Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 
Date of Report (Date of earliest event reported)
February 20, 2020
 

 
Commission
File Number
 
Registrant,
State of Incorporation,
Address and Telephone Number
 
I.R.S. Employer
Identification No.
 
 
1-3526
 
The Southern Company
 
58-0690070
 
(A Delaware Corporation)
30 Ivan Allen Jr. Boulevard, N.W.
Atlanta, Georgia 30308
(404) 506-5000
 
1-3164
 
Alabama Power Company
 
63-0004250
 
(An Alabama Corporation)
600 North 18th Street
Birmingham, Alabama 35203
(205) 257-1000
 
1-6468
 
Georgia Power Company
 
58-0257110
 
(A Georgia Corporation)
241 Ralph McGill Boulevard, N.E.
Atlanta, Georgia 30308
(404) 506-6526
 
001-11229
 
Mississippi Power Company
 
64-0205820
 
(A Mississippi Corporation)
2992 West Beach Boulevard
Gulfport, Mississippi 39501
(228) 864-1211
 
001-37803
 
Southern Power Company
 
58-2598670
 
(A Delaware Corporation)
30 Ivan Allen Jr. Boulevard, N.W.
Atlanta, Georgia 30308
(404) 506-5000
 
1-14174
 
Southern Company Gas
 
58-2210952
 
(A Georgia Corporation)
Ten Peachtree Place, N.E.
Atlanta, Georgia 30309
(404) 584-4000

The names and addresses of the registrants have not changed since the last report.



This combined Form 8-K is furnished separately by six registrants: The Southern Company, Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company and Southern Company Gas. Information contained herein relating to each registrant is furnished by each registrant solely on its own behalf. Each registrant makes no representation as to information relating to the other registrants.

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Registrant
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
The Southern Company
Common Stock, par value $5 per share
SO
New York Stock Exchange
The Southern Company
Series 2015A 6.25% Junior
Subordinated Notes due 2075
SOJA
New York Stock Exchange
The Southern Company
Series 2016A 5.25% Junior
Subordinated Notes due 2076
SOJB
New York Stock Exchange
The Southern Company
Series 2017B 5.25% Junior
Subordinated Notes due 2077
SOJC
New York Stock Exchange
The Southern Company
2019 Series A Corporate Units
SOLN
New York Stock Exchange
The Southern Company
Series 2020A 4.95% Junior Subordinated Notes due 2080
SOJD
New York Stock Exchange
Alabama Power Company
5.00% Series Class A Preferred Stock
ALP PR Q
New York Stock Exchange
Georgia Power Company
Series 2017A 5.00% Junior
Subordinated Notes due 2077
GPJA
New York Stock Exchange
Southern Power Company
Series 2016A 1.000% Senior Notes due 2022
SO/22B
New York Stock Exchange
Southern Power Company
Series 2016B 1.850% Senior Notes due 2026
SO/26A
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). (Response applicable to each registrant)
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐




Item 2.02
Results of Operations and Financial Condition
The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On February 20, 2020, The Southern Company (“Southern Company”) issued a press release regarding its earnings for the three-month and twelve-month periods ended December 31, 2019. A copy of this release is being furnished as Exhibit 99.01 to this Current Report on Form 8-K. In addition, certain additional information regarding the financial results for the three-month and twelve-month periods ended December 31, 2019 is being furnished as Exhibits 99.02 through 99.07 to this Current Report on Form 8-K.
Item 7.01
Regulation FD Disclosure
Concurrently with the filing of this Form 8-K Southern Company is posting to its investor relations website an earnings presentation containing earnings guidance for 2020 (page 11).
Use of Non-GAAP Financial Measures
Exhibits 99.01, 99.02, 99.03 and 99.04 to this Current Report on Form 8-K include earnings and earnings per share in accordance with generally accepted accounting principles (“GAAP”) for the three-month and twelve-month periods ended December 31, 2019 and 2018. These exhibits also include earnings and earnings per share (1) for the three-month and twelve-month periods ended December 31, 2019 and 2018, excluding (a) acquisition, disposition and integration impacts, including related impairment charges, (b) charges, associated legal expenses, and tax impacts related to plants under construction, and (c) earnings from the Wholesale Gas Services business; (2) for the three-month and

1


twelve-month periods ended December 31, 2019, excluding impairment charges associated with a natural gas storage facility and a leveraged lease investment; (3) for the twelve-month period ended December 31, 2018, excluding settlement proceeds of Mississippi Power Company’s claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico; and (4) for the three-month and twelve-month periods ended December 31, 2018, excluding additional net tax benefits as a result of implementing federal tax reform legislation. The attached exhibits include additional information regarding these excluded items, as well as reconciliations of each non-GAAP financial measure to the most comparable financial measure under GAAP. Southern Company believes the presentation of earnings and earnings per share, excluding these items, is useful to investors because it provides investors with additional information to evaluate the performance of Southern Company’s ongoing business activities.  Southern Company management also uses earnings and earnings per share, excluding the effect of these items, to evaluate the performance of Southern Company’s ongoing business activities.  The presentation of this additional information is not meant to be considered a substitute for financial measures prepared in accordance with GAAP.
Exhibits
The exhibits hereto contain business segment information for Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company and Southern Company Gas. Accordingly, this report is also being furnished on behalf of each such registrant.
The following exhibits relate to the three-month and twelve-month periods ended December 31, 2019:

2


 
Exhibit 99.01
 
Exhibit 99.02
 
Exhibit 99.03
 
Exhibit 99.04
 
Exhibit 99.05
 
Exhibit 99.06
 
Exhibit 99.07
 
Exhibit 104
Cover Page Interactive Data File – The cover page iXBRL tags are embedded within the inline XBRL document.


