Document:

Exhibit 10.36

                                SOUTHERN COMPANY
                           EXECUTIVE CHANGE IN CONTROL
                                 SEVERANCE PLAN

                              Troutman Sanders LLP
                        Bank of America Plaza, Suite 5200
                           600 Peachtree Street, N.E.
                             Atlanta, Georgia 30308

                             Effective July 10, 2000

<PAGE>

                                SOUTHERN COMPANY
                           EXECUTIVE CHANGE IN CONTROL
                                 SEVERANCE PLAN

                    ARTICLE 1 - PURPOSE AND ADOPTION OF PLAN
         1.1 Adoption of Plan. Southern Company Services, Inc. hereby adopts
this Southern Company Executive Change in Control Severance Plan. This Plan was
originally effective December 7, 1998; it was amended by a First Amendment also
effective December 7, 1998. This amended and restated Plan is effective July 10,
2000. The Plan shall be an unfunded "top hat" plan designed to provide certain
severance benefits to a select group of management or highly compensated
employees, to be paid solely from the general assets of the respective Employing
Companies.
         1.2 Purpose. The Plan is primarily designed to provide benefits to
certain key employees of the Employing Companies, whose employment is terminated
subsequent to a change in control of Southern or their respective Employing
Company.

                             ARTICLE 2 - DEFINITIONS
         2.1 "Administrative Committee" shall mean the Board of Directors, plus,
in the event of any act necessary to be taken in connection with the Plan
relative to a particular Participant, the Chief Executive Officer of the
Participant's Employing Company, if such Chief Executive Officer is not already
a member of the Board of Directors.

         2.2 "Annual Compensation" shall mean a Participant's highest annual
base salary rate for the twelve month period immediately preceding the date of
the Change in Control plus target bonus.

         2.3 "Beneficial Ownership" shall mean beneficial ownership within the
meaning of Rule 13d-3 promulgated under the Exchange Act.

         2.4      "Board of Directors" shall mean the board of directors of the
Company.

         2.5 "Business Combination" shall mean a reorganization, merger or
consolidation of Southern or sale or other disposition of all or substantially
all of the assets of Southern.

         2.6      "Change in Control" shall mean,
                   -----------------

         (a)      with respect to Southern, the occurrence of any of the
 following:
                  (i) The Consummation of an acquisition by any Person of
         Beneficial Ownership of 20% or more of Southern's Voting Securities;
         provided, however, that for purposes of this Section 2.6(a)(i), the
         following acquisitions of Southern's Voting Securities shall not
         constitute a Change in Control:

                    (A)  any  acquisition   directly  from  Southern;   (B)  any
               acquisition by Southern;

                    (C) any acquisition by any employee benefit plan (or related
               trust)  sponsored  or  maintained  by  Southern  or any  Southern
               Subsidiary;

                    (D) any acquisition by a qualified  pension plan or publicly
               held mutual fund;

                    (E)  any  acquisition  by an  employee  of  Southern  or its
               subsidiary or affiliate,  or Group  composed  exclusively of such
               employees; or

                    (F) any  Business  Combination  which  would  not  otherwise
               constitute  a Change in  Control  because of the  application  of
               clauses (A), (B) and (C) of Section 2.6(a)(iii). (ii) A change in
               the  composition  of the Southern Board whereby  individuals  who
               constitute the Incumbent Board cease for any reason to constitute
               at least a majority of the Southern Board; or (iii)  Consummation
               of  a  Business  Combination,  unless,  following  such  Business
               Combination, all of the following three conditions are met:

                           (A) all or substantially all of the individuals and
                  entities who held Beneficial Ownership, respectively, of
                  Southern's Voting Securities immediately prior to such
                  Business Combination beneficially own, directly or indirectly,
                  65% or more of the combined voting power of the Voting
                  Securities of the corporation surviving or resulting from such
                  Business Combination, (including, without limitation, a
                  corporation which as a result of such transaction holds
                  Beneficial Ownership of all or substantially all of Southern's
                  Voting Securities or all or substantially all of Southern's
                  assets) (such surviving or resulting corporation to be
                  referred to as "Surviving Company"), in substantially the same
                  proportions as their ownership, immediately prior to such
                  Business Combination, of Southern's Voting Securities;

                           (B) no Person (excluding any corporation resulting
                  from such Business Combination, any qualified pension plan,
                  publicly held mutual fund, Group composed exclusively of
                  Employees or employee benefit plan (or related trust) of
                  Southern, any Southern Subsidiary or Surviving Company) holds
                  Beneficial Ownership, directly or indirectly, of 20% or more
                  of the combined voting power of the then outstanding Voting
                  Securities of Surviving Company except to the extent that such
                  ownership existed prior to the Business Combination; and

                           (C) at least a majority of the members of the board
                  of directors of Surviving Company were members of the
                  Incumbent Board at the earlier of the date of execution of the
                  initial agreement, or of the action of the Southern Board,
                  providing for such Business Combination.

                    (b) with respect to an Employing Company,  the occurrence of
               any of the following:

                         (i) The Consummation of an acquisition by any Person of
                    Beneficial  Ownership of 50% or more of the combined  voting
                    power  of  the  then  outstanding  Voting  Securities  of an
                    Employing Company;  provided,  however, that for purposes of
                    this Section  2.6(b)(i),  any  acquisition by an employee of
                    Southern or its  subsidiary or affiliate,  or Group composed
                    entirely of such employees,  any qualified pension plan, any
                    publicly  held mutual fund or any employee  benefit plan (or
                    related  trust)  sponsored or  maintained by Southern or any
                    Southern   Subsidiary  shall  not  constitute  a  Change  in
                    Control;

                  (ii) The Consummation of a reorganization, merger or
         consolidation of an Employing Company (an "Employing Company Business
         Combination"), in each case, unless, following such Employing Company
         Business Combination, Southern Controls the corporation surviving or
         resulting from such Employing Company Business Combination; or

                  (iii) The Consummation of the sale or other disposition of all
         or substantially all of the assets of an Employing Company to an entity
         which Southern does not Control.

                  Notwithstanding the foregoing, in no event shall "Change in
         Control" mean an initial public offering or a spin-off of an Employing
         Company.

                  For purposes of this Section 2.6 only, SERI shall not be
         considered an Employing Company. 2.7 "COBRA Coverage" shall mean any
         continuation coverage to which a Participant or his dependents
          may be entitled pursuant to Code Section 4980B.

     2.8 "Code" shall mean the Internal Revenue Code of 1986, as amended.

     2.9 "Company" shall mean Southern  Company  Services,  Inc., its successors
and assigns.

     2.10 "Consummation" shall mean the completion of the final act necessary to
complete a transaction  as a matter of law,  including,  but not limited to, any
required approvals by the corporation's shareholders and board of directors, the
transfer of legal and  beneficial  title to  securities  or assets and the final
approval of the transaction by any applicable domestic or foreign governments or
governmental agencies.  2.11 "Control" shall mean, in the case of a corporation,
Beneficial  Ownership  of more  than  50% of the  combined  voting  power of the
corporation's Voting Securities,  or in the case of any other entity, Beneficial
Ownership of more than 50% of such entity's voting equity interests.

         2.12 "DIC Plan" shall mean the Southern Energy Resources, Inc. Deferred
Incentive Compensation Plan or any successor thereto which is considered an
"equitable arrangement" thereof, as such plans may be amended from time to time.

         2.13     "Effective Date" shall mean the date of execution hereof.

         2.14 "Employee" shall mean each regular full-time or regular part-time
employee of an Employing Company of Grades 10 to 13 (or, if the Grade system is
not used, $130,000 or more of annual base salary rate for the twelve month
period immediately preceding the Change in Control who has not otherwise entered
into a Change in Control agreement with his Employing Company and elects to
receive benefits under such agreement) not covered by a collective bargaining
agreement between the Employing Company and a union or other employee
representative. With respect to a Change in Control of SEI, SERI Participants
shall be deemed to be employed by SEI for purposes of being covered under this
Plan.

         2.15 "Employee Outplacement Program" shall mean the program established
by the Employing Company from time to time for the purpose of assisting
Participants covered by the Plan in finding employment outside of the Employing
Company which provides for the following services:

          (a)  self assessment, career decision and goal setting;
          (b)  job market research and job sources;
          (c)  networking and interviewing skills;
          (d)  planning and implementation strategy;
          (e)  resume writing, job hunting methods and salary negotiation; and
          (f)  office support and job search resources.

         2.16 "Employing Company" shall mean the Company, or any other Southern
Subsidiary, which the Board of Directors may from time to time determine to
bring under the Plan and which shall adopt the Plan, and any successor of any of
them.

         2.17     "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.

         2.18 "Good Reason" shall mean, without an Employee's express written
consent, after written notice to his Employing Company, and after a thirty (30)
day opportunity for the Employee's Employing Company to cure, the continuing
occurrence of any of the following events:

          (a) Inconsistent  Duties.  A meaningful and detrimental  alteration in
     the Employee's position or in the nature or status of his  responsibilities
     from those in effect immediately prior to the Change in Control;

          (b) Reduced  Salary.  A reduction  of five percent (5%) or more by the
     Employing  Company in either of the following:  (i) the  Employee's  annual
     base salary rate for the twelve month period immediately preceding the date
     of the  Change  in  Control  ("Base  Salary")  (except  for a less than ten
     percent (10%),  across-the-board  Base Salary reduction similarly affecting
     at least  ninety-five  percent  (95%)  of all  Employees  of the  Employing
     Company);  or (ii) the sum of the Employee's  Base Salary plus target bonus
     under his Employing  Company's short term bonus plan (e.g.,  either the PPP
     Plan or the Southern Energy,  Inc. Short Term Plan, as the case may be), as
     in effect  immediately  prior to the Change in Control  (except  for a less
     than ten  percent  (10%),  across-the-board  reduction  of Base Salary plus
     target  bonus  under  such  short term plan  similarly  affecting  at least
     ninety-five percent (95%) of all Employees of the Employing Company);

          (c)  Compensation  Plans.  The  failure  by the  Employing  Company to
     continue  in  effect  any  "compensation  plan or  agreement"  in  which an
     Employee  participates  as of the  date of the  Change  in  Control  or the
     elimination of the Employee's  participation in any such plan,  (except for
     across-the-board plan changes or terminations  similarly affecting at least
     ninety-five percent (95%) of all Employees of the Employing Company);

                  For purposes of this Section 2.18(c), the "compensation plan
         or agreement" shall mean any written arrangement executed by an
         authorized officer of the Employing Company which provides for
         periodic, non-discretionary compensatory payments to employees in the
         nature of bonuses.

          (d) Relocation.  A change in an Employee's work location to a location
     more than fifty (50) miles from the facility where the Employee was located
     at the time of the Change in  Control,  unless  such new work  location  is
     within fifty (50) miles from the Employee's principal place of residence at
     the time of the Change in Control.  The acceptance,  if any, by an Employee
     of employment by an Employing  Company at a work location  which is outside
     the fifty mile  radius  set forth in this  Section  2.18(d)  shall not be a
     waiver  of  the  Employee's  right  to  refuse  subsequent  transfer  by an
     Employing  Company to a  location  which is more than fifty (50) miles from
     the  Employee's  principal  place of residence at the time of the Change in
     Control,  and such subsequent,  unconsented transfer shall be "Good Reason"
     under this Agreement; or

          (e)  Benefits  and  Perquisites.  The  taking  of  any  action  by the
     Employing  Company that would directly or indirectly  materially reduce the
     benefits enjoyed by an Employee under the Employing  Company's  retirement,
     life  insurance,  medical,  health  and  accident,   disability,   deferred
     compensation  or  savings  plans in which the  Employee  was  participating
     immediately prior to the Change in Control, or the failure by the Employing
     Company to provide an  Employee  with the number of paid  vacation  days to
     which the  Employee is  entitled on the basis of years of service  with the
     Employing  Company  in  accordance  with  the  Employing  Company's  normal
     vacation  policy  in effect  immediately  prior to the  Change  in  Control
     (except  for  across-the-board  plan or  vacation  policy  changes  or plan
     terminations  similarly affecting at least ninety-five percent (95%) of all
     Employees of the  Employing  Company).  2.19 "Group" shall have the meaning
     set forth in Section  14(d) of the Exchange  Act.  2.20 "Group Health Plan"
     shall mean the group health plan covering the Participant, as such plan may
     be amended from time to time.

