I would like to know if and when Georgia power has prepared for the Y2k bug. I wouold like to know when they started to research and work on this problem for their systems, especially their billing system.

-- Anonymous, December 05, 1998

Answers

Hi Benjamin, Georgia Power Company is one of several utilities combined under the Southern Company. The most recent SEC 10Q Year 2000 statement for Southern is copied below for you. Unfortunately, most holding companies like Southern do not relate the separate progress for the individual utilities when they make these 2000 statements, but simply give an overview of the broad picture. I would call customer service at Georgia Power and ask them your questions. Then you can see if the answers are in any way different than those that Southern gives for the group. Good luck to you!

P.S. If the chart doesn't translate well to this forum, you can access this 10Q at: http:// www.sec.gov/edaux/formlynx.htm

Southern Company

(Alabama Power Co., Georgia Power Co., Gulf Power Co., Mississippi Power Co., Savannah Electric & Power Co.)

YEAR 2000 READINESS

Year 2000 Challenge

To save valuable storage space, mainframe computer programmers in the 1960s and 1970s shortened the year portion of date entries to just two digits. The date January 1, 1998, for example, was recorded by a computer as 01/01/98. Computers assumed, in effect, that all years began with "19." This practice was widely adopted by programmers of additional computer platforms, such as personal computers, and hard wired into computer chips and processors found in some equipment. This approach, intended to save processing time and storage space within computers, was used until the mid-90s.

If these functions are not corrected before the Year 2000 arrives, affected software systems and devices containing computer chips or clocks could automatically roll back to 1900 instead of moving forward to 2000. Some affected software and devices will function without incident. Others may experience erroneous results or the interruption of a process. This challenge does not affect all software or all computer-controlled equipment.

SOUTHERN depends on complex computer systems for many aspects of its operations, which include generation, transmission and distribution of electricity, as well as other business support activities. SOUTHERN's goal is to have mission-critical assets Year 2000-ready by June 1999. "Mission-critical" refers to devices or software that are required to maintain operations. "Year 2000 ready" means that the system or application is determined suitable for continued use through the Year 2000. Mission-critical systems include, but are not limited to, reactor control systems, safe shutdown systems, turbine/generator systems, control center computer systems, customer service systems, energy management systems, and telephone switches and equipment.

Year 2000 Program

SOUTHERN executive management recognizes the seriousness of the Year 2000 challenge and has dedicated resources it considers adequate to address the issue. A steering committee of SOUTHERN system executives reviews Millennium Project progress on a monthly basis, and the SOUTHERN and subsidiary boards receive periodic updates and progress reports.

SOUTHERN's traditional business consists of the generation and distribution of electricity in the service territories of ALABAMA, GEORGIA, GULF, MISSISSIPPI, and SAVANNAH.

SOUTHERN's non-traditional business is represented by various interests in the United States and several countries throughout the world. Readiness in the non-traditional business is generally scheduled to follow the traditional business.

SOUTHERN's Millennium Project is divided into two phases:

Phase 1 began in 1996 and consisted of identifying and assessing corporate assets (software systems and devices that contain a computer chip or clock) within the traditional business. This first phase was completed on schedule in June 1997.

Phase 2, which consists of testing and remediating high priority systems and devices, is targeted for completion in June 1999. Contingency planning is included in this phase. The Millennium Project will continue to monitor SOUTHERN's affected computer systems, devices and applications through the end of 1999, and into the year 2000.

At the end of the third quarter of 1998, SOUTHERN's progress toward Year 2000 readiness is as follows:

Year 2000 Readiness of Mission-Critical Systems - Traditional Business

- ------------------- ------------- ---------------- ----------------- ------------------------ -------------------- Year 2000 Generation Energy Transmission Telecommunications Business Phases Management and Systems Information Systems Systems Distribution Systems - ------------------- ------------- ---------------- ----------------- ------------------------ -------------------- Inventory C C C C C - ------------------- ------------- ---------------- ----------------- ------------------------ -------------------- Assessment C C C C C - ------------------- ------------- ---------------- ----------------- ------------------------ -------------------- Remediation/ PC PC PC PC PC Testing - ------------------- ------------- ---------------- ----------------- ------------------------ -------------------- Contingency PC PC PC NS NS Planning - ------------------- ------------- ---------------- ----------------- ------------------------ -------------------- Projected Completion 6/99* 6/99 1/99 6/99 3/99 - ------------------- ------------- ---------------- ----------------- ------------------------ --------------------

*One generating unit will complete testing during its next scheduled maintenance cycle, October 1999.

Legend: C Phase Complete PC Phase Partially Complete NS Phase Not Started

Contingency strategies for each area of business will be completed in December 1998; detailed plans are scheduled for completion by June 1999.

Material Third Parties

SOUTHERN is currently reviewing the Year 2000 readiness of material third parties which provide goods and services crucial to SOUTHERN's operations. SOUTHERN is developing contingency plans based on its assessment of each third party's ability to continue supplying critical goods and services to SOUTHERN. Among such critical third parties are fuel, transportation, telecommunications, water, chemical, and other suppliers.

Year 2000 Preparation Costs

Within the traditional business current projected costs of SOUTHERN's Year 2000 readiness are approximately $91 million. This includes costs for time and labor necessary to identify, test and renovate affected devices and systems during a process that will last almost four years. From its inception through September 30, 1998, the Year 2000 program costs, recognized primarily as expense, amounted to $39 million. In addition to the traditional business costs, current projections put Year 2000 program costs at approximately $23 million for the non-traditional business, based on SOUTHERN's ownership.

Risks associated with Year 2000 Challenge

SOUTHERN is implementing a detailed process to minimize the possibility of service interruptions related to Year 2000 challenges. Because SOUTHERN is taking what it believes to be prudent steps to prepare for the Year 2000, SOUTHERN expects any interruptions in service that may occur within the traditional business service territory to be isolated and short in duration.

SOUTHERN expects the risks associated with Year 2000 challenges to be no more severe than the scenarios that SOUTHERN's electric system is routinely prepared to handle. This scenario consists of the loss of one of the largest generating units and/or the loss of any single bulk transmission element in its traditional business service territory. SOUTHERN has followed a proven methodology for identifying and assessing software and devices containing potential Year 2000 challenges. Remediation and testing of those devices has been scheduled. SOUTHERN is also assessing risks associated with critical assets and third-party suppliers. Following risk assessment, SOUTHERN is preparing contingency plans as appropriate and is participating in North American Electric Reliability Council-coordinated national drills during 1999. A description of SOUTHERN's contingency planning follows below.

There is a potential for some earnings erosion caused by reduced electrical demand by customers because of their Year 2000 issues.

Contingency Plans

Because of experience with hurricanes and other storms, operating companies are skilled at using contingency plans in unusual circumstances. As part of Year 2000 business continuity and contingency planning, SOUTHERN is drawing on that experience in making risk assessments and developing additional plans to deal specifically with situations that could arise relative to external suppliers and other Year 2000 challenges.

Contingency planning efforts for the non-traditional business are generally in the initial phase due to the schedule of those businesses' Year 2000 programs. Because of the level of detail of SOUTHERN's contingency planning process, management feels that the contingency plans will keep any service interruptions that may occur within the traditional business service territory isolated and short in duration. *****

-- Anonymous, December 06, 1998