Environmental Assessment

The Southern Company Environmental Assessment was developed in response to a shareholder request, as described in the 2004 Proxy Statement. It was produced under the direction of Southern Company’s chief executive officer and the Board of Directors. A two-day workshop was held for the senior officers of the company and the Board to review the assessment. In addition, in order to obtain a range of views and input, a number of independent experts outside the company were interviewed. An ongoing dialogue also was held with an external group that was led by representatives of the shareholder proponents. Under a confidentiality agreement, the company provided them preliminary results and an opportunity to review and comment on the final draft. The group with which the company held discussions represented the following organizations:

The Sisters of Charity of Saint Elizabeth
The Sisters of Saint Dominic of Caldwell, New Jersey
The Board of Pensions, Evangelical Lutheran Church in America
The United Church Foundation
The Pension Boards, United Church of Christ
The State of Connecticut, Office of the Treasurer
The Benedictine Sisters
Interfaith Center on Corporate Responsibility
Ceres
U.S. PIRG

It should be noted that this is Southern Company’s report. It does not have the full endorsement or agreement from the organizations listed above. This report provides an overview of the process that Southern Company uses to address increasingly stringent requirements related to air emissions from its power plants, including an analysis of potential price signals for carbon dioxide (CO2) emissions that might result from policies to address climate change.

Forward looking statement cautionary note.