         2.21 "Group Life Insurance Plan" shall mean the group life insurance
program covering the Participant, as such plan may be amended from time to time.

         2.22 "Incumbent Board" shall mean those individuals who constitute the
Southern Board as of October 19, 1998 plus any individual who shall become a
director subsequent to such date whose election or nomination for election by
Southern's shareholders was approved by a vote of at least 75% of the directors
then comprising the Incumbent Board. Notwithstanding the foregoing, no
individual who shall become a director of the Southern Board subsequent to the
Effective Date whose initial assumption of office occurs as a result of an
actual or threatened election contest (within the meaning of Rule 14a-11 of the
Regulations promulgated under the Exchange Act) with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Southern Board shall be a
member of the Incumbent Board.

         2.23 "Month of Service" shall mean any calendar month during which a
Participant has worked at least one (1) hour or was on approved leave of absence
while in the employ of an Employing Company or any other Southern Subsidiary.

          2.24  "Participant"  shall mean an Employee who meets the  eligibility
     requirements of Section 3.1 of this Plan.

         2.25 "Pension Plan" shall mean The Southern Company Pension Plan or any
successor thereto, as such plans may be amended from time to time.

         2.26 "Performance Dividend Plan" or "PDP Plan" shall mean the Southern
Company Performance Dividend Plan or any successor thereto which is considered
an "equitable arrangement" under Section 1.25 thereof, as such plans may be
amended from time to time.

         2.27 "Performance Pay Plan" or "PPP Plan" shall mean the Southern
Company Performance Pay Plan or any successor thereto which is considered an
"equitable arrangement" under Section 1.31 thereof, as such plans may be amended
from time to time.

         2.28 "Performance Stock Plan" shall mean the Southern Company
Performance Stock Plan or any successor thereto which is considered an
"equitable arrangement" under Section 1.33 thereof, as such plans may be amended
from time to time.

         2.29 "Person" shall mean any individual, entity or group within the
meaning of Section 13(d)(3) or 14(d)(2) of Exchange Act.

          2.30  "Plan"  shall  mean the  Southern  Company  Executive  Change in
     Control Severance Plan.

          2.31 "SEI"  shall mean  Southern  Energy,  Inc.,  its  successors  and
     assigns.

          2.32 "SERI" shall mean Southern Energy Resources, Inc., its successors
     and assigns.

          2.33 "SERI  Participant"  shall mean a Participant  who is employed by
     SERI.

          2.34 "Short Term Plan" shall mean the Southern Energy Resources,  Inc.
     Short Term Plan, as amended from time to time. 2.35  "Southern"  shall mean
     The Southern Company, its successors and assigns.

          2.36 "Southern Board" shall mean the board of directors of Southern.

          2.37 "Southern  Subsidiary" shall mean any corporation or other entity
     Controlled by Southern.

          2.38 "Support  Employee"  shall mean an Employee of the Company (which
     shall continue to be such

Employee's Employing Company for purposes of this Plan) who:

                  (a) Is involuntarily terminated without Cause within one year
         of the Change in Control of an Employing Company (other than the
         Company) and either (i) spent at least 40% of his working time
         performing services for such Employing Company at the time of the
         Change in Control and for the six months prior thereto, or (ii) is
         determined by the Administrative Committee to be involuntarily
         terminated without Cause as a result of such Change in Control; or

                  (b) Voluntarily terminates with Good Reason within one year of
         the Change in Control of an Employing Company (other than the Company)
         and spent at least 40% of his working time performing services for such
         Employing Company at the time of the Change in Control and for the six
         months prior thereto. For purposes of this Section 2.38(b) only, Good
         Reason shall not include the provisions of Section 2.18(a), entitled
         "Inconsistent Duties." 2.39 "Termination for Cause" or "Cause" shall
         mean an Employee's termination of employment with his
         Employing Company upon the occurrence of any of the following:

                  (a) The willful and continued failure by the Employee to
         substantially perform his duties with his Employing Company (other than
         any such failure resulting from the Employee's Total Disability or from
         the Employee's retirement or any such actual or anticipated failure
         resulting from termination by the Employee for Good Reason) after a
         written demand for substantial performance is delivered to him by the
         Administrative Committee, which demand specifically identifies the
         manner in which the Administrative Committee believes that he has not
         substantially performed his duties; or

                  (b) The willful engaging by the Employee in conduct that is
         demonstrably and materially injurious to his Employing Company,
         monetarily or otherwise, including but not limited to any of the
         following:

               (i) any willful act  involving  fraud or dishonesty in the course
          of an Employee's employment by his Employing Company;

               (ii) the willful  carrying  out of any  activity or the making of
          any  statement  by an Employee  which would  materially  prejudice  or
          impair the good name and standing of his Employing  Company,  Southern
          or any other Southern Subsidiary or would bring his Employing Company,
          Southern or any other Southern  Subsidiary into contempt,  ridicule or
          would  reasonably shock or offend any community in which his Employing
          Company, Southern or such other Southern Subsidiary is located;

               (iii)   attendance   by  an  Employee  at  work  in  a  state  of
          intoxication  or otherwise  being found in possession at his workplace
          of any prohibited drug or substance,  possession of which would amount
          to a criminal offense;

               (iv)  violation of his Employing  Company's  policies on drug and
          alcohol usage,  fitness for duty  requirements or similar  policies as
          may exist  from time to time as  adopted  by the  Employing  Company's
          safety officer;

               (v) assault or other act of  violence by an Employee  against any
          person during the course of employment; or

               (vi) an Employee's  indictment for any felony or any  misdemeanor
          involving moral turpitude.

         No act or failure to act by an Employee shall be deemed "willful"
unless done, or omitted to be done, by the Employee not in good faith and
without reasonable belief that his action or omission was in the best interest
of his Employing Company.

         Notwithstanding the foregoing, an Employee shall not be deemed to have
been terminated for Cause unless and until there shall have been delivered to
him a copy of a resolution duly adopted by the affirmative vote of the majority
of the Administrative Committee at a meeting called and held for such purpose
(after reasonable notice to the Employee and an opportunity for him, together
with counsel, to be heard before the Administrative Committee), finding that, in
the good faith opinion of the Administrative Committee, the Employee was guilty
of conduct set forth in Section 2.39(a) or (b) hereof and specifying the
particulars thereof in detail.

         2.40 "Termination Date" shall mean the date on which a Participant is
separated from his Employing Company's regular payroll; provided, however, that
solely for purposes of Section 3.2(c) hereof, the Termination Date of
Participants who are deemed to be retired pursuant to the provisions of Section
3.3 hereof, shall be the effective date of their retirement pursuant to the
terms of the Pension Plan.

               2.41 "Total  Disability"  shall mean total disability  within the
          meaning of the Pension Plan.

               2.42  "Value  Creation  Plan"  shall  mean  the  Southern  Energy
          Resources,  Inc. Value Creation Plan or any replacement  thereto which
          is considered an "equitable  arrangement"  under Section 1.30 thereof,
          as  such  plans  may be  amended  from  time  to  time.  2.43  "Voting
          Securities"  shall  mean  the  outstanding   voting  securities  of  a
          corporation  entitling  the holder  thereof to vote  generally  in the
          election of such corporation's directors.

               2.44  "Waiver  and  Release"  shall mean the  Waiver and  Release
          attached hereto as Exhibit A.

               2.45 "Year of Service" shall mean an Employee's Months of Service
          divided by twelve (12) rounded to

the nearest whole year, rounding up if the remaining number of months is seven
(7) or greater and rounding down if the remaining number of months is less than
seven (7). If an Employee has a break in his service with his Employing Company,
he will receive credit under this Plan for the service prior to the break in
service only if the break in service was less than five years and his service
prior to the break exceeds the length of the break in service.

                         ARTICLE 3 - SEVERANCE BENEFITS

         3.1      Eligibility.
                  -----------
                  (a) Employees. Except as otherwise provided herein, any
         Employee whose employment is involuntarily terminated by his Employing
         Company at any time during the two year period following a Change in
         Control of Southern or his Employing Company for reasons other than
         Cause or who shall voluntarily terminate his employment with his
         Employing Company for Good Reason at any time during the two year
         period following a Change in Control of Southern or his Employing
         Company, shall be entitled to participate in this Plan and receive the
         benefits described in Section 3.2 hereof, subject to the terms and
         conditions described in this Article 3.

               (b) Support  Employees.  A Support  Employee shall be entitled to
          participate in this Plan and receive the benefits described in Section
          3.2  hereof,  subject to the terms and  conditions  described  in this
          Article 3.

               (c)  Limits  on  Eligibility.  Notwithstanding  anything  to  the
          contrary herein, an Employee or Support Employee shall not be eligible
          to  receive  benefits  under  this  Plan if the  Employee  or  Support
          Employee:

                    (i) is not actively at work on his Termination  Date, unless
               such Employee or Support Employee is capable of returning to work
               within twelve (12) weeks of the beginning of any leave of absence
               from work;

                    (ii)   voluntarily   terminates  his  employment   with  his
               Employing Company for other than Good Reason;

                    (iii) is terminated by his Employing Company for Cause;

                    (iv) accepts the transfer of his employment to Southern, any
               Southern   Subsidiary  or  any  employer  that  acquires  all  or
               substantially   all  of  the  assets  of  Southern,   a  Southern
               Subsidiary or his Employing Company;

                    (v)  refuses  an  offer  of  continued  employment  with his
               Employing  Company,  Southern  or a Southern  Subsidiary,  or any
               employer that acquires all or substantially  all of the assets of
               Southern,  a Southern Subsidiary or his Employing Company,  under
               circumstances  where such refusal would not amount to Good Reason
               for voluntary  termination of employment and such employer agrees
               to adopt this Plan as it applies to such Participant; or

                    (vi) elects to receive the  benefits of any other  voluntary
               or involuntary  severance,  separation or  outplacement  program,
               plan or agreement  maintained by his Employing Company in lieu of
               benefits under this Plan;  provided however,  that the receipt of
               benefits  under  any  retention  plan or  agreement  shall not be
               deemed  to be  the  receipt  of  benefits  under  any  severance,
               separation or outplacement program for purposes of this Plan.

     3.2 Benefits.  Upon the Employing  Company's receipt of an effective Waiver
and Release, Participants shall be entitled to receive the following benefits:

               (a) Employee  Outplacement  Services.  Each Participant  shall be
          eligible to participate in the Employee  Outplacement  Program,  which
          program shall not be less than six (6) months  duration  measured from
          the Participant's Termination Date.