3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:   February 20, 2020
THE SOUTHERN COMPANY

 
By
/s/Ann P. Daiss
 
 
Ann P. Daiss
Comptroller
 
 
 
 
ALABAMA POWER COMPANY
GEORGIA POWER COMPANY
MISSISSIPPI POWER COMPANY
SOUTHERN POWER COMPANY
SOUTHERN COMPANY GAS


 
By
/s/Melissa K. Caen
 
 
Melissa K. Caen
Assistant Secretary


4


 
 
Exhibit 99.01
 
socologoa20.gif
News
 
Media Contact:
Southern Company Media Relations
 
 
404-506-5333 or 1-866-506-5333
 
 
www.southerncompany.com
 
 
 
 
Investor Relations Contact:
 
 
Scott Gammill
 
 
404-506-0901
 
 
 
 
February 20, 2020

Southern Company reports fourth-quarter and full-year 2019 earnings

ATLANTA - Southern Company today reported fourth-quarter 2019 earnings of $440 million, or 42 cents per share, compared with $278 million, or 27 cents per share, in the fourth quarter of 2018. Southern Company also reported full-year 2019 earnings of $4.74 billion, or $4.53 per share, compared with earnings of $2.23 billion, or $2.18 per share, in 2018.

Excluding the items described in the “Net Income - Excluding Items” table below, Southern Company earned $283 million, or 27 cents per share, during the fourth quarter of 2019, compared with $256 million, or 25 cents per share, during the fourth quarter of 2018. For the full year 2019, excluding these items, Southern Company earned $3.25 billion, or $3.11 per share, compared with earnings of $3.13 billion, or $3.07 per share, in 2018.

Non-GAAP Financial Measures
Three Months Ended December
 
Year-to-Date December
Net Income - Excluding Items (in millions)
2019
2018
 
2019
2018
Net Income - As Reported
$440
$278
 
$4,739
 $2,226
Less:
 
 
 
 
 
   Acquisition, Disposition, and Integration Impacts
39
(58)
 
2,516
35
  Tax Impact
48
11
 
(1,081)
(294)
   Estimated Loss on Plants Under Construction
(11)
6
 
(27)
(1,102)
  Tax Impact
(4)
94
 
-
376
   Wholesale Gas Services
136
(41)
 
215
42
       Tax Impact
(34)
14
 
(52)
(4)
   Asset Impairment
(16)
-
 
(108)
-
       Tax Impact
(1)
-
 
26
-
   Litigation Settlement
-
-
 
-
24
       Tax Impact
-
-
 
-
(6)
   Earnings Guidance Comparability Item:
 
 
 
 
 
   Adoption of Tax Reform
-
(4)
 
-
27
Net Income - Excluding Items
$283
$256
 
$3,250
$3,128
       Average Shares Outstanding - (in millions)
1,052
1,034
 
1,046
1,020
Basic Earnings Per Share - Excluding Items
$0.27
$0.25
 
$3.11
$3.07
NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.





Earnings drivers for the full year 2019 were positively influenced by higher earnings at our state-regulated utilities, more than offsetting the impact of divested entities on earnings. The increases reflect the continued impacts of tax reform, including related changes in capital structure, as well as continued investment at our state-regulated utilities, along with customer growth, offset by declines in customer usage.

“By all accounts, 2019 was an outstanding year for Southern Company, as we performed well across a broad range of metrics,” said Chairman, President and CEO Thomas A. Fanning. “Operational performance at our state-regulated utilities was superb, with record generation and transmission reliability. Nicor Gas reliably delivered natural gas to customers in Illinois during unprecedented cold temperatures. We continued to decarbonize our generation fleet and we saw constructive outcomes in several key regulatory proceedings.”

“At Georgia Power’s Plant Vogtle, we accomplished all major 2019 milestones associated with the construction of new nuclear units 3 and 4,” added Fanning. “We have refined our aggressive site work plan for the project, which will serve as a tool to drive improved productivity to achieve the regulatory-approved in-service dates of November 2021 for Unit 3 and November 2022 for Unit 4.”

Fourth quarter 2019 operating revenues were $4.91 billion, compared with $5.34 billion for the fourth quarter of 2018, a decrease of 7.9 percent. Operating revenues for the full year 2019 were $21.42 billion, compared with $23.50 billion in 2018, a decrease of 8.8 percent. These decreases reflect the dispositions of Gulf Power and other assets.

