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Southern Co Services Inc – ‘U-13-60’ for 12/31/04

On: Friday, 4/29/05, at 5:07pm ET · Effective: 4/29/05 · For: 12/31/04 · Accession #: 217216-5-2 · File #: 49-00059

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

 4/29/05  Southern Co Services Inc          U-13-60    12/31/04    1:112K

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     Form U-13-60 Year Ending 12-31-04                     59    295K

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, 2004 and Ending December 31, 2004
          ---------------            -----------------

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     President, Comptroller      Atlanta, Georgia  30308-3374
and Chief                         
Financial Officer                 

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, 2004                                             
                                         -----------------                                             
                             (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)                          279,725      248,281    
    107        Construction work in progress (Schedule II)                       3,976          241    
                                                                              --------      -------    
                  Total Property                                               283,701      248,522    
                                                                               -------      -------    
    108        Less accumulated provision for depreciation                                             
                  and amortization of service company                                                  
                  property (Schedule III)                                      153,118      130,780    
                                                                               -------      -------    
                      Net Service Company Property                             130,583      117,742    
                                                                               -------      -------    

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

    123        Investments in associate companies (Schedule IV)                      -            -    
    124        Other investments (Schedule IV)                                  11,331        8,849    
                                                                              --------     --------    
                  Total Investments                                             11,331        8,849    
                                                                              --------     --------    

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

    131        Cash                                                                100        3,379    
    134        Special deposits                                                  2,744            -    
    135        Working funds                                                         -            -    
    136        Temporary cash investments (Schedule IV)                         20,875        1,500    
    141        Notes receivable                                                      -            -    
    143        Accounts receivable                                              71,619      109,434    
    146        Accounts receivable from associate                                                      
                  companies (Schedule V)                                       310,548      260,195    
    152        Fuel stock expenses undistributed (Schedule VI)                       -            -    
    154        Materials and supplies                                            1,907        1,192    
    163        Stores expense undistributed (Schedule VII)                           -            -    
    165        Prepayments                                                      67,499       65,184    
    174        Miscellaneous current and accrued assets (Schedule VIII)          8,061        1,037    
                                                                               -------      -------    
                      Total Current and Accrued Assets                         483,353      441,921    
                                                                               -------      -------    

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

    181        Unamortized debt expense                                            159          191    
    184        Clearing accounts                                                 1,158          344    
    186        Miscellaneous deferred debits (Schedule IX)                      36,923       34,010    
    188        Research, development, or demonstration                                                 
                  expenditures (Schedule X)                                          -            -    
    190        Accumulated deferred income taxes                                13,852       10,661    
                                                                              --------     --------    
                      Total Deferred Debits                                     52,092       45,206    
                                                                              --------     --------    

                      TOTAL ASSETS AND OTHER DEBITS                            677,359      613,718    
                                                                              ========     ========    

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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)             (25,575)     (19,650)    
    215       Appropriated retained earnings (Schedule XI)                  -            -     
    216       Unappropriated retained earnings                                                 
                 (Schedule XI)                                              -            -     
                                                                     --------     --------     
                     Total Proprietary Capital                        (24,850)     (18,925)    
                                                                     --------     --------     

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

    223       Advances from associate companies (Schedule XII)              -            -     
    224       Other long-term debt (Schedule XII)                      54,568       51,041     
    225       Unamortized premium on long-term debt                         -            -     
    226       Unamortized discount on long-term debt-debit                  -            -     
                                                                     --------     --------     
                     Total Long-Term Debt                              54,568       51,041     
                                                                     --------     --------     

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

    231       Notes payable                                             8,466        8,031     
    232       Accounts payable                                        149,734      161,973     
    233       Notes payable to associated companies                                            
                 (Schedule XIII)                                            -            -     
    234       Accounts payable to associate companies                                          
                 (Schedule XIII)                                       67,843       61,986     
    236       Taxes accrued                                            15,267          657     
    237       Interest accrued                                            536          136     
    238       Dividends declared                                            -            -     
    241       Tax collections payable                                  16,323        1,213     
    242       Miscellaneous current and accrued                                                
                 liabilities (Schedule XIII)                          166,714      162,477     
                                                                     --------      -------     
                     Total Current and Accrued Liabilities            424,883      396,473     
                                                                     --------      -------     

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

    253       Other deferred credits                                  222,758      185,129     
    255       Accumulated deferred investment tax credits                   -            -     
                                                                      -------      -------     
                     Total Deferred Credits                           222,758      185,129     
                                                                      -------      -------     

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

                     TOTAL LIABILITIES AND PROPRIETARY                                         
                       CAPITAL                                        677,359      613,718     
                                                                      =======      =======     

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                                                                                                   5       

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

                      For the Year Ended December 31, 2004                                                 
                                         -----------------                                                 
                             (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                  2,210               -                -            -           2,210  
306     LEASEHOLD                                                                                          
        IMPROVEMENTS                 17,368             740              (18)           -          18,090  
307     EQUIPMENT 2/                 68,785           3,933           (4,391)       5,346          73,673  
                  -                                                                                        
307     GATX CAPITAL LEASES 2/       18,180          13,636                -         (666)         31,150  
                            -                                                                              
307     MISC. CAPITAL LEASES 2/       5,500           1,902                -            -           7,402  
                             -                                                                             
308     OFFICE FURNITURE                                                                                   
        AND EQUIPMENT 2/             22,281           1,859             (417)         (55)         23,668  
                      -                                                                                    
309     AUTOMOBILES, OTHER                                                                                 
        VEHICLES AND                                                                                       
        RELATED GARAGE                                                                                     
        EQUIPMENT 2/                    873              39              (60)          87             939  
                  -                                                                                        
310     AIRCRAFT AND                                                                                       
        AIRPORT EQUIPMENT 2/         55,410          10,288             (189)           -          65,509  
                          -                                                                                
311     OTHER SERVICE COMPANY                                                                              
        PROPERTY 2/ 3/               57,674           1,744           (1,057)      (1,277)         57,084  
                 -  -              --------       ---------        ---------      --------    -----------  

          SUB-TOTAL                 248,281          34,141           (6,132)       3,435         279,725  
                                   --------       ---------        ---------      -------     -----------  

107     CONSTRUCTION WORK                                                                                  
        IN PROGRESS 4/                  241           7,205                -       (3,470)          3,976  
                    -             ---------       ---------        ---------      -------    ------------  

          TOTAL                     248,522          41,346           (6,132)         (35)        283,701  
                                  =========       =========        =========      ========   ============  

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

Cost adjustment for GIMS CWIP Project transferred to Capital and several Accrual                           
Reversals for (5,346).                                                                                     

( ) 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.                                    217                      10,433                  
307/04          Personal Computer Equip.                                      2,910                      54,015                  
307/05          Mainframe Computer Equipment                                    196                       4,149                  
307/11          Telephone Systems                                               610                       4,051                  
307/12          Telecommunications Equip.                                       -                         1,025                  
307/101         GATX Capital Leases                                          13,636                      31,150                  
307/102         Misc. Capital Leases                                          1,902                       7,402                  
308/01          Furniture & Fixtures                                            488                      13,583                  
308/09           Data Handling Equipment                                                                                         
                  & Miscellaneous                                             1,371                      10,085                  
309/08          Autos, Trucks & Trailers                                         39                         939                  
310/07          Aircraft                                                     10,288                      65,509                  
311/10          Software                                                      1,744                      55,413                  
311/13          Coal Pilot Scale Combustion                                                                                      
                  Facility                                                        -                       1,671                  
                                                                         ----------                   ---------                  

                              TOTAL                                          33,401                     259,425                  
                                                                         ==========                   =========                  

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 $3,976 is for development                                                 
       of various (hardware/software) projects such as Dispatch Tool, SHIPS                                                      
       upgrade, E-Sys. Software, etc., projects.                                                                                 

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                                                                                                                6                

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

                                For the Year Ended December 31, 2004                                                             
                                                   -----------------                                                             
                                        (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           RETIREMENTS           ADD  (1)       CLOSE OF                 
      DESCRIPTION                  OF YEAR         ACCT #403         OR SALES (2)       (DEDUCT)          YEAR                   
      -----------                 ---------        ---------       --------------       --------       ------------              

Account                                                                                                                          
-------                                                                                                                          

                                                                                                                                 
301     ORGANIZATION                      -               -               -                -                  -                  

303     MISCELLANEOUS                                                                                                            
        INTANGIBLE PLANT                  -               -               -                -                  -                  

304     LAND & LAND RIGHTS                -               -               -                -                  -                  

305     STRUCTURES AND                                                                                                           
        IMPROVEMENTS                  1,568              89               -                -              1,657                  

306     LEASEHOLD                                                                                                                
        IMPROVEMENTS                  8,750           1,405              (4)               -             10,151                  

307     EQUIPMENT                    54,190           6,473          (3,739)               -             56,924                  

307     GATX CAPITAL LEASES           4,403               -               -            6,169             10,572                  

307     MISC, CAPITAL LEASES          4,849               -               -            1,518              6,367                  

308     OFFICE FURNITURE                                                                                                         
        AND FIXTURES                 12,269           1,751            (310)              -              13,710                  

309     AUTOMOBILES, OTHER                                                                                                       
        VEHICLES AND                                                                                                             
        RELATED GARAGE                                                                                                           
        EQUIPMENT                       642              76             (60)              -                 658                  

310     AIRCRAFT AND                                                                                                             
        AIRPORT EQUIPMENT             6,010           3,292            (124)              -               9,178                  

311     OTHER SERVICE                                                                                                            
        COMPANY PROPERTY             38,099           6,757            (955)              -              43,901                  
                                  ---------         -------        --------        --------            --------                  

        TOTAL                       130,780          19,843          (5,192)          7,687             153,118                  
                                  =========         =======        ========        ========            ========                  

(1)      Provide an explanation of those charges considered material:  GATX Capital Leases, 6,169 and Misc. Capital Leases, 1,518
         amortize to Rent Expense Account 931-00021.                                                                             
(2)      Retirements are due to an inventory clean-up of all assets.                                                             

( ) Denotes red figure.                                                                                                          

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

                      For the Year Ended December 31, 2004                                   
                      ------------------------------------                                   
                             (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                                                              

    Change in Control Trust                                       8,392             11,099   
    Employee Energy Loans                                           386                230   
    ACE Limited - Reserve                                            69                  0   
    Employee Computer Loans                                           2                  2   
                                                              ---------           --------   
        Subtotal                                                  8,849             11,331   

ACCOUNT 136 - TEMPORARY CASH INVESTMENTS                          1,500             20,875   
                                                              ---------           --------   
        TOTAL                                                    10,349             32,206   
                                                              =========           ========   

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                                                                             8                 

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

                      For the Year Ended December 31, 2004                                     
                      ------------------------------------                                     
                             (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.                           

