Southern Company. 4th Quarter 2014 Earnings. December 31, 2014

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1 4th Quarter 2014 Earnings 31, 2014 Contents Press Release Page 1 Financial Highlights Page 3 Significant Factors Impacting EPS Page 4 EPS Earnings Analysis Page 5 Consolidated Earnings Page 6 Kilowatt-Hour Sales Page 7 Financial Overview Page 8

2 News Media Contact: Southern Company Media Relations or Investor Relations Contact: Dan Tucker February 4, 2015 Southern Company reports fourth-quarter and full-year 2014 earnings ATLANTA - Southern Company today reported fourth-quarter 2014 earnings of $300 million, or 33 cents per share, compared with earnings of $414 million, or 47 cents per share, in the fourth quarter of Southern Company also reported full-year 2014 earnings of $1.98 billion, or $2.21 per share, compared with earnings for 2013 of $1.64 billion, or $1.88 per share. Earnings for the fourth quarter of 2014 include after-tax charges of $43 million, or 5 cents per share - and earnings for the full year 2014 include after-tax charges totaling $536 million, or 59 cents per share - related to increased cost estimates for construction of Mississippi Power s Kemper County integrated gasification combined cycle project. Earnings for the fourth quarter of 2013 include after-tax charges of $25 million, or 3 cents per share - and earnings for the full year 2013 include after-tax charges totaling $729 million, or 83 cents per share - related to increased cost estimates for construction of the Kemper project. Earnings for the full year 2013 also include an after-tax charge of $16 million, or 2 cents per share, for the restructuring of a leveraged lease investment recorded in the first quarter of Earnings for the fourth quarter and full year 2013 also include $12 million, or 2 cents per share, of insurance recovery related to the March 2009 litigation settlement agreement with MC Asset Recovery, LLC. Excluding these items, earnings for the fourth quarter and full year 2014 were 38 cents and $2.80 per share, respectively, compared with 48 cents and $2.71 per share, respectively, for the same periods in Earnings for the fourth quarter and full year 2014 were positively influenced by retail revenue effects at Southern Company s traditional operating companies, offset by increased operating and maintenance expenses. Full-year 2014 earnings were further positively influenced by closer-to-normal weather and increased customer growth compared with the full year Southern Company had one of its best years ever serving customers in 2014, said Southern Company Chairman, President and CEO Thomas A. Fanning. We continued to lead the industry in customer satisfaction and set several all-time records for system reliability. Our commitment to providing clean, safe, reliable and affordable electricity - while making communities better off because we re there - remains the cornerstone of our business.

3 Fanning said economic growth was especially strong during the second half of 2014, led by manufacturing activity, growth in exports and a stronger domestic economy. Operating revenues for the full year 2014 were $18.5 billion, compared with $17.1 billion in 2013, an increase of 8.3 percent. Fourth-quarter 2014 operating revenues were $4.0 billion, compared with $3.9 billion for the same period in 2013, an increase of 3.1 percent. Kilowatt-hour sales to retail customers in the Southern Company system's four-state service area increased 3.3 percent in 2014, compared with Residential energy sales increased 5.5 percent, commercial energy sales increased 1.3 percent and industrial energy sales increased 3.3 percent. Total energy sales to the Southern Company system s customers in the Southeast, including wholesale sales, increased 6.0 percent in 2014, compared with Southern Company s financial analyst call will begin at 1 p.m. Eastern time today, during which Fanning and Chief Financial Officer Art P. Beattie will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at investor.southerncompany.com/webcasts. A replay of the webcast will be available at the site for 12 months. Southern Company has also posted on its website detailed financial information on its fourth-quarter and full-year performance. These materials are available at With more than 4.5 million customers and approximately 46,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast through its subsidiaries. A leading U.S. producer of clean, safe, reliable and affordable 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 energy innovation, excellent customer service, high reliability and retail electric prices that are below the national average. Southern Company and its subsidiaries are leading the nation's nuclear renaissance through the construction of the first new nuclear units to be built in a generation of Americans and are demonstrating their commitment to energy innovation through the development of a state-of-the-art coal gasification plant. Southern Company has been recognized by the U.S. Department of Defense and G.I. Jobs magazine as a top military employer, listed by DiversityInc as a top company for Blacks and designated a 2013 Top Employer for Hispanics by Hispanic Network. The company received the Edison Award from the Edison Electric Institute for its leadership in new nuclear development, was named Electric Light & Power magazine's Utility of the Year for 2012 and is continually ranked among the top utilities in Fortune's annual World s Most Admired Electric and Gas Utility rankings. Visit our website at # # #

