Document:

Exhibit 10.3
                              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. Thomas A. Fanning ("Mr. Fanning")
(hereinafter collectively referred to as the "Parties") is effective November
16, 2006. This Agreement amends and restates the Amended and Restated Change in
Control Agreement entered into by Mr. Fanning, Southern and the Company,
effective June 1, 2004.

                                   WITNESSETH:

         WHEREAS, Mr. Fanning is the Executive Vice President and Chief
Financial Officer of the Company;

         WHEREAS, the Company wishes to provide to Mr. Fanning certain severance
benefits under certain circumstances following a change in control (as defined
herein) of Southern or the Company;

         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:

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                            ARTICLE I - DEFINITIONS.

                        For purposes of this Agreement, the following terms
shall have the following meanings:

1.1 "Annual Compensation" shall mean Mr. Fanning's Base Salary plus Target Bonus
under the Company's Short Term Bonus Plan and Long Term Bonus Plan.

1.2 "Base Salary" shall mean Mr. Fanning's highest annual base salary rate
during the twelve (12) month period immediately preceding the date the Change
in Control is  Consummated.

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

1.4 "Benefit Index" shall mean the Hewitt Associates' Benefit Index(r), or if
such index is no longer available, cannot be used, or if pursuant to
Section 1.5 hereof another Benefits Consultant has been chosen by the
Compensation Committee, such other comparable index utilized by the Benefits
Consultant.

1.5 "Benefits Consultant" shall mean Hewitt Associates or such other nationally
recognized employee benefits consulting firm as shall be designated in writing
by the Compensation Committee upon the occurrence of a Preliminary Change in
Control that would result in a Subsidiary Change in Control.

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

1.7 "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.

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1.8        "Change in Control" shall mean,

        (a)   with respect to Southern, the occurrence of any of the following:

                (i)    The Consummation of an acquisition by any Person of
                       Beneficial Ownership of 20% or more of Southern's
                       Voting Securities; provided, however, that for
                       purposes of this Section 1.8(a)(i) the following
                       acquisitions of Southern's Voting Securities shall
                       not constitute a Change in Control:

                       (A) any acquisition directly from Southern;

                       (B) any acquisition by Southern;

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

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

                       (E) any acquisition by an employee of Southern or a
                           Southern Subsidiary, or Group composed exclusively of
                           such employees; or

                       (F) any Business Combination which would not
                           otherwise constitute a Change in Control
                           because of the application of clauses (A),
                           (B) or (C) of Section 1.8(a)(iii);

                (ii)    A change in the composition of the Southern Board
                        whereby individuals who constitute the Incumbent Board
                        cease for any reason to constitute at least a majority
                        of the Southern Board; or

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                (iii)   The Consummation of a Business Combination, unless,
                        following such Business Combination, all of the
                        following three conditions are met:

                        (A)  all  or  substantially  all  of  the  individuals
                     and  entities  who  held Beneficial  Ownership,
                     respectively,   of  Southern's  Voting  Securities
                     immediately prior to such Business  Combination hold
                     Beneficial  Ownership, directly or indirectly,  of 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
                     Business  Combination 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 qualified pension plan,
                     publicly held mutual fund, Group composed exclusively of
                     Employees or employee benefit plan (or related trust) of
                     Southern, any Southern Subsidiary or Surviving Company)
                     holds Beneficial Ownership, directly or indirectly, of
                     20% or more of the combined voting power of the then
                     outstanding Voting Securities of Surviving Company except
                     to the extent that such ownership existed prior to the
                     Business Combination; and

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                        (C)   at least a majority of the members of the board
                     of directors of Surviving Company were members of the
                     Incumbent Board on the date of the Preliminary Change in
                     Control.

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

             (i) The Consummation of an acquisition by any Person of Beneficial
                  Ownership of 50% or more of the combined voting power of the
                  then outstanding Voting Securities of the Company; provided,
                  however, that for purposes of this Section 1.8(b)(i), any
                  acquisition by Mr. Fanning, any other employee of Southern or
                  a Southern Subsidiary, or Group composed entirely of such
                  employees, any qualified pension plan, any publicly held
                  mutual fund or any employee benefit plan (or related trust)
                  sponsored or maintained by Southern or any Southern Subsidiary
                  shall not constitute a Change in Control;

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

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

1.9 "COBRA Coverage" shall mean any continuation coverage to which Mr. Fanning
or his dependents may be entitled pursuant to Code Section 4980B.
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1.10 "Code" shall mean the Internal Revenue Code of 1986, as amended.

