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SO · SOUTHERN CO

33 filings

10-K

SO 10-K Annual Reports

SOUTHERN CO - 33 annual reports

Filing record · 2016–202610-K1110-Q328-K206

2025
SOUTHERN CO Annual Report, Year Ended Dec 31, 2025
Southern Company (SO) reported its fiscal year 2025 results, highlighting consistent operational performance across its electric and gas utility segments. The company's traditional electric operating companies (Alabama Power, Georgia Power, Mississippi Power) saw increased retail electric revenues driven by rate adjustments and customer growth, including significant new demand from data centers. Southern Power continues to expand its generation assets, particularly in renewable energy, and reported higher wholesale electric revenues due to increased energy prices and volumes. Southern Company Gas experienced revenue growth driven by base rate increases in its gas distribution operations, despite higher natural gas costs. The company's overall net income saw a slight decrease compared to the prior year, primarily due to increased depreciation, interest expenses, and higher operating and maintenance costs, partially offset by revenue growth. Significant capital expenditures are planned for infrastructure upgrades and new generation capacity to meet projected demand.
Feb 19, 2026
2024
SOUTHERN CO Annual Report, Year Ended Dec 31, 2024
Southern Company (SO) reported strong financial performance for the fiscal year ending December 30, 2024, with consolidated net income attributable to Southern Company increasing by 10.7% to $4.4 billion, and diluted Earnings Per Share (EPS) reaching $3.99. This growth was primarily driven by higher retail electric revenues, attributed to rate adjustments and favorable weather impacts, coupled with increased natural gas revenues stemming from rate hikes. The company also noted an increase in other revenues across its business segments. Despite increases in non-fuel operations and maintenance expenses, income tax, interest expense, depreciation, and other taxes, the overall financial health of the company remains robust. Southern Company continues to invest heavily in its construction programs, with an estimated $14.8 billion allocated for 2025 across its system, focusing on new generation, environmental compliance, generation maintenance, and transmission/distribution infrastructure. Southern Power is expanding its renewable energy portfolio with projects like Millers Branch solar and Kay Wind repowering, while Southern Company Gas is advancing its natural gas distribution network improvements. The company maintained its commitment to shareholder returns, paying dividends of $2.86 per share in 2024, with a dividend payout ratio of 71%. The company's regulatory environment remains a key factor, with ongoing discussions and approvals from state Public Service Commissions impacting rate structures and cost recovery mechanisms.
Feb 20, 2025
2023
SOUTHERN CO Annual Report, Year Ended Dec 31, 2023
Southern Company (SO) operates as a holding company with diversified energy services, primarily through its regulated electric utilities (Alabama Power, Georgia Power, Mississippi Power) and its natural gas distribution segment (Southern Company Gas). The company reported a consolidated net income of $4.0 billion in 2023, an increase of 12.8% from the previous year, driven by lower non-fuel operating expenses, improved retail electric revenues due to rate increases, and reduced income tax expenses. Key drivers for this performance included rate adjustments at Alabama Power and Georgia Power, while Southern Company Gas saw increased net income primarily due to a prior year impairment charge. Southern Company continues to invest significantly in its construction programs, with an estimated $10 billion allocated for 2024 across new generation, environmental compliance, and infrastructure upgrades. A major focus remains the completion of Plant Vogtle Unit 4, with projected in-service dates during the second quarter of 2024. The company also highlighted its ongoing commitment to reducing GHG emissions, with an intermediate goal of a 50% reduction from 2007 levels by 2030 and a long-term goal of net zero by 2050, supported by investments in low-carbon and carbon-free resources.
Feb 15, 2024
2022
SOUTHERN CO Annual Report, Year Ended Dec 31, 2022
Southern Company (SO) reported strong financial performance in its 2022 10-K filing. The company, a major energy provider in the Southeast, saw a significant increase in net income attributable to Southern Company, reaching $3.5 billion, up from $2.39 billion in 2021. This growth was primarily driven by a substantial decrease in after-tax charges related to the ongoing construction of Plant Vogtle Units 3 and 4, coupled with higher retail electric revenues, warmer weather, and sales growth across its regulated utility operations. Southern Company Gas also contributed positively, with net income increasing due to rate adjustments and infrastructure investments. Southern Company is strategically focused on modernizing its infrastructure and transitioning its generation fleet, with significant capital expenditures planned for new generation, environmental compliance, and transmission and distribution improvements. The company's diverse business segments, including traditional electric utilities, Southern Power (wholesale electricity), and Southern Company Gas (natural gas distribution), provide a stable and integrated energy platform. Despite facing regulatory, operational, and financial risks common to the utility sector, including ongoing investments in large-scale projects like Plant Vogtle, Southern Company demonstrated resilience and solid operational execution throughout 2022.
Feb 16, 2023
2021
SOUTHERN CO Annual Report, Year Ended Dec 31, 2021
Southern Company (SO) reported its annual results for the period ending December 30, 2021. The company, a major energy provider in the Southeast, operates through its traditional electric operating companies (Alabama Power, Georgia Power, Mississippi Power), Southern Power (wholesale electricity sales), and Southern Company Gas (natural gas distribution). The company's report details its business operations, financial condition, and future outlook, highlighting the impact of capital expenditures, regulatory environments, and ongoing construction projects, most notably Plant Vogtle Units 3 and 4. Investors should note the company's diversified energy portfolio, its significant investments in infrastructure, and its commitment to environmental sustainability goals. The company's performance reflects the ongoing recovery and growth within its service territories. Key financial drivers include retail and wholesale electricity sales, natural gas distribution, and complementary energy services. While the report highlights strategic initiatives and capital allocation, it also underscores the inherent risks associated with regulatory changes, environmental compliance, and large-scale construction projects, which are critical factors for investors to consider.
