------------------------------------------- Total operating revenues 824,165 299,552 169,961 -------------------------------------------------------------------------------------------------------------- Operating Expenses: Fuel 282,393 54,955 104,145 Purchased power -- Non-affiliates 18,550 6,368 - Affiliates 32,783 69,236 - Other operations 158,354 55,756 19,138 Maintenance 73,659 25,262 22,360 Depreciation and amortization 57,638 22,704 10,931 Taxes other than income taxes 55,518 14,457 722 -------------------------------------------------------------------------------------------------------------- Total operating expenses 678,895 248,738 157,296 -------------------------------------------------------------------------------------------------------------- Operating Income 145,270 50,814 12,665 Other Income and (Expense): Allowance for equity funds used during construction - - 553 Interest income 655 147 - Equity in earnings of unconsolidated subsidiaries 43 54 - Leveraged lease income - - - Interest expense, net of amounts capitalized (18,650) (11,608) (2,051) Distributions on capital and preferred securities of subsidiaries (3,016) (2,740) - Preferred dividends of subsidiaries (2,013) - - Other income and (expense), net (3,397) (1,354) (528) -------------------------------------------------------------------------------------------------------------- Total other income and (expense) (26,378) (15,501) (2,026) -------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 118,892 35,313 10,639 Before Income Taxes Income taxes 45,879 12,433 3,928 -------------------------------------------------------------------------------------------------------------- Consolidated Net Income $ 73,013 $22,880 $6,711 ============================================================================================================== (Continued on following page)
A-1c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Southern Funding Power Holdings Mgt Dev Operating Revenues: Retail sales $ - $ - $ - $ - Sales for resale -- Non-affiliates - 114,919 - - Affiliates - 183,111 1,740 533 Other electric revenues - 738 - - Other revenues - - 88,643 4,643 --------------------------------------------------------------------------------------------------------------------- Total operating revenues - 298,768 90,383 5,176 --------------------------------------------------------------------------------------------------------------------- Operating Expenses: Fuel - 97,965 - - Purchased power -- Non-affiliates - 34,499 - - Affiliates - 19,164 - - Other operations - 23,800 124,223 7,774 Maintenance - 4,551 - - Depreciation and amortization - 18,319 26,020 211 Taxes other than income taxes - 4,275 - (2) --------------------------------------------------------------------------------------------------------------------- Total operating expenses - 202,573 150,243 7,983 --------------------------------------------------------------------------------------------------------------------- Operating Income - 96,195 (59,860) (2,807) Other Income and (Expense): Allowance for equity funds used during construction - - - - Interest income 11,530 288 96,679 20 Equity in earnings of unconsolidated subsidiaries - - (90,422) 2,826 Leveraged lease income - - 58,459 - Interest expense, net of amounts capitalized (11,530) (8,886) (41,876) (6) Distributions on capital and preferred securities of subsidiaries - - (73,254) - Preferred dividends of subsidiaries - - - - Other income and (expense), net - (4,870) (1,015) (1,770) --------------------------------------------------------------------------------------------------------------------- Total other income and (expense) - (13,468) (51,429) 1,070 --------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations - 82,727 (111,289) (1,737) Before Income Taxes Income taxes - 28,457 (146,832) (2,025) --------------------------------------------------------------------------------------------------------------------- Consolidated Net Income $ - $ 54,270 $35,543 $ 288 ===================================================================================================================== 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-2a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern LINC Powercall Telecom Gas Operating Revenues: Retail sales $ - $ - $ - $ - Sales for resale -- Non-affiliates - - - - Affiliates 13,943 - - - Other electric revenues - - - - Other revenues 176,180 - 11,381 67,753 ------------------------------------------------------------------------------------------------------------------- Total operating revenues 190,123 - 11,381 67,753 ------------------------------------------------------------------------------------------------------------------- Operating Expenses: Fuel - - - 45,205 Purchased power -- Non-affiliates - - - - Affiliates - - - - Other operations 136,261 - 9,813 14,988 Maintenance 3,526 - - - Depreciation and amortization 28,799 - 1,391 2,533 Taxes other than income taxes 1,858 - 240 319 ------------------------------------------------------------------------------------------------------------------- Total operating expenses 170,444 - 11,444 63,045 ------------------------------------------------------------------------------------------------------------------- Operating Income 19,679 - (63) 4,708 Other Income and (Expense): Allowance for equity funds used during construction - - - - Interest income 121 39 7 9 Equity in earnings of unconsolidated subsidiaries - - - - Leveraged lease income - - - - Interest expense, net of amounts capitalized (5,443) - (202) (702) Distributions on capital and preferred securities of subsidiaries - - - - Preferred dividends of subsidiaries - - - - Other income and (expense), net (1) - - 13 ------------------------------------------------------------------------------------------------------------------- Total other income and (expense) (5,323) 39 (195) (680) ------------------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 14,356 39 (258) 4,028 Before Income Taxes Income taxes 5,591 14 (231) - ------------------------------------------------------------------------------------------------------------------- Consolidated Net Income $8,765 $ 25 $ (27) $4,028 =================================================================================================================== 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-2b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Deferred Change in Cash Stock Control Trust Trust Trust Operating Revenues: Retail sales $ - $ - $ - Sales for resale -- Non-affiliates - - - Affiliates - - - Other electric revenues - - - Other revenues - - - ------------------------------------------------------------------------------------------------------- Total operating revenues - - - ------------------------------------------------------------------------------------------------------- Operating Expenses: Fuel - - - Purchased power -- Non-affiliates - - - Affiliates - - - Other operations 9 - 111 Maintenance - - - Depreciation and amortization - - - Taxes other than income taxes - - - ------------------------------------------------------------------------------------------------------- Total operating expenses 9 - 111 ------------------------------------------------------------------------------------------------------- Operating Income (9) - (111) Other Income and (Expense): Allowance for equity funds used during construction - - - Interest income 36 162 887 Equity in earnings of unconsolidated subsidiaries - - - Leveraged lease income - - - Interest expense, net of amounts capitalized - - - Distributions on capital and preferred securities of subsidiaries - - - Preferred dividends of subsidiaries - - - Other income and (expense), net - (7) - ------------------------------------------------------------------------------------------------------- Total other income and (expense) 36 155 887 ------------------------------------------------------------------------------------------------------- Earnings From Continuing Operations 27 155 776 Before Income Taxes Income taxes - - - ------------------------------------------------------------------------------------------------------- Consolidated Net Income $ 27 $ 155 $ 776 ======================================================================================================= 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-2c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Operating Activities: Consolidated net income $ 1,317,795 $ (1,370,718) $ 1,318,698 Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities -- Depreciation and amortization 1,158,652 (19) 605 Deferred income taxes and investment tax credits 171,653 - (6,334) Equity in earnings of unconsolidated subsidiaries 90,941 1,342,000 (1,341,874) Leveraged lease income (58,459) - - Pension, postretirement, and other employee benefits (77,810) (16,060) (694) Other, net 5,799 42,417 17,984 Changes in certain current assets and liabilities -- Receivables, net (119,549) 125,920 (7,747) Fossil fuel stock 105,133 - - Materials and supplies 7,866 - - Other current assets (58,762) 3,717 5,196 Accounts payable 117,801 (121,869) 24,492 Taxes accrued (49,171) (7,685) (11,205) Other current liabilities 219,243 (14,186) (471) ------------------------------------------------------------------------------------------------------------------------ Net cash provided from (used for) operating activities 2,831,132 (16,483) (1,350) ------------------------------------------------------------------------------------------------------------------------ Investing Activities: Gross property additions (2,717,214) 390,216 - Cost of removal net of salvage (109,002) - - Other (134,602) (1,174,037) 782,425 ------------------------------------------------------------------------------------------------------------------------ Net cash provided from (used for) investing activities (2,960,818) (783,821) 782,425 ------------------------------------------------------------------------------------------------------------------------ Financing Activities: Increase (decrease) in notes payable, net (968,344) 144,306 (515,082) Proceeds -- Long-term senior notes 2,655,000 - - Other long-term debt 257,824 (426,637) 425,000 Preferred securities 1,315,000 - - Common Stock 451,340 - 451,339 Capital contributions from parent company - (621,440) - Redemptions -- First mortgage bonds (376,068) - - Long-term senior notes (856,606) - - Other long-term debt (138,262) - - Capital and preferred securities (1,171,250) - - Preferred stock (70,000) - - Capital distributions to parent company - 200,000 - Payment of preferred stock dividends - 17,127 - Payment of common stock dividends (957,746) 1,205,472 (957,746) Other (92,185) 281,476 (247,066) ------------------------------------------------------------------------------------------------------------------------ Net cash provided from (used for) financing activities 48,703 800,304 (843,555) ------------------------------------------------------------------------------------------------------------------------ Net Change in Cash and Cash Equivalents (80,983) - (62,480) Cash and Cash Equivalents at Beginning of Period 354,015 - 71,275 ------------------------------------------------------------------------------------------------------------------------ Cash and Cash Equivalents at End of Period $ 273,032 $ - $ 8,795 ======================================================================================================================== Supplemental Cash Flow Information: Cash paid during the period for -- Interest (net of amount capitalized) $ 543,515 $ (79,374) $ 91,541 Income taxes 372,263 - (22,794) ------------------------------------------------------------------------------------------------------------------------ (Continued on following page)
A-3a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Alabama Georgia Gulf Mississippi Operating Activities: Consolidated net income $ 475,794 $618,299 $ 67,253 $ 75,026 Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities -- Depreciation and amortization 465,325 411,435 82,230 61,930 Deferred income taxes and investment tax credits 48,828 65,550 9,619 (3,404) Equity in earnings of unconsolidated subsidiaries - (737) - - Leveraged lease income - - - - Pension, postretirement, and other employee benefits (34,464) (76,700) (8,170) 730 Other, net (50,863) (37,616) 5,756 2,017 Changes in certain current assets and liabilities -- Receivables, net (46,458) 68,527 (28,173) 6,120 Fossil fuel stock 25,535 82,711 10,464 4,186 Materials and supplies 3,728 15,874 (5,982) 1,160 Other current assets 6,889 (18,880) (14,178) (13,346) Accounts payable 10,587 64,902 19,168 18,487 Taxes accrued (40,922) (6,540) 1,117 3,160 Other current liabilities 86,850 16,166 (4,251) 34,770 ---------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities 950,829 1,202,991 134,853 190,836 ---------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (634,559) (883,968) (106,624) (67,460) Cost of removal net of salvage (32,105) (60,912) (7,978) (9,987) Other 2,054 414,381 (9,745) (3,471) ---------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities (664,610) (530,499) (124,347) (80,918) ---------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 26,994 (389,860) (58,831) (15,973) Proceeds -- Long-term senior notes 975,000 500,000 45,000 80,000 Other long-term debt - - 55,000 42,625 Preferred securities 300,000 740,000 40,000 35,000 Common Stock - - - - Capital contributions from parent company 49,788 173,483 43,809 18,025 Redemptions -- First mortgage bonds (350,000) (1,860) - (650) Long-term senior notes (415,602) (330,000) (454) (80,550) Other long-term debt (883) (7,800) (55,000) (42,645) Capital and preferred securities (347,000) (589,250) - (35,000) Preferred stock (70,000) - - - Capital distributions to parent company - (200,000) - - Payment of preferred stock dividends (14,176) (721) (217) (2,013) Payment of common stock dividends (431,000) (542,900) (65,500) (63,500) Other (22,411) (29,971) (3,279) (1,492) ---------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities (299,290) (678,879) 528 (66,173) ---------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents (13,071) (6,387) 11,034 43,745 Cash and Cash Equivalents at Beginning of Period 35,756 23,260 2,244 18,950 ---------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 22,685 $ 16,873 $ 13,278 $ 62,695 ============================================================================================================================ Supplemental Cash Flow Information: Cash paid during the period for -- Interest (net of amount capitalized) $ 230,102 $203,707 $ 39,604 $ 17,743 Income taxes 236,634 281,661 28,320 44,088 ---------------------------------------------------------------------------------------------------------------------------- (Continued on following page)
A-3b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Southern Savannah SEGCO SCS Nuclear Operating Activities: Consolidated net income $ 22,880 $ 6,711 $ - $ - Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities -- Depreciation and amortization 24,653 11,889 23,043 288 Deferred income taxes and investment tax credits (6,227) 2,341 (8,071) - Equity in earnings of unconsolidated subsidiaries - - - - Leveraged lease income - - - - Pension, postretirement, and other employee benefits 6,133 - 37,084 14,154 Other, net (10,559) (4,962) (15,892) (16,438) Changes in certain current assets and liabilities -- Receivables, net 7,965 387 (165,497) (22,581) Fossil fuel stock 1,522 - - - Materials and supplies 3,383 (668) 15 - Other current assets (5,470) (185) (13,233) 215 Accounts payable 7,527 (3,185) 73,186 (3,504) Taxes accrued (627) (2,791) (158) 265 Other current liabilities 6,002 (22) 31,248 19,753 ---------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities 57,182 9,515 (38,275) (7,848) ---------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (32,481) (17,941) (29,198) (863) Cost of removal net of salvage (131) 2,444 - (333) Other (1,200) 5,160 926 (798) ---------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities (33,812) (10,337) (28,272) (1,994) ---------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net (29,263) 7,963 - - Proceeds -- Long-term senior notes 55,000 - - - Other long-term debt 25,616 (2,000) - - Preferred securities - - - - Common Stock - - - - Capital contributions from parent company 3,950 560 - 9,967 Redemptions -- First mortgage bonds (23,558) - - - Long-term senior notes (30,000) - - - Other long-term debt - - (9,617) - Capital and preferred securities - - - - Preferred stock - - - - Capital distributions to parent company - - - - Payment of preferred stock dividends - - - - Payment of common stock dividends (22,700) (5,839) - - Other (828) - - - ---------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities (21,783) 684 (9,617) 9,967 ---------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 1,587 (138) (76,164) 125 Cash and Cash Equivalents at Beginning of Period 2,391 697 95,501 733 ---------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 3,978 $ 559 $ 19,337 $ 858 ====================================================================================================================== Supplemental Cash Flow Information: Cash paid during the period for -- Interest (net of amount capitalized) $ 13,353 $ 1,336 $ 4,358 $ - Income taxes 20,979 2,558 (1,274) (4,745) ---------------------------------------------------------------------------------------------------------------------- (Continued on following page)
A-3c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Funding Power Holdings Operating Activities: Consolidated net income $ - $ 54,270 $ 35,543 Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities -- Depreciation and amortization - 18,319 26,020 Deferred income taxes and investment tax credits - 2,739 63,315 Equity in earnings of unconsolidated subsidiaries - - 90,422 Leveraged lease income - - (58,459) Pension, postretirement, and other employee benefits - - 182 Other, net - 17,955 46,390 Changes in certain current assets and liabilities -- Receivables, net - (12,433) (1,380) Fossil fuel stock - (7,606) - Materials and supplies - (822) (7,060) Other currents assets - (10,198) 266 Accounts payable - 8,628 (4,443) Taxes accrued - 7,834 6,077 Other current liabilities - 20,713 20,434 -------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities - 99,399 217,307 -------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - (1,214,677) (92,964) Cost of removal net of salvage - - - Other - 2,344 (91,860) -------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities - (1,212,333) (184,824) -------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net (389,851) 211,176 7,172 Proceeds -- Long-term senior notes - 575,000 425,000 Other long-term debt - 87,873 50,347 Preferred securities - - 200,000 Common Stock - - - Capital contributions from parent company - 279,133 13,286 Redemptions -- First mortgage bonds - - - Long-term senior notes - - - Other long-term debt - - (22,294) Capital and preferred securities - - (200,000) Preferred stock - - - Capital distributions to parent company - - - Payment of preferred stock dividends - - - Payment of common stock dividends - - (67,990) Other 389,851 (24,485) (433,036) -------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities - 1,128,697 (27,515) -------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents - 15,763 4,968 Cash and Cash Equivalents at Beginning of Period 10 3,711 85,395 -------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 10 $ 19,474 $ 90,363 ==================================================================================================================== Supplemental Cash Flow Information: Cash paid during the period for -- Interest (net of amount capitalized) $ - $ - $ 20,521 Income taxes - 23,937 (233,236) -------------------------------------------------------------------------------------------------------------------- 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-4a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Mgt Dev LINC Powercall Telecom Operating Activities: Consolidated net income $ 288 $ 8,767 $ 25 $ (27) Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities -- Depreciation and amortization 211 28,799 - 1,391 Deferred income taxes and investment tax credits (183) 3,225 - 255 Equity in earnings of unconsolidated subsidiaries 1,130 - - - Leveraged lease income - - - - Pension, postretirement, and other employee benefits (5) - - - Other, net 1,150 1,533 - 1,097 Changes in certain current assets and liabilities -- Receivables, net 1,495 512 505 (1,167) Fossil fuel stock - - - - Materials and supplies (647) (1,115) - - Other currents assets - 176 - 293 Accounts payable (687) 4,571 (669) (2,710) Taxes accrued (670) 782 14 - Other current liabilities 95 2,284 - (532) -------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities 2,177 49,534 (125) (1,400) -------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (921) (21,844) - (3,753) Cost of removal net of salvage - - - - Other (190) 30 - 1,813 -------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities (1,111) (21,814) - (1,940) -------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net - (26,455) - 4,310 Proceeds -- Long-term senior notes - - - - Other long-term debt - - - - Preferred securities - - - - Common Stock 1 - - - Capital contributions from parent company 1,613 500 - 78 Redemptions -- First mortgage bonds - - - - Long-term senior notes - - - - Other long-term debt - (23) - - Capital and preferred securities - - - - Preferred stock - - - - Capital distributions to parent company - - - - Payment of preferred stock dividends - - - - Payment of common stock dividends (6,043) - - - Other (944) - - - -------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities (5,373) (25,978) - 4,388 -------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents (4,307) 1,742 (125) 1,048 Cash and Cash Equivalents at Beginning of Period 4,652 6,822 2,290 102 -------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 345 $ 8,564 $ 2,165 $ 1,150 ==================================================================================================================== Supplemental Cash Flow Information: Cash paid during the period for -- Interest (net of amount capitalized) $ 4 $ 26 $ - $ 232 Income taxes (2,977) (59) (443) (386) -------------------------------------------------------------------------------------------------------------------- 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-4b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Deferred Change in Southern Cash Stock Control Gas Trust Trust Trust Railroad Operating Activities: Consolidated net income $ 4,028 $ 27 $ 155 $ 776 $ - Adjustments to reconcile consolidated net income to net cash provided from (used for) operating activities -- Depreciation and amortization 2,533 - - - - Deferred income taxes and investment tax credits - - - - - Equity in earnings of unconsolidated subsidiaries - - - - - Leveraged lease income - - - - - Pension, postretirement, and other employee benefits - - - - - Other, net 6,664 (27) - (807) - Changes in certain current assets and liabilities -- Receivables, net (45,499) - - 34 (79) Fossil fuel stock (11,679) - - - - Materials and supplies - - - - - Other currents assets (24) - - - - Accounts payable 23,195 - - - 125 Taxes accrued 2,178 - - - - Other current liabilities 390 - - - - ----------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) operating activities (18,214) - 155 3 46 ----------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (177) - - - - Cost of removal net of salvage - - - - - Other (58,927) - (842) (2,665) - ----------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) investing activities (59,104) - (842) (2,665) - ----------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 55,050 - - - - Proceeds -- Long-term senior notes - - - - - Other long-term debt - - - - - Preferred securities - - - - - Common Stock - - - - - Capital contributions from parent company 23,700 - 883 2,665 - Redemptions -- First mortgage bonds - - - - - Long-term senior notes - - - - - Other long-term debt - - - - - Capital and preferred securities - - - - - Preferred stock - - - - - Capital distributions to parent company - - - - - Payment of preferred stock dividends - - - - - Payment of common stock dividends - - - - - Other - - - - - ----------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities 78,750 - 883 2,665 - ----------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 1,432 - 196 3 46 Cash and Cash Equivalents at Beginning of Period - - - 1 225 ----------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 1,432 $ - $ 196 $ 4 $ 271 ======================================================================================================================= Supplemental Cash Flow Information: Cash paid during the period for -- Interest (net of amount capitalized) $ 362 $ - $ - $ - $ - Income taxes - - - - - ------------------------------------------------------------------------------------------------------------------------ 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-4c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama ASSETS Current Assets: Cash and cash equivalents $ 273,032 $ - $ 8,795 $ 22,685 Receivables -- Customer accounts receivable 709,876 - - 240,052 Unbilled revenues 277,106 - - 89,336 Under recovered regulatory clause revenues 174,362 - - - Other accounts and notes receivable 370,021 - 56,103 47,535 Affiliated companies 393 (1,372,472) 375,404 74,099 Accumulated provision for uncollectible accounts (25,544) - - (4,827) Refundable income taxes - (9,035) - - Fossil fuel stock, at average cost 298,955 - - 73,742 Materials and supplies, at average cost 539,459 - - 187,596 Other 349,542 (53,145) 38,201 110,035 ----------------------------------------------------------------------------------------------------------------------------- Total current assets 2,967,202 (1,434,652) 478,503 840,253 ----------------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service 37,485,855 - - 13,506,170 Less accumulated provision for depreciation 15,448,852 - - 5,543,416 ----------------------------------------------------------------------------------------------------------------------------- 22,037,003 - - 7,962,754 Nuclear fuel, at amortized cost 222,676 - - 103,088 Construction work in progress 2,382,287 - - 478,652 ----------------------------------------------------------------------------------------------------------------------------- Total property, plant, and equipment 24,641,966 - - 8,544,494 ----------------------------------------------------------------------------------------------------------------------------- Other Property and Investments: Nuclear decommissioning trusts, at fair value 639,167 - - 292,297 Leveraged leases 790,767 - - - Equity investments in unconsolidated subsidiaries 78,111 (10,398,482) 10,297,998 45,553 Other 165,242 (1,407,760) 16,432 16,477 ----------------------------------------------------------------------------------------------------------------------------- Total other property and investments 1,673,287 (11,806,242) 10,314,430 354,327 ----------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 897,777 - - 327,276 Prepaid pension costs 786,115 (43,837) - 389,793 Unamortized debt issuance expense 108,830 - - 4,361 Unamortized premium on reacquired debt 313,057 - - 103,819 Other 410,759 (281,848) 3,803 121,683 ----------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 2,516,538 (325,685) 3,803 946,932 ----------------------------------------------------------------------------------------------------------------------------- Total Assets $ 31,798,993 $ (13,566,579) $ 10,796,736 $ 10,686,006 =============================================================================================================================
(Continued on following page) A-5a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah ASSETS Current Assets: Cash and cash equivalents $ 16,873 $ 13,278 $ 62,695 $ 3,978 Receivables -- Customer accounts receivable 302,995 48,609 31,136 22,631 Unbilled revenues 104,454 28,077 18,434 11,531 Under recovered regulatory clause revenues 117,580 29,549 27,233 - Other accounts and notes receivable 122,585 6,618 8,056 2,937 Affiliated companies 40,501 8,678 20,674 1,102 Accumulated provision for uncollectible accounts (5,825) (889) (718) (682) Refundable income taxes - - - - Fossil fuel stock, at average cost 120,048 37,191 27,303 8,328 Materials and supplies, at average cost 263,364 34,840 22,063 9,586 Other 96,922 26,838 39,205 26,480 ----------------------------------------------------------------------------------------------------------------------------- Total current assets 1,179,497 232,789 256,081 85,891 ----------------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service 17,222,661 2,248,156 1,786,378 880,604 Less accumulated provision for depreciation 7,333,529 946,408 722,231 416,232 ----------------------------------------------------------------------------------------------------------------------------- 9,889,132 1,301,748 1,064,147 464,372 Nuclear fuel, at amortized cost 119,588 - - - Construction work in progress 667,581 35,708 34,065 6,082 ----------------------------------------------------------------------------------------------------------------------------- Total property, plant, and equipment 10,676,301 1,337,456 1,098,212 470,454 ----------------------------------------------------------------------------------------------------------------------------- Other Property and Investments: Nuclear decommissioning trusts, at fair value 346,870 - - - Leveraged leases - - - - Equity investments in unconsolidated subsidiaries 36,167 1,275 1,097 1,793 Other 28,612 8,882 671 1,855 ----------------------------------------------------------------------------------------------------------------------------- Total other property and investments 411,649 10,157 1,768 3,648 ----------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 524,510 18,798 12,617 11,692 Prepaid pension costs 341,944 36,298 14,993 - Unamortized debt issuance expense 67,362 3,900 4,304 3,757 Unamortized premium on reacquired debt 178,590 14,052 7,776 8,103 Other 162,686 20,379 16,415 33,660 ----------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 1,275,092 93,427 56,105 57,212 ----------------------------------------------------------------------------------------------------------------------------- Total Assets $ 13,542,539 $ 1,673,829 $ 1,412,166 $ 617,205 =============================================================================================================================
(Continued on following page) A-5b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) Southern SEGCO SCS Nuclear ASSETS Current Assets: Cash and cash equivalents $ 559 $19,337 $ 858 Receivables -- Customer accounts receivable - - - Unbilled revenues - - - Under recovered regulatory clause revenues - - - Other accounts and notes receivable - 109,100 1,537 Affiliated companies 33,711 236,580 58,285 Accumulated provision for uncollectible accounts - - - Refundable income taxes 1,841 - - Fossil fuel stock, at average cost - - - Materials and supplies, at average cost 668 1,341 - Other 307 28,122 6,123 ---------------------------------------------------------------------------------------------------------- Total current assets 37,086 394,480 66,803 ---------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service 313,391 238,255 6,527 Less accumulated provision for depreciation 223,914 108,060 5,270 ---------------------------------------------------------------------------------------------------------- 89,477 130,195 1,257 Nuclear fuel, at amortized cost - - - Construction work in progress 59,585 194 - ---------------------------------------------------------------------------------------------------------- Total property, plant, and equipment 149,062 130,389 1,257 ---------------------------------------------------------------------------------------------------------- Other Property and Investments: Nuclear decommissioning trusts, at fair value - - - Leveraged leases - - - Equity investments in unconsolidated subsidiaries - 6,566 1,285 Other 7 69 - ---------------------------------------------------------------------------------------------------------- Total other property and investments 7 6,635 1,285 ---------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 2,884 - - Prepaid pension costs - 46,924 - Unamortized debt issuance expense 223 222 - Unamortized premium on reacquired debt 717 - - Other 1 57,656 166,759 ---------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 3,825 104,802 166,759 ---------------------------------------------------------------------------------------------------------- Total Assets $ 189,980 $ 636,306 $ 236,104 ==========================================================================================================
(Continued on following page) A-5c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Southern Funding Power Holdings Mgt Dev ASSETS Current Assets: Cash and cash equivalents $ 10 $ 19,474 $ 90,363 $ 345 Receivables -- Customer accounts receivable - 6,609 - 2,237 Unbilled revenues - - - - Under recovered regulatory clauses revenues - - - - Other accounts and notes receivable - - 13,537 - Affiliated companies 474,073 11,555 24,862 5,135 Accumulated provision for uncollectible accounts - (350) (521) (2,544) Refundable income taxes - - - 220 Fossil fuel stock, at average cost - 11,031 - - Materials and supplies, at average cost - 6,553 8,616 1,499 Other 1 18,750 1,293 3 -------------------------------------------------------------------------------------------------------------------------- Total current assets 474,084 73,622 138,150 6,895 -------------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service - 896,163 12,749 1,414 Less accumulated provision for depreciation - 21,590 3,917 278 -------------------------------------------------------------------------------------------------------------------------- - 874,573 8,832 1,136 Nuclear fuel, at amortized cost - - - - Construction work in progress - 1,082,987 - - -------------------------------------------------------------------------------------------------------------------------- Total property, plant, and equipment - 1,957,560 8,832 1,136 -------------------------------------------------------------------------------------------------------------------------- Other Property and Investments: Nuclear decommissioning trusts, at fair value - - - - Leveraged leases - - 790,767 - Equity investments in unconsolidated subsidiaries - - 67,860 16,927 Other - - 1,439,303 2,182 -------------------------------------------------------------------------------------------------------------------------- Total other property and investments - - 2,297,930 19,109 -------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - Prepaid pension costs - - - - Unamortized debt issuance expense - - 24,701 - Unamortized premium on reacquired debt - - - - Other - 54,794 34,354 1,122 -------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets - 54,794 59,055 1,122 -------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- Total Assets $ 474,084 $ 2,085,976 $ 2,503,967 $ 28,262 ==========================================================================================================================
(Continued on following page) A-6a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern LINC Powercall Telecom Gas ASSETS Current Assets: Cash and cash equivalents $ 8,564 $ 2,165 $ 1,150 $ 1,432 Receivables -- Customer accounts receivable 19,899 - 2,918 32,790 Unbilled revenues - - - 25,274 Under recovered regulatory clauses revenues - - - - Other accounts and notes receivable 199 - - 1,645 Affiliated companies 1,537 24 1,713 4,685 Accumulated provision for uncollectible accounts (1,022) - (534) (7,632) Refundable income taxes 6,974 - - - Fossil fuel stock, at average cost - - - 21,312 Materials and supplies, at average cost 3,333 - - - Other 1,037 - 2,038 7,332 ------------------------------------------------------------------------------------------------------------------- Total current assets 40,521 2,189 7,285 86,838 ------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service 333,825 - 32,412 7,150 Less accumulated provision for depreciation 120,882 - 2,511 614 ------------------------------------------------------------------------------------------------------------------- 212,943 - 29,901 6,536 Nuclear fuel, at amortized cost - - - - Construction work in progress 16,964 - 469 - ------------------------------------------------------------------------------------------------------------------- Total property, plant, and equipment 229,907 - 30,370 6,536 ------------------------------------------------------------------------------------------------------------------- Other Property and Investments: Nuclear decommissioning trusts, at fair value - - - - Leveraged leases - - - - Equity investments in unconsolidated subsidiaries 72 - - - Other - - - 30,420 ------------------------------------------------------------------------------------------------------------------- Total other property and investments 72 - - 30,420 ------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - Prepaid pension costs - - - - Unamortized debt issuance expense - - - - Unamortized premium on reacquired debt - - - - Other 38 337 18,920 - ------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 38 337 18,920 - ------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------- Total Assets $ 270,538 $ 2,526 $ 56,575 $ 123,794 =================================================================================================================== (Continued on following page)
A-6b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Deferred Change in Cash Stock Control Trust Trust Trust Railroad ASSETS Current Assets: Cash and cash equivalents $ - $ 196 $ 4 $ 271 Receivables -- Customer accounts receivable - - - - Unbilled revenues - - - - Under recovered regulatory clauses revenues - - - - Other accounts and notes receivable - - 169 - Affiliated companies - - - 247 Accumulated provision for uncollectible accounts - - - - Refundable income taxes - - - - Fossil fuel stock, at average cost - - - - Materials and supplies, at average cost - - - - Other - - - - ---------------------------------------------------------------------------------------------------------------- Total current assets - 196 173 518 ---------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment: In service - - - - Less accumulated provision for depreciation - - - - ---------------------------------------------------------------------------------------------------------------- - - - - Nuclear fuel, at amortized cost - - - - Construction work in progress - - - - ---------------------------------------------------------------------------------------------------------------- Total property, plant, and equipment - - - - ---------------------------------------------------------------------------------------------------------------- Other Property and Investments: Nuclear decommissioning trusts, at fair value - - - - Leveraged leases - - - - Equity investments in unconsolidated subsidiaries - - - - Other 875 4,115 23,102 - ---------------------------------------------------------------------------------------------------------------- Total other property and investments 875 4,115 23,102 - ---------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - Prepaid pension costs - - - - Unamortized debt issuance expense - - - - Unamortized premium on reacquired debt - - - - Other - - - - ---------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets - - - - ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- Total Assets $ 875 $4,311 $ 23,275 $ 518 ================================================================================================================ (Continued on following page)
A-6c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $ 1,639,489 $ - $ - Notes payable 1,007,437 (844,732) 473,817 Accounts payable -- - Affiliated 44 (506,917) 9,944 Other 985,616 - 26,725 Customer deposits 168,952 - - Taxes accrued -- - Income taxes 112,765 (62,180) 25,378 Other 218,966 - (60) Interest accrued 158,196 (24,808) 20,419 Vacation pay accrued 130,015 - - Other 592,532 - 31,961 -------------------------------------------------------------------------------------------------------------------------- Total current liabilities 5,014,012 (1,438,637) 588,184 ------------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) 8,657,983 (1,404,383) 1,404,383 ------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 4,214,471 (118,412) 3,208 Deferred credits related to income taxes 449,816 - - Accumulated deferred investment tax credits 606,778 - - Employee benefits provisions 1 614,239 (175,358) 4,128 Deferred capacity revenues 37,071 (13,075) - Other 776,394 (15,638) 6,551 ------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 6,698,769 (322,483) 13,887 ------------------------------------------------------------------------------------------------------------------------- Company or subsidiary obligated mandatorily redeemable capital and preferred securities (See accompanying statements) 2,420,000 - - ------------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) 298,126 - - ------------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 8,710,103 (10,401,076) 8,790,282 ------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 31,798,993 $ (13,566,579) $ 10,796,736 =========================================================================================================================
(Continued on following page) A-7a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Alabama Georgia Gulf Mississippi LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $1,117,945 $ 322,125 $ 60,000 $ 69,200 Notes payable 36,991 357,677 28,479 - Accounts payable -- Affiliated 109,790 135,260 26,395 22,396 Other 150,195 445,220 39,989 91,710 Customer deposits 44,410 94,859 16,047 6,855 Taxes accrued -- Income taxes 80,438 20,245 10,718 12,042 Other 20,561 134,269 9,170 41,464 Interest accrued 36,344 59,608 7,875 6,562 Vacation pay accrued 33,901 42,442 5,044 5,782 Other 114,870 112,131 3,629 44,184 --------------------------------------------------------------------------------------------------------------------------- Total current liabilities 1,745,445 1,723,836 207,346 300,195 -------------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) 2,851,562 3,109,619 452,040 243,715 -------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 1,436,559 2,176,438 167,689 146,631 Deferred credits related to income taxes 177,205 208,410 29,692 20,798 Accumulated deferred investment tax credits 227,270 324,994 22,289 21,054 Employee benefits provisions 1 141,149 236,486 39,656 49,869 Deferred capacity revenues 33,924 - - - Other 147,640 373,740 46,376 45,142 -------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 2,163,747 3,320,068 305,702 283,494 -------------------------------------------------------------------------------------------------------------------------- Company or subsidiary obligated mandatorily redeemable capital and preferred securities (See accompanying statements) 300,000 940,000 155,000 35,000 -------------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) 247,512 14,569 4,236 31,809 -------------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 3,377,740 4,434,447 549,505 517,953 -------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 10,686,006 $ 13,542,539 $ 1,673,829 $ 1,412,166 ==========================================================================================================================
(Continued on following page) A-7b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Savannah SEGCO SCS Nuclear LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $20,892 $ - $ 8,280 $ - Notes payable 2,897 67,697 - - Accounts payable -- Affiliated 7,889 14,133 105,160 5,992 Other 15,769 - 158,573 13,850 Customer deposits 6,781 - - - Taxes accrued -- Income taxes 311 2,228 730 - Other 3,317 330 (108) 1,797 Interest accrued 3,268 232 127 - Vacation pay accrued 2,427 - 20,589 18,552 Other 15,233 - 145,182 53,183 ------------------------------------------------------------------------------------------------------------------------ Total current liabilities 78,784 84,620 438,533 93,374 ------------------------------------------------------------------------------------------------------------------------ Long-term debt (See accompanying statements) 168,052 24,388 52,144 - ------------------------------------------------------------------------------------------------------------------------ Deferred Credits and Other Liabilities: Accumulated deferred income taxes 78,970 18,504 - - Deferred credits related to income taxes 12,445 1,266 - - Accumulated deferred investment tax credits 9,289 1,882 - - Employee benefits provisions 1 33,619 - 157,449 121,338 Deferred capacity revenues - - - - Other 16,242 - 2,294 5,183 ------------------------------------------------------------------------------------------------------------------------ Total deferred credits and other liabilities 150,565 21,652 159,743 126,521 ------------------------------------------------------------------------------------------------------------------------ Company or subsidiary obligated mandatorily redeemable capital and preferred securities (See accompanying statements) 40,000 - - - ------------------------------------------------------------------------------------------------------------------------ Cumulative preferred stock of subsidiaries (See accompanying statements) - - - - ------------------------------------------------------------------------------------------------------------------------ Common stockholders' equity (See accompanying statements) 179,804 59,320 (14,114) 16,209 ------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $ 617,205 $ 189,980 $ 636,306 $ 236,104 ========================================================================================================================
