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Southern Co Services Inc – ‘U-13-60’ for 12/31/02

On: Wednesday, 4/30/03, at 4:26pm ET · Effective: 4/30/03 · For: 12/31/02 · Accession #: 217216-3-1 · File #: 49-00059

  As Of                Filer                Filing    For·On·As Docs:Size

 4/30/03  Southern Co Services Inc          U-13-60    12/31/02    1:105K

Annual Report of a Mutual or Subsidiary Service Company — Form U-13-60
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: U-13-60     Annual Report of a Mutual or Subsidiary Service       59    271K 
                          Company

Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Donations General Advertising Expenses Miscellaneous General Expenses Other Deductions Rents Summary Taxes Other Than Income Taxes
1	1st Page - Filing Submission
13	Summary
46	General Advertising Expenses
47	Miscellaneous General Expenses
48	Rents
49	Taxes Other Than Income Taxes
50	Donations
53	Other Deductions

U-13-60 1st Page of 59 TOC ↑Top Previous Next ↓Bottom Just 1st
 
Form U-13-60
 Mutual and Subsidiary Service Companies
Revised February 7, 1980

 ANNUAL REPORT

For The Period

Beginning January 1, 2002 and Ending December 31, 2002

TO THE

U. S. SECURITIES AND EXCHANGE COMMISSION

OF

 SOUTHERN COMPANY SERVICES, INC.
 (Exact Name of Reporting Company)

 SUBSIDIARY  SERVICE COMPANY
----------                
("Mutual" or "Subsidiary")

Date of Incorporation April 21, 1949                                          
--------------                    
If not Incorporated, Date of Organization                                     

 State or Sovereign Power Under Which Incorporated or Organized State of Alabama

Location of Principal Executive Offices of Reporting Company                  
241 Ralph McGill Blvd., NE
 Atlanta, Georgia 30308-3374

       Name, title, and address of officer to whom correspondence concerning
this report should be addressed:                                                

               Senior Vice                    241 Ralph McGill Blvd., NE
W. Dean Hudson   Pres., Comptroller             Atlanta, Georgia 30308-3374 
(Name)     and Chief                             (Address)      
Financial Officer                         
(Title)                               

Name of Principal Holding Company Whose Subsidiaries are served by Reporting    
Company:                                                                        

THE SOUTHERN COMPANY

U-13-60 2nd Page of 59 TOC 1st Previous Next ↓Bottom Just 2nd
INSTRUCTIONS FOR USE OF FORM U-13-60

  1.  Time of Filing.--Rule 94 provides that on or before the first day of
 May in each calendar year, each mutual service company and each
         subsidiary service company as to which the Commission shall have made a
        favorable finding pursuant to Rule 88, and every service company whose
        application for approval or declaration pursuant to Rule 88 is pending
        shall file with the Commission an annual report on form U-13-60 and in
accordance with the Instructions for that form.               

    2.  Number of Copies.--Each annual report shall be filed in duplicate. The
         company should prepare and retain at least one extra copy for itself in
    case correspondence with reference to the report become necessary.

    3.  Period Covered by Report.--The first report filed by any company shall
   cover the period from the date the Uniform System of Accounts was
        required to be made effective as to that company under Rules 82 and 93
     to the end of that calendar year. Subsequent reports should cover a
calendar year.                                                

     4.  Report Format.--Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is
     inadequate, additional sheets may be inserted of the same size as a
sheet of the form or folded to such size.                     

 5.  Money Amounts Displayed.--All money amounts required to be shown in
         financial statements may be expressed in whole dollars, in thousands of
        dollars or in hundred thousands of dollars, as appropriate and subject
to provisions of Regulation S-X (210.3-01(b)).                

     6.  Deficits Displayed.--Deficits and other like entries shall be indicated
   by the use of either brackets or a parenthesis with corresponding
reference in footnotes. (Regulation S-X, 210.3-01(c))         

7.  Major Amendments or Corrections.--Any company desiring to amend or
       correct a major omission or error in a report after it has been filed
         with the Commission shall submit an amended report including only those
      pages, schedules, and entries that are to be amended or corrected. A
cover letter shall be submitted requesting the Commission to  
      incorporate the amended report changes and shall be signed by a duly
authorized officer of the company.                            

    8.  Definitions.--Definitions contained in Instruction 01-8 to the Uniform
        System of Accounts for Mutual Service companies and Subsidiary Service
   companies, Public Utility Holding Company Act of 1935, as amended
February 2, 1979 shall be applicable to words or terms used   
specifically within this Form U-13-60.                        

    9.  Organization Chart.--The service company shall submit with each annual
report a copy of its current organization chart.              

10.  Methods of Allocation.--The service company shall submit with each 
annual report a listing of the currently effective methods of 
   allocation being used by the service company and on file with the
   Securities and Exchange Commission pursuant to the Public Utility
Holding Company Act of 1935.                                  

11.  Annual Statement of Compensation for Use of Capital Billed.--The   
    service company shall submit with each annual report a copy of the
       annual statement supplied to each associate company in support of the
      amount of compensation for use of capital billed during the calendar
year.                                                         

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2                                                                            

   LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS                             
   ---------------------------------------------                             

                                                       Schedule or      Page 
   Description of Schedules and Accounts              Account Number   Number
   ---------------------------------------            ---------------  ------

                                                                             
      COMPARATIVE BALANCE SHEET                         Schedule I     4     
      -------------------------                                              

         SERVICE COMPANY PROPERTY                       Schedule II    5     

         ACCUMULATED PROVISION FOR DEPRECIATION                              
            AND AMORTIZATION OF SERVICE COMPANY                              
                 PROPERTY                               Schedule III   6     

         INVESTMENTS                                    Schedule IV    7     

         ACCOUNTS RECEIVABLE FROM ASSOCIATE                                  
            COMPANIES                                   Schedule V     8     

         FUEL STOCK EXPENSES UNDISTRIBUTED              Schedule VI    9     

         STORES EXPENSE UNDISTRIBUTED                   Schedule VII   10    

         MISCELLANEOUS CURRENT AND ACCRUED                                   
            ASSETS                                      Schedule VIII  11    

         MISCELLANEOUS DEFERRED DEBITS                  Schedule IX    12    

         RESEARCH, DEVELOPMENT, OR DEMONSTRATION                             
            EXPENDITURES                                Schedule X     13    

         PROPRIETARY CAPITAL                            Schedule XI    14    

         LONG-TERM DEBT                                 Schedule XII   15    

         CURRENT AND ACCRUED LIABILITIES                Schedule XIII  16    

         NOTES TO FINANCIAL STATEMENTS                  Schedule XIV   17    

      COMPARATIVE INCOME STATEMENT                      Schedule XV    18    
      ----------------------------                                           

         ANALYSIS OF BILLING - ASSOCIATE                                     
           COMPANIES                                    Account 457    19    

         ANALYSIS OF BILLING - NONASSOCIATE                                  
            COMPANIES                                   Account 458    20    

         ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE                         
            AND NONASSOCIATE COMPANIES                  Schedule XVI   21    


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                                                                                3   
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS  (Continued)                          
---------------------------------------------                                       

                                                             Schedule or       Page 
Description of Schedules and Accounts                       Account Number    Number
------------------------------------                        --------------    ------
                                                                                    
      SCHEDULE OF EXPENSE BY DEPARTMENT OR                                          
         SERVICE FUNCTION                                     Schedule XVII   22    

      DEPARTMENTAL ANALYSIS OF SALARIES                       Account 920     23    

      OUTSIDE SERVICES EMPLOYED                               Account 923     24    

      EMPLOYEE PENSIONS AND BENEFITS                          Account 926     25    

      GENERAL ADVERTISING EXPENSES                            Account 930.1   26    

      MISCELLANEOUS GENERAL EXPENSES                          Account 930.2   27    

      RENTS                                                   Account 931     28    

      TAXES OTHER THAN INCOME TAXES                           Account 408     29    

      DONATIONS                                               Account 426.1   30    

      OTHER DEDUCTIONS                                        Account 426.5   31    

      NOTES TO STATEMENT OF INCOME                            Schedule XVIII  32    

      ORGANIZATION CHART                                                      33    
      ------------------                                                            

      METHODS OF ALLOCATION                                                   34    
      ---------------------                                                         

      ANNUAL STATEMENT OF COMPENSATION FOR USE                                      

         OF CAPITAL BILLED                                                    35    
         -----------------                                                          


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4                                                                                                    
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                     
                                 -------------------------------                                     

                      For the Year Ended December 31, 2002                                           
                                         -----------------                                           
                             (Thousands of Dollars)                                                  

                     SCHEDULE I - COMPARATIVE BALANCE SHEET                                          
                     --------------------------------------                                          

Give balance sheet of the Company as of December 31 of the current and prior                         
year.                                                                                                

ACCOUNT                       ASSETS AND OTHER DEBITS                         AS OF DECEMBER 31      
-------                       -----------------------                         -----------------      
                                                                              CURRENT      PRIOR     
                                                                              -------      -----     
           SERVICE COMPANY PROPERTY                                                                  
           ------------------------                                                                  

                                                                                                     
    101        Service company property (Schedule II)                            238,255      251,202
    107        Construction work in progress (Schedule II)                           194        2,152
                                                                                 -------    ---------
                  Total Property                                                 238,449      253,354
                                                                                 -------      -------
    108        Less accumulated provision for depreciation                                           
                  and amortization of service company                                                
                  property (Schedule III)                                        108,060      131,362
                                                                                 -------      -------
                      Net Service Company Property                               130,389      121,992
                                                                                 -------      -------

           INVESTMENTS                                                                               
           -----------                                                                               

    123        Investments in associate companies (Schedule IV)                     -            -   
    124        Other investments (Schedule IV)                                     7,202        5,672
                                                                                 -------     --------
                  Total Investments                                                7,202        5,672
                                                                                 -------     --------

           CURRENT AND ACCRUED ASSETS                                                                
           --------------------------                                                                

    131        Cash                                                                5,237         -   
    134        Special deposits                                                     -            -   
    135        Working funds                                                        -               1
    136        Temporary cash investments (Schedule IV)                           14,100       95,500
    141        Notes receivable                                                     -            -   
    143        Accounts receivable                                               114,808       75,033
    146        Accounts receivable from associate                                                    
                  companies (Schedule V)                                         256,206      130,713
    152        Fuel stock expenses undistributed (Schedule VI)                      -            -   
    154        Materials and supplies                                              1,341        1,356
    163        Stores expense undistributed (Schedule VII)                          -            -   
    165        Prepayments                                                        72,498       50,710
    174        Miscellaneous current and accrued assets (Schedule VIII)            2,548          166
                                                                                 -------      -------
                      Total Current and Accrued Assets                           466,738      353,479
                                                                                 -------      -------

           DEFERRED DEBITS                                                                           
           ---------------                                                                           

    181        Unamortized debt expense                                              222          254
    184        Clearing accounts                                                     526           44
    186        Miscellaneous deferred debits (Schedule IX)                        29,432       16,783
    188        Research, development, or demonstration                                               
                  expenditures (Schedule X)                                         -            -   
    190        Accumulated deferred income taxes                                   8,071         -   
                                                                                 -------      -------
                      Total Deferred Debits                                       38,251       17,081
                                                                                 -------      -------

                      TOTAL ASSETS AND OTHER DEBITS                              642,580      498,224
                                                                                 =======      =======

                                                        [Enlarge/Download Table]


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                                                                                        4A
              ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                            
                               ------------------------------                             
                           (Thousands of Dollars)                                         

             SCHEDULE I - COMPARATIVE BALANCE SHEET (Continued)                           
             --------------------------------------                                       

ACCOUNT             LIABILITIES AND PROPRIETARY CAPITAL          AS OF DECEMBER 31        
-------             -----------------------------------          -----------------        
                                                                 CURRENT      PRIOR       
                                                                 -------      -----       
         PROPRIETARY CAPITAL                                                              
         -------------------                                                              

                                                                                          
    201      Common stock issued (Schedule XI)                        725          725    
    211      Miscellaneous paid-in-capital (Schedule XI)          (14,840)         150    
    215      Appropriated retained earnings (Schedule XI)            -              -     
    216      Unappropriated retained earnings                                             
                (Schedule XI)                                        -              -     
                                                                  -------      -------    
                    Total Proprietary Capital                     (14,115)         875    
                                                                  -------      -------    

         LONG-TERM DEBT                                                                   
         --------------                                                                   

    223      Advances from associate companies (Schedule XII)        -              -     
    224      Other long-term debt (Schedule XII)                   52,145       44,543    
    225      Unamortized premium on long-term debt                   -              -     
    226      Unamortized discount on long-term debt-debit            -              -     
                                                                  -------      -------    
                    Total Long-Term Debt                           52,145       44,543    
                                                                 --------     --------    

         CURRENT AND ACCRUED LIABILITIES                                                  
         -------------------------------                                                  

    231      Notes payable                                          8,280        8,154    
    232      Accounts payable                                     154,185       67,804    
    233      Notes payable to associated companies                                        
                (Schedule XIII)                                      -              -     
    234      Accounts payable to associate companies                                      
                (Schedule XIII)                                   111,434       67,448    
    236      Taxes accrued                                            622          780    
    237      Interest accrued                                         127          127    
    238      Dividends declared                                      -              -     
    241      Tax collections payable                                4,388        2,428    
    242      Miscellaneous current and accrued                                            
                liabilities (Schedule XIII)                       165,772      136,484    
                                                                  -------      -------    
                    Total Current and Accrued Liabilities         444,808      283,225    
                                                                  -------      -------    

         DEFERRED CREDITS                                                                 
         ----------------                                                                 

    253      Other deferred credits                               159,742      169,581    
    255      Accumulated deferred investment tax credits             -              -     
                                                                  -------      -------    
                    Total Deferred Credits                        159,742      169,581    
                                                                  -------      -------    

    282  ACCUMULATED DEFERRED INCOME TAXES                           -              -     
         ---------------------------------                        -------      -------    

                    TOTAL LIABILITIES AND PROPRIETARY                                     
                      CAPITAL                                     642,580      498,224    
                                                                  =======      =======    

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5                                                                                                               
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                
                                 ------------------------------                                                 
                      For the Year Ended December 31, 2002                                                      
                                         -----------------                                                      
                             (Thousands of Dollars)                                                             

                                   SCHEDULE II                                                                  
                                   -----------                                                                  

                            SERVICE COMPANY PROPERTY                                                            
                            ------------------------                                                            

                                 BALANCE AT                                                      BALANCE AT     
                                 BEGINNING                        RETIREMENTS       OTHER 1/      CLOSE OF      
      DESCRIPTION                 OF YEAR        ADDITIONS         OR SALES         CHANGES         YEAR        
      -----------                ----------      ---------        -----------       -------      -----------    

SERVICE COMPANY PROPERTY                                                                                        
------------------------                                                                                        

Account                                                                                                         
-------                                                                                                         

                                                                                                                
301     ORGANIZATION                         -               -                -             -                -  
303     MISCELLANEOUS                                                                                           
        INTANGIBLE PLANT                     -               -                -             -                -  
304     LAND & LAND RIGHTS                   -               -                -             -                -  
305     STRUCTURES AND                                                                                          
        IMPROVEMENTS                       2,103             -                -             -              2,103
306     LEASEHOLD                                                                                               
        IMPROVEMENTS                      17,076             825             (657)          (31)          17,213
307     EQUIPMENT 2/                      96,768           5,296          (34,141)          334           68,257
                  -                                                                                             
307     GATX CAPITAL LEASES 2/               -             8,858              -             -              8,858
                            -                                                                                   
307     MISC. CAPITAL LEASES 2/             -              5,317              -             -              5,317
                             -                                                                                  
308     OFFICE FURNITURE                                                                                        
        AND EQUIPMENT 2/                  23,850           1,646           (6,111)          (23)          19,362
                      -                                                                                         
309     AUTOMOBILES, OTHER                                                                                      
        VEHICLES AND                                                                                            
        RELATED GARAGE                                                                                          
        EQUIPMENT 2/                         775              48              (17)          -                806
                  -                                                                                             
310     AIRCRAFT AND                                                                                            
        AIRPORT EQUIPMENT 2/              53,395          17,913           (1,153)      (10,091)          60,064
                          -                                                                                     
311     OTHER SERVICE COMPANY                                                                                   
        PROPERTY 2/ 3/                    57,235           5,481           (6,102)         (339)          56,275
                 -  -                    -------         -------         --------       -------          -------

          SUB-TOTAL                      251,202          45,384          (48,181)      (10,150)         238,255
                                         -------         -------         --------       -------          -------

107     CONSTRUCTION WORK                                                                                       
        IN PROGRESS 4/                     2,152             194              -          (2,152)             194
                    -                    -------         -------         --------      --------          -------

          TOTAL                          253,354          45,578          (48,181)      (12,302)         238,449
                                         =======         =======         ========      ========-         =======

1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:                                                 
-                                                                                                               

Re-classed two aircraft that were listed on the open market to a balance account                                
174-00013 Asset Held for Sale at their cost balance of (10,097). Transferred                                    
completed CWIP accounts to Software assets category for (2,152). Other charges                                  
in the amount of (53) include re-classes and adjustments to prior year assets.                                  