Feb 17, 2022
2020
SOUTHERN CO Annual Report, Year Ended Dec 31, 2020
Southern Company's (SO) 2020 10-K filing reveals a stable financial performance despite a decrease in net income primarily due to the prior year's gain on the sale of Gulf Power. The company's diverse operations in electricity generation and distribution, as well as natural gas distribution, demonstrate resilience. Key operational areas include traditional electric utilities (Alabama Power, Georgia Power, Mississippi Power), Southern Power (wholesale electricity), and Southern Company Gas (natural gas distribution). Significant ongoing investments are noted in construction programs, particularly the Plant Vogtle Units 3 and 4 project, which continues to face challenges related to cost and schedule. The company is actively managing its capital structure and exploring strategic opportunities. Investors should note the company's commitment to environmental sustainability and its ongoing adaptation to evolving regulatory landscapes and energy technologies. Financially, the company maintained adequate access to capital throughout 2020. Despite economic disruptions caused by the COVID-19 pandemic, which impacted customer demand and temporarily suspended disconnections for non-payment, Southern Company's essential services remained operational. The company's long-term strategy focuses on delivering reliable and affordable energy while advancing its environmental, social, and governance goals, including a commitment to net-zero emissions by 2050. The report highlights prudent management of operational risks and a forward-looking approach to energy infrastructure development.
Feb 18, 2021
2019
SOUTHERN CO Annual Report, Year Ended Dec 31, 2019
Southern Company (SO) operates as a major energy company, primarily focused on the generation, transmission, and distribution of electricity and natural gas. In 2019, the company completed the sale of Gulf Power, which impacted its reported revenues but strengthened its financial position. The company's operations are segmented into its traditional electric utilities (Alabama Power, Georgia Power, Mississippi Power), Southern Power (wholesale electricity sales), and Southern Company Gas (natural gas distribution). Key ongoing activities include significant capital investments in construction programs, particularly for new generation assets and infrastructure upgrades, with a substantial portion allocated to Georgia Power's Plant Vogtle Units 3 and 4. The company also remains focused on environmental compliance and sustainability initiatives. Southern Company's financial performance in 2019 was significantly bolstered by the gain on the sale of Gulf Power, leading to a substantial increase in net income and improved earnings per share compared to the previous year. The company's diversified business segments provide a degree of resilience, with regulated utility operations providing a stable revenue base, while Southern Power engages in the competitive wholesale market. Investors should note the ongoing capital expenditure requirements and the company's reliance on regulatory approvals for cost recovery, which are critical factors for future performance.
Feb 20, 2020
2018
SOUTHERN CO Annual Report, Year Ended Dec 31, 2018
Southern Company (SO) reported its 2018 annual results, highlighting a significant increase in consolidated net income to $2.2 billion, largely driven by the absence of major charges incurred in 2017 related to the Kemper IGCC project. However, this was partially offset by a $1.1 billion charge in 2018 for the ongoing Plant Vogtle Units 3 & 4 construction. The company also completed several significant divestitures in 2018, including the sale of Gulf Power for approximately $5.8 billion and the sale of three natural gas distribution utilities by Southern Company Gas for approximately $2.3 billion. Southern Power also divested non-controlling interests in its solar and wind facilities, generating approximately $2.4 billion in proceeds. These strategic moves indicate a focus on portfolio optimization and debt reduction. The company continues to navigate a complex regulatory environment, with significant capital expenditures planned for construction programs, including the ongoing Plant Vogtle nuclear project, and compliance with environmental regulations.
Feb 20, 2019
2017
SOUTHERN CO Annual Report, Year Ended Dec 31, 2017
Southern Company's (SO) 2017 10-K filing details a complex operational landscape, including significant impacts from the Kemper County energy facility charges which led to a substantial net income decrease. The company experienced growth in its natural gas segment following the merger with Southern Company Gas. Key strategic focuses for the year included managing construction programs, particularly the ongoing development of Plant Vogtle Units 3 and 4, and navigating evolving environmental regulations. Southern Company highlighted its commitment to operational efficiency and customer satisfaction while also noting risks associated with regulatory changes, construction delays, and market volatility.
Feb 21, 2018
2016
SOUTHERN CO Annual Report, Year Ended Dec 31, 2016
Southern Company (SO) filed its 2016 10-K report on February 22, 2017, detailing its operations and financial performance for the year ending December 30, 2016. The report highlights the company's significant strategic move with the completion of the merger with Southern Company Gas in July 2016, consolidating its position as a major energy provider across both electric and natural gas sectors. SO's traditional electric utilities continue to serve customers across Alabama, Georgia, Florida, and Mississippi, while Southern Power focuses on wholesale electricity sales from various generation assets. Southern Company Gas, now a wholly-owned subsidiary, is a key player in natural gas distribution across seven states, complemented by marketing, wholesale, and midstream operations. The company's financial performance in 2016 showed an increase in consolidated net income attributable to Southern Company, driven by earnings from the newly acquired Southern Company Gas, higher retail electric revenues, and favorable weather. However, this was partially offset by increased interest expenses and higher non-fuel operations and maintenance costs. Investors should note the ongoing construction of major projects like Plant Vogtle Units 3 and 4 and the Kemper IGCC, which represent significant capital investments and potential future rate recovery complexities. The company's financial health remains supported by access to capital markets and strong credit arrangements, though subject to the ongoing influence of regulatory environments and evolving environmental standards.