(Continued on following page) A-7c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Southern Funding Power Holdings Mgt Dev LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $ - $ 200 $ 40,819 $ - Notes payable 473,741 210,488 41,479 - Accounts payable -- Affiliated - 37,748 6,442 1,498 Other - 4,522 19,515 1,504 Customer deposits - - - - Taxes accrued -- Income taxes - 3,915 16,723 - Other - 4,313 18 17 Interest accrued 333 20,713 24,342 - Vacation pay accrued - - - - Other - 3,484 15,299 273 ------------------------------------------------------------------------------------------------------------------------- Total current liabilities 474,074 285,383 164,637 3,292 ------------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) - 955,879 800,269 - ------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - 276,738 - Deferred credits related to income taxes - - - - Accumulated deferred investment tax credits - - - - Employee benefits provisions 1 - - 1,447 4 Deferred capacity revenues - 16,222 - - Other - 81,888 42,670 4,982 ------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities - 98,110 320,855 4,986 ------------------------------------------------------------------------------------------------------------------------- Company or subsidiary obligated mandatorily redeemable capital and preferred securities (See accompanying statements) - - 950,000 - ------------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) - - - - ------------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 10 746,604 268,206 19,984 ------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 474,084 $ 2,085,976 $ 2,503,967 $ 28,262 ========================================================================================================================= 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-8a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern LINC Powercall Telecom Gas LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $ 28 $ - $ - $ - Notes payable 96,073 - 7,780 55,050 Accounts payable -- Affiliated 3,605 38 1,042 19,116 Other 11,068 847 864 5,265 Customer deposits - - - - Taxes accrued -- Income taxes 2,140 77 - - Other 1,700 - - 2,178 Interest accrued 2,801 - 40 340 Vacation pay accrued 1,212 - 66 - Other 10,490 - 41,314 1,299 ------------------------------------------------------------------------------------------------------------------- Total current liabilities 129,117 962 51,106 83,248 ------------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) 315 - - - ------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 28,057 89 - - Deferred credits related to income taxes - - - - Accumulated deferred investment tax credits - - - - Employee benefits provisions 1 4,334 - 118 - Deferred capacity revenues - - - - Other 19,323 1 - - ------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 51,714 90 118 - ------------------------------------------------------------------------------------------------------------------- Company or subsidiary obligated mandatorily redeemable capital and preferred securities (See accompanying statements) - - - - ------------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) - - - - ------------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 89,392 1,474 5,351 40,546 ------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 270,538 $ 2,526 $ 56,575 $ 123,794 =================================================================================================================== 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-8b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEET -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Deferred Change in Cash Stock Control Trust Trust Trust Railroad LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Securities due within one year $ - $ - $ - $ - Notes payable - - - - Accounts payable -- Affiliated - - - 513 Other - - - - Customer deposits - - - - Taxes accrued -- Income taxes - - - - Other - - - - Interest accrued - - - - Vacation pay accrued - - - - Other - - - - ----------------------------------------------------------------------------------------------------------------- Total current liabilities - - - 513 ----------------------------------------------------------------------------------------------------------------- Long-term debt (See accompanying statements) - - - - ----------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - - Deferred credits related to income taxes - - - - Accumulated deferred investment tax credits - - - - Employee benefits provisions 1 - - - - Deferred capacity revenues - - - - Other - - - - ----------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities - - - - ----------------------------------------------------------------------------------------------------------------- Company or subsidiary obligated mandatorily redeemable capital and preferred securities (See accompanying statements) - - - - ----------------------------------------------------------------------------------------------------------------- Cumulative preferred stock of subsidiaries (See accompanying statements) - - - - ----------------------------------------------------------------------------------------------------------------- Common stockholders' equity (See accompanying statements) 875 4,311 23,275 5 ----------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 875 $4,311 $ 23,275 $ 518 ================================================================================================================= 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-8c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2006 6.50% to 6.90% 45,000 - - - 2023 7.45% 33,350 - - 2025 6.88% 30,000 - - - 2026 6.88% 30,000 - - - --------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds 138,350 - - - --------------------------------------------------------------------------------------------------------------------------- Long-term notes payable -- Maturity Interest Rates 2003 4.69% to 7.85% 841,200 - - 406,200 2004 4.88% to 7.13% 575,000 - - 525,000 2005 5.49% to 7.25% 379,543 - - 225,000 2006 6.20% 150,000 - - - 2007 4.88% to 7.13% 902,085 - - 200,000 2008 through 2012 4.70% to 7.63% 1,265,343 - - 260,000 2016 through 2018 5.50% to 8.12% 608,000 - - 325,000 2022 through 2038 5.88% to 7.50% 518,385 - - 200,000 2039 through 2048 6.63% to 7.13% 1,028,800 - - 783,800 Adjustable rates: 2003 1.52% to 1.53% 517,000 - - 517,000 2004 1.51% to 2.93% 511,804 - - - 2005 2.12% to 2.69% 211,488 - - - 2007 2.82% 50,000 - - - Long-term notes payable to affiliates - (1,404,383) 1,404,383 --------------------------------------------------------------------------------------------------------------------------- Total long-term notes payable 7,558,648 (1,404,383) 1,404,383 3,442,000 --------------------------------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Maturity Interest Rates Collateralized: 2006 5.25% 12,075 - - - 2007 5.80% 850 - - - 2023 through 2026 5.50% to 5.80% 86,025 - - 24,400 Variable rates (at 1/1/03): due 2015-2017 1.56% to 1.80% 89,800 - - 89,800 Non-collateralized: 2012 through 2034 1.75% to 5.45% 789,260 - - - Variable rates (at 1/1/03) due 2011-2037 1.30% to 2.50% 1,563,650 - - 445,940 --------------------------------------------------------------------------------------------------------------------------- Total other long-term debt 2,541,660 - - 560,140 --------------------------------------------------------------------------------------------------------------------------- Capitalized lease obligations 105,720 - - 2,439 --------------------------------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net (46,906) - - (35,072) --------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) 10,297,472 (1,404,383) 1,404,383 3,969,507 Less amount due within one year 1,639,489 - - 1,117,945 --------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ 8,657,983 $(1,404,383) $1,404,383 $ 2,851,562 --------------------------------------------------------------------------------------------------------------------------- (Continued on following page)
A-9a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2006 6.50% to 6.90% - 25,000 - 20,000 2023 7.45% - - 33,350 2025 6.88% - 30,000 - 2026 6.88% - 30,000 - - ------------------------------------------------------------------------------------------------------------------------ Total first mortgage bonds - 55,000 63,350 20,000 ------------------------------------------------------------------------------------------------------------------------ Long-term notes payable -- Maturity Interest Rates 2003 4.69% to 7.85% 320,000 60,000 35,000 20,000 2004 4.88% to 7.13% - 50,000 - - 2005 5.49% to 7.25% 150,000 - - - 2006 6.20% 150,000 - - - 2007 4.88% to 7.13% 300,000 - - - 2008 through 2012 4.70% to 7.63% 300,000 45,000 - 45,000 2016 through 2018 5.50% to 8.12% - 75,000 - 55,000 2022 through 2038 5.88% to 7.50% 200,000 66,757 51,628 - 2039 through 2048 6.63% to 7.13% 245,000 - - - Adjustable rates: 2003 1.52% to 1.53% - - - - 2004 1.51% to 2.93% - - 80,000 - 2005 2.12% to 2.69% - - - 25,000 2007 2.82% - - - - Long-term notes payable to affiliates ------------------------------------------------------------------------------------------------------------------------ Total long-term notes payable 1,665,000 296,757 166,628 145,000 ------------------------------------------------------------------------------------------------------------------------ Other long-term debt -- Pollution control revenue bonds -- Maturity Interest Rates Collateralized: 2006 5.25% - 12,075 - - 2007 5.80% - - 850 - 2023 through 2026 5.50% to 5.80% - 61,625 - - Variable rates (at 1/1/03): due 2015-2017 1.56% to 1.80% - - - - Non-collateralized: 2012 through 2034 1.75% to 5.45% 751,760 13,000 - - Variable rates (at 1/1/03) due 2011-2037 1.30% to 2.50% 934,130 82,930 82,695 17,955 ------------------------------------------------------------------------------------------------------------------------ Total other long-term debt 1,685,890 169,630 83,545 17,955 ------------------------------------------------------------------------------------------------------------------------ Capitalized lease obligations 81,411 - - 5,989 ------------------------------------------------------------------------------------------------------------------------ Unamortized debt premium (discount), net (557) (9,347) (608) - ------------------------------------------------------------------------------------------------------------------------ Total long-term debt (annual interest requirement -- $443 million) 3,431,744 512,040 312,915 188,944 Less amount due within one year 322,125 60,000 69,200 20,892 ------------------------------------------------------------------------------------------------------------------------ Long-term debt excluding amount due within one year $ 3,109,619 $ 452,040 $ 243,715 $ 168,052 ------------------------------------------------------------------------------------------------------------------------
(Continued on following page) A-9b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) Southern SEGCO SCS Nuclear Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2006 6.50% to 6.90% - - - 2023 7.45% - - - 2025 6.88% - - - 2026 6.88% - - - ------------------------------------------------------------------------------------------------- Total first mortgage bonds - - - ------------------------------------------------------------------------------------------------- Long-term notes payable -- Maturity Interest Rates 2003 4.69% to 7.85% - - - 2004 4.88% to 7.13% - - - 2005 5.49% to 7.25% - 4,543 - 2006 6.20% - - - 2007 4.88% to 7.13% - - - 2008 through 2012 4.70% to 7.63% - 40,000 - 2016 through 2018 5.50% to 8.12% - - - 2022 through 2038 5.88% to 7.50% - - - 2039 through 2048 6.63% to 7.13% - - - Adjustable rates: 2003 1.52% to 1.53% - - - 2004 1.51% to 2.93% - - - 2005 2.12% to 2.69% - - - 2007 2.82% - - - Long-term notes payable to affiliates ------------------------------------------------------------------------------------------------- Total long-term notes payable - 44,543 - ------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Maturity Interest Rates Collateralized: 2006 5.25% - - - 2007 5.80% - - - 2023 through 2026 5.50% to 5.80% - - - Variable rates (at 1/1/03): due 2015-2017 1.56% to 1.80% - - - Non-collateralized: 2012 through 2034 1.75% to 5.45% 24,500 - - Variable rates (at 1/1/03) due 2011-2037 1.30% to 2.50% - - - ------------------------------------------------------------------------------------------------- Total other long-term debt 24,500 - - ------------------------------------------------------------------------------------------------- Capitalized lease obligations - 15,881 - ------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net (112) - - ------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) 24,388 60,424 - Less amount due within one year - 8,280 - ------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ 24,388 $ 52,144 $ - ------------------------------------------------------------------------------------------------- (Continued on following page)
A-9c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Southern Funding Power Holdings Mgt Dev Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2006 6.50% to 6.90% - - - - 2023 7.45% - - - - 2025 6.88% - - - - 2026 6.88% - - - - --------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds - - - - --------------------------------------------------------------------------------------------------------------------- Long-term notes payable -- Maturity Interest Rates 2003 4.69% to 7.85% - - - - 2004 4.88% to 7.13% - - - - 2005 5.49% to 7.25% - - - - 2006 6.20% - - - - 2007 4.88% to 7.13% - 2,085 400,000 - 2008 through 2012 4.70% to 7.63% - 575,000 - - 2016 through 2018 5.50% to 8.12% - - 153,000 - 2022 through 2038 5.88% to 6.75% - - - - 2039 through 2048 6.63% to 7.13% - - - - Adjustable rates: 2003 1.52% to 1.53% - - - - 2004 1.51% to 2.93% - 380,204 51,600 - 2005 2.12% to 2.69% - - 186,488 - 2007 2.82% 50,000 - Long-term notes payable to affiliates --------------------------------------------------------------------------------------------------------------------- Total long-term notes payable - 957,289 841,088 - --------------------------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Maturity Interest Rates Collateralized: 2006 5.25% - - - - 2007 5.80% - - - - 2023 through 2026 5.50% to 5.80% - - - - Variable rates (at 1/1/03): due 2015-2017 1.56% to 1.80% - - - - Non-collateralized 2012 through 2034 1.75% to 5.45% - - - - Variable rates (at 1/1/03) due 2011-2037 1.30% to 2.50% - - - - --------------------------------------------------------------------------------------------------------------------- Total other long-term debt - - - - --------------------------------------------------------------------------------------------------------------------- Capitalized lease obligations - - - - --------------------------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net - (1,210) - - --------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) - 956,079 841,088 - Less amount due within one year - 200 40,819 - --------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ - $ 955,879 $ 800,269 $ - ---------------------------------------------------------------------------------------------------------------------
(Continued on following page) A-10a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Southern Southern Southern Cash LINC Powercall Telecom Gas Trust Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2006 6.50% to 6.90% - - - - - 2023 7.45% - - - - - 2025 6.88% - - - - - 2026 6.88% - - - - - -------------------------------------------------------------------------------------------------------------------------- Total first mortgage bonds - - - - - -------------------------------------------------------------------------------------------------------------------------- Long-term notes payable -- Maturity Interest Rates 2003 4.69% to 7.85% - - - - - 2004 4.88% to 7.13% - - - - - 2005 5.49% to 7.25% - - - - - 2006 6.20% - - - - - 2007 4.88% to 7.13% - - - - - 2008 through 2012 4.70% to 7.63% 343 - - - - 2016 through 2018 5.50% to 8.12% - - - - - 2022 through 2038 5.88% to 6.75% - - - - - 2039 through 2048 6.63% to 7.13% - - - - - Adjustable rates: 2003 1.52% to 1.53% - - - - - 2004 1.51% to 2.93% - - - - - 2005 2.12% to 2.69% - - - - - 2007 2.82% - - - - - Long-term notes payable to affiliates -------------------------------------------------------------------------------------------------------------------------- Total long-term notes payable 343 - - - - -------------------------------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Maturity Interest Rates Collateralized: 2006 5.25% - - - - - 2007 5.80% - - - - - 2023 through 2026 5.50% to 5.80% - - - - - Variable rates (at 1/1/03): due 2015-2017 1.56% to 1.80% - - - - - Non-collateralized 2012 through 2034 1.75% to 5.45% - - - - - Variable rates (at 1/1/03) due 2011-2037 1.30% to 2.50% - - - - - -------------------------------------------------------------------------------------------------------------------------- Total other long-term debt - - - - - -------------------------------------------------------------------------------------------------------------------------- Capitalized lease obligations - - - - - -------------------------------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net - - - - - -------------------------------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) 343 - - - - Less amount due within one year 28 - - - - -------------------------------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ 315 $ - $ - $ - $ - --------------------------------------------------------------------------------------------------------------------------
(Continued on following page) A-10b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Change in Stock Control Trust Trust Railroad Long-Term Debt of Subsidiaries: First mortgage bonds -- Maturity Interest Rates 2006 6.50% to 6.90% - - - 2023 7.45% - - - 2025 6.88% - - - 2026 6.88% - - - -------------------------------------------------------------------------------------------------- Total first mortgage bonds - - - -------------------------------------------------------------------------------------------------- Long-term notes payable -- Maturity Interest Rates 2003 4.69% to 7.85% - - - 2004 4.88% to 7.13% - - - 2005 5.49% to 7.25% - - - 2006 6.20% - - - 2007 4.88% to 7.13% - - - 2008 through 2012 4.70% to 7.63% - - - 2016 through 2018 5.50% to 8.12% - - - 2022 through 2038 5.88% to 6.75% - - - 2039 through 2048 6.63% to 7.13% - - - Adjustable rates: 2003 1.52% to 1.53% - - - 2004 1.51% to 2.93% - - - 2005 2.12% to 2.69% - - - 2007 2.82% - - Long-term notes payable to affiliates -------------------------------------------------------------------------------------------------- Total long-term notes payable - - - -------------------------------------------------------------------------------------------------- Other long-term debt -- Pollution control revenue bonds -- Maturity Interest Rates Collateralized: 2006 5.25% - - - 2007 5.80% - - - 2023 through 2026 5.50% to 5.80% - - - Variable rates (at 1/1/03): due 2015-2017 1.56% to 1.80% - - - Non-collateralized 2012 through 2034 1.75% to 5.45% - - - Variable rates (at 1/1/03) due 2011-2037 1.30% to 2.50% - - - -------------------------------------------------------------------------------------------------- Total other long-term debt - - - -------------------------------------------------------------------------------------------------- Capitalized lease obligations - - - -------------------------------------------------------------------------------------------------- Unamortized debt premium (discount), net - - - -------------------------------------------------------------------------------------------------- Total long-term debt (annual interest requirement -- $443 million) - - - Less amount due within one year - - - -------------------------------------------------------------------------------------------------- Long-term debt excluding amount due within one year $ - $ - $ - --------------------------------------------------------------------------------------------------
(Continued on following page) A-10c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 4.75% to 5.60% $ 640,000 $ - $ - $ 300,000 6.85% to 7.00% 435,000 - - - 7.13% 840,000 - - - 7.20% to 8.19% 505,000 - - - ---------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $163 million) 2,420,000 - - 300,000 ---------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% 98,126 - - 47,512 $25 par or stated value -- 5.20% to 5.83% 200,000 - - 200,000 ---------------------------------------------------------------------------------------------------------------------------- Total cumulative preferred stock of subsidiaries 298,126 - - 247,512 (annual dividend requirement -- $18 million) ---------------------------------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 717 million shares Treasury: 0.1 million shares Par value 3,582,743 (715,306) 3,582,743 240,000 Paid-in capital 337,670 (6,070,657) 336,764 1,900,563 Treasury, at cost (2,815) (2,815) - - Retained earnings 4,874,375 (3,612,298) 4,874,939 1,250,594 Accumulated other comprehensive income (81,870) - (4,164) (13,417) ---------------------------------------------------------------------------------------------------------------------------- Total common stockholders' equity 8,710,103 (10,401,076) 8,790,282 3,377,740 ---------------------------------------------------------------------------------------------------------------------------- Total Capitalization $ 20,086,212 $ (11,805,459) $10,194,665 $ 6,776,814 ============================================================================================================================
(Continued on following page) A-11a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Georgia Gulf Mississippi Savannah Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 4.75% to 5.60% $ 300,000 $ 40,000 $ - $ - 6.85% to 7.00% 200,000 45,000 - 40,000 7.13% 440,000 - - - 7.20% to 8.19% - 70,000 35,000 - ------------------------------------------------------------------------------------------------------------------------ Total (annual distribution requirement -- $163 million) 940,000 155,000 35,000 40,000 ------------------------------------------------------------------------------------------------------------------------ Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% 14,569 4,236 31,809 - $25 par or stated value -- 5.20% to 5.83% - - - - ------------------------------------------------------------------------------------------------------------------------ Total cumulative preferred stock of subsidiaries 14,569 4,236 31,809 - (annual dividend requirement -- $18 million) ------------------------------------------------------------------------------------------------------------------------ Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 717 million shares Treasury: 0.1 million shares Par value 344,250 38,060 37,691 54,223 Paid-in capital 2,156,080 349,781 285,606 16,776 Treasury, at cost - - - - Retained earnings 1,945,520 162,398 195,920 110,049 Accumulated other comprehensive income (11,403) (734) (1,264) (1,244) ------------------------------------------------------------------------------------------------------------------------ Total common stockholders' equity 4,434,447 549,505 517,953 179,804 ------------------------------------------------------------------------------------------------------------------------ Total Capitalization $ 8,498,635 $ 1,160,781 $ 828,477 $ 387,856 ========================================================================================================================
