SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
----------------
FORM U5S
ANNUAL REPORT
For the Fiscal Year Ended December 31, 1997
Filed pursuant to the Public Utility Holding Company Act of 1935
by
THE SOUTHERN COMPANY
270 PEACHTREE STREET, N. W.
ATLANTA, GEORGIA 30303
<PAGE>
THE SOUTHERN COMPANY
FORM U5S
1997
TABLE OF CONTENTS
ITEM PAGE NUMBER
---- ------------
1. System Companies and Investments Therein as of
December 31, 1997 1
2. Acquisitions or Sales of Utility Assets 5
3 Issue, Sale, Pledge, Guarantee or Assumptions
of System Securities 5
4. Acquisition, Redemption or Retirement of System
Securities 6
5. Investments in Securities of Nonsystem Companies 8
6. Officers and Directors 9
7. Contributions and Public Relations 43
8. Service, Sales and Construction Contracts 46
9. Wholesale Generators and Foreign Utility Companies 47
10. Financial Statements and Exhibits A
<PAGE>
<TABLE>
<CAPTION>
ITEMS
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997.
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Name of Company Number of Percentage Issuer
(Add abbreviation Common of Voting Book Owner's
used herein) Shares Owned Power Value Book Value
- ----------------- ------------ ----------- ----- ----------
In Thousands
THE SOUTHERN COMPANY
(SOUTHERN) None None n/a n/a
ALABAMA POWER COMPANY
(ALABAMA) 5,608,955 100 $2,750,569 $2,750,569
Alabama Property Company 1,000 100 9,401 9,401
Alabama Power Capital Trust I
(ALABAMA TRUST I) n/a n/a 3,000 3,000
Alabama Power Capital Trust II
(ALABAMA TRUST II) n/a n/a 6,186 6,186
Southern Electric
Generating
Company (SEGCO) (a) 164,000 50 24,973 24,973
ENERGIA DE NUEVO LEON, S. A.
DE C. V. 358 33 1/3 - -
GEORGIA POWER COMPANY
(GEORGIA) 7,761,500 100 4,019,728 4,019,728
SEGCO (a) 164,000 50 24,973 24,973
Piedmont-Forrest
Corporation (PIEDMONT) 100,000 100 8,269 8,269
12,644 (b) 12,644
Georgia Power LP Holdings Corp.
(GEORGIA POWER
HOLDINGS) 500 100 - -
Georgia Power Capital, L.P.
(GEORGIA CAPITAL) n/a n/a 3,892 3,892
Georgia Power Capital Trust I
(GEORGIA TRUST I) n/a n/a 7,632 7,632
Georgia Power Capital Trust II
(GEORGIA TRUST II) n/a n/a 5,807 5,807
Georgia Power Capital Trust III
(GEORGIA TRUST III) n/a n/a 6,105 6,105
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997.
- ------------------------------------------------------------------------
(Continued)
<S> <C> <C> <C> <C>
Name of Company Number of Percentage Issuer
(Add abbreviation Common of Voting Book Owner's
used herein) Shares Owned Power Value Book Value
- ---------------- ------------ --------- ------ ----------
In Thousands
GULF POWER COMPANY (GULF) 992,717 100 428,718 428,718
Gulf Power Capital Trust I
(GULF TRUST I) n/a n/a 1,324 1,324
MISSISSIPPI POWER COMPANY
(MISSISSIPPI) 1,121,000 100 387,824 387,824
Mississippi Power Capital Trust I
(MISSISSIPPI TRUST I) n/a n/a 1,082 1,082
MOBILE ENERGY SERVICES
HOLDINGS, INC. (MESH) 1,000 100 14,888 14,888
Mobile Energy Services
Company, LLC (MESCO) n/a 99 67,020 67,020
SAVANNAH ELECTRIC AND
POWER COMPANY
(SAVANNAH) 10,844,635 100 $175,631 $175,631
SEI HOLDINGS, INC. (SEIH) 1,000 100 2,132,062 2,132,062
ASOCIADOS DE ELECTRICIDAD 11,999 (c) (d) (d)
SEI Y ASOCIADOS DE ARGENTINA S. A. 9,840,000 (c) (d) (d)
Hidroelectrica Alicura, S. A. 166,380,000 (c) (d) (d)
SOUTHERN COMPANY CAPITAL
FUNDING, INC. n/a 100 29,176 29,176
SOUTHERN ELECTRIC, INC. 1,000 100 17 17
SOUTHERN ENERGY FINANCE
COMPANY, INC. 1,000 100 108,700 108,700
EPZ Lease, Inc. 1,000 (c) (d) (d)
EPZ Lease, L.L.C. None (c) (d) (d)
EPZ Lease Holding A, L.L.C. None (c) (d) (d)
EPZ Lease Holding B, L.L.C. None (c) (d) (d)
EPZ Lease Holding C, L.L.C. None (c) (d) (d)
Southern Energy Clairton, Inc. (e) 1,000 (c) (d) (d)
Southern Energy Clairton, L.L.C. (e) 1,000 (c) (d) (d)
Southern Energy Clairton 2, Inc. (e) 1,000 (c) (d) (d)
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997.
- ------------------------------------------------------------------------
(Continued)
<S> <C> <C> <C> <C>
Name of Company Number of Percentage Issuer
(Add abbreviation Common of Voting Book Owner's
used herein) Shares Owned Power Value Book Value
- ----------- ------------ ----------- ------ -----------
In Thousands
SOUTHERN ENERGY, INC. (Southern
Energy) 1,000 100 70,731 70,731
SEI Operadora de Argentina, S. A. 11,999 (c) (d) (d)
Southern Electric International-
Asia, Inc 1,000 (c) (d) (d)
Southern Electric International, GmbH 500 (c) (d) (d)
SOUTHERN ENERGY INTERNATIONAL, 1,000 100 2,466,040 2,466,040
INC.
CAYMAN ENERGY TRADERS 1 (c) (d) (d)
Southern Electric do Brazil Participacoes, Ltda n/a (c) (d) (d)
Companhia Energetica de Minas Gerais (f) n/a (c) (d) (d)
SOUTHERN ENERGY - ASIA, INC. 1,000 100 1,422,400 1,422,400
Consolidated Electric Power Asia
Limited (CEPA) (g) 1,066,124,419 (c) (d) (d)
SOUTHERN ENERGY DO BRAZIL, LTDA n/a 99.85 50 50
SOUTHERN ENERGY E ASSOCIADOS
PARTICIPACOES, S.A. n/a 100 81,000 81,000
SOUTHERN ENERGY - NEWCO 2, INC. 1,000 100 218,897 218,897
SEI Chile, S. A. 999 (c) (d) (d)
Inversiones SEI Chile Limitada n/a (c) (d) (d)
Empresa Electrica del Norte
Grande, S. A. (Edelnor) 158,643,607 (c) (d) (d)
Sitranor S. A. n/a (c) (d) (d)
Electrica SEI Chile Limitada n/a (c) (d) (d)
Energia del Pacifico S. A. 1,000 (c) (d) (d)
SEI Beteiligungs GmbH 1 (c) (d) (d)
P. T. Tarahan Power Company n/a (c) (d) (d)
Southern Electric Bahamas
Holdings, Ltd. 1,000 100 35,541 35,541
Southern Electric Bahamas, Ltd. 5,000 (c) (d) (d)
ICD Utilities Limited 2,500,000 (c) (d) (d)
Freeport Power Company Limited 910,809 (c) (d) (d)
SEI WORLDWIDE HOLDINGS, INC. 1,000 (c) (d) (d)
SEI Worldwide Holdings (Germany) GmbH (h) 3 (c) (d) (d)
SEI GERMANY BEWAG, INC. 1,000 (c) (d) (d)
SEI Worldwide Holdings (Germany) GmbH (h) 3 (c) (d) (d)
Southern Energy Holdings Beteiligungs
gesellschaft mbH (i) 3 (c) (d) (d)
BEWAG (i) 29,120,002 (c) (d) (d)
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997
-------------------------------------------------------------------------
(Continued)
<S> <C> <C> <C> <C>
Name of Company Number of Percentage Issuer
(Add abbreviation Common of Voting Book Owner's
used herein) Shares Owned Power Value Book Value
- --------------- ------------ ---------- ----- ----------
In Thousands
SOUTHERN ELECTRIC INTERNATIONAL-
EUROPE, INC. 1,000 100 367,197 369,197
The Southern Company - Europe plc 50,000 (c) (d) (d)
Southern Electric International Finance, Inc. 1,000 (c) (d) (d)
Southern Energy Development - Europe Limited 2 (c) (d) (d)
Southern Electric International - Netherlands B.V. 55 (c) (d) (d)
SWEB Holdings Limited 150,000 (c) (d) (d)
Southern Investments UK plc 500,400,587 (c) (d) (d)
South Western Electricity plc 113,989,525 (c) (d) (d)
SOUTHERN ELECTRIC INTERNATIONAL
TRINIDAD, INC. 1,000 100 39,126 39,126
The Power Generation
Company of Trinidad
and Tobago Limited 188,370,000 (c) (d) (d)
SOUTHERN ENERGY NORTH
AMERICA, INC. 500 100 118,474 118,474
SEI Birchwood, Inc. 1,000 (c) (d) (d)
Birchwood Power Partners, L. P. n/a (c) (d) (d)
Greenhost, Inc. 50 50 (d) (d)
SEI Hawaiian Cogenerators, Inc. 1,000 (c) (d) (d)
SEI State Line, Inc. 1,000 (c) (d) (d)
State Line Holding Corporation (j) 1,000 (c) (d) (d)
State Line Energy, L.L.C. (j) n/a (c) (d) (d)
Southern Energy - Cajun, Inc. 10,000 (c) (d) (d)
Louisiana Generating L.L.C. (j) n/a (c) (d) (d)
Southern Energy Trading and Marketing, Inc. 1,000 (c) (d) (d)
Southern Energy Retail Trading and
Marketing, Inc. (j) 1,000 (c) (d) (d)
SC Energy Ventures, Inc. (j) 1,000 (c) (d) (d)
SC Ashwood Holding, Inc. (j) 1,000 (c) (d) (d)
Southern Company Energy Marketing G.P., L.L.C. (j) n/a (c) (d) (d)
Southern Company Energy Marketing L.P. (j) n/a (c) (d) (d)
SOUTHERN COMPANY
SERVICES, INC. (SCS) 14,500 100 875 875
SOUTHERN COMMUNICATIONS
SERVICES, INC. (Southern
Communications) 500 100 101,725 101,725
67,000 (k) 67,000
SOUTHERN ELECTRIC RAILROAD
COMPANY (SERC) 5,000 100 5 5
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1997
- ------------------------------------------------------------------------
(Continued)
<S> <C> <C> <C> <C>
Name of Company Number of Percentage Issuer
(Add abbreviation Common of Voting Book Owner's
used herein) Shares Owned Power Value Book Value
---------------- ------------- --------- ------ -----------
In Thousands
SOUTHERN INFORMATION HOLDING
COMPANY, INC. 1,000 100 1,382 1,382
Southern Information 1, Inc. 1,000 100 1 1
Southern Information 2, Inc. 1,000 100 1 1
SOUTHERN NUCLEAR OPERATING
COMPANY, INC. (Southern Nuclear) 1,000 100 1,862 1,862
5,000 (l) 5,000
SOUTHERN TELECOM HOLDING
COMPANY, INC. 1,000 100 3,563 3,563
Southern Telecom 1, Inc. 1,000 100 1 1
Southern Telecom 2, Inc. 1,000 100 1 1
SOUTHERN COMPANY ENERGY
SOLUTIONS, INC. (Energy 500 100 20,428 20,428
Solutions) (formerly The Southern Development
and Investment Group, Inc.)
Notes to Item 1:
(a) SEGCO is 50% owned by ALABAMA and 50% owned by GEORGIA.
The amounts shown reflect the respective ownership interests of each company.
(b) Promissory note due on demand; interest rate, based on GEORGIA's embedded cost of capital,
was 9.66% at January 1, 1998.
(c) This information is contained in Item 9, Part I(a).
(d) This information is filed confidentially pursuant to Rule 104.
(e) Southern Energy Clairton, Inc. Southern Energy Clairton, L.L.C., and Southern Energy Clairton 2, Inc. were all
incorporated in Delaware, in May, 1997.
(f) Incorporated in Brazil, in May, 1952.
(g) Incorporated in Bermuda, in 1993.
(h) SEI Worldwide Holdings (Germany) GmbH incorporated in Germany, in 1997.
(i) Southern Energy Holdings Beteiligungsgesellschaft mbH incorporated in
Germany, in July, 1997; and BEWAG incorporated in Germany, in 1992.
(j) State Line Holding Corporation incorporated in Delaware, in July, 1997; State Line Energy, L.L.C. incorporated
in Indiana, in April, 1996; Louisiana Generating L.L.C. incorporated in Delaware, in June, 1996; Southern
Energy Retail Trading and Marketing, Inc. incorporated in Delaware, in February, 1997; SC Energy Ventures,
Inc. incorporated in Georgia, in August, 1997; SC Ashwood Holding, Inc. incorporated in Georgia, in August,
1997; Southern Company Energy Marketing G.P., L.L.C. incorporated in Delaware, in August, 1997; and Southern
Company Energy Marketing L.P. incorporated in Delaware, in August, 1997.
(k) Unsecured notes payable due on or before December 31, 2000 at an end-of-year interest rate of 7.02%.
(l) Unsecured notes payable due on or before December 31, 2000 at an end-of-year interest rate of 5.70%.
ITEM 2. ACQUISITION OR SALES OF UTILITY ASSETS.
- ------------------------------------------------
NONE.
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES.
- ---------------------------------------------------------------------------
NONE.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
ITEM 4. ACQUISITION, REDEMPTION, OR RETIREMENT OF SYSTEM SECURITIES.
- -------------------------------------------------------------------------
Calendar Year 1997
<S> <C> <C> <C>
Name of Company Indicate
Name of Issuer and Acquiring, Redeeming Number of Shares or Principal Amount Commission
Title of Issue or Retiring Securities Acquired Redeemed Retired Consideration Authorization
------------------- ---------------------- -------- -------- ------- ------------- ------------
(See Note)
ALABAMA:
First Mortgage Bonds
9 1/4% Series due 2021 ALABAMA None $74,951,000 $74,951,000 $74,951,000
Preferred Stock
7.60% Series ALABAMA None $100,000,000 $100,000,000 $100,000,000
5.96% Series ALABAMA None $7,000,000 $7,000,000 $7,235,900
6.88% Series ALABAMA None $5,000,000 $5,000,000 $5,145,000
7.60% Series ALABAMA None $50,000,000 $50,000,000 $50,000,000
4.20% Series ALABAMA $22,880,000 None $22,880,000 $17,967,316
GEORGIA:
First Mortgage Bonds
8.625% Series due 2022 GEORGIA None $60,258,000 $60,258,000 $60,258,000
Pollution Control Revenue Bonds
8.375% Series due 2017 GEORGIA None $49,600,000 $49,600,000 $49,600,000
8.375% Series due 2017 GEORGIA None $20,800,000 $20,800,000 $20,800,000
8.375% Series due 2017 GEORGIA None $19,600,000 $19,600,000 $19,600,000
5.70% Series due 2004 GEORGIA None $12,800,000 $12,800,000 $12,800,000
5.70% Series due 2004 GEORGIA None $26,000,000 $26,000,000 $26,000,000
6.20% Series due 2022 GEORGIA None $38,000,000 $38,000,000 $38,000,000
6.20% Series due 2022 GEORGIA None $37,000,000 $37,000,000 $37,000,000
6.20% Series due 2022 GEORGIA None $5,700,000 $5,700,000 $5,700,000
6.20% Series due 2022 GEORGIA None $7,700,000 $7,700,000 $7,700,000
6.20% Series due 2022 GEORGIA None $17,500,000 $17,500,000 $17,500,000
9 3/8% Series due 2017 GEORGIA None $50,000,000 $50,000,000 $50,000,000
Preferred Stock
$1.90 Series GEORGIA None $49,027,500 $49,027,500 $49,027,500
$7.72 Series GEORGIA None $30,000,000 $30,000,000 $31,053,000
$1.9875 Series GEORGIA None $54,155,000 $54,155,000 $54,155,000
$1.9375 Series GEORGIA None $58,757,500 $58,757,500 $58,757,500
$5.00 Series GEORGIA $963,600 None $963,600 $917,733
$4.92 Series GEORGIA $7,672,300 None $7,672,300 $7,475,122
$4.60 Series GEORGIA $27,429,800 None $27,429,800 $23,584,142
$4.96 Series GEORGIA $5,810,400 None $5,810,400 $5,706,975
$4.60 1962 Series GEORGIA $5,192,000 None $5,192,000 $4,729,393
$4.60 1963 Series GEORGIA $4,448,800 None $4,448,800 $4,052,412
$4.60 1964 Series GEORGIA $3,899,500 None $3,899,500 $3,552,055
$4.72 Series GEORGIA $4,246,900 None $4,246,900 $3,969,577
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
ITEM 4. ACQUISITION, REDEMPTION, OR RETIREMENT OF SYSTEM SECURITIES.
- -------------------------------------------------------------------------
Calendar Year 1997
<S> <C> <C> <C>
Name of Company Indicate
Name of Issuer and Acquiring, Redeeming Number of Shares or Principal Amount Commission
Title of Issue or Retiring Securities Acquired Redeemed Retired Consideration Authorization
------------------ ---------------------- ------- -------- ------- ------------ -------------
(See Note)
$5.64 Series GEORGIA $5,768,200 None $5,768,200 $5,768,200
Series K Variable Rate GEORGIA $34,321,000 None $34,321,000 $35,111,756
Series L Variable Rate GEORGIA $35,787,075 None $35,787,075 $35,486,464
$1.925 Series GEORGIA None $28,912,500 $28,912,500 $28,912,500
GULF:
First Mortgage Bonds
6 7/8% Series due 1997 GULF None None $25,000,000 $25,000,000
Pollution Control Revenue Bonds
8.25% Series due 2017 GULF None $32,000,000 $32,000,000 $32,000,000
6.75% Series due 2022 GULF None $8,930,000 $8,930,000 $8,930,000
Preferred Stock
7.88% Series GULF None 50,000 50,000 $5,000,000
7.52% Series GULF None 50,000 50,000 $5,000,000
7.00% Series GULF None 580,000 580,000 $14,500,000
7.30% Series GULF None 600,000 600,000 $15,000,000
4.64% Series GULF 38,473 None 38,473 $3,336,763
5.16% Series GULF 36,426 None 36,426 $3,642,600
5.44% Series GULF 33,716 None 33,716 $3,371,600
6.72% Series GULF 453,571 None 453,571 $11,339,275
Adjustable Rate GULF 568,440 None 568,440 $14,211,000
MISSISSIPPI:
Pollution Control Bonds
5.80% Series due 2007 MISSISSIPPI None $10,000 None $10,000
Preferred Stock
4.40% Series MISSISSIPPI None $3,052,400 $3,052,400 $2,673,192
4.60% Series MISSISSIPPI None $1,136,000 $1,136,000 $997,214
4.72% Series MISSISSIPPI None $3,330,000 $3,330,000 $3,157,810
7.25% Series MISSISSIPPI None $35,000,000 $35,000,000 $35,232,603
SAVANNAH:
Pollution Control Bonds
6 3/4% Series SAVANNAH None $13,870,000 $13,870,000 $14,147,400
Note to Item 4: All transactions exempt pursuant to Rule 42(b)(2), (4) or (5) or
authorized in File No. 70-8095 or in the respective proceedings relating to the
issuance and sale of preferred stock.
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES.
- -----------------------------------------------------------
<S> <C> <C> <C>
Number of
Shares or Carrying
Principal Value
Name of Owner Name of Issuer Amount Owned to Owner
- ------------- -------------- ------------ --------
ALABAMA (one item) (1) 204 shares $1
ALABAMA (four items) (2) $654,000 $654,000
GEORGIA (one item) (3) $2,750,000 $2,750,000
GULF (five items) (1) 165 shares $1
Energy Solutions (one item) (4) 130,381 shares $1
</TABLE>
Notes to Item 5:
(1) Securities representing bankruptcy distributions applicable to
obligations of customers incurred in the ordinary course of business.
(2) Debt securities issued by instrumentalities of political subdivisions
within ALABAMA's service area to build promotional industrial buildings that
will assist in advancing business and industrial development.
(3) Investment made in a private venture capital fund for the purpose of
assisting early-stage and high technology companies located principally in the
Southeast, with a focus on Georgia-based firms. (See File No. 70-8085.)
(4) Represents Energy Solutions investment in Integrated Communication
Systems, Inc. (ICS). ICS is engaged in providing two-way communications over
local telephone lines for a wide range of energy-related services in the
residential and small commercial markets.
8
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- ------------------------------------
PART I.
-------
The following are the abbreviations to be used for principal business address
and positions.
Principal Business Address Code
- ------------------------------------------
270 Peachtree Street
Atlanta, GA 30303 (a)
600 North 18th Street
Birmingham, AL 35291 (b)
241 Ralph McGill Boulevard, N.E.
Atlanta, GA 30308-3374 (c)
500 Bayfront Parkway
Pensacola, FL 32501 (d)
900 Ashwood Parkway
Suite 500
Atlanta, GA 30338 (e)
2992 West Beach Boulevard
Gulfport, MS 39501 (f)
600 East Bay Street
Savannah, GA 31401 (g)
Suipacha 1111 Piso 18
1368 Buenos Aires, Argentina (h)
LN Alem 712 - Piso 7
(1001) Buenos Aires, Argentina (i)
Apoquindo 3721 Office 114
Las Condes, Chile (j)
Avenida Grecia 750
Casilla 1290
Antofagasta, Chile (k)
800 Park Avenue, Aztec West
Almondsbury, Bristol BS12 4SE (l)
64 Perimeter Center East
Atlanta, GA 30346 (m)
42 Inverness Center Parkway
Birmingham, AL 35242 (n)
40 Inverness Center Parkway
Birmingham, AL 35242 (o)
Position Code
- ------------------------------------------
Director D
President P
Chief Executive Officer CEO
Chief Financial Officer CFO
Chief Accounting Officer CAO
Chief Information Officer CIO
Chief Production Officer CPO
Senior Executive Vice President SEVP
Executive Vice President EVP
Senior Vice President SVP
Financial Vice President FVP
Vice President VP
Controller/Comptroller C
Counsel L
Secretary S
Treasurer T
General Manager GM
Managing Director MD
Commissioner M
SOUTHERN
Name and Principal Address (a) Position
- --------------------------------------------
John C. Adams D
755 Lee Street
P. O. Box 272
Alexander City, AL 35011-0272
A. D. Correll D
133 Peachtree Street, N.E.
Atlanta, GA 30303
A. W. Dahlberg D,P,CEO
Paul J. DeNicola (c) D,EVP
Jack Edwards D
P. O. Box 123
Mobile, AL 36601
H. Allen Franklin (c) D,EVP
Bruce S. Gordon D
1095 Avenue of the Americas
New York, NY 10036
L. G. Hardman III D
P. O. Box 149
Commerce, GA 30529
Elmer B. Harris (b) D,EVP
William A. Parker, Jr. D
1380 West Paces Ferry Road, N.W.
Suite 260
Atlanta, GA 30327
William J. Rushton, III D
P. O. Box 2606
Birmingham, AL 35202
Dr. Gloria M. Shatto D
610 Mount Berry Station
Mount Berry, GA 30149
9
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- ----------------------------------
PART I. (Continued)
--------------------
SOUTHERN (continued)
Name and Principal Address (a) Position
- ---------------------------------------------
Gerald J. St. Pe' D
P. O. Box 149
Pascagoula, MS 39568
Herbert Stockham D
P. O. Box 130118
Birmingham, AL 35213
W. L. Westbrook FVP,CFO,T
David M. Ratcliffe SVP
Stephen A. Wakefield SVP,L
David R. Altman VP
Thomas G. Boren (e) VP
Bill M. Guthrie (b) VP
C. Alan Martin VP
John G. Richardson VP
1130 Connecticut Avenue, NW
Washington, DC 20036
Dr. W. Robert Woodall, Jr. VP
W. Dean Hudson (c) C
Tommy Chisholm S
ALABAMA
Name and Principal Address (b) Position
- --------------------------------------------
Whit Armstrong D
P. O. Box 900
Enterprise, AL 36331
A. W. Dahlberg (a) D
Peter V. Gregerson, Sr. D
644 Walnut Street
Gadsden, AL 35901
Bill M. Guthrie (b) D,EVP,CPO
Elmer B. Harris D,P,CEO
Carl E. Jones, Jr. D
P. O. Box 2527
Mobile, AL 36622
Patricia M. King D
1501 South Quintard Avenue
Anniston, AL 36201
James K. Lowder D
2000 Interstate Park Drive
Suite 400
Montgomery, AL 36109
Wallace D. Malone, Jr. D
P. O. Box 2554
Birmingham, AL 35290
William V. Muse D
Auburn University
107 Samford Hall
Auburn, AL 36849
John T. Porter D
1101 Martin L. King, Jr. Dr. S.W.
Birmingham, AL 35211
Robert D. Powers D
202 East Broad Street
Eufaula, AL 36027
C. Dowd Ritter, III D
P. O. Box 11007
Birmingham, AL 35288
John W. Rouse D
P. O. Box 55305
Birmingham, AL 35255
William J. Rushton, III D
P. O. Box 2606
Birmingham, AL 35202
James H. Sanford D
1001 McQueen Smith Road South
Prattville, AL 36066
John C. Webb, IV D
125 W. Washington Street
Demopolis, AL 36732
Banks H. Farris EVP
William B. Hutchins, III EVP,CFO
Charles D. McCrary EVP
Robert A. Buettner SVP,L
Michael D. Garrett SVP
Earl B. Parsons, Jr. SVP
Christopher C. Womack SVP
Art P. Beattie VP,S,T
William W. Cooper VP
James M. Corbitt VP
W. Roy Crow VP
Thomas A. Fanning (c) VP,CIO
C. Stephen Fant VP
Robert Holmes, Jr. VP
Robin A. Hurst VP
J. Bruce Jones VP
C. Alan Martin (a) VP
Donald W. Reese VP
Michael L. Scott VP
Julian H. Smith, Jr. VP
William R. Smith VP
Susan N. Story VP
Anthony J. Topazi VP
Terry H. Waters VP
ALABAMA PROPERTY COMPANY
Name and Principal Address (b) Position
- --------------------------------------------
Elmer B. Harris D,P
William B. Hutchins, III D,VP
Susan N. Story D,VP
Art P. Beattie S,T
10
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
--------------------
GEORGIA
Name and Principal Address (c) Position
- --------------------------------------------
Daniel P. Amos D
1932 Wynnton Road
Columbus, GA
Juanita Baranco D
7060 Jonesboro Road
Morrow, GA 30260
A. W. Dahlberg (a) D
William A. Fickling, Jr. D
P. O. Box 1976
Macon, GA 31202-1976
H. Allen Franklin D,P,CEO
L. G. Hardman III D
P. O. Box 149
Commerce, GA 30529
Warren Y. Jobe D,EVP,T,
CFO
James R. Lientz, Jr. D
P. O. Box 4899
Atlanta, GA 30302-4899
G. Joseph Prendergast D
191 Peachtree Street, N.E.
Atlanta, GA 30303-1757
Herman J. Russell D
504 Fair Street, S.W.
Atlanta, GA 30313
Dr. Gloria M. Shatto D
P. O. Box 490039
Mount Berry, GA 30149-0039
William Jerry Vereen D
P. O. Box 460
Moultrie, GA 31776-0460
Carl Ware D
P. O. Box Drawer 1734
Atlanta, GA 30301
Thomas R. Williams D
3200 Arden Rd. NW
Atlanta, GA 30305
William C. Archer, III EVP
Bill M. Guthrie (b) EVP
Gene R. Hodges EVP
William P. Bowers SVP
Wayne T. Dahlke SVP
James K. Davis SVP
Robert H. Haubein, Jr. SVP
Fred D. Williams SVP
Judy M. Anderson VP,S
Robert L. Boyer VP
M. A. Brown VP
J. L. Conn VP
Fred W. DeMent, Jr. VP
Thomas A. Fanning VP,CIO
J. W. George VP
Leonard J. Haynes VP
Craig S. Lesser VP
J. B. Manley VP
C. Alan Martin (a) VP
J. L. Martin, Jr. VP
Cliff Thrasher VP,C,CAO
James A. Wilson VP
Dr. W. Robert Woodall, Jr. (a) VP
PIEDMONT
Name and Principal Address (c) Position
- --------------------------------------------
H. Allen Franklin D,P
Warren Y. Jobe D,EVP,T
Judy M. Anderson VP,S
GEORGIA POWER HOLDINGS
Name and Principal Address (c) Position
- --------------------------------------------
Warren Y. Jobe D,P,T
Judy M. Anderson VP,S
Charles O. Rawlins (a) VP
SEGCO
Name and Principal Address (b) Position
- --------------------------------------------
Robert L. Boyer (c) D
H. Allen Franklin (c) D,VP
Bill M. Guthrie D,VP
Elmer B. Harris D,P
Robert H. Haubein, Jr. (c) D
William B. Hutchins, III D,VP
Warren Y. Jobe (c) D
Charles D. McCrary D
Earl B. Parsons, Jr. D
Art P. Beattie S,T
11
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
--------------------
GULF
Name and Principal Address (d) Position
- --------------------------------------------
Travis J. Bowden D,P,CEO
Paul J. DeNicola (c) D
Fred C. Donovan D
P. O. Box 13370
Pensacola, FL 32591
W. Deck Hull, Jr. D
P. O. Box 2266
Panama City, FL 32402
Joseph K. Tannehill D
10 Arthur Drive
Lynn Haven, FL 32444
Barbara H. Thames D
1450 Berryhill Road
Milton, FL 32570
F. M. Fisher, Jr. VP
J. E. Hodges, Jr. VP
C. Alan Martin (a) VP
Robert G. Moore VP
Arlan E. Scarbrough VP,CFO
Ronnie R. Labrato C
Warren E. Tate S,T
ENERGIA de NUEVO LEON, S.A. DE C.V.
Name and Principal Address (e) Position
- --------------------------------------------
Marcelo Canales Clarion D
Lazaro Cardenas 2400 Despacho
PD-11 PB Edificia Losoles,
Garza Garcia 66220 N. L. Mexico
William R. Easter D
Jean M. Fauvd D
Lazaro Cardenas 2400 Despacho
PD-11 PB Edificia Losoles,
Garza Garcia 66220 N. L. Mexico
Ismael Garza T. D
Lazaro Cardenas 2400 Despacho
PD-11 PB Edificia Losoles,
Garza Garcia 66220 N. L. Mexico
Tanenguy Le Marechal D
Lazaro Cardenas 2400 Despacho
PD-11 PB Edificia Losoles,
Garza Garcia 66220 N. L. Mexico
Raul Rangel Hinojosa D
Lazaro Cardenas 2400 Despacho
PD-11 PB Edificia Losoles,
Garza Garcia 66220 N. L. Mexico
Santiago C. Reyes Retana D
Lazaro Cardenas 2400 Despacho
PD-11 PB Edificia Losoles,
Garza Garcia 66220 N. L. Mexico
Andres Gonzalez Sandoval S
Lazaro Cardenas 2400 Despacho
PD-11 PB Edificia Losoles,
Garza Garcia 66220 N. L. Mexico
MISSISSIPPI
Name and Principal Address (f) Position
- --------------------------------------------
Paul J. DeNicola (c) D
Edwin E. Downer D
7642 Poplar Springs Drive
Meridian, MS 39305
Dwight H. Evans D,P,CEO
Robert S. Gaddis D
P. O. Box 168
Laurel, MS 39440
Walter H. Hurt, III D
P. O. Box 9
Inverness, MS 38753
Aubrey K. Lucas D
Box 5164
Hattiesburg, MS 39406
George A. Schloegel D
Hancock Bank
P. O. Box 4019
Gulfport, MS 39502
Philip J. Terrell D
701 West North Street
Pass Christian, MS 39571
Gene Warr D
2600 Beach Boulevard
Biloxi, MS 39531
H. Ed Blakeslee VP
Andrew J. Dearman, III VP
Bill M. Guthrie (b) VP,CPO
C. Alan Martin (a) VP
Don E. Mason VP
Michael W. Southern VP,CFO,
S,T
Frances V. Turnage C
12
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
--------------------
MOBILE ENERGY SERVICES HOLDINGS, INC.
Name and Principal Address (e) Position
- ---------------------------------------------
Kerry E. Adams (n) D
Thomas G. Boren D
S. Marce Fuller D,P,CEO
Alan W. Harrelson D
J. Bruce Jones D
Thomas J. Madden, III D
Dean G. Koch D
Richard J. Koch VP
James A. Ward D,VP,C
Tommy Chisholm (a) S
MOBILE ENERGY SERVICES COMPANY, LLC
Name and Principal Address (e) Position
- --------------------------------------------
Thomas G. Boren P,CEO
S. Marce Fuller VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Richard J. Koch VP,GM
Christopher Kysar VP
Mark R. Ogle VP
James A. Ward VP,C
Tommy Chisholm (a) S
SAVANNAH
Name and Principal Address (g) Position
- --------------------------------------------
Archie H. Davis D
P. O. Box 188
Savannah, GA 31402
Paul J. DeNicola (c) D
Walter D. Gnann D
P. O. Box 334
Springfield, GA 31329
G. Edison Holland, Jr. D,P,CEO
Robert B. Miller, III D
P. O. Box 8003
Savannah, GA 31412
Arnold M. Tenenbaum D
P. O. Box 2567
Savannah, GA 31498
W. Miles Greer VP
Bill M. Guthrie (b) VP,CPO
C. Alan Martin (a) VP
Larry M. Porter VP
Kirby R. Willis VP,T,CFO
Nancy Frankenhauser C,S
SEIH
Name and Principal Address (e) Position
- --------------------------------------------
Thomas G. Boren D,P
A. W. Dahlberg (a) D
Paul J. DeNicola (c) D
H. Allen Franklin (c) D
Elmer B. Harris (b) D
W. L. Westbrook (a) D
S. Marce Fuller VP
Raymond D. Hill VP,T,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Ronald E. Leggett VP
Richard J. Pershing VP
Tommy Chisholm (a) S
James A. Ward C
Asociados de Electricidad, S.A.
Name and Principal Address (h) Position
- ---------------------------------------------
Ricardo Falabella D
Mariano F. Grondona D,S
J. William Holden, III (e) D,P
SEI y Asociados de Argentina, S.A.
Name and Principal Address (i) Position
- ---------------------------------------------
Juan Carlos Apostolo D
Peter J. Davenport D
Ricardo Falabella D
Mariano F. Grondona D,S
J. William Holden, III (e) D,P
Martin Inhargue D
W. L. Westbrook (a) D
13
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
--------------------
Hidroelectrica Alicura, S.A.
Name and Principal Address (i) Position
- --------------------------------------------
Peter J. Davenport D
Ricardo Falabella D,VP
Mariano F. Grondona D,S
Roberto Guillermo Haas D
J. William Holden, III (e) D,P
Santiago J. Bergada Moritan D
Oscar Perticone D
Diego Sapag D
Southern Electric, Inc.
Name and Principal Address (e) Position
- --------------------------------------------
Richard J. Pershing D,VP
Thomas G. Boren P,CEO
Tommy Chisholm (a) S
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Barney S. Rush VP
James A. Ward VP,T
Southern Energy International, Inc.
Name and Principal Address (e) Position
- --------------------------------------------
Thomas G. Boren D
Richard J. Pershing D
James A. Ward D,P
Raymond D. Hill VP,T
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Tommy Chisholm (a) S
Southern Energy - Newco 2, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D
James A. Ward D,P
Raymond D. Hill VP,T
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Tommy Chisholm (a) S
SEI Chile, S.A.
Name and Principal Address (j) Position
- ----------------------------------------------
Felicia L. Bellows (i) D
Edgardo Boeninger Kausel D
Jorge Granic Latorre D
Pastor Sanjurjo (k) D,CEO
Carlos Larrain Pena D
Eduardo Zuniga Pacheco D
Empresa Electrica del Norte Grande, S.A.
Name and Principal Address (k) Position
- ---------------------------------------------
Edgardo Boeninger Kausel D
Edmundo Dupre Echeverria D,VP
J. William Holden, III D
Andres Kern D
Mark S. Lynch CEO
Richard J. Pershing D
W. L. Westbrook (a) D
Sitranor S. A.
Name and Principal Address (k) Position
- ---------------------------------------------
Ricardo Campano Gandara D
Mario Espinoza Duran D
Luis Hormazibal Villagran D
Carlos Larrain Pena D
Oscar Moscoso Fabres D
Pastor Sanjurjo D
Eduardo Zuniga Pacheco D
Pedro Artiagoitia Artave CEO
Energia del Pacifico S. A.
Name and Principal Address (k) Position
- ---------------------------------------------
Jorge Granic Latorre D
Carlos Larrain Pena D
Pastor Sanjurjo D
SEBH
Name and Principal Address (e) Position
- --------------------------------------------
Thomas G. Boren D,P
J. William Holden, III D,VP
Richard J. Pershing D,VP
Raymond D. Hill VP,T,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Ronald E. Leggett VP
James A. Ward C
Tommy Chisholm (a) S
14
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- --------------------------------
PART I. (Continued)
--------------------
Southern Electric Bahamas Ltd.
Name and Principal Address (e) Position
- --------------------------------------------
Thomas G. Boren D,P
J. William Holden, III D,VP
Richard J. Pershing D,VP
Raymond D. Hill VP,T,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Ronald E. Leggett VP
Tommy Chisholm (a) S
James A. Ward C
Freeport Power Company Limited
Name and Principal Address Position
- -----------------------------------
Thomas G. Boren (e) D
Larry R. Brantley D,P,CEO
P. O. Box F-40888
Freeport, Grand Bahama Island,
Bahamas
Jack A. Hayward D
P. O. Box F-40888
Freeport, Grand Bahama Island,
Bahamas
J. William Holden, III (e) D
Albert J. Miller D
P. O. Box F-40888
Freeport, Grand Bahama Island,
Bahamas
Richard J. Pershing (e) D
Edward P. St. George D
P. O. Box F-40888
Freeport, Grand Bahama Island,
Bahamas
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Ian O. Barry VP,T
P. O. Box F-40888
Freeport, Grand Bahama Island,
Bahamas
Ronald E. Leggett (e) VP
Willie A. M. Moss VP,S
P. O. Box F-40888
Freeport, Grand Bahama Island,
Bahamas
SEI Beteiligungs GmbH
Name and Principal Address (e) Position
- --------------------------------------------
Thomas G. Boren D,MD
Barney S. Rush D,MD
James A. Ward D,MD
P. T. Tarahan Power Company
Name and Principal Address (e) Position
- ---------------------------------------------
Tanri Abeng M
Ir. Aburizal Bakrie P,M
Thomas G. Boren M
David T. Gallaspy M
Mintarto Halim M
Ronald E. Leggett M
Mark S. Lynch M
Soy M. Pardede M
Richard J. Pershing M
George S. Tahija M
James A. Ward M
Raymond V. Haley P,D
Thomas K. Amster D
Lekir A. Daud D
Ir. Arjono D. Kamarga D
Amin M. Lakhani D
Southern Electric Brasil Participacoes Ltda.
Name and Principal Address Position
- --------------------------------------------
Pedro Paulo Cristofaro D
Av Almirante Barroso,
No. 52, 5 Andar
Rio de Janeiro, Brasil CEP 20031
Julian Fonseca Pena Chediak D
Av Almirante Barroso,
No. 52, 5 Andar
Rio de Janeiro, Brasil CEP 20031
Southern Electric International - Europe, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
Richard J. Pershing D
James A. Ward D,VP,T
Tommy Chisholm (a) S
15
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
--------------------
Southern Electric International Finance, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
James J. Coppola, Jr. D
D. R. Rozier, Jr. D
L. Terry Turner D
William R. Bechstein D
James A. Ward P
Raymond D. Hill VP,T
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Tommy Chisholm S
Southern Energy Development - Europe Limited
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D
Carson B. Harreld D
Raymond D. Hill D
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Gale E. Klappa D
Mark R. Ogle D,S
Richard J. Pershing D
Barney S. Rush D
C. Philip Saunders D
James A. Ward D
Southern Electric International - Netherlands B.V.
Name and Principal Address (e) Position
- --------------------------------------------------
Thomas G. Boren D
Tommy Chisholm D
Sam H. Dabbs, Jr. D
Raymond D. Hill D
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Richard J. Pershing D
Patricia L. Roberts D
Barney S. Rush D
James A. Ward D
The Southern Company - Europe plc
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D
Raymond D. Hill D
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Karl E. Olsoni D
Richard Owen D
Richard J. Pershing D
James A. Ward D
Mark R. Ogle S
Southern Energy UK Generation Limited
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D
Sam H. Dabbs, Jr. D
Richard J. Pershing D
Patricia L. Roberts D
James A. Ward D
Tommy Chisholm S
Southern Investments UK plc
Name and Principal Address (e) Position
- --------------------------------------------
Accentacross Limited D
Thomas G. Boren D
Carson B. Harreld D,CFO,CAO
Gale E. Klappa D
Mighteager Limited D
Richard J. Pershing D,CEO
Barney S. Rush D
C. Philip Saunders D
Robert Symons D
Mark R. Ogle S
South Western Electricity plc
Name and Principal Address (l) Position
- --------------------------------------------
Maurice Fletcher D
Carson B. Harreld D
Gale E. Klappa D,CEO
Roger L. Petersen D
C. Philip Saunders D
Robin D. Edmunds S
16
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- ----------------------------------
PART I. (Continued)
--------------------
Southern Electric International Trinidad, Inc.
Name and Principal Address (e) Position
- ----------------------------------------------
Thomas G. Boren D,P
J. William Holden, III D,VP
James A. Ward D
Tommy Chisholm (a) S,T
Southern Electric International, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D
James A. Ward D,VP,T
S. Marce Fuller VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Richard J. Pershing VP
Tommy Chisholm S
The Power Generation Company of
Trinidad and Tobago Limited
Name and Principal Address Position
- ---------------------------------------------
Ronald Chan D
Scotia Centre
Cr. Park and Richmond Streets
Port of Spain, Trinidad, W.I.
Barbara Fagan D
200 Westlake Park Blvd.
Houston, TX 77253
J. William Holden, III D
Ronald E. Leggett (e) D
John MacKay D
6 St. Kitts Avenue
Federation Park, Trinidad, W. I.
Judith Morris D
63 Frederick Street
Port of Spain, Trinidad, W.I.
Jacqueline Quamina D
Eric Williams Plaza
Independence Square
Port of Spain, Trinidad, W.I.
Chandrabhan Sharma D
University of the West Indies
St. Augustine, Trinidad, W.I.
W. L. Westbrook (a) D
Henry T. E. Coolidge, Jr. D,CEO
6A Queens Park West,
First Floor
Port of Spain, Trinidad, W.I.
Charmaine
Pemberton-Carrington S
63 Frederick Street
Port of Spain, Trinidad, W.I.
Southern Energy - Asia, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Edwin H. Adams D,VP
Thomas G. Boren D,P
A. W. Dahlberg D
Raymond D. Hill D,EVP
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Dean Koch D,VP
Frederick D. Kuester D,VP
Richard J. Pershing D,VP
James A. Ward D,VP,T
S. Marce Fuller VP
Karl E. Olsoni VP
Tommy Chisholm S
17
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- ----------------------------------
PART I. (Continued)
--------------------
SCS
Name and Principal Address (c) Position
- ---------------------------------------------
A. W. Dahlberg (a) D
Paul J. DeNicola D,P,CEO
H. Allen Franklin (c) D
Elmer B. Harris (b) D
Bill M. Guthrie (b) SEVP,CPO
Kerry E. Adams (n) EVP
David M. Ratcliffe (a) EVP
W. L. Westbrook (a) EVP
Thomas A. Fanning SVP
Robert H. Haubein SVP
William K. Newman (b) SVP
Earl B. Parsons, Jr. SVP
David R. Altman (a) VP
Robert S. Beason VP
I. Otis Berkhan VP
Robert L. Boyer VP
Tommy Chisholm (a) VP,S,L
James L. Conn VP
A. J. Connor (b) VP
Andrew J. Dearman, III VP
Douglas E. Dutton (n) VP
J. Kevin Fletcher VP
Dr. C. H. Goodman (b) VP
W. Dean Hudson VP,C,CFO
Allen L. Leverett VP
William L. Marshall, Jr. VP
C. Alan Martin (a) VP
J. Mike McClure VP
Robert G. Moore VP
Larry M. Porter VP
John G. Richardson VP
1130 Connecticut Avenue, NW
Washington, DC 20036
Jerry L. Stewart (b) VP
Dr. W. Robert Woodall, Jr. (a) VP
John F. Young VP
Charles O. Rawlins T
Southern Communications
Name and Principal Address (m) Position
- ---------------------------------------------
A. W. Dahlberg (a) D
H. Allen Franklin (c) D
Robert G. Dawson D,P,CEO
Paul J. DeNicola (c) D
Elmer B. Harris (b) D
W. L. Westbrook (a) D
R. Craig Elder VP,T
Tommy Chisholm (a) S
Southern Energy
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P,CEO
A. W. Dahlberg (a) D
Paul J. DeNicola (c) D,VP
H. Allen Franklin (c) D
Elmer B. Harris D
W. L. Westbrook (a) D,VP
S. Marce Fuller SVP
Raymond D. Hill SVP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Richard J. Pershing SVP
Vance N. Booker VP
Tommy Chisholm (a) VP,S
David T. Gallaspy VP
Alan W. Harrelson VP
J. R. Harris VP
Randell E. Harrison VP
J. William Holden, III VP
Ronald E. Leggett VP
William A. Maner, III VP
Karl E. Olsoni VP,T
Richard Owen VP
Joseph T. Pokalsky VP
Barney S. Rush VP
James A. Ward VP,C
SEI Operadora de Argentina, S.A.
