Fourth Quarter 2015 Earnings

Conference Call

February 3, 2016

Cautionary Note Regarding Forward-Looking Statements Certain information contained in this presentation is forward‐looking information based on current expectations and plans that involve risks and uncertainties. Forward‐looking information includes, among other things,

statements concerning projected costs and schedules for the completion and start-up of ongoing construction projects, earnings per share guidance, expected economic development, expected credit metrics,

expected regulatory approval timing for the acquisition of AGL Resources Inc., and projected financing plans. 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, 2014, and subsequent securities filings, could cause actual results to differ materially from

management expectations as suggested by such forward‐looking information: the impact of recent and future federal and state regulatory changes, including legislative and regulatory initiatives regarding deregulation

and restructuring of the electric utility industry, environmental laws including regulation of water, coal combustion residuals, and emissions of sulfur, nitrogen, carbon dioxide, soot, particulate matter, hazardous air

pollutants, including mercury, and other substances, and also changes in tax and other laws and regulations to which Southern Company and its subsidiaries are subject, as well as changes in application of existing

laws and regulations; current and future litigation, regulatory investigations, proceedings, or inquiries, including Federal Energy Regulatory Commission matters and Internal Revenue Service and state tax audits; the

effects, extent, and timing of the entry of additional competition in the markets in which Southern Company's subsidiaries operate; variations in demand for electricity, including those relating to weather, the general

economy and recovery from the last recession, population and business growth (and declines), the effects of energy conservation and efficiency measures, including from the development and deployment of

alternative energy sources such as self-generation and distributed generation technologies, and any potential economic impacts resulting from federal fiscal decisions; available sources and costs of fuels; effects of

inflation; the ability to control costs and avoid cost overruns during the development and construction of facilities, which include the development and construction of generating facilities with designs that have not been

finalized or previously constructed, including changes in labor costs and productivity, adverse weather conditions, shortages and inconsistent quality of equipment, materials, and labor, contractor or supplier delay,

non-performance under construction or other agreements, operational readiness, including specialized operator training and required site safety programs, unforeseen engineering or design problems, start-up

activities (including major equipment failure and system integration), and/or operational performance (including additional costs to satisfy any operational parameters ultimately adopted by any Public Service

Commission (“PSC”)); the ability to construct facilities in accordance with the requirements of permits and licenses, 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; investment performance of Southern Company's employee and retiree benefit plans and the Southern

Company system's nuclear decommissioning trust funds; advances in technology; state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to

fuel and other cost recovery mechanisms; legal proceedings and regulatory approvals and actions related to Plant Vogtle Units 3 and 4, including Georgia PSC approvals and Nuclear Regulatory Commission actions

and related legal proceedings involving the commercial parties; actions related to cost recovery for the integrated coal gasification combined cycle facility under construction in Kemper County, Mississippi (“Kemper

IGCC”), including the ultimate impact of the 2015 decision of the Mississippi Supreme Court, the Mississippi PSC's December 2015 rate order, and related legal or regulatory proceedings, Mississippi PSC review of

the prudence of Kemper IGCC costs and approval of permanent rate recovery plans, actions relating to proposed securitization, satisfaction of requirements to utilize investment tax credits and grants, and the ultimate

impact of the termination of the proposed sale of an interest in the Kemper IGCC to South Mississippi Electric Power Association; the ability to successfully operate the electric utilities' generating, transmission, and

distribution facilities and the successful performance of necessary corporate functions; the inherent risks involved in operating and constructing nuclear generating facilities, including environmental, health, regulatory,

natural disaster, terrorism, and financial risks; the performance of projects undertaken by the non-utility businesses and the success of efforts to invest in and develop new opportunities; internal restructuring or other

restructuring options that may be pursued; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Company or

its subsidiaries; the expected timing, likelihood, and benefits of completion of the proposed acquisition of AGL Resources, including the failure to receive, on a timely basis or otherwise, the required approvals by