(Continued on following page) A-11b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern SEGCO SCS Nuclear Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 4.75% to 5.60% $ - $ - $ - 6.85% to 7.00% - - - 7.13% - - - 7.20% to 8.19% - - - ------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $163 million) - - - ------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% - - - $25 par or stated value -- 5.20% to 5.83% - - - ------------------------------------------------------------------------------------------------- Total cumulative preferred stock of subsidiaries - - - (annual dividend requirement -- $18 million) ------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 717 million shares Treasury: 0.1 million shares Par value 328 725 10 Paid-in capital 33,500 150 17,074 Treasury, at cost - - - Retained earnings 25,492 - - Accumulated other comprehensive income - (14,989) (875) ------------------------------------------------------------------------------------------------- Total common stockholders' equity 59,320 (14,114) 16,209 ------------------------------------------------------------------------------------------------- Total Capitalization $ 83,708 $ 38,030 $ 16,209 =================================================================================================
(Continued on following page) A-11c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Southern Southern Southern Southern Funding Power Holdings Mgt Dev Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 4.75% to 5.60% $ - $ - $ - $ - 6.85% to 7.00% - - 150,000 - 7.13% - - 400,000 - 7.20% to 8.19% - - 400,000 - --------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $170 million) - - 950,000 - --------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% - - - - $25 par or stated value -- 5.20% to 5.83% - - - - --------------------------------------------------------------------------------------------------------------------- Total cumulative preferred stock of subsidiaries - - - - (annual dividend requirement -- $18 million) --------------------------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 701 million shares Treasury: 2 million shares Par value - - 10 1 Paid-in capital 10 731,230 286,414 70,500 Treasury, at cost - - - - Retained earnings - 62,477 (18,214) (50,517) Accumulated other comprehensive income - (47,103) (4) - --------------------------------------------------------------------------------------------------------------------- Total common stockholders' equity 10 746,604 268,206 19,984 --------------------------------------------------------------------------------------------------------------------- Total Capitalization $ 10 $ 1,702,483 $ 2,018,475 $ 19,984 ===================================================================================================================== 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-12a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Southern Southern Southern Cash LINC Powercall Telecom Gas Trust Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 4.75% to 5.60% $ - $ - $ - $ - $ - 6.85% to 7.00% - - - - - 7.13% - - - - - 7.20% to 8.19% - - - - - -------------------------------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $170 million) - - - - - -------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% - - - - - $25 par or stated value -- 5.20% to 5.83% - - - - - -------------------------------------------------------------------------------------------------------------------------- Total cumulative preferred stock of subsidiaries - - - - - (annual dividend requirement -- $18 million) -------------------------------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 701 million shares Treasury: 2 million shares Par value 1 1 1 - - Paid-in capital 158,235 15,994 1,650 23,700 783 Treasury, at cost - - - - - Retained earnings (68,830) (14,521) 3,700 4,028 77 Accumulated other comprehensive income (14) - - 12,818 15 -------------------------------------------------------------------------------------------------------------------------- Total common stockholders' equity 89,392 1,474 5,351 40,546 875 -------------------------------------------------------------------------------------------------------------------------- Total Capitalization $ 89,707 $ 1,474 $5,351 $ 40,546 $ 875 ========================================================================================================================== 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-12b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF CAPITALIZATION -- DECEMBER 31, 2002 (Stated in Thousands of Dollars) (Continued) Deferred Change in Stock Control Trust Trust Railroad Company or Subsidiary Obligated Mandatorily Redeemable Capital and Preferred Securities: $25 liquidation value -- 4.75% to 5.60% $ - $ - $ - 6.85% to 7.00% - - - 7.13% - - - 7.20% to 8.19% - - - ------------------------------------------------------------------------------------------------- Total (annual distribution requirement -- $170 million) - - - ------------------------------------------------------------------------------------------------- Cumulative Preferred Stock of Subsidiaries: $100 par or stated value -- 4.20% to 7.00% - - - $25 par or stated value -- 5.20% to 5.83% - - - ------------------------------------------------------------------------------------------------- Total cumulative preferred stock of subsidiaries - - - (annual dividend requirement -- $18 million) ------------------------------------------------------------------------------------------------- Common Stockholders' Equity: Common stock, par value $5 per share -- Authorized - 1 billion shares Issued: 701 million shares Treasury: 2 million shares Par value - - 5 Paid-in capital 3,038 20,479 - Treasury, at cost - - - Retained earnings 1,273 2,288 - Accumulated other comprehensive income - 508 - ------------------------------------------------------------------------------------------------- Total common stockholders' equity 4,311 23,275 5 ------------------------------------------------------------------------------------------------- Total Capitalization $4,311 $23,275 $ 5 ================================================================================================= 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-12c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Balance, December 31, 2001 $4,516,820 $(3,467,657) $ 4,516,642 $ 1,220,102 ADD: Net Income After Preferred Dividends 1,317,795 (1,353,379) 1,318,698 461,355 ADD (DEDUCT): Dividends on Common Stock of Southern Company (957,585) 161 (957,746) - Dividends on Common Stock of Subsidiary Companies - 1,205,472 - (431,000) Adjustment for loss on issuance of treasury stock (6,104) - (6,104) - Other Adjustments to Retained Earnings 3,449 3,105 3,449 137 ----------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2002 $4,874,375 $(3,612,298) $ 4,874,939 $ 1,250,594 ======================================================================================================================= Southern Southern Southern Holdings Mgt Dev LINC Balance, December 31, 2001 $ 14,233 $ (41,520) $ (77,597) ADD: Net Income After Preferred Dividends 35,543 288 8,767 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - - Dividends on Common Stock of Subsidiary Companies (67,990) (6,043) - Adjustment for loss on issuance of treasury stock - - - Other Adjustments to Retained Earnings - (3,242) - ----------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2002 $ (18,214) $ (50,517) $ (68,830) ======================================================================================================================= 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-13a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah Balance, December 31, 2001 $ 1,870,791 $160,862 $186,407 $ 109,869 ADD: Net Income After Preferred Dividends 617,629 67,036 73,013 22,880 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - - - Dividends on Common Stock of Subsidiary Companies (542,900) (65,500) (63,500) (22,700) Adjustment for loss on issuance of treasury stock - - - - Other Adjustments to Retained Earnings - - - - ------------------------------------------------------------------------------------------------------------------------ Balance, December 31, 2002 $ 1,945,520 $162,398 $195,920 $ 110,049 ======================================================================================================================== Deferred Southern Southern Cash Powercall Telecom Gas Trust Balance, December 31, 2001 $ (14,546) $ 3,727 $ - $ 50 ADD: Net Income After Preferred Dividends 25 (27) 4,028 27 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - - - Dividends on Common Stock of Subsidiary Companies - - - - Adjustment for loss on issuance of treasury stock - - - - Other Adjustments to Retained Earnings - - - - ------------------------------------------------------------------------------------------------------------------------ Balance, December 31, 2002 $ (14,521) $ 3,700 $ 4,028 $ 77 ======================================================================================================================== 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-13b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Southern SEGCO Power Balance, December 31, 2001 $ 24,620 $ 8,207 ADD: Net Income After Preferred Dividends 6,711 54,270 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - Dividends on Common Stock of Subsidiary Companies (5,839) - Adjustment for loss on issuance of treasury stock - - Other Adjustments to Retained Earnings - - ------------------------------------------------------------------------------------------- Balance, December 31, 2002 $ 25,492 $62,477 =========================================================================================== Deferred Change in Stock Control Trust Trust Balance, December 31, 2001 $1,118 $ 1,512 ADD: Net Income After Preferred Dividends 155 776 ADD (DEDUCT): Dividends on Common Stock of Southern Company - - Dividends on Common Stock of Subsidiary Companies - - Adjustment for loss on issuance of treasury stock - - Other Adjustments to Retained Earnings - - ------------------------------------------------------------------------------------------- Balance, December 31, 2002 $1,273 $ 2,288 =========================================================================================== 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-13c
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF PAID IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Georgia Balance, December 31, 2001 $ 14,381 $ (5,637,936) $13,932 $ 1,850,775 $ 2,182,597 ADD (DEDUCT): Proceeds from issuance of common 321,812 - 321,812 - - stock over the par value thereof Contributions & adjustments to - (630,881) - 49,788 173,483 capital for the twelve month period Capital distribution to SOUTHERN - 200,000 - - (200,000) for the twelve month period Other 1,477 (1,840) 1,020 - - ---------------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2002 $ 337,670 $ (6,070,657) $ 336,764 $ 1,900,563 $ 2,156,080 ============================================================================================================================ Southern Southern Southern Southern Southern Funding Power Holdings Mgt Dev LINC Balance, December 31, 2001 $ 10 $ 452,097 $ 265,842 $ 66,588 $ 157,735 ADD (DEDUCT): Proceeds from issuance of common - - - - - stock over the par value thereof Contributions & adjustments to - 279,133 20,572 1,614 500 capital for the twelve month period Capital distribution to SOUTHERN - - - - - for the twelve month period Other - - - 2,298 - ---------------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2002 $ 10 $ 731,230 $ 286,414 $ 70,500 $ 158,235 ============================================================================================================================ 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-14a
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENT OF PAID IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Southern Gulf Mississippi Savannah SEGCO SCS Nuclear Balance, December 31, 2001 $ 305,972 $ 267,582 $12,826 $ 32,940 $ 150 $ 7,107 ADD (DEDUCT): Proceeds from issuance of common - - - - - - stock over the par value thereof Contributions & adjustments to 43,809 18,025 3,950 560 - 9,967 capital for the twelve month period Capital distribution to SOUTHERN - - - - - - for the twelve month period Other - (1) - - - - -------------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2002 $ 349,781 $ 285,606 $16,776 $ 33,500 $ 150 $ 17,074 ========================================================================================================================== Deferred Deferred Change In Southern Southern Cash Stock Control Powercall Telecom Gas Trust Trust Trust Balance, December 31, 2001 $15,994 $ 1,572 $ - $ 783 $ - $ 17,815 ADD (DEDUCT): Proceeds from issuance of common - - - - - - stock over the par value thereof Contributions & adjustments to - 78 23,700 - 3,038 2,664 capital for the twelve month period Capital distribution to SOUTHERN - - - - - - for the twelve month period Other - - - - - - -------------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2002 $15,994 $ 1,650 $23,700 $ 783 $3,038 $ 20,479 ========================================================================================================================== 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-14b
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Consolidated Net Income $1,317,795 $ (1,353,378) ---------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax of $(18,048) (30,989) - Change in fair value of marketable securities, net of tax of $97 63 - Changes in fair value of qualifying hedges, net of tax of $(44,492) (58,659) - Less: Reclassification adjustment for amounts included in 566 - net income, net of tax of $355 ---------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income (89,019) - ---------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $1,228,776 $ (1,353,378) ================================================================================================================ SCS Consolidated Net Income $ - ---------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax (14,989) Change in fair value of marketable securities, net of tax - Changes in fair value of qualifying hedges, net of tax - Less: Reclassification adjustment for amounts included in - net income, net of tax ---------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income (14,989) ---------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ (14,989) ================================================================================================================ THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) All Other Subsidiaries 1 Southern Consolidated Net Income $ 7,151 $ 1,318,698 ------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax of $(18,048) - - Change in fair value of marketable securities, net of tax of $97 - - Changes in fair value of qualifying hedges, net of tax of $(44,492) - (4,164) Less: Reclassification adjustment for amounts included in - - net income, net of tax of $355 ------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income - (4,164) ------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ 7,151 $ 1,314,534 ============================================================================================================= Southern Southern Nuclear Power Consolidated Net Income $ - $ 54,270 ------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax (875) - Change in fair value of marketable securities, net of tax - - Changes in fair value of qualifying hedges, net of tax - (54,360) Less: Reclassification adjustment for amounts included in - 568 net income, net of tax ------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income (875) (53,792) ------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ (875) $ 478 ============================================================================================================= THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Alabama Georgia Consolidated Net Income $ 461,355 $ 617,629 ------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax of $(18,048) (4,172) (7,693) Change in fair value of marketable securities, net of tax of $97 - 153 Changes in fair value of qualifying hedges, net of tax of $(44,492) (9,245) (3,708) Less: Reclassification adjustment for amounts included in - (2) net income, net of tax of $355 ------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income (13,417) (11,250) ------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ 447,938 $ 606,379 ============================================================================================================= Southern Southern Holdings LINC Consolidated Net Income $ 35,543 $ 8,767 ------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax (4) (14) Change in fair value of marketable securities, net of tax - - Changes in fair value of qualifying hedges, net of tax - - Less: Reclassification adjustment for amounts included in - - net income, net of tax ------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income (4) (14) ------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ 35,535 $ 8,739 ============================================================================================================= THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Gulf Mississippi Savannah Consolidated Net Income $ 67,036 $ 73,013 $ 22,880 ------------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax of $(18,048) (734) (1,264) (1,244) Change in fair value of marketable securities, net of tax of $97 - - - Changes in fair value of qualifying hedges, net of tax of $(44,492) - - - Less: Reclassification adjustment for amounts included in - - - net income, net of tax of $355 ------------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income (734) (1,264) (1,244) ------------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ 66,302 $ 71,749 $ 21,636 =================================================================================================================== Deferred Change In Southern Cash Control Gas Trust Trust Consolidated Net Income $ 4,028 $ 27 $ 776 ------------------------------------------------------------------------------------------------------------------- Other comprehensive income Change in additional minimum pension liability, net of tax - - - Change in fair value of marketable securities, net of tax - 5 (95) Changes in fair value of qualifying hedges, net of tax 12,818 - - Less: Reclassification adjustment for amounts included in - - - net income, net of tax ------------------------------------------------------------------------------------------------------------------- Total Other Comprehensive Income 12,818 5 (95) ------------------------------------------------------------------------------------------------------------------- Consolidated Comprehensive Income $ 29,664 $ 37 $ 586 =================================================================================================================== THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Intercompany Eliminations and Transfers Consolidated Add (Deduct) Southern Alabama Balance at beginning of period $ 7,149 $ - $ - $ - Change in current period (89,019) - (4,164) (13,417) ------------------------------------------------------------------------------------------------------------------ Balance at end of period $ (81,870) $ - (4,164) $ (13,417) =================================================================================================================== Southern Southern Southern SCS Nuclear Power Holdings Balance at beginning of period $ - $ - $ 6,689 $ - Change in current period (14,989) (875) (53,792) (4) ------------------------------------------------------------------------------------------------------------------- Balance at end of period $ (14,989) $ (875) (47,103) $ (4) =================================================================================================================== THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Stated in Thousands of Dollars) Georgia Gulf Mississippi Savannah Balance at beginning of period $ (153) $ - $ - $ - Change in current period (11,250) (734) (1,264) (1,244) ----------------------------------------------------------------------------------------------------- Balance at end of period $(11,403) $ (734) $ (1,264) $ (1,244) ===================================================================================================== Deferred Change In Southern Southern Cash Control LINC Gas Trust Trust Balance at beginning of period $ - $ - $ 10 $ 603 Change in current period (14) 12,818 5 (95) ----------------------------------------------------------------------------------------------------- Balance at end of period $ (14) $ 12,818 $ 15 $ 508 ===================================================================================================== 1 Consolidating Statement of Comprehensive Income breaks out only consolidated subsidiaries which had other comprehensive income. See Consolidating Statement of Income for details of other subsidiaries net income. 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-15 Notes to Financial Statements at December 31, 2002 The notes to the financial statements included in SOUTHERN's Annual Report on Form 10-K for the year ended December 31, 2002 are herein incorporated by reference as part of exhibit numbers A-1 through A-7 inclusive and are an integral part of the financial statements. A-16
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------------- Total Operating Revenues $ 3,710,533 $ - $ 3,710,533 $ - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 969,521 - 969,521 Purchased power from non-affiliates 90,998 - 90,998 Purchase power from affiliates 158,121 - 158,121 Other 574,979 - 574,979 Maintenance 279,406 - 279,406 Depreciation and amortization 398,428 - 398,428 Taxes other than income taxes 216,919 - 216,919 ----------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 2,688,372 - 2,688,372 - ----------------------------------------------------------------------------------------------------------------------------------- Operating Income 1,022,161 1,022,161 Other Income (Expense): Allowance for equity funds used during construction 11,168 - 11,168 Interest income 13,991 (28,546) 15,965 6,164 Equity in earnings of unconcolidated subsidiaries 3,399 - 3,399 (A) Interest expense, net of amounts capitalized (225,706) (26,572) (199,134) Distributions on preferred securities of subsidiary (24,599) (1,974) (49,197) 6,164 Other income (expense), net (32,184) - (32,184) (B) ----------------------------------------------------------------------------------------------------------------------------------- Total other income and (expense) (253,931) (57,092) (249,983) 12,328 ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 768,230 (57,092) 772,178 12,328 ----------------------------------------------------------------------------------------------------------------------------------- Income taxes 292,436 - 292,436 - ----------------------------------------------------------------------------------------------------------------------------------- Net Income 475,794 (57,092) 479,742 12,328 ----------------------------------------------------------------------------------------------------------------------------------- Dividends on Preferred Stock 14,439 - 14,439 - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 461,355 $ (57,092) $ 465,303 $ 12,328 ===================================================================================================================================
