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)
July 30, 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 July 30, 2020, The Southern Company (“Southern Company”) issued a press release regarding its earnings for the three-month and six-month periods ended June 30, 2020. 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 six-month periods ended June 30, 2020 is being furnished as Exhibits 99.02 through 99.07 to this Current Report on Form 8-K.
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 six-month periods ended June 30, 2020 and 2019. These exhibits also include earnings and earnings per share (1) for the three-month and six-month periods ended June 30, 2020 and 2019, excluding (a) acquisition and disposition impacts, (b) charges, associated legal expenses, and tax impacts related to plants under construction, and (c) earnings from the Wholesale Gas Services business and (2) for the three-month and six-month periods ended June 30, 2020, excluding an impairment charge associated with a leveraged lease investment. 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

1


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 six-month periods ended June 30, 2020:
 
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.


2


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:   July 30, 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


3


 
 
Exhibit 99.01
 
socologoa22.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
 
 
 
 
July 30, 2020

Southern Company reports second-quarter 2020 earnings

ATLANTA - Southern Company today reported second-quarter 2020 earnings of $612 million, or 58 cents per share, compared with $899 million, or 86 cents per share, in the second quarter of 2019. For the six months ended June 30, 2020, Southern Company reported earnings of $1.48 billion, or $1.40 per share, compared with earnings of $2.98 billion, or $2.86 per share, for the same period in 2019.

Excluding the items described in the “Net Income - Excluding Items” table below, Southern Company earned $822 million, or 78 cents per share, during the second quarter of 2020, compared with $833 million, or 80 cents per share, during the second quarter of 2019. For the six months ended June 30, 2020, excluding these items, Southern Company earned $1.65 billion, or $1.56 per share, compared with $1.56 billion, or $1.50 per share, for the same period in 2019.
Non-GAAP Financial Measures
Three Months Ended June
 
Year-to-Date June
Net Income - Excluding Items (in millions)
2020

2019

 
2020

2019

Net Income - As Reported
$
612

$
899

 
$
1,480

$
2,982

Less:
 
 
 
 
 
   Acquisition and Disposition Impacts
—

(18
)
 
38

2,481

Tax Impact
—

67

 
(16
)
(1,122
)
   Estimated Loss on Plants Under Construction
(152
)
(8
)
 
(155
)
(13
)
Tax Impact
39

2

 
40

3

   Wholesale Gas Services
(31
)
29

 
—

93

Tax Impact
8

(6
)
 
—

(23
)
Asset Impairment
(154
)
—

 
(154
)
—

Tax Impact
80

—

 
80

—

Net Income - Excluding Items
$
822

$
833

 
$
1,647

$
1,563

       Average Shares Outstanding - (in millions)
1,058

1,044

 
1,057

1,041

Basic Earnings Per Share - Excluding Items
$
0.78

$
0.80

 
$
1.56

$
1.50

NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.

Earnings drivers year-over-year for the second quarter 2020 were negatively impacted by a decline in sales from demand reduction related to the COVID-19 pandemic and mild weather, largely offset by diligent cost control and constructive state regulatory actions completed in 2019 at the company’s utilities.





“Despite the challenges of the COVID-19 pandemic, Southern Company and its subsidiaries have never taken a day off,” said Chairman, President and CEO Thomas A. Fanning. “Our electric and gas utilities have continued to provide clean, safe, reliable and affordable energy to customers while operating under appropriate health and safety protocols,” added Fanning. “Whether it’s our response to major storms in the Southeast or working within our communities to promote racial justice, we continue to deliver results, including continued progress on new nuclear construction.”

Second-quarter 2020 operating revenues were $4.62 billion, compared with $5.10 billion for the second quarter of 2019, a decrease of 9.4 percent. For the six months ended June 30, 2020, operating revenues were $9.64 billion, compared with $10.51 billion for the corresponding period in 2019, a decrease of 8.3 percent. These decreases were primarily due to lower fuel costs, milder weather and a sales decline from COVID-19 demand reduction.

