1. 2006 TRANSMISSION CUSTOMER FORUM September 21, 2006 Andrew J. Dearman, III Executive Vice President & Chief Transmission Officer

2. Katrina PHOTO HERE

4. Hurricane Katrina’s Wrath  140 mph winds with 35 foot storm surge  Worst natural disaster in history of MPC  Largest operational challenge in our 80 year history  Impacted all 1,250 MPC employees  Destroyed homes and in some cases entire neighborhoods

5. Impacts to Southern Company  All 195,000 MPC customers lost power  More than 600,000 APC customers lost power  All but 3 of MPC’s 122 transmission lines were out of service (1,914 miles)  67 transmission lines out in Alabama (1,505 miles)  12 substations flooded in Mississippi  1 substation flooded in Alabama

6. Impacts to Southern Company  MPC’s second largest generating plant was flooded  MPC HQ building in Gulfport will not be fully operational until late 2006

7. Excellent Execution of a Well-Defined Plan  Excellence in damage assessment  Six full service tent cities erected  140,000 gallons of fuel into 5,000 trucks daily  30,000 meals daily  250 person armed security force

8. All customers who could take power were restored in 12 days All substations energized in 6 days

9. Lessons Learned Business Continuity Communications Government Agency Interface Employee Issues

10. Transmission Industry Key Issues on the National Front Creation of the Electric Reliability Organization (ERO) FERC Rule on Transmission Incentives FERC Transmission Line Siting NOPR FERC Order 888 and OATT Reform NOPR Regional Planning

11. Transmission Fundamentals of Success Organization structure Strong leaders Clearly defined strategy Commitment to be the BEST

12. Control Area Readiness Audit by completed by NERC in 2004 –100% Compliance Reliability Coordinator Readiness Audit Completed in Spring, 2006 –Audit Team found no operational problems –Reported that operations and support staff is knowledgeable and competent

14. SAIDI: System Average Interruption Duration Index 14.07

15. SAIFI: System Average Interruption Frequency Index 0.198

16. Southern Company ranks first for the 5th consecutive year Southern Company Customer Satisfaction & Value

17. Source: Energy Information Administration (EIA). National Average is calculated using EIA 826 data for Investor Owned Utilities. Southern Company: Low Prices 2005 U.S. Total Average Price was 8.14 cents/kwh

18. Average Retail Rates Southern Company vs. the National Average 0 1 2 3 4 5 6 7 8 9 200020012002200320042005 Cents/kWh National Average Total Southern Company Southern Company vs. National Average Relative Rates Price Comparison

19. Savannah Electric & Power MERGED WITH Georgia Power Company On July 1, 2006

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