( ) Denotes red figure                                                                                          

                             (Continued on Page 5A)                                                             


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                                                                        5A
 SCHEDULE II-CONTINUED

(Thousands of Dollars)

2/      SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE 
-       COMPANY  SHALL  PROVIDE A LISTING BY  SUBACCOUNT OF EQUIPMENT ADDITIONS 
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:       

                                                          BALANCE AT
                                                          CLOSE OF
SEC/CLASS       SUBACCOUNT DESCRIPTION        ADDITIONS           YEAR          
---------       ----------------------        ----------        -----------     

307/02          Research & Laboratory Equip.         1,562            9,832     
307/04          Personal Computer Equip.             3,079           46,248     
307/05          Computer Equipment                     483            7,093     
307/11          Telephone Systems                      137            3,897     
307/12          Telecommunications Equip.               35            1,187     
307/101         GATX Capital Leases                  8,858            8,858     
307/102         Misc. Capital Leases                 5,317            5,317     
308/01          Furniture & Fixtures                 1,066           12,359     
308/09           Data Handling Equipment                                        
             & Miscellaneous                      580            7,003
309/08          Autos, Trucks & Trailers                48              806     
310/07          Aircraft                            17,913           60,064     
311/10          Software                             5,481           54,604     
311/13          Coal Pilot Scale Combustion                                     
             Facility                             -              1,671
                                               ------          -------

                         TOTAL                 44,559          218,939
                                               ======          =======

3/      DESCRIBE OTHER SERVICE COMPANY PROPERTY:                                
-                                                                               

1. Purchased computer software and software licenses.             
2. Pulverized coal pilot scale combustion facility.               

4/     DESCRIBE CONSTRUCTION WORK IN PROGRESS:                                  
-                                                                               

  Construction Work in Progress ending balance of $194 is for software
development of Variable Compensation Project.                     

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6                                                                                                                     
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                      
                                 ------------------------------                                                       

                      For the Year Ended December 31, 2002                                                            
                                         -----------------                                                            
                             (Thousands of Dollars)                                                                   

                                  SCHEDULE III                                                                        
                                  ------------                                                                        

                   ACCUMULATED PROVISION FOR DEPRECIATION AND                                                         
                    AMORTIZATION OF SERVICE COMPANY PROPERTY                                                          
                    ----------------------------------------                                                          

                                                   ADDITIONS                        OTHER                             
                                  BALANCE AT        CHARGED                         CHARGES    BALANCE AT             
                                  BEGINNING           TO                           ADD  (1)     CLOSE OF              
      DESCRIPTION                  OF YEAR         ACCT #403       RETIREMENTS    (DEDUCT)       YEAR                 
      -----------                 ---------        ---------       -----------     --------    -----------            

Account                                                                                                               
-------                                                                                                               
                                                                                                                      

301     ORGANIZATION                   -               -               -              -               -               

303     MISCELLANEOUS                                                                                                 
        INTANGIBLE PLANT               -               -               -              -               -               

304     LAND & LAND RIGHTS             -               -               -              -               -               

305     STRUCTURES AND                                                                                                
        IMPROVEMENTS                 1,355             127             -              -             1,482             

306     LEASEHOLD                                                                                                     
        IMPROVEMENTS                 6,544           1,391            (622)           -             7,313             

307     EQUIPMENT                   69,425          10,293         (33,086)           248          46,880             

307     GATX CAPITAL LEASES            -               959             -              -               959             

307     MISC, CAPITAL LEASES           -             3,292             -              -             3,292             

308     OFFICE FURNITURE                                                                                              
        AND FIXTURES                15,114           1,570          (5,900)           (10)         10,774             

309     AUTOMOBILES, OTHER                                                                                            
        VEHICLES AND                                                                                                  
        RELATED GARAGE                                                                                                
        EQUIPMENT                      643              44             (17)             -             670             

310     AIRCRAFT AND                                                                                                  
        AIRPORT EQUIPMENT            9,327           1,701             (37)          (5,043)        5,948             

311     OTHER SERVICE                                                                                                 
        COMPANY PROPERTY            28,954           7,916          (5,885)            (243)       30,742             
                                 ---------         -------        --------         --------      --------             

        TOTAL                      131,362          27,293         (45,547)          (5,048)      108,060             
                                   =======          ======         =======          =======-      =======             

(1)   Provide an explanation of those charges considered material:  Re-classed two aircraft that were listed          
      on the open market to a  balance sheet account 17400013 - Asset Held For Sale at their reserve balance ($5,048).
( ) Denotes red figure.                                                                                               

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                                                                         7
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------
(Thousands of Dollars)

 SCHEDULE IV
 -----------

 INVESTMENTS
 -----------

INSTRUCTIONS:    Complete the following schedule concerning investments.        

    Under Account 124, "Other Investments", state each
        investment separately, with description, including the
        name of issuing company, number of shares or principal
amount, etc.                                  

       Under Account 136, "Temporary Cash Investments", list
each investment separately.                     

                                       BALANCE AT         BALANCE AT
                                      BEGINNING           CLOSE OF
DESCRIPTION                           OF YEAR             YEAR  
-----------                          --------------     ------- 

ACCOUNT 123 -   INVESTMENT IN ASSOCIATE                                         
          COMPANIES                              -                 -

ACCOUNT 124 - OTHER INVESTMENTS                                                 

Rabbi Trust                                     4,744             6,566 
Employee Energy Loans                             784               562 
ACE Limited - Reserve                              69                69 
Employee Computer Loans                            75                 5 
                                            --------            ------
   Subtotal                                    5,672             7,202

ACCOUNT 136 - TEMPORARY CASH INVESTMENTS           95,500            14,100     
                                            --------            ------

   TOTAL                                     101,172            21,302
                                             =======            ======

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8                                                                               
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------
For the Year Ended December 31, 2002
                   -----------------
(Thousands of Dollars)

SCHEDULE V
----------

ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
--------------------------------------------

INSTRUCTIONS:  Complete the following schedule listing accounts receivable from 
            each associate company. Where the service company has provided
              accommodation or convenience payments for associate companies, a
              separate listing of total payments for each associate company by
subaccount should be provided.                    

                                                                [Download Table]


                                                            BALANCE AT  BALANCE AT
                                                            BEGINNING    CLOSE OF 
        DESCRIPTION                                          OF YEAR      YEAR    
        -----------                                         ----------  ----------

ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES                        

                                                                                  
    The Southern Company                                      2,233         6,619 
    Alabama Power Company                                    38,216        67,524 
    Georgia Power Company                                    42,184        92,647 
    Gulf Power Company                                        5,573        17,920 
    Mirant *                                                  3,101           -   
    Mississippi Power Company                                15,504        23,574 
    Savannah Electric and Power Company                       4,963         7,248 
    Southern Communications Services, Inc.                    1,427         1,544 
    Southern Company Energy Marketing *                          24           -   
    Southern Company Energy Solutions, LLC                      218           630 
    Southern Company Gas,LLC                                    -          19,294 
    Southern Company Holdings, Inc.                             219         1,342 
    Southern Electric Generating Company                      2,028         1,245 
    Southern Electric Railroad Company                          366           492 
    Southern Information Holding Company, Inc.                    2             1 
    Southern Management Development, Inc.                       358           428 
    Southern Nuclear Operating Company, Inc.                 10,979         9,524 
    Southern Power Company                                    3,072         5,668 
    Southern Telecom, Inc.                                      246           506 
                                                            -------       ------- 

        TOTAL                                               130,713       256,206 
                                                            =======       ======= 

(Continued on Page 8A)                                                            


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                                                                      8A
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
               -----------------------------

For the Year Ended December 31, 2002
                   -----------------
(Thousands of Dollars)
 (Continued)

SCHEDULE V
----------

ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
--------------------------------------------

INSTRUCTIONS:   Complete the following schedule listing accounts                
 receivable from each associate company. Where the
service company has provided accommodation or   
convenience payments for associate companies, a 
     separate listing of total payments for each associate
company by sub-account should be provided.      

ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:               TOTAL          
                                                      PAYMENTS
                                                      --------

The Southern Company                                            62      
Alabama Power Company                                      507,912      
Georgia Power Company                                      742,724      
Gulf Power Company                                         143,512      
Mississippi Power Company                                  215,200      
Savannah Electric and Power Company                        106,793      
Southern Communications Services, Inc.                      15,437      
Southern Company Energy Solutions, LLC                           1      
Southern Company Gas, LLC                                  116,722      
Southern Electric Generating Company                           212      
Southern Management Development, Inc.                        5,180      
Southern Nuclear Operating Company, Inc.                   138,842      
Southern Power Company                                         654      
                                                   ---------

TOTAL PAYMENTS                                       1,993,251  
                                                   =========

The major portion of the above expenses consists of transactions related to     
Transmission Planning and Operations (TPO); Southern Wholesale Energy (SWE);    
Southern Gas Billing (SGB); third party payroll payments; and Electric Power    
Research Institute dues.                                                        

* Company spun-off as a separate entity in 2001. The amounts are related to     
activity prior to the separation.                                               

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                                                                                                9                              
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                               
                                 ------------------------------                                                                
                      For the Year Ended December 31, 2002                                                                     
                                         -----------------                                                                     
                             (Thousands of Dollars)                                                                            

                                   SCHEDULE VI                                                                                 
                                   -----------                                                                                 

                        FUEL STOCK EXPENSES UNDISTRIBUTED                                                                      
                        ---------------------------------                                                                      

INSTRUCTIONS:   Report the amount of labor and expenses incurred with respect to fuel stock expenses during the year and       
                indicate amount attributable to each associate company. Under the section headed "Summary" listed below give an
                overall report of the fuel functions performed by the service company.                                         

        DESCRIPTION                                                  LABOR           EXPENSES            TOTAL                 
        -----------                                                  -----           --------            -----                 

                                                                                                                               
ACCOUNT 152 - FUEL STOCK EXPENSES                                                                                              
    UNDISTRIBUTED                                                      8,388               5,848          14,236               

Total amount billed during current year as follows:                                                                            

Associated Companies                                                                                                           

    The Southern Company                                                (148)                (78)           (226)              
    Alabama Power Company                                             (2,274)             (1,647)         (3,921)              
    Georgia Power Company                                             (3,717)             (2,641)         (6,358)              
    Gulf Power Company                                                  (858)               (543)         (1,401)              
    Mississippi Power Company                                           (752)               (476)         (1,228)              
    Savannah Electric and Power Company                                 (206)               (135)           (341)              
    Southern Electric Railroad Company                                   -                    (5)             (5)              
    Southern Company Energy Solutions, LLC                                (1)                -                (1)              
    Southern Company Gas, LLC                                           (108)                (80)           (188)              
    Southern Company Holdings, Inc.                                       (1)                 (1)             (2)              
    Southern Electric Generating Company                                (217)               (170)           (387)              
    Southern Nuclear Operating Company, Inc.                             -                    (1)             (1)              
    Southern Power Company                                              (106)                (64)           (170)              
                                                                     -------              ------         -------               

        Subtotal Associate Companies                                  (8,388)             (5,841)        (14,229)              
                                                                    --------              ------         -------               

Non-Associated Companies:                                                -                    (7)             (7)              
                                                                    --------              ------         -------               

        Subtotal Associate and Non-associate Companies                (8,388)             (5,848)        (14,236)              
                                                                    --------              ------         -------               

        TOTAL                                                              0                   0               0               
                                                                    ========              ======         =======               

SUMMARY:    Fuel services performed by the service company consist of acting as agent on behalf of all the system              
            operating companies on fossil related matters as defined in an operating agreement with each company.              
            The purchase of natural gas for the operating companies is included in the fuel services                           
            performed by the service company. Costs associated with this service are included in the above amounts:            
            Labor - 1,439;             Expenses - 1,056; Total - 2,495.                                                        


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10                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------
(Thousands of Dollars)

 SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
 -------------------------------------------

INSTRUCTIONS:  Report the amount of labor and expenses incurred with respect to 
             stores expense during the year and indicate amount attributable
to each associate company.                        

     DESCRIPTION                          LABOR      EXPENSES        TOTAL
    -----------                          -----      --------       -----

ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED                                      

NOT APPLICABLE                                                          

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                                                                                       11
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                         
                                 ------------------------------                          

                      For the Year Ended December 31, 2002                               
                                         -------------------                             
                             (Thousands of Dollars)                                      

                                  SCHEDULE VIII                                          
                                  -------------                                          

                    MISCELLANEOUS CURRENT AND ACCRUED ASSETS                             
                    ----------------------------------------                             

INSTRUCTIONS:   Provide detail of items in this account. Items less than                 
                $10,000 may be  grouped,  showing the number of items in each            
                group.                                                                   

                                                             BALANCE AT        BALANCE AT
                                                             BEGINNING         CLOSE OF  
        DESCRIPTION                                           OF YEAR            YEAR    
        -----------                                          ----------        ----------

ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED ASSETS                                   
                                                                                         

        Interest Receivable -Temporary Cash Investments            166             44    
        Assets Held for Sale                                       -            2,504    
                                                                 -----         ------    

          Total                                                    166          2,548    
                                                                 =====         ======    


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12                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------
(Thousands of Dollars)

 SCHEDULE IX
--------------  

 MISCELLANEOUS DEFERRED DEBITS
------------------------------

INSTRUCTIONS:  Provide detail of items in this account.  Items less than        
              $10,000 may be grouped, showing the number of items in each class.

                                                                [Download Table]


                                                  BALANCE AT     BALANCE AT 
                                                  BEGINNING       CLOSE OF  
        DESCRIPTION                                OF YEAR         YEAR     
        -----------                               ----------     ---------- 

ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS                                 

                                                                            
    Deferred Payroll Charge                              9,548        10,364

    Deposit for Georgia Sales and Use Tax                   25            26

    Wilsonville Clean-up                                     1           -  

    Executive Stock Option Taxes                            61           314

    Intangible Asset - Minimum Pension Oblig.              -          14,916

    Unamortized Leasehold - Inverness                      299           242

    Unamortized Leasehold - Washington, DC                  70           232

    Sundry Delayed Clearance                             6,779         3,338
                                                       -------       -------

    Total                                               16,783        29,432
                                                       =======       =======


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                                                                        13
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
               -------------------------------

For the Year Ended December 31, 2002
                  ----------------
(Thousands of Dollars)

SCHEDULE X
----------- 

 RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
 -------------------------------------------------

INSTRUCTIONS:  Provide a description of each material research, development,    
         or demonstration project that incurred costs by the service
corporation during the year.                      

