ATLANTA, April 30 /PRNewswire-FirstCall/ -- Southern Company today reported first quarter earnings of $359.2 million, or 47 cents a share, compared with $338.7 million, or 45 cents a share, in the same period a year ago.

   Excluding the impact of synthetic fuel investments, Southern Company earned 47 cents a share for the first quarter of 2008, compared with 41 cents a share for the same period in 2007.

   Despite a nationwide economic slowdown, the Southeast has experienced less of an impact than the rest of the country.

   "Even though consumers in the Southeast and across the U.S. are paying higher prices for products and services, the cost of living in the Southeast, including electricity prices, continues to be among the lowest in the nation," said David M. Ratcliffe, Southern Company chairman, president and CEO. "While economic growth has slowed, new residents and new business and industry continue to move to our region."

   Household growth in the Southern Company service territory has increased 1.8 percent in the past 12 months, compared with the nation at 1.0 percent. And population growth in the Southeast over the same 12-month period was 1.7 percent, versus the nation at 0.9 percent.

   As a result, Southern Company has added nearly 50,000 customers since the end of the first quarter of 2007. This customer growth has driven increased usage, primarily in the residential and commercial sectors.

   Other positive earnings drivers include increased revenue from market-response rates, and from state regulatory actions that support increased capital investment in transmission and distribution infrastructure and new environmental equipment. These investments are needed to help ensure that Southern Company continues to meet growing demand, maintain reliability and produce cleaner energy. The earnings drivers were offset in part by higher non-fuel operations and maintenance expenses and asset depreciation, primarily associated with the increased investment in environmental equipment and infrastructure.

   Revenues for the first quarter of 2008 were $3.68 billion, compared with $3.41 billion in the same period a year ago, an 8 percent increase.

   Kilowatt-hour sales to retail customers in Southern Company's four-state service area increased 1.4 percent in the first quarter, compared with the first quarter of 2007. Residential electricity sales increased 1.9 percent. Electricity sales to commercial customers increased 1.9 percent, and industrial sales increased 0.6 percent.

Total energy sales to Southern Company's customers in the Southeast, including wholesale sales, increased 1.4 percent in the first quarter of 2008 compared with the same period of 2007.

   With nearly 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company ( NYSE:SO ) is the premier energy company serving the Southeast, one of America's fastest-growing regions. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are significantly below the national average. Southern Company has been listed the top ranking U.S. electric service provider in customer satisfaction for eight consecutive years by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com .

                              Southern Company
                            Financial Highlights
             (In Millions of Dollars Except Earnings Per Share)

                                               3 Months Ended March
                                                  2008       2007
  Consolidated Earnings-As Reported             (Notes)    (Notes)
  (See Notes)
    Traditional Operating Companies               $342       $285
    Southern Power                                  29         32
      Total                                        371        317
    Synthetic Fuels                                (2)         28
    Parent Company and Other                      (10)        (6)
    Net Income - As Reported                      $359       $339

    Basic Earnings Per Share - (See Notes)       $0.47      $0.45


    Average Shares Outstanding (in millions)       766        750
    End of Period Shares Outstanding
     (in millions)                                 768        752


                                               3 Months Ended March
                                                  2008       2007

  Consolidated Earnings-Excluding Synfuels
  (See Notes)
    Net Income - As Reported                      $359       $339
    Less: Synthetic Fuels                            2        (28)
    Net Income-Excluding Synthetic Fuels          $361       $311

  Basic Earnings Per Share-Excluding Synfuels    $0.47      $0.41



                    Significant Factors Impacting EPS

                                                    3 Months Ended March
                                                  2008       2007    Change

  Consolidated Earnings-As Reported              $0.47      $0.45     $0.02
  (See Notes)
    Significant Factors:
    Traditional Operating Companies                                    0.07
    Southern Power                                                        -
    Synthetic Fuels                                                   (0.04)
    Parent Company and Other                                              -
    Additional Shares                                                 (0.01)
      Total-As Reported                                               $0.02


