Change Is Good
Competition and other changes in energy markets continue to create new opportunities for growth.

In 1998, we took advantage of several of those opportunities. We acquired 1,267 megawatts of generating capacity in New England and a 3.6 percent interest in Companhia Energetica de Minas Gerais (CEMIG) in Brazil. We also announced plans to acquire additional generating capacity: 3,065 megawatts in California, 1,776 megawatts in New York, and 80 megawatts in Texas. We began construction of additional capacity in Alabama and announced plans to build a 300-megawatt plant in Wisconsin.

To help balance our holdings, we sold an additional 26 percent of SWEB to PP&L Global Resources. In addition, we plan on selling our assets in Argentina and Chile.

SO Is Added Value
Bringing added value to our customers also continues to be important.

At our Power Systems Development facility in Alabama, we're researching innovative technologies that could one day reduce emissions and allow power plants to make the same amount of electricity while burning 33 percent less coal.

Our Southern Company Energy solutions subsidiary is dedicated to helping customers get the best value for their energy dollars.

Recommending various equipment upgrades and modifications, we helped the U.S. Navy Supply Corps School in Georgia achieve a mandated 30 percent energy reduction. And the project paid for itself in energy savings.

To maximize the use of our internal telecommunications system, Southern LINC offers digital, wireless service to businesses and government agencies throughout the Southeast. This business now has more than 100,000 users.