1.11 "Common Stock" shall mean the common stock of Southern.

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

1.13 "Compensation Committee" shall mean the Compensation and Management
Succession Committee of the Southern Board.

1.14 "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.

1.15 "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.

1.16 "Economic Equivalent" or "Economic Equivalence" shall have the
meaning set forth in Section 1.23(f) hereof.

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1.17   "Employee Outplacement Program" shall mean the program established by
the Company from time to time for the purpose of assisting employees in finding
employment outside of the Company which provides for the following services:

        (a) self assessment, career decision and goal setting;

        (b) job market research and job sources;

        (c) networking and interviewing skills;

        (d) planning and implementation strategy;

        (e) resume writing, job hunting methods and salary negotiation; and

        (f) office support and job search resources.

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

1.19 "Company Business Combination" shall have the meaning set forth in Section
1.8(b)(ii) hereof.

1.20  "Equity  Based  Bonus  Plan"  shall mean a plan or  arrangement  that
provides for the grant to participants of stock options, restricted stock, stock
appreciation  rights,  phantom stock,  phantom stock appreciation  rights or any
other similar rights the terms of which provide a participant with the potential
to receive the  benefit of any  increase  in value of the  underlying  equity or
notional amount (e.g.,  number of phantom shares) from the date of grant through
a subsequent date.

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

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1.22 "Executive Employee" shall mean those employees of the Company of Grade
Level 10 or above.

1.23 "Good Reason" shall mean,  without Mr.  Fanning's  express written consent,
     after  written  notice  to  the  Company,  and  after  a  thirty  (30)  day
     opportunity  for the Company to cure, the  continuing  occurrence of any of
     the events  described in  Subsections  (a)(i),  (b)(i),  (c)(i),  (d)(i) or
     (d)(ii) of this Section 1.23. In the case of Mr. Fanning claiming  benefits
     under this  Agreement  upon a Subsidiary  Change in Control,  the foregoing
     notice and opportunity to cure will be satisfied if Mr. Fanning provides to
     the Compensation Committee a copy of his written offer of employment by the
     acquiring  company  within  thirty  (30) days of such  offer  along  with a
     written  explanation  describing  how the terms of such offer  satisfy  the
     requirements of Subsections (a)(ii),  (b)(ii),  (c)(ii), (d)(iii) or (e) of
     this Section 1.23. The Compensation Committee shall make a determination of
     whether such written offer of  employment  satisfies  the  requirements  of
     Sections  1.23(a)(ii),  (b)(ii),  (c)(ii),  (d)(iii)  or  (e)  hereof  upon
     consultation  with the Benefits  Consultant and shall notify Mr. Fanning of
     its decision  within thirty (30) days of receipt of Mr.  Fanning's  written
     offer of employment.  Any dispute  regarding the  Compensation  Committee's
     decision shall be resolved in accordance with Article III hereof.

        (a) Inconsistent Duties.

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

           (ii)  Subsidiary Change in Control. In the event of a Subsidiary
                 Change in Control, Good Reason shall exist if Mr. Fanning is
                 offered employment with the acquiring employer with a job

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                 title, duties and status which are materially and
                 detrimentally lower than Mr. Fanning's job title, duties and
                 status in effect at the Company as of the date the offer of
                 employment is received.

        (b) Reduced Compensation.

            (i)   Change in Control. A reduction of five percent (5%) or more by
                  the Company in any of the following amounts of compensation
                  expressed in subparagraphs (A), (B) or (C) hereof, except for
                  a less than ten percent (10%), across-the-board reduction in
                  such compensation amounts similarly affecting ninety-five
                  percent (95%) or more of the Executive Employees eligible for
                  such compensation:

               (A) Mr. Fanning's Base Salary;

               (B) the sum of Mr. Fanning's Base Salary plus Target Bonus
                   under the Company's Short Term Bonus Plan, as in effect
                   on the day immediately preceding the day the
                   Change in Control is Consummated; or

               (C)the sum of Mr. Fanning's Base Salary plus Target Bonus under
                  the Company's Short Term Bonus Plan and Long Term Bonus Plan
                  plus the Target Bonus under the Company's Equity Based Bonus
                  Plan, each of which as in effect on the day immediately
                  preceding the day the Change in Control is Consummated.

