Exhibit 99.01
News
Media Contact: | Terri Cohilas |
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| 404-506-5333 or 1-866-506-5333 | |||
| media@southerncompany.com |
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| www.southerncompany.com |
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Investor Relations Contact:
Glen Kundert |
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404-506-5135 | ||
gakunder2@southernco.com |
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April 30, 2008
Southern Company reports solid first quarter earnings
ATLANTA – Southern Company today reported first quarter earnings of $359.2 million, or 47 cents a share, compared with $338.7 million, or 45 cents a share, in the same period a year ago.
Excluding the impact of synthetic fuel investments, Southern Company earned 47 cents a share for the first quarter of 2008, compared with 41 cents a share for the same period in 2007.
Despite a nationwide economic slowdown, the Southeast has experienced less of an impact than the rest of the country.
“Even though consumers in the Southeast and across the U.S. are paying higher prices for products and services, the cost of living in the Southeast, including electricity prices, continues to be among the lowest in the nation,” said David M. Ratcliffe, Southern Company chairman, president and CEO. “While economic growth has slowed, new residents and new business and industry continue to move to our region.”
Household growth in the Southern Company service territory has increased 1.8 percent in the past 12 months, compared with the nation at 1.0 percent. And population growth in the Southeast over the same 12-month period was 1.7 percent, versus the nation at 0.9 percent.
As a result, Southern Company has added nearly 50,000 customers since the end of the first quarter of 2007. This customer growth has driven increased usage, primarily in the residential and commercial sectors.
Other positive earnings drivers include increased revenue from market-response rates, and from state regulatory actions that support increased capital investment in transmission and distribution infrastructure and new environmental equipment. These investments are needed to help ensure that Southern Company continues to meet growing demand, maintain reliability and produce cleaner energy. The earnings drivers were offset in part by higher non-fuel operations and maintenance expenses and asset depreciation, primarily associated with the increased investment in environmental equipment and infrastructure.
Revenues for the first quarter of 2008 were $3.68 billion, compared with $3.41 billion in the same period a year ago, an 8 percent increase.
Kilowatt-hour sales to retail customers in Southern Company’s four-state service area increased 1.4 percent in the first quarter, compared with the first quarter of 2007. Residential electricity sales increased 1.9 percent. Electricity sales to commercial customers increased 1.9 percent, and industrial sales increased 0.6 percent.
Total energy sales to Southern Company’s customers in the Southeast, including wholesale sales, increased 1.4 percent in the first quarter of 2008 compared with the same period of 2007.
With nearly 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast, one of America’s fastest-growing regions. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are significantly below the national average. Southern Company has been listed the top ranking U.S. electric service provider in customer satisfaction for eight consecutive years by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com.
Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning results of operations and customer and economic growth. Southern Company cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Company’s Annual Report on Form 10-K for the year ended December 31, 2007, and subsequent securities filings, could cause results to differ materially from management expectations as suggested by such forward-looking information: the impact of recent and future federal and state regulatory change, including legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry, implementation of the Energy Policy Act of 2005, environmental laws including regulation of water quality and emissions of sulfur, nitrogen, mercury, carbon, soot, or particulate matter and other substances, and also changes in tax and other laws and
regulations to which Southern Company and its subsidiaries are subject, as well as changes in application of existing laws and regulations; current and future litigation, regulatory investigations, proceedings, or inquiries, including the pending EPA civil actions against certain Southern Company subsidiaries, FERC matters, IRS audits, and Mirant matters; the effects, extent, and timing of the entry of additional competition in the markets in which Southern Company’s subsidiaries operate; variations in demand for electricity, including those relating to weather, the general economy, population and business growth (and declines), and the effects of energy conservation measures; available sources and costs of fuels; effects of inflation; ability to control costs; investment performance of Southern Company’s employee benefit plans; advances in technology; state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and storm restoration cost recovery; regulatory approvals related to the potential Plant Vogtle expansion, including Georgia PSC and NRC approvals; the performance of projects undertaken by the non-utility businesses and the success of efforts to invest in and develop new opportunities; internal restructuring or other restructuring options that may be pursued; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Company or its subsidiaries; the ability of counterparties of Southern Company and its subsidiaries to make payments as and when due and to perform as required; the ability to obtain new short- and long-term contracts with neighboring utilities; the direct or indirect effect on Southern Company’s business resulting from terrorist incidents and the threat of terrorist incidents; interest rate fluctuations and financial market conditions and the results of financing efforts, including Southern Company’s and its subsidiaries’ credit ratings; the ability of Southern Company and its subsidiaries to obtain additional generating capacity at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes, droughts, pandemic health events such as an avian influenza, or other similar occurrences; the direct or indirect effects on Southern Company’s business resulting from incidents similar to the August 2003 power outage in the Northeast; and the effect of accounting pronouncements issued periodically by standard setting bodies. Southern Company and its subsidiaries expressly disclaim any obligation to update any forward-looking information.
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