Southern Company’s second-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. 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.

###




Exhibit 99.02
 
Page 1
 
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
 
 
 
 
 
 
 
 
 
Three Months Ended
June
 
Year-to-Date
June
Net Income–As Reported (See Notes)
2020
 
2019
 
2020
 
2019
  Traditional Electric Operating Companies
$
645

 
$
782

 
$
1,287

 
$
1,346

  Southern Power
63

 
174

 
138

 
230

Southern Company Gas
71

 
106

 
346

 
376

  Total
779

 
1,062

 
1,771

 
1,952

  Parent Company and Other
(167
)
 
(163
)
 
(291
)
 
1,030

  Net Income–As Reported
$
612

 
$
899

 
$
1,480

 
$
2,982

 
 
 
 
 
 
 
 
  Basic Earnings Per Share1
$
0.58

 
$
0.86

 
$
1.40

 
$
2.86

  Average Shares Outstanding (in millions)
1,058

 
1,044

 
1,057

 
1,041

  End of Period Shares Outstanding (in millions)
 
 
 
 
1,056

 
1,045

 
 
 
 
 
 
 
 
Non-GAAP Financial Measures
Three Months Ended
June
 
Year-to-Date
June
Net Income–Excluding Items (See Notes)
2020
 
2019
 
2020
 
2019
  Net Income–As Reported
$
612

 
$
899

 
$
1,480

 
$
2,982

Less:
 
 
 
 
 
 
 
Acquisition and Disposition Impacts2
—

 
(18
)
 
38

 
2,481

Tax Impact
—

 
67

 
(16
)
 
(1,122
)
Estimated Loss on Plants Under Construction3
(152
)
 
(8
)
 
(155
)
 
(13
)
Tax Impact
39

 
2

 
40

 
3

Wholesale Gas Services4
(31
)
 
29

 
—

 
93

Tax Impact
8

 
(6
)
 
—

 
(23
)
Asset Impairment5
(154
)
 
—

 
(154
)
 
—

Tax Impact
80

 
—

 
80

 
—

  Net Income–Excluding Items
$
822

 
$
833

 
$
1,647

 
$
1,563

 
 
 
 
 
 
 
 
  Basic Earnings Per Share–Excluding Items
$
0.78

 
$
0.80

 
$
1.56

 
$
1.50

-See Notes on the following page.






 
Exhibit 99.02
 
Page 2
 
Southern Company
 
Financial Highlights
Notes
(1)
For the three and six months ended June 30, 2020 and 2019, dilution does not change basic earnings per share by more than $0.02 and is not material.
(2)
Earnings for the six months ended June 30, 2020 primarily include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Earnings for the three months ended June 30, 2019 primarily include a $23 million pre-tax ($88 million after-tax) gain on the sale of Southern Power Company's Plant Nacogdoches and a $32 million pre-tax and after-tax goodwill impairment charge in contemplation of the sale of the utility infrastructure services business unit of PowerSecure, Inc. Earnings for the six months ended June 30, 2019 also include a preliminary $2.5 billion pre-tax ($1.3 billion after-tax) gain on the sale of Gulf Power Company.
(3)
Earnings for the three and six months ended June 30, 2020 and 2019 include charges, associated legal expenses, and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Earnings for the three and six months ended June 30, 2020 also include a $149 million pre-tax ($111 million after-tax) charge for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4, which significantly impacted earnings and earnings per share. Mississippi Power Company expects to substantially complete mine reclamation activities in 2020 and dismantlement of the abandoned gasifier-related assets and site restoration activities in 2025. The additional pre-tax period and closure costs associated with these activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, are estimated to total up to $11 million for the remainder of 2020, $16 million in 2021, and $11 million to $13 million annually in 2022 through 2025. Further charges for Georgia Power Company's construction of 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 six months ended June 30, 2020 and 2019 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 three and six months ended June 30, 2020 include a pre-tax impairment charge of $154 million ($74 million after tax) related to a leveraged lease.