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

ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES                                     

                                                                                               
    The Southern Company                                            6,997             13,669   
    Alabama Power Company                                          82,795             79,417   
    Georgia Power Company                                          67,642            111,547   
    Gulf Power Company                                             19,492             21,650   
    Mississippi Power Company                                      21,525             18,363   
    Savannah Electric and Power Company                             7,925             13,471   
    Southern Company Holdings, Inc.                                   650                912   
    Southern Communications Services, Inc.                          1,540              2,306   
    Southern Company Energy Solutions, LLC                            265                420   
    Southern Company Rail Services                                    130                122   
    Southern Electric Generating Company                              910                499   
    Southern Electric Railroad Company                                342                 96   
    Southern Management Development, Inc.                             375                240   
    Southern Nuclear Operating Company, Inc.                        9,244             11,267   
    Southern Power Company                                         22,325             19,100   
    Southern Telecom, Inc.                                            110                132   
    Southern Company Gas, LLC                                      17,928             16,450   
    SE Finance Capital Corp. II                                         -                732   
    Alabama Synfuel Energy                                              -                 79   
    Energy Related Activities                                           -                 67   
    Synfuel Services                                                    -                  3   
    Southern Company Electrotechnologies                                -                  4   
    Southern Company Capital Funding                                    -                  2   
                                                              -----------       ------------   

        TOTAL                                                     260,195            310,548   
                                                              ===========       ============   

(Continued on Page 8A)                                                                         

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

For the Year Ended December 31, 2004
                   -----------------
(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                                                   445
  Alabama Power Company                                              809,163
  Georgia Power Company                                              781,594
  Gulf Power Company                                                 195,153
  Mississippi Power Company                                          267,454
  Savannah Electric and Power Company                                120,318
  Southern Communications Services, Inc.                              20,060
  Southern Company Energy Solutions, LLC                                   -
  Southern Electric Generating Company                                   273
  Southern Electric Railroad Company                                      16
  Southern Management Development, Inc.                                4,340
  Southern Nuclear Operating Company, Inc.                           180,035
  Southern Power Company                                             147,623
  Southern Company Gas, LLC                                          134,543
                                                                 -----------

      TOTAL PAYMENTS                                               2,661,017
                                                                 ===========

The major portion of the above expenses consists of Energy Marketing, Southern  
Gas Billing (SGB) and Southern Gas Financial (SGF) services;  transactions      
relating to third party payroll payments; and transactions relating to Electric 
Power Research Institute dues.                                                  

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                                                                            9                                
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                             
                ------------------------------------------------                                             

                      For the Year Ended December 31, 2004                                                   
                      ------------------------------------                                                   
                             (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                                                      9,476             8,239        17,715 

Total amount billed during current year as follows:                                                          

Associated Companies                                                                                         

    The Southern Company                                                  (3)              (19)          (22)
    Alabama Power Company                                             (2,660)           (2,212)       (4,872)
    Georgia Power Company                                             (3,476)           (2,753)       (6,229)
    Gulf Power Company                                                  (877)             (693)       (1,570)
    Mississippi Power Company                                         (1,018)             (870)       (1,888)
    Savannah Electric and Power Company                                 (232)             (202)         (434)
    Southern Electric Railroad Company                                   (81)             (170)         (251)
    Southern Company Energy Solutions, LLC                                 -                 -             - 
    Southern Company Gas, LLC                                           (401)             (348)         (749)
    Southern Company Holdings, Inc.                                      (11)              (82)          (93)
    Southern Electric Generating Company                                (125)             (113)         (238)
    Southern Nuclear Operating Company, Inc.                               -                 -             - 
    Southern Company Rail Services                                      (333)             (226)         (559)
    Southern Power Company                                              (209)             (170)         (379)
    Alabama Synfuel Energy                                               (29)             (361)         (390)
    Energy Related Activities                                            (21)              (20)          (41)
                                                                  ----------       -----------    ---------- 

        Subtotal Associate Companies                                  (9,476)           (8,239)      (17,715)
                                                                  ----------         ---------    ---------- 

Non-Associated Companies:                                                  -                 -             - 
                                                                  ----------      ------------    ---------- 

        Subtotal Associate and Non-associate Companies                (9,476)           (8,239)      (17,715)
                                                                  ----------      ------------    ---------- 

        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 - 2,069; Expenses                             
         - 2,106; Total - 4,175.                                                                             

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                                                                                                 10
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                   
                                -------------------------------                                    
                      For the Year Ended December 31, 2004                                         
                                         -----------------                                         
                             (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, 2004                                                                    
                                        -----------------                                                                     
                             (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                        4                    39                        
        Assets Held for Sale                                                   -                    (4)                       
        Accounts Payable Suspense                                              -                    (2)                       
        Payroll                                                                -                 6,771                        
        Miscellaneous                                                          -                   803                        
        Intercompany Derivative-Current-SOCO                               1,033                   454                        
                                                                        --------              --------                        

          Total                                                            1,037                 8,061                        
                                                                        ========              ========                        

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                                                                                                        12            

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                      
                                 --------------------------------                                                     
                      For the Year Ended December 31, 2004                                                            
                                         ----------------                                                             
                             (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.                                                                              

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

                                                                                                                      
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS                                                                           

    Prepaid Telecom Services                                                  4,492                           -       

    Deferred Payroll Charge                                                   9,547                           -       

    Deposit for Georgia Sales and Use Tax                                        26                          26       

    Executive Stock Option Taxes                                                175                          96       

    Associate Co. Early Retirement Plans                                          -                      17,975       

    Wilsonville Clean-up                                                         91                           -       

    Intangible Asset - Minimum Pension Obligation                            15,010                      15,211       

    Intercompany Derivative - Fair Value Hedge                                    -                         318       

    Transmission Service Deposits                                                 -                         351       

    Unamortized Leasehold - Inverness                                           185                         742       

    Unamortized Leasehold - Washington, DC                                      237                         200       

    Sundry Delayed Clearance                                                  4,247                       2,004       
                                                                           --------                    --------       

    Total                                                                    34,010                      36,923       
                                                                            =======                    ========       

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                                                                                                                   13  
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                       

                      For the Year Ended December 31, 2004                                                             
                             (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                                                          35,104                  

Total amount billed/incurred during current year as follows:                                                           

Government Projects:                                                                                                   
    PSDF / Hot Gas Cleanup Project                                                            (22,842)                 

EPRI Projects:                                                                                                         
    RE&A EPRI Contracts                                                                          (959)                 
    Engineering EPRI Projects                                                                    (391)                 
    EPRI Bulk Trans. System Reliability                                                           (12)                 

Associate Companies:                                                                                                   
    End-Use Research Projects                                                                  (1,435)                 
    Power Delivery Research-Overhead Transmission                                                (373)                 
    Power Delivery Research-Transmission Substations                                             (510)                 
    Power Delivery Research-Distribution                                                         (485)                 
    Air Quality Studies                                                                          (224)                 
    Combustion & Fuel Effects                                                                    (855)                 
    Research Administration                                                                      (359)                 
    Flue Gas Treatment                                                                         (1,577)                 
    Advanced End-Use Technology Research                                                       (2,026)                 
    Advanced Energy Systems                                                                    (2,011)                 
    Thermal & Fluid Sciences                                                                     (994)                 
    R&D Tech Econ Assessments                                                                     (51)                 
                                                                                          -----------                  

TOTAL AMOUNT BILLED/INCURRED                                                                  (35,104)                 
                                                                                          -----------                  

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

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                                                                                                14                       

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                         

                      For the Year Ended December 31, 2004                                                               
                             (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                                          (25,725)                                 
                                                                                --------                                 
TOTAL                                                                           (25,575)                                 

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.                                              
                                                                [Download Table]


                           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                                                (24,850)
                                                                         ======= 

( ) Denotes red figure.                                                          

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                                                                                                                         15        

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                                   

                      For the Year Ended December 31, 2004                                                                         
                             (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  

DERIVATIVE                                                                                                                         
Fair Value Hedge             Notional Amount                                                                                       
                             ---------------  12/15/2009    Fixed:  7.625%                                                         
                                 40,000       Floating:   6-month Libor + 2.92%            787           -          47        740  

CAPITAL LEASE *                                                                                                                    
-------------                                                                                                                      
GATX Technology Services             01/31/06 - 11/30/08   4.33 - 5.29   22,204          9,615       6,213       5,645     10,183  
IR Mainframe                         07/31/03 - 04/30/07   5.00 - 8.00    9,865            639       1,268       1,257        650  
Pacific Rim                          1/31/08 - 11/30/08    4.33 - 5.28    3,751             -        3,751         756      2,995  
                                                                         ------        -------     -------     -------     ------  

    TOTAL                                                                75,820         51,041      11,232       7,705     54,568  
                                                                         ======        =======     =======     =======     ======  

1/    GIVE AN EXPLANATION OF DEDUCTIONS:  Amounts shown were transferred to current maturities, with the exception of the Fair     
-                                         Value Hedge.                                                                             

* 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, 2004                                                                        
                                         -----------------                                                                        
                             (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                                                       -                             -                    
    Alabama Power Company                                                 31,787                        44,274                    
    Georgia Power Company                                                 14,354                         5,983                    
    Gulf Power Company                                                     9,328                        15,696                    
    Mississippi Power Company                                              2,251                           658                    
    Savannah Electric and Power Company                                       77                            98                    
    Southern Communications Services, Inc.                                   397                           357                    
    Southern Company Gas, LLC                                              3,581                            60                    
    Southern Electric Generating Company                                       -                             -                    
    Southern Management and Development                                       62                            16                    
    Southern Nuclear Operating Company, Inc.                                   -                             -                    
    Southern Power Company                                                   149                           701                    
                                                                        --------                      --------                    
        TOTAL                                                             61,986                        67,843                    
                                                                        ========                      ========                    

ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES                                                                       

    Incentive Pay (PPP)                                                   81,613                        83,216                    
    Vacation Clearing Account                                             20,158                        21,108                    
    Accrued Labor & Related Overheads                                     12,050                         6,022                    
    Employee Group Insurance Premiums                                      1,001                           328                    
    Employee Group Insurance Claims Reserve                                2,800                         2,396                    
    Early Retirement Benefits                                              1,070                         1,192                    
    Accumulated Provision for Major Overhaul                                                                                      
        of Aircraft                                                          423                           433                    
    Supplemental Pensions and Benefits                                     6,208                         5,648                    
    Department of Energy                                                     509                           543                    
    Flex and Save Benefits                                                 2,042                         1,922                    
    Severance Pay                                                          9,668                         2,637                    
    Metro Life Advance-Current                                               301                           301                    
    Merrill Lynch Investment Management                                        -                           725                    
    Performance Dividend Plan                                             21,817                        18,909                    
    TPO Study                                                                371                           114                    

(Continued on Page 16A)                                                                                                           

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                                                                                                        16A                       
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                                  
                                -------------------------------                                                                   
                      For the Year Ended December 31, 2004                                                                        
                                         ----------------                                                                         
                             (Thousands of Dollars)                                                                               

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

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

    SCS - U.S. Savings Bonds Withholdings                                     196                             28                  
    Funds Dist-Holders SE P&L Corp.                                            13                             13                  
    SCS-FLEX Benefits Premiums                                              2,218                          2,575                  
    Washington DC Sublease Deposit -                                                                                              
      Aircraft Owners & Pilots Assoc.                                          37                             19                  
    Washington DC Sublease Deposit -                                                                                              
      Crown                                                                    17                             17                  
    Associate Companies - Employee Savings Plan                                29                          6,934                  
    SCS - Employee Savings Plan                                                 -                          1,336                  
    Associate Companies - Legal Withholding                                     -                            219                  
    SCS - Legal Withholding                                                     -                             15                  
    Associate Companies - Credit Union Withholding                              -                          2,965                  
    SCS - Credit Union Withholding                                              -                            484                  
    Associate Companies - Personal Lines Coverage                               -                             95                  
    SCS - Personal Lines Coverage                                               -                             14                  
    SNC - Merchandise Withholding                                               -                             25                  
    APC - PAC Federal / State Withholding                                       -                             28                  
    SCS - Parking Fees Withholding                                              -                             20                  
    SCS - PAC Federal / State Withholding                                       -                             17                  
    Bank Fee                                                                    -                            857                  
    SCS - Miscellaneous                                                         -                            295                  
    SCS - Workers Compensation Claim-Reserve                                    -                            300                  
    Cost Center variance                                                        -                            500                  
    Deferred Compensation Plan-Current                                          -                          4,118                  
    Hewitt Consulting                                                           -                            280                  
    Miscellaneous (23 Beginning) (43 Ending)                                  (64)                            66                  
                                                                        ---------                     ----------                  

        TOTAL                                                             162,477                        166,714                  
                                                                        =========                     ==========                  


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                                                                  17

ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                   -----------------
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,
  ("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 temporary cash investments with original  
maturities of 90 days or less to be cash equivalents.           