   DESCRIPTION                                                  AMOUNT
   -----------                                                  ------

ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION                           
                      EXPENDITURES                                  32,798

Total amount billed/incurred during current year as follows:                    

Government Projects:                                                            
Clean Coal Technology Projects:                                         
       Hammond Wall Fired Project                                         (92)

Other Government Projects:                                              
       PSDF/Hot Gas Cleanup Project                                   (21,911)
      Switchgrass Demonstration (SRI/DOE)                                 20

EPRI Projects:                                                                  
   RE&A EPRI Contracts                                                   (208)
   Engineering EPRI Projects                                             (532)
   EPRI Bulk Trans. System Reliability                                   (319)

Associate Companies:                                                            
   End-Use Research Projects                                             (877)
   Pwr Delivery Research-Overhead Transmission                           (742)
   Pwr Delivery Research-Transmission Substations                        (480)
   Pwr Delivery Research-Distribution                                    (566)
   Air Quality Studies                                                   (212)
   Combustion & Fuel Effects                                             (918)
   Research Administration                                               (564)
   Flue Gas Treatment                                                  (1,228)
   Advanced End-Use Technology Research                                (1,682)
   Advanced Energy Systems                                             (1,609)
   Thermal & Fluid Sciences                                              (844)
   R&D Tech Econ Assessments                                              (34)
                                                                     -------

TOTAL AMOUNT BILLED/INCURRED                                           (32,798) 
                                                                    --------

      TOTAL                                                                0
                                                                    ========

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14                                                                                                         
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                           
                                 ------------------------------                                            

                      For the Year Ended December 31, 2002                                                 
                                         ----------------                                                  
                             (Thousands of Dollars)                                                        

                        SCHEDULE XI - PROPRIETARY CAPITAL                                                  
                        -------------------------------                                                    
                                           NUMBER OF           PAR OR STATED          OUTSTANDING          
ACCOUNT                                     SHARES                VALUE                 CLOSE              
NUMBER           CLASS OF STOCK            AUTHORIZED           PER SHARE              OF PERIOD           
---------        --------------            ----------          -----------------      ---------------      

                                                                                                           
201              COMMON STOCK                                                         NO. OF SHARES        
                  ISSUED                      17,000               50.00              14,500               

TOTAL                                                                                 725                  

INSTRUCTIONS:   Classify amounts in each account with  brief explanation,  disclosing the general          
                nature  of transactions that gave rise to the reported amounts.                            

DESCRIPTION                                                                      AMOUNT                    
-----------                                                                     -------                    
ACCOUNT 211                                                                                                
            MISCELLANEOUS PAID-IN CAPITAL                                            150                   
            OTHER COMPREHENSIVE INCOME                                          (14,990)                   
                                                                                --------                   
TOTAL                                                                           (14,840)                   

ACCOUNT 215                                                                                                
            APPROPRIATED RETAINED EARNINGS                                           -                     
TOTAL                                                                                -                     

INSTRUCTIONS:   Give particulars concerning net income or (loss) during the  year, distinguishing          
                between compensation for the use of capital owed or net loss remaining from servicing      
                non-associates per the General Instructions of the Uniform System of Accounts. For         
                dividends paid during the year in cash or otherwise, provide rate percentage, amount of    
                dividend, date declared and date paid.                                                     

                                      BALANCE AT          NET INCOME                             BALANCE   
                                      BEGINNING                  OR            DIVIDENDS         AT CLOSE  
DESCRIPTION                            OF YEAR                (LOSS)              PAID            OF YEAR  
-----------                           --------------      ----------         ----------          --------  

ACCOUNT 216                                                                                                
   UNAPPROPRIATED                                                                                          
   RETAINED EARNINGS                     -                    -                    -                   -   

TOTAL                                    -                    -                    -                   -   
                                                                                                  -------  

TOTAL PROPRIETARY CAPITAL                                                                          (14,115)
                                                                                                   =======-

( ) Denotes red figure.                                                                                    


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15                                                                                                                                 

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                                   
                                 -------------------------------                                                                   

                      For the Year Ended December 31, 2002                                                                         
                                         ----------------                                                                          
                             (Thousands of Dollars)                                                                                

                          SCHEDULE XII - LONG-TERM DEBT                                                                            
                          -------------------------------                                                                          

INSTRUCTIONS:   Advances from associate companies should be reported separately for advances on notes, and advances on open        
                account. Names of  associate companies from which advances were received shall be shown under the class and series 
                of obligation column. For Account 224 - Other Long-Term Debt provide the name of creditor company or organization, 
                terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.               

                             TERMS OF OBLIG     DATE                                BALANCE AT                           BALANCE AT
                             CLASS & SERIES      OF       INTEREST    AMOUNT        BEGINNING                  1/          CLOSE   
 NAME OF CREDITOR            OF OBLIGATION     MATURITY     RATE     AUTHORIZED      OF YEAR      ADDITIONS   DEDUCTIONS   OF YEAR 
-----------------            -------------    ---------     -------   ---------    -----------   ----------  ----------    --------
                                                                                                                                   

ACCOUNT 223 - ADVANCES FROM ASSOCIATE                                                                                              
              COMPANIES:                                                                                                           

NOT APPLICABLE                                                                                                                     

ACCOUNT 224 - OTHER LONG-TERM DEBT:                                                                                                
NOTES PAYABLE                                                                                                                      
-------------                                                                                                                      
Merrill Lynch & Co.                          12/15/2009     7.625       40,000      40,000        -            -            40,000 
Equity Office Properties                     12/01/2005      7.25        13,600      4,543        -          1,407           3,136 

CAPITAL LEASE *                                                                                                                    
-------------                                                                                                                      
GATX Technology Services            01/31/06 - 12/31/06   4.59 - 5.29   8,858            -       8,858        2,998          5,860 
IR Mainframe                        07/31/03 - 02/28/05   8.00          8,455            -       8,455        5,306          3,149 
                                                                        -----       ------      ------        -----         ------ 

    TOTAL                                                              70,913       44,543      17,313        9,711         52,145 
                                                                       ======      =======      ======       ======         ====== 

1/    GIVE AN EXPLANATION OF DEDUCTIONS:   Amounts shown were transferred to current maturities                                    
-                                                                                                                                  

* The company has entered into four-year leases for personal computers and other technology equipment. Multiple leases were        
 created; the amount authorized is the total of all capitalized leases prior to amortization.                                      


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16                                                                                                                 
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                   
                                 ------------------------------                                                    

                      For the Year Ended December 31, 2002                                                         
                                         -----------------                                                         
                             (Thousands of Dollars)                                                                

                 SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES                                                   
                 -----------------------------------------------                                                   

INSTRUCTIONS:    Provide  balance of notes and accounts payable to each associate company.  Give description and   
                 amount of  miscellaneous current and accrued liabilities.  Items less than $10,000 may be grouped,
                 showing the number of items in each group.                                                        

                                                                     BALANCE AT                    BALANCE AT      
                                                                     BEGINNING                      CLOSE OF       
        DESCRIPTION                                                   OF YEAR                        YEAR          
        -----------                                                 -----------                   ----------       

ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES                                                                 

                                                                                                                   
    The Southern Company                                                    -                             -        
                                                                      ----------                    ---------      
        TOTAL                                                               -                             -        
                                                                      ==========                    =========      

ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES                                                              

    The Southern Company                                                     557                           557     
    Alabama Power Company                                                 45,145                        55,767     
    Georgia Power Company                                                  3,759                         7,239     
    Gulf Power Company                                                       369                         8,958     
    Mississippi Power Company                                             16,472                        12,805     
    Savannah Electric and Power Company                                      665                           275     
    Southern Communications Services, Inc.                                   417                           372     
    Southern Company Gas, LLC                                                 -                          4,749     
    Southern Electric Generating Company                                      -                             20     
    Southern Management and Development                                       62                            62     
    Southern Nuclear Operating Company, Inc.                                  -                          2,831     
    Southern Power Company                                                    -                         17,799     
    Mirant  *                                                                  2                           -       
                                                                        --------                      --------     
        TOTAL                                                             67,448                       111,434     
                                                                        ========                      ========     

ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES                                                        

    Incentive Pay (PPP)                                                   66,539                        88,778     
    Vacation Clearing Account                                             20,588                        20,589     
    Accrued Labor & Related Overheads                                      8,970                        10,514     
    Employee Group Insurance Premiums                                      1,515                           -       
    Employee Group Insurance Claims Reserve                                   -                          1,812     
    Early Retirement Benefits                                              1,134                         1,079     
    Accumulated Provision for Major Overhaul                                                                       
        of Aircraft                                                          546                           748     
    Supplemental Pensions and Benefits                                     5,085                         6,525     
    Department of Energy                                                     -                             189     
    Flex and Save Benefits                                                 1,379                         1,789     
    Severance Pay                                                          4,904                         7,564     
    Merrill Lynch Investment Mgt.                                            550                           -       
    Metro Life Advance-Current                                               301                           301     
    Performance Dividend Plan                                             19,231                        20,922     
    Employee Merchandise Withholding                                          23                            24     

(Continued on Page 16A)                                                                                            

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                                                                                                        16A        
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                   
                                ------------------------------                                                     
                      For the Year Ended December 31, 2002                                                         
                                         -----------------                                                         
                             (Thousands of Dollars)                                                                

                 SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES                                                   
                 -----------------------------------------------                                                   
                                   (Continued)                                                                     

                                                                     BALANCE AT                    BALANCE AT      
                                                                      BEGINNING                      CLOSE OF      
        DESCRIPTION                                                    OF YEAR                        YEAR         
        -----------                                                  ------------                  ---------       

    SCS - Employee Savings Plan                                           195                            -         
    Special Transmission Studies                                        3,617                          2,553       
    SCS - U.S. Savings Bonds Withholdings                                 206                            304       
    Funds Dist-Holders SE P&L Corp.                                        13                             13       
    SCS-FLEX Benefits Premiums                                          1,709                          2,043       
    Miscellaneous Payroll Withholdings                                    -                               24       
    Sublease Deposit -                                                                                             
      Aircraft Owners & Pilots Assoc.                                     -                               54       
    Miscellaneous (15 Beginning)(16 Ending)                               (21)                           (53)      
                                                                     --------                       --------       

        TOTAL                                                         136,484                        165,772       
                                                                     ========                       ========       

*   Mirant (formerly Southern Energy Resources) was spun-off as a separate entity in 2001. The balance in this     
    234 account is related to activity prior to the separation.                                                    


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17                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------

For the Year Ended December 31, 2002
                   -----------------

SCHEDULE XIV
------------- 

 NOTES TO FINANCIAL STATEMENTS
 -------------------------------

INSTRUCTIONS:            The space below is provided for important notes        
                   regarding the financial statements or any account
                    thereof. Furnish particulars as to any significant
                         contingent assets or liabilities existing at the end of
                        the year. Notes relating to financial statements shown
                   elsewhere in this report may be indicated here by
reference.                    

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                   
------------------------------------------                                

General                                                         
-------                                                         

   Southern Company Services, Inc. (the "Company") follows the Uniform
System of  Accounts  prescribed  by the Securities and Exchange 
Commission ("SEC") for service companies, as amended, effective 
January 1, 1980.                                                

   The Company has no earnings or retained earnings since it primarily
     renders services at cost to its parent company, The Southern Company,
and other affiliates, as further discussed in Note 2.           

   The financial statements are prepared in conformity with accounting
      principles generally accepted in the United States, which requires the
     use of estimates. The actual results may differ from those estimates.

Cash and Cash Equivalents                                       
------------------------                                        

 The Company considers all highly liquid investments with original
        maturities of 90 days or less to be cash equivalents. The carrying value
of cash and cash equivalents approximates fair value.           

Income Taxes                                                    
------------                                                    

     The Company is included in the consolidated federal income tax return
  with The Southern Company and its subsidiaries. Federal income tax
      deferrals primarily resulting from the use of accelerated depreciation
     are fully utilized and accounted for by the operating subsidiaries of
The Southern Company.                                           

Property, Equipment, and Depreciation and Amortization          
------------------------------------------------------          

Property and equipment are recorded at cost. Depreciation and   
        amortization are provided on the straight-line method over the estimated
economic life of the related asset (ranging from 3 to 12 years).
     Leasehold improvements are amortized over the lives of the respective
leases.                                                         

        On retirement or sale of assets, the cost of such assets and the related
       accumulated depreciation are removed from the accounts, and the gain or
loss, if any, is credited or charged to income.                 

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                                                                   17A
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------

SCHEDULE XIV
------------

 NOTES TO FINANCIAL STATEMENTS
 -----------------------------

INSTRUCTIONS:    The space below is provided for important notes                
   regarding the financial statements or any account
    thereof. Furnish particulars as to any significant
         contingent assets or liabilities existing at the end of
        the year. Notes relating to financial statements shown
   elsewhere in this report may be indicated here by
reference.                                    

2.      SERVICE AGREEMENTS                                                      
------------------                                              

The Company has entered into agreements under which it renders  
        specialized services, at cost, to Southern Company and its subsidiaries.
    The Company's affiliates include the following: integrated Southeast
   utilities (Alabama Power Company, Georgia Power Company, Gulf Power
    Company, Mississippi Power Company, and Savannah Electric); Southern
     Electric Generating Company (an operating subsidiary owned equally by
Alabama Power Company and Georgia Power Company); Southern      
  Communications Services (Southern LINC) (provides digital wireless
     communications services to the integrated Southeast utilities and the
     public in the Southeast); Southern Company Energy Solutions (develops
    new business opportunities related to energy products and services);
 Southern Nuclear Operating Company (provides services to Southern
   Company's nuclear power plants); Southern Electric Railroad Company
   (provides railroad services to the integrated Southeast utilities);
        Southern Power Company (constructs, owns, and manages Southern Company's
     competitive assets and sells electricity at market-based rates in the
  wholesale market). Southern Telecom (provides fiber cable services
 within the southeast); Southern Holdings (an intermediate holding
    subsidiary for Southern's investments in leveraged leases, alternate
     fuel products, and an energy services business); and Southern Company
  Gas, which began operation in August 2002, is a competitive retail
       natural gas marketer serving Georgia. As of April 2, 2001, Mirant Corp.
 was spun-off from Southern Company and is no longer an affiliate.
        However, the Company continued to provide limited transition services to
Mirant at market-based rates.                                   

       The Company's services include general executive and advisory services,
   general engineering, design engineering, purchasing, accounting and
statistical, finance and treasury, tax, information resources,  
     marketing, auditing, insurance and pension, rate, budgeting, business
promotion and public relations, employee relations, systems and 
      procedures, and other services with respect to business and operations
       and, in the case of the operating utilities, power pool operations. The
agreements will be canceled to the extent and from the time that
       performance thereunder conflicts with any rule, regulation, or order of
the SEC adopted before or after the execution of the agreements.

3.      RETIREMENT BENEFITS                                                     
------------------                                              

     The Company has a defined benefit, trusteed, pension plan that covers
substantially all employees. The company also provides certain  
  non-qualified benefit plans for a selected group of management and
    highly compensated individuals. The Company provides certain medical
     care and life insurance benefits for retired employees. Substantially
      all employees may become eligible for these benefits when they retire.
  In late 2000, as well as in 2002, Southern Company adopted several
       pension and post-retirement benefit plan changes that had the effect of
        increasing benefits to both current and future retirees. The measurement
   date for plan assets and obligations is September 30 for each year.

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17B                                                                             
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------

For the Year Ended December 31, 2002
                  ------------------

SCHEDULE XIV
------------

 NOTES TO FINANCIAL STATEMENTS
 -----------------------------

INSTRUCTIONS:    The space below is provided for important notes                
   regarding the financial statements or any account
    thereof. Furnish particulars as to any significant
         contingent assets or liabilities existing at the end of
        the year. Notes relating to financial statements shown
   elsewhere in this report may be indicated here by
reference.                                    