Name and Principal Address (i) Position
- ---------------------------------------------
Ricardo Falabella D,VP
J. William Holden, III (e) D,P
Ronald E. Leggett (e) D
Mariano F. Grondona S
Southern Electric International - Asia, Inc
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Tommy Chisholm (a) S
18
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- ---------------------------------
PART I. (Continued)
--------------------
Southern Electric International GmbH
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren GM
Tommy Chisholm (a) GM
William A. Franks GM
Raymond D. Hill GM
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Richard J. Pershing GM
James A. Ward GM
SERC
Name and Principal Address (n) Position
- ---------------------------------------------
Bill M. Guthrie (b) D,P
T. Roy Harrell VP
Earl B. Parsons, Jr. (b) VP
Larry M. Porter (g) VP
Tommy Chisholm (a) S,T
Southern Nuclear
Name and Principal Address (o) Position
- ---------------------------------------------
A. W. Dahlberg (a) D
Paul J. DeNicola (c) D
H. Allen Franklin (c) D
William G. Hairston, III D,P,CEO
Elmer B. Harris (b) D
James H. Miller, III EVP,L
Jackie D. Woodard EVP
James W. Averett VP
Louis B. Long VP
C. Alan Martin (a) VP
Charles K. McCoy VP
John O. Meier VP,S
D. N. Morey, III VP
H. Lewis Sumner, Jr. VP
Kathleen S. King C,T,CFO
Energy Solutions
Name and Principal Address (c) Position
- ---------------------------------------------
Robert S. Beason D
William P. Bowers D
Paul J. DeNicola D
Dwight H. Evans (f) D
Thomas A. Fanning D
J. Kevin Fletcher D,P
Robin A. Hurst (b) D
Charles D. McCrary (b) D
Michael L. Scott (b) D
W. L. Westbrook (a) D
Tommy Chisholm (a) S
Allen L. Leverett T
Southern Energy Finance Company, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
James A. Ward D,VP,T
S. Marce Fuller VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
David Rozier VP
Tommy Chisholm S
EPZ Lease, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
William R. Bechstein D,VP
1105 N. Market Street
Suite 1300
Wilmington, DE 19801
David R. Rozier, Jr. D,VP,T
L. Terry Turner D
Christopher J. Kysar VP
Tom Mathew VP
James A. Ward P
Patricia L. Roberts S
19
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
-------------------
EPZ Lease, L.L.C.
Name and Principal Address (e) Position
- ---------------------------------------------
Christopher J. Kysar Officer
Tom Mathew Officer
John Rachford Officer
EPZ Holding A, L.L.C.
Name and Principal Address (e) Position
Christopher J. Kysar Officer
Tom Mathew Officer
John Rachford Officer
EPZ Holding B, L.L.C.
Name and Principal Address (e) Position
Christopher J. Kysar Officer
Tom Mathew Officer
John Rachford Officer
EPZ Holding C, L.L.C.
Name and Principal Address (e) Position
Christopher J. Kysar Officer
Tom Mathew Officer
John Rachford Officer
Southern Energy North America, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Vance N. Booker D
Thomas G. Boren D,P
S. Marce Fuller D,VP
James A. Ward D,C
W. L. Westbrook (a) D
Raymond D. Hill VP,T,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Ronald E. Leggett VP
Richard J. Pershing VP
Tommy Chisholm (a) S
Southern Energy Trading and Marketing, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
Thomas A. Fanning (c) D
S. Marce Fuller D,EVP
Raymond D. Hill D,VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Richard J. Pershing D
James A. Ward D,VP,T,C
W. L. Westbrook (a) D
Joseph T. Pokalsky SVP
Steve Byone VP
Alexander Eydeland VP
David T. Gallaspy VP
Donald R. Jefferis VP
Gary T. Morsches VP
O. Jay Oates, II VP
William T. Orr VP
John W. Ragan VP
John J. Robinson VP
Mark J. D. Streater VP
Christopher Turner VP
Tommy Chisholm (a) S
SEI Birchwood, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Kerry E. Adams (n) D
Vance N. Booker D
Thomas G. Boren D
S. Marce Fuller D,P
Alan W. Harrelson D,VP
George P. Henefeld VP
David R. Rozier, Jr. VP,CFO,T
James A. Ward VP,C
Patricia L. Roberts (a) S
20
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ----------------------------------
PART I. (Continued)
--------------------
SEI Hawaiian Cogenerators, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Kerry E. Adams (n) D,VP
Thomas G. Boren D,P
W. L. Westbrook (a) D
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Tommy Chisholm (a) S
James A. Ward T
Southern Energy - Cajun, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D
S. Marce Fuller D
James A. Ward D,VP,T
Randall E. Harrison VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Gary J. Kubik VP
Tommy Chisholm S
SEI State Line, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
James A. Ward D,VP,T
S. Marce Fuller P
Alan W. Harrelson VP
Randall E. Harrison VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Patricia L. Roberts S
Southern Information Holding Company, Inc.
Name and Principal Address (c) Position
- ---------------------------------------------
Robert S. Beason D,P
William P. Bowers D
Paul J. DeNicola D
Dwight H. Evans (f) D
Thomas A Fanning (a) D
J. Kevin Fletcher D
Robin A. Hurst (b) D
Charles D. McCrary (b) D
Michael L. Scott (b) D
William L. Westbrook (a) D
Michael E. Britt VP
Allen L. Leverett (a) T
Tommy Chisholm (a) S
Southern Information 1, Inc.
Name and Principal Address (c) Position
- ---------------------------------------------
Robert S. Beason D,P
William P. Bowers D
Paul J. DeNicola D
Dwight H. Evans (f) D
Thomas A. Fanning (c) D
J. Kevin Fletcher D
Robin A. Hurst D
Charles D. McCrary (b) D
Michael L. Scott (b) D
William L. Westbrook (a) D
Michael E. Britt VP
Allen L. Leverett (a) T
Tommy Chisholm (a) S
Southern Information 2, Inc.
Name and Principal Address (c) Position
- ---------------------------------------------
Robert S. Beason D,P
William P. Bowers D
Paul J. DeNicola D
Dwight H. Evans (f) D
Thomas A Fanning (a) D
J. Kevin Fletcher D
Robin A. Hurst (b) D
Charles D. McCrary (b) D
Michael L. Scott (b) D
William L. Westbrook (a) D
Michael E. Britt VP
Allen L. Leverett (a) T
Tommy Chisholm (a) S
21
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ----------------------------------
PART I. (Continued)
-------------------
Southern Telecom Holding Company, Inc.
Name and Principal Address (c) Position
- ---------------------------------------------
Robert S. Beason D,P
William P. Bowers D
Paul J. DeNicola D
Dwight H. Evans (f) D
Thomas A. Fanning (c) D
J. Kevin Fletcher D
Charles D. McCrary (b) D
Michael L. Scott (b) D
William L. Westbrook (a) D
Michael E. Britt VP
Tommy Chisholm (a) S
Allen L. Leverett (a) T
Southern Telecom 1, Inc.
Name and Principal Address (c) Position
- ---------------------------------------------
Robert S. Beason D,P
William P. Bowers D
Paul J. DeNicola D
Dwight H. Evans (f) D
Thomas A. Fanning (c) D
J. Kevin Fletcher D
Robin A. Hurst (b) D
Charles D. McCrary (b) D
Michael L. Scott (b) D
William L. Westbrook (a) D
Micheal E. Britt VP
Allen L. Leverett (a) T
Tommy Chisholm (a) S
Southern Telecom 2, Inc.
Name and Principal Address (c) Position
- ---------------------------------------------
Robert S. Beason D,P
William P. Bowers D
Paul J. DeNicola D
Dwight H. Evans (f) D
Thomas A. Fanning (c) D
J. Kevin Fletcher D
Robin A. Hurst (b) D
Charles D. McCrary (b) D
Michael L. Scott (b) D
William L. Westbrook (a) D
Micheal E. Britt VP
Allen L. Leverett (a) T
Tommy Chisholm (a) S
Cayman Energy Traders
Name and Principal Address Position
- ---------------------------------------------
Dennis W. Bakke D
J. William Holden, III D
Barry J. Sharp D
William R. Lurasch S
Consolidated Electric Power Asia
Name and Principal Address Position
- ---------------------------------------------
Edwin H. Adams D
Thomas G. Boren (e) D
A. W. Dahlberg (a) D
Raymond D. Hill D
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Eddie Ho D
Dean G. Koch D
Frederick D. Kuester D
Richard J. Pershing D
Gordon Wu D
SC Ashwood Holdings, Inc
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
S. Marce Fuller D,EVP
James A. Ward D,VP,T,C
Joseph T. Pokalsky SVP
Donald R. Jefferis VP
Gary J. Morsches VP
John J. Robinson VP
Tommy Chisholm (a) S
SC Energy Ventures, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
S. Marce Fuller D,EVP
James A. Ward D,VP,T,C
Joseph T. Pokalsky SVP
Donald R. Jefferis VP
Gary J. Morsches VP
John J. Robinson VP
Tommy Chisholm (a) S
22
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
---------------------
SEI Germany - BEWAG, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P,CEO
Richard J. Pershing D, VP
James A. Ward D,VP,T
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Barney S. Rush VP
Tommy Chisholm (a) S
SEI Worldwide Holdings, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P,CEO
Richard J. Pershing D
James A. Ward D,VP,T
Raymond D. Hill VP, CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Barney S. Rush VP
Tommy Chisholm (a) S
Southern Company Capital Funding, Inc.
Name and Principal Address (a) Position
- ---------------------------------------------
William R. Bechstein (e) D
James J. Coppola, Jr. D
D. R. Rozier, Jr. (e) D
L. Terry Turner (e) D
William L. Westbrook D, P,CEO
Charles N. Eldred VP,T
Charles O. Rawlins VP, CFO
Tommy Chisholm VP,S
Southern Energy Clairton, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
James A. Ward D,VP,T
S. Marce Fuller VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Karl E. Olsoni VP
Tommy Chisholm (a) S
Southern Energy Clairton 2, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
James A. Ward D,VP,T
S. Marce Fuller VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Karl E. Olsoni VP
Tommy Chisholm (a) S
Southern Energy Clairton, L.L.C.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren P
S. Marce Fuller VP
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Christopher J. Kysar VP
James A. Ward VP,T
Charles H. Wilson VP
Tommy Chisholm (a) S
Southern Energy do Brasil Ltda.
Name and Principal Address (e) Position
- ---------------------------------------------
Rodolpho de Oliveira Franco M
Protasio
Southern Energy E Associados Participacoes,S.A.
Name and Principal Address (e ) Position
Monica Maria Correa Moreira D,VP
Carneiro
Kevin L. Mundie D,P
23
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS
- ---------------------------------
PART I. (Continued)
--------------------
Southern Energy Finance Company, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
James A. Ward D,VP,T
Raymond D. Hill VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Christopher J. Kysar VP
Tom Mathew VP
Karl E. Olsoni VP
Tommy Chisholm (a) S
Southen Energy Retail Trading and
Marketing, Inc.
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D,P
Thomas A. Fanning (c) D
S. Marce Fuller D,EVP
Raymond D. Hill D,VP,CFO
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay
Hong Kong
Richard J. Pershing D
James A. Ward D,VP,T
William L. Westbrook D
Joseph T. Pokalsky SVP
Donald R. Jerreris VP
Gary J. Morsches VP
John J. Robinson VP
Tommy Chisholm (a) S
SEI Worldwide Holdings Beteiligungsgesellschaft
mbH
Name and Principal Address (e) Position
- ---------------------------------------------
Thomas G. Boren D
Mark R. Ogle D
Richard J. Pershing D
Barney S. Rush D
James A. Ward D
24
<PAGE>
<TABLE>
<CAPTION>
ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections.
- -------------------------------------------------------------------
<S> <C> <C> <C>
Name of Officer Name and Location Position Held in Applicable
or Director of Financial Institution Financial Institution Exemption Rule
- --------------------- ---------------------------------------- ------------------------ --------------
Rule No. 70
Subdivision
John C. Adams Aliant Bank, Alexander City, AL Director (a)
Aliant National Corporation, Alexander
City, AL Director (a)
Whit Armstrong The Citizens Bank Chief Executive (c)
Enterprise, AL Officer,
Chairman of the Board
of Directors and President
Enterprise Capital Corporation Chairman of the Board of
Enterprise, AL Directors, President (c)
A. D. Correll SunTrust Bank of Georgia, Atlanta, GA Director (a)
SunTrust Banks Inc., Atlanta, GA Director (a)
W. Roy Crow Barbour County Bank, Eufaula, AL Director (f)
A. W. Dahlberg SunTrust Bank of Georgia Director (a);(c)
Atlanta, GA
SunTrust Banks, Inc., Atlanta, GA Director (a);(c)
Archie H. Davis The Savannah Bancorp, Savannah, GA President, Chief Executive
Officer (c)
The Savannah Bank N.A., Savannah, GA President, Chief Executive
Officer (c)
H. Allen Franklin SouthTrust Bank, Birmingham, AL Director (a);(c)
L. G. Hardman, III First Commerce Bancorp, Inc. Chairman of the Board
Commerce, GA of Directors and Chief
Executive Officer (a);(c);(g)
First National Bank of Commerce, Chairman of the
Commerce, GA Board of Directors (c);(g)
Elmer B. Harris AmSouth Bancorporation, Director (a);(c);(e);(f)
Birmingham, AL
AmSouth Bank of Alabama,
Birmingham, AL Director (a);(c);(e);(f)
G. Edison Holland, Jr. SunTrust Bank, Savannah, GA Director (c)
Carl E. Jones Regions Financial Corporation, President and Chief
Birmingham, AL Operating Officer (c)
Patricia M. King Regions Bank, Anniston, AL Director (c)
James R. Lientz, Jr. NationsBank, N.A., Atlanta, GA President, Director (c)
Wallace D. Malone SouthTrust Corporation, Birmingham, AL Chairman of the Board
of Directors and Chief
Executive Officer (c)
William V. Muse SouthTrust Corporation, Birmingham, AL Director (c)
John T. Porter Citizens Federal Bank, Birmingham, AL Director (c)
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
ITEM 6. OFFICERS AND DIRECTORS. Part II. Financial Connections. (Continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Name of Officer Name and Location Position Held in Applicable
or Director of Financial Institution Financial Institution Exemption Rule
- --------------------- --------------------------------- ---------------------- ---------------
Rule No. 70
Subdivision
G. Joseph
Prendergast Wachovia Bank of Georgia, N.A. Chairman of the
Atlanta, GA Board of Directors (c)
Wachovia Bank of South Carolina Chairman of the
Board of Directors (d)
Wachovia Bank of North Carolina Chairman of the
Board of Directors (d)
Wachovia Corporation, Atlanta, GA Senior Executive
Vice President (d)
C. Dowd Ritter, III AmSouth Bancorporation, Birmingham, AL Chairman, Chief
Executive Officer (c)
AmSouth Bank, Birmingham, AL Chairman, Chief
Executive Officer (c)
Herman J. Russell Citizens Trust Bank, Atlanta, GA Chairman of the
Board of Directors (c)
Citizens Bancshares Corp. Atlanta, GA Chairman of the
Board of Directors (c)
Wachovia Corporation of Georgia, Director (c)
Atlanta, GA
George A. Schloegel Hancock Bank - Mississippi, Gulfport, MS Director and
President (c)
Hancock Holding Company, Gulfport, MS Vice Chairman of
the Board
of Directors (c)
Hancock Bank - Louisiana, Baton Rouge
Louisiana Director (d)
William R. Smith SouthTrust Bank of Calhoun County, N.A.
Anniston, AL Director (f)
Gerald St. Pe' Merchants & Marine Bank, Pascagoula, MS Director (a)
Herbert Stockham SouthTrust Bank, Birmingham, AL Director (a);(c)
SouthTrust Corporation, Director (c)
Birmingham, AL
Joseph K. Tannehill Regions Bank of North Florida, Director (c)
Panama City, FL
Arnold M.
Tenenbaum First Union National Bank of Georgia, Director (c)
Atlanta, GA
First Union National Bank of Savannah, Director (c)
Savannah, GA
Gene Warr Coast Community Bank, Biloxi, MS Director (c)
</TABLE>
26
<PAGE>
ITEM 6. EXECUTIVE COMPENSATION. PART III.
(a) Summary Compensation Tables. The following tables set forth
information concerning any Chief Executive Officer and the four most highly
compensated executive officers for SCS, Southern Energy, Southern
Communications, Energy Solutions and Southern Nuclear serving as of December 31,
1997, as defined by the Securities and Exchange Commission. ALABAMA, GEORGIA,
GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers
III-13 through III-18 in the SOUTHERN system's combined Form 10-K for the year
ended December 31, 1997. Incorporated by reference to "Summary Compensation
Table" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement
relating to the 1998 annual meeting of stockholders.
Key terms used in this Item will have the following meanings:-
ESP................................. Employee Savings Plan
ESOP................................ Employee Stock Ownership Plan
SBP................................. Supplemental Benefit Plan
ERISA............................... Employee Retirement Income Security Act
<TABLE>
<CAPTION>
SCS
SUMMARY COMPENSATION TABLE
<S> <C> <C> <C> <C> <C> <C> <C>
ANNUAL COMPENSATION LONG-TERM COMPENSATION
Number of
Securities Long-
Name Underlying Term
and Other Annual Stock Incentive All Other
Principal Compensation Options Payouts Compensation
Position Year Salary($) Bonus($) ($)1 (Shares) ($)2 ($)3
- ------------------------------------------------------------------------------------------------------------------------
A. W. Dahlberg 1997 817,644 206,250 27,485 135,882 433,247 49,766
Director 1996 782,409 118,534 6,833 154,610 770,216 43,850
1995 722,489 120,415 6,577 52,203 866,493 40,755
Paul J. DeNicola 1997 416,452 62,980 8,731 29,638 239,874 25,493
President, Chief 1996 400,491 56,520 3,325 26,330 426,442 22,894
Executive Officer, 1995 384,845 50,464 3,037 26,297 479,747 21,573
Director
Bill M. Guthrie 1997 361,881 58,376 1,835 25,754 244,800 21,168
Senior Executive 1996 346,375 49,115 1,574 17,541 244,800 19,141
Vice President 1995 326,877 49,939 1,533 17,518 275,400 17,810
</TABLE>
27
See footnotes on the next page.
<PAGE>
<TABLE>
<CAPTION>
SCS
SUMMARY COMPENSATION TABLE
(Continued)
<S> <C> <C> <C> <C> <C> <C> <C>
ANNUAL COMPENSATION LONG-TERM COMPENSATION
Number of
Securities Long-
Name Underlying Term
and Other Annual Stock Incentive All Other
Principal Compensation Options Payouts Compensation
Position Year Salary($) Bonus($) ($)1 (Shares) ($)2 ($)3
- -------------------------------------------------------------------------------------------------------------------------
David M. Ratcliffe 1997 313,152 50,515 10,828 17,086 207,322 18,342
Executive Vice 1996 347,985 39,465 8,446 15,179 207,322 16,889
President 1995 281,615 68,7854 - 15,524 233,237 13,718
William L.
Westbrook 1997 261,020 50,000 9,763 14,242 95,679 15,216
Executive Vice 1996 251,903 35,426 2,793 12,653 170,096 14,032
President 1995 242,606 29,339 1,841 13,002 191,358 13,401
</TABLE>
- --------
1 Tax reimbursements by SCS on certain personal benefits.
2 Payouts made in 1996, 1997 and 1998 for the four-year performance periods
ending December 31, 1995, 1996 and 1997. 3 SCS contributions to the ESP, ESOP,
non-pension related accruals under the SBP (ERISA excess plan under which
accruals are made to offset Internal Revenue Code imposed limitations under the
ESP and ESOP), for the following:
ESP ESOP SBP
A. W. Dahlberg $7,181 $1,072 $41,513
Paul J. DeNicola 7,125 1,072 17,296
Bill M. Guthrie 7,125 1,072 12,971
David M. Ratcliffe 7,200 1,072 10,070
William L. Westbrook 7,181 1,072 6,963
4 Also included for Mr. Ratcliffe is a one-time lump-sum payment of $25,000
given in connection with his appointment to his current position.
28
<PAGE>
<TABLE>
<CAPTION>
Southern Communications
and
Energy Solutions
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION
<S> <C> <C> <C> <C> <C> <C> <C>
LONG-TERM COMPENSATION
Number of
Securities Long-
Name Underlying Term
and Other Annual Stock Incentive All Other
Principal Compensation Options Payouts Compensation
Position Year Salary($) Bonus($) ($)5 (Shares) ($)6 ($)7
- -------------------------------------------------------------------------------------------------------------------------
Southern Communications
Robert G. Dawson 1997 185,103 37,823 1,199 7,865 100,978 10,305
President, Chief 1996 163,661 116,123 1,185 7,055 - 12,275
Executive Officer, 1995 498,6718 65,000 277 - - 9,430
Director
R. Craig Elder 1997 112,606 32,510 304 3,999 46,455 6,088
Vice President, 1996 106,623 70,640 - - - 5,608
Treasurer 1995 - - - - - -
Energy Solutions
J. Kevin Fletcher 1997 133,797 20,286 - 4,773 60,636 7,556
President, 1996 126,990 17,224 136 4,161 60,636 6,617
Director 1995 113,762 19,506 107 4,023 68,215 5,933
5 Tax reimbursement by Energy Solutions and Southern Communications on certain personal benefits.
6 Payouts made in 1996, 1997 and 1998 for the four-year performance periods ending December 31, 1995, 1996 and 1997.
7 Southern Communications' and Energy Solutions' contributions to the ESP,ESOP, non-pension related accruals under the SBP
(ERISA excess plan under which accruals are made to offset Internal Revenue Code imposed limitations under the ESP and ESOP),
for the following:
ESP ESOP SBP
--- ---- ----
Robert G. Dawson $7,481 $1,072 $1,752
R. Craig Elder 5,079 1,009 -
J. Kevin Fletcher 6,035 1,072 449
8 Mr. Dawson's gross wages include miscellaneous payments due to his assignment in Buenos Aires, Argentina. Mr. Dawson
served as vice president of SEI's Latin American and Caribbean Assets from March 1994 until October 1995.
</TABLE>
29
<PAGE>
<TABLE>
<CAPTION>
Southern Energy
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION LONG-TERM COMPENSATION
<S> <C> <C> <C> <C> <C> <C> <C>
Number of
Securities Long-
Name Underlying Term
and Other Annual Stock Incentive All Other
Principal Compensation Options Payouts Compensation
Position Year Salary($) Bonus($) ($)9 (Shares) ($)10 ($)11
- -------------------------------------------------------------------------------------------------------------------------
Thomas G. Boren 1997 345,000 387,625 14,868 18,941 - 19,415
President, 1996 291,086 275,000 13,757 14,250 - 16,293
Director 1995 248,333 298,49712 12,579 13,295 - 10,215
S. Marce Fuller 1997 244,167 228,125 1,098 13,529 - 11,080
Senior Vice President 1996 215,000 175,000 1,491 8,881 - 9,403
1995 184,267 67,500 1,844 - - 6,768
Richard J. Pershing 1997 244,167 228,125 3,645 13,529 - 13,346
Senior Vice President 1996 190,417 175,000 3,568 8,881 - 9,869
1995 162,500 165,000 2,974 - - 8,287
Raymond D. Hill 1997 192,083 228,125 1,323 13,529 - 13,329
Senior Vice President 1996 190,657 175,000 2,820 8,881 - 9,868
1995 162,500 165,000 1,641 - - 8,252
Joseph T. Pokalsky 1997 200,000 160,000 19,458 - - -
Vice President 1996 - - - - - -
1995 - - - - - -
9 Tax reimbursement by Southern Energy on certain personal benefits.
10 Employees of Southern Energy are not yet eligible for these payouts.
11 Southern Energy contributions to the ESP, ESOP, non-pension related accruals
under the SBP (ERISA excess plan under which accruals are made to offset
Internal Revenue Code imposes limitations under the ESP and ESOP), for the
following:
ESP ESOP SBP
--- ------ -------
Thomas G. Boren $6,469 $1,072 $11,875
S. Marce Fuller 6,195 1,072 3,813
Richard J. Pershing 6,469 1,072 5,805
Raymond D. Hill 6,469 1,072 5,788
Joseph T. Pokalsky - - -
12 Includes a one-time award of $48,497 under the key contributor program in
recognition of exemplary performance in 1995.
30
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Southern Nuclear
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION LONG-TERM COMPENSATION
<S> <C> <C> <C> <C> <C> <C> <C>
Securities Long-
Name Underlying Term
and Other Annual Stock Incentive All Other
Principal Compensation Options Payouts Compensation
Position Year Salary($) Bonus($) ($)13 (Shares) ($)14 ($)15
- -----------------------------------------------------------------------------------------------------------------------
W. G. Hairston, III 1997 323,942 58,903 7,593 17,709 257,040 19,287
President and Chief 1996 308,789 46,748 3,555 15,583 257,040 17,070
Executive Officer 1995 296,988 47,489 6,020 15,785 289,170 16,442
Jack D. Woodard 1997 233,467 42,848 1,457 10,642 126,075 13,526
Executive Vice 1996 214,083 38,953 1,903 8,939 126,075 11,675
President 1995 202,085 37,116 1,235 8,969 141,834 10,215
James H. Miller, III 1997 222,117 40,388 5,948 10,031 126,075 12,838
Executive Vice 1996 211,583 16,193 5,115 8,827 126,075 11,260
President 1995 201,216 30,094 1,946 8,941 141,834 4,500
Charles K. McCoy 1997 171,817 27,661 1,262 7,729 84,048 9,758
Vice President 1996 166,829 19,638 835 6,933 84,047 8,136
1995 161,974 22,587 716 7,159 94,553 8,549
David N. Morey 1997 166,554 26,053 515 7,514 84,048 9,474
Vice President 1996 159,410 22,036 574 6,644 84,047 8,500
1995 152,701 20,447 146 6,051 94,553 7,865
13 Tax reimbursement by Southern Nuclear on certain personal benefits.
14 Payouts made in 1996, 1997 and 1998 for the four-year performance periods ending December 31, 1995, 1996 and 1997,
respectively.
15 Southern Nuclear contributions to the ESP, ESOP, non-pension
related accruals under the SBP (ERISA excess plan under which accruals are made
to offset Internal Revenue Code imposed limitations under the ESP and ESOP), for
the following:
ESP ESOP SBP
---- ---- ---
William G. Hairston, III $7,125 $1,072 $11,090
Jack D. Woodard 7,181 1,072 5,273
James H. Miller, III 7,181 1,072 4,585
Charles K. McCoy 7,125 1,072 1,561
David N. Morey 7,125 1,072 1,277
</TABLE>
31
<PAGE>
STOCK OPTION GRANTS IN 1997
Stock Option Grants. The following table sets forth all stock option
grants to the named executive officers of each operating subsidiary during the
year ending December 31, 1997. ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH
are incorporated by reference to page numbers III-19 and III-20 in the SOUTHERN
system's combined Form 10-K for the year ended December 31, 1997. Stock Option
Grants in 1997 for SOUTHERN is incorporated by reference to "Stock Option
Grants" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement
relating to 1997 annual meeting of stockholders.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Individual Grants Grant Date Value
Number of
Securities % of Total
Underlying Options Exercise
Share Granted to or
Options Employees in Base Price Expiration Grant Date
Name Granted16 Fiscal Year17 ($/Sh)18 Date 18 Present Value($)18
------------------------------------------------------------------------------------------------------------
SCS
A. W. Dahlberg 135,882 8.0 21.25 07/21/2007 1,445,785
Paul J. DeNicola 29,638 2.0 21.25 07/21/2007 169,529
Bill M. Guthrie 25,754 1.5 21.25 06/01/2000 147,313
David M. Ratcliffe 17,086 1.0 21.25 07/21/2007 97,732
William L. Westbrook 14,242 1.0 21.25 07/21/2007 81,464
Southern Communications
Robert G. Dawson 7,865 0.4 21.25 07/21/2007 44,988
R. Craig Elder 3,999 0.2 21.25 07/21/2007 22,874
Energy Solutions
J. Kevin Fletcher 4,773 0.3 21.25 07/21/2007 27,302
See footnotes on the next page.
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
STOCK OPTION GRANTS IN 1997
<S> <C> <C> <C> <C> <C>
Individual Grants Grant Date Value
Number of
Securities % of Total
Underlying Options Exercise
Share Granted to or
Options Employees in Base Price Expiration Grant Date
Name Granted16 Fiscal Year17 ($/Sh)18 Date18 Present Value($)18
-------------------------------------------------------------------------------------------------------------
Southern Energy
Thomas G. Boren 18,941 1.0 21.25 07/21/2007 108,343
S. Marce Fuller 13,529 0.8 21.25 07/21/2007 77,386
Richard J. Pershing 13,529 0.8 21.25 07/21/2007 77,386
Raymond D. Hill 13,529 0.8 21.25 07/21/2007 77,386
Joseph T. Pokalsky - - - - -
Southern Nuclear
William G. Hairston, III 17,709 1.0 21.25 07/21/2007 101,295
Jack D. Woodard 10,642 0.6 21.25 07/21/2007 60,872
James H. Miller, III 10,031 0.6 21.25 07/21/2007 57,377
Charles K. McCoy 7,729 0.4 21.25 07/21/2007 44,210
David N. Morey 7,514 0.4 21.25 07/21/2007 42,980
16 Performance Stock Plan grants were made on July 21, 1997, and vest 25% per year on the anniversary date
of the grant. Grants fully vest upon termination incident to death, disability, or retirement. The exercise
price is the average of the high and low fair market value of SOUTHERN's common stock on the date granted.
In accordance with the terms of the Performance Stock Plan, Mr. Guthrie's unexercised options expire on
June 1, 2000, three years after his normal date of retirement.
17 A total of 1,776,094 stock options were granted in 1997 to key executives participating in SOUTHERN's
Performance Stock Plan.
18 Based on the Black-Scholes option valuation model. The actual value, if any, an executive officer may
realize ultimately depends on the market value of the Company's common stock at a future date. This valuation
is provided pursuant to Securities and Exchange Commission disclosure rules. There is no assurance that
the value realized will be at or near the value estimated by the Black-Scholes model. Assumptions used to
calculate this value for the chairman: price volatility - 17.471 percent; risk-free rate of return - 6.49
percent; dividend yield - zero percent; and time to exercise - 10 years. Assumptions used to calculate this
value for other named executive officers: price volatility - 17.471 percent; risk-free rate of return - 6.49
percent; dividend yield - 3.06 percent; and time to exercise - 10 years. These assumptions reflect the effects
of cash dividend equivalents paid to participants at the target rates under the Performance Dividend Plan.
</TABLE>
33
<PAGE>
AGGREGATED STOCK OPTION EXERCISES IN 1997 AND YEAR-END OPTION VALUES
Aggregated Stock Option Exercises. The following table sets forth
information concerning options exercised during the year ending December 31,
1997 by the named executive officers and value of unexercised options held by
them as of December 31, 1997 ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH
are incorporated by reference to page numbers III-21 and III-22 in the SOUTHERN
system's combined Form 10-K for the year ended December 31, 1997 Aggregated
Stock Option Exercises in 1997 and Year-End Option Values information for
SOUTHERN is incorporated by reference to "Aggregated Stock Option Exercises in
1997 and Year-End Option Values" under ELECTION OF DIRECTORS in SOUTHERN's
definitive Proxy Statement relating to 1998 annual meeting of stockholders.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Value of
Number of Unexercised
Unexercised In-the-Money
Options at Options at
Fiscal Fiscal
Year-End (#) Year-End($)19
Shares Acquired Value Exercisable/ Exercisable/
Name on Exercise (#) Realized($)20 Unexercisable Unexercisable
- -------------------------------------------------------------------------------------------------------------
SCS
A. W. Dahlberg - - 193,347/288,708 1,249,649/1,148,129
Paul J. DeNicola - - 75,791/69,493 484,399/297,574
Bill M. Guthrie - - 91,055/51,865 788,903/223,534
David M. Ratcliffe - - 54,436/39,518 416,549/167,738
William L. Westbrook - - 20,401/32,569 104,375/137,134
Southern Communications
Robert G. Dawson - - 6,543/13,157 27,325/51,590
R. Craig Elder - - 0/3,999 0/18,495
Energy Solutions
J. Kevin Fletcher - - 3,051/9,9906 11,537/39,599
See footnotes on the next page.
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
AGGREGATED STOCK OPTION EXERCISES IN 1997 AND YEAR-END OPTION VALUES
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Value of
Number of Unexercised
Unexercised In-the-Money
Options at Options at
Fiscal Fiscal
Year-End (#) Year-End($)19
Shares Acquired Value Exercisable/ Exercisable/
Name on Exercise (#) Realized($)20 Unexercisable Unexercisable
- --------------------------------------------------------------------------------------------------------------
Southern Energy
Thomas G. Boren - - 28,832/39,456 153,707/168,837
S. Marce Fuller - - 2,220/20,190 6,383/81,722
Richard J. Pershing - - 2,220/20,190 6,383/81,722
Raymond D. Hill - - 2,220/20,190 6,383/81,722
Joseph T. Pokalsky - - 0/0 0/0
Southern Nuclear
William G. Hairston, III - - 33,535/41,222 171,004/176,576
Jack D. Woodard - - 18,819/23,746 95,275/100,955
James H. Miller, III - - 12,397/23,031 65,387/97,787
Charles K. McCoy - - 5,312/16,509 20,193/65,912
David N. Morey - - 4,686/15,523 17,632/61,939
19 This represents the excess of the fair market value as of December 31, 1997, of the option shares over exercise
price of the options. One column reports the "value" of options that are vested and therefore could be exercised;
the other the "value" of options that are not vested and therefore could not be exercised as of December 31, 1997.
20 The "Value Realized" is ordinary income, before taxes, and represents the amount equal to the excess of the fair
market value of the shares or rights at the time of exercise over the exercise price.
</TABLE>
35
<PAGE>
LONG-TERM INCENTIVE PLANS - AWARDS IN 1997
-------------------------------------------
Long-Term Incentive Awards. The following table sets forth the
long-term incentive plan awards made to the named executive officers for the
performance period January 1, 1997 through December 31, 2000. ALABAMA, GEORGIA,
GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers
III-23 and III-24 in the SOUTHERN system's combined Form 10-K for the year ended
December 31, 1997. Long-Term Incentive Plans- Awards information for SOUTHERN is
incorporated by reference to "Aggregated Stock Option Exercises in 1997 and
Year-End Option Values" under ELECTION OF DIRECTORS in SOUTHERN's definitive
Proxy Statement relating to the 1998 annual meeting of stockholders.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Estimated Future Payouts under
Non-Stock Price-Based Plans
Number Performance or
of Other Period
Units Until Maturation Threshold Target Maximum
Name (#)21 or Payout ($)22 ($)22 ($)22
- ---------------------------------------------------------------------------------------------------------------
SCS
A. W. Dahlberg 500,830 4 years 250,415 500,830 1,001,660
Paul J. DeNicola 277,290 4 years 138,645 277,290 554,580
Bill M. Guthrie 159,180 4 years 79,590 159,180 318,360
David M. Ratcliffe 134,814 4 years 67,407 134,814 269,628
William L. Westbrook 110,500 4 years 55,250 110,500 221,000
Southern Communications
Robert G. Dawson - - - - -
R. Craig Elder - - - - -
Energy Solutions
J. Kevin Fletcher 42,635 4 years 21,318 42,635 85,270
</TABLE>
See footnotes on the next page.
36
<PAGE>
<TABLE>
<CAPTION>
LONG-TERM INCENTIVE PLANS - AWARDS IN 1997
-------------------------------------------
<S> <C> <C> <C>
Estimated Future Payouts under
Non-Stock Price-Based Plans
-----------------------------
Number Performance or
of Other Period
Units Until Maturation Threshold Target Maximum
Name (#)21 or Payout ($)22 ($)22 ($)22
- ------------------------------------------------------------------------------------------------------------
Southern Energy
Thomas G. Boren 838,983 4 - 10 years - 0 -
S. Marce Fuller 499,395 4 - 10 years - 0 -
Richard J. Pershing 499,395 4 - 10 years - 0 -
Raymond D. Hill 499,395 4 - 10 years - 0 -
Joseph T. Pokalsky - - - - -
Southern Nuclear
William G. Hairston, III 167,142 4 years 83,571 167,142 334,284
Jack D. Woodard 81,854 4 years 40,927 81,854 163,708
James H. Miller, III 81,854 4 years 40,927 81,854 163,708
Charles K. McCoy 59,686 4 years 29,843 59,686 119,372
David N. Morey 59,686 4 years 29,843 59,686 119,372
21 A performance unit is a method of assigning a dollar value to a performance award opportunity. Under the
Executive Productivity Improvement Plan of the Company (the "plan"), the number of units granted to named executive
officers (except Mr. Boren who does not participate in the plan) is 50 to 65 percent of their base salary range midpoint
at the beginning of the performance period, with each unit valued at $1.00. No awards are paid unless the participant
remains employed by the Company through the end of the performance period.
The Compensation & Management Succession Committee awarded Mr. Boren 76,271 appreciation rights and 762,712
indexed rights, Ms. Fuller, and Messrs. Pershing and Hill each were awarded 45,400 appreciation rights and 453,995
indexed rights to the appreciation in the value of Southern Energy, Inc. over a term of ten years from March 15, 1997,
under the Southern Energy, Inc. Value Creation Plan. Each unit of phantom interest in Southern Energy, Inc. had an
initial value and exercise price of $10.00. Appreciation rights vest annually at a rate of 25 percent on the anniversary
date of the grant and indexed rights vest 100 percent on the fourth anniversary date of the grant.
22 The threshold, target, and maximum value of a unit under the plan is $0.50, $1.00, and $2.00, respectively, and can
vary based on the Company's return on common equity and total shareholder return relative to selected groups of electric and gas
utilities. If certain minimum performance relative to the selected groups is not achieved, there will be no payout; nor
is there a payout if the current earnings of the Company are not sufficient to fund the dividend rate paid in the last
calendar year. The plan provides that in the discretion of the committee extraordinary income may be excluded for purposes
of calculating the amount available for the payment of awards. All awards are payable in cash at the end of the
performance period.
The target value of a unit under the Southern Energy, Inc. Value Creation Plan is not determinable. The actual value,
if any, a participant may realize ultimately depends on the value of Southern Energy, Inc. at a future date. For
the indexed rights, the appreciation in value is adjusted by an interest rate over the ten-year period. As of December 31, 1997,
each unit of phantom interest in Southern Energy, Inc. had a value of less than the initial value. Based on the 1997 performance,
the rights issued under this plan would have no value.
</TABLE>
37
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- ------------------------------
PART III.
- -------
(b) Stock Ownership. The following tables show the number of shares of
SOUTHERN common stock and preferred stock owned by the directors, nominees and
executive officers as of December 31, 1997. It is based on information furnished
to SOUTHERN by the directors, nominees and executive officers. The shares owned
by all directors, nominees and executive officers of each company as a group
constitute less than one percent of the total number of shares of the respective
classes outstanding on December 31, 1997. SOUTHERN is incorporated by reference
to "Stock Ownership" under ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy
Statement relating to the 1998 annual meeting of stockholders. ALABAMA, GEORGIA,
GULF, MISSISSIPPI and SAVANNAH are incorporated by reference to page numbers
III-30 through III-35 in the SOUTHERN system's combined Form 10-K for the year
ended December 31, 1997.
<TABLE>
<CAPTION>
<S> <C> <C>
Name of Directors
or Nominees and Number of Shares
Executive Officers Title of Class Beneficially Owned (1)(2)
- ------------------ -------------- ------------------
SCS
A. W. Dahlberg SOUTHERN Common 255,790
Paul J. DeNicola SOUTHERN Common 109,746
H. Allen Franklin SOUTHERN Common 146,255
Elmer B. Harris SOUTHERN Common 204,339
Bill M. Guthrie SOUTHERN Common 139,031
David M. Ratcliffe SOUTHERN Common 64,270
William L. Westbrook SOUTHERN Common 80,288
The directors, nominees
and executive officers
of SCS as a Group SOUTHERN Common 1,062,705 shares
SEGCO
Robert L. Boyer SOUTHERN Common 44,960
H. Allen Franklin SOUTHERN Common 146,255
Bill M. Guthrie SOUTHERN Common 139,031
Elmer B. Harris SOUTHERN Common 204,339
Robert H. Haubein, Jr. SOUTHERN Common 27,243
William B. Hutchins, III SOUTHERN Common 46,463
</TABLE>
38
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- -----------------------------------
PART III.
- --------
<TABLE>
<CAPTION>
<S> <C> <C>
Name of Directors
or Nominees and Number of Shares
Executive Officers Title of Class Beneficially Owned (1)(2)
- ------------------ -------------- ------------------
SEGCO (continued)
Warren Y. Jobe SOUTHERN Common 60,369
GEORGIA Preferred 200
Charles D. McCrary SOUTHERN Common 30,576
Earl B. Parsons, Jr. SOUTHERN Common 8,836
The directors, nominees
and executive officers
of SEGCO as a Group SOUTHERN Common 707,722 shares
GEORGIA Preferred 200 shares
Southern Communications
A. W. Dahlberg SOUTHERN Common 255,790
Robert G. Dawson SOUTHERN Common 27,429
Paul J. DeNicola SOUTHERN Common 109,746
H. Allen Franklin SOUTHERN Common 146,255
Elmer B. Harris SOUTHERN Common 204,339
W. L. Westbrook SOUTHERN Common 80,288
R. Craig Elder SOUTHERN Common 4,725
The directors, nominees
and executive officers
of Southern Communications
as a Group SOUTHERN Common 828,572 shares
</TABLE>
39
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- -----------------------------------
PART III.
- ---------
<TABLE>
<CAPTION>
<S> <C> <C>
Name of Directors
or Nominees and Number of Shares
Executive Officers Title of Class Beneficially Owned (1)(2)
- ------------------ -------------- ------------------
Energy Solutions
Robert S. Beason SOUTHERN Common 10,693
William P. Bowers SOUTHERN Common 10,158
Paul J. DeNicola SOUTHERN Common 109,746
Dwight E. Evans SOUTHERN Common 51,740
GEORGIA Preferred 400
MISSISSIPPI Preferred 200
SOUTHERN Preferred 200
J. Kevin Fletcher SOUTHERN Common 10,965
The directors, nominees
and executive officers
of Energy Solutions
as a Group SOUTHERN Common 192,512 shares
GEORGIA Preferred 400 shares
MISSISSIPPI Preferred 200 shares
SOUTHERN Preferred 200 shares
Southern Energy
Thomas G. Boren SOUTHERN Common 41,526
A. W. Dahlberg SOUTHERN Common 255,790
Paul J. DeNicola SOUTHERN Common 109,746
H. Allen Franklin SOUTHERN Common 146,255
W. L. Westbrook SOUTHERN Common 80,288
S. Marce Fuller SOUTHERN Common 5,459
Raymond D. Hill SOUTHERN Common 3,716
40
</TABLE>
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- ----------------------------------
PART III.
- ---------
<TABLE>
<CAPTION>
<S> <C> <C>
Name of Directors
or Nominees and Number of Shares
Executive Officers Title of Class Beneficially Owned (1)(2)
- ------------------ -------------- ------------------
Southern Energy (continued)
Richard J. Pershing SOUTHERN Common 24,518
The directors, nominees
and executive officers
of Southern Energy as a Group SOUTHERN Common 995,289 shares
Southern Nuclear
A. W. Dahlberg SOUTHERN Common 255,790
Paul J. DeNicola SOUTHERN Common 109,746
H. Allen Franklin SOUTHERN Common 146,255
William G. Hairston, III SOUTHERN Common 52,906
Elmer B. Harris SOUTHERN Common 204,339
Charles K. McCoy SOUTHERN Common 6,333
James H. Miller, III SOUTHERN Common 15,375
David N. Morey SOUTHERN Common 20,802
Jack D. Woodard SOUTHERN Common 43,929
The directors, nominees
and executive officers of
Southern Nuclear
as a Group SOUTHERN Common 860,859 shares
ALABAMA Preferred 40 shares
Notes to Item 6, Part III(b):
(1) As used in these tables, "beneficial ownership" means the sole or shared power to vote, or to
direct the voting of, a security and/or investment power with respect to a security (i.e., the power
to dispose of, or to direct the disposition of, a security).
(2) The shares shown include shares of common stock of which certain directors and officers have the right to acquire
beneficial ownership within 60 days pursuant to the Executive Stock Option Plan, as follows: Mr. Beason, 3,142
shares; Mr. Boren, 28,832 shares; Mr. Bowden, 65,767 shares; Mr. Bowers, 2,966 shares; Mr. Boyer, 4,415 shares;
Mr. Dahlberg, 193,347 shares; Mr. Dawson, 6,543 shares; Mr. DeNicola, 75,791 shares; Mr. Evans, 31,172 shares;
Mr. Fletcher, 3,051 shares; Mr. Franklin, 120,384 shares; Mr. Guthrie, 91,055 shares; Mr. Hairston, 33,535 shares;
Mr. Harris, 150,793 shares; Mr. Hodges, 25,873 shares; Mr. Haubein, 24,693 shares; Mr. Hutchins, 23,799 shares;
Mr. McCoy, 5,312 shares; Mr. Miller, 12,397 shares; Mr. Morey, 4,686 shares; Mr. Newman, 11,702 shares; Mr. Parsons,
6,005 shares; Mr. Ratcliffe, 54,436 shares; Mr. Westbrook, 20,401 shares; and Mr. Woodard, 18,819 shares. Also
included are shares of SOUTHERN common stock held by the spouse of the Mr. Harris, 310 shares.
</TABLE>
41
<PAGE>
ITEM 6. OFFICERS AND DIRECTORS.
- -----------------------------------
PART III.
- --------
(c) Contracts and transactions with system companies.
ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH are incorporated by
reference to page numbers III-36 and III-37 in the SOUTHERN system's
combined Form 10-K for the year ended December 31, 1997.
(d) Indebtedness to system companies.
None.
(e) Participation in bonus and profit sharing arrangements and other benefits.
SOUTHERN is incorporated by reference to "Executive Compensation" under
ELECTION OF DIRECTORS in SOUTHERN's definitive Proxy Statement relating to
the 1998 annual meeting of stockholders.
(f) Rights to indemnity.
Incorporated by reference are the by-laws, for the companies of the
SOUTHERN system, contained herein as Exhibits.
42
<PAGE>
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS.
- -------------------------------------------
(1) Expenditures, disbursements or payments, directly or indirectly, in
money, goods or services, to or for the account of any political party,
candidate for public office or holder of such office, or any committee or agent
thereof.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Accounts Charged,
if any, per Books
of Disbursing
Name of Company Name of Recipient or Beneficiary Purpose Company Amount($)
- --------------- -------------------------------- ------- ------------- ---------
None
ALABAMA, GEORGIA, GULF, MISSISSIPPI and SAVANNAH have established political action committees and
have incurred certain costs in the administration of these committees in accordance with the provisions of the
Federal Election Campaign Act and the Public Utility Holding Company Act.
(2) Expenditures, disbursements or payments, directly or indirectly, in money, goods or services, to or
for the account of any citizens group or public relations counsel.
The information called for by this item was compiled, and memoranda from each company in the system
were received and are being preserved by SOUTHERN, in accordance with the instructions to this item.
Accounts Charged,
if any, per Books
of Disbursing
Name of Company Name of Recipient or Beneficiary Purpose Company Amount($)
- --------------- -------------------------------- ------- ------- ---------
SOUTHERN American Cancer Society Support 426 500
Carl E. Sanders YMCA Support 426 25,000
Rand Nature Center - Bahamas Support 426 11,425
Resources for the Future Support 426 25,000
ALABAMA Business Council of Alabama Dues & Support 930,426 93,546
Cahaba River Society Dues & Support 793,426 12,135
Edison Electric Institute Dues 923,930 533,147
National Association of Manufacturers Dues 426 12,250
Nature Conservancy Support 426 11,100
Nuclear Energy Institute Dues 524,426 359,686
Public Affairs Research Council of Alabama Dues & Support 930,426 17,280
</TABLE>
43
<PAGE>
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued)
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Accounts Charged,
if any, per Books
of Disbursing
Name of Company Name of Recipient or Beneficiary Purpose Company Amount($)
- --------------- -------------------------------- ------- ------- ---------
GEORGIA American National Standards Institute Dues 930 15,223
Buckhead Coalition Dues 930 5,000
Central Atlanta Progress Dues 930 25,500
Clean Air Action Dues 930 20,000
Edison Electric Institute Dues 426,930 735,876
Georgia Conservancy Support 426 100,000
Georgia Council on Economic Education Dues N/A 26,666*
Georgia Electrification Council, Inc. Dues 930 38,500
National Association of Manufacturers Dues 930 10,000
Nature Conservancy Support 426 20,000
Nuclear Energy Institute Dues 524,426 410,338**
GULF Associated Industries of Florida Dues 426 2,670
City of Crestview - Downtown
Redevelopment & Revitalization Project Support 912 10,000
Florida Public Relations Association Dues 921 850
Florida State Society of Washington, D.C. Dues 426 300
Florida Taxwatch, Inc. Dues 426 5,000
Northwest Florida Regional Economic
Development Coalition Support 912 188,056
Pensacola Area Chamber of Commerce Support 912 50,222
Santa Rosa County Authority for
Economic Activity Support 912 10,000
University of West Florida - Center for
Business Research & Economic
Development Support 912 27,300
Washington County Chamber of Commerce Support 912 10,000
Other Economic Development Councils/
Activity Groups (13 Beneficiaries) Dues & Support 426,912,921,930 23,220
MISSISSIPPI Area Development Partnership Dues 930 6,000
East Mississippi Business Development
Corporation Dues 930 10,000
Economic Development Authority of
Jones County Dues 930 2,750
Edison Electric Institute Dues 930 60,933
Jackson County Economic Development Dues 930 4,000
Mississippi Gulf Coast Chamber
of Commerce Dues 930 2,920
Mississippi Manufacturers Association Dues 930 2,000
Mississippi Nature Conservancy Dues 930 5,000
* Georgia Power Foundation.
** Excludes dues billed to joint owners of Plants Hatch and Vogtle.
</TABLE>
44
<PAGE>
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS. (Continued)
- -----------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Accounts Charged,
if any, per Books
of Disbursing
Name of Company Name of Recipient or Beneficiary Purpose Company Amount($)
- --------------- -------------------------------- ------- ------- ---------
SAVANNAH American Economic Development Council Dues 930 305
Association County Commissioners
of Georgia Dues 930 500
Economic Opportunity Authority Support 426 250
Edison Electric Institute Dues 426,930 47,356
Georgia Economic Developers Association Dues 930 200
Georgia Municipal Association Dues 930 500
Georgia Quality Workforce Business
Alliance Dues 930 150
Nature Conservancy Support 426 1,000
National Council for Urban Economic
Development Dues 930 295
Southern Economic Development
Council Dues 930 250
Utilities State Government Organization Membership 426 150
</TABLE>
45
<PAGE>
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS.
- -----------------------------------------------------------
PART I.
- ------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
In Effect
on Dec. 31
Transactions Serving Company Receiving Company Compensation Contract (Yes or No)
(1) (2) (3) (4) (5) (6)
- ----------------------------------------------------------------------------------------------------------------------
(Note) (Note) SEI (Note) (Note) Yes
(Note) (Note) Southern Communications (Note) (Note) Yes
(Note) (Note) Energy Solutions (Note) (Note) Yes
Sublease of railcars MISSISSIPPI ALABAMA $78,778 Yes
Sublease of railcars MISSISSIPPI GEORGIA $2,693 Yes
Sublease of railcars SAVANNAH ALABAMA $16,027 Yes
Sublease of railcars SAVANNAH GEORGIA $59,522 Yes
Sublease of railcars SAVANNAH MISSISSIPPI $7,560 Yes
Note:
Southern Energy, Southern Communications, and Energy Solutions have agreements with SCS, ALABAMA, GEORGIA, GULF,
MISSISSIPPI and SAVANNAH pursuant to which Southern Energy, Southern Communications and Energy Solutions reimburse
each of such companies for the full cost of services, personnel and facilities provided to Southern Energy, Southern
Communications and Energy Solutions.
Pursuant to such agreements, during 1997 the total reimbursements to SCS, ALABAMA, GEORGIA, GULF, MISSISSIPPI and
SAVANNAH from Southern Energy were $10,779,336; $256,450; $1,009,144; $52,710; $93,054; and $9,573, respectively;
from Southern Communications were were $26,094,245; $1,087,362; $1,396,034; $215,847; $542,297; and $59,221, respectively;
and from Energy Solutions were $17,904,000 $1,826,000; $3,329,000; $92,000; $52,000; and $0, respectively.
</TABLE>
Part II.
None.
Part III.
SAVANNAH - LCG Associates, Inc. - Pension Advisors - $10,000.
46
<PAGE>
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES.
- --------------------------------------------------------------
Part I(a)
- ---------
Key terms: FUCO means Foreign Utility Company FUCO-S means a
subsidiary of a FUCO EWG means Exempt Wholesale Generator IS
means Intermediate Subsidiary PP means Project Parent SPS
means Special Purpose Subsidiary
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, IS TRANSMISSION,
DISTRIBUTION
- --------------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
----------------------------
1. Southern Electric Bahamas IS N/A N/A N/A Southern Energy-Newco2, 100%
Holdings, Ltd. Inc.
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
2. Southern Electric Bahamas, Ltd. IS N/A N/A N/A Southern Electric 100%
900 Ashwood Parkway, Suite 500 Bahamas Holdings, Ltd.
Atlanta, GA 30338
3. ICD Utilities Limited IS N/A N/A N/A Southern Electric 25%
P.O. Box F-42666 Bahamas, Ltd.
Freeport, Grand Bahamas, Bahamas Foreign Company 75%
4. Freeport Power Company, Ltd. FUCO Note Note Note Southern Electric 62.5%
Freeport, Grand Bahamas, Bahamas (1) (2) (3) Bahamas, Ltd.
Port Authority Building Third Party 37.5%
P.O. Box F-40888
Freeport, Grand Bahamas, Bahamas
5. SEI Operadora de Argentina, S.A. FUCO N/A N/A N/A Southern Energy 99.99%
Buenos Aires, Argentina Resources, Inc.
LN Alem 712 - Piso 7 Southern Energy, Inc. .01%
(1001) Buenos Aires, Argentina
6. Southern Electric International Asia, Inc. SPS N/A N/A N/A Southern Energy 100%
18/F Hong Kong Telecom Tower Resources Inc.
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
7. Southern Electric International GmbH, Inc. SPS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 Resources Inc.
Atlanta, GA 30338
8. Southern Energy Inc. (formerly known as IS N/A N/A N/A The Southern Co. 100%
SEI Holdings, Inc.)
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
9. Asociados de Electricidad, S.A. IS N/A N/A N/A Southern Energy, Inc. 100%
Buenos Aires, Argentina
LN Alem 712 - Piso 7
(1001) Buenos Aires, Argentina
</TABLE>
47
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ----------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
10. SEI y Asociados de Argentina, S.A. IS N/A N/A N/A Southern Energy, Inc.
Buenos Aires, Argentina SEI Worldwide 40.52
LN Alem 712 - Piso 7 Holdings GmbH
(1001) Buenos Aires, Argentina Asociados de 45.79
Electricidad, S.A.
Third Party 7.14
6.55
11. Hidroelectrica Alicura, S.A. FUCO Note N/A N/A SEI y Asociados de 59%
Buenos Aires, Argentina (1) Argentina, S.A.
LN Alem 712 - Piso 7 Third Party 41%
(1001) Buenos Aires, Argentina
12. Southern Energy Resources, Inc. (formerly IS N/A N/A N/A Southern Energy, Inc. 100%
known as Southern Energy, Inc.)
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
13. SEI Chile, S.A. IS N/A N/A N/A Southern 100%
Apoquindo 3721 Energy-Newco2, Inc.
Oficina 114
Edificio "Torre Las Condes"
Las Condes, Chile
14. Inversiones SEI Chile Limitada IS N/A N/A N/A SEI Chile, S.A. 99%
Apoquindo 3721 Southern Energy, 1%
Oficina 114 Inc.
Edificio "Torre Las Condes"
Las Condes, Chile
15. Electrica SEI Chile Limitada (Inactive) IS N/A N/A N/A SEI Chile, S.A. 97.05%
Apoquindo 3721 Southern Energy,
Oficina 114 Inc 1%
Edificio "Torre Las Condes"
Las Condes, Chile
16. Empresa Electrica del Norte Grande, S.A. FUCO Note Note N/A Inversiones SEI 26.63%
Antofagasta, Chile (3) (2) Chile Ltda
Avenida Grecia 750 Electrica SEI Chile 38.35%
Casilla 1290 Ltda
Antofagasta, Chile Third Party 35.02%
17. Sitranor S. A. SUB N/A N/A N/A Empressa Electrica 60%
Antofagasta, Chile OF del
Avenida Grecia 750 FUCO Norte Grande, SA
Casilla 1290 Third Party 40%
Antofagasta, Chile
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
-------- --------- --------
GEN TRAN DIST
-------- --------- --------
18. Energia del Pacifico IS N/A N/A N/A SEI Chile, S.A. 99.9%
Apoquindo 3721, Oficina 114 Southern Energy
Edificio, Las Condes, Santiago, Chile International, Inc. .1%
19. Energia de Nuevo Leon, SA De CV FUCO N/A N/A N/A The Southern Company 33.33%
900 Ashwood Parkway, Suite 500 Third Party
Atlanta, GA 30338 66.66%
20. Southern Electric International, Europe Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 International, Inc.
Atlanta, GA 30338
21. Southern Electric International, Inc. IS N/A N/A N/A Southern Energy,
900 Ashwood Parkway, Suite 500 Inc. 100%
Atlanta, GA 30338
22. Southern Investment UK, plc IS N/A N/A N/A SWEB Holdings 100%
31 Curzon Street Limited
London, WIY 7AE
England
23. South West Electricity, plc FUCO Note N/A Note Southern Investment 100%
800 Park Avenue (1) (3) UK, plc
Aztec West
Almondsbury, Bristol BS12 4SE
24. Electricity Association Limited FUCO SUB N/A N/A N/A South Western 5.9%
800 Park Avenue Electricity, plc
Aztec West Third Party 94.1%
Almondsbury, Bristol BS12 4SE
25. SWEB Finance Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
26. Electricity Association Technology Limited SUB N/A N/A N/A South Western 7.7%
Capenhurst OF Electricity, plc 92.3%
Chester CH1 6ES FUCO Third Party
27. SWEB Telecom Limited (Inactive) SUB N/A N/A N/A South Western 100%
800 Park Avenue OF Electricity, plc
Aztec West FUCO
Almondsbury, Bristol BS12 4SE
28. SWEB Gas Limited (Inactive) SUB N/A N/A N/A South Western 100%
800 Park Avenue OF Electricity, plc
Aztec West FUCO
Almondsbury, Bristol BS12 4SE
</TABLE>
49
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
-------- --------- --------
29. South Western Energy Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
30. SWEB Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
31. SWEB Natural Gas Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
32. South Western Natural Gas Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
33.Western Natural Gas Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
34. SWEB Retail Limited (Inactive) FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
35. Electricity Pensions Limited FUCO SUB N/A N/A N/A South Western 0%
110 Buckingham Palace Road Electricity, plc Note (4)
London SW1 W9SL
36. Electricity Pensions Trustee Limited FUCO SUB N/A N/A N/A South Western 5%
110 Buckingham Palace Road Electricity, plc
London SW1 W9SL Third Party 95%
37. ESN Holdings Limited FUCO SUB N/A N/A N/A South Western 4.5%
800 Park Avenue Electricity, plc
Aztec West Third Party 95.5%
Almondsbury, Bristol BS12 4SE
38. REC Collect Limited FUCO SUB N/A N/A N/A South Western 25.0%
800 Park Avenue Electricity, plc
Aztec West Third Party 75.0%
Almondsbury, Bristol BS12 4SE
</TABLE>
50
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
39. South Western Power Limited FUCO SUB Note N/A N/A South Western 100%
800 Park Avenue (1) Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
40. South Western Power Investments Limited FUCO SUB N/A N/A N/A South Western Power 100%
800 Park Avenue Limited
Aztec West
Almondsbury, Bristol BS12 4SE
41. Non-Fossil Purchasing Agency Limited FUCO SUB N/A N/A N/A South Western 8.3%
Bamburgh House Electricity, plc
Market Street Third Party 91.7%
Newcastle-upon-Tyne NE1 6BH
42. Winterton Power Limited FUCO SUB Note N/A N/A South Western Power 25.0%
800 Park Avenue (1) Investments Limited
Aztec West Third Party
Almondsbury, Bristol BS12 4SE 75.0%
43. Teeside Power Limited FUCO SUB Note N/A N/A South Western Power 7.7%
4 Millbank (1) Investments Limited
Westminster Third Party
London SW1P 3ET 92.3%
44. Wind Resources Limited FUCO SUB N/A N/A N/A South Western Power 45.0%
800 Park Avenue Investments Limited
Aztec West Third Party
Almondsbury, Bristol BS12 4SE 55.0%
45. Coal Clough Limited FUCO SUB Note N/A N/A Wind Resources 100%
800 Park Avenue (1) Limited
Aztec West
Almondsbury, Bristol BS12 4SE
46. Carland Cross Limited FUCO SUB Note N/A N/A Wind Resources 100%
800 Park Avenue (1) Limited
Aztec West
Almondsbury, Bristol BS12 4SE
47. SWEB Property Investments Ltd. FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
48. SWEB Property Developments Ltd. FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
</TABLE>
51
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
49. Temple Back Developments Ltd. FUCO SUB N/A N/A N/A SWEB Property 49.0%
800 Park Avenue Developments Ltd.
Aztec West Third Party
Almondsbury, Bristol BS12 4SE 51.0%
50. Weston Super Mare Developments Limited FUCO SUB N/A N/A N/A Temple Back 100%
800 Park Avenue Developments, Ltd.
Aztec West
Almondsbury, Bristol BS12 4SE
51. SWEB Investments Limited FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
52. South West Enterprise Limited FUCO SUB N/A N/A N/A South Western 0%
800 Park Avenue Electricity, plc Note (4)
Aztec West
Almondsbury, Bristol BS12 4SE
53. Croeso Systems Development Ltd. FUCO SUB N/A N/A N/A SWEB Investments 50.0%
Newport Road 1996 Limited
St Mellons Third Party
Cardiff CF3 9XW 50.0%
54. Midlands Enterprises Fund FUCO N/A N/A N/A SWEB Investments 26.80%
Newport Road SUB 1996 Limited
St Mellons
Cardiff CF3 9XW
55.Wind Electric Limited FUCO SUB N/A N/A N/A South Western Power 11.7%
Deli Investments Limited
Delabole Third Party
Cornwall PL33 9BZ 88.3%
56.St. Clements Services Limited FUCO SUB N/A N/A N/A South Western 9.1%
210 High Holborn Electricity, plc
London WC1V 7BW Third Party 90.9%
57.SWEB Data Collection Services Limited FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
58.SWEB Investments 1996 Limited FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
</TABLE>
52
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
59.UK Data Collections Services Limited FUCO SUB N/A N/A N/A South Western 8.3%
Chesterton House Electricity, plc
352 Avebury Boulevard Third Party 91.7%
Central Milton Keynes MK9 2JH
60. South Western Helicopters Limited FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
61. Concorde House Limited FUCO SUB N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
62.SWEB Insurance Limited FUCO N/A N/A N/A South Western 100%
Dixcart House, Sir William Place SUB Electricity, plc
St. Peter Port, Guernsey
Channel Islands GY 1 4NB
63. AZTEC Insurance Ltd. FUCO SUB N/A N/A N/A South Western 100%
Dixcart House, Sir William Place Electricity, plc
St Peter Port, Guernsey
Channel Islands GY1 4NB
64. SWEB Pension Trustee Limited IS N/A N/A N/A South Western 100%
800 Park Avenue Electricity, plc
Aztec West
Almondsbury, Bristol BS12 4SE
65. South Western Electricity Share Scheme FUCO SUB N/A N/A N/A South Western 100%
Trustees Limited (Inactive) Electricity, plc
800 Park Avenue
Aztec West
Almondsbury, Bristol BS12 4SE
66.Electralink Limited FUCO SUB N/A N/A N/A South Western 6.19%
Templar House Electricity, plc
81-87 High Holborn Third parties 93.81%
London WC1V 6NU
67.Northmere Limited FUCO SUB N/A N/A N/A South Western 0%
30 Millbank Electricity plc
London SW1P 4RD + Others
68.Green Electron Limited FUCO SUB N/A N/A N/A South Western 90%
30 Millbank Electricity plc
London SW1P 4RD Third party 10%
</TABLE>
53
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- -----------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
-------- -------- --------
69. Southern Electric International -Netherlands B.V. IS N/A N/A N/A Southern Electric 100%
(formerly Tesro Holding, B.V.) International -
Amsterdam, The Netherlands Europe, Inc.
Hoekenrode 6-8
1102 BR Amsterdam
The Netherlands
70.Zamojska Spolka Energetycnza s.p. 2.0.0 FUCO N/A N/A N/A Southern Electric 49%
1 Kozmiana Street International -
22-400 Zamosc Netherlands B.V.
Poland Third Party 51%
71.Southern Energy UK Generation Limited IS N/A N/A N/A Southern Electric 100%
900 Ashwood Parkway, Suite 500 International -
Atlanta, GA 30338 Europe, Inc.
72.Southern Energy Development - Europe Limited SPS N/A N/A N/A Southern Electric 100%
900 Ashwood Parkway, Suite 500 International -
Atlanta, GA 30338 Europe, Inc
73. Southern Electric, Inc. EWG N/A N/A N/A Southern Energy, 100%
900 Ashwood Parkway, Suite 500 Inc.
Atlanta, GA 30338
74. SEI Beteilligungs, GmbH IS N/A N/A N/A Southern
900 Ashwood Parkway, Suite 500 Energy-Newco2, 100%
Atlanta, GA 30338 Inc.
75. P.T. Tarahan Power Company FUCO N/A N/A N/A SEI 55%
JL.H.R. Rasuna Said Kav B-1 Beteilligungs,
Gedung Wisma Bakrie Setiabudi GmbH
Jakarta, Selatan 12920 Third Party 45%
76. Southern Electric International Trinidad, Inc. EWG N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 International,
Atlanta, GA 30338 Inc.
77. The Power Generation Company of EWG Note N/A N/A Southern Electric 39%
Trinidad & Tobago, Limited (1) International
6A Queens Park West Trinidad, Inc.
Port of Spain, Trinidad, West Indies Third Party 61%
78. Southern Electric do Brasil Participacoes, IS N/A N/A N/A Cayman Energy 90.6%
Limitada Traders
900 Ashwood Parkway, Suite 500 Foreign Pension 9.4%
Atlanta, GA 30338
</TABLE>
54
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ----------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
79. Southern Energy North America, Inc. IS N/A N/A N/A Southern Energy, 100%
(formerly Southern Electric Wholesale Inc.
Generators, Inc.)
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
80. Southern Energy Trading and Marketing, IS N/A N/A N/A Southern Energy 100%
Inc. (formerly Southern Energy Marketing North America, Inc.
Inc.)
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
81. SC Energy Ventures, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 Trading and
Atlanta, GA 30338 Marketing, Inc.
82. Southern Company Energy Marketing L.P. IS N/A N/A N/A SC Energy Ventures, 59.4%
900 Ashwood Parkway, Suite 500 Inc.
Atlanta, GA 30338 Southern Company 1%
Energy Marketing
G.P., L.L.C
Domestic Corporation
39.6%
83. Southern Company Retail Energy Marketing L.P. IS N/A N/A N/A Southern Company 99%
900 Ashwood Parkway, Suite 500 Energy Marketing
Atlanta, GA 30338 L.P.,
Southern Company 1%
Energy Marketing
G.P. L.L.C.
84. Southern Energy Retail Trading and IS N/A N/A N/A Southern Energy 100%
Marketing, Inc. Trading and
900 Ashwood Parkway, Suite 500 Marketing, Inc.
Atlanta, GA 30338
85. SC Ashwood Holdings, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 Trading and
Atlanta, GA 30338 Marketing, Inc.
86. Southern Company Energy Marketing G.P., IS N/A N/A N/A SC Ashwood 60%
L.L.C. Holdings, Inc.
900 Ashwood Parkway, Suite 500 Domestic Corporation 40%
Atlanta, GA 30338
87. SEI Birchwood, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 North America Inc.
Atlanta, GA 30338
</TABLE>
55
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
88. Greenhost, Inc. EWG N/A N/A N/A SEI Birchwood, Inc. 50%
900 Ashwood Parkway, Suite 500 Domestic Corporation
Atlanta, GA 30338 50%
89. Birchwood Power Partners, L.P. EWG Note N/A N/A SEI Birchwood, Inc. 50%
900 Ashwood Parkway, Suite 500 (1) Third Party
Atlanta, GA 30338 50%
90. SEI Hawaiian Cogenerators, Inc. EWG N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 North America, Inc.
Atlanta, GA 30338
91. Southern Energy - Cajun, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 North America, Inc.
Atlanta, GA 30338
92.Louisiana Generating, LLC IS N/A N/A N/A Southern 40%
900 Ashwood Parkway, Suite 500 Energy-Cajun, Inc.
Atlanta, GA 30338 Third Party 60%
93. SEI State Line, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 North America, Inc.
Atlanta, GA 30338
94. State Line Holding Corporation IS N/A N/A N/A SEI State Line, Inc. 100%
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
95. State Line Energy, L.L.C. EWG N/A N/A N/A SEI State Line, Inc. 60%
900 Ashwood Parkway, Suite 500 State Line Holding
Atlanta, GA 30338 Corporation 40%
96. Southern Energy International, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 Inc.
Atlanta, GA 30338
97. Southern Energy do Brazil Ltda. SPS N/A N/A N/A Southern Energy 99.85%
900 Ashwood Parkway, Suite 500 International, Inc.
Atlanta, GA 30338 Southern Energy .15%
Resources, Inc.
98. Southern Energy-Newco2, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 International, Inc.
Atlanta, GA 30338
</TABLE>
56
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
99. Southern Energy- Asia, Inc. IS N/A N/A N/A Southern Energy 100%
Suite 1401, Two Exchange Square International, Inc.
8 Connaught Place
Hong Kong
100.Consolidated Electric Power Asia Limited SPS N/A N/A N/A Southern Energy 80.004%
18/F Hong Kong Telecom Tower Asia, Inc.
Taikoo Place Foreign Corp 19.996%
979 King's Road
Quarry Bay, Hong Kong
101.Allied Queensland Coalfields, Ltd SPS N/A N/A N/A CEPA Mining and 95.17%
18/F Hong Kong Telecom Tower Engineering Limited
Taikoo Place Marsford
979 King's Road Investments Ptd. 4.83%
Quarry Bay, Hong Kong Centre Ltd.
Hong Kong
102.Aberdare Collieries Pty Limited SPS N/A N/A N/A Allied Queensland 100%
18/F Hong Kong Telecom Tower Coalfield Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
103.AQC (Wilkie Creek) Pty Ltd. SPS N/A N/A N/A AQC (Kogan Creek) 100%
18/F Hong Kong Telecom Tower Pty Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
104.AQC (Kogan Creek) Pty Limited SPS N/A N/A N/A Allied Queensland 100%
18/F Hong Kong Telecom Tower Coalfields Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
105.Baralaba Coal Pty Limited SPS N/A N/A N/A Allied Queensland 100%
18/F Hong Kong Telecom Tower Coalfields Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
106.CEPA Power China (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
</TABLE>
57
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
107.CEPA Energy (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
108.CEPA Project Management (BVI) Company Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
109.CEPA Energy International (BVI) Limited SPS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
110.CEPA Slipform Power Systems (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
111.CEPA Tileman Power Systems (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
112.CEPA Mobile Power Systems (BVI) IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
113.CEPA Guangxi Energy (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
114.CEPA Nominee (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
</TABLE>
58
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
115.CEPA Construction Resources (BVI) SPS N/A N/A N/A CEPA Construction 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
116. Consolidated Construction Resources Limited SPS N/A N/A N/A CEPA Construction 50%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
117. HOPEC Engineering Design Limited SPS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Construction
Taikoo Place Resources Limited
979 King's Road
Quarry Bay, Hong Kong
118.CEPA Construction (Hong Kong) Limited SPS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
119.CEPA Operations, (Hong Kong) Limited SPS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
120.CEPA Eastern Power Plant Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
121.CEPA Pangasinan Electric Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
122.CEPA Pakistan (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
</TABLE>
59
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
123.CEPA India (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
124.CEPA Operations (Phillippines) Corp. SPS N/A N/A N/A CEPA Operations, 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
125.CEPA Project Management and Engineering IS N/A N/A N/A Consolidated 100%
(BVI) Limited Electric Power Asia
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
126.CEPA Energy Pakistan Limited FUCO N/A N/A N/A CEPA Pakistan 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
127.CEPA Procurement (BVI) Ltd IS N/A N/A N/A CEPA Construction 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
128.CEPA Sourcing (BVI) Ltd IS N/A N/A N/A CEPA Construction 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
129.CEPA Procurement (Delaware) L.L.C. SPS N/A N/A N/A CEPA (BVI) 51%
18/F Hong Kong Telecom Tower Procurement Limited
Taikoo Place CEPA Sourcing
979 King's Road Limited 49%
Quarry Bay, Hong Kong
</TABLE>
60
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
130.CEPA Mining and Engineering Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
131.Marsford Investments Pte Ltd. I/S N/A N/A N/A CEPA Mining and 100%
18/F Hong Kong Telecom Tower Engineering Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
132.Carrigon Management Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
133.Cachelot Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
134.CEPA Services Corp. SPS N/A N/A N/A Hopewell Mobil 100%
18/F Hong Kong Telecom Tower Power Systems Corp.
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
135.CEPA Investment (Mauritius) Limited IS N/A N/A N/A CEPA India (BVI) 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
136.Consolidated Electric Power Asia Limited FUCO N/A N/A N/A CEPA Investment 100%
(India) Private Limited (Mauritius) Limited
18/F Hong Kong Telecom Tower
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
</TABLE>
61
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
137.CEPA Guangxi Energy Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
138.Excellent Crown Limited SPS N/A N/A N/A Montana Enterprises 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
139.Fortune Wheels Investment Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place, 979 King's Road Limited
Quarry Bay, Hong Kong
140.Five Stars Venture Limited IS N/A N/A N/A CEPA Operations 16.98%
18/F Hong Kong Telecom Tower (Hong Kong) Limited
Taikoo Place CEPA Project
979 King's Road Management and 15.11%
Quarry Bay, Hong Kong Engineering (BVI)
Limited
CEPA Construction
(Hong Kong) Limited 67.91%
141.Hopewell Project Management Company Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
142.Hopewell Energy Limited IS N/A N/A N/A Consolidated 80%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road Foreign Company 20%
Quarry Bay, Hong Kong
143.Guangdong Guanghope Power Co., Ltd. FUCO N/A N/A N/A Hopewell Energy 40%
18/F Hong Kong Telecom Tower Limited
Taikoo Place Foreign Company 60%
979 King's Road
Quarry Bay, Hong Kong
</TABLE>
62
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
144.Hopewell Energy International Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
145.Hopewell Energy (Phillippines) Corp. FUCO N/A N/A N/A Hopewell Project 60.1%
18/F Hong Kong Telecom Tower Management Company
Taikoo Place Limited
979 King's Road Foreign Company 39.9%
Quarry Bay, Hong Kong
146.Hopewell Power (Phillippines) Corp. FUCO N/A N/A N/A Consolidated 87.22%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road Foreign Company 12.78%
Quarry Bay, Hong Kong
147.Hopewell Tileman (Phillippines) Corp. FUCO N/A N/A N/A Navotas II Holding 100%
18/F Hong Kong Telecom Tower Corp.
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
148.Hopewell Mobile Power Systems Corp. FUCO N/A N/A N/A CEPA Mobile Power 100%
18/F Hong Kong Telecom Tower Systems (BVI)
Taikoo Place Corporation
979 King's Road
Quarry Bay, Hong Kong
149.Hopewell Energy International (BVI) Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
150.Lemon Grove Investments Pty Limited SPS N/A N/A N/A Allied Queensland 100%
18/F Hong Kong Telecom Tower Coalfields Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
151.Montana Enterprises Limited SPS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
</TABLE>
63
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
152.New Whitwood Collieries Pty Ltd. SPS N/A N/A N/A Aberdare Collieries 100%
18/F Hong Kong Telecom Tower Pty Ltd.
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
153.Navotas II (BVI) Holdings Corp. IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
154.Pangasinan Electric Corporation FUCO N/A N/A N/A CEPA Pangasinan 100%
18/F Hong Kong Telecom Tower Electric Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
155.Pagbilao Shipping Corporation SPS N/A N/A N/A CEPA Construction 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
156.Phillippine Power and Infrastructure Holding IS N/A N/A N/A Consolidated 100%
Corporation Electric Power Asia
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
</TABLE>
64
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
157.Riverview Coal Terminal Pty Ltd. SPS N/A N/A N/A Aberdare Collieries 100%
18/F Hong Kong Telecom Tower Pty Ltd.
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
158.CEPA - Finance Corporation SPS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
159.Sorensen Enterprises Limited IS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
160.Sual Construction Corporation SPS N/A N/A N/A CEPA Construction 100%
18/F Hong Kong Telecom Tower Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
161.Treharn Assets Limited SPS N/A N/A N/A Consolidated 100%
18/F Hong Kong Telecom Tower Electric Power Asia
Taikoo Place Limited
979 King's Road
Quarry Bay, Hong Kong
162.Tiaro Coal Pty Limited SPS N/A N/A N/A Allied Queensland 100%
18/F Hong Kong Telecom Tower Coalfields Limited
Taikoo Place
979 King's Road
Quarry Bay, Hong Kong
163.Southern Electric International Finance, IS N/A N/A N/A Southern Electric 100%
Inc. International -
1105 North Market Street Europe, Inc.
Suite 1300
Wilmington, Delaware 19899
</TABLE>
65
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
164.The Southern Company - Europe, plc IS N/A N/A N/A Southern Electric 100%
31 Curzon Street International -
London W1Y 7AE England Europe, Inc.
165.SWEB Holdings Limited IS N/A N/A N/A Southern Electric 75%
800 Park Avenue International -
Aztec West Europe, Inc.
Almondsbury, Bristol BS12 4SE Domestic Corporation 25%
166.Southern Energy Finance Company, Inc. IS N/A N/A N/A Southern Energy, 100%
900 Ashwood Parkway, Suite 500 Inc.
Atlanta, GA 30338
167.EPZ Lease, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 Finance Company,
Atlanta, GA 30338 Inc.
168.EPZ Lease, LLC IS N/A N/A N/A EPZ Lease, Inc. 99%
900 Ashwood Parkway, Suite 500 Southern Energy 1%
Atlanta, GA 30338 Finance Company,
Inc.
169.EPZ Lease Holding A, LLC IS N/A N/A N/A EPZ Lease,LLC 99%
900 Ashwood Parkway, Suite 500 EPZ Lease, Inc. 1%
Atlanta, GA 30338
170.EPZ Lease Holding B, LLC IS N/A N/A N/A EPZ Lease, LLC 99%
900 Ashwood Parkway, Suite 500 EPZ Lease, Inc. 1%
Atlanta, GA 30338
171.EPZ Lease Holding C, LLC IS N/A N/A N/A EPZ Lease, LLC 99%
900 Ashwood Parkway, Suite 500 EPZ Lease, Inc. 1%
Atlanta, GA 30338
172.EPZ Lease Trust A FUCO N/A N/A N/A EPZ Lease Holding 100%
900 Ashwood Parkway, Suite 500 A, LLC
Atlanta, GA 30338
173.EPZ Lease Trust B FUCO N/A N/A N/A EPZ Lease Holding 100%
900 Ashwood Parkway, Suite 500 B, LLC
Atlanta, GA 30338
</TABLE>
66
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- --------------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
174.EPZ Lease Trust C FUCO N/A N/A N/A EPZ Lease Holding C, LLC 100%
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
175.Southern Energy E Associados IS N/A N/A N/A Southern Electric Brasil 99%
Participacoes, S.A. Participacoes, Ltda
Av. Presidente Juscelino Kubitschek 50 Southern Energy
Conj. 172 International, Inc.
04543-000 Sao Paulo, Brazil 1%
176.Cayman Energy Traders IS N/A N/A N/A Southern Energy 51%
P.O. Box 309 Ugland House International Inc.
South Church Street Third Party 49%
Grand Cayman, Cayman Islands,
British West Indies
177.SEI Germany - BEWAG, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 International
Atlanta, GA 30338
178 SEI Worldwide Holdings, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 International
Atlanta, GA 30338
179. SEI Worldwide Holdings (Germany) GmbH IS N/A N/A N/A SEI Germany- BEWAG, Inc. 50%
900 Ashwood Parkway, Suite 500 SEI Worldwide Holdings,
Atlanta, GA 30338 Inc. 50%
180.Southern Energy Holding IS N/A N/A N/A SEI Worldwide Holdings 100%
Beteiligungsgesellschaft GmbH (Germany GmbH)
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
181.BEWAG FUCO N/A N/A N/A Southern Energy 26%
900 Ashwood Parkway, Suite 500 Beteiligungsgsellschaft
Atlanta, GA 30338 GmbH
182. Southern Energy Clairton, Inc. IS N/A N/A N/A Southern Energy Finance 100%
900 Ashwood Parkway, Suite 500 Company, Inc.
Atlanta, GA 30338
</TABLE>
67
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
COMPANY, LOCATION AND ADDRESS FUCO, GENERATION, OWNERSHIP % OWNED
EWG, TRANSMISSION,
IS DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------
GEN TRAN DIST
--------- --------- --------
183. Southern Energy Clairton, L.L.C IS N/A N/A N/A Southern Energy 85%
900 Ashwood Parkway, Suite 500 Clairton, Inc.
Atlanta, GA 30338 Southern Energy 15%
Clairton2, Inc.
184. Clairton 1314 B Partnership, L.P. IS N/A N/A N/A Southern Energy 27%
900 Ashwood Parkway, Suite 500 Clairton, L.L.C
Atlanta, GA 30338 Domestic Corp. 73%
185. Southern Energy Clairton2, Inc. IS N/A N/A N/A Southern Energy 100%
900 Ashwood Parkway, Suite 500 Finance Company,
Atlanta, GA 30338 Inc.
186.Southern Company Capital Funding, Inc. IS N/A N/A N/A Southern Energy, 100%
900 Ashwood Parkway, Suite 500 Inc.
Atlanta, GA 30338
187. Southern Company Capital Trust I SPS N/A N/A N/A Southern Company 100%
900 Ashwood Parkway, Suite 500 Capital Funding,
Atlanta, GA 30338 Inc.
188. Southern Company Capital Trust II SPS N/A N/A N/A Southern Company 100%
900 Ashwood Parkway, Suite 500 Capital Funding,
Atlanta, GA 30338 Inc.
189. Southern Company Capital Trust III SPS N/A N/A N/A Southern Company 100%
900 Ashwood Parkway, Suite 500 Capital Funding,
Atlanta, GA 30338 Inc.
190. Mobile Energy Services Holdings, Inc. IS N/A N/A N/A Southern Company 100%
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
191. Mobile Energy Services, L.L.C. IS N/A N/A N/A Mobile Energy 99%
900 Ashwood Parkway, Suite 500 Services Holdings,
Atlanta, GA 30338 Inc.
Southern Energy 1%
Resources, Inc.
192. Companhia Energetica de Minas Gerais FUCO N/A N/A N/A Cayman Energy 33%
(CEMIG) Traders
900 Ashwood Parkway, Suite 500 Foreign Government 51%
Atlanta, GA 30338 General Public
16%
</TABLE>
68
<PAGE>
<TABLE>
<CAPTION>
ITEM 9. WHOLSALE GENERATORS AND FOREIGN UTILITY COMPANIES.
- -----------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Note 1 - Generating Facilities:
- --------------------------------
Facilities in Operation
- ----------------------------------------------------------------------------------------------------------------------------
Megawatts of Capacity Percentage
----------------------- ----------
Facility Location Units Owned Operated Ownership Type
-------- -------- ----- ----- ------- --------- ----
Alicura Argentina 4 (A) 551 (A) 1,000 55.14% Hydro
BEWAG Germany 18 443 1,702 26.00% Coal
BEWAG Germany 17 375 1,444 26.00% Oil & Gas
Birchwood Virginia 1 111 222 50.00% Coal (B)
CEPA China 3 634 - (C) 32.00% Coal
CEPA Philippines 2 641 735 87.22% Coal
CEPA Philippines 3 126 210 60.10% Oil
CEPA Philippines 13 381 381 100.00% Oil
Edelnor Chile 1 111 166 67.00% Coal
Edelnor Chile 37 77 115 67.00% Oil
Edelnor Chile 2 7 10 67.00% Hydro
Freeport Grand Bahama 8 79 127 62.50% Oil
UDG - Niagara New York 1 - 50 - Coal (B)
Mobile Energy Alabama 3 111 111 100.00% Waste/Biomass (B)
PowerGen Co. Trinidad and Tobago 21 459 1,178 39.00% Gas
State Line Indiana 2 490 490 100.00% Coal
South Western Electricity United Kingdom 8 108 - (C) 5.78% Gas
South Western Electricity United Kingdom 12 11 15 75.00% Oil & Gas
South Western Electricity United Kingdom 3 5 - (C) 28.50% Wind
South Western Electricity United Kingdom 3 1 - (C) 18.75% Landfill Gas
Total Capacity 4,721 7,956(C)
Facilities Under Development
- --------------------------------------------------------------------------------------------------------------------------------
Megawatts of Capacity
Percentage
Facility Location Units Owned Operated Ownership Type
CEPA Philippines 2 1,200 * 1,200 100.00% Coal
Edelnor Chile 1 104 160 67.00% Coal
Total Capacity 1,304 1,360
- -------------------------------- ----------------------------------------------------------------------------------------------
* Percentage owned will ultimately be 91.91% on completion, with the owned capacity reduced to 1,103 MW
(A) Represents megawatts of capacity under a concession agreement expiring in the year 2023.
(B) Cogeneration facility.
(C) Does not include Shajiao C (1,980 MW) or UK power plants (150 MW) that are partially owned but not operated by
CEPA and SWEB, respectively.
</TABLE>
69
<PAGE>
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES.
- ------------------------------------------------------------
Note 2 - Transmission Facilities:
- -----------------------------------
Edelnor (Chile) - approximately 962 kilometers as follows:
Operating Voltage Approximate Kilometers
----------------- ----------------------
(kVs)
23 17
66 197
110 282
220 466
---
962
===
Freeport (Grand Bahamas) - approximately 50 miles of 69 kV transmission lines.
Note 3 - Distribution Facilities:
Freeport (Grand Bahamas) - 420 Miles of 7.2 KV Overhead
18 Miles of 7.2 KV Underground
205 Miles of 12.5 KV Overhead
20 Miles of 7.2 KV Underground
South West Electricity (United Kingdom) - approximately 48,054 kilometers as
follows:
Operating Voltage Approximate Kilometers
----------------- ----------------------
(kVs)
Under 5 18,944
6.6 148
11 23,645
33 3,794
132 1,523
------
48,054
======
South Western Electricity's distribution system for the Isles of Scilly includes
57 kilometers of 33 kV submarine cable, which connects the islands to the
mainland, and 15 kilometers of 11 kV submarine cable which interconnects the
individual islands.
Note 4 - Notes to Item 9 - Part 1A:
Electricity Pensions Limited and South West Enterprise Limited are both
subsidiaries of South Western Electricity, plc that show 0% ownership due to
both companies being limited by a guarantee. Electricity Pensions Limited was
created to coordinate the administration of the Electricity Supply Pension
Scheme. South West Enterprise Limited was created to catalyze, coordinate, and
promote economic development in Devon and Cornwall.
70
<PAGE>
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
- -----------------------------------------------------------
PART I(b); PART I(c) and PART I(d) are being filed pursuant to Rule 104.
PART II
Exhibits H and I submitted with this filing, are being incorporated by
reference.
PART III is being filed pursuant to Rule 104.
71
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
ITEM 10 - FINANCIAL STATEMENTS AND EXHIBITS
- -------------------------------------------
SOUTHERN AND SUBSIDIARY COMPANIES
INDEX TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
Page
Number
------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS A-1
FINANCIAL STATEMENTS:
Consolidating Statement of Income for the Year Ended
December 31, 1997 A-2
Consolidating Statement of Cash Flows for the Year Ended
December 31, 1997 A-4 Consolidating Balance Sheet at December 31, 1997
A-6 Consolidating Statement of Capitalization at December 31, 1997 A-10
Consolidating Statement of Retained Earnings for the Year Ended
December 31, 1997 A-13
Consolidating Statement of Paid-in Capital for the Year
Ended December 31, 1997 A-14
Notes to Financial Statements at December 31, 1997 A-15
OTHER FINANCIAL STATEMENTS:
ALABAMA consolidated with ALABAMA TRUST I and ALABAMA TRUST II A-16
ALABAMA TRUST I (Consolidated in Parent, ALABAMA) A-21
ALABAMA TRUST II (Consolidated in Parent, ALABAMA) A-23
Alabama Property Company (Unaudited; Not consolidated in Parent, ALABAMA) A-25
GEORGIA consolidated with PIEDMONT, GEORGIA CAPITAL, GEORGIA TRUST I,
GEORGIA TRUST II and GEORGIA TRUST III A-28
PIEDMONT (Consolidated in Parent, GEORGIA) A-33
GEORGIA CAPITAL (Consolidated in Parent, GEORGIA) A-36
GEORGIA TRUST I (Consolidated in Parent, GEORGIA) A-38
GEORGIA TRUST II (Consolidated in Parent, GEORGIA) A-40
GEORGIA TRUST III (Consolidated in Parent, GEORGIA) A-42
GULF consolidated with GULF TRUST I A-44
GULF TRUST I (Consolidated in Parent, GULF) A-48
MISSISSIPPI consolidated with MISSISSIPPI TRUST I A-50
MISSISSIPPI TRUST I A-54
EXHIBITS A-56
SCHEDULES:
Schedules supporting financial statements of ALABAMA, GEORGIA, GULF,
MISSISSIPPI, SAVANNAH and SEGCO are incorporated by reference to those
companies' annual reports on Federal Energy Regulatory Commission Form 1 for the
year ended December 31, 1997, as filed with the Federal Energy Regulatory
Commission.
</TABLE>
A
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Southern Company:
We have audited the consolidated balance sheet and
consolidated statement of capitalization of THE SOUTHERN COMPANY (a
Delaware corporation) and its subsidiaries as of December 31, 1997, and
the related consolidated statement of income, retained earnings,
paid-in capital, and cash flows for the year then ended (included in
the 1997 annual report on Form 10-K, which is Exhibit A-1 to this Form
U5S). These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of The
Southern Company and its subsidiaries as of December 31, 1997, and the
results of their operations and their cash flows for the year then
ended, in conformity with generally accepted accounting principles.
