Cautionary Statement

Regarding Forward-Looking Statements
Southern Company’s 2016 Summary Annual Report contains forward-looking statements. Forward-looking statements include, among other things, statements concerning the expected completion of construction projects. In some cases, forward-looking statements can be identified by terminology such as “may,“ “will,“ “could,“ “should,“ “expects,“ “plans,“ “anticipates,“ “believes,“ “estimates,“ “projects,“ “predicts,“ “potential“ or “continue“ or the negative of these terms or other similar terminology. There are various factors that could cause actual results to differ materially from those suggested by the forward-looking statements; accordingly, there can be no assurance that such indicated results will be realized. These factors include:

  • the impact of recent and future federal and state regulatory changes, including environmental laws regulating emissions, discharges, and disposal to air, water and land, and also changes in tax and other laws and regulations to which Southern Company and its subsidiaries are subject, including potential tax reform legislation, as well as changes in application of existing laws and regulations;
  • current and future litigation, regulatory investigations, proceedings or inquiries;
  • the effects, extent and timing of the entry of additional competition in the markets in which Southern Company’s subsidiaries operate;
  • variations in demand for electricity and natural gas, including those relating to weather, the general economy and recovery from the last recession, population and business growth (and declines), the effects of energy conservation and efficiency measures, including from the development and deployment of alternative energy sources such as self-generation and distributed generation technologies, and any potential economic impacts resulting from federal fiscal decisions;
  • available sources and costs of natural gas and other fuels;
  • limits on pipeline capacity;
  • effects of inflation;
  • the ability to control costs and avoid cost overruns during the development, construction and operation of facilities, which include the development and construction of generating facilities with designs that have not been finalized or previously constructed, including changes in labor costs and productivity, adverse weather conditions, shortages and inconsistent quality of equipment, materials, and labor, sustaining nitrogen supply, contractor or supplier delay, non-performance under construction, operating or other agreements, operational readiness, including specialized operator training and required site safety programs, unforeseen engineering or design problems, start-up activities (including major equipment failure and system integration), and/or operational performance (including additional costs to satisfy any operational parameters ultimately adopted by any Public Service Commission (PSC));
  • the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives and to integrate facilities into the Southern Company system upon completion of construction;
  • investment performance of the Southern Company system’s employee and retiree benefit plans and nuclear decommissioning trust funds;
  • advances in technology;
  • ongoing renewable energy partnerships and development agreements;
  • state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery mechanisms;
  • legal proceedings and regulatory approvals and actions related to Plant Vogtle Units 3 and 4, including Georgia PSC approvals and Nuclear Regulatory Commission actions;
  • actions related to cost recovery for the Kemper IGCC, including the ultimate impact of the 2015 decision of the Mississippi Supreme Court, the Mississippi PSC’s December 2015 rate order, and related legal or regulatory proceedings, Mississippi PSC review of the prudence of Kemper IGCC costs and approval of further permanent rate recovery plans, actions relating to proposed securitization, satisfaction of requirements to utilize grants, and the ultimate impact of the termination of the proposed sale of an interest in the Kemper IGCC to South Mississippi Electric Power Association (now known as Cooperative Energy);
  • the ability to successfully operate the electric utilities’ generating, transmission, and distribution facilities and Southern Company Gas’ natural gas distribution and storage facilities and the successful performance of necessary corporate functions;
  • the inherent risks involved in operating and constructing nuclear generating facilities, including environmental, health, regulatory, natural disaster, terrorism and financial risks;
  • the inherent risks involved in transporting and storing natural gas;
  • the performance of projects undertaken by the non-utility businesses and the success of efforts to invest in and develop new opportunities;
  • internal restructuring or other restructuring options that may be pursued;
  • potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Company or its subsidiaries;
  • the possibility that the anticipated benefits from the acquisition of Southern Company Gas cannot be fully realized or may take longer to realize than expected, the possibility that costs related to the integration of Southern Company and Southern Company Gas will be greater than expected, the ability to retain and hire key personnel and maintain relationships with customers, suppliers, or other business partners and the diversion of management time on integration-related issues;
  • the ability of counterparties of Southern Company and its subsidiaries to make payments as and when due and to perform as required;
  • the ability to obtain new short- and long-term contracts with wholesale customers;
  • the direct or indirect effect on the Southern Company system’s business resulting from cyber intrusion or terrorist incidents and the threat of terrorist incidents;
  • interest rate fluctuations and financial market conditions and the results of financing efforts;
  • changes in Southern Company’s and any of its subsidiaries’ credit ratings, including impacts on interest rates, access to capital markets, and collateral requirements;
  • the impacts of any sovereign financial issues, including impacts on interest rates, access to capital markets, impacts on foreign currency exchange rates, counterparty performance and the economy in general, as well as potential impacts on the benefits of the Department of Energy loan guarantees;
  • the ability of Southern Company’s electric subsidiaries to obtain additional generating capacity (or sell excess generating capacity) at competitive prices;
  • catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events such as influenzas or other similar occurrences;
  • the direct or indirect effects on the Southern Company system’s business resulting from incidents affecting the U.S. electric grid, natural gas pipeline infrastructure or operation of generating or storage resources;
  • the effect of accounting pronouncements issued periodically by standard- setting bodies; and
  • other factors discussed elsewhere herein and in other reports, including the Annual Report on Form 10-K for the year ended December 31, 2016 (the Form 10-K), filed by Southern Company from time to time with the Securities and Exchange Commission.

Southern Company expressly disclaims any obligation to update any forward-looking information.