government or regulatory agencies (including the terms of such approvals), the possibility that long-term financing for the acquisition may not be put in place prior to the closing, the risk that a condition to closing of the

acquisition or funding of the bridge financing may not be satisfied, the possibility that the anticipated benefits from the acquisition cannot be fully realized or may take longer to realize than expected, the possibility that

costs related to the integration of Southern Company and AGL Resources will be greater than expected, the credit ratings of the combined company or its subsidiaries may be different from what the parties expect, the

ability to retain and hire key personnel and maintain relationships with customers, suppliers, or other business partners, the diversion of management time on acquisition-related issues, and the impact of legislative,

regulatory, and competitive changes; the ability of counterparties of Southern Company and its subsidiaries to make payments as and when due and to perform as required; the ability to obtain new short- and long-

term contracts with wholesale customers; the direct or indirect effect on the Southern Company system's business resulting from cyber intrusion or terrorist incidents and the threat of terrorist incidents; interest rate

fluctuations and financial market conditions and the results of financing efforts; changes in Southern Company's and any of its subsidiaries' credit ratings, including impacts on interest rates, access to capital markets,

and collateral requirements; the impacts of any sovereign financial issues, including impacts on interest rates, access to capital markets, impacts on currency exchange rates, counterparty performance, and the

economy in general, as well as potential impacts on the benefits of the U.S. Department of Energy loan guarantees; the ability of Southern Company's subsidiaries to obtain additional generating capacity at

competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes and other storms, droughts, pandemic health events such as influenzas, or other similar occurrences; the direct or

indirect effects on the Southern Company system's business resulting from incidents affecting the U.S. electric grid or operation of generating resources; and the effect of accounting pronouncements issued

periodically by standard-setting bodies. Southern Company expressly disclaims any obligation to update any forward‐looking information.

2

Vogtle Construction Site – January 2016

3

Vogtle 3&4 Construction Update

Recent Progress

Unit 3

Placed concrete in initial Shield Building panels (“Course 1”)

Placed Turbine Building Table Top concrete

Unit 4

Set Containment Vessel Ring 1

Cooling Tower installation to 50% vertical (300 ft)

Major Modules

Ongoing assembly of CA-03 (Unit 3), CA-05 (Unit 4), and

CA-01 (Unit 4)

Unit 4 – Ring 1 Set on Containment Vessel

4

Unit 3

Near Term

Unit 3 •Continue setting Shield Building panels (“Course 2”)

•Set Containment Vessel Ring 2

Unit 4 •Complete Cooling Tower

•Set up main step-up transformers

On the Horizon •Erect turbine generator (Unit 3)

•CA-20 assembly (Unit 4)

Permanent rates in place for in-service assets • Combined cycle operating reliably and efficiently

Expected in-service date for remainder of project in third quarter 2016 • Repairs and improvements to refractory lining

Working towards next set of milestones • Commissioning of Lignite Feed and Dryer Systems

• Gasifier refractory cure

• Fluidization of Train ‘B’

• First syngas

Kemper Project Update

5

Q4 2015

Reported Earnings Per Share $0.30 $2.60

Impact of increase in Kemper cost estimate $0.12 $0.25

MCAR settlement costs - $0.01

AGL Resources acquisition costs $0.02 $0.03

Earnings Per Share x-items $0.44 $2.89

6

2015 Earnings Results

FY 2014 FY 2015

$2.80

$2.89

+24¢

-7¢

-3¢

-4¢

Retail

Revenue

Impacts

Weather

Interest

Expense

Traditional

Operating

Companies +7¢

-5¢

-1¢

FY 2015 vs. FY 2014 Adjusted EPS Drivers

7

-4¢

Shares

+3¢

Retail

Sales

Non-Fuel

O&M

Note: Excludes 2015 & 2014 EPS impacts of -25¢ & -61¢, respectively, for Kemper IGCC impacts, 2015 EPS impact of -3¢ for AGL Resources acquisition cost, and