/s/ Arthur Andersen LLP
Atlanta, Georgia
February 11, 1998
A-1
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Intercompany
Eliminations
and Transfers
OPERATING REVENUES: Consolidated Add (Deduct) SOUTHERN ALABAMA
Subsidiary operating companies--
<S> <C> <C> <C> <C>
Revenues $12,610,972 $ (14,729) $ - $ 2,987,316
Sales to affiliates - (388,375) - 161,795
SOUTHERN, equity in earnings of subsidiary companies - (1,059,991) 1,059,991 -
- ---------------------------------------------------------------------------------------------------------------------------------
Total operating revenues 12,610,972 (1,463,095) 1,059,991 3,149,111
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation--
Fuel 2,280,956 - - 896,014
Purchased power from non-affiliates 3,032,637 221 - 41,795
Purchased power from affiliates - (377,634) - 95,538
Other 1,930,064 (26,702) 34,822 510,203
Maintenance 762,945 - - 242,691
Depreciation & amortization 1,246,111 3,039 - 330,377
Amortization of deferred Plant Vogtle costs, net 120,577 - - -
Taxes other than income taxes 572,341 - 155 185,062
Income taxes 724,881 (76) (0) 220,228
- ---------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 10,670,512 (401,152) 34,977 2,521,908
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 1,940,460 (1,061,943) 1,025,014 627,203
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Allowance for equity funds used during construction 6,461 - - -
Interest income 151,693 (61,881) 23,815 37,844
Other, net 52,960 (8,630) 7,073 (34,256)
Income taxes - other income 33,868 - - 12,351
Windfall profits tax assessed in United Kingdom (148,062) - - -
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 2,037,380 (1,132,454) 1,055,902 643,142
- ---------------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES AND OTHER:
Interest on long-term debt 679,696 (60,811) 39,781 167,172
Allowance for debt funds used during construction (14,053) - - (4,787)
Interest on interim obligations 111,694 - 42,865 22,787
Amortization of debt discount, premium, & expense, net 34,233 - - 9,645
Other interest charges 63,250 - 1,680 36,037
Distributions on capital and preferred securities of
subsidiary companies 119,577 - - 21,763
- ---------------------------------------------------------------------------------------------------------------------------------
Interest charges and other, net 994,397 (60,811) 84,326 252,617
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCOME 1,042,983 (1,071,643) 971,576 390,525
Preferred dividends of subsidiary companies 42,741 - - 14,586
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON
PREFERRED STOCK OF SUBSIDIARY COMPANIES 1,000,242 (1,071,643) 971,576 375,939
Minority Interest 28,666 (98) - -
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK
AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $ 971,576 $(1,071,545) $ 971,576 $ 375,939
=================================================================================================================================
AVERAGE NUMBER OF SHARES OF COMMON STOCK
OUTSTANDING (in thousands) 685,033
EARNINGS PER SHARE OF COMMON STOCK $1.42
CASH DIVIDENDS PAID PER SHARE OF COMMON STOCK $1.30
(Continued on following page)
A-2A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
OPERATING REVENUES: GEORGIA GULF MISSISSIPPI SAVANNAH
Subsidiary operating companies--
<S> <C> <C> <C> <C>
Revenues $ 4,347,009 $ 609,096 $533,445 $ 224,225
Sales to affiliates 38,708 16,760 10,143 2,052
SOUTHERN, equity in earnings of subsidiary companies - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total operating revenues 4,385,717 625,856 543,588 226,277
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation--
Fuel 857,269 180,843 142,059 35,563
Purchased power from non-affiliates 143,409 11,938 14,536 2,347
Purchased power from affiliates 177,240 24,955 37,794 42,107
Other 702,159 126,266 102,365 47,735
Maintenance 317,199 47,988 47,302 13,236
Depreciation & amortization 572,640 57,874 45,574 20,152
Amortization of deferred Plant Vogtle costs, net 120,577 - - -
Taxes other than income taxes 207,192 51,775 44,034 11,494
Income taxes 426,918 35,034 31,968 16,419
- ------------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 3,524,603 536,673 465,632 189,053
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 861,114 89,183 77,956 37,224
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Allowance for equity funds used during construction 6,012 3 - 239
Interest income 10,581 1,203 857 279
Other, net (31,568) (995) 2,368 (781)
Income taxes - other income 31,763 1,584 588 1,233
Windfall profits tax assessed in United Kingdom - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 877,902 90,978 81,769 38,194
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES AND OTHER:
Interest on long-term debt 194,344 21,699 19,856 10,907
Allowance for debt funds used during construction (8,962) (5) - (164)
Interest on interim obligations 7,795 891 96 172
Amortization of debt discount, premium, & expense, net 14,179 2,281 1,577 739
Other interest charges 10,254 2,081 574 369
Distributions on capital and preferred securities of
subsidiary companies 47,369 2,804 2,369 -
- ------------------------------------------------------------------------------------------------------------------------------------
Interest charges and other, net 264,979 29,751 24,472 12,023
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME 612,923 61,227 57,297 26,171
Preferred dividends of subsidiary companies 18,927 3,617 3,287 2,324
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON
PREFERRED STOCK OF SUBSIDIARY COMPANIES 593,996 57,610 54,010 23,847
Minority Interest - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK
AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $ 593,996 $ 57,610 $ 54,010 $ 23,847
====================================================================================================================================
AVERAGE NUMBER OF SHARES OF COMMON STOCK
OUTSTANDING (in thousands)
EARNINGS PER SHARE OF COMMON STOCK
CASH DIVIDENDS PAID PER SHARE OF COMMON STOCK
(Continued on following page)
A-2B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
OPERATING REVENUES: SEGCO SEIH* MESH
Subsidiary operating companies--
<S> <C> <C> <C>
Revenues $ 1,298 $3,750,458 $ 86,481
Sales to affiliates 147,307 - -
SOUTHERN, equity in earnings of subsidiary companies - - -
- ----------------------------------------------------------------------------------------------------------------------
Total operating revenues 148,605 3,750,458 86,481
- ----------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation--
Fuel 91,776 74,080 3,352
Purchased power from non-affiliates - 2,812,574 5,817
Purchased power from affiliates - - -
Other 20,001 268,337 16,524
Maintenance 11,328 74,109 8,555
Depreciation & amortization 8,034 181,539 12,322
Amortization of deferred Plant Vogtle costs, net - - -
Taxes other than income taxes 760 69,204 1,062
Income taxes 4,405 3,565 3,810
- ----------------------------------------------------------------------------------------------------------------------
Total operating expenses 136,304 3,483,408 51,442
- ----------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 12,301 267,050 35,039
- ----------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Allowance for equity funds used during construction 207 - -
Interest income - 137,569 922
Other, net 633 119,071 45
Income taxes - other income 5 (13,656) -
Windfall profits tax assessed in United Kingdom - (148,062) -
- ----------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 13,146 361,972 36,006
- ----------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES AND OTHER:
Interest on long-term debt 4,726 251,074 27,799
Allowance for debt funds used during construction (135) - -
Interest on interim obligations - 37,088 -
Amortization of debt discount, premium, & expense, net 23 3,712 2,077
Other interest charges - 12,255 -
Distributions on capital and preferred securities of
subsidiary companies - 45,272 -
- ----------------------------------------------------------------------------------------------------------------------
Interest charges and other, net 4,614 349,401 29,876
- ----------------------------------------------------------------------------------------------------------------------
NET INCOME 8,532 12,571 6,130
Preferred dividends of subsidiary companies - - -
- ----------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON
PREFERRED STOCK OF SUBSIDIARY COMPANIES 8,532 12,571 6,130
Minority Interest - 28,666 98
- ----------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK
AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $ 8,532 $(16,095) $ 6,032
======================================================================================================================
* Preliminary. Currently under audit.
The notes to the financial statements (herein incorporated by reference as part
of exhibit numbers A-1 through A-6 inclusive) are an integral part of this
statement.
A-3A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Energy Southern Southern Southern
OPERATING REVENUES: Solutions Communications Information Telecom
Subsidiary operating companies--
<S> <C> <C> <C> <C>
Revenues $ 43,015 $ 41,495 $ 342 $ 1,521
Sales to affiliates 2,496 9,114 - -
SOUTHERN, equity in earnings of subsidiary companies - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total operating revenues 45,511 50,609 342 1,521
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation--
Fuel - - - -
Purchased power from non-affiliates - - - -
Purchased power from affiliates - - - -
Other 53,459 72,965 1,139 791
Maintenance - 537 - -
Depreciation & amortization 424 14,136 - -
Amortization of deferred Plant Vogtle costs, net - - - -
Taxes other than income taxes 124 1,479 - -
Income taxes (2,895) (14,545) (279) 329
- ------------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 51,112 74,572 860 1,120
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (5,601) (23,963) (518) 401
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Allowance for equity funds used during construction - - - -
Interest income 225 100 - 179
Other, net - - - -
Income taxes - other income - - - -
Windfall profits tax assessed in United Kingdom - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES (5,376) (23,863) (518) 580
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES AND OTHER:
Interest on long-term debt - 3,149 - -
Allowance for debt funds used during construction - - - -
Interest on interim obligations - - - -
Amortization of debt discount, premium, & expense, net - - - -
Other interest charges - - - -
Distributions on capital and preferred securities of
subsidiary companies - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Interest charges and other, net - 3,149 - -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (5,376) (27,012) (518) 580
Preferred dividends of subsidiary companies - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON
PREFERRED STOCK OF SUBSIDIARY COMPANIES (5,376) (27,012) (518) 580
Minority Interest - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK
AND MINORITY INTEREST OF SUBSIDIARY COMPANIES $(5,376) $(27,012) $(518) $580
====================================================================================================================================
AVERAGE NUMBER OF SHARES OF COMMON STOCK
OUTSTANDING (in thousands)
EARNINGS PER SHARE OF COMMON STOCK
CASH DIVIDENDS PAID PER SHARE OF COMMON STOCK
(Continued on following page)
A-3B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
Intercompany
Eliminations
and Transfers
Consolidated Add (Deduct) SOUTHERN ALABAMA
OPERATING ACTIVITIES:
<S> <C> <C> <C> <C>
Consolidated net income $ 971,576 $ (1,114,286) $ 971,576 $ 390,525
Adjustments to reconcile consolidated net income to
net cash provided by operating activities--
Depreciation and amortization 1,470,814 - - 394,572
Deferred income taxes and investment tax credits (4,548) (402) - (12,429)
Allowance for equity funds used during construction (6,461) - - -
Amortization of deferred Plant Vogtle costs, net 120,577 - - -
Loss (Gain) on asset sales (25,031) - - -
Other, net (59,881) (96,531) 36,375 (11,353)
Changes in certain current assets and liabilities
excluding effects from acquisitions --
Receivables, net (238,122) 1,027,928 (923,731) (30,268)
Fossil fuel stock 41,362 - - 7,518
Materials and supplies 20,871 - - 6,191
Accounts payable 138,344 (53,785) (1,392) (9,745)
Other 195,884 (40,947) 15,840 20,426
- ------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 2,625,385 (278,023) 98,668 755,437
- ------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Gross property additions (1,858,745) - - (451,167)
Southern Energy business acquisitions,
net of cash acquired (2,924,765) - - -
Sales of property 32,125 - - -
Other (13,818) 2,118,565 (1,507,988) (51,791)
- ------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (4,765,203) 2,118,565 (1,507,988) (502,958)
- ------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Proceeds --
Common stock 359,691 - 359,691 -
Capital contributions - (1,422,809) 445,000 -
Preferred securities 1,321,250 - - 200,000
First mortgage bonds - - - -
Other long-term debt 2,498,959 (1,475,142) 618,558 258,800
Retirements --
Preferred stock (659,709) - - (184,888)
First mortgage bonds (167,559) - - (74,951)
Other long-term debt (802,198) (17,914) - (951)
Interim obligations, net 508,849 (6,400) 701,599 (57,971)
Payment of common stock dividends (889,005) 1,028,376 (889,005) (339,600)
Payment of preferred stock dividends - 60,422 - (22,524)
Miscellaneous 125,528 (7,075) (1,205) (16,024)
- ------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES 2,295,806 (1,840,542) 1,234,638 (238,109)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 155,988 - (174,682) 14,370
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 444,832 - 208,700 9,587
- ------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 600,820 $ - $ 34,018 $ 23,957
==============================================================================================================================
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for --
Interest (net of amount capitalized) $ 876,216 $ (31,714) $ 70,841 $ 209,919
Income taxes 822,781 - - 207,653
(Continued on following page)
A-4A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
GEORGIA GULF MISSISSIPPI SAVANNAH
OPERATING ACTIVITIES:
<S> <C> <C> <C> <C>
Consolidated net income $ 612,923 $ 61,227 $ 57,297 $ 26,171
Adjustments to reconcile consolidated net income to
net cash provided by operating activities--
Depreciation and amortization 674,286 72,860 49,661 21,083
Deferred income taxes and investment tax credits (21,425) (7,047) (1,809) 3,841
Allowance for equity funds used during construction (6,012) (3) - (239)
Amortization of deferred Plant Vogtle costs, net 120,577 - - -
Loss (Gain) on asset sales (974) - - -
Other, net 3,050 2,408 3,206 (2,577)
Changes in certain current assets and liabilities
excluding effects from acquisitions --
Receivables, net 13,387 (1,111) (8,583) (3,239)
Fossil fuel stock 21,315 9,056 1,517 687
Materials and supplies 18,433 1,618 1,631 1,033
Accounts payable (10,007) 1,398 8,357 (1,608)
Other (53,725) 25,141 3,980 4,667
- --------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 1,371,828 165,547 115,257 49,819
- --------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Gross property additions (475,921) (54,289) (55,375) (18,846)
Southern Energy business acquisitions,
net of cash acquired - - - -
Sales of property - - - -
Other 16,223 509 (489) (1,418)
- --------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (459,698) (53,780) (55,864) (20,264)
- --------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Proceeds --
Common stock - - - -
Capital contributions (205,000) - - -
Preferred securities 364,250 40,000 35,000 -
First mortgage bonds - - - -
Other long-term debt 284,700 60,930 - 13,870
Retirements --
Preferred stock (356,392) (75,911) (42,518) -
First mortgage bonds (60,258) (25,000) - -
Other long-term debt (284,700) (56,902) (10) (14,303)
Interim obligations, net (64,266) 22,000 - (5,000)
Payment of common stock dividends (520,000) (64,600) (49,400) (20,500)
Payment of preferred stock dividends (26,917) (5,370) (3,287) (2,324)
Miscellaneous 24,430 (3,014) (1,804) (368)
- --------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES (844,153) (107,867) (62,019) (28,625)
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 67,977 3,900 (2,626) 930
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 15,356 807 7,058 5,214
- --------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 83,333 $ 4,707 $ 4,432 $ 6,144
================================================================================================================================
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for --
Interest (net of amount capitalized) $ 258,298 $ 26,558 $ 22,297 $ 11,619
Income taxes 427,596 36,010 33,450 11,150
A-4B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
SOUTHERN
SEGCO SCS NUCLEAR SEIH*
OPERATING ACTIVITIES:
<S> <C> <C> <C> <C>
Consolidated net income $ 8,532 $ - $ - $ (16,095)
Adjustments to reconcile consolidated net income to
net cash provided by operating activities--
Depreciation and amortization 8,683 16,471 1,256 202,983
Deferred income taxes and investment tax credits (900) - - 15,700
Allowance for equity funds used during construction (207) - - -
Amortization of deferred Plant Vogtle costs, net - - - -
Loss (Gain) on asset sales - - - (24,057)
Other, net (111) 27,585 (6,645) (10,680)
Changes in current assets and liabilities
excluding effects from acquisitions --
Receivables, net 9,018 (66,765) (21,008) (213,763)
Fossil fuel stock - - - 1,269
Materials and supplies - 835 - (5,239)
Accounts payable (1,639) 38,306 2,075 137,129
Other 87 15,755 25,881 175,603
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 23,463 32,187 1,559 262,850
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Gross property additions (4,753) (19,108) (687) (719,963)
Southern Energy business acquisitions,
net of cash acquired - - - (2,924,765)
Sales of property - - - 32,125
Other (3,581) 1,048 184 (589,078)
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (8,334) (18,060) (503) (4,201,681)
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Proceeds --
Common stock - - - -
Capital contributions - - (7) 1,166,957
Preferred securities - - - 682,000
First mortgage bonds - - - -
Other long-term debt - - - 2,683,888
Retirements --
Preferred stock - - - -
First mortgage bonds - - - -
Other long-term debt (4,698) (25,129) - (397,591)
Interim obligations, net - 6,400 - (80,824)
Payment of common stock dividends (10,448) - - (7,816)
Payment of preferred stock dividends - - - -
Miscellaneous - - - 130,588
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES (15,146) (18,729) (7) 4,177,202
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (17) (4,602) 1,049 238,371
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 111 4,607 1,205 160,130
- ----------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 94 $ 5 $ 2,254 $ 398,501
==================================================================================================================================
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for --
Interest (net of amount capitalized) $4,362 $7,308 $ 282 $ 268,289
Income taxes 4,684 - 2,550 99,688
A-5A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
Energy Southern Southern Southern
MESH Solutions Communications Information Telecom SERC
OPERATING ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Consolidated net income $ 6,032 $ (5,376) $(27,012) $ (518) $ 580 $ -
net cash provided by operating activities--
Depreciation and amortization 14,398 424 14,137 - - -
Deferred income taxes and investment tax credits 11,650 1,644 6,629 - - -
Allowance for equity funds used during construction - - - - - -
Amortization of deferred Plant Vogtle costs, net - - - - - -
Loss (Gain) on asset sales - - - - - -
Other, net (4,687) (583) (4,918) 3 5,577 -
Changes in current assets and liabilities
excluding effects from acquisitions --
Receivables, net (673) (14,848) (1,909) (727) (1,933) 103
Fossil fuel stock - - - - - -
Materials and supplies (331) (90) (3,063) (147) - -
Accounts payable 7,918 5,216 14,821 633 333 334
Other (983) 626 1,632 (215) 2,116 -
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 33,324 (12,987) 317 (971) 6,673 437
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Gross property additions (1,172) (2,639) (51,433) - (3,392) -
Southern Energy business acquisitions, net
of cash acquired - - - - - -
Sales of property - - - - - -
Other - 6,043 - (919) (1,126) -
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (1,172) 3,404 (51,433) (919) (4,518) -
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Proceeds --
Common stock - - - - - -
Capital contributions - 11,184 - 1,895 2,780 -
Preferred securities - - - - - -
First mortgage bonds - - - - - -
Other long-term debt - 1,247 52,108 - - -
Retirements --
Preferred stock - - - - - -
First mortgage bonds (7,350) - - - - -
Other long-term debt - - - - - -
Interim obligations, net (6,689) - - - - -
Payment of common stock dividends (16,012) - - - - -
Payment of preferred stock dividends - - - - - -
Miscellaneous - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM (USED FOR) FINANCING
ACTIVITIES (30,051) 12,431 52,108 1,895 2,780 -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,101 2,848 992 5 4,935 437
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 26,679 882 4,216 3 197 80
- ------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 28,780 $ 3,730 $ 5,208 $ 8 $5,132 $517
====================================================================================================================================
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for --
Interest (net of amount capitalized) $ 28,142 $ - $ 15 $ - $ - $ -
Income taxes - - - - - -
* Preliminary. Currently under audit.
A-5B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Intercompany
Eliminations
and Transfers
Consolidated Add (Deduct) SOUTHERN ALABAMA
UTILITY PLANT:
<S> <C> <C> <C> <C>
Plant in service $34,044,182 $ - $ - $11,070,323
Less accumulated provision for depreciation 11,933,718 - - 4,384,180
- ----------------------------------------------------------------------------------------------------------------------------------
22,110,464 - - 6,686,143
Nuclear fuel, at amortized cost 230,154 - - 103,272
Construction work in progress 1,311,540 - - 311,223
- ----------------------------------------------------------------------------------------------------------------------------------
Total 23,652,158 - - 7,100,638
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
Goodwill, being amortized 1,887,574 - - -
Leasehold interests, being amortized 1,388,928 - - -
Equity investments in subsidiaries 1,167,739 (10,089,871) 10,039,259 34,374
Nuclear decommissioning trusts 387,425 - - 193,008
Miscellaneous 741,936 (623,009) 15,735 12,831
- ----------------------------------------------------------------------------------------------------------------------------------
Total 5,573,602 (10,712,880) 10,054,994 240,213
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 600,820 - 34,018 23,957
Special Deposits 17,337 (94) - -
Receivables--
Customer accounts receivable 1,347,193 (4,456) - 368,255
Affiliated companies - (1,321,492) 942,149 50,353
Other accounts and notes receivable 830,105 (26,252) 32,899 28,921
Accumulated provision for uncollectible accounts (77,056) - - (2,272)
Refundable income taxes - (33,480) - -
Fossil fuel stock, at average cost 214,406 1,611 - 74,186
Materials and supplies, at average cost 492,516 - - 161,601
Prepayments 98,398 (12,855) 47 20,453
Vacation pay deferred 78,866 - - 28,783
- ----------------------------------------------------------------------------------------------------------------------------------
Total 3,602,585 (1,397,018) 1,009,113 754,237
- ----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS:
Deferred charges related to income taxes 1,142,045 (66,566) - 384,549
Prepaid pension costs 398,736 - - 130,733
Deferred Plant Vogtle costs 50,412 - - -
Debt expense, being amortized 101,068 - - 7,276
Premium on reacquired debt, being amortized 285,149 - - 81,417
Nuclear decontamination and decommissioning fund 63,103 - - 34,416
Miscellaneous 401,652 20,445 - 79,388
- ----------------------------------------------------------------------------------------------------------------------------------
Total 2,442,165 (46,121) - 717,779
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $35,270,510 $(12,156,019) $11,064,107 $8,812,867
==================================================================================================================================
A-6A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
ASSETS GEORGIA GULF MISSISSIPPI SAVANNAH
UTILITY PLANT:
<S> <C> <C> <C> <C>
Plant in service $15,082,570 $1,762,244 $1,518,402 $ 760,694
Less accumulated provision for depreciation 5,319,680 737,767 559,098 321,509
- -----------------------------------------------------------------------------------------------------------------------------------
9,762,890 1,024,477 959,304 439,185
Nuclear fuel, at amortized cost 126,882 - - -
Construction work in progress 214,128 31,030 41,083 7,709
- -----------------------------------------------------------------------------------------------------------------------------------
Total 10,103,900 1,055,507 1,000,387 446,894
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
Goodwill, being amortized - - - -
Leasehold interests, being amortized - - - -
Equity investments in subsidiaries 24,973 - - -
Nuclear decommissioning trusts 194,417 - - -
Miscellaneous 87,907 622 650 1,783
- -----------------------------------------------------------------------------------------------------------------------------------
Total 307,297 622 650 1,783
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 83,333 4,707 4,432 6,144
Special Deposits - - - 94
Receivables--
Customer accounts receivable 385,844 69,822 39,839 28,842
Affiliated companies 20,333 7,329 7,398 1,128
Other accounts and notes receivable 110,278 2,744 8,666 720
Accumulated provision for uncollectible accounts (3,000) (796) (698) (354)
Refundable income taxes - - - -
Fossil fuel stock, at average cost 96,067 19,296 10,651 5,205
Materials and supplies, at average cost 240,387 28,634 19,452 6,980
Prepayments 27,503 2,171 10,170 5,922
Vacation pay deferred 40,996 4,057 5,030 -
- -----------------------------------------------------------------------------------------------------------------------------------
Total 1,001,741 137,964 104,940 54,681
- -----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS:
Deferred charges related to income taxes 688,472 26,586 21,906 17,267
Prepaid pension costs 67,777 10,385 - 3,424
Deferred Plant Vogtle costs 50,412 - - -
Debt expense, being amortized 40,927 2,447 2,726 2,255
Premium on reacquired debt, being amortized 166,609 20,494 9,508 7,121
Nuclear decontamination and decommissioning fund 28,687 - - -
Miscellaneous 117,906 11,607 26,712 13,927
- -----------------------------------------------------------------------------------------------------------------------------------
Total 1,160,790 71,519 60,852 43,994
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $12,573,728 $1,265,612 $1,166,829 $547,352
===================================================================================================================================
</TABLE>
A-6B
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
SOUTHERN
ASSETS SEGCO SCS NUCLEAR SEIH*
UTILITY PLANT:
<S> <C> <C> <C> <C>
Plant in service $312,313 $ 209,657 $ 11,555 $ 2,734,414
Less accumulated provision for depreciation 201,451 135,276 8,922 206,153
- ---------------------------------------------------------------------------------------------------------------------------------
110,862 74,381 2,633 2,528,261
Nuclear fuel, at amortized cost - - - -
Construction work in progress 10,735 23,106 - 661,997
- ---------------------------------------------------------------------------------------------------------------------------------
Total 121,597 97,487 2,633 3,190,258
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
Goodwill, being amortized - - - 1,887,574
Leasehold interests, being amortized - - - 1,388,928
Equity investments in subsidiaries - - - 1,159,004
Nuclear decommissioning trusts - - - -
Miscellaneous 7 2,877 1,605 1,230,820
- ---------------------------------------------------------------------------------------------------------------------------------
Total 7 2,877 1,605 5,666,326
- ---------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 94 5 2,254 398,501
Special Deposits - - - 2
Receivables--
Customer accounts receivable - - - 432,206
Affiliated companies 27,586 155,207 102,705 1,883
Other accounts and notes receivable 9 41,749 52 605,550
Accumulated provision for uncollectible accounts - - - (67,443)
Refundable federal income tax - - - 32,407
Fossil fuel stock, at average cost - - - 7,373
Materials and supplies, at average cost - 2,116 - 23,198
Prepayments 4,581 4,228 3,967 30,123
Vacation pay deferred - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Total 32,270 203,305 108,978 1,463,800
- ---------------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS:
Deferred charges related to income taxes 3,265 - - 66,566
Prepaid pension costs 2 - - 186,415
Deferred Plant Vogtle costs - - - -
Debt expense, being amortized 133 - - 31,799
Premium on reacquired debt, being amortized - - - -
Nuclear decontamination and decommissioning fund - - - -
Miscellaneous 669 5,778 24,733 91,068
- ---------------------------------------------------------------------------------------------------------------------------------
Total 4,069 5,778 24,733 375,848
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $157,943 $ 309,447 $137,949 $10,696,232
=================================================================================================================================
* Preliminary. Currently under audit.
A-7A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Energy Southern
ASSETS MESH Solutions Communications
UTILITY PLANT:
<S> <C> <C> <C>
Plant in service $ 369,310 1,274 $ 210,481
Less accumulated provision for depreciation 35,091 739 23,852
- ---------------------------------------------------------------------------------------------------------------------------
334,219 535 186,629
Nuclear fuel, at amortized cost - - -
Construction work in progress 1,676 2,737 6,010
- ---------------------------------------------------------------------------------------------------------------------------
Total 335,895 3,272 192,639
- ---------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
Goodwill, being amortized - - -
Leasehold interests, being amortized - -
Equity investments in subsidiaries - - -
Nuclear decommissioning trusts - - -
Miscellaneous 2,727 5,336 -
- ---------------------------------------------------------------------------------------------------------------------------
Total 2,727 5,336 -
- ---------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 28,780 3,730 5,208
Special Deposits 17,335 - -
Receivables--
Customer accounts receivable 15,465 - 11,376
Affiliated companies 1 3,210 1,908
Other accounts and notes receivable 44 21,607 538
Accumulated provision for uncollectible accounts - (222) (2,271)
Refundable income taxes - - 1,073
Fossil fuel stock, at average cost 17 - -
Materials and supplies, at average cost 3,185 169 6,647
Prepayments 967 - 856
Vacation pay deferred - - -
- ---------------------------------------------------------------------------------------------------------------------------
Total 65,794 28,494 25,335
- ---------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS:
Deferred charges related to income taxes - - -
Prepaid pension costs - - -
Deferred Plant Vogtle costs - - -
Debt expense, being amortized 13,505 - -
Premium on reacquired debt, being amortized - - -
Nuclear decontamination and decommissioning fund - - -
Miscellaneous 5,694 42 1,604
- ---------------------------------------------------------------------------------------------------------------------------
Total 19,199 42 1,604
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 423,615 37,144 $ 219,578
===========================================================================================================================
A-7B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Southern Southern
ASSETS Information Telecom SERC
UTILITY PLANT:
<S> <C> <C> <C>
Plant in service $ - $ 945 $ -
Less accumulated provision for depreciation - - -
- ------------------------------------------------------------------------------------------------------------
- 945 -
Nuclear fuel, at amortized cost - - -
Construction work in progress - 106 -
- ------------------------------------------------------------------------------------------------------------
Total - 1,051 -
- ------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
Goodwill, being amortized - - -
Leasehold interests, being amortized - - -
Equity investments in subsidiaries - - -
Nuclear decommissioning trusts - - -
Miscellaneous 919 1,126 -
- ------------------------------------------------------------------------------------------------------------
Total 919 1,126 -
- ------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 8 5,132 517
Special Deposits - - -
Receivables--
Customer accounts receivable - - -
Affiliated companies 5 75 222
Other accounts and notes receivable 722 1,858 -
Accumulated provision for uncollectible accounts - - -
Refundable income taxes - - -
Fossil fuel stock, at average cost - - -
Materials and supplies, at average cost 147 - -
Prepayments 265 - -
Vacation pay deferred - - -
- ------------------------------------------------------------------------------------------------------------
Total 1,147 7,065 739
- ------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS:
Deferred charges related to income taxes - - -
Prepaid pension costs - - -
Deferred Plant Vogtle costs - - -
Debt expense, being amortized - - -
Premium on reacquired debt, being amortized - - -
Nuclear decontamination and decommissioning fund - - -
Miscellaneous - 1,925 154
- ------------------------------------------------------------------------------------------------------------
Total - 1,925 154
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,066 $ 11,167 893
============================================================================================================
A-7C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Intercompany
Eliminations
and Transfers
CAPITALIZATION AND LIABILITIES Consolidated Add (Deduct) SOUTHERN ALABAMA
CAPITALIZATION (see accompanying statements):
<S> <C> <C> <C> <C>
Common stock equity $ 9,646,964 $(10,089,205) $9,646,964 $2,750,569
Preferred stock of subsidiaries 493,346 - - 255,512
Company or subsidiary obligated mandatorily redeemable
capital and preferred securities 1,743,520 - - 297,000
Long-term debt 10,273,606 (1,521,090) 618,558 2,473,202
- ------------------------------------------------------------------------------------------------------------------------------------
Total 22,157,436 (11,610,295) 10,265,522 5,776,283
- ------------------------------------------------------------------------------------------------------------------------------------
MINORITY INTEREST 434,987 (667) - -
- ------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Long-term debt due within one year 783,805 - - 75,336
Notes payable 690,706 (6,400) - -
Commercial paper 1,373,543 - 768,688 306,882
Accounts payable--
Affiliated companies - (288,733) 2,238 79,822
Other 1,048,266 47 4,102 159,146
Customer deposits 133,018 - - 34,968
Taxes accrued--
Federal and state income 119,782 (46,335) - 21,177
Other 259,297 - 9 15,309
Interest accrued 261,668 (17,938) 18,296 50,722
Vacation pay accrued 108,207 - - 28,783
Miscellaneous 608,761 (16,233) - 103,602
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,387,053 (375,592) 793,333 875,747
- ------------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes 4,649,826 (92,929) - 1,192,265
Deferred credits related to income taxes 745,674 - - 327,328
Accumulated deferred investment tax credits 753,861 - - 282,873
Employee benefits provisions(1) 447,187 (20,987) - 80,354
Prepaid capacity revenues, net 109,982 - - 109,982
Department of Energy assessments 72,193 - - 30,592
Disallowed Plant Vogtle capacity buyback costs 55,856 - - -
Storm damage reserves 38,407 - - 22,416
Miscellaneous 418,048 (55,549) 5,252 115,027
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,291,034 (169,465) 5,252 2,160,837
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $35,270,510 $(12,156,019) $11,064,107 $8,812,867
====================================================================================================================================
(1) Includes Post Retirement Life & Medical Provisions, Supplemental and Other
Pension Accruals, Early Retirement Incentive Program Costs and Other Work
Force Reduction Costs, and Miscellaneous Post Employment Benefits.
(Continued on following page)
A-8A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
CAPITALIZATION AND LIBILITIES GEORGIA GULF MISSISSIPPI SAVANNAH
CAPITALIZATION (see accompanying statements):
<S> <C> <C> <C> <C>
Common stock equity $4,019,728 $ 428,718 $ 387,824 $ 175,631
Preferred stock of subsidiaries 157,247 13,691 31,896 35,000
Company or subsidiary obligated mandatorily redeemable
capital and preferred securities 689,250 40,000 35,000 -
Long-term debt 2,982,835 296,993 291,665 142,846
- ----------------------------------------------------------------------------------------------------------------------------------
Total 7,849,060 779,402 746,385 353,477
- ----------------------------------------------------------------------------------------------------------------------------------
MINORITY INTEREST - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Long-term debt due within one year 220,855 53,327 35,020 21,764
Notes payable 142,300 47,000 - -
Commercial paper 223,930 - - -
Accounts payable--
Affiliated companies 71,373 14,334 8,548 6,025
Other 261,293 20,205 34,065 7,862
Customer deposits 68,618 13,778 3,225 5,541
Taxes accrued--
Federal and state income 4,480 - 1,101 534
Other 111,541 8,258 33,859 2,791
Interest accrued 72,437 7,227 4,098 4,963
Vacation pay accrued 32,285 4,057 5,017 1,893
Miscellaneous 73,398 24,011 23,256 9,031
- ----------------------------------------------------------------------------------------------------------------------------------
Total 1,282,510 192,197 148,189 60,404
- ----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes 2,417,547 166,302 134,645 80,697
Deferred credits related to income taxes 297,560 56,935 38,203 21,469
Accumulated deferred investment tax credits 397,202 31,552 27,121 12,607
Employee benefits provisions(1) 169,887 25,323 51,189 6,353
Prepaid capacity revenues, net - - - -
Department of Energy assessments 41,601 - - -
Disallowed Plant Vogtle capacity buyback costs 55,856 - - -
Storm damage reserves - - 13,991 2,000
Miscellaneous 62,505 13,901 7,106 10,345
- ----------------------------------------------------------------------------------------------------------------------------------
Total 3,442,158 294,013 272,255 133,471
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $12,573,728 $1,265,612 $1,166,829 $ 547,352
==================================================================================================================================
(1) Includes Post Retirement Life & Medical Provisions, Supplemental and Other
Pension Accruals, Early Retirement Incentive Program Costs and Other Work
Force Reduction Costs, and Miscellaneous Post Employment Benefits.
(Continued on following page)
A-8B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
SOUTHERN
CAPITALIZATION AND LIABILITIES SEGCO SCS NUCLEAR SEIH*
CAPITALIZATION (see accompanying statements):
<S> <C> <C> <C> <C>
Common stock equity $ 49,945 $ 875 $ 1,862 $ 2,132,062
Preferred stock of subsidiaries - - - -
Company or subsidiary obligated mandatorily redeemable
capital and preferred securities - - - 682,270
Long-term debt 71,642 36,021 5,000 4,517,903
- --------------------------------------------------------------------------------------------------------------------------------
Total 121,587 36,896 6,862 7,332,235
- --------------------------------------------------------------------------------------------------------------------------------
MINORITY INTEREST - - - 434,984
- --------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Long-term debt due within one year - 2,300 - 366,806
Notes payable - 6,400 - 485,251
Commercial paper - - - 74,043
Accounts payable--
Affiliated companies 8,468 43,385 13,780 1,059
Other - 58,381 13,805 462,501
Customer deposits - - - 6,888
Taxes accrued--
Federal and state income 2,648 - 4,608 129,288
Other 543 5,275 896 79,297
Interest accrued 1,107 3 72 106,780
Vacation pay accrued - 18,197 13,482 3,786
Miscellaneous 389 63,163 25,481 297,784
- --------------------------------------------------------------------------------------------------------------------------------
Total 13,155 197,104 72,124 2,013,483
- --------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes 16,516 - - 663,693
Deferred credits related to income taxes 4,179 - - -
Accumulated deferred investment tax credits 2,506 - - -
Employee benefits provisions(1) - 64,800 58,527 11,124
Prepaid capacity revenues, net - - - -
Department of Energy assessments - - - -
Disallowed Plant Vogtle capacity buyback costs - - - -
Storm damage reserves - - - -
Miscellaneous - 10,647 436 240,713
- --------------------------------------------------------------------------------------------------------------------------------
Total 23,201 75,447 58,963 915,530
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $157,943 $309,447 $ 137,949 $10,696,232
================================================================================================================================
* Preliminary. Currently under audit.
(1) Includes Post Retirement Life & Medical Provisions, Supplemental and Other
Pension Accruals, Early Retirement Incentive Program Costs and Other Work
Force Reduction Costs, and Miscellaneous Post Employment Benefits.
The notes to the financial statements (herein incorporated by reference as
part of exhibit numbers A-1 through A-6 inclusive) are an integral part of this
statement.
A-9A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Energy Southern
CAPITALIZATION AND LIABILITIES MESH Solutions Communications
CAPITALIZATION (see accompanying statements):
<S> <C> <C> <C>
Common stock equity $ 14,888 $ 20,428 $ 101,725
Preferred stock of subsidiaries - - -
Company or subsidiary obligated mandatorily redeemable
capital and preferred securities - - -
Long-term debt 289,969 774 67,288
- -----------------------------------------------------------------------------------------------------------------------------
Total 304,857 21,202 169,013
- -----------------------------------------------------------------------------------------------------------------------------
MINORITY INTEREST 670 - -
- -----------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Long-term debt due within one year 7,885 473 39
Notes payable 16,155 - -
Commercial paper - - -
Accounts payable--
Affiliated companies 23,882 2,414 12,188
Other 4,812 8,411 13,128
Customer deposits - - -
Taxes accrued--
Federal and state income 165 - -
Other 297 47 1,175
Interest accrued 13,504 - 397
Vacation pay accrued - 266 441
Miscellaneous - 2,836 1,993
- -----------------------------------------------------------------------------------------------------------------------------
Total 66,700 14,447 29,361
- -----------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes 51,388 985 18,717
Deferred credits related to income taxes - - -
Accumulated deferred investment tax credits - - -
Employee benefits provisions(1) - - 617
Prepaid capacity revenues, net - - -
Department of Energy assessments - - -
Disallowed Plant Vogtle capacity buyback costs - - -
Storm damage reserves - - -
Miscellaneous - 510 1,870
- -----------------------------------------------------------------------------------------------------------------------------
Total 51,388 1,495 21,204
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $ 423,615 $ 37,144 $ 219,578
=============================================================================================================================
(1) Includes Post Retirement Life & Medical Provisions, Supplemental and Other
Pension Accruals, Early Retirement Incentive Program Costs and Other Work
Force Reduction Costs, and Miscellaneous Post Employment Benefits.
(Continued on following page)
A-9B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET-- DECEMBER 31, 1997
(Stated in Thousands of Dollars)
(Continued)
Southern Southern
CAPITALIZATION AND LIABILITIES Information Telecom SERC
CAPITALIZATION (see accompanying statements):
<S> <C> <C> <C>
Common stock equity $ 1,382 $ 3,563 $ 5
Preferred stock of subsidiaries - - -
Company or subsidiary obligated mandatorily redeemable
capital and preferred securities - - -
Long-term debt - - -
- ----------------------------------------------------------------------------------------------------------------------
Total 1,382 3,563 5
- ----------------------------------------------------------------------------------------------------------------------
MINORITY INTEREST - - -
- ----------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Long-term debt due within one year - - -
Notes payable - - -
Commercial paper - - -
Accounts payable--
Affiliated companies 196 305 716
Other 438 52 18
Customer deposits - - -
Taxes accrued--
Federal and state income - 2,116 -
Other - - -
Interest accrued - - -
Vacation pay accrued - - -
Miscellaneous 50 - -
- ----------------------------------------------------------------------------------------------------------------------
Total 684 2,473 734
- ----------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes - - -
Deferred credits related to income taxes - - -
Accumulated deferred investment tax credits - - -
Employee benefits provisions(1) - - -
Prepaid capacity revenues, net - - -
Department of Energy assessments - - -
Disallowed Plant Vogtle capacity buyback costs - - -
Storm damage reserves - - -
Miscellaneous - 5,131 154
- ----------------------------------------------------------------------------------------------------------------------
Total - 5,131 154
- ----------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $ 2,066 $ 11,167 $ 893
======================================================================================================================
(1) Includes Post Retirement Life & Medical Provisions, Supplemental and Other
Pension Accruals, Early Retirement Incentive Program Costs and Other Work
Force Reduction Costs, and Miscellaneous Post Employment Benefits.
A-9C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997
(Stated in Thousands of Dollars)
Intercompany
Eliminations
and Transfers
Consolidated Add (Deduct) SOUTHERN ALABAMA
COMMON STOCK EQUITY:
Common stock, par value $5 per share
Authorized -- 1,000,000,000 shares
<S> <C> <C> <C> <C>
Outstanding -- 1997: 693 million shares $3,467,115 $ (699,656) $ 3,467,115 $ 224,358
Paid-in capital(1) 2,337,714 (6,022,280) 2,337,714 1,304,744
Retained earnings 3,842,135 (3,367,269) 3,842,135 1,221,467
- ---------------------------------------------------------------------------------------------------------------------------------
Total common stock equity 9,646,964 (10,089,205) 9,646,964 2,750,569
- ---------------------------------------------------------------------------------------------------------------------------------
CUMULATIVE PREFERRED STOCK OF
SUBSIDIARIES
$100 par or stated value--
4.20% to 5.64% 88,930 - - 47,512
6.32% to 7.00% 47,074 - - -
$25 par or stated value--
6.40% to 6.80% 131,661 - - 88,000
Auction rates--at January 1, 1998--
4.20% to 4.235% 70,000 - - 70,000
Adjustable rates--at January 1, 1998--
4.67% to 5.27% 155,681 - - 50,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total (annual dividend requirement--$27 million) 493,346 - - 255,512
- ---------------------------------------------------------------------------------------------------------------------------------
COMPANY OR SUBSIDIARY OBLIGATED
MANDATORILY REDEEMABLE CAPITAL
AND PREFERRED SECURITIES:
$25 liquidation value--
7.375% 97,000 - - 97,000
7.60% to 7.625% 415,000 - - 200,000
7.75% 649,250 - - -
8.14% to 9% 582,270 - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Total (annual distribution requirement--$138 million) 1,743,520 - - 297,000
- ---------------------------------------------------------------------------------------------------------------------------------
LONG-TERM DEBT OF SUBSIDIARIES:
First mortgage bonds --
Maturity Interest Rates
-------------------- ---------------------------------
1998 5% to 8.665% 237,885 - - 50,000
1999 6 1/8% to 8.665% 373,340 - - 170,000
2000 6% to 8.665% 348,840 - - 100,000
2001 8.665% 9,335
2002 6.85% to 8.665% 259,695 100,000
2003 through 2007 6.07% to 8.665% 944,270 - - 475,000
2008 through 2012 6 7/8% to 8.665% 120,740 - - -
2013 through 2017 8.665% 72,860 - - -
2018 through 2022 8.30% to 8 3/4% 476,108 - - 446,108
2023 through 2026 6 7/8% to 9% 1,109,250 - - 500,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total first mortgage bonds 3,952,323 - - 1,841,108
Other long-term debt 7,190,532 (1,521,090) 618,558 742,045
Unamortized debt premium (discount), net (85,444) - - (34,615)
- ------------------------------------------------------------------------------------------------------------------------------------
Total long-term debt (annual interest
requirement--$738 million) 11,057,411 (1,521,090) 618,558 2,548,538
Less amount due within one year 783,805 - - 75,336
- ------------------------------------------------------------------------------------------------------------------------------------
Long-term debt excluding amount due
within one year 10,273,606 (1,521,090) 618,558 2,473,202
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION $ 22,157,436 $(11,610,295) $10,265,522 5,776,283
===================================================================================================================================
A-10A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997
(Stated in Thousands of Dollars)
GEORGIA GULF MISSISSIPPI SAVANNAH
COMMON STOCK EQUITY:
Common stock, par value $5 per share
Authorized -- 1,000,000,000 shares
<S> <C> <C> <C> <C>
Outstanding -- 1997: 693 million shares $ 344,250 $ 38,060 $ 37,691 $ 54,223
Paid-in capital(1) 1,930,131 218,450 179,716 8,688
Retained earnings 1,745,347 172,208 170,417 112,720
- ----------------------------------------------------------------------------------------------------------------------------
Total common stock equity 4,019,728 428,718 387,824 175,631
- ----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE PREFERRED STOCK OF
SUBSIDIARIES
$100 par or stated value--
4.20% to 5.64% 30,355 4,241 6,822 -
6.32% to 7.00% 22,000 - 25,074 -
$25 par or stated value--
6.40% to 6.80% - 8,661 - 35,000
Auction rates--at January 1, 1998--
4.20% to 4.235% - - - -
Adjustable rates--at January 1, 1998--
4.67% to 5.27% 104,892 789 - -
- ----------------------------------------------------------------------------------------------------------------------------
Total (annual dividend requirement--$27 million) 157,247 13,691 31,896 35,000
- ----------------------------------------------------------------------------------------------------------------------------
COMPANY OR SUBSIDIARY OBLIGATED
MANDATORILY REDEEMABLE CAPITAL
AND PREFERRED SECURITIES:
$25 liquidation value--
7.375% - - - -
7.60% to 7.625% 175,000 40,000 - -
7.75% 414,250 - 35,000 -
8.14% to 9% 100,000 - - -
- ----------------------------------------------------------------------------------------------------------------------------
Total (annual distribution requirement--$138 million) 689,250 40,000 35,000 -
- ----------------------------------------------------------------------------------------------------------------------------
LONG-TERM DEBT OF SUBSIDIARIES:
First mortgage bonds --
Maturity Interest Rates
----------------------------- -----------------
1998 5% to 8.665% 100,000 45,000 35,000 -
1999 6 1/8% to 8.665% 195,000 - - -
2000 6% to 8.665% 200,000 - 40,000 -
2001 8.665% - -
2002 6.85% to 8.665% 150,000 - -
2003 through 2007 6.07% to 8.665% 285,000 55,000 35,000 40,000
2008 through 2012 6 7/8% to 8.665% 50,000 - - -
2013 through 2017 8.665% - - - -
2018 through 2022 8.30% to 8 3/4% - - - 30,000
2023 through 2026 6 7/8% to 9% 474,250 30,000 65,000 40,000
- ----------------------------------------------------------------------------------------------------------------------------
Total first mortgage bonds 1,454,250 130,000 175,000 110,000
Other long-term debt 1,757,865 224,957 153,725 54,610
Unamortized debt premium (discount), net (8,425) (4,637) (2,040) -
- ----------------------------------------------------------------------------------------------------------------------------
Total long-term debt (annual interest
requirement--$738 million) 3,203,690 350,320 326,685 164,610
Less amount due within one year 220,855 53,327 35,020 21,764
- ----------------------------------------------------------------------------------------------------------------------------
Long-term debt excluding amount due
within one year 2,982,835 296,993 291,665 142,846
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION $7,849,060 $779,402 $746,385 $ 353,477
============================================================================================================================
(1) Includes premium on preferred stock.
