Second Quarter 2015 Earnings

Conference Call

July 29, 2015

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, including expected regulatory actions and cost recovery, earnings per

share guidance, 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 pending Environmental Protection Agency civil actions against certain

Southern Company subsidiaries, 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 actions relating to proposed securitization, Mississippi PSC approval of a rate recovery plan, the ability to utilize bonus

depreciation, which currently requires that assets be placed in service in 2015, and satisfaction of requirements to utilize investment tax credits and grants; the ultimate impact of the termination of the

proposed sale of an interest in the Kemper IGCC to South Mississippi Electric Power Association; Mississippi PSC review of the prudence of Kemper IGCC costs; the ultimate impact of the 2015 decision of

the Mississippi Supreme Court, the Mississippi PSC’s order implementing such decision, and any further related legal or regulatory proceedings; 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 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

A growing renewable portfolio with

contributions from all major subsidiaries

3

• 46 solar projects in seven states

• Nation’s largest voluntary solar initiative in Georgia

• Over 800 MW of contracted wind at Alabama Power, Georgia Power and Gulf Power

• Over 1,200 MW of renewable resources owned by Southern Power

• Over 250 MW of solar projects with the Department of Defense

Over 3,200 MW of

Current and Planned

Renewable Resources

Solar 1,735 MW Wind

1,131 MW

Biomass

424 MW

System

Owned

1,394 MW PPAs

1,896 MW

Vogtle Update

Recent Progress

Structural steel installation in Unit 3 Area 1 Annex Building

In-ground work for Unit 3 switchyard

Unit 4 cooling tower above 100 feet

Set Unit 4 modules: CA04, CB65 and CB66

Near term

• Set Unit 3 CA01 (expected early August)

• Begin Unit 3 Shield Building installation

• Complete Unit 4 Cooling Tower to 50% vertical

• Set Unit 4 Containment Vessel Ring #1

Regulatory

• VCM12 decision expected August 18th

(Staff recommends approval)

• VCM13 to be filed late August

Unit 3 Annex Building

Unit 4 Cooling Tower

4

Vogtle Unit 3 Activity

5

Expected in-service date for remainder of project is 1st half 2016

• Working through startup and checkout activities

– Identifying and working to remediate issues along the way

• Control systems design and operator training on track to support project milestones

• Combined cycle operating reliably and efficiently

Working towards next set of milestones

• Fluidization trials

• First syngas

Important upcoming regulatory decisions

• MPSC meeting scheduled August 6th

– Consider interim rate request

– Consider Mirror CWIP refund proposal

• Permanent rates expected to be considered Q4

Kemper Project Update

6

Q2 YTD

Earnings Per Share $0.69 $1.25

Impact of increase in Kemper cost estimate $0.02 $0.02

MCAR settlement costs - $0.01

Earnings Per Share x-items $0.71 $1.28

7

2015 Earnings Results

Q2 2014 Q2 2015

$0.68

$0.71 +3¢

-1¢

-5¢

+3¢

Retail

Revenue

Impacts

Weather

Wholesale

Operations

Interest

Expense

Traditional

Operating

Companies 0¢

+1¢ -3¢

Other

Income &

Deductions

Q2 2015 vs. Q2 2014 Adjusted EPS Drivers

8

-1¢

Shares

+1¢

Retail Sales Non-fuel

O&M

Note: Excludes Q2 2015 EPS impact of -2¢ for updated Kemper IGCC cost estimates; GAAP EPS was $0.69 for Q2 2015

D&A

+2¢

-1¢

Other

Operating

Revenues

Southern

Power

+2¢

Parent &

Other

+2¢

Retail Sales Growth vs. Prior Year

Residential

Commercial

Industrial

Total Retail Sales

Quarter-to-date

4.6% 1.2%

2.3% 0.7%

0.1% 0.2%

2.2% 0.7%

As Reported Weather Normal*

9

• First time since 2004 with growth across all customer classes in consecutive quarters

• Residential customer growth outpacing budget and prior year

• Significant vacancy rate improvements in Atlanta commercial office space

• Industrial growth continues to moderate due to a strong dollar and weak export demand

*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

Year-to-date

-0.2% 0.7%

0.7% 0.7%

1.0% 1.1%

0.5% 0.8%

As Reported Weather Normal*

10

2015 Earnings Per Share

Q3 Estimate = $1.16 per share

Appendix

2015 – 2017 Projected Financing Plan

12

($ in millions) 2017 2015 - 2017

Issued Remaining Total Projected Projected Total

Projected Financings

Georgia DOE Loan 600 $ 400 $ 1,000 $ 450 $ 350 $ 1,800 $

Mississippi Bank Debt (1) 900 $ - $ 900 $ 900 $ - $ 1,800 $

Mississippi Securitization - $ - $ - $ - $ 1,000 $ 1,000 $

Capital Markets

Alabama 975 $ - $ 975 $ 500 $ 750 $ 2,225 $

Georgia (2) 105 - 105 1,200 650 1,955

Gulf - - - 100 75 175

Mississippi - - - 350 200 550

Southern Power (3) 650 300 950 250 - 1,200

Holding Company (3) 600 1,000 1,600 600 500 2,700

Total Capital Markets 2,330 $ 1,300 $ 3,630 $ 3,000 $ 2,175 $ 8,805 $

Total Debt Financings 3,830 $ 1,700 $ 5,530 $ 4,350 $ 3,525 $ 13,405 $

Common Equity Needs - $ - $ - $ - $ - $ - $

(1) Includes the extension or replacement of $775 million of existing bank debt in 2015 and $900 million in 2016.

(2) Represents the reoffering of revenue bonds previously held by Georgia Power since 2013.

(3) Includes placeholder financings for Southern Power growth projects in 2016 and 2017.

2015 2016

Generation Portfolio Diversity

13

Capacity Factors Q2 YTD

2014 2015 2014 2015

Coal - PRB 64% 63% 68% 61%

Coal - Non-PRB 43% 34% 44% 30%

Gas - Combined Cycle 60% 62% 58% 66%

Energy Mix Q2 YTD

2014 2015 2014 2015

Natural Gas 37% 43% 36% 45%

Coal 42% 38% 43% 35%

Nuclear 17% 15% 16% 16%

Hydro/Other 4% 4% 5% 4%