Exhibit 99.03
 
Page 1
 
Southern Company
Significant Factors Impacting EPS
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June
 
Year-to-Date
June
 
2020
 
2019
 
Change
 
2020
 
2019
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
As Reported1 (See Notes)
$
0.58

 
$
0.86

 
$
(0.28
)
 
$
1.40

 
$
2.86

 
$
(1.46
)
 
 
 
 
 
 
 
 
 
 
 
 
  Significant Factors:
 
 
 
 
 
 
 
 
 
 
 
  Traditional Electric Operating Companies
 
 
 
 
$
(0.13
)
 
 
 
 
 
$
(0.05
)
Southern Power
 
 
 
 
(0.11
)
 
 
 
 
 
(0.09
)
Southern Company Gas
 
 
 
 
(0.03
)
 
 
 
 
 
(0.03
)
Parent Company and Other
 
 
 
 
—

 
 
 
 
 
(1.27
)
Increase in Shares
 
 
 
 
(0.01
)
 
 
 
 
 
(0.02
)
  Total–As Reported
 
 
 
 
$
(0.28
)
 
 
 
 
 
$
(1.46
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June
 
Year-to-Date
June
Non-GAAP Financial Measures
2020
 
2019
 
Change
 
2020
 
2019
 
Change
Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
Excluding Items (See Notes)
$
0.78

 
$
0.80

 
$
(0.02
)
 
$
1.56

 
$
1.50

 
$
0.06

 
 
 
 
 
 
 
 
 
 
 
 
  Total–As Reported
 
 
 
 
$
(0.28
)
 
 
 
 
 
$
(1.46
)
Less:
 
 
 
 
 
 
 
 
 
 
 
Acquisition and Disposition Impacts2
 
 
 
 
(0.05
)
 
 
 
 
 
(1.28
)
Estimated Loss on Plants Under Construction3
 
 
 
 
(0.10
)
 
 
 
 
 
(0.10
)
Wholesale Gas Services4
 
 
 
 
(0.04
)
 
 
 
 
 
(0.07
)
Asset Impairment5
 
 
 
 
(0.07
)
 
 
 
 
 
(0.07
)
  Total–Excluding Items
 
 
 
 
$
(0.02
)
 
 
 
 
 
$
0.06

- See Notes on the following page.



 
Exhibit 99.03
 
Page 2
 
Southern Company
 
Significant Factors Impacting EPS
Notes
 
 
 
 
 
 
 
 
(1)
For the three and six months ended June 30, 2020 and 2019, dilution does not change basic earnings per share by more than $0.02 and is not material.
(2)
Earnings for the six months ended June 30, 2020 primarily include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Earnings for the three months ended June 30, 2019 primarily include a $23 million pre-tax ($88 million after-tax) gain on the sale of Southern Power Company's Plant Nacogdoches and a $32 million pre-tax and after-tax goodwill impairment charge in contemplation of the sale of the utility infrastructure services business unit of PowerSecure, Inc. Earnings for the six months ended June 30, 2019 also include a preliminary $2.5 billion pre-tax ($1.3 billion after-tax) gain on the sale of Gulf Power Company.
(3)
Earnings for the three and six months ended June 30, 2020 and 2019 include charges, associated legal expenses, and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Earnings for the three and six months ended June 30, 2020 also include a $149 million pre-tax ($111 million after-tax) charge for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4, which significantly impacted earnings and earnings per share. Mississippi Power Company expects to substantially complete mine reclamation activities in 2020 and dismantlement of the abandoned gasifier-related assets and site restoration activities in 2025. The additional pre-tax period and closure costs associated with these activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, are estimated to total up to $11 million for the remainder of 2020, $16 million in 2021, and $11 million to $13 million annually in 2022 through 2025. Further charges for Georgia Power Company's construction of 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 six months ended June 30, 2020 and 2019 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 three and six months ended June 30, 2020 include a pre-tax impairment charge of $154 million ($74 million after tax) related to a leveraged lease.