A-10B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997
(Stated in Thousands of Dollars)
SOUTHERN
SEGCO SCS NUCLEAR SEIH*
COMMON STOCK EQUITY:
Common stock, par value $5 per share
Authorized -- 1,000,000,000 shares
<S> <C> <C> <C> <C>
Outstanding -- 1997: 693 million shares $ 328 $ 725 $ $ 10 $ 1
Paid-in capital(1) 32,472 150 1,852 2,131,937
Retained earnings 17,145 - - 124
- ----------------------------------------------------------------------------------------------------------------------------------
Total common stock equity 49,945 875 1,862 2,132,062
- ----------------------------------------------------------------------------------------------------------------------------------
CUMULATIVE PREFERRED STOCK OF
SUBSIDIARIES
$100 par or stated value--
4.20% to 5.64% - - - -
6.32% to 7.00% - - - -
$25 par or stated value--
6.40% to 6.80% - - - -
Auction rates--at January 1, 1998--
4.20% to 4.235% - - - -
Adjustable rates--at January 1, 1998--
4.67% to 5.27% - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Total (annual dividend requirement--$27 million) - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
COMPANY OR SUBSIDIARY OBLIGATED
MANDATORILY REDEEMABLE CAPITAL
AND PREFERRED SECURITIES:
$25 liquidation value--
7.375% - - - -
7.60% to 7.625% - - - -
7.75% - - - 200,000
8.14% to 9% - - - 482,270
- ----------------------------------------------------------------------------------------------------------------------------------
Total (annual distribution requirement--$138 million) - - - 682,270
- ----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM DEBT OF SUBSIDIARIES:
First mortgage bonds --
Maturity Interest Rates
----------------------------- --------------------
1998 5% to 8.665% - - - -
1999 6 1/8% to 8.665% - - - -
2000 6% to 8.665% - - - -
2001 8.665% - -
2002 6.85% to 8.665% - -
2003 through 2007 6.07% to 8.665% - - - -
2008 through 2012 6 7/8% to 8.665% - - - -
2013 through 2017 8.665% - - - -
2018 through 2022 8.30% to 8 3/4% - - - -
2023 through 2026 6 7/8% to 9% - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Total first mortgage bonds - - - -
Other long-term debt 71,902 38,321 5,000 4,891,065
Unamortized debt premium (discount), net (260) - - (6,356)
- ----------------------------------------------------------------------------------------------------------------------------------
Total long-term debt (annual interest
requirement--$738 million) 71,642 38,321 5,000 4,884,709
Less amount due within one year - 2,300 - 366,806
- ----------------------------------------------------------------------------------------------------------------------------------
Long-term debt excluding amount due
within one year 71,642 36,021 5,000 4,517,903
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION $121,587 $ 36,896 $ 6,862 $7,332,235
==================================================================================================================================
(1) Includes premium on preferred stock.
* Preliminary. Currently under audit.
(Continued on following page)
A-11A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997
(Stated in Thousands of Dollars)
Energy Southern Southern Southern
MESH Solutions Communications Information Telecom SERC
COMMON STOCK EQUITY:
Common stock, par value $5 per share
Authorized -- 1,000,000,000 shares
<S> <C> <C> <C> <C> <C> <C>
Outstanding -- 1997: 693 million shares $ 1 $ 1 $ 1 $ 1 $ 1 5
Paid-in capital(1) 14,887 36,842 157,505 1,900 3,006 -
Retained earnings - (16,415) (55,781) (519) 556 -
- ------------------------------------------------------------------------------------------------------------------------------------
Total common stock equity 14,888 20,428 101,725 1,382 3,563 5
- ------------------------------------------------------------------------------------------------------------------------------------
CUMULATIVE PREFERRED STOCK OF
SUBSIDIARIES
$100 par or stated value--
4.20% to 5.64% - - - - - -
6.32% to 7.00% - - - - - -
$25 par or stated value--
6.40% to 6.80% - - - - - -
Auction rates--at January 1, 1998--
4.20% to 4.235% - - - - - -
Adjustable rates--at January 1, 1998--
4.67% to 5.27% - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total (annual dividend requirement--$27 million) - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY OR SUBSIDIARY OBLIGATED
MANDATORILY REDEEMABLE CAPITAL
AND PREFERRED SECURITIES:
$25 liquidation value--
7.375% - - - - - -
7.60% to 7.625% - - - - - -
7.75% - - - - - -
8.14% to 9% - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total (annual distribution requirement--$138 million) - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM DEBT OF SUBSIDIARIES:
First mortgage bonds --
Maturity Interest Rates
----------------------------- ----------------------
1998 5% to 8.665% 7,885 - - - - -
1999 6 1/8% to 8.665% 8,340 - - - - -
2000 6% to 8.665% 8,840 - - - - -
2001 8.665% 9,335
2002 6.85% to 8.665% 9,695
2003 through 2007 6.07% to 8.665% 54,270 - - - - -
2008 through 2012 6 7/8% to 8.665% 70,740 - - - - -
2013 through 2017 8.665% 72,860 - - - - -
2018 through 2022 8.30% to 8 3/4% - - - - - -
2023 through 2026 6 7/8% to 9% - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total first mortgage bonds 241,965 - - - - -
Other long-term debt 85,000 1,247 67,327 - - -
Unamortized debt premium (discount), net (29,111) - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total long-term debt (annual interest
requirement--$738 million) 297,854 1,247 67,327 - - -
Less amount due within one year 7,885 473 39 - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Long-term debt excluding amount due
within one year 289,969 774 67,288 - - -
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 304,857 $ 21,202 $169,013 $1,382 $3,563 $5
====================================================================================================================================
(1) Includes premium on preferred stock.
A-11B
</TABLE>
<PAGE>
SOUTHERN AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF CAPITALIZATION--DECEMBER 31, 1997
(Continued)
NOTE TO CONSOLIDATING STATEMENT OF CAPITALIZATION:
Shares authorized, shares outstanding and redemption prices of the preferred
stock and preferred securities are shown below:
<TABLE>
<CAPTION>
<S> <C> <C>
Shares Redemption Price
Series Authorized Outstanding Per Share**
------- ----------- ----------- --------------------
Cumulative Preferred Stock,
$100 par or stated value--
4.20% to 5.64% 2,165,125 855,992 $102.18 to $110.00
6.32% to 7.00% 1,304,040 504,040 $103.18 to $108.32*
Undesignated 9,535,733 - -
$25 par or stated value--
6.40% to 6.80% 5,266,429 5,266,429 $26.60* to $26.90*
Adjustable rate--at 1/1/98
4.67%-1993 Series 31,560 31,560 $26.25*
4.82%-1993 Series 2,000,000 2,000,000 $26.25*
5.27%-1993 Series 1,627,160 1,627,160 $27.50*
4.85%-1993 Series 2,568,517 2,568,517 $27.50*
Undesignated 46,604,323 - -
$1 Par Value--Undesignated 21,479,800 - -
Auction rate--at 1/1/98: 4.235%
$100 Stated Capital 500,000 500,000 $100
Auction rate--at 1/1/98: 4.20%
$100,000 Stated Capital 200 200 $100,000
$10 Par or Stated Value--
Undesignated 9,622,011 - -
Preferred Securities Redemption Price
Series Authorized Outstanding Per Preferred Security**
------ ---------- ----------- -----------------------
Subsidiary Obligated Mandatorily
Redeemable Preferred Securities
7.375% 3,880,000 3,880,000 $25
7.60% 8,000,000 8,000,000 $25
7.60% 7,000,000 7,000,000 $25
7.625% 1,600,000 1,600,000 $25
7.75% 1,400,000 1,400,000 $25
7.75% 7,570,000 7,570,000 $25
7.75% 9,000,000 9,000,000 $25
9% 4,000,000 4,000,000 $25
</TABLE>
*Amount of premium in excess of par or stated value reduces in future years.
**Plus accrued dividends in each case.
A-12
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dolllars)
Intercompany
Eliminations
and Transfers
Consolidated Add (Deduct) SOUTHERN ALABAMA
<S> <C> <C> <C> <C>
BALANCE, December 31, 1996 $3,763,987 $ (3,310,385) $ 3,763,987 $ 1,185,128
ADD:
Net income after dividends on preferred
stock of subsidiary companies 971,576 (1,071,545) 971,576 375,939
- --------------------------------------------------------------------------------------------------------------------------------
4,735,563 (4,381,930) 4,735,563 1,561,067
DEDUCT (ADD):
Cash dividends paid on common stock 889,005(1) (1,010,782) 889,005(1) 339,600
Other common and preferred stock
transactions, net 4,423 (3,879) 4,423 -
- --------------------------------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $3,842,135 $ (3,367,269) $ 3,842,135 $ 1,221,467
================================================================================================================================
(1) SOUTHERN paid quarterly dividends during 1997 of 32-1/2(cent) per share or $1.30 for the year.
A-13A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dolllars)
GEORGIA GULF MISSISSIPPI SAVANNAH
<S> <C> <C> <C> <C>
BALANCE, December 31, 1996 $1,674,774 $179,179 $166,282 $109,373
ADD:
Net income after dividends on preferred
stock of subsidiary companies 593,996 57,610 54,010 23,847
- -----------------------------------------------------------------------------------------------------------
2,268,770 236,789 220,292 133,220
DEDUCT (ADD):
Cash dividends paid on common stock 520,000 64,600 49,400 20,500
Other common and preferred stock
transactions, net 3,423 (19) 475 -
- -----------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $1,745,347 $172,208 $170,417 $112,720
===========================================================================================================
(1)SOUTHERN paid quarterly dividends during 1997 of 32-1/2(cent)per share or $1.30 for the year.
A-13B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dolllars)
Energy
SEGCO SEIH* MESH Solutions
<S> <C> <C> <C> <C>
BALANCE, December 31, 1996 $ 19,263 $ 16,219 $ - $ (11,039)
ADD:
Net income after dividends on preferred
stock of subsidiary companies 8,532 (16,095) 6,032 (5,376)
- ------------------------------------------------------------------------------------------------------------------------------
27,795 124 6,032 (16,415)
DEDUCT (ADD):
Cash dividends paid on common stock 10,650 - 6,032 -
Other common and preferred stock
transactions, net - - - -
- ------------------------------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $ 17,145 $ 124 $ - $ (16,415)
==============================================================================================================================
(1)SOUTHERN paid quarterly dividends during 1997 of 32-1/2(cent)per share or $1.30 for the year.
A-13C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dolllars)
Southern Southern Southern
Communications Information Telecom
<S> <C> <C> <C>
BALANCE, December 31, 1996 $ (28,769) $ (1) $ (24)
ADD:
Net income after dividends on preferred
stock of subsidiary companies (27,012) (518) 580
- ------------------------------------------------------------------------------------------------------------------------------
(55,781) (519) 556
DEDUCT (ADD):
Cash dividends paid on common stock - - -
Other common and preferred stock
transactions, net - - -
- ------------------------------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $ (55,781) $ (519) $ 556
===========================================================================================-----==============================
* Preliminary. Currently under audit.
The notes to the financial statements (herein incorporated by reference as part
of exhibit numbers A-1 through A-6 inclusive) are an integral part of this
statement.
A-13D
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1)
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
Intercompany
Eliminations
and Transfers
Consolidated Add (Deduct) SOUTHERN ALABAMA
<S> <C> <C> <C> <C>
BALANCE, December 31, 1996 $ 2,067,228 $(5,067,756) $ 2,067,228 $ 1,304,791
ADD (DEDUCT):
Proceeds from issuance of common
stock over the par value thereof 277,756(2) - 277,756(2) -
Contributions to (distributions from) capital - (961,330) - -
Conversion of debt to equity - - - -
Translation adjustment - 6,512 - -
Unrealized gains/losses on investment
valuations - - - -
Other (7,270) 294 (7,270) (47)
- -------------------------------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $ 2,337,714 $(6,022,280) $ 2,337,714 $ 1,304,744
===============================================================================================================================
(1) Includes premium on preferred stock.
(2) SOUTHERN issued 16.4 million shares of common stock during 1997.
A-14A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1)
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
GEORGIA GULF MISSISSIPPI SAVANNAH
<S> <C> <C> <C> <C>
BALANCE, December 31, 1996 $ 2,135,257 $ 218,519 $ 179,761 8,688
ADD (DEDUCT):
Proceeds from issuance of common
stock over the par value thereof - - - -
Contributions to (distributions from) capital (205,000) - - -
Conversion of debt to equity - - - -
Translation adjustment - - - -
Unrealized gains/losses on investment
valuations - - - -
Other (126) (69) (45) -
- ------------------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $ 1,930,131 $ 218,450 $ 179,716 8,688
==================================================================================================================
(1) Includes premium on preferred stock.
(2) SOUTHERN issued 16.4 million shares of common stock during 1997.
A-14B
</TABLE>
<PAGE>
<TABLE>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1)
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
SOUTHERN
SEGCO SCS NUCLEAR SEIH*
<S> <C> <C> <C> <C>
BALANCE, December 31, 1996 $ 32,472 $150 $ 1,859 $ 971,492
ADD (DEDUCT):
Proceeds from issuance of common
stock over the par value thereof - - - -
Contributions to (distributions from) capital - - - 1,166,957
Conversion of debt to equity - - - -
Translation adjustment - - - (6,512)
Unrealized gains/losses on investment
valuations - - - -
Other - - (7) -
- ------------------------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $ 32,472 $150 $ 1,852 2,131,937
========================================================================================================================
* Preliminary. Currently under audit.
The notes to the financial statements (herein incorporated by reference as part
of exhibit numbers A-1 through A-6 inclusive) are an integral part of this
statement.
A-14C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF PAID-IN CAPITAL (1)
FOR THE YEAR ENDED DECEMBER 31, 1997
(Stated in Thousands of Dollars)
Energy Southern Southern Southern
MESH Solutions Communications Information Telecom
<S> <C> <C> <C> <C> <C>
BALANCE, December 31, 1996 $ 31,373 $ 25,658 $ 157,505 $ 5 $ 226
ADD (DEDUCT):
Proceeds from issuance of common
stock over the par value thereof - - - - -
Contributions to (distributions from) capital (16,486) 11,184 - 1,895 2,780
Conversion of debt to equity - - - - -
Translation adjustment - - - - -
Unrealized gains/losses on investment
valuations - - - - -
Other - - - - -
- ---------------------------------------------------------------------------------------------------------------------
BALANCE, December 31, 1997 $ 14,887 $36,842 $ 157,505 $ 1,900 $ 3,006
=====================================================================================================================
* Preliminary. Currently under audit.
The notes to the financial statements (herein incorporated by reference as part
of exhibit numbers A-1 through A-6 inclusive) are an integral part of this
statement.
A-14D
</TABLE>
<PAGE>
Notes to Financial Statements
at December 31, 1997
The notes to the financial statements are herein incorporated by reference as
part of exhibit numbers A-1 through A-6 inclusive and are an integral part of
the financial statements.
A-15
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
ALABAMA ALABAMA
Consolidated Eliminations CORPORATE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOTAL OPERATING REVENUES $3,149,111 $ - $3,149,111
- ------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation --
Fuel 896,014 - 896,014
Purchased and interchanged, net 41,795 - 41,795
Purchase power from affiliates 95,538 - 95,538
Other 510,203 - 510,203
Maintenance 242,691 - 242,691
Depreciation and amortization 330,377 - 330,377
Taxes other than income taxes 185,062 - 185,062
Federal and state income taxes 220,228 - 220,228
- ------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 2,521,908 - 2,521,908
- ------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 627,203 627,203
OTHER INCOME (EXPENSE):
Income from subsidiary 4,266 - 4,266
Interest income 37,844 (23,109) 38,517
Other, net (38,522) - (38,522)
Income taxes applicable to other income 12,351 - 12,351
- -------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 643,142 (23,109) 643,815
- -------------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES:
Interest on long-term debt 167,172 (22,436) 189,608
Allowance for debt funds used during construction (4,787) - (4,787)
Interest on interim obligations 22,787 - 22,787
Amortization of debt discount, premium and expense, net 9,645 - 9,645
Other interest charges 57,800 (673) 36,037
- ------------------------------------------------------------------------------------------------------------------------------
Net interest charges 252,617 (23,109) 253,290
- ------------------------------------------------------------------------------------------------------------------------------
NET INCOME 390,525 - 390,525
DIVIDENDS ON PREFERRED STOCK 14,586 - -
- ------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $375,939 $ - $390,525
==============================================================================================================================
A-16A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
ALABAMA ALABAMA
TRUST I TRUST II
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
TOTAL OPERATING REVENUES $ - $ -
- ----------------------------------------------------------------------------------------------------------
-
OPERATING EXPENSES: -
Operation -- -
Fuel - -
Purchased and interchanged, net - -
Purchase power from affiliates - -
Other - -
Maintenance - -
Depreciation and amortization - -
Taxes other than income taxes - -
Federal and state income taxes - -
- ------------------------------------------------------------------------------------------------------------
Total operating expenses - -
- ------------------------------------------------------------------------------------------------------------
OPERATING INCOME
OTHER INCOME (EXPENSE):
Income from subsidiary - -
Interest income 7,375 15,061
Other, net - -
Income taxes applicable to other income - -
- ------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 7,375 15,061
- ------------------------------------------------------------------------------------------------------------
INTEREST CHARGES:
Interest on long-term debt - -
Allowance for debt funds used during construction - -
Interest on interim obligations - -
Amortization of debt discount, premium and expense, net - -
Other interest charges 7,375 15,061
- ------------------------------------------------------------------------------------------------------------
Net interest charges 7,375 15,061
- ------------------------------------------------------------------------------------------------------------
NET INCOME - -
DIVIDENDS ON PREFERRED STOCK
- -------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ - $ -
=============================================================================================================
A-16B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
- -----------------------------------------------------------------------------------------------------------------------------------
ALABAMA ALABAMA
Consolidated Eliminations CORPORATE
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C> <C>
Net Income $ 390,525 $ - $ 390,525
Adjustments to reconcile consolidated net income to net cash
provided by operating activities -
Depreciation and amortization 394,572 - 394,572
Deferred income taxes, net (12,429) - (12,429)
Other, net (11,353) - (11,353)
Change in current assets and liabilities -
Receivables, net (30,268) - (30,268)
Inventories 13,709 - 13,709
Payables (9,745) - (9,745)
Taxes accrued 6,191 - 6,191
Energy cost recovery, retail 7,108 - 7,108
Other 7,127 - 7,127
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 755,437 - 755,437
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Gross property additions (451,167) - (451,167)
Other (51,791) 212,372 (57,977)
- ---------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (502,958) 212,372 (509,144)
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS
Proceeds--
Preferred securities 200,000 (6,186) -
Other long term debt 258,800 (206,186) 464,986
Retirements--
Preferred stock (184,888) - (184,888)
First mortgage bonds (74,951) - (74,951)
Other long term debt (951) - (951)
Interim obligations, net (57,971) - (57,971)
Payment of common stock dividends (339,600) - (339,600)
Payment of preferred stock dividends (22,524) - (22,524)
Other-- (16,024) - (16,024)
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR FINANCINGS (238,109) (212,372) (231,923)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 14,370 - 14,370
CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 9,587 - 9,587
- ---------------------------------------------------------------------------------------------------------------------------------
CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 23,957 $ - $ 23,957
==================================================================================================================================
A-17A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
ALABAMA ALABAMA
TRUST I TRUST II
- ---------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C>
Net Income $ - $ -
Adjustments to reconcile consolidated net income to net cash
provided by operating activities -
Depreciation and amortization - -
Deferred income taxes, net - -
Other, net - -
Change in current assets and liabilities -
Receivables, net - -
Inventories - -
Payables - -
Taxes accrued - -
Energy cost recovery, retail - -
Other - -
- ---------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES - -
- ---------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Gross property additions - -
Other - (206,186)
- ---------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES -
- ---------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS
Proceeds--
Preferred securities - 206,186
Other long term debt - -
Retirements--
Preferred stock - -
First mortgage bonds - -
Other long term debt - -
Interim obligations, net - -
Payment of common stock dividends - -
Payment of preferred stock dividends - -
Other-- - -
- ---------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR FINANCINGS - 206,186
- ---------------------------------------------------------------------------------------------------------------------------
NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS - 206,186
CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD - -
- --------------------------------------------------------------------------------------------------------------------------
CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ - $ 206,186
===========================================================================================================================
A17B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
ALABAMA ALABAMA
Consolidated Eliminations CORPORATE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITY PLANT $7,100,638 $ - $7,100,638
- -------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS 240,213 (315,372) 249,399
- -------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 23,957 - 23,957
Receivables -
Customer accounts receivable 368,255 - 368,255
Affiliated companies 50,353 - 50,353
Other accounts receivable 28,921 - 28,921
Accumulated provision for uncollectible accts (2,272) - (2,272)
Fossil fuel stock, at average cost 74,186 - 74,186
Materials and supplies, at average cost 161,601 - 161,601
Prepayments 20,453 - 20,453
Vacation pay deferred 28,783 - 28,783
- -------------------------------------------------------------------------------------------------------------------------
TOTAL 754,237 - 754,237
- -----------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES
Deferred charges related to income taxes 384,549 - 384,549
Debt expense, being amortized 7,276 - 7,276
Premium on reacquired debt, being amortized 81,417 - 81,417
Prepaid pension Costs 130,733 - 130,733
Department of Energy assessments 34,416 - 34,416
Miscellaneous 79,388 - 79,388
- -----------------------------------------------------------------------------------------------------------------------
TOTAL 717,779 - 717,779
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $8,812,867 $(315,372) $ 8,822,053
=======================================================================================================================
A-18A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
ALABAMA ALABAMA
TRUST I TRUST II
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITY PLANT $ - $ -
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS 100,000 206,186
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents - -
Receivables -
Customer accounts receivable - -
Affiliated companies - -
Other accounts receivable - -
Accumulated provision for uncollectible accts - -
Fossil fuel stock, at average cost - -
Materials and supplies, at average cost - -
Prepayments - -
Vacation pay deferred - -
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL - -
- ----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES
Deferred charges related to income taxes - -
Debt expense, being amortized - -
Premium on reacquired debt, being amortized - -
Prepaid pension Costs - -
Department of Energy assessments - -
Miscellaneous - -
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL - -
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 100,000 $ 206,186
==================================================================================================================================
A-18B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
ALABAMA ALABAMA
Consolidated Eliminations CORPORATE
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION
<S> <C> <C> <C>
Common Stock Equity $2,750,569 $ - $ 2,750,569
Preferred Stock 255,512 - 255,512
Company obligated mandatorily
redeemable preferred securities 297,000 (9,186) -
Long-term debt 2,473,202 (306,186) 2,779,388
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL 5,776,283 (315,372) 5,785,469
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Long-term debt due within one year 75,336 - 75,336
Commercial paper 306,882 - 306,882
Accounts payable -
Affiliated companies 79,822 - 79,822
Other 159,146 - 159,146
Customer deposits 34,968 - 34,968
Taxes accrued 36,486 - 36,486
Interest accrued 50,722 - 50,722
Vacation pay accrued 28,783 - 28,783
Miscellaneous 103,602 - 103,602
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL 875,747 - 875,747
- -----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 1,192,265 - 1,192,265
Accumulated deferred investment tax credits 282,873 - 282,873
Prepaid capacity revenues, net 109,982 - 109,982
Department of Energy assessments 30,592 - 30,592
Deferred credits related to income taxes 327,328 - 327,328
Natural disaster reserve 22,416 - 22,416
Miscellaneous 195,381 - 195,381
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL 2,160,837 - 2,160,837
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $8,812,867 $(315,372) $8,822,053
===================================================================================================================================
A-19A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALABAMA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
ALABAMA ALABAMA
TRUST I TRUST II
- ----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION
<S> <C> <C>
Common Stock Equity $ - $ -
Preferred Stock - -
Company obligated mandatorily
redeemable preferred securities 100,000 206,186
Long-term debt - -
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL 100,000 206,186
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Long-term debt due within one year - -
Commercial paper - -
Accounts payable -
Affiliated companies - -
Other - -
Customer deposits - -
Taxes accrued - -
Interest accrued - -
Vacation pay accrued - -
Miscellaneous - -
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL - -
- ----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes - -
Accumulated deferred investment tax credits - -
Prepaid capacity revenues, net - -
Department of Energy assessments - -
Deferred credits related to income taxes - -
Natural disaster reserve - -
Miscellaneous - -
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL - -
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $ 100,000 $ 206,186
==================================================================================================================================
A-19B
</TABLE>
<PAGE>
Notes to ALABAMA's Consolidated
Financial Statements
(A) Represents equity in earnings of SEGCO, a non-consolidated
subsidiary in which ALABAMA has 50% ownership, which is
accounted for on the equity basis. See pages A-2 through A-16
for SEGCO's financial statements consolidated for SOUTHERN.
(B) Includes $984,000 equity in earnings of Alabama Property
Company, a non-consolidated subsidiary, which is accounted
for on the equity basis. See pages A-24 through A-26 for
Alabama Property Company's financial statements.
(C) Represents ALABAMA's investment in SEGCO.
(D) Includes $9,400,601 of investments in Alabama Property Company.
A-20
<PAGE>
ALABAMA TRUST I
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, ALABAMA)
(Unaudited)
(in thousands)
Interest Revenue $7,375
Distribution Expense 7,375
------
NET OF REVENUES AND EXPENSES $ 0
======
ALABAMA TRUST I
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, ALABAMA)
(Unaudited)
(in thousands)
INVESTING ACTIVITIES: $0
FINANCING ACTIVITIES: 0
NET INCREASE ( DECREASE) IN CASH 0
CASH AT BEGINNING OF PERIOD 0
------
CASH AT END OF PERIOD $ 0
======
A-21
<PAGE>
ALABAMA TRUST I
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, ALABAMA)
(Unaudited)
(in thousands)
ASSETS
Investment in ALABAMA $100,000
--------
TOTAL ASSETS $100,000
========
LIABILITIES
Common securities $ 3,000
Preferred securities 97,000
--------
TOTAL LIABILITIES $100,000
========
A-22
<PAGE>
ALABAMA TRUST II
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, ALABAMA)
(Unaudited)
(in thousands)
Interest Revenue $15,061
Distribution Expense 15,061
NET OF REVENUES AND EXPENSES $ 0
=======
ALABAMA TRUST II
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, ALABAMA)
(Unaudited)
(in thousands)
INVESTING ACTIVITIES:
Investment in ALABAMA Junior Subordinated Notes $206,186
--------
FINANCING ACTIVITIES:
Proceeds from issuance of 7.60% Trust Common Securities 6,186
Proceeds from issuance of 7.60% Trust Preferred Securities 200,000
--------
NET INCREASE ( DECREASE) IN CASH 0
CASH AT BEGINNING OF PERIOD 0
--------
CASH AT END OF PERIOD $ 0
========
A-23
<PAGE>
ALABAMA TRUST II
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, ALABAMA)
(Unaudited)
(in thousands)
ASSETS
Investment in ALABAMA $206,186
TOTAL ASSETS $206,186
--------
LIABILITIES
Common securities $ 6,186
Preferred securities 200,000
--------
TOTAL LIABILITIES $206,186
========
A-24
<PAGE>
ALABAMA PROPERTY COMPANY
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31,
1997 (Unaudited; Not Consolidated in
Parent, ALABAMA)
REVENUES:
Sales of recreational lots $1,982,900
Rentals 117,738
----------
Total Revenues 2,110,638
----------
COSTS AND EXPENSES:
Cost of recreational lot sales 300,935
Selling, administrative and general expenses 546,815
----------
Total costs and expenses 847,750
----------
OPERATING INCOME 1,252,888
OTHER INCOME (EXPENSE):
Interest income 197,230
INCOME BEFORE PROVISION FOR INCOME TAXES 1,450,118
PROVISION FOR INCOME TAXES 466,118
----------
NET INCOME $ 984,000
==========
ALABAMA PROPERTY COMPANY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31,
1997 (Unaudited; Not Consolidated in
Parent, ALABAMA)
RETAINED EARNINGS AT DECEMBER 31, 1996 $7,966,601
Net income 984,000
----------
RETAINED EARNINGS AT DECEMBER 31, 1997 $8,950,661
==========
A-25
<PAGE>
ALABAMA PROPERTY COMPANY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31,
1997 (Unaudited; Not Consolidated in
Parent, ALABAMA)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 984,000
----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Changes in current assets and liabilities:
(Increase) decrease in receivables (32,537)
Increase (decrease) in accounts payable 590,205
Increase (decrease) in taxes accrued (816,376)
----------
NET CASH PROVIDED FROM OPERATING ACTIVITIES (258,708)
----------
INVESTING AND FINANCING ACTIVITIES:
Gross property additions, net (1,763,040)
NET CHANGE IN CASH AND CASH EQUIVALENTS (1,037,748)
CASH AND CASH EQUIVALENTS, Beginning of year 4,088,787
CASH AND CASH EQUIVALENTS, End of year $3,051,039
==========
A-26
<PAGE>
ALABAMA PROPERTY COMPANY
BALANCE SHEET AT DECEMBER 31, 1996
(Unaudited; Not Consolidated in Parent, ALABAMA)
ASSETS
CURRENT ASSETS:
Cash $ 150,490
Temporary cash investments 2,900,549
Accounts receivable
Other 2,500
Associated Companies 38,586
----------
Total current assets 3,092,125
PROPERTY AND MINERAL RIGHTS HELD FOR
FUTURE DEVELOPMENT 6,391,389
----------
Total Assets $9,483,514
==========
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Payable to parent company $ 653,128
Accrued income taxes (591,725)
Other accrued taxes 21,510
----------
Total current liabilities 82,913
SHAREHOLDER'S INVESTMENT:
Common stock, $150 par value; 1,000 shares
authorized, issued and outstanding 150,000
Additional paid-in capital 300,000
Retained earnings 8,950,601
-----------
Total shareholder's investment 9,400,601
----------
Total liabilities and capitalization $9,483,514
==========
A-27
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
Consolidated Eliminations CORPORATE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOTAL OPERATING REVENUES $4,385,717 $ (838) $4,385,717
- ---------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation --
Fuel 857,269 - 857,269
Purchased and interchanged, net 143,409 - 143,409
Purchase power from affiliates 177,240 - 177,240
Other 702,159 (838) 702,950
Maintenance 317,199 - 317,199
Depreciation and amortization 572,640 - 572,592
Amortization of deferred Plant Vogtle expenses, net 120,577 - 120,577
Taxes other than income taxes 207,192 - 206,853
Federal and state income taxes 426,918 - 426,743
- ---------------------------------------------------------------------------------------------------------------------------
Total operating expenses 3,524,603 (838) 3,524,832
- ---------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 861,114 - 860,885
OTHER INCOME (EXPENSE):
Allowance for equity funds used during construction 6,012 - 6,012
Interest income 10,581 (49,417) 10,188
Other, net (31,568) - (31,498)
Income taxes applicable to other income 31,763 - 31,902
- ---------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 877,902 (49,417) 877,489
- ---------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES:
Interest on long-term debt 194,344 (49,417) 243,179
Allowance for debt funds used during construction (8,962) - (8,962)
Amortization of debt discount, premium and expense, net 14,179 - 14,179
Other interest charges 65,418 - 18,049
- --------------------------------------------------------------------------------------------------------------------------
Net interest charges 264,979 (49,417) 266,445
- --------------------------------------------------------------------------------------------------------------------------
NET INCOME 612,923 - 611,044
DIVIDENDS ON PREFERRED STOCK 18,927 - 18,927
- --------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 593,996 $ - $592,117
==========================================================================================================================
A-28A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
PIEDMONT CAPITAL TRUST I
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOTAL OPERATING REVENUES $ 838 $ - $ -
- -----------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation --
Fuel - - -
Purchased and interchanged, net - - -
Purchase power from affiliates - - -
Other - 47 -
Maintenance - - -
Depreciation and amortization 48 - -
Amortization of deferred Plant Vogtle expenses, net - - -
Taxes other than income taxes 339 - -
Federal and state income taxes 175 - -
- -----------------------------------------------------------------------------------------------------------------------------
Total operating expenses 562 47 -
- -----------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 276 (47) -
OTHER INCOME (EXPENSE):
Allowance for equity funds used during construction
Interest income 976 9,279 17,977
Other, net (70)
Income taxes applicable to other income (139)
- -----------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 1,043 9,232 17,977
- -----------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES:
Interest on long-term debt 582 - -
Allowance for debt funds used during construction - - -
Amortization of debt discount, premium and expense, net - - -
Other interest charges - 9,000 17,438
- -----------------------------------------------------------------------------------------------------------------------------
Net interest charges 582 9,000 17,438
- ----------------------------------------------------------------------------------------------------------------------------
NET INCOME 461 232 539
DIVIDENDS ON PREFERRED STOCK - - -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 461 $ 232 $ 539
============================================================================================================================
A-28B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
TRUST II TRUST III
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TOTAL OPERATING REVENUES $ - $ -
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation --
Fuel - -
Purchased and interchanged, net - -
Purchase power from affiliates - -
Other - -
Maintenance - -
Depreciation and amortization - -
Amortization of deferred Plant Vogtle expenses, net - -
Taxes other than income taxes - -
Federal and state income taxes - -
- ----------------------------------------------------------------------------------------------------------------------------------
Total operating expenses - -
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME - -
OTHER INCOME (EXPENSE):
Allowance for equity funds used during construction
Interest income 13,178 8,400
Other, net
Income taxes applicable to other income
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 13,178 8,400
- ----------------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES:
Interest on long-term debt - -
Allowance for debt funds used during construction - -
Amortization of debt discount, premium and expense, net - -
Other interest charges 12,783 8,148
- ----------------------------------------------------------------------------------------------------------------------------------
Net interest charges 12,783 8,148
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCOME 395 252
DIVIDENDS ON PREFERRED STOCK - -
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 395 $ 252
==================================================================================================================================
A-28C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
Consolidated Eliminations CORPORATE
- --------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C> <C>
Net Income $612,923 $ - $ 611,044
Adjustments to reconcile consolidated net income to net cash
provided by operating activities -
Depreciation and amortization 674,286 - 674,180
Deferred income taxes, net (21,425) - (21,545)
Allowance for equity funds used during construction (6,012) - (6,012)
Amortization of deferred Plant Vogtle costs 120,577 - 120,577
Other, net 27,200 - 27,200
Change in current assets and liabilities -
Receivables, net 13,387 1,497 13,386
Inventories 39,748 - 39,748
Payables (10,007) (1,497) (8,588)
Taxes accrued (3,596) - (3,704)
Other (75,253) - (75,253)
- --------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 1,371,828 - 1,371,033
- --------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Property additions (475,921) - (475,921)
Sales of property - -
Other investing activities 16,223 385,987 5,751
- --------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (459,698) 385,987 (470,170)
- --------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS
Proceeds--
Preferred securities 364,250 - -
First mortgage bonds - - -
Other long term debt 284,700 (375,560) 660,215
Retirements--
Preferred stock (356,392) - (356,392)
First mortgage bonds (60,258) - (60,258)
Other long term debt (284,700) - (284,700)
Interim obligations, net (64,266) - (64,266)
Special deposits - redemption funds 44,454 - 44,454
Capital distribution to parent company (205,000) - (205,000)
Payment of common stock dividends (520,000) - (520,000)
Payment of preferred stock dividends (26,917) - (26,917)
Other-- (20,024) (10,427) (20,024)
- -------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR FINANCINGS (844,153) (385,987) (832,888)
- -------------------------------------------------------------------------------------------------------------------------------
NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 67,977 - 67,975
CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 15,356 - 15,313
- --------------------------------------------------------------------------------------------------------------------------------
CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $83,333 $ - $83,288
================================================================================================================================
A-29A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
PIEDMONT CAPITAL TRUST I
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C> <C>
Net Income $ 461 $ 232 $ 539
Adjustments to reconcile consolidated net income to net cash
provided by operating activities -
Depreciation and amortization 106 - -
Deferred income taxes, net 120 - -
Allowance for equity funds used during construction - - -
Amortization of deferred Plant Vogtle costs - - -
Other, net - - -
Change in current assets and liabilities - - -
Receivables, net - (232) (539)
Inventories - - -
Payables - - -
Taxes accrued 108 - -
Other - - -
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 795 - -
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Property additions - - -
Sales of property - - -
Other investing activities - - -
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES - - -
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS
Proceeds--
Preferred securities - - -
First mortgage bonds - - -
Other long term debt 45 - -
Retirements--
Preferred stock - - -
First mortgage bonds - - -
Other long term debt - - -
Interim obligations, net - - -
Special deposits - redemption funds - - -
Capital distribution to parent company - - -
Payment of common stock dividends - - -
Payment of preferred stock dividends - - -
Other-- (838) - -
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR FINANCINGS (793) - -
- ----------------------------------------------------------------------------------------------------------------------------------
NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 2 - -
CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 43 - -
==================================================================================================================================
CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 45 $ - $ -
==================================================================================================================================
A-29B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
TRUST II TRUST III
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C>
Net Income $ 395 $ 252
Adjustments to reconcile consolidated net income to net cash
provided by operating activities -
Depreciation and amortization - -
Deferred income taxes, net - -
Allowance for equity funds used during construction - -
Amortization of deferred Plant Vogtle costs - -
Other, net - -
Change in current assets and liabilities -
Receivables, net (432) (293)
Inventories - -
Payables 37 41
Taxes accrued - -
Other - -
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES - -
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Property additions - -
Sales of property - -
Other investing activities (180,412) (195,103)
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (180,412) (195,103)
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS
Proceeds--
Preferred securities 175,000 189,250
First mortgage bonds - -
Other long term debt - -
Retirements--
Preferred stock - -
First mortgage bonds - -
Other long term debt - -
Interim obligations, net - -
Special deposits - redemption funds - -
Capital distribution to parent company - -
Payment of common stock dividends - -
Payment of preferred stock dividends - -
Other-- 5,412 5,853
- ----------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR FINANCINGS 180,412 195,103
- ----------------------------------------------------------------------------------------------------------------------------------
NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS - -
CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD - -
==================================================================================================================================
CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ - $ -
==================================================================================================================================
A-29C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
Consolidated Eliminations CORPORATE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITY PLANT $10,103,900 $ - $10,084,770
- ------------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS 307,297 (754,935) 349,461
- ------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 83,333 - 83,288
Receivables -
Customer accounts receivable 385,844 - 385,844
Affiliated companies 20,333 - 20,333
Other accounts receivable 110,278 (2,190) 110,278
Accumulated provision for uncollectible accts (3,000) - (3,000)
Fossil fuel stock, at average cost 96,067 - 96,067
Materials and supplies, at average cost 240,387 - 240,387
Prepayments 27,503 - 27,503
Vacation pay deferred 40,996 - 40,996
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL 1,001,741 (2,190) 1,001,696
- ------------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES
Deferred charges related to income taxes 688,472 - 688,472
Deferred Plant Vogtle costs 50,412 - 50,412
Prepaid pension Costs 67,777 - 67,777
Miscellaneous 354,129 - 354,128
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL 1,160,790 - 1,160,789
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $12,573,728 $(757,125) $12,596,716
==============================================================================================================================
A-30A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
PIEDMONT CAPITAL TRUST I
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITY PLANT $19,130 $ - $ -
- ------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS 2,197 103,100 231,959
- ------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 45 - -
Receivables -
Customer accounts receivable - - -
Affiliated companies - - -
Other accounts receivable - 792 673
Accumulated provision for uncollectible accts - - -
Fossil fuel stock, at average cost - - -
Materials and supplies, at average cost - - -
Prepayments - - -
Vacation pay deferred - -
- ------------------------------------------------------------------------------------------------------------------
TOTAL 45 792 673
- ------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES
Deferred charges related to income taxes - - -
Deferred Plant Vogtle costs - - -
Prepaid pension Costs - - -
Miscellaneous 1 - -
- ------------------------------------------------------------------------------------------------------------------
TOTAL 1 - -
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $21,373 $ 103,892 $232,632
==================================================================================================================
A-30B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
TRUST II TRUST III
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITY PLANT $ - $ -
- ---------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS 180,412 195,103
- ---------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents - -
Receivables -
Customer accounts receivable - -
Affiliated companies - -
Other accounts receivable 432 293
Accumulated provision for uncollectible accts - -
Fossil fuel stock, at average cost - -
Materials and supplies, at average cost - -
Prepayments - -
Vacation pay deferred - -
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 432 293
- ---------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES
Deferred charges related to income taxes - -
Deferred Plant Vogtle costs - -
Prepaid pension Costs - -
Miscellaneous - -
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL - -
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 180,844 $ 195,396
===========================================================================================================================
A-30C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
Consolidated Eliminations CORPORATE
- -------------------------------------------------------------------------------------------------------------------
CAPITALIZATION
<S> <C> <C> <C>
Common Stock Equity $4,019,728 $ (31,706) $ 4,019,729
Preferred Stock 157,247 - 157,247
Company obligated mandatorily
redeemable preferred securities 689,250 - -
Long-term debt 2,982,835 (723,229) 3,693,420
- ------------------------------------------------------------------------------------------------------------------
TOTAL 7,849,060 (754,935) 7,870,396
- ------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Securities due within one year 220,855 - 220,855
Notes payable to banks 142,300 - 142,300
Commercial paper 223,930 - 223,930
Accounts payable - - - -
Affiliated companies 71,373 - 71,373
Other 261,293 - 261,293
Customer deposits 68,618 - 68,618
Taxes accrued 116,021 - 115,402
Interest accrued 72,437 (2,190) 74,549
Vacation pay accrued 32,285 - 32,285
Miscellaneous 73,398 - 73,398
- ------------------------------------------------------------------------------------------------------------------
TOTAL 1,282,510 (2,190) 1,284,003
- ------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 2,417,547 - 2,417,706
Accumulated deferred investment tax credits 397,202 - 397,202
Deferred credits related to income taxes 297,560 - 297,560
Miscellaneous 329,849 - 329,849
- ------------------------------------------------------------------------------------------------------------------
TOTAL 3,442,158 - 3,442,317
- ------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $12,573,728 $(757,125) $ 12,596,716
===================================================================================================================
A-31A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
PIEDMONT CAPITAL TRUST I
- -----------------------------------------------------------------------------------------------------------------
CAPITALIZATION
<S> <C> <C> <C>
Common Stock Equity $ 8,269 $ 3,892 $ 7,632
Preferred Stock - - -
Company obligated mandatorily
redeemable preferred securities - 100,000 225,000
Long-term debt 12,644 - -
- --------------------------------------------------------------------------------------------------------------
TOTAL 20,913 103,892 232,632
- --------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Securities due within one year - - -
Notes payable to banks - - -
Commercial paper - - -
Accounts payable - - - -
Affiliated companies - - -
Other - - -
Customer deposits - - -
Taxes accrued 619 - -
Interest accrued - - -
Vacation pay accrued - - -
Miscellaneous - - -
- ----------------------------------------------------------------------------------------------------------------
TOTAL 619 - -
- ----------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (159) - -
Accumulated deferred investment tax credits - - -
Deferred credits related to income taxes - - -
Miscellaneous - - -
- ----------------------------------------------------------------------------------------------------------------
TOTAL (159) - -
- ----------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $ 21,373 $ 103,892 $ 232,632
================================================================================================================
A-31B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GEORGIA POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GEORGIA GEORGIA
TRUST II TRUST III
- ---------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION
<S> <C> <C>
Common Stock Equity $ 5,807 $ 6,105
Preferred Stock - -
Company obligated mandatorily
redeemable preferred securities 175,000 189,250
Long-term debt - -
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 180,807 195,355
- ---------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Securities due within one year - -
Notes payable to banks - -
Commercial paper - -
Accounts payable - - -
Affiliated companies - -
Other - -
Customer deposits - -
Taxes accrued - -
Interest accrued 37 41
Vacation pay accrued - -
Miscellaneous - -
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 37 41
- ---------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes - -
Accumulated deferred investment tax credits - -
Deferred credits related to income taxes - -
Miscellaneous - -
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL - -
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $ 180,844 $ 195,396
===========================================================================================================================
A-31C
</TABLE>
<PAGE>
Notes to GEORGIA's Consolidated
Financial Statements
(A) Includes $4,266,000 equity in earnings for SEGCO, a
non-consolidated subsidiary in which GEORGIA has 50% ownership.
SEGCO is accounted for on the equity basis. See pages A-2 through
A-14 for SEGCO's financial statements consolidated for SOUTHERN.
(B) Includes $24,973,000 of investments in SEGCO.
