March 25, 2011

Dear Auction Participants –

On March 24, 2011, the Federal Energy Regulatory Commission entered an order conditionally accepting revisions that Southern Companies' previously had proposed on January 19, 2010 to the Rules of the Energy Auction and the Rules on Southern Companies' Energy Auction Participation. Paragraph 34 of the order relates to Auction Participants and provides as follows:

"[W]e expect the Independent Auction Monitor to monitor all Auction participants and promptly notify and/or refer questionable behavior to the Commission’s Office of Enforcement. Accordingly, Southern Companies are directed to revise section 4.3.5 of the Auction Rules to specify that the Independent Auction Monitor is responsible for monitoring all Auction participants and promptly reporting any questionable behavior by any Auction participant to the Commission." (footnote omitted).

A complete copy of the order will be made available at the Auction Rules and Compliance page of the Energy Auction website