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, 2004
                  ------------------
SCHEDULE XIV
------------

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

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: retail operating
   companies (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 Wireless) (provides digital
      wireless communications services to the retail operating companies and
the public in the Southeast); Southern Company Energy Solutions 
   (develops new business opportunities related to energy products and
    services); Southern Nuclear Operating Company (operates and provides
       services to Southern Company's nuclear power plants); Southern Electric
    Railroad Company (provides railroad services to the retail operating
 companies); Southern Power Company (constructs, owns, and manages
      Southern Company's competitive generation 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, synthetic fuels, and various other energy related
       businesses); and Southern Company Gas (a competitive retail natural gas
marketer serving Georgia).                                      

       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 covering
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. 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, 2004                                               
                                        -------------------                                              

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

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

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

The accumulated benefit obligation for the pension plans was $709 million in                             
2004 and $644 million in 2003. Changes during the year in the projected benefit                          
obligations, accumulated benefit obligations, and in the fair value of plan                              
assets were as follows: (in thousands)                                                                   

                                                                 Projected Benefit Obligations           
                                                                 -------------------------------         
                                                                 2004                        2003        
                                                                 -----                      ------       

                                                                                                         
        Balance at beginning of year                              709,141                   644,991      
        Service cost                                               22,615                    20,970      
        Interest cost                                              42,018                    41,393      
        Benefits paid                                             (26,523)                  (24,682)     
        Plan amendments                                             1,850                     1,719      
        Actuarial (gain) loss                                      54,341                    24,750      
                                                                 --------                  --------      
        Balance at end of year                                    803,442                   709,141      
                                                                 ========                  ========      

                                                                         Plan Assets                     
                                                              --------------------------------------     
                                                                  2004                       2003        
                                                               ----------                 ----------     

        Balance at beginning of year                              666,651                   609,745      
        Actual return on plan assets                               87,819                    97,620      
        Employer contributions                                      4,175                     4,855      
        Benefits paid                                             (26,523)                  (24,682)     
        Receivables/Payables due to transfers                     (22,588)                  (20,887)     
                                                                ---------                 ---------      
        Balance at end of year                                    709,534                   666,651      
                                                                =========                 =========      

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

                                                                  2004                       2003        
                                                               ----------                 ----------     

        Funded status                                             (93,908)                  (42,490)     
        Unrecognized transition obligation                         (2,380)                   (3,666)     
        Unrecognized prior service cost                            49,156                    52,197      
        Unrecognized net (gain) loss                               67,366                    20,007      
                                                                ---------                 ---------      
        Prepaid asset, net                                         20,234                    26,048      
        Portion included in benefit obligations                    31,759                    27,254      
                                                                ---------                 ---------      
        Total prepaid assets recognized                                                                  
            in the Balance Sheet                                   51,993                    53,302      
                                                                =========                 =========      

In 2004 and 2003, amounts recognized in the Balance Sheets for accumulated other                         
comprehensive income and intangible assets to record the minimum pension                                 
liability related to the non-qualified plans were $40 million and $30 million                            
and $15 million and $15 million, respectively.                                                           

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                                                                                                                   17C             
                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                             
                                                       ------------------------------                                              
                                            For the Year Ended December 31, 2004                                                   
                                                               -----------------                                                   
                                                        SCHEDULE XIV                                                               
                                                        --------------                                                             
                                                NOTES TO FINANCIAL STATEMENTS                                                      
                                                ------------------------------                                                     

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

                                                                      2004               2003              2002                    
                                                                  -----------         ----------        ----------                 

                                                                                                                                   
        Service cost                                                 22,615              20,970           18,931                   
        Interest cost                                                42,018              41,393           41,922                   
        Expected return on plan assets                              (59,045)            (60,508)         (59,841)                  
        Recognized net (gain) loss                                      823              (4,069)          (8,450)                  
        Net amortization                                              3,687               3,581            2,608                   
                                                                 ----------           ---------        ---------                   
        Net pension cost (income)                                    10,098               1,367           (4,830)                  
                                                                 ==========           =========        =========                   

Future benefit payments reflect expected future service and are estimated based on assumptions used to measure the projected       
benefit obligation for the pension plans.  At December 31, 2004, estimated benefit payments were as follows:  (In Thousands)       

        200                     526,672                                                                                            
        2006                    27,694                                                                                             
        2007                    29,251                                                                                             
        2008                    31,060                                                                                             
        2009                    33,036                                                                                             
        2010 to 2014           220,912                                                                                             

Postretirement Benefits                                                                                                            
-----------------------                                                                                                            

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

                                                                 Accumulated Benefit Obligations                                   
                                                                 -------------------------------                                   
                                                                  2004                       2003                                  
                                                               ----------                 ----------                               

        Balance at beginning of year                              163,586                   154,494                                
        Service cost                                                3,386                     3,192                                
        Interest cost                                               9,334                     9,880                                
        Benefits paid                                              (8,083)                   (6,912)                               
        Actuarial (gain) loss                                      10,553                     2,932                                
                                                                ---------                ----------                                
        Balance at end of year                                    178,776                   163,586                                
                                                                =========                 =========                                

                                                                                 Plan Assets                                       
                                                               --------------------------------------                              
                                                                  2004                       2003                                  
                                                               ----------                 ----------                               

        Balance at beginning of year                               28,831                    24,792                                
        Actual return on plan assets                                4,059                     4,064                                
        Employer contributions                                      8,083                     6,887                                
        Benefits paid                                              (8,083)                   (6,912)                               
                                                               ----------                 ---------                                
        Balance at end of year                                     32,890                    28,831                                
                                                               ==========                 =========                                

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                                                                                                17D 

                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.              
                                                        ------------------------------              
                                            For the Year Ended December 31, 2004                    
                                                               -----------------                    
                                                        SCHEDULE XIV                                
                                                        -------------                               
                                                NOTES TO FINANCIAL STATEMENTS                       
                                                ------------------------------                      

The accrued postretirement costs recognized in the Balance Sheets are as follows:  (in thousands)   

                                                                  2004                       2003   
                                                               ----------                 ----------

                                                                                                    
        Funded status                                            (145,885)                 (134,755)
        Unrecognized transition obligation                          3,338                     3,743 
        Unrecognized prior service cost                            21,321                    22,878 
        Unrecognized net (gain) loss                               34,132                    24,737 
        Fourth quarter contributions                                1,824                     1,526 
                                                                ---------                 --------- 
        Accrued liability recognized in the                                                         
          Balance Sheet                                           (85,270)                  (81,871)
                                                                =========                 ========= 
                                                        [Enlarge/Download Table]


Components of the plan's net periodic cost were as follows:  (in thousands)                           

                                                                      2004        2003         2002   
                                                                  -----------  ----------   ----------

                                                                                                      
        Service cost                                                  3,386        3,192       2,722  
        Interest cost                                                 9,334        9,880       9,116  
        Expected return on plan assets                               (2,775)      (2,598)     (2,517) 
        Net amortization                                              2,249        2,169       1,811  
                                                                   --------    ---------   ---------  
        Net postretirement cost                                      12,194       12,643      11,132  
                                                                   ========    =========   =========  

In the third quarter 2004, the Company prospectively adopted FASB               
Staff Position (FSP) 106-2, Accounting and Disclosure Requirements related to   
the Medicare Prescription Drug, Improvement, and Modernization Act of 2003      
(Medicare Act). The Medicare Act provides a 28 percent prescription drug subsidy
for Medicare eligible retirees. FSP 106-2 requires recognition of the impacts of
the Medicare Act in the accumulated postretirement benefit obligation (APBO) and
future cost of service for postretirement medical plan. The effect of the       
subsidy reduced the Company expenses for the six months ended                   
December 31, 2004 by approximately $.9 million and is expected to have a similar
impact on future expenses. The subsidy's impact on the postretirement medical   
plan APBO was a reduction of approximately $18.2 million.                       

Future benefit payments, including prescription drug benefits, reflect expected 
future service and are estimated based on assumptions used to measure the       
accumulated benefit obligation for the postretirement plans. Estimated benefit  
payments are reduced by drug subsidy receipts expected as a result of the       
Medicare Act as follows: (in thousands)                                         

                                                                [Download Table]


                                   Benefit            Subsidy                 
                                    Payments          Receipts           Total
                                    --------          --------           -----

                                                                              
2005                                   7,206                -          7,026  
2006                                   7,765             (815)         6,950  
2007                                   8,709             (926)         7,783  
2008                                   9,572           (1,027)         8,545  
2009                                  10,351           (1,120)         9,231  
2010 to 2014                          64,365           (7,103)        57,262  

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                                                                                                17E      
                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                   
                                                       ------------------------------                    
                                            For the Year Ended December 31, 2004                         
                                                                ----------------                         
                                                        SCHEDULE XIV                                     
                                                        -------------                                    
                                                NOTES TO FINANCIAL STATEMENTS                            
                                                ------------------------------                           

The weighted average rates assumed in the actuarial calculations used to                                 
determine both the benefit obligations and net periodic costs for the pension                            
and postretirement benefits plans were:                                                                  

                                                                    2004                2003       2002  
                                                                  -------             --------   --------

                                                                                                         
        Discount                                                    5.75%              6.00%      6.50%  
        Annual salary increase                                      3.50%              3.75%      4.00%  
        Long-term return on plan assets                             8.50%              8.50%      8.50%  

        An additional assumption used in measuring the accumulated                                       
        postretirement benefit obligation was a weighted average medical care                            
        cost trend rate of 11 percent for 2004 decreasing gradually to 5 percent                         
        through the year 2012 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, 2004 as follows: (in                                
        thousands)                                                                                       

                                                       1 Percent        1 Percent                        
                                                        Increase         Decrease                        
                                                      -----------       ----------                       
        Benefit obligation                                13,479           10,645                        
        Service and interest costs                           842              729                        

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 2004, 2003, and                            
        2002 were $10 million, $9 million, and $10 million, respectively.                                

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

        The Company has incurred additional costs for work force reduction                               
        programs. The costs related to these programs were $3 million, $17                               
        million, and $11 million for 2004, 2003, and 2002, respectively. These                           
        costs were charged to expense.                                                                   

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

        The Company has operating lease agreements with various terms and                                
        expiration dates. Rental expense under all operating leases was                                  
        approximately $45,234,777, $51,977,000, and $61,478,000 in 2004, 2003,                           
        and 2002, respectively. Future minimum lease payments under                                      
        non-cancelable operating leases at December 31, 2004 were as follows:                            
        (in thousands)                                                                                   

            2005                        15,216                                                           
            2006                         9,715                                                           
            2007                         8,284                                                           
            2008                         7,308                                                           
            2009                         7,349                                                           
            Thereafter                  56,720                                                           
                                     ---------                                                           
             Total                     104,592                                                           
                                     =========                                                           


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                                                                                        17F                             

                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                  
                                                       ------------------------------                                   
                                            For the Year Ended December 31, 2004                                        
                                                                -----------------                                       
                                                        SCHEDULE XIV                                                    
                                                        -------------                                                   
                                                NOTES TO FINANCIAL STATEMENTS                                           
                                                ------------------------------                                          
5.      FINANCING                                                                                                       
        ---------                                                                                                       

        Details of long-term debt, notes payable - other, and derivatives at December 31 are as follows:  (in thousands)

                                                                                  2004             2003                 
                                                                                --------         -------                
                                                                                                                        
        Notes Payable:                                                                                                  
           7.625% Due 2009                                                       40,000            40,000               
           7.25% Due 2004                                                             -             1,512               
           Less Current Maturities                                                    -            (1,512)              
                                                                               --------         ---------               
           Long-Term Notes Payable                                               40,000            40,000               
                                                                               --------          --------               

        Derivative:                                                                                                     
           Fair Value Hedge -                                                                                           
               6 Month LIBOR + 2.92% on $40                                         740               787               
               million nominal amount due 2009                                                                          
           Less Current Maturities                                                    -                 -               
                                                                              ---------          --------               
           Long-Term Derivative                                                     740               787               
                                                                              ---------          --------               

        Capitalized Lease Obligations:                                                                                  
           Total Capitalized Leases                                              22,294            16,773               
           Less Current Maturities                                               (8,466)           (6,519)              
                                                                              ---------         ---------               
           Long-Term Capitalized Leases                                          13,828            10,254               
                                                                               --------          --------               

        Total Long-Term Debt                                                     54,568            51,041               
                                                                               ========          ========               