A-17a
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA ALABAMA TRUST II TRUST III TRUST IV TRUST V --------------------------------------------------------------------------------------------------------------------------------- Total Operating Revenues $ - $ - $ - $ - --------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: - - - - Operation -- - - - - Fuel - - - - Purchased power from non-affiliates - - - - Purchase power from affiliates - - - - Other - - - - Maintenance - - - - Depreciation and amortization - - - - Taxes other than income taxes - - - - --------------------------------------------------------------------------------------------------------------------------------- Total operating expenses - - - - ----------------------------------------------------------------------------------------------------------------------------------- Operating Income Other Income (Expense): Allowance for equity funds used during construction - - - - Interest income 13,717 2,753 1,188 2,750 Equity in earnings of unconcolidated subsidiaries - - - - Interest expense, net of amounts capitalized - - - - Distributions on preferred securities of subsidiary 13,717 2,753 1,188 2,750 Other income (expense), net ----------------------------------------------------------------------------------------------------------------------------------- Total other income and (expense) 27,434 5,506 2,376 5,500 ---------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 27,434 5,506 2,376 5,500 ---------------------------------------------------------------------------------------------------------------------------------- Income taxes - - - - ---------------------------------------------------------------------------------------------------------------------------------- Net Income 27,434 5,506 2,376 5,500 ---------------------------------------------------------------------------------------------------------------------------------- Dividends on Preferred Stock - - - - ---------------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 27,434 $ 5,506 $ 2,376 $ 5,500 ==================================================================================================================================
A-17b
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 475,794 $ - $ 475,794 $ - Adjustments to reconcile consolidated net income to net - cash provided by operating activities - - Depreciation and amortization 465,325 - 465,325 - Deferred income taxes and investment tax credits, net 48,828 - 48,828 - Pension, postretirement, and other employee benefits (34,464) - (34,464) - Other, net (50,863) - (50,863) - Change in current assets and liabilities - - - Receivables, net (46,458) - (46,458) - Fossil fuel stock 25,535 - 25,535 - Materials and supplies 3,728 - 3,728 - Other current assets 6,889 - 6,889 - Accounts payable 10,587 - 10,587 - Taxes accrued (40,922) - (40,922) - Other current liabilities 86,850 - 86,850 - ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 950,829 - 950,829 - ----------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (634,559) - (634,559) - Cost of removal net of salvage (32,105) - (32,105) - Other 2,054 (59,193) 12,790 100,000 ----------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (664,610) (59,193) (653,874) 100,000 ----------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net 26,994 - 26,994 - Proceeds-- Senior notes 975,000 (300,000) 1,275,000 - Preferred securities 300,000 (9,279) - - Capital contributions from parent company 49,788 - 49,788 - Redemptions-- First mortgage bonds (350,000) - (350,000) - Senior notes (415,602) 357,736 (773,338) - Other long-term debt (883) - (883) - Preferred securities (347,000) 10,736 (100,000) (206,186) Preferred stock (70,000) - (70,000) - Payment of preferred stock dividends (14,176) - (14,176) - Payment of common stock dividends (431,000) - (431,000) - Other-- (22,411) - (22,411) - ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities (299,290) 59,193 (310,026) (100,000) ----------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents (13,071) - (13,071) - ----------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at Beginning of Period 35,756 - 35,756 - ----------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 22,685 $ - $ 22,685 $ - ===================================================================================================================================
A-18a
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA ALABAMA TRUST II TRUST III TRUST IV TRUST V ----------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ - $ - $ - $ - Adjustments to reconcile consolidated net income to net - - - - cash provided by operating activities - - - - - Depreciation and amortization - - - - Deferred income taxes and investment tax credits, net - - - - Pension, postretirement, and other employee benefits - - - - Other, net - - - - Change in current assets and liabilities - - - - - Receivables, net - - - - Fossil fuel stock - - - - Materials and supplies - - - - Other current assets - - - - Accounts payable - - - - Taxes accrued - - - - Other current liabilities - - - - -------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities - - - - --------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - - - - Cost of removal net of salvage - - - - Other 206,186 51,550 (103,093) (206,186) --------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities 206,186 51,550 (103,093) (206,186) --------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable, net - - - - Proceeds-- Senior notes - - - - Preferred securities - 103,093 206,186 Capital contributions from parent company - - - - Redemptions-- First mortgage bonds - - - - Senior notes - - - - Other long-term debt - - - - Preferred securities (51,550) - - Preferred stock - - - - Payment of preferred stock dividends - - - - Payment of common stock dividends - - - - Other-- - - - - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided from (used for) financing activities (206,186) (51,550) 103,093 206,186 ---------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents - - - - ---------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at Beginning of Period - - - - ---------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ - $ - $ - $ - ==================================================================================================================================
A-18b
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 22,685 $ - $ 22,685 $ - Receivables - - Customer accounts receivable 240,052 - 240,052 - Unbilled revenues 89,336 - 89,336 - Other accounts and notes receivable 47,535 - 47,535 - Affiliated companies 74,099 - 74,099 - Accumulated provision for uncollectible accts (4,827) - (4,827) - Fossil fuel stock, at average cost 73,742 - 73,742 - Materials and supplies, at average cost 187,596 - 187,596 - Other 110,035 - 110,035 - ----------------------------------------------------------------------------------------------------------------------------- Total current assets 840,253 - 840,253 - ----------------------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment 8,544,494 - 8,544,494 - ----------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 354,327 (309,279) 363,606 (C) - ----------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 327,276 - 327,276 - Prepaid pension costs 389,793 - 389,793 - Unamortized debt issuance expense 4,361 - 4,361 - Unamortized premium on reacquired debt 103,819 - 103,819 - Department of Energy assessments 17,144 - 17,144 - Other 104,539 - 104,539 - ----------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 946,932 - 946,932 - ----------------------------------------------------------------------------------------------------------------------------- Total Assets $ 10,686,006 $ (309,279) $10,695,285 $ - =============================================================================================================================
A-19a
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA ALABAMA TRUST II TRUST III TRUST IV TRUST V ---------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $- $ - $ - Receivables - - - - - Customer accounts receivable - - - - Unbilled revenues - - - - Other accounts and notes receivable - - - - Affiliated companies - - - - Accumulated provision for uncollectible accts - - - - Fossil fuel stock, at average cost - - - - Materials and supplies, at average cost - - - - Other - - - - -------------------------------------------------------------------------------------------------------------------- Total current assets - - - - -------------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment - - - - -------------------------------------------------------------------------------------------------------------------- Other Property and Investments - - 100,000 200,000 -------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - Prepaid pension costs - - - - Unamortized debt issuance expense - - - - Unamortized premium on reacquired debt - - - - Department of Energy assessments - - - - Other - - - - -------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets - - - - -------------------------------------------------------------------------------------------------------------------- Total Assets $ - $- $ 100,000 $ 200,000 ====================================================================================================================
A-19b
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ 1,117,945 $ - $ 1,117,945 $ - Notes payable 36,991 - 36,991 - Accounts payable - Affiliated 109,790 - 109,790 - Other 150,195 - 150,195 - Customer deposits 44,410 - 44,410 - Taxes accrued 100,999 - 100,999 - Interest accrued 36,344 - 36,344 - Vacation pay accrued 33,901 - 33,901 - Other 114,870 - 114,870 - ----------------------------------------------------------------------------------------------------------------------------- Total current liabilities 1,745,445 - 1,745,445 - ----------------------------------------------------------------------------------------------------------------------------- Long-term debt 2,851,562 (300,000) 3,151,562 - ----------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 1,436,559 - 1,436,559 - Deferred credits related to income taxes 177,205 - 177,205 - Accumulated deferred investment tax credits 227,270 - 227,270 - Employee benefits provisions 141,149 - 141,149 - Deferred capacity revenues 33,924 - 33,924 - Other 147,640 - 147,640 - ----------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 2,163,747 - 2,163,747 - ----------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 300,000 (9,279) 9,279 - Cumulative preferred stock 247,512 - 247,512 - Common stock equity 3,377,740 - 3,377,740 - ----------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 10,686,006 $ (309,279) $ 10,695,285 $ - -----------------------------------------------------------------------------------------------------------------------------
A-20a
ALABAMA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) ALABAMA ALABAMA ALABAMA ALABAMA TRUST II TRUST III TRUST IV TRUST V ------------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $- $ - $ - $ - Notes payable Accounts payable - Affiliated - - - - Other - - - - Customer deposits - - - - Taxes accrued - - - - Interest accrued - - - - Vacation pay accrued - - - - Other - - - - ------------------------------------------------------------------------------------------------------------------------------- Total current liabilities - - - - ------------------------------------------------------------------------------------------------------------------------------- Long-term debt - - - - ------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - - Deferred credits related to income taxes - - - - Accumulated deferred investment tax credits - - - - Employee benefits provisions - - - - Deferred capacity revenues - - - - Other - - - - ------------------------------------------------------------------------------------------------------------------------------ Total deferred credits and other liabilities - - - - ------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities - - 100,000 200,000 Cumulative preferred stock - - - - Common stock equity - - - - ------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $- $ - $ 100,000 $ 200,000 -------------------------------------------------------------------------------------------------------------------------------
A-20b Notes to ALABAMA's Consolidated Financial Statements (A) Represents equity in earnings of SEGCO, a subsidiary in which ALABAMA has 50% ownership, which is accounted for on the equity basis. See pages A-2 through A-15 for SEGCO's financial statements consolidated for SOUTHERN. (B) Includes $206,563 in losses of Alabama Property Company, a non-consolidated subsidiary, which is accounted for on the equity basis. See pages A-23 through A-24 for Alabama Property Company's financial statements. (C) Represents ALABAMA's investment in SEGCO and Alabama Property Company. A-21 ALABAMA PROPERTY COMPANY STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (Unaudited; Not Consolidated in Parent, ALABAMA) REVENUES: Sales of recreational lots $ 15,573 Rentals 151,595 Interest on securities owned 109,475 --------- Total Revenues 276,643 COSTS AND EXPENSES: Operating expenses 373,048 Taxes other than income taxes 162,472 Income taxes (52,314) ---------- Total costs and expenses 483,206 --------- NET INCOME $ (206,563) =========== ALABAMA PROPERTY COMPANY STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2002 (Unaudited; Not Consolidated in Parent, ALABAMA) RETAINED EARNINGS AT DECEMBER 31, 2001 $9,957,033 Net Income (206,563) ------------ RETAINED EARNINGS AT DECEMBER 31, 2002 $9,750,470 ========== A-22 ALABAMA PROPERTY COMPANY BALANCE SHEET AT DECEMBER 31, 2002 (Unaudited; Not Consolidated in Parent, ALABAMA) ASSETS CURRENT ASSETS: Cash $ 346,487 Temporary cash investments 6,000,000 Accounts receivable Other 2,500 Associated Companies 43,753 ----------- Total current assets 6,392,740 PROPERTY AND MINERAL RIGHTS HELD FOR FUTURE DEVELOPMENT 3,915,278 ----------- Total Assets $10,308,018 =========== LIABILITIES AND CAPITALIZATION CURRENT LIABILITIES: Accounts payable to associated companies $49,641 Accrued income taxes 44,040 ----------- Total current liabilities 93,681 ----------- SHAREHOLDER'S INVESTMENT: Common stock, $150 par value; 1,000 shares authorized, issued and outstanding 150,000 Additional paid-in capital 313,867 Retained earnings 9,750,470 ----------- Total shareholder's investment 10,214,337 ----------- Total liabilities and capitalization $10,308,018 =========== A-23
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT ------------------------------------------------------------------------------------------------------------ TOTAL OPERATING REVENUES $ 4,822,460 $ (1,187) $ 4,822,460 $ 1,187 ------------------------------------------------------------------------------------------------------------ OPERATING EXPENSES: Operation -- Fuel 1,002,703 1,002,703- Purchased power from non-affiliates 264,814 264,814- Purchased power from affiliates 419,839 419,839- Other 848,436 (1,187) 849,623 Maintenance 476,962 476,962- Depreciation and amortization 403,507 403,507- Taxes other than income taxes 201,857 201,513- 344 ------------------------------------------------------------------------------------------------------------ Total operating expenses 3,618,118 (1,187) 3,618,961 344 ------------------------------------------------------------------------------------------------------------ Operating Income 1,204,342 1,203,499- 843 Other Income and (Expense): Allowance for equity funds used during construction 7,622 - 7,622 - Interest income 3,857 (65,331) 3,857 843 Equity in earnings of unconsolidated subsidiaries 3,714 - 3,714 (A) - Interest expense, net of amounts capitalized (168,391) 65,331 (233,380) (342) Distributions on preferred securities of subsidiary (62,553) - - - Other income (expense), net (12,973) - (12,622) (351) ------------------------------------------------------------------------------------------------------------ Total other income and (expense) (228,724) - (230,809) 150 Earnings Before Income Taxes 975,618 - 972,690 993 Income taxes 357,319 356,935- 384 Net Income 618,299 - 615,755 609 Dividends on Preferred Stock 670 - 670 - ------------------------------------------------------------------------------------------------------------ NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 617,629 $ - $ 615,085 $ 609 ============================================================================================================ A-24a GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV TRUST V TRUST VI -------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ - $ - - $ - $ - - $ - - - $ - OPERATING EXPENSES: Operation -- Fuel - - - - - - Purchased power from non-affiliates - - - - - - Purchased power from affiliates - - - - - - Other - - - - - - Maintenance - - - - - - Depreciation and amortization - - - - - - Taxes other than income taxes - - - - - -------------------------------------------------------------------------------------------------------------------------- Total operating expenses - - - - - - -------------------------------------------------------------------------------------------------------------------------- Operating Income Other Income and (Expense): Allowance for equity funds used during construction - - - - - - Interest income 9,937 12,797 8,358 14,124 16,968 2,304 Equity in earnings of unconsolidated subsidiaries - - - - - - Interest expense, net of amounts capitalized - - - - - - Distributions on preferred securities of subsidiary (9,639) (12,413) (8,108) (13,700) (16,459) (2,234) Other income (expense), net - - - - - -------------------------------------------------------------------------------------------------------------------------- Total other income and (expense) 298 384 250 424 509 70 -------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 298 384 250 424 509 70 Income taxes - - - - - Net Income 298 384 250 424 509 70 Dividends on Preferred Stock - - - - - - -------------------------------------------------------------------------------------------------------------------------- NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 298 $ 384 $ 250 $ 424 $ 509 $ 70 ==========================================================================================================================
A-24b
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT ---------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 618,299 - $ 615,756 $ 609 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 411,435 - 411,435 - Deferred income taxes and investment tax credits, net 65,550 - 65,482 68 Pension, postretirement, and other employee benefits (76,700) - (76,700) - Other, net (38,353) - (38,353) - Change in current assets and liabilities - Receivables, net 68,527 2,543 67,918 - Fossil fuel stock 82,711 - 82,711 - Materials and supplies 15,874 - 15,874 - Other current assets (18,880) - (18,880) - Accounts payable 64,902 (2,543) 67,445 - Taxes accrued (6,540) - (7,166) 626 Other current liabilities 16,166 - 16,166 - ---------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 1,202,991 - 1,201,688 1,303 ---------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (883,968) - (883,968) - Cost of removal net of salvage (60,912) - (60,912) - Sales of property 387,212 - 387,212 - Other 27,169 - 25,428 1,741 ---------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (530,499) - (532,240) 1,741 ---------------------------------------------------------------------------------------------------------------------- Financing Activities: (Decrease) increase in notes payable, net (389,860) - (389,860) - Proceeds-- Senior notes 500,000 - 502,189 (2,189) Preferred securities 740,000 - 740,000 - Capital contributions from parent company 173,483 - 173,483 - Retirements-- First mortgage bonds (1,860) - (1,860) - Pollution control bonds (7,800) - (7,800) - Senior notes (330,000) - (330,000) - Preferred securities (589,250) - (589,250) - Capital distributions to parent company (200,000) - (200,000) - Payment of preferred stock dividends (721) - (721) - Payment of common stock dividends (542,900) - (542,900) - Other-- (29,971) - (29,116) (855) ---------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities (678,879) - (675,835) (3,044) ---------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents (6,387) - (6,387) - Cash and Cash Equivalents at Beginning of Year 23,260 - 23,260 - ---------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ 16,873 $ - $ 16,873 $ - ======================================================================================================================
A-25a
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV TRUST V TRUST VI ------------------------------------------------------------------------------------------------------------------------------ Operating Activities: Net Income $ 298 $ 384 $ 251 $ 423 $ 509 $ 69 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization - - - - - - Deferred income taxes and investment tax credits, net - - - - - - Pension, postretirement, and other employee benefits - - - - - - Other, net - - - - - - Change in current assets and liabilities - Receivables, net (298) (384) (251) (423) (509) (69) Fossil fuel stock - - - - - - Materials and supplies - - - - - - Other current assets - - - - - - Accounts payable - - - - - - Taxes accrued - - - - - - Other current liabilities - - - - - - --------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities - - - - - - --------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - - - - - - Cost of removal net of salvage - - - - - - Sales of property - - - - - - Other - - - - - - --------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities - - - - - - --------------------------------------------------------------------------------------------------------------------------------- Financing Activities: (Decrease) increase in notes payable, net - - - - - - Proceeds-- Senior notes - - - - - - Preferred securities - - - - - - Capital contributions from parent company - - - - - - Retirements-- First mortgage bonds - - - - - - Pollution control bonds - - - - - - Senior notes - - - - - - Preferred securities - - - - - - Capital distributions to parent company - - - - - - Payment of preferred stock dividends - - - - - - Payment of common stock dividends - - - - - - Other-- - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities - - - - - - --------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents - - - - - - Cash and Cash Equivalents at Beginning of Year - - - - - - --------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Year $ - $ - $ - $ - $ - $ - =================================================================================================================================
A-25b
