Forecasting Growth

We focus on providing reliable, affordable electricity. Integral to this mission is knowledge of our market and the demand for electricity. We forecast economic growth to ensure that we have the generation and transmission equipment and skilled employees needed to provide reliable and affordable electricity in our southeastern U.S. markets.

This section details how we will meet forecasts through diversifying fuel options, building renewable resources, championing energy efficiency, and new nuclear plants.

A key performance indicator for previous performance in meeting forecasts is equivalent forced outage rate. This rate indicates the likelihood of forced outages that are not storm-related. We rank in the top quartile, well above industry averages. See Equivalent Forced Outage Rate »

• Generation — Over the next three years, business operations plans to add 1,500 megawatts of capacity in the Southeast and more than 800 megawatts of wholesale capacity to meet demand and maintain reliability. That's enough to power a half-million additional homes. See Capital Expenditures »
• Transmission and Distribution — Since 2000, we have invested $10.8 billion to upgrade and expand our transmission and distribution infrastructure. Over the next three years, we plan to invest $4.1 billion more to help ensure that we maintain our high level of reliability and keep electricity flowing to the increasing number of customers in our region. See Capital Expenditures »

Legislative and Regulatory Participation

Forecasting and planning go hand in hand with participation in the legislative and regulatory process, especially related to proposed laws or rules that impact our customers and shareholders. In addition to working with state and local legislators and policy-makers, we maintain an office and staff in Washington, D.C., to interact with Congress and with agencies including:

• Federal Energy Regulatory Commission
• Federal Communications Commission
• Nuclear Regulatory Commission
• Department of Energy
• Department of Defense
• Environmental Protection Agency

We use outside firms to assist our efforts and support coalitions and trade organizations that engage in lobbying activities. Expenses associated with operating our Washington office are about $8 million annually. We also participate in the regulatory process through industry groups and committees to communicate our positions. These groups and committees include the Utility Air Regulatory Group, the Utility Water Act Group, the Utility Solid Waste Activities Group, and Edison Electric Institute.

There were no contribution to 527 organizations (Republican Governors Association and Democratic Governors Association) in 2010. 2009 contributions included pre-paid 2010 contributions of $100,000 to each of RGA and DGA.

Southern Company sponsors political action committees that make contributions to candidates for public office using funds voluntarily donated by employees. This money is contributed to candidates of various parties, other political action committees, and political organizations such as the Republican and Democratic national committees. Information on Political Action Committee federal contributions is publicly available through the Federal Elections Commission at www.fec.gov.