        On December 15, 1999, the Company 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. Southern Company has guaranteed the principal and interest. In                                            
        2003, the Company entered into a derivative to hedge exposure to                                                
        interest rate changes related to this note. The derivative is accounted                                         
        for as a fair value hedge and was structured to match the critical terms                                        
        of the hedged debt; therefore, no ineffectiveness has been recorded in                                          
        earnings. The Company receives the fixed rate of 7.625% and pays                                                
        six-month LIBOR plus 2.92%. As a result, interest of $916,593 was                                               
        credited against the client companies' expenses during the year ended                                           
        December 31, 2004.                                                                                              

        Maturities over the next five years of the Company's long-term debt                                             
        outstanding at December 31, 2004 are as follows: (in thousands)                                                 

               2005                         8,466                                                                       
               2006                         7,429                                                                       
               2007                         4,710                                                                       
               2008                         1,689                                                                       
               2009                        40,740                                                                       
               Thereafter                    -                                                                          
                                          -------                                                                       
               Total                       63,034                                                                       
                                          =======                                                                       

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

        The Company has various purchase commitments. At December 31, 2004,                                             
        total capital expenditures are budgeted to be approximately $32 million                                         
        in 2005.                                                                                                        

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                                                                                                   18
                                   ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                  
                                                    -------------------------------                  
                                         For the Year Ended December 31, 2004                        
                                                            -----------------                        
                                                (Thousands of Dollars)                               

                                SCHEDULE XV                                                          
                                                      -------------                                  
                                                  STATEMENT OF INCOME                                
                                                  --------------------                               

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

          INCOME                                                                                     
          ------                                                                                     

                                                                                                     
   457       Services rendered to associate companies                       819,610       823,065    
   458       Services rendered to non-associate                                                      
                 companies                                                   32,162        33,231    

   421       Miscellaneous income or loss                                     3,222         1,602    
                                                                          ---------     ---------    

                    Total Income                                            854,994       857,898    
                                                                          ---------     ---------    

          EXPENSE                                                                                    
          -------                                                                                    

   920       Salaries and wages                                             364,733       374,710    
   921       Office supplies and expenses                                    74,625        88,935    
   922       Administrative expense transferred-credit                            -             -    
   923       Outside services employed                                      157,239       143,182    
   924       Property insurance                                              16,151        20,014    
   925       Injuries and damages                                            18,387        13,852    
   926       Employee pensions and benefits                                  54,212        44,805    
   928       Regulatory commission expense                                        -            23    
   930.1     General advertising expenses                                    12,680        13,675    
   930.2     Miscellaneous general expenses                                   9,830        12,183    
   931       Rents                                                           51,311        54,411    
   932       Maintenance of structures and equipment                         34,637        34,648    
   403       Depreciation and amortization expense                           19,843        22,488    
   408       Taxes other than income taxes                                   30,575        24,545    
   409       Income taxes                                                       648          (125)   
   410       Provision for deferred income taxes                                  -             -    
   411       Provision for deferred income taxes - credit                         -             -    
   411.5     Investment tax credit                                                -             -    
   426.1     Donations                                                        6,102         5,705    
   426.5     Other deductions                                                     -             -    
   427       Interest on long-term debt                                       2,114         2,842    
   430       Interest on debt to associate companies                             54           321    
   431       Other interest expense                                           1,853         1,684    
                                                                          ---------     ---------    

                    Total Expense                                           854,994       857,898    
                                                                          ---------     ---------    

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

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                                                                                                19           

                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                       
                                                       ------------------------------                        
                                            For the Year Ended December 31, 2004                             
                                                                ---------------                              
                                                   (Thousands of Dollars)                                    

                               ANALYSIS OF BILLING                                                           
                                                     ------------------                                      
                                                     ASSOCIATE COMPANIES                                     
                                                         ACCOUNT 457                                         

                                               DIRECT          INDIRECT         COMPENSATION        TOTAL    
                                               COSTS           COSTS            FOR USE             AMOUNT   
NAME OF ASSOCIATE COMPANY                      CHARGED         CHARGED          OF CAPITAL          BILLED   
-------------------------                      -------         -------          ------------------  ---------
                                                                                                             
                                               457-1           457-2            457-3                        

The Southern Company                             45,248          7,485                 206           52,939  

Alabama Power Company                           171,065         52,008               1,080          224,153  

Georgia Power Company                           224,971         65,802               1,382          292,155  

Gulf Power Company                               42,295         13,309                 266           55,870  

Mississippi Power Company                        34,932         10,149                 225           45,306  

Savannah Electric & Power Co.                    13,608          3,703                  81           17,392  

Southern Communications Serv., Inc.              14,534          1,367                  32           15,933  

Southern Company Energy                                                                                      
  Solutions, LLC                                  1,465            323                  11            1,799  

Southern Company Gas, LLC                         9,491          3,266                  96           12,853  

Southern Company Holdings, Inc.                   1,026            255                   8            1,289  

Southern Company Rail Services                    1,185            289                   6            1,480  

Southern Electric Generating Co.                  2,967            803                  17            3,787  

Southern Electric Railroad Co.                      315             81                   2              398  

Southern Management                                                                                          
  Development, Inc.                                 809            167                   6              982  

Southern Nuclear Operating Co.                   32,874          8,653                 187           41,714  

Southern Power Company                           34,495         11,869                 301           46,665  

Southern Telecom, Inc.                            1,155            341                   8            1,504  

SE Finance Capital Corporation II                 2,633              -                   8            2,641  

Alabama Synfuel Energy                              516              -                   1              517  

Energy Related Activities                            72              -                   -               72  

Synfuel Services                                     28              -                   -               28  

SOCO Electrotechnologies                            115              -                   -              115  

Southern Company Capital Funding                     18              -                   -               18  
                                                 -------       -------               ------          ------- 

          TOTAL                                  635,817       179,870               3,923           819,610 
                                                 =======       =======               ======          ======= 

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                                                                                                                20    
                                               ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                       
                                                                -------------------------------                       
                                                     For the Year Ended December 31, 2004                             
                                                                        -----------------                             
                                                            (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)                      19,487         3,277            79        22,843      -        22,843 
Electric Power Research Institute                1,217           142             3         1,362      -         1,362 
APC Credit Union                                    28             -             -            28      -            28 
Gulf Power Credit Union                             11             -             -            11      -            11 
GE Power Systems                                    13             -             -            13      -            13 
AT & T                                              12             -             -            12      -            12 
Southern Interexchange                              13             -             -            13      -            13 
Georgia Charitable Foundation                        7             -             -             7      -             7 
Southern System Master Retirement Trust          1,136             -            13         1,149      -         1,149 
POWERCO                                             19             -             -            19      -            19 
FP&L; JEA; Tallahassee, FPC (Unit Power Sales)      43            33             1            77      -            77 
FP&L; JEA, Tallahassee, FPC(OPS SCH. Fees)       1,798             -             -         1,798      -         1,798 
Oglethorpe Power Corporation (OPS SCH. Fees)     4,167             -             -         4,167      -         4,167 
SERC IR & Telecommunications Serv-APC Bldg          19             -             -            19      -            19 
Alabama Electric Cooperative                        14             6             -            20      -            20 
Duke Energy Services                                 8             3             -            11      -            11 
Municipal Electric Authority of Georgia             15             6             -            21      -            21 
Oglethorpe Power Corporation                        43            19             -            62      -            62 
South Mississippi Electric Power                    10             4             -            14      -            14 
Southeastern Electric Power Administration           5             2             -             7      -             7 
Transmission - Studies (81 items)                  395            86             2           483      -           483 
Mirant                                               5             2             -             7      -             7 
Other (17 items less than $5,000)                   18             1             -            19      -            19 
                                               -------        -------        -----       -------   ------     ------- 

     TOTAL                                      28,483         3,581            98        32,162      -        32,162 
                                               =======        ======         =====       =======   ======     ======= 

(Continued on 20A)                                                              

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                                                                   20A

ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                 -----------------
(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.      

Electric Power Research Institute - Biomass gasification; Clyde Bergermann  
smartcannon demonstration; Demonstration carbon in ash monitor; Emission and
performance impacts of CT inlet fogging; Improved power plant dynamics      
performance; Gadsden switchgrass project; Hammond agglomeration; Indiglo    
agglomeration project; Gorgas SCR pilot plant; RTHR package demonstration;  
Switchgrass pellet project; Slag sensor demo; Evaluation of mercury control 
options; Testing SNCR pilot; Geochemical modeling study; Beryllium chemical 
profile; Biloxi MGP ROAM modeling study; Insti chemical fixation; WET ESP   
Demonstration; Hybrid ION exchange resin evaluation; Testing of ROAM model; 
Metals sequestration in ash; Phytoremediation of arsenic contaminated soil; 
  Evaluation of the validity of the remedial options assessment; Athens sediment
study; Technology review for arsenic at substation sites; TRELLSS-bulk      
transmission study reliability evaluation.                                  

APC Credit Union, Gulf Credit Union, GE Power Systems, POWERCO -            
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.                

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, Duke Energy Svcs; MEAG, OPC, S. Miss Elec Pwr., SEPA -  
Southeastern Electric Reliability Council (SERC) security coordinator.      

Transmission-Studies - Studies to determine impact of and availability to   
third party wholesale usage of transmission lines.                          

Mirant - Various engineering and technical services.                        

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                                                                                                                               21  

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

                                                         For the Year Ended December 31, 2004                                      
                                                                            ------------------                                     
                                                                 (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              342,345     14,838   357,183     7,364        186       7,550     349,709    15,024   364,733
921   OFFICE SUPPLIES & EXPENSES       60,872      8,575    69,447     4,979        199       5,178      65,851     8,774    74,625
922   ADMINISTRATIVE EXP.                                                                                                          
       TRANSFERRED-CREDIT                   -          -         -         -          -           -           -         -         -
923   OUTSIDE SERVICES EMPLOYED       141,804      5,020   146,824    10,244        171      10,415     152,048     5,191   157,239
924   PROPERTY INSURANCE               15,604        318    15,922       221          8         229      15,825       326    16,151
925   INJURIES AND DAMAGES             17,955        416    18,371         2         14          16      17,957       430    18,387
926   EMPLOYEE PENSIONS                                                                                                            
       & BENEFITS                      10,438     42,869    53,307         -        905         905      10,438    43,774    54,212
928   REGULATORY COMMISSION                                                                                                        
       EXPENSE                              -          -         -         -          -           -           -         -         -
930.1 GENERAL ADVERTISING                                                                                                          
       EXPENSES                        12,680          -    12,680         -          -           -      12,680       -      12,680
930.2 MISCELLANEOUS GENERAL                                                                                                        
       EXPENSES                       (66,922)    69,691     2,769     5,513      1,548       7,061     (61,409)   71,239     9,830
931   RENTS                            36,324     14,896    51,220        33         58          91      36,357    14,954    51,311
932   MAINTENANCE OF STRUCTURES                                                                                                    
       AND EQUIPMENT                   32,501      2,090    34,591        28         18          46      32,529     2,108    34,637
403   DEPRECIATION & AMORTIZATION                                                                                                  
       EXPENSE                         17,553      2,284    19,837        (2)         8           6      17,551     2,292    19,843
408   TAXES OTHER THAN INCOME                                                                                                      
       TAXES                           11,139     18,869    30,008       101        466         567      11,240    19,335    30,575
409   INCOME TAXES                        648          -       648         -          -           -         648         -       648
410   PROVISION FOR DEFERRED                                                                                                       
       INCOME TAXES                         -          -         -         -          -           -           -         -         -
411   PROVISION FOR DEFERRED                                                                                                       
       INCOME TAXES CREDIT                  -          -         -         -          -           -           -         -         -
411.5 INVESTMENT TAX CREDIT                 -          -         -         -          -           -           -         -         -
426.1 DONATIONS                         6,098          4     6,102         -          -           -       6,098         4     6,102
                                      --------   -------   -------     -----      -----      ------     -------   -------   -------
        SUBTOTAL EXPENSES             639,039    179,870   818,909     28,483     3,581      32,064     667,522   183,451   850,973