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT ------------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 16,873 $ - $ 16,873 $ - Receivables - Customer accounts receivable 302,995 - 302,995 - Unbilled revenues 104,454 - 104,454 - Under recovered regulatory clause revenues 117,580 - 117,580 - Other accounts and notes receivable 122,585 (10,076) 122,585 - Affiliated companies 40,501 - 40,501 - Accumulated provision for uncollectible accts (5,825) - (5,825) - Fossil fuel stock, at average cost 120,048 - 120,048 - Materials and supplies, at average cost 263,364 - 263,364 - Other 96,922 - 96,922 - ------------------------------------------------------------------------------------------------------------------------------- Total current assets 1,179,497 (10,076) 1,179,497 - ------------------------------------------------------------------------------------------------------------------------------- Property, plant and equipment 10,676,301 - 10,658,759 17,542 ------------------------------------------------------------------------------------------------------------------------------- Other property and investments 411,649 (1,025,078) 467,654 (B) - ------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 524,510 - 523,900 610 Prepaid pension costs 341,944 - 341,944 - Unamortized debt issuance expense 67,362 - 67,362 - Unamortized premiumon reacquired debt 178,590 - 178,590 - Other 162,686 - 162,686 - ------------------------------------------------------------------------------------------------------------------------------- Ttoal deferred charges and other assets 1,275,092 - 1,274,482 610 ------------------------------------------------------------------------------------------------------------------------------- Total Assets $ 13,542,539 $ (1,035,154) $ 13,580,392 $ 18,152 =============================================================================================================================== A-26a
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV TRUST V TRUST VI -------------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ - $ - $ - $ - $ - Receivables - Customer accounts receivable - - - - - - Unbilled revenues - - - - - - Under recovered regulatory clause revenues - - - - - - Other accounts and notes receivable 3,128 2,423 2,316 1,631 509 69 Affiliated companies - - - - - - Accumulated provision for uncollectible accts - - - - - - Fossil fuel stock, at average cost - - - - - - Materials and supplies, at average cost - - - - - - Other - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Total current assets 3,128 2,423 2,316 1,631 509 69 -------------------------------------------------------------------------------------------------------------------------------- Property, plant and equipment - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Other property and investments - - - 206,186 453,608 309,279 -------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes - - - - - - Prepaid pension costs - - - - - - Unamortized debt issuance expense - - - - - - Unamortized premiumon reacquired debt - - - - - - Other - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Ttoal deferred charges and other assets - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Total Assets $ 3,128 $ 2,423 $ 2,316 $ 207,817 $ 454,117 $ 309,348 ================================================================================================================================
A-26b
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA Consolidated Eliminations CORPORATE PIEDMONT ----------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ 322,125 $ - $ 322,125 $ - Notes payable to banks 357,677 - 357,677 Accounts payable - Affiliated 135,260 - 135,260 - Other 445,220 - 445,220 - Customer deposits 94,859 - 94,859 - Taxes accrued 154,514 - 153,217 1,297 Interest accrued 59,608 (10,076) 69,685 - Vacation pay accrued 42,442 - 42,442 - Other 112,131 - 112,131 - ----------------------------------------------------------------------------------------------------------------------------- Totral current liabilities 1,723,836 (10,076) 1,732,616 1,297 ----------------------------------------------------------------------------------------------------------------------------- Long-Term Debt 3,109,619 (980,461) 4,078,692 11,388 ----------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 2,176,438 - 2,176,438 - Deferred credits related to income taxes 208,410 - 208,410 - Accumulated deferred investment tax credits 324,994 - 324,994 - Employee benefits provisions 236,486 - 236,486 - Other 373,740 - 373,740 - ----------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 3,320,068 - 3,320,068 - ----------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 940,000 - - - ----------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock 14,569 - 14,569 - ----------------------------------------------------------------------------------------------------------------------------- Common Stockholder's Equity 4,434,447 (44,617) 4,434,447 5,467 ----------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 13,542,539 $ (1,035,154) $ 13,580,392 $ 18,152 =============================================================================================================================
A-27a
GEORGIA POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA GEORGIA TRUST I TRUST II TRUST III TRUST IV TRUST V TRUST VI ----------------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ - $ - $ - $ - $ - $ - Notes payable to banks Accounts payable - Affiliated - - - - - - Other - - - - - - Customer deposits - - - - - - Taxes accrued - - - - - - Interest accrued - - - - - - Vacation pay accrued - - - - - - Other - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Totral current liabilities - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Long-Term Debt - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - - - - Deferred credits related to income taxes - - - - - - Accumulated deferred investment tax credits - - - - - - Employee benefits provisions - - - - - - Other - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities - - - 200,000 440,000 300,000 ---------------------------------------------------------------------------------------------------------------------------------- Cumulative Preferred Stock - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- Common Stockholder's Equity 3,128 2,423 2,316 7,817 14,117 9,348 ---------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 3,128 $ 2,423 $ 2,316 $ 207,817 $ 454,117 $ 309,348 ==================================================================================================================================
A-27b Notes to GEORGIA's Consolidated Financial Statements (A) Includes $3,355,500 equity in earnings for SEGCO, a subsidiary in which GEORGIA has 50% ownership. SEGCO is accounted for on the equity basis. See pages A-2 through A-15 for SEGCO's financial statements consolidated for SOUTHERN. (B) Includes $29,660,000 of investments in SEGCO. A-28
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I -------------------------------------------------------------------------------------------------------------------------- Total operating revenues $ 820,467 $ - $ 820,467 $ - -------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Operation -- Fuel 273,860 - 273,860 - Purchased power from non-affiliates 23,797 - 23,797 - Purchased power from affiliates 39,201 - 39,201 - Other 124,654 - 124,654 - Maintenance 75,421 - 75,421 - Depreciation and amortization 77,014 - 77,014 - Taxes other than income taxes 61,033 - 61,033 - -------------------------------------------------------------------------------------------------------------------------- Total operating expenses 674,980 - 674,980 - -------------------------------------------------------------------------------------------------------------------------- Operating income 145,487 145,487 Other Income (Expense): Allowance for equity funds used during construction 2,980 - 2,980 - Interest income 572 (8,787) 572 3,144 Interest expense, net of amounts capitalized (31,452) (31,452) Distributions on preferred securities of subsidiary (8,524) 8,525 (8,524) (3,050) Other income (expense), net (4,666) - (4,666) - -------------------------------------------------------------------------------------------------------------------------- Total other income and (expense) (41,090) (262) (41,090) 94 -------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 104,397 (262) 104,397 94 Income taxes 37,144 - 37,144 - -------------------------------------------------------------------------------------------------------------------------- Net Income 67,253 (262) 67,253 94 Dividends on Preferred Stock 217 - 217 - -------------------------------------------------------------------------------------------------------------------------- Net Income After Dividends on Preferred Stock $ 67,036 $ (262) $ 67,036 $ 94 ==========================================================================================================================
A-29a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GULF GULF GULF TRUST II TRUST III TRUST IV ------------------------------------------------------------------------------------------------- Total operating revenues $ - $ - $ - ------------------------------------------------------------------------------------------------- Operating Expenses: Operation -- Fuel - - - Purchased power from non-affiliates - - - Purchased power from affiliates - - - Other - - - Maintenance - - - Depreciation and amortization - - - Taxes other than income taxes - - - ------------------------------------------------------------------------------------------------- Total operating expenses - - - ------------------------------------------------------------------------------------------------- Operating income Other Income (Expense): Allowance for equity funds used during construction - - - Interest income 3,247 2,281 115 Interest expense, net of amounts capitalized Distributions on preferred securities of subsidiary (3,150) (2,213) (112) Other income (expense), net - - - ------------------------------------------------------------------------------------------------- Total other income and (expense) 97 68 3 ------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 97 68 3 Income taxes - - - ------------------------------------------------------------------------------------------------- Net Income 97 68 3 Dividends on Preferred Stock - - - ------------------------------------------------------------------------------------------------- Net Income After Dividends on Preferred Stock $ 97 $ 68 $ 3 =================================================================================================
A-29b
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I ----------------------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 67,253 $ - $66,991 $ 94 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 82,230 - 82,230 - Deferred income taxes 9,619 - 9,619 - Pension, postretirement, and other employee benefits (8,170) - (8,170) - Other, net 5,756 - 5,756 - Change in current assets and liabilities - Receivables, net (28,173) 262 (28,173) (94) Fossil fuel stock 10,464 - 10,464 - Materials and supplies (5,982) - (5,982) - Other current assets (14,178) - (14,178) - Accounts payable 19,168 (262) 19,430 - Taxes accrued 1,117 - 1,117 - Other current liabilities (4,251) - (4,251) - ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 134,853 - 134,853 - ----------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Gross property additions (106,624) - (106,624) - Cost of removal net of salvage (7,978) - (7,978) - Other (9,745) - (9,745) - ----------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (124,347) - (124,347) - ----------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Increase (decrease) in notes payable, net (58,831) - (58,831) - Proceeds-- Pollution control bonds 55,000 - 55,000 - Senior notes 45,000 - 45,000 - Preferred securities 40,000 - 40,000 - Capital contributions from parent company 43,809 - 43,809 - Redemptions-- Pollution control bonds (55,000) - (55,000) - Senior notes (454) - (454) - Payment of preferred stock dividends (217) - (217) - Payment of common stock dividends (65,500) - (65,500) - Other (3,279) - (3,279) - ----------------------------------------------------------------------------------------------------------------------------------- Net cash provided from financing activities 528 - 528 - ----------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 11,034 - 11,034 - Cash and Cash Equivalents at Beginning of Period 2,244 2,244 - ----------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 13,278 $ - $ 13,278 $ - ===================================================================================================================================
A-30a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) GULF GULF GULF TRUST II TRUST III TRUST IV ------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net Income $ 97 $ 68 $ 3 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization - - - Deferred income taxes - - - Pension, postretirement, and other employee benefits - - - Other, net - - - Change in current assets and liabilities - Receivables, net (97) (68) (3) Fossil fuel stock - - - Materials and supplies - - - Other current assets - - - Accounts payable - - - Taxes accrued - - - Other current liabilities - - - ------------------------------------------------------------------------------------------------------------------ Net cash provided from operating activities - - - ------------------------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES Gross property additions - - - Cost of removal net of salvage - - - Other - - - ------------------------------------------------------------------------------------------------------------------ Net cash used for investing activities - - - ------------------------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS Increase (decrease) in notes payable, net - - - Proceeds-- Pollution control bonds - - - Senior notes - - - Preferred securities - - - Capital contributions from parent company - - - Redemptions-- Pollution control bonds - - - Senior notes - - - Payment of preferred stock dividends - - - Payment of common stock dividends - - - Other - - - ----------------------------------------------------------------------------------------------------------------- Net cash provided from financing activities - - - ----------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents - - - Cash and Cash Equivalents at Beginning of Period - - - ----------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ - $ - $ - =================================================================================================================
A-30b
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I ------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 13,278 $ - $ 13,278 $ - Receivables - Customer accounts receivable 48,609 - 48,609 - Unbilled revenues 28,077 - 28,077 - Under recovered regulatory clause revenues 29,549 - 29,549 - Other accounts and notes receivable 6,618 (1,129) 6,618 558 Affiliated companies 8,678 - 8,678 - Accumulated provision for uncollectible accts (889) - (889) - Fossil fuel stock, at average cost 37,191 - 37,191 - Materials and supplies, at average cost 34,840 - 34,840 - Prepaid taxes 12,704 - 12,704 - Other 14,134 - 14,134 - ------------------------------------------------------------------------------------------------------------------------- Total current assets 232,789 (1,129) 232,789 558 ------------------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment 1,337,456 - 1,337,456 ------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 10,157 (164,577) 14,952 41,237 ------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 18,798 - 18,798 - Prepaid pension costs 36,298 - 36,298 - Unamortized debt issuance expense 3,900 - 3,900 - Unamortized premium on reacquired debt 14,052 - 14,052 - Other 20,379 - 20,379 - ------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 93,427 - 93,427 - ------------------------------------------------------------------------------------------------------------------------- Total Assets $ 1,673,829 $ (165,818) $ 1,678,624 $ 41,795 =========================================================================================================================
A-31a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GULF GULF GULF TRUST II TRUST III TRUST IV ----------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ - $ - Receivables - Customer accounts receivable - - - Unbilled revenues - - - Under recovered regulatory clause revenues - - - Other accounts and notes receivable 491 77 3 Affiliated companies - - - Accumulated provision for uncollectible accts - - - Fossil fuel stock, at average cost - - - Materials and supplies, at average cost - - - Prepaid taxes - - - Other - - 112 ----------------------------------------------------------------------------------------------- Total current assets 491 77 115 ----------------------------------------------------------------------------------------------- Property, Plant and Equipment - - - ----------------------------------------------------------------------------------------------- Other Property and Investments 46,392 30,928 41,225 ----------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes - - - Prepaid pension costs - - - Unamortized debt issuance expense - - - Unamortized premium on reacquired debt - - - Other - - - ----------------------------------------------------------------------------------------------- Total deferred charges and other assets - - - ----------------------------------------------------------------------------------------------- Total Assets $ 46,883 $ 31,005 $ 41,340 ===============================================================================================
A-31b
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GULF GULF GULF Consolidated Eliminations CORPORATE TRUST I --------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ 60,000 $ - $ 60,000 $ - Notes payable 28,479 - 28,479 - Accounts payable Affiliated companies 26,395 - 26,395 - Other 39,685 - 39,685 - Customer deposits 16,047 - 16,047 - Taxes accrued 19,888 - 19,888 - Interest accrued 7,875 (1,129) 9,004 - Vacation pay accrued 5,044 - 5,044 - Other 3,933 - 3,933 - --------------------------------------------------------------------------------------------------------------- Total current liabilities 207,346 (1,129) 208,475 - --------------------------------------------------------------------------------------------------------------- Long-term debt 452,040 (159,795) 611,835 - --------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 167,689 - 167,689 - Defefrred credits related to income taxes 29,692 - 29,692 - Accumulated deferred investment tax credits 22,289 - 22,289 - Employee benefits provisions 39,656 - 39,656 - Other 46,376 - 46,376 - --------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 305,702 - 305,702 - --------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 155,000 13 - 40,000 --------------------------------------------------------------------------------------------------------------- Preferred stock 4,236 - 4,236 - Common stockholder's equity 549,505 (4,907) 548,376 1,795 --------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 1,673,829 $ (165,818) $ 1,678,624 $ 41,795 ===============================================================================================================
A-32a
GULF POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) GULF GULF GULF TRUST II TRUST III TRUST IV --------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ - $ - $ - Notes payable - - - Accounts payable Affiliated companies - - - Other - - - Customer deposits - - - Taxes accrued - - - Interest accrued - - - Vacation pay accrued - - - Other - - - ---------------------------------------------------------------------------------------- Total current liabilities - - - ---------------------------------------------------------------------------------------- Long-term debt - - - ---------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - Defefrred credits related to income taxes - - - Accumulated deferred investment tax credits - - - Employee benefits provisions - - - Other - - - ---------------------------------------------------------------------------------------- Total deferred credits and other liabilities - - - ---------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 45,000 30,000 39,987 ---------------------------------------------------------------------------------------- Preferred stock - - - Common stockholder's equity 1,883 1,005 1,353 ---------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 46,883 $ 31,005 $ 41,340 ========================================================================================
A-32b
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I TRUST II ----------------------------------------------------------------------------------------------------------------------------------- TOTAL OPERATING REVENUES $ 824,165 $ - $824,165 $ - $ - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operation -- Fuel 282,393 - 282,393 - - Purchased power from non-affiliates 18,550 - 18,550 - - Purchased power from affiliates 32,783 - 32,783 - - Other 158,354 - 158,354 - - Maintenance 73,659 - 73,659 - - Depreciation and amortization 57,638 - 57,638 - - Taxes other than income taxes 55,518 - 55,518 - - ----------------------------------------------------------------------------------------------------------------------------------- Total operating expenses 678,895 - 678,895 - - ----------------------------------------------------------------------------------------------------------------------------------- Operating Income 145,270 - 145,270 - Other Income: Interest income 655 (3,016) 655 1,057 1,959 Interest expense (18,650) 3,016 (21,666) - - Distributions on preferred securities of subsidiary (3,016) - - (1,057) (1,959) Other income (expense), net (3,354) - (3,354) - - ----------------------------------------------------------------------------------------------------------------------------------- Total other income and (expense) (24,365) - (24,365) - - ----------------------------------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 120,905 - 120,905 - - Income taxes 45,879 - 45,879 - - ----------------------------------------------------------------------------------------------------------------------------------- Net Income 75,026 - 75,026 - - Dividends on Preferred Stock 2,013 - 2,013 - - ----------------------------------------------------------------------------------------------------------------------------------- ===================================================================================================================================
A-33