Pension Plans                                                                   
-------------                                                                   

Changes during the year in the projected benefit obligations and in the fair    
value of plan assets were as follows:  (In Thousands)                           

                                                        [Enlarge/Download Table]


                                                                    Projected Benefit Obligations         
                                                                    -----------------------------         
                                                                  2002                       2001         
                                                                 -----                      -----         

                                                                                                          
        Balance at beginning of year                              566,037                   502,014       
        Service cost                                               18,931                    18,490       
        Interest cost                                              41,922                    39,047       
        Benefits paid                                             (22,571)                  (20,982)      
        Plan amendments                                            15,662                    31,474       
        Actuarial (gain) loss                                      25,010                    (4,006)      
                                                                  -------                  --------       
          Balance at end of year                                  644,991                   566,037       
                                                                  =======                  ========       

                                                                         Plan Assets                      
                                                                ----------------------------------        
                                                                  2002                       2001         
                                                                  ----                      -----         

        Balance at beginning of year                              666,092                   797,327       
        Actual return on plan assets                              (44,291)                 (114,221)      
        Employer contributions                                      4,300                     3,978       
        Benefits paid                                             (22,571)                  (20,982)      
        Receivables/Payables due to                                                                       
          transfers                                                 6,215                       (10)      
                                                                 --------                  --------       
            Balance at end of year                                609,745                   666,092       
                                                                 ========                  ========       

The accrued pension costs recognized in the Balance Sheets are as follows:  (In Thousands)                

                                                                  2002                       2001         
                                                                 ------                     ------        

        Funded status                                             (35,245)                  100,054       
        Unrecognized transition obligation                         (4,951)                   (6,098)      
        Unrecognized prior service cost                            55,885                    43,978       
        Unrecognized net (gain) loss                                9,065                  (122,409)      
        Fourth quarter contributions                                 (378)                    1,062       
                                                                  -------                  --------       
          Prepaid asset recognized in the                                                                 
            Balance Sheet                                          24,376                    16,587       
                                                                  =======                  ========       

In 2002 and 2001, amounts recognized in the Balance Sheets for accumulated other comprehensive income were
$15 million and $0 million, respectively.                                                                 


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                                                                                              17C                          

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                           
                                 -----------------------------                                                             

                      For the Year Ended December 31, 2002                                                                 
                                         -----------------                                                                 

                                  SCHEDULE XIV                                                                             
                                  ------------                                                                             

                          NOTES TO FINANCIAL STATEMENTS                                                                    
                          -----------------------------                                                                    

INSTRUCTIONS:    The space below is provided for important notes regarding the financial statements or any account         
                 thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of
                 the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by  
                 reference.                                                                                                

Components of the pension plan's net periodic cost were as follows:  (In Thousands)                                        

                                                                  2002                       2001                          
                                                               ----------                 ----------                       

                                                                                                                           
        Service cost                                               18,931                    18,490                        
        Interest cost                                              41,922                    39,047                        
        Expected return on plan assets                            (59,841)                  (56,920)                       
        Recognized net gain                                        (8,450)                   (9,377)                       
        Net amortization                                            2,608                     2,062                        
                                                                  -------                   -------                        
          Net pension income                                       (4,830)                   (6,698)                       
                                                                  =======                   =======                        

Post-retirement Benefits                                                                                                   

Changes during the year in the accumulated benefit obligations and in the fair value of plan assets were as follows:  (In  
Thousands)                                                                                                                 

                                                                         Projected Benefit                                 
                                                                  2002                       2001                          
                                                                 -----                      ------                         

        Balance at beginning of year                              123,808                    98,217                        
        Service cost                                                2,722                     2,850                        
        Interest cost                                               9,116                     8,791                        
        Benefits paid                                              (6,689)                   (4,109)                       
        Plan amendments                                               -                      27,175                        
        Actuarial (gain) loss                                      25,537                    (9,116)                       
                                                                 --------                  --------                        
          Balance at end of year                                  154,494                   123,808                        
                                                                 ========                  ========                        

                                                                            Plan Assets                                    
                                                                ----------------------------------                         
                                                                  2002                       2001                          
                                                                -------                   --------                         

        Balance at beginning of year                               26,642                    31,120                        
        Actual return on plan assets                               (1,838)                   (4,478)                       
        Employer contributions                                      6,677                     4,109                        
        Benefits paid                                              (6,689)                   (4,109)                       
                                                                 --------                  --------                        
          Balance at end of year                                   24,792                    26,642                        
                                                                  =======                  ========                        

The accrued post-retirement costs recognized in the Balance Sheets are as follows:  (In Thousands)                         

                                                                  2002                       2001                          
                                                               ----------                 ----------                       

        Funded status                                            (129,701)                  (97,166)                       
        Unrecognized transition obligation                          4,147                     4,552                        
        Unrecognized prior service cost                            24,435                    25,992                        
        Unrecognized net (gain) loss                               23,478                    (6,564)                       
        Fourth quarter contributions                                1,856                     1,220                        
                                                                 --------                  --------                        
        Accrued liability recognized in the                                                                                
          Balance Sheet                                           (75,785)                  (71,966)                       
                                                                 ========                  ========                        

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17D                                                                                                                       
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                          
                                 -------------------------------                                                          

                      For the Year Ended December 31, 2002                                                                
                                         -----------------                                                                

                                  SCHEDULE XIV                                                                            
                                  ------------                                                                            

                          NOTES TO FINANCIAL STATEMENTS                                                                   
                          -----------------------------                                                                   

INSTRUCTIONS:   The space below is provided for important notes regarding the financial statements or any account         
                thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of
                the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by  
                reference.                                                                                                

Components of the plan's net periodic cost were as follows:  (In Thousands)                                               

                                                                  2002                       2001                         
                                                               ----------                 ----------                      

                                                                                                                          
        Service cost                                               2,722                      2,850                       
        Interest cost                                              9,116                      8,791                       
        Expected return on plan assets                            (2,517)                    (2,386)                      
        Net amortization                                           1,811                      1,572                       
                                                                 -------                   --------                       
          Net post-retirement cost                                11,132                     10,827                       
                                                                 =======                   ========                       

The weighted average rates assumed in the actuarial calculations for both the                                             
pension plans and post-retirement benefits were:                                                                          

                                                                        2002             2001                             
                                                                        ----             ----                             

        Discount                                                        6.50%            7.50%                            
        Annual salary increase                                          4.00%            5.00%                            
        Long-term return on plan assets                                 8.50%            8.50%                            


An additional assumption used in measuring the accumulated      
      post-retirement benefit obligation was a weighted average medical care
     cost trend rate of 8.75 percent for 2002 decreasing gradually to 5.25
        percent through the year 2010 and remaining at that level thereafter. An
       annual increase or decrease in the assumed medical care cost trend rate
    of 1 percent would affect the accumulated benefit obligation and the
     service and interest cost components at December 31, 2002 as follows:
(In Thousands)                                                  

                                    1 Percent        1 Percent
                                     Increase         Decrease
                                     ---------        ----------

Benefit obligation                      11,705           10,255 
Service and interest costs                 844              715 

Employee Savings Plan                                                           
---------------------                                                           

     The Company also sponsors a 401(k) defined contribution plan covering
       substantially all employees. The Company provides a 75 percent matching
    contribution up to 6 percent of an employee's base salary. The total
     matching contributions made to the plan for the years 2002, 2001, and
2000 were $10 million, $9 million, and $8 million, respectively.

Work Force Reduction Programs                                                   
-----------------------------                                                   

  The Company has incurred additional costs for work force reduction
  programs. The costs related to these programs were $11 million, $5
      million, and $20 million for 2002, 2001, and 2000, respectively. These
costs were charged to expense.                                  

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                                                                 17E                                                        

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                            
        `                        -------------------------------                                                            

                      For the Year Ended December 31, 2002                                                                  
                                         -----------------                                                                  

                                  SCHEDULE XIV                                                                              
                                  ------------                                                                              

                          NOTES TO FINANCIAL STATEMENTS                                                                     
                          -----------------------------                                                                     

INSTRUCTIONS:     The space below is provided for important notes regarding the financial statements or any account         
                  thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of
                  the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by  
                  reference.                                                                                                

4.      OPERATING LEASES                                                                                                    
        ----------------                                                                                                    

        The Company has operating lease agreements  with various terms and expiration dates.  Rental expense under all      
        operating leases was approximately  $62,009,952, $69,697,000, and  $74,975,000 in 2002, 2001, and 2000,             
        respectively.  Future minimum lease payments under non-cancelable operating  leases at December 31, 2002 were as    
        follows: (In Thousands)                                                                                             

            2003                        22,227                                                                              
            2004                        15,171                                                                              
            2005                         9,733                                                                              
            2006                         6,040                                                                              
            2007                         2,453                                                                              
            Thereafter                   5,969                                                                              
                                     ---------                                                                              
              Total                     61,593                                                                              

5.      LONG-TERM DEBT AND NOTES PAYABLE - OTHER                                                                            
        ---------------------------------------                                                                             

        Details of long-term debt and notes payable - other at December 31 are as follows:  (In Thousands)                  

                                                                                 2002             2001                      
                                                                                ------           ------                     
           Notes Payable:                                                                                                   
                                                                                                                            
               7.625% Due 2009                                                  40,000            40,000                    
               7.25% Due 2005                                                    4,543             5,851                    
               9.75% Due 2002                                                      -               6,846                    
               Less Current Maturities                                          (1,407)           (8,154)                   
                                                                              --------           -------                    
               Long-Term Notes Payable                                          43,136            44,543                    
                                                                              --------           -------                    

        Capitalized Lease Obligations:                                                                                      
           Total Capitalized Leases                                             15,882               -                      
           Less Current Maturities                                              (6,873)              -                      
                                                                              --------           -------                    
           Long-Term Capitalized Leases                                          9,009               -                      
                                                                              --------           -------                    

               Total Long-Term Debt                                             52,145            44,543                    
                                                                              ========           =======                    


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17F                                                                             
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
               -------------------------------

For the Year Ended December 31, 2002
                  ----------------

SCHEDULE XIV
------------

 NOTES TO FINANCIAL STATEMENTS
 -----------------------------

INSTRUCTIONS:            The space below is provided for important notes        
                   regarding the financial statements or any account
                    thereof. Furnish particulars as to any significant
                         contingent assets or liabilities existing at the end of
                        the year. Notes relating to financial statements shown
                   elsewhere in this report may be indicated here by
reference.                    

       In December 1999, Southern Company Services entered into a lease buyout
  agreement with Equity Office Properties on long-term capital lease
       obligations of Perimeter Center East. This lease payment obligation has
       been reflected as a long-term Notes Payable in the amount of $8,200,000
amortized at 7.25% for six years, ending December 1, 2005.      

        On December 15, 1999, Southern Company Services, Inc. issued $40,000,000
    of Series A 7.625% Senior Notes to Merrill Lynch & Co. with proceeds
       being used to repay short-term debt to Southern Company and for various
      other corporate purposes. The entire principal will be due and payable
       on December 15, 2009. The Southern Company has guaranteed the principal
and interest of the above.                                      

   Maturities over the next five years of the Company's long-term debt
outstanding at December 31, 2002 are as follows:  (In Thousands)

2003                         8,280                
2004                         6,147                
2005                         4,640                
2006                         1,357                
2007                           -                  
Thereafter                  40,000                
           -------
Total                     60,424              

6.      PURCHASE COMMITMENTS                                                    
--------------------                                            

   The Company has various purchase commitments. At December 31, 2002,
       total capital expenditures are budgeted to be approximately $22 million
in 2003.                                                        

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                                                                           18                                           

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                        
                                 -------------------------------                                                        

                      For the Year Ended December 31, 2002                                                              
                                         -----------------                                                              
                             (Thousands of Dollars)                                                                     

                                   SCHEDULE XV                                                                          
                                   -----------                                                                          

                               STATEMENT OF INCOME                                                                      
                               -------------------                                                                      

ACCOUNT             DESCRIPTION                                              CURRENT YEAR         PRIOR YEAR            
-------             -----------                                              ------------         ----------            

             INCOME                                                                                                     
             ------                                                                                                     

                                                                                                                        
   457          Services rendered to associate companies                     853,111           757,380                  
   458          Services rendered to non-associate                                                                      
                    companies                                                 30,319            31,851                  
   421          Miscellaneous income or loss                                  (3,808)            5,143                  
                                                                            --------          --------                  

                       Total Income                                          879,622           794,374                  
                                                                             -------           -------                  

             EXPENSE                                                                                                    
             -------                                                                                                    

   920          Salaries and wages                                           397,714           341,997                  
   921          Office supplies and expenses                                  92,154            86,081                  
   922          Administrative expense transferred-credit                       -                 -                     
   923          Outside services employed                                    162,797           165,804                  
   924          Property insurance                                              (787)          (14,960)                 
   925          Injuries and damages                                          12,838             8,282                  
   926          Employee pensions and benefits                                31,686            35,250                  
   928          Regulatory commission expense                                    104               100                  
   930.1        General advertising expenses                                  15,971            10,206                  
   930.2        Miscellaneous general expenses                                12,639             5,945                  
   931          Rents                                                         62,010            69,697                  
   932          Maintenance of structures and equipment                       34,624            31,397                  
   403          Depreciation and amortization expense                         23,043            22,071                  
   408          Taxes other than income taxes                                 25,450            22,035                  
   409          Income taxes                                                  (1,274)           (1,296)                 
   410          Provision for deferred income taxes                             -                 -                     
   411          Provision for deferred income taxes - credit                    -                 -                     
   411.5        Investment tax credit                                           -                 -                     
   426.1        Donations                                                      4,413             3,933                  
   426.5        Other deductions                                                 -                 -                    
   427          Interest on long-term debt                                     4,068             4,621                  
   430          Interest on debt to associate companies                           89                 1                  
   431          Other interest expense                                         2,083             3,210                  
                                                                             -------         ---------                  

                       Total Expense                                         879,622           794,374                  
                                                                             -------           -------                  

                       Net Income                                               -                 -                     
                                                                             =======           =======                  

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19                                                                                                                      
                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                  
                                                        -----------------------------                                   

                                            For the Year Ended December 31, 2002                                        
                                                               -----------------                                        
                                                   (Thousands of Dollars)                                               

                                                     ANALYSIS OF BILLING                                                
                                                     -------------------                                                

                                                      ASSOCIATE COMPANIES                                               
                                                         ACCOUNT 457                                                    

                                                                                                          EFFECT OF     
                                          DIRECT          INDIRECT       COMPENSAT'N         TOTAL        MARKET        
                                          COSTS           COSTS          FOR USE             AMOUNT       RATE BILLING  
NAME OF ASSOCIATE COMPANY                 CHARGED         CHARGED        OF CAPITAL          BILLED       (SEE NOTE)    
-------------------------                 -------         -------        --------------      ---------    ------------- 
                                          457-1           457-2          457-3                                          

The Southern Company                          45,068            8,173            354             53,595           -     

Alabama Power Company                        170,924           45,763          1,590            218,277            (8)  

Georgia Power Company                        247,800           68,850          2,304            318,954           (12)  

Gulf Power Company                            39,216            9,743            337             49,296            (2)  

Mississippi Power Company                     34,983            8,499            304             43,786            (2)  

Savannah Electric & Power Co.                 12,653            2,892            104             15,649            (1)  

Southern Communication                                                                                                  
  Services, Inc.                              17,195            1,373             43             18,611           -     

Southern Company Energy                                                                                                 
  Solutions, LLC                               1,855              937             31              2,823           -     

Southern Company Gas, LLC                      6,586              764             37              7,387           -     

Southern Company Holdings, Inc.                1,476              407             21              1,904           -     

Southern Electric Generating Co.               4,108            1,164             40              5,312            (1)  

Southern Electric Railroad Co.                   269               67              1                337           -     

Southern Management                                                                                                     
  Development, Inc.                            1,929              557             23              2,509           -     

Southern Nuclear Operating Co.                59,688           21,876            683             82,247           -     

Southern Power Company                        24,292            5,055            197             29,544           -     

Southern Telecom, Inc.                         2,267              595             18              2,880           -     

Non-Associate Company:                                                                                                  
  Mirant                                         -                -              -                  -              26   
                                             ------           -------         ------            -------     ---------   

          TOTAL                              670,309          176,715          6,087            853,111           -     
                                             =======          =======          =====            =======     =========   

Note:    Southern Company Services, Inc. (SCS) is providing this information in accordance with its 60-day letter dated 
         July 11, 2000. The amounts in this column are already included in the Total Amount Billed column and represent 
         the amounts billed to Mirant that are above SCS' actual cost to render the services. The costs were charged to 
         Mirant and were credited to the operating public utility subsidiaries based on the approved allocation basis of
        "Fossil/Hydro Capacity". The "spin-off" of Mirant as an associate company of The Southern Company was effective 
         April 2, 2001.                                                                                                 


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20                                                                                                             
                                           ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                    
                                                            ------------------------------                     

                                                 For the Year Ended December 31, 2002                          
                                                                    -----------------                          
                                                         (Thousands of Dollars)                                

                                                          ANALYSIS OF BILLING                                  
                                                          -------------------                                  
                                                        NONASSOCIATE COMPANIES                                 
                                                              ACCOUNT 458                                      

                                DIRECT    INDIRECT     COMPENSATION                        EXCESS     TOTAL    
                                COSTS      COSTS         FOR USE            TOTAL            OR       AMOUNT   
NAME OF NONASSOCIATE COMPANY   CHARGED    CHARGED       OF CAPITAL          COST         DEFICIENCY   BILLED   
----------------------------   -------    -------      --------------       -----        ----------  --------  
                                458-1      458-2          458-3                            458-4               