                  (b) Severance Benefit. Participants shall be paid in cash an
         amount equal to two times the Participant's Annual Compensation, but
         not in excess of the Capped Amount. For purposes of this Section
         3.2(b), the Capped Amount shall be the amount otherwise payable under
         this Section 3.2(b), reduced in such amount and to such extent that no
         amount of the payment under this Section 3.2(b), plus all other
         "parachute payments" under Code Section 280G, would constitute an
         "excess parachute payment" under Code Section 280G, but only to the
         extent that if the payment under this Section 3.2(b) were increased by
         one additional dollar ($1.00), a portion of the payment under this
         Section 3.2(b) would be an "excess parachute payment" under Code
         Section 280G. The calculation of the Capped Amount and any other
         determinations relating to the applicability of Code Section 280G (and
         the rules and regulations promulgated thereunder) to the payments
         contemplated by this Plan shall be made by the tax department of the
         independent public accounting firm then responsible for preparing
         Southern's consolidated federal income tax return, and such
         determinations shall be binding upon the Participants, Southern and the
         Employing Company.

                  (c)      Welfare Benefit.
                           ---------------
                           (i) Except as provided in Section 3.3 hereof, each
                  Participant shall be eligible to participate in the Employing
                  Company's Group Health Plan for a period of six (6) months for
                  each of the Participant's Years of Service, not to exceed a
                  period of five (5) years, beginning on the first day of the
                  first month following the Participant's Termination Date
                  unless otherwise specifically provided under such plan, upon
                  the Participant's payment of both the Employing Company's and
                  the Participant's premium under such plan. A Participant who
                  receives this extended medical coverage shall also be entitled
                  to elect coverage under the Group Health Plan for his
                  dependents who are participating in the Group Health Plan on
                  the Participant's Termination Date (and for such other
                  dependents as may be entitled to coverage under the provisions
                  of the Health Insurance Portability and Accountability Act of
                  1996) for the duration of the Participant's extended medical
                  coverage under this Section 3.2(c) to the extent such
                  dependents remain eligible for dependent coverage under the
                  terms of the Group Health Plan.

                           (ii) The extended medical coverage afforded to a
                  Participant pursuant to this Section 3.2(c) as well as the
                  premiums to be paid by the Participant in connection with such
                  coverage shall be determined in accordance with the terms of
                  the Group Health Plan and shall be subject to any changes in
                  the terms and conditions of the Group Health Plan as well as
                  any future increases in premiums under the Group Health Plan.
                  The premiums to be paid by the Participant in connection with
                  this extended coverage shall be due on the first day of each
                  month; provided, however, that if a Participant fails to pay
                  his premium within thirty (30) days of its due date, such
                  Participant's extended coverage shall be terminated.

                           (iii) Any Group Health Plan coverage provided under
                  this Section 3.2(c) shall be a part of and not in addition to
                  any COBRA Coverage which a Participant or his dependent may
                  elect. In the event that a Participant or his dependent
                  becomes eligible to be covered, by virtue of re-employment or
                  otherwise, by any employer-sponsored group health plan or is
                  eligible for coverage under any government-sponsored health
                  plan during the above period, coverage under the Employing
                  Company's Group Health Plan available to the Participant or
                  his dependent by virtue of the provisions of this Article 3
                  shall terminate, except as may otherwise be required by law,
                  and shall not be renewed. It shall be the duty of a
                  Participant to inform the Employing Company of his eligibility
                  to participate in any such health plan.

               (iv)  Except  as  otherwise   provided  in  Section  3.3  hereof,
          regardless  of  whether a  Participant  elects the  extended  coverage
          described in Section 3.2(a) hereof, the Employing Company shall pay to
          each  Participant a cash amount equal to the  Employing  Company's and
          the Participant's cost of premiums for two (2) years of coverage under
          the Group  Health Plan and Group Life  Insurance  Plan,  as such Plans
          were in effect  as of the date of the  Change  in  Control.  (d) Stock
          Option  Vesting.  The provisions of this Section 3.2(d) shall apply to
          any  Participant  who, as of the date of the Change in Control,  was a
          participant in the Performance  Stock Plan, the defined terms of which
          are incorporated in this Section 3.2(d) by reference.

               (i)  Any of the  Participant's  Options  and  Stock  Appreciation
          Rights  outstanding  as of the  Termination  Date  which  are not then
          exercisable and vested,  shall become fully  exercisable and vested to
          the full extent of the original grant; provided, that in the case of a
          Participant  holding  a Stock  Appreciation  Right who is  subject  to
          Section 16(b) of the Exchange Act, such Stock Appreciation Right shall
          not become fully vested and  exercisable  at such time if such actions
          would result in liability to the  Participant  under  Section 16(b) of
          the Exchange Act,  provided further that any such actions not taken as
          a result of the rules under Section 16(b) of the Exchange Act shall be
          effected  as of the  first  date that  such  activity  would no longer
          result in liability under Section 16(b) of the Exchange Act.

               (ii) The restrictions and deferral limitations  applicable to any
          of the Participant's Restricted Stock as of the Termination Date shall
          lapse, and such Restricted Stock shall become free of all restrictions
          and limitations  and become fully vested and  transferable to the full
          extent of the original grant.

               (iii)  The  restrictions  and  deferral   limitations  and  other
          conditions  applicable  to any other  Awards  held by the  Participant
          under the  Performance  Stock  Plan as of the  Termination  Date shall
          lapse,  and such other Awards  shall become free of all  restrictions,
          limitations or conditions and become fully vested and  transferable to
          the full extent of the original  grant.  (e) Performance Pay Plan. The
          provisions of this Section 3.2(e) shall apply to any Participant  who,
          as of the date of the  Change in  Control,  was a  participant  in the
          Performance  Pay Plan, the defined terms of which are  incorporated in
          this Section  3.2(e) by  reference.  Provided the  Participant  is not
          entitled to benefits under Article IV of the PPP Plan, if the PPP Plan
          is in place as of the Participant's Termination Date and to the extent
          the  Participant is entitled to participate  therein,  the Participant
          shall be  entitled  to receive  cash in an amount  equal to a prorated
          payout  of his  Incentive  Pay  Award  under  the  PPP  Plan  for  the
          Performance  Period in which the Termination Date shall have occurred,
          at target performance under the PPP Plan and prorated by the number of
          months which have passed since the beginning of the Performance Period
          until the Termination Date.

                  (f) Performance Dividend Plan. The provisions of this Section
         3.2(f) shall apply to any Participant who, as of the date of the Change
         in Control, was a participant in the Performance Dividend Plan, the
         defined terms of which are incorporated in this Section 3.2(f) by
         reference. Provided the Participant is not entitled to benefits under
         Article V of the Performance Dividend Plan, if the Performance Dividend
         Plan is in place through the Participant's Termination Date and to the
         extent the Participant is entitled to participate therein, the
         Participant shall be entitled to receive cash for each Award held as of
         such date based on a Payout Percentage of 50% under Section 4.1 of the
         Performance Dividend Plan for the Performance Period in which the
         Termination Date shall have occurred, and the Annual Dividend declared
         prior to the Termination Date.

                  (g) Value Creation Plan. The provisions of this Section 3.2(g)
         shall apply to any Participant who, as of the date of the Change in
         Control, was a participant in the Value Creation Plan, the defined
         terms of which are incorporated in this Section 3.2(g) by reference.
         Any of the Participant's Appreciation Rights or Indexed Rights
         outstanding as of the Termination Date which are not then exercisable
         and vested, shall become fully exercisable and vested to the full
         extent of the original grant. Notwithstanding anything in the Value
         Creation Plan to the contrary, Share Value with respect to any
         Appreciation Rights or Indexed Rights held by the Participant following
         his Termination Date shall be no less than the Share Value as of the
         date of the Change in Control of Southern or his Employing Company, as
         the case may be.

                  (h) Short Term Plan. The provisions of this Section 3.2(h)
         shall apply to any Participant who, as of the date of the Change in
         Control was a Participant in the Short Term Plan, the defined terms of
         which are incorporated in this Section 3.2(h) by reference. Provided
         the Participant is not entitled to benefits under Article V of the
         Short Term Plan, if the Short Term Plan is in place through the
         Participant's Termination Date and to the extent the Participant is
         entitled to participate therein, the Participant shall be entitled to
         receive cash in an amount equal to his Award under the Short Term Plan
         for the Performance Period in which the Termination Date shall have
         occurred, at Total Target for the Participant's Job Category and
         prorated by the number of months which have passed since the beginning
         of the Performance Period until the Termination Date.

                  (i) Other Short Term Incentive Plans. The provisions of this
         Section 3.2(i) shall apply to any Participant who, as of the date of
         the Change in Control is a participant in any other "short term
         incentive compensation plan" not otherwise previously referred to in
         this Section 3.2. Provided the Participant is not otherwise entitled to
         a plan payout under any change in control provisions of such plans, if
         the "short term incentive compensation plan" is in place through the
         Participant's Termination Date and to the extent the Participant is
         entitled to participate therein, the Participant shall be entitled to
         receive cash in an amount equal to his award under his respective
         Employing Company's "short term incentive compensation plan" for the
         annual performance period in which the Termination Date shall have
         occurred, at the Participant's target performance level and prorated by
         the number of months which have passed since the beginning of the
         annual performance period until the Termination Date. For purposes of
         this Section 3.2(i), the term "short term incentive compensation plan"
         shall mean any incentive compensation plan or arrangement adopted in
         writing by an Employing Company which provides for annual, recurring
         compensatory bonuses to participants based upon articulated performance
         criteria, and which have been identified by the Board of Directors and
         listed on Exhibit B hereto, which may be amended from time to time to
         reflect plan additions, terminations and amendments.

               (j) DIC Plan.  The  provisions of this Section 3.2(j) shall apply
          to any Participant who, as of the date of the Change in Control, was a
          participant   in  the  DIC  Plan,  the  defined  terms  of  which  are
          incorporated  into  this  Section  3.2(j)  by  reference.  Provided  a
          Participant  is not  entitled to benefits  under  Article V of the DIC
          Plan,  if the DIC Plan is in place through  Participant's  Termination
          Date and to the extent that  Participant  is  entitled to  participate
          therein,  any of the  Participant's  Awards as of the Termination Date
          which are not then vested shall  become  fully vested and  Participant
          shall be entitled to receive cash in the amount equal to Participant's
          Account as of his Termination  Date.  Notwithstanding  anything in the
          DIC  Plan  to the  contrary,  the  investment  return  on  the  Awards
          determined in accordance with Section 3.1 of the DIC Plan for any Plan
          Year  following  a Change in  Control  of  Southern  or its  Employing
          Company  shall be no less than the  investment  return  determined  in
          accordance  with  Section  3.1 of the DIC  Plan as of the date of such
          Change in Control with respect to those Accounts which are outstanding
          as of the  date of such  Change  in  Control.  3.3  Coordination  with
          Retiree Medical and Life Insurance Coverage.  Notwithstanding anything
          to the contrary above,  any  Participant who is otherwise  eligible to
          retire  pursuant to the terms of the  Pension  Plan shall be deemed to
          have retired for purposes of all employee  benefit plans  sponsored by
          the Employing  Company of which the  Participant is a  participant.  A
          Participant  who is  deemed to have  retired  in  accordance  with the
          preceding  sentence  shall not be  eligible  to receive  the  benefits
          described in Section 3.2(c) hereof if, upon his Termination Date, such
          Participant  becomes  eligible to receive the retiree medical and life
          insurance  coverage provided to certain retirees pursuant to the terms
          of the  Pension  Plan,  the  Group  Health  Plan  and the  Group  Life
          Insurance Plan.

