Non-GAAP Financial Measures

Three Months Ended December

Year-to-Date December

Net Income - Excluding Items (in millions)

2018

2017

2018

2017

Net Income - As Reported

$278

$496

$2,226

$842

Estimated Loss on Plants Under Construction

(6)

211

1,102

3,366

Tax Impact

(94)

(25)

(376)

(975)

Loss on Plant Scherer Unit 3

-

-

-

33

Tax Impact

-

-

-

(13)

Acquisition, Disposition, and Integration Impacts

58

16

(35)

35

Tax Impact

(11)

10

294

12

Wholesale Gas Services

41

105

(42)

57

Tax Impact

(14)

(20)

4

-

Litigation Settlement

-

-

(24)

-

Tax Impact

-

-

6

-

Earnings Guidance Comparability Items:

Equity Return Related to Kemper IGCC

Schedule Extension

-

-

-

(47)

Tax Impact

-

-

-

(9)

Adoption of Tax Reform

4

(284)

(27)

(284)

Net Income – Excluding Items

$256

$509

$3,128

$3,017

Average Shares Outstanding – (in millions)

1,034

1,007

1,020

1,000

Basic Earnings Per Share – Excluding Items

$0.25

$0.51

$3.07

$3.02

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

Southern Company

Financial Highlights

(In Millions of Dollars Except Earnings Per Share)

Three Months EndedDecember

Year-to-Date

December

Net Income–As Reported (See Notes)

2018

2017

2018

2017

Traditional Electric Operating Companies

$

407

$

(191)

$

2,117

$

(193)

Southern Power

(48)

795

187

1,071

Southern Company Gas

78

(60)

372

243

Total

437

544

2,676

1,121

Parent Company and Other

(159)

(48)

(450)

(279)

Net Income–As Reported

$

278

$

496

$

2,226

$

842

Basic Earnings Per Share1

$

0.27

$

0.49

$

2.18

$

0.84

Average Shares Outstanding (in millions)

1,034

1,007

1,020

1,000

End of Period Shares Outstanding (in millions)

1,034

1,008

Non-GAAP Financial Measures

Three Months EndedDecember

Year-to-Date

December

Net Income–Excluding Items (See Notes)

2018

2017

2018

2017

Net Income–As Reported

$

278

$

496

$

2,226

$

842

Estimated Loss on Plants Under Construction2

(6)

211

1,102

3,366

Tax Impact

(94)

(25)

(376)

(975)

Loss on Plant Scherer Unit 33

—

—

—

33

Tax Impact

—

—

—

(13)

Acquisition, Disposition, and Integration Impacts4

58

16

(35)

35

Tax Impact

(11)

10

294

12

Wholesale Gas Services5

41

105

(42)

57

Tax Impact

(14)

(20)

4

—

Litigation Settlement6

—

—

(24)

—

Tax Impact

—

—

6

—

Earnings Guidance Comparability Items:

Equity Return Related to Kemper IGCC

Schedule Extension7

—

—

—

(47)

Tax Impact

—

—

—

(9)

Adoption of Tax Reform8

4

(284)

(27)

(284)

Net Income–Excluding Items

$

256

$

509

$

3,128

$

3,017

Basic Earnings Per Share–Excluding Items

$

0.25

$

0.51

$

3.07

$

3.02

-See Notes on the following page.

Southern Company

Financial Highlights

Notes

(1) For the three and twelve months ended December 31, 2018 and 2017, dilution does not change basic earnings per share by more than 1 cent and is not material.

(2) Earnings for the three and twelve months ended December 31, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a state income tax valuation allowance recorded in the twelve months ended December 31, 2017 related to a net operating loss carryforward associated with the Kemper IGCC. 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. These items significantly impacted the presentation of earnings and earnings per share. Additional pre-tax closure costs, including mine reclamation, of up to $25 million for Mississippi Power's Kemper IGCC may occur through 2020. Mississippi Power is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.

(3) Earnings for the twelve months ended December 31, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power's ownership of Plant Scherer Unit 3 as a result of its 2017 retail rate case settlement.

(4) 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) in connection with the finalization of the gain and loss calculations for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax, which includes $10 million related to reapportioning state income taxes as a result of the dispositions). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $291 million pre-tax gain ($51 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with Southern Power's disposition of Plants Stanton and Oleander; and (iv) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Earnings for the three and twelve months ended December 31, 2017 include other acquisition, disposition, and integration costs related to the acquisition of Southern Company Gas and the dispositions of Elizabethtown Gas and Elkton Gas. Further impacts are expected to be recorded in 2019 including a preliminary gain of $2.5 billion pre tax ($1.3 billion after tax) in connection with the sale of Gulf Power, as well as impacts related to Southern Power's announced sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.