                                                                                                               
Department of Energy (DOE)       19,527      2,366           110           22,003            -          22,003 
DOE/Southern Research                                                                                          
  Institute                         (13)        (7)          -                (20)           -             (20)
Electric Power                                                                                                 
 Research Institute                 788        265             5            1,058            -           1,058 
Vogt-NEM                             62         18             1               81            -              81 
APC Credit Union                     30        -             -                 30            -              30 
Gulf Power Credit Union              11        -             -                 11            -              11 
GE Power Systems                     13        -             -                 13            -              13 
AT & T                               32        -             -                 32            -              32 
Southern Interexchange               18        -             -                 18            -              18 
Georgia Charitable                                                                                             
 Foundation                          13        -             -                 13            -              13 
Southern System Master                                                                                         
  Retirement Trust                  925        -              17              942            -             942 
POWERCO                              14        -             -                 14            -              14 
Economic Development                                                                                           
  Partnership                        16        -             -                 16            -              16 
Drummond Corporation                 46        -             -                 46            -              46 
FP&L; JEA; Tallahassee,                                                                                        
  FPC (Unit Power Sales)             45         24             1               70            -              70 
FP&L; JEA, Tallahassee,                                                                                        
   FPC(OPS SCH. Fees)             1,808        -             -              1,808            -           1,808 
Oglethorpe Power                                                                                               
  Corporation (OPS SCH. Fees)     4,199        -             -              4,199            -           4,199 
Southeastern Electric                                                                                          
  Reliability Council                17        -             -                 17            -              17 
Alabama Electric Cooperative         19          5           -                 24            -              24 
Crisp County Power Commission         4          1           -                  5            -               5 
Duke Energy Services                 15        -             -                 15            -              15 
Municipal Electric Authority         21          7           -                 28            -              28 
Oglethorpe Power Corporation         59         15             1               75            -              75 
South Mississippi                                                                                              
  Electric Power                     15          4           -                 19            -              19 
Southeastern Electric                                                                                          
  Power Administration                7          2           -                  9            -               9 
Mirant                              144         50             2              196             26           222 
Transmission -                                                                                                 
  Interconnection Studies          (147)       140             7              -              -             -   
Transmission - System                                                                                          
  Impact Studies                   (208)       199             9              -              -            -    
Non-Associate Labor and                                                                                        
  Related Ovhd Accrual             (456)       -             -               (456)           -            (456)
Other (16 items less                                                                                           
  than $5,000)                       27        -             -                 27            -              27 
                                -------    -------        ------         --------           ---        ------- 

     TOTAL                       27,051      3,089           153           30,293             26        30,319 
                                =======     ======          ====          =======            ===       ======= 

(Continued on Page 20A)                                                                                        


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20A                                                                             
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------
(Thousands of Dollars)
 (Continued)

 ANALYSIS OF BILLING
------------------
NONASSOCIATE COMPANIES
 ACCOUNT 458

INSTRUCTION:  Provide a brief description of the services rendered to each      
non-associate company:                              

Department of Energy (DOE) - Contract services concerning clean coal        
technology, Power System Development Facility/hot gas cleanup project.      
Switchgrass Demonstration Project.                                          

Electric Power Research Institute - NOX reduction and performance; Clyde    
Bergermann smartcannon demonstration; demonstration of real time heat rate &
emissions; explosive properties of PRB coal and biomass; RTHR demo; arsenic 
mobility; green screen; Biloxi MGP ROAM modeling; insitu chemical fixation; 
WET ESP demo; enhanced fluid recovery at MGP site; groundwater contamination
at MG sediment study; PCB soils treatment; insitu solidification; review for
arsenic at substations.                                                     

  Vogt-NEM - Developing test procedures and conducting performance retest on the
Barry 7 HRSG's.                                                             

APC Credit Union, Gulf Credit Union, GE Power Systems -                     
Telecommunication services.                                                 

AT&T, Southern Interexchange - Telecommunication services related to fiber  
optics.                                                                     

Georgia Charitable Foundation - Financial Services                          

Chase Manhattan Bank (Southern System Master Retirement Trust) - Management 
and administration of Pension Fund for the Southern Company.                

POWERCO - Telecommunications services.                                      

Economic Development Partnership, Drummond Corporation - Helicopter Usage.  

FP&L, FPC, JEA, and City of Tallahassee - Unit Power Sales (UPS) true-up and
scheduling agreement.                                                       

Oglethorpe Power Corporation - Transmission Planning Operations (TPO)       
scheduling fees.                                                            

 Southeastern Electric Reliability Council - Occupancy, telecommunications and
other related services.                                                     

Ala.  Electric Coop,  MEAG,  OPC, S. Miss Elec Pwr.,  SEPA - Southeastern   
Electric  Reliability  Council (SERC) security coordinator.                 

Mirant - Various engineering and technical services.                        

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                                                                                                                               21  

                                               ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                    
                                                                -----------------------------                                      

                                                     For the Year Ended December 31, 2002                                          
                                                                        ----------------                                           
                                                               (Thousands of Dollars)                                              

                                                                 SCHEDULE XVI                                                      
                                                                 ------------                                                      
                                                        ANALYSIS OF CHARGES FOR SERVICE                                            
                                                        ------------------------------                                             
                                                       ASSOCIATE AND NONASSOCIATE COMPANIES                                        

INSTRUCTION:   Total cost of service will equal for associate and non-associate companies the total amount billed under their      
               separate analysis  of billing schedules.                                                                            

                                      ASSOCIATE COMPANY CHARGES       NONASSOCIATE COMPANY CHARGES     TOTAL CHARGES FOR SERVICE   
                                      -------------------------       -----------------------------    --------------------------  
                                      DIRECT     INDIRECT             DIRECT  INDIRECT                 DIRECT  INDIRECT            
DESCRIPTION OF ITEMS                   COST        COST    TOTAL       COST     COST       TOTAL       COST     COST       TOTAL   
--------------------                  -----      -------   -----     ------   -----        -----      ------   ------      -----   

                                                                                                                                   

920   SALARIES AND WAGES              372,999     16,636  389,635      7,916     163       8,079     380,915    16,799   397,714   
921   OFFICE SUPPLIES & EXPENSES       76,676     10,122   86,798      5,136     220       5,356      81,812    10,342    92,154   
922   ADMINISTRATIVE EXP.                                                                                                          
       TRANSFERRED-CREDIT                 -          -        -          -       -           -           -         -         -     
923   OUTSIDE SERVICES EMPLOYED       146,736      4,901  151,637     11,020     140      11,160     157,756     5,041   162,797   
924   PROPERTY INSURANCE               (1,379)       347   (1,032)       236       9         245      (1,143)      356      (787)  
925   INJURIES AND DAMAGES             12,719        113   12,832          3       3           6      12,722       116    12,838   
926   EMPLOYEE PENSIONS                                                                                                            
       & BENEFITS                       3,573     27,487   31,060        -       626         626       3,573    28,113    31,686   
928   REGULATORY COMMISSION                                                                                                        
       EXPENSE                            104        -        104        -       -           -           104       -         104   
930.1 GENERAL ADVERTISING                                                                                                          
       EXPENSES                        15,971        -     15,971        -       -           -        15,971       -      15,971   
930.2 MISCELLANEOUS GENERAL                                                                                                        
       EXPENSES                       (70,124)    78,826    8,702      2,616   1,321       3,937     (67,508)   80,147    12,639   
931   RENTS                            47,599     14,322   61,921         16      73          89      47,615    14,395    62,010   
932   MAINTENANCE OF STRUCTURES                                                                                                    
       AND EQUIPMENT                   31,805      2,690   34,495         88      41         129      31,893     2,731    34,624   
403   DEPRECIATION & AMORTIZATION                                                                                                  
       EXPENSE                         20,376      2,604   22,980         45      18          63      20,421     2,622    23,043   
408   TAXES OTHER THAN INCOME                                                                                                      
       TAXES                            6,314     18,660   24,974          1     475         476       6,315    19,135    25,450   
409   INCOME TAXES                     (1,278)         4   (1,274)       -       -           -        (1,278)        4    (1,274)  
410   PROVISION FOR DEFERRED                                                                                                       
       INCOME TAXES                       -          -        -          -       -           -           -         -         -     
411   PROVISION FOR DEFERRED                                                                                                       
       INCOME TAXES CREDIT                -          -        -          -       -           -           -         -         -     
411.5 INVESTMENT TAX CREDIT               -          -        -          -       -           -           -         -         -     
426.1 DONATIONS                         4,410           3   4,413        -       -           -         4,410        3     4,413    
                                      -------    -------- -------     ------  -----       ------     -------   ------    ------    
        SUBTOTAL EXPENSES             666,501    176,715  843,216     27,077   3,089      30,166     693,578   179,804   873,382   

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21A                                                                                                                                

                                           ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                            -------------------------------                                        

                                                     For the Year Ended December 31, 2002                                          
                                                                          ---------------                                          
                                                            (Thousands of Dollars)                                                 

                                                                 SCHEDULE XVI                                                      
                                                                 -------------                                                     
                                                        ANALYSIS OF CHARGES FOR SERVICE                                            
                                                        -------------------------------                                            
                                                       ASSOCIATE AND NONASSOCIATE COMPANIES                                        

                                      ASSOCIATE COMPANY CHARGES       NONASSOCIATE COMPANY CHARGES     TOTAL CHARGES FOR SERVICE   
                                      -------------------------       -----------------------------    --------------------------  
                                      DIRECT     INDIRECT             DIRECT  INDIRECT                 DIRECT  INDIRECT            
DESCRIPTION OF ITEMS                   COST        COST    TOTAL       COST     COST       TOTAL       COST     COST       TOTAL   
--------------------                  -----      -------   -----     ------   -----       -----       ------   ------      -----   

427   INTEREST ON LONG-TERM DEBT          -          -     3,968        -         -        100         -         -        4,068    
430   INTEREST ON DEBT TO                                                                                                          
       ASSOCIATE COMPANIES                -          -        87        -         -          2         -         -           89    
431   OTHER INTEREST EXPENSE              -          -     2,032        -         -         51         -         -        2,083    
                                      -------    ------- -------     ------    ------   ------     -------   -------    -------    
        TOTAL EXPENSES                666,501    176,715 849,303     27,077     3,089   30,319     693,578   179,804    879,622    
421   MISCELLANEOUS GAIN                3,808          -   3,808          -      -         -         3,808       -        3,808    
                                     --------    ------- -------     ------    ------  -------     -------   -------   --------    
        TOTAL COST OF SERVICES        670,309    176,715 853,111     27,077     3,089   30,319     697,386   179,804    883,430    
                                     ========    ======= =======     ======    ======  =======     =======  ========   ========    

( ) Denotes Red Figure.                                                                                                            

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22                                                                                                                                 
                                               ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                    

                                                     For the Year Ended December 31, 2002                                          
                                                                (Thousands of Dollars)                                             

                                                                 SCHEDULE XVII                                                     
                                                      SCHEDULE OF EXPENSE DISTRIBUTION BY                                          
                                                        DEPARTMENT OR SERVICE FUNCTION                                             

INSTRUCTION:   Indicate each department or service function.  (See Instruction 01-3 General Structure                              
               of Accounting System:  Uniform System Account)                                                                      
               ----------------------------------------------                                                                      

                                                                     DEPARTMENT OR SERVICE FUNCTION                                

                                                  Administration                                                          Finance  
                                           Total      and     Corporate  Customer                            External       and    
  DESCRIPTION OF ITEMS                     Amount  General     Counsel    Service   Engineering   Executive   Affairs   Accounting 
  --------------------                     ------  -------    ---------  --------   -----------   ---------   --------  -----------

920    SALARIES AND WAGES                 397,714     25,220     9,029       7,262      85,597       6,577      6,652     21,713   
921    OFFICE SUPPLIES AND EXPENSES        92,154        287     1,039         624      12,091         243      2,102      3,571   
923    OUTSIDE SERVICES EMPLOYED          162,797      5,265    23,121       6,129      35,861       1,407      6,628      5,129   
924    PROPERTY INSURANCE                    (787)       794       -           -           -           -          -       (1,818)  
925    INJURIES AND DAMAGES                12,838        158       -           -           -           -          -       12,676   
926    EMPLOYEE PENSIONS & BENEFITS        31,686     31,372         8           1         140           1          2         20   
928    REGULATORY COMMISSION EXPENSE          104        104       -           -           -           -          -          -     
930.1  GENERAL ADVERTISING EXPENSES        15,971        -         -           -           -           300     15,310         45   
930.2  MISCELLANEOUS GENERAL EXPENSES      12,639     (6,132)    2,213         151       2,097         658      1,591        612   
931    RENTS                               62,010      2,285        49          50       2,583           3        134         34   
932    MAINTENANCE OF STRUCTURES & EQUIP   34,624       (764)       20          90       1,172           4         41        259   
403    DEPRECIATION & AMORTIZATION,                                                                                                
         EXPENSE                           23,043         13        55         434         418          16         59         45   
408    TAXES OTHER THAN INCOME TAXES       25,450     24,349       -           -           -           -          -          -     
409    INCOME TAXES                        (1,274)    (1,274)      -           -           -           -          -          -     
426.1  DONATIONS                            4,413        350        41           3           1       1,845      1,808          8   
427    INTEREST ON LONG-TERM DEBT           4,068      3,240       -           -           -           -          -          -     
430    INTEREST ON DEBT TO ASSOCIATE CO.       89         89       -           -           -           -          -          -     
431    OTHER INTEREST EXPENSE               2,083      1,882       -           -           -           -          -          -     
                                          -------    -------   -------      ------     -------      -----      ------     -------  
         TOTAL EXPENSES                   879,622     87,238    35,575      14,744     139,960      11,054     34,327     42,294   
421    MISCELLANEOUS LOSS (GAIN)            3,808        322       131          54       1,257          41        127        156   
                                          -------    -------   -------     -------     -------      ------     ------     -------  

       TOTAL COSTS                        883,430     87,560    35,706      14,798     141,217      11,095     34,454     42,450   
                                          =======    =======   =======     =======    ========     =======    =======    =======   

(  ) Denotes Red Figure.                                                                                                           


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22A                                                                                                                              
                                     ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                            
                                                      ------------------------------                                             

                                           For the Year Ended December 31, 2002                                                  
                                                              ------------------                                                 
                                                  (Thousands of Dollars)                                                         

                                                       SCHEDULE XVII                                                             
                                                       -------------                                                             
                                            SCHEDULE OF EXPENSE DISTRIBUTION BY                                                  
                                            -----------------------------------                                                  
                                              DEPARTMENT OR SERVICE FUNCTION                                                     
                                               ------------------------------                                                    

                                               DEPARTMENT OR SERVICE FUNCTION                                                    
                                               -------------------------------                                                   

                                                                    Procurement   Research &                            Southern 
ACCOUNT  Generation  Human    Information   Internal                   and        Environmental   System  Transmission   Company 
NUMBER   Services   Resources  Resources      Auditing    Marketing    Materials       Affairs      Air      Planning      Gas   
------- ----------- ---------- ---------     --------    ---------- -------------   ------------   -----   ------------   -------

                                                                                                                                 
   920    68,477      24,509      84,522        6,223     8,789      5,824            12,341         4,781   18,951       1,247  
   921    10,730       2,974      41,823          523     1,125      2,897             8,335         1,099    2,208         483  
   923    13,377       8,773      26,585          274     5,081      3,613            16,743            59    2,195       2,557  
   924       -           -           -            -         -          -                 237           -        -           -    
   925       -           -           -            -         -          -                   4           -        -           -    
   926        69          32          17            3         4          3                 3            10        1         -    
   928       -           -           -            -         -          -                 -             -        -           -    
   930.1       3           1         -            -         239        -                 -             -        -            73  
   930.2   5,027       3,108       4,996          171       662      1,602              (416)          543   (4,325)         81  
   931       446         457      34,425          123        25     21,123                26           213       34         -    
   932     1,503          64      22,104            6       168      3,756               123         4,841    1,118         119  
   403     1,389         606       7,614            9     2,163      1,672               518         1,845    6,187         -    
   408        17         -           -            -         -          -                 -             -        -         1,084  
   409       -           -           -            -         -          -                 -             -        -           -    
   426.1     294          52         -            -           7          2                2            -        -           -    
   427       -           -           828          -         -          -                 -             -        -           -    
   430       -           -           -            -         -          -                 -             -        -           -    
   431       -           -           201          -         -          -                 -             -        -           -    
        -------     --------    --------      ------    -------   --------          --------      -------   ------      ------   
Total                                                                                                                            
Expenses101,332      40,576     223,115        7,332    18,263     40,492            37,916        13,391   26,369       5,644   
   421      435         150         368           27        67        149               341            49      113          21   
        -------     -------     ---------      -----    ------     ------          --------        ------   ------      ------   