         3.4 Payment of Benefits. The amounts due a Participant under Sections
3.2(b) and (c) hereof shall be payable in one (1) lump sum payment as soon as
administratively practicable within thirty (30) days of the later of the
following to occur: (a) the Participant's Termination Date, or (b) the tender to
the Employing Company by the Participant of an effective Waiver and Release in
the form of Exhibit A attached hereto and the expiration of any applicable
revocation period for such waiver. In the event of a dispute with respect to
liability or amount of any benefit due hereunder, an effective Waiver and
Release shall be tendered at the time of final resolution of any such dispute
when payment is tendered by the Employing Company.

         3.5 Benefits in the Event of Death. In the event of the Participant's
death prior to the payment of all benefits due under this Article 3, the
Participant's estate shall be entitled to receive as due any amounts not yet
paid under this Article 3 upon the tender by the executor or administrator of
the estate of an effective Waiver and Release.

         3.6 Legal Fees. In the event of a dispute between a Participant and his
Employing Company with regard to any amounts due hereunder, if any material
issue in such dispute is finally resolved in the Participant's favor, his
Employing Company shall reimburse the Participant's legal fees incurred with
respect to all issues in such dispute in an amount not to exceed thirty thousand
dollars ($30,000).

         3.7 No Mitigation. A Participant who receives benefits under Section
3.2 of this Plan shall have no duty or obligation to seek other employment
following his Termination Date and, except as otherwise provided in Subsection
3.1(d) hereof, the amounts due a Participant hereunder shall not be reduced or
suspended if such Participant accepts such subsequent employment.

         3.8 Non-qualified Retirement and Deferred Compensation Plans.
Subsequent to a Change in Control, any claims by a Participant for benefits
under any of the Company's non-qualified retirement or deferred compensation
plans shall be resolved through binding arbitration in accordance with the
procedures and provisions set forth in Article 5 hereof and if any material
issue in such dispute is finally resolved in the Participant's favor, the
Company shall reimburse the Participant's legal fees in the manner provided in
Section 3.6 hereof.

         3.9 Guarantee of SEI. Effective May 10, 2000, if SERI fails or refuses
to make payments under the Plan, SERI Participants may have the right to obtain
payment by SEI pursuant to the terms of the "Guarantee Agreement Concerning
Southern Energy Resources, Inc. Compensation and Benefit Arrangements" entered
into by SEI and SERI. A SERI Participant's right to payment is not increased as
a result of this Guarantee. SERI Participants have the same right to payment
from SEI as they have from SERI. Any demand to enforce this Guarantee should be
made in writing and should reasonably and briefly specify the manner and the
amount SERI has failed to pay. Such writing given by personal delivery or mail
shall be effective upon actual receipt. Any writing given by telegram or
telecopier shall be effective upon actual receipt if received during SEI's
normal business hours, or at the beginning of the next business day after
receipt, if not received during SEI's normal business hours. All arrivals by
telegram or telecopier shall be confirmed promptly after transmission in writing
by certified mail or personal delivery.

                           ARTICLE 4 - ADMINISTRATION
         4.1 Administrative Committee. The Administrative Committee shall be
responsible for the general administration of the Plan and may appoint other
persons or entities to perform or assist in the performance of any of its
duties, subject to its review and approval. The Administrative Committee shall
have the right to remove any such appointee from his position without cause upon
notice.

                             ARTICLE 5 - ARBITRATION
         5.1 General. Any dispute, controversy or claim arising out of or
relating to the Company's obligations to pay severance benefits under this Plan,
or the breach thereof, shall be settled and resolved solely by arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association ("AAA") except as otherwise provided herein. The arbitration shall
be the sole and exclusive forum for resolution of any such claim for severance
benefits and the arbitrators' award shall be final and binding. The provisions
of this Article 5 are not intended to apply to any other disputes, claims or
controversies arising out of or relating to a Participant's employment by an
Employing Company or the termination thereof.

         5.2 Demand for Arbitration. Arbitration shall be initiated by serving a
written notice of demand for arbitration to the Participant, in the case of an
Employing Company, or to the Administrative Committee, in the case of a
Participant.

         5.3 Law and Venue. The arbitrators shall apply the laws of the State of
Georgia, except to the extent pre-empted by federal law, excluding any law which
would require the use of the law of another state. The arbitration shall be held
in Atlanta, Georgia.

         5.4 Appointment of Arbitrators. Arbitrators shall be appointed within
fifteen (15) business days following service of the demand for arbitration. The
number of arbitrators shall be three. One arbitrator shall be appointed by the
Participant, one arbitrator shall be appointed by the Employing Company, and the
two arbitrators shall appoint a third. If the arbitrators cannot agree on a
third arbitrator within thirty (30) business days after the service of demand
for arbitration, the third arbitrator shall be selected by the AAA.

         5.5 Costs. The arbitration filing fee shall be paid by the Participant.
All other costs of arbitration shall be borne equally by the Participant and his
Employing Company, provided, however, that such Employing Company shall
reimburse such fees and costs in the event any material issue in such dispute is
finally resolved in the Participant's favor and the Participant is reimbursed
legal fees under Section 3.6 hereof.

         5.6 Interim and Injunctive Relief. Nothing in this Article 5 is
intended to preclude, upon application of either party, any court having
jurisdiction from issuing and enforcing in any lawful manner such temporary
restraining orders, preliminary injunctions, and other interim measures of
relief as may be necessary to prevent harm to either party's interests or as
otherwise may be appropriate pending the conclusion of arbitration proceedings
pursuant to this Article 5 and nothing herein is intended to prevent any court
from entering and enforcing in any lawful manner such judgments for permanent
equitable relief as may be necessary to prevent harm to a party's interests or
as otherwise may be appropriate following the issuance of arbitral awards
pursuant to this Article 5.

                            ARTICLE 6 - MISCELLANEOUS
         6.1 Funding of Benefits. Unless the Board of Directors shall in its
discretion determine otherwise, the benefits payable to a Participant under the
Plan shall not be funded in any manner and shall be paid by the Employing
Companies out of their general assets, which assets are subject to the claims of
the Employing Companies' creditors.

         6.2 Withholding. There shall be deducted from the payment of any
benefit due under the Plan the amount of any tax required by any governmental
authority to be withheld and paid over by the Employing Companies to such
governmental authority for the account of the Participant entitled to such
payment.

         6.3 Assignment. No Participant or beneficiary shall have any rights to
sell, assign, transfer, encumber, or otherwise convey the right to receive the
payment of any benefit due hereunder, which payment and the rights thereto are
expressly declared to be nonassignable and nontransferable. Any attempt to do so
shall be null and void and of no effect.

         6.4 Amendment and Termination. The Plan may be amended or terminated at
any time by the Board of Directors, provided, however, the Plan may not be
amended in any material respect or terminated within the two (2) year period
following a Change in Control nor shall any amendment or termination impair the
rights of any Participant which have accrued hereunder prior to any such
amendment or termination.

         6.5 Pooling Accounting. Notwithstanding anything to the contrary
herein, if, but for any provision of this Plan, a Change in Control transaction
would otherwise be accounted for as a pooling-of-interests under APB No.16
("Pooling Accounting") (after giving effect to any and all other facts and
circumstances affecting whether such Change in Control transaction would use
Pooling Accounting), such provision or provisions of this Plan which would
otherwise cause the Change in Control transaction to be ineligible for Pooling
Accounting shall be void and ineffective in such a manner and to the extent that
by eliminating such provision or provisions of this Plan, Pooling Accounting
would be required for such Change in Control transaction.

         IN WITNESS WHEREOF, this Southern Company Executive Change in Control
Severance Plan has been executed by the Company through its duly authorized
officers, this ____ day of ___________, 2000, to be effective as provided
herein.

                                     SOUTHERN COMPANY SERVICES, INC.

                                     By:      ______________________

<PAGE>

                                       32
exhibit 10.36.doc
                                    Exhibit A

                                SOUTHERN COMPANY
                           EXECUTIVE CHANGE IN CONTROL
                                 SEVERANCE PLAN

                               Waiver and Release

         I understand that I am entitled to receive the Severance Benefits
described in Article 3 of the Southern Company Executive Change in Control
Severance Plan (the "Plan") if I execute this Waiver and Release ("Waiver"). I
understand that the benefits I have elected to receive under the Plan are in
excess of those I would have received from ________________________ (the
"Company") if I had not elected to participate in the Plan and sign this Waiver.

         I recognize that I may have a claim against the Company under the Civil
Rights Act of 1964 and 1991, the Age Discrimination in Employment Act, the
Rehabilitation Act of 1973, the Energy Reorganization Act of 1974, as amended,
the Americans with Disabilities Act or other federal, state and local laws.

         In exchange for the benefits I elect to receive, I hereby irrevocably
waive and release all claims, of any kind whatsoever, whether known or unknown
in connection with any claim which I ever had, may have, or now have against The
Southern Company, Alabama Power Company, Georgia Power Company, Gulf Power
Company, Mississippi Power Company, Savannah Electric and Power Company,
Southern Communication Services, Inc., Southern Company Services, Inc., Southern
Energy Resources, Inc., Southern Company Energy Solutions, Inc., Southern
Nuclear Operating Company, Inc., Southern Energy, Inc. and other direct or
indirect subsidiaries of The Southern Company and their past, present and future
officers, directors, employees, agents and attorneys. Nothing in this Waiver
shall be construed to release claims or causes of action under the Age
Discrimination in Employment Act or the Energy Reorganization Act of 1974, as
amended, which arise out of events occurring after the execution date of this
Waiver.

         In further exchange for the benefits I elect to receive, I understand
and agree that I will respect the proprietary and confidential nature of any
information I have obtained in the course of my service with the Company or any
subsidiary or affiliate of The Southern Company. I understand and agree that I
am obligated to keep confidential and not disclose the terms of this Waiver,
including, but not limited to, the benefits under this Plan, except to my
attorneys, financial advisors, or except where such disclosure is required by
law. However, nothing in this Waiver shall prohibit me from engaging in
protected activities under applicable law or from communicating, either
voluntary or otherwise, with any governmental agency concerning any potential
violation of the law.

         In signing this Waiver, I am not releasing claims to any vested or
accrued benefits that I have under any workers' compensation laws or any
retirement plan or welfare benefit plan within the meaning of the Employee
Retirement Income Security Act of 1974, as amended, which is sponsored by or
adopted by the Company and/or any of its direct or indirect subsidiaries;
however, I understand and acknowledge that nothing herein is intended to or
shall be construed to require the Company to institute or continue in effect any
particular plan or benefit sponsored by the Company and the Company hereby
reserves the right to amend or terminate any of its benefit programs at any time
in accordance with the procedures set forth in such plans.

         In signing this Waiver, I realize that I am waiving and releasing,
among other things, any claims to benefits under any and all bonus, severance,
workforce reduction, early retirement, outplacement, or any other similar type
plan sponsored by the Company except for programs specifically designed for
participants in the Plan.

         I have been encouraged and advised in writing to seek advice from
anyone of my choosing regarding this Waiver, including my attorney, and my
accountant or tax advisor. Prior to signing this Waiver, I have been given the
opportunity and sufficient time to seek such advice, and I fully understand the
meaning and contents of this Waiver.

         I understand that I may take up to forty-five (45) calendar days to
consider whether or not I desire to enter this Waiver. I was not coerced,
threatened or otherwise forced to sign this Waiver. I have made my choice to
sign this Waiver voluntarily and of my own free will.