Exhibit 99.04
Page 1
Southern Company
EPS Earnings Analysis
 
 
 
 
Description
Three Months Ended June
2020 vs. 2019
 
Year-to-Date
June
2020 vs. 2019
 
 
 
 
Retail Sales
$(0.09)
 
$(0.08)
 
 
 
 
Retail Revenue Impacts
0.11
 
0.20
 
 
 
 
Weather
(0.10)
 
(0.11)
 
 
 
 
Wholesale and Other Operating Revenues
0.01
 
—
 
 
 
 
Non-Fuel O&M
0.05
 
0.06
 
 
 
 
Depreciation and Amortization, Interest Expense, Other
(0.05)
 
(0.12)
 
 
 
 
Income Taxes
0.05
 
0.10
 
 
 
 
Total Traditional Electric Operating Companies
$(0.02)
 
$0.05
 
 
 
 
Southern Power
(0.02)
 
(0.02)
 
 
 
 
Southern Company Gas
0.01
 
0.04
 
 
 
 
Parent and Other
0.02
 
0.01
 
 
 
 
Increase in Shares
(0.01)
 
(0.02)
 
 
 
 
Total Change in EPS (Excluding Items)
$(0.02)
 
$0.06
 
 
 
 
Acquisition and Disposition Impacts1
(0.05)
 
(1.28)
 
 
 
 
Estimated Loss on Plants Under Construction2
(0.10)
 
(0.10)
 
 
 
 
Wholesale Gas Services3
(0.04)
 
(0.07)
 
 
 
 
Asset Impairment4
(0.07)
 
(0.07)
 
 
 
 
Total Change in EPS (As Reported)
$(0.28)
 
$(1.46)
- See Notes on the following page.
 
 
 
 




 
Exhibit 99.04
 
Page 2
 
Southern Company
 
EPS Earnings Analysis
 
Three and Six Months Ended June 2020 vs. June 2019
Notes
 
 
 
 
 
 
 
(1)
Earnings for the six months ended June 30, 2020 primarily include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Earnings for the three months ended June 30, 2019 primarily include a $23 million pre-tax ($88 million after-tax) gain on the sale of Southern Power Company's Plant Nacogdoches and a $32 million pre-tax and after-tax goodwill impairment charge in contemplation of the sale of the utility infrastructure services business unit of PowerSecure, Inc. Earnings for the six months ended June 30, 2019 also include a preliminary $2.5 billion pre-tax ($1.3 billion after-tax) gain on the sale of Gulf Power Company.
(2)
Earnings for the three and six months ended June 30, 2020 and 2019 include charges, associated legal expenses, and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Earnings for the three and six months ended June 30, 2020 also include a $149 million pre-tax ($111 million after-tax) charge for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4, which significantly impacted earnings and earnings per share. Mississippi Power Company expects to substantially complete mine reclamation activities in 2020 and dismantlement of the abandoned gasifier-related assets and site restoration activities in 2025. The additional pre-tax period and closure costs associated with these activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, are estimated to total up to $11 million for the remainder of 2020, $16 million in 2021, and $11 million to $13 million annually in 2022 through 2025. Further charges for Georgia Power Company's construction of 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 six months ended June 30, 2020 and 2019 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 three and six months ended June 30, 2020 include a pre-tax impairment charge of $154 million ($74 million after tax) related to a leveraged lease.