Southern Company’s fourth quarter earnings slides with supplemental financial information are available at http://investor.southerncompany.com.

Southern Company’s financial analyst call will begin at 1 p.m. Eastern Time today, during which Fanning and Chief Financial Officer Andrew W. Evans will discuss earnings and provide a general business update, including earnings guidance for 2020. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com/webcasts. A replay of the webcast will be available on the site for 12 months.

About Southern Company
Southern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women’s Choice Award. To learn more, visit www.southerncompany.com.





Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning expected schedule for completion of Plant Vogtle units 3 and 4. Southern Company cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Company's Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects, including Plant Vogtle Units 3 and 4, which includes components based on new technology that only within the last few years began initial operation in the global nuclear industry at this scale, and including changes in labor costs, availability and productivity; challenges with management of contractors or vendors; subcontractor performance; adverse weather conditions; shortages, delays, increased costs, or inconsistent quality of equipment, materials, and labor; contractor or supplier delay; delays due to judicial or regulatory action; nonperformance under construction, operating, or other agreements; operational readiness, including specialized operator training and required site safety programs; engineering or design problems; design and other licensing-based compliance matters, including, for nuclear units, the timely submittal by Southern Nuclear of the Inspections, Tests, Analyses, and Acceptance Criteria documentation for each unit and the related reviews and approvals by the U.S. Nuclear Regulatory Commission (“NRC”) necessary to support NRC authorization to load fuel; challenges with start-up activities, including major equipment failure, system integration or regional transmission upgrades; and/or operational performance; the ability to overcome or mitigate the current challenges at Plant Vogtle Units 3 and 4 that could impact the cost and schedule for the project; legal proceedings and regulatory approvals and actions related to construction projects, such as Plant Vogtle Units 3 and 4 and pipeline projects, including Public Service Commission approvals and Federal Energy Regulatory Commission and NRC actions; under certain specified circumstances, a decision by holders of more than 10% of the ownership interests of Plant Vogtle Units 3 and 4 not to proceed with construction and the ability of other Vogtle owners to tender a portion of their ownership interests to Georgia Power following certain construction cost increases; in the event Georgia Power becomes obligated to provide funding to Municipal Electric Authority of Georgia (“MEAG”) with respect to the portion of MEAG’s ownership interest in Plant Vogtle Units 3 and 4 involving Jacksonville Electric Authority, any inability of Georgia Power to receive repayment of such funding; the ability to construct facilities in accordance with the requirements of permits and licenses (including satisfaction of NRC requirements), to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; the inherent risks involved in operating and constructing nuclear generating facilities; the ability of counterparties of Southern Company and its subsidiaries to make payments as and when due and to perform as required; the direct or indirect effect on the Southern Company system's business resulting from cyber intrusion or physical attack and the threat of physical attacks; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events or other similar occurrences; and the direct or indirect effects on the Southern Company system's business resulting from incidents affecting the U.S. electric grid, natural gas pipeline infrastructure, or operation of generating or storage resources. Southern Company expressly disclaims any obligation to update any forward‐looking information.
###




Exhibit 99.02
 
Page 1
 
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
Net Income–As Reported (See Notes)
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
  Traditional Electric Operating Companies
 
$
210

 
$
407

 
$
2,929

 
$
2,117

  Southern Power
 
23

 
(48
)
 
339

 
187

Southern Company Gas
 
238

 
78

 
585

 
372

  Total
 
471

 
437

 
3,853

 
2,676

  Parent Company and Other
 
(31
)
 
(159
)
 
886

 
(450
)
  Net Income–As Reported
 
$
440

 
$
278

 
$
4,739

 
$
2,226

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share1
 
$
0.42

 
$
0.27

 
$
4.53

 
$
2.18

 
 
 
 
 
 
 
 
 
  Average Shares Outstanding (in millions)
 
1,052

 
1,034

 
1,046

 
1,020

  End of Period Shares Outstanding (in millions)
 
 
 
 
 
1,053

 
1,034

 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures
 
Three Months Ended
December
 
Year-to-Date
December
Net Income–Excluding Items (See Notes)
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
  Net Income–As Reported
 
$
440

 
$
278

 
$
4,739

 
$
2,226

Less:
 
 
 
 
 
 
 
 
Acquisition, Disposition, and Integration Impacts2
 
39

 
(58
)
 
2,516

 
35

Tax Impact
 
48

 
11

 
(1,081
)
 
(294
)
Estimated Loss on Plants Under Construction3
 
(11
)
 
6

 
(27
)
 
(1,102
)
Tax Impact
 
(4
)
 
94

 
—

 
376

Wholesale Gas Services4
 
136

 
(41
)
 
215

 
42

Tax Impact
 
(34
)
 
14

 
(52
)
 
(4
)
Asset Impairment5
 
(16
)
 
—

 
(108
)
 
—

Tax Impact
 
(1
)
 
—

 
26

 
—

Litigation Settlement6
 
—

 
—

 
—

 
24

Tax Impact
 
—

 
—

 
—

 
(6
)
Earnings Guidance Comparability Item:
 
 
 
 
 
 
 
 
Adoption of Tax Reform6
 
—

 
(4
)
 
—

 
27

  Net Income–Excluding Items
 
$
283

 
$
256

 
$
3,250

 
$
3,128

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share–Excluding Items
 
$
0.27

 
$
0.25

 
$
3.11

 
$
3.07

 
 
 
 
 
 
 
 
 
-See Notes on the following page.






