southern 2000 editorial section, black type

Do You See It?

2000 1999 change

Operating revenues (in millions) $10,066 $9,317 8.0)%

Earnings as reported, continuing operations (in millions) $994 $915 8.6)%

Earnings as reported, discontinued operations (in millions) $319 $361 (11.6)%

Total earnings as reported (in millions) $1,313 $1,276 2.9)%

Earnings from operations (in millions)* $1,395 $1,303 7.1)%

Basic and diluted earnings per share as reported, continuing operations $1.52 $1.33 14.3)%

Basic and diluted earnings per share as reported, discontinued operations $0.49 $0.53 (7.5)%

Total basic and diluted earnings per share as reported $2.01 $1.86 8.1)%

Earnings per share from operations* $2.13 $1.90 12.1)%

Dividends per share $1.34 $1.34 –)

Dividend yield (percent) 4.0 5.7 (29.8)%

Average shares outstanding (in millions) 653 685 (4.7)%

Return on average common equity (percent) 13.20 13.43 (1.7)%

Book value per share $$15.69 $13.82 13.5)%

Market price (year-end, closing) 331/4 231/2 41.5)%

Total market value of common stock (year-end, in millions) $$22,649 $15,646 44.8)%

Total assets (in millions) $31,362 $29,291 7.1)%

* Earnings from operations exclude items not related to day-to-day business activities.

FINANCIAL HIGHLIGHTSBecause of the spinoff of Mirant (formerly Southern Energy), figures reflect Mirant as discontinued operations.

TABLE OF CONTENTS

SOUTHERN COMPANY AT A GLANCESouthern Company is focused on three major businesses in the “Super Southeast.”

1 Letter to our shareholdersChairman, President,

and CEO Allen Franklin

reviews 2000 and takes

a look ahead.

4 What is it?See what we’re all about

and what we’re doing

to create value for our

shareholders.

20 Q&A with Allen FranklinAllen Franklin talks more

about our strategy for

growth over the next five

years.

22 Financial Review60 Directors62 Officers64 Shareholder Information

Subsidiaries, Affiliates & Business Units

BusinessDescription

Outlook

Goals

Regulated Business Competitive Generation New Products and Services

• Southern Company Energy Solutions• Southern LINC • Southern Telecom

• Energy-related products and servicesto retail customer base in Southeast.

• Examples of current productsinclude energy services, distrubutedgeneration, outdoor lighting, andaccess to dark fiber.

• Consumer demand for enhancedreliability, energy services, and warranty options creates opportuni-ties to leverage existing customerrelationships.

• Develop innovative energy solutionswith products and services that produce $50 million annual earningswithin next five years.

• Southern Company Generation and Energy Marketing

• Southern Power

• Generation and sale of electricity to wholesale customers in Southeast.

• Wholesale energy trading and marketing

• Economically robust region offersdemand growth opportunities in service territory as well as in thesurrounding states.

• Significantly increase competitivegeneration capacity.

• Wholesale already producing morethan $100 million net income (resultsincluded in financial statements ofregulated utilities). Double earningsfrom competitive generation partwithin next five years.

• Alabama Power• Georgia Power• Gulf Power• Mississippi Power• Savannah Electric• Southern Nuclear

• Transmission, distribution, and29,000 megawatts of regulatedgeneration in service territory.About 4 million retail customers in Alabama, Florida, Georgia, andMississippi.

• Annual demand growth in serviceterritory forecast to be 3 percentwith strong customer growth of 2 percent a year.

• Add significantly to base of 4 million retail customers.

• Efficient operations of the network.

• High level of customer serviceand reliability.

• Maintain top-quartile returns.

SUPER SOUTHEAST

• Service Territory

• Competitive Generation Opportunities

Southern Company is the premier super-

regional energy company in the Southeast,

the most economically vibrant region in the

country. Our strategy is to grow the busi-

ness we know best, in the region we know

best with the customers we know best.

It’s all about creating value for shareholders.It’s clear in the way we worked in 2000 tounlock and deliver value to you. Now we arefocused on the U.S. Southeast. It’s the country’sfastest-growing electricity market, and theregion we know best. We’re ready to be thefull-service leader in the “Super Southeast.”See it for yourself. It’s right here.