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                                                                                                                     21A        

                                        ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                                         -------------------------------                                        
                                                  For the Year Ended December 31, 2004                                          
                                                                     -----------------                                          
                                                             (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        -           -      2,062         -           -        52           -         -    2,114 
430   INTEREST ON DEBT TO                                                                                                       
       ASSOCIATE COMPANIES              -           -         53         -           -         1           -         -       54 
431   OTHER INTEREST EXPENSE            -           -      1,808         -           -        45           -         -    1,853 
                                  --------    -------   --------    ------       -----    -------    -------   -------  --------
        TOTAL EXPENSES             639,039    179,870    822,832    28,483       3,581    32,162     667,522   183,451  854,994 
421   MISCELLANEOUS GAIN            (3,222)         -     (3,222)        -           -         -     (3,222)         -   (3,222)
                                  --------    -------   --------    -------     ------    ------    --------  -------   ------- 
        TOTAL COST OF SERVICES     635,817    179,870    819,610    28,483       3,581    32,162     664,300   183,451  851,772 
                                  ========    =======   ========   =======      ======    ======    ========  ========  ======= 


( ) Denotes Red Figure.                                                         

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                                                                                                                              22   
                                               ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                    
                                                                ------------------------------                                     
                                                     For the Year Ended December 31, 2004                                          
                                                                        -----------------                                          
                                                        (Thousands of Dollars)                                                     

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

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

INSTRUCTION:   Indicate each department or service function.  (See Instruction 01-3 General Structure of Accounting System: Uniform
               System Account)                                                                                                     
                                                  Administration                                                          Finance  
                                          Total       and      Corporate   Customer                           External      and    
        DESCRIPTION OF ITEMS              Amount    General     Counsel     Service   Engineering  Executive   Affairs   Accounting
        --------------------              ------   ----------   --------   --------   -----------  ---------   -------   ----------
                                                                                                                                   
920    SALARIES AND WAGES                  364,733     9,420     9,394       6,924      89,931       6,195      8,780     23,789   
921    OFFICE SUPPLIES AND EXPENSES        74,625      2,689       886      14,421      10,041         118      1,881      5,508   
923    OUTSIDE SERVICES EMPLOYED          157,239      9,238    25,137       6,770      24,690         535      6,340      8,936   
924    PROPERTY INSURANCE                  16,151        893         -           -           -           -          -     15,081   
925    INJURIES AND DAMAGES                18,387        815         -           -           4           -          -     17,558   
926    EMPLOYEE PENSIONS & BENEFITS        54,212     53,965         3           9          74          14         29         15   
930.1  GENERAL ADVERTISING EXPENSES        12,680          -         -           -           -           -     12,309         42   
930.2  MISCELLANEOUS GENERAL EXPENSES       9,830     (5,650)      567         424       4,422         852      3,019      1,333   
931    RENTS                               51,311     24,037       133         110       3,205          57          9         18   
932    MAINTENANCE OF STRUCTURES & EQUIP   34,637      2,119       100         743         839          25         16        170   
403    DEPRECIATION & AMORTIZATION,                                                                                                
         EXPENSE                           19,843      1,635        54       1,492       1,037          15         50         72   
408    TAXES OTHER THAN INCOME TAXES       30,575     30,565         -           -           -           -          -          -   
409    INCOME TAXES                           648        648         -           -           -           -          -          -   
426.1  DONATIONS                            6,102        140       157           3          18         997      4,062         41   
427    INTEREST ON LONG-TERM DEBT           2,114      1,747         -           -           -           -          -          -   
430    INTEREST ON DEBT TO ASSOCIATE CO.       54         54         -           -           -           -          -          -   
431    OTHER INTEREST EXPENSE               1,853        831         -           -           -           -          -          -   
                                         --------   --------   -------     -------    --------     -------    -------    --------  
         TOTAL EXPENSES                   854,994    133,146    36,431      30,896     134,261       8,808     36,495     72,563   

421    MISCELLANEOUS LOSS (GAIN)           (3,222)    (3,222)        -          -           -            -          -          -   
                                         --------   --------   -------     ------    --------      -------    -------   --------   

       TOTAL COSTS                        851,772    129,924    36,431      30,896     134,261       8,808     36,495     72,563   
                                         ========   ========   =======     =======    ========     =======    =======    =======   

(  ) Denotes Red Figure.                                                                                                           

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                                                                                                                       22A       

                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                           
                                                       ------------------------------                                            
                                            For the Year Ended December 31, 2004                                                 
                                                               ------------------                                                
                                                   (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    Company  System   Transmission 
NUMBER      Services    Resources  Resources    Auditing   Marketing  Materials    Affairs          Gas      Air     Planning    
-------     ---------   ---------  ---------    --------   ---------  ---------- ------------   --------   -------  -------------

                                                                                                                                 
   920          34,467     24,009      85,581    6,662      9,617     5,702        12,940          6,106      5,125   20,091     
   921           4,985      2,333      19,279      699      1,033       452         6,780            283      1,518    1,719     
   923           4,622      9,678      32,347      230      3,508     1,974        19,735            435         99    2,965     
   924               -          -           -        -          -         -           221              -        (44)       -     
   925               4          -           -        -          -         -             6              -          -        -     
   926              41         20          22        1          2         2             2              1         10        2     
   930.1             2          5           -        -        114         -             1            207          -        -     
   930.2         3,656      1,955       4,165      131        581       546        (2,247)            55        272   (4,251)    
   931             258        285      22,612      126        184        81            59              2         71       64     
   932             305         88      22,491        4        284       731            70              7      4,960    1,685     
   403             671      1,181       5,278        7        949         7           526              -      3,405    3,464     
   408              17          -          (8)       -          -         -             -              -          1        -     
   409               -          -           -        -          -         -             -              -          -        -     
   426.1           279         60           2        -         25         1           310              7          -        -     
   427               -          -         367        -          -         -             -              -          -        -     
   430               -          -           -        -          -         -             -              -          -        -     
   431               -          -       1,022        -          -         -             -              -          -        -     
                ------     ------     -------    ------    ------     -----       -------         ------    -------   -------    
Total Expenses  49,307     39,614     193,158    7,860     16,297     9,496        38,403          7,103     15,417   25,739     
   421               -          -           -        -          -         -             -              -                    -    
               -------     ------    --------    ------   -------    ------      --------         ------    --------  -------    

TOTAL COSTS     49,307     39,614     193,158    7,860     16,297     9,496        38,403          7,103     15,417   25,739     
               =======     ======    ========  =======    =======    ======      ========         ======    =======   ======     

(  ) Denotes Red Figure.                                                                                                         

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                                                                                                   23
                                      ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.               
                                                      ------------------------------                 
                                              For the Year Ended December 31, 2004                   
                                                                -----------------                    
                                                        (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      9,420          (384)        10,752            (948)         -        

Corporate Counsel               9,394         3,922          5,314             158         52        

Customer Service                6,924             6          6,918               -         80        

Engineering                    89,931        10,943         73,484           5,504        805        

Executive                       6,195         1,188          5,007               -          6        

External Affairs                8,780         4,625          4,155               -         49        

Finance & Accounting           23,789        24,604         (1,619)            804        178        

Generation Services            34,467           113         34,330              24        283        

Human Resources                24,009            96         23,766             147        219        

Information Resources          85,581         1,689         82,815           1,077        922        

Internal Auditing               6,662           702          5,960               -         67        

Marketing                       9,617           757          8,860               -         75        

Procurement & Materials         5,702           150          5,101             451         62        

Research & Environmental                                                                             
  Affairs                      12,940            87        (20,885)         33,738        103        

Southern Company Gas            6,106             -          6,106               -         54        

System Air                      5,125           612          4,513               -         54        

Transmission Planning          20,091             4         19,428             659        172        
                            ---------      --------       --------         -------     ------        

      TOTAL                   364,733        49,114        274,005          41,614      3,181        
                            =========      ========       ========         =======     ======        

( ) Denotes red figure.                                                                              

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                                                                                                  24   

                        ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                               
                                        -------------------------------                                
                        For the Year Ended December 31, 2004                                           
                                                -----------------                                      
                                (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      1,243
Balch & Bingham LLP                      Legal Services                                  NA      8,372 
Bouhan, Williams & Levy, LLP              Legal Services                                  NA        132
Chadbourne & Parke, LLP                   Legal Services                                  NA        199
Dorsey & Whitney                          Legal Services                                  NA        127
Edison Electric Institute                 Legal Services                                  NA        422
Fulbright & Jaworski, LLP                 Legal Services                                  NA      1,291
Hunton & Williams                         Legal Services                                  NA      1,660
McDermott, Will & Emergy, LLP             Legal Services                                  NA        190
McNatt & Greene                           Legal Services                                  NA        176
Miller & Chevalier                        Legal Services                                  NA        907
National Economic Research                                                                             
    Associates, Inc.                      Legal Services                                  NA        196
Parker, Hudson, Rainer                                                                                 
    & Dobbs, LLP                          Legal Services                                  NA        353
Patton, Boggs, LLP                        Legal Services                                  NA        319
Powell, Goldstein, Frazer &                                                                            
    Murphy, LLP                           Legal Services                                  NA        373
Troutman, Sanders LLP                    Legal Services                                  NA      7,013 
Wilmer, Cutler & Pickering                Legal Services                                  NA        449

Fifty-Three Other Items Less                                                                           
    than $100,000                                                                         NA        945
                                                                                               --------
                                              Subtotal - Legal Services                          24,367
                                                                                               --------

Auditing Service                                                                                       
----------------                                                                                       
Deloitte & Touche, LLP                    Audit Services                                  NA      2,657

Three Other Items Less                                                                                 
    than $100,000                                                                         NA         16
                                                                                               --------

                                              Subtotal - Auditing Services                        2,673
                                                                                               --------

(Continued on Page 24A)                                                                                

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                                                                                                         24A
                           ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                 
                                            -------------------------------                                 
                                 For the Year Ended December 31, 2004                                       
                                                       -----------------                                    
                                        (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      204  
Alabama Power Company                     Project Support                                      A       146  
Alstom Power, Inc.                        Contract Engineering Serv.                           NA      256  
B. Moore, Inc.                            Contract Engineering Serv.                           NA      152  
BE&K Engineering Co.                      Contract Engineering Serv.                           NA    7,721  
BHA Group, Inc.                           Inspection Services                                  NA      332  
BSE Industrial Contractors, Inc.          Power Systems Development                            NA      158  
Caddell Construction Co., Inc.            Construction Services                                NA      820  
CB & A Project Management Serv.           Project Management                                   NA      947  
CDI Technical Services                    Contract Engineering Serv.                           NA      102  
E. on Engineering                         Contract Engineering Serv.                           NA      117  
Energy Design & Control Serv., Inc.       Contract Engineering Serv.                           NA      185  
Flue Gas Services, LLC                    Precipitator Technical Services                      NA      230  
Global Supply Group, Inc.                 Contract Engineers-Constructors                      NA      184  
Hamon Research-Cottrell, Inc.             Contract Engineering Serv.                           NA      179  
Indigo Technologies, LLC                  Environmental Serv.                                  NA      574  
Kellogg Brown & Root, Inc.                Contract Engineering Serv.                           NA      403  
L.G. Byrnes                               Contract Engineering Serv.                           NA      101  
NWL Contract Engineering Serv.                                                                 NA      304  
Parsons Energy & Chemicals                                                                                  
    Group, Inc.                           Inspection Services                                  NA      167  
Ranger Consulting, Inc.                   Drilling Contractor                                  NA      113  
Service Electric Company                  Environmental Remediation Serv.                      NA      209  
Siemens Westinghouse                      Power Systems Development                            NA      118  
Southern Research Institute               Power Systems Development                            NA      882  
The E Group                               Project Management                                   NA    1,548  
The LRB Group, Inc.                       Inspection Services                                  NA      165  
Universal Resources, Inc.                 Contract Engineering Serv.                           NA    4,987  

Eighty-Nine Other Items                                                                                     
    Less than $100,000                                                                         NA    1,266  
                                                                                                   -------  

