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