Allen FranklinChairman, President, and CEO

1

A momentous yearGetting results. That’s what counts. That’s how you measure usand that’s how we measure ourselves. For Southern Company,2000 was a year of record results. We achieved earnings fromoperations of $1.40 billion. Earnings per share from operationswere $2.13, a 12 percent increase over 1999 and well ahead ofour 2000 goal of $2.05.

After costs related to Southern Energy becoming a publiccompany and other non-operating items, our reported earningsfor 2000 were $1.31 billion, or $2.01 per share, compared with$1.28 billion, or $1.86 per share, in 1999.

In the year’s most significant event, we completed a successfulinitial public offering of 19.7 percent of Southern Energy in

October, in advance of spinning off our remaining ownershipin Southern Energy to Southern Company shareholders thisyear. In preparation for the spinoff, Southern Energy renameditself Mirant Corporation.

After working hard to build Mirant into one of the world’stop independent energy producers and marketers, we decidedto separate it from the rest of our business. We did this becausewe believe our traditional business and Mirant are worth moreseparated than together. From the standpoint of delivering valueto you, it clearly was the right move. We have turned one strongenergy company into two – Southern Company and Mirant. In doing so, we have unlocked the value we created for ourshareholders.

There were many other accomplishments in 2000, some ofwhich are detailed elsewhere in this annual report. The closing

price for Southern Company stock at the end of 2000 was$33.25 per share, compared with $23.50 at the end of 1999.So the market value of our company grew by $7.0 billion in 2000.

Our focus After the changes we initiated in 2000, it may seem we now area very different company. I’d like to challenge that notion a bit,and give you my thoughts on who we are and where we are going.

Though our geographic perspective has become more focused,Southern Company is committed to doing what we’ve alwaysdone best – being a full-service energy provider.

We don’t follow fads and we don’t overreact to short-termdevelopments. We focus on being the best at the fundamentals.To us, the fundamentals mean continually finding better waysto serve our customers’ energy needs more efficiently, reliably,economically, safely, and cleanly. And, in doing so, providingsuperior, risk-adjusted returns for our shareholders.

The foundation of our company continues to be our regulatedbusiness. To four million satisfied customers in Alabama, Florida,

Georgia, and Mississippi, our brands are synonymous withexcellent customer service, high reliability, and prices that are15 percent below the national average. Ours is a premier utilityfranchise in a premier growth region.

We are in a region, the Southeast, with a growing appetitefor energy. There’s just no better place for us. Metro Atlantaalone has consistently been one of the nation’s job growth leadersin the past decade, and the demand for energy throughout theSoutheast continues to grow at rates above the national average.

Letter to our shareholders

2

This is the region we know best. In addition to our four-stateretail business, we’re building on our already sizeable growth- oriented competitive generation business that will serve anexpanded “Super Southeast” region. It is a wholesale businesswith a regional focus, and it should materially increase our earnings growth.

Our wholesale business in the Southeast already is producingmore than $100 million in annual earnings. We plan to doublethe earnings from the competitive generation part of this businessover the next five years. A major component of this plan is tosignificantly increase our generating capacity. Of the 6,600 mega-watts of new generating plants we plan to complete in theSoutheast by the end of 2003, approximately 4,700 megawattswill be dedicated to the competitive market. Our approach tothe competitive generation market, which primarily utilizeslong-term contracts, emphasizes earnings and minimizes risk.

A good example of how we are tapping the potential in thismarket is the venture we recently announced with the OrlandoUtilities Commission, Kissimmee Utility Authority, and FloridaMunicipal Power Agency to develop more than 600 megawattsof new generation in Central Florida.

Our futureWe know this business, and we’re committed to getting betterat it all the time. New products – such as EnergyDirect.com,which enhances the ability of our business customers to managetheir energy use – are providing additional revenue streams. Andwe are expanding our expertise in providing energy services to

customers throughout the region. We expect these and otherenergy-related products and services to produce $50 million ofannual earnings within the next five years. And we will continueto make the infrastructure investments that have helped ourregion avoid the reliability problems that some other areas ofthe country have experienced.

