CERTIFICATE OF NOTIFICATION
Filed by
SOUTHERN ELECTRIC RAILROAD COMPANY
Pursuant to Order of the Securities and Exchange Commission dated January 13,
1993 (HCAR No. 35-25734) in the matter of File No. 70-7911.
The following information is provided in response to the requirements of the
above stated order.
(1) Balance Sheet and Income Statement at June 30, 1997. Reference is
made to Exhibit A filed herewith.
(2) Reasonable detail concerning the activities undertaken by Railroad
Subsidiary during the applicable six-month period, including
commencement of construction of any Rail Line and information
concerning such Rail Line, such as its location and the Operating
Company and generating facility to be served thereby.
Southern Electric Railroad Company's Miller Railroad Project
This project is scheduled to begin construction in September, 1997.
Detailed engineering, regulatory, environmental and other required
activities have been ongoing during the previous six-month period.
This project consists of the construction of a track from the
Norfolk-Southern (NS) main line track near Bryan, Alabama to connect
with the Alabama Power Miller Steam Plant industry track. The project
will provide increased rail competition through the addition of NS rail
service to the Plant. Such additional rail service will also make
available new sources of coal supply to meet the Plant's fuel
requirements.
Alabama estimates that the project will result in fuel cost savings of
approximately $25 million per year over the period 1999 through 2004.
This fuel cost savings was calculated based upon coal supplies required
for all four units burning low sulfur, Powder River Basin coal and the
accompanying anticipated reductions in fuel cost. Alabama considers
that additional cost savings beyond 2004, in amounts not yet
determined, will also be realized from the project.
Southern Electric Railroad Company's McIntosh Railroad Project for
Savannah Electric and Power Company
The project was completed in July, 1997 and the line is in service. The
asset conveyance to Savannah Electric and Power Company has not yet
been completed.
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Southern Electric Railroad Company's Turnout Project for Southern
Electric Generating Company
The project was completed in November, 1995 and the line is in service.
The asset conveyance to Southern Electric Generating Company (SEGCO)
has been completed. SEGCO granted an easement to Southern Electric
Railroad Company in conjunction with this transfer.
Southern Electric Generating Company (SEGCO)
SEGCO transferred operation and maintenance responsibility for its
Gaston line (known as SEGCO Railroad) to the Southern Electric Railroad
Company (SERCO) effective August 9, 1995. SEGCO granted an easement to
SERCO in conjunction with this transfer.
(3) Reference is made to Certificates of Notification previously filed with
the Commission dated February 5, 1993 relating to Alabama Power
Company; May 18, 1993 relating to Savannah Electric and Power Company;
and November 28, 1994 relating to Southern Electric Generating Company.
(4) No information to report at this time.
Dated August 15, 1997
SOUTHERN ELECTRIC RAILROAD COMPANY
By /s/ Wayne Boston
Wayne Boston
` Assistant Secretary
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<CAPTION>
Exhibit A
THE SOUTHERN ELECTRIC RAILROAD COMPANY
FINANCIAL STATEMENTS
JUNE 1997
Contents Page No.
<S> <C>
Income Statement 1
Balance Sheet 2
Balance Sheet Details 3
Notes to the Financial Statements 5
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5
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<CAPTION>
SOUTHERN ELECTRIC RAILROAD COMPANY
INCOME STATEMENT
JUNE 30, 1997
REVENUE
<S> <C>
SERVICES RENDERED $65,761.22
TOTAL REVENUE 65,761.22
EXPENSES
TAXES OTHER THAN INCOME TAX 676.25
LEGAL EXPENSES 4,022.08
SCS FEES AND EXPENSES 28,694.12
OUTSIDE SERVICES 31,100.44
CORPORATE FEES AND EXPENSES 1,168.33
MISCELLANEOUS EXPENSES 100.00
-------------
TOTAL EXPENSES 65,761.22
NET INCOME (LOSS) $ 0.00
==============
</TABLE>
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<TABLE>
<CAPTION>
SOUTHERN ELECTRIC RAILROAD COMPANY
BALANCE SHEET
JUNE 30, 1997
ASSETS AND OTHER DEBITS
CURRENTS ASSETS:
<S> <C>
CASH $ 86,209.27
ACCOUNTS RECEIVABLE-ASSOC.COMPANIES 195,027.60
------------
TOTAL CURRENT ASSETS 281,236.87
DEFERRED DEBITS
DEFERRED DEBITS-UNBILLED RETENTION 174,448.85
TOTAL ASSETS AND OTHER DEBITS $455,685.72
LIABILITIES AND STOCKHOLDER EQUITY
STOCKHOLDER EQUITY:
CAPITAL STOCK - 5,000 SHARES at $1 $ 5,000.00
RETAINED EARNINGS 0.00
--------------
TOTAL STOCKHOLDER EQUITY 5,000.00
CURRENT LIABILITIES:
ACCOUNT PAYABLE - NON-ASSOC. COMPANIES 9,447.67
ACCOUNTS PAYABLE - ASSOC. COS. 266,789.20
TOTAL CURRENT LIABILITIES 276,236.87
DEFERRED CREDITS:
DEFERRED CREDITS-CONSTRUCTION RETENTION 174,448.85
TOTAL LIABILITIES AND STOCKHOLDER EQUITY $455,685.72
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE BALANCE SHEETS.