4 Financial Highlights (In Millions of Dollars Except Earnings Per Share) Page Consolidated Earnings As Reported (See ) Traditional Operating Companies $ 257 $ 387 $ 1,814 $ 1,486 Southern Power Total ,986 1,652 Parent Company and Other (1) 3 (6) (8) Net Income As Reported $ 300 $ 414 $ 1,980 $ 1,644 Basic Earnings Per Share $ 0.33 $ 0.47 $ 2.21 $ 1.88 Average Shares Outstanding (in millions) End of Period Shares Outstanding (in millions) Consolidated Earnings Excluding Items (See ) Net Income As Reported $ 300 $ 414 $ 1,980 $ 1,644 Estimated Loss on Kemper IGCC Leveraged Lease Restructure 16 MC Asset Recovery Insurance Settlement, net (12) (12) Net Income Excluding Items $ 343 $ 427 $ 2,516 $ 2,377 Basic Earnings Per Share Excluding Items $ 0.38 $ 0.48 $ 2.80 $ For the three and twelve months ended 31, 2014 and 2013, dilution does not change basic earnings per share by more than 1 cent and is not material. - The estimated probable losses relating to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi (Kemper IGCC) significantly impacted the presentation of earnings and earnings per share for the three and twelve months ended 31, 2014 and 2013 and any similar charges may occur with uncertain frequency. - The charge related to the restructuring of a leveraged lease investment that was completed on March 1, 2013 impacted the presentation of earnings and earnings per share for the twelve months ended 31, 2013 and similar charges are not expected to occur with any regularity in the future. - Earnings for the three and twelve months ended 31, 2013 include an insurance settlement related to the March 2009 litigation settlement with MC Asset Recovery, LLC and similar insurance recoveries are not expected to occur with any regularity in the future. accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-K.

5 Significant Factors Impacting EPS Page Change Change Consolidated Earnings Per Share As Reported (See ) $ 0.33 $ 0.47 $ (0.14) $ 2.21 $ 1.88 $ 0.33 Significant Factors: Traditional Operating Companies (0.14) 0.38 Southern Power Parent Company and Other (0.01) Increase in Shares (0.01) (0.06) Total As Reported $ (0.14) $ Change Change Consolidated Earnings Per Share Excluding Items (See ) $ 0.38 $ 0.48 $ (0.10) $ 2.80 $ 2.71 $ 0.09 Total As Reported (0.14) 0.33 Estimated Loss on Kemper IGCC 0.02 (0.24) Leveraged Lease Restructure (0.02) MC Asset Recovery Insurance Settlement, net Total Excluding Items $ (0.10) $ For the three and twelve months ended 31, 2014 and 2013, dilution does not change basic earnings per share by more than 1 cent and is not material. - The estimated probable losses relating to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi (Kemper IGCC) significantly impacted the presentation of earnings and earnings per share for the three and twelve months ended 31, 2014 and 2013 and any similar charges may occur with uncertain frequency. - The charge related to the restructuring of a leveraged lease investment that was completed on March 1, 2013 impacted the presentation of earnings and earnings per share for the twelve months ended 31, 2013 and similar charges are not expected to occur with any regularity in the future. - Earnings for the three and twelve months ended 31, 2013 include an insurance settlement related to the March 2009 litigation settlement with MC Asset Recovery, LLC and similar insurance recoveries are not expected to occur with any regularity in the future. accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-K.

6 Description Southern Company EPS Earnings Analysis 2014 vs Page vs Retail Sales 3 Retail Revenue Impacts 7 23 Weather 17 Wholesale Revenues 2 Other Operating Revenues 1 2 Non-Fuel O&M (21) (33) Depreciation and Amortization 4 Taxes Other Than Income Taxes (1) (4) Other Income and Deductions 4 Interest Expense (1) Income Taxes (1) Total Traditional Operating Companies (12) 14 Southern Power 2 1 Parent and Other 1 Increase in Shares (1) (6) Total Change in EPS (x-items) (10) 9 Estimated Loss on Kemper IGCC (2) 24 Leveraged Lease Restructure 2 MC Asset Recovery Insurance Settlement (2) (2) Total Change in EPS (As Reported) (14) 33 - The estimated probable losses relating to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi (Kemper IGCC) significantly impacted the presentation of earnings and earnings per share for the three and twelve months ended 31, 2014 and 2013 and any similar charges may occur with uncertain frequency. - The charge related to the restructuring of a leveraged lease investment that was completed on March 1, 2013 impacted the presentation of earnings and earnings per share for the twelve months ended 31, 2013 and similar charges are not expected to occur with any regularity in the future. - Earnings for the three and twelve months ended 31, 2013 include an insurance settlement related to the March 2009 litigation settlement with MC Asset Recovery, LLC and similar insurance recoveries are not expected to occur with any regularity in the future. accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-K.

