ML20009G374

Forwards Annual Financial Rept 1980

ML20009G374
Person / Time
Site:	Hatch, Vogtle
Issue date:	07/28/1981
From:	Michael Brown GEORGIA POWER CO.
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 8108040183
Download: ML20009G374 (6)

Text

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b Fir. Jerome Saltzman E O I98I b j Chief, Anti-trut and Indemnity Group u.s. g ~ ,og Nuclear Reactor 2cgulation g j Nuclear Regulatory Commission sN Washington, D.C. 20555 ' V,/ s I N

Dear hir. Saltzman:

1 Enclosed you will find the following financial information pursuant to Section 140.21 of 10 CFR Part 140 that each licensee is required to i furnish as a guarantee of payment of deferred premiums for each operating reactor over 100 FN (e): ) 1. Annual Report containing certified financial statements for l calendar year 1980. ~ l 2. A set of Quarterly Financial Statements for the period ending June 30, 1981. j 3. One year projected Source of Funds Statement for period January 1, j 1982 through December 31, 1982, accompanied by the underlying i assumptions. Should you have any questions in connection with our response, please contact me at (404) 526-6728. b ff n 1 St. T. Brown, Jr. ] blanager birB/1p cc: h!r. W. D. DeBardeleben, Jr. (w/o enclosures) i hir. W. Y. Jobe (w/o enclosures) Ene: 3 4 l l geoA fg i 8108040183 810728 l PDR ADOCK 05000321 I PDR

GEORGIA PO4 ER COMPANY SOURCES OF FUNDS FOR PLANT ADDITIONS IN 1982 Line Year 1982 No Description Estimated (1) (2) (3) 1 SOURCES OF FUNDS (Thousands) 2 Internal Sources - 3 Depreciation and Amortization $ 205,851 4 Deferred Income Taxes - Net 38,808 5 Investment T:a Credits 6 Retained Eamings and Other Internal Sources - Net 99,818 7 Total from Internal Sources 364,477 8 Additional Securities - 9 Sale of First Mortgage Bonds 250,000 10 Less - Bond Retirements (25,000) 11 Net First Mortgage Bonds 225,000 12 Preferred Stock - Net oi setirements 71,250 13 Interim Bank Loans 138,474 14 Long-Term Notes (259) 15 Pollution Control Obligations - Net 10,070 16 Net Capitalized Leases 4,217 17 Increments to Common Equity 124,000 18 Proceeds from Joint Ownership Contracts 19 Total from External Sources 372,752 Total Sources of Funds for Plant Additions $ 937,229 20 21 PLANT ADDITIONS 22 Generating Projects - 23 Plant Scherer Units No.1,2,3, and 4 80,523 24 Plant Vogtle Units No. I and 2 288,280 25 Rocky Mountain Hydro Project 52,000 26 Other 7,793 27 Total Generating Projects 428,596 28 New Business Facilities 96,871 29 Transmission Plant 103,610 30 Joint Line and Substation Plant 44,871 31 Distribution Plant 25,285 32 Production Plant 92,143 33 Nuclear Fuel 96,611 34 General and Miscellaneous Plant 49,217 35 Total Electric Plant 937,204 36 Steam Heating Plant 25 37 Total Plant Additions $ 937,229

MAJOR ASSr.JMPTIONS 1. This Source of Funds Statement is taken from the 1981 Revised Financial Projections-1. 2. Only currently authorized revenues are included. 3. Piant Scherer Unit I is assumed to go into commercial ope;r. tion on February 1,1982. i 1 i - - -.... ~,, -, _, _ - -, - _ _, -.. _ _ _... _. - ~. _..., - _,.. _.....,... _,.. _,. _. - - - _ _, - _ - -,

CEORCI A POWER COMPANY Income Statement June 1981 MONTH OF JUNE 1981 SIX MONTNS ENDED JUNE 1981 TIFELVE 000NTNS ENDED JUNE 1901 L ine 5 1 5 No. OPER ATING REVENUES - ELECTRIC: This Year Last Veer

incr, This Veer Last Veer incr.

This Year Last Veer Ince. 1 Total Operetang Revenues 178,903,777.94 147,057,427.65 21.66 949,272,714.02 795,954.906.73 19.26 1,961, 725,293. M 1.597,741,644.62 22.78 OPER ATING EXPENSE 5 - ELECTRIC: 2 Tuel for Generetson 79,648,o95.93 67,544,462.63 387,979,379.68 317.668,872.44 Fe6,876.943.M 627.717.100.50 3 Other Production Espenses 16,931,609.54 14,262,760.47 104,081,327.11 75,939,673.82 193,708.108.52 158,539,283.55 4 Purthosed Power 4,124,794.77 (13,124,710.96) 32.248.685.87 (18,241,875.36) 54,326.556.00 ( 17. 3 M,409.2 4 3 5 Total Production E mpenses 100,704.550.25~ 65,652.912.14 524,309,392.66 375,367,471.30 1,034.511.641,75 751.T21,902.55 6 Transm6ssion and Distribution 5.819,394.15 4,234,853.21 33,258,763.22 24,444.102.46 69,239,429.90 4 7,516. 658. M 7 Customer Accounting 2,378,772.69 1,870,529.06 13,286,952.10 19,119,503.87 26,636,292.43 29.033.497.16 0 Customer Servka and Infor1estion 799,% 4.40 849,257.51 5,o40,090.96 4.235,440.97 9,5e4,50 7. 91 6,398.974.49 9 Sales Empense 132,061.45 102,653.07 836,521.97 612,774.01 1,514,154.99 2.794,03f 33 to Adelnistrative and General 12,119,215.56 7,205,009.37 60.833,321.13 52,493,199.17 122,975,002 M _ 97,475,400.32 11 Total Operation and Maintenance

• 121,954,286.53 82,906,014. M 645,565.049.74 468,272.491.74 1,264,681.905.06 937.133,873.43 12 Depreciation and Amortisetton 13.506,993.40 12,002,935.00 81,589,642.00 76,446,610.De 158,317,490.92 148,593,220.00 13 To.es oth.c than income Tames 6,849,846.47 6,028,3ea.54 4e,897,930.75 3a,349,485.72 76,eo2,053.9e 7e.49i,426.79 10 income Tones 11 Q3 650.00 17,180 62LD0_

49,022,576.00 74,737 857.00_ J52JM49 OL JMFWIM9_ 15 Total Operating Empenses - Electric 153.484,770.40 110,997,874,90 20.98 817,005,158.49 657,8M,444.50 24.29 1,651.117,8 90, M. 1,394.604,994.22 2h56 16 Income Property Sales 370.30 17 Operattnn income - Electric 25,418,999.54 28,e59,552.75 ( 9. 41) 132,267,555.53 130,148, M2. 2 3 (4.26) 310,607,764.34 293,176,654.40 5.95 le Nestleg and Other Operating income - Not (38,147.04) (60,142.50) 329,767.25 289,741.57 70,560.41 (31,907.12) OTNER INCOME AND DEDUCTIONS: 10 ALEEr Tunds used Dur. Const. - Equity 3,335,323.00 2,589,998.00 19,231,344.26 19,109,984.00 35,7e4,2 7 3.2 8 39.479.340.03 20 Div6dends for SECCo 231,182.00 243,605.00 1,319,474.00 1,409,957.00 2,375,078.00 2,520,638.00 21 Interest on Temporary Investments 1,211,281.99 1,139,183.95 17,233,139.22 5,274,508.10 31,508,0 M. 39 22,762.666.76 22 income Temos (409,955.00) (281,559.00) (7,460,665.00) (14,171,019.00) (16,091,707,00) (21,204,62o.99) 23 Other Noroper, Inc. less Ded. - Not (70,922.07) 42 9, M 2. 76 404,137.37 28,310,133.89 9,014,011.34 31,162,1M.97 24 income Before Interest Charges 29,677,761.62 32,128,680.08 (7.61) 163,316,792.63 170,309,775.79 ( 0.41) 373,268,814.00 367,864,806.04 1,47 INTEREST CNARCES: 25 ~ Interest on Long-term Debt 17,260,017.68 15,233,712.34 101,811,785.96 91,794,008.00 1M,227,094.41 184,717,567.82 26 Amortteation of Debt Discount and Expense 84,574.53 73,132.35 473,355.57 440,544.59 910,655.17 90s,994.92 37 Amort 6 ration of Premium on Debt - Credit (9,605.92) (6,526.88) (61,224.54) (41,250.97) (10o,525.39) (76.036.87) 26 Other intecent Expense 319,765.23 682,278.82 1,569,306.72 9,080,129.33 3,230,121.74 10,513,757.62 (4,358,M6.63170.00) (17,301,606.81) (22,019,196.13) (35,345 679J2),. (41,009,475J2J_ 29 Allow. for Funds used Dur. Const. - Debt 3 000 638.00 11,624, 96,494,616.90 79,254.075.62 164,930,M6.91 155,054,806.07 30 Total interest Charges J. 31 NET INCOME 15.022,928.10 20,4 %,254.25 (26.70) 76,825.175.73 99,055,700.17 (22.44) 208,338,M7.89 212,810,079.17 (3.18) 32 Div6dends on Preferred Stocts 2,928,840.49 2, 9 M, 8 33.13 17,470,117.73 17,643,717.45 35,050,378.93 35,440,128.65 33 NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK,,,,ggggL,,,,,JLggghg,(&R),,, ERD 8J9., JL9114847L l&M) _hMZJ6LL,,,,lMU,M8 R MJ, 33 TOTAL E LECTRIC CUSTOMERS 1,224,499 1,199,122 1,221,297 1,197,696 1,214,409 1,391.e56

• Total Operation Empenses:

107,784,921,33 70.637,319.03 557,517,691.62 403,340,655.16 1,097,222,431.78 800,325,683.77 Total Maintenance Expenses: 14,169,367.20 12,348,695.33 88,047,358.12 64,931,836.62 167.459,473.24 128,807,489.66 - = - -