            (ii)  Subsidiary Change in Control. In the event of a Subsidiary
                  Change in Control, Good Reason shall exist if Mr. Fanning is
                  offered Base Salary, Target Bonus under the acquiring

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                  company's Short Term Bonus Plan and Long Term Bonus Plan and
                  Target Bonus under the acquiring company's Equity Based Bonus
                  Plan that, in the aggregate, is less than ninety percent (95%)
                  of Mr. Fanning's Base Salary plus Target Bonus under the
                  Company's Short Term Bonus Plan and Long Term Bonus Plan, plus
                  Target Bonus under the Company's Equity Based Bonus Plan, each
                  of which as in effect on the day the offer of employment is
                  received;

       (c)     Relocation.

           (i)  Company.  A change in Mr.  Fanning's  work location to a
     location more than fifty (50) miles from the facility where Mr. Fanning
     was located on the day immediately preceding the day the Change in
     Control is Consummated,  unless such new  work  location  is  within
     fifty  (50)  miles  of Mr.  Fanning's principal place of residence on the
     day  immediately  preceding the day the Change in Control is Consummated.
     The acceptance, if any, by Mr. Fanning of employment  by the  Company at
     a work  location  which is outside the fifty mile radius set forth in
     this Section  1.23(c) shall not be a waiver of Mr. Fanning's right to
     refuse subsequent  transfer by the Company to a location which
     is more than fifty (50) miles from Mr.  Fanning's  principal place of
     residence on the day immediately preceding the day the Change in Control is
     Consummated,  and such  subsequent  nonconsensual  transfer  shall be "Good
     Reason" under this Agreement;

         (ii) Subsidiary Change in Control. In the case of a Subsidiary
     Change in Control, Good Reason shall exist if Mr. Fanning's
     work location under the terms of the offer of employment from
     the acquiring employer is more than fifty (50) miles from Mr.

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      Fanning's work location at the Company as of the date the
      offer of employment by the acquiring employer is received.

        (d)      Benefits and Perquisites.

           (i)    Change in Control - Retirement and Welfare Benefits. The
                  taking of any action by the Company that would directly or
                  indirectly cause a Material Reduction in the Retirement and
                  Welfare Benefits to which Mr. Fanning is entitled under the
                  Company's Retirement and Welfare Benefit plans in which Mr.
                  Fanning was participating on the day immediately preceding the
                  day the Change in Control is Consummated.

          (ii)    Vacation and Paid Time Off. The failure by the Company to
                  provide Mr. Fanning with the number of paid vacation days or,
                  if applicable, paid time off days to which Mr. Fanning is
                  entitled on the basis of years of service with the Company in
                  accordance with the Company's normal vacation policy or the
                  paid time off program (whichever applicable) in effect on the
                  day immediately preceding the day the Change in Control is
                  Consummated (except for across-the-board vacation policy or
                  paid time off program changes or policy or program
                  terminations similarly affecting at least ninety-five percent
                  (95%) of all Executive Employees of the Company).

         (iii)    Subsidiary Change in Control. In the event of a Subsidiary
                  Change in Control, Good Reason shall exist if Mr. Fanning is
                  offered a package of Retirement and Welfare Benefits by the
                  acquiring employer that is not Economically Equivalent, as
                  determined under Sections 1.23(f) and (g) hereof.

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        (e) Adoption of Severance Agreement. In the event of a Subsidiary
    Change in Control, Good Reason shall exist if the offer of
    employment by the acquiring employer does not include an
    agreement to enter into a severance agreement substantially in
    the form of Exhibit B attached hereto.

        (f) Economic Equivalence. For purposes of Section 1.23(d)(iii)
    above, an acquiring employer's package of Retirement and
    Welfare Benefits shall be considered Economically Equivalent
    if, in the written opinion of the Benefits Consultant, the
    anticipated, employer-provided value of what Mr. Fanning is
    expected to derive from the acquiring employer's Retirement
    and Welfare Benefits is equal to or greater than ninety
    percent (90%) of such value Mr. Fanning would have derived
    from the Company's Retirement and Welfare Benefits using the
    Benefit Index.