         I understand that I may revoke this Waiver at any time during the seven
(7) calendar day period after I sign and deliver this Waiver to the Company. If
I revoke this Waiver, I must do so in writing delivered to the Company. I
understand that this Waiver is not effective until the expiration of this seven
(7) calendar day revocation period. I understand that upon the expiration of
such seven (7) calendar day revocation period this entire Waiver will be binding
upon me and will be irrevocable.

         I understand that by signing this Waiver I am giving up rights I may
have.

         IN WITNESS WHEREOF, the undersigned hereby executes this Waiver this
__________________  day of  ____________________ , in the year ______.

                                                 Employee's signature

                                                 Employee's printed name

         Acknowledged and Accepted by the Administrative Committee of the
Southern Company Executive Change in Control Severance Plan.

By:
         -----------------------------------
Date:
         -----------------------------------

<PAGE>

                             Attachment to Exhibit A

TO:               All Eligible Employees under the Southern Company Executive
                  Change in Control Severance Plan

FROM:             _____________________

RE:               ADEA Information Notice

DATE:             _____________________

         A severance plan known as the Southern Company Executive Change in
Control Severance Plan ("Plan") has been approved and established by The
Southern Company, its affiliates and its direct and indirect subsidiaries
(collectively the "Company"). You are eligible to participate in the Plan
subject to the terms of the Plan. In accordance with the Age Discrimination in
Employment Act ("ADEA"), the Company is providing you the following information
pertaining to eligibility and participation in the Plan.

              The purpose of the Plan is to provide benefits to certain key
              employees of The Southern Company and certain subsidiaries of The
              Southern Company ("Employing Companies") whose employment is
              terminated subsequent to a change in control of The Southern
              Company or their respective Employing Company.

              Each active regular employee of an Employing Company of Grade 10
              to 13 (or, if the Grade System is not used, $130,000 or more of
              annual base salary rate for the 12 month period immediately
              preceding the change in control) not covered by a collective
              bargaining agreement is generally eligible to participate in the
              Plan if, during the two year period following a change in control:
              (i) his employment is involuntarily terminated for reasons other
              than cause, or (ii) he voluntarily terminates employment for good
              reason.

              All eligible employees may receive severance benefits under the
              Plan by signing a Waiver and Release no later than 45 calendar
              days from the date it is received. The Waiver and Release will
              remain revocable by you for a seven day period after you sign it.

              Attached is a list sorted by job title and age of each employee
              eligible to participate in the Plan as well as a list of the ages
              of all employees in the same job classification who are not
              eligible to participate in the Plan.

         In furtherance of you making an informed decision, the Company urges
you to seek a financial advisor, legal counsel and a qualified tax advisor to
assist you in fully understanding your rights and benefits under the plan and
the Waiver and Release that you will be required to sign to receive severance
benefits under the Plan.

           If you have any questions or need additional information, please
call me at _______________.

Sincerely,

----------------------
[Name]
----------------------
[Title]

<PAGE>

                             ADEA INFORMATION NOTICE

-------------------------------------------------------------------------------
         Job Title, Classification                                Age of
     or Category of Eligible Employees                      Eligible Employees

[List  job   classification,   title  or  category  of  all  [List
corresponding age of each eligible employee]
eligible employees]
-------------------------------------------------------------------------------

                 Job Title, Classification                           Age of
            or Category of Ineligible Employees            Ineligible Employees

[List  job   classification,   title  or  category  of  all  [List
corresponding age of each ineligible employee]
ineligible employees]
-------------------------------------------------------------------------------

<PAGE>

                                    Exhibit B

                                SOUTHERN COMPANY
                           EXECUTIVE CHANGE IN CONTROL
                                 SEVERANCE PLAN

                     Short Term Incentive Compensation PlansExhibit 10.37

                              AMENDED AND RESTATED
                           CHANGE IN CONTROL AGREEMENT
         THIS AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT ("Agreement")
made and entered into by and between The Southern Company ("Southern"), Southern
Company Services, Inc. (the "Company") and Mr. Henry Allen Franklin ("Mr.
Franklin") (hereinafter collectively referred to as the "Parties") is effective
July 10, 2000. This Agreement amends and restates the Change in Control
Agreement entered into by the Parties, effective and executed on July 8, 1999.

                              W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS, Mr. Franklin is the President and Chief Operating Officer of
Southern;

         WHEREAS, the Parties entered into a Change in Control Agreement
effective July 8, 1999 (the "July 8, 1999 Agreement") to provide to Mr. Franklin
certain severance benefits under certain circumstances following a change in
control (as defined herein) of Southern or the Company;

         WHEREAS, pursuant to Section 6(d) of the July 8, 1999 Agreement, the
Parties may amend the July 8, 1999 Agreement by written agreement;

         WHEREAS, the Parties wish to enter into this Amended and Restated
Change in Control Agreement pursuant to the provisions of such Section 6(d), to
(i) change certain references from normal market bonus to target bonus, (ii)
clarify that an initial public offering and a spin-off of the Company does not
constitute a "change in control" under the Agreement, (iii) change references
from the "Productivity Improvement Plan" to the "Executive Productivity
Improvement Plan," (iv) add Southern Energy, Inc. as a company released in the
waiver and release attached hereto, and (v) certain other technical and
miscellaneous modifications;

         NOW, THEREFORE, in consideration of the premises, and the agreements of
the parties set forth in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

                    1.  Definitions.   For  purposes  of  this  Agreement,   the
               following  terms shall have the following  meanings:  (a) "Annual
               Compensation"  shall  mean Mr.  Franklin's  highest  annual  base
               salary  rate  for  the  twelve  (12)  month  period   immediately
               preceding the date of the Change in Control plus target bonus.

                  (b) "Beneficial Ownership" shall mean beneficial ownership
         within the meaning of Rule 13d-3 promulgated under the Exchange Act.

                  (c) "Business Combination" shall mean a reorganization, merger
         or consolidation of Southern or sale or other disposition of all or
         substantially all of the assets of Southern.

                  (d)      "Change in Control" shall mean any of the following:

                           (i) The Consummation of an acquisition by any Person
                  of Beneficial Ownership of 20% or more of Southern's Voting
                  Securities; provided, however, that for purposes of this
                  Paragraph 1.(d)(i), the following acquisitions of Southern's
                  Voting Securities shall not constitute a Change in Control:

                         (A) any acquisition directly from Southern;

                         (B) any acquisition by Southern;

                         (C) any  acquisition  by any employee  benefit plan (or
                    related  trust)  sponsored or  maintained by Southern or any
                    Southern Subsidiary;

                         (D) any  acquisition  by a  qualified  pension  plan or
                    publicly held mutual fund;  (E) any  acquisition  by a Group
                    composed  exclusively  of  employees  of  Southern,  or  any
                    Southern Subsidiary;

                         (F) any  acquisition  by Mr.  Franklin  or any Group of
                    which Mr. Franklin is a party; or

                         (G) any Business  Combination which would not otherwise
                    constitute a change in control because of the application of
                    clauses  (A), (B) and (C) of  Paragraph  1.(d)(iii);  (ii) A
                    change in the  composition  of the  Southern  Board  whereby
                    individuals who constitute the Incumbent Board cease for any
                    reason to  constitute  at least a majority  of the  Southern
                    Board;

                           (iii) Consummation of a Business Combination,
                  provided, however, that such a Business Combination shall not
                  constitute a Change in Control if all three (3) of the
                  following conditions are met:

                                    (A) all or substantially all of the
                           individuals and entities who held Beneficial
                           Ownership, respectively, of Southern's Voting
                           Securities immediately prior to such Business
                           Combination beneficially own, directly or indirectly,
                           65% or more of the combined voting power of the
                           Voting Securities of the corporation surviving or
                           resulting from such Business Combination, (including,
                           without limitation, a corporation which as a result
                           of such transaction holds Beneficial Ownership of all
                           or substantially all of Southern's Voting Securities
                           or all or substantially all of Southern's assets)
                           (such surviving or resulting corporation to be
                           referred to as "Surviving Company"), in substantially
                           the same proportions as their ownership, immediately
                           prior to such Business Combination, of Southern's
                           Voting Securities;

                                    (B) no Person (excluding any corporation
                           resulting from such Business Combination, any
                           employee benefit plan (or related trust) of Southern,
                           any Southern Subsidiary or Surviving Company, Mr.
                           Franklin, any Group of which Mr. Franklin is a party,
                           any Group composed exclusively of Company employees,
                           any qualified pension plan (or related trust) or any
                           publicly held mutual fund) holds Beneficial
                           Ownership, directly or indirectly, of 20% or more of
                           the combined voting power of the then outstanding
                           Voting Securities of Surviving Company except to the
                           extent that such ownership existed prior to the
                           Business Combination; and

                                    (C) at least a majority of the members of
                           the board of directors of Surviving Company were
                           members of the Incumbent Board at the earlier of the
                           date of execution of the initial agreement, or of the
                           action of the Southern Board, providing for such
                           Business Combination.

                           (iv) The Consummation of an acquisition by any Person
                  of Beneficial Ownership of 50% or more of the combined voting
                  power of the then outstanding Voting Securities of the
                  Company; provided, however, that for purposes of this
                  Paragraph 1.(d)(iv), any acquisition by Mr. Franklin, any
                  Group composed exclusively of employees of the Company, any
                  Group of which Mr. Franklin is a party, any qualified pension
                  plan (or related trust), any publicly held mutual fund, any
                  employee benefit plan (or related trust) sponsored or
                  maintained by Southern or any Southern Subsidiary shall not
                  constitute a Change in Control;

                           (v) Consummation of a reorganization, merger or
                  consolidation of the Company (an "Employing Company Business
                  Combination"), in each case, unless, following such Employing
                  Company Business Combination, Southern Controls the
                  corporation or other entity surviving or resulting from such
                  Employing Company Business Combination; or

                           (vi) Consummation of the sale or other disposition of
                  all or substantially all of the assets of the Company to a
                  corporation or other entity which Southern does not Control.
         Notwithstanding the foregoing, in no event shall "Change in Control"
         mean an initial public offering or a spin-off of the Company.

                  (e) "COBRA Coverage" shall mean any continuation coverage to
         which Mr. Franklin or his dependents may be entitled pursuant to Code
         Section 4980B.

                         (f) "Code"  shall  mean the  Internal  Revenue  Code of
                    1986, as amended.

                         (g)  "Company"  shall mean Southern  Company  Services,
                    Inc., its successors and assigns.

                         (h)  "Consummation"  shall mean the  completion  of the
                    final act necessary to complete a transaction as a matter of
                    law,  including,  but not limited to, any required approvals
                    by the  corporation's  shareholders  and board of directors,
                    the transfer of legal and beneficial  title to securities or
                    assets  and the final  approval  of the  transaction  by any
                    applicable  domestic or foreign  governments or governmental
                    agencies.

                         (i) "Control" shall mean, in the case of a corporation,
                    Beneficial Ownership of more than 50% of the combined voting
                    power of the corporation's Voting Securities, or in the case
                    of any other entity,  Beneficial  Ownership of more than 50%
                    of such entity's voting equity interests.

                         (j)  "Effective  Date" shall mean the date of execution
                    of this Agreement.

                         (k)  "Employee  Outplacement  Program"  shall  mean the
                    program established by the Company from time to time for the
                    purpose  of  assisting  participants  covered by the plan in
                    finding employment outside of the Company which provides for
                    the following services:

                           (i) self assessment, career decision and goal
                           setting; (ii) job market research and job sources;
                           (iii) networking and interviewing skills; (iv)
                           planning and implementation strategy; (v) resume
                           writing, job hunting methods and salary negotiation;
                           and (vi) office support and job search resources.

          (l) "Exchange Act" shall mean the Securities  Exchange Act of 1934, as
     amended.