Exhibit 99.05
 
 
Southern Company
Consolidated Earnings
As Reported
(In Millions of Dollars)
 
Three Months Ended
June
 
Year-to-Date
June
 
2020
 
2019
 
Change
 
2020
 
2019
 
Change
Income Account-
 
 
 
 
 
 
 
 
 
 
 
Retail Electric Revenues-
 
 
 
 
 
 

 
 
 
 
Fuel
$
676

 
$
919

 
$
(243
)
 
$
1,353

 
$
1,723

 
$
(370
)
Non-Fuel
2,506

 
2,621

 
(115
)
 
4,907

 
4,900

 
7

Wholesale Electric Revenues
472

 
542

 
(70
)
 
889

 
1,041

 
(152
)
Other Electric Revenues
168

 
161

 
7

 
320

 
331

 
(11
)
Natural Gas Revenues
636

 
689

 
(53
)
 
1,885

 
2,163

 
(278
)
Other Revenues
162

 
166

 
(4
)
 
284

 
352

 
(68
)
Total Revenues
4,620

 
5,098

 
(478
)
 
9,638

 
10,510

 
(872
)
Fuel and Purchased Power
821

 
1,115

 
(294
)
 
1,638

 
2,135

 
(497
)
Cost of Natural Gas
144

 
191

 
(47
)
 
583

 
877

 
(294
)
Cost of Other Sales
74

 
84

 
(10
)
 
129

 
203

 
(74
)
Non-Fuel O&M
1,203

 
1,320

 
(117
)
 
2,498

 
2,634

 
(136
)
Depreciation and Amortization
873

 
755

 
118

 
1,730

 
1,506

 
224

Taxes Other Than Income Taxes
298

 
299

 
(1
)
 
629

 
628

 
1

Estimated Loss on Plant Vogtle Units 3 and 4
149

 
—

 
149

 
149

 
—

 
149

(Gain) Loss on Dispositions, net
—

 
(8
)
 
8

 
(39
)
 
(2,506
)
 
2,467

Total Operating Expenses
3,562

 
3,756

 
(194
)
 
7,317

 
5,477

 
1,840

Operating Income
1,058

 
1,342

 
(284
)
 
2,321

 
5,033

 
(2,712
)
Allowance for Equity Funds Used During Construction
35

 
31

 
4

 
68

 
63

 
5

Earnings from Equity Method Investments
30

 
33

 
(3
)
 
72

 
81

 
(9
)
Interest Expense, Net of Amounts Capitalized
444

 
429

 
15

 
900

 
859

 
41

Impairment of Leveraged Lease
154

 
—

 
154

 
154

 
—

 
154

Other Income (Expense), net
101

 
99

 
2

 
204

 
176

 
28

Income Taxes
5

 
145

 
(140
)
 
150

 
1,505

 
(1,355
)
Net Income
621

 
931

 
(310
)
 
1,461

 
2,989

 
(1,528
)
Less:
 
 
 
 
 
 
 
 
 
 
 
Dividends on Preferred Stock of Subsidiaries
4

 
3

 
1

 
7

 
7

 
—

Net Income (Loss) Attributable to Noncontrolling Interests
5

 
29

 
(24
)
 
(26
)
 
—

 
(26
)
NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY
$
612

 
$
899

 
$
(287
)
 
$
1,480

 
$
2,982

 
$
(1,502
)
Notes
 
 
 
 
 
 
 
 
 
 
 
- Certain prior year data may have been reclassified to conform with current year presentation.
 




Exhibit 99.06
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Company
Kilowatt-Hour Sales and Customers
(In Millions of KWHs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June
 
Year-to-Date June
 
2020
 
2019
 
Change
 
Weather Adjusted Change
 
2020
 
2019
 
Change
 
Weather Adjusted Change
Kilowatt-Hour Sales-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Sales
43,547

 
48,434

 
(10.1
)%
 
 
 
87,811

 
93,601

 
(6.2
)%
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
Total Retail Sales-
32,460

