Document:

Change of Control Agreement

	
Exhibit 10.2

CHANGE OF CONTROL AGREEMENT

THIS AGREEMENT (“Agreement”), by and between SYNOVUS FINANCIAL CORP., a Georgia
corporation (the “Company”) and      (the “Employee”) is entered into as of
the      day of      ,      (the “Effective Date”);

WHEREAS, the Board of Directors of the Company (the “Board”), has determined that it is in the
best interests of the Company and its shareholders to assure that the Company will have the
continued dedication of the Employee, notwithstanding the possibility, threat or occurrence of a
Change of Control (as defined below) of the Company;

WHEREAS, the Board believes it is imperative to diminish the inevitable distraction of the
Employee by virtue of the personal uncertainties and risks created by a pending or threatened
Change of Control and to encourage the Employee’s full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and to provide the
Employee with appropriate compensation and benefits arrangements upon a Change of Control which are
competitive with those of other corporations; and

WHEREAS, in order to accomplish these objectives, the Board has caused the Company to enter
into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1. Certain Definitions. (a) The “Change of Control Date” shall mean the first date during
the Change of Control Period (as defined in Section 1(b)) on which a Change of Control (as defined
in Section 2) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change of
Control occurs and if the Employee’s employment with the Company is terminated prior to the date on
which the Change of Control occurs, and if it is reasonably demonstrated by Employee that such
termination of employment (i) was at the request of a third party who has taken steps reasonably
calculated to effect a Change of Control or (ii) otherwise arose in connection with or in
anticipation of a Change of Control, then for all purposes of this Agreement the “Change of Control
Date” shall mean the date immediately prior to the date of such termination of employment.

(b) The “Change of Control Period” shall mean the period commencing on the Effective Date and
ending on the day after the date of Employee’s termination of employment from the Company or, if
earlier, the date which is two years after the Change of Control Date.

(c) “Cause” shall mean:

(1) the willful and continued failure of the Employee to perform substantially the Employee’s
duties with the Company or one of its affiliates after a written demand for substantial performance
is delivered to the Employee by the Executive Committee of the Board or the Chief Executive Officer
of the Company which specifically identifies the manner in which the Executive Committee of the
Board or Chief Executive Officer believes that the Employee has not

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substantially performed the
Employee’s duties, after which Employee shall have a reasonable amount of time to remedy such
failure to substantially perform his or her duties; or

(2) the willful engaging by the Employee in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Company.

For purposes of this provision, no act, or failure to act, on the part of the Employee shall
be considered “willful” unless it is done, or omitted to be done, by the Employee in bad faith or
without reasonable belief that the Employee’s action or omission was in the best interests of the
Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board, or the Executive Committee of the Board, or upon the instructions of the
Chief Executive Officer, or an Executive Vice President (or higher ranking officer), of the
Company, or based upon the advice of counsel for the Company, shall be conclusively presumed to be
done, or omitted to be done, by the Employee in good faith and in the best interests of the
Company. The cessation of employment of the Employee shall not be deemed to be for Cause unless
and until there shall have been delivered to the Employee a copy of a resolution duly adopted by
the affirmative vote of not less than three-quarters (3/4) of the entire membership of the
Executive Committee of the Board at a meeting of the Executive Committee of the Board called and
held for such purpose (after reasonable notice is provided to the Employee and the Employee is
given an opportunity, together with counsel, to be heard before the Executive Committee of the
Board), finding that, in the good faith opinion of the Executive Committee of the Board, the
Employee is guilty of the conduct described in subparagraph (1) or (2) above, and specifying the
particulars thereof in detail.

(d) “Good Reason” shall mean:

(1) a material adverse reduction in the Employee’s position duties or responsibilities
excluding for this purpose: (i) a change in the position or level of officer to whom the
Employee reports, (ii) a change that is part of a policy, program or arrangement applicable to peer
executives (including peer executives of any successor to the Company), or (iii) an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Employee;

(2) the Company’s requiring the Employee to be based at any office or location more than 35
miles from the location where Employee was employed on the Change of Control Date or the date which
is 120 days prior to the Change of Control Date (if such earlier date is selected by Employee);

(3) a material reduction in Employee’s annual base salary, target annual bonus opportunity
(including, without limitation, the use of bonus goals that are not reasonable and consistent with
the bonus goals established for the preceding year), or participation in employee benefit plans, as
such salary, bonus and plans were in effect on either the Change of Control Date or the date which
is 120 days prior to the Change of Control Date (if such earlier date is selected by Employee)
unless such reduction is part of a policy, program or arrangement applicable to peer executives
(including peer executives to any successor to Company) ; or

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(4) any failure by the Company to comply with and satisfy Section 8(c) of this Agreement.

For purposes of this Section 1(d), any good faith determination of “Good Reason” made by the
Employee shall be conclusive.

(e) “Disability” shall be defined the same as such term is defined in either, at the selection
of the Employee, (a) the group long-term disability insurance plan sponsored or maintained by
Company on the Change of Control Date in which Employee participates or (b) any individual
long-term disability insurance arrangement in effect on the Change of Control Date, the premiums of
which are paid by Company for the benefit of Employee.

2. Change of Control. For the purposes of this Agreement, a “Change of Control” shall mean:

(a) the acquisition by any “person” (“Person”), as such term is used in Section 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the
Company or a subsidiary or any Company employee benefit plan (including its trustee) or an “Exempt
Person” as defined below), of “beneficial ownership” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 20% or more of the total
number of shares of the Company’s then outstanding securities;

(b) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least two-thirds (2/3) of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest 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 Board;

(c) consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets or stock of the Company (a “Business Combination”), in each
case, unless, following such Business Combination, (i) all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the total number of shares of the
Company’s outstanding securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than sixty percent (60%) of, respectively, the total number of shares
of the then outstanding securities of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately prior to such
Business Combination, of the total number of shares of the Company’s outstanding securities, (ii)
no Person (excluding any corporation resulting from such Business Combination, or any employee
benefit plan (including its trustee) of the Company or such corporation resulting from such
Business Combination, or an “Exempt Person” as defined below) beneficially owns, directly or
indirectly, 20% 

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or more of, respectively, the total number of shares of the then outstanding
securities of the corporation resulting from such Business Combination except to the extent that
such ownership existed prior to the Business Combination and (iii) at least two-thirds (2/3) of the
members of the board of directors of the Corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination; or

(d) the occurrence of a “Triggering Event” as such term is defined in the Rights Agreement
dated April 20, 1989, by and between the Company and Trust Company Bank (“Rights Agreement”), the
provisions of which, as such provisions and Rights Agreement may be amended from time to time, are
incorporated herein by this reference, but only so long as the Rights Agreement is in effect.

