Exhibit 99.2
News
[Southern Company Logo]
Media Contacts:
John Sell, Georgia Power: 404-506-7676 or 1-800-282-1696
John Kraft, Savannah Electric: 912-238-2267 (office) or 912-921-3861 (pager)
Terri Cohilas, Southern Company: 404-506-5333 or 1-866-506-5333
media@southerncompany.com
www.southerncompany.com
Dec. 13, 2005
Southern Company approves plan to merge
Savannah Electric into Georgia Power
ATLANTA - Southern Company President and CEO David Ratcliffe announced today
that the boards of directors of Southern Company, Savannah Electric and Georgia
Power have approved a plan to merge Savannah Electric into Georgia Power. The
companies expect to complete the merger, pending required approvals, by July of
2006.
Ratcliffe said the merger is expected to reduce the impact of future rate
increases for Savannah Electric customers, result in future operational
efficiencies for the combined company and enhance the future economic well-being
of Savannah Electric's service area, the strongest economy of any metro area in
Georgia.
Savannah Electric customers are expected to benefit from Georgia Power's more
diverse and cost-efficient generating fleet, which includes coal-fueled, nuclear
and hydro electric generating units, in addition to natural gas-fueled units.
Ratcliffe pledged Georgia Power's continued involvement in, and support of,
civic efforts in the Savannah community, and said Savannah Electric employees
would fill most of the positions in a new Georgia Power region organization
headquartered in Savannah. While the new region organization is expected to
require fewer positions, the companies plan to offer voluntary severance to
affected non-union Savannah Electric employees and try to find positions
elsewhere within Southern Company for those who are not offered positions in the
new organization.
Savannah Electric management plans to meet soon with union leadership to discuss
issues around job opportunities, transition and severance benefits for employees
covered by bargaining agreements.
"Savannah Electric has been an important local business in the Savannah
community for 123 years," Ratcliffe said. "That's a long history that we respect
and the combined company will continue to honor."
"Savannah Electric has a tradition of great customer service and community
involvement," added Mike Garrett, president and CEO of Georgia Power. "Combining
these companies will strengthen our ability to continue this tradition."
The Savannah Electric board of directors also today elected Anthony James
chairman of the board and Craig Barrs president and CEO of Savannah Electric.
James will remain chairman until Feb. 1, at which time he will become executive
vice president of Southern Company Services and president of the shared services
group, which includes those centralized corporate functions that are providing
services to Southern Company's operating companies and other businesses. James
will be based in Atlanta and report to Ratcliffe. Barrs, who most recently
served as vice president of community and economic development for Georgia
Power, will be named vice president of Georgia Power's new coastal region when
the merger of Georgia Power and Savannah Electric is completed.
Under the merger agreement, Southern Company will continue to own all of the
outstanding common stock of Georgia Power, which will be the surviving
corporation in the merger. Preferred shareholders of Savannah Electric will
receive shares of Georgia Power preferred stock in exchange for their Savannah
Electric preferred stock, and Georgia Power will assume Savannah Electric's
obligations under its outstanding debt securities.
The merger will require the approval of Savannah Electric's common and preferred
shareholders, as well as various regulatory approvals, including the approval of
the Federal Energy Regulatory Commission. In addition, Georgia Power also will
ask the Georgia Public Service Commission to approve asset, service territory,
Integrated Resource Plan (IRP) and service rule transfers. Georgia Power plans
to seek approval of new fuel cost recovery rates from the Georgia Public Service
Commission, including a fuel recovery rate expected to be significantly lower
for former Savannah Electric customers and a merger transition charge to better
align Savannah Electric's base rates with Georgia Power's base rates.
With more than 4 million customers and more than 40,000 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.
Cautionary Notice Regarding Forward-Looking Statements
This press release includes forward-looking statements under federal securities
laws. These forward-looking statements include statements regarding potential
benefits of the proposed merger, integration plans, expected operational
efficiencies, anticipated future rate impacts for customers and other statements
regarding the plans, strategies and expectations of management. These statements
are based on the current expectations of management and a number of risks and
uncertainties could cause actual results to differ materially from these
forward-looking statements. For example, (1) the companies may be unable to
obtain the shareholder approvals required for the transaction; (2) the companies
may be unable to obtain regulatory approvals required for the transaction, or
regulatory approvals may delay the transaction or result in the imposition of
conditions that could have a material adverse effect on the combined company or
cause the companies to abandon the transaction; (3) problems may arise in
successfully integrating the operations of the companies, which may result in
the combined company not operating as effectively and efficiently as expected;
(4) the combined company may be unable to achieve cost-cutting synergies or it
may take longer than expected to achieve those synergies; (5) the credit ratings
of the combined company may be different from what the companies expect; (6) the
industry may be subject to future regulatory or legislative actions that could
adversely affect the companies; and (7) the companies may be adversely affected
by other economic, business and/or competitive factors. Additional factors that
may affect the future results of Southern Company, Georgia Power and Savannah
Electric are set forth in their respective filings with the Securities and
Exchange Commission ("SEC"), which are available at www.sec.gov. The companies
disclaim any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
Additional Information
In connection with the proposed merger, a registration statement of Georgia
Power, which will include a proxy statement of Savannah Electric, and other
materials, will be filed with the SEC. WE URGE INVESTORS TO READ THE
REGISTRATION STATEMENT AND PROXY STATEMENT AND THESE OTHER MATERIALS CAREFULLY
WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
GEORGIA POWER, SAVANNAH ELECTRIC AND THE PROPOSED MERGER. Investors will be able
to obtain free copies of the registration statement and proxy statement (when
available) as well as other filed documents containing information about Georgia
Power and Savannah Electric at http://www.sec.gov, the SEC's website.
Georgia Power, Savannah Electric and their respective executive officers and
directors may be deemed, under SEC rules, to be participants in the solicitation
of proxies from Savannah Electric's preferred shareholders with respect to the
proposed merger. Information regarding the officers and directors of Georgia
Power is included in its definitive information statement for its 2005 Annual
Meeting filed with the SEC on April 22, 2005. Information regarding the officers
and directors of Savannah Electric is included in its Annual Report on Form 10-K
for the year ended December 31, 2004. More detailed information regarding the
identity of potential participants, and their direct or indirect interests, will
be set forth in the registration statement and proxy statement and other
materials to be filed with the SEC in connection with the proposed merger.
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