8-KOther Events

SOUTHERN CO 8-K Report (Dec 18, 2003)

Filed December 18, 2003For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This Form 8-K filing reports on actions taken by Mississippi Power Company, a subsidiary of The Southern Company, concerning its regulatory filings with the Mississippi Public Service Commission (MPSC). On December 5, 2003, Mississippi Power requested modifications to its Performance Evaluation Plan and reclassification of leased capacity from Plant Daniel. This request follows the termination of a significant wholesale power contract with a Dynegy, Inc. subsidiary, which resulted in contract termination revenues of approximately $62.1 million for Mississippi Power in the quarter ended September 30, 2003. In response to Mississippi Power's requests, the MPSC agreed on December 16, 2003, to investigate and issued an interim accounting order. This order directs Mississippi Power to establish a regulatory liability of approximately $60.3 million, which the company will recognize as an expense in December 2003. The company anticipates a final MPSC order on these matters in the first half of 2004. Investors should monitor the outcome of this MPSC investigation as it could impact Mississippi Power's financial performance and regulatory treatment of its assets.

Key Highlights

  • 1Mississippi Power Company filed a request with the MPSC to modify its Performance Evaluation Plan and reclassify leased capacity from Plant Daniel Units 3 and 4.
  • 2The MPSC agreed on December 16, 2003, to investigate Mississippi Power's requests.
  • 3An interim accounting order was issued by the MPSC, directing Mississippi Power to establish a regulatory liability of approximately $60.3 million.
  • 4Mississippi Power will record the expense related to this regulatory liability in December 2003.
  • 5The termination of a wholesale power contract with a Dynegy, Inc. subsidiary on October 31, 2003, resulted in approximately $62.1 million in contract termination revenues for Mississippi Power.
  • 6A final MPSC order is expected in the first half of 2004.
  • 7This filing is a combined Form 8-K filed separately by The Southern Company and Mississippi Power Company.

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