 
Exhibit 99.02
 
Page 2
 
Southern Company
 
Financial Highlights
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
(1)
Dilutive impacts are immaterial ($0.03 or less per share) in all periods. Diluted earnings per share was $0.42 and $4.50 for the three and twelve months ended December 31 2019, respectively, and $0.27 and $2.17 for the three and twelve months ended December 31, 2018, respectively.
 
 
(2)
Earnings for the three months ended December 31, 2019 include: (i) a $70 million pre-tax ($102 million after- tax) increase for the gain on the sale of Gulf Power; (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the pending sale of Pivotal LNG and Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax reduction to earnings (net $2 million after-tax increase to earnings) of other acquisition, disposition, and integration impacts. Earnings for the twelve months ended December 31, 2019 include: (i) a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of Gulf Power; (ii) a $23 million pre-tax ($88 million after-tax) gain on the sale of Plant Nacogdoches; and (iii) $18 million pre tax ($11 million after tax) of other acquisition, disposition, and integration impacts, partially offset by: (i) a $58 million pre-tax ($52 million after-tax) net loss, including impairment charges, associated with the sales of PowerSecure's utility infrastructure services and lighting businesses and (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the pending sale of Pivotal LNG and Atlantic Coast Pipeline. Earnings for the three months ended December 31, 2018 include: (i) a net combined $27 million pre-tax loss (net combined $15 million after-tax loss) to reflect the final adjustments for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $249 million pre-tax gain ($93 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions, including a related impairment charge; (ii) a $119 million pre-tax ($89 million after-tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iii) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2020 in connection with the sale of Plant Mankato and the pending sale of Pivotal LNG and Atlantic Coast Pipeline.
 
 
(3)
Earnings for the three and twelve months ended December 31, 2019 and 2018 include charges, associated legal expenses, and tax impacts related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a related state income tax valuation allowance. Mississippi Power expects to substantially complete mine reclamation activities in 2020 and dismantlement of the abandoned gasifier-related assets and site restoration activities by 2024. The additional pre-tax period costs associated with these activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, are estimated to total $17 million in 2020, $15 to $16 million annually in 2021 through 2023, and $5 million in 2024. Earnings for the twelve months ended December 31, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power's construction of Plant Vogtle Units 3 and 4. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges are uncertain.
 
 
 
 
 
 
 
 
 
 
(4)
Earnings for the three and twelve months ended December 31, 2019 and 2018 include Wholesale Gas Services business results. Presenting earnings and earnings per share excluding Wholesale Gas Services provides an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
 
 
 
 
 
 
 
 
 
 
(5)
Earnings for the twelve months ended December 31, 2019 include a pre-tax impairment charge of $91 million ($69 million after tax) associated with a natural gas storage facility and earnings for the three months ended December 31, 2019 include an adjustment of $(1) million pre tax ($4 million after tax) of this impairment charge. Additionally, earnings for the three and twelve months ended December 31, 2019 include a pre-tax impairment charge of $17 million ($13 million after tax) related to a leveraged lease. Additional impairment charges associated with other natural gas storage facilities or this leveraged lease investment may occur; however, the amount and timing of any such charges are uncertain.
 
 
 
 
 
 
 
 
 
 
(6)
Earnings for the twelve months ended December 31, 2018 include the settlement proceeds of Mississippi Power's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill and earnings for the three and twelve months ended December 31, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation. Additional proceeds or adjustments are not expected.


Exhibit 99.03
 
Page 1
 
Southern Company
Significant Factors Impacting EPS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
 
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
As Reported1 (See Notes)
 
$
0.42

 
$
0.27

 
$
0.15

 
$
4.53

 
$
2.18

 
$
2.35

 
 
 
 
 
 
 
 
 
 
 
 
 
  Significant Factors:
 
 
 
 
 
 
 
 
 
 
 
 
  Traditional Electric Operating Companies
 
 
 
 
 
$
(0.19
)
 
 
 
 
 
$
0.80

Southern Power
 
 
 
 
 
0.07

 
 
 
 
 
0.15

Southern Company Gas
 
 
 
 
 
0.15

 
 
 
 
 
0.21

Parent Company and Other
 
 
 
 
 
0.13

 
 
 
 
 
1.30

Increase in Shares
 
 
 
 
 
(0.01
)
 
 
 
 
 
(0.11
)
  Total–As Reported
 
 
 
 
 
$
0.15

 
 
 
 
 
$
2.35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
Non-GAAP Financial Measures
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
Excluding Items (See Notes)
 