Feb 22, 2017
2015
SOUTHERN CO Annual Report, Year Ended Dec 31, 2015
Southern Company (SO) operates as a holding company with its primary business focused on electricity sales through its four traditional operating companies and Southern Power Company. The filing details the company's diverse operations, including generation, transmission, and distribution of electricity across Alabama, Georgia, Florida, and Mississippi. Southern Power specifically engages in wholesale electricity sales at market-based rates, with a growing portfolio of renewable energy projects. A significant development highlighted is Southern Company's August 2015 merger agreement to acquire AGL Resources, a natural gas distribution company, a move that will expand its energy services footprint into the natural gas sector. The report also details ongoing construction programs, including the significant investments in Plant Vogtle Units 3 and 4 and the Kemper IGCC project, which present both opportunities and risks related to cost overruns and regulatory approvals. The company's financial performance in 2015 showed an increase in net income compared to the previous year, primarily driven by rate increases at its operating companies and a reduction in charges related to the Kemper IGCC project.
Feb 26, 2016
2014
SOUTHERN CO Annual Report, Year Ended Dec 31, 2014
Southern Company (SO) operates as a major utility company, providing electricity to millions of customers across the Southeastern United States. The company's diverse operations include regulated utilities in Alabama, Georgia, Florida, and Mississippi, as well as a competitive wholesale generation subsidiary, Southern Power. The company's 2014 annual report highlights significant investments in construction programs, with substantial capital expenditures planned for new generation, environmental compliance, generation maintenance, transmission, and distribution upgrades. A key focus for Southern Company is managing the costs and timelines of its major construction projects, notably the development of Plant Vogtle Units 3 and 4 and the Kemper IGCC, which represent substantial capital commitments and potential risks. The company's financial performance in 2014 was impacted by charges related to the Kemper IGCC project, but it also saw increases in retail revenues due to base rate adjustments and favorable weather conditions. Southern Company remains committed to its dividend payments, with a history of consistent payouts to shareholders.
Mar 2, 2015
2013
SOUTHERN CO Annual Report, Year Ended Dec 31, 2013
Southern Company (SO) operates as a prominent utility, providing electric services across Alabama, Georgia, Florida, and Mississippi through its four primary operating subsidiaries: Alabama Power, Georgia Power, Gulf Power, and Mississippi Power. The company also engages in wholesale electricity sales and generation asset management through Southern Power Company, and has diversified interests in telecommunications and leveraged leases. For the fiscal year ending December 30, 2013, Southern Company reported a net income of $1.6 billion, a decrease of 30% from the previous year, largely attributed to significant pre-tax charges of $1.2 billion related to cost revisions for the Kemper IGCC project. Despite this, the company maintained a stable financial condition. Key operational highlights included better-than-target peak season plant availability for fossil/hydro plants and improved transmission/distribution system reliability. However, earnings per share (EPS) on a GAAP basis did not meet targets due to the Kemper IGCC charges. The company also continued its significant construction program, with major investments in Plant Vogtle Units 3 and 4 and the Kemper IGCC, subject to various risks including cost overruns and delays.
Feb 27, 2014
2012
SOUTHERN CO Annual Report, Year Ended Dec 31, 2012
Southern Company (SO) is a diversified energy company with its primary operations in electricity sales across four Southeastern states: Alabama, Georgia, Florida, and Mississippi. The company's business model is characterized by vertically integrated operating companies and a wholesale generation subsidiary, Southern Power. In 2012, the company reported a net income of $2.35 billion, an increase of 6.7% from the prior year, driven by lower operations and maintenance expenses and increases in revenues from rate adjustments at its subsidiaries. Key strategic initiatives include managing increasing costs related to environmental standards, capital expenditures for new plants, and storm restoration, while maintaining a constructive regulatory environment to ensure timely cost recovery. Southern Power continues to grow its wholesale business through acquisitions and construction of new power plants, including renewable energy projects. Significant ongoing projects include the construction of Plant Vogtle Units 3 and 4 (nuclear) and the Kemper IGCC facility, both of which represent substantial capital investments and are subject to regulatory oversight and potential cost overruns. The company also highlighted its commitment to shareholder returns through consistent dividend payments and a targeted payout ratio of 70% to 75% of net income. Despite the substantial capital expenditures and ongoing regulatory and environmental challenges, Southern Company's financial performance in 2012 showed resilience.
Feb 28, 2013
2011
SOUTHERN CO Annual Report, Year Ended Dec 31, 2011
Southern Company (SO) reported its fiscal year 2011 results, showcasing a net income increase of $228 million compared to the prior year, primarily driven by Georgia Power's higher retail base revenues under its Alternative Rate Plan and the recovery of financing costs through its Nuclear Construction Cost Recovery tariff. Southern Power also contributed with increased energy and capacity revenues. The company highlighted key performance indicators, including system customer satisfaction in the top quartile and a favorable Peak Season System Equivalent Forced Outage Rate (EFOR) for its fossil/hydro plants. Basic Earnings Per Share (EPS) for 2011 was $2.57, an increase from $2.37 in 2010, with a targeted dividend payout ratio of approximately 70% of net income, which was achieved at 73% for 2011. Significant construction programs are underway, notably Plant Vogtle Units 3 and 4 and the Kemper IGCC facility, which will contribute to future generation capacity. The company also faces considerable capital expenditure needs for environmental compliance with evolving regulations, such as the MATS rule, which could range from $13 billion to $18 billion through 2021. Southern Company's financial health remains stable, supported by access to capital markets and ongoing operational efficiencies.