I’ve never been more excited about Southern Company and the direction we’re headed. I take great pride in what weaccomplished in 2000, and I’m confident about leading thisgreat company into the future. We owe much of our success tothe leadership of my predecessor, Bill Dahlberg, who is a goodfriend as well as a truly visionary leader. I thank him for hismany contributions, and I know you will join me in wishinghim well in his new endeavors.

All of us at Southern Company are eager to build on whatwe’ve achieved so far. We are in a business we fully understandand in the markets we know best. We think that’s a winningcombination for success and delivering shareholder value in theyears ahead.

Thank you for your continued support.

Allen FranklinApril 2, 2001

3

A Salute to Bill DahlbergBill Dahlberg announced his retirement from Southern Company February 19, 2001, after 40-plusyears with the company, the past six as chairman and chief executive officer.

Having begun his career as a Georgia Power meter washer, then working in a series of staff,supervisory, and executive positions, Bill knew Southern Company’s business and its people thoroughly. Under his leadership, the world came to know and respect Southern Company.

In a time of rapid change and uncertainty in the industry, Bill had a vision for Southern Company. With this vision–and an extraordinaryability to inspire people –he guided the company through a period of unprecedented growth. He successfully transformed Southern Companyinto an international energy company, focused on creating shareholder value, with operations in 12 countries on five continents.

It’s all around us. It makes our way of life possible. It’s in everything we do, everything we consume, how we live, work, and enjoy life. It’s energy and we are the largest provider of it in the Southeast ...

What is it?

It’s the light to enlighten.It’s the e in e-commerce. It’s the juice in your appliances.

It’s putting customers first.It’s not easy to become the best at satisfying customers. We know,because we’ve worked hard to be No. 1. In 2000, for the third straightyear, Southern Company achieved the industry’s best customer satisfac-tion ratings. We’re working hard to stay on top. Great service is just thebeginning. We’re also managing our business efficiently, which helps usoffer rates that are 15 percent below the national average.

5

A commitment to a growing region

This is where we want to be. We’ve made a commitment to the

Southeast. It has a strong economy with some of the nation’s

highest rates of job growth, new housing, and rising incomes.

That translates into more demand for energy, and we’re here

to meet the region’s needs. We’ve made a commitment to be a

secure, reliable source of energy for the Southeast, and customers

here know they can count on Southern Company. We’ve been

here for generations, with a track record of providing reliable

electricity at low prices. We are moving forward to further

strengthen our relationship and extend our reach within the

region we know best.

Already strong

Our regulated business in the Southeast is the solid foundation

for everything we do. That’s how we’ve earned our customers’

trust. Our system includes more than 26,000 miles of trans-

mission lines and 29,000 megawatts of regulated generation.

Our facilities are a model of reliability, efficiency, and depend-

ability. We’ve planned well for future energy needs, too. This

region is growing strong. We’re strong enough to serve it.

Partners in progressWe’ve worked in partnership with policymakers to make sureour region has the facilities that are necessary to provide thepower our customers need. And by working as partners to planfor the future, we’ve maintained a diverse mix of fuel sources forgeneration. So when the price of one fuel goes up, the effect onour customers is moderated.

We have a tradition of being an active corporate citizen

wherever we do business. In towns big and small across our

Southeast service area, we strive to have a positive impact on

the lives of the communities we serve. We are partners in local

economic development, educational, and environmental efforts.

It’s something that sets Southern Company apart from the compe-

tition. When communities have healthy growth, everyone wins.

It’s the region we know best. The Southeast is the fastest-growing energy region in the country. Weare at home here. We know how to succeed in this market. We have alarge base of low-cost energy. An understanding of customers’ needs.And strong relationships based on our reputation for being a good citi-zen in the communities we serve.

6

Annual demand growth in our service

territory is expected to be 3 percent.

We have approximately 4 million retail

customers and expect annual customer

growth of about 2 percent.

It helps you grow.

It’s generating excitement.

It’s new horizons.

9

Orlando, Florida, is a shining example of the potential we see in competitive generation.

It’s the attraction of new markets.The “Super Southeast” region presents vast opportunities for our competitive generation business. We have a solid plan to succeed inthis market, which includes the four states of our traditional service territory – Alabama, Florida, Georgia, and Mississippi – as well asKentucky, North Carolina, South Carolina, and Tennessee.