CEORCIA POWER COMPANY Relance 5heet June 198 8 ASSETS This Year Last Year CAPITALilATION AND LIABILITIES This Veer Last Veer Line UTillTV PLANT C APIT ALtl ATION 1 Plant in Service (Classified and Unclassified) $4,966,060,832.20 $4,564,551,942.37 r . Equity: 5 2 Electric Plant Held fo* Future Use 12.523,0 M.15 9,65 7,906. 4 y e . Stock 7,761,500 5 HARE 5 344,25e Dec.e4 344,350.000.00 3 Constructinn Work in Progress 960,792,657.89 768,901,232.00 Capital Contributions 726,000,000.00 652,000.000.00 4 Total Cross Plant 5,939,376.529.24 5,332,111,161.72 Premium en Preferred Stock t,000,e20.00 1, e00. 029. 0e Unsppropriated Retained Earnings (580,853,947.58 5 Accumulated Provisions for Depreciation restricted agelost payment of dividends) 252,601,592.64 226,005,551.65 6 and Amortisation (1 M6 142 194.82 (1,10s,442,448.66) Appropriated Retained Earnings 049, e12. se 849,412.00 7 NE T Pt. ANT 54_22L 6sa 75L es Cain on Cancellation of Rescquired Capital Stock 077 696 l Totes c .gqvgg y M i h.93 *T~YWi@et 625. M e tY 9 OTHE R PROPERTY AND INVESTMENTS ~ 9,205,039 SHARE 5 500,520,900.00 429,144.400.00 Preferred Capital 5tock to Nonutility Property 3,293,584.811 3,389,790.03 Lang-Term Debt: 11 Accumulated Provisions for Depreciation (El 661.47 (Il 475.16) Bonde 12 Not Nonutility Property 3 225, ' 3,366,2 3W Reacquired Bonde 2,209,914,000 e0 1,944,114,000.00 13 investment in Subsidiary Companies Ur Gaed Premiuso en Long-Term Debt 500,949.62 553,363.96 to Southern Electric Cenerating Co, Common Stock 16,400,000.00 16,400,000.60 Unamortised Discount on Long-Term Debt (16,007.431.13) (13,788,234.26) 15 Other investments 40,254.56 44,254.56 Other Long-Term Debt SM,925.078.42 206. 82 4,226. M 16 Sinking Funds 2,844.20 2,214.20 Notes 2,350,040.e0 3,066,083.e0 17 TOTAL OTHER PROPERTY AND INVESTMENTS 5 19,673,020.96 5 19,80s,704.43 18 Total Long-Term Debt 2,526,082,657.91 2,100,769,434.e6 19 CURRENT ASSETS TOTAL CAPITALilATION H. ML 151679_48 glM$9,ggj( 20 Cesh 11,668,444.27 13,071,384,16 CURRENT LIABillTIES 21 'speclet Degesits 4,151,131.51 3,593,205.69 22 Work 6ng Furwis 009,121.38 488,025.41 Notes Peyeble 23 Temporary Cash investseents 325.400,000.00 73,944,810.75 Acmunts Psy=ble 163,717.617,59 1 M,109,858.42 24 Notes and Accounts Receivable Peyebles to.tsoorleted Companies 12.414,000.75 19,195.626.79 25 Notes Receiveb8e 1,751,23 44,849,317. M Customer Deposits 27,720,226.00 26,088.145.00 26 Customer Accounts Receivable 100,e37,9 M.65 133,506,537.39 Ine me Temos Accrued: 27 Other Acomunts Receivable 45,150,551.00 27,132,593.13 Federal 28 Accumulated Provision for Uncollectible 19,728,023.27 41,592,432.19 State 660,565.62 6,160,4ee. M 29 Accmunts - Credit (2,000,000.00) (994,654.91) Other Tames Accrued 38,587.252.71 35,742,155.16 M Receivables frnen Associated Campenies 16,779.26!.17 32,316,455.04 Interest Accrued 59,276,148.81 52.733,140.27 31 Materials and Suppeles - Fuel 200,619,245.67 207,639,554.85 Other Current end Accrued Listnfitles: 32 Materials and Suripties - Other 0, 326, M6. 49 29,865,863.e5 Dividende Dettered 8,041,066.44 e,932,244.49 38 Prepayments 4,M 5,647.73 2,445,369.53 Tau Collections Payable 0,114,140.00 7,190,341.93 34 Other Current and Acrrued Assets: Miscellaneous Current and Accrued LiaN'Itles 6,610,270.57 4,438,406.55 35 Interest and Dividends Receivable 7,632,130.06 f t. 344. M3.79 36 Rents Rarelvable 1,573,979.54 1,378,449.6e TOTAL CURRENT LIABILITIES $ MS_69e_92e_64 3 ne a62_731.es 37 TOTAL CURRENT ASSETS WJUM 5 657.377_3g M L DEFERRED DEBIT 5 DEFERRED CREDIT 5 38 Customer Advances for Construction S 124,591.79 126,e M.79 39 Unemortlied Debt Expense 7,625,260.06 6,852,310.66 Other Deferred Credits e,706,097,74 17, M9,259. 9 7 Ce Preliminary Survey and Investigation Charges 88,400.04 Unamortired Investment Credit 2 M,622,305.9? 205,774,e51. M C1 Cleering Accounts 1,276,442.33 1,964,277.27 Injuries and Damages Reserve 4,145,894.00 2,304,400.00 07 Miscellaneous Deferred Debits 7,946,259.1e 5.664.126.99 Unemortleed Cain on Reacquired Debt 1,396,640.50 554,426.54 43 Accumulated Deferred income Temos 23,467,263.00 20,317,604.00 Miscellaneous Operating Reserves 1,100,000.00 C4 Accumulated Deferred income Tames $12,239,746.00 543,279,990.00 45 TOTAL DEFERRED DEBITS L,, M j).691.31 ),,,, M jg h TOTAL DEFERRED CREDITS W W3)M9LR L.Jikhl%R 46 TOT AL ASSETS AND OTHEft DEBITS M6Mee_604.12_ 54.935.655.420,75 TOTAL CAPITAlllATION AND LIABILITIES $MIMSMgML M3(6}M23,JL

CEORCI A PO4FER COMPANY SOURCES OF FUNDS FOR CROSS PROPERTY ADDITIONS June 1991 (in Thousands of Dollars) CURRENT MONTf 4 YE AR -TO-D ATE Source of Funds for Cross Property Additions : Not Iname 15,023 20,496 76,025 99,056 Add (deduct) principal noncash items - Depre(tation and emortlaetion 16,006 19,150 93,562 99,927 Deferred income tones, not 6,492 7,732 30,009 33,540 Deterred Investment tax credit 3.517 5,956 12,575 33,494 Allowance for equity funds used during construct 6on (3,335) (2,590) (19,231) (19,110) Less - Dividends on common stock 76,300 67,200 Dividends on preferred stock 2,929 2 C35 17,470 17,644 34,774 44,isi 100,050 154,078 Decrease (increase) in not current essets, excludh J long-term detst and preferred stock due within one year - Cash and short-term Investments (144,086) 55,410 (125,747) (30,529) R eceivables (19,717) (25,331) 52,371 (69, DOS) Fossil fuel stock 0,947 9,507 $6,741 (42,299) Material and supplies (622) (1,190) 40 (2,166) i Revenues to be refunded (t,570) (5,067) l Accounts payable 24,611 (12,556) 4,414 (7,602) l Taues accrued (9,979) 21,623 (49,504) 30,994 l Interest accrued (5,422) (0,215) 4,422 697 i Other, not ( M,591) (31,7I7) 2,It2 552 Other, not, including allowance for equity funds (100,059) 7,539 (56,793) (125,305) used during anstruction (2,108) (20,016) 2.633 (4,915) Total Internal sources t ies, i3U 30,040 54.6s0 23,051 l Esternal Sources - l First mortgage bonds sold 125,000 175,000 Less-Bonds retired or refunded at meturity 20,000_ 20,000 15,000 105,000 155,000 (15,000) Preferred stock sold 75,030 75,000 Preferred stock reacquired, et cost (420) (42) (2,390) ( 3,467) Cash contributions by parent company 15,000 30,000 Pollution control obligations 9,055 2,663 22,795 11,875 increase (decrease) in other long-term debt 337 (159) 2,022 (1,125) i l Notes (716) 120 Sales of facilities, not book value 316,e77 Total enternal sources 204,772 2,462 208,789 307 600 Gross Property Additions u s7s. 33yg ,J3(gq( dh{ 1

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~ Q. Georgia Power Company 333 Piedmont Avenue PO. Box 4545 Atlanta. Georgia 30302 Telephone: 404-526-6526 Georgia Power Companyis an - Investor-owned electric utility serving 57.000 of the state's 59.000. j square miles.The Southern Company is the parent firm for Georgia Power. as well as Alabama Power, Gulf Powerand Mississippi Power. Together these companies comprise the Southern electric system. Acopy of Form 10-Kas filed with the Securities and Exchange '- ] Commission will be pro /ided upon written requesttotheofficeof the D Corporate Seci etary. . For additional information, contact Mr. W. L Westbrook. Vice President. Secretary and Treasurer-404-526-6526 Registrar Trust Company Bank. Atlanta I_ All Preferred Stock ^ Transfer Agents Officeof theCompany. Atlanta Trust Company Bank. Atlanta All Preferred Stock a Dividends Paid It has been determined that all dividends paid onGeorgia Power Company Preferred Stock (Including - Class A Preferred)for the year 1980. p are 100% taxable. i This annual repor t is submitted as information for stoc kholders and is not intended for use in connection with any sale or purchase of, or any. i offers or solicitation of offers to buy or sell. any . securitles. except only to the extent incorporated by reference in a prospectus. ~ l_ s

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F j Georgia Power Company 3 l Hl;hlights i 1980 1979 % Change Financial (in thousnds of dollars) Total Operating Revenues. 51,808,408 S1.519.942 19.0 Total Operating Expenses 51.492.120 S1.255.258 18.9 i Net income Af ter Dividends on Preferred Stock. 5195.345 S145.512 34.2 j Dividends on Common Stock. 5136,400 $ 131.100 4.0 Gross Property Additions. 5690,959 5607.616 13.7 Net Utility Plant (year-ena). 54,434,683 54.301.454 3.1 Electric Operations Kilowatthour Sales (millions). 46.306 43.235 7.1 l Customers Served (year-end). 1,215,714 1.192.770 1.9 Capital Structure Ratio <,(year-end). ) Long-Term Debt-b d.42% 57.08% Preferred Stock. 8.75% 9.35% .) Preferred Stock Subject to Mandatory l Redemption