Feb 24, 2012
2010
SOUTHERN CO Annual Report, Year Ended Dec 31, 2010
Southern Company's 2010 Form 10-K (filed February 25, 2011) reports a stable year driven by weather-related demand, with consolidated net income after preferred dividends of $1.975 billion, up from $1.643 billion in 2009, and basic EPS of $2.37 versus $2.07. Revenue rose to $17.5 billion from $15.7 billion, reflecting colder first and fourth quarters, warmer second and third quarters, and higher industrial sales. The company paid a quarterly dividend of 45.50 cents, and its payout ratio reached 76% against a targeted 70%. The filing highlights a heavy capital program: base construction spending of roughly $4.9 billion in 2011, $5.1 billion in 2012, and $4.5 billion in 2013, driven by Plant Vogtle Units 3 and 4 (nuclear), the Kemper IGCC in Mississippi, Southern Power's gas and biomass projects, and environmental retrofits. Management flags material regulatory and environmental risks, including potential EPA rules on greenhouse gases, coal ash, and mercury (MACT) that could force unit retirements, an EPA New Source Review lawsuit against Alabama Power, and cost-cap and approval uncertainty for Kemper. Moody's downgraded Southern Company to Baa1 in August 2010, and the company's credit-rating sensitivity is a stated risk. For investors, the key takeaways are solid earnings growth and a dividend that exceeds the stated payout target, offset by rising capital needs, a potentially costly environmental compliance path, and project execution risk on new generation.
Feb 25, 2011
2009
SOUTHERN CO Annual Report, Year Ended Dec 31, 2009
Southern Company (SO) reported its 2009 annual results in this 10-K filed February 25, 2010. The Company is a holding company whose primary business is electricity sales in the Southeast through four traditional operating companies (Alabama Power, Georgia Power, Gulf Power, Mississippi Power) and Southern Power, a wholesale generation subsidiary. Net income after preferred dividends was $1.64 billion in 2009, down $99 million from 2008, and basic EPS was $2.07 versus $2.26 a year earlier. The decline was driven largely by a $202 million charge to settle litigation with MC Asset Recovery (tied to the Mirant bankruptcy), lower kilowatt-hour demand from the recession, and unfavorable weather. Excluding the settlement, EPS was $2.32. The dividend payout ratio was 83.3% for 2009 (74.2% excluding the settlement), above the company's stated 65%-70% target, and the 2009 dividend was $1.7325 per share. The filing highlights substantial forward capital spending: the construction program is estimated at $4.9 billion in 2010, $5.3 billion in 2011, and $6.2 billion in 2012, including new nuclear units at Plant Vogtle, the proposed Kemper County IGCC plant, and environmental controls. Georgia Power's Vogtle 3 and 4 project was certified at a $6.4 billion in-service cost, and the DOE offered a conditional loan guarantee of roughly $3.4 billion. Key risks include EPA New Source Review litigation, pending federal greenhouse gas and coal combustion byproduct regulation, rising pension and medical costs, and dependence on regulatory recovery of fuel and storm costs. Credit ratings remained investment grade, with Moody's revising Southern Company's outlook to negative in September 2009. For investors, the key tradeoff is a stable, regulated earnings base and a long dividend record (249th consecutive quarterly dividend declared in January 2010) against elevated capital needs, a payout ratio above target, and meaningful environmental and nuclear-construction risk.
Feb 25, 2010
2008
SOUTHERN CO Annual Report, Year Ended Dec 31, 2008
Southern Company's 2008 Form 10-K (filed February 25, 2009) reports consolidated net income of $1.74 billion, essentially flat versus 2007 ($1.73 billion), with basic EPS of $2.26 (diluted $2.25) versus $2.29 (diluted $2.28) in 2007. Results were pressured by milder summer weather, higher non-fuel O&M and depreciation, and a $83 million after-tax charge (11 cents per share) for settling the IRS SILO leveraged lease litigation. Excluding that charge, EPS was $2.37 against a $2.37 target, and the company points to retail rate increases under Alabama's Rate RSE and Georgia's 2007 Retail Rate Plan as supporting growth. Retail energy sales fell 2.1% as the economy weakened, with industrial sales down 3.7%, and fuel and purchased power costs rose 20% to $7.6 billion, though fuel costs are largely passed through to customers. The company faces a large construction and regulatory agenda: a 2009 construction budget of about $5.7 billion, including $1.4 billion of environmental spending, plus proposed new nuclear units at Plant Vogtle 3 and 4 (Georgia Power's share about $6.4 billion, with in-service targets of 2016 and 2017), and the proposed $2.2 billion Kemper County IGCC plant. Major overhangs include EPA New Source Review litigation, the Mirant bankruptcy-related MC Asset Recovery suit seeking over $2 billion (partially resolved in early 2009), carbon dioxide nuisance suits, and FERC market-power proceedings. Dividends rose to $1.6625 per share in 2008, and the company has increased its quarterly dividend for 245 consecutive quarters, with a stated payout target of 65% to 70% (actual 2008 payout was 73.5%). For investors, the central themes are steady regulated earnings and dividend growth, offset by a heavy capital program, rising fuel and environmental costs, a weak near-term sales outlook, and significant legal and regulatory uncertainty.
