Alabama Power (ALP-PQ) 8-K Results of Operations and Financial Condition

	Exhibit 99.04
	Page 1
	Southern Company
	EPS Earnings Analysis
	Three Months Ended September 2017 vs. September 2016
Cents	Description
(4)¢	Retail Sales
9¢	Retail Revenue Impacts
(10)¢	Weather
(1)¢	Wholesale Operations
4¢	Non-Fuel O&M
(1)¢	Depreciation and Amortization
1¢	Taxes Other Than Income Taxes
(2)¢	Other Income and Deductions
1¢	Interest Expense
(1)¢	Income Taxes
(4)¢	Total Traditional Electric Operating Companies
(5)¢	Southern Power
1¢	Southern Company Gas1
(3)¢	Parent and Other
(4)¢	Increase in Shares
(15)¢	Total Change in QTD EPS (Excluding Items)
3¢	Kemper IGCC Impacts2
2¢	Acquisition and Integration Costs3
(1)¢	Wholesale Gas Services4
(11)¢	Total Change in QTD EPS (As Reported)
- See Notes on the following page.

Exhibit 99.04

Page 2

Southern Company

EPS Earnings Analysis

Three Months Ended September 2017 vs. September 2016

Notes

- In connection with the adoption in the fourth quarter 2016 of a new accounting standard for stock compensation, previously reported amounts for income tax expense were reduced by a total of $9 million for the three months ended September 30, 2016.

- For comparative purposes, Net Income - Excluding Items and Basic Earnings Per Share - Excluding Items in prior year periods do not reflect any adjustments to exclude (1) Southern Company Gas earnings, net of acquisition and integration costs and Wholesale Gas Services ($0.04 per share for the three months ended September 30, 2016), (2) acquisition debt financing costs related to the acquisition of Southern Company Gas ($0.05 per share for the three months ended September 30, 2016), and (3) the impact of additional shares of common stock issued to finance a portion of the purchase price for the 50% interest in Southern Natural Gas Company, L.L.C. (SNG) ($0.02 per share for the three months ended September 30, 2016). These items were not contemplated in Southern Company's February 2016 guidance and, therefore, were previously excluded in the periods through December 31, 2016.

(1) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas.

(2) Earnings for the three months ended September 30, 2017 and 2016 include the estimated losses relating to Mississippi Power Company's integrated coal gasification combined cycle facility construction project in Kemper County, Mississippi (Kemper IGCC) which significantly impacted the presentation of earnings and earnings per share. Further charges of uncertain amounts may occur in future periods in connection with the resolution of the Mississippi Public Service Commission's Kemper Settlement Docket.

Earnings for the three months ended September 30, 2016 include additional allowance for funds used during construction (AFUDC) equity as a result of extending the schedule for the Kemper IGCC construction project. AFUDC equity ceased in connection with the project's suspension in June 2017. Southern Company's 2017 earnings guidance, initially presented in October 2016, assumed construction would be complete and AFUDC equity would cease by November 30, 2016. Southern Company's 2016 earnings guidance, initially presented in February 2016, assumed construction would be complete and AFUDC equity would cease by August 31, 2016. As a result, Southern Company believes presentation of earnings per share excluding AFUDC equity subsequent to August 31, 2016 provides investors with information comparable to guidance. Management also uses such measures to evaluate Southern Company's performance.

(3) Earnings for the three months ended September 30, 2017 and 2016 include costs related to the acquisition and integration of Southern Company Gas. Further costs are expected to continue to occur in connection with the related integration activities; however, the amount and duration of such expenditures is uncertain.

(4) Earnings for the three months ended September 30, 2017 and 2016 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.