1. Future Power Generation in Georgia Georgia Climate Change Summit May 6, 2008 Danny Herrin, Manager Climate and Environmental Strategies Southern Company

2. Historical Electricity Generation United States, 1990-2006 Data Source: Energy Information Administration, US Department of Energy 1990 - 52% 2006 - 49%

3. Historical Electricity Generation Georgia, 1990-2006 Data Source: Energy Information Administration, US Department of Energy 1990 - 67% 2006 - 63%

4. Current Electricity Generation Selected southeastern states, 2006 Georgia Alabama South Carolina Florida Alabama 63% 39% 55% 51% 23% 29% 43% 23% Data source: Energy Information Administration

5. U.S. Electricity Generation by Region History and projection, 1990-2030 Data Source: Energy Information Administration, US Department of Energy ProjectionHistory Projected growth 2008-2030 34% 25% 34% 22% 11%

6. Projected Electricity Generation Southeast US, EIA Reference Case projection, 2008-2030 Data Source: Energy Information Administration, Annual Energy Outlook 2007 2008 - 47% 2030 - 57%

7. Proposed Climate Change Legislation 80% below 1990 levels to ~ 1.2 billion metric tons by 2050

8. The Real Cost of Tackling Climate Change U.S. population is expected to be around 420 million by 2050. To meet the 80% below 1990 levels by 2050 we would have to reduce U.S. emissions to ~1 billion metric tons or go from ~20 tons per capita to ~2.5 tons per capita. France and Switzerland that generate almost all their electricity from non-fossil fuels are at about 6.5 tons per capita. Replacing every existing coal plant with a natural gas plant would still put us at twice the 2050 target. If everyone drove a Toyota Prius in 2050 the equivalent transportation target would be overshot by 40%. “The Real Cost of Tackling Climate Change” Steven F. Hayward Wall Street Journal - April 28, 2008

9. Generating Options Pulverized coal Integrated gasification combined cycle Natural gas combined cycle Nuclear Renewable energy Carbon capture and sequestration

10. EIA 2008 1-3% Heat Rate Improvement for 130-GWe Existing Plants 46% New Plant Efficiency by 2020; 49% in 2030 No Heat Rate Improvement for Existing Plants 40% New Plant Efficiency by 2020–2030 Advanced Coal Generation 5% of Base Load in 2030< 0.1% of Base Load in 2030DER 10% of New Light-Duty Vehicle Sales by 2017; 33% by 2030 NonePHEV Widely Deployed After 2020NoneCCS 64 GWe by 203015 GWe by 2030Nuclear Generation 100 GWe by 203055 GWe by 2030Renewables Load Growth ~ +0.75%/yrLoad Growth ~ +1.05%/yrEfficiency TargetEIA 2008 ReferenceTechnology EIA Base Case 2008 (Energy Bill) Electric Sector CO 2 Reduction Potential Achieving all targets is very aggressive, but potentially feasible EIA 2007

11. Full Portfolio 876543210876543210 200020102020203020402050 Trillion kWh per Year 876543210876543210 200020102020203020402050 Trillion kWh per Year Limited Portfolio Impact on Future U.S. Electricity Mix Coal w/CCS Gas w/CCSNuclear Hydro Wind SolarOil Demand Reduction Demand with No Policy Biomass Coal Coal with CCS Gas Nuclear Hydro Wind Biomass Wind Electricity Prices Up 260% Electricity Prices Up 45%

12. Climate Change Technology Development Timeline 20052010201520202025 Renewables IGCCCapture & Storage Demo Projects New Nuclear Retail and Generation Energy Conservation and Efficiency Improvements Capture & Storage Commercial?

13. Insights from Recent EPRI Work The technical potential exists for the U.S. electricity sector to significantly reduce its CO 2 emissions over the next several decades. No one technology will be a silver bullet – a portfolio of technologies will be needed. Much of the needed technology is not available yet – substantial R&D, demonstrations are required. A low-cost, low-carbon portfolio of electricity technologies can significantly reduce the costs of climate policy.

14. Key Findings EIA Analysis of Lieberman-Warner S.2191 “The electric power sector accounts for the vast majority of the emissions reductions, with new nuclear, renewable, and fossil plants with CCS serving as the key compliance technologies in most cases. Many existing coal plants without CCS are projected to be retired early because retrofitting with CCS technology is generally impractical.” “If new nuclear, renewable, and fossil plants with CCS are not developed and deployed in a timeframe consistent with the emissions reduction requirements, covered entities are projected to turn to increased natural gas use to offset reductions in coal generation, resulting in markedly higher delivered prices of natural gas.”

15. Seeking Solutions - Some of Southern Company’s Notable Initiatives Developed, with KBR and DOE, TRIG TM advanced coal gasification technology Leading a consortium that is researching: CO 2 deep saline injection demonstration at Mississippi Power’s Plant Daniel CO 2 injection into unmineable coal seams in Alabama Capacity of an Alabama oil field for CO 2 storage Researching biomass co-firing Evaluating conversion of selected coal plants to 100 percent biomass Planting trees – 45 million, and counting Winner of 2008 Excellence in ENERGY STAR® Promotion Award for Georgia Power’s compact fluorescent light bulb program Evaluating significant new nuclear and IGCC generation

16. Southern Company’s Climate Change Policy Climate change is a challenging issue for our world and our nation. Southern Company is committed to a leadership role in finding solutions that make technological, environmental and economic sense. The focus of this effort must be on developing and deploying technologies that reduce greenhouse gases while making sure that electricity remains reliable and affordable. Southern Company believes that this is the most responsible approach to meeting the needs of the environment and its customers and shareholders.