Feb 25, 2009
2007
SOUTHERN CO Annual Report, Year Ended Dec 31, 2007
Southern Company's 2007 Form 10-K (filed February 25, 2008) reports net income of $1.73 billion, up 10.2% from $1.57 billion in 2006, with basic EPS of $2.29 (diluted $2.28) versus $2.12 a year earlier. The increase was driven mainly by a warm summer and favorable state regulatory actions, partly offset by higher non-fuel O&M, interest expense, and depreciation tied to environmental and reliability investments. Excluding synthetic fuel earnings, EPS was $2.21. Operating revenues rose to $15.35 billion, and the company ended 2007 with $45.8 billion in total assets. The company faces a sizable and rising capital and regulatory agenda. The construction program is estimated at $4.5 billion for 2008, $4.8 billion for 2009, and $4.3 billion for 2010, including roughly $1.8 billion of environmental spending in 2008. Georgia Power's 2007 Retail Rate Plan adds base rate and environmental cost recovery increases effective January 2008, and the Kemper County IGCC project and new nuclear options are in development. Key risks include the EPA New Source Review suits against Alabama Power and Georgia Power, the Mirant-related litigation seeking over $2 billion from MC Asset Recovery, IRS challenges to roughly $330 million of SILO tax benefits, and a FERC generation-dominance proceeding with potential refunds of up to $19.7 million. The company also took a $17.6 million pre-tax loss (about $10.7 million after tax) at Southern Power from canceling the gasifier portion of the Orlando IGCC project, and its synthetic fuel investments ended December 31, 2007. The dividend was raised to $1.595 per share for 2007, with a 40.25-cent quarterly rate in 2008. The payout ratio was 69.5% overall and 72% excluding synthetic fuel earnings, against a targeted ~70%. Management reports a stable financial condition, operating cash flow of $3.4 billion, and investment-grade ratings across the system.
Feb 25, 2008
2006
SOUTHERN CO Annual Report, Year Ended Dec 31, 2006
Southern Company (SO) operates as a major energy provider in the Southeastern United States, with its primary business segments being electricity sales through its traditional operating companies (Alabama Power, Georgia Power, Gulf Power, and Mississippi Power) and its wholesale generation subsidiary, Southern Power. As of December 30, 2006, Southern Power had significantly expanded its capacity to 6,733 megawatts, focusing on long-term, fixed-price capacity contracts to mitigate fuel and transmission risks. The company's diversified operations also include investments in telecommunications, energy-related services, and other ventures, though these contribute less to overall earnings and carry higher risks. The company's traditional operating utilities faced regulatory environments that allowed for cost recovery through fuel adjustment clauses and other provisions, providing a degree of earnings stability. However, the business remains subject to substantial governmental regulation, including environmental compliance costs, which are significant and expected to increase. Southern Company's construction programs are substantial, with significant capital expenditures planned for new generation, environmental upgrades, and infrastructure improvements across its service territories.
Feb 27, 2007
2005-A2
SOUTHERN CO Annual Report (Amendment), Year Ended Dec 31, 2005
This 10-K/A filing from Southern Company, dated March 16, 2006, primarily serves to include previously omitted Sarbanes-Oxley Act (SOX) certifications from its Chief Executive Officer and Chief Financial Officer. The report covers the fiscal year ended December 31, 2005. As Southern Company is identified as a large accelerated filer, investors can consider this a standard amendment to ensure compliance with regulatory requirements rather than an indication of new operational or financial developments. The filing confirms that the company is not a shell company and has filed all required reports for the preceding 12 months. For investors, the key takeaway is the administrative nature of this amendment, which reinforces the company's commitment to financial transparency and regulatory compliance. The aggregate market value of common stock held by non-affiliates was substantial at $25.9 billion as of June 30, 2005, indicating a significant market presence. The company's common stock and other securities are listed on the New York Stock Exchange, providing liquidity for investors.
Mar 17, 2006
2005-A
SOUTHERN CO Annual Report (Amendment), Year Ended Dec 31, 2005
Southern Company's 2005 Annual Report highlights a period of financial strength with net income of $1.59 billion, an increase of 3.8% from the prior year. The company experienced growth in both retail and wholesale electricity sales, driven by a recovering economy and new power purchase agreements. Despite facing challenges such as rising fuel costs and significant storm restoration expenses (particularly from Hurricanes Katrina and Dennis), Southern Company demonstrated resilience through effective cost management and regulatory approvals for cost recovery. Key strategic initiatives include investments in new generation capacity and a continued evaluation of its diverse business portfolio, which encompasses regulated utilities, competitive wholesale generation, synthetic fuels, and other energy-related services. The company maintains a strong commitment to shareholder returns, evidenced by consistent dividend payments and a focus on earnings per share growth. Regulatory matters, particularly those related to environmental compliance and rate recovery, remain a significant area of focus, with substantial capital expenditures planned for environmental upgrades over the next decade.