2015 EPS impact of -1¢ for the MCAR Insurance Settlement; GAAP EPS was $2.60 for 2015 vs. $2.19 for 2014

D&A +1¢

Southern

Power

+5¢

+1¢

-1¢

Income

Taxes

-1¢

+1¢

Parent &

Other

Wholesale

Operations

Taxes Other

Other

Operating

Revenues

Other

Income &

Deductions

Weather Normal Retail Sales Growth

8

Note: Weather Adjusted Retail Sales Growth also reflects adjustment of 2014 KWH sales consistent with Mississippi Power’s updated

methodology to estimate the unbilled revenue allocation among customer classes implemented in the first quarter 2015

Residential Commercial

Industrial

Total

Retail Sales

Residential Commercial Industrial Total

Retail Sales

0.4%

0.9%

-0.3%

0.3%

1.2%

1.0% 1.0% 1.1%

Expected 2016 Sales Growth 2015 vs 2014

• Strong residential customer growth continued in 2015 (+37K customers year-over-year)

• Every quarter of 2015 reflected year-over-year commercial growth (first time post-recession)

• Housing-related industries and automotive production are the bright spots for industrial

• Economic development pipeline remains robust, with recent announcements and prospects spanning

automotive, aerospace, chemicals, and fabricated and primary metals sectors

Total

$billions 2016 2017 2018 '16-'18

New Generation 1.2 0.7 0.4 2.3

Environmental 0.7 0.5 0.6 1.8

Generation Maintenance 1.0 0.7 0.7 2.5

Transmission 0.6 0.7 0.7 2.0

Distribution 0.8 0.9 0.9 2.5

Nuclear Fuel 0.2 0.3 0.3 0.8

Other 0.4 0.4 0.4 1.1

Traditional OpCo Total 4.9 4.1 3.9 13.0

Southern Power Base 1.6 0.1 0.1 1.9

Southern Power Placeholders 0.8 0.9 1.4 3.1

Total 7.3 5.2 5.5 17.9 $ $ $ $

2016 – 2018 CapEx Forecast – by Function

9

(1) Does not include any potential costs for compliance with EPA clean power plan regulations. Also excludes costs related to compliance with coal combustion residuals regulations accounted for as

asset retirement obligations. (2) Includes amounts for which Mississippi Power will not seek recovery above the $2.88 billion Kemper cost cap, net of DOE grants and cost cap exceptions of ~$450 million in 2016. (3) Totals may not add due to rounding and amounts are subject to change with filing of the 2015 10-K.

(1)

(2)

(3)

Total

$billions 2016 2017 2018 '16-'18

Alabama Power 1.3 1.3 1.3 3.9

Georgia Power 2.5 2.4 2.1 7.0

Gulf Power 0.2 0.2 0.2 0.6

Mississippi Power 0.8 0.2 0.3 1.3

Other Subsidiaries 0.1 0.1 0.0 0.2

Traditional OpCo Total 4.9 4.1 3.9 13.0

Southern Power Base 1.6 0.1 0.1 1.9

Southern Power Placeholders 0.8 0.9 1.4 3.1

Total 7.3 5.2 5.5 17.9

2016 – 2018 CapEx Forecast – by Company

$ $ $ $

10

Does not include any potential costs for compliance with EPA clean power plan regulations. Also excludes costs related to compliance with coal combustion residuals regulations accounted for as

asset retirement obligations.

Includes amounts for which Mississippi Power will not seek recovery above the $2.88 billion Kemper cost cap, net of DOE grants and cost cap exceptions of ~$450 million in 2016.

Totals may not add due to rounding and amounts are subject to change with filing of the 2015 10-K.

