SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 21, 2004
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Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-3526 The Southern Company 58-0690070
(A Delaware Corporation)
270 Peachtree Street, N.W.
Atlanta, Georgia 30303
(404) 506-5000
The address of the registrant has not changed since the last report.
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events.
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See Item 7 - Management's Discussion and Analysis - "Future Earnings
Potential - Other Matters" of The Southern Company ("Southern Company") and Note
3 to the financial statements of Southern Company under "Georgia Power Retail
Rate Orders" in Item 8 of the Annual Report on Form 10-K for the year ended
December 31, 2003 and Note (I) to the Condensed Financial Statements in the
Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, for
information on Georgia Power Company's ("Georgia Power") existing retail rate
order and its rate increase request filed with the Georgia Public Service
Commission ("Georgia PSC") in July 2004.
On December 21, 2004, the Georgia PSC voted to approve a new three-year
retail rate plan for Georgia Power ending December 31, 2007 ("2004 Plan"). Under
the terms of the 2004 Plan, earnings will be evaluated against a retail return
on common equity range of 10.25 percent to 12.25 percent. Two-thirds of any
earnings above 12.25 percent will be applied to rate refunds, with the remaining
one-third retained by Georgia Power. Retail rates will be increased by
approximately $194 million effective January 1, 2005 to cover the higher costs
of purchased power; operating and maintenance expenses; environmental
compliance; and continued investment in new generation, transmission and
distribution facilities to support growth and ensure reliability.
See Item 7 - Management's Discussion and Analysis - "Future Earnings
Potential - FERC Matters - Market-Based Rate Authority" of Southern Company and
Note 3 to the financial statements of Southern Company under "FERC Matters" in
Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2003
and Note (J) to the Condensed Financial Statements in the Quarterly Report on
Form 10-Q for the quarter ended September 30, 2004, for information on the Plant
McIntosh construction project, which is jointly owned by Georgia Power and
Savannah Electric and Power Company. In the 2004 Plan, the Georgia PSC approved
the transfer of the Plant McIntosh construction project, which is scheduled for
completion in June 2005, at a total fair market value of approximately $385
million. This value reflects an approximate $16 million disallowance from the
total original transfer cost of approximately $401 million. This disallowance
will reduce Southern Company's 2004 consolidated net income by approximately
$9.5 million. The Georgia PSC also certified the total completion cost of the
project; thus, if the actual cost exceeds the certified amount, additional
disallowances may occur upon completion. Under the 2004 Plan, the Plant McIntosh
impact will be reflected in Georgia Power's rates evenly over the three years
ending 2007.
Georgia Power will not file for a general base rate increase unless its
projected retail return on common equity falls below 10.25 percent. Georgia
Power is required to file a general rate case on July 1, 2007, in response to
which the Georgia PSC would be expected to determine whether the rate order
should be continued, modified or discontinued.
SIGNATURE
Pursuant to the requirements of the Securities Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: December 21, 2004 THE SOUTHERN COMPANY
By /s/Tommy Chisholm
Tommy Chisholm
Secretary