• 1.71%

1.95% Common Equity. 32.12% 31.62% i Coverage Ratios First Mortgage Bonds. 2.86 2.34 j Preferred Stock. 1.81 1.66 I

• locludes amounts due within one year 1

i 1 Table of Contents I Highlights 3 Letter to Investors 4 Georgia's Electric System 6 ) Selected Financial Data 7 Management's Discussion 7 Financial Statements 13 1 Auditors' Report 21 Directors and Officers 22 l 4 1 4 _,., _ _.. =..,_ , _,.,..,.., ~, _, ...,.n.....,,._y_

] Georgia Power Company 4 Letter to ineestors

OR GEORGI A POWER Company, of the Georgia Public Service Commission 1980 was a year of overall progress.

and more clearly define certain accounting I During the year we received additional 1Matments in rate cases. revenues in both our retail and resale Customers were encouraged to conserve jurisdictions. brought the last unit of energy whenever possible through continuing the Willace Dam f acility into service, pursued load management programs in 1980. spotlighted additional off-system power sales. Completed by such activities as the testing of load control certain sale and repurchase transactions devices. energy audits and Good Cents Home involving the Scherer Electric Cenerating Plant. programs. Despite these efforts. electricity used a four-unit coal fired facility. and continued during the summer heat wave reached an ali negotiations ccncerning additional participation time high. Even with the Governor issuinq a call in our generating facilities. for conserving power. urging all Georgians to Net income for the year totaled S195.3 eliminate non-essential use of electricity and million. comparea with 1979 net income of with industrial customers having been asked to S145 5 million. marking the thn d consecutive cut consumption. our customers used almost year of improvement. The increase in 1980 is 3 billion kilowatt hours from July 6 through primarily attributab'e to additional revenues July 20 This was almost 27 percent more than resulting f rom higher rates and greater kilowatt-was used in the same period in 1979. The hour sales. of f-system power sales and gains combined demands of the Company's ) f rom the 2,ates of assets. customers. and the customers of Oglethorpe T he year began on a positive note with the Power Corporation (OPC5. the Municipal Electric conclusion in January of proceedings related Authority of Georgia (MEAG) and the City of to our November 1978 retail rate case filing. Dalton (Dalton) reached a new peak of 11.154 Approval was received in May 1980 f rom the megawatts on July 16th. surpassing by almost Federal Energy Regulatory Commission (FERC) 1.000 megawatts the previous record set last with respect to rate case settlement agreements year. The new peak demand was an increase reached in 1979 between the Company and its of almost 10 percent over last year's peak. In I wholesale customers We filed another addition. a new record wiater peak demand of wholesale rate increase application with FERC 9.203 megawatts was set in January.1981. By in April 1980 with new rates becoming cffective having the generating capacity available and in November,1980. Also in November. Our plants in good operating condition. we settlement agreements were reached with were able to meet our customers energy j respect to these rates. These settlement requirements These increased sales were a agreements have been submrtted to FERC for significant f actor in our improved earnings. approval Based on these agreements. the Another factor which helped to improve j l Company will retain on an annual test year basis approximately 5271 million in increased yy c - yy-r x y a i m revenues. s ;3 a. l

h During the 1980 session of the Georgia

'4 Geiieral Assembly. legislative proposals for I ~ : I-i f "b ) ' ] improving the regulatory process were passed E ~' l in both the House and Senate. but the session V L-t $4 I $g - ended before a compromise measure could be ' d)I~ 'pl [ [y' t considered Similar legislation was passed by the 1981 Georgia C*eral Assembly and was 1-i signed into law Dy the Governor. This C legislatiori is intended to strengthen the staf f j 1 h i \\ ~ l x. i l 1 R ~ Robert W Scherer

5 earnings f or the year was of f-system bulk-utilities on possible additional participation in power sales to neighboring utilities. In 1980. Plant Vogtle and Units 3 and 4 of Plant Scherer. the Company, along with other operating Asa resultof thesediscussions, Gulf Power companies within the Southern electric Company, an af filiate of the Company. signed a system. have signed long-term bulk-power contract effective as of February 19,1981for contracts with five southeastern utilities. These a 25 percent undivided interest in Plant Scherer utilities are otherwise primarily dependent on Units 3 and 4. oil as a f uel for generation of electricity. Our continuing progress is a reflection of Certain provisions of these contracts allow us a coordinated management effort. As a result to interrupt these sales, if necessary, to serve of continuous review of the Company's our territorial load These arrangements direction and implementation of positive enable us to utilize certain capacity, if courses of action, we have become a stronger available. to meet the needs of these utilities. Company. better prepared to meet the Not only are these transactions advantageous challengesof tomorrow. f rom a business viewpoint, we also believe Our progress in 1980 could not have been that they are in the national interest since they achieved without the dedicated efforts of our reduce the country's dependence On oil. employees and the support of our investors. Construction expenditures for the year As we enter 1981, we continue our commitment amounted to 5691 million. Work continued on to maintaining financial integrity wnile providing the coal-fired units at Plant Scherer. the Vogtle quality service to our customers. Electric Generating Plant and the Rocky Mountain pumped storage hydro plant. During 1980. a combustion tur bine was p! aced into / y service at the Wansley Electric Generating Plant. The remaining five units of Wallace Dam were also completed and placed in service this Robert W. Scherer year. T his facility increased our hydro generating President and Chief Executive Officer capacity by 74 percent and is the first pumped March 3.1981 storage hydro plant in the Southern electric system. In late 1980, financing arrangements were completed for the Company's new corporate headquarters in downtown Atlanta. This new facility will bring together personnel from locations throughout the city. With its innovative design and energy-ef ficient features. it is anticipated that the building will use 55 percent less energy than required for similar structures, making it one of the most energy-efficient buildings of its kind in the nation. To offset part of the financial burden of our l l construction program. property sales were consummated during the year. The Company sold a Copercent interest in Plant Scherer Units i 1 and 2 to OPC and an additional 15.1-percent interest in these units to MEAG. The Company received approximately S416 million f rom these transactions. In conjunction with these sales, we also repurchased the total ownership of MEAG and Dalton in Plant Scherer' Units 3 and 4. thus restoring the Company's 100-percent ownership of these Units. Discussions continued during the year with neighboring

Georgia Fbwer Company 6 Georgla's Electric Sy2 tem - ~ - _ _ __ j Generating Units Under Construction Name Plate Commercial Fossil Rating (kilowatts) Operation Date Plant Scherer Unit No.1. 68.712(1) '982 Plant Scherer Unit No. 2. 68.712(1) 1984 Plant Scherer Unit No. 3. 818.000(1) 1987 Plant Scherer Unit No. 4. 818.000(1) 1989 Nuclear Alvin W. Vogtle Nuclear Plant Unit No.1. 588.120(1) 1985 Alvin W. Vogtle Nuclear Plant Unit No. 2. 588.12O(1) 1987 Hydro Bartletts Ferry Unit No. 5 and 6. 100.000 1985 ' Goat Rock Unit No 7 and 8. 67.000 1988 Pumped Storage i Rocky Mountain Unit No.1. 2 and 3 675.000 1987 (1) GPC portion only, excluding joint participants ! 1980 Jointly Owned Plants ' Plan' . Hatch Vogtle Scherer Wansley i Units 1-2 1-2 1-2 3-4 1-2

Megawatt

' Capacity. 1.630 2.320 1.636 1.636 1.730 Owned Georgia. .50 10 50.70 8.40 100.00 53.50 ( OPC. 30.0 30.00 60.00 30.00 MEAG. 17.70 17.70 30.20 15.10 I Dalton 2.20 1 60 1.40 1.40 Proposed 1981 Ownership t II w-w mz,x m nam.w y Plant Scherer E r ' nom.9 Legend Units 3-4 wM ",'Cf,, A Nuclear S Fossil E Hydro Capacity. 1.636

• ""~ L e#

' 1( Megawatt " " " " " " ' * * = O C.T. I; **a,, }q / % Owned Georg:a. 75 00 .s-e snom n ( Gulf. 25 00 e u \\ (1) Plant Vogtle [,*y tw mm. l ._,o,,,, Certain Florida Utilities are f Qg reviewing the possibility of g se,,,, ,_ b 9^ membership in Plant Vogtle. i _ _f*,'."w*'**w,.y^~ *"v

• Q v.

9 w a c t.?, w o., [13 k i Nameplate Generating Capacity 3 p (Year-end 1980) Megawatts ,0j k ( Steam /*

• ""a i

Fossil. .8.850 ,,,,,o Nuclear. .817 4f Gas T1Jrbines 1.231 g j Hydro 75_4_ g \\j 7%J Tctal Capacity. I1.652 4

==

a w w;;_,,. y tJ l

7 Georgia Power Co_mpany Selected Financial Dato Donars in thousands Years Ended December 31 1980 1979 1978 1977 1976 Operating Revenues. 51,808,408 51.519.942 51.475.024 S1.301.237 S1.170.046 Netincome After Dividends on Preferred Stock. 5195,345 S145.512 5136.014 5111.686 S121.118 Total Assets. 55,288,504 S4.847.197 S4.524.415 S4.166.788 S3.904.549 Long-Term Debt. 52,326,627 S2,168.272 S1.953,553 S1.880.798 S1.827.470 Preferred Stock Subject to Mandatory Redemption. 567,500 571.250 575.000 575.000 575.000 Cash Dividends Declared on Common Stock. 5136,400 5131.100 5119.225 5109.400 S100.400 Gross Property Additions. 5690,959 5607.616 5500.719 5534.153 S404.435 Kilowatthour Sales (in thousands). . 46,305,741 43.234.692 44.145.118 43.818.826 41.329.966 Customers (year-end). 1,215,714 1.192.770 1.164.822 1.138.470 1.112.063 Average Revenues per Kilowatthour-Total Sales-(cents). 3.87 3.48 3.31 2.94 2.81 Average Cost of Fuel per Kilowatthour Generated -(cents). 1.51 1.42 1.37 1.27 1.12 Additional financial and statis'icai information Report.This report will be provided upon written for the period 1970-1980 is provided in the request to the office of the Corporate Secretary. Company's Financial and Statistical Review Management's Discussion and Analysis of Results of Operations and Financial Condition Results of Operations EORGI A POWER'S financial per-1979 and 1980. On April 4.1980. the Company Gformancecontinued toimprove filed an application for increased wholesale despite the increasing cost of gen-rates which became effective in November, erating electricity. After two years of 1980. Thus the f ull effect of these rates are not decline. the Company's earnings reflected in 1980 earnings. See Note 2 to the began to improve in 1978 and have shown financial statements for further discussion of steady improvement through 1980. Net income rate matters. During 1980. the Southern electric for 1980 totaled S195.3 million. an increase of system entered into contracts to sell 700 34.2 percent over 1979 and 43.6 percent megawatts of capacity to neighboring utilities. over 1978. The contracts cover periods of up to six years. Increases in operating revenues in en ei The Company's portion. In 1980. of these bulk-period are attributable principally to rate in-power sales amounted to 2.1 billion kilowatt-Increases. recovery of increased f uel costs, and hours and revenues of 556 million. increased energy sales in 1980 and 1978. Retail Total Company kilowatthour sales have revenues over the period 1978 to 1980 increased increased 5.0 percent from 44.1 billion in 1978 22.7 percent. The most significant increase was to 46.3 billion in 1980. The rate of increase in in 1980 which reflected the first full year of new energy sales has been declining as a result of retail rates. Wholesale revenues decreased only customer conservation and wholesale 3.5 percent as compared with the 16.6 percent customers' increased ability to meet their own decrease in wholesale kilowatthour sales over electrical demands. The increases in sales the same period. This was primarily due to wholesale rate increases implemented in 1978.

