2006 TRANSMISSIONCUSTOMER FORUM

September 21, 2006

Andrew J. Dearman, IIIExecutive Vice President & Chief Transmission Officer

Katrina• PHOTO HERE

Hurricane Katrina’s Wrath 140 mph winds with 35 foot storm surge Worst natural disaster in history of MPC Largest operational challenge in our 80 year history Impacted all 1,250 MPC employees Destroyed homes and in some cases entire

neighborhoods

Impacts to Southern Company All 195,000 MPC customers lost power More than 600,000 APC customers lost power All but 3 of MPC’s 122 transmission lines were out of

service (1,914 miles) 67 transmission lines out in Alabama (1,505 miles) 12 substations flooded in Mississippi 1 substation flooded in Alabama

Impacts to Southern Company

MPC’s second largest generating plant was flooded

MPC HQ building in Gulfport will not be fully operational until late 2006

Excellent Execution of a Well-Defined Plan

Excellence in damage assessment Six full service tent cities erected 140,000 gallons of fuel into 5,000 trucks daily 30,000 meals daily 250 person armed security force

All customers who could take powerwere restored in

12 days

All substations energized in

6 days

Lessons Learned Business Continuity Communications Government Agency Interface Employee Issues

Transmission IndustryKey Issues on the National Front

Creation of the Electric Reliability Organization (ERO)FERC Rule on Transmission IncentivesFERC Transmission Line Siting NOPRFERC Order 888 and OATT Reform NOPR

• Regional Planning

Transmission Fundamentals of Success Organization structureStrong leadersClearly defined strategyCommitment to be the BEST

• Control Area Readiness Audit by completed by NERC in 2004– 100% Compliance

• Reliability Coordinator Readiness Audit Completed in Spring, 2006– Audit Team found no operational problems– Reported that operations and support staff is

knowledgeable and competent

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electronic Tags Received by Power Coordination Center

200420052006

SAIDI: System Average Interruption Duration Index

12.5

13

13.5

14

14.5

15

15.5

16

2001 2002 2003 2004 2005

14.07

SAIFI: System Average Interruption Frequency Index

0

0.05

0.1

0.15

0.2

0.25

0.3

2001 2002 2003 2004 2005

0.198

Southern Company ranksfirst for the

5th consecutive year

Southern CompanyCustomer Satisfaction & Value

Source: Energy Information Administration (EIA). National Average is calculated using EIA 826 data for Investor Owned Utilities.

Southern Company: Low Prices2005 U.S. Total Average Price was 8.14 cents/kwh

Average Retail RatesSouthern Company vs. the National Average

0

1

2

3

4

5

6

7

8

9

2000 2001 2002 2003 2004 2005

Cen

ts/k

Wh

National Average

Total Southern Company

Southern Company vs. National AverageRelative Rates Price Comparison

Savannah Electric & PowerMERGED WITHMERGED WITH

Georgia Power CompanyOn July 1, 2006

We appreciate your business!