It’s new generation for the next generation. The growing energy needs of the Southeast require plenty of power andprovide us with plenty of opportunity to grow. By the end of 2003, weplan to add 6,600 megawatts of generation, including approximately4,700 megawatts for the competitive market.

It’s trading smart.

11

Our fast-growth business

Competitive generation is the high-growth component of

Southern Company’s business plan. Our goal is to double the

earnings contribution from this part of our business over the

next five years. New generation dedicated to the competitive

market gives us the opportunity to earn higher returns in the

region’s wholesale markets. The risks are known and manageable

because most of this generation will be sold under long-term

contracts. To ensure this business is run as efficiently as possi-

ble, we have formed a new subsidiary to own, manage, and

finance our wholesale generating assets in the Southeast.

Meanwhile, our trading floor (above) in Birmingham, Alabama –

which set the standard for buying and selling wholesale energy –

continues to help our competitive energy business grow as

well as reduce costs for our regulated retail customers.

Standing tall

For a concrete example of how we’re building for the future, take

a look at Plant Dahlberg (opposite page) in Georgia. With eight

units already in operation, and two more under construction,

the plant already is meeting the Southeast’s growing energy needs.

The potential to grow the competitive generation business is

huge. It is estimated that in the Southeast, the total amount of

new generating capacity required in the next 10 years will be more

than 60,000 megawatts. Our knowledge of this market is deep

and spans decades. We helped create the wholesale generation

market when we began selling bulk power to utilities in Florida

in the early 1980s. With our expertise and experience in plan-

ning, designing, siting, constructing, marketing, and operating

power plants in this part of the country, we will continue to be

a leader in the Southeast’s competitive generation business.

It turns you on.It’s the power to heal.

It’s the reliability of our service.Sometimes reliability is a matter of comfort; sometimes much more is at stake. Keeping the lights on takes expert planning and first-classoperations. We have both. By carefully forecasting energy needs andsecuring the most economical energy sources available, we maintain asufficient supply of electricity for our customers. By operating our assetsat high levels of reliability, we keep the power flowing.

13

It’s new products and services.Our strong position with customers in the Southeast provides a powerfulplatform from which to grow our business. We will do that by offeringnew products and services that match our energy expertise with our customers’ needs. Our goal is to produce $50 million of annual earningsfrom new products and services within the next five years.

It’s the on in on-line.

For Michael Hoffer, senior property manager at Cousins Properties Incorporated, the energy data he needs is a click away with EnergyDirect.com.

We’re the energy experts

We’re hard at work developing new products and services that

help make our energy further brighten customers’ lives. We offer

innovative solutions that help families and businesses manage

their energy use more efficiently. Our EnergyDirect.com Web

site, for example, provides business customers with secure,

around-the-clock access to current and historical energy billing

and usage information. And we are helping introduce cutting-

edge technologies like flywheels and microturbines to provide

solutions to customers’ energy needs today.

With our Southern Company Energy Solutions subsidiary,

we go further to help customers manage energy projects at

facilities throughout the Southeast. And the experience we

gained from serving highly competitive markets such as the

United Kingdom has sharpened our knowledge of how to

apply our energy expertise to products and services that are

right for our customers and our business. We’re focused on

developing and offering even more new products in 2001.

It’s fresh new ideas.

Enhanced power quality from flywheel technology helps Hardin’s Bakery near Tuscaloosa, Alabama, rise to the occasion.

It’s seeing what’s important.

It’s environmental responsibility.Our commitment to being a leader in environmental solutions is long-standing. It includes action to further reduce our emissions per kilowatt-hour generated. In addition to improving air and water quality, SouthernCompany is in the forefront of research to generate energy from newand cleaner sources.