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE -------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 75,026 $ - $ 75,026 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 61,930 - 61,930 Deferred income taxes and investment tax credits, net (3,404) - (3,404) Pension, postretirement, and other employee benefits 730 - 730 Other, net 2,017 - 2,017 Change in current assets and liabilities - Receivables, net 6,120 - 6,120 Fossil fuel stock 4,186 - 4,186 Materials and supplies 1,160 - 1,160 Other current assets (13,346) - (13,346) Accounts payable 18,487 - 18,487 Taxes accrued 3,160 - 3,160 Other current liabilities 34,770 - 34,770 -------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 190,836 - 190,836 -------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (67,460) - (67,460) cost of removl net of salvage (9,987) - (9,987) Other (3,471) - (3,471) -------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (80,918) - (80,918) -------------------------------------------------------------------------------------------------------------------- Financing Activities and Capital Contributions Increase (decrease) in notes payable, net (15,973) - (15,973) Proceeds-- Pollution control bonds 42,625 - 42,625 Senior notes 80,000 - 80,000 Preferred securities 35,000 - 35,000 Capital contributions from parent company 18,025 - 18,025 Redemptions-- First mortgage bonds (650) - (650) Pollution control bonds (42,645) - (42,645) Senior notes (80,550) - (80,550) Other long-term debt (35,000) - (35,000) Payment of preferred stock dividends (2,013) - (2,013) Payment of common stock dividends (63,500) - (63,500) Other (1,492) - (1,492) -------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities (66,173) - (66,173) -------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 43,745 - 43,745 Cash and Cash Equivalents at the Beginning of Period 18,950 - 18,950 -------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 62,695 $ - $ 62,695 ====================================================================================================================
A-34a
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) MISSISSIPPI MISSISSIPPI 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 and investment tax credits, net - - Pension, postretirement, and other employee benefits - - Other, net - - Change in current assets and liabilities - Receivables, net - - Fossil fuel stock - - Materials and supplies - - Other current assets - - Accounts payable - - Taxes accrued - - Other current liabilities - - --------------------------------------------------------------------------------------------------- Net cash provided from operating activities - - --------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions - - cost of removl net of salvage - - Other - - --------------------------------------------------------------------------------------------------- Net cash used for investing activities - - --------------------------------------------------------------------------------------------------- Financing Activities and Capital Contributions Increase (decrease) in notes payable, net - - Proceeds-- Pollution control bonds - - Senior notes - - Preferred securities - - Capital contributions from parent company - - Redemptions-- First mortgage bonds - - Pollution control bonds - - Senior notes - - Other long-term debt - - Payment of preferred stock dividends - - Payment of common stock dividends - - Other - - -------------------------------------------------------------------------------------------------- Net cash used for financing activities - - --------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents - - Cash and Cash Equivalents at the Beginning of Period - - --------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ - $ - ===================================================================================================
A-34b
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I TRUST II --------------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 62,695 $ - $ 62,695 $ - $ - Receivables - Customer accounts receivable 31,136 31,136 - - Unbilled revenues 18,434 - 18,434 - - Under recovered regulatory clause revenues 27,233 - 27,233 - - Other accounts and notes receivable 8,056 - 8,056 - - Affiliated companies 20,674 - 20,674 - - Accumulated provision for uncollectible accts (718) - (718) - - Fossil fuel stock, at average cost 27,303 - 27,303 - - Materials and supplies, at average cost 22,063 - 22,063 - - Assets from risk management activities 13,061 - 13,061 - - Deferred income tax assets 18,675 - 18,675 - - Other 7,469 - 7,469 - - --------------------------------------------------------------------------------------------------------------------------------- Total current assets 256,081 - 256,081 - - --------------------------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment 1,098,212 - 1,098,212 - - --------------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 1,768 (37,164) 2,850 - 36,082 --------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 12,617 - 12,617 - - Prepaid pension costs 14,993 - 14,993 - - Unamortized debt issuance expense 4,304 - 4,304 - - Unamortized premium on reacquired debt 7,776 - 7,776 - - Other 16,415 - 16,415 - - --------------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 56,105 - 56,105 - - --------------------------------------------------------------------------------------------------------------------------------- Total Assets $ 1,412,166 $ (37,164) $ 1,413,248 $ - $ 36,082 =================================================================================================================================
A-35
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) MISSISSIPPI MISSISSIPPI MISSISSIPPI Consolidated Eliminations CORPORATE TRUST I --------------------------------------------------------------------------------------------------------------------------- Current Liabilities Securities due within one year $ 69,200 $ - $ 69,200 $ - Accounts payable 114,106 - 114,106 - Customer deposits 6,855 - 6,855 - Taxes accrued 53,506 - 53,506 - Interest accrued 6,562 - 6,562 - Vacation pay accrued 5,782 - 5,782 - Regulatory clauses over recovery 35,680 - 35,680 - Other 8,504 - 8,504 - --------------------------------------------------------------------------------------------------------------------------- Total current liabilities 300,195 - 300,195 - --------------------------------------------------------------------------------------------------------------------------- Long-term debt 243,715 (36,082) 279,797 - --------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 146,631 - 146,631 - Deferred credits related to income taxes 20,798 - 20,798 - Accumulated deferred investment tax credits 21,054 - 21,054 - Employee benefits provisions 49,869 - 49,869 - Other 45,142 - 45,142 - --------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 283,494 - 283,494 - --------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trust holding company junior subordinated notes 35,000 - - - --------------------------------------------------------------------------------------------------------------------------- Preferred stock 31,809 - 31,809 - --------------------------------------------------------------------------------------------------------------------------- Common stockholder's equity 517,953 (1,082) 517,953 - --------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 1,412,166 $(37,164) $ 1,413,248 $ - ===========================================================================================================================
A-36a
MISSISSIPPI POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) MISSISSIPPI TRUST II --------------------------------------------------------------------- Current Liabilities Securities due within one year $ - Accounts payable - Customer deposits - Taxes accrued - Interest accrued - Vacation pay accrued - Regulatory clauses over recovery - Other - ---------------------------------------------------------------------- Total current liabilities - ---------------------------------------------------------------------- Long-term debt - ---------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - Deferred credits related to income taxes - Accumulated deferred investment tax credits - Employee benefits provisions - Other - ---------------------------------------------------------------------- Total deferred credits and other liabilities - ---------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities of subsidiary trust holding company junior subordinated notes 35,000 ---------------------------------------------------------------------- Preferred stock - ---------------------------------------------------------------------- Common stockholder's equity 1,082 ---------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 36,082 ======================================================================
A-36b
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Revenues $ 299,552 $ - $ 299,552 $ - ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Operation -- Fuel 54,955 - 54,955 - Purchased power from non-affiliates 6,368 - 6,368 - Purchase power from affiliates 69,236 - 69,236 - Other 55,756 - 55,756 - Maintenance 25,262 - 25,262 - Depreciation and amortization 22,704 - 22,704 - Taxes other than income taxes 14,457 - 14,457 - ------------------------------------------------------------------------------------------------------------------------------------ Total operating expenses 248,738 - 248,738 - ------------------------------------------------------------------------------------------------------------------------------------ Operating Income 50,814 50,814 Other Income (Expense): Interest income 147 (2,825) 147 2,825 Interest expense, net of amounts capitalized (11,608) 2,825 (14,433) - Distributions on preferred securities of subsidiary (2,740) - - (2,740) Other, net (1,300) - (1,300) - ------------------------------------------------------------------------------------------------------------------------------------ Total other income and (expense) (15,501) - (15,586) 85 ------------------------------------------------------------------------------------------------------------------------------------ Earnings Before Income Taxes 35,313 - 35,228 85 Income taxes 12,433 - 12,433 ------------------------------------------------------------------------------------------------------------------------------------ Net Income 22,880 - 22,795 85 ====================================================================================================================================
A-37
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) -------------------------------------------------------------------------------------------------------------------------------- SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I -------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 22,880 $ - $ 22,795 85 Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 24,653 - 24,653 - Deferred income taxes and investment tax credits, net (6,227) - (6,227) - Pension, postretirement, and other employee benefits 6,133 - 6,133 - Other, net (10,559) - (10,559) - Change in certain current assets and liabilities - Receivables, net 7,965 85 7,965 (85) Fossil fuel stock 1,522 - 1,522 - Material and supplies 3,383 - 3,383 - Other current assets (5,470) - (5,470) - Accounts payable 7,527 (85) 7,612 - Taxes accrued (627) - (627) - Other 6,002 - 6,002 - ---------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 57,182 - 57,182 - ---------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (32,481) - (32,481) - Other (1,331) - (1,331) - ---------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (33,812) - (33,812) - ---------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase in notes payable, net (29,263) - (29,263) - Proceeds-- Senior notes 55,000 - 55,000 - Other long-term debt 25,616 - 25,616 - Capital contribution from parent company 3,950 - 3,950 - Redemptions-- First mortgage bonds (23,558) - (23,558) - Senior notes (30,000) - (30,000) - Payment of common stock dividends (22,700) - (22,700) - Other (828) - (828) - ---------------------------------------------------------------------------------------------------------------------------- Net cash used for financing activities (21,783) - (21,783) - ---------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 1,587 - 1,587 - Cash and Cash Equivalents at Beginning of Period 2,391 - 2,391 - ---------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 3,978 $ - $ 3,978 $ - ============================================================================================================================
A-38
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I -------------------------------------------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 3,978 $ - $ 3,978 $ - Receivables - Customer accounts receivable 22,631 - 22,631 - Unbilled revenues 11,531 - 11,531 - Other accounts and notes receivable 2,937 344) 2,937 344 Affiliated companies 1,102 - 1,102 - Accumulated provision for uncollectible accts (682) - (682) - Fossil fuel stock, at average cost 8,328 - 8,328 - Materials and supplies, at average cost 9,586 - 9,586 - Prepaid taxes 20,422 - 20,422 - Other 6,058 - 6,058 - -------------------------------------------------------------------------------------------------------------------------------- Total current assets 85,891 (344) 85,891 344 -------------------------------------------------------------------------------------------------------------------------------- Property, Plant, and Equipment 470,454 - 470,454 - -------------------------------------------------------------------------------------------------------------------------------- Other Property and Investments 3,648 (42,474) 4,885 41,237 -------------------------------------------------------------------------------------------------------------------------------- Deferred Charges and Other Assets: Deferred charges related to income taxes 11,692 - 11,692 - Cash surrender value of life insurance for deferred compensation plans 21,943 - 21,943 - Unamortized debt issuance expense 3,757 - 3,757 - Unamortized premium on reacquired debt 8,103 - 8,103 - Other 11,717 - 11,717 - -------------------------------------------------------------------------------------------------------------------------------- Total deferred charges and other assets 57,212 - 57,212 - -------------------------------------------------------------------------------------------------------------------------------- Total Assets $ 617,205 $ (42,818) $ 618,442 $ 41,581 =================================================================================================================================
A-39
SAVANNAH ELECTRIC AND POWER COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) SAVANNAH SAVANNAH SAVANNAH Consolidated Eliminations CORPORATE TRUST I ---------------------------------------------------------------------------------------------------------------------------------- Current Liabilities: Securities due within one year $ 20,892 $ - $ 20,892 $ - Notes payable 2,897 - 2,897 - Accounts payable 23,658 - 23,658 - Customer deposits 6,781 - 6,781 - Taxes accrued 3,628 - 3,628 - Interest accrued 3,268 (344) 3,612 - Vacation pay accrued 2,427 - 2,427 - Other 15,233 - 15,233 - --------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 78,784 (344) 79,128 - --------------------------------------------------------------------------------------------------------------------------------- Long-term debt 168,052 (41,237) 209,289 - --------------------------------------------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 78,970 - 78,970 - Deferred credits related to income taxes 12,445 - 12,445 - Accumulated deferred investment tax credits 9,289 - 9,289 - Employee benefits provisions 33,619 - 33,619 - Other 16,242 - 16,242 - --------------------------------------------------------------------------------------------------------------------------------- Total deferred credits and other liabilities 150,565 - 150,565 - --------------------------------------------------------------------------------------------------------------------------------- Company obligated mandatorily redeemable preferred securities 40,000 - - 40,000 --------------------------------------------------------------------------------------------------------------------------------- Common stockholder's equity 179,804 (1,237) 179,460 1,581 --------------------------------------------------------------------------------------------------------------------------------- TOTAL CAPITALIZATION AND LIABILITIES $ 617,205 $ (42,818) $ 618,442 $ 41,581 =================================================================================================================================
A-40
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN POWER POWER COMPANY Consolidated Eliminations CORPORATE FLORIDA ----------------------------------------------------------------------------------------------------------- Total Operating Revenues $ 298,768 $ - $ 298,768 $ - OPERATING EXPENSES: Operation -- Fuel 97,965 - 97,965 - Purchased power from non-affiliates 34,499 - 34,499 - Purchase power from affiliates 19,164 - 19,164 - Other 23,800 - 23,800 - Maintenance 4,551 - 4,551 - Depreciation and amortization 18,319 - 18,319 - Taxes other than income taxes 4,275 - 4,275 - ----------------------------------------------------------------------------------------------------------- Total operating expenses 202,573 - 202,573 - ----------------------------------------------------------------------------------------------------------- Operating Income 96,195 - 96,195 - Other Income (Expense): Interest income 288 - 253 35 Interest expense, net of amounts capitalized (8,886) - (8,886) - Other income (expense), net (4,870) - (4,870) - ----------------------------------------------------------------------------------------------------------- Total other income and (expense) (13,468) - (13,503) 35 ----------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes 82,727 - 82,692 35 Income taxes 28,457 - 28,443 14 ----------------------------------------------------------------------------------------------------------- Net Income $ 54,270 $ - $ 54,249 $ 21 ===========================================================================================================
A-41a
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN SOUTHERN COMPANY COMPANY COMPANY COMPANY JET PORT KLONDIKE MADISON CHEROKEE --------------------------------------------------------------------------------------------------------- Total Operating Revenues $ - $ - $ - $ - OPERATING EXPENSES: Operation -- Fuel - - - - Purchased power from non-affiliates - - - - Purchase power from affiliates - - - - Other - - - - Maintenance - - - - Depreciation and amortization - - - - Taxes other than income taxes - - - - --------------------------------------------------------------------------------------------------------- Total operating expenses - - - - --------------------------------------------------------------------------------------------------------- Operating Income - - - - Other Income (Expense): Interest income - - - - Interest expense, net of amounts capitalized - - - - Other income (expense), net - - - - --------------------------------------------------------------------------------------------------------- Total other income and (expense) - - - - --------------------------------------------------------------------------------------------------------- Earnings Before Income Taxes - - - - Income taxes - - - - --------------------------------------------------------------------------------------------------------- Net Income $ - $ - $ - $ - =========================================================================================================
A-41b
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN SOUTHERN POWER POWER COMPANY COMPANY Consolidated Eliminations CORPORATE FLORIDA JET PORT ---------------------------------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ 54,270 $ - $ 54,249 $ 21 $ - Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization 18,319 - 18,319 - - Deferred income taxes and investment tax credits, net 2,739 - 2,739 - - Other, net 17,955 - 17,955 - - Change in current assets and liabilities - Receivables, net (12,433) - (12,433) - - Fossil fuel stock (7,606) - (7,606) - - Materials and supplies (822) - (822) - - Other current assets (10,198) - (10,198) - - Accounts payable 8,628 - 8,628 - - Taxes accrued 7,834 - 7,834 - - Interest accrued 20,713 - 20,713 - - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided from operating activities 99,399 - 99,378 21 - ---------------------------------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (1,214,677) - (1,094,240) (116,106) (3,714) Increase in construction related payables 3,229 - 3,229 - - Other (885) - (885) - - ---------------------------------------------------------------------------------------------------------------------------------- Net cash used for investing activities (1,212,333) - - (1,091,896) (116,106) (3,714) ---------------------------------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable to parent, net 209,538 - 209,538 - - Proceeds-- Senior notes 575,000 - 575,000 - - Other long-term debt 87,873 - 87,873 - - Capital contributions from parent company 279,133 (123,548) 279,133 119,213 3,715 Settlement of interest rate swaps on senior note (16,884) - (16,884) - - Other-- (5,963) - (5,963) - - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided from financing activities 1,128,697 (123,548) 1,128,697 119,213 3,715 ---------------------------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 15,763 (123,548) 136,179 3,128 1 Cash and Cash Equivalents at Beginning of Period 3,711 - 3,711 - - ---------------------------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 19,474 $ (123,548) $ 139,890 $ 3,128 $ 1 ==================================================================================================================================
A-42
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN COMPANY COMPANY COMPANY KLONDIKE MADISON CHEROKEE ------------------------------------------------------------------------------------------------------- Operating Activities: Net Income $ - $ - $ - Adjustments to reconcile consolidated net income to net cash provided by operating activities - Depreciation and amortization - - - Deferred income taxes and investment tax credits, net - - - Other, net - - - Change in current assets and liabilities - Receivables, net - - - Fossil fuel stock - - - Materials and supplies - - - Other current assets - - - Accounts payable - - - Taxes accrued - - - Interest accrued - - - ------------------------------------------------------------------------------------------------------- Net cash provided from operating activities - - - ------------------------------------------------------------------------------------------------------- Investing Activities: Gross property additions (612) (1) (4) Increase in construction related payables - - - Other - - - ------------------------------------------------------------------------------------------------------- Net cash used for investing activities (612) (1) (4) ------------------------------------------------------------------------------------------------------- Financing Activities: Increase (decrease) in notes payable to parent, net - - - Proceeds-- Senior notes - - - Other long-term debt - - - Capital contributions from parent company 613 2 5 Settlement of interest rate swaps on senior note - - - Other-- - - - ------------------------------------------------------------------------------------------------------- Net cash provided from financing activities 613 2 5 ------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents 1 1 1 Cash and Cash Equivalents at Beginning of Period - - - ------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 1 $ 1 $ 1 =======================================================================================================