        (g) Benefit Index Guidelines. For purposes of Section 1.23(f)
    above, the following guidelines shall be followed by the
    Company, the acquiring employer and the Benefits Consultant in
    the performance of the Benefit Index calculations:

                 (i)Upon a Preliminary  Change in Control that if Consummated
     would result in a  Subsidiary Change in Control,  the Company and the
     acquiring employer shall provide to the Benefits  Consultant the
     applicable  benefit plan provisions for the plan year in which the
     Subsidiary  Change in Control is anticipated to occur.  Plan provisions
     for the  immediately  preceding plan year may be provided  if the
     Benefits  Consultant  determines  that there have been no changes
     to such plans that would  materially  affect the  determination  of
     Economic Equivalence.  If the acquiring employer's relevant plan provisions
     have not  previously  been  included in the Benefits  Consultant's  Benefit

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     Index  database,  the  acquiring  employer  shall  provide to the  Benefits
     Consultant such plan  information as the Benefits  Consultant shall request
     in writing as soon as practicable  following such request. The Compensation
     Committees  shall take such action as is reasonably  required to facilitate
     the  transfer  of such  information  from  the  acquiring  employer  to the
     Benefits Consultant.

                (ii) The standard Benefit Index assumptions for the plan year
     from which the plan provisions are taken shall be used.

                (iii)The Company shall provide to the Benefit Consultant actual
     data for its Employees.

                (iv) The determination of whether or not the acquiring
     employer's Retirement and Welfare Benefits are Economically Equivalent to
     the Retirement and Welfare Benefits provided to Mr. Fanning by the Company
     shall be determined on an aggregate basis. All assessments shall consider
     all benefits in total and no individual-by-individual, plan-by-plan
     determination of Economic Equivalence shall be made.

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

1.25 "Group Health Plan" shall mean the group health plan covering Mr. Fanning,
as such plan may be amended from time to time.

1.26 "Group Life Insurance Plan"shall mean the group life insurance plan
covering Mr. Fanning, as such plan may be amended from time to time.

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1.27 "Incumbent Board" shall mean those individuals who constitute the Southern
Board as of February 23, 2006, 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 February 23, 2006
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.

1.28 "Long Term Bonus Plan" shall mean any bonus type plan or
arrangement designed to provide incentive based compensation to participants
upon the achievement of objective or subjective goals that measure performance
over a period of more than twelve months.

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

1.30 "Material Reduction" shall mean (i) any change in a retirement plan or
arrangement that has the effect of reducing the present value of the projected
benefits to be provided to Mr. Fanning by five percent (5%) or more, (ii) any
five percent (5%) or more reduction in medical, health and accident and
disability benefits as a percentage of premiums or premium equivalents in
accordance with the Company's prior practice as measured over a period of the
three previous plan years from the date the Change in Control is Consummated, or
(iii) any five percent (5%) or more reduction in employer matching funds as a

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percentage of employee contributions in accordance with the Company's prior
practice measured over a period of the previous three plan years from the date
the Change in Control is Consummated.

1.31 "Omnibus Plan" shall mean the Southern Company Omnibus Incentive
Compensation Plan, and the Design and Administrative Specifications duly adopted
thereunder, as in effect on the date a Change in Control is Consummated.

1.32 "Pension Plan" shall mean The Southern Company Pension Plan or any
successor thereto, as in effect on the date a Change in Control is Consummated.

1.33 "Performance Dividend Program" or "PDP" shall mean the Performance Dividend
Program under the Omnibus Plan or any replacement thereto, as in effect on the
date a Change in Control is Consummated.

1.34 "Performance Pay Program" or "PPP" shall mean the Performance Pay Program
under the Omnibus Plan or any replacement thereto, as in effect on the date a
Change in Control is Consummated.

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

1.36 "Preliminary Change in Control" shall mean the occurrence of any of the
following as administratively determined by the Southern Committee.

   (a)    Southern or the Company has entered into a written agreement, such as,
          but not limited to, a letter of intent, which, if Consummated, would
          result in a Change in Control;

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   (b)    Southern, the Company or any Person publicly announces an intention to
          take or to consider taking actions which, if Consummated, would result
          in a Change of Control under circumstances where the Consummation of
          the announced action or intended action is legally and financially
          possible;

   (c)    Any Person achieves the Beneficial Ownership of fifteen percent (15%)
          or more of the Common Stock; or

   (d)    The Southern Board or the Board of Directors has declared that a
          Preliminary Change of Control has occurred.