     (m) "Executive Productivity Improvement Plan" or "Executive PIP Plan" shall
mean the

         Southern Company Executive Productivity Improvement Plan or replacement
         thereto, as such plans may be amended from time to time.

                  (n) "Good Reason" shall mean, without Mr. Franklin's express
         written consent, after written notice to the Board, and after a thirty
         (30) day opportunity for the Board to cure, the continuing occurrence
         of any of the following events:

          (i) Inconsistent  Duties.  A meaningful and detrimental  alteration in
     Mr. Franklin's position or in the nature or status of his  responsibilities
     from those in effect immediately prior to the Change in Control;

          (ii) Reduced  Salary.  A reduction of five percent (5%) or more by the
     Company in either of the following:  (i) Mr.  Franklin's annual base salary
     rate as in effect  immediately prior to the Change in Control (except for a
     less than ten  percent  (10%),  across-the-board  annual  base  salary rate
     reduction  similarly  affecting at least  ninety-five  percent (95%) of the
     Executive  Employees  of the  Company);  or (ii) the sum of Mr.  Franklin's
     annual base salary rate plus target  bonus under the PPP Plan (except for a
     less than ten  percent  (10%),  across-the-board  reduction  of annual base
     salary rate plus target  bonus under the PPP Plan  similarly  affecting  at
     least ninety-five percent (95%) of the Executive Employees of the Company);

          (iii) Pension and  Compensation  Plans.  The failure by the Company to
     continue in effect any pension or  compensation  plan or agreement in which
     Mr.  Franklin  participates  or is a party as of the date of the  Change in
     Control or the elimination of Mr. Franklin's participation therein, (except
     for  across-the-board  plan changes or terminations  similarly affecting at
     least ninety-five percent (95%) of the Executive Employees of the Company);
     For purposes of this Paragraph  1.(n), a "pension plan or agreement"  shall
     mean any  written  arrangement  executed  by an  authorized  officer of the
     Company which provides for payments upon  retirement;  and a  "compensation
     plan or  arrangement"  shall mean any  written  arrangement  executed by an
     authorized   officer  of  the  Company   which   provides   for   periodic,
     non-discretionary compensatory payments in the nature of bonuses.

          (iv)  Relocation.  A  change  in Mr.  Franklin's  work  location  to a
     location  more than fifty (50) miles from the office where Mr.  Franklin is
     located at the time of the Change in Control, unless such new work location
     is within fifty (50) miles from Mr. Franklin's principal place of residence
     at the time of the  Change  in  Control.  The  acceptance,  if any,  by Mr.
     Franklin of employment  by the Company at a work location  which is outside
     the fifty mile radius set forth in this Paragraph  1.(n)(iv) shall not be a
     waiver of Mr. Franklin's right to refuse subsequent transfer by the Company
     to a location  which is more than  fifty  (50)  miles  from Mr.  Franklin's
     principal place of residence at the time of the Change in Control, and such
     subsequent   unconsented   transfer  shall  be  "Good  Reason"  under  this
     Agreement; or

          (v) Benefits and Perquisites.  The taking of any action by the Company
     which would directly or indirectly  materially  reduce the benefits enjoyed
     by Mr. Franklin under the Company's  retirement,  life insurance,  medical,
     health and accident, disability,  deferred compensation or savings plans in
     which Mr.  Franklin was  participating  immediately  prior to the Change in
     Control;  or the failure by the Company to provide  Mr.  Franklin  with the
     number of paid vacation days to which Mr. Franklin is entitled on the basis
     of years of service  with the  Company  in  accordance  with the  Company's
     normal vacation policy in effect immediately prior to the Change in Control
     (except  for  across-the-board  plan or  vacation  policy  changes  or plan
     terminations  similarly affecting at least ninety-five percent (95%) of the
     Executive Employees of the Company).

          (vi)  For  purposes  of this  Paragraph  1.(n),  the  term  "Executive
     Employee"  shall mean those  employees  of the Company of Grade Level 10 or
     above.

          (o) "Group"  shall have the meaning set forth in Section  14(d) of the
     Exchange Act.

          (p) "Group  Health Plan" shall mean the group health plan covering Mr.
     Franklin as such plan may be amended from time to time.

          (q) "Group Life  Insurance  Plan" shall mean the group life  insurance
     program  covering  Mr.  Franklin  as such plan may be amended  from time to
     time.

          (r) "Incumbent  Board" shall mean those individuals who constitute the
     Southern  Board as of October 19, 1998 plus any individual who shall become
     a  director  subsequent  to such date  whose  election  or  nomination  for
     election by Southern's  shareholders was approved by a vote of at least 75%
     of the directors then comprising the Incumbent Board.  Notwithstanding  the
     foregoing,  no individual who shall become a director of the Southern Board
     subsequent to October 19, 1998 whose initial assumption of office occurs as
     a result of an actual or threatened election contest (within the meaning of
     Rule 14a-11 of the  Regulations  promulgated  under the Exchange  Act) with
     respect  to the  election  or  removal  of  directors  or other  actual  or
     threatened  solicitation of proxies or consents by or on behalf of a Person
     other than the Southern Board shall be a member of the Incumbent Board.

                  (s) "Month of Service" shall mean any calendar month during
         which Mr. Franklin has worked at least one (1) hour or was on approved
         leave of absence while in the employ of the Company or any affiliate or
         subsidiary of Southern.

                  (t) "Pension Plan" shall mean The Southern Company Pension
         Plan, as such plan may be amended from time to time.

                  (u) "Performance Dividend Plan" shall mean the Southern
         Company Performance Dividend Plan or any replacement thereto, as such
         plans may be amended from time to time.

                  (v) "Performance Stock Plan" shall mean the Southern Company
         Performance Stock Plan or any replacement thereto, as such plans may be
         amended from time to time.

          (w)  "Person"  shall mean any  individual,  entity or group within the
     meaning of Section 13(d)(3) or 14(d)(2) of Act.

                  (x) "Performance Pay Plan" or "PPP Plan" shall mean the
         Southern Company Performance Pay Plan or any replacement thereto, as
         such plans may be amended from time to time.

          (y)  "Southern"  shall mean The Southern  Company,  its successors and
     assigns.

          (z) "Southern Board" shall mean the board of directors of Southern.

               (aa) "Southern  Subsidiary"  shall mean any  corporation or other
          entity Controlled by Southern.

                  (bb) "Termination for Cause" or "Cause" shall mean the
         termination of Mr. Franklin's employment by the Company upon the
         occurrence of any of the following:

                           (i) The willful and continued failure by Mr. Franklin
                  substantially to perform his duties with the Company (other
                  than any such failure resulting from Mr. Franklin's Total
                  Disability or from Mr. Franklin's retirement or any such
                  actual or anticipated failure resulting from termination by
                  Mr. Franklin for Good Reason) after a written demand for
                  substantial performance is delivered to him by the Southern
                  Board, which demand specifically identifies the manner in
                  which the Southern Board believes that he has not
                  substantially performed his duties; or

                           (ii) The willful engaging by Mr. Franklin in conduct
                  that is demonstrably and materially injurious to the Company,
                  monetarily or otherwise, including, but not limited to any of
                  the following:

               (A) any willful act  involving  fraud or dishonesty in the course
          of Mr. Franklin's employment by the Company;

               (B) the willful carrying out of any activity or the making of any
          statement which would materially prejudice or impair the good name and
          standing of the Company,  Southern or any Southern Subsidiary or would
          bring the Company,  Southern or any Southern Subsidiary into contempt,
          ridicule or would  reasonably  shock or offend any  community in which
          the Company, Southern or such Southern Subsidiary is located;

               (C)  attendance at work in a state of  intoxication  or otherwise
          being found in possession at his workplace of any  prohibited  drug or
          substance, possession of which would amount to a criminal offense;

               (D)  violation  of the  Company's  policies  on drug and  alcohol
          usage,  fitness for duty requirements or similar policies as may exist
          from time to time as adopted by the Company's safety officer;

               (E)  assault or other act of violence  against any person  during
          the course of employment; or

               (F) indictment of any felony or any  misdemeanor  involving moral
          turpitude.  No act or failure to act by Mr.  Franklin  shall be deemed
          "willful"  unless done, or omitted to be done, by Mr.  Franklin not in
          good faith and without  reasonable  belief that his action or omission
          was in the best interest of the Company.

                  Notwithstanding the foregoing, Mr. Franklin shall not be
         deemed to have been terminated for Cause unless and until there shall
         have been delivered to him a copy of a resolution duly adopted by the
         affirmative vote of not less than three quarters of the entire
         membership of the Southern Board at a meeting of the Southern Board
         called and held for such purpose (after reasonable notice to Mr.
         Franklin and an opportunity for him, together with counsel, to be heard
         before the Southern Board), finding that, in the good faith opinion of
         the Southern Board, Mr. Franklin was guilty of conduct set forth above
         in clause (i) or (ii) of this Paragraph 1.(bb) and specifying the
         particulars thereof in detail.

                  (cc) "Termination Date" shall mean the date on which Mr.
         Franklin's employment with the Company is terminated; provided,
         however, that solely for purposes of Paragraph 2.(b) hereof, the
         Termination Date shall be the effective date of his retirement pursuant
         to the terms of the Pension Plan.

               (dd)  "Total   Disability"   shall  mean  Mr.   Franklin's  total
          disability within the meaning of the Pension Plan.

               (ee)  "Voting  Securities"  shall  mean  the  outstanding  voting
          securities  of a  corporation  entitling  the  holder  thereof to vote
          generally in the election of such corporation's directors.

               (ff)  "Waiver  and  Release"  shall mean the  Waiver and  Release
          attached hereto as Exhibit A.

               (gg)  "Year of  Service"  shall  mean Mr.  Franklin's  Months  of
          Service divided by twelve (12)

         rounded to the nearest whole year, rounding up if the remaining number
         of months is seven (7) or greater and rounding down if the remaining
         number of months is less than seven (7). If Mr. Franklin has a break in
         his service with the Company, he will receive credit under this
         Agreement for service prior to the break in service only if the break
         in service is less than five years.

         2.       Severance Benefits.
                  ------------------
                  (a) Eligibility. Except as otherwise provided in this
         Paragraph 2.(a), if Mr. Franklin's employment is involuntarily
         terminated by the Company at any time during the two year period
         following a Change in Control for reasons other than Cause, or if Mr.
         Franklin voluntarily terminates his employment with the Company for
         Good Reason at any time during the two year period following a Change
         in Control, Mr. Franklin shall be entitled to receive the benefits
         described in this Agreement upon the Company's receipt of an effective
         Waiver and Release. Notwithstanding anything to the contrary herein,
         Mr. Franklin shall not be eligible to receive benefits under this
         Agreement if Mr. Franklin:

               (i)  voluntarily  terminates his employment  with the Company for
          other than Good Reason;

               (ii) has his employment terminated by the Company for Cause;

               (iii)  accepts the  transfer of his  employment  to any  Southern
          Subsidiary or any employer that succeeds to all or  substantially  all
          of the assets of Southern or any Southern Subsidiary;

               (iv) refuses an offer of continued  employment  with the Company,
          any  Southern  Subsidiary,  or any  employer  that  succeeds to all or
          substantially  all  of the  assets  of the  Company,  or any  Southern
          Subsidiary under  circumstances where such refusal would not amount to
          Good Reason for voluntary termination of employment; or

               (v) elects to receive  the  benefits  of any other  voluntary  or
          involuntary   severance  or  separation  program,  plan  or  agreement
          maintained  by the Company in lieu of benefits  under this  Agreement;
          provided however,  that the receipt of benefits under the terms of any
          retention  plan or agreement  shall not be deemed to be the receipt of
          severance or separation benefits for purposes of this Agreement.