</TABLE>
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<TABLE>
<CAPTION>
SOUTHERN ELECTRIC RAILROAD COMPANY
BALANCE SHEET DETAILS
JUNE 30, 1997
CONSTRUCTION-WORK-IN-PROGRESS
CONSTRUCTION-WORK-IN-PROGRESS (CWIP):
<S> <C>
ALABAMA POWER COMPANY $5,048,887.67
ALABAMA POWER COMPANY - EASEMENT 381,755.09
ALABAMA POWER COMPANY - NS PROJECT 481,644.44
SAVANNAH ELECTRIC AND POWER COMPANY 3,442,090.89
SOUTHERN ELECTRIC GENERATING COMPANY 1,072,096.77
--------------
TOTAL CWIP 10,426,474.86
LESS: CWIP BILLED
ALABAMA POWER COMPANY $5,912,287.20
SAVANNAH ELECTRIC AND POWER CO. 3,442,090.89
SOUTHERN ELECTRIC GENERATING COMPANY 1,072,096.77
--------------
TOTAL CWIP BILLED 10,426,474.86
NET CONSTRUCTION-WORK-IN-PROGRESS $ 0 .00
===================
CURRENT ASSETS
CASH - NATIONSBANK $86,209.27
==========
ACCOUNTS RECEIVABLE
ALABAMA POWER COMPANY $ 160,868.69
SAVANNAH ELECTRIC AND POWER COMPANY 26,280.06
SOUTHERN ELECTRIC GENERATING COMPANY 7,878.85
-------------
TOTAL ACCOUNTS RECEIVABLE $195,027.60
DEFERRED DEBITS
UNBILLED CONSTRUCTION RETENTION $174,448.85
TOTAL DEFERRED DEBITS $174,448.85
</TABLE>
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<TABLE>
<CAPTION>
CURRENT LIABILITIES
<S> <C>
SOUTHERN COMPANY SERVICES, INC. $258,711.20
ALABAMA POWER COMPANY 2,746.60
GEORGIA POWER COMPANY 3,805.80
GULF POWER COMPANY 552.40
MISSISSIPPI POWER COMPANY 490.22
SAVANNAH ELECTRIC & POWER COMPANY 200.11
SOUTHERN ELECTRIC GENERATING COMPANY 282.87
---------------
TOTAL ASSOCIATED COMPANIES 266,789.20
NON-ASSOCIATED COMPANIES 9,447.67
TOTAL CURRENT LIABILITIES $276,236.87
DEFERRED CREDITS
CONSTRUCTION RETENTION $174,448.85
</TABLE>
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SOUTHERN ELECTRIC RAILROAD COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
1. General Description
Southern Electric Railroad Company (SERC) is a wholly owned subsidiary
of The Southern Company (Southern). Southern is registered as a holding
company under the Public Utility Holding Company Act of 1935 (PUHCA).
Other companies owned by Southern include five operating companies, a
system service company, Southern Energy, Inc. (formerly Southern
Electric International, Inc.), The Southern Development and Investment
Group, Inc., Southern Nuclear Operating Company, Southern Electric
Bahamas Holdings Ltd., Southern Electric International Holdings, Inc.
and Southern Electric Wholesale Generators.
SERC is currently designing and constructing railroad facilities to be
owned by various operating company subsidiaries of Southern. During the
construction period, construction work in progress is reflected on the
books of the operating company. However, SERC continues to hold title.
After construction is completed, SERC will transfer title to the
appropriate operating company but hold an easement granting sole
authority to operate and maintain the facilities. All services are
provided at cost.
2. SERC has authorized capital stock of 100,000 shares of one dollar
($1.00) par value common stock.
Southern owns all 5,000 shares currently outstanding.
