Document:

Exhibit 10.38
                              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. Charles Douglas McCrary ("Mr.
McCrary") (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, originally effective and executed on
December 7, 1998.
                              W I T N E S S E T H:
                               - - - - - - - - - -
         WHEREAS, Mr. McCrary is the Executive Vice President of the Company;

         WHEREAS, the Parties entered into a Change in Control Agreement
effective December 7, 1998 (the "Original Agreement") to provide to Mr. McCrary
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 Original Agreement, the
Parties may amend the Original Agreement by written agreement;

         WHEREAS, the Parties wish to enter into this Amended and Restated
Change in Control Agreement pursuant to 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) delete references to the
"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. McCrary'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)      "Board" shall mean the board of directors of the
         Company.

                  (d) "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.

                  (e)      "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.(e)(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.  McCrary  or any  Group of which Mr.
          McCrary 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.(e)(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.
                           McCrary, any Group of which Mr. McCrary 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.(e)(iv),   any
          acquisition  by  Mr.  McCrary,   any  Group  composed  exclusively  of
          employees of the Company,  any Group of which Mr.  McCrary 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.

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

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

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

                         (i)  "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.

                         (j) "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.

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

                         (l)  "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.

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

                         (n) "Good  Reason"  shall mean,  without Mr.  McCrary'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.  McCrary'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.
                  McCrary'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. McCrary'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. McCrary participates or is a
                  party as of the date of the Change in Control or the
                  elimination of Mr. McCrary'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. McCrary's work
                  location to a location more than fifty (50) miles from the
                  office where Mr. McCrary is located at the time of the Change
                  in Control, unless such new work location is within fifty (50)
                  miles from Mr. McCrary's principal place of residence at the
                  time of the Change in Control. The acceptance, if any, by Mr.
                  McCrary 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. McCrary's right to
                  refuse subsequent transfer by the Company to a location which
                  is more than fifty (50) miles from Mr. McCrary'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. McCrary under
                  the Company's retirement, life insurance, medical, health and
                  accident, disability, deferred compensation or savings plans
                  in which Mr. McCrary was participating immediately prior to
                  the Change in Control; or the failure by the Company to
                  provide Mr. McCrary with the number of paid vacation days to
                  which Mr. McCrary 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.  McCrary,  as such plan may be amended from time to
               time.

                  (q) "Group Life Insurance Plan" shall mean the group life
         insurance program covering Mr. McCrary, 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. McCrary 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. McCrary's employment by the Company upon the
         occurrence of any of the following:

                           (i) The willful and continued failure by Mr. McCrary
                  substantially to perform his duties with the Company (other
                  than any such failure resulting from Mr. McCrary's Total
                  Disability or from Mr. McCrary's retirement or any such actual
                  or anticipated failure resulting from termination by Mr.
                  McCrary 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. McCrary 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. McCrary'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.
                    McCrary shall be deemed "willful" unless done, or omitted to
                    be  done,  by Mr.  McCrary  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. McCrary 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. McCrary 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. McCrary 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.
                    McCrary's   employment   with  the  Company  is  terminated;
                    provided,  however,  that solely for  purposes of  Paragraph
                    2.(c) 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. McCrary'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.  McCrary'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.  McCrary  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.  McCrary'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.  McCrary  voluntarily
                    terminates his  employment  with the Company for Good Reason
                    at any time during the two year period following a Change in
                    Control,  Mr.  McCrary  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.  McCrary shall not be
                    eligible to receive  benefits  under this  Agreement  if Mr.
                    McCrary: (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  Southern,   any  Southern
                    Subsidiary   or  any  employer   that  succeeds  to  all  or
                    substantially all of the assets of the Company,  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,  Southern, 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.  McCrary 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. McCrary 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. McCrary under Code Section
                    280G exceeds three (3) times Mr. McCrary'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. McCrary's Base Amount, less
                    all other  "parachute  payments"  (as such  term is  defined
                    under Code Section 280G) received by Mr.  McCrary,  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. McCrary 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.  McCrary  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.
                    McCrary's Years of Service, not to exceed five (5) years. If
                    Mr.  McCrary   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.  McCrary'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.  McCrary'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. McCrary pursuant to Paragraph  2.(c)(i),  as
                    well as the premiums to be paid by Mr. McCrary 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. McCrary 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. McCrary or his  dependents may elect.  In the event that
                    Mr. McCrary 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. McCrary 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. McCrary shall be entitled to receive cash
                    in an amount equal to the Company's and Mr.  McCrary'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.  McCrary  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.
                    McCrary'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. McCrary 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. McCrary 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.  McCrary'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. McCrary 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. McCrary 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.  McCrary's  Termination
                    Date  and  to  the  extent  Mr.   McCrary  is   entitled  to
                    participate  therein,  Mr.  McCrary  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)
                    Performance  Dividend  Plan.  Provided  Mr.  McCrary  is not
                    entitled to benefits  under the  Performance  Dividend  Plan
                    (the  defined  terms  of  which  are  incorporated  in  this
                    Paragraph  2.(d)(iii)  by  reference),  if  the  Performance
                    Dividend Plan is in place through Mr. McCrary's  Termination
                    Date  and  to  the  extent  Mr.   McCrary  is   entitled  to
                    participate  therein,  Mr.  McCrary  shall  be  entitled  to
                    receive  cash  for each  Award  held by Mr.  McCrary  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. (iv) Other Short Term Incentive  Plans. The provisions
                    of this Paragraph 2.(d)(iv) shall apply if and to the extent
                    that Mr.  McCrary is a participant  in any other "short term
                    compensation plan" not otherwise  previously  referred to in
                    this Paragraph 2.(d).  Provided Mr. McCrary 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. McCrary is entitled to participate  therein,  Mr.
                    McCrary  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.  McCrary'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)(iv) 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.  McCrary's  Termination  Date, or (ii)
                    upon Mr. McCrary'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.  McCrary's  death  prior to the  payment of all
                    amounts due under this Agreement, Mr. McCrary'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.  McCrary and the Company  with regard to any amounts due
                    hereunder,  if any material issue in such dispute is finally
                    resolved in Mr. McCrary's favor, the Company shall reimburse
                    Mr. McCrary'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.
                    McCrary  shall be eligible to  participate  in the  Employee
                    Outplacement  Program,  which program shall not be less than
                    six  (6)  months  duration   measured  from  Mr.   McCrary'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.  McCrary 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.
                    McCrary's  favor,  the Company shall reimburse Mr. McCrary's
                    legal fees in the manner provided in Paragraph 2.(g) hereof.
                    3. Transfer of Employment.  In the event that Mr.  McCrary's
                    employment by the Company is terminated  during the two year
                    period following a Change in Control and Mr. McCrary 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.  McCrary 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.  McCrary  hereunder  shall not be reduced or
                    suspended if Mr. McCrary 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.  McCrary'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. McCrary, in the case of the
                    Company,  or to  the  Southern  Board,  in the  case  of Mr.
                    McCrary.  (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. McCrary,  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.
                    McCrary.  All  other  costs  of  arbitration  shall be borne
                    equally by Mr. McCrary 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.  McCrary's favor and Mr. McCrary 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. McCrary 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. McCrary.

               (c) Assignment. Mr. McCrary 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  __________________, 2000.

                                    THE SOUTHERN COMPANY

                           By:      ____________________________________

                                    SOUTHERN COMPANY SERVICES, INC.

                           By:      ____________________________________

                                    MR. MCCRARY

                                    -----------------------------
                                    Charles Douglas McCrary

<PAGE>

                                    Exhibit A

                           CHANGE IN CONTROL AGREEMENT

                               Waiver and Release

         The attached Waiver and Release is to be given to Mr. Charles Douglas
McCrary 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, Charles Douglas McCrary, 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 _____.

                                               Charles Douglas McCrary

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:
         -----------------------------------Exhibit 10.39

                              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"), Georgia
Power Company (the "Company") and Mr. David M. Ratcliffe ("Mr. Ratcliffe")
(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, originally effective and executed on February 17, 1999.