Financing Plan Summary

• Debt issuance for AGL Resources acquisition ($8B) expected

to be completed prior to closing

• Still expect to have issued at least $1B of equity by closing,

with $1.2B in calendar year 2016

• Remainder of 2016 to 2018 financing plan is heavily

influenced by extension of bonus depreciation

– Improved credit metrics 2016-2018

– No equity requirements beyond 2016

– Less exposure to capital markets for traditional operating companies

• Remain committed to a high degree of financial integrity and

targeting a credit profile supportive of current ratings

11

2016 Guidance

$2.76

$2.88

$2.84

$3.00

$2.92

$2.86

2015

-6¢

-4¢

Impact of shares to fund

AGL Resources transaction

Estimated impact of

bonus depreciation

$2.76

$2.88

$2.82 $2.82

2015 Guidance 2016 Guidance

2016

12

13

2016

$2.76

$2.88

2016 & Long-Term EPS Guidance

• 2016 Guidance is standalone (excludes AGL Resources in 2016)

• Long-term growth rate assumes AGL Resources acquisition

closes in the second half of 2016

• All years exclude cost to achieve the AGL Resources merger

Q1 2016 Estimate: $0.53 per share

Appendix

2015 Southern Power Project Announcements

15

2015 Facility Location Type Owned MW Contract Length Expected COD

1st Quarter

Decatur – Parkway GA Solar 84 25-yr 2015

Decatur – County GA Solar 20 20-yr 2015

Kay OK Wind 299 20-yr 2015

2nd Quarter

Lost Hills-Blackwell CA Solar 18 29-yr 2015

North Star CA Solar 31 20-yr 2015

Pawpaw GA Solar 30 30-yr 2016

Butler Solar Farm (Strata)

GA Solar 20 20-yr 2016

Butler Solar Facility (Community)

GA Solar 104 30-yr 2016

3rd Quarter

Desert Stateline CA Solar 153 20-yr 2016

Tranquillity CA Solar 105 18-yr 2016

Grant1 OK Wind 152 20-yr 2016

4th Quarter

Morelos del Sol CA Solar 14 20-yr 2015

Roserock TX Solar 82 20-yr 2016

Garland CA Solar 105 16-yr2 2016

In 2015, Southern Power contracted for over 1,000 MW of renewables at an average contract length of ~22 years

466 MW COD in 2015

751 MW expected COD in 2016

1,217 MW Total

1 Acquisition subject to closing. 2 Weighted average contract length of two power purchase agreements.

2017 2018 2016 - 2018

Issued Remaining Total Projected Projected Total

Projected Debt Issuances

Georgia Power DOE Loan - 450 450 350 275 1,075

Mississippi Power Bank Debt(1)

- 1,200 1,200 - - 1,200

Mississippi Power Securitization - - - 1,000 - 1,000

Capital Markets

Alabama Power 400 - 400 600 300 1,300

Georgia Power - 600 600 700 1,000 2,300

Gulf Power - 150 150 100 - 250

Mississippi Power - - - 1,000 250 1,250

Southern Power(2)

- 1,200 1,200 500 500 2,200

Parent(3)

- 8,000 8,000 - 750 8,750

Total Capital Markets 400 9,950 10,350 2,900 2,800 16,050

Total Debt Issuances 400 11,600 12,000 4,250 3,075 19,325

Common Equity Needs - 1,200 1,200 - - 1,200

2016

2016 – 2018 Projected Financing Plan $ in millions

16

(1) Includes the refinancing of $900 million of existing bank debt in 2016 (2) Includes $600 million, $250 million, and $500 million in financing associated with placeholder projects in 2016, 2017, and 2018, respectively (3) Includes $400 million in financing associated with Southern Power placeholder projects in 2018

Senior Unsecured (Moody’s/S&P/Fitch)

Southern Company Baa1/BBB+/A

(N/N/N*)

Alabama Power A1/A-/A+ (S/N/S)

Georgia Power A3/A-/A+ (S/N/S)

Gulf Power A2/A-/A (S/N/S)

Mississippi Power Baa3/BBB+/A-

(N/N/N)

Southern Power Baa1/BBB+/BBB+

(S/N/S)

Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

The graphic above represents a simplified diagram highlighting major SO issuing entities.