Mar 2, 2006
2005
SOUTHERN CO Annual Report, Year Ended Dec 31, 2005
The Southern Company's 2005 Form 10-K, filed February 27, 2006, is a combined filing covering the parent and six operating subsidiaries (Alabama Power, Georgia Power, Gulf Power, Mississippi Power, Savannah Electric, and Southern Power). Southern Company reported 2005 net income of $1.59 billion, up 3.8% from $1.53 billion in 2004, with basic EPS of $2.14 versus $2.07, beating its $2.04–$2.09 target. Operating revenues rose to $13.55 billion (up about 15.6%), driven by higher fuel costs passed through to customers and base-rate increases in Georgia. The dividend was $1.475 per share for 2005, and the payout ratio was 69% overall and 73% excluding synthetic fuel earnings, against a target of about 70%. The filing highlights several areas of risk for investors. Mirant's bankruptcy trustees and creditors filed a suit seeking more than $2 billion in damages from Southern Company over alleged fraudulent transfers, which management says lacks merit. The EPA's New Source Review enforcement actions against Alabama Power, Georgia Power, and Savannah Electric remain unresolved. Hurricanes Ivan, Dennis, and Katrina left storm-reserve deficits of about $366 million, and Mississippi Power alone estimates about $277 million in net Katrina costs. Fuel under-recoveries and the IRS challenge to SILO leases add further exposure. Management also disclosed the planned merger of Savannah Electric into Georgia Power, expected by July 2006, and the sale of Southern Company Gas to Gas South for about $127 million. The Public Utility Holding Company Act was repealed effective February 8, 2006.
Feb 27, 2006
2004
SOUTHERN CO Annual Report, Year Ended Dec 31, 2004
Southern Company's 2004 Form 10-K (filed March 1, 2005, though management's report is dated February 28, 2005) covers a combined filing for the holding company and its seven operating subsidiaries. The parent reported record 2004 net income of $1.53 billion, up 3.9% from 2003, with basic EPS of $2.07 and a 15.4% return on equity against a 14.5% target. Electric operating revenues rose 6.7% to $11.5 billion, driven by retail sales growth of 3.6% and a 12.7% rise in average unit fuel cost, while operating income grew modestly. The company's core businesses are six retail and wholesale utilities serving roughly 4 million customers across the Southeast, with Southern Power operating about 4,775 MW of market-based generation under long-term contracts. The main investor concerns are regulatory and environmental. FERC is examining Southern Company's generation dominance within its own retail territory, and new market-based sales there face refund risk. The EPA's New Source Review civil actions against Alabama Power, Georgia Power and Savannah Electric remain pending, and a carbon dioxide nuisance suit names Southern Company. Fuel cost pressure is also building: Georgia Power's under-recovered fuel balance reached $390 million, prompting a request for an 11.7% fuel rate increase. Savannah Electric disclosed a material weakness in internal control over unbilled revenue estimates, which led to restated 2002 and 2003 results. Mirant-related bankruptcy claims and IRS disputes over leveraged leases and synthetic fuel credits add contingent exposure. On the positive side, the company reversed a $37 million synthetic fuel tax reserve after an IRS audit closed, raised its dividend to $0.3575 per quarter, and reported 229 consecutive quarterly dividend increases or maintenances. Southern Company said it did not expect an equity offering in 2005 and was developing a share repurchase program to offset stock compensation issuances.
Mar 1, 2005
2003
SOUTHERN CO Annual Report, Year Ended Dec 31, 2003
Southern Company's (SO) 2003 10-K filing highlights a strong financial performance, with net income increasing by 11.8% to $1.5 billion, or $2.03 per share, driven by robust performance in its electricity businesses. The company continues to focus on its core utility operations through its retail operating companies (Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Savannah Electric) and its wholesale generation subsidiary, Southern Power. Southern Power is a key growth engine, with plans to reach approximately 6,000 megawatts of capacity by the end of 2005. The filing also details significant ongoing capital expenditure programs totaling $2.16 billion for 2004, allocated across new generation, other generation facilities, new business, transmission, distribution, and nuclear fuel. The company relies on a mix of internal cash flow and external financing, including debt and equity, to fund these programs. Risk factors are prominently discussed, including substantial governmental regulation at federal and state levels, potential impacts from deregulation and industry restructuring, environmental compliance costs and liabilities, and competition. Significant legal proceedings are also noted, particularly those related to the Clean Air Act's New Source Review provisions and matters concerning Mirant Corporation, which was spun off in 2001 and subsequently filed for bankruptcy.
Mar 1, 2004
2002
SOUTHERN CO Annual Report, Year Ended Dec 31, 2002
Southern Company (SO) in its 2002 10-K filing demonstrates a strong financial performance, with net income from continuing operations increasing by 17.6% to $1.3 billion, or $1.86 per share. This growth was driven by robust electricity sales across its operating companies and the expanding wholesale market business, Southern Power. The company maintained its commitment to stockholders by increasing its quarterly dividend to $0.3425 per share, reflecting a payout ratio of 72.8% for the year. SO continues to invest in its construction programs, estimating $2.1 billion in additions for 2003, primarily focused on new generation capacity to support its competitive wholesale market strategy and upgrading existing transmission and distribution infrastructure. The company highlighted its focus on cost containment and operational efficiency across its regulated utility businesses while also pursuing new opportunities in non-traditional energy services.
