American Association of Blacks in Energy 33 rd Annual Conference Leadership Development at Southern Company Marsha Sampson Johnson SVP Human Resources and Chief Diversity Officer May 20, 2010

Premier Energy Company Serving the Southeast Southern Nuclear Southern Power SouthernLINC Wireless

Attractive Investment  4.4 million customers  #149 on Fortune 500 list  History of sustainable, predictable growth  Strong financial performance  #1 ranked, nine years in a row, electric service provider in customer satisfaction by ACSI

Business Results Southern Style Competencies Leadership Strong Culture  25,000 + employees strong  Long-tenured workforce  Cultural Tenets – Safety & Wellness – Southern Style – Inclusion  2010 Diversity Inc. Top Company – Top 10 Employers for Blacks – One of 25 Noteworthy Companies  2010 Top Military Friendly Companies (9 th out of 100)

Business Results Southern Style Competencies Leadership Employees: 25,584 Management ≈ 3600 Professional ≈ 8800 Non-Exempt ≈ 5000 Craft Labor ≈ % male / 25% female 77% non-minority / 23% minority Average Service: 18 years Average Age: 46 years

Leadership Development – A Business Priority Drivers Industry Complexity Changing Workforce Culture of Inclusion Recruitment & Retention of Talent  Environmental regulation  Infrastructure expansion  Cost pressure  Retirements across all levels of leadership  Multiple generations working together  Female & minority representation  Leveraging differences for innovation  Changing employee expectations  Increasing rate of change – need rapid response  Tightening labor market  Realities of a mobile workforce  Today’s employees expect development

Leadership at All Levels

Development at All Levels First-Level Managers Managers of Managers Executives Emerging Talent  High potential identification  Talent reviews  Leadership development programs  Projects, assignments, job rotations  Internal & external training  Coaching & mentoring  Internal leadership training for new managers  Leadership development programs  Cross-system moves, special assignments/projects  Coaching & mentoring  Senior Leadership Development Program (SLDP)  University-based leadership training  Cross-system moves, special assignments/projects  Coaching & mentoring  Leadership training – usually university-based programs  System assignments  Coaching & mentoring All Employees  Internal & external training (online & classroom)  Tuition Reimbursement Program  Projects, assignments  Coaching & mentoring

Strong Foundational Skills - Drive/ambition- Understands organization culture - Strong interpersonal skills - Adapts to change - Presence- Learns and applies new skills - Resilience Future Role Capability Demonstrates potential to move to the next leadership level and achieve expectations. HIGHPOTENTIALHIGHPOTENTIAL Distinguished Performance - Technically competent - Embraces company values - Consistently achieves results over time

Leadership Competencies  Adapting & Responding to Change  Critical Thinking  Deciding & Initiating Action  Entrepreneurial & Commercial Thinking  Formulating Strategies & Concepts  Leading & Supervising  Persuading & Influencing  Planning & Organizing  Relating & Networking Cultural Competence Technical Competence Delivering Results

MANAGERIAL LEVEL: First-Level Manager EMPLOYEE: J.K. Sample LowLow-MidMid-RangeHigh-MidHigh COMPETENCIES Adapting & Responding to Change Critical Thinking Deciding & Initiating Action Entrepreneurial & Commercial Formulating Strategies Leading & Supervising Persuading & Influencing Planning & Organizing Relating & Networking Blue range is Southern Company benchmark range for first-level manager Black dots are J.K. Sample’s actual results

Career & Development Planning Partnership Development Employee Aspirations Company Needs  Identify what’s required  Assess current capabilities  Develop plan to close gaps & leverage strengths

Putting it All Together Business Results Southern Style Competencies Leadership