                                          Subtotal - Engineering Services                           22,570  
                                                                                                   -------  

(Continued on Page 24B)                                                         

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                                                                                                24B     

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                        
                                ------------------------------                                          
                      For the Year Ended December 31, 2004                                              
                                         ---------------                                                
                             (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                                                                                          
--------------                                                                                          

                                                                                                        
Accenture, LLP                            Consulting Services                         NA         4,582  
Acxiom Corporation                        Information Technology Services             NA           144  
ADECCO USA, Inc.                          Temporary Services                          NA           619  
ADP Investor Communication Serv.          Investor Relations                          NA           831  
Alabama Power Company                     Project Support                             A          9,652  
Alden Research Laboratory, Inc.           Research & Development                      NA           159  
Alexander Strategy Group, Inc.            Consulting Services                         NA           180  
Alpha-Omega Power Technologies            Consulting Services                         NA           100  
Analysis Group Economics                  Consulting Services                         NA           510  
Ann Randazzo                              Consulting Services                         NA           106  
Aspen Systems Corporation                 Information Technology Services             NA           189  
Atkearney                                 Software Consulting Services                NA           305  
Atmospheric Research & Analysis           Consulting Services                         NA         2,562  
Barbour, Griffith & Rogers                Consulting Services                         NA           260  
Barton                                    Security Services                           NA           152  
Bellomy Research, Inc.                    Consulting Services                         NA           101  
Block Box Network Services                Telecommunications Services                 NA           356  
Blankenship & Seay                                                                                      
    Consulting Group, Inc.                Consulting Services                         NA           204  
Booz-Allen & Hamilton, Inc.               Financial Services                          NA           252  
Bowne of Atlanta, Inc.                    Stockholder Services                        NA           230  
Caddell Construction Co.                  Construction Services                       NA         1,438  
Callahan & Associates, Inc.               Telecommunications Services                 NA           186  
Carter & Associates                       Property Management                         NA           240  
Cauthen & Associates                      Consulting Services                         NA           160  
Charles River Associates, Inc.            Environmental Services                      NA           473  
CIT Systems Leasing                       Information Technology Services             NA           185  
Clean Air Engineering, Inc.               Environmental Services                      NA           134  
CMI Marketing Services                    NA                                          298               
Comprehensive Computer                                                                                  
    Consulting, Inc.                      Information Technology Services             NA         5,408  

(Continued on page 24C)                                                                                 

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                                                                                                        24C
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                           
                                 -------------------------------                                           
                      For the Year Ended December 31, 2004                                                 
                                        ------------------                                                 
                             (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 
-------------------                       ---------------                       ----------------    ------ 

                                                                                                           
COMSYS                                    Information Technology Services                      NA     158  
Corporate Executive Board                 Consulting Services                                  NA     103  
Corporate Temps 2000                      Personnel Services                                   NA     108  
Creative Financial Group, LTD             Financial Services                                   NA     258  
Dell Marketing, LP                        Information Technology Services                      NA     185  
Deloitte & Touche LLP                     Consulting Services                                  NA     479  
Doozer Software, Inc.                     Software Consulting Services                         NA   1,212  
Electric Power Research                                                                                    
    Institute                             Research and Development                             NA   5,022  
Enspiria Solutions, Inc.                  Information Technology Services                      NA     189  
Equifax Credit Info. Serv.                Credit Information Services                          NA     727  
Ernst & Young, LLP                        Consulting Services                                  NA   1,804  
Fiberglass Structural Eng., Inc.          Consulting Services                                  NA     165  
Forrester Research, Inc.                  Information Technology Services                      NA     222  
GATX Technology Services, Inc.            Information Technology Services                      NA     152  
GCI Group                                 Public Relations Services                            NA     274  
GE Energy Management Serv., Inc.          Information Technology Services                      NA     128  
GE Purchase Card Services                 Financial Services                                   NA     116  
Georgia Power Company                     Project Support                                      A   11,522  
Georgia Tech Research Corporation         Research and Development                             NA     426  
Group 1 Software, Inc.                    Software Consulting Services                         NA     456  
Gulf Power Company                        Project Support                                      A      842  
Hawthorn Group                            Consulting Services                                  NA     480  
Hendrick Associates                       Interior Design Services                             NA     105  
Hewitt Associates                         Personnel Services                                   NA   5,958  
Hire.Com, Inc.                            Personnel Services                                   NA     259  
Hurt, Norton & Associates                 Consulting Services                                  NA     102  
Indus International, Inc.                 Software Consulting Services                         NA     222  
Integrated Economic Solutions             Risk Management Services                             NA     250  
Intelligent Technology Systems            Information Technology Services                      NA     324  
Invensys Systems, Inc.                    Consulting Services                                  NA     368  


(Continued on page 24D)                                                         

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                                                                                                   24D     

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                           
                                ------------------------------                                             
                      For the Year Ended December 31, 2004                                                 
                                        -----------------                                                  
                             (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
-------------------                       ---------------                       ----------------     ------

                                                                                                           
Jeffcoat & Associates, LP                 Information Technology Services                      NA      324 
Jefferson Wells International, Inc.       Consulting Services                                  NA      632 
KPMG, LLP                                 Consulting Services                                  NA      281 
Lariat                                    Delivery Services                                    NA      164 
LEGC, LLC                                 Risk Management Services                             NA      375 
Lithographix,Inc.                         Printing Services                                    NA      464 
Lone Star Railroad Contractors            Construction Services                                NA      133 
Lumigent Technologies,Inc.                Software Consulting Services                         NA      254 
Mannings                                  Construction Services                                NA      108 
Market Strategies                         Marketing Services                                   NA      405 
Matrix Resources, Inc.                    Consulting Services                                  NA      117 
McLaren Software, Inc.                    Software Consulting Services                         NA      456 
Mercer Human Resources                                                                                     
    Consulting                            Personnel Services                                   NA      133 
Merrill Lynch Investment Managers         Financial Services                                   NA      166 
Merrill Lynch Trust Company               Financial Services                                   NA    1,712 
Merrill Lynch, Pierce, Fenner,                                                                             
    & Smith, Inc.                         Financial Services                                   NA    1,341 
Mesa Solutions, Inc.                      Consulting Services                                  NA      270 
Microsoft Corporation                     Information Technology Services                      NA      424 
Microsoft Services                        Information Technology Services                      NA      229 
Mississippi Power Company                 Project Support                                      A       561 
ML Strategies, LLC                        Consulting Services                                  NA      120 
MRO Software, Inc.                        Software Consulting Services                         NA      179 
New York Stock Exchange, Inc.             Financial Services                                   NA      645 
Open Access Technology                                                                                     
    International, Inc.                   Information Technology Services                      NA      303 
ORACLE Corporation                        Software Consulting Services                         NA    2,277 
Pantellos Group Limited Partnership       Procurement Services                                 NA    2,924 
Parson Consulting Company                 Consulting Services                                  NA      589 
Paul N. Lesner                            Consulting Services                                  NA      174 


(Continued on page 24E)                                                         

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                                                                                                       24E
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                          
                                 ------------------------------                                           
                      For the Year Ended December 31, 2004                                                
                                         ----------------                                                 
                             (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 
-------------------                       ---------------                       ----------------   ------ 

                                                                                                          
Peoplesoft, Inc.                          Software Consulting Services                         NA    464  
Phil Kent Consulting, Inc.                Consulting Services                                  NA    121  
Powerplan Consultants                     Software Consulting Services                         NA    136  
Pricewaterhouse, Coopers, LLP             Software Consulting Services                         NA    115  
RB Management                             Security Servcies                                    NA    107  
Red Clay Consulting, Inc.                 Software Consulting Services                         NA    238  
Robert T. Cobb                            Consulting Services                                  NA    244  
Ronald S. Terry Construction Co.          Construction Services                                NA    254  
Russell Reynolds Associates, Inc.         Consulting Services                                  NA    173  
SAS Institute, Inc.                       Software Consulting Services                         NA    136  
Savannah Electric & Power Co.             Project Support                                      A     142  
Scott, Madden & Associates, Inc.          Consulting Services                                  NA  1,256  
Securitas Security Services US            Security Services                                    NA    363  
Software House International, Inc.        Information Technology Services                      NA  1,080  
Southern Research Institute               Consulting Services                                  NA    217  
Staging Directions                        Event Services                                       NA    133  
Stahl Technology Services                 Information Technology Services                      NA    125  
Standard & Poor's Corporation             Financial Services                                   NA    410  
Structural Integrity Associates, Inc.     Inspection Services                                  NA    115  
Sumtotal Systems, Inc.                    Software Consulting Services                         NA    137  
Sungard CSS Software                      Software Consulting Services                         NA    400  
Superheat Services, Inc.                  Consulting Services                                  NA    124  
Synergis                                  Software Consulting Services                         NA  2,018  
Syntellect, Inc.                          Software Consulting Services                         NA    801  
System Architechs, Inc.                   Software Consulting Services                         NA    237  
Systems Applications International        Consulting Services                                  NA    177  
Tech Providers, Inc.                      Personnel Services                                   NA    311  
Teksystems                                Information Technology Services                      NA    660  
Telewares Communications, LLC             Telecommunications Services                          NA  1,077  


(Continued on page 24F)                                                         

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                                                                                                               24F               

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                                                 
                                 ------------------------------                                                                  
                      For the Year Ended December 31, 2004                                                                       
                                         -----------------                                                                       
                             (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                
-------------------                       ---------------                       ----------------           ------                

                                                                                                                                 
The North Highland Company, Inc.          Consulting Services                                  NA          1,837                 
The Smith-Free Group                      Consulting Services                                  NA            180                 
The University of Alabama                 Research and Development                             NA            144                 
Thomson Financial / Carson                Financial Services                                   NA            109                 
Time and Money Consulting, Inc.           Consulting Services                                  NA            140                 
TMP Worldwide                             Personnel Services                                   NA            207                 
TQS Research, Inc.                        Market Research Studies                              NA            122                 
TRAX Corporation                          Software Consulting Services                         NA            153                 
Van Scoyoc Associates                     Consulting Services                                  NA            110                 
Verisign, Inc.                            Software Consulting Services                         NA            103                 
Veritas Software Global, LLC              Software Consulting Services                         NA            446                 
Verity, Inc.                              Software Consulting Services                         NA            101                 
Vital Inspection Professionals            Inspection Services                                  NA            365                 
Vitria Technology, Inc.                   Software Consulting Services                         NA            193                 
Windham Brannon, P.C. CPAS                Consulting Services                                  NA          1,120                 
Witness Systems, Inc.                     Software Consulting Services                         NA            136                 
Young, Clark & Associates, Inc.           Consulting Services                                  NA            319                 
Z Solutions                               Consulting Services                                  NA            104                 

    1,076 Other Items Less Than $100,000                                                       NA         11,577                 
                                                                                                        ---------                

                                          Subtotal - Other Services                                      107,629                 
                                                                                                        --------                 

                                                         TOTAL                                           157,239                 
                                                                                                        ========                 


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                                                                  25

ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                  ----------------
(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                                                                 9,201  

Early Retirement Benefits                                                1,314  

Flexible Credit Benefits - Company Contributions                        17,906  

Post Retirement Medical Benefits                                         9,027  

Post Retirement Life Benefits                                            3,788  

Post Retirement Medical Benefits-Medicare Act Subsidy                     (932) 

Minority Scholarship Program                                                30  

Educational Assistance Plan                                                339  

Employee Savings Plan/ESOP - Company Contribution                        9,761  

Employee Health and Physical Examinations                                  39   

Other (Employees' Professional Fees, Executive Financial Planning               
  and Other Employee Fringe Benefits)                                  3,739
                                                                    --------

  TOTAL                                                               54,212
                                                                    ========

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                                                                            26           
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                         
                                 -------------------------------                         
                      For the Year Ended December 31, 2004                               
                                         ------------------                              
                             (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, the Company 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. 2004 advertising expenses are as follows:                 