Mar 10, 2003
2001
SOUTHERN CO Annual Report, Year Ended Dec 31, 2001
Southern Company (SO) reported its 2001 annual results, showcasing a robust performance from its core electricity business. Despite a mild climate and economic downturn, the company managed to increase earnings per share from continuing operations, driven by cost containment and lower interest rates. A significant event was the spin-off of Mirant Corporation in April 2001, which resulted in Mirant's financial results being reflected as discontinued operations. The company is strategically positioning itself for the evolving energy market through the growth of its wholesale business, spearheaded by its new subsidiary, Southern Power. Southern Company continues to invest heavily in its construction programs, with significant capacity additions planned through 2004, primarily for the wholesale market. The company's financial condition remains strong, supported by solid earnings and a commitment to shareholder returns through dividends. While facing industry-wide challenges such as increasing competition and evolving regulations, Southern Company is adapting through potential business strategies including combinations, acquisitions, and internal restructuring, aiming to maintain its position as a low-cost producer.
Mar 25, 2002
2000
SOUTHERN CO Annual Report, Year Ended Dec 31, 2000
Southern Company (SO) has filed its 2000 Annual Report on Form 10-K, detailing its operations and financial condition as of December 31, 2000. The report highlights a period of strong performance for its integrated Southeast utilities, driven by customer growth and increased energy sales, particularly in the residential and commercial sectors. The company is strategically positioning itself for evolving industry dynamics, including deregulation and competition, by investing in new businesses and expanding its wholesale energy operations through a new subsidiary, Southern Power Company (SPC). A significant event noted is the planned spin-off of Mirant Corporation (formerly Southern Energy, Inc.), which is reflected as discontinued operations in the financial statements. Management expresses confidence in the company's financial stability and its commitment to dividend growth, while acknowledging the potential impacts of regulatory changes, litigation, and evolving market conditions.
Mar 29, 2001
1999
SOUTHERN CO Annual Report, Year Ended Dec 31, 1999
The Southern Company's 1999 Form 10-K reports a record consolidated net income of $1.276 billion, or $1.86 per share, up from $977 million ($1.40 per share) in 1998. Excluding non-recurring items such as a $78 million gain on an asset sale and a $69 million Mobile Energy write-down, adjusted earnings were $1.303 billion, or $1.90 per share, versus $1.76 in 1998. Southern Energy, the company's competitive generation and trading business outside the Southeast, contributed roughly 26% of 1999 reported net income, and the integrated Southeast utilities remained the core earnings base at about $1.07 billion of net income. The traditional regulated business faced a Georgia Power rate reduction effective January 1999 that cut retail revenues, though customer growth partly offset it. Management also cut its dividend payout target from about 75% to 50% over time, keeping the quarterly dividend at 33.5 cents, which the company says will free more internal cash for reinvestment. Capital spending is budgeted at about $3.0 billion in 2000, $3.8 billion in 2001 and $3.9 billion in 2002, with Southern Energy's growth funded by a request to invest up to nearly $6 billion, of which $2.7 billion had been invested by year-end 1999. Key risks include an EPA civil action filed in November 1999 alleging Clean Air Act violations at several coal plants, with penalties and possible pollution-control capital costs that could not yet be quantified; the Mobile Energy Services Chapter 11 filing; the pending FERC requirement for Regional Transmission Organization filings by October 2000; and continued uncertainty over retail competition and stranded costs. Financial condition remained strong, with a 49.7% long-term debt share and $5.7 billion of unused bank credit at the start of 2000.
Mar 27, 2000
1998
SOUTHERN CO Annual Report, Year Ended Dec 31, 1998
Southern Company (SO) reported 1998 consolidated net income of $977 million, or $1.40 per share, down from $972 million ($1.42) in 1997. Excluding non-recurring items totaling $248 million after tax (chiefly a $200 million after-tax write-down of its South American holdings in Chile and Argentina, plus a $21 million Rocky Mountain plant write-down), earnings were a record $1.2 billion ($1.76 per share), up 8.4% from $1,130 million. The traditional regulated utility business remained the core earnings engine, with retail revenues up 8.2% to $8.3 billion on customer growth and hotter weather, and retail kilowatt-hour sales up 6.2%, the strongest growth since 1986. Total operating revenues fell 9.6% to $11.4 billion because Southern Energy's energy trading operations were deconsolidated into the Vastar joint venture effective January 1, 1998. The filing shows an aggressive push into non-traditional business. Southern Energy, which the company says accounted for roughly 20% of net income excluding non-recurring items in 1998, has SEC authority to invest up to about $8 billion in non-traditional domestic and international business, against $3.9 billion of current authority with $3.6 billion already invested. Management plans to acquire or build roughly 20,000 MW of North American capacity, has announced about $1.3 billion of U.S. generation acquisitions expected to close in 1999, and expects substantial investment in these businesses over 1999-2001. Investors should weigh this growth against the higher risk the company itself acknowledges, as well as the January 1999 Chapter 11 filing by Mobile Energy Services (MESC), for which the parent paid about $36 million under guaranty agreements in March 1999. On the financial side, the company cut its dividend payout policy from a targeted 75% toward a lower ratio over time while keeping the quarterly dividend at 33.5 cents ($1.34 annually). Management says this lets more internally generated funds be reinvested. Common equity was 42.9% of total capitalization, the market-to-book ratio was 207%, and the year-end share price was $29 1/16. Key regulatory and competitive uncertainties include the Florida PSC's review of Gulf Power's return on equity, the Georgia Power 1998 rate order cutting retail rates by $262 million in 1999, FERC proceedings on wholesale equity returns, Year 2000 readiness (targeted June 1999), and Phase II Clean Air Act compliance in 2000.