A-32
<PAGE>
PIEDMONT
STATEMENT OF INCOME AND
EARNINGS RETAINED IN THE BUSINESS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
REVENUES:
Rent $838
Other (Interest) 976 $1,814
-----
EXPENSES:
Interest 582
Taxes 653
Depreciation 105
Miscellaneous 13 1,353
----- -------
NET INCOME 461
=======
EARNINGS RETAINED IN THE BUSINESS
AT DECEMBER 31, 1996 1,391
-------
EARNINGS RETAINED IN THE BUSINESS
AT DECEMBER 31, 1997 $1,852
======
A-33
<PAGE>
PIEDMONT
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $461
Deferred income taxes 120
Depreciation 106
Change in current liabilities 108
Other, net - $795
------
FINANCING ACTIVITIES:
Increase in advances from parent 45
Decrease in capital contributions (838) (793)
---- -----
NET CHANGE IN CASH $ 2
======
A-34
<PAGE>
PIEDMONT
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
ASSETS
INVESTMENTS:
Plant-in-service $19,130
Non-utility property 2,197 $21,327
---------
CURRENT ASSETS:
Cash 45
MISCELLANEOUS DEFERRED DEBITS 1
--------
TOTAL ASSETS $21,373
=======
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stock, $1 par (1,000,000 shares
authorized, 100,000 shares issued) $ 100
Other paid-in capital 6,317
Retained earnings 1,852 $ 8,269
-----
Long-term debt - Advances from parent company 12,644
------
Total capitalization 20,913
CURRENT LIABILITIES:
Federal and state income taxes accrued 619 619
DEFERRED CREDITS:
Accumulated deferred income taxes (159)
-------
TOTAL CAPITALIZATION AND LIABILITIES $21,373
=======
A-35
<PAGE>
GEORGIA CAPITAL
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
Interest Income $9,279
Less: Preferred Distributions 9,000
Other Expenses 47
------
NET INCOME 232
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 560
-------
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 792
======
GEORGIA CAPITAL
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $232
Change in current assets and current liabilities (232)
------
NET CHANGE IN CASH $ 0
======
A-36
<PAGE>
GEORGIA CAPITAL
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
ASSETS
------
INVESTMENTS $103,100
CURRENT ASSETS:
Interest receivable 792
---------
TOTAL ASSETS $103,892
========
CAPITALIZATION
--------------
CAPITALIZATION:
Miscellaneous paid-in capital $3,100
Retained earnings 792 $ 3,892
--------
Preferred securities 100,000
--------
Total Capitalization 103,892
--------
TOTAL CAPITALIZATION $103,892
========
A-37
<PAGE>
GEORGIA TRUST I
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
Interest Income $17,977
Less: Preferred Distributions 17,438
NET INCOME 539
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 134
-------
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 673
=======
GEORGIA TRUST I
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $ 539
Change in current assets and current liabilities (539)
-------
NET CHANGE IN CASH $ 0
=======
A-38
<PAGE>
GEORGIA TRUST I
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
ASSETS
------
INVESTMENTS $231,959
CURRENT ASSETS:
Interest receivable 673
--------
TOTAL ASSETS $232,632
========
CAPITALIZATION
--------------
CAPITALIZATION:
Miscellaneous paid-in capital $6,959
Retained earnings 673 $ 7,632
--------
Preferred securities 225,000
--------
TOTAL CAPITALIZATION $232,632
=========
A-39
<PAGE>
GEORGIA TRUST II
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
Interest Income $13,178
Less: Preferred Distributions 12,783
-------
NET INCOME 395
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 0
-------
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 395
=======
GEORGIA TRUST II
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $ 395
Change in current assets and current liabilities (395)
-------
-
INVESTING ACTIVITIES:
Junior subordinated notes issued to parent (180,412)
FINANCING ACTIVITIES:
Preferred securities 175,000
Advances from parent 5,412 180,412
-------- --------
NET CHANGE IN CASH $ 0
========
A-40
<PAGE>
GEORGIA TRUST II
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
ASSETS
-----
INVESTMENTS $180,412
CURRENT ASSETS:
Interest receivable 432
--------
TOTAL ASSETS $180,844
========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Miscellaneous paid-in capital $5,412
Retained earnings 395 $ 5,807
--------
Preferred securities 175,000
--------
TOTAL CAPITALIZATION 180,807
--------
CURRENT LIABILITIES:
Interest payable 37
--------
TOTAL CAPITALIZATION AND LIABILITIES $180,844
========
A-41
<PAGE>
GEORGIA TRUST III
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
Interest Income $8,400
Less: Preferred Distributions 8,148
------
NET INCOME 252
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1996 0
------
EARNINGS RETAINED IN THE BUSINESS AT DECEMBER 31, 1997 $ 252
======
GEORGIA TRUST III
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $ 252
Change in current assets and current liabilities (252)
---------
-
INVESTING ACTIVITIES:
Junior subordinated notes issued to parent 95,103)
FINANCING ACTIVITIES:
Preferred securities 189,250
Advances from parent 5,853 195,103
-------- --------
NET CHANGE IN CASH $ 0
========
A-42
<PAGE>
GEORGIA TRUST III
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, GEORGIA)
(Unaudited)
(in thousands)
ASSETS
------
INVESTMENTS $195,103
CURRENT ASSETS:
Interest receivable 293
--------
TOTAL ASSETS $195,396
========
CAPITALIZATION AND LIABILITIES
------------------------------
CAPITALIZATION:
Miscellaneous paid-in capital $5,853
Retained earnings 252 $ 6,105
--------
Preferred securities 189,250
--------
TOTAL CAPITALIZATION 195,355
--------
CURRENT LIABILITIES:
Interest payable 41
--------
TOTAL CAPITALIZATION AND LIABILITIES $195,396
========
A-43
<PAGE>
<TABLE>
<CAPTION>
GULF POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GULF GULF GULF
Consolidated Eliminations CORPORATE TRUST I
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TOTAL OPERATING REVENUES $ 625,856 $ - $625,856 $ -
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation --
Fuel 180,843 - 180,843 -
Purchased power from non-affiliates 11,938 - 11,938 -
Purchased power from affiliates 24,955 - 24,955 -
Other 126,266 - 126,266 -
Maintenance 47,988 - 47,988 -
Depreciation and amortization 57,874 - 57,874 -
Taxes other than income taxes 51,775 - 51,775 -
Federal and state income taxes 35,034 - 35,034 -
- -----------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 536,673 - 536,673 -
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 89,183 89,183
OTHER INCOME (EXPENSE):
Interest income 1,203 (2,891) 1,203 2,891
Other, net (992) - (992) -
Income taxes applicable to other income 1,584 - 1,584 -
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 90,978 (2,891) 90,978 2,891
- -----------------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES:
Interest on long-term debt 21,699 (2,891) 24,590 -
Other interest charges 2,076 - 2,076 -
Interest on notes payable 891 - 891 -
Amortization of debt discount, premium and expense, net 2,281 - 2,281 -
Distributions on preferred securities of subsidiary trust 2,804 - - 2,804
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest charges 29,751 (2,891) 29,838 2,804
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME 61,227 - 61,140 87
DIVIDENDS ON PREFERRED STOCK 3,617 - 3,617 -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $ 57,610 $ - $ 57,523 $ 87
===================================================================================================================================
A-44
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
- -----------------------------------------------------------------------------------------------------------------------------------
GULF GULF GULF
Consolidated Eliminations CORPORATE TRUST I
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C> <C>
Net Income $ 61,227 - $ 61,140 $ 87
Adjustments to reconcile Consolidated net income to net cash
provided by operating activities -
Depreciation and amortization 72,860 - 72,860 -
Deferred income taxes, net (7,047) - (7,047) -
Accumulated provision for property damage 2,572 - 2,572 -
Deferred costs of 1995 coal contract renegotiation 1,246 - 1,246 -
Other, net (1,413) - (1,413) -
Change in current assets and liabilities -
Receivables, net (1,111) 87 (1,111) (87)
Inventories 10,674 - 10,674 -
Payables 1,398 (87) 1,485 -
Taxes accrued 6,123 - 6,123 -
Current cost of 1995 coal contract renegotiation 14,778 - 14,778 -
Other 4,240 - 4,240 -
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 165,547 - 165,547 -
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Gross property additions (54,289) - (54,289) -
Other 509 42,474 (728) (41,237)
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (53,780) 42,474 (55,017) (41,237)
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS
Proceeds--
Common securities - (1,237) - 1,237
Preferred securities 40,000 - - 40,000
Pollution control bonds 40,930 - 40,930 -
Other long-term debt 20,000 (41,237) 61,237 -
Retirements--
Preferred stock (75,911) - (75,911) -
First mortgage bonds (25,000) - (25,000) -
Pollution control bonds (40,930) - (40,930) -
Other long-term debt (15,972) - (15,972) -
Notes payable, net 22,000 - 22,000 -
Payment of common stock dividends (64,600) - (64,600) -
Payment of preferred stock dividends (5,370) - (5,370) -
Miscellaneous (3,014) - (3,014) -
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR FINANCINGS (107,867) (42,474) (106,630) 41,237
- ------------------------------------------------------------------------------------------------------------------------------------
NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS 3,900 - 3,900 -
CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 807 - 807 -
- ------------------------------------------------------------------------------------------------------------------------------------
CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 4,707 $ - $ 4,707 $ -
===================================================================================================================================
A-45
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF POWER COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GULF GULF GULF
Consolidated Eliminations CORPORATE TRUST I
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITY PLANT $1,055,507 $ - $1,055,507 $ -
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS 622 (42,474) 1,859 41,237
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 4,707 - 4,707 -
Receivables -
Customer accounts receivable 63,691 - 63,691 -
Other accounts and notes receivable 2,744 (87) 2,744 87
Affiliated companies 7,329 - 7,329 -
Accumulated provision for uncollectible accts (796) - (796) -
Fossil fuel stock, at average cost 19,296 - 19,296 -
Materials and supplies, at average cost 28,634 - 28,634 -
Current portion of accumulated deferred income taxes 4,456 - 4,456 -
Regulatory clauses under recovery 1,675 - 1,675 -
Prepayments 2,171 - 2,171 -
Vacation pay deferred 4,057 - 4,057 -
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL 137,964 (87) 137,964 87
- -----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES
Debt expense and loss, being amortized 22,941 - 22,941 -
Deferred charges related to income taxes 26,586 - 26,586 -
Prepaid pension costs 10,385 - 10,385 -
Deferred storm charges 703 - 703 -
Miscellaneous 10,904 - 10,904 -
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL 71,519 - 71,519 -
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $1,265,612 $(42,561) $1,266,849 $ 41,324
===================================================================================================================================
A-46
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF POWER COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
GULF GULF GULF
Consolidated Eliminations CORPORATE TRUST I
- -----------------------------------------------------------------------------------------------------------------
CAPITALIZATION
<S> <C> <C> <C> <C>
Common Stock Equity $428,718 $ (1,237) $ 428,631 $ 1,324
Preferred Stock 13,691 - 13,691 -
Company obligated mandatorily
redeemable preferred securities 40,000 - - 40,000
Long-term debt 296,993 (41,237) 338,230 -
- -----------------------------------------------------------------------------------------------------------------
TOTAL 779,402 (42,474) 780,552 41,324
- -----------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Long-term debt due within one year 53,327 - 53,327 -
Notes payable 47,000 - 47,000 -
Accounts payable
Affiliated companies 14,334 - 14,334 -
Other 20,205 - 20,205 -
Customer deposits 13,778 - 13,778 -
Taxes accrued 8,258 - 8,258 -
Interest accrued 7,227 (87) 7,314 -
Regulatory clauses over recovery 5,062 - 5,062 -
Vacation pay accrued 4,057 - 4,057 -
Dividends declared 10,210 - 10,210 -
Miscellaneous 8,739 - 8,739 -
- -----------------------------------------------------------------------------------------------------------------
TOTAL 192,197 (87) 192,284 -
- -----------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 166,302 - 166,302 -
Accumulated deferred investment tax credits 31,552 - 31,552 -
Deferred credits related to income taxes 56,935 - 56,935 -
Accumulated provision for postretirement benefits 20,491 - 20,491 -
Miscellaneous 18,733 - 18,733 -
- -----------------------------------------------------------------------------------------------------------------
TOTAL 294,013 - 294,013 -
- -----------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $1,265,612 $(42,561) $1,266,849 $41,324
=================================================================================================================
A-47
</TABLE>
<PAGE>
GULF TRUST I
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GULF)
(Unaudited)
(in thousands)
Interest Income $2,891
Less: Preferred Distributions 2,804
------
NET INCOME $ 87
======
GULF TRUST I
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, GULF)
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $ 87
Change in current assets and current liabilities (87)
--------
Net cash provided from operating activities -
--------
INVESTING ACTIVITIES:
Other (41,237)
FINANCING ACTIVITIES:
Proceeds from common securities 1,237
Proceeds from preferred securities 40,000
-------
Net cash provided from financings 41,237
-------
NET CHANGE IN CASH $ -
=======
A-48
<PAGE>
GULF TRUST I
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, GULF)
(Unaudited)
(in thousands)
ASSETS
------
INVESTMENTS $41,237
CURRENT ASSETS:
Receivables 87
-------
TOTAL ASSETS $41,324
=======
CAPITALIZATION
--------------
CAPITALIZATION:
Common stock equity $ 1,324
Preferred securities 40,000
-------
TOTAL CAPITALIZATION $41,324
=======
A-49
<PAGE>
<TABLE>
<CAPTION>
MISSISSIPPI POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
MISSISSIPPI MISSISSIPPI MISSISSIPPI
Consolidated Eliminations CORPORATE TRUST I
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TOTAL OPERATING REVENUES $543,588 $ - $ 543,588 $ -
- -------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Operation --
Fuel 142,059 - 142,059 -
Purchased and interchanged, net 14,536 - 14,536 -
Purchase power from affiliates 37,794 - 37,794 -
Other 102,365 - 102,365 -
Maintenance 47,302 - 47,302 -
Depreciation and amortization 45,574 - 45,574 -
Taxes other than income taxes 44,034 - 44,034 -
Federal and state income taxes 31,968 - 31,968 -
- -------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 465,632 - 465,632 -
- -------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 77,956 - 77,956 -
OTHER INCOME (EXPENSE):
Income from subsidiary - - - -
Interest income 857 (2,369) 857 2,369
Other, net 2,368 - 2,368 -
Income taxes applicable to other income 588 - 588 -
- -------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 81,769 (2,369) 81,769 2,369
- -------------------------------------------------------------------------------------------------------------------------------
INTEREST CHARGES:
Interest on long-term debt 19,856 (2,369) 22,225 -
Allowance for debt funds used during construction 96 - 96 -
Interest on interim obligations 1,577 - 1,577 -
Amortization of debt discount, premium and expense, net 574 - 574 -
Other interest charges 2,369 - - 2,369
- -------------------------------------------------------------------------------------------------------------------------------
Net interest charges 24,472 (2,369) 24,472 2,369
- -------------------------------------------------------------------------------------------------------------------------------
NET INCOME 57,297 - 57,297 -
DIVIDENDS ON PREFERRED STOCK 3,287 - 3,287 -
- -------------------------------------------------------------------------------------------------------------------------------
NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK $54,010 $ - $ 54,010 $ -
===============================================================================================================================
A-50
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MISSISSIPPI POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
- -----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI MISSISSIPPI MISSISSIPPI
Consolidated Eliminations CORPORATE TRUST I
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Net Income $ 57,297 $ - $ 57,297 $ -
Adjustments to reconcile consolidated net income to net cash
provided by operating activities -
Depreciation and amortization 49,661 - 49,661 -
Deferred income taxes, net (1,809) - (1,809) -
Other, net 3,206 - 3,206 -
Change in current assets and liabilities -
Receivables, net (8,583) - (8,583) -
Inventories 3,148 - 3,148 -
Payables 8,357 - 8,357 -
Taxes accrued 2,515 - 2,515 -
Other 1,465 - 1,465 -
- ------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 115,257 - 115,257 -
- ------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Gross property additions (55,375) - (55,375) -
Other (489) 37,164 (1,571) (36,082)
- ------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (55,864) 37,164 (56,946) (36,082)
- ------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES AND CAPITAL CONTRIBUTIONS
Proceeds--
Preferred securities 35,000 - - 35,000
Retirements-- - (36,082) 36,082 -
Preferred stock (42,518) - (42,518) -
Pollution control bonds (10) - (10) -
Payment of common stock dividends (49,400) - (49,400) -
Payment of preferred stock dividends (3,287) - (3,287) -
Miscellaneous (1,804) (1,082) (1,804) 1,082
- ------------------------------------------------------------------------------------------------------------------------------
NET CASH USED FOR FINANCINGS (62,019) (37,164) (60,937) 36,082
- ------------------------------------------------------------------------------------------------------------------------------
NET INC (DEC) IN CASH AND TEMPORARY CASH INVESTMENTS (2,626) - (2,626) -
CASH AND TEMPORARY CASH INVESTMENTS, BEG OF PERIOD 7,058 - 7,058 -
- ------------------------------------------------------------------------------------------------------------------------------
CASH AND TEMPORARY CASH INVESTMENTS, END OF PERIOD $ 4,432 $ - $4,432 $ -
==============================================================================================================================
A-51
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MISSISSIPPI POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
MISSISSIPPI MISSISSIPPI MISSISSIPPI
Consolidated Eliminations CORPORATE TRUST I
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITY PLANT $1,000,387 $ - $ 1,000,387 $ -
- --------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY AND INVESTMENTS (35,432) (37,164) 1,732 36,082
- --------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 4,432 - 4,432 -
Receivables -
Customer accounts receivable 32,220 - 32,220 -
Regulatory clauses under recovery 7,619 - 7,619 -
Other accounts and notes receivable 8,666 - 8,666 -
Affiliated companies 7,398 - 7,398 -
Accumulated provision for uncollectible accts (698) - (698) -
Fossil fuel stock, at average cost 10,651 - 10,651 -
Materials and supplies, at average cost 19,452 - 19,452 -
Current portion of accumulated deferred income taxes 8,379 - 8,379 -
Prepayments 1,791 - 1,791 -
Vacation pay deferred 5,030 - 5,030 -
- --------------------------------------------------------------------------------------------------------------------------
TOTAL 104,940 - 104,940 -
- --------------------------------------------------------------------------------------------------------------------------
DEFERRED CHARGES
Debt expense and loss, being amortized 12,234 - 12,234 -
Deferred charges related to income taxes 21,906 - 21,906 -
Long-term notes receivable 2,837 - 2,837 -
Workforce Reduction Plan 18,236 - 18,236 -
Miscellaneous 5,639 5,639 -
- --------------------------------------------------------------------------------------------------------------------------
TOTAL 60,852 - 60,852 -
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $1,130,747 $(37,164) $1,167,911 $36,082
==========================================================================================================================
A-52
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MISSISSIPPI POWER COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(in thousands)
MISSISSIPPI MISSISSIPPI MISSISSIPPI
Consolidated Eliminations CORPORATE TRUST I
- --------------------------------------------------------------------------------------------------------------------
CAPITALIZATION
<S> <C> <C> <C> <C>
Common Stock Equity $ 387,824 $ (1,082) $ 387,824 $ 1,082
Preferred Stock 31,896 - 31,896 -
Company obligated mandatorily
redeemable preferred securities 35,000 - - 35,000
Long-term debt 291,665 (36,082) 327,747
- -----------------------------------------------------------------------------------------------------------------
TOTAL 746,385 (37,164) 747,467 36,082
- -----------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Long-term debt due within one year 35,020 - 35,020 -
Accounts payable 58,089 - 58,089 -
Customer deposits 3,225 - 3,225 -
Taxes accrued 34,960 - 34,960 -
Interest accrued 4,098 - 4,098 -
Vacation pay accrued 5,017 - 5,017 -
Miscellaneous 7,780 - 7,780 -
- -----------------------------------------------------------------------------------------------------------------
TOTAL 148,189 - 148,189 -
- -----------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 134,645 - 134,645 -
Accumulated deferred investment tax credits 27,121 - 27,121 -
Deferred credits related to income taxes 38,203 - 38,203 -
Miscellaneous 72,286 - 72,286 -
- -----------------------------------------------------------------------------------------------------------------
TOTAL 272,255 - 272,255 -
- -----------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $1,166,829 $(37,164) $1,167,911 $ 36,082
=================================================================================================================
A-53
</TABLE>
<PAGE>
MISSISSIPPI TRUST I
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, MISSISSIPPI)
(Unaudited)
(in thousands)
Interest Income $2,369
Less: Preferred Distributions 2,369
------
NET INCOME $ -
======
MISSISSIPPI TRUST I
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
(Consolidated in Parent, MISSISSIPPI)
(Unaudited)
(in thousands)
INVESTING ACTIVITIES:
Junior subordinated notes issued to parent $(36,082)
FINANCING ACTIVITIES:
Proceeds from preferred securities 35,000
Advances from parent 1,082
-------
Net cash used for financings 36,082
-------
NET CHANGE IN CASH $ 0
=======
A-54
<PAGE>
MISSISSIPPI TRUST I
BALANCE SHEET AT DECEMBER 31, 1997
(Consolidated in Parent, MISSISSIPPI)
(Unaudited)
(in thousands)
ASSETS
------
INVESTMENTS $36,082
-------
TOTAL ASSETS $36,082
=======
CAPITALIZATION
--------------
CAPITALIZATION:
Common stock equity $ 1,082
Preferred securities 35,000
-------
TOTAL CAPITALIZATION $36,082
=======
A-55
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Exhibits (including reference to previous filings):
Exhibit
Number Description of Exhibit
------ ----------------------
A-1 Annual Report of SOUTHERN on Form 10-K for the year ended December 31, 1997. (File No. 1-3526.)
A-2 Annual Report of ALABAMA on Form 10-K for the year ended December 31, 1997. (File No. 1-3164.)
A-3 Annual Report of GEORGIA on Form 10-K for the year ended December 31, 1997. (File No. 1-6468.)
A-4 Annual Report of GULF on Form 10-K for the year ended December 31, 1997. (File No. 0-2429.)
A-5 Annual Report of MISSISSIPPI on Form 10-K for the year ended December 31, 1997. (File No. 0-6849.)
A-6 Annual Report of SAVANNAH on Form 10-K for the year ended December 31, 1997. (File No. 1-5072.)
A-7 Annual Report on Form U-13-60 for SEI for the year ended December 31, 1997.
B-1 Composite Certificate of Incorporation of SOUTHERN, reflecting all amendments thereto through
January 5, 1994. (Designated in Registration No. 33-3546, as Exhibit 4(a), in Certificate of
Notification, File No. 70-7341, as Exhibit A and in Certificate of Notification, File No.
70-8181, as Exhibit A.)
B-2 By-laws of SOUTHERN as amended effective October 21, 1991, and as presently in effect.
(Designated in Form U-1, File No. 70-8181, as Exhibit A-2.)
B-3 Charter of ALABAMA and amendments thereto through December 15, 1997. (Designated in
Registration No. 2-59634 as Exhibit 2(b), in Registration No. 2-60209 as Exhibit 2(c), in
Registration No. 2-60484 as Exhibit 2(b), in Registration No. 2-70838 as Exhibit 4(a)-2, in
Registration No. 2-85987 as Exhibit 4(a)-2, in Registration No. 33-25539 as Exhibit 4(a)-2,
in Registration No. 33-43917 as Exhibit 4(a)-2, in Form 8-K dated February 5, 1992, File No.
1-3164, as Exhibit 4(b)-3, in Form 8-K dated July 8, 1992, File No. 1-3164, as Exhibit
4(b)-3, in Form 8-K dated October 27, 1993, File No. 1-3164, as Exhibits 4(a) and 4(b) , in
Form 8-K dated November 16, 1993, File No. 1-3164, as Exhibit 4(a), in Certificate of
Notification, File No. 70-8191, as Exhibit A and in Form 10-K for the year ended December 31,
1997, File No. 1-3164, as Exhibit 3(b)2.)
B-4 By-laws of ALABAMA as amended effective July 23, 1993, and as presently in effect.
(Designated in Form U-1, File No. 70-8191, as Exhibit A-2.)
</TABLE>
A-56
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------ ----------------------
B-5 Charter of GEORGIA and amendments thereto through January 26, 1998. (Designated in
Registration No. 2-63392 as Exhibit 2(a)-2, in Registration No. 2-78913 as Exhibits 4(a)-(2)
and 4(a)-(3), in Registration No. 2-93039 as Exhibit 4(a)-(2), in Registration No. 2-96810 as
Exhibit 4(a)(2), in Registration No. 33-141 as Exhibit 4(a)(2), in Registration No. 33-1359
as Exhibit 4(a)(2), in Registration No. 33-5405 as Exhibit 4(b)(2), in Registration No.
33-14367 as Exhibits 4(b)-2 and 4(b)-3, in Registration No. 33-22504 as Exhibits 4(b)-(2),
4(b)-(3) and 4(b)-(4), in GEORGIA's Form 10-K for the year ended December 31, 1991, File No.
1-6468, as Exhibits 4(a)(2) and 4(a)(3), in Registration No. 33-48895, as Exhibits 4(b)-(2)
and 4(b)-(3), in Form 8-K dated December 10, 1992, File No. 1-6468, as Exhibit 4(b), in Form
8-K dated June 17, 1993, File No. 1-6468, as Exhibit 4(b), in Form 8-K dated October 20,
1993, File No. 1-6468, as Exhibit 4(b) and in Form 10-K for the year ended December 31, 1997,
File No. 1-6468, as Exhibit 3(c)2.)
B-6 By-laws of GEORGIA as amended effective July 18, 1990, and as presently in effect. (Designated in
GEORGIA's Form 10-K for the year ended December 31, 1990, File No. 1-6468, as Exhibit 3.)
B-7 Restated Articles of Incorporation of GULF and amendments thereto through January 28, 1998.
(Designated in Registration No. 33-43739 as Exhibit 4(b)-1), in Form 8-K dated January 15,
1992, File No. 0-2429, as Exhibit 1(b), in Form 8-K dated August 18, 1992, File No. 0-2429,
as Exhibit 4(b)-2, in Form 8-K dated September 22, 1993, File No. 0-2429, as Exhibit 4, in
Form 8-K dated November 3, 1993, File No. 0-2429, as Exhibit 4 and in Form 10-K for the year
ended December 31, 1997, File No. 0-2429, as Exhibit 3(d)2.)
B-8 By-laws of GULF as amended effective July 26, 1996, and as presently in effect. (Designated
in Form U-1, File No. 70-8949, as Exhibit A-2(c).)
B-9 Articles of incorporation of MISSISSIPPI, articles of merger of Mississippi Power Company (a
Maine corporation) into MISSISSIPPI and articles of amendment to the articles of
incorporation of MISSISSIPPI through December 31, 1997. (Designated in Registration No.
2-71540 as Exhibit 4(a)-1, in Form U5S for 1987, File No. 30-222-2, as Exhibit B-10, in
Registration No. 33-49320 as Exhibit 4(b)-1, in Form 8-K dated August 5, 1992, File No.
0-6849, as Exhibits 4(b)-2 and 4(b)-3 in Form 8-K dated August 4, 1993, File No. 0-6849, as
Exhibit 4(b)-3, in Form 8-K dated August 18, 1993, File No. 0-6849, as Exhibit 4(b)-3 and in
Form 10-K for the year ended December 31, 1997, File No. 0-6849, as Exhibit 3(e)2.)
B-10 By-laws of MISSISSIPPI as amended effective April 2, 1996, and as presently in effect.
(Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-10.)
</TABLE>
A-57
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------ ----------------------
B-11 Charter of SAVANNAH and amendments thereto through November 10, 1993. (Designated in
Registration No. 33-25183 as Exhibit 4(b)-(1), in Registration No. 33-45757 as Exhibit
4(b)-(2) and in Form 8-K dated November 9, 1993, File No. 1-5072 as Exhibit 4(b).)
B-12 By-laws of SAVANNAH as amended effective February 16, 1994, and as presently in effect.
(Designated in SAVANNAH's Form 10-K for the year ended December 31, 1993, File No. 1-5072, as Exhibit
3(f)2.)
B-13 SEGCO Certificate of Incorporation as amended to date, last amended November 29, 1966.
(Designated in Forms U-1, File No. 70-3480, as Exhibit A-5, File No. 70-3630, as Exhibit A-6,
File Nos. 70-3738 and 70-3842, as Exhibit A-8(b); Registration No. 2-18084 as Exhibit 3(a)-2
and First Certificate of Notification, File No. 70-3945, as Exhibit A.)
B-14 SEGCO By-laws as amended to date, last amended July 10, 1986. (Designated in Form U5S for the
year ended December 31, 1990, as Exhibit B-14.)
B-15 SCS Certificate of Incorporation as amended. (Designated in Form U-1, File No. 70-3573, as
Exhibit A-1; in Form U-1, File No. 70-3833, as Exhibit A-2; Form U5S for 1962, File No.
30-222-2, as Exhibit A-17; and Form U5S for 1985, File No. 30-222-2, as Exhibit B-13(b).)
B-16 SCS By-laws as amended to date, last amended February 20, 1995. (Designated in Form U5S for
1994, File No. 30-222-2, as Exhibit B-16)
B-17 Alabama Property Company Certificate of Incorporation. (Designated in Form U-5B, File No.
30-115, as Exhibit B-29.)
B-18 Alabama Property Company By-laws. (Designated in Form U-5B, File No. 30-115, as Exhibit
B-30.)
B-19 Piedmont-Forrest Corporation Articles of Incorporation and amendments thereto through August
31, 1987. (Designated in Form U-1, File No. 70-6135, as Exhibit A-1 and in Form U5S for
1987, File No. 30-222-2, as Exhibit B-21.)
B-20 Piedmont-Forrest Corporation By-laws as presently in effect. (Designated in Form U-1, File
No. 70-6135, as Exhibit A-2.)
B-21 Articles of Incorporation of SEI and amendments thereto. (Designated in Form U5S for 1982,
File No. 30-222-2, as Exhibit A-19, in Form U5S for 1987, File No. 30-222-2, as Exhibit B-24
and in Form U5S for 1996, File No. 30-222-2, as Exhibit B-22.)
</TABLE>
A-58
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------ ----------------------
B-22 By-laws of SEI as amended to date, last amended February 20, 1997. (Designated in Form U5S
for 1996, File No. 30-222-2, as Exhibit B-23.)
B-23 Articles of Incorporation of MESH and amendments thereto. (Designated in Form U5S for 1995,
File No. 30-222-2, as Exhibit B-23.)
B-24 By-laws of MESH. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-24.)
B-25 Articles of Incorporation of Energy Solutions and amendments thereto through March 25, 1993.
(Designated in Form U5S for 1985, File No. 30-222-2, as Exhibit B-23 , in Form U5S for 1987,
File No. 30-222-2, as Exhibit B-27 and in Form U5S for 1993, File No. 30-222-2, as Exhibit
B-25.)
B-26 By-laws of Energy Solutions. (Designated in Form U5S for 1985, File No. 30-222-2, as Exhibit
B-24.)
B-27 By-laws of SOUTHERN NUCLEAR as amended to date, last amended May 21, 1991. (Designated in
Form U5S for 1991, File No. 30-222-2, as Exhibit B-27.)
B-28 Amendments to By-laws of Southern Nuclear through December 13, 1993.
B-29 Articles of Incorporation of SOUTHERN NUCLEAR and amendment thereto through June 14, 1991.
(Designated in Form U5S for 1991, File No. 30-222-2, as Exhibit B-28.)
B-30 Certificate of Incorporation of SERC. (Designated in Form U5S for 1993, File No. 30-222-2,
as Exhibit B-30.)
B-31 By-laws of SERC. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-31.)
B-32 Certificate of Incorporation of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994,
File No. 30-222-2, as Exhibit B-31)
B-33 By-laws of SOUTHERN COMMUNICATIONS. (Designated in Form U5S for 1994, File No. 30-222-2, as
Exhibit B-32)
B-34 Certificate of Incorporation of SEIH. (Designated in Form U5S for 1993, File No. 30-222-2,
as Exhibit B-32.)
B-35 By-laws of SEIH. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-33.)
B-36 Certificate of Incorporation of SEIH-III. (Designated in Form U5S for 1993, File No.
30-222-2, as Exhibit B-34.)
</TABLE>
A-59
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------- ----------------------
B-37 By-laws of SEIH-III. (Designated in Form U5S for 1993, File No. 30-222-2, as Exhibit B-35.)
B-38 Certificate of Incorporation of Southern Electric International - Europe, Inc. and amendments
thereto. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-37.)
B-39 By-laws of Southern Electric International - Europe, Inc. (Designated in Form U5S for 1995,
File No. 30-222-2, as Exhibit B-38.)
B-40 Certificate of Incorporation of Southern Energy North America, Inc. (Designated in Form U5S
for 1993, File No. 30-222-2, as Exhibit B-38.)
B-41 Certificate of Amendment of Certificate of Incorporation of Southern Electric Wholesale
Generators, Inc. changing name to Southern Energy North America Inc. (Designated in Form U5S
for 1996, File No. 30-222-2, as Exhibit B-41.)
B-42 By-laws of Southern Energy North America, Inc. (Designated in Form U5S for 1993, File No.
30-222-2, as Exhibit B-39.)
B-43 Certificate of Incorporation of SEIH-VIII. (Designated in Form U5S for 1994, File No.
30-222-2, as Exhibit B-41)
B-44 By-laws of SEIH-VIII. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-42)
B-45 Certificate of Incorporation of Southern Electric International Trinidad, Inc. and amendments
thereto. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit B-43.)
B-46 By-laws of Southern Electric International Trinidad, Inc. (Designated in Form U5S for 1995,
File No. 30-222-2, as Exhibit B-44.)
B-47 Certificate of Incorporation of SEIH-X. (Designated in Form U5S for 1994, File No. 30-222-2,
as Exhibit B-45)
B-48 By-laws of SEIH-X. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-46)
B-49 Certificate of Incorporation of SEIH-XI. (Designated in Form U5S for 1994, File No.
30-222-2, as Exhibit B-47)
B-50 By-laws of SEIH-XI. (Designated in Form U5S for 1994, File No. 30-222-2, as Exhibit B-48)
</TABLE>
A-60
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------- -----------------------
B-51 Articles of Organization of MESCO and amendments thereto. (Designated in Form U5S for 1995,
File No. 30-222-2, as Exhibit B-49.)
B-52 Operating Agreement of MESCO. (Designated in Form U5S for 1995, File No. 30-222-2, as Exhibit
B-50.)
B-53 Certificate of Incorporation of Southern Electric, Inc. (Designated in Form U5S for 1994,
File No. 30-222-2, as Exhibit B-51)
B-54 By-laws of Southern Electric, Inc. (Designated in Form U5S for 1994, File No. 30-222-2, as
Exhibit B-52)
B-55 Certificate of Incorporation of GEORGIA POWER HOLDINGS. (Designated in Form U5S for 1994,
File No. 30-222-2, as Exhibit B-53)
B-56 By-laws of GEORGIA POWER HOLDINGS. (Designated in Form U5S for 1994, File No. 30-222-2, as
Exhibit B-54)
B-57 Certificate of Limited Partnership of GEORGIA CAPITAL. (Designated in Form U5S for 1994,
File No. 30-222-2, as Exhibit B-55)
B-58 Amended and Restated Agreement of Limited Partnership of GEORGIA CAPITAL. (Designated in
Form U5S for 1994, File No. 30-222-2, as Exhibit B-56)
B-59 Action of General Partner of GEORGIA CAPITAL dated December 9, 1994. (Designated in Form U5S
for 1994, File No. 30-222-2, as Exhibit B-57)
B-60 Certificate of Incorporation of Southern Energy International, Inc. (Designated in Form U5S
for 1995, File No. 30-222-2, as Exhibit B-58.)
B-61 Certificate of Amendment of Certificate of Incorporation of SEI Newco 1 changing name to
Southern Energy International, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as
Exhibit B-61.)
B-62 By-laws of Southern Energy International, Inc. (Designated in Form U5S for 1996, File No.
30-222-2, as Exhibit B-62.)
B-63 Certificate of Incorporation of Southern Energy - Newco 2, Inc. (Designated in Form U5S for
1995, File No. 30-222-2, as Exhibit B-60.)
B-64 Certificates of Amendment of Certificate of Incorporation of SEI Newco 2 changing name to
Southern Energy - Newco 2, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit
B-64.)
</TABLE>
A-61
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------- ----------------------
B-65 By-laws of Southern Energy - Newco 2, Inc. (Designated in Form U5S for 1996, File No.
30-222-2, as Exhibit B-65.)
B-66 By-Laws of Southern Energy Finance Company, Inc. (Designated in Form U5S for 1996, File No.
30-222-2, as Exhibit B-66.)
B-67 Certificate of Incorporation of EPZ Lease, Inc. (Designated in Form U5S for 1996, File No.
30-222-2, as Exhibit B-67.)
B-68 By-laws of EPZ Lease, Inc. (Designated in Form U5S for 1996, File No. 30-222-2, as Exhibit
B-68.)
B-69 Certificate of Formation of EPZ Lease, L.L.C. (Designated in Form U5S for 1996, File No.
30-222-2, as Exhibit B-69.)
B-70 Certificate of Formation of EPZ Lease Holding A, L.L.C. (Designated in Form U5S for 1996,
File No. 30-222-2, as Exhibit B-70.)
B-71 Articles of Organization of EPZ Lease Holding A, L.L.C. (Designated in Form U5S for 1996,
File No. 30-222-2, as Exhibit B-71.)
B-72 Certificate of Formation of EPZ Lease Holding B, L.L.C. (Designated in Form U5S for 1996,
File No. 30-222-2, as Exhibit B-72.)
B-73 Articles of Organization of EPZ Lease Holding B, L.L.C. (Designated in Form U5S for 1996,
File No. 30-222-2, as Exhibit B-73.)
B-74 Certificate of Formation of EPZ Lease Holding C, L.L.C. (Designated in Form U5S for 1996,
File No. 30-222-2, as Exhibit B-74.)
B-75 Articles of Organization of EPZ Lease Holding C, L.L.C. (Designated in Form U5S for 1996,
File No. 30-222-2, as Exhibit B-75.)
C-1 Subordinated Note Indenture dated as of February 1, 1997, between SOUTHERN, Southern Company
Capital Funding, Inc. and Bankers Trust Company, as Trustee, and indentures supplemental
thereto dated as of February 4, 1997. (Designated in Registration Nos. 333-28349 as Exhibits
4.1 and 4.2 and 333-28355 as Exhibit 4.2.)
C-2 Subordinated Note Indenture dated as of June 1, 1997, between SOUTHERN, Southern Company Capital
Funding, Inc. and Bankers Trust Company, as Trustee, and indenture supplemental thereto dated
as of June 6, 1997. (Designated in Form 10-K for the year ended December 31, 1997, File No.
1-3526, as Exhibit 4(a)2.)
</TABLE>
A-62
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------- ----------------------
C-3 Indenture dated as of January 1, 1942, between ALABAMA and The Chase Manhattan Bank (formerly
Chemical Bank), as Trustee, and indentures supplemental thereto through that dated as of
December 1, 1994. (Designated in Registration Nos. 2-59843 as Exhibit 2(a)-2, 2-60484 as
Exhibits 2(a)-3 and 2(a)-4, 2-60716 as Exhibit 2(c), 2-67574 as Exhibit 2(c), 2-68687 as
Exhibit 2(c), 2-69599 as Exhibit 4(a)-2, 2-71364 as Exhibit 4(a)-2, 2-73727 as Exhibit
4(a)-2, 33-5079 as Exhibit 4(a)-2, 33-17083 as Exhibit 4(a)-2, 33-22090 as Exhibit 4(a)-2, in
ALABAMA's Form 10-K for the year ended December 31, 1990, File No. 1-3164, as Exhibit 4(c),
in Registration Nos. 33-43917 as Exhibit 4(a)-2, 33-45492 as Exhibit 4(a)-2, 33-48885 as
Exhibit 4(a)-2, 33-48917 as Exhibit 4(a)-2, in Form 8-K dated January 20, 1993, File No.
1-3436, as Exhibit 4(a)-3, in Form 8-K dated February 17, 1993, File No. 1-3436, as Exhibit
4(a)-3, in Form 8-K dated March 10, 1993, File No. 1-3436, as Exhibit 4(a)-3, in Certificate
of Notification, File No. 70-8069, as Exhibits A and B, in Form 8-K dated June 24, 1993, File
No. 1-3436, as Exhibit 4, in Certificate of Notification, File No. 70-8069, as Exhibit A, in
Form 8-K dated November 16, 1993, File No. 1-3436, as Exhibit 4(b), in Certificate of
Notification, File No. 70-8069, as Exhibits A and B, in Certificate of Notification, File No.
70-8069, as Exhibit A, in Certificate of Notification, File No. 70-8069, as Exhibit A and in
Form 8-K dated November 30, 1994, File No. 1-3436, as Exhibit 4.)
C-4 Subordinated Note Indenture dated as of January 1, 1996, between ALABAMA and The Chase Manhattan
Bank (formerly Chemical Bank), as Trustee, and indenture supplemental thereto dated as of
January 1, 1996. (Designated in Certificate of Notification, File No. 70-8461, as Exhibits E and
F.)
C-5 Subordinated Note Indenture dated as of January 1, 1997, between ALABAMA and The Chase Manhattan
Bank, as Trustee, and indenture supplemental thereto dated as of January 1, 1997. (Designated
in Form 8-K dated January 9, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2.)
C-6 Senior Note Indenture dated as of December 1, 1997, between ALABAMA and The Chase Manhattan
Bank, as Trustee, and indentures supplemental thereto through that dated February 26 , 1998.
(Designated in Form 8-K dated December 4, 1997, File No. 1-3164, as Exhibits 4.1 and 4.2 and in
Form 8-K dated February 20, 1998, File No. 1-3164, as Exhibit 4.2.)
</TABLE>
A-63
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------- ----------------------
C-7 Indenture dated as of March 1, 1941, between GEORGIA and The Chase Manhattan Bank (formerly
Chemical Bank), as Trustee, and indentures supplemental thereto dated as of March 1, 1941,
March 3, 1941 (3 indentures), March 6, 1941 (139 indentures), March 1, 1946 (88 indentures)
and December 1, 1947, through October 15, 1995. (Designated in Registration Nos. 2-4663 as
Exhibits B-3 and B-3(a), 2-7299 as Exhibit 7(a)-2, 2-61116 as Exhibit 2(a)-3 and 2(a)-4,
2-62488 as Exhibit 2(a)-3, 2-63393 as Exhibit 2(a)-4, 2-63705 as Exhibit 2(a)-3, 2-68973 as
Exhibit 2(a)-3, 2-70679 as Exhibit 4(a)-(2), 2-72324 as Exhibit 4(a)-2, 2-73987 as Exhibit
4(a)-(2), 2-77941 as Exhibits 4(a)-(2) and 4(a)-(3), 2-79336 as Exhibit 4(a)-(2), 2-81303 as
Exhibit 4(a)-(2), 2-90105 as Exhibit 4(a)-(2), 33-5405 as Exhibit 4(a)-(2), 33-14367 as
Exhibits 4(a)-(2) and 4(a)-(3), 33-22504 as Exhibits 4(a)-(2), 4(a)-(3) and 4(a)-(4),
33-32420 as Exhibit 4(a)-(2), 33-35683 as Exhibit 4(a)-(2), in GEORGIA's Form 10-K for the
year ended December 31, 1990, File No. 1-6468, as Exhibit 4(a)(3), in Form 10-K for the year
ended December 31, 1991, File No. 1-6468, as Exhibit 4(a)(5), in Registration No. 33-48895 as
Exhibit 4(a)-(2), in Form 8-K dated August 26, 1992, File No. 1-6468, as Exhibit 4(a)-(3), in
Form 8-K dated September 9, 1992, File No. 1-6468, as Exhibits 4(a)-(3) and 4(a)-(4), in Form
8-K dated September 23, 1992, File No. 1-6468, as Exhibit 4(a)-(3), in Form 8-A dated October
12, 1992, as Exhibit 2(b), in Form 8-K dated January 27, 1993, File No. 1-6468, as Exhibit
4(a)-(3), in Registration No. 33-49661 as Exhibit 4(a)-(2), in Form 8-K dated July 26, 1993,
File No. 1-6468, as Exhibit 4, in Certificate of Notification, File No. 70-7832, as Exhibit
M, in Certificate of Notification, File No. 70-7832, as Exhibit C, in Certificate of
Notification, File No. 70-7832, as Exhibits K and L, in Certificate of Notification, File No.
70-8443, as Exhibit C, in Certificate of Notification, File No. 70-8443, as Exhibit C, in
Certificate of Notification, File No. 70-8443, as Exhibit E, in Certificate of Notification,
File No. 70-8443, as Exhibit E, in Certificate of Notification, File No. 70-8443, as Exhibit
E, in GEORGIA's Form 10-K for the year ended December 31, 1994, File No. 1-6468, as Exhibits
4(c)2 and 4(c)3, in Certificate of Notification, File No. 70-8443, as Exhibit C, in
Certificate of Notification, File No. 70-8443, as Exhibit C, in Form 8-K dated May 17, 1995,
File No. 1-6468, as Exhibit 4 and in GEORGIA's Form 10-K for the year ended December 31,
1995, File No. 1-6468, as Exhibits 4(c)2, 4(c)3, 4(c)4, 4(c)5 and 4(c)6.)
C-8 Indenture dated as of June 1, 1994, between GEORGIA and Trust Company Bank, as Trustee and
indenture supplemental thereto dated December 15, 1994. (Designated in Certificate of Notification,
File No. 70-8461 as Exhibits E and F.)
C-9 Subordinated Note Indenture dated as of August 1, 1996, between GEORGIA and The Chase Manhattan
Bank, as Trustee, and indentures supplemental thereto through January 1, 1997. (Designated in
Form 8-K dated August 21, 1996, File No. 1-6468, as Exhibits 4.1 and 4.2 and in Form 8-K dated
January 9, 1997, File No. 1-6468, as Exhibit 4.2.)
</TABLE>
A-64
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------- ----------------------
C-10 Subordinated Note Indenture dated as of June 1, 1997, between GEORGIA and The Chase Manhattan
Bank, as Trustee, and indenture supplemental thereto dated as of June 11, 1997. (Designated in
Certificate of Notification, File No. 70-8461, as Exhibits D and E.)