8 \\ during 1980 were primarily due to the extended the income tax etfect of the debt portion results summer heat wave and increased sales to in a non-cash charge. The allowance for f unds neighboring utilities. The combined demand of used during construction. Det of incorae taxes. the Company's customers and the customer s as a percent of net income amoJnted to 29 of Oglethorpe Power Corporation (OPC). the percent in 1980.41 percent in 1979 and 39 Municipal Electric Authorityof Georgia (MEAG). percent in 1978. and the City of Dalton (Dalton) reached a new Interest expense has risen steadily since peak of 11.154 megawatts on July 16th, 1978. reflecting the higher cost of new debt. surpassing the 1979 peak by almost 1.000 Bonds sold in 1980 carried an interest rate of megawatts. 14M percent. Up substantially from the 104 Expenses for generating electricity percent to 11 percent on bonds sold in 1979 continued to rise due to increased energy and the 9% percent to 9M percent on bonds production and inflation. Fuel cost showed the sold in 1978. most substantial change increasing 29 8 Inflation has a significant effect on the percent from 1978 to 1980. However, under Company due to regulatory constraints. See fuel cost recovery mechanisms. the Company Note 13 to the financial statements for recovers the actual cost of fuel burned. Net supplementary information concerning the purchased power expenses have decreased approximate effects of inflation. S75.1 million from 1978 to 1980. reflecting the The results of operations discussed above Company's improved plant availability and are not necessarily indicative of future earnings. additional generating capacity. It is expected that higher operating costs and increases in depreciation and amortization carrying charges on increased investment in each year are due principally to the continued plant, if not offset by proportionate increases growth in depreciable plant in service. The in operating revenues (either by periodic rate composite straight-line depreciation rate was relief or increases in sales), will adversely approximately 3.6 percent in 1978. 3.7 percent af fect f uture earnings. Increases in sales in the in 1979. and 3.8 percent in 1980. future will be affected by the extent of energy Fluctuations in income taxes resulted f rom conservation practiced by customers. the changes in income betore income taxes, and elasticity of demand, weather, and the rate of from the reduction of the federal income tax economic growth in the system service area. rate f rom 48 percent to 46 percent in 1979. In recent years. earnings have tended to decline Federal and state income tax provisions are during periods following the fu;l 12 months' detailed in Note 5 to the financial statements. realization of gener al rate increases and prior The allowance for funds used during to receipt of f urther rate relief. construction represents the cost of capital applicable to utility plant under construction Financial Condition which is not included in the rate base. Although

OR THE YEARS 1978 through the equity portion of this credit represents non-1980. gross plant additions were cash income, a significant portion of current S1.8 billion. These additions reflect cash flow results from the allowance of a return continuing investment in major on and recovery through depreciation of generating projects and the con-previously capitalized amounts. In addition.

structuring and upgrading of transmission and distribution lines. Substations and other facilities. Plant additions were financed primarliy by the !ssuance of S322 million of long-term debt. 545 million of preferred stock and the sale of undivided interests in certain plant facilities (S447 million). The Company's new corporate headquarters building was financed through a sale-leaseback arrangement and was recorded in utility plant and other long-tarm debt in October,1980. The effective cost to the Compariy of this financing arrangement is 8.2 percent, considerably leis than the cost of first mortgage bond financi ig. The balance of funds was provided from cammon equity contributions from The Soutaern Company and

l 9 internal sources. See Statements of Sources of in order to issue additional long-term debt Funds for Gross Property Additions for further and preferred stock, the Company must comply details. With certain earnings coverage requirements The Company's capitalization ratios have contained in its mortgage indenture and remained approximately the same in recent corporate charter. Earnings coverage of two years but the composite interest rate on long-times annual Interest charges or. orst mortgage term debt has increased from 7.97 percent at bonds is required for the issuance of additiona! December 31.1977 to 8.44 percent at December bondsandoneandone-half timesannual 31.1980 and the composite dividend rate on interest charges and preferred stock dividends preferred stock has increased from 8.14 is required for the issuance of additional percent to 8.38 percent for the same period. preferred stock. The coverages for the years At December 31,1980, the Company had ended December 31.1980 and 1979, were 2.86 S204.4 million of temporary cash investments and 2.34. respectively, for bonds and 1.81 and to meet its short-term cash needs. To further 1.66, respect!vely, for preferred stock. provide financial flexibility, the Company The ability to maintain these coverages and cur rently has S450.750.000 in available lines of to generate funds for day-to-day operations and credit. 5400.000.000 of which is available under to finance the construction program Is primarily revolving lines of credit agreements for a period dependent on receiving adequate and timely of three years. and 550.750.000 of which is rate increases. The Company is committed to subject to annual renewal. No short-term bank maintaining its financial Integrity by continued loans were outstanding at year end. emphasis on operating efficiency and by The increase in other accounts and notes vigorous pursuit of rate increases when receivable is partially attributab!e to a note appropriate. Should the Company be unable to received in connection with the sale-leaseback obtain f unds from external sources in amounts of the Company's new corporate headquarters which, together with internally generated building. Payment of a major portion of this funds, vwill be adequate to carry out the present note was received by the Company in.lanuary, construction program. delays or cancellations 1981. The remaining increase is primarily of certain projects could become necessary. attributable to receivables from joint owners of generating facilities. Payment of these accounts was received in February.1981. The Company's constructico expenditures are estimated to total approximately 52.5 billion for the three years 1981 thrDugh 1983. The construction program is subject to change and excludes amounts applicable to portions of facilities sold or to be sold as discussed in Notes 3 and 4 to the financial statements. At December 31.1980, substantial purchase commitments were outstanding in connect!on with the construction program and for the purchase of coal and nuclear fuel under long-term contracts. In addition to the funds required for the construction program, approximately 568.1 million will oc required by the end of 1983 in connection with the sinking fund requirements and maturities of long-ter m deDt and preferreu stock subject to mandatory redemption. It is anticipated that the fur.js required will be derived f rom sources similar to those usedinthe past. A Company goalisto generate Internally a greater portion of the funds needed for total construction expenditures.

Georgia Power Company 10 Balanca Sheets in thousand3 December 31 1980 1979 ASSETS Utility Plant Plant in serv ce. at original cost. 54,710.260 54.415.038 Less-Accu riutated provision for depreciation. 1.141,263 1.006.439 3,568,997 3.408.599 Nuclear fuel, at amortized cost. 54,831 46.795 Construction work in progress (Note 3). 810,855 846.060 j 4,434,683 4.301.454 \\ Other Property and Investments Southern Electric Generating Company (Note 4). 16,400 16.400 Nonutility property. net. 3,299 3.254 19,699 19.654 Current Assets Cash. 7,731 6.081 Temporary cash investments, at cost. 204,400 51.690 l Receivables - l Customer accounts receivable. 157,488 110.901 Other accounts and notes receivable. 136.323 54.027 l Intercompany. 13,886 15.593 l Accumulated provision for uncollectible accounts. 12,000) (1.200) Fossil fuel stock, at average cost. 265,352 245.341 i Materials and supplies. at average cost. 30,375 27.700 Prepayments. 4,744 2.388 818,299 512.521 Deferred Charges Debt expense. being amortized. 6,771 6.992 Miscellaneous. 9,052 6.576 15,823 13.568 55.2_88,5_04 54.847.197 f f I i I l i 1 i t l T ne accompanying notes are an integrai part of tnese statements

Georgia Power Company 11 Balinca Sheetsin thousands December 31 1980 1979 CAPITALIZATION AND LIABILITIES Capitalization (see accompanying statements) Common stock equity. 51,314,315 S I.210.868 Preferred stock. 357.844 357,844 Preferred stock subject to mandatory redemption (Note 8). 67,500 71.250 Long-term debt. 2,326.627 2.168.272 4,066,286 3.808.234 Current Liabilities Preferred stock sinking fund requirement (Note 8). 2,575 3.520 Long-term debt due within one year (Note 7). 22.796 17.169 Accounts payable-Intercompany. 14,808 12.203 Other. 165,045 149.974 Revenues to be refunded (Note 2). 1.569 5.067 Customer deposits. 27,229 26.282 Taxes accrued - Federal and state income. 74,330 23.G79 Other. 34,230 28,791 Interest at rued. 54,855 52.036 Miscellaneous. 14,197 13.280 411,634 332.001 Deferred Credits, etc. Acc'imulated deferred income taxes. 560,403 501.009 Accumulated deferred investment tax credits. 229,639 193.980 Miscellaneous. 20,542 11.973 810,584 706.962 Commitments and Contingent Matters (Notes 2. 3. 4 and 11) 55,288,504 S4.847.197 l [ I I i I i i I i I i l l T he accompanying notes are an integral part of these statements