 
36,752

 
(11.7
)%
 
(7.5
)%
 
66,505

 
71,117

 
(6.5
)%
 
(3.7
)%
Residential
10,879

 
11,520

 
(5.6
)%
 
4.7
 %
 
21,745

 
22,421

 
(3.0
)%
 
3.8
 %
Commercial
10,531

 
12,386

 
(15.0
)%
 
(11.5
)%
 
21,470

 
23,372

 
(8.1
)%
 
(6.3
)%
Industrial
10,886

 
12,662

 
(14.0
)%
 
(14.0
)%
 
22,952

 
24,951

 
(8.0
)%
 
(8.0
)%
Other
164

 
184

 
(11.3
)%
 
(11.3
)%
 
338

 
373

 
(9.4
)%
 
(9.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholesale Sales
11,087

 
11,682

 
(5.1
)%
 
N/A

 
21,306

 
22,484

 
(5.2
)%
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands of Customers)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period Ended June
 
 
 
 
 
 
 
 
 
 
 
2020
 
2019
 
Change
 
 
Regulated Utility Customers-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Utility Customers-
 
 
 
 
 
 
 
8,580
 
8,477
 
1.2%
 
 
Total Traditional Electric
 
 
 
 
 
4,305
 
4,246
 
1.4%
 
 
Southern Company Gas
 
 
 
 
 
 
 
4,275
 
4,231
 
1.0%
 
 







Exhibit 99.07
 
 
 
 
 
 
 
 
Southern Company
Financial Overview
As Reported
(In Millions of Dollars)
 
Three Months Ended
June
 
Year-to-Date
June
 
2020
 
2019
 
% Change
 
2020
 
2019
 
% Change
Southern Company1, 2 –
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
4,620

 
$
5,098

 
(9.4
)%
 
$
9,638

 
$
10,510

 
(8.3
)%
Earnings Before Income Taxes
626

 
1,076

 
(41.8
)%
 
1,611

 
4,494

 
(64.2
)%
Net Income Available to Common
612

 
899

 
(31.9
)%
 
1,480

 
2,982

 
(50.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Power –
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
1,365

 
$
1,513

 
(9.8
)%
 
$
2,716

 
$
2,921

 
(7.0
)%
Earnings Before Income Taxes
395

 
388

 
1.8
 %
 
762

 
671

 
13.6
 %
Net Income Available to Common
298

 
296

 
0.7
 %
 
578

 
513

 
12.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
Georgia Power –
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
1,928

 
$
2,117

 
(8.9
)%
 
$
3,754

 
$
3,951

 
(5.0
)%
Earnings Before Income Taxes
319

 
577

 
(44.7
)%
 
665

 
970

 
(31.4
)%
Net Income Available to Common
308

 
448

 
(31.3
)%
 
638

 
759

 
(15.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
Mississippi Power –
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
283

 
$
313

 
(9.6
)%
 
$
559

 
$
600

 
(6.8
)%
Earnings Before Income Taxes
41

 
42

 
(2.4
)%
 
79

 
86

 
(8.1
)%
Net Income Available to Common
39

 
37

 
5.4
 %
 
71

 
74

 
(4.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
Southern Power2 –
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
439

 
$
510

 
(13.9
)%
 
$
814

 
$
953

 
(14.6
)%
Earnings Before Income Taxes
74

 
152

 
(51.3
)%
 
125

 
170

 
(26.5
)%
Net Income Available to Common
63

 
174

 
(63.8
)%
 
138

 
230

 
(40.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
Southern Company Gas –
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
636

 
$
689

 
(7.7
)%
 
$
1,885

 
$
2,163

 
(12.9
)%
Earnings Before Income Taxes
87

 
112

 
(22.3
)%
 
441

 
459

 
(3.9
)%
Net Income Available to Common
71

 
106

 
(33.0
)%
 
346

 
376

 
(8.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
- See Financial Highlights pages for discussion of certain significant items occurring during the periods presented.
(1)
Earnings comparisons to the prior year were significantly impacted by the preliminary gain associated with the sale of Gulf Power Company on January 1, 2019.
(2)
Earnings and revenue comparisons to the prior year were significantly impacted by Southern Power Company's dispositions of Plant Nacogdoches on June 13, 2019 and Plant Mankato on January 17, 2020.