A-42b
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN SOUTHERN POWER POWER COMPANY COMPANY Consolidated Eliminations CORPORATE FLORIDA JET PORT ------------------------------------------------------------------------------------------------------------------------ Current Assets: Cash and cash equivalents $ 19,474 $ - $ 16,342 - $ 3,128 $ 1 Receivables - Customer accounts receivable 6,609 - 6,609 - - Affiliated companies 11,555 - 11,555 - - Accumulated provision for uncollectible accounts (350) - (350) - - Fossil fuel stock, at average cost 11,031 - 11,031 - - Materials and supplies, at average cost 6,553 - 6,553 - - Prepayments 8,796 - 8,796 - - Other 9,954 - 9,954 - - ------------------------------------------------------------------------------------------------------------------------ Total current assets 73,622 - 70,490 3,128 1 ------------------------------------------------------------------------------------------------------------------------ Property, Plant and Equipment 1,957,560 (124,574) 1,961,697 116,106 3,714 ------------------------------------------------------------------------------------------------------------------------ Deferred Charges and Other Assets: Accumulated deferred income taxes 38,591 - 38,591 - - Other 16,203 - 15,004 1,165 - ------------------------------------------------------------------------------------------------------------------------ Total deferred charges and other assets 54,794 - 53,595 1,165 - ------------------------------------------------------------------------------------------------------------------------ Total Assets $ 2,085,976 $(124,574) $ 2,085,782 $ 120,399 $ 3,715 ========================================================================================================================
A-43a
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN COMPANY COMPANY COMPANY KLONDIKE MADISON CHEROKEE ------------------------------------------------------------------------------------ Current Assets: Cash and cash equivalents $ 1 $ 1 $ 1 Receivables - Customer accounts receivable - - - Affiliated companies - - - Accumulated provision for uncollectible accounts - - - Fossil fuel stock, at average cost - - - Materials and supplies, at average cost - - - Prepayments - - - Other - - - ------------------------------------------------------------------------------------ Total current assets 1 1 1 ------------------------------------------------------------------------------------ Property, Plant and Equipment 612 1 4 ------------------------------------------------------------------------------------ Deferred Charges and Other Assets: Accumulated deferred income taxes - - - Other - - 34 ------------------------------------------------------------------------------------ Total deferred charges and other assets - - 34 ------------------------------------------------------------------------------------ Total Assets $ 613 $ 2 $ 39 ====================================================================================
A-43b
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN SOUTHERN POWER POWER COMPANY COMPANY Consolidated Eliminations CORPORATE FLORIDA JET PORT ------------------------------------------------------------------------------------------------------------------------ Securities due within one year $ 200 $ - $ 200 $ - $ - Notes payable to parent 210,488 - 210,488 - - Accounts payable - Affiliated 37,748 - 37,748 Other 4,522 - 4,360 162 - Taxes accrued 8,228 - 8,196 32 - Interest accrued 20,713 - 20,713 - - Other 3,484 - 3,484 - - ------------------------------------------------------------------------------------------------------------------------ Total current liabilities 285,383 - 285,189 194 - ------------------------------------------------------------------------------------------------------------------------ Long-term debt 955,879 - 955,879 - - ------------------------------------------------------------------------------------------------------------------------ Deferred Credits and Other Liabilities: Obligations under risk management activities 63,191 - 63,191 - - Deferred capacity revenues 16,222 - 16,222 - - Other 18,697 - 18,697 - - ------------------------------------------------------------------------------------------------------------------------ Total deferred credits and other liabilities 98,110 - 98,110 - - ------------------------------------------------------------------------------------------------------------------------ Common stock equity 746,604 (124,574) 746,604 120,205 3,715 ------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholder's Equity $ 2,085,976 $(124,574) $ 2,085,782 $ 120,399 $ 3,715 ------------------------------------------------------------------------------------------------------------------------
A-44a
SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002 (in thousands) SOUTHERN SOUTHERN SOUTHERN COMPANY COMPANY COMPANY KLONDIKE MADISON CHEROKEE ----------------------------------------------------------------------------------------------- Securities due within one year $ - $ - $ - Notes payable to parent - - - Accounts payable - Affiliated - - - Other - - - Taxes accrued - - - Interest accrued - - - Other - - - ----------------------------------------------------------------------------------------------- Total current liabilities - - - ----------------------------------------------------------------------------------------------- Long-term debt - - - ----------------------------------------------------------------------------------------------- Deferred Credits and Other Liabilities: Obligations under risk management activities - - - Deferred capacity revenues - - - Other - - - ----------------------------------------------------------------------------------------------- Total deferred credits and other liabilities - - - ----------------------------------------------------------------------------------------------- Common stock equity 613 2 39 ----------------------------------------------------------------------------------------------- Total Liabilities and Stockholder's Equity $ 613 $ 2 $ 39 -----------------------------------------------------------------------------------------------
A-44b EXHIBITS. 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, 2002. (File No. 1-3526.) A-2 Annual Report of ALABAMA on Form 10-K for the year ended December 31, 2002. (File No. 1-3164.) A-3 Annual Report of GEORGIA on Form 10-K for the year ended December 31, 2002. (File No. 1-6468.) A-4 Annual Report of GULF on Form 10-K for the year ended December 31, 2002. (File No. 0-2429.) A-5 Annual Report of MISSISSIPPI on Form 10-K for the year ended December 31, 2002. (File No. 001-11229.) A-6 Annual Report of SAVANNAH on Form 10-K for the year ended December 31, 2002. (File No. 1-5072.) A-7 Annual Report of SOUTHERN POWER on Form 10-K for the year ended December 31, 2002. (File No. 333-98553.) 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 February 6, 2003. (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, in Form 10-K for the year ended December 31, 1997, File No. 1-3164, as Exhibit 3(b)2, in Form 8-K dated August 10, 1998, File No. 1-3164, as Exhibit 4.4, in Form 10-K for the year ended December 31, 2000, File No. 1-3164, as Exhibit 3(b)2, in Form 10-K for the year ended December 31, 2001, File No. 1-3164, as Exhibit 3(b)2 and in Form 8-K dated February 5, 2003, File No. 1-3164, as Exhibit 4.4.) B-4 By-laws of ALABAMA as amended effective April 26, 2002, and as presently in effect. (Designated in Form 10-K for the year ended December 31, 2002, File No. 1-3164, as Exhibit 3(b)2.) A-45 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit B-5 Charter of GEORGIA and amendments thereto through January 16, 2001. (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), in Form 10-K for the year ended December 31, 1997, File No. 1-6468, as Exhibit 3(c)2 and in Form 10-K for the year ended December 31, 2000, File No. 1-6468, as Exhibit 3(c)2.) B-6 By-laws of GEORGIA as amended effective February 19, 2003, and as presently in effect. (Designated in GEORGIA's Form 10-K for the year ended December 31, 2002, File No. 1-6468, as Exhibit 3(c)2.) B-7 Restated Articles of Incorporation of GULF and amendments thereto through February 9, 2001. (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, in Form 10-K for the year ended December 31, 1997, File No. 0-2429, as Exhibit 3(d)2 and in Form 10-K for the year ended December 31, 2000, File No. 0-2429, as Exhibit 3(d)2.) B-8 By-laws of GULF as amended effective July 26, 2002, and as presently in effect. (Designated in Form 10-K for the year ended December 31, 2002, File No. 0-2429, as Exhibit 3(d)2.) 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 March 8, 2001. (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, in Form 10-K for the year ended December 31, 1997, File No. 0-6849, as Exhibit 3(e)2 and in Form 10-K for the year ended December 31, 2000, File No. 0-6849, as Exhibit 3(e)2.) B-10 By-laws of MISSISSIPPI as amended effective February 28, 2001, and as presently in effect. (Designated if Form 10-K for the year ended December 31, 2001, File No. 0-6849, as Exhibit 3(e)2.) A-46 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit B-11 Charter of SAVANNAH and amendments thereto through December 2, 1998. (Designated in Registration No. 33-25183 as Exhibit 4(b)-(1), in Registration No. 33-45757 as Exhibit 4(b)-(2), in Form 8-K dated November 9, 1993, File No. 1-5072 as Exhibit 4(b) and in Form 10-K for the year ended December 31, 1998, File No. 1-5072, as Exhibit 3(f)2.) B-12 By-laws of SAVANNAH as amended effective May 17, 2000, and as presently in effect. (Designated in SAVANNAH's Form 10-K for the year ended December 31, 2000, File No. 1-5072, as Exhibit 3(f)2.) B-13 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-14 SCS By-laws as amended to date, last amended October 19, 1998. (Designated in Form U5S for 1998, File No. 30-222-2, as Exhibit B-16.) B-15 Amended and Restated Articles of Incorporation of MESH dated February 7, 2000. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-15.) B-16 By-laws of MESH. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-24.) B-17 Articles of Incorporation of Southern Management Development, Inc. and amendments thereto through March 6, 2001. (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, in Form U5S for 1993, File No. 30-222-2, as Exhibit B-25 and in Form U5S for 2001, File No. 30-222-2, as Exhibit B-18.) B-18 Amended and Restated By-laws of Southern Management Development, Inc. effective March 5, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-19.) B-19 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-20 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 and in Form U5S for 1997, File No. 30-222-2, as Exhibit B-28.) B-21 Certificate of Incorporation of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-30.) B-22 By-laws of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-31.) B-23 Certificate of Incorporation of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-31.) A-47 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit B-24 By-laws of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-32.) B-25 Certificate of Incorporation of Southern Telecom, Inc. as amended through February 17, 1998. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-26.) B-26 By-Laws of Southern Telecom, Inc. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-50.) B-27 Certificate of Incorporation of Southern Company Funding Corporation dated January 17, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-28.) B-28 By-Laws of Southern Company Funding Corporation effective January 17, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-29.) B-29 Certificate of Incorporation of Southern Company Holdings, Inc. as amended through March 6, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-30.) B-30 By-Laws of Southern Company Holdings, Inc. effective March 5, 2001. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-31.) B-31 Certificate of Incorporation of Southern Information Holding Company, Inc. as amended through February 17, 1998. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-32.) B-32 By-Laws of Southern Information Holding Company, Inc. effective September 9, 1996. (Designated in Form U5S for 2001, File No. 30-222-2, as Exhibit B-33.) B-33 Certificate of Incorporation of Southern Power Company dated January 8, 2001. (Designated in Registration No. 333-98553 as Exhibit 3.1.) B-34 By-Laws of Southern Power Company effective January 8, 2001. (Designated in Registration No. 333-98553 as Exhibit 3.2.) C-1 Subordinated Note Indenture dated as of February 1, 1997, among SOUTHERN, Southern Company Capital Funding, Inc. and Deutsche Bank Trust Company Americas (formerly 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, among SOUTHERN, Southern Company Capital Funding, Inc. and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee, and indentures supplemental thereto through of July 31, 2002. (Designated in Form 10-K for the year ended December 31, 1997, File No. 1-3526, as Exhibit 4(a)2, in Form 8-K dated June 18, 1998, File No. 1-3526, as Exhibit 4.2, in Form 8-K dated December 18, 1998, File No. 1-3526, as Exhibit 4.4 and in Form 8-K dated July 24, 2002, File No. 1-3526, as Exhibit 4.4.) A-48 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit C-3 Senior Note Indenture dated as of February 1, 2002, among SOUTHERN, Southern Company Capital Funding, Inc. and The Bank of New York, as Trustee, and indentures supplemental thereto through those dated February 1, 2002. (Designated in Form 8-K dated January 29, 2002, File No. 1-3526, as Exhibits 4.1 and 4.2 and in Form 8-K dated January 30, 2002, File No. 1-3526, as Exhibit 4.2.) C-4 Indenture dated as of January 1, 1942, between ALABAMA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through 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-5 Subordinated Note Indenture dated as of January 1, 1996, between ALABAMA and JPMorgan Chase Bank (formerly The Chase Manhattan 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-6 Subordinated Note Indenture dated as of January 1, 1997, between ALABAMA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through October 2, 2002. (Designated in Form 8-K dated January 9, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2, in Form 8-K dated February 18, 1999, File No. 1-3164, as Exhibit 4.2 and in Form 8-K dated September 26, 2002, File No.1-3164, as Exhibits 4.9-A and 4.9-B.) C-7 Senior Note Indenture dated as of December 1, 1997, between ALABAMA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through April 23, 2003. (Designated in Form 8-K dated December 4, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2, in Form 8-K dated February 20, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated April 17, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 11, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated September 8, 1998, File No. 1-3164, as Exhibit 4.2, in Form A-49 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit 8-K dated September 16, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated October 7, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated October 28, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated November 12, 1998, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated May 19, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 13, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated September 21, 1999, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated May 11, 2000, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated August 22, 2001, File No. 1-3164, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated June 21, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated October 16, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated November 20, 2002, File No. 1-3164, as Exhibit 4.2(a), in Form 8-K dated December 6, 2002, File No. 1-3164, as Exhibit 4.2, in Form 8-K dated February 11, 2003, File No. 1-3164, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated March 12, 2003, File No. 1-3164, as Exhibit 4.2 and in Form 8-K dated April 15, 2003 as Exhibit 4.2(a).) C-8 Indenture dated as of March 1, 1941, between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan 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.) A-50 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit C-9 Satisfaction and Discharge of Indenture, Release and Deed of Reconveyance dated as of February 27, 2002, by JPMorgan Chase Bank, as Trustee, to GEORGIA relating to the defeasance of the Indenture dated as of March 1, 1941 between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through October 15, 1995. (Designated in GEORGIA's Form 10-K for the year ended December 31, 2001, File No. 1-6468, as Exhibit 4(c)2.) C-10 Subordinated Note Indenture dated as of August 1, 1996, between GEORGIA and JPMorgan Chase Bank (formerly 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.) C-11 Subordinated Note Indenture dated as of June 1, 1997, between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through November 6, 2002. (Designated in Certificate of Notification, File No. 70-8461, as Exhibits D and E, in Form 8-K dated February 17, 1999, File No. 1-6468, as Exhibit 4.4, in Form 8-K dated June 13, 2002, File No. 1-6468, as Exhibit 4.4 and in Form 8-K dated October 30, 2002, File No. 1-6468, as Exhibit 4.4.) C-12 Senior Note Indenture dated as of January 1, 1998, between GEORGIA and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through April 15, 2003. (Designated in Form 8-K dated January 21, 1998, File No. 1-6468, as Exhibits 4.1 and 4.2, in Forms 8-K each dated November 19, 1998, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated March 3, 1999, File No. 1-6468, as Exhibit 4.5, in Form 8-K dated February 15, 2000, File No. 1-6468 as Exhibit 4.2, in Form 8-K dated January 26, 2001, File No. 1-6468, as Exhibits 4.2(a) and 4.2(b), in Form 8-K dated February 16, 2001, File No. 1-6469 as Exhibit 4.2, in Form 8-K dated May 1, 2001, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated June 27, 2002, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated November 15, 2002, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated February 13, 2003, File No. 1-6468, as Exhibit 4.2, in Form 8-K dated February 21, 2003, File No. 1-6468, as Exhibit 4.2 and in Form 8-K dated April 10, 2003, File No. 1-6468, as Exhibits 4.1, 4.2 and 4.3.) C-13 Indenture dated as of September 1, 1941, between GULF and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), 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, A-51 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit 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-14 Subordinated Note Indenture dated as of January 1, 1997, between GULF and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indentures supplemental thereto through December 13, 2002. (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, in Form 8-K dated January 13, 1998, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated November 8, 2001, File No. 0-2429, as Exhibit 4.2 and in Form 8-K dated December 5, 2002, File No. 0-2429, as Exhibit 4.2.) C-15 Senior Note Indenture dated as of January 1, 1998, between GULF and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee, and indenture supplemental thereto dated as of March 26, 2003. (Designated in Form 8-K dated June 17, 1998, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form 8-K dated August 17, 1999, File No. 0-2429 as Exhibit 4.2, in Form 8-K dated July 31, 2001, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated October 5, 2001, File No. 0-2429, as Exhibit 4.2, in Form 8-K dated January 18, 2002, File No. 0-2429, as Exhibit 4.2 and in Form 8-K dated March 21, 2003, File No. 0-2429, as Exhibit 4.2.) C-16 Indenture dated as of September 1, 1941, between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly 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-17 Subordinated Note Indenture dated as of February 1, 1997, between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee, and indentures supplemental thereto through March 22, 2002. (Designated in Form 8-K dated February 20, 1997, File No. 0-6849, as Exhibits 4.1 and 4.2 and in Form 8-K dated March 15, 2002, File No. 0-6849, as Exhibit 4.2.) C-18 Senior Note Indenture dated as of May 1, 1998 between MISSISSIPPI and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee and indentures supplemental thereto through March 22, 2002. (Designated in Form 8-K dated May 14, 1998, File No. 0-6849, as Exhibits 4.1, 4.2(a) and 4.2(b), in Form 8-K dated March 22, 2000, File No. 0-6849, as Exhibit 4.2 and in Form 8-K dated March 12, 2002, File No. 0-6849, as Exhibit 4.2.) A-52 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit C-19 Indenture dated as of March 1, 1945, between SAVANNAH and The Bank of 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-20 Subordinated Note Indenture dated as of December 1, 1998, between SAVANNAH and The Bank of New York, as Trustee, and indenture supplemental thereto dated as of December 9, 1998. (Designated in Form 8-K dated December 3, 1998, File No. 1-5072, as Exhibit 4.3 and 4.4.) C-21 Senior Note Indenture dated as of March 1, 1998 between SAVANNAH and The Bank of New York, as Trustee and indentures supplemental thereto through November 7, 2002. (Designated in Form 8-K dated March 9, 1998, File No. 1-5072, as Exhibits 4.1 and 4.2, in Form 8-K dated May 8, 2001, File No. 1-5072, as Exhibits 4.2(a) and 4.2(b) and in Form 8-K dated November 4, 2002, File No. 1-5072, as Exhibit 4.2.) C-22 Indenture dated as of June 1, 2002, between Southern Power and The Bank of New York, as Trustee, and indenture supplemental thereto dated as of June 18, 2002. (Designated in Registration No. 333-98553 as Exhibits 4.1 and 4.2.) D-1 Income Tax Allocation Agreement and Amendments 1 through 108 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, in Form U5S for 1996, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1997, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1998, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1999, File No. 30-222-2, as Exhibit D-2, in Form U5S for 2000, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 2001, File No. 30-222-2, as Exhibit D-2.) D-2 Amendments 109 and 110 to Income Tax Allocation Agreement. D-3 Statement of the Effects to the Companies Party to the Southern Company Income Tax Allocation Agreement after the Spin-Off of Mirant Corporation. A-53 EXHIBITS. Exhibits (including reference to previous filings): (Continued) Exhibit Number Description of Exhibit 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, in Form U5S for 1995, File No. 30-222-2, as Exhibit E-2, in Form U5S for 1997, File No. 30-222-2, as Exhibit E-2 and in Form U5S for 2001, File No. 30-222-2, as Exhibit E-2.) H Organizational chart. I Financial statements relating to certain exempt wholesale generators and foreign utility companies. J Consent of Deloitte & Touche LLP.
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. A-54 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 25, 2003 By /s/ W. Dean Hudson ------------------------------ W. Dean Hudson Chief Accounting Officer and Comptroller