Georgla Power Company 12 Stat;ments of Capitalizationin thousands December 31 1980 % of Total 1979 %of Total Common Stock Equity Common Stock (without par value) authorized 15.000.000 shares. Outstanding 7.761.500 shares. 5 344,250 5 344.250 Other paid-in capital. 696,800 652.800 Premium on preferred stock (Note 8). 1,636 1,104 Earnings retained in the business (Note 10). 271,6_2_9 212f714 Total common stock equity. 1,314.3_1_5 32.3% 1.210.868 31.8% Cumulative Preferred Stock (without par value) authorized 14.000.000 shares. Outstanding 6.578.439 shares Class 5100 stated value- $4.60 to 56.60 Series. 117,844 117.844 57.72 to 57.80 Series. 105,000 105 000 S8.20 to 59.08 Series. 35,000 35.000 525 stated value-52.52 Serles 50,000 50.000 S2.56 Series. 50,000 50.000 Total (annual dividend requirement 527.350.000). 357,844 8.8 357.844 9.4 Cumulative Preferred Stock (without par value), subject to mandatory redemption (Note 8) authorized 3.000.000 shares. Outstanding 2.803.000 shares $25 stated value-52.75 Series sannual dividend requirement,7.708.000). 70,075 74.770 Less amount due within one year. 2,575 3.520 Total (excluding amount due within one year). 67,500 1.7 71.250 1.9

Long-Term Debt l

First mortgage bonds (Note 7)- Maturity Interest Rates April 1.1980. 2-7/8%. 15.000 June 1.1981. 3-1/2% 20,000 20.000 July 1.1982.. 3-3/8%. 20,000 20.000 April 1,1983. 3-3/4%. 8,073 8.073 l April 1.1984. 3-1/8%. I1,000 11.000 May1.1985.. 3-3/8%. 11,988 11,988 l 1906-1990.. 3-5/8% to 5-1/4% 56,978 56.978 199l 1995.. 4-3/8% to 4-7/8%. 127,500 127.500 1996-2000.. 5-3/4% to 11-5/8%.. 423,107 428.107 2001-2005. 7-3/8% to 11-3/4%. 825,968 825.968 ) 2006-2010.. 9-5/8% to 14-1/2%. 549,500 474.500 Total first mortgage bonds 2,054.114 1.999.114 Other long-term de.x (Note 6). 309,175 199.820 Unamortized debt premium (discount) net. t 13,866) (13.493) Total long-term debt (annual interest requirement S198.823.000). 2,349,423 2.185.441 Less amount due within one year. 22,796 17.169 Long-term debt excluding amount due within one year. 2,326,627 57.2 2.168.272 56 9 Total capitalization 54.066,286 _100.0% S3 808.234 100.0 % The accompan'/ing notes are an integral part of these statements l

Georgia Power Company 13 Statement]of income inincusands Years Ended December 31 1980 1979 1978 Operating Revenues. 51,808,408 S1,519.942 S1,475.024 Operating Expenses Operation-Fuel. 716,566 598.254 551.971 Purchasec and Interchanged power, net. 4,324 28.519 79,470 Other. 222.155 182.386 168,761 Maintenance. 144,344 126.051 121,263 Depreciation and amortization. 153,245 133,888 118,208 Taxes other than income taxes. 73,454 67,736 65,364 Federal and state income taxes (Note 5). 178,032 118.424 126,953 Total operating expenses. 1,492,120 1.255.258 1.231.990 Operating income. 316,288 264,684 243.034 Other income Allowance for equity funds used during construction. 35,663 40.224 36.774 i Gain on sales of facilities (Note 4). 29,282 3.323 4.421 Interest income. 25,552 34,472 18.336 1 Other, net. 4,047 3.415 2.473 Income taxes appilcable to other income (Note 5). 122,570) (14.315) (9.494 Income before interest charges. 388,262 _ 331.803 _ 295.544 Interest Charges interest on long-term debt. 186,210 185.029 158,460 Allowance for debt funds used during construction. (40,063) (3P.082) (32.067) Other interest charges. 10.741 3.579 1,660 Amortizaticn of debt discount, premlum and expense. net 805 979 997 Net Interest charges. 157,693 151.505 129.050 Net income. 230,569 180.298 166.494 Dividends on Preferred Stock. 35,224 34.786 30.480 Net income after Dividends on Preferred Stock. 5 195,345 S 145.512 S 136.014 Statements of Earnings Retained in the Business in thousands Years Ended December 31 1980 1979 1978 Balance, beginning of period 5 212,714 S 200.097 S 183.308 Add (deduct): Net income after dividends on preferred stock. 195,345 145.512 136.014 Cash dividends paid on common stock. I136,400) (131.100) (119.225) Preferred stock issuance expense. (30) (1.795) Balance, end of period (Note 10) 5 271,629 5 212.714 S 200.097 Statements of Other Pald-In Capital in thousands Years Ended December 31 1980 1979 1978 Balance, beginning of period. 5 652,800 5 627.800 5 557.800 Cash contribution to capital by parent company. 44,000 25.000 70.000 Balance, end of period 5 696,800 S 652.800 $ 627.800 The accompanying notes are an integral part et these statements

l Georgia Power Company 14 Stat;ments of SourcIs of Funds for Gross Property Additi;ns in thousands Years Ended December 31 1980 1979 1978 Sources of Funds for Gross Property Additions: Net income. $230,569 5180.298 5166.494 Add (deduct) principal noncash items-Depreclation and amortization. 184,401 153.962 132.925 Defer red income taxes, net. 79,343 80.286 77,909 Deferred Investment tax credits. 40,823 32.395 57,220 Allowance for equity funds used during construction. (35,663) t 40.224) (36.774) 499,473 406.71/ 397.774 Less-Dividends on common stock. 136,400 131.100 119.225 Dividends on preferred stock. 35,224 34.786 30.480 327.849 240.831 248.069 Dectease (Increase) In net current assets, excluding long-term oebt ano preferred Stock due within one year-Cash and short term investments. (154,360) 190.526 (21,752) Receivables. (126,376) (43.786) (16.079) Fossil fuel stock. (20,0111 (46.447) 12.602 l Materials and supplies (2,675) (5.715) (3.139) l Revenues to be refunded. (3,498) (1.932) (6.434) Accounts payable. 17,676 37,152 7,604 Taxes accrued. 56,090 15.037 (41.663) Interest accrued. 2,819 2.351 4.337 Other, net. (492) 3.442 2.926 1230,827) 150.628 (61.598) Other. net. Including allowance for equity f unds used during construction. 3,256 15.128 23.202 TotalInternal sources. 100,278 406.587 209.673 External Sources-First mortgage bonds. 75,000 225.000 200.000 B inds retired or ref unded at maturity. (20,000) (144.395) (14.049) 55,000 80.605 185.951 Preferred stock. 50.000 Preferred Stock reacquired. (4,695) (230) Carh contributions by parent company. 44,000 25.000 70.000 Pollution control obligations. 40,673 13.455 26.550 Increase (decrease) in other long-term debt. 68,682 4.692 (23.952) Sales of facilities, net book value (Note 4). 387,021 27.507 32.497 ( Total external sources 590,681 201.029 291.046 Gross Property Additions. $690,959 5607.616 5500.719 l T he accompanying notes are an integral part of these statements.

15 Georgia Power Company Notes to Financial StatIments December 31.1980.1979 and 1978 Note 1. Summary of Significant Accounting the spent fuel may require adjustments to fuel Policies: expense. Pending ultimate disposition, sufficient storage capacity for spent fuel is available at GENERAL. The Company is a wholly owned Plant Hatch into 1985. The Company is currently subsidiary of Pie Southern Company which is expanding its storage facilities at Plant Hatch the parent company of four operating companies and upon completion there will be sufficient and a system service company. The operating storage capacity into 1999. Companies are engaged in the business of pro-viding electric utlilty service in four southeastern states. Operating contracts among the com-PENSION COSTS. The Company has a trusteed panies covering interconnection arrangements, and noncontributcry pension plan wh'ch covers interchange of electric power and joint owner-substantially all regular employees. The pol lcy ship of generating facilities are subject to regu-of the Company is to fund each year's accrued lation by the Federal Energy Regulatory pension costs for the plan which amounted to Commission (FERC) and/or the Securities and 518.377.000 in 1980. 516.501.000 in 1979 and Exchange Commission. The system service 513,486.000 in 1978. Of these amounts. Company provides. at cost, technical and other 511.618.000 in 1980. 510.709.000 in 1979 and specialized services to the parent company and S8.519.000 in 1978 were charged to operating to each of the operating companies, expenses and the balance Nas charged to Con-The parent company is registered as a hold-struction and other accounts. Ing company under the Public Utility Holding -The actuarial present value of accun. slated Company Act of 1935 and it and its subsidiaries plan benefits at January 1. 1980, totaled are subject to the regulatory provisions of the $141.351.000 for vested benefits and 58.044.000 Act. The Company is also subject to regulation for nonvested benefits. These amounts were by the FERC and the Georgia Public Service determined on the basis of accrued benefits Commission (GPSC) and follows generally ac-as of January-1,1980, whereas. the plan is cepted accounting principles and the accounting funded based on the premise that the plan will policies and practices prescribed by the respec-continue in existence, which requires that f uture tive commissions. events be considered. The net assets available for benefits at January 1.1980, amounted to S170,332.000. The annual rate of return as-UTILITY PLANT. Utility plant is stated at original sumed in determining the actuarial present cost. Such cost includes applicable administra-value of accumulated plan benefits was 5%. t~ /e and general costs, payroll related costs The unfunded prior service cost under the such as pensions, taxes and other fringe bene-plan and supplemental contracts amounted fits and the estimated cost of funds used durin9 to approximately S19,475.000 and S20.900.000 construction. Maintenance and repairs, includ-at December 31,1980 6nd 1979. respectively, ing replacement of minor items of property, are and is being amortized over a period of approxi-Charged to maintenance expense accounts as mately 15 years. Incurred. The cost of replacements of property is charged to the utility plant accounts. DEPRECIATION. Depreciation is provided on the original cost of depreciabb utility plant in service, principally on a straight-ilne basis over REVENUES. Reve9es are included in income the estimated composite serw'e life of the as billed monthly to customers on a cycle basis. property. The depreciation provisions approxi-mated 3.8%. 3.7% and 3.6% of the average FUEL COSTS. Fuel costs are expensed as the cost of depreciable utility plant during 1980. fuel is cor sumed. The Company is a!' owed by 1979 and 1978. respectively.- Such provisions state law and FERC regulations to recover fuel include a factor to provide for the expews costs and net purchased energy costs through cost of decommissioning nuclear facilities, fuel cost recovery mechanisms which are ad-The Company's portion of the cost of decom-Justed as necessary to reflect increases or de-missioning these Jointly owned facilities, creases in such costs. Revenues are adjusted based on decommissioning promptly after the for differences between recoverable fuel costs unit is taken out of service, is estimated at ap-and amounts included in current rates. proximately 525.000.000 each for the two units The cost of nuclear fuel. Including a pro-at Plant Hatch. This estimate will be adjusted vision fGr the estimated cost of permanent periodically to reflect changing price levels stcrageof spent fuel. is amortized tcJuel expense and technology. When property subject to de-based on the quantity of heat produced for gen-preciation is retired or otherwise disposed of, eration of electric en6Tgy. Such amortizathn its cost, together with its cost of removal less was $20,756.000 in 1980. $11,153.000 in 1979 salvage, is charged to the accumulated pro-and $6.358.000 In 1978. Final disposition of vision for depreciation.