TOTAL                                                                                                                            
COSTS   101,767      40,726     223,483        7,359    18,330     40,641            38,257        13,440   26,482       5,665   
        =======     =======    ========       ======    ======     ======            ======        ======   ======       ======  

(  ) Denotes Red Figure.                                                                                                         


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                                                                                                 23
                            ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                       
                                             ------------------------------                        

                            For the Year Ended December 31, 2002                                   
                                               ----------------                                    
                                      (Thousands of Dollars)                                       

                            DEPARTMENTAL ANALYSIS OF SALARIES                                      
                            ---------------------------------                                      
                                     ACCOUNT 920                                                   

                              DEPARTMENTAL SALARY EXPENSE                                          
                              ----------------------------                                         

NAME OF DEPARTMENT                       INCLUDED IN AMOUNTS BILLED TO               PERSONNEL     
------------------                       ------------------------------               ---------    
Indicate each department     TOTAL       PARENT         OTHER              NON-        END OF      
or service function          AMOUNT      COMPANY      ASSOCIATES        ASSOCIATES      YEAR       
                             ------      -------      ----------        ----------    ---------    

                                                                                                   
Administration and General      25,220         1,516         23,518             186        -       

Corporate Counsel                9,029         1,009          7,961              59         52     

Customer Service                 7,262             2          7,260             -           90     

Engineering                     85,597           694         84,247             656        578     

Executive                        6,577           920          5,657             -            6     

External Affairs                 6,652         2,714          3,938             -           43     

Finance & Accounting            21,713         4,908         16,074             731        178     

Generation Services             68,477         5,427         62,946             104        601     

Human Resources                 24,509            29         24,340             140        237     

Information Resources           84,522           351         84,036             135        963     

Internal Auditing                6,223           380          5,843             -           62     

Marketing                        8,789           155          8,634             -           73     

Procurement & Materials          5,824            27          5,691             106         53     

Research & Environmental                                                                           
  Affairs                       12,341            28          7,275           5,038        109     

Southern Company Gas             1,247           -            1,247             -           31     

System Air                       4,781           282          4,499             -           53     

Transmission Planning           18,951           -           18,027             924        175     
                            ----------  ------------     ----------        --------   --------     

      TOTAL                    397,714        18,442        371,193           8,079      3,304     
                              ========       =======       ========          ======     ======     


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24                                                                                                                      
                                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                 ------------------------------                                         

                                For the Year Ended December 31, 2002                                                    
                                                   -----------------                                                    
                                         (Thousands of Dollars)                                                         

                                        OUTSIDE SERVICES EMPLOYED                                                       
                                        -------------------------                                                       

                                                ACCOUNT 923                                                             

INSTRUCTIONS:    Provide a breakdown by sub-account of outside services employed. If the aggregate amounts paid to      
                 any one payee and included within one sub-account is less than $100,000, only the aggregate number and 
                 amount of all such payments included within the sub-account need be shown. Provide a subtotal for      
                 each type of service.                                                                                  

                                                                               RELATIONSHIP                             
                                                                                "A"=ASSOCIATE                           
                                          DESCRIPTION OF                        "NA"= NON                               
FROM WHOM PURCHASED                       LARGEST INVOICE                        ASSOCIATE                 AMOUNT       
-------------------                       ---------------                       -------------              ------       

Legal Services                                                                                                          
--------------                                                                                                          

                                                                                                                        
Baker & Hostetler, LLP                    Legal Services                                     NA            1,703        
Balch & Bingham, LLP                      Legal Services                                     NA            7,340        
Bouhan, Williams & Levy, LLP              Legal Services                                     NA              350        
Dewey Ballantine                          Legal Services                                     NA              331        
Dorsey & Whitney                          Legal Services                                     NA              727        
Edison Electric Institute                 Legal Services                                     NA              527        
Hopping, Green & Sams                     Legal Services                                     NA              115        
Hunton & Williams                         Legal Services                                     NA            3,059        
King & Spalding                           Legal Services                                     NA              379        
McNatt & Greene                           Legal Services                                     NA              213        
Troutman, Sanders, LLP                    Legal Services                                     NA            8,241        
Vinson & Elkins                           Legal Services                                     NA              408        
Wilmer, Cutler & Pickering                Legal Services                                     NA              278        

Fifty-Three Other Items Less                                                                                            
    than $100,000                                                                            NA              487        
                                                                                                         -------        
                                              Subtotal - Legal Services                                   24,158        
                                                                                                          ------        

Auditing Service                                                                                                        
Deloitte & Touche, LLP                    Audit Services                                     NA            1,966        

Two Other Items Less                                                                                                    
    than $100,000                                                                            NA              126        
                                                                                                         -------        

                                              Subtotal - Auditing Services                                 2,092        
                                                                                                          ------        

(Continued on Page 24A)                                                                                                 

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                                                                                                               24A      
                                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                 ------------------------------                                         

                                For the Year Ended December 31, 2002                                                    
                                                   -----------------                                                    
                                         (Thousands of Dollars)                                                         

                                        OUTSIDE SERVICES EMPLOYED                                                       
                                        -------------------------                                                       

                                                ACCOUNT 923                                                             

INSTRUCTIONS:   Provide a breakdown by sub-account of outside services employed. If the aggregate amounts paid to       
                any one payee and included within one sub-account is less than $100,000, only the aggregate number and  
                amount of all such payments included within the sub-account need be shown. Provide a subtotal for       
                each type of service.                                                                                   

                                                                                RELATIONSHIP                            
                                                                                "A"=ASSOCIATE                           
                                          DESCRIPTION OF                        "NA"= NON                               
FROM WHOM PURCHASED                       LARGEST INVOICE                        ASSOCIATE                 AMOUNT       
-------------------                       ---------------                       -------------              ------       

Engineering Services                                                                                                    
--------------------                                                                                                    
ADECCO Services                           Temporary Services                                   NA            543        
Airco Industrial Contractors, Inc.        Contract Engineering Serv.                           NA            142        
Alstom Power, Inc.                        Contract Engineering Serv.                           NA            247        
Amec E&C Svcs., Inc.                      Contract Engineering Serv.                           NA            850        
Applied Control Systems, Inc.             Contract Engineering Serv.                           NA            210        
BE&K Engineering Co.                      Contract Engineering Serv.                           NA         19,060        
Bechtel Power Corp.                       Contract Engineers-Constructors                      NA          4,206        
Caddell Construction Co., Inc.            Construction Services                                NA            135        
CB & A Project Management Serv.           Project Management                                   NA            621        
Energy Design & Control Serv., Inc.       Contract Engineering Serv.                           NA            231        
Gecoh Exploration, Inc.                   Contract Engineering Serv.                           NA            253        
Global Supply Group, Inc.                 Contract Engineers-Constructors                      NA            188        
NWL                                       Contract Engineering Serv                            NA            190        
Parsons Energy & Chemicals                                                                                              
    Group, Inc.                           Inspection Services                                  NA            472        
Sandwell Engineering, Inc.                Contract Engineering Serv.                           NA            260        
Siemens Westinghouse                      Power Systems Development                            NA            252        
Southern Research Institute               Power Systems Development-DOE                        NA          1,344        
Space Science Services, Inc.              Inspection Services                                  NA            108        
Superheat Services, Inc.                  Contract Engineering Serv.                           NA            378        
The E Group                               Project Management                                   NA            180        
The M.W. Kellogg Co.                      Contract Engineering Serv.                           NA            332        
Think Resources, Inc.                     Contract Engineering Serv.                           NA          1,063        
TMP Worldwide, Inc.                       Contract Engineering Serv.                           NA          1,208        
United Dynamics Corp.                     Inspection Services                                  NA            229        
Universal Resources, Inc.                 Contract Engineering Serv.                           NA          1,958        
Vital Inspection Professionals            Inspection Services                                  NA            532        

One Hundred, Twenty-Nine Other Items                                                                                    
    Less than $100,000                                                                         NA          1,534        
                                                                                                         -------        

                                          Subtotal - Engineering Services                                 36,726        
                                                                                                         -------        

(Continued on Page 24B)                                                                                                 

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24B                                                                                                                     
                                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                ------------------------------                                          

                                        For the Year Ended December 31, 2002                                            
                                                          -----------------                                             
                                                (Thousands of Dollars)                                                  

                                        OUTSIDE SERVICES EMPLOYED                                                       
                                        -----------------------                                                         
                                                ACCOUNT 923                                                             

INSTRUCTIONS:     Provide a breakdown by sub-account of outside services employed. If the aggregate amounts paid to     
                  any one payee and included within one sub-account is less than $100,000, only the aggregate number and
                  amount of all such payments included within the  sub-account need be shown. Provide a subtotal for    
                  each type of service.                                                                                 

                                                                                RELATIONSHIP                            
                                                                                "A"=ASSOCIATE                           
                                          DESCRIPTION OF                        "NA"= NON                               
FROM WHOM PURCHASED                       LARGEST INVOICE                        ASSOCIATE                 AMOUNT       
-------------------                       ---------------                       ---------------            ------       

Other Services                                                                                                          

A.W. Hutchinson & Assoc., LLC             Construction Services                                NA            143        
ABB Power T&D Co., Inc.                   Consulting Services                                  NA            157        
Accenture                                 Consulting Services                                  NA          4,923        
Acxiom Corporation                        Information Technology Services                      NA            121        
ADECCO Technical, Inc.                    Programming Services                                 NA            406        
ADECCO USA, Inc.                          Temporary Services                                   NA          1,248        
ADP Investor Communication Serv.          Investor Relations                                   NA            413        
Alabama Power Company                     Project Support                                      A          11,371        
Alliance Technical Serv., Inc.            Programming Services                                 NA            210        
Analysis Group Economics                  Consulting Services                                  NA            158        
Ann Randazzo                              Consulting Services                                  NA            127        
AON Consulting, Inc.                      Personnel Services                                   NA            249        
Artemis International Solutions           Information Technology Services                      NA            207        
Arthur Andersen, LLP                      Consulting Services                                  NA            511        
Aspen Technology, Inc.                    Information Technology Services                      NA            107        
Atmospheric Research &                                                                                                  
    Analysis, Inc.                        Consulting Services                                  NA          2,013        
Auburn University                         Research and Development                             NA            126        
Automatic Data Processing                 Investor Relations                                   NA            271        
Barbour, Griffith & Rogers                Consulting Services                                  NA            247        
Barry A. Williamson, P.C.                 Consulting Services                                  NA            126        
Bearing Point                             Consulting Services                                  NA            487        
Black Box Network Services                Telecommunications Services                          NA            101        
Blankenship & Seay                                                                                                      
    Consulting                            Consulting Services                                  NA            265        
Boston Consulting Group, Inc.             Consulting Services                                  NA            680        
Bowne of Atlanta, Inc.                    Stockholder Services                                 NA            332        
Buck Consultants, Inc.                    Financial Services                                   NA            561        
Burns International Security              Security Services                                    NA            412        
Caddell Construction Co.                  Construction Services                                NA          1,332        
Carter & Associates                       Property Management                                  NA            325        
Cauthen & Associates                      Consulting Services                                  NA            177        
CCC/The Mentoring Group                   Consulting Services                                  NA            188        
CES International, Inc.                   Software Consulting Services                         NA            157        
Checkfree Corporation                     Consulting Services                                  NA            167        
CMI                                       Marketing Services                                   NA            192        
Commerce One                              Software Consulting Services                         NA            138        
Compass America, Inc.                     Consulting Services                                  NA            277        

(Continued on page 24C)                                                                                                 

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                                                                                                               24C      
                                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                 ------------------------------                                         
                                For the Year Ended December 31, 2002                                                    
                                                    ----------------                                                    
                                        (Thousands of Dollars)                                                          

                                        OUTSIDE SERVICES EMPLOYED                                                       
                                         ------------------------                                                       

                                   ACCOUNT 923                                                                          

INSTRUCTIONS:   Provide a breakdown by sub-account of outside services employed. If the aggregate amounts paid to       
                any one payee and included within one sub-account is less than $100,000, only the aggregate number and  
                amount of all such payments included within the sub-account need be shown. Provide a subtotal for       
                each type of service.                                                                                   

                                                                                RELATIONSHIP                            
                                                                                "A"=ASSOCIATE                           
                                          DESCRIPTION OF                        "NA"= NON                               
FROM WHOM PURCHASED                       LARGEST INVOICE                        ASSOCIATE                 AMOUNT       
-------------------                       ---------------                       ----------------           ------       

Comprehensive Computer                                                                                                  
  Consulting, Inc.                        Information Technology Services                      NA          6,459        
Computer Technology Solutions, Inc.       Information Technology Services                      NA            298        
COMSYS                                    Information Technology Services                      NA            314        
Consumermetrics, Inc.                     Consulting Services                                  NA            205        
Corporate Temps 2000                      Personnel Services                                   NA            128        
Creative Financial Group, Inc.            Financial Services                                   NA            237        
Czarnowski                                Consulting Services                                  NA            131        
Dean & Company Strategy                                                                                                 
    Consultants, Inc.                     Consulting Services                                  NA            220        
Deloitte & Touche LLP                     Consulting Services                                  NA            337        
Dewey Ballantine                          Financial Services                                   NA            567        
Diversiplex, Inc.                         Consulting Services                                  NA            150        
Documentum, Inc.                          Information Technology Services                      NA            163        
Doozer Software, Inc.                     Software Consulting Services                         NA            164        
Drotter Human Resources, Inc.             Consulting Services                                  NA            176        
Dun & Bradstreet                          Software Consulting Services                         NA            106        
Edelman Public Relations World            Public Relations Services                            NA            103        
Electric Power Research                                                                                                 
    Institute                             Research and Development                             NA          1,968        
Electricity Reform Accountability                                                                                       
    Project                               Consulting Services                                  NA            600        
Embarcadero Technologies, Inc.            Information Technology Services                      NA            131        
Energy Sciences Group, Inc.               Consulting Services                                  NA            137        
Equifax Credit Info. Serv.                Credit Information Services                          NA            635        
Ernst & Young, LLP                        Consulting Services                                  NA            127        
Everett Environmental, Inc.               Environmental Services                               NA            119        
Financial Engineering                                                                                                   
    Associates, Inc.                      Software Consulting Services                         NA            118        
Fitch, Inc.                               Financial Services                                   NA            142        
FMI Corporation                           Consulting Services                                  NA            384        
Fusive.Com Corp                           Software Consulting Services                         NA            103        
GCI Group                                 Public Relations Services                            NA            276        
GE Energy Management Serv., Inc.          Information Technology Services                      NA            217        
GE Purchase Card Services                 Financial Services                                   NA            230        
General Physics Corporation               Information Technology Services                      NA            427        
Georgia Power Company                     Project Support                                      A           8,554        
Gulf Power Company                        Project Support                                      A           1,259        

(Continued on page 24D)                                                                                                 

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24D                                                                                                                     
                                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                 ------------------------------                                         

                                For the Year Ended December 31, 2002                                                    
                                                    ----------------                                                    
                                        (Thousands of Dollars)                                                          

                                        OUTSIDE SERVICES EMPLOYED                                                       
                                         -----------------------                                                        

                                                 ACCOUNT 923                                                            

INSTRUCTIONS: Provide a breakdown by sub-account of outside services employed. If the aggregate amounts paid to         
              any one payee and included within one sub-account is less than $100,000, only the aggregate number and    
              amount of all such payments included within the sub-account need be shown. Provide a subtotal for         
              each type of service.                                                                                     

                                                                                RELATIONSHIP                            
                                                                                "A"=ASSOCIATE                           
                                          DESCRIPTION OF                        "NA"= NON                               
FROM WHOM PURCHASED                       LARGEST INVOICE                        ASSOCIATE                 AMOUNT       
-------------------                       ---------------                       ----------------           ------       

