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) June 29, 2007
-------------------------------
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)
30 Ivan Allen Jr. Boulevard, N.W.
Atlanta, Georgia 30308
(404) 506-5000
1-6468 Georgia Power Company 58-0257110
(A Georgia Corporation)
241 Ralph McGill Boulevard, N.E.
Atlanta, Georgia 30308
(404) 506-6526
The addresses of the registrants have not changed since the last report.
This combined Form 8-K is filed separately by two registrants: The Southern
Company and Georgia Power Company. Information contained herein relating to each
registrant is filed by each registrant solely on its own behalf. Each registrant
makes no representation as to information relating to the other registrant.
Item 8.01 Other Events.
On June 29, 2007, Georgia Power Company ("Georgia Power") filed a
request to increase retail base rates with the Georgia Public Service Commission
("GPSC"). The request includes an increase effective January 1, 2008 of
approximately $406.7 million or 5.98 percent in retail revenues, based on a
future test year ending July 31, 2008 and a proposed retail return on common
equity of 12.5 percent. The majority of the increase in retail revenues is being
requested to cover the costs of environmental compliance and continued
investment in new generation, transmission and distribution facilities to
support growth and ensure reliability. The remainder of the increase would
include recovery of higher operation, maintenance and other investment costs to
meet the rising demand for electricity.
In January 2005, Georgia Power began operating under a three-year
retail rate order that expires December 31, 2007. Under the terms of the
existing order, earnings are evaluated annually against a retail return on
common equity range of 10.25 percent to 12.25 percent. Two-thirds of any
earnings above the 12.25 percent return are applied to rate refunds, with the
remaining one-third retained by Georgia Power. The order required Georgia Power
to file a general rate case by July 1, 2007, in response to which the GPSC would
be expected to determine whether the rate order should be continued, modified or
discontinued. See MANAGEMENT'S DISCUSSION AND ANALYSIS - FUTURE EARNINGS
POTENTIAL - "PSC Matters - Georgia Power" of The Southern Company ("Southern")
and MANAGEMENT'S DISCUSSION AND ANALYSIS -FUTURE EARNINGS POTENTIAL - "PSC
Matters - Rate Plans" of Georgia Power in Item 7 of the Annual Report on Form
10-K for the year ended December 31, 2006 (the "Annual Report") and Note 3 to
the financial statements of Southern and Georgia Power under "Georgia Power
Retail Regulatory Matters" and "Retail Regulatory Matters - Rate Plans" in Item
2
8 of the Annual Report for additional information. If the GPSC is interested in
a continuation of the current three-year rate plan, Georgia Power has also filed
an option that includes additional increases of approximately $191 million or
2.65 percent and $45 million or 0.61 percent in retail revenues effective
January 1, 2009 and 2010, respectively, to cover the costs of additional
environmental controls and certified purchased power agreements.
Georgia Power expects to invest approximately $9.1 billion over
the next five years in capital expenditures (including $1.9 billion in 2007 and
$1.8 billion in each of 2008 - 2011). Of the total capital expenditures,
approximately $2.7 billion is related to environmental controls (including $1.0
billion in 2007, $0.6 billion in 2008, $0.3 billion in 2009, $0.3 billion in
2010 and $0.5 billion in 2011).
Georgia Power expects the GPSC to issue a final order in this
matter during December 2007. The final outcome of this matter cannot now be
determined.
Cautionary Notice Regarding Forward-Looking Statements
This Current Report on Form 8-K includes forward-looking statements regarding
Georgia Power's projected capital expenditures for a five year period ending in
2011 and Georgia Power's filing with the GPSC to increase retail base rates.
There are various factors that could cause actual results to differ materially
from those suggested by the forward-looking statements; accordingly, there can
be no assurance that such indicated results will be realized. These factors
include: the impact of recent and future federal and state regulatory change,
including legislative and regulatory initiatives regarding deregulation and
restructuring of the electric utility industry, implementation of the Energy
Policy Act of 2005, and also changes in environmental, tax, and other laws to
which Southern and its subsidiaries, including Georgia Power, are subject, as
well as changes in application of existing laws and regulations; current and
future litigation, regulatory investigations, proceedings or inquiries,
including the pending Environmental Protection Agency civil actions against
certain Southern subsidiaries, FERC matters, IRS audits and Mirant matters; the
effects, extent and timing of the entry of additional competition in the markets
in which Southern's subsidiaries, including Georgia Power, operate; variations
in the demand for electricity, including those related to weather, the general
economy and population, and business growth (and declines); available sources
and costs of fuel; ability to control costs; investment performance of
Southern's employee benefit plans; advances in technology; state and federal
rate regulations and the impact of pending and future rate cases and
negotiations, including rate actions relating to fuel cost recovery; internal
restructuring or other restructuring options that may be pursued; potential
3
business strategies, including acquisitions or dispositions of assets or
businesses, which cannot be assured to be completed or beneficial to Southern or
its subsidiaries, including Georgia Power; the ability of counterparties of
Southern and its subsidiaries, including Georgia Power, to make payments as and
when due; the ability to obtain new short- and long-term contracts with
neighboring utilities; the direct or indirect effect on the business of Southern
and its subsidiaries, including Georgia Power, resulting from terrorist
incidents and the threat of terrorist incidents; interest rate fluctuations and
financial market conditions and the results of financing efforts, and the credit
ratings of Southern and its subsidiaries, including Georgia Power; the ability
of Southern and its subsidiaries, including Georgia Power, to obtain additional
generating capacity at competitive prices; catastrophic events such as fires,
earthquakes, explosions, floods, hurricanes, pandemic health events, such as an
avian influenza, or other similar circumstances; the direct or indirect effects
on the business of Southern and its subsidiaries, including Georgia Power,
resulting from incidents similar to the August 2003 power outage in the
Northeast; the effect of accounting pronouncements issued periodically by
standard setting bodies; and other factors discussed in reports filed by
Southern and Georgia Power from time to time with the Securities and Exchange
Commission. Southern and Georgia Power expressly disclaim any obligation to
update these forward looking statements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, each of the registrants has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date: June 29, 2007 THE SOUTHERN COMPANY
By /s/Patricia L. Roberts
Patricia L. Roberts
Assistant Secretary
GEORGIA POWER COMPANY
By /s/Wayne Boston
Wayne Boston
Assistant Secretary