(5) Earnings for the three and twelve months ended December 31, 2018 and 2017 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with 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.

(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 in the Gulf of Mexico. Further proceeds are not expected.

(7) Earnings for the twelve months ended December 31, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.

(8) Earnings for the three and twelve months ended December 31, 2018 and 2017 include net tax impacts as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's performance.

Southern Company

Significant Factors Impacting EPS

Three Months EndedDecember

Year-to-DateDecember

2018

2017

Change

2018

2017

Change

Earnings Per Share–

As Reported1 (See Notes)

$

0.27

$

0.49

$

(0.22)

$

2.18

$

0.84

$

1.34

Significant Factors:

Traditional Electric Operating Companies

$

0.59

$

2.31

Southern Power

(0.84)

(0.88)

Southern Company Gas

0.14

0.13

Parent Company and Other

(0.10)

(0.18)

Increase in Shares

(0.01)

(0.04)

Total–As Reported

$

$

1.34

Three Months EndedDecember

Year-to-DateDecember

Non-GAAP Financial Measures

2018

2017

Change

2018

2017

Change

Earnings Per Share–

Excluding Items (See Notes)

$

0.25

$

0.51

$

(0.26)

$

3.07

$

3.02

$

0.05

Total–As Reported

$

(0.22)

$

1.34

Estimated Loss on Plants Under Construction2

(0.29)

(1.62)

Loss on Plant Scherer Unit 33

—

(0.02)

Acquisition, Disposition, and Integration

Impacts4

0.02

0.21

Wholesale Gas Services5

(0.05)

(0.09)

Litigation Settlement6

—

(0.02)

Adoption of Tax Reform7

0.28

0.25

Total–Excluding Items

$

(0.26)

$

0.05

- See Notes on the following page.

Southern Company

Significant Factors Impacting EPS

Notes

(1) For the three and twelve months ended December 31, 2018 and 2017, dilution does not change basic earnings per share by more than 1 cent and is not material.

(2) Earnings for the three and twelve months ended December 31, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a state income tax valuation allowance recorded in the twelve months ended December 31, 2017 related to a net operating loss carryforward associated with the Kemper IGCC. 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. These items significantly impacted the presentation of earnings and earnings per share. Additional pre-tax closure costs, including mine reclamation, of up to $25 million for Mississippi Power's Kemper IGCC may occur through 2020. Mississippi Power is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.

Earnings for the twelve months ended December 31, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.

(3) Earnings for the twelve months ended December 31, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power's ownership of Plant Scherer Unit 3 as a result of its 2017 retail rate case settlement.

(4) 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) in connection with the finalization of the gain and loss calculations for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax, which includes $10 million related to reapportioning state income taxes as a result of the dispositions). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $291 million pre-tax gain ($51 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with Southern Power's disposition of Plants Stanton and Oleander; and (iv) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Earnings for the three and twelve months ended December 31, 2017 include other acquisition, disposition, and integration costs related to the acquisition of Southern Company Gas and the dispositions of Elizabethtown Gas and Elkton Gas. Further impacts are expected to be recorded in 2019 including a preliminary gain of $2.5 billion pre tax ($1.3 billion after tax) in connection with the sale of Gulf Power, as well as impacts related to Southern Power's announced sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.

(5) Earnings for the three and twelve months ended December 31, 2018 and 2017 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with 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.

(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 in the Gulf of Mexico. Further proceeds are not expected.

(7) Earnings for the three and twelve months ended December 31, 2018 and 2017 include net tax impacts as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's performance.

Southern Company

EPS Earnings Analysis

Description

Three Months Ended December2018 vs. 2017

Retail Sales

$0.01

$0.05

Retail Revenue Impacts, Excluding Tax Reform Changes

(0.10)

(0.08)

Weather

—

0.18

Other Operating Revenues

—

(0.01)

Purchased Power Capacity Expense

—

0.01

Non-Fuel O&M

0.01

0.02

Depreciation and Amortization

(0.01)

(0.07)

Taxes Other Than Income Taxes

—

(0.02)

Gain on Dispositions, Net

(0.02)

(0.02)

Interest Expense

0.01

(0.02)

Other Income and Deductions

—

0.01

Impacts of Tax Reform (Ongoing Basis), Net of Amounts to be Returned to Customers

(0.04)

0.15

Income Taxes, Excluding Tax Reform

—

(0.04)

Dividends on Preferred and Preference Stock

—

0.02

Total Traditional Electric Operating Companies

$(0.14)