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

                                                                                         
Arena Advertising                                                                        
    (Alvin Alley Dance Theatre)                  Corporate Branding                   12 
Advertising Diversity, Inc.                      Corporate Branding                   35 
Billy Andrade                                    Sports Marketing                     40 
Bobby Dodd Coach of the Year Foundation          Sports Marketing                    160 
Faircount, LLC                                   Sports Marketing                     27 
Fitzgerald & Co.                                 Corporate Branding                5,573 
Georgia Public Broadcasting                      Corporate Branding                   50 
Grey Worldwide Atlanta                           Corporate Branding                  814 
Joe Inman, Inc.                                  Sports Marketing                    124 
Lattimer Moffitt Communication                   Corporate Branding                  785 
National Association of Investors Corp.          Corporate Branding                    7 
Ontelcom, Inc.                                   Corporate Branding                  166 
Outfitters Association of America                Sports Marketing                    105 
PGA Tour, Inc.                                   Sports Marketing                  3,049 
Public Broadcasting Atlanta                      Corporate Branding                   20 
Scholarship Program Administrator, Inc.          Corporate Branding                   31 
Southern Golf Association                        Sports Marketing                     15 
Steve M. Scruggs                                 Sports Marketing                      5 
Tom Mann, Jr.                                    Sports Marketing                     50 
Turner South                                     Corporate Branding                1,540 
Unlimited Outdoors                               Sports Marketing                     50 
Women in Technology                              Corporate Branding                    5 
WP Productions                                   Sports Marketing                     90 
    All other Items less than $3,000                                                 (73)
                                                                                -------- 

                                                 TOTAL                            12,680 
                                                                                ======== 

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                                                                  27

ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                   -----------------
(Thousands of Dollars)

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

 ACCOUNT 930.2

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                                                       2,228   

Expenses of SCS Employees Located at Operating Co.                      3,068   

Meals, Lodging, & Incidentals Related to                                        
Meetings & Conferences                                                5,087 

Dues and Memberships                                                    2,201   

Recruiting, Interviewing, & Placement                                           
of Employees                                                            481 

Other General Expenses *                                               (3,235)  
                                                                   -------

 TOTAL                                                               9,830
                                                                   =======

* 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, 2004
                   -----------------
(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                                                       25,775       

Computer and Other Data Processing Equipment Rental                11,552       

IR Equipment - Capital Lease                                        6,076       

Software                                                            3,373       

All Other (Automobile, Office Furniture & Equipment,                            
Miscellaneous Storage, Equipment Rental & Aircraft)             4,535   
                                                           -------

TOTAL                                                          51,311   
                                                           =======

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                                                                  29

ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                   -----------------
(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                                                   499

City/Business License Tax                                              -

Property and Other City and State                                    976
                                                                 -------
     Subtotal - Other                                              1,475
                                                                 -------

U.S. Government Taxes                                                           

Federal Insurance Contributions Act                               28,811

Federal Unemployment                                                 289
                                                                  --------
     Subtotal - U.S. Government                                   29,100
                                                                 -------

TOTAL                                                             30,575
                                                                 =======

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                                                                                        30          
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                    
                                -------------------------------                                     
                      For the Year Ended December 31, 2004                                          
                                         -----------------                                          
                             (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 
-----------------                                     -------------------                    ------ 

                                                                                                    
55th Presidential Inaugural Committee                 Support of Program                      250   
ACCF Center for Policy Research                       Support of Program                       15   
Alabama Clean Water Partnership                       Civic & Charitable                        7   
Alabama Power Service Organization                    Civic & Charitable                       12   
Alexander-Tharpe Fund                                 Civic & Charitable                       16   
American Association for Aerosol Research             Civic & Charitable                        4   
American Association of Blacks in Energy              Civic & Charitable                        7   
American Heart Association                            Civic & Charitable                        6   
American Legislative Exchange Council                 Support of Program                       17   
Americans for Balanced Energy Choices                 Support of Program                    1,000   
Atlanta University Center                             Civic & Charitable                        7   
Auburn University Foundation                          Civic & Charitable                       15   
Auburn University Foundation                          Educational Matching                     27   
Bennett College for Women                             Civic & Charitable                        4   
Black Enterprise - MJ Berkeley Foundation             Civic & Charitable                        5   
Business Institute for Political Analysis             Support of Program                      250   
Camp Sunshine                                         Civic & Charitable                      100   
Cancer Research and Prevention                        Civic & Charitable                       10   
Friends of CDC (c/o Capitol Associates)               Civic & Charitable                       10   
Career Communications Group                           Civic & Charitable                       10   
Carnegie Mellon University                            Civic & Charitable                       50   
Center for Legislative Energy & Env. Research         Support of Program                        5   
CHCI (Congressional Hispanic Caucus Institute)        Support of Program                       25   
Chick-Fil-A Peach Bowl                                Civic & Charitable                        7   
Children's Hospital Foundation                        Civic & Charitable                       10   
Chris Kids, Inc.                                      Civic & Charitable                        5   
Congressional Sportsmen's Foundation                  Support of Program                       30   
Council for Technology & the Individual               Civic & Charitable                       10   
Danny Thompson Memorial Fund                          Civic & Charitable                       10   
Democratic Leadership Council                         Support of Program                       15   
Edison Electric Institute                             Support of Program                      505   
Electricity Reform Accountability Project             Support of Program                       80   
Emory University                                      Educational Matching                      7   
Families First                                        Civic & Charitable                        5   
Florida House                                         Civic & Charitable                       10   

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                                                                                       30A          

                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                    
                                 -------------------------------                                    
                      For the Year Ended December 31, 2004                                          
                                         -----------------                                          
                             (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 
-----------------                                              -------------------           ------ 

Ford's Theatre Society                                         Civic & Charitable                90 
Foundation for Student Communication                           Civic & Charitable                 5 
Foundation to Eradicate Duchenne, Inc.                         Civic & Charitable                20 
Frontiers of Freedom Institute                                 Civic & Charitable               100 
Georgia Business Forum, Inc.                                   Civic & Charitable                 8 
Georgia Institute of Technology                                Civic & Charitable               201 
Georgia Institute of Technology                                Educational Matching              26 
Georgia Southern University Foundation                         Educational Matching               5 
Georgia State University                                       Educational Matching              10 
Georgia Tech Athletic Association                              Civic & Charitable                10 
Greater Alabama Council - Boy Scouts of America                Civic & Charitable                11 
Gresham Middle School                                          Civic & Charitable                 5 
Harvard University                                             Civic & Charitable               100 
Hayes & Associates, LC                                         Support of Program                 5 
Hispanic Alliance for Progress                                 Civic & Charitable                 5 
Horton's Kids Inc.                                             Civic & Charitable                 5 
Junior Achievement of Greater Birmingham, Inc.                 Civic & Charitable                 7 
Keep Georgia Beautiful Foundation                              Civic & Charitable                 3 
Kennedy Center                                                 Civic & Charitable                10 
KW Productions LLC (National Black College Job Fair)           Civic & Charitable                 3 
Lakeshore Foundation                                           Civic & Charitable                10 
Louisiana Alive Inc.                                           Support of Program                13 
March of Dimes                                                 Civic & Charitable                 8 
Metro Atlanta Chamber of Commerce                              Civic & Charitable                10 
National Black MBA Association                                 Civic & Charitable                12 
National Coalition of 100 Black Women, Inc.                    Civic & Charitable                 4 
National Collegiate Sales Competition                          Civic & Charitable                 5 
National Fish & Wildlife Foundation                            Civic & Charitable                12 
National Governors Assn. Center for Best Practices             Civic & Charitable                12 
National Minority Junior Golf Scholarship Association          Support of Program                 8 
National Multiple Sclerosis Society                            Civic & Charitable                 5 
National Parks Conservation Association                        Civic & Charitable                10 
National Press Foundation                                      Civic & Charitable                 3 
Oklahoma State University Foundation                           Civic & Charitable                10 
On the Curve                                                   Civic & Charitable                23 
Open Fairways                                                  Civic & Charitable                 8 
PDK Park Restoration Project                                   Civic & Charitable                25 
PGA Tour-Payne Stewart Award                                   Civic & Charitable               300 
Public Broadcasting Atlanta                                    Civic & Charitable                 5 
Quality Deer Management Association                            Civic & Charitable                 5 

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                                                                                                 30B
                ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.                                    
                                --------------------------------                                    
                      For the Year Ended December 31, 2004                                          
                                         -----------------                                          
                             (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 
-----------------                                              -------------------           ------ 

Radio & Television News Directors Foundation                   Civic & Charitable                20 
Ripon Educational Fund                                         Civic & Charitable                30 
Royal Adelaide Hospital                                        Civic & Charitable                10 
Salvation Army                                                 Civic & Charitable                 5 
SEC Capital Kickoff                                            Support of Program                 5 
Southeastern Regional Cooperative Educational Conf.            Civic & Charitable                 5 
Society of Hispanic Professional Engineers                     Civic & Charitable                 3 
Southeastern Junior Golf Tour                                  Civic & Charitable                 5 
Southeastern Legal Foundation, Inc.                            Support of Program                25 
Syracuse University                                            Educational Matching               3 
Taste of the South                                             Civic & Charitable                10 
Techbridge, Inc.                                               Civic & Charitable                15 
Tennessee State University                                     Civic & Charitable                10 
Texas State Society                                            Support of Program                50 
The Annapolis Center                                           Civic & Charitable               150 
The Bayou Jesters                                              Support of Program                 5 
The Congressional Institute, Inc.                              Support of Program                25 
The Georgia Aquarium                                           Civic & Charitable             1,500 
The Manufacturing Institute                                    Civic & Charitable                21 
The Progress & Freedom Foundation                              Civic & Charitable                25 
The University of Alabama                                      Civic & Charitable                19 
The University of Alabama                                      Educational Matching              17 
The University of Alabama at Birmingham                        Civic & Charitable                21 
The University of Georgia                                      Civic & Charitable                 3 
The University of Georgia                                      Educational Matching               3 
U.S. Capitol Historical Society                                Civic & Charitable                10 
UAB School of Engineering                                      Civic & Charitable                 5 
United Way of Central Alabama                                  Civic & Charitable               150 
United Way of Metropolitan Atlanta                             Civic & Charitable                12 
University of North Alabama                                    Educational Matching               5 
Utility Business Education Coalition                           Civic & Charitable                25 
Washington National Opera                                      Civic & Charitable                25 
Waterfall Committee                                            Civic & Charitable                35 
Wesleyan College                                               Educational Matching               3 
Wolf Trap                                                      Civic & Charitable                10 
World of Hope                                                  Civic & Charitable                25 
Wyoming Congressional Award Council                            Civic & Charitable                 5 
YWCA of Central Alabama                                        Civic & Charitable                 6 

116 Other Items (Less than $3,000)                             Civic & Charitable               102 

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

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

    TOTAL                                                                                      6,102
                                                                                            ========