16-INCOME TAXES The Company follows de-flect the proposed sale of portions of Plant ferred income tax accounting for all significant Vogtle (see Note 4). The construction program income tax timing ditferences. The Company is subject to periodic review and revision, and is included in the consolidated federal income actual construction costs to be incurred may tax return filed by The Southern Company. See vary from such estimates because of various Note 5 for further information regarding in-factors such as increased costs, revised load come taxes. estimates, the availability and cost of capital, the granting of timely and adequate rate in-ALLOWANCE FOR FUNDS USED DURING creases by appropriate <.ommissions, and CONSTRUCTION (AFUDC). AFUDC represents changes in the amount and timing of proposed the estimated debt and equity cost of capital asset sales. funds which are applicable to utility plant while The Company's construction additions are under construction. The composite rate used expected to be financed from the issuance of by the Company In 1979 and 1978 to capitalize preferred stock and long-term debt, the receipt the cost of funds devoted to construction was of common equity contributions from The 7.5% (net of income tax) as directed by the Southern Company, notes payable, asset sales GPSC. Beginning January 1.1980, the Company and internal sources. At the beginning of 1981, was directed by the GPSC to calculate the rate the Company had 5450.750.000 of unused lines in accordance with the formula prescribed by of credit. S400.000.000 of that amount in re-the FERC. The rate for 1980 was 7.87% (net of volving credit for a period of three years under income taxt The Company accounts for the agreements with nine nonterritorial banks and income tax effect of capitalized debt cost as a S50.750.OOO ln lines of credit subject to annual charge to income tax expense associated with renewal from one nonterritorial and various operations with a corresponding credit to allow-territorial banks. In connection with these lines ance for Gebt funds used during construction. of credit. the Company has agreed to pay cer-The income tax effect of capitalized debt cost tain fees and/or maintain compensating bal-was $19.909.000. S18.344.000 and S16.393.000 ances with the banks. These balances are not in 1980.1979 and 1978. respectively. legally restricted as to withdrawal by the. wm-pany. Average compensating balances during Note 2. Rate Proceedings: 1980 were approxirnately S10.500.000. There were no compensating balances at December i Or, April 4,1980, the Company filed an applica-31,1980. t' tion for increased wholesale rates with the To supply a portion of the fuel requirements FERC. The new rates were placed into effect of its generating plants the Compar.y has en-on November 1.1980, subject to refund, and tered into various long-term commitments for were designed to increase wholesale revenues the procurement of fossil and nuclear fuel. In by approximately S38.6 million annually. The most cases, such contracts contain provisions Company has reached a settlement agreement for price escalations based on the suppliers' 4 concerning this rate proceeding with its whole-cost and/or other factors. Additional commit-sale customers. subject to final approval from ments for coal and for nuclear fuel will be the FERC. As a part of the settlement agree-required in the future to supply the Company's ment, the Company would retain on an annual fuel needs. basis approximately S27.1 million in increased { revenues, based on a test year ending July 31. Note 4. Facility Sales and Joint Ownership i 1981. The Company has excluded from locome Agreements: the wholesale revenues applicable to 1980 which are expected to be refunded in 1981. Through December 31,1980 the Company has sold undivided interests in Plants Hatch. Wans-Note 3. Construction Program. Financing and ley. Vogtle and Scherer in varying amounts. Fuel Commitments: together with transmission facilities, to Ogle-thorpe Power Corporation (An Electric Mem-The Company is engaged in a continuous con-bership Generation & Transmission Corpora-struction program and presently estimates con-tion) (OPC), the Municipal Electric Authority of struction additions to be S813.'67.000 for 1981 Georgia, a public corporation and an instru-and additional amounts of S781.746.000 for mentality of the State of Georgia (MEAG) and 1982 and 5913.661.000 for 1983. These addi-to the City of Dalton, Georgia (Dalton). These ) tions include capitalized allowance for funds sales resulted in gains, after. Income taxes, of j used during construction and exclude amounts S7.425.000 in 1980. S1.503.000 in 1979 and l-applicable to portions of facilities sold. Also. S375.000 in 1978. In addition to these sales. the 1981 through 1983 estimated additions re-the Company has signed a contract to sell a flect the proposed sale of a portion of Plant 25% Interest in Plant Scherer Units 3 a"d 4 to Schere and the 1982 and 1983 additions re-Gulf Power Company, an affiliate of the Com- ,9 4 ,-y, ,.-ycv,m-,o w, wy m -.v- .-r.rr." p...,y

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17 pany.and is negotiating to sell approximately The Company's share of such amounts totated 16.5% interest in Plant Vogtle to certain Flor-S70.067.000. S65.946.000 and 551.210.000 in Ida utilities. The consummation of any future 1980.1979 and 1978. respectively, and are in-sales is subject to all requisite governmental cluded in purchased power in the Statements approvals and, except with respect to such of Income. proposed sale to Gulf Power, the completion At December 31.1980. the capitalization of of agreements satisfactory to the respective SEGCO consisted of S32.800.000 of equity and parties. and completion of satisfactory finan-547.215.000 of long-term debt on which the cial arrangements by the proposed purchasers. annual interest requirement is S3.037.000. At December 31.1980, the Company's per-Through December 31.1980. SEGCO has paid centage ownership and investment in these dividends equal to its net income. Jointly owned facilities were as follows: Note 5. Income Taxes: TJ. tai ConstrLCtrOn 7.*N N..j*l Per c et M3nt WorkIn c-.,.n, oee. sn m in seme er w ess A detail of the federal and State income tax un thousands > provisions is set forth as follows (in thousands): 1980 1979 1978 u le r Plant 1.630 SO 1% 5479.494 5 5.139 A. W Vogtle Federal - Nuclear Plant 2.320 50 7 453.878 Currently Plant Scherer payable. S 64.387 5 13.884 S (5.674) Units No 1 a 2 1.636 84 739 49.822 Deferred 90.089 78.361 83.022 Common Facilit:es - 23 5 43.593 Deferred i: ~or 'lant Wansley 1,730 53 5 277.s10 27 y ears (crL.t). (20.586) (7.997) (14.311) Deterred invest-Each participant provides for its own con-mm a struction financing. The Company includes its credits 40.823 32.395 57.220 proportionate share of plant operating expenses 174.713 116.643 120.257 in the corresponding operating expenses in the State - Statements of income. The Company is con-currently 49 6 6 992 tractually obligated to complete those jointly yyab e owned units still under construction and to oper~ Deferred in prior ate and maintain the Units as agent for tne y ears (credit). (2.645) < 950) (1.842) joint owners. 25.889 16.096 16.190 In connection with these sales. the Company Total 200 602 132.739 136 447 has entered into agreements whereby the Com-Deduct income pany is required to purchase declining fractions ta xes inciuded in of OPC's and MEAG's capacity and energy of otner income < 22. 570) (14.315) (9.494) Federal and s te the respective generating units during a period of up to ten years following commercial opera-charged to tion such purchases to be made whether or operat.ons $178.032 S118.424 5126.953 not any capacity or energy is available. The cost - - ~ ' ~ - ~- - ~ ~ - - of such capacity and energy is a function of each Deferred investment tax credits are amor-entity's carrying and operation costs and is tized over the life of the property which gave included in purchased power in the Statements rise to the credits. Such amortization is applied of income. as a credit to reduce depreciation in the State-The Company has entered into agreements ments of income and amounted to 55.163.000 with certain Florida utilities regarding power in 1980. 54.197.000 in 1979 and S4.610.000 sales from Plant Scherer and other units of the in 1978. Southern electric system. The provision fcr deferred income taxes The Company and one of its affiliates. Ala-results from the Company s tax deduction for bama Power Company, own equally all of the accelerated methods of depreciation and other outstanding capital stock of Southern Electric write-offs of propert msts. as provided for by Generating Company (SEGCO). which owns the income tax laws 3ing greater than the electric generating units with a total rated ca-book depreciation of such costs. Income taxes pacity of 1.019.680 kilowatts. together with deferred in prior years are credited to income associated transmission facilities. The capacity when the book depreciation of those property of the units has been sold equally to the Com-costs exceeds the related tax deductions. pany and Alabama Power Company under a The total provision for federal income tax contract expiring in 1994 which. in substance, as a percent of income before income tax requires payments sufficient to provide for the amounted to 43.1%. 39.3% and 41.9% for 1980, operating expenses. taxes and debt service. in-1979 and 1978. respectively. The primary rea-ciuding a return on investment, whether or not sons for the difference between the rates for SEGCO has any capacity and energy available. 1980 were ( 1 ) the exclusion f rom taxable income

18 I of the allowance for equity funds used during $28.414.000 at December 31.1980 and 1979. Construction (4.9%). (2) the lower capital gains respectively. At December 31, 1980. the com-ta x rate on asset sales ( 2.6%). and ( 3) the excesu of posite interest rate for the leased ralicars was the tax gain on asset sales over the book gain 9.54%. the interest rate for the corporate head-(negative 4.2%). The difference betv/een these quarters lease was 8.23%, and the composite rates and the federal statutory rate of 46% in interest rate for the other leased buildings 1979 and 48% in 1978 was due primarily to the was 5.42%. exclusion from taxable income of the allowance The current portion of the capital! zed lease l for equity funds used during construction obligations and the note payable for each year ] (6.2% for 1979 and 1978). through 1985 is as follows: 52.796,000 in 1981; j S2.524.000 in 1982: 52.767,000 in 1983: Note 6. Other Long-Term Debt: 53.383.000 in 1984; and S3.662.000 in 1985. Details of other long-term debt are as follows Note 7. Sinking Fund Requirements of First (In thousands): Mortgage Bonds: 1980 1979 The annual first mortgage bond sinking fund obligations incurred in con-requirement (1% of the bands authenticated nection with the sale by prior to January 1 of each year) amounts to $25.226.000 and is due on or before June 1 tax emp p to control and industrial 1981. This requirement may be satisfied by use development of bonds speCiflCally authenticated for sucn pur-revenue bonds-pose against unfunded property additions equal s.95% due November 1. to