17

Reducing the impact

Our goal is to have as little impact on the environment as

possible while continuing to meet the needs of those who

depend on the energy and services we provide. During the

past decade, we invested $4 billion in environmental control

systems, research, and development. Over the next three years,

we’re planning to spend another $1 billion to install control

systems at selected plants to reduce emissions of nitrogen oxides

that contribute to ozone formation. Those reductions will reach

as much as 85 percent at some facilities. Many of our efforts

are undertaken voluntarily and go beyond the requirements of

environmental laws. In metro Atlanta, for example, we’re spending

$125 million to build cooling towers at Georgia Power’s plants

McDonough and Yates to help improve water quality in the

Chattahoochee River. The towers also will ensure the plants

can operate at full capacity, showing again that doing the right

thing is good for the environment and for our business.

A research leader

We believe that creating environmental solutions just makes

sense. So while we implement proven technology, we’re also

looking into other ways to help the environment. At the Power

Systems Development Facility (opposite page) in Wilsonville,

Alabama, we are participating with the U.S. Department of

Energy in a $270 million effort to develop a technology for

turning coal–our nation’s most abundant energy source – to gas

in an economical fashion while reducing emissions of nitrogen

oxide, sulfur dioxide, and carbon dioxide by one-third. Rising

natural gas prices make this technology more important than

ever. We also are part of two extensive fuel cell research efforts

to determine the viability of this environmentally friendly tech-

nology as an energy option. And we’re working on a $6.7 million

effort at Alabama Power’s Plant Gaston to evaluate a mercury

control system that could reduce emissions up to 70 percent.

Working to make things better

Our responsibilities reach beyond the requirements of laws and

regulations. In 2000, we worked closely with agencies and citi-

zen groups to contribute to the health and enhancement of the

natural environment in local communities. Our activities ranged

from an employee-led river clean-up campaign to working with

local landowners in providing incentives to protect and enhance

wildlife to creating new saltmarshes, seagrass beds, and oyster

reefs along coastal areas.

It’s seeing the value we create.Size. Strength. Reputation. A robust region. A proven track record in thebusiness we know best. And a good plan to make it all work for you. It’seasy to see why we are excited about Southern Company’s future.

It’s feeling good about yourself.

Why did we decide to spin off Mirant? Both Mirant and our traditional business were very successfuland were continuing to meet or exceed all our financial targets.But we were not seeing the value of Mirant reflected in ourstock price. The two parts of the business each offered some-thing different to investors, and there was not a strong investor constituency for both under the same roof. As separate compa-nies, investors have a clear choice between two “pure play”investments. The two businesses are worth more separated thanthey were together. With Mirant having grown big enough andstrong enough to succeed independently, the time was right andit made good sense in the interests of our shareholders to sepa-rate. We have created two strong energy companies – SouthernCompany and Mirant – from one. In the process, we deliveredthe value of Mirant to our shareholders.

What sets Southern Company apart from the pack now? We are clearly focusing all of our resources and efforts on thebusiness we know best in the region we know best. With theseparation, we now are in a position to grow our Southeasternbusiness to its full potential. We are a full-service provider ofelectricity. We’re accepting the responsibility to assure a reliableelectric supply to our customers. This includes generation,transmission, distribution, and the highest level of customer

service. In other words, we’re sticking with what we do best.It’s pretty clear that companies that focus on the things they do best and areas where they understand the market betterthan anyone else have the best risk-adjusted returns. We areone of the few remaining vertically integrated companies inour industry. That leaves us with all of our options and givesus synergies that benefit shareholders and customers.

What’s so great about the Southeast? Lots of things. First, this region has strong economic growth,and our business is tied directly to the economic growth of ourmarkets. The faster the region grows, the faster we grow. Also,the Southeast is a business-friendly region where we can workas partners rather than adversaries with policymakers and thepeople we serve. And, importantly, people in the Southeastunderstand the necessity of maintaining a reliable energy infra-structure. So we are able to build the facilities that are neededto provide power to our customers.

What kind of growth do you see for the company? We have set a goal of growing earnings per share 5 percent ayear, and we have a solid plan to achieve it. Excluding Mirant,our earnings per share target in 2001 is $1.60. Most of our earnings still come from our regulated business, which we

It’s having solid answers. A conversation with Allen Franklin.