                                                    3 Months Ended March
                                                  2008       2007    Change

  Consolidated Earnings-Excluding Synfuels       $0.47      $0.41     $0.06
  (See Notes)
    Total-As Reported                                                  0.02
    Less: Synthetic Fuels                                              0.04
      Total-Excluding Synthetic Fuels                                 $0.06

  Notes
  -- For the first quarter 2008 and 2007, diluted earnings per share was
     less than 1 cent per share.
  -- Tax credits associated with Southern Company's synthetic fuel
     investments expired December 31, 2007.
     Synthetic fuel related income no longer materially contributes to
     Southern Company's earnings or earnings per share.
  -- Certain prior year data has been reclassified to conform with current
     year presentation.
  -- Information contained in this report is subject to audit and
     adjustments. Certain classifications may be different from final
     results published in the Form 10-Q.



                             Southern Company
                    Analysis of Consolidated Earnings
                         (In Millions of Dollars)

                                                  3 Months Ended March
                                              2008         2007       Change
  Income Account-
  Retail Revenue-
  Fuel                                       $1,203       $1,093       $110
  Non-Fuel                                    1,803        1,651        152
  Wholesale Revenue                             514          481         33
  Other Electric Revenues                       130          121          9
  Non-regulated Operating Revenues               33           63        (30)
  Total Revenues                              3,683        3,409        274
  Fuel and Purchased Power                    1,545        1,381        164
  Non-fuel O & M                                897          848         49
  Depreciation and Amortization                 344          306         38
  Taxes Other Than Income Taxes                 189          183          6
  Total Operating Expenses                    2,975        2,718        257
  Operating Income                              708          691         17
  Other Income, net                              62           32         30
  Interest Charges and Dividends                233          228          5
  Income Taxes                                  178          156         22
  NET INCOME (See Notes)                       $359         $339        $20



                            Kilowatt-Hour Sales
                           (In Millions of KWHs)

                                              3 Months Ended March
                                                                    Weather
                                                                    Adjusted
  As Reported (See Notes)                 2008      2007    Change  Change
  Kilowatt-Hour Sales-
    Total Sales                         48,478    47,818     1.4%

    Total Retail Sales-                 38,576    38,040     1.4%     1.2%
      Residential                       12,703    12,464     1.9%     1.0%
      Commercial                        12,505    12,276     1.9%     1.9%
      Industrial                        13,135    13,060     0.6%     0.7%
      Other                                233       240    -3.0%    -2.9%

    Total Wholesale Sales                9,902     9,778     1.3%     N/A

  Notes
  -- Certain prior year data has been reclassified to conform with current
     year presentation.
  -- Information contained in this report is subject to audit and
     adjustments. Certain classifications may be different from final
     results published in the Form 10-Q.



                              Southern Company
                             Financial Overview
                          (In Millions of Dollars)

                                                    3 Months Ended March
                                                2008       2007     % Change

   Consolidated -
     Operating Revenues                        $3,683     $3,409       8.0%
     Earnings Before Income Taxes                 537        494       8.7%
     Net Income                                   359        339       6.1%

   Alabama Power -
     Operating Revenues                        $1,337     $1,197      11.7%
     Earnings Before Income Taxes                 213        196       9.0%
     Net Income Available to Common               130        115      13.2%

   Georgia Power -
     Operating Revenues                        $1,865     $1,657      12.5%
     Earnings Before Income Taxes                 264        203      30.2%
     Net Income Available to Common               176        131      34.1%

   Gulf Power -
     Operating Revenues                          $312       $296       5.2%
     Earnings Before Income Taxes                  31         31       0.6%
     Net Income Available to Common                20         19       3.5%

   Mississippi Power -
     Operating Revenues                          $285       $257      11.1%
     Earnings Before Income Taxes                  26         32     -18.3%
     Net Income Available to Common                16         20     -17.6%

   Southern Power -
     Operating Revenues                          $216       $192      12.0%
     Earnings Before Income Taxes                  46         54     -14.3%
     Net Income Available to Common                29         32      -9.6%

  Notes
  -- Certain prior year data has been reclassified to conform with current
     year presentation.
  -- Information contained in this report is subject to audit and
     adjustments. Certain classifications may be different from final
     results published in the Form 10-Q.

Source: Southern Company