1. E&CS Overview & Major Construction Update Eddie Clayton

2. Discussion Guide Southern Company Overview E&CS Overview Environmental projects New Generation projects

3. Southern Company A super-regional energy company Headquarters: Atlanta, Georgia Chairman, President and CEO: David Ratcliffe Customers Served: ~4.3 million over 120,000 square miles Generating Capacity: 42,000+ MW Employees: ~26,000

4. Southern Company Businesses Regulated Alabama Power Georgia Power Gulf Power Mississippi Power Southern Nuclear Competitive Southern Power Southern Generation Other SouthernLINC Wireless Southern Telecom

5. Engineering & Construction Strategy Utilize an “owner’s engineer” philosophy –Centralized technical staff for fossil & hydro power plant development and support –2/3 full-time employees; 1/3 supplemental & temporary personnel –Outside engineering and construction companies utilized to augment workforce Execute capital projects and provide O&M support for operating companies including Southern Power –Leverage economies of scale on new build and large retrofit programs –Fleet-wide operations and maintenance support Deploy and advance Technology (e.g., SCRs, Scrubbers, IGCC, Biomass, etc.) –Work closely with R&EA on testing and transition to full-scale development

6. Functional Areas Design: Mechanical, electrical, civil, I&C, equipment/materials procurement Engineering Services: QA program, project controls, document control, staffing Matrix support departments New Generation Orlando CC McDonough CC Cleveland CT Biomass IGCC Plant acquisitions Plant Technical Services Retrofits O&M Technical training Safety Program Power Engineering Environmental SCR Scrubber (FGD) Hg Baghouses Cooling Towers Water Treatment Gasification Technology Operations Technology interface w/ co-owner Market strategy Nuclear On-site construction oversight Project support Safety: Programs for full-time and contract employees as well as on-site contractors

7. Construction Management ― Labor broker contracts ― Modularization processes ― Resource management strategy

8. Equipment Overview Air Heater Bottom Ash Fly Ash Gypsum NO X Combustion Controls Fuel Changes New Stack Coal-Fired Boiler NO x & Hg Control SO 2 & Hg Control Dust & Hg Control Limestone SCR ESP ACI Scrubber Baghouse (Activated Carbon Injection) NOx - SNCR Materials: Steel: 200,000 Tons Ductwork: 110,000 Tons Fiberglass Reinforce Piping: 13,000 Tons Electrical/Control Cable: 7,400 miles Concrete: 1,500,000 yd 3 Labor: Average 11-12 million work-hours per year Peak demand of 6,000 craft required across the system Environmental Program Summary Costs: 650 MWs will be required to power new equipment

9. GPC Major Environmental Projects Complete Future

10. APC, Gulf, and Mississippi Power Environmental Projects Complete Future Complete Future Complete

11. New Generation Projects

12. McDonough Combined Cycle Units 4, 5,& 6 Technology –2x1 CC MHI “G” gas turbine –Toshiba steam turbine Man Hours –4.5 million craft labor hrs

13. Vogtle Nuclear Plant – addition of Units 3 and 4 Additional Generating Capacity: 2200 MW (new total: 4520 MW) 11+ years from first licensing activities until COD 3500 people on-site during construction

14. Kemper County IGCC The Kemper County IGCC Project will use TRIG™ technology. The facility will have less nitrous oxide, sulfur dioxide and mercury emissions than traditional pulverized coal plants. Additionally, the facility plans to capture and store 50 percent of its carbon dioxide emissions, making it one of the first IGCC electric generating plants in the country with that capability. Kemper County will produce 582 megawatts of power.

15. Southern Company Total Craft Labor Demand

16. Success managing large diverse construction programs –Projects are on-track to meet required deadlines –Projects are delivering expected performance –Efficient deployment of capital In-house planning and execution is an advantage –Multi-project consolidation – better overall risk management –Efficiencies through repetition –Lessons learned transferred to/from operations Take-Aways

17. Questions?