For purposes of this Section 2, an “Exempt Person” shall mean (1) any shareholder who (i) is a
descendent of D. Abbott Turner (the “Turner Family”), (ii) any shareholder who is affiliated or
associated, as defined in the Rights Agreement, with the Turner Family, or (iii) any person who
would otherwise become a “beneficial owner” of 20% of the total number of shares of the Company’s
then outstanding securities as a result of the receipt of the Company’s securities or a beneficial
interest in the Company’s securities from one or more members of the Turner Family by way of gift,
devise, descent or distribution (but not by way of sale) unless any such person, together with his
or her affiliates and associates, becomes the “beneficial owner” of more than 30% of the total
number of shares of the Company’s then outstanding securities; and (2) any person who is not
otherwise an Exempt Person and who as of April 20, 1989 was the beneficial owner of 10% or more of
the total number of shares of the Company’s then outstanding securities unless and until such
person shall become the beneficial owner of any additional outstanding Company securities.

For purposes of this Section 2, a “Change of Control” shall not result from any transaction
precipitated by the Company’s insolvency, appointment of a conservator, or determination by a
regulatory agency that the Company is insolvent, nor from any transaction initiated by the Company
in regard to converting from a publicly traded company to a privately held company.

3. Obligations of Company Upon Termination. In the event Employee’s employment by Company is
terminated before the two-year anniversary date of the Change of Control Date either (i) by the
Company for any reason other than Cause or Employee’s death or Disability, or (ii) by Employee for
Good Reason, then

(a) The Company shall pay to Employee in a lump sum in cash within 30 days after the date of
termination the aggregate of the following amounts:

(1) three times the sum of: (a) Employee’s annual base salary as in effect immediately prior
to Employee’s termination; plus (b) the product of (i) Employee’s annual base salary as in effect
immediately prior to Employee’s termination of employment multiplied by (ii) a percentage equal to
the average percentage of Employee’s annual bonus earned with respect to the three calendar years
ended prior to Employee’s termination, measured as a percentage of Employee’s annual base salary
for the year the bonus was earned; and
 

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(2) the product of (a) a fraction, the numerator of which is the greater of (i) six, or (ii)
number of full months Employee worked in the calendar year of Employee’s termination (e.g.,
an October 1 termination date results in a numerator of 9) and the denominator of which is 12;
multiplied by (b) the target annual bonus for which Employee was eligible immediately prior to
Employee’s termination

        .

For purposes of this Agreement, “annual base salary” means Employee’s annual rate of pay excluding
all other elements of compensation such as, without limitation, bonuses, perquisites, restricted
stock awards, stock options, and retirement and welfare benefits.

(b) For three years after Employee’s termination of employment, the Company shall continue to
provide medical and welfare benefits (including, without limitation, medical, prescription, dental,
disability (both individual and group arrangements), life (both individual and group arrangements),
and accidental death and dismemberment plans and programs) to Employee and Employee’s dependents at
the level of coverage elected by Employee during the open enrollment period immediately preceding
Employee’s termination of employment date under benefit plans that are generally equivalent to
those provided generally at any time after the Effective Date to other peer employees of the
Company and its affiliated companies (excluding individual disability and individual life insurance
arrangements, which must continue to be provided regardless of whether provided to peer employees);
provided, however, that if Employee becomes reemployed with another employer (specifically
excluding self-employment) and is eligible to receive medical or other welfare benefits under
another employer provided plan, Company shall terminate all medical and other welfare benefits
being provided hereunder; and provided further, however, that, at the election of Employee, or at
the election of Company if Employee is not eligible to participate under the terms of such medical
and welfare benefit plans (including COBRA continuation coverage for which Executive is eligible),
Company shall pay Employee an agreed upon lump sum amount in cash in lieu of the benefits described
in this Section 3(b), not to exceed 25% of the lump sum amount payable to Employee pursuant to
Section 3(a) of this Agreement.

(c) The Company shall not be obligated under this Agreement to provide outplacement assistance
or any other benefits and perquisites not covered above, such as a Company-provided automobile,
country club and dining club dues, health club dues, retirement benefits, etc.

4. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Employee’s
continuing or future participation in any plan, program, policy or practice provided by the Company
or any of its affiliated companies and for which the Employee may qualify, nor, subject to Section
9(f), shall anything herein limit or otherwise affect such rights as the Employee may have under
any contract or agreement with the Company or any of its affiliated companies. Amounts which are
vested benefits or which the Employee is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies at or subsequent to the date of termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly modified by this
Agreement.

5. Full Settlement. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have

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against the Employee or others. In no event shall the Employee be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Employee
under any of the provisions of this Agreement and, except as otherwise provided in this Agreement,
such amounts shall not be reduced whether or not the Employee obtains other employment. The
Company agrees to pay as incurred, to the full extent permitted by law, all legal fees and expenses
which the Employee may reasonably incur as a result of any contest (regardless of the outcome
thereof) by the Company, the Employee or others of the validity or enforceability of, or liability
under, any provision of this Agreement or any guarantee of performance thereof (including as a
result of any contest by the Employee about the amount of any payment pursuant to this Agreement),
plus in each case interest on any delayed payment at the applicable Federal rate provided for in
Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”).

6. Certain Additional Payments by the Company. (a) Anything in this Agreement to the contrary
notwithstanding and except as set forth below, in the event it shall be determined that any payment
or distribution by the Company to or for the benefit of the Employee (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined
without regard to any additional payments required under this Section (6) (a “Payment”)) would be
subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are
incurred by the Employee with respect to such excise tax (such excise tax, together with any such
interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the
Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount
such that after payment by the Employee of all taxes on the Gross-Up Payment including, without
limitation, any income taxes, employment taxes, excise taxes, and interest and penalties imposed
upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this Section 6,
if it shall be determined that the Employee is entitled to a Gross-Up Payment, but that the
Payments do not exceed 110% of the greatest amount (the “Reduced Amount”) that could be paid to the
Employee such that the receipt of Payments would not give rise to any Excise Tax, then no Gross-Up
Payment shall be made to the Employee and the remaining provisions of this Section 6 shall not
apply.