$
0.27

 
$
0.25

 
$
0.02

 
$
3.11

 
$
3.07

 
$
0.04

 
 
 
 
 
 
 
 
 
 
 
 
 
  Total–As Reported
 
 
 
 
 
$
0.15

 
 
 
 
 
$
2.35

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition, Disposition, and Integration
    Impacts2
 
 
 
 
 
0.13

 
 
 
 
 
1.63

Estimated Loss on Plants Under Construction3
 
 
 
 
 
(0.11
)
 
 
 
 
 
0.68

Wholesale Gas Services4
 
 
 
 
 
0.13

 
 
 
 
 
0.13

Asset Impairment5
 
 
 
 
 
(0.02
)
 
 
 
 
 
(0.08
)
Litigation Settlement6
 
 
 
 
 
—

 
 
 
 
 
(0.02
)
Adoption of Tax Reform6
 
 
 
 
 
—

 
 
 
 
 
(0.03
)
  Total–Excluding Items
 
 
 
 
 
$
0.02

 
 
 
 
 
$
0.04

 
 
 
 
 
 
 
 
 
 
 
 
 
- See Notes on the following page.



 
Exhibit 99.03
 
Page 2
 
Southern Company
 
Significant Factors Impacting EPS
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
(1)
Dilutive impacts are immaterial ($0.03 or less per share) in all periods. Diluted earnings per share was $0.42 and $4.50 for the three and twelve months ended December 31 2019, respectively, and $0.27 and $2.17 for the three and twelve months ended December 31, 2018, respectively.
 
 
(2)
Earnings for the three months ended December 31, 2019 include: (i) a $70 million pre-tax ($102 million after- tax) increase for the gain on the sale of Gulf Power; (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the pending sale of Pivotal LNG and Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax reduction to earnings (net $2 million after-tax increase to earnings) of other acquisition, disposition, and integration impacts. Earnings for the twelve months ended December 31, 2019 include: (i) a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of Gulf Power; (ii) a $23 million pre-tax ($88 million after-tax) gain on the sale of Plant Nacogdoches; and (iii) $18 million pre tax ($11 million after tax) of other acquisition, disposition, and integration impacts, partially offset by: (i) a $58 million pre-tax ($52 million after-tax) net loss, including impairment charges, associated with the sales of PowerSecure's utility infrastructure services and lighting businesses and (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the pending sale of Pivotal LNG and Atlantic Coast Pipeline. Earnings for the three months ended December 31, 2018 include: (i) a net combined $27 million pre-tax loss (net combined $15 million after-tax loss) to reflect the final adjustments for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $249 million pre-tax gain ($93 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions, including a related impairment charge; (ii) a $119 million pre-tax ($89 million after-tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iii) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2020 in connection with the sale of Plant Mankato and the pending sale of Pivotal LNG and Atlantic Coast Pipeline.
 
 
(3)
Earnings for the three and twelve months ended December 31, 2019 and 2018 include charges, associated legal expenses, and tax impacts related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a related state income tax valuation allowance. Mississippi Power expects to substantially complete mine reclamation activities in 2020 and dismantlement of the abandoned gasifier-related assets and site restoration activities by 2024. The additional pre-tax period costs associated with these activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, are estimated to total $17 million in 2020, $15 to $16 million annually in 2021 through 2023, and $5 million in 2024. Earnings for the twelve months ended December 31, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power's construction of Plant Vogtle Units 3 and 4. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges are uncertain.
 
 
(4)
Earnings for the three and twelve months ended December 31, 2019 and 2018 include Wholesale Gas Services business results. Presenting earnings and earnings per share excluding Wholesale Gas Services provides an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
 
 
 
 
 
 
 
 
 
 
(5)
Earnings for the twelve months ended December 31, 2019 include a pre-tax impairment charge of $91 million ($69 million after tax) associated with a natural gas storage facility and earnings for the three months ended December 31, 2019 include an adjustment of $(1) million pre tax ($4 million after tax) of this impairment charge. Additionally, earnings for the three and twelve months ended December 31, 2019 include a pre-tax impairment charge of $17 million ($13 million after tax) related to a leveraged lease. Additional impairment charges associated with other natural gas storage facilities or this leveraged lease investment may occur; however, the amount and timing of any such charges are uncertain.
 
 
 
 
 
 
 
 
 
 
(6)
Earnings for the twelve months ended December 31, 2018 include the settlement proceeds of Mississippi Power's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill and earnings for the three and twelve months ended December 31, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation. Additional proceeds or adjustments are not expected.