                  (b) Severance Benefits. If Mr. Franklin meets the eligibility
         requirements of Paragraph 2.(a) hereof, he shall be entitled to a cash
         severance benefit in an amount equal to three times his Annual
         Compensation (the "Severance Amount"). If any portion of the Severance
         Amount constitutes an "excess parachute payment" (as such term is
         defined under Code Section 280G ("Excess Parachute Payment")), the
         Company shall pay to Mr. Franklin an additional amount calculated by
         determining the amount of tax under Code Section 4999 that he otherwise
         would have paid on any Excess Parachute Payment with respect to the
         Change in Control and dividing such amount by a decimal determined by
         adding the tax rate under Code Section 4999 ("Excise Tax"), the
         hospital insurance tax under Code Section 3101(b) ("HI Tax") and
         federal and state income tax measured at the highest marginal rates
         ("Income Tax") and subtracting such result from the number one (1) (the
         "280G Gross-up"); provided, however, that no 280G Gross-up shall be
         paid unless the Severance Amount plus all other "parachute payments" to
         Mr. Franklin under Code Section 280G exceeds three (3) times Mr.
         Franklin's "base amount" (as such term is defined under Code Section
         280G ("Base Amount")) by ten percent (10%) or more; provided further,
         that if no 280G Gross-up is paid, the Severance Amount shall be capped
         at three (3) times Mr. Franklin's Base Amount, less all other
         "parachute payments" (as such term is defined under Code Section 280G)
         received by Mr. Franklin, less one dollar (the "Capped Amount"), if the
         Capped Amount, reduced by HI Tax and Income Tax, exceeds what otherwise
         would have been the Severance Amount, reduced by HI Tax, Income Tax and
         Excise Tax.

                  For purposes of this Paragraph 2.(b), whether any amount would
         constitute an Excess Parachute Payment and any other calculations of
         tax, e.g., Excise Tax, HI Tax, Income Tax, etc., or other amounts,
         e.g., Base Amount, Capped Amount, etc., shall be determined by the tax
         department of the independent public accounting firm then responsible
         for preparing Southern's consolidated federal income tax return, and
         such calculations or determinations shall be binding upon the parties
         hereto.

                  (c) Welfare Benefits. If Mr. Franklin meets the eligibility
         requirements of Paragraph 2.(a) hereof and is not otherwise eligible to
         receive retiree medical and life insurance benefits provided to certain
         retirees pursuant to the terms of the Pension Plan, the Group Health
         Plan and the Group Life Insurance Plan, he shall be entitled to the
         benefits set forth in this Paragraph 2.(c).

                           (i) Mr. Franklin shall be eligible to participate in
                  the Company's Group Health Plan, upon payment of both the
                  Company's and his monthly premium under such plan, for a
                  period of six (6) months for each of Mr. Franklin's Years of
                  Service, not to exceed five (5) years. If Mr. Franklin elects
                  to receive this extended medical coverage, he shall also be
                  entitled to elect coverage under the Group Health Plan for his
                  dependents who were participating in the Group Health Plan on
                  Mr. Franklin's Termination Date (and for such other dependents
                  as may be entitled to coverage under the provisions of the
                  Health Insurance Portability and Accountability Act of 1996)
                  for the duration of Mr. Franklin's extended medical coverage
                  under this Paragraph 2.(c)(i) to the extent such dependents
                  remain eligible for dependent coverage under the terms of the
                  Group Health Plan.

               (A)  The  extended  medical  coverage  afforded  to Mr.  Franklin
          pursuant to Paragraph 2.(c)(i),  as well as the premiums to be paid by
          Mr.  Franklin in connection  with such coverage shall be determined in
          accordance  with  the  terms of the  Group  Health  Plan and  shall be
          subject to any changes in the terms and conditions of the Group Health
          Plan as well as any  future  increases  in  premiums  under  the Group
          Health  Plan.  The premiums to be paid by Mr.  Franklin in  connection
          with  this  extended  coverage  shall be due on the  first day of each
          month;  provided,  however, that if he fails to pay his premium within
          thirty  (30) days of its due date,  such  extended  coverage  shall be
          terminated.

               (B) Any Group  Health  Plan  coverage  provided  under  Paragraph
          2.(c)(i)  shall be a part of and not in addition to any COBRA Coverage
          which Mr.  Franklin or his dependents may elect. In the event that Mr.
          Franklin or his dependents become eligible to be covered, by virtue of
          re-employment  or otherwise,  by any  employer-sponsored  group health
          plan or is eligible for coverage under any government-sponsored health
          plan  during the above  period,  coverage  under the  Company's  Group
          Health Plan  available to Mr.  Franklin or his dependents by virtue of
          the provisions of Paragraph  2.(c)(i) shall  terminate,  except as may
          otherwise  be  required  by law,  and shall not be  renewed.  (ii) Mr.
          Franklin  shall be entitled to receive  cash in an amount equal to the
          Company's and Mr.  Franklin's  cost of premiums for three (3) years of
          coverage  under the Group Health Plan and Group Life Insurance Plan in
          accordance  with the terms of such  plans as of the date of the Change
          in Control.

                    (d) Incentive  Plans.  If Mr. Franklin meets the eligibility
               requirements  of  Paragraph  2.(a) hereof he shall be entitled to
               the following benefits under the Company's incentive plans:

                           (i)      Stock Option Plan.
                                    -----------------

                                    (A) Any of Mr. Franklin's Options and Stock
                           Appreciation Rights under the Performance Stock Plan
                           (the defined terms of which are incorporated in this
                           Paragraph 2.(d)(i) by reference) which are
                           outstanding as of the Termination Date and which are
                           not then exercisable and vested, shall become fully
                           exercisable and vested to the full extent of the
                           original grant; provided, that in the case of a Stock
                           Appreciation Right, if Mr. Franklin is subject to
                           Section 16(b) of the Exchange Act, such Stock
                           Appreciation Right shall not become fully vested and
                           exercisable at such time if such actions would result
                           in liability to Mr. Franklin under Section 16(b) of
                           the Exchange Act, provided further, that any such
                           actions not taken as a result of the rules under
                           Section 16(b) of the Exchange Act shall be effected
                           as of the first date that such activity would no
                           longer result in liability under Section 16(b) of the
                           Exchange Act.

                                    (B) The restrictions and deferral
                           limitations applicable to any of Mr. Franklin's
                           Restricted Stock as of the Termination Date shall
                           lapse, and such Restricted Stock shall become free of
                           all restrictions and limitations and become fully
                           vested and transferable to the full extent of the
                           original grant.

                                    (C) The restrictions and deferral
                           limitations and other conditions applicable to any
                           other Awards held by Mr. Franklin under the Stock
                           Performance Plan as of the Termination Date shall
                           lapse, and such other Awards shall become free of all
                           restrictions, limitations or conditions and become
                           fully vested and transferable to the full extent of
                           the original grant.

                           (ii) Performance Pay Plan. Provided Mr. Franklin is
                  not entitled to benefits under Article V of the PPP Plan (the
                  defined terms of which are incorporated in this Paragraph
                  2.(d)(ii) by reference), if the PPP Plan is in place through
                  Mr. Franklin's Termination Date and to the extent Mr. Franklin
                  is entitled to participate therein, Mr. Franklin shall be
                  entitled to receive cash in an amount equal to a prorated
                  payout of his Incentive Pay Awards under the PPP Plan for the
                  Performance Period in which the Termination Date shall have
                  occurred, at target performance under the PPP Plan and
                  prorated by the number of months which have passed since the
                  beginning of the Performance Period until the Termination
                  Date.

                    (iii)  Executive  PIP Plan.  Provided  Mr.  Franklin  is not
               entitled to benefits  under  Article IV of the Executive PIP Plan
               (the defined terms of which are  incorporated  in this  Paragraph
               2.(d)(iii) by  reference),  if the Executive PIP Plan is in place
               through  Mr.  Franklin's  Termination  Date and to the extent Mr.
               Franklin is entitled to participate  therein,  Mr. Franklin shall
               be  entitled  to  receive  cash in an  amount  equal to his Award
               Opportunity for the Computation  Periods in which the Termination
               Date shall have occurred at a target Value of Performance Unit of
               $1.00,  prorated  for each  Performance  Period by the  number of
               months  which  have  passed  since the  beginning  of each of the
               Computation Periods until the Termination Date.

                    (iv) Performance Dividend Plan. Provided Mr. Franklin is not
               entitled to benefits  under the  Performance  Dividend  Plan (the
               defined  terms  of  which  are  incorporated  in  this  Paragraph
               2.(d)(iv) by reference),  if the Performance  Dividend Plan is in
               place through Mr.  Franklin's  Termination Date and to the extent
               Mr.  Franklin is entitled to participate  therein,  Mr.  Franklin
               shall be  entitled  to  receive  cash for each  Award held by Mr.
               Franklin on his  Termination  Date,  based on actual  performance
               under Section 4.1 of the Performance  Dividend Plan determined as
               of  the  most  recently   completed   calendar   quarter  of  the
               Performance  Period  in which the  Termination  Date  shall  have
               occurred,   and  the  Annual  Dividend   declared  prior  to  the
               Termination Date.

                    (v) Other Short Term Incentive Plans. The provisions of this
               Paragraph  2.(d)(v)  shall  apply if and to the  extent  that Mr.
               Franklin is a participant  in any other "short term  compensation
               plan" not  otherwise  previously  referred  to in this  Paragraph
               2.(d).  Provided Mr. Franklin is not otherwise entitled to a plan
               payout under any change of control  provisions of such plans,  if
               the  "short  term  compensation  plan"  is in  place  as  of  the
               Termination  Date and to the extent Mr.  Franklin  is entitled to
               participate therein, Mr. Franklin shall receive cash in an amount
               equal to his award  under the  Company's  "short  term  incentive
               plan" for the annual  performance period in which the Termination
               Date shall have occurred,  at Mr. Franklin's  target  performance
               level and  prorated  by the number of months  which  have  passed
               since the  beginning of the annual  performance  period until his
               Termination  Date.  For purposes of this  Paragraph  2.(d)(v) the
               term  "short  term  incentive  compensation  plan" shall mean any
               incentive  compensation plan or arrangement adopted in writing by
               the Company  which  provides for annual,  recurring  compensatory
               bonuses based upon articulated  performance criteria. (e) Payment
               of Benefits.  Any amounts due under this Agreement  shall be paid
               in  one  (1)  lump  sum  payment  as  soon  as   administratively
               practicable   following   the  later  of:   (i)  Mr.   Franklin's
               Termination  Date,  or (ii)  upon  Mr.  Franklin's  tender  of an
               effective  Waiver  and  Release  to the  Company  in the  form of
               Exhibit A attached  hereto and the  expiration of any  applicable
               revocation period for such waiver. In the event of a dispute with
               respect to liability or amount of any benefit due  hereunder,  an
               effective  Waiver and  Release  shall be  tendered at the time of
               final  resolution of any such dispute when payment is tendered by
               the Company.

                  (f) Benefits in the Event of Death. In the event of Mr.
         Franklin's death prior to the payment of all amounts due under this
         Agreement, Mr. Franklin's estate shall be entitled to receive as due
         any amounts not yet paid under this Agreement upon the tender by the
         executor or administrator of the estate of an effective Waiver and
         Release.