(b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by KPMG Peat Marwick or such other nationally recognized certified public accounting firm as
may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Employee within 15 business days of the receipt of notice
from the Employee that there has been a Payment, or such earlier time as is requested by the
Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any
Gross-Up Payment, as determined pursuant to this Section 6, shall be paid by the Company to the
Employee within five days of the receipt of the Accounting Firm’s determination. Any determination
by the Accounting Firm shall be binding upon the Company and the Employee. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been
made by the Company should have been made (“Underpayment”), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its remedies pursuant to
Section 6(c) and the Employee thereafter is required

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to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the Employee.

(c) The Employee shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable but no later than 10 business days after
the Employee is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The Employee shall not pay
such claim prior to the expiration of the 30-day period following the date on which it gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Employee in writing prior to the
expiration of such period that it desires to contest such claim, the Employee shall:

(1) give the Company any information reasonably requested by the Company relating to such
claim,

(2) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

(3) cooperate with the Company in good faith in order effectively to contest such claim, and

(4) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold the Employee harmless, on an after-tax basis, for any Excise Tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such representation and payment
of costs and expenses. Without limitation on the foregoing provisions of this Section 6(c), the
Company shall control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its sole option, either
direct the Employee to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Employee agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Company shall determine; provided, however, that if the Company directs the Employee to pay
such claim and sue for a refund, the Company shall advance the amount of such payment to the
Employee, on an interest-free basis and shall indemnify and hold the Employee harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Employee with respect to which such contested amount
is claimed to be due is limited solely to such

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 contested amount. Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and the Employee shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing authority.

(d) If, after the receipt by the Employee of an amount advanced by the Company pursuant to
Section 6(c), the Employee becomes entitled to receive any refund with respect to such claim, the
Employee shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Employee of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Employee shall not be
entitled to any refund with respect to such claim and the Company does not notify the Employee in
writing of its intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and
the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid

7. Confidential Information. The Employee shall hold in a fiduciary capacity for the benefit
of the Company all secret or confidential information, knowledge or data relating to the Company or
any of its affiliated companies, and their respective businesses, which shall have been obtained by
the Employee during the Employee’s employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the Employee or
representatives of the Employee in violation of this Agreement). After termination of the
Employee’s employment with the Company, the Employee shall not, without the prior written consent
of the Company or as may otherwise be required by law or legal process, communicate or divulge any
such information, knowledge or data to anyone other than the Company and those designated by it.

8. Successors. (a) This Agreement is personal to the Employee and without the prior written
consent of the Company shall not be assignable by the Employee otherwise than by will or the laws
of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by
the Employee’s legal representatives.

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

(c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

9. Miscellaneous. (a) This Agreement shall be governed by and construed in accordance with
the laws of the State of Georgia, without reference to principles of conflict of laws. The
captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

8

This Agreement may not be amended or modified otherwise than by a written agreement executed by
the parties hereto or their respective successors and legal representatives.

(b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid

If to the Employee:

To the Employee’s most recent home address as filed with the Company

If to the Company:

Synovus Financial Corp.

P. O. Box 120

Columbus, GA 31902

Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

(c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

(d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

(e) The Employee’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Employee or the Company may have
hereunder, including, without limitation, the right of the Employee to terminate employment for
Good Reason pursuant to Section 3 of this Agreement, shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement.

(f) The Employee and the Company acknowledge that, except as may otherwise be provided under
any other written agreement between the Employee and the Company, the employment of the Employee by
the Company is “at will” and, subject to Section 1(a) hereof, prior to the Change of Control Date,
the Employee’s employment may be terminated by either the Employee or the Company at any time prior
to the Change of Control Date, in which case the Employee and Company shall have no further rights
under this Agreement. In addition, in the event Employee’s employment is terminated as a result of
Employee’s death or Disability, Employee shall have no further rights under this Agreement. From
and after the Effective Date this Agreement shall supersede any other agreement between the parties
with respect to the subject matter hereof.

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(g) This Agreement cancels and supercedes any and all previous change of control agreements
between Employee and Company (including without limitation all Company affiliates and
subsidiaries).

(h) This Agreement is executed in two counterparts, each of which shall be deemed an original
and together shall constitute one and the same agreement, with one counterpart being delivered to
each party hereto.

IN WITNESS WHEREOF, the Employee has hereunto set the Employee’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name on its behalf, all being done in duplicate originals, with one original being delivered to
each party hereto, all as of the day and year first above written.

     
                     
                   
               

"Employee"

SYNOVUS FINANCIAL CORP.

By:       
          
          
         
          

Title:Exhibit 4.1

                       SAVANNAH ELECTRIC AND POWER COMPANY

                                       TO

                              THE BANK OF NEW YORK,
                                     TRUSTEE

                         SEVENTH SUPPLEMENTAL INDENTURE

                          DATED AS OF DECEMBER 9, 2004

                           SERIES G 5.75% SENIOR NOTES

                              DUE DECEMBER 1, 2044

<PAGE>

TABLE OF CONTENTS1

<TABLE>
                                                                                                      PAGE

ARTICLE 1.........................................................................................................1

<S>                                                                                                              <C>
    Series G Senior Notes.........................................................................................1
    SECTION 101.  Establishment...................................................................................1
    SECTION 102.  Definitions.....................................................................................2
    SECTION 103.  Payment of Principal and Interest...............................................................3
    SECTION 104.  Denominations...................................................................................4
    SECTION 105.  Global Security.................................................................................4
    SECTION 106.  Transfer........................................................................................5
    SECTION 107.  Redemption......................................................................................5
    SECTION 108.  Mandatory Redemption............................................................................5

ARTICLE 2.........................................................................................................6

    Special Insurance Provisions..................................................................................6
    SECTION 201.  Supplemental Indentures.........................................................................6
    SECTION 202.  Events of Default and Remedies..................................................................6
    SECTION 203.  Insurance Policy Payment Procedures.............................................................7
    SECTION 203.  Application of Term "Outstanding" to Series G Notes.............................................8
    SECTION 204.  Concerning the Special Insurance Provisions.....................................................8

ARTICLE 3.........................................................................................................8

    Miscellaneous Provisions......................................................................................8
    SECTION 301.  Recitals by Company.............................................................................8
    SECTION 302.  Ratification and Incorporation of Original Indenture............................................8
    SECTION 303.  Executed in Counterparts........................................................................8

1This Table of Contents does not constitute part of the Indenture or have any
 bearing upon the interpretation of any of its terms and provisions.