Mar 26, 1999
1997
SOUTHERN CO Annual Report, Year Ended Dec 31, 1997
The Southern Company's 1997 Form 10-K reports consolidated net income of $972 million, or $1.42 per share, down from $1.127 billion ($1.68 per share) in 1996. Management attributes the decline mainly to a $111 million after-tax windfall profits tax assessed on its UK subsidiary SWEB, plus higher financing costs for the non-traditional business. Excluding that tax, earnings were roughly $1.1 billion. Operating revenues rose 21.8% to $12.6 billion, driven by Southern Energy's energy trading and marketing and international acquisitions, while retail revenues slightly declined on milder weather and load-management rate migration. The traditional core utility business remained stable, with cost controls and steady demand offsetting weather-driven residential sales declines. The company is pursuing a major expansion beyond regulated utilities. In 1997 it completed the roughly $2.1 billion acquisition of Consolidated Electric Power Asia (CEPA), took a 26% stake in a German utility for about $820 million, and formed a trading joint venture with Vastar Resources effective January 1998. Management expects these non-traditional investments to carry higher returns but also higher risk, with CEPA slightly dilutive near term. Capital spending is budgeted at about $2.0 billion per year in 1998-1999 and $1.6 billion in 2000, and the company plans to issue additional equity in 1998. Dividends were raised to 33.5 cents per quarter in early 1998, and the common equity ratio fell to 38.6%. Key risks include competition and restructuring in the utility industry, a pending appeal of the SEC order authorizing non-traditional investments, a potential $29 million after-tax charge tied to Georgia Power's Rocky Mountain plant, pending FERC equity-return proceedings, and Phase II Clean Air Act compliance. Year 2000 remediation is estimated at about $85 million.
Mar 31, 1998
1994
SOUTHERN CO Annual Report, Year Ended Dec 31, 1994
The Southern Company's combined 1994 Form 10-K covers the parent holding company and its five operating utilities (Alabama Power, Georgia Power, Gulf Power, Mississippi Power, Savannah Electric). Consolidated 1994 earnings were $989 million, or $1.52 per share, down from $1.57 in 1993. Excluding non-operating items, including a $61 million after-tax charge for work force reduction programs, earnings from ongoing operations were $1.58 per share. Operating revenues fell 2.3% to $8.3 billion on milder weather and lower sales for resale, while the dividend was raised to 30.5 cents per quarter in early 1995. Management describes the financial condition as the strongest since the mid-1980s, with a common equity ratio of 44.4% and a stated goal of 40% to 45%. The company is shifting strategy toward non-utility growth through Southern Electric International, which holds international and independent power investments of about $436 million at year-end, including Argentina, Chile, Trinidad and Tobago, and the Bahamas, plus a $350 million acquisition of a Scott Paper energy complex. A new wireless subsidiary, Southern Communications, is authorized to invest up to $179 million and is expected to dilute earnings in its early years. Management also expects to invest substantially in these new businesses over 1995 to 1997, and it has warned that these efforts carry higher risk than rate-regulated operations. Key risks include the Rocky Mountain pumped storage project, where recovery of Georgia Power's roughly $200 million investment is uncertain pending Georgia PSC review, and the Energy Act's move toward retail competition, which could erode earnings for companies that are not low-cost producers. Construction spending is budgeted at about $1.4 billion per year for 1995 to 1997, largely funded internally, and Clean Air Act compliance adds costs that management expects to recover through rates. Pending litigation includes a derivative stockholder suit and FERC review of wholesale equity returns, and management does not expect either to have a material adverse effect.
Mar 27, 1995
1993
SOUTHERN CO Annual Report, Year Ended Dec 31, 1993
The Southern Company's 1993 combined Form 10-K (filed March 28, 1994) covers the holding company and its five operating subsidiaries: Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. SOUTHERN reported 1993 net income of $1,002 million, or $1.57 per share (after a two-for-one stock split declared in January 1994), up from $1.51 in 1992. Excluding special items, earnings from ongoing operations were $1,016 million, or $1.59 per share, a 6.7% increase. Operating revenues rose 5.2% to $8.5 billion, driven by a hot summer, with retail energy sales growing 5.3%, the fastest pace since 1986. Return on average common equity was 13.43%, the highest since 1986, and the common dividend was raised 3.5% to an annualized $1.18 for 1994. The balance sheet shows total assets of $25.9 billion, up sharply from $20.0 billion in 1992, largely due to the adoption of FAS 109 and the acquisition of foreign utility interests (Freeport, Alicura, and Edelnor) for roughly $465 million of cash in 1993. Management notes that the financial condition is the strongest since the mid-1980s, with a common equity ratio of 43.5% including short-term debt and a market-to-book ratio of 184%. Near-term capital needs are substantial: the operating companies budgeted about $1.5 billion of construction for 1994, and SOUTHERN plans significant new-business investment over 1994-1996, which carries higher risk than rate-regulated operations. Key risks include a pending dispute over recoverability of Georgia Power's roughly $197 million investment in the Rocky Mountain pumped storage project (the auditors' report carries an uncertainty paragraph), the Georgia PSC's ruling that demand-side rate riders were unlawful (costs of about $60 million deferred), a FERC review of wholesale equity returns, Clean Air Act compliance costs of perhaps $450-800 million over 1996-2000, and the Energy Policy Act of 1992 opening the industry to competition. Several lawsuits are pending, including a derivative suit (Stepak) and a $40 million heat pump financing case at Alabama Power, but management does not expect material adverse outcomes.
Mar 28, 1994