Exhibit 99.01
News
{Southern Company Logo}
Media Contact: Marc Rice
404-506-5333 or 1-866-506-5333
media@southerncompany.com
www.southerncompany.com
Investor Relations Contact:
Glen Kundert
404-506-5135
gakunder2@southernco.com
Oct. 25, 2005
Southern Company reports solid earnings for third quarter
ATLANTA - Unseasonably warm weather in September along with sustained economic
strength in the Southeast helped Southern Company to deliver solid earnings in
the third quarter.
The company reported third quarter earnings of $722.2 million, or 97 cents a
share, compared with $644.5 million, or 87 cents a share, in the same period a
year ago.
For the first nine months of this year, earnings were $1.43 billion, or $1.92
per share, compared with $1.33 billion, or $1.80 per share, in the same period
of 2004.
Compared with extremely mild weather in the third quarter last year, the weather
was normal for most of the 2005 third quarter, then hotter than normal in
September -- the warmest temperatures for that month in a quarter-century --
which led to greater usage of electricity by Southern Company customers overall.
Additionally, the regional economy remained relatively strong, and the number of
customers served by Southern Company and its subsidiaries continued to grow,
totaling more than 4.2 million at the end of the third quarter.
Southern Company's Mississippi Power and Alabama Power subsidiaries were hit
hard by Hurricane Katrina during the third quarter. All 195,000 of Mississippi
Power's customers and nearly 637,000 of Alabama Power's - about 49 percent -
lost electric service in the wake of the storm. In terms of physical damage, it
was the worst storm ever faced by Mississippi Power. Historically, the uninsured
costs of repairing hurricane damage have been recovered through regulatory
action, and Mississippi Power and Alabama Power have begun the process of
working with their state Public Service Commissions to seek recovery of those
costs.
"I am proud of the way our people continue to meet our financial, operational
and customer satisfaction targets, as evidenced by our strong performance in the
third quarter," said David M. Ratcliffe, chairman, president and chief executive
officer.
"Just as important as the numbers on a financial statement is how a company
responds when it is tested, as we have been by three major hurricanes in the
past year." Ratcliffe added. "In that regard, the actions of our people to
restore power - it was back on for all customers who could receive it within 12
days - as well as to help the coastal area otherwise get back on its feet after
Hurricane Katrina have been nothing short of outstanding."
Third quarter revenues were $4.38 billion, compared with $3.44 billion in the
third quarter a year ago. Revenues for the first nine months of the year were
$10.39 billion, compared with $9.18 billion in the same period last year.
Kilowatt-hour sales to retail customers in Southern Company's four-state service
area increased 5.6 percent in the third quarter of this year, compared with the
same period in 2004. Residential electricity use increased 11.4 percent,
primarily because of the warmer weather. In 2005, some Georgia Power industrial
customers were reclassified from the industrial class to the commercial class to
be consistent with the rate structure approved by the Georgia Public Service
Commission. Adjusting the 2004 numbers for comparison purposes, electricity use
by commercial customers -- offices, stores and other non-manufacturing firms -
increased 6.4 percent, also mainly because of the weather. Industrial energy use
decreased 1.1 percent. As reported, without adjusting the 2004 kilowatt-hour
sales, commercial sales for the third quarter of this year are up 8.5 percent
and industrial energy sales are down 3.0 percent.
Total sales of electricity to Southern Company's customers in the Southeast,
including wholesale sales, increased 8.2 percent, compared with the third
quarter last year.
In conjunction with this earnings announcement, Southern Company has posted on
its Web site a package of detailed financial information on its third quarter
performance. These materials are available at 7:30 a.m. EDT Oct. 25 at
www.southerncompany.com.
Southern Company's financial analyst call will be at 1 p.m. EDT Oct. 25, at
which time Ratcliffe and Chief Financial Officer Tom Fanning will discuss
earnings and earnings guidance as well as a general business update. Investors,
media and the public may listen to a live Webcast of the call at
www.southerncompany.com. A replay of the Webcast will be available at the site
for 12 months.
With more than 4 million customers and nearly 39,000 megawatts of generating
capacity, Atlanta-based Southern Company (NYSE: SO) is the premier
super-regional energy company in the Southeast and a leading U.S. producer of
electricity. Southern Company owns electric utilities in four states, a growing
competitive generation company and a competitive retail natural gas business, 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 15 percent below the national average. Southern Company has been
ranked the nation's top energy utility in the American Customer Satisfaction
Index six years in a row. Southern Company has more than 500,000 shareholders,
making its common stock one of the most widely held in the United States. Visit
the Southern Company Web site at www.southerncompany.com.
Forward Looking Statements Note:
The following factors, in addition to those discussed in Southern Company's
Annual Report on Form 10-K for the year ended Dec. 31, 2004, 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, and also changes in environmental, 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-related 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 and gas,
including those relating to weather, the general economy and population and
business growth (and declines); available sources and costs of fuels; 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; 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; 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 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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