</TABLE>

<PAGE>

         .........THIS SEVENTH SUPPLEMENTAL INDENTURE is made as of the 9th day
of December, 2004, by and between SAVANNAH ELECTRIC AND POWER COMPANY, a Georgia
corporation, 600 Bay Street, East, Savannah, Georgia 31401 (the "Company"), and
THE BANK OF NEW YORK, a New York banking corporation, 101 Barclay Street, 21
West, New York, New York 10286 (the "Trustee").

                              W I T N E S S E T H:

     .........WHEREAS,  the Company has  heretofore  entered  into a Senior Note
Indenture,  dated as of March 1, 1998 (the "Original Indenture"),  with The Bank
of New York, as trustee, as heretofore supplemented;

     .........WHEREAS,  the Original  Indenture is  incorporated  herein by this
reference and the Original Indenture,  as heretofore supplemented and as further
supplemented  by this  Seventh  Supplemental  Indenture,  is herein  called  the
"Indenture";

     .........WHEREAS,  under the  Original  Indenture,  a new  series of Senior
Notes may at any time be established by the Board of Directors of the Company in
accordance  with the provisions of the Original  Indenture and the terms of such
series may be described by a supplemental  indenture executed by the Company and
the Trustee;

     .........WHEREAS,  the Company proposes to create under the Indenture a new
series of Senior Notes;

     .........WHEREAS,   additional  Senior  Notes  of  other  series  hereafter
established,  except as may be limited in the Original  Indenture as at the time
supplemented  and  modified,  may be issued  from time to time  pursuant  to the
Indenture as at the time supplemented and modified; and

     .........WHEREAS,  all conditions  necessary to authorize the execution and
delivery  of this  Seventh  Supplemental  Indenture  and to make it a valid  and
binding obligation of the Company have been done or performed.

     .........NOW, THEREFORE, in consideration of the agreements and obligations
set forth herein and for other good and valuable consideration,  the sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

                                    ARTICLE 1

                              Series G Senior Notes

         SECTION 101. Establishment. In accordance with Section 301 of the
Original Indenture, there is hereby established a new series of Senior Notes to
be issued under the Indenture, to be designated as the Company's Series G 5.75%
Senior Notes due December 1, 2044 (the "Series G Notes").

         There are to be authenticated and delivered $35,000,000 principal
amount of Series G Notes, and such principal amount of the Series G Notes may be
increased from time to time pursuant to Section 301 of the Original Indenture.
All Series G Notes need not be issued at the same time and such series may be
reopened at any time, without the consent of any Holder, for issuance of
additional Series G Notes. Any such additional Series G Notes will have the same
interest rate, maturity and other terms, including the benefit of an insurance
policy, as those initially issued. No Series G Notes shall be authenticated and
delivered in excess of the principal amount as so increased except as provided
by Sections 203, 303, 304, 907 or 1107 of the Original Indenture. The Series G
Notes shall be issued in definitive fully registered form.

         As provided in Section 105 hereof, the Series G Notes shall be issued
in the form of one or more Global Securities in substantially the form set out
in Exhibit A hereto. The Depositary with respect to the Series G Notes shall be
The Depository Trust Company.

         The form of the Trustee's Certificate of Authentication for the Series
G Notes shall be in substantially the form set forth in Exhibit B hereto.

         Each Series G Note shall be dated the date of authentication thereof
and shall bear interest from the date of original issuance thereof or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for.

         SECTION 102. Definitions. The following defined terms used herein
shall, unless the context otherwise requires, have the meanings specified below.
Capitalized terms used herein for which no definition is provided herein shall
have the meanings set forth in the Original Indenture.

         "Due for Payment" means, when referring to the principal of a Series G
Note, the Stated Maturity and does not refer to any earlier date on which
payment is due by reason of call for redemption, acceleration or other
advancement of maturity and means, when referring to interest on a Series G
Note, the stated date for payment in interest.

         "Fiscal Agent" means U.S. Bank Trust National Association, New York,
New York, or its successor.

         "Insurance Agreement" means that certain Insurance Agreement, dated as
of December 9, 2004, by and between the Company and the Insurer.

         "Insurer" means Financial Guaranty Insurance Company, a New York stock
insurance company, or any successor thereto.

         "Interest Payment Dates" means March 1, June 1, September 1 and
December 1 of each year, commencing March 1, 2005.

         "Mandatory Redemption Event" means the Company's failure to comply with
(i) Section 1.02 of the Insurance Agreement, the continuance of such failure for
a period in excess of 10 days after receipt by the Company of written notice
thereof from the Insurer and the receipt by the Trustee of notice thereof in
accordance with Section 108 hereof; or (ii) Section 3.01 or Section 3.02 of the
Insurance Agreement, the continuance of such failure for a period in excess of
30 days after receipt by the Company of written notice thereof from the Insurer
and the receipt by the Trustee of notice thereof in accordance with Section 108
hereof.

         "Nonpayment" means the failure by the Company to provide sufficient
funds to the Paying Agent for payment in full of all principal or interest on
the Series G Notes Due for Payment and includes any payment of principal or
interest (as applicable) made to a Holder of the Series G Notes by or on behalf
of the Company which has been recovered from such Holder pursuant to the United
States Bankruptcy Code by a trustee in bankruptcy in accordance with a final,
nonappealable order of a court having competent jurisdiction.

         "Original Issue Date" means December 9, 2004.

         "Policy" means the surety bond issued by the Insurer that guarantees
payment of principal of and interest on the Series G Notes when such principal
or interest is Due for Payment.

         "Regular Record Date" means, with respect to each Interest Payment
Date, the close of business on the 15th calendar day preceding such Interest
Payment Date (whether or not a Business Day).

         "Stated Maturity" means December 1, 2044.

         SECTION 103. Payment of Principal and Interest. The principal of the
Series G Notes shall be due at Stated Maturity (unless earlier redeemed). The
unpaid principal amount of the Series G Notes shall bear interest at the rate of
5.75% per annum until paid or duly provided for. Interest shall be paid
quarterly in arrears on each Interest Payment Date to the Person in whose name
the Series G Notes are registered on the Regular Record Date for such Interest
Payment Date, provided that interest payable at the Stated Maturity of principal
or on a Redemption Date as provided herein will be paid to the Person to whom
principal is payable. Any such interest that is not so punctually paid or duly
provided for will forthwith cease to be payable to the Holders on such Regular
Record Date and may either be paid to the Person or Persons in whose name the
Series G Notes are registered at the close of business on a Special Record Date
for the payment of such defaulted interest to be fixed by the Trustee, notice
whereof shall be given to Holders of the Series G Notes not less than ten (10)
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange,
if any, on which the Series G Notes shall be listed, and upon such notice as may
be required by any such exchange, all as more fully provided in the Original
Indenture.