Exhibit 99.04
Page 1
Southern Company
EPS Earnings Analysis
 
 
 
 
 
 
Description
 
Three Months Ended December
2019 vs. 2018
 
Year-to-Date
December
2019 vs. 2018
 
 
 
 
 
Retail Sales
 
$(0.02)
 
$(0.12)
 
 
 
 
 
Retail Revenue Impacts
 
0.11
 
0.44
 
 
 
 
 
Weather
 
(0.03)
 
0.02
 
 
 
 
 
Wholesale and Other Operating Revenues
 
0.01
 
0.07
 
 
 
 
 
Non-Fuel O&M
 
(0.11)
 
(0.14)
 
 
 
 
 
Interest Expense, Depreciation and Amortization, Other
 
—
 
(0.03)
 
 
 
 
 
Income Taxes
 
0.04
 
0.14
 
 
 
 
 
Gulf Power Earnings
 
(0.01)
 
(0.16)
 
 
 
 
 
Total Traditional Electric Operating Companies
 
$(0.01)
 
$0.22
 
 
 
 
 
Southern Power
 
(0.02)
 
(0.12)
 
 
 
 
 
Southern Company Gas
 
0.03
 
0.04
 
 
 
 
 
Parent and Other
 
0.02
 
(0.02)
 
 
 
 
 
Increase in Shares
 
—
 
(0.08)
 
 
 
 
 
Total Change in EPS (Excluding Items)
 
$0.02
 
$0.04
 
 
 
 
 
Acquisition, Disposition, and Integration Impacts1
 
0.13
 
1.63
 
 
 
 
 
Estimated Loss on Plants Under Construction2
 
(0.11)
 
0.68
 
 
 
 
 
Wholesale Gas Services3
 
0.13
 
0.13
 
 
 
 
 
Asset Impairment4
 
(0.02)
 
(0.08)
 
 
 
 
 
Litigation Settlement5
 
—
 
(0.02)
 
 
 
 
 
Adoption of Tax Reform5
 
—
 
(0.03)
 
 
 
 
 
Total Change in EPS (As Reported)
 
$0.15
 
$2.35
 
 
 
 
 
- See Notes on the following page.
 




 
Exhibit 99.04
 
Page 2
 
Southern Company
 
EPS Earnings Analysis
 
Three and Twelve Months Ended December 2019 vs. December 2018
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Earnings for the three months ended December 31, 2019 include: (i) a $70 million pre-tax ($102 million after- tax) increase for the gain on the sale of Gulf Power; (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the pending sale of Pivotal LNG and Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax reduction to earnings (net $2 million after-tax increase to earnings) of other acquisition, disposition, and integration impacts. Earnings for the twelve months ended December 31, 2019 include: (i) a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of Gulf Power; (ii) a $23 million pre-tax ($88 million after-tax) gain on the sale of Plant Nacogdoches; and (iii) $18 million pre tax ($11 million after tax) of other acquisition, disposition, and integration impacts, partially offset by: (i) a $58 million pre-tax ($52 million after-tax) net loss, including impairment charges, associated with the sales of PowerSecure's utility infrastructure services and lighting businesses and (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the pending sale of Pivotal LNG and Atlantic Coast Pipeline. Earnings for the three months ended December 31, 2018 include: (i) a net combined $27 million pre-tax loss (net combined $15 million after-tax loss) to reflect the final adjustments for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $249 million pre-tax gain ($93 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions, including a related impairment charge; (ii) a $119 million pre-tax ($89 million after-tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iii) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2020 in connection with the sale of Plant Mankato and the pending sale of Pivotal LNG and Atlantic Coast Pipeline.
 
 
 
 
 
 
 
 
 
(2)
Earnings for the three and twelve months ended December 31, 2019 and 2018 include charges, associated legal expenses, and tax impacts related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a related state income tax valuation allowance. Mississippi Power expects to substantially complete mine reclamation activities in 2020 and dismantlement of the abandoned gasifier-related assets and site restoration activities by 2024. The additional pre-tax period costs associated with these activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, are estimated to total $17 million in 2020, $15 to $16 million annually in 2021 through 2023, and $5 million in 2024. Earnings for the twelve months ended December 31, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power's construction of Plant Vogtle Units 3 and 4. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges are uncertain.
 
 
 
 
 
 
 
 
 
(3)
Earnings for the three and twelve months ended December 31, 2019 and 2018 include Wholesale Gas Services business results. Presenting earnings and earnings per share excluding Wholesale Gas Services provides an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.
 
 
 
 
 
 
 
 
 
(4)
Earnings for the twelve months ended December 31, 2019 include a pre-tax impairment charge of $91 million ($69 million after tax) associated with a natural gas storage facility and earnings for the three months ended December 31, 2019 include an adjustment of $(1) million pre tax ($4 million after tax) of this impairment charge. Additionally, earnings for the three and twelve months ended December 31, 2019 include a pre-tax impairment charge of $17 million ($13 million after tax) related to a leveraged lease. Additional impairment charges associated with other natural gas storage facilities or this leveraged lease investment may occur; however, the amount and timing of any such charges are uncertain.
 
 
(5)
Earnings for the twelve months ended December 31, 2018 include the settlement proceeds of Mississippi Power's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill and earnings for the three and twelve months ended December 31, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation. Additional proceeds or adjustments are not expected.