Hawthorn Group                            Consulting Services                                  NA          2,188        
Henwood Energy Services, Inc.             Consulting Services                                  NA            239        
Hewitt Associates                         Personnel Services                                   NA          5,990        
Hewlett-Packard Company                   Information Technology Services                      NA            106        
Hire.Com, Inc.                            Personnel Services                                   NA            136        
Innovative Combustion                                                                                                   
    Technologies, Inc.                    Consulting Services                                  NA            112        
Intelligent Technology Systems            Information Technology Services                      NA            147        
Interland, Inc.                           Information Technology Services                      NA            117        
JANX                                      Consulting Services                                  NA            125        
Keith Bissell                             Consulting Services                                  NA            175        
KPMG, LLP                                 Consulting Services                                  NA            157        
Liebman & Associates, Inc.                Research and Development                             NA            124        
Lucid Partners, Inc.                      Investor Relations                                   NA            112        
M&D Power Constructors, Inc.              Construction Services                                NA          2,031        
Market Solutions Group, Inc.              Marketing Services                                   NA            118        
Matrix Resources, Inc.                    Consulting Services                                  NA            378        
McDermott, Will & Emery                   Consulting Services                                  NA            472        
Merrill Lynch Trust Company               Financial Services                                   NA            825        
Merrill Lynch Pierce Fenner                                                                                             
    & Smith, Inc.                         Financial Services                                   NA            388        
Mesa Solutions, Inc.                      Consulting Services                                  NA            279        
Microsoft Services                        Information Technology Services                      NA            697        
Mississippi Power Company                 Project Support                                      A             507        
Mobile Data Solutions                     Information Technology Services                      NA            137        
Moody's Investor Services                 Financial Services                                   NA            433        
MRO Software, Inc.                        Software Consulting Services                         NA            337        
MW Consulting                             Consulting Services                                  NA            166        
Netiq Corporation                         Information Technology Services                      NA            116        
New York Stock Exchange, Inc.             Financial Services                                   NA            446        
Open Access Technology                                                                                                  
    International, Inc.                   Information Technology Services                      NA            142        
ORACLE Corporation                        Software Consulting Services                         NA            505        
PA Consulting Services, Inc.              Consulting Services                                  NA            346        
Pantellos Group Limited Partnership       Procurement Services                                 NA            369        
Partnersolve Consulting, LLC              Consulting Services                                  NA            531        
Peoplesoft, Inc.                          Software Consulting Services                         NA            740        
Platts                                    Information Technology Services                      NA            213        
Population Research Systems               Consulting Services                                  NA            112        
Pricewaterhouse Coopers, LLP              Software Consulting Services                         NA            347        

(Continued on page 24E)                                                                                                 

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                                                                                                               24E      
                                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                 ------------------------------                                         

                                 For the Year Ended December 31, 2002                                                   
                                                     -----------------                                                  
                                        (Thousands of Dollars)                                                          

                                        OUTSIDE SERVICES EMPLOYED                                                       
                                         -----------------------                                                        

                                                ACCOUNT 923                                                             

INSTRUCTIONS:  Provide a breakdown by sub-account of outside services employed. If the aggregate amounts paid to        
               any one payee and included within one sub-account is less than $100,000, only the aggregate number and   
               amount of all such payments included within the sub-account need be shown. Provide a subtotal for        
               each type of service.                                                                                    

                                                                                RELATIONSHIP                            
                                                                                "A"=ASSOCIATE                           
                                          DESCRIPTION OF                        "NA"= NON                               
FROM WHOM PURCHASED                       LARGEST INVOICE                        ASSOCIATE                 AMOUNT       
-------------------                       ---------------                       ----------------           ------       

R.L. Industries, Inc.                     Construction Services                                NA            137        
R.M. Services, Inc.                       Consulting Services                                  NA            236        
R.W. Beck, Inc.                           Financial Services                                   NA            373        
Robert T. Cobb                            Consulting Services                                  NA            197        
Savannah Electric & Power Co.             Project Support                                      A             225        
Science Applications                                                                                                    
    International, Corp.                  Information Technology Services                      NA            137        
Scott, Madden & Associates, Inc.          Consulting Services                                  NA            879        
Setrans                                   Consulting Services                                  NA            270        
Sideview Partners                         Consulting Services                                  NA            236        
Siemens Westinghouse                      Research and Development                             NA            160        
Sitel Corporation                         Consulting Services                                  NA            766        
Skillsoft Corporation                     Software Consulting Services                         NA            106        
Software House International, Inc.        Information Technology Services                      NA            269        
Southern Company Energy Solutions         Project Support                                      A             157        
Southern Nuclear                          Project Support                                      A             124        
Southern Research Institute               Consulting Services                                  NA            105        
SPL Worldgroup, Inc.                      Information Technology Services                      NA            225        
Sprint E/Solutions                        Information Technology Services                      NA            315        
Standard & Poor's Corporation             Financial Services                                   NA            133        
Sun Microsystems, Inc.                    Information Technology Services                      NA            426        
Synergis                                  Software Consulting Services                         NA          1,160        
System Architechs, Inc.                   Software Consulting Services                         NA            175        
Systems Applications Intl                 Consulting Services                                  NA            305        
TATA Consultancy Services                 Information Technology Services                      NA            220        
Tech Providers, Inc.                      Personnel Services                                   NA            115        
Teksystems                                Information Technology Services                      NA            854        
The New Power Company                     Consulting Services                                  NA            149        
The North Highland Company, Inc.          Consulting Services                                  NA            160        
The Pennsylvania State University         Research and Development                             NA            107        
The Renkes Group, Ltd.                    Consulting Services                                  NA            100        
The Smith-Free Group                      Consulting Services                                  NA            183        
The Tiger Group, Inc.                     Information Technology Services                      NA            108        
Thomson Financial / Carson                Financial Services                                   NA            136        
Time and Money Consulting, Inc.           Consulting Services                                  NA            104        
TQS Research, Inc.                        Market Research Studies                              NA            116        

(Continued on page 24F)                                                                                                 

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24F                                                                                                                     
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                        

                      For the Year Ended December 31, 2002                                                              
                             (Thousands of Dollars)                                                                     

                            OUTSIDE SERVICES EMPLOYED                                                                   

                                   ACCOUNT 923                                                                          

INSTRUCTIONS:    Provide a breakdown by sub-account of outside services employed. If the aggregate amounts paid to      
                 any one payee and included within one sub-account is less than $100,000, only the aggregate number and 
                 amount of all such payments included within the sub-account need be shown. Provide a subtotal for      
                 each type of service.                                                                                  

                                                                                RELATIONSHIP                            
                                                                                "A"=ASSOCIATE                           
                                          DESCRIPTION OF                        "NA"= NON                               
FROM WHOM PURCHASED                       LARGEST INVOICE                        ASSOCIATE                 AMOUNT       
-------------------                       ---------------                       ----------------           ------       

Veritas Software                          Software Consulting Services                         NA            106        
W.S. Hinton & Associates                  Research and Development                             NA            102        
Waller, Lansden, Dortch & Davis           Consulting Services                                  NA            119        
Wipro                                     Information Technology Services                      NA            203        
Wyndam Mills International                Personnel Services                                   NA            105        
Z Solutions                               Consulting Services                                  NA            116        

    1,158 Other Items Less Than $100,000                                                       NA         15,129        
                                                                                                         -------        

                                          Subtotal - Other Services                                       99,821        
                                                                                                         -------        

                                                         TOTAL                                           162,797        
                                                                                                         =======        


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25                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.

For the Year Ended December 31, 2002
(Thousands of Dollars)

EMPLOYEE PENSIONS AND BENEFITS

 ACCOUNT 926

INSTRUCTIONS:  Provide a listing of each pension plan and benefit program       
             provided by the service company. Such listing should be limited
to $25,000.                                       

DESCRIPTION                                                        AMOUNT       
-----------                                                       ------        

Pensions                                                         (9,161)        

Early Retirement Benefits                                            883        

Flexible Credit Benefits - Company Contributions                  17,104        

Post Retirement Medical Benefits                                   7,859        

Post Retirement Life Benefits                                      3,273        

Post Employment Benefits                                              -         

Minority Scholarship Program                                          32        

Educational Assistance Plan                                          305        

Employee Savings Plan/ESOP - Company Contribution                 11,197        

Employee Health and Physical Examinations                             51        

Other (Employees' Professional Fees and                                         
Other Employee Fringe Benefits)                                  143    
                                                         -------

TOTAL                                                         31,686    
                                                         =======

( ) Denotes red figure.                                                         

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                                                                        26
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------
(Thousands of Dollars)

GENERAL ADVERTISING EXPENSES
--------------------------- 

 ACCOUNT 930.1

INSTRUCTIONS:   Provide a listing of the amount included in Account             
  930.1, "General Advertising Expenses", classifying
    the items according to the nature of the advertising
and as defined in the account definition. If a  
particular class includes an amount in excess of
    $3,000 applicable to a single payee, show separately
the name of the payee and the aggregate amount  
applicable thereto.                             

In the past, advertising expenses were paid directly by the Southern Company. In
1999, however, Southern Company Services began to reflect these expenses on its 
books. While these costs are billed to the holding company, the change was made 
to recognize the Service Company's role in managing these expenses and to add   
efficiency to the operations of the company. 2002 advertising expenses are as   
follows:                                                                        

                                                                [Download Table]


NAME OF PAYEE                            DESCRIPTION                       AMOUNT 
-------------                            -----------                       ------ 

                                                                                  
Assn. of National Advertisers, Inc.      Corporate Branding                    11 
Atlanta Braves                           Sports Marketing                     577 
B. Hannah, LLC                           Sports Marketing                      30 
Billy Andrade                            Sports Marketing                      62 
Bobby Dodd Coach of the Year             Sports Marketing                     160 
Capital Sign                             Corporate Branding                    10 
Catering on the Green                    Sports Marketing                       8 
Fitzgerald & Co.                         Corporate Branding                 9,232 
Fortune Magazine                         Corporate Branding                   106 
GCI Group                                Corporate Branding                    73 
Georgia Public Broadcasting              Corporate Branding                    61 
Georgia State University Athletic Assoc. Sports Marketing                      15 
Golf's Greatest Moments                  Sports Marketing                      45 
Graves Ventures, LLC                     Sports Marketing                      80 
Grey Worldwide Atlanta                   Corporate Branding                   804 
Joe Inman, Inc.                          Sports Marketing                     197 
Lattimer Moffitt Communication           Corporate Branding                   510 
Lippincott & Margulies                   Corporate Branding                    10 
Ontelcom, Inc.                           Corporate Branding                    28 
PGA Tournament Corporation, Inc.         Sports Marketing                   2,624 
Publishers' Alliance Corporation         Corporate Branding                    27 
Radio & Television News Directory        Corporate Branding                     3 
Stewart Cink                             Sports Marketing                      88 
Sun Mountain                             Sports Marketing                      17 
Turner South                             Corporate Branding                 1,168 
WPBA TV                                  30Corporate Branding                  40 

                                         All other Items less than $3,000     (15)
                                                                           ------ 

                                         TOTAL                             15,971 
                                                                           ====== 

( ) Denotes red figure.                                                           


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27                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------
For the Year Ended December 31, 2002
                  ----------------
(Thousands of Dollars)

MISCELLANEOUS GENERAL EXPENSES
------------------------------

 ACCOUNT 930.2

                                                        [Enlarge/Download Table]


INSTRUCTIONS:   Provide a list of the  amount  included  in Account  930.2,  "Miscellaneous  General  Expenses",  
                classifying  the items  according to their  nature.  Payments and expenses  permitted by Section  
                321 (b) (2) of the  Federal  Election  Campaign  Act, as amended by Public Law 94-284 in 1976 (2  
                U.S.C.S. 441 (b) (2) shall be separately classified.                                              

DESCRIPTION                                                                                                AMOUNT 
-----------                                                                                                ------ 

                                                                                                                  
Employee Training                                                                                           3,573 

Expenses of SCS Employees Located at Operating Co.                                                          3,347 

Meals, Lodging, & Incidentals Related to                                                                          
  Meetings & Conferences                                                                                    6,070 

Dues and Memberships                                                                                        1,834 

Recruiting, Interviewing, & Placement                                                                             
  of Employees                                                                                                222 

Other General Expenses *                                                                                   (2,407)
                                                                                                         -------- 

    TOTAL                                                                                                  12,639 
                                                                                                          ======= 

* Credit includes expenses transferred to CWIP and funds received for                                             
transmission impact and facilities studies.                                                                       


( ) Denotes red figure.                                                         

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                                                                      28
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------

For the Year Ended December 31, 2002
                    ------------------
(Thousands of Dollars)

 RENTS

 ACCOUNT 931

INSTRUCTIONS:  Provide a listing of the amount included in Account 931,         
       "Rents",  classifying such expenses by major groupings of
            property,  as defined in the account definition of the Uniform
System of Accounts.                               

DESCRIPTION                                                   AMOUNT            
-----------                                                   ------            

Office Rents                                                  24,075            

Computer and Other Data Processing Equipment Rental           29,359            

IR Equipment - Capital Lease                                     532            

Software                                                       2,920            

All Other (Automobile, Office Furniture & Equipment,                            
Miscellaneous Storage, Equipment Rental & Aircraft)        5,124        
                                                 -------

TOTAL                                                     62,010        
                                                 =======

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29                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
               -------------------------------

For the Year Ended December 31, 2002
                  ------------------
(Thousands of Dollars)

 TAXES OTHER THAN INCOME TAXES
 -----------------------------

 ACCOUNT 408

INSTRUCTIONS:  Provide an analysis of Account  408,  "Taxes Other Than Income   
            Taxes".  Separate the analysis into two groups: (1) other than
           U.S. Government taxes, and (2) U.S. Government taxes. Specify
              each of the various kinds of taxes and show the amounts thereof.
Provide a subtotal for each class of tax.         

KIND OF TAX                                                      AMOUNT         
-----------                                                      ------         

Other Than U.S. Government Taxes                                                

State Unemployment                                           142        

City/Business License Tax                                    -          

Property and Other City and State                          2,421        
                                                   -----

Subtotal - Other                                      2,563   
                                                   -----

U.S. Government Taxes                                                           

Federal Insurance Contributions Act                       22,658        

Federal Unemployment                                         229        
                                                 -------

Subtotal - U.S. Government                           22,887   
                                                 -------

TOTAL                                                     25,450        
                                                  ======

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                                                                                                               30 
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                  
                                 ------------------------------                                                   

                      For the Year Ended December 31, 2002                                                        
                                         -----------------                                                        
                             (Thousands of Dollars)                                                               

                                    DONATIONS                                                                     
                                    ---------                                                                     

                                  ACCOUNT 426.1                                                                   

INSTRUCTIONS:   Provide a listing of the amount included in Account 426.1,  "Donations",  classifying  such       
                expenses by its purpose.  The  aggregate number and amount of all items of less than $3,000 may   
                be shown in lieu of details.                                                                      

NAME OF RECIPIENT                                              PURPOSE OF DONATION                         AMOUNT 
-----------------                                              -------------------                         ------ 

                                                                                                                  
Alabama A&M University                                         Civic & Charitable                              10 
American Forest Foundation                                     Civic & Charitable                              35 
American Legislative Exchange Council                          Support of Program                               7 
Americans for Balanced Energy Choices                          Support of Program                           1,000 
Atlanta University Center                                      Civic & Charitable                              10 
Auburn University Foundation                                   Civic & Charitable                               6 
Auburn University Foundation                                   Educational Matching                            10 
Birmingham Area Chamber of Commerce                            Civic & Charitable                               4 
Birmingham Museum of Art                                       Civic & Charitable                              12 
Business Institute for Political Analysis                      Support of Program                              10 
Cancer Research Foundation of America                          Support of Program                               5 
Capital Associates International, Inc.                         Civic & Charitable                              10 
Chick-Fil-A Peach Bowl                                         Civic & Charitable                               7 
Coach Fran Charities, Inc.                                     Civic & Charitable                              15 
Congressional Black Caucus Foundation                          Civic & Charitable                              35 
Democratic Congressional Campaign                                                                                 
    Committee Building Fund                                    Support of Program                              25 
Democratic National Committee                                                                                     
    Building Fund                                              Support of Program                             135 
Democratic Senatorial Campaign                                                                                    
    Committee Building Fund                                    Support of Program                              30 
Eisenhower Center Building Fund                                Support of Program                             180 
Emory University                                               Educational Matching                             3 
Ford's Theatre Society                                         Civic & Charitable                              30 
Fort Valley State University                                   Educational Matching                             4 
Franklin Inaugural 2002                                        Civic & Charitable                              25 
Friendship Volunteer Fire Department                           Civic & Charitable                              16 
Georgia Institute of Technology                                Educational Matching                            21 
Georgia State University Foundation                            Civic & Charitable                             100 
Greater Alabama Council - Boy Scouts of America                Civic & Charitable                               9 
Greater New York Councils                                      Civic & Charitable                               5 
Harvard University                                             Civic & Charitable                              10 
Horton's Kids, Inc.                                            Civic & Charitable                               3 
Independent Women's Forum                                      Civic & Charitable                               5 
Junior Achievement of Greater Birmingham, Inc.                 Civic & Charitable                               6 
Kennedy Center                                                 Civic & Charitable                               8 
MBA Games for Special Olympics                                 Civic & Charitable                               5 
Metro Atlanta Chamber of Commerce                              Civic & Charitable                              14 
Mississippi State University                                   Educational Matching                             5 


