ATLANTA, Aug. 27 /PRNewswire-FirstCall/ -- Southern Company (NYSE: SO) today announced that its Georgia Power subsidiary has received approval from the Georgia Public Service Commission (PSC) to amortize as a reduction to operating expenses approximately $324 million of its regulatory liability relating to asset retirement obligations.

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Under the terms of the Georgia PSC's order, Georgia Power will be allowed to amortize up to one-third of the regulatory liability, or $108 million, in 2009, provided the company does not file for a retail base rate increase in 2009. The order also authorizes Georgia Power to amortize up to two-thirds of the regulatory liability, or $216 million, in 2010, provided the company does not file for a retail base rate increase prior to July 1, 2010. In the event that Georgia Power files for a rate increase before July 1, 2010, amortization of the regulatory liability in 2010 would be reduced by one-sixth for each month the filing is made prior to July 1, 2010.

Georgia Power agreed that it would not file for a base rate increase prior to July 1, 2010 unless economic conditions beyond its control continue to reduce Georgia Power's projected retail return on equity (ROE), and Georgia Power's projected retail ROE for 2009 or 2010 is less than 9.25 percent after amortization of the regulatory liability.

The amortization of the regulatory liability is limited to the amount that would allow Georgia Power to earn a retail ROE of not more than 9.75 percent in 2009 and 10.15 percent in 2010.

Southern Company previously issued earnings guidance on July 29, 2009 which assumed a positive outcome in Georgia Power's request to amortize its regulatory liability related to asset retirement obligations. Southern Company reports that the Georgia PSC order is consistent with the assumptions used in its previously issued earnings guidance. Southern Company is not updating, confirming or otherwise addressing its previously issued earnings guidance, which speaks only as of July 29, 2009.

With 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are below the national average. Southern Company is consistently listed among the top U.S. electric service providers in customer satisfaction by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com.

SOURCE Southern Company

SOURCE: Southern Company

Web site: http://www.southerncompany.com/