C-11 Senior Note Indenture dated as of January 1, 1998, between GEORGIA and The Chase Manhattan
Bank, as Trustee, and indenture supplemental thereto dated as of January 27, 1998. (Designated
in Form 8-K dated January 21, 1998, File No. 1-6468, as Exhibits 4.1 and 4.2.)
C-12 Indenture dated as of September 1, 1941, between GULF and The Chase Manhattan Bank (formerly
The Chase Manhattan Bank (National Association)), as Trustee, and indentures supplemental
thereto through November 1, 1996. (Designated in Registration Nos. 2-4833 as Exhibit B-3,
2-62319 as Exhibit 2(a)-3, 2-63765 as Exhibit 2(a)-3, 2-66260 as Exhibit 2(a)-3, 33-2809 as
Exhibit 4(a)-2, 33-43739 as Exhibit 4(a)-2, in GULF's Form 10-K for the year ended December
31, 1991, File No. 0-2429, as Exhibit 4(b), in Form 8-K dated August 18, 1992, File No.
0-2429, as Exhibit 4(a)-3, in Registration No. 33-50165 as Exhibit 4(a)-2, in Form 8-K dated
July 12, 1993, File No. 0-2429, as Exhibit 4, in Certificate of Notification, File No.
70-8229, as Exhibit A, in Certificate of Notification, File No. 70-8229, as Exhibits E and F,
in Form 8-K dated January 17, 1996, File No. 0-2429, as Exhibit 4, in Certificate of
Notification, File No. 70-8229, as Exhibit A, in Certificate of Notification, File No.
70-8229, as Exhibit A and in Form 8-K dated November 6, 1996, File No. 0-2429, as Exhibit 4.)
C-13 Subordinated Note Indenture dated as of January 1, 1997, between GULF and The Chase Manhattan
Bank, as Trustee, and indentures supplemental thereto through that dated as of January 1, 1998.
(Designated in Form 8-K dated January 27, 1997, File No. 0-2429, as Exhibits 4.1 and 4.2, in Form
8-K dated July 28, 1997, File No. 0-2429, as Exhibit 4.2 and in Form 8-K dated January 13,
1998, File No. 0-2429, as Exhibit 4.2.)
</TABLE>
A-65
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------- ----------------------
C-14 Indenture dated as of September 1, 1941, between MISSISSIPPI and Bankers Trust Company, as
Successor Trustee, and indentures supplemental thereto through December 1, 1995. (Designated
in Registration Nos. 2-4834 as Exhibit B-3, 2-62965 as Exhibit 2(b)-2, 2-66845 as Exhibit
2(b)-2, 2-71537 as Exhibit 4(a)-(2), 33-5414 as Exhibit 4(a)-(2), 33-39833 as Exhibit 4(a)-2,
in MISSISSIPPI's Form 10-K for the year ended December 31, 1991, File No. 0-6849, as Exhibit
4(b), in Form 8-K dated August 5, 1992, File No. 0-6849, as Exhibit 4(a)-2, in Second
Certificate of Notification, File No. 70-7941, as Exhibit I, in MISSISSIPPI's Form 8-K dated
February 26, 1993, File No. 0-6849, as Exhibit 4(a)-2, in Certificate of Notification, File
No. 70-8127, as Exhibit A, in Form 8-K dated June 22, 1993, File No. 0-6849, as Exhibit 1, in
Certificate of Notification, File No. 70-8127, as Exhibit A, in Form 8-K dated March 8, 1994,
File No. 0-6849, as Exhibit 4, in Certificate of Notification, File No. 70-8127, as Exhibit C
and in Form 8-K dated December 5, 1995, File No. 0-6849, as Exhibit 4.)
C-15 Subordinated Note Indenture dated as of February 1, 1997, between MISSISSIPPI and Bankers Trust
Company, as Trustee, and indenture supplemental thereto dated as of February 1, 1997. (Designated
in Form 8-K dated February 20, 1997, File No. 0-6849, as Exhibits 4.1 and 4.2.)
C-16 Indenture dated as of March 1, 1945, between SAVANNAH and Bank of New York, New York, as
Trustee, and indentures supplemental thereto through May 1, 1996. (Designated in
Registration Nos. 33-25183 as Exhibit 4(a)-(1), 33-41496 as Exhibit 4(a)-(2), 33-45757 as
Exhibit 4(a)-(2), in SAVANNAH's Form 10-K for the year ended December 31, 1991, File No.
1-5072, as Exhibit 4(b), in Form 8-K dated July 8, 1992, File No. 1-5072, as Exhibit 4(a)-3,
in Registration No. 33-50587 as Exhibit 4(a)-(2), in Form 8-K dated July 22, 1993, File No.
1-5072, as Exhibit 4, in Form 8-K dated May 18, 1995, File No. 1-5072, as Exhibit 4 and in
Form 8-K dated May 23, 1996, File No. 1-5072, as Exhibit 4.)
C-17 Senior Note Indenture dated as of March 1, 1998 between SAVANNAH and The Bank of New York, as
Trustee and indenture supplemental thereto dated as of March 1, 1998. (Designated in Form 8-K
dated March 9, 1998, File No. 1-5072, as Exhibits 4.1 and 4.2.)
</TABLE>
A-66
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
------ ----------------------
D-1 Income Tax Allocation Agreement and Amendments 1 through 42 thereto. (Designated in Form U5S
for 1981, File No. 30-222-2, as Exhibit A-21, in Form U5S for 1982, File No. 30-222-2, as
Exhibit A-22(b), in Form U5S for 1982, File No. 30-222-2, as Exhibit A-22(c), in Form U5S for
1983, File No. 30-222-2, as Exhibit D-1(d), in Form U5S for 1985, File No. 30-222-2, as
Exhibit D-1(e), in Amendment No. 1 to Form U5S for 1985, File No. 30-222-2, as Exhibit D-1(f)
in Form U5S for 1987, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1991, File No.
30-222-2, as Exhibit D-2 and in Form U5S for 1992, File No. 30-222-2, as Exhibit D-2, in Form
U5S for 1991, File No. 30-222-2, as Exhibit D-2, in Form U5S for 1994, File No. 30-222-2, as
Exhibit D-2 and in Form U5S for 1995, File No. 30-222-2, as Exhibit D-2, as Exhibit D-2, in
Form U5S for 1994, File No. 30-222-2, as Exhibit D-2 and in Form U5S for 1996, File No.
30-222-2, as Exhibit D-2.)
D-2 Amendments 43 through 55 to Income Tax Allocation Agreement.
E-1 ALABAMA's, GEORGIA's, GULF's, MISSISSIPPI's, SCS's and SOUTHERN NUCLEAR's personnel policies
pertaining to employee loans. (Designated in Form U5S for 1985, File No. 30-222-2, as
Exhibits E-1, E-2, E-3, E-4 and E-5, in Form U5S, File No. 30-222-2, for 1987 as Exhibit E-2,
in Form U5S for 1990, File No. 30-222-2, as Exhibit E-2, in Form U5S for 1991, File No.
30-222-2, as Exhibits E-2 and E-3 , in Form U5S for 1992, File No. 30-222-2, as Exhibit E-2
in Form U5S for 1993, File No. 30-222-2, as Exhibit E-2, in Form U5S for 1991, File No.
30-222-2, as Exhibit D-2, in Form U5S for 1994, File No. 30-222-2, as Exhibit E-2 and in Form
U5S for 1995, File No. 30-222-2, as Exhibit E-2.)
E-2 Supplement to GULF's personnel policies pertaining to employee loans.
G-1 ALABAMA's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No.
1-3164, as Exhibit 27.)
G-2 GEORGIA's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No.
1-6468, as Exhibit 27.)
G-3 GULF's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File No.
0-2429, as Exhibit 27.)
G-4 MISSISSIPPI's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File
No. 0-6849, as Exhibit 27.)
G-5 SAVANNAH's Financial Data Schedule. (Designated in Form 8-K dated February 11, 1998, File
No. 1-5072, as Exhibit 27.)
G-6 SOUTHERN system's consolidated Financial Data Schedule. (Designated in Form 8-K dated
February 11, 1998, File No. 1-3526, as Exhibit 27.)
A-67
</TABLE>
<PAGE>
EXHIBITS.
Exhibits (including reference to previous filings): (Continued)
Exhibit
Number Description of Exhibit
-------- ----------------------
H Organizational Chart
I Financial statements relating to certain exempt
wholesale generators and foreign utility
companies.
Exhibits listed above which have heretofore been filed with the SEC
pursuant to various Acts administered by the SEC, and which were designated as
noted above, are hereby incorporated herein by reference and made a part hereof
with the same effect as if filed herewith.
<PAGE>
SIGNATURE
The undersigned registered holding company has duly caused this
annual report to be signed on its behalf by the undersigned thereunto
duly authorized pursuant to the requirements of the Public Utility
Holding Company Act of 1935.
THE SOUTHERN COMPANY
Date: April 30, 1998 By /s/ W. L. Westbrook
-------------------------
W. L. Westbrook
Financial Vice President,
Chief Financial Officer, and
Treasurer
A-69
Exhibit A-7
MODIFIED
Form U-13-60
ANNUAL REPORT
For The Period
Beginning January 1, 1997 and Ending December 31, 1997
To The
U.S. SECURITIES AND EXCHANGE COMMISSION
Of
SOUTHERN ENERGY RESOURCES, INC.
(formerly known as SOUTHERN ENERGY, INC.)
(Exact Name of Reporting Company)
A Subsidiary Company
Date of Incorporation July 29, 1981. If not incorporated
Date of Organization______________
State or Sovereign Power under which Incorporated or Organized
State of Delaware
Location of Principal Executive Offices of Reporting Company
900 Ashwood Parkway, Suite 500
Atlanta, GA 30338
Report filed pursuant to File Number 70-6599
Name, title, and address of officer to
whom correspondence concerning this report should be
addressed:
James A. Ward V. President & Controller 900 Ashwood Parkway, Suite 500
(Name) (Title) (Address)
Name of Principal Holding Company under which Reporting Company is
Organized:
THE SOUTHERN COMPANY
<PAGE>
1
INSTRUCTIONS FOR THE USE OF MODIFIED FORM U-13-60
1. Time of Filing - - Annual Report essentially in the form of U-13-60 shall be
filed appended to Form U5S, Annual Report of the Parent and Associate Companies
Pursuant to the Public Utility Holding Company Act of 1935. Form U5S is required
to be filed by May 1.
2. Number of Copies - - Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report becomes necessary.
3. Definitions - - Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within the modified
Form U-13-60.
4. Organization Chart - - The company shall submit with each annual report a
copy of its current organization chart.
<PAGE>
2
- ------------------------------------------------------------------------------
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
- ------------------------------------------------------------------------------
Description of Schedules and Accounts Schedule or Page
Account Number Number
- -------------------------------------------------------------------------------
COMPARATIVE BALANCE SHEET Schedule I 3-4
- ------------------------
COMPANY PROPERTY Schedule II 5
ACCUMULATED PROVISIONS FOR DEPRECIATION
AND AMORTIZATION OF COMPANY PROPERTY Schedule III 6
INVESTMENTS Schedule IV 7
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 8
MISCELLANEOUS DEFERRED DEBITS Schedule IX 9
PROPRIETARY CAPITAL Schedule XI 10
LONG TERM DEBT Schedule XII 11
CURRENT AND ACCRUED LIABILITIES Schedule XIII 12
NOTES TO FINANCIAL STATEMENTS Schedule XIV 13
COMPARATIVE INCOME STATEMENT Schedule XV 14
- ---------------------------
ANALYSIS OF BILLING-ASSOCIATE COMPANIES Account 457 15
ANALYSIS OF BILLING-NONASSOCIATE
COMPANIES Account 458 16
SCHEDULE OF EXPENSE BY DEPARTMENT OR
FUNCTION Schedule XVII 17-18
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 19
DISPOSITION OF INTELLECTUAL PROPERTY Account 928 20
MISCELLANEOUS GENERAL EXPENSES Account 930.2 21
TAXES OTHER THAN INCOME TAXES Account 408 22
DONATIONS Account 426.1 23
OTHER DEDUCTIONS Account 426.5 24
NOTES TO STATEMENT OF INCOME Schedule XVIII 25
OUTSIDE SERVICES EMPLOYED Schedule XIX 26
ORGANIZATION CHART 27-28
- ------------------------------------------------------------------------------
<PAGE>
3
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
- ------------------------------------------------------------------------------
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior
year. (Note: Amounts are in thousands of dollars)
- ------------------------------------------------------------------------------
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
CURRENT PRIOR
--------- ---------
COMPANY PROPERTY
101 Company Property (Schedule II) 10,610 8,742
107 Construction work in progress (Schedule II) - -
------- ------
Total Property 10,610 8,742
------- ------
108 Less accumulated provision for depreciation
and amortization of company property
(Schedule III) (5,723) (4,465)
------- ------
Net Company Property 4,887 4,277
------- ------
INVESTMENTS
123 Investments in associate companies - -
124 Other Investments (Schedule IV) 667 626
------- ------
Total Investments 667 626
------- ------
CURRENT AND ACCRUED ASSETS
131 Cash 1,998 7,558
134 Special deposits 941 594
135 Working funds 168 108
136 Temporary cash investments (Schedule IV) - -
141 Notes Receivable 75 75
143 Accounts Receivable 6,653 5,284
144 Accumulated provision for uncollectable
accounts (555) (288)
146 Accounts receivable from associate companies
(Schedule V) 79,255 16,436
152 Fuel stock expenses undistributed - -
154 Materials and supplies - -
163 Stores expenses undistributed - -
165 Prepayments 128 235
174 Miscellaneous current and accrued assets 2,186 6,773
------- ------
Total Current and Accrued Assets 90,849 36,775
------- ------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts - -
186 Miscellaneous deferred debits (Schedule IX) 64 (143)
188 Research, development, or demonstration
expenditures - -
190 Accumulated deferred income taxes 35,088 26,930
------- ------
Total Deferred Debits 35,152 26,787
------- ------
TOTAL ASSETS AND OTHER DEBITS 131,555 68,465
------- ------
<PAGE>
4
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
- -------------------------------------------------------------------------------
SCHEDULE I - COMPARATIVE BALANCE SHEET
- -------------------------------------------------------------------------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
CURRENT PRIOR
--------- -------
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 100 100
211 Miscellaneous paid-in capital (Schedule XI) 205,059 130,799
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) (134,428) (128,478)
-------- --------
Total Proprietary Capital 70,731 2,421
-------- --------
LONG TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
-------- --------
Total long-term debt - -
-------- --------
CURRENT AND ACCRUED LIABILITIES
231 Notes Payable - -
232 Accounts payable 12,857 9,029
233 Notes payable to associate companies
(Schedule XIII) - -
234 Accounts payable to associate companies
(Schedule XIII) 2,714 2,147
236 Taxes accrued 2,094 156
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 645 7
242 Miscellaneous current and accrued liabilities
(Schedule XIII) 13,652 43,045
------- ------
Total current and accrued liabilities 31,962 54,384
------- ------
DEFERRED CREDITS
253 Other deferred credits 15,424 11,660
255 Accumulated deferred investment tax credits - -
------- ------
Total Deferred Credits 15,424 11,660
------- ------
282 ACCUMULATED DEFERRED INCOME TAXES 13,438 -
---------------------------------
------- ------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL
131,555 68,465
------- ------
<PAGE>
<TABLE>
<CAPTION>
5
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
SCHEDULE II - COMPANY PROPERTY
- ----------------------------------------------------------------------------------------------------------------------
START OF YEAR END OF YEAR
BALANCE RETIRED OTHER YEAR
DESCRIPTION ADDITION OR SOLD CHANGES BALANCE
---------------------------------------------------------------------------------------------------------------------
COMPANY PROPERTY
Account
301 ORGANIZATION 7 - - (2) 5
303 MISCELLANEOUS INTANGIBLE PLANT
795 - - - 795
304 LAND AND LAND RIGHTS
- - - - -
305 STRUCTURES AND IMPROVEMENTS
- - - - -
306 LEASEHOLD IMPROVEMENTS 1
909 571 - - 1,480
307 EQUIPMENT 1 2 4,979 1,094 1 (300) 5,774
308 OFFICE FURNITURE AND EQUIPMENT
1 1,916 408 1 - 2,324
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT
136 96 - - 232
310 AIRCRAFT AND AIRPORT EQUIPMENT
- - - - -
311 OTHER COMPANY PROPERTY 3
- - - - -
------ ------ --- ----
SUB-TOTAL 8,742 2,169 1 (302) 10,610
------ ------ --- ---- ------
107 CONSTRUCTION WORK IN PROGRESS
4 -
-----
TOTAL 8,742 2,169 1 (302) 10,610
----- ----- --- ---- ------
1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Purchase of compute hardware: $ 821
Purchase of File Servers (SETMI) 203
Purchase of Software Licenses: 70
Purchase of office furniture: 408
Professional Office Expansion: 571
Transfer to Southern Energy Trading & Marketing (300)
2) SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT
ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
- ----------------------------------------------------------------------------------------------------------
BALANCE AT
CLOSE OF YEAR
SUBACCOUNT DESCRIPTION ADDITIONS
- ----------------------------------------------------------------------------------------------------------
Computer Software - 795
Computer Hardware 1,094 5,774
- ----------------------------------------------------------------------------------------------------------
3) DESCRIBE OTHER COMPANY PROPERTY:
Not Applicable
4) DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Not Applicable
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
6
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY
- -------------------------------------------------------------------------------------------------------------------------
CHARGED TO OTHER CHANGES
START OF YEAR ACCOUNT 403 ADD (DEDUCT) END OF YEAR
BALANCE (2) RETIRE- YEAR
DESCRIPTION MENTS BALANCE
- -------------------------------------------------------------------------------------------------------------------------
COMPANY PROPERTY
Account
301 ORGANIZATION - - - - -
303 MISCELLANEOUS INTANGIBLE PLANT
550 114 - - 663
304 LAND AND LAND RIGHTS
- - - - -
305 STRUCTURES AND IMPROVEMENTS
- - - - -
306 LEASEHOLD IMPROVEMENTS
396 202 - (13) 585
307 EQUIPMENT 2,761 776 (1) (15) 3,523
308 OFFICE FURNITURE AND FIXTURES
650 169 - - 819
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT
108 25 - - 134
310 AIRCRAFT AND AIRPORT EQUIPMENT
- - - - -
311 OTHER COMPANY PROPERTY
- - - - -
----- ----- --- ---- -----
TOTAL 4,465 1,287 (1) (28) 5,723
----- ----- --- ---- -----
(2) Depreciation expense of $8 is included on Schedule XV and is related to Vienna. This is charged to
Southern Energy's depreciation expense but instead of accumulated depreciation, it is charged directly
against the asset account balance.
</TABLE>
<PAGE>
7
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- ------------------------------------------------------------------------------
SCHEDULE IV - INVESTMENTS
- ------------------------------------------------------------------------------
INSTRUCTIONS: Complete the following schedule concerning investments.
Under account 124, "Other Investments", state each
investment separately, with description, including the
name of issuing company, number of shares or principal
amount, etc.
BALANCE AT
BEGINNING OF BALANCE AT CLOSE
DESCRIPTION YEAR OF YEAR
--------------- -------------- ------------------
ACCOUNT 124 - OTHER INVESTMENT
Investment in Mobile Energy
Services Co. , LLC 626 667
--- ---
TOTAL 626 667
--- ---
<PAGE>
<TABLE>
<CAPTION>
8
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
- ----------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Complete the following schedule listing accounts receivable from each associate company.
Where the company has provided accommodation or convenience payments for associate companies,
a separate listing of total payments for each associate by subaccount should be provided.
- ----------------------------------------------------------------------------------------------------------
BALANCE AT BEGINNING
OF YEAR BALANCE AT CLOSE OF
DESCRIPTION YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES:
Joint Venture - -
Alabama Power Co. 99 1
Georgia Power Co. 1 2
Southern Company Services 516 512
The Southern Co. - -
Southern Energy North America, Inc. 26 26
SEI Birchwood, Inc. 338 956
Southern Energy, Inc. (formerly SEI Holdings, 14 492
Inc.)
Associadios 17 -
Southern Energy-Newco2, Inc. 555 1,500
Electricidad 15 -
Hidroelectric Alicura, S.A. 216 324
Mobile Energy Services Company (MESCO) 419 868
Mobile Energy Services Holding (MESH) 522 500
Southern Energy Trading and Marketing, Inc. 4,076 23,731
Edelnor 1,518 3,118
SEI Chile S.A. - -
Southern Electric International Trinidad, Inc. 338 104
Birchwood Power Partners 274 1,624
SEI Hawaii Cogenerators 818 -
Southern Electric, Inc. 3 3
Southern Electric Holdings X - -
Southern Electric Holdings VIII - -
Electrica SEI Chile Limitada 503 -
Inversiones SEI Chile Limitada 310 -
Southern Investments Holding UK - (10)
Southern Investments UK plc 1,843 1,500
South Western Electricity plc 361 796
Southern Electric Bahamas Holding, Ltd. 481 619
Beteiligungs GmbH 595 1,164
SEI Europe, Inc. 795 822
SEI Europe, Limited 1,682 1,341
Greenhost, Inc. - 5
Southern Electric Bahamas Limited 101 101
SE do Brasil - 378
SEI State Line - 10
State Line LLC - 5,091
SEI Clairton, Inc. - 324
SEI Finance - 1
Worldwide Holdings Beteiligungs - 412
Germany BEWAG, Inc - 1,340
SEI Worldwide Holdings, Inc. - 1,340
Southern Energy Holdings GmbH2 - 9,440
SoCo Capital Funding - 2
Southern Energy Asia, Inc. - 15,184
CEPA - 1,505
Sual Slipform - 424
CEPA Slipform - 796
CEPA Tileman Power Systems - 7
CEPAL - 735
Allied Queensland Coalfield - 104
Hopewell Tileman Philippines - 8
Hopewell Energy Philippines - 8
Southern Energy Finance - 992
Hopewell Power Philippines - 110
EPZ Lease, Inc. - 8
SEI Brazil - 937
------ ------
TOTAL 16,436 79,255
------ ------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
Not Applicable -
------
TOTAL PAYMENTS -
------
</TABLE>
<PAGE>
9
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the year Ended December 31, 1997
- ------------------------------------------------------------------------------
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
- ------------------------------------------------------------------------------
INSTRUCTION: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each class.
BALANCE AT
BEGINNING OF
YEAR BALANCE AT CLOSE
DESCRIPTION OF YEAR
-------------- ------------- ------------------
ACCOUNT 186 - MISCELLANEOUS
DEFERRED DEBITS 1)
(143) 64
----- --
TOTAL (143) 64
----- --
1) Miscellaneous Deferred Debits: $ 64 K for "VAT" credit & the SEI
Employee Promissory Note.
<PAGE>
<TABLE>
<CAPTION>
10
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XI
PROPRIETARY CAPITAL
- ----------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
SHARES PAR OR STATED VALUE
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE OUTSTANDING CLOSE OF PERIOD
- -------------- -------------- ----------- ------------------- ----------------------------
NO. OF SHARES TOTAL AMOUNT
201 COMMON STOCK ISSUED 1,000 $100 1,000 100
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature
of transactions which give rise to the reported amounts.
DESCRIPTION AMOUNT
----------- -------
ACCOUNT 211 MISC. PAID IN CAPITAL 205,059
ACCOUNT 215 APPROPRIATED RETAINED EARNINGS -
-------
TOTAL 205,059
-------
BALANCE AT
BEGINNING OF NET INCOME OR
YEAR (LOSS) 1 BALANCE AT CLOSE
D E S C R I P T I O N DIVIDENDS PAID OF YEAR
--------------------------- ------------- ------------- ----------------- -----------------
ACCOUNT 216 UNAPPROPRIATED RETAINED EARNINGS (128,478) (5,947) - (134,428)
TOTAL (128,478) (5,947) - (134,428)
-------- ------ --- --------
1 The actual net income from operations was ($5,939). Also, a currency translation adjustment loss of ($ 8) was reflected in
the Net Income/(Loss), which is not income but a contra equity account.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
11
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XII
LONG-TERM DEBT
- ---------------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Advances from parent and associate companies should be reported separately for advances on notes, and advances on
open accounts. Names of associate companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224 - Other Long Term Debt provide the name of creditor company or
organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.
TERMS OF OBLIG
CLASS & SERIES BALANCE AT BALANCE
NAME OF CREDITOR OF OBLIGATION DATE OF INTEREST AMOUNT BEGINNING (1) AT CLOSE
MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR
- ------------------- ---------------- -------- ------- ----------- ---------- --------- ---------- --------
ACCOUNT 223 - ADVANCES FROM PARENT
AND ASSOCIATE
COMPANIES: - - - -
ACCOUNT 224 - OTHER LONG -TERM DEBT:
Not Applicable
-- -- -- --
TOTAL - - - -
-- -- -- --
</TABLE>
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
<PAGE>
12
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
- -------------------------------------------------------------------------------
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current
and accrued liabilities. Items less than $10,000 may be
grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE OF
D E S C R I P T I O N OF YEAR YEAR
--------------------- ---------- -------------
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE
COMPANIES:
THE SOUTHERN COMPANY - -
TOTAL - -
------- --------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES :
Alabama Power Company 8 -
Georgia Power Company 689 100
Southern Company Services 675 950
Mobile Energy Services Holdings 1 1
SEI Europe, Limited 403 1,175
Hidroelectric Alicura, S.A. - -
Birchwood Power Partners - -
South Western Electricity plc 337 428
Mobile Energy Services Co., LLC - -
SEI Birchwood - -
Southern Energy, Inc.
(formerly SEI Holdings, Inc.) 34 -
Southern Enterprises - -
SEI Hawaii - 60
------- -------
TOTAL 2,147 2,714
------- -------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES:
Employee Garnishments W/H (1) -
Employee Flex Care 11 4
Accrued Bonuses - Home Office 4,246 7,269
Accrued Bonuses - Plant 256 514
Accrued Incentive Payable 699 1,379
Employee Group Insurance
Premiums Withheld 14 -
Billing in Excess of Cost on
Uncompleted Contracts 34,443 1,296
Vacation Clearing
Current/Prior Year 1,873 1,627
Loss Provision - Macon Kraft 1,477 1,477
ESP and ESOP - 70
MESCO Insurance / Union Dues - -
Miscellaneous 27 -
United Way Withholdings - 16
------ ------
TOTAL 43,045 13,652
------- ------
<PAGE>
13
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
- -INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any accounts thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
- -------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Southern Energy Resources, INC. ("SEI" or the "Company"), a wholly owned
subsidiary of The Southern Company ("Southern"), is engaged in the
development, construction, operation and maintenance ("O&M"), and
ownership of cogeneration and independent power facilities in the United
States and internationally. The Company's affiliate construction
activities in Virginia represent approximately 64% of revenues, while its
O&M activities with unaffiliated entities in New York represent
approximately 8% of revenues. SEI's international consulting efforts
represent approximately 10% of the Company's revenues with the remaining
18% being derived from SEI's global business development efforts.
SEI owns 99% of SEI Operadora del Argentina, S.A., incorporated in 1993
for the purpose of providing operational and maintenance services to
Hidroelectrica Alicura, S.A., and 1% of Mobile Energy Services Company,
L.L.C. ("Mobile Energy"), formed in 1995 for the purpose of owning and
operating an energy and chemical recovery complex located in Mobile,
Alabama. SEI also owns 100% of Southern Electric International, Asia, Inc.
and 100% of Southern Electric International, GmbH, which were formed in
1995 for the purpose of business development in Asia and Europe,
respectively.
Accounting Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Basis of Presentation
The consolidated financial statements include the accounts of SEI and its
subsidiaries. All significant intercompany accounts and transactions have
been eliminated in consolidation. Certain prior year amounts have been
reclassified to conform with the current financial statement presentation.
Cash and Cash Equivalents
Investments with an original maturity of 90 days or less are classified as
cash and cash equivalents.
Property and Equipment
Property and equipment are recorded at cost. Depreciation and amortization
are provided using the straight-line method over the estimated economic
lives of the related assets (ranging from 3 years to 12 years). Leasehold
improvements are amortized over the shorter of the respective lease terms
or the useful lives of the improvements. The Company's capitalization
policy expenses the cost of certain immaterial assets when purchased. Upon
the retirement or sale of assets, the costs of such assets and the related
accumulated depreciation are removed from the balance sheet and the gain
or loss, if any, is credited or charged to income.
Project Development Costs
SEI capitalizes and simultaneously fully reserves for development costs
for projects in which a milestone has not yet been achieved but whose
likelihood of success is probable. It is reasonably possible that the
estimated reserve will be reduced significantly in the near term due to
successful project development efforts, which would have a beneficial
impact on earnings.
<PAGE>
13-A
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any accounts thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
- --------------------- ---------------------------------------------------------
Income Taxes
The Company provides deferred income taxes for all significant income tax
temporary differences in accordance with Financial Accounting Standards
Board Statement of Financial Accounting Standards ("SFAS") No. 109,
"Accounting for Income Taxes." SFAS No. 109 requires, among other things,
the use of an asset and liability method for the recognition of deferred
tax liabilities and assets.
Revenue Recognition
Revenues from construction contracts are recognized using the
percentage-of-completion method. The extent of progress toward completion
is measured by comparing the percentage of costs incurred to date to total
estimated costs on each contract. Provisions for estimated losses on
uncompleted contracts are charged to income in full when such losses
become probable and are reasonably estimable. Other service revenues are
recognized when earned.
2. EMPLOYEE BENEFITS
Pension Plan
SEI participates in the Pension Plan for Employees of Southern Company
Services, Inc., a defined benefit, trusteed, noncontributory plan covering
substantially all regular employees. Certain union employees engaged in
the operations and maintenance contract with Mobile Energy participate in
a separate pension plan.
The following table sets forth SEI's defined benefit plans' funded status
as of December 31, 1997 (in thousands):
<TABLE>
<CAPTION>
<S> <C>
1997
-----
Actuarial present value of benefit obligations:
Vested Benefits Obligation $(10,188)
Nonvested Benefits Obligation (1,029)
--------
Accumulated benefit obligation (11,217)
Excess of Projected Benefit Obligation over Accumulated Benefit
Obligation (7,345)
-------
Projected benefit obligation (18,562)
Less:
Fair value of plan assets, primarily equity and fixed income securities 10,380
Cash Flow Adjustment (4th Quarter) 10,328
Funded Status 2,146
Unrecognized net transition obligation 113
Unrecognized Net (Gain)/Loss (5,419)
Unrecognized prior service cost 6
--------
Accrued pension costs recognized in the balance sheets $ (3,154)
========
The actuarial present value of the projected benefit obligation for the plans was
determined using a discount rate of 7.75% for 1997 and a rate of increase in future
compensation levels of 5.25% for 1997. The expected long-term rate of return on assets
was 8.5% for 1997.
</TABLE>
<PAGE>
13-B
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- ------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any accounts thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
The net periodic pension cost for 1997 included the following components
(in thousands):
1997
Service cost-benefits earned $ 1,215
Interest cost on projected benefit obligation 1,262
Actual return on plan assets (2,253)
Net amortization and deferrals 718
-------
Net periodic pension cost $ 942
=======
Postretirement Benefits
SEI also provides certain medical care and life insurance benefits for
retired employees. Substantially all employees may become eligible for
these benefits when they retire.
Effective January 1, 1993, the Company adopted SFAS No. 106, "Employers
Accounting for Postretirement Benefits Other Than Pensions." SFAS No. 106
requires that medical care and life insurance benefits for retired
employees be accounted for on an accrual basis using a specified actuarial
method, benefit/years-of-service.
The funded status of the medical and life plans at December 31, 1997 was
as follows (in thousands):
1997
--------------------
Medical Life
------- ----
Actuarial present value of benefit obligation:
Retirees and dependents $ 154 $ 199
Employees eligible to retire 225 0
Other 1,537 618
------- -----
Accumulated benefit obligation 1,916 817
------- -----
Unrecognized prior service cost 1,089 316
Unrecognized net (gain) / loss (923) (322)
------- -----
Accrued liability recognized in the balance sheets $ 2,082 $ 811
The discount, future compensation, and expected long-term return on assets
rates used for the pensions described above were also used in measuring
the postretirement benefit obligation. The weighted average medical care
cost trend rate was 9.25 % for 1997, decreasing gradually to 5.75% through
the year 2005 and remaining at that level thereafter.
<PAGE>
13-C
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any accounts thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
- --------------------- ---------------------------------------------------------
The components of the plans' net costs are shown below (in thousands):
1997
-------------------
Medical Life
------- -----
Benefits earned during the year $138 $ 41
Net Amortization and Deferrals (14) (8)
Interest costs on accumulated projected benefit
obligation 129 55
----- ----
Net postretirement costs $ 253 $ 88
===== ====
Deferred Compensation Plans
In 1993, SEI began to partially compensate certain senior management
through a stock formula plan, which seeks to reward individuals for the
performance of the investments of SEI and its affiliated companies over a
period of four years, relative to the performance of SEI and Southern
Company.
Effective January 1, 1997 the Amended and Restated Deferred Incentive
Compensation Plan and the Value Creation Plan were enacted. The purposes
of the Southern Energy, Inc. Amended and Restated Deferred Incentive
Compensation Plan is to provide a financial incentive which will focus the
efforts of certain executives on areas which will have a direct and
significant influence on the corporate performance of Southern Energy
Resources, Inc. and to provide the potential for levels of compensation
which will enhance the ability of the Company to attract, retain and
motivate such executives.
The Value Creation Plan grants Stock Appreciation Rights that grow as
SEI's value grows, and can be exercised for the full appreciation amount
after four years (when the SAR's are fully vested). The amount of the
grant is based on market data for a given job, adjusted for Southern
Energy's performance compared to net income and return on investment
goals, as determined by Management Council and approved by the Southern
Company Compensation Committee.
Participants credited with an account balance at December 31, 1996 under
the terms of the original deferred compensation plan have had such
balances converted into awards under this new plan based on the dollar
value of such account as of December 31, 1996 as determined under the
terms of the original plan. Thereafter, the converted award shall continue
to vest in accordance with their original terms under the original plan
but shall be adjusted annually based on SEI Value alone.
As the value of the award is not known until the vesting date, SEI
accounts for this formula plan as a variable plan; as such, the Company
regularly assesses the current value of the awards and adjusts its accrued
liability accordingly. At December 31, 1997 the Company had accrued
approximately $3,923,627 related to this plan, which are included in
long-term liabilities in the accompanying consolidated balance sheets.
In addition to the stock formula plan for senior officers, SEI partially
compensates employees associated with a specific successful project bid
effort through a deferred cash compensation program. Upon successful
completion of a bid, members directly affiliated with the effort receive a
cash bonus, half of which is paid immediately and half of which is
deferred for a period of two years and paid based on the actual
performance of the related investment. SEI accrues amounts at the time the
award is granted and adjusts the liability accordingly when awards vest
and are paid. At December 31, 1997 the Company had accrued approximately
$1,378,898 related to this plan, which is included in other accrued
liabilities in the accompanying consolidated balance sheets. SEI paid
approximately $1,017,175 to employees under this plan during 1997 related
to successful bids in 1997.
<PAGE>
13-D
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any accounts thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
- ------------------------------------------------------------------------------
3. OPERATING LEASES
SEI has entered into noncancelable operating leases for office space. The
expenses under these leases were approximately $1,365,000 in 1997. These
leases contain certain concessions and escalations; therefore, rent
expense is recognized on a straight-line basis over the lease terms. The
future rental obligations for the remaining lease terms are as follows (in
thousands):
1998 $1,966
1999 2,072
2000 1,960
2001 691
2002 638
Thereafter 1,330
------
Total minimum lease commitments $8,657
======
4. RELATED-PARTY TRANSACTIONS
Additional Equity Contributions
Southern Energy, Inc. (formerly SEI Holdings) contributed approximately
$28,867,000 and $74,260,000 in 1996 and 1997, respectively to paid-in
capital.
Construction Activities
During 1994, SEI was engaged by an affiliated company to construct a
coal-fired cogeneration facility and related greenhouse in King George
County, Virginia, the construction of which was completed during 1997. The
fixed contract price for the construction of these facilities is
$292,040,000.
Services
SEI has agreements with Southern Company Services, Inc. and each of the
system operating companies under which those companies provide the
following services to SEI at cost: general engineering, design
engineering, accounting and statistical budgeting, business promotion and
public relations, systems and procedures, training, and administrative and
financial services. In addition to these services, certain facilities of
the system companies are made available to SEI and its customers. SEI
reimburses the service company and the various operating companies at cost
for these services. Such costs in 1997 and 1996 amounted to approximately
$ 31,417,464 and $ 21,958,358, respectively.
<PAGE>
13-E
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any accounts thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
SEI has a contract with Mobile Energy, an affiliated entity to operate and
maintain an energy complex in Mobile, Alabama for a period of 25 years at
cost. SEI has a similar agreement with Birchwood Power Partners, L.P.
("BPP") to operate and maintain its 220 megawatt coal-fired cogeneration
facility located in King George County, Virginia, for a period of 25 years
for a fee of $120,000 per year, adjusted annually for inflation.
5. CONTINGENCIES
Litigation With Former President
In October 1991, a former SEI president filed suit in the Superior Court
of DeKalb County (Georgia) against Southern, SEI, and an executive vice
president of Southern. The plaintiff alleged defamation, breach of
contract, and intentional infliction of emotional distress arising from
his termination as president of SEI. Judgment in favor of the plaintiff
was awarded by the court during 1994 in the amount of $2,700,000, plus
legal costs of approximately $2,000,000. In 1994, SEI filed an insurance
claim for an amount equal to the total judgment. The Company's insurer has
elected to appeal the Superior Court's judgment. In the opinion of
management, any portion of the judgment ultimately deemed uninsurable will
not have a material adverse impact on the results of operations or
financial position of the Company.
Labor Subject to Collective Bargaining Agreements
Substantially all of the employees engaged in the operations and
maintenance contract with Mobile Energy are subject to collective
bargaining agreements, none of which expire during 1997.
Other Matters
The Company is subject to other legal actions and claims arising in the
ordinary course of business. In the opinion of management, the disposition
of these matters will not have a material adverse impact on the results of
operations or financial position of the Company.
<PAGE>
14
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
- -------------------------------------------------------------------------------
CURRENT PRIOR
ACCOUNT DESCRIPTION YEAR YEAR
- -------------------------------------------------------------------------------
INCOME
457 Charges rendered to associate companies - -
458 Services rendered to non-associate companies 58,760 70,339
421 Miscellaneous income or loss 776 710
------ ------
Total Income 59,536 71,049
------ ------
EXPENSES
920 Salaries and wages 15,589 19,921
921 Office supplies and expenses 5,750 7,715
922 Administrative expense transferred - credit (20,912) (8,316)
923 Outside services employed 35,546 73,125
924 Property insurance 176 317
925 Injuries and damages 237 205
926 Employee pensions and benefits 18,927 8,262
928 Disposition of intellectual property - -
930.1 General advertising expense 26 110
930.2 Miscellaneous general expenses 1,596 1,204
931 Rents 3,654 2,012
932 Maintenance of structures and equipment 1,404 1,340
403 Depreciation and amortization expense 1,295 1,246
408 Taxes other than income taxes 4,075 4,086
409 Income taxes (7,235) (1,721)
410 Provision for deferred income taxes 14,107 (10,264)
411 Provision for deferred income taxes - credit (9,875) (1,837)
411.5 Investment tax credit - -
Foreign taxes 186 112
426.1 Donations 150 61
426.5 Other deductions - 2
427 Interest on long-term debt 779 31
430 Interest on debt to associate companies - -
431 Other interest expense - -
------ -------
Total Expense 65,475 97,611
------ -------
Net Income or (Loss) (5,939) (26,562)
------ -------
INSTRUCTION: Provide a schedule briefly describing types of intercompany
transactions.
TRANSACTIONS WITH ASSOCIATE COMPANIES
SEI has agreements with Southern Company Services, Inc. and each of the system
operating companies under which those companies provide the following services
to SEI at cost: general engineering, design engineering, accounting and
statistical, rates, budgeting, business promotion and public relations, systems
and procedures, training, administrative, and financial services. In addition to
these services, certain facilities of the system companies are made available to
SEI and its customers.
The service company and operating companies provide technical direction and
management of the services provided to SEI and its customers. SEI reimburses
the service company and operating companies at cost for these services.
<PAGE>
15
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- ------------------------------------------------------------------------------
ANALYSIS OF BILLINGS
CHARGES FOR INTELLECTUAL PROPERTY TO
ASSOCIATE COMPANIES
ACCOUNT 457
- ------------------------------------------------------------------------------
TOTAL
NAME OF ASSOCIATE COMPANY AMOUNT
BILLED
- -------------------------------------------------------------------------------
Not Applicable
---
TOTAL -
<PAGE>
16
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
ANALYSIS OF BILLING
NON-ASSOCIATE COMPANIES
ACCOUNT 458
- -------------------------------------------------------------------------------
DESCRIPTION TOTAL COST EXCESS OR DEFICIENCY TOTAL AMOUNT
BILLED
----------- --------- ------------------- -------------
Consulting & Engineering (1) 3,686 53 3,739
Information Systems - - -
Nuclear - - -
Franchises & Other - - -
Operations 7,892 (1,870) 6,022
Project Management - - -
Construction (2) 6,343 29,710 36,054
Pooled Inventory Management (PEICO) - - -
Good Cents - - -
------ ------ ------
TOTAL 17,922 27,893 45,815
------ ------ ------
INSTRUCTION: Provide a brief description of the sales and services rendered
by category in accordance with your sales and service contracts
and list the amounts applicable per category.
1) Consulting & Engineering includes Revenues and Costs relative to the Virgin
Islands Storm Restoration project as a result of Hurricane Marilyn. The
totals for 1997 are as follows:
Costs 11
Excess / Efficiency (62)
-------
Amount Billed (51)
2) Construction revenues are associated with the construction of the Birchwood
EPC facility.
<PAGE>
<TABLE>
<CAPTION>
17
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION
- -----------------------------------------------------------------------------------------------------------------
DESCRIPTION OF ITEMS TOTAL
AMOUNT OVERHEAD SEI Operadora Asia & GmbH
- -----------------------------------------------------------------------------------------------------------------
920 SALARIES AND WAGES 15,589 15,544 - 45
921 OFFICE SUPPLIES AND EXPENSES 5,750 5,691 - 58
922 ADMIN EXP TRANSFERRED - CREDIT (20,912) (20,912) - -
923 OUTSIDE SERVICES EMPLOYED 35,546 34,906 323 317
924 PROPERTY INSURANCE 176 176 - -
925 INJURIES AND DAMAGES 237 237 - -
926 EMPLOYEE PENSIONS AND BENEFITS 18,927 18,927 - -
928 DISPOSITION OF INTELLECTUAL PROP. - - - -
930.1 GENERAL ADVERTISING EXPENSE 26 26 - -
930.2 MISCELLANEOUS GENERAL EXPENSE 1,596 730 - 865
931 RENTS 3,654 2,216 - 1,438
932 MAINTENANCE OF STRUCTURES & EQUIP 1,404 1,404 - -
403 DEPRECIATION & AMORTIZATION EXP 1,295 1,248 - 47
408 TAXES OTHER THAN INCOME TAX 4,075 4,051 - 25
409 INCOME TAXES (7,235) (7,235) - -
410 PROVISION FOR DEFERRED INCOME TAX 14,107 14,107 - -
411 PROV DEFERRED INCOME TAX - CREDIT (9,875) (9,875) - -
FOREIGN TAXES 186 - 186 -
411.5 INVESTMENT TAX CREDIT - - - -
426.1 DONATIONS 150 150 - -
426.5 OTHER DEDUCTIONS - - - -
427 INTEREST ON LONG TERM DEBT 779 779 - -
430 INTEREST ON DEBT TO ASSOCIATE CO. - - - -
431 OTHER INTEREST EXPENSE - - - -
- -
INSTRUCTION: Indicate each department or service
function. 65,475 62,170 510 2,795
(See instruction 01-3 Gen'l Structure of Acc'ting
Structure
System: Uniform System Account. TOTAL EXPENSES
</TABLE>
<PAGE>
18
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31, 1997
SCHEDULES OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR FUNCTION
- ------------------------------------------------------------------------------
ACCOUNT NUMBER DEPARTMENT OR FUNCTION
- ------------------------------------------------------------------------------
920 Not needed
921
922
923
924
925
926
928
930.1
930.2
931
932
403
408
409
410
411
411.5
426.1
426.5
427
430
431
<PAGE>
19
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
SALARY NUMBER
NAME OF DEPARTMENT OR SERVICE FUNCTION EXPENSE PERSONNEL
- -------------------------------------- ------- ---------
Indicate each department or service function TOTAL AMOUNT END OF YEAR
SOUTHERN ENERGY RESOURCES, INC. 15,589 525
TOTAL 15,589 525
<PAGE>
20
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
- -------------------------------------------------------------------------------
DISPOSITION OF INTELLECTUAL PROPERTY
ACCOUNT 928
- -------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 928,
"Disposition of Intellectual Property", classifying such
expenses by associate company receiving compensation for
Disposition of Intellectual Property.
ASSOCIATE COMPANY AMOUNT
Not Applicable
---
TOTAL -
<PAGE>
21
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
- ------------------------------------------------------------------------------
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
- ------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount in Account 930.2, "Miscellaneous
General Expenses", classifying such expense according to their
nature. Payments and expenses permitted by Section 321 (b) (2)
of the Federal Election Campaign Act, as amended by Public Law
94-283 in 1976 (2 U.S.C.S. 441 (b)(2)shall be separately
classified.