7 Consolidated Earnings As Reported (In Millions of Dollars) Page Change Change Income Account- Retail Revenues- Fuel $ 1,141 $ 1,160 $ (19) $ 5,396 $ 4,990 $ 406 Non-Fuel 2,255 2, ,186 9, Wholesale Revenues ,184 1, Other Electric Revenues Non-regulated Operating Revenues Total Revenues 4,049 3, ,499 17,087 1,412 Fuel and Purchased Power 1,398 1, ,677 5, Non-Fuel O & M 1, ,356 3, Depreciation and Amortization (55) 1,939 1, Taxes Other Than Income Taxes Estimated Loss on Kemper IGCC ,180 (312) Total Operating Expenses 3,457 3, ,826 13, Operating Income (207) 3,673 3, Allowance for Equity Funds Used During Construction Interest Income Interest Expense, Net of Amounts Capitalized Other Income (Expense), net (28) (36) 8 (62) (81) 19 Income Taxes (94) Net Income (114) 2,048 1, Dividends on Preferred and Preference Stock of Subsidiaries NET INCOME AFTER DIVIDENDS ON PREFERRED AND PREFERENCE STOCK $ 300 $ 414 $ (114) $ 1,980 $ 1,644 $ Certain prior year data has been reclassified to conform with current year presentation. accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-K.

8 Kilowatt-Hour Sales (In Millions of KWHs) Page 7 As Reported Change Weather Adjusted Change Change Kilowatt-Hour Sales- Total Sales 44,775 43, % 194, , % Weather Adjusted Change Total Retail Sales- 37,727 37, % 0.6 % 161, , % 0.9 % Residential 11,782 11,805 (0.2)% (0.2)% 53,347 50, % % Commercial 12,349 12,442 (0.8)% (0.3)% 53,242 52, % (0.4)% Industrial 13,369 13, % 2.3 % 54,140 52, % 3.3 % Other % 2.5 % % 0.7 % Total Wholesale Sales 7,048 6, % N/A 32,786 26, % N/A

9 Financial Overview As Reported (In Millions of Dollars) Page % Change % Change Consolidated Operating Revenues $ 4,049 $ 3, % $ 18,499 $ 17, % Earnings Before Income Taxes (33.4)% 3,035 2, % Net Income Available to Common (27.5)% 1,980 1, % Alabama Power Operating Revenues $ 1,328 $ 1, % $ 5,942 $ 5, % Earnings Before Income Taxes (11.0)% 1,312 1, % Net Income Available to Common (15.0)% % Georgia Power Operating Revenues $ 1,902 $ 1, % $ 8,988 $ 8, % Earnings Before Income Taxes (41.5)% 1,971 1, % Net Income Available to Common (40.9)% 1,225 1, % Gulf Power Operating Revenues $ 361 $ % $ 1,590 $ 1, % Earnings Before Income Taxes (12.2)% % Net Income Available to Common (9.9)% % Mississippi Power Operating Revenues $ 278 $ % $ 1,275 $ 1, % Earnings (Loss) Before Income Taxes (29) 1 N/M (585) (843) 30.6 % Net Income (Loss) Available to Common (7) 13 N/M (312) (477) 34.5 % Southern Power Operating Revenues $ 386 $ % $ 1,501 $ 1, % Earnings Before Income Taxes (43.4)% (18.7)% Net Income Available to Common % % N/M - not meaningful - Mississippi Power Company restated its 2012 financial statements to reflect a pre-tax charge to income for the estimated probable loss on Kemper IGCC of $78 million ($48 million after tax) in Southern Company evaluated the portion of the estimated probable loss related to 2012 and concluded it was not material to Southern Company. Therefore, Southern Company reflected the pre-tax charge to income for this portion of the estimated probable loss related to 2012 in the first quarter accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-K.