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

         WHEREAS, Mr. Ratcliffe is the President and Chief Executive Officer
of the Company;

         WHEREAS, the Parties entered into a Change in Control Agreement
effective February 17, 1999 (the "Original Agreement") to provide to Mr.
Ratcliffe 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 Original Agreement, the
Parties may amend the Original Agreement by written agreement;

         WHEREAS, the Parties wish to enter into this Amended and Restated
Change in Control Agreement pursuant to 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) delete references to the
"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. Ratcliffe'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)      "Board" shall mean the board of directors of the Company.

         (d) "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.

         (e)      "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.(e)(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. Ratcliffe or any Group
                                  of which Mr. Ratcliffe 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.(e)(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.
                           Ratcliffe, any Group of which Mr. Ratcliffe 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.(e)(iv), any acquisition by Mr. Ratcliffe, any
                  Group composed exclusively of employees of the Company, any
                  Group of which Mr. Ratcliffe 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.

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

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

                  (h)      "Company" shall mean Georgia Power Company, its
          successors and assigns.

                  (i) "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.

                  (j) "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.

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

                  (l) "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.

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

                  (n) "Good Reason" shall mean, without Mr. Ratcliffe'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. Ratcliffe'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.
                  Ratcliffe'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. Ratcliffe'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. Ratcliffe participates or is a
                  party as of the date of the Change in Control or the
                  elimination of Mr. Ratcliffe'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. Ratcliffe's work
                  location to a location more than fifty (50) miles from the
                  office where Mr. Ratcliffe is located at the time of the
                  Change in Control, unless such new work location is within
                  fifty (50) miles from Mr. Ratcliffe's principal place of
                  residence at the time of the Change in Control. The
                  acceptance, if any, by Mr. Ratcliffe 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. Ratcliffe's right to refuse subsequent transfer
                  by the Company to a location which is more than fifty (50)
                  miles from Mr. Ratcliffe'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. Ratcliffe under
                  the Company's retirement, life insurance, medical, health and
                  accident, disability, deferred compensation or savings plans
                  in which Mr. Ratcliffe was participating immediately prior to
                  the Change in Control; or the failure by the Company to
                  provide Mr. Ratcliffe with the number of paid vacation days to
                  which Mr. Ratcliffe 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. Ratcliffe, as such plan may be amended from time to time.

                  (q) "Group Life Insurance Plan" shall mean the group life
         insurance program covering Mr. Ratcliffe, 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. Ratcliffe 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. Ratcliffe's employment by the Company upon the
         occurrence of any of the following:

                           (i) The willful and continued failure by Mr.
                  Ratcliffe substantially to perform his duties with the Company
                  (other than any such failure resulting from Mr. Ratcliffe's
                  Total Disability or from Mr. Ratcliffe's retirement or any
                  such actual or anticipated failure resulting from termination
                  by Mr. Ratcliffe 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. Ratcliffe 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.  Ratcliffe'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. Ratcliffe shall be deemed
         "willful" unless done, or omitted to be done, by Mr. Ratcliffe 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. Ratcliffe 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.
         Ratcliffe 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. Ratcliffe 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.
         Ratcliffe's employment with the Company is terminated; provided,
         however, that solely for purposes of Paragraph 2.(c) 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. Ratcliffe'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. Ratcliffe'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. Ratcliffe 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. Ratcliffe'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.
         Ratcliffe voluntarily terminates his employment with the Company for
         Good Reason at any time during the two year period following a Change
         in Control, Mr. Ratcliffe 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. Ratcliffe shall not be eligible to receive benefits under this
         Agreement if Mr. Ratcliffe:

                           (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
                  Southern, any Southern Subsidiary or any employer that
                  succeeds to all or substantially all of the assets of the
                  Company, 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, Southern, 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. Ratcliffe 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. Ratcliffe 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. Ratcliffe under Code Section 280G exceeds three (3) times Mr.
         Ratcliffe'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. Ratcliffe's Base Amount, less all other
         "parachute payments" (as such term is defined under Code Section 280G)
         received by Mr. Ratcliffe, 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. Ratcliffe 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. Ratcliffe 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. Ratcliffe's Years of
                  Service, not to exceed five (5) years. If Mr. Ratcliffe 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. Ratcliffe'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. Ratcliffe'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. Ratcliffe pursuant to Paragraph 2.(c)(i), as
                           well as the premiums to be paid by Mr. Ratcliffe 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. Ratcliffe 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. Ratcliffe
                           or his dependents may elect. In the event that Mr.
                           Ratcliffe 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.
                           Ratcliffe 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. Ratcliffe shall be entitled to receive cash
                  in an amount equal to the Company's and Mr. Ratcliffe'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.  Ratcliffe  meets the  eligibility
          requirements  of  Paragraph  2.(a)  hereof  he  shall  be  led  to the
          following benefits under the Company's incentive plans:

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

                                    (A) Any of Mr. Ratcliffe'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. Ratcliffe 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. Ratcliffe 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. Ratcliffe'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. Ratcliffe 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. Ratcliffe 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. Ratcliffe's Termination Date and to the extent Mr.
                  Ratcliffe is entitled to participate therein, Mr. Ratcliffe
                  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) Performance Dividend Plan. Provided Mr.
                  Ratcliffe is not entitled to benefits under the Performance
                  Dividend Plan (the defined terms of which are incorporated in
                  this Paragraph 2.(d)(iii) by reference), if the Performance
                  Dividend Plan is in place through Mr. Ratcliffe's Termination
                  Date and to the extent Mr. Ratcliffe is entitled to
                  participate therein, Mr. Ratcliffe shall be entitled to
                  receive cash for each Award held by Mr. Ratcliffe 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.

                           (iv) Other Short Term Incentive Plans. The provisions
                  of this Paragraph 2.(d)(iv) shall apply if and to the extent
                  that Mr. Ratcliffe is a participant in any other "short term
                  compensation plan" not otherwise previously referred to in
                  this Paragraph 2.(d). Provided Mr. Ratcliffe 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. Ratcliffe is entitled to participate therein, Mr.
                  Ratcliffe 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. Ratcliffe'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)(iv) 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. Ratcliffe's Termination
         Date, or (ii) upon Mr. Ratcliffe'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.
         Ratcliffe's death prior to the payment of all amounts due under this
         Agreement, Mr. Ratcliffe'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.
         Ratcliffe and the Company with regard to any amounts due hereunder, if
         any material issue in such dispute is finally resolved in Mr.
         Ratcliffe's favor, the Company shall reimburse Mr. Ratcliffe'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.  Ratcliffe  shall  be
          eligible to participate in the Employee  Outplacement  Program,  which
          program shall not be less than six (6) months  duration  measured from
          Mr. Ratcliffe'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. Ratcliffe 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. Ratcliffe's favor, the Company shall
         reimburse Mr. Ratcliffe's legal fees in the manner provided in
         Paragraph 2.(g) hereof.

         3. Transfer of Employment. In the event that Mr. Ratcliffe's employment
by the Company is terminated during the two year period following a Change in
Control and Mr. Ratcliffe 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.  Ratcliffe  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.  Ratcliffe  hereunder  shall not be  reduced  or
          suspended if Mr. Ratcliffe 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. Ratcliffe'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.  Ratcliffe,  in the case of the Company,
          or to the Southern Board, in the case of Mr. Ratcliffe.

                  (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. Ratcliffe, 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. Ratcliffe.
         All other costs of arbitration shall be borne equally by Mr. Ratcliffe
         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. Ratcliffe's favor and Mr. Ratcliffe 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. Ratcliffe 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. Ratcliffe.

               (c)  Assignment.  Mr.  Ratcliffe  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 __________________, 2000.

                                                     THE SOUTHERN COMPANY

                                            By:      __________________________

                                                     GEORGIA POWER COMPANY

                                            By:      __________________________

                                                     MR. RATCLIFFE

                                                     David M. Ratcliffe

<PAGE>

                                    Exhibit A

                           CHANGE IN CONTROL AGREEMENT

                               Waiver and Release

         The attached Waiver and Release is to be given to Mr. David M.
Ratcliffe 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, David M. Ratcliffe, 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 Georgia Power Company
(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 _____.

                                                      David M. Ratcliffe

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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