20

Allen FranklinChairman, President, and CEO

expect to grow about 3 percent a year. We also operate a verysuccessful and growing wholesale business here in the Southeast.We plan to double the earnings from the competitive generationpart of this business within five years, and we are well on ourway to achieving this goal. This will be a significant growthengine going forward. Combining the traditional regulatedbusiness with our much higher-growth competitive generationbusiness, plus the potential we see in new products and services,gets us to an overall 5 percent growth rate.

What challenges do we face in meeting our targets? The No. 1 priority is to maintain good returns in our regulatedbusiness. The key to doing that is continuing to serve our cus-tomers with reliable, competitively priced energy and excellentcustomer service. Customer service is embedded in our culture –it’s part of what we call Southern Style – but we’ve got to doeven better than before. Even though we continue to score highin customer satisfaction surveys, we’ve been re-emphasizing theimportance of customer service throughout the company.

How are we approaching the competitive generation business? We are participating in the same competitive generation marketas many other well-known independent power producers. Butwe’re doing it differently than most. Our power is generallysold under long-term contracts that are structured to give us a positive earnings contribution quickly and to minimize theprice risk associated with volatile natural gas supplies. We par-ticipate in this market in a way that matches the risk and earn-ings our shareholders expect.

Are mergers or acquisitions part of our strategy? Mergers and acquisitions are driven in large part by oppor-tunities that arise from time to time. We evaluate all of theseopportunities against a set of strict criteria. We are looking forlong-term value consistent with the price we would pay, plus a positive contribution to earnings in the near term.

The situation following deregulation in California has put a greatdeal of attention on the direction our industry is headed. Whatimpact do you see in Southern Company’s region? I don’t see any immediate impact here in the Southeast. Whathappened in California does highlight, among other things, theimportance of having generating capacity keep pace with eco-nomic growth, and of having a diverse mix of fuel sources. In ourservice area, we’ve never stopped building generating plants andtransmission lines. We’ve kept our eyes on the reliability of thesystem. And we have, I believe, a judicious mix of fuel sources,including coal, nuclear, natural gas, oil, and hydro. The policiesof this company and of policy leaders in the Southeast haveresulted in very reliable and affordable energy in this region.

Does the environment continue to be a major emphasis for us? It always has been and always will be. Energy companies have animpact on the environment. It’s just the nature of the business.The question is, how do we manage the business so that weminimize the environmental impact in a way that is affordableto consumers and fair to shareholders. Day to day and year toyear, we work to find the right balance. Of course, we strive tooperate our facilities in full compliance with all laws and regula-tions. We also do many things voluntarily, like the $125 millioncooling tower project we announced last summer to protect theChattahoochee River in Georgia. Through our partnerships ina number of significant research programs, we strive even furtherto find meaningful solutions to environmental issues.

How does the future look for Southern Company? We’re in a great position. We have the opportunity to put allour talent and resources behind what we do best, in the bestmarket in the country. Our view of the industry over the pastfew years turned out to be right on target and led to recordfinancial and operating results. Looking ahead, we know wherewe are going. Our basic strategy for the Southeast matches upvery well with what’s in front of us. We have a lot of excitingthings going on. I’m very confident.

21

64 Southern Company and Subsidiary Companies 2000 Annual Report

SHAREHOLDER INFORMATION

Transfer AgentSCS Stockholder Services is Southern Company’s transferagent, dividend paying agent, investment plan administrator,and registrar. If you have questions concerning your SouthernCompany stockholder account, please contact:

SCS Stockholder Services P.O. Box 54250Atlanta, GA 30308-0250

Stockholder Services’ Web site www.southerncompany.comprovides transfer instructions, service request forms, and frequently asked questions and answers.

You may also call the Stockholder Information Line at(800) 554-7626. Representatives are available Mondaythrough Friday, 9 a.m. to 5 p.m. Eastern Time.

Southern Investment PlanSouthern Investment Plan (SIP) provides current SouthernCompany shareholders with a convenient and economicalway to increase their holdings. SIP also enables investors whoare not currently shareholders to purchase common stockdirectly through the plan. Access www.southerncompany.comto review the Prospectus and Enrollment Form.

Dividend PaymentsThe entire amount of dividends paid during 2000 is taxableas ordinary income.

The board of directors sets the record and payment datesfor quarterly dividends. A dividend of 33.5 cents was paid inMarch 2001.