1.37 "Retirement and Welfare  Benefits" shall mean benefits provided by the
following types of plans and arrangements:  pension plans,  defined contribution
plans (matched savings, profit sharing, money purchase,  ESOP, and similar plans
and arrangements),  plans providing for death benefits while employed or retired
(life insurance,  survivor income,  and similar plans and  arrangements),  plans
providing for short-term disability benefits (including accident and sick time),
plans providing for long-term disability benefits,  plans providing  health-care
benefits  (including  reimbursements  during  active  employment  or  retirement
related to expenses for medical,  vision, hearing, dental, and similar plans and
arrangements).

1.38 "Separation Date" shall mean the date on which Mr. Fanning's employment
with the Company is terminated; provided, however, that solely for purposes of
Section 2.2(c) hereof, if, upon termination of employment with the Company, Mr.
Fanning is deemed to have retired pursuant to the provisions of Section 2.3
hereof, Mr. Fanning's Separation Date shall be the effective date of his
retirement pursuant to the terms of the Pension Plan.

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1.39 "Short Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure performance over a
period of twelve months or less.

1.40 "Southern" shall mean The Southern Company, its successors and assigns.

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

1.42 "Southern Committee" shall mean the committee comprised of the Chairman of
the Southern Board, the Chief Financial Officer of Southern and the General
Counsel of Southern.

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

1.44 "Subsidiary Change in Control" shall have the meaning set forth in Section
1.8(b)(iii) hereof.

1.45 "Target Bonus" shall mean the amount of incentive compensation
expressed as either a percent of salary or pay, an expected dollar
amount, the number of awards granted or such other quantifiable measure to
determine the amount to be paid or awards granted under the terms of the
respective Short Term Bonus Plan, Long Term Bonus Plan or Equity Based Bonus
Plan, as used by the Company or respective acquiring employer to measure the
market competitiveness of its employee compensation programs.

1.46 "Termination for Cause" or "Cause" shall mean Mr. Fanning's termination
of employment with the Company upon the occurrence of any of the following:

    (a)      The willful and continued failure by Mr. Fanning to
             substantially perform his duties with the Company (other than
             any such failure resulting from Mr. Fanning's Total Disability
             or from Mr. Fanning's retirement or any such actual or

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             anticipated failure resulting from termination by Mr. Fanning
             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 Mr. Fanning has not substantially
             performed his duties; or

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

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

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

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

        (iv)      violation of 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;

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        (v)       assault or other act of violence by Mr. Fanning against any
                  person during the course of employment; or (vi) Mr. Fanning's
                  indictment for any felony or any misdemeanor involving moral
                  turpitude.

                  No act or failure to act by Mr. Fanning shall be deemed
         "willful" unless done, or omitted to be done, by Mr. Fanning 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. Fanning shall not be
          deemed to have been terminated for Cause unless and until there shall
          have been delivered to him a copy of a resolution duly adopted by the
          affirmative vote of the majority of the Southern Board at a meeting
          called and held for such purpose (after reasonable notice to Mr.
          Fanning 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. Fanning was guilty of conduct set forth in
          Section 1.46(a) or (b) hereof and specifying the particulars thereof
          in detail.

1.47 "Total Disability" shall mean total disability under the terms of the
Pension Plan.

1.48 "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.

1.49 "Waiver and Release" shall mean the Waiver and Release substantially in
the form of Exhibit A attached hereto.

1.50 "Year of Service" shall mean an Employee's  Months of Service  divided
by twelve (12) rounded to the nearest  whole year,  rounding up if the remaining
number of months is seven (7) or  greater  and  rounding  down if the  remaining
number of  months is less than  seven  (7).  If an  Employee  has a break in his

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service with his Employing Company, he will receive credit under this Plan for
the service  prior to the break in service only if the break in service was less
than five years and his  service  prior to the break  exceeds  the length of the
break in service.

                        ARTICLE II - SEVERANCE BENEFITS

2.1      Eligibility.

      (a)     Except as otherwise provided herein, if Mr. Fanning's
              employment is involuntarily terminated by the Company at any
              time during the two year period following a Change in Control
              of Southern or the Company for reasons other than Cause or if
              Mr. Fanning voluntarily terminates his employment with the
              Company for Good Reason at any time during the two year period
              following a Change in Control of Southern or the Company, he
              shall be entitled to receive the benefits described in Section
              2.2 hereof, subject to the terms and conditions described in
              this Article II.