$0.18

Southern Power

(0.03)

0.02

Southern Company Gas

(0.01)

0.04

Parent and Other

(0.07)

(0.13)

Increase in Shares

(0.01)

(0.06)

Total Change in EPS (Excluding Items)

$(0.26)

$0.05

Estimated Loss on Plants Under Construction1

0.29

1.62

Loss on Plant Scherer Unit 32

—

0.02

Acquisition, Disposition, and Integration Impacts3

(0.02)

(0.21)

Wholesale Gas Services4

0.05

0.09

Litigation Settlement5

—

0.02

Adoption of Tax Reform6

(0.28)

(0.25)

Total Change in EPS (As Reported)

$(0.22)

$1.34

- See Notes on the following page.

Southern Company

EPS Earnings Analysis

Three and Twelve Months Ended December 2018 vs. December 2017

Notes

(1) Earnings for the three and twelve months ended December 31, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Additionally, the three and twelve months ended December 31, 2018 include a $95 million credit to earnings primarily resulting from the reduction of a state income tax valuation allowance recorded in the twelve months ended December 31, 2017 related to a net operating loss carryforward associated with the Kemper IGCC. 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. These items significantly impacted the presentation of earnings and earnings per share. Additional pre-tax closure costs, including mine reclamation, of up to $25 million for Mississippi Power's Kemper IGCC may occur through 2020. Mississippi Power is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.

Earnings for the twelve months ended December 31, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.

(2) Earnings for the twelve months ended December 31, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power's ownership of Plant Scherer Unit 3 as a result of its 2017 retail rate case settlement.

(3) 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) in connection with the finalization of the gain and loss calculations for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas and (ii) other acquisition, disposition, and integration costs of $31 million pre tax ($32 million after tax, which includes $10 million related to reapportioning state income taxes as a result of the dispositions). Earnings for the twelve months ended December 31, 2018 include: (i) a net combined $291 million pre-tax gain ($51 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with Southern Power's disposition of Plants Stanton and Oleander; and (iv) $95 million pre tax ($77 million after tax) of other acquisition, disposition, and integration costs. Earnings for the three and twelve months ended December 31, 2017 include other acquisition, disposition, and integration costs related to the acquisition of Southern Company Gas and the dispositions of Elizabethtown Gas and Elkton Gas. Further impacts are expected to be recorded in 2019 including a preliminary gain of $2.5 billion pre tax ($1.3 billion after tax) in connection with the sale of Gulf Power, as well as impacts related to Southern Power's announced sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.

(4) Earnings for the three and twelve months ended December 31, 2018 and 2017 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with 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, 2018 include the settlement proceeds of Mississippi Power's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.

(6) Earnings for the three and twelve months ended December 31, 2018 and 2017 include net tax impacts as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's performance.

Southern Company

Consolidated Earnings

As Reported

(In Millions of Dollars)

Three Months Ended December

Year-to-Date

December

2018

2017

Change

2018

2017

Change

Income Account-

Retail Electric Revenues-

Fuel

$

1,012

$

966

$

46

$

4,283

$

4,095

$

188

Non-Fuel

2,297

2,578

(281)

10,939

11,235

(296)

Wholesale Electric Revenues

579

559

20

2,516

2,426

90

Other Electric Revenues

166

171

(5)

664

681

(17)

Natural Gas Revenues

1,048

1,045

3

3,854

3,791

63

Other Revenues

235

310

(75)

1,239

803

436

Total Revenues

5,337

5,629

(292)

23,495

23,031

464

Fuel and Purchased Power

1,334

1,245

89

5,608

5,263

345

Cost of Natural Gas

486

515

(29)

1,539

1,601

(62)

Cost of Other Sales

118

220

(102)

806

513

293

Non-Fuel O & M

1,672

1,640

32

5,889

5,739

150

Depreciation and Amortization

793

774

19

3,131

3,010

121

Taxes Other Than Income Taxes

325

309

16

1,315

1,250

65

Estimated Loss on Plants Under Construction

(8)

207

(215)

1,097

3,362

(2,265)

Impairment Charges

13

—

13

210

—

210

Gain on Dispositions, net

26

(20)

46

(291)

(40)

(251)

Total Operating Expenses

4,759

4,890

(131)

19,304

20,698

(1,394)

Operating Income

578

739

(161)

4,191

2,333

1,858

Allowance for Equity Funds Used During Construction

39

27

12

138

160

(22)

Earnings from Equity Method Investments

40

6

34

148

106

42

Interest Expense, Net of Amounts Capitalized

456

446

10

1,842

1,694

148

Other Income (Expense), net

(81)

(1)

(80)