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                                                                  31
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                --------------------------------
For the Year Ended December 31, 2004
                  ------------------
(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, 2004
                  ------------------
(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 -  | VP - Internal | Exec. VP, & |Exec. VP & |President & |VP - Diversity | Sr. VP & Chief      
Southern Co.|Chief      | External    | Auditing      | SoCo CFO    |General    |CEO SoCo Gas| & Chief       |Transmission         
Gen.        |Marketing  | Affairs     |               | & Treasurer |Counsel    |            |Diversity      |  Officer            
            |Officer    |             |               |             |           |            |Officer        |                     
            |           |             |               |             |           |            |               |                     
--------------------------------------|---------------|-------------|-----------|------------|---------------|---------------------
VP -SCS     | VP -      |    VP -     |               |Sr. VP -     | VP & Sr.  |            |               | Sr. VP -            
 & So.      |Marketing  |Corporaten   |               |Comptroller  | Counsel   |            |               | Trans.              
Power CFO   |Services   |Communication|               |& SCS CFO    | VP &      |            |               | Plannin|g &         
            |           |             |               |             | General   |            |               | Operations          
            |           |             |               |             | Assoc.    |            |               |                     
            |           |             |               |             | Counsel   |            |               |                     
            |           |             |               |             |(3         |            |               |                     
            |           |             |               |             | Positions)|            |               |                     
------------|-----------|-------------|---------------|-------------|-----------|------------|-------------------------------------
Exec. VP    |           |   VP -      |               |Sr. VP -     |VP-Sec.&   |            |               |  VP -               
Engineering |           |Governmental |               |Finance &    |Corporate  |            |               |  Transmission       
            |           | Affairs     |               |Treasurer    |Assoc.     |            |               |                     
VP Technical|           |             |               |             |Gen.       |            |               |                     
   Services |           |             |               |             |Counsel    |            |               |                     
            |           |             |               |VP -         |           |            |               |                     
VP -        |           |             |               |Financial &  |           |            |               |                     
Construction|           |             |               |Planning     |           |            |               |                     
            |           |             |               |Risk Mtgt.   |           |            |               |                     
            |           |             |               |             |           |            |               |                     
------------|-----------|-------------|---------------|-------------------------|------------|---------------|---------------------
Sr. VP       |          |  VP         |               |Exec. VP     |Sr. VP -   |            |               |                     
Research &   |          |  Supply     |               |& CFO        |Human      |            |               |                     
Enviromenta l|          |  Chain                      |Transmission |Resources  |            |               |                     
Policy       |          |  Management |               |             |           |            |               |                     
                        |             |               |             | VP        |            |               |                     
Sr. VP -     |          |             |               |VP &         |Compensatio|n           |               |                     
Environmental|          |             |               |General      |& Benefits |            |               |                     
 Affairs     |          |             |               |Manager SCES |           |            |               |                     
             |          |             |               |             |           |            |               |                     
             |          |             |               |             |VP -       |            |               |                     
             |          |             |               |             |Employee   |            |               |                     
             |          |             |               |             |Relations  |            |               |                     
             |          |             |               |             |& Associate|            |               |                     
             |          |             |               |             |General    |            |               |                     
             |          |             |               |             |Counsel    |            |               |                     
------------ | -------- | ------------| ------------- | ----------- | ----------|---------- -|---------------|---------------------
Executive VP |          |             |               |             | Sr.VP -   |            |               |                     
- Competitive|          |             |               |             | Informatio|n           |               |                     
Gen.         |          |             |               |             | Technology|            |               |                     
             |          |             |               |             |           |            |               |                     
Sr. VP - So  |          |             |               |             | VP -      |            |               |                     
Power Sr.    |          |             |               |             | Computing |            |               |                     
Prod. Officer|          |             |               |             | & Network |            |               |                     
                        |             |               |             | Services  |            |               |                     
VP - Business|          |             |               |             |           |            |               |                     
Dev.         |          |             |               |             |           |            |               |                     
-------------|--------  | ----------- | ------------- | ----------- | ----------|------------|---------------|---------------------
Sr. VP       |          |             |               |             |           |            |               |                     
Operations & |          |             |               |             |           |            |               |                     
Gen. Serv.   |          |             |               |             |           |            |               |                     
             |          |             |               |             |           |            |               |                     
VP - Fleet   |          |             |               |             |           |            |               |                     
Oper. &      |          |             |               |             |           |            |               |                     
Trading      |          |             |               |             |           |            |               |                     
             |          |             |               |             |           |            |               |                     
VP - Fuel    |          |             |               |             |           |            |               |                     
Services     |          |             |               |             |           |            |               |                     
------------------------|-------------|---------------|-------------|-----------|---------- -|---------------|---------------------
Exec. VP &   |          |             |               |             |           |            |               |                     
Chief        |          |             |               |             |           |            |               |                     
Prod.        |          |             |               |             |           |            |               |                     
Officer      |          |             |               |             |           |            |               |                     
             |          |             |               |             |           |            |               |                     
VP - Senior  |          |             |               |             |           |            |               |                     
Prod.        |          |             |               |             |           |            |               |                     
Officers     |          |             |               |             |           |            |               |                     
(2 Positions)|          |             |               |             |           |            |               |                     
             |          |             |               |             |           |            |               |                     
Sr. VP -     |          |             |               |             |           |            |               |                     
Generation   |          |             |               |             |           |            |               |                     
-------------|--------- |-------------|---------------|-------------| ----------|------------|---------------|---------------------
Sr. VP &     |          |             |               |             |           |            |               |                     
Gemeral      |          |             |               |             |           |            |               |                     
Counsel      |          |             |               |             |           |            |               |                     
-----------------------------------------------------------------------------------------------------------------------------------

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                                                                  34
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
               -------------------------------
For the Year Ended December 31, 2004
                  ------------------
 METHODS OF ALLOCATION
 ---------------------

The Company uses statistics based on a single year with a one-year lag;         
therefore,  2004 allocations were based on 2002 statistics.  Each participating 
company receives a pro rata share based upon its  statistics defined by the     
following methods.  Multiple versions of the bases are available to reflect the 
exclusion of specific companies if they do not participate in or benefit from   
particular projects or services.  In the discussion  below, Client Operating    
Companies refer to Southern system  companies that generate  power,  and Client 
Companies include all affiliates:                                               

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

            Annual operating area territorial load (defined as kilowatt-hours of
           total energy generated plus energy received minus energy delivered)
      plus other firm wholesale commitments of each Client Operating
        Company other than Southern Electric Generating Company (SEGCO).

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

            Number of year-end customers of each Client Operating Company (other
than SEGCO and Southern Power) and Southern Company Gas.

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

            Number of year-end employees of each Client Company. Employee groups
      not benefiting from certain services are not included in every
allocation.                                             

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

           Average of the percentages of net fixed assets, operating expenses,
and operating revenues of each Client Company.          

5.     Fossil Fuel Generation Basis (no longer used after August 2004)
        ----------------------------------------------------------------

           Generation (kilowatt-hours) from fossil fuel sources of each Client
          Operating Company. Generation from plants operated by the Southern
            system but jointly owned by external parties is included. Generation
      jointly owned by Southern Company affiliates is assigned on an
ownership basis.                                        

        To equitably allocate a portion of general fuel-related costs to
       Southern Company Gas, the generation allocation was modified to
     recognize its share of total Southern system gas consumption.

6.     Coal Generation Basis                                          
----------------------                                  

         Generation (kilowatt-hours) from coal fuel sources of each Client
          Operating Company. Generation from plants operated by the Southern
            system but jointly owned by external parties is included. Generation
      jointly owned by Southern Company affiliates is assigned on an
ownership basis.                                        

7.     Gas Burned Basis                                               
-----------------                                       

          Volume of gas consumed (BTUs) by each Client Operating Company and
Southern Company Gas.                                   

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                                                                     34A
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                   -------------------
 METHODS OF ALLOCATION
 ---------------------

8.     Fossil and Hydro Capacity Basis                                
--------------------------------                        

           Fossil and hydro nameplate generating capacity (kilowatts) for each
          Client Operating company. Capacity operated by the Southern system
           but jointly owned by external parties is included. Capacity jointly
        owned by Southern Company affiliates is assigned on an ownership
basis.                                                  

9.     Fossil Capacity Basis                                          
---------------------                                   

        Fossil nameplate generating capacity (kilowatts) for each Client
       Operating company. Capacity operated by the Southern system but
       jointly owned by external parties is included. Capacity jointly
        owned by Southern Company affiliates is assigned on an ownership
basis.                                                  

10.     Coal Capacity Basis                                             
-------------------                                     

      Coal nameplate generating capacity (kilowatts) for each Client
       Operating company. Capacity operated by the Southern system but
       jointly owned by external parties is included. Capacity jointly
        owned by Southern Company affiliates is assigned on an ownership
basis.                                                  

11.     Insurance Premium Basis                                         
-----------------------                                 

Insurance premiums of each Client Company.              

12.     Salary Basis                                                    
------------                                            
Service Company labor billed to each Client Company.    

       In addition, overhead charges are allocated to the applicable
           companies based on standard rates applied to actual labor charges
in the current period.                                

13.     Information Technology Division Salary Basis                    
--------------------------------------------            

          Service Company Information Technology labor billed to each Client
Company.                                                

14.     Capitalization Basis                                            
--------------------                                    

        Book capitalization (defined as long-term debt, preferred stock,
         cumulative preferred stock and common shareholder equity) of each
Client Company.                                         

15.     Market-Based Equity Basis                                       
-------------------------                               

          Book equity adjusted to estimated fair market value of each Client
Company.                                                

16.     Personal Computers Basis                                        
------------------------                                

          Number of personal computers of each Client Company. Organizations
          not benefiting from certain types of computers are not included in
every allocation.                                       

17.     System Aircraft Availability Basis                              
-----------------------------------                     

          Number of executives authorized to call out flights at each Client
    Company. Utilization of system aircraft is billed based on a
           comparable undiscounted commercial fare for the itinerary flown. An
          "availability fee," which represents the remaining costs of system
  aircraft operations, is allocated to the Client Companies.

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                                                                    35
ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                    ------------------

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 2004:                                                                

Pursuant to the amended Uniform System of Accounts for Mutual and Subsidiary    
Service Companies implemented in January 1980, the Company 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. The Company does not bill its associate client companies for           
compensation of equity capital.                                                 

In 2004, the Company initiated short-term borrowings exclusively from           
Southern Company; other outside banking institutions were not used. The interest
rates on these borrowings ranged from 4.33% to 5.29%. Interest in the amount of 
$53,671 was accrued on Southern Company borrowings and was billed to the        
client companies.                                                               

As of December 31, 2004, the Company reflected long-term debt outstanding from  
various institutions in the amount of $40,000,000. The interest rate on these   
borrowings was 7.625%. Interest of $3,031,050 was accrued and billed to the     
client companies. Other long-term debt related to capitalized leases in the     
amount of $22,293,956 was outstanding. The interest rates on these capitalized  
leases ranged from 4.33% to 8.00%. Interest of $1,021,922 was accrued and billed
to the client companies.                                                        

In 2003, the Company entered into a derivative to hedge exposure to interest    
rate changes. The derivative is accounted for as a fair value hedge. The Company
receives the fixed rate of 7.625% and pays six-month LIBOR plus 2.92%. As a     
result, interest of $916,593 was credited against the client companies' expenses
during 2004.                                                                    

In addition, during 2004, the Company incurred other interest of $384,343       
related to the Transmission Access deposits and $414,404 related to various     
federal and state taxation and $32,315 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                                  $  206,283
  Alabama Power Company                                  1,080,473
  Georgia Power Company                                  1,382,458
  Gulf Power Company                                       265,796
  Mississippi Power Company                                224,780
  Savannah Electric & Power Company                         81,226
  Southern Electric Generating Company                      16,889
  Southern Nuclear Operating Company, Inc.                 187,384
  Southern Company Energy Solutions, LLC                    10,857
  Southern Company Holdings, Inc.                            7,640
  Southern Management Development                            5,630
  Southern Communications Services, Inc.                    31,767
  Southern Electric Railroad Company                         1,608
  Southern Power Company                                   300,779
  Southern Telecom Inc.                                      7,640
  Southern Company Gas, LLC                                 96,105
  Southern Company Rail Services                             6,032
  SE Finance Capital Corporation II                          8,444
  Alabama Synfuel Energy                                       804
  Energy Related Activities                                    402
  Non-associate Companies                                   98,115
                                                        ----------

                                                        $4,021,112
                                                        ==========

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                                                                  36

ANNUAL REPORT OF SOUTHERN COMPANY SERVICES, INC.
                 -------------------------------
For the Year Ended December 31, 2004
                    ------------------

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 28, 2005

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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
Filed on / Effective on:	4/29/05
	4/28/05	59
For Period End:	12/31/04	1	59
	1/1/04	1
	12/15/99	28
				List all Filings

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Filing Submission 0000217216-05-000002 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Southern Co Services Inc – ‘U-13-60’ for 12/31/04

On: Friday, 4/29/05, at 5:07pm ET · Effective: 4/29/05 · For: 12/31/04 · Accession #: 217216-5-2 · File #: 49-00059

Previous ‘U-13-60’: ‘U-13-60’ on 4/30/04 for 12/31/03 · Latest ‘U-13-60’: This Filing

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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