         Payments of interest on the Series G Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest
payments for the Series G Notes shall be computed and paid on the basis of a
360-day year of twelve 30-day months. In the event that any date on which
interest is payable on the Series G Notes is not a Business Day, then a payment
of the interest payable on such date will be made on the next succeeding day
that is a Business Day (and without any interest or other payment in respect of
any such delay), with the same force and effect as if made on the date the
payment was originally payable.

         Payment of the principal and interest due at the Stated Maturity or
earlier redemption of the Series G Notes shall be made upon surrender of the
Series G Notes at the Corporate Trust Office of the Trustee. The principal of
and interest on the Series G Notes shall be paid in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts. Payments of interest (including interest on any
Interest Payment Date) will be made, subject to such surrender where applicable,
at the option of the Company, (i) by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (ii)
by wire transfer or other electronic transfer at such place and to such account
at a banking institution in the United States as may be designated in writing to
the Trustee at least sixteen (16) days prior to the date for payment by the
Person entitled thereto. Regardless of any other arrangement agreed to between
the Company and the Paying Agent, the Company shall deposit with the Paying
Agent sufficient funds for the principal payment due at the Stated Maturity no
later than one Business Day prior to the Stated Maturity.

         SECTION 104. Denominations. The Series G Notes may be issued in
denominations of $25, or any integral multiple thereof.

         SECTION 105. Global Securities. The Series G Notes will be issued in
the form of one or more Global Securities registered in the name of the
Depositary (which shall be The Depository Trust Company) or its nominee. Except
under the limited circumstances described below, Series G Notes represented by
one or more Global Securities will not be exchangeable for, and will not
otherwise be issuable as, Series G Notes in definitive form. The Global
Securities described above may not be transferred except by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or to a successor Depositary or its nominee.

         Owners of beneficial interests in such a Global Security will not be
considered the Holders thereof for any purpose under the Indenture, and no
Global Security representing a Series G Note shall be exchangeable, except for
another Global Security of like denomination and tenor to be registered in the
name of the Depositary or its nominee or to a successor Depositary or its
nominee. The rights of Holders of such Global Security shall be exercised only
through the Depositary.

         Subject to the procedures of the Depositary, a Global Security shall be
exchangeable for Series G Notes registered in the names of persons other than
the Depositary or its nominee only if (i) the Depositary notifies the Company
that it is unwilling or unable to continue as a Depositary for such Global
Security and no successor Depositary shall have been appointed by the Company,
or if at any time the Depositary ceases to be a clearing agency registered under
the Securities Exchange Act of 1934, as amended, at a time when the Depositary
is required to be so registered to act as such Depositary and no successor
Depositary shall have been appointed by the Company, in each case within 90 days
after the Company receives such notice or becomes aware of such cessation, (ii)
the Company in its sole discretion determines that such Global Security shall be
so exchangeable, or (iii) there shall have occurred an Event of Default with
respect to the Series G Notes. Any Global Security that is exchangeable pursuant
to the preceding sentence shall be exchangeable for Series G Notes registered in
such names as the Depositary shall direct.

         SECTION 106. Transfer. No service charge will be made for any transfer
or exchange of Series G Notes, but payment will be required of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

         The Company shall not be required (a) to issue, transfer or exchange
any Series G Notes, except to the Insurer, during a period beginning at the
opening of business fifteen (15) days before the day of the mailing of a notice
pursuant to Section 1104 of the Original Indenture identifying the serial
numbers of the Series G Notes to be called for redemption, and ending at the
close of business on the day of the mailing, or (b) to transfer or exchange any
Series G Notes theretofore selected for redemption in whole or in part, except
the unredeemed portion of any Series G Note redeemed in part.

         SECTION 107. Redemption. The Series G Notes shall be subject to
redemption at the option of the Company, in whole or in part, without premium or
penalty, at any time or from time to time on or after December 9, 2009, at a
Redemption Price equal to 100% of the principal amount to be redeemed plus
accrued but unpaid interest to the Redemption Date.

         In the event of redemption of the Series G Notes in part only, a new
Series G Note or Notes for the unredeemed portion will be issued in the name or
names of the Holders thereof upon the surrender thereof.

         The Series G Notes will not have a sinking fund.

         Notice of redemption shall be given as provided in Section 1104 of the
Original Indenture.

         Any redemption of less than all of the Series G Notes shall, with
respect to the principal thereof, be divisible by $25.

         SECTION 108. Mandatory Redemption. Upon the occurrence of a Mandatory
Redemption Event, the Company shall redeem the Series G Notes, in whole but not
in part, prior to the Stated Maturity upon not less than 30 nor more than 60
days' notice at a Redemption Price equal to 100% of the principal amount plus
accrued and unpaid interest to the Redemption Date. A Mandatory Redemption Event
will be deemed to have occurred at the time that the Trustee receives written
notice from the Insurer of the occurrence of a Mandatory Redemption Event and
such notice shall constitute notice under Section 1102 of the Original Indenture
and shall not be required to be evidenced by a Board Resolution. Subject to the
notice requirements set forth herein, the Company shall redeem the Series G
Notes (i) on December 9, 2009 if the Mandatory Redemption Event occurs on or
prior to October 10, 2009 or (ii) if the Mandatory Redemption Event occurs after
October 10, 2009, within 60 days after the occurrence of the Mandatory
Redemption Event, but in no event earlier than December 9, 2009. Any notice of
redemption required to be given by the Trustee in connection with a redemption
required by this Section 108 need not be given earlier than 15 days after the
date the Trustee receives notice of a Mandatory Redemption Event pursuant to
this Section 108.

         Notice of redemption shall be given as provided in Section 1104 of the
Original Indenture.