For the remainder of 2001, projected record dates are May 7, Aug. 6, and Nov. 5. Projected payment dates for dividends declared during the remainder of 2001 are: June 6, Sept. 6, and Dec. 6.

Environmental InformationInformation about what Southern Company is doing toimprove the environment is available at our environmentalInternet site: www.southerncompany.com/site/planetpower.Or by writing to:

Dr. Charles H. GoodmanSenior Vice President, Research and Environmental Affairs600 North 18th StreetP.O. Box 2641Birmingham, AL 35203-2206

Annual MeetingThe 2001 Annual Meeting of Stockholders will be held onWednesday, May 23, at 10 a.m. EDT at the SavannahInternational Trade & Convention Center in Savannah, GA.

Common StockThe common stock of Southern Company is listed and tradedon the New York Stock Exchange. In addition, the stock istraded on regional exchanges across the United States. Theticker symbol for Southern Company stock is SO, and thesymbol SouthCo is used in newspaper stock listings.

AuditorsArthur Anderson LLP133 Peachtree Street, N.E. Atlanta, GA 30303

Investor Information Line For recorded information about earnings and dividends,stock quotes, and current news releases, call toll-free (866) 762-6411.

Institutional Investor Inquiries Southern Company maintains an investor relations office inAtlanta, (404) 506-5195, to meet the information needs ofinstitutional investors and security analysts.

Eliminate Duplicate Mailings If you are a stockholder of record and receive multiple copiesof the annual report and proxy statement, or wish to accessthese documents electronically in the future, you may authorize Southern Company to suspend future mailings of these documents to a specific account. To do so, consentwhen you vote your proxy or check the box on the dividendcheck stub or investment plan statement and mail it to SCSStockholder Services.

GLOSSARY

Competitive generation business – linking assets with trading and marketing to provide energy to wholesale customers who can choose their suppliers based on price, reliability, capacity, and other market needs.

Earnings as reported – total net income, including items – such as gains on asset sales, write-downs of assets and work force reductions – not related to normal day-to-day business activities.

Earnings from operations – net income, excluding items – such as gains on asset sales, write-downs of assets and work force reductions – not related to normal day-to-day business activities.

Earnings per share – total net earnings divided by the average number of shares of common stock outstanding.

Energy trading and marketing – the buying and selling of energy according to market needs without the restriction of defined service areas.

Generating capacity – the amount of energy we can produce using all of our power generation facilities.

Independent power producer – builds and/or owns and operates generating facilities without any geographic or service area restrictions or relationships to traditional regulated utilities.

Payout ratio – the percentage of earnings that is paid to shareholders in the form of dividends.

Regulated business – the part of our business that generates, transmits and distributes electricity to commercial,industrial, and residential customers in most of Alabama and Georgia, the Florida panhandle, and southeasternMississippi.

Retail markets – markets in which energy is directly sold and delivered to the ultimate end users of that energy.

Super Southeast – the nation’s fastest-growing energy market, including the four states of our tradionalSoutheast service area as well as surrounding states. The region we know best.

Wholesale customers – energy marketers, electric and gas utilities, municipal utilities, industrials, other energy producers and generators, national companies, and other large energy users.

Wholesale markets – markets in which relatively large amounts of energy are sold to customers who may thensell it in retail markets or – in the case of large industrial customers – use it.

Southern Company270 Peachtree Street, N.W.Atlanta, GA 30303(404) 506-5000

1130 Connecticut Avenue, N.W.Suite 830Washington, D.C. 20036(202) 261-5000

InternetCurrent information about Southern Company is available on the Internet at www.southerncompany.com.

The 2000 annual report is submitted for shareholders’information. It is not intendedfor use in connection with anysale or purchase of, or anysolicitation of offers to buy orsell, securities.

Printed on recycled paper.

Writing and Project Management: Marc Rice. Financial Review: L.M. Thomas III. Design: Lucid, Atlanta, GA. Major Photography: James Schnepf; Printing: George Rice & Sons.

Do You See It?

southern 2000 editorial section, black type

Economy & Finance

southern energy

southern company stock

total earnings

diluted earnings

energy services

discontinued operations

continuing operations

double earnings