• W3% of such FCQuirement. Tne iix%

5 ROOO $ M.Ooo Je August 1,2000, is subject to a manda-serl( 9 00% due September 1. 'nking fund requirement of 55 million 2005 30.000 30,000 tory: 6.75% due November 1. an.luohy. Commencing August 1.1981. 2006. 40.800 40.800 During 1980. the Company reacquired S5.000.000 of its 11%% series first mortgage 3 % due p611.200 600 6 7.10% du'e December 1. bonds Which can be used to totally satisfy the 2008. 7s.000 75.000 1981 cash sinking fund requirement and to 232.500 232.500 satisfy S5.000.000 of the 525.226.000 1981 Less funds on de,,vc alth first mortgage bond sinking fund requirement. Trustee. 24.007 64.680 The gain on the reacquisition is included in 208.493 167.820 miscellaneous derecred credits in tne saiance Capitalized tease obligations-Sheets and is being amortized over the remaln-Railcars. 20.990 22.614 ing life of the originai issue. Corporme headquarters buildmg. 70.642 Otner office buildings. 5.984 6.420 Note 8. Cumulative Preferred Stock-Subject 97.616 29.054 to Mandatory Redemption: Note Payable - 6% due through 1986. 3.066 2.946 The S2.75 Class A Preferred Stock has a cum-5309.175 $ 199.820 ulative sinking fund provision requiring tne redemption of 150.000 shares annually at the The Company has authenticated and de-stated value of S25.00 per share, commencing livered to tne trustees. witn respect to such November 1. 1980. and continuing until all pollution control and industrial development shares are redeemed. During 1980 and 1979. revenue bonds, an aggregate of 5232.500.000 140.800 and 9.200 shares. respectively. were of its first mortgage bonds which are pledged reacquired to satisfy the 1980 sinking fund re-as security for its obligations under pollution quirement and an additional 47.000 shares control and industrial development contracts. were reacquired in 1980 to partially satisfy the No interest on these first mortgage bonds is 1981 requirement. The gains on these reac-payable unless and until a default occu. s on the quisitioins of 5532.000 and 515.000 for the installment purchase or loan agreements. No years 1980and 1979 respectively. are included principal payments are due on the contracts with premium on preferred stock in the State-prior to 1988. ments of Capitalization. Assets acquired under capital leases are re-cmded in tht, Company's Balance Sheets as Note 9. Assets Subject to Lien: utlSty plant in service and the related obligation is classified as other long-term debt. The net The Company's mortgage dated as of March 1. book value of capitalized leases included in 1941, as amended and supplemented. securing utility plant in service was S94.850.000 and the first mortgage bonds issued by the Com-

19 pany, constitutes a direct first lien on substan-tive premium adjustment in the event that losses tially all of the Company's fixed property and exceed accumulated funds. The Company's franchises. maximum assessment is limited to S17 million. The Company is also a member of Nuclear Note 10. Common Stock Dividend Restrictions: Electric insurance Limited, a rnatual insurer established to insure member utilities against The Company's first mortgage bond indenture the extra cxpense incurred in obtaining replace-contains various common dividend restrictions ment power during a prolonged outage at a which remain in effect so long as the bonds member's nuclear generating facility. Members are outstanding. At December 31, 1980. are insured against such increased costs in the 580.854.000 of retained earnings were re-amount of up to 52.000.000 per week (starting stricted against the payment of cash common 26 weeks after the outage) for one year and dividends under terms of the mortgage 51.000.000 per week for the second year. The indenture. Company is subject to a retrospective premium The terms of the sinking fund for the Com-adjustment in the event that losses exceed ac-pany's presently outstanding $2.75 Class A cumulated funds. The Company's maximum Preferred Stock prohibit the payment of cash assessment is limited to S13 million. dividends on common stock during a default in the performance of the sinking fund Note 12. Quarterly Financial Data (Unaudited): obligations. The Company's charter limits cash divi-Summarized quarterly financial information dends on common stock to 50% of net income for 1980and 1979 is as follows (in thousands). available for such stock during a prior period of twelve months it calculated on a corporate NdIna^s$ o erating operating basis. the ratio of common Stock equity to total ouarter Ended Revenues Incorne Preferred stock capitalization, including surplus, adjusted t March 31.1979. 5364.296 s 55.127 $26.315 reflect the payment of the proposed dividend. June 30.1979. 353.820 54.529 23.239 is below 20% and to 75% of such net income if september 30. such ratio is 20% or more but less than 25%. IP9 436.755 83.563 54.845 At December 31.1980. this ratio was 32.3%. December 31. 1979. 365.071 71.465 41.I13 Note 11. Nuclear Insurance: March 31,1980. 398.980* 72.891 39.206 June 30,1980. 396.975* 65.258 42.206 Under the Price-Anderson Act, the Company September 30. maintains agreements of Indemnity with the 1980. 563.003* 111.421 80.007 D cember 31. Nuclear Regulatory Commission (NRC) which. 8 together with private insurance. cc"er third-carty llability arising from any nuclear incident occurring at the Company's nuclear power plant.

• Operating revenues for the first three quarters The Act limits public liability claims that could of 1980 have been restated to reflect bulk power arise from a single nuclear incident to S560 mil-sales made under long-term contracts initiated lion. Each reactor at the Company s nuclear plant in 1980 with neighboring utilities which were is insured against this liability to a maximum of previously recorded as a credit to purchased S160 million by private insurance (the maximum ano Interchanged power. Operating revenues amount presently available) and the remainder were increased by 56.291.000. 59.133.000 a nd is provided by indemnity agreements with the S21.536.000, respectively. with a correspond-NRC. In the event of a nuclear incident involving ing increase in purchased and interchanged any commercial nuclear facility in the country.

power. a company ould be assessed up to 55.000.000 per incident ~ >r each licensed reactor operated Note 13. Supplementary Information by it but not more than 510.000.000 to be paid Concerning the Effects of in a calendar year. On the basis of its ownership Changing Prices (Unaudited): interest in the two nuclear reactors now in service, the Company could be a...sessed a maxi-The following supplementary information con-mum of $5.010.000 for any incident but not cerning the effects of changing prices is pre-more than S10.020.000 to be paid in any one sented in accordance with the general concepts year. set forth in Financial Accounting Standards The Company is a member of Nuclear Mu-Board Statement No. 33. as mcdified to reflect tual Limited a mutual insurer established to theeconomiceffectsimposedonGeorgia Power provide insurance coverage against property Company by regulatory authorities. It should be damage to members' nuc! car generating fa-viewed as an estimate of the approximate effects cilities. The Company is subject to a retrospec-of inflation rather than a precise measure.

I I .20. i Constant dollar amounts represent his-Increases etfectively are receivables from cus-l torical cost stated in terms of dollars of equal tomers. Therefore, such increases are not purchasing powerc as measured by the Con-included in income but instead are treated as sumer Price Index for All Urban Consumers. monetary assets. Income tax expense was not Current cost amounts reflect changes in specific adjusted because only historical costs are de-prices of plant from the date the plant was ac-ductible for income tax purposes, qulred to the present. They differ from constant. Holding assets such as receivables, pre-dollar amounts to the extent that speciflC prices payments.' and inventory results in a loss of have increased more or less rapidly than the purchasing power during periods of-Inflation general rate of inflation. The current cost of .because the. amount of cash received in the plant was determined by indexing each major future for these items will purchase less. Con-class of plant using the Handy-Whitman Index _ versely, holding monetary liabilities, primarily of Public Utility Construction Costs. Current long-term debt. results in a gain because the Cost doe not necessarily represent the replace-payment in the future will be made with nominal ) ment cost of existing productive capacity be-dollars having less purchasing power. Georgia - Cause the ut!!it'y plant is not expected to be ' Power Company has a net gain due to the sig-- replaced precisely in kind. nificant amounts of long-term debt outstanding.- The accumulated provision for depreciation - Under the ratemaking prescribed by the - for current cost was developed by applying, for regulatory commissions to which the Com-- each major class of plant. the same percentage pany is subject, only the historical cost of i relationship that existed between gross plant plant is recoverable in revenues as deprecla-and accumulated provision for depreciation on tion and plant in rate base is limited to original a historical basis to the adjusted Plant data. Cost. Therefore. the cost of the plant stated in - Depreciation expense for both methods was terms of constant dollars or current cost that determined by applying the current deprecia-exceeds the historical cost of plant is not pres-tion rates to the respective Indexed plant ently recoverable in rates as depreciation and amounts reduced by the amortization of invest-the amount of this excess that accrued as a ~ j ment tax credits which were first adjusted to resultof inflation in the cu rrent yea r is reflected average 1980 constant dollar amounts by year as a reduction to net recoverable cost. While of addition. the use of debt financing reduced the effect of increases in the cost of electric generating this ioss on the common stockholder. ea rnings f uel are recoverable in revenues through oper-were not adequate to offset the erosion in the ation of fuel cost recovery mechanisms. Such purchasing power of its investment. Statement of income Aojusted for Changing Prices j For the Year Ended December 31,1980 Constant Current - (in Thousands of Average 1980 Dollars) Dollar Cost incorie Applicable to Common Stockholder, as Reported... $195.345 519s.34s Erosion of Common Stockholder's Equity Because of Changing Pricese Cost in excess of the original cost of productive facilities not recoverable in rates as depreciation-Reportable as an additional provision for depreciation. 148.432 183.324 Rt; portable as an adjustment to net recoverable cost. 301.96s 98.886. 54sO.397 5282.210 Excess of the general level of prices (5913.802) in the current year over increase in specific price changes (5745.61s)* 168 187. . offsetting effect of debt financing-(313.063). (313.063) Net erosion of common stockholder's equity. 5137.334- $ 137.334 Income (Loss) Appilcable to Common Stockholder, as Adjusted ** (including the elfeCt of debt financing). 5 s8.011 5 58.011

• At December 31.1980. current cost of property. plant and equipment. net of accumulated depreciation, was '

59 billion, and historical cost or net cost recoverable through depreciation was 54 billion. " Adjusted income (loss) applicable to common Stockholder would be 547 million on a constant dollar basis and $ 12 million on a current cost basis if only the amount reportable as an additional provision for deprecia-tion were deducted from the reported amount of such income.