      (b)     Limits on Eligibility. Notwithstanding anything to the
              contrary herein, Mr. Fanning shall not be eligible to receive
              benefits under this Plan if Mr. Fanning :

        (i)       is not actively at work on his  Separation  Date,  unless Mr.
                  Fanning is capable of returning to work within twelve (12)
                  weeks of the beginning of any leave of absence from work;

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

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

                                       20

<PAGE>

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

        (v)       accepts the transfer of his employment to any employer (or its
                  affiliate) that acquires all or substantially all of the
                  assets of a Southern Subsidiary or the Company and becomes an
                  employee of any such employer (or its affiliate) following
                  such acquisition (provided, however, that if Mr. Fanning would
                  otherwise have been entitled to severance benefits under this
                  Agreement but for this Section 2.1(b)(v), Mr. Fanning shall be
                  eligible for benefits under this Agreement except for those
                  outplacement, severance and welfare benefits described in
                  Sections 2.2(a), (b) and (c) hereof);

        (vi)      is involuntarily separated from service with the Company after
                  refusing an offer of employment by Southern or a Southern
                  Subsidiary, under circumstances where the terms of such offer
                  would not have amounted to Good Reason for voluntary
                  termination of employment from the Company by comparing each
                  item of compensation and benefits of such offer of employment
                  as set forth in Section 1.23(a)(i), (b)(i), (c)(i), (d)(i) and
                  (d)(ii) above, with such items of compensation and benefits to
                  which he is entitled at the Company as of the day immediately
                  preceding the day of such offer of employment;

        (vii)     refuses an offer of employment by an acquiring employer in a
                  Subsidiary Change in Control under circumstances where such
                  offer does not provide Good Reason under the requirements of
                  Section 1.23(a)(ii), (b)(ii), (c)(ii), (d)(iii) or (e) hereof.

                                       21
<PAGE>

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

2.2      Severance  Benefits.  Upon the Company's receipt of an effective
Waiver and Release,  Mr. Fanning shall be entitled to receive
the following severance benefits:

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

        (b)  Severance  Amount.  Mr.  Fanning  shall be paid in cash 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.  Fanning 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

                                       22
<PAGE>

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.  Fanning  under  Code
Section 280G exceeds three (3) times Mr.  Fanning'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.  Fanning's  Base
Amount, less all other "parachute  payments" (as such term is defined under
Code Section 280G)  received by Mr.  Fanning,  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 Section 2.2(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 a
         nationally recognized firm specializing in federal income taxes as
         selected by the Compensation Committee, and such calculations or
         determinations shall be binding upon Mr. Fanning, Southern and the
         Company.

        (c)       Welfare Benefit.

          (i)  Except as provided in Section 2.3 hereof,  Mr. Fanning shall be
     eligible to participate  in the  Company's  Group  Health  Plan for a
     period of six (6) months for each of Mr.  Fanning's Years of Service,
     not to exceed a period of five (5) years,  beginning on the first day of
     the first month following

                                       23

<PAGE>

     Mr. Fanning's Separation Date unless otherwise specifically provided under
     such  plan,  upon  Mr.  Fanning's  payment  of both the  Company's  and Mr.
     Fanning's  premium under such plan.  Mr.  Fanning shall also be entitled to
     elect  coverage  under the Group  Health  Plan for his  dependents  who are
     participating  in the Group Health Plan on Mr.  Fanning's  Separation  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.  Fanning's  extended  medical  coverage under
     this  Section  2.2(c) to the extent such  dependents  remain  eligible  for
     dependent coverage under the terms of the Group Health Plan.

           (ii)  The extended medical coverage afforded to Mr. Fanning pursuant
     to this Section 2.2(c) as well as the premiums to be paid by Mr. Fanning 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. Fanning in connection with this extended coverage
     shall be due on the first day of each month; provided, however, that
     if Mr. Fanning fails to pay his premium within thirty (30) days of its
     due date, his extended coverage shall be terminated.

      (iii)  Any Group Health Plan coverage provided under this Section 2.2(c)
     shall be a part of and not in addition to any COBRA Coverage which Mr.
     Fanning or his dependent may elect. In the event that Mr. Fanning or
     his dependent becomes eligible to be covered, by virtue of
     re-employment or otherwise, by any employer-sponsored group health

                                       24

<PAGE>

     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. Fanning or his dependent by virtue of the
     provisions of this Article II shall terminate, except as may otherwise
     be required by law, and shall not be renewed. It shall be the duty of
     Mr. Fanning to inform the Company of his eligibility to participate in
     any such health plan.

       (iv) Except as otherwise provided in Section 2.3 hereof, regardless of
     whether Mr