                                    ARTICLE 2

                          Special Insurance Provisions

         SECTION 201. Supplemental Indentures. The consent of the Insurer shall
be required with respect to any indenture or indentures supplemental to the
Original Indenture requiring the consent of the Holders of the Series G Notes
pursuant to Section 902 of the Original Indenture. The Company shall deliver to
any rating agency rating the Series G Notes notice of each such indenture or
indentures supplemental to the Original Indenture and a copy thereof at least 15
days in advance of its execution and provide the Insurer with a full transcript
of all proceedings related to the execution of any such indenture or indentures
supplemental to the Original Indenture.

         SECTION 202. Events of Default and Remedies. Subject to Section 107 of
the Original Indenture and to the Trust Indenture Act, including, without
limitation, Sections 316(a)(1) and 317(a) thereof, if an Event of Default with
respect to the Series G Notes occurs and is continuing, the Insurer shall be
entitled to control and direct the enforcement of all rights and remedies
granted to the Holders of the Series G Notes or the Trustee for the benefit of
the Holders of the Series G Notes under the Indenture, including, without
limitation, (i) the right to accelerate the principal of the Series G Notes as
provided in Section 502 of the Original Indenture, and (ii) the right to annul
any such declaration of acceleration, and the Insurer shall also be entitled to
approve any waiver of an Event of Default with respect to the Series G Notes,
the obligation of the Trustee to comply with any such direction to be subject to
compliance with the conditions set forth in Sections 512 and 603(e) of the
Original Indenture (as if references in those Sections to Holders were
references to the Insurer) and the protections provided to the Trustee by
Section 601(c)(3) of the Original Indenture shall be applicable with respect to
any direction from the Insurer given pursuant hereto (as if references in said
Section to Holders were references to the Insurer). The Insurer shall be
entitled to notify the Trustee and the Company of a default referred to in
Section 501(4) of the Original Indenture relating to the Series G Notes as if it
were the Holder of at least 25% in principal amount of the Outstanding Series G
Notes, provided that such notice shall otherwise conform to the requirements of
said Section 501(4).

         The Trustee and the Company shall give the Insurer immediate notice of
any default in the payment of the principal of or interest on the Series G Notes
(the obligation of the Trustee to give such notice to be deemed satisfied if the
Paying Agent shall have provided the notice required by Section 203(a) hereof).
The Trustee and the Company shall give the Insurer notice of any event which
with the giving of notice or the passage of time would constitute an Event of
Default with respect to the Series G Notes within 30 days of the Trustee's or
the Company's knowledge thereof, provided that the Trustee shall not be deemed
to have knowledge thereof unless a Responsible Officer of the Trustee assigned
to its Corporate Trust Office shall have actual knowledge thereof or unless the
Trustee shall have received written notice thereof from the Company or the
Holders of at least 25% in principal amount of the Series G Notes then
Outstanding.

         No effect shall be given to payments made under the Policy in
determining whether an Event of Default with respect to the Series G Notes has
occurred or is continuing.

         SECTION 203. Insurance Policy Payment Procedures. (a) If the Paying
Agent does not have sufficient funds for any payment of principal or interest
Due for Payment by reason of the Company's Nonpayment, then any Holder of the
Series G Notes or the Paying Agent will notify the Insurer and the Fiscal Agent
named herein or any successor thereto the identity of which shall have been
evidenced to the Trustee by written notice from the Insurer by telephonic or
telegraphic notice, subsequently confirmed in writing, or written notice by
registered or certified mail. The Insurer shall make such payment to the Fiscal
Agent on the date on which such principal or interest is Due for Payment or
within one Business Day (as defined in the Policy) after receipt of the notice
of Nonpayment, whichever is later, and the Fiscal Agent shall make such payments
in accordance with the Policy. In addition to the foregoing:

         (i) The Paying Agent shall provide the Insurer and the Fiscal Agent
with a list of the Holders entitled to receive principal or interest payments
from the Insurer under the terms of the Policy and shall make arrangements for
the Insurer and the Fiscal Agent to disburse such amount Due for Payment on any
Series G Note to the Holder or the Paying Agent.

         (ii) The Paying Agent shall, at the same time that it provides the
Insurer with the list of Holders, notify the Holders entitled to receive payment
of principal or interest on the Series G Notes from the Insurer (A) as to the
fact of such entitlement, (B) that the Insurer will remit to them or the Paying
Agent all or part of the interest payments Due for Payment, (C) that, except as
provided in paragraph (b) below, in the event that the Holder is entitled to
receive full payment of principal from the Insurer, such Holder must tender the
Series G Note to the Insurer or the Paying Agent with an instrument of transfer
executed in the name of the Insurer and (D) that, except as provided in
paragraph (b) below, in the event that such Holder is entitled to receive
partial payment of principal from the Insurer, such Holder must tender its
Series G Note for payment to the Paying Agent which shall note on such Series G
Note the portion of principal paid by the Paying Agent, and then, with an
acceptable form of assignment executed in the name of the Insurer, to the Fiscal
Agent which will then pay the unpaid portion of principal to the Holder subject
to the terms of the Policy.

         (b) In the event that the Trustee has written notice that any payment
of principal of or interest on a Series G Note has been recovered from a Holder
pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in
accordance with the final, nonappealable order of a court having competent
jurisdiction, the Trustee shall notify the Insurer of such recovery in
accordance with the notice requirements of Section 203(a) hereof and, in the
event a Responsible Officer of the Trustee assigned to its Corporate Trust
Department has actual knowledge of such recovery, or the Trustee has received
written notice from the Company or the Holders of at least 25% in principal
amount of the Series G Notes then Outstanding, the Trustee shall also notify all
Holders that in the event that any Holder's payment is so recovered, such Holder
will be entitled to payment from the Insurer to the extent of such recovery. The
Paying Agent shall furnish to the Insurer its records evidencing the payments of
principal of and interest on the Series G Notes which have been made by the
Paying Agent and subsequently recovered from the Holders, and the dates on which
such payments were made.

         (c) The Insurer shall, to the extent it makes payment of principal of
or interest on the Series G Notes, become subrogated to the rights of the
recipients of such payments in accordance with the terms of the Policy and, to
evidence such subrogation, (i) in the case of subrogation as to claims for past
due interest, the Trustee shall note the Insurer's rights as subrogee on the
Security Register maintained by the Trustee upon receipt from the Insurer of
proof of the payment of interest thereon to the Holder of such Series G Notes
and (ii) in the case of subrogation as to claims for past due principal, the
Trustee shall note the Insurer's rights as subrogee on the Security Register for
the Series G Notes maintained by the Trustee, as Security Registrar, upon
receipt of proof of the payment of the principal thereof to the Holders of such
Series G Notes. Notwithstanding anything in this Seventh Supplemental Indenture
or the Series G Notes to the contrary, the Paying Agent shall make payment of
such past due interest and past due principal directly to the Insurer to the
extent that the Insurer is a subrogee with respect thereto.