Exhibit 99.05
 
 
Southern Company
Consolidated Earnings
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
 
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Income Account-
 
 
 
 
 
 
 
 
 
 
 
 
Retail Electric Revenues-
 
 
 
 
 
 
 
 
 
 
 
 
Fuel
 
$
784

 
$
1,012

 
$
(228
)
 
$
3,591

 
$
4,283

 
$
(692
)
Non-Fuel
 
2,164

 
2,297

 
(133
)
 
10,493

 
10,939

 
(446
)
Wholesale Electric Revenues
 
485

 
579

 
(94
)
 
2,152

 
2,516

 
(364
)
Other Electric Revenues
 
144

 
169

 
(25
)
 
636

 
664

 
(28
)
Natural Gas Revenues
 
1,131

 
1,048

 
83

 
3,792

 
3,854

 
(62
)
Other Revenues
 
206

 
232

 
(26
)
 
755

 
1,239

 
(484
)
Total Revenues
 
4,914

 
5,337

 
(423
)
 
21,419

 
23,495

 
(2,076
)
Fuel and Purchased Power
 
977

 
1,334

 
(357
)
 
4,438

 
5,608

 
(1,170
)
Cost of Natural Gas
 
363

 
486

 
(123
)
 
1,319

 
1,539

 
(220
)
Cost of Other Sales
 
119

 
118

 
1

 
435

 
806

 
(371
)
Non-Fuel O & M
 
1,712

 
1,672

 
40

 
5,600

 
5,889

 
(289
)
Depreciation and Amortization
 
771

 
793

 
(22
)
 
3,038

 
3,131

 
(93
)
Taxes Other Than Income Taxes
 
299

 
325

 
(26
)
 
1,230

 
1,315

 
(85
)
Estimated Loss on Plants Under Construction
 
14

 
(8
)
 
22

 
24

 
1,097

 
(1,073
)
Impairment Charges
 
26

 
13

 
13

 
168

 
210

 
(42
)
(Gain) Loss on Dispositions, net
 
(57
)
 
26

 
(83
)
 
(2,569
)
 
(291
)
 
(2,278
)
Total Operating Expenses
 
4,224

 
4,759

 
(535
)
 
13,683

 
19,304

 
(5,621
)
Operating Income
 
690

 
578

 
112

 
7,736

 
4,191

 
3,545

Allowance for Equity Funds Used During Construction
 
32

 
39

 
(7
)
 
128

 
138

 
(10
)
Earnings from Equity Method Investments
 
42

 
40

 
2

 
162

 
148

 
14

Interest Expense, Net of Amounts Capitalized
 
442

 
456

 
(14
)
 
1,736

 
1,842

 
(106
)
Other Income (Expense), net
 
13

 
(81
)
 
94

 
252

 
114

 
138

Income Taxes (Benefit)
 
(74
)
 
(149
)
 
75

 
1,798

 
449

 
1,349

Net Income
 
409

 
269

 
140

 
4,744

 
2,300

 
2,444

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Dividends on Preferred Stock of Subsidiaries
 
5

 
4

 
1

 
15

 
16

 
(1
)
Net Income (Loss) Attributable to Noncontrolling Interests
 
(36
)
 
(13
)
 
(23
)
 
(10
)
 
58

 
(68
)
NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY
 
$
440

 
$
278

 
$
162

 
$
4,739

 
$
2,226

 
$
2,513

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- Certain prior year data may have been reclassified to conform with current year presentation.
 




Exhibit 99.06
 
Page 1
 
 
Southern Company
Kilowatt-Hour Sales
(In Millions of KWHs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December
 
 
As Reported
 
Adjusted1
 
 
2019
 
2018
 
Change
 
Weather Adjusted Change
 
2018
 
Change
 
Weather Adjusted Change
Kilowatt-Hour Sales-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Sales
 
46,185

 
49,539

 
(6.8
)%
 
 
 
46,943

 
(1.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Retail Sales-
 
34,254

 
37,973

 
(9.8
)%
 
(8.2
)%
 
35,529

 
(3.6
)%
 
(2.1
)%
Residential
 
10,738

 
12,475

 
(13.9
)%
 
(9.7
)%
 
11,281

 
(4.8
)%
 
(0.6
)%
Commercial
 
11,324

 
12,346

 
(8.3
)%
 
(7.7
)%
 
11,510

 
(1.6
)%
 
(1.1
)%
Industrial
 
12,022

 
12,949

 
(7.2
)%
 
(7.2
)%
 
12,542

 
(4.1
)%
 
(4.1
)%
Other
 
170

 
203

 
(16.3
)%
 
(16.1
)%
 
196

 
(13.4
)%
 
(13.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholesale Sales
 
11,931

 
11,566

 
3.2
 %
 
N/A

 
11,414

 
4.5
 %
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year-to-Date December
 
 
As Reported
 
Adjusted1
 
 
2019
 
2018
 
Change
 
Weather Adjusted Change
 
2018
 
Change
 
Weather Adjusted Change
Kilowatt-Hour Sales-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Sales
 
196,488

 
212,144

 
(7.4
)%
 
 
 
200,353

 
(1.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Retail Sales-
 
148,461

 
162,182

 
(8.5
)%
 
(8.4
)%
 
151,049

 
(1.7
)%
 
(1.8
)%
Residential
 
48,528

 
54,590

 
(11.1
)%
 
(10.7
)%
 
49,070

 
(1.1
)%
 
(0.8
)%
Commercial
 
49,101

 
53,451

 
(8.1
)%
 
(8.6
)%
 
49,623

 
(1.1
)%
 
(1.6
)%
Industrial
 
50,106

 
53,341

 
(6.1
)%
 
(6.1
)%
 
51,584

 
(2.9
)%
 
(2.9
)%
Other
 
726

 
800

 
(9.1
)%
 
(9.0
)%
 
772

 
(5.8
)%
 
(5.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholesale Sales
 
48,027

 
49,962

 
(3.9
)%
 
N/A

 
49,304

 
(2.6
)%
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Kilowatt-hour sales comparisons to the prior year were significantly impacted by the disposition of Gulf Power Company on January 1, 2019. These 2018 kilowatt-hour sales and changes exclude Gulf Power Company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Exhibit 99.06
 
Page 2
 
 
Southern Company
Customers
(In Thousands of Customers)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period Ended December
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
Change
Regulated Utility Customers-
 
 
 
 
 
 
 
 
 
 
 
 
Total Utility Customers-
 
 
 
 
 
 
 
8,543
 
8,933
 
(4.4)%
Total Traditional Electric1
 
 
 
 
 
 
 
4,266
 
4,685
 
(8.9)%
Southern Company Gas
 
 
 
 
 
 
 
4,277
 
4,248
 
0.7%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes approximately 463,000 customers at December 31, 2018 related to Gulf Power Company, which was sold on January 1, 2019.







Exhibit 99.07
 
 
 
 
 
 
 
 
Southern Company
Financial Overview
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December
 
Year-to-Date
December
 
 
2019
 
2018
 
% Change
 
2019
 
2018
 
% Change
Southern Company1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
4,914

 
$
5,337

 
(7.9
)%
 
$
21,419

 
$
23,495

 
(8.8
)%
Earnings Before Income Taxes
 
335

 
120

 
179.2
 %
 
6,542

 
2,749

 
138.0
 %
Net Income Available to Common
 
440

 
278

 
58.3
 %
 
4,739

 
2,226

 
112.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,363

 
$
1,316

 
3.6
 %
 
$
6,125

 
$
6,032

 
1.5
 %
Earnings Before Income Taxes
 
67

 
96

 
(30.2
)%
 
1,355

 
1,236

 
9.6
 %
Net Income Available to Common
 
88

 
73

 
20.5
 %
 
1,070

 
930

 
15.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Georgia Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,703

 
$
1,818

 
(6.3
)%
 
$
8,408

 
$
8,420

 
(0.1
)%
Earnings Before Income Taxes
 
128

 
175

 
(26.9
)%
 
2,192

 
1,007

 
117.7
 %
Net Income Available to Common
 
122

 
173

 
(29.5
)%
 
1,720

 
793

 
116.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Mississippi Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
294

 
$
308

 
(4.5
)%
 
$
1,264

 
$
1,265

 
(0.1
)%
Earnings Before Income Taxes
 
3

 
24

 
(87.5
)%
 
169

 
134

 
26.1
 %
Net Income Available to Common
 
—

 
149

 
(100.0
)%
 
139

 
235

 
(40.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Power1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
411

 
$
506

 
(18.8
)%
 
$
1,938

 
$
2,205

 
(12.1
)%
Earnings (Loss) Before Income Taxes
 
(28
)
 
(14
)
 
100.0
 %
 
273

 
82

 
232.9
 %
Net Income (Loss) Available to Common
 
23

 
(48
)
 
(147.9
)%
 
339

 
187

 
81.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Company Gas1 –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,131

 
$
1,048

 
7.9
 %
 
$
3,792

 
$
3,909

 
(3.0
)%
Earnings Before Income Taxes
 
307

 
67

 
358.2
 %
 
715

 
836

 
(14.5
)%
Net Income Available to Common
 
238

 
78

 
205.1
 %
 
585

 
372

 
57.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- See Financial Highlights pages for discussion of certain significant items occurring during the periods presented.
 
 
 
 
 
 
 
(1)
Financial comparisons to the prior year were significantly impacted by (i) Southern Company Gas' disposition of: (a) Pivotal Home Solutions on June 4, 2018, (b) Elizabethtown Gas and Elkton Gas on July 1, 2018, and (c) Florida City Gas on July 29, 2018; (ii) the disposition of Southern Power Company’s ownership interest in (a) Plants Oleander and Stanton on December 4, 2018 and (b) Plant Nacogdoches on June 13, 2019; (iii) Southern Power Company's sale of (a) a 33% equity interest in a limited partnership indirectly owning substantially all of its solar facilities on May 22, 2018 and (b) a noncontrolling interest in its subsidiary owning eight operating wind facilities on December 11, 2018; and (iv) Southern Company's disposition of Gulf Power Company on January 1, 2019.