21 Five-Year Comparison of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices Dollars in T housands 1980 1979 1978 1977 1976 Operating Revenues-Historical cost. 51.808.408 51.519.942 51.475.024 $ 1.301,237 51.170.046 As adjusted

• 1.808.408 1.732.734 1.858.530 1.769.682 1.696.567 income (Loss) Applicable to Common Stockholder:

Historical cost 5 195.345 5 145.5'2 As adjusted for the net erosion of common stockholders equity

• 58.011 3.256 Common Stockholder s investment (Net Assetst at yearend:

Historical cost 51.314.315 51.210.868 51.173.036 51.086.246 51.038.961 As adjusteT 1 261.742 1.295.629 1.431.104 1.444.707 1.475.325 Excess of the General Level of Prices Over increase in Specific Price Changes

• 5 168.187 5 324.397 Effect of Debt Financing *.

5 313.063 5 360.201 Return of Average Common Equity: Historical. 15.47% 12.21% As adjusted for the riet erosion of common stockholder's equity

• 4.59%

0.27% Cash Dividends Declared (Common): Historical cost. 5 136.400 5 131.100 5 119.225 5 109.400 5 100.400 As adjusted

• 136.400 149.454 150.224 148.784 145.580 Average Ccnsumer Price index.

246.8 217.4 195 4 181.5 170.5

• Adjusted amou *.i represent average 1980 dollars Auditor 5* Report e

To the Board of Directors of Georgia Power Company: We have examined the balance sheets and in our opinion. the financial statements statements of capita!ization of Georgia Power referred to above precent fairly the financial Company (a Georgia corporation and a wholly position of Georgia Power Company as of De-owned subsidiary of The Southern Company) a.3 cember 31,1980 and 1979, and the results of of December 31,1980and 1979. and the related its operations and the sources of f unds for gross statements of income earnings retained in the property additions for the periods stated in business. other paid-in capital and sources of conformity with genera:.3 accepted accounting funds for gross property additions for each of principles applied on a consistent basis. the three years in the period ended December 31.1980. Our examinations were made in ac-cordance with generally accepted auditing standards and, accordingly. included SUCh tests ARTHUR ANDERSEN & CO. of the accounting records and such other audit-ing procedut % as we considered necessary in Atlanta. Gecrgia. the circumstances. February 19.1981. I

t 22 Rzport Cf MInagIm:nt 1 The management of Georgia Power Company which nunagement meets its responsibility for has prepared and is responsible for the financial fairness of _ financial reporting. They regularly statements and related financial information evaluate the system of internal accounting con-included in this report. The financial statements trols atid perform such tests and other pro-i were prepared in accordance with generally cedures they deem necessary to reach and inccepted accounting principles appropriate un-express an opinion on the fairness of the fi-der the circumstances. and necessarily inciade nancial statements, amounts that are based on best estimates and The Board of Directors pursues its re-Judgements with appropriate consideration to sponsibility for reported financial information materiality. Financial information included else-through its Audit Committee. Composed of where in this annual report is consistent with Directors who are not employees. The Audit the financial statements. Committee meets periodically with manage-The Company maintains a system of internal ment. the Internal auditors and the independent accounting controls to provide reasonable public accountants to assure that they are carry-assurance that assets are safe-guarded and that ing out their responsibilities and to discuss the books and records reflect only authorized auditing, internal control and finanClal report-transactions of the Company. Limitations exist ing matters. Both the independent accountants in any system of internal control based upon and the internal auditors have free access to the recognition that the cost of the system the Audit Committee at any time. should not exceed the benefits derived. The We believe that these policies and pro-Company believes its system of Internal account-cedures provide reasonable assurance that our ing controls augmented by its internal auditing operations are conducted with a high standard function, appropriately balances the cost / of business conduct and that the statements benefit relationship. reflect fairly the financial position, results of The independent public accountants pro-operations and sources of furMs for gross prop-vide an objective assessment of the degree to erty additions of Georgia Pom.' Company. I Board of Directors Walter G. Autrey L G. Hardman,Ill Dr. Gloria M. Shatto 1 Presn3ent President & Treasurer President Hamilton Turpentine Co.. Inc. Harmony Grove Mills. loc. Derry College and Berry Academy j ma dal stor es) Valdosta.19/2 (textiles) Commerce.1979 (educatiom Rome,1980 U H. G. Baker. Jr. Richard L Kattel l Senior Vice President Katte! Enterprises. Inc. Edward D. Smith Georgia Power Company Onvestments) Attanta. t973 Hansell, Post. Brandon a Dorsey Atlanta 1980 (term expired 5/15/80s (attorneys) Atlanta.1960 ) Harold C. McKenzie, Jr. Robert strickland Bennett A. Brown Executive Vice President Chairman of Ocard Chairman and rhe Executive off ecer Cecrgla Power Company Trust Company Bank T he Citizern ei souther n National Bank At!anta.1972 (Danking) Atlanta.1979 (banking) Asanta.196O James H. Miller, Jr. William B. Turner 1 (elected 5/15. 80) Executive Vice President President N. N. Burnes, Jr. Georgia Power Company W C. Brad!ey Company Vice Ctwrrrun Atlanta 1973 (industrialists) ColumDus.1965 Rome Manufacturing Company y itex1siesi nome. i965 p,cs, dent eresident William E. Ehrensperger Mor ris Communications Corporat on The southern Company sen10r Vice President and Grcup E xecutive (puDlishing> Augusta.1967 Atlanta.1968 f[ (( William A.Parher.Jr. Carl Ware Cha!rmanof Pxura Vice-President W61l lam A. Fichling.Jr. Cherckceinvestment Company Coca Cola. U S. A Cherman of the Board trcal estate a investments) (sof t drink con.pany). Charter Med, cal Corporation A!!anta.1965_ " Atlanta.1980 2 < medical facil!tW Macon.1973 H. G. Pattillo j J. A. Gantt Chairman Allen B. Wilson 'l Senior Vice President. Pattillo Construction Company. Inc. ExecutNe Vice President Finance Georg:a r'ower Company (constructx>ro Decatur.1972 Georgia Power Company Atla lta.1976 ' Atlanta.1974 p President a Chief Executive off!cer Georgia Power Company Atlanta.1969

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Directors continued 25 Board Committees Executive Committee Audit Committee Compensation Committee Honorary Directors Robert W. Scherer. Chairman Edward D. Smith. Chairman H. G. Pattillo, Chairman Joe B. Browder Harold C. McKenzie. Jr. N. N. Burnes. Jr. William A. Parker, Jr. Atlanta.1976 James H. Maller, Jr. William A.Fickling Jr. William B. Turner Edwin 1. Hatch William A. Parker,Jr. Troutman. Sanders. H. G. Pattillo cockerman. 8 Ashmore Edward D. Smith Atlanta.1978 General Officers Robert W. Scherer J. A.Gantt George F. Head Alvin W. Vogtle, Jr. President and Chief Senior Vice President Vice Pre *'Jent Vice President Executive Officer Division Operations Gen. Mgr.. Fossil & Charles F. Whitmer Age 55 Age.58 Hydro Generation Vice President Years of Service: 34 Years of Service. 32 (elected 1/16/80) Enoincering Harold C. McKenzie, Jr. R. Pierce Head, Jr. Gerald T. Horton Executive Vice President Senior Vice President Vice President i n External Affairs Administrative Services Public Affairs Regulatog Affairs Age-49 Age: 53 Years of Service: 23 Years of Service: 33 W. A. WMner ceI esident James H. Miller Jr. R. J. Kelly Procurement and Materials n ear Executive Vice President Senior Vice President J. Wyman Lamb Generatton Operations Power Generation P ted N80)

1. 9*

^# Rish Management Yearsof Service. 34 Yearsof Service. 31 Charles R. Minors (elected 5/15/80) C. B. McManus, Jr. Assistant Vice President U' uv ce President James M. Piepmeier C Finance Senior Vice President W. D. DeBardeleben. Jr. Age. 63 Strategic Planning Wade S. Manning Assistant Comptroller Yearsof Service: 46 Age. 37 Vice President J. A. Parramore, Jr. Assistant Comptroller H. Grady Baker. Jr. O Senior Vice President F. G. Mitchell, Jr. W. B. Poss Customer Service Warren Y. Jobe Vice President Assistant Comptroller Age 51 Vice President and Comptroller Generating Plant (electer' 7/16/80) Yearsof Service: 30 Construction g, 3 e gg, Gecrge W. Edwards, Jr. Vice President and Secretary John A. Roberts s St n retary Senior Vice President (retired 4/01/80) Vice President (retired 12/31/80) External Arlairs Energy Services W. tbrook Age M V ce President. Secretary Romney E. Scott Yearsof Service: 11 and Treasurer Vice President William E. Ehrensperger (elected 4/01/80) Economic Services Robert C. Ford Senior Vice President arvj Asst. Secretary and Asst. R. E Conway Robert B. Symonette Treasurer Group Executive Power Supoly V ce President Vice President and Assistant (elected 1/01/80) 58 am Mant N@ to m@nt Years of Servie. 38 (retired 2/G1/80) E. Ray Perry J. J. Cordova Asst. Secretary and Asst Vice President J. W. Talley, Jr. Treasurer (elected 9/17/80) Vice President Area Development A. W. Dahlberg Vice President Operations Planning and Control Division OfflCers Ben H. Williams B. W. Rainwater B. S. Moss L T. Wansley Vice Presidetit Vic.e President Vice President Vice President Athens D9 vision Ai gusta Division Macon Division Valdosta Dtvision E. A. Yates. Jr. l.:. drew B. Speed T. J. Allen. Jr. Vtcc President V ce Pres cent Vice President Atlanta Division Columbus Division Rome Division -,}}