         SECTION 204. Application of Term "Outstanding" to Series G Notes. In
the event that the principal and/or interest due on the Series G Notes shall be
paid by the Insurer pursuant to the Policy, the Series G Notes shall remain
Outstanding for all purposes of the Indenture, shall not be considered defeased
or otherwise satisfied and shall not be considered paid by the Company, and the
Indenture and all covenants, agreements and other obligations of the Company to
the Holders of the Series G Notes shall continue to exist and such covenants,
agreements and other obligations shall run to the benefit of the Insurer, and
the Insurer shall be subrogated to the rights of such Holders to the extent of
each such payment.

         SECTION 205. Concerning the Special Insurance Provisions. The
provisions of this Article 2 shall apply notwithstanding anything in the
Indenture to the contrary, but only so long as the Policy shall be in full force
and effect and the Insurer is not in default thereunder.

                                    ARTICLE 3

                            Miscellaneous Provisions

         SECTION 301. Recitals by Company. The recitals in this Seventh
Supplemental Indenture are made by the Company only and not by the Trustee, and
all of the provisions contained in the Original Indenture in respect of the
rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of Series G Notes and of this Seventh Supplemental
Indenture as fully and with like effect as if set forth herein in full.

         SECTION 302. Ratification and Incorporation of Original Indenture. As
heretofore supplemented and as supplemented hereby, the Original Indenture is in
all respects ratified and confirmed, and the Original Indenture as heretofore
supplemented and as further supplemented by this Seventh Supplemental Indenture
shall be read, taken and construed as one and the same instrument.

         SECTION 303. Executed in Counterparts. This Seventh Supplemental
Indenture may be simultaneously executed in several counterparts, each of which
shall be deemed to be an original, and such counterparts shall together
constitute but one and the same instrument.

<PAGE>

1410002_1.DOC
                  IN WITNESS WHEREOF, each party hereto has caused this
instrument to be signed in its name and behalf by its duly authorized officers,
all as of the day and year first above written.

ATTEST:                                     SAVANNAH ELECTRIC AND
                                                     POWER COMPANY

By:                                                  By:
   ------------------------------        -------------------------
         Nancy E. Frankenhauser           Kirby R. Willis
         Comptroller and Corporate        Vice President, Treasurer and Chief
         Secretary                           Financial Officer

ATTEST:                                     THE BANK OF NEW YORK, as Trustee

By:                                                  By:
   -----------------------------            --------------------------------
         Authorized Signatory                     Authorized Signatory

<PAGE>

EXHIBIT A

                              FORM OF SERIES G NOTE

<PAGE>

NO. ____                                                CUSIP NO. 804787 88 5

                       SAVANNAH ELECTRIC AND POWER COMPANY
                           SERIES G 5.75% SENIOR NOTE
                              DUE DECEMBER 1, 2044

       Principal Amount:           $____________

       Regular Record Date:        15th calendar day prior to Interest
                                   Payment Date (whether or not a
                                   Business Day)

       Original Issue Date:        December 9, 2004

       Stated Maturity:            December 1, 2044

       Interest Payment Dates:     March 1, June 1, September 1 and December 1

       Interest Rate:              5.75% per annum

       Authorized Denominations:   $25 or any integral multiple thereof

       Initial Redemption Date:    December 9, 2009

         Savannah Electric and Power Company, a Georgia corporation (the
"Company", which term includes any successor corporation under the Indenture
referred to on the reverse hereof), for value received, hereby promises to pay
to _____________________, or registered assigns, the principal sum of
___________________________DOLLARS ($___________) on the Stated Maturity shown
above (or upon earlier redemption), and to pay interest thereon from the
Original Issue Date shown above, or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, quarterly in arrears on
each Interest Payment Date as specified above, commencing on March 1, 2005, and
on the Stated Maturity (or upon earlier redemption) at the rate per annum shown
above until the principal hereof is paid or made available for payment and on
any overdue principal and on any overdue installment of interest. The interest
so payable, and punctually paid or duly provided for, on any Interest Payment
Date (other than an Interest Payment Date that is the Stated Maturity or on a
Redemption Date) will, as provided in such Indenture, be paid to the Person in
whose name this Note (the "Note") is registered at the close of business on the
Regular Record Date as specified above next preceding such Interest Payment
Date, provided that any interest payable at Stated Maturity or on any Redemption
Date will be paid to the Person to whom principal is payable. Except as
otherwise provided in the Indenture, any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Note
is registered at the close of business on a Special Record Date for the payment
of such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Notes of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange, if any, on which
the Notes of this series shall be listed, and upon such notice as may be
required by any such exchange, all as more fully provided in the Indenture.

         Payments of interest on this Note will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for this Note
shall be computed and paid on the basis of a 360-day year of twelve 30-day
months. In the event that any date on which interest is payable on this Note is
not a Business Day, then payment of the interest payable on such date will be
made on the next succeeding day that is a Business Day (and without any interest
or other payment in respect of any such delay), with the same force and effect
as if made on the date the payment was originally payable. A "Business Day"
shall mean any day other than a Saturday or a Sunday or a day on which banking
institutions in New York City are authorized or required by law or executive
order to remain closed or a day on which the Corporate Trust Office of the
Trustee is closed for business.

         Payment of the principal of and interest due at the Stated Maturity or
earlier redemption of the Series G Notes shall be made upon surrender of the
Series G Notes at the Corporate Trust Office of the Trustee. The principal of
and interest on the Series G Notes shall be paid in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts. Payment of interest (including interest on an
Interest Payment Date) will be made, subject to such surrender where applicable,
at the option of the Company, (i) by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (ii)
by wire transfer or other electronic transfer at such place and to such account
at a banking institution in the United States as may be designated in writing to
the Trustee at least 16 days prior to the date for payment by the Person
entitled thereto.

         REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

         Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                                    SAVANNAH ELECTRIC AND
                                    POWER COMPANY

                                    By:
                                       --------------------------------
                                    Name:
                                         ------------------------------
                                    Title:
                                          -----------------------------

Attest:

           {Seal of SAVANNAH ELECTRIC AND POWER COMPANY appears here}

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                          THE BANK OF NEW YORK,
                                          as Trustee

                                          By:
                                             ---------------------------------
                                                   Authorized Signatory

<PAGE>

                             (Reverse Side of Note)

         This Note is one of a duly authorized issue of Senior Notes of the
Company (the "Notes"), issued and issuable in one or more series under a Senior
Note Indenture, dated as of March 1, 1998, as supplemented (the "Indenture"),
between the Company and The Bank of New York, as Trustee (the "Trustee," which
term includes any successor trustee under the Indenture), to which Indenture and
all indentures incidental thereto reference is hereby made for a statement of
the respective rights, limitation of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Notes issued thereunder and of
the terms upon which said Notes are, and are to be, authenticated and delivered.
This Note is one of the series designated on the face hereof as Series G 5.75%
Senior Notes due December 1, 2044 (the "Series G Notes") which is unlimited in
aggregate principal amount. Capitalized terms used herein for which no
definition is provided herein shall have the meanings set forth in the
Indenture.

         The Series G Notes (i) shall, at any time or, from time to time, on or
after December 9, 2009 upon not less than 30 nor more than 60 days' notice to
the holders thereof, be subject to optional redemption at the option of the
Company, in whole or in part, at a Redemption Price equal to 100% of the
principal amount of the Series G Notes to be redeemed plus accrued and unpaid
interest on the Series G Notes to the Redemption Date and (ii) shall be subject
to mandatory redemption, upon not less than 30 nor more than 60 days' notice, in
whole but not in part, at a Redemption Price equal to 100% of the principal
amount of the Series G Notes to be redeemed plus accrued and unpaid interest to
the Redemption Date upon the occurrence of the Company's failure to comply with
(x) Section 1.02 of the Insurance Agreement, dated as of December 9, 2004 (the
"Insurance Agreement"), by and between the Company and Financial Guaranty
Insurance Company (the "Insurer"), the continuance of such failure for a period
in excess of 10 days after receipt by the Company of written notice thereof from
the Insurer and the receipt by the Trustee of notice thereof, or (y) Section
3.01 or Section 3.02 of the Insurance Agreement, the continuance of such failure
for a period in excess of 30 days after receipt by the Company of written notice
thereof from the Insurer and the receipt by the Trustee of notice thereof (each,
a "Mandatory Redemption Event"). Subject to the notice requirements of the
Indenture, the Company shall redeem the Series G Notes (i) on December 9, 2009
if the Mandatory Redemption Event occurs on or prior to October 10, 2009 or (ii)
if the Mandatory Redemption Event occurs after October 10, 2009, within 60 days
after the occurrence of the Mandatory Redemption Event, but in no event earlier
than December 9, 2009.

         The Series G Notes will not have a sinking fund.

         If an Event of Default with respect to the Notes of this series shall
occur and be continuing, the principal of the Notes of this series may be
declared due and payable in the manner, with the effect and subject to the
conditions provided in the Indenture.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes of each series to be affected
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in principal amount of the Notes at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders of
all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rates, and in the coin or currency, herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency
of the Company for such purpose, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar and duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of this series, of
authorized denominations and of like tenor and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. No service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         The Notes of this series are issuable only in registered form without
coupons in denominations of $25 and any integral multiple thereof. As provided
in the Indenture and subject to certain limitations therein set forth, Notes of
this series are exchangeable for a like aggregate principal amount of Notes of
this series of a different authorized denomination, as requested by the Holder
surrendering the same upon surrender of the Note or Notes to be exchanged at the
office or agency of the Company.

         This Note shall be governed by, and construed in accordance with, the
internal laws of the State of New York.

                             STATEMENT OF INSURANCE

         Financial Guaranty Insurance Company (the "Insurer") has issued a
surety bond containing the following provisions with respect to the Series G
Notes, such surety bond being on file at the principal corporate trust office of
Trustee, as paying agent for the Series G Notes (the "Paying Agent"):

         The Insurer hereby unconditionally and irrevocably agrees to pay for
disbursement to the Holders that portion of the principal of and interest on the
Series G Notes which is then Due for Payment and which the Company shall have
failed to provide. Due for Payment means, with respect to principal, the stated
maturity date thereof, and does not refer to any earlier date on which the
payment of principal of the Series G Notes is due by reason of call for
redemption, acceleration or other advancement of maturity and, with respect to
interest, the stated date for payment of such interest.

         Upon receipt of telephonic or telegraphic notice, subsequently
confirmed in writing, or written notice by registered or certified mail, from a
Holder or the Paying Agent to the Insurer that the required payment of principal
or interest has not been made by the Company to the Paying Agent, the Insurer on
the due date of such payment or within one Business Day (as defined in the
surety bond) after receipt of notice of such nonpayment, whichever is later,
will make a deposit of funds, in an account with U.S. Bank Trust National
Association, or its successor as its agent (the "Fiscal Agent"), sufficient to
make the portion of such payment not paid by the Company. Upon presentation to
the Fiscal Agent of evidence satisfactory to it of the Holder's right to receive
such payment and any appropriate instruments of assignment required to vest all
of such Holder's right to such payment in the Insurer, the Fiscal Agent will
disburse such amount to the Holder.

         As used herein the term "Holder" means the person other than the
Company or the borrower(s) of note proceeds who at the time of nonpayment of a
Series G Note is entitled under the terms of such Series G Note to payment
thereof.

         The surety bond is non-cancellable for any reason.

                      Financial Guaranty Insurance Company

<PAGE>

                                  ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM- as tenants in           UNIF GIFT MIN ACT- _______ Custodian ________
         common                          (Cust)              (Minor)
TEN ENT- as tenants by the
         entireties                          under Uniform Gifts to
JT TEN-  as joint tenants                            Minors Act
         with right of
         survivorship and                    ________________________
         not as tenants                             (State)
         in common

                    Additional abbreviations may also be used
                          though not on the above list.

         FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

(please insert Social Security or other identifying number of assignee)

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF
ASSIGNEE

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing

agent to transfer said Note on the books of the Company, with full power of
substitution in the premises.

       --------------------                --------------------------------

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular without
alteration or enlargement, or any change whatever.

<PAGE>

                                    EXHIBIT B

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                   THE BANK OF NEW YORK,
                                   as Trustee

                                   By:
                                      ------------------------------------
                                            Authorized Signatory

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