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.