S – Stable outlook, N – Negative Outlook, N* - Negative Watch 17

Southern Company and Subsidiary Ratings

2016** 2017 2018 2019 2020

Long-term Debt Maturity Schedule $ in millions - as of 12/31/15

18

(1) Excludes $475 million of short term bank loans maturing in 2016 (2) $576 million of Mississippi Power intercompany loans, maturing in 2017, are eliminated at the consolidated level

2016 2017 2018 2019 2020

SO Consolidated Long-Term

Debt Maturities 2016-2020

$9,214

2016 2017 2018 2019 2020

Alabama Power 200 561 - 200 250

Georgia Power 704 450 750 500 37

Gulf Power 110 85 - - 175

Mississippi Power(1) 725 611 - 125 7

Southern Power 400 500 350 - 300

Parent 500 800 500 350 600

SO Consolidated(2) 2,639 2,431 1,600 1,175 1,369

Unused Credit Lines $ 1,340 $ 1,732 $ 275 $ 195 $ 2,250 $ 566 $ 70 $ 6,428

Cash(3)

156 95 69 97 46 832 99 1,395

Total 1,496 1,827 344 292 2,296 1,398 169 7,823

Less: Outstanding CP - 158 142 - 388 - 52 740

Less: PCBs Floaters(4)

810 872 82 40 - - - 1,805

Net Available Liquidity $ 686 $ 797 $ 120 $ 252 $ 1,908 $ 1,398 $ 117 $ 5,278

Other(2)

SO ConsolidatedAlabama Power Georgia Power Gulf Power Mississippi Power Parent(1)

Southern Power

• Extended the maturity of syndicated credit facilities from 2018 to 2020 with total available credit of $4.4B under these facilities

• Concurrent with the syndication of the AGL Resources bridge facility, added an additional $1B credit facility at the parent level

which matures in 2018

Southern Company Liquidity and Credit $ in millions - as of 12/31/15

19

(1) Does not include $8.1B AGL Resources acquisition bridge facility (2) Other includes balance amounts from non-SEC reporting subsidiaries including SEGCO, Southern Nuclear, SouthernLINC and others (3) Includes Cash and Cash Equivalents; subject to revision prior to filing 2015 Southern Company 10-K (4) PCB Floaters include all variable rate pollution control revenue bonds outstanding

2016 2017 2018 2019 2020

Consolidated Credit Facilities Expirations(1)

410$ 30$ 1,665$ -$ 4,400$

Georgia • Filed merger approval application on December 18, 2015

• Evidentiary hearings scheduled for March 15, April 14 and May 3, 2016 2nd Quarter

Illinois • Filed merger approval application on October 8, 2015

• Evidentiary hearings scheduled for April 20 – April 21, 2016 3rd Quarter

Maryland • Filed merger approval application on November 3, 2015

• Evidentiary hearings scheduled for March 1-2, 2016 2nd Quarter

New Jersey • Filed merger approval application on October 16, 2015

• Evidentiary hearings scheduled for May 17 – May 20, 2016 3rd Quarter

Virginia • Filed merger approval application on October 26, 2015 1st Quarter

California • Filed merger approval application on November 9, 2015 1st Quarter

Status of Major State Filings for AGL Resources Merger

20

The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired on December 4, 2015

Generation Portfolio Diversity

21

Capacity Factors Q4 FY

2014 2015 2014 2015

Coal - PRB 68% 50% 71% 61%

Coal - Non-PRB 21% 14% 38% 32%

Gas - Combined Cycle 73% 70% 66% 72%

Energy Mix Q4 FY

2014 2015 2014 2015

Natural Gas 49% 52% 40% 47%

Coal 31% 23% 40% 33%

Nuclear 16% 19% 16% 16%

Hydro/Other 4% 6% 4% 4%