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30A                                                                                                              
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                 
                                 ------------------------------                                                  

                      For the Year Ended December 31, 2002                                                       
                                         -----------------                                                       
                             (Thousands of Dollars)                                                              

                                    DONATIONS                                                                    
                                    ----------                                                                   

                                  ACCOUNT 426.1                                                                  

INSTRUCTIONS:   Provide a listing of the amount included in Account 426.1,  "Donations",  classifying  such      
                expenses by its purpose.  The aggregate number and amount of all items of less than $3,000 may   
                be shown in lieu of details.                                                                     

NAME OF RECIPIENT                                              PURPOSE OF DONATION                         AMOUNT
-----------------                                              -------------------                         ------

                                                                                                                 
National Fish & Wildlife Foundation                            Civic & Charitable                             250
National Kidney Foundation                                     Civic & Charitable                              15
National Minority Junior Golf Scholarship, Assn.               Civic & Charitable                               4
National Multiple Sclerosis Society                            Support of Program                               5
National Press Foundation                                      Civic & Charitable                               6
National Republican Congressional                                                                                
    Committee Building Fund                                    Support of Program                              30
National Republician Senatorial Committee                                                                        
    Building Fund                                              Support of Program                             100
National Wild Turkey Federation                                Support of Program                              10
Open Fairways                                                  Civic & Charitable                               8
Public Affairs Council                                         Civic & Charitable                               3
Rebuilding Together Atlanta                                    Civic & Charitable                               3
Savannah State University                                      Civic & Charitable                              18
Smithsonian Institution                                        Civic & Charitable                              25
Southern Company Charitable Foundation                         Civic & Charitable                             500
Southern Governors' Association                                Support of Program                               5
Taste of the South                                             Support of Program                              10
Tennessee Technological University                             Civic & Charitable                               3
The 2002 President's Dinner Building Fund                      Support of Program                             100
The Bayou Jesters                                              Support of Program                               5
The Capstone Foundation                                        Civic & Charitable                               4
The Carter Center                                              Civic & Charitable                              97
The Choral Arts Society of Washington                          Civic & Charitable                               4
The Delay Foundation Golf Invitational                         Civic & Charitable                              21
The Foundation for Hospital Art                                Civic & Charitable                               8
The Ivy Inter-American Foundation                              Civic & Charitable                               5
The Joseph Sams School                                         Civic & Charitable                               5
The University of Alabama                                      Educational Matching                            18
U.S. Capitol Historical Society                                Civic & Charitable                               5
U.S. Chamber Institute for Legal Reform                        Civic & Charitable                           1,000
United Way                                                     Civic & Charitable                             160


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                                                                                                               30B
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                  
                                 ------------------------------                                                   

                      For the Year Ended December 31, 2002                                                        
                                         -----------------                                                        
                             (Thousands of Dollars)                                                               

                                    DONATIONS                                                                     

                                  ACCOUNT 426.1                                                                   

INSTRUCTIONS:   Provide a listing of the amount included in Account  426.1,  "Donations",  classifying  such      
                expenses by its purpose.  The aggregate  number and amount of all items of less than $3,000 may   
                be shown in lieu of details.                                                                      

NAME OF RECIPIENT                                              PURPOSE OF DONATION                         AMOUNT 
-----------------                                              -------------------                         ------ 

                                                                                                                  
University of Alabama                                          Educational Matching                            11 
University of Georgia                                          Educational Matching                             5 
USA Gymnastics 2003 Junior Olympics                            Civic & Charitable                              10 
Utility Business Education Coalition                           Civic & Charitable                              25 
Waterfall Committee                                            Civic & Charitable                              12 
Wolf Trap Foundation for the Performing Arts                   Civic & Charitable                               5 
YWCA of Birmingham Capital Campaign                            Civic & Charitable                               5 

71  Other Items (Less than $3,000)                             Civic & Charitable                              63 

79  Other Items (Less than $3,000)                             Employee Matching Gift                          34 

2   Other Items (Less than $3,000)                             Support of Program                               1 
                                                                                                            ----- 

    TOTAL                                                                                                   4,413 
                                                                                                            ===== 

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31                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------
For the Year Ended December 31, 2002
                  ------------------
(Thousands of Dollars)

OTHER DEDUCTIONS

 ACCOUNT 426.5

INSTRUCTIONS:     Provide a listing of the amount included in Account 426.5,    
  "Other Deductions",  classifying such expenses
according to their nature.                

DESCRIPTION                  NAME OF PAYEE                   AMOUNT             
-----------                  -------------                   ------             

NOT APPLICABLE                                                                  

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                                                                        32
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------
For the Year Ended December 31, 2002
                  ----------------
(Thousands of Dollars)

SCHEDULE XVIII
--------------

NOTES TO STATEMENT OF INCOME

INSTRUCTIONS:              The space below is provided for important notes      
                      regarding the statement of income or any account
                        thereof. Furnish particulars as to any significant
                        increase in services rendered or expenses incurred
                  during the year. Notes relating to financial
                      statements shown elsewhere in this report may be
  indicated here by reference.

See Notes to Financial Statements on Page 17                                    

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33                                                                                                            
                                  ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                            
                                                   ------------------------------                             

                                                 ORGANIZATION CHART                                           
                                                 ------------------                                           

                                   Chairman, President and Chief Executive Officer                            
                                                  Southern Company                                            

                                                                                                              
President          Exec VP-            Exec VP-            Sr. VP         Exec. VP, &    Exec VP &            
Southern Co.        Chief              External            Internal       CFO &          General              
Generation &        Marketing          Affairs             Auditing       Treasurer      Counsel              
Energy Mkt.         Officer                                                                                   

VP SCS &            VP Product         VP Corporate                       Sr. VP-        VP and Sr.           
So. Power           Management         Communication                      Comptroller    Counsel              
CFO                                                                       & CFO                               

Exec. VP            VP Marketing       VP Govern-                         Sr. VP -       VP & Assoc           
Engineering &       Services           mental Affairs                     Finance        General              
Construction                                                                             Counsel              
Services                                                                                 (3 Positions)        

VP Fossil/Hydro     Director           VP Supply                          Assistant      Policy &             
Eng., Procurement   Customer           Chain                              Treasurer      Planning             
and Construction    Service            Management                         & Director     Director             
                                                                          Trust Finance                       

Sr. VP Research                                                           Director -     VP -                 
                                                                          Risk           Corporate            
Environmental                                                             Management     Secretary &          
Affairs                                                                                  Assoc                
                                                                                         General              
                                                                                         Counsel              

Executive VP -                                                                           Sr. VP -             
Generation                                                                               Chief                
                                                                                         Transmission         
                                                                                         Officer              
Sr. VP Energy                                                                                                 
Marketing                                                                                Sr. VP - Transmission
                                                                                         Planning &           
                                                                                         Operations           

VP Business                                                                              VP -Transmission     
Development                                                                              Planning,  Policy    
                                                                                         & Support            

VP Fleet                                                                                 Sr. VP -             
Operations                                                                               Chief Information    
and Trading                                                                              Officer              

VP Generation                                                                            Chief                
Planning and                                                                             Information          
Development                                                                              Officers'            
                                                                                         (4 Positions)        

VP Fuel Services                                                                         VP - Com -           
                                                                                         putting &            
                                                                                         Networking           
                                                                                         Services             

                                                                                         Sr. VP               
                                                                                         Human                
                                                                                         Resources            

Exec. VP & Chief                                                                         VP - Compensation    
Production Officer                                                                       and Benefits         

VPs Senior                                                                               VP -                 
Production Officers                                                                      Employee             
(5 Positions)                                                                            Relations &          
                                                                                         Assoc.               
                                                                                         General              
                                                                                         Counsel              

VP Technical                                                                                                  
Services                                                                                                      


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34                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------

 METHODS OF ALLOCATION
  ----------------------

SCS uses statistics based on a single year with a one-year lag; therefore, 2002 
allocations were based on 2000 statistics. In order to equitably allocate to    
Southern Company Gas, a new operating affiliate that began operations in 2002,  
SCS used a projection of 2002 annualized statistics to calculate their relative 
distribution.                                                                   

1.     Load Basis                                                     
----------                                              

   Each Client Operating Company, other than Southern Electric
            Generating Company (SEGCO), was charged that percentage of the total
          Service Company charges to be distributed by this method which its
          annual operating area territorial load and firm commitments are of
 the total annual operating area territorial load and firm
          commitments of Southern Company, defined as total energy generated
       plus energy received minus energy delivered plus firm wholesale
commitments.                                            

2.     Customer Basis                                                 
--------------                                          

           Each Client Operating Company, other than SEGCO and Southern Power,
           was charged that percentage of the total Service Company charges to
            be distributed by this method which its number of year-end customers
           is of the total number of customers of Southern Company, other than
the excluded affiliates.                                

3.     Employee Basis                                                 
--------------                                          

            Each Client Company was charged that percentage of the total Service
            Company charges to be distributed by this method which its number of
            year-end employees is of the total number of employees of all Client
          Companies. Employee groups not benefiting from particular services
are not included in every allocation.                   

4.     Financial Basis                                                
---------------                                         

            Each Client Company was charged that percentage of the total Service
          Company charges to be distributed by this method which its average
      of the percentages of net fixed assets, operating expenses and
          operating revenue sources is to the total Client Company net fixed
    assets, operating expenses and operating revenue of Southern
Company.                                                

5.     Fossil Fuel Generation Basis                                   
----------------------------                            

        Each Client Operating Company was charged that percentage of the
            total Service Company charges to be distributed by this method which
          its generation from fossil fuel sources is to the total generation
from fossil fuel sources of Southern Company.           

6.     Fossil and Hydro Capacity Basis                                
-------------------------------                         

          Each Client Operating Company was charged the factor determined by
        dividing the total fossil and hydro generating capacity for each
        company, including capacity attributed to joint owners of system
     plants, by the total fossil and hydro generating capacity for
Southern Company.                                       

7.     Fossil Capacity Basis                                          
---------------------                                   

          Each Client Operating Company was charged the factor determined by
       dividing the total fossil generating capacity for each company,
          including capacity attributed to joint owners of system plants, by
  the total fossil generating capacity for Southern Company.

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                                                                         34A
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------

For the Year Ended December 31, 2002
                   -----------------

 METHODS OF ALLOCATION
  --------------------

8.     Insurance Premium Basis                                        
-----------------------                                 

            Each Client Company was charged that percentage of the total Service
  Company charges to be distributed by this method which its
          applicable insurance premiums is to the total applicable insurance
premiums of Southern Company.                           

9.     Salary Basis                                                   
------------                                            

            Each client company was charged that percentage of the total Service
            Company charges to be distributed by this method which its amount of
         historical SCS billed labor is to the total SCS billed historical
            labor of all applicable companies. In addition, overhead charges are
           allocated to the applicable companies based on actual labor charges
in the current period.                                  

10.     Capitalization (Southern System Basis)                          
--------------------------------------                  

   Each Client Company was charged in the ratio of such Client
Company's total capitalization to the sum of the total  
capitalization of all Client Companies.                 

11.     Personal Computers Basis                                        
------------------------                                

            Each Client Company was charged that percentage of the total Service
            Company charges to be distributed by this method which its number of
PCs is to the total PCs for Southern Company.           

12.     Market-Based Equity                                             
-------------------                                     

            Each Client Company was charged in the ratio of such company's total
           book equity, adjusted to fair market value, to the sum of the total
market-based equity of all Client Companies.            

13.     System Aircraft                                                 
---------------                                         

  Passengers on system aircraft were charged a rate based on
            comparable, non-discounted commercial fares for the itinerary flown.
    Residual expenses not billed to client companies through the
        commercial fares were allocated to all associate companies as an
        availability fee based on the number of executives with call out
authority at each company.                              

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                                                                    35
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
               -------------------------------

For the Year Ended December 31, 2002
                   -----------------

ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
----------------------------------------------------------  

The following annual statement was supplied to each associate client company    
regarding interest billed for compensation of equity capital and borrowed       
capital in 2002:                                                                

Pursuant to the amended Uniform System of Accounts for Mutual and Subsidiary    
Service Companies implemented in January 1980, Southern Company Services is     
required to submit an annual statement to its associate client companies stating
the amount and calculation of interest billed for compensation of equity capital
and borrowed capital. Southern Company Services does not bill its associate     
client companies for compensation of equity capital.                            

In 2002, Southern Company Services initiated short-term borrowing exclusively   
from the Southern Company; other outside banking institutions were not used. The
interest rates on these borrowings ranged from 4.99% to 5.29%. Interest in the  
amount of $89,082 was accrued on the Southern Company borrowing and was billed  
to the client companies.                                                        

As of December 31, 2002, Southern Company Services reflected long-term debt     
outstanding from various institutions in the amount of $44,542,800. The interest
rates on these borrowings ranged from 7.25% to 7.625%. Interest of $4,068,457   
was accrued and billed to the client companies. Other long-term debt related to 
capitalized leases in the amount of $15,881,714 was outstanding. The interest   
rates on these capitalized leases ranged from 4.59% to 8.00%. Interest of       
$200,904 was accrued and billed to the client companies.                        

In addition, during 2002, Southern Company Services incurred other interest of  
$1,856,052 related to the Transmission Access deposits, and $25,940 related to  
Miscellaneous Expenses.                                                         

All interest was billed to each company either on the appropriate fixed         
percentage allocation basis or on the salary allocation basis in accordance with
the SEC orders and service contracts. The interest on total service company     
indebtedness was billed to the associate and non-associate companies as follows:

The Southern Company                                $  353,835
Alabama Power Company                                1,589,825
Georgia Power Company                                2,304,173
Gulf Power Company                                     336,809
Mississippi Power Company                              304,016
Savannah Electric & Power Company                      104,051
Southern Electric Generating Company                    39,999
Southern Nuclear Operating Company, Inc.               682,940
Southern Company Energy Solutions, LLC                  31,337
Southern Company Holdings, Inc.                         20,925
Southern Management Development                         23,387
Southern Communications Services, Inc.                  42,511
Southern Electric Railroad Company                       1,411
Southern Power Company                                 197,383
Southern Telecom Inc.                                   17,529
Southern Company Gas, LLC                               37,235
Non-associate Companies                                153,069
                                                    ----------

                                                    $6,240,435
                                                    ==========

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36                                                                              
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                ------------------------------

For the Year Ended December 31, 2002
                  ------------------

SIGNATURE CLAUSE

Pursuant to the requirements of the Public
 Utility Holding Company Act of 1935 and the rules and
 regulations of the Securities and Exchange Commission
 issued thereunder, the undersigned company has duly
caused this report to be signed on its behalf by the
undersigned officer thereunto duly authorized.

Southern Company Services, Inc. 
------------------------------- 
 (Name of Reporting Company)

By: /s/W. Dean Hudson           
   -------------------------------
(Signature of Signing Officer)

              W. Dean Hudson, Senior Vice President, Comptroller
 and Chief Financial Officer
     (Printed Name and Title of Signing Officer)

Date:  April 30, 2003

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Dates Referenced Herein

		Referenced-On Page
This ‘U-13-60’ Filing	Date	First	Last	Other Filings

	12/15/09	28		None on these Dates
	12/1/05	28
Filed on / Effective on:	4/30/03	59
For Period End:	12/31/02	1	59
	1/1/02	1
	4/2/01	23	30
	7/11/00	30
	12/15/99	28
				List all Filings

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Filing Submission 0000217216-03-000001 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Southern Co Services Inc – ‘U-13-60’ for 12/31/02

On: Wednesday, 4/30/03, at 4:26pm ET · Effective: 4/30/03 · For: 12/31/02 · Accession #: 217216-3-1 · File #: 49-00059

Previous ‘U-13-60’: ‘U-13-60’ on 5/1/02 for 12/31/01 · Next: ‘U-13-60’ on 4/30/04 for 12/31/03 · Latest: ‘U-13-60’ on 4/29/05 for 12/31/04

Annual Report of a Mutual or Subsidiary Service Company — Form U-13-60Filing Table of Contents

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Dates Referenced Herein

Annual Report of a Mutual or Subsidiary Service Company — Form U-13-60
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