114

163

(49)

Income Taxes

(149)

(175)

26

449

142

307

Net Income

269

500

(231)

2,300

926

1,374

Less:

Dividends on Preferred and Preference Stock of Subsidiaries

4

6

(2)

16

38

(22)

Net Income Attributable to Noncontrolling Interests

(13)

(2)

(11)

58

46

12

NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY

$

278

$

496

$

(218)

$

2,226

$

842

$

1,384

Notes

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

Southern Company

Kilowatt-Hour Sales and Customers

(In Millions of KWHs)

Three Months Ended December

Year-to-Date December

As Reported

2018

2017

Change

Weather Adjusted Change

2018

2017

Change

Weather Adjusted Change

Kilowatt-Hour Sales-

Total Sales

49,539

49,915

(0.8)

%

212,144

205,541

3.2

%

Total Retail Sales-

37,973

37,705

0.7

%

0.3

%

162,182

156,507

3.6

%

0.9

%

Residential

12,475

12,034

3.7

%

2.2

%

54,590

50,536

8.0

%

1.2

%

Commercial

12,346

12,333

0.1

%

0.3

%

53,451

52,340

2.1

%

0.5

%

Industrial

12,949

13,130

(1.4)

%

(1.4)

%

53,341

52,785

1.1

%

1.1

%

Other

203

208

(3.1)

%

(3.2)

%

800

846

(5.5)

%

(5.7)

%

Total Wholesale Sales

11,566

12,210

(5.3)

%

N/A

49,962

49,034

1.9

%

N/A

(In Thousands of Customers)

Period Ended December

2018

2017

Change

Regulated Utility Customers-

Total Utility Customers1-

8,933

9,263

(3.6)

%

Total Traditional Electric

4,685

4,640

1.0

%

Southern Company Gas1

4,248

4,623

(8.1)

%

Notes

(1) Includes total customers of approximately 407,000 at December 31, 2017 related to Elizabethtown Gas, Elkton Gas, and Florida City Gas, which were sold in July 2018.

Southern Company

Financial Overview

As Reported

(In Millions of Dollars)

Three Months Ended December

Year-to-Date

December

2018

2017

% Change

2018

2017

% Change

Southern Company1 –

Operating Revenues

$

5,337

$

5,629

(5.2)

%

$

23,495

$

23,031

2.0

%

Earnings Before Income Taxes

120

325

(63.1)

%

2,749

1,068

157.4

%

Net Income Available to Common

278

496

(44.0)

%

2,226

842

164.4

%

Alabama Power –

Operating Revenues

$

1,316

$

1,433

(8.2)

%

$

6,032

$

6,039

(0.1)

%

Earnings Before Income Taxes

96

198

(51.5)

%

1,236

1,434

(13.8)

%

Net Income Available to Common

73

119

(38.7)

%

930

848

9.7

%

Georgia Power –

Operating Revenues

$

1,818

$

1,884

(3.5)

%

$

8,420

$

8,310

1.3

%

Earnings Before Income Taxes

175

352

(50.3)

%

1,007

2,258

(55.4)

%

Net Income Available to Common

173

227

(23.8)

%

793

1,414

(43.9)

%

Gulf Power –

Operating Revenues

$

359

$

372

(3.5)

%

$

1,465

$

1,516

(3.4)

%

Earnings Before Income Taxes

(6)

30

(120.0)

%

140

229

(38.9)

%

Net Income Available to Common

13

19

(31.6)

%

160

135

18.5

%

Mississippi Power –

Operating Revenues

$

308

$

271

13.7

%

$

1,265

$

1,187

6.6

%

Earnings (Loss) Before Income Taxes

24

(202)

N/M

134

(3,120)

N/M

Net Income (Loss) Available to Common

149

(556)

N/M

235

(2,590)

N/M

Southern Power1 –

Operating Revenues

$

506

$

478

5.9

%

$

2,205

$

2,075

6.3

%

Earnings Before Income Taxes

(14)

(17)

N/M

82

178

(53.9)

%

Net Income Available to Common

(48)

795

N/M

187

1,071

(82.5)

%

Southern Company Gas1 –

Operating Revenues

$

1,048

$

1,079

(2.9)

%

$

3,909

$

3,920

(0.3)

%

Earnings Before Income Taxes

67

74

(9.5)

%

836

610

37.0

%

Net Income Available to Common

78

(60)

N/M

372

243

53.1

%

N/M - not meaningful

Notes

- See Financial Highlights pages for discussion of certain significant items occurring during the periods presented.

(1) Financial comparisons to the prior year were 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 Plants Oleander and Stanton on December 4, 2018; and (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.