                  (g) Legal Fees. In the event of a dispute between Mr. Franklin
         and the Company with regard to any amounts due hereunder, if any
         material issue in such dispute is finally resolved in Mr. Franklin's
         favor, the Company shall reimburse Mr. Franklin's legal fees incurred
         with respect to all issues in such dispute in an amount not to exceed
         fifty thousand dollars ($50,000).

                    (h) Employee  Outplacement  Services.  Mr. Franklin shall be
               eligible to  participate  in the Employee  Outplacement  Program,
               which  program  shall  not be less than six (6)  months  duration
               measured from Mr. Franklin's Termination Date.

                  (i) Non-qualified Retirement and Deferred Compensation Plans.
         The Parties agree that subsequent to a Change in Control, any claims by
         Mr. Franklin for benefits under any of the Company's non-qualified
         retirement or deferred compensation plans shall be resolved through
         binding arbitration in accordance with the provisions and procedures
         set forth in Paragraph 5 hereof and if any material issue in such
         dispute is finally resolved in Mr. Dalhberg's favor, the Company shall
         reimburse Mr. Franklin's legal fees in the manner provided in Paragraph
         2.(g) hereof.

         3. Transfer of Employment. In the event that Mr. Franklin's employment
by the Company is terminated during the two year period following a Change in
Control and Mr. Franklin accepts employment by Southern, a Southern Subsidiary,
or any employer that succeeds to all or substantially all of the assets of the
Company, Southern or any Southern Subsidiary, the Company shall assign this
Agreement to Southern, such Southern Subsidiary, or successor employer, Southern
shall accept such assignment or cause such Southern Subsidiary or successor
employer to accept such assignment, and such assignee shall become the "Company"
for all purposes hereunder.

         4. No Mitigation. If Mr. Franklin is otherwise eligible to receive
benefits under Paragraph 2 of this Agreement, he shall have no duty or
obligation to seek other employment following his Termination Date and, except
as otherwise provided in Paragraph 2.(a)(iii) hereof, the amounts due Mr.
Franklin hereunder shall not be reduced or suspended if Mr. Franklin accepts
such subsequent employment.

         5.       Arbitration.
                  -----------
                  (a) Any dispute, controversy or claim arising out of or
         relating to the Company's obligations to pay severance benefits under
         this Agreement, or the breach thereof, shall be settled and resolved
         solely by arbitration in accordance with the Commercial Arbitration
         Rules of the American Arbitration Association ("AAA") except as
         otherwise provided herein. The arbitration shall be the sole and
         exclusive forum for resolution of any such claim for severance benefits
         and the arbitrators' award shall be final and binding. The provisions
         of this Paragraph 5 are not intended to apply to any other disputes,
         claims or controversies arising out of or relating to Mr. Franklin's
         employment by the Company or the termination thereof.

                  (b) Arbitration shall be initiated by serving a written notice
         of demand for arbitration to Mr. Franklin, in the case of the Company,
         or to the Southern Board, in the case of Mr. Franklin.

                  (c) The arbitration shall be held in Atlanta, Georgia. The
         arbitrators shall apply the law of the State of Georgia, to the extent
         not preempted by federal law, excluding any law which would require the
         application of the law of another state.

                  (d) The parties shall appoint arbitrators within fifteen (15)
         business days following service of the demand for arbitration. The
         number of arbitrators shall be three. One arbitrator shall be appointed
         by Mr. Franklin, one arbitrator shall be appointed by the Company, and
         the two arbitrators shall appoint a third. If the arbitrators cannot
         agree on a third arbitrator within thirty (30) business days after the
         service of demand for arbitration, the third arbitrator shall be
         selected by the AAA.

                  (e) The arbitration filing fee shall be paid by Mr. Franklin.
         All other costs of arbitration shall be borne equally by Mr. Franklin
         and the Company, provided, however, that the Company shall reimburse
         such fees and costs in the event any material issue in such dispute is
         finally resolved in Mr. Franklin's favor and Mr. Franklin is reimbursed
         legal fees under Paragraph 2.(g) hereof.

                  (f) The parties agree that they will faithfully observe the
         rules that govern any arbitration between them, they will abide by and
         perform any award rendered by the arbitrators in any such arbitration,
         including any award of injunctive relief, and a judgment of a court
         having jurisdiction may be entered upon an award.

                  (g) The parties agree that nothing in this Paragraph 5 is
         intended to preclude upon application of either party any court having
         jurisdiction from issuing and enforcing in any lawful manner such
         temporary restraining orders, preliminary injunctions, and other
         interim measures of relief as may be necessary to prevent harm to a
         party's interests or as otherwise may be appropriate pending the
         conclusion of arbitration proceedings pursuant to this Agreement;
         regardless of whether an arbitration proceeding under this Paragraph 5
         has begun. The parties further agree that nothing herein shall prevent
         any court from entering and enforcing in any lawful manner such
         judgments for permanent equitable relief as may be necessary to prevent
         harm to a party's interests or as otherwise may be appropriate
         following the issuance of arbitral awards pursuant to this Paragraph 5.
         6. Miscellaneous.

                  (a) Funding of Benefits. Unless the Board in its discretion
         shall determine otherwise, the benefits payable to Mr. Franklin under
         this Agreement shall not be funded in any manner and shall be paid by
         the Company out of its general assets, which assets are subject to the
         claims of the Company's creditors.

                  (b) Withholding. There shall be deducted from the payment of
         any benefit due under this Agreement the amount of any tax required by
         any governmental authority to be withheld and paid over by the Company
         to such governmental authority for the account of Mr. Franklin.

                  (c) Assignment. Mr. Franklin shall have no rights to sell,
         assign, transfer, encumber, or otherwise convey the right to receive
         the payment of any benefit due hereunder, which payment and the rights
         thereto are expressly declared to be nonassignable and nontransferable.
         Any attempt to do so shall be null and void and of no effect.

                    (d) Amendment and Termination.  The Agreement may be amended
               or terminated only by a writing executed by the parties.

                  (e) Construction. This Agreement shall be construed in
         accordance with and governed by the laws of the State of Georgia, to
         the extent not preempted by federal law, disregarding any provision of
         law which would require the application of the law of another state.

                  (f) Pooling Accounting. Notwithstanding anything to the
         contrary herein, if, but for any provision of this Agreement, a Change
         in Control transaction would otherwise be accounted for as a
         pooling-of-interests under APB No.16 ("Pooling Accounting") (after
         giving effect to any and all other facts and circumstances affecting
         whether such Change in Control transaction would use Pooling
         Accounting), such provision or provisions of this Agreement which would
         otherwise cause the Change in Control transaction to be ineligible for
         Pooling Accounting shall be void and ineffective in such a manner and
         to the extent that by eliminating such provision or provisions of this
         Agreement, Pooling Accounting would be required for such Change in
         Control transaction.

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement
 this ____ day of  __________________,

                                       THE SOUTHERN COMPANY

                                      By:      ____________________

                                               SOUTHERN COMPANY
                                                   SERVICES, INC.

                                      By:      ____________________

                                               MR. FRANKLIN

                                               --------------------
                                               Henry Allen Franklin

<PAGE>

                                    Exhibit A

                           CHANGE IN CONTROL AGREEMENT

                               Waiver and Release

         The attached Waiver and Release is to be given to Mr. Henry Allen
Franklin upon the occurrence of an event that triggers eligibility for severance
benefits under the Change in Control Agreement, as described in Paragraph 2(a)
of such agreement.

<PAGE>

                           CHANGE IN CONTROL AGREEMENT

                               Waiver and Release

         I, Henry Allen Franklin, understand that I am entitled to receive the
severance benefits described in Section 2 of the Change in Control Agreement
(the "Agreement") if I execute this Waiver and Release ("Waiver"). I understand
that the benefits I will receive under the Agreement are in excess of those I
would have received from The Southern Company and Southern Company Services,
Inc. (collectively, the "Company") if I had not elected to sign this Waiver.

         I recognize that I may have a claim against the Company under the Civil
Rights Act of 1964 and 1991, the Age Discrimination in Employment Act, the
Rehabilitation Act of 1973, the Energy Reorganization Act of 1974, as amended,
the Americans with Disabilities Act or other federal, state and local laws.

         In exchange for the benefits I elect to receive, I hereby irrevocably
waive and release all claims, of any kind whatsoever, whether known or unknown
in connection with any claim which I ever had, may have, or now have against The
Southern Company, Alabama Power Company, Georgia Power Company, Gulf Power
Company, Mississippi Power Company, Savannah Electric and Power Company,
Southern Communication Services, Inc., Southern Company Services, Inc., Southern
Energy Resources, Inc., Southern Company Energy Solutions, Inc., Southern
Nuclear Operating Company, Inc., Southern Energy, Inc. and other direct or
indirect subsidiaries of The Southern Company and their past, present and future
officers, directors, employees, agents and attorneys. Nothing in this Waiver
shall be construed to release claims or causes of action under the Age
Discrimination in Employment Act or the Energy Reorganization Act of 1974, as
amended, which arise out of events occurring after the execution date of this
Waiver.

         In further exchange for the benefits I elect to receive, I understand
and agree that I will respect the proprietary and confidential nature of any
information I have obtained in the course of my service with the Company or any
subsidiary or affiliate of The Southern Company. However, nothing in this Waiver
shall prohibit me from engaging in protected activities under applicable law or
from communicating, either voluntary or otherwise, with any governmental agency
concerning any potential violation of the law.

         In signing this Waiver, I am not releasing claims to benefits that I am
already entitled to under any workers' compensation laws or under any retirement
plan or welfare benefit plan within the meaning of the Employee Retirement
Income Security Act of 1974, as amended, which is sponsored by or adopted by the
Company and/or any of its direct or indirect subsidiaries; however, I understand
and acknowledge that nothing herein is intended to or shall be construed to
require the Company to institute or continue in effect any particular plan or
benefit sponsored by the Company and the Company hereby reserves the right to
amend or terminate any of its benefit programs at any time in accordance with
the procedures set forth in such plans.

         In signing this Waiver, I realize that I am waiving and releasing,
among other things, any claims to benefits under any and all bonus, severance,
workforce reduction, early retirement, outplacement, or any other similar type
plan sponsored by the Company.

         I have been encouraged and advised in writing to seek advice from
anyone of my choosing regarding this Waiver, including my attorney, and my
accountant or tax advisor. Prior to signing this Waiver, I have been given the
opportunity and sufficient time to seek such advice, and I fully understand the
meaning and contents of this Waiver.

         I understand that I may take up to twenty-one (21) calendar days to
consider whether or not I desire to enter this Waiver. I was not coerced,
threatened or otherwise forced to sign this Waiver. I have made my choice to
sign this Waiver voluntarily and of my own free will.

         I understand that I may revoke this Waiver at any time during the seven
(7) calendar day period after I sign and deliver this Waiver to the Company. If
I revoke this Waiver, I must do so in writing delivered to the Company. I
understand that this Waiver is not effective until the expiration of this seven
(7) calendar day revocation period. I understand that upon the expiration of
such seven (7) calendar day revocation period this entire Waiver will be binding
upon me and will be irrevocable.

         I understand that by signing this Waiver I am giving up rights I may
have.

         IN WITNESS  WHEREOF,  the undersigned  hereby executes this Waiver
this ____ day of  ____________________, in the year _____.

Henry Allen Franklin
Sworn to and subscribed to me this
____ day of ____________, _____.

Notary Public

My Commission Expires:

(Notary Seal)

         Acknowledged and Accepted by the Company, as defined in the Waiver.

By:
         -----------------------------------
Date:
         -----------------------------------

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