<TABLE>
<CAPTION>
<S> <C>
DESCRIPTION AMOUNT
----------- ------
Dues and Memberships 581
Miscellaneous General Expense for : 1,003
Storage of records Jan - Dec 97
Birchwood Construction Costs
Inside move of Accounting and Construction Staff
Misc. purchases from the Atlanta Novelty Company
Annual license, certification & registration fees Bank &
wire transfer fee Holiday Gala Expenses Kitchen/Bathroom
Supplies Office cleaning Petty cash expense Miscellaneous
Other Expenses
Bad Debt Expense 12
-----
TOTAL 1,596
-----
</TABLE>
<PAGE>
22
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
- -------------------------------------------------------------------------------
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
- -------------------------------------------------------------------------------
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than
U.S. Government taxes, and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts thereof.
Provide a subtotal for each class of tax.
K I N D O F T A X AMOUNT
- -------------------------------------------------------------------------------
Other than U.S. Government:
State Unemployment
Real Estate and Personal Property 62
Other State and Local Taxes and Licenses 84
Sales Tax 8
Argentina Withholding Tax expense -
Chile Withholding Tax expense 1,359
Mexico Expatriate Social Security Tax - Employer -
Australia Expatriate Income tax - Employer -
Puerto Rico Income Tax - Employee Differential -
Austria Income Tax - Employee Differential 44
Use Tax -
Expatriate Taxes 345
-----
Subtotal 1,902
-----
U. S. Government:
FICA - Employers Portion 2,082
FUTA 31
SUTA 60
-----
Subtotal 2,173
-----
TOTAL 4,075
-----
<PAGE>
23
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
- ------------------------------------------------------------------------------
DONATIONS
ACCOUNT 426.1
- ------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items less than $3,000 may
be shown in lieu
of details.
<TABLE>
<CAPTION>
<S> <C> <C>
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
------------------ -------------------- --------
32 Items ( Less than $3,000 each) Employer Gift Matching Contributions 18
United Way of Metropolitan Atlanta Corporate Contribution 16
Boy Scouts of America Atlanta Area Council 25
Atlanta Classic Foundation Inc. Bell South Golf Tournament 7
Zoo Atlanta Table 1997 Beastly Feast Festival 4
Carter Center China Project 10
Robert College of Istanbul Charitable Contribution 5
Have A Heart thru Art Northshore Jazz Festival 5
Carter Center Latin American Program 15
Greater Houston Partnership Sponsorship Dinner 3
Forward Atlanta Forward Atlanta Campaign 5
Peoples National Party of Jamaica Contribution 10
Columbus House for Teenage Boys Contribution 3
Grand Bahama Children Homes Contribution 3
So Center for International Study Fall Reception 3
American Foundation Univ West Indies 1/2 page Journal 10
Atlanta Classic Foundation Gold Circle Pro Am 8
---
TOTAL 150
---
</TABLE>
<PAGE>
24
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
- ------------------------------------------------------------------------------
OTHER DEDUCTIONS
ACCOUNT 426.5
- ------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5
"Other Deductions", classifying such expenses according to
their nature.
AMOUNT
DESCRIPTION NAME OF PAYEE BILLED
- -------------------------------------------- ----------------------------------
State & Local - Penalties /Fines 1.00
Federal - Penalties / Fines 1.00
----
TOTAL 2.00
----
<PAGE>
25
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
- -------------------------------------------------------------------------------
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
- -------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars
as to any significant increase in services rendered or expenses
incurred during the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
Account 922 Administrative expense transferred: This account changed
significantly in 1997 due to a corresponding increase in related
affiliate billings.
Account 923 Outside services employed: This account decreased due
to the slowdown in Birchwood Construction in 1997.
Account 926 Employee pensions and benefits: The expenses
associated with this account are higher in 1997 due to an
underaccrual of benefits in 1996 which was corrected in the
current year. This increase corresponds to the increase in 1997
gross salaries.
<PAGE>
26
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
For the Year Ended December 31,1997
- ------------------------------------------------------------------------------
SCHEDULE XIX
OUTSIDE SERVICES EMPLOYED 923
INSTRUCTIONS: Provided below is a break down of outside services employed.
1997 1996
---- ----
Legal Fees 7,313 8,377
Accounting and Audit Fees 267 152
Alabama Power Company 19 548
Georgia Power Company 372 2,932
Gulf Power Company 53 125
Mississippi Power Company 51 137
Southern Company Services 6,473 7,897
Savannah Electric Company 3 198
Southern Development & Investment Group 4 190
Other Outside Companies 1) 20,991 52,569
Joint Venture SEI/Daniel - -
------ -------
TOTAL 35,546 73,125
1) Detail of Other Outside Companies for 1997 is as follows:
Consulting Meals 28
Engineering 78
Underwriter Fees 163
Computer consulting 146
Temporary office services 517
Consulting (non financial) 12,138
Construction subcontractors (Birchwood) 2,900
Other plant operations 5
Financial consulting 3,860
Other Outside Companies - Sual / CEPA Procurement 1,724
Charges billed for audit & professional services 1,432
provide to various SEI projects
Operadora expenses 323
Asia expenses 282
Eliminate intercompany expenses (2,841)
Other (agent fees, license renewals, etc.) 236
-------
TOTAL 20,991
<PAGE>
27
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
ORGANIZATION CHART OF SOUTHERN ENERGY RESOURCES, INC.
Tom Boren/President and CEO
S. Marce Fuller / Senior Vice President, North America Division
Steve Gillis / Finance Director
Randy Harrison / Vice President
David Gallaspy / Vice President
Alan W. Harrelson / Vice President
Joe Pokalsky / Vice President, Energy Trading & Marketing
Roger Benefield / Business Unit Manager, Stateline
Dick Koch / Business Unit Manager, Mobile
George P. Henefeld / Business Unit Manager, Birchwood
Raymond D. Hill / Senior Vice President Corporate Services Division
and Chief Financial Officer Tommy Chisholm / Vice President
and Corporate Secretary Vance Booker / Vice President,
Administration J.R. Harris / Vice President, External Affairs
Bill Maner, III / Vice President Karl Olsoni / Vice President
and Treasurer James Ward / Vice President and Controller David
R Rozier, Jr. / Assistant Comptroller
Richard Pershing / Senior Vice President, International Division Kim
Heinz / Manager, Market Evaluation Gale Klappa / President and
CEO, South Western Electricity plc Tom Allen / Manager,
Economic Development Bill Holden / Vice President, Operations
& Development Bob Richwine / Chief Consultant Dave Dunbar /
Manager, Consulting Services Barney Rush / Vice President, SEI
Europe, Inc. Ron Leggett / Vice President, International
Operations
ORGANIZATION CHART OF SEI OPERADORA DE ARGENTINA, S.A.
J. William Holden, III/ President of the Board
Ricardo Falabella / Vice President of the Board
Mariano F. Grondona/Secretary of the Board
ORGANIZATION CHART OF SEI BETEILIGUNGS GmbH
Thomas G. Boren / Managing Director
Barney Rush / Managing Director
James A. Ward / Managing Director
ORGANIZATION CHART OF SEI ASIA
Thomas G. Boren / President
Raymond D. Hill / Vice President & Chief Financial Officer
James A. Ward / Treasurer
Tommy Chisholm / Secretary & Assistant Treasurer
Sam H. Dabbs, Jr. / Assistant Secretary
<PAGE>
ANNUAL REPORT OF SOUTHERN ENERGY RESOURCES, INC.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935 and in accordance with release numbers 22132, and order number 70-6599,
dated July 17, 1981, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
SOUTHERN ENERGY RESOURCES, INC.
Name of Reporting Company
By:
(Signature of Signing Officer)
James A. Ward, Controller
(Printed Name and Title of Signing Officer)
Date: April 29, 1998
Exhibit B-28
Adopted by the Southern Nuclear board of directors on May 21, 1991:
RESOLVED, that Article V, Section 2. of the By-Laws of the Company is
hereby revised as follows:
Section 2. Duties of the Chairman of the Board. The
Chairman of the Board shall be the Corporation's chief
executive officer and shall have general authority over the
business and affairs of the Corporation, subject to the
control and direction of the board. He shall report to the
Board of Directors and shall see that all orders and
resolutions of the board of directors and of the executive
committee are carried into effect.
The Chairman of the Board shall preside at all
meetings of the stockholders and Board of Directors. He shall
have authority to execute bonds, mortgages, and other
contracts requiring a seal, under the seal of the Corporation;
he shall have power to endorse, when sold, assigned,
transferred or otherwise disposed of by Corporation, all
certificates or shares of stock, bonds, or other securities
issued by other corporations, associations, trust, whether
public or private, or by any government or agency thereof, and
owned or held by the Corporation, and to make, execute and
deliver all instruments of assignment or transfer of any such
stocks, bonds or other securities. He may, with the approval
of the board, or shall, at the Boards' discretion, delegate
any or all of such duties to the President.
RESOLVED FURTHER, that Article V, Section 3. of the By-Laws of the
Company is hereby revised to read as follows:
Section 3. Duties of the President. The President
shall be the Corporation's chief operating officer and shall
be responsible for all of the operations of the Corporation
and shall report to the Chairman of the Board.
The President shall, under the direction of the
Chairman of the Board, have general supervision and direction
of the other officers, employees and agents of the Corporation
and shall see that their duties, as assigned by the Board, are
properly performed. He shall designate and assign the duties
of the officers under his supervision, with the approval of
the Chairman of the Board or at his direction.
The President shall have authority to execute bonds,
mortgages and other contracts requiring a seal, under the seal
of the Corporation; he shall have power to endorse, when sold,
assigned, transferred or otherwise disposed of by the
Corporation, all certificates for shares, bonds, or other
securities or other evidences of indebtedness issued by other
corporations, associations, trusts, whether public or private,
or by any government or agency thereof, and owned or held by
the Corporation and to make, execute and deliver all
instruments or assignments or transfers of any such stocks,
bonds, or other securities. In the absence of the Chairman of
the Board, the President shall have full authority to do any
and all things delegated to the Chairman of the Board by the
Board of Directors or by any committee of the Board having
authority.
The President will perform all of the duties and have
all of the authority of the Chairman of the Board in the
absence of the Chairman of the Board.
RESOLVED FURTHER, that Article V, Section 6. of the By-Laws of the
Company is hereby revised to read as follows:
Section 6. Comptroller. The Comptroller shall be the
chief accounting officer of the Corporation and shall be
responsible for maintaining adequate records of all assets,
liabilities, and accounting transactions of the corporation;
he shall have charge of the installation and supervision of
all accounting and statistical records, the preparation of all
financial and statistical statements and reports; and the
supervision of the accounting methods, systems and forms in
use by all departments and shall perform such other duties as
may be assigned to him from time to time by the board of
directors, the executive committee, the chairman of the
executive committee, the chairman of the board, the president,
or a vice-president.
Adopted by the Southern Nuclear board of directors on May 11, 1992:
RESOLVED, that the revisions to Article V, Section 2. of the By-Laws of
the Company, Duties of the Chairman of the Board, which were adopted by
resolution of the Board on May 21, 1991 are hereby rescinded;
RESOLVED FURTHER, that the revisions to Article V, Section 3. of the
By-Laws of the Company, Duties of the President, which were adopted by
resolution of the Board on May 21, 1991 are hereby rescinded;
Adopted by the Southern Nuclear board of directors on May 3, 1993:
RESOLVED, that Article V, Section 2. of the By-Laws of the Company is
hereby revised to read as follows:
Section 2. Duties of the Chairman of the
Board. The Chairman of the Board shall be the
Corporation's chief executive officer and shall have
general authority over the business and affairs of
the Corporation, subject to the control and direction
of the board. He shall report to the board of
directors and shall see that all orders and
resolutions of the board of directors and of the
executive committee are carried into effect.
The Chairman of the Board shall preside at
all meetings of the stockholders and board of
directors. He shall have authority to execute bonds,
mortgages, and other contracts requiring a seal,
under the seal of the Corporation; he shall have
power to endorse, when sold, assigned, transferred or
otherwise disposed of by the Corporation, all
certificates or shares of stock, bonds, or other
securities issued by other corporations,
associations, trusts, whether public or private, or
by any government or agency thereof, and owned or
held by the Corporation, and to make, execute and
deliver all instruments of assignment or transfer of
any such stocks, bonds or other securities. He may,
with the approval of the board, or shall, at the
board's discretion, delegate any or all of such
duties to the President.
RESOLVED, that Article V, Section 3. of the By-Laws of the Company is
hereby revised to read as follows:
Section 3. Duties of the President. The
President shall be the Corporation's chief operating
officer and shall be responsible for all of the
operations of the Corporation and shall report to the
Chairman of the Board.
The President shall, under the direction of
the Chairman of the Board, have general supervision
and direction of the other officers, employees and
agents of the Corporation and shall see that their
duties, as assigned by the board, are properly
performed. He shall designate and assign the duties
of the officers under his supervision, with the
approval of the Chairman of the Board or at his
direction.
The President shall have authority to
execute bonds, mortgages and other contracts
requiring a seal, under the seal of the Corporation;
he shall have power to endorse, when sold, assigned,
transferred or otherwise disposed of by the
Corporation, all certificates for shares, bonds, or
other securities or other evidences of indebtedness
issued by other corporations, associations, trusts,
whether public or private, or by any government or
agency thereof, and owned or held by the Corporation
and to make, execute and deliver all instruments of
assignment or transfer of any such stocks, bonds, or
other securities. In the absence of the Chairman of
the Board, the President shall have full authority to
do any and all things delegated to the Chairman of
the Board by the board of directors or by any
committee of the board having authority.
The President will perform all of the duties
and have all of the authority of the Chairman of the
Board in the absence of the Chairman of the Board.
Adopted by the Southern Nuclear board of directors on December 6, 1993:
RESOLVED, that Article VIII of the By-Laws of the Company is hereby
revised in its entirety to read as follows:
ARTICLE VIII
Indemnification
Each person who is or was a director of the corporation or
officer or employee of the corporation holding one or more
positions of management through and inclusive of department
managers (but not positions below the level of department
managers) (such positions being hereinafter referred to as
"Management Positions") and who was or is a party or was or is
threatened to be made a party to any threatened, pending or
completed claim, action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of the
fact that said person is or was a director of the corporation
or officer or employee of the corporation holding one or more
Management Positions, or is or was serving at the request of
the corporation as a director, officer, employee, agent or
trustee of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, shall be
indemnified by the corporation as a matter of right against
any and all expenses (including attorneys' fees) actually and
reasonably incurred by said person and against any and all
claims, judgments, fines, penalties, liabilities and amounts
paid in settlement actually incurred by said person in defense
of such claim, action, suit or proceeding, including appeals,
to the full extent permitted by applicable law. The
indemnification provided by this Article shall inure to the
benefit of the heirs, executors and administrators of said
person.
Expenses (including attorneys' fees) incurred by a director of
the corporation or officer or employee of the corporation
holding one or more Management Positions with respect to the
defense of any such claim, action, suit or proceeding may be
advanced by the corporation prior to the final disposition of
such claim, action, suit or proceeding, as authorized by the
board of directors in the specific case, upon receipt of an
undertaking by or on behalf of said person to repay such
amount unless it shall ultimately be determined that said
person is entitled to be indemnified by the corporation under
this Article or otherwise; provided, however, that the
advancement of such expenses shall not be deemed to be
indemnification unless and until it shall ultimately be
determined that said person is entitled to be indemnified by
the corporation.
The corporation may purchase and maintain insurance at the
expense of the corporation on behalf of any person who is or
was a director, officer, employee or agent of the corporation,
or any person who is or was serving at the request of the
corporation as a director (or the equivalent), officer,
employee, agent or trustee of another corporation,
partnership, joint venture, trust, employee benefit plan or
other enterprise, against any liability or expense (including
attorneys' fees) asserted against said person and incurred by
said person in any such capacity, or arising out of said
person's status as such, whether or not the corporation would
have the power to indemnify said person against such liability
or expense under this Article or otherwise.
Without limiting the generality of the foregoing provisions of
this Article, no present or future director or officer of the
corporation, or his heirs, executors, or administrators, shall
be liable for any act, omission, step, or conduct taken or had
in good faith, which is required, authorized, or approved by
any order or orders issued pursuant to the Public Utility
Holding Company Act of 1935, the Federal Power Act, or any
federal or state statute or municipal ordinance regulating the
corporation or its parent by reason of their being holding or
investment companies, public utility companies, public utility
holding companies, or subsidiaries of public utility holding
companies. In any action, suit, or proceeding based on any
act, omission, step, or conduct, as in this paragraph
described, the provisions hereof shall be brought to the
attention of the court. In the event that the foregoing
provisions of this paragraph are found by the court not to
constitute a valid defense on the grounds of not being
applicable to the particular class of plaintiff, each such
director and officer, and his heirs, executors, and
administrators, shall be reimbursed for, or indemnified
against, all expenses and liabilities incurred by said person
or imposed on said person, in connection with, or arising out
of, any such action, suit, or proceeding based on any act,
omission, step, or conduct taken or had in good faith as in
this paragraph described. Such expenses and liabilities shall
include, but shall not be limited to, judgments, court costs,
and attorneys' fees.
The foregoing rights shall not be exclusive of any other
rights to which any such director or officer or employee may
otherwise be entitled and shall be available whether or not
the director or officer or employee continues to be a director
or officer or employee at the time of incurring any such
expenses and liabilities.
Adopted by the Southern Nuclear board of directors on December 13, 1993:
RESOLVED, that the revisions to Article V, Section 2. of the By-Laws of
the Company, Duties of the Chairman of the Board, which were adopted by
resolution of the Board on May 3, 1993 are hereby rescinded;
RESOLVED FURTHER, that the revisions to Article V, Section 3. of the
By-Laws of the Company, Duties of the President, which were adopted by
resolution of the Board on May 3, 1993 are hereby rescinded;
EXHIBIT D-2
INCOME TAX ALLOCATION AGREEMENT
FORTY-THIRD AMENDMENT
Southern Energy Retail Trading and Marketing, Inc. was incorporated in 1997
and is wholly owned by Southern Energy Trading and Marketing, Inc. Southern
Energy Retail Trading and Marketing, Inc. does hereby declare and agree to the
terms and conditions provided in the Income Tax Allocation Agreement dated
December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29TH day of
January, 1998.
ATTEST Southern Energy Retail Trading and Marketing, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FORTY-FOURTH AMENDMENT
Southern Company Capital Funding, Inc. was incorporated in 1997 and is
wholly owned by SEI Holdings, Inc. Southern Company Capital Funding, Inc. does
hereby declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST Southern Company Capital Funding, Inc.
Tommy Chisholm BY: C. O. Rawlins
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FORTY-FIFTH AMENDMENT
SEI Germany - BEWAG, Inc. was incorporated in 1997 and is wholly owned by
Southern Energy International, Inc. SEI Germany - BEWAG, Inc. does hereby
declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST SEI Germany - BEWAG, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FORTY-SIXTH AMENDMENT
Southern Energy Clairton, Inc. was incorporated in 1997 and is wholly owned
by Southern Energy Finance Company, Inc. Southern Energy Clairton, Inc. does
hereby declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST Southern Energy Clairton, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FORTY-SEVENTH AMENDMENT
Southern Energy Clairton 2, Inc. was incorporated in 1997 and is wholly
owned by Southern Energy Finance Company, Inc. Southern Energy Clairton 2, Inc.
does hereby declare and agree to the terms and conditions provided in the Income
Tax Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST Southern Energy Clairton 2, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FORTY-EIGHTH AMENDMENT
Alabama Energy Providers, Inc. was incorporated in 1997 and is wholly owned
by Alabama Power Company. Alabama Energy Providers, Inc. does hereby declare and
agree to the terms and conditions provided in the Income Tax Allocation
Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 16th day of
March, 1998.
ATTEST Alabama Energy Providers, Inc.
Anita A. Baker BY: Art P. Beattie
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FORTY-NINTH AMENDMENT
SEI Worldwide Holdings, Inc. was incorporated in 1997 and is wholly owned
by Southern Energy International, Inc. SEI Worldwide Holdings, Inc. does hereby
declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST SEI Worldwide Holdings, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FIFTIETH AMENDMENT
SC Ashwood Holdings, Inc. was incorporated in 1997 and is wholly owned by
Southern Energy Trading and Marketing, Inc. SC Ashwood Holdings, Inc. does
hereby declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST SC Ashwood Holdings, Inc.
Tommy Chisholm BY: James A. WArd
Assistant Secretary
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FIFTY-FIRST AMENDMENT
State Line Holding Corporation was incorporated in 1997 and is wholly owned by
SEI State Line, Inc. State Line Holding Corporation does hereby declare and
agree to the terms and conditions provided in the Income Tax Allocation
Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST State Line Holding Corporation
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FIFTY-SECOND AMENDMENT
Southern Electric International, Inc. was incorporated in 1997 and is
wholly owned by SEI Holdings, Inc. Southern Electric International, Inc. does
hereby declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST Southern Electric International, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FIFTY-THIRD AMENDMENT
SC Energy Ventures, Inc. was incorporated in 1997 and is wholly owned by
Southern Energy Retail Trading and Marketing, Inc. SC Energy Ventures, Inc. does
hereby declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST SC Energy Ventures, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FIFTY-FOURTH AMENDMENT
Southern Energy - Asia, Inc. was formed in 1996 and is wholly owned by
Southern Energy International, Inc. Southern Energy - Asia, Inc. does hereby
declare and agree to the terms and conditions provided in the Income Tax
Allocation Agreement dated December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997 and subsequent years.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST Southern Energy - Asia, Inc.
Tommy Chisholm BY: James A. Ward
<PAGE>
INCOME TAX ALLOCATION AGREEMENT
FIFTY-FIFTH AMENDMENT
Eskom Lease, Inc. was formed in 1997 and is wholly owned by Southern Energy
Finance Company, Inc. Eskom Lease, Inc. does hereby declare and agree to the
terms and conditions provided in the Income Tax Allocation Agreement dated
December 29, 1981, as amended on April 19, 1988.
Effective Date
This Agreement is effective for the Consolidated Tax reflected on the
Consolidated Tax Return for 1997.
IN WITNESS HEREOF, this Agreement has been executed, as of the 29th day of
January, 1998.
ATTEST Eskom Lease, Inc.
Tommy Chisholm BY: James A. Ward
EXHIBIT E-2
FINANCIAL SERVICES/ASSISTANCE
Energy-Saving Equipment Loans
Purpose
Southern Company's Employee Energy Express Loan Program, marketed through
Southern Development, is intended to encourage participation in product
promotion programs by providing interest-free home energy loans for the
installation of energy efficient facilities and imporovements at employees'
residences (new or existing).
Eligibility
You are eligible to participate in the Energy Loan Program is you are:
a regular full-time or regular part-time employee with at least six months
of service on long-term disability a retired employee a surviving spouse
of an active or retired employee
The financing is limited to primary homes only (no second or vacation homes) and
you must own and occupy or be purchasing the home. Manufactured homes qualify is
fermanently located on land owned by you or leased from a Southern Compnay
subsidiary.
Benefits
You may apply for a loan to pay for energy saving equipment and improvements for
your home. These interest-free loans are available for any amount from $1,500to
$15,000 and can be finance for year-long intervals from two to seven years.
Repaying the loan
You pay back your loan through bi-monthly payroll deduction. If you ar a
retiree, on LTD or a surviving spouse, your payment are remitted directly to
Southern Development via coupon.
You may pay off the balance of the loan at any time without penalty.
Responsibility
The Manager of Residential Marketing is responsible for providing energy
efficience specification to employees upon request.
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT H
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Southern Energy, Inc. (formerly SEI Holdings, Inc.) (Holdings)
(100% - The Southern Company)
<S> <C>
Southern Energy Resources, Inc. (formerly Southern Energy, Inc. (Project Development)
(100% - Holdings)
SEI Operadora de Argentina, S.A. (FUCO)
(99.99% - Southern Energy Resources, Inc.; .01% - Holdings)
Southern Electric International Asia, Inc. (Special Purpose Subsidiary - Project Development)
(100% - Southern Energy Resources, Inc.)
Southern Electric International, GmbH (Special Purpose Subsidiary
- Project Development) (100% - Southern Energy Resources, Inc.)
Asociados de Electricidad, S.A. (Intermediate Subsidiary)
(100% Holdings)
Southern Electric International, Inc. (Intermediate Subsidiary)
(100 % Holdings)
Southern Electric, Inc. (EWG)
(100% - Holdings)
Southern Energy North America, Inc. (Domestic Holdings)
(100% - Holdings)
Southern Energy Trading and Marketing, Inc. (Energy-Related Company)
(100% - Southern Energy North America, Inc.)
SC Energy Ventures, Inc. (Intermediate Subsidiary)
(100% - Southern Energy Trading and Marketing, Inc.)
Southern Company Energy Marketing L.P.
(Energy-Related Company) (59.4% - SC Energy
Ventures, Inc.; 39.6% - Domestic Corporation; 1% -
Southern Company Energy Marketing G.P., L.L.C.)
Southern Company Retail Energy Marketing L.P. (Energy-Related)
(99% - Southern Company Energy Marketing L.P.; 1% - Southern Company Energy
Marketing G.P., L.L.C.)
Southern Energy Retail Trading and Marketing, Inc. (Energy-Related Company)
(100% - Southern Energy Trading and Marketing, Inc.)
SC Ashwood Holdings, Inc. (Intermediate Subsidiary)
(100% - Southern Energy Trading and Marketing, Inc.)
Southern Company Energy Marketing G.P., L.L.C. (Intermediate Subsidiary)
(60% - SC Ashwood Holdings, Inc.; 40% - Domestic Corporation)
SEI Birchwood, Inc. (Intermediate Subsidiary)
(100% - Southern Energy North America, Inc.)
<PAGE>
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy North-America, Inc. - CONTINUED
SEI Birchwood, Inc. - CONTINUED
Birchwood Power Partners, LP (EWG)
(50% - SEI Birchwood, Inc.; 50% - Domestic Corporation)
Greenhost, Inc. (Authorized by Order of 11/20/96))
(50% - SEI Birchwood, Inc.; 50% - Domestic Corporation)
SEI Hawaiian Cogenerators, Inc. (EWG)
(100% - Southern Energy North America, Inc.)
Southern Energy-Cajun, Inc. (Intermediate Subsidiary)
(100% - Southern Energy North America, Inc.)
Louisiana Generating, LLC (Intermediate Subsidiary)
(40% - Southern Energy-Cajun, Inc.; 60% - Domestic Corporations)
SEI State Line, Inc. (Intermediate Subsidiary)
(100% - Southern Energy North America, Inc.)
State Line Holding Corporation (Intermediate Subsidiary)
(100% - SEI State Line, Inc.)
State Line Energy, L.L.C. (EWG)
(60% - SEI State Line, Inc.; 40% - State Line Holding Corporation)
Southern Energy International, Inc. (Foreign Holdings)
(100% - Holdings)
Southern Energy do Brazil Ltda. (Special Purpose Subsidiary - Project Development)
(99.85% - Southern Energy International, Inc.; .15% - Southern Energy Resources, Inc.)
Southern Energy - Asia, Inc. (Intermediate Subsidiary)
(100% - Southern Energy International, Inc.)
Consolidated Electric Power Asia Limited (Special Purpose
Subsidiary) (NOTE 1) (80.004% - Southern Energy - Asia,
Inc.; 19.996% Foreign Corporation) (NOTE 2)
Hopewell Energy International Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Hopewell Power (Philippines) Corp. (FUCO)
(87.22% - Hopewell Energy International Limited; 12.78% Foreign Company)
Hopewell Energy Limited (Intermediate Subsidiary)
(80% - Consolidated Electric Power Asia Limited; 20% Foreign Company)
Guangdong Guanghope Power Co., Ltd (FUCO)
(40% - Hopewell Energy Limited; 60% Foreign Company)
Hopewell Project Management Company Limited
(Intermediate Subsidiary) (100% - Consolidated
Electric Power Asia Limited )
<PAGE>
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Energy Asia, Inc. - CONTINUED
Consolidated Electric Power Asia Limited - CONTINUED
Hopewell Project Management Company Limited - CONTINUED
Hopewell Energy (Philippines) Corp. (FUCO)
(60.1%- Hopewell Project Management Company, Limited;
39.9% -Foreign Company)
Navotas II (BVI) Holdings Corp (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Hopewell Tileman (Philippines) Corp. (FUCO)
(100% - Navotas II Holdings Corp.)
CEPA Mobile Power Systems (BVI) (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Hopewell Mobile Power Systems Corp. (FUCO)
(100% - CEPA Mobile Power Systems (BVI) Corporation)
CEPA Services Corp. (Special Purpose Subsidiary)
(100% - Hopewell Mobile Power Systems Corp.)
CEPA Guangxi Energy Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Eastern Power Plant Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Construction (Hong Kong) Limited (Special Purpose Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Sual Construction Corporation (Special Purpose Subsidiary)
(100% - CEPA Construction Limited)
CEPA Construction Resources (BVI) (Special Purpose Subsidiary)
(100% - CEPA Construction Limited)
Consolidated Construction Resources Limited (Special Purpose Subsidiary)
(50% - CEPA Construction Limited)
HOPEC Engineering Design Limited (Special Purpose Subsidiary)
(100% - Consolidated Construction Resources Limited)
CEPA Procurement (BVI) Ltd (Intermediate Subsidiary)
(100% - CEPA Construction Limited)
CEPA Procurement (Delaware) L.L.C. (Special Purpose Subsidiary)
(51% - CEPA (BVI) Procurement Limited; 49% CEPA Sourcing Limited)
<PAGE>
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Energy Asia, Inc. - CONTINUED
Consolidated Electric Power Asia Limited - CONTINUED
CEPA Construction (Hong Kong) Limited - CONTINUED
CEPA Sourcing (BVI) Ltd (Intermediate Subsidiary)
(100% - CEPA Construction Limited)
Pagbilao Shipping Corporation (Special Purpose Subsidiary)
(100% - CEPA Construction Limited)
Montana Enterprises Limited (Special Purpose Subsidiary)
(100% Consolidated Electric Power Asia Limited)
Excellent Crown Limited (Special Purpose Subsidiary)
(100% - Montana Enterprises Limited)
CEPA Pangasinan Electric Limited (Intermediate Subsidiary)
(100% Consolidated Electric Power Asia Limited)
Pangasinan Electric Corporation (FUCO)
(100% - CEPA Pangasinan Electric Limited)
CEPA Pakistan (BVI) Limited (Intermediate Subsidiary)
(100% Consolidated Electric Power Asia Limited)
CEPA Energy Pakistan Limited (FUCO)
(100% - CEPA Pakistan Limited)
CEPA Nominee (BVI) Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Treharn Assets Limited (Special Purpose Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA India (BVI) Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Investment (Mauritius) Limited (Intermediate Subsidiary)
(100% - CEPA India (BVI) Limited)
Consolidated Electric Power Asia Limited Limited (India) Private
Limited (FUCO)
(100% - CEPA Investment (Mauritius) Limited)
Sorensen Enterprises Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
<PAGE>
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Energy Asia, Inc. - CONTINUED
Consolidated Electric Power Asia Limited - CONTINUED
CEPA Operations, (Hong Kong) Limited (Special Purpose Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Operations (Philippines) Corp. (Special Purpose Subsidiary)
(100% - CEPA Operations, Limited)
Five Stars Venture Limited (Intermediate Subsidiary)
( 16.98 % - CEPA Operations, (Hong Kong) Limited; 15.11% - CEPA
Project
Management and Engineering (BVI)Limited; 67.91% - CEPA Construction
(Hong Kong) Limited)
CEPA Project Management and Engineering (BVI) Limited (Intermediate
Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Mining and Engineering Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Marsford Investments Pte Ltd. (Intermediate Subsidiary)
(100% - beneficially owned by CEPA Mining and Engineering Limited)
Allied Queensland Coalfields, Ltd (Special Purpose Subsidiary)
(95.17% - CEPA Mining and Engineering Limited; 4.83% - Marsford
Investments Ptd Ltd))
Aberdare Colliers Pty Limited (Special Purpose Subsidiary)
(100% - Allied Queensland Coalfields Limited)
New Whitwood Collieries Pty Ltd. (Special Purpose
Subsidiary)
(100% - Aberdare Collieries Pty Ltd.)
Riverview Coal Terminal Pty Ltd. (Special Purpose
Subsidiary)
(100% - Aberdare Collieries Pty Ltd.)
AQC (Kogan Creek) Pty Limited (Special Purpose Subsidiary)
(100% - Allied Queensland Coalfields Limited)
AQC (Wilkie Creek) Pty Limited (Special Purpose
Subsidiary)
(100% - AQC (Kogan Creek) Pty Limited)
Baralaba Coal Pty Limited (Special Purpose Subsidiary)
(100% - Allied Queensland Coalfields Limited)
Lemon Grove Investment Pty Limited (Special Purpose Subsidiary)
(100% - Allied Queensland Coalfields Limited)
Tiaro Coal Pty Limited (Special Purpose Subsidiary)
(100% - Allied Queensland Coalfields Limited)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Energy Asia, Inc. - CONTINUED
Consolidated Electric Power Asia Limited - CONTINUED
Philippine Power and Infrastructure Holding Corporation (Intermediate
Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Finance Corporation (Special Purpose Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Hopewell Energy International (BVI) Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Energy International (BVI) Limited (Special Purpose Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Power China (BVI) Limited (Intermediate Subsidiary
(100% - Consolidated Electric Power Asia Limited)
CEPA Energy (BVI) Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Cachelot Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Fortune Wheels Investment Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
Carrigon Management Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Project Management (BVI) Company Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Tileman Power Systems (BVI) Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Guangxi Energy (BVI) Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
CEPA Slipform Power Systems (BVI) Limited (Intermediate Subsidiary)
(100% - Consolidated Electric Power Asia Limited)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Electric International - Europe, Inc. (Intermediate Subsidiary)
(100% - Southern Energy International, Inc.)
Southern Electric International - Netherlands, BV
(Intermediate Subsidiary) (100% - Southern Electric
International - Europe, Inc.)
Zamojska Spolka Energetycnza Sp.z.o.o. (FUCO)
(49% - Southern Electric International - Netherlands, BV; 51% Foreign
Company)
Southern Energy UK Generation Limited (Intermediate
Subsidiary) (100% - Southern Electric International -
Europe, Inc.)
Southern Energy Development - Europe Limited (Special Purpose Subsidiary - Project
Development)
(100% - Southern Electric International - Europe, Inc.)
Southern Electric International Finance, Inc. (Intermediate Subsidiary)
(100% - Southern Electric International - Europe, Inc.)
The Southern Company - Europe, plc (Intermediate
Subsidiary) (100% - Southern Electric International -
Europe, Inc.)
SWEB Holdings Limited (Intermediate Subsidiary)
(75% - Southern Electric International - Europe, Inc.; 25% - Domestic Corporation)
Southern Investment UK plc (Intermediate Subsidiary)
(100% - SWEB Holdings Limited)
South Western Electricity plc (FUCO)
(100% - Southern Investment UK plc)
SWEB Investments Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
South Western Helicopters Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
AZTEC Insurance Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Insurance Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Investments 1996 Limited (FUCO
Subsidiary) (100% - South Western
Electricity plc)
Croeso Systems Development Limited (FUCO Subsidiary)
(50% - SWEB Investments 1996 Limited)
Midlands Enterprise Fund (FUCO Subsidiary)
(26.80% - SWEB Investments 1996 Limited)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Electric International - Europe, Inc. - CONTINUED
SWEB Holdings Limited - CONTINUED
Southern Investment UK plc - CONTINUED
South Western Electricity plc - CONTINUED
SWEB Property Investments Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Property Developments Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
Temple Back Developments Limited (FUCO Subsidiary)
(49.0% - SWEB Property Developments Limited)
Weston-Super-Mare Developments Limited (FUCO
Subsidiary)
(100.0% - Temple Back Developments Limited)
South Western Power Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
South Western Power Investments Limited (FUCO
Subsidiary)
(100% - South Western Power Limited)
Teeside Power Limited (FUCO Subsidiary)
(7.7% - South Western Power Investments
Limited)
Wind Electric Limited (FUCO Subsidiary)
(11.7% - South Western Power Investments
Limited)
Wind Resources Limited (FUCO Subsidiary)
(45% - South Western Power Investments
Limited)
Carland Cross Limited (FUCO Subsidiary)
(100% - Wind Resources Limited)
Coal Clough Limited (FUCO Subsidiary)
(100% - Wind Resources Limited)
Winterton Power Limited (FUCO Subsidiary)
(25% - South Western Power Investments Limited)
Green Electron Limited (FUCO Subsidiary)
(90% - South Western Power Limited; 10% Foreign
Corporation)
SWEB Data Collection Services Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Electric International - Europe, Inc. - CONTINUED
SWEB Holdings Limited - CONTINUED
Southern Investment UK plc - CONTINUED
South Western Electricity plc - CONTINUED
Concorde House Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
Electricity Association Technology Limited (FUCO
Subsidiary)
(7.7% - South Western Electricity plc)
Non-Fossil Purchasing Agency Limited (FUCO Subsidiary)
(8.3% - South Western Electricity plc)
ElectraLink Limited (FUCO Subsidiary)
(6.19% - South Western Electricity plc)
South Western Energy Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
South Western Natural Gas Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Finance Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Gas Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
REC Collect Limited (FUCO Subsidiary)
(25% - South Western Electricity plc)
South Western Electricity Share Scheme Trustees Limited
(FUCO Subsidiary)
(100% - South Western Electricity plc)
Electricity Pensions Trustee Limited (FUCO Subsidiary)
(Limited by Guarantee - South Western Electricity plc)
St. Clements Services Limited (FUCO Subsidiary)
(9.1% - South Western Electricity plc)
Electricity Pension Limited (FUCO Subsidiary)
(5% - South Western Electricity plc)
ESN Holdings Limited (FUCO Subsidiary)
(4.5% - South Western Electricity plc)
Electricity Association Limited (FUCO Subsidiary)
(5.9% - South Western Electricity plc)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Electric International - Europe, Inc. - CONTINUED
SWEB Holdings Limited - CONTINUED
Southern Investment UK plc - CONTINUED
South Western Electricity plc - CONTINUED
Northmere Limited (FUCO Subsidiary)
(Limited by Guarantee - South Western Electricity plc)
South West Enterprise Limited (FUCO Subsidiary)
(Limited by Guarantee - South Western Electricity plc)
SWEB Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Retail Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Natural Gas Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Pension Trustee Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
SWEB Telecom Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
UK Data Collection Service Limited (FUCO Subsidiary)
(8.33% - South Western Electricity plc)
Western Natural Gas Limited (FUCO Subsidiary)
(100% - South Western Electricity plc)
Southern Energy - Newco2, Inc. (Intermediate Subsidiary)
(100% - Southern Energy International, Inc.)
SEI Chile, SA (Intermediate Subsidiary) (100% - Southern
Energy - Newco2, Inc.)
Inversiones SEI Chile Limitada (Intermediate
Subsidiary) (99% - SEI Chile, SA; 1% - Holdings)
Energia del Pacifico, SA (Intermediate Subsidiary)
(99.9% - SEI Chile, SA, .1% - Southern Energy
International, Inc.)
Electrica SEI Chile Limitada (Intermediate
Subsidiary) (97.05% - SEI Chile, SA; 1% - Holdings)
Empressa Electrica del Norte Grande, SA (FUCO)
(26.63% - Inversiones SEI Chile Limitada; 38.35% - Electrica SEI
Chile Limitada; 10.67% - Foreign Government; 24.35% - Natural
Persons)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
Southern Energy - Newco2, Inc. - CONTINUED
Electrica SEI Chile Limitada - CONTINUED
Empressa Electrica del Norte Grande, SA - CONTINUED
Sitranor, SA (FUCO Subsidiary) (60% -
Empressa Electrica del Norte Grande,
SA; 40% - Foreign Government)
Southern Electric Bahamas Holdings, Limited (Intermediate
Subsidiary) (100% - Southern Energy - Newco2, Inc.)
Southern Electric Bahamas, Ltd (Intermediate Subsidiary)
(100% - Southern Electric Bahamas Holdings, Limited)
ICD Utilities Limited (Intermediate Subsidiary)
(25% - Southern Electric Bahamas, Ltd; 75% - Foreign Company)
Freeport Power Company Limited (FUCO)
(62.5% - Southern Electric Bahamas, Ltd; 37.5% - Third Party)
SEI Beteilligungs, GmbH (Intermediate Subsidiary) (100% -
Southern Energy - Newco2, Inc.)
P.T. Tarahan Power Company (FUCO)
(55% - SEI Beteilligungs, GmbH; 2.5% - Domestic Corporation;
42.5% - Foreign Company)
Cayman Energy Traders (Intermediate Subsidiary)
(51% - Southern Energy International, Inc.; 49% - Domestic Corporation)
Southern Electric do Brasil Participacoes, Limitada (Intermediate Subsidiary)
(90.6% - Cayman Energy Traders; 9.4% - Foreign Pension Fund)
Companhia Energetica de Minas Gerais (CEMIG) (FUCO)
(33% - Cayman Energy Traders; 51% - Foreign Government; 16% - General Public)
Southern Energy E Associados Particpacoes, S.A. (Intermediate Subsidiary)
(100% - Southern Energy International, Inc.)
SEI Germany - BEWAG, Inc. (Intermediate Subsidiary)
(100% - Southern Energy International, Inc.)
SEI Worldwide Holdings, Inc.. (Intermediate Subsidiary)
(100% - Southern Energy International, Inc.)
SEI Worldwide Holdings (Germany) GmbH (Intermediate
Subsidiary) (50% - SEI Germany - BEWAG, Inc.; 50% - SEI
Worldwide Holdings, Inc.)
Southern Energy Holding Beteiligungsgesellschaft GmbH (Intermediate
Subsidiary)
(100% - SEI Worldwide Holdings (Germany) GmbH)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy International, Inc. - CONTINUED
SEI Worldwide Holdings, Inc. - CONTINUED
SEI Worldwide Holdings (Germany) GmbH - CONTINUED
Southern Energy Holding Beteiligungsgesellschaft GmbH - CONTINUED
BEWAG ( FUCO)
(26% - Southern Energy Holding Beteiligungsgesellschaft GmbH, )
SEI y Asociados de Argentina, S.A. (Intermediate Subsidiary)
(45.79% - SEI Worldwide Holdings GmbH; 7.14%- Asociados de Electricidad,
S.A.;
40.52% - Holdings: 5.55% - Foreign Corporation; 1% - Domestic Company)
Hidroelectrica Alicura, S.A. (FUCO)
(59% - SEI y Asociados de Argentina, S.A.; 41% - Foreign Government)
Southern Electric International Trinidad, Inc. (EWG)
(100% - Southern Energy International, Inc.)
The Power Generation Company of Trinidad & Tobago Limited (EWG)
(39% - Southern Electric International Trinidad, Inc.; 51% - Foreign Government;
10% - Domestic Corporation)
Southern Energy Finance Company, Inc. (Intermediate Subsidiary)
(100% Holdings)
EPZ Lease, Inc. (Intermediate Subsidiary)
(100% Southern Energy Finance Company, Inc.)
EPZ Lease, LLC (Intermediate Subsidiary)
(99% EPZ Lease, Inc.; 1% Southern Energy Finance Company, Inc.)
EPZ Lease Holding A, LLC (Intermediate Subsidiary)
(99% EPZ Lease, LLC; 1% EPZ Lease, Inc.)
EPZ Lease Trust A (FUCO)
(100% - EPZ Lease Holding A, LLC {Beneficial Interest})
EPZ Lease Holding B, LLC (Intermediate Subsidiary)
(99% EPZ Lease, LLC; 1% EPZ Lease, Inc.)
EPZ Lease Trust B (FUCO)
(100% - EPZ Lease Holding B, LLC {Beneficial Interest})
EPZ Lease Holding C, LLC (Intermediate Subsidiary)
(99% EPZ Lease, LLC; 1% EPZ Lease, Inc.)
EPZ Lease Trust C (FUCO)
(100% - EPZ Lease Holding C, LLC {Beneficial Interest})
Southern Energy Clairton, Inc. (Intermediate Subsidiary)
(100% - Southern Energy Finance Company, Inc.)
EXHIBIT H - ORGANIZATION CHART - SOUTHERN ENERGY UMBRELLA COMPANIES
Holdings - CONTINUED
Southern Energy Finance Company, Inc. - CONTINUED
Southern Energy Clairton, Inc. - CONTINUED
Southern Energy Clairton, L.L.C. (Intermediate Subsidiary)
(85% - Southern Energy Clairton, Inc.; 15% Southern Energy Clairton2, Inc.)
Clairton 1314 B Partnership, L.P. (Rule 58 Energy-Related Company)
(27% - Southern Energy Clairton, L.L.C.; 73% - Domestic Corporations)
Southern Energy Clairton2, Inc.(Intermediate Subsidiary) (100% -
Southern Energy Finance Company, Inc.)
Southern Company Capital Funding, Inc. (Intermediate Subsidiary)
(100% - Holdings)
Southern Company Capital Trust I (Special Purpose Subsidiary)
(100% - Southern Company Capital Funding, Inc.)
Southern Company Capital Trust II (Special Purpose Subsidiary)
(100% - Southern Company Capital Funding, Inc.)
Southern Company Capital Trust III (Special Purpose Subsidiary)
(100% - Southern Company Capital Funding, Inc.)
Mobile Energy Services Holdings, Inc. (Intermediate Subsidiary)
(100% - The Southern Company)
Mobile Energy Services Company, L.L.C. (Public Utility)
(99% - Mobile Energy Services Holdings, Inc.; 1% - Southern Energy Resources, Inc.)
Energia de Neuvo Leon, SA De CV (FUCO)
(33 1/3% - The Southern Company; 33 1/3% Foreign Corporations; 33 1/3% - Foreign
Government)
Footnotes:
NOTE 1 - The organization chart above that includes the subsidiaries of
Consolidated Electric Power Asia Limited is updated annually as of December 31.
NOTE 2 - Certain of CEPA's holdings in the Philippines were reorganized through
a series of agreements which were dated and executed on or before December 31,
1997. However, these agreements are awaiting the approval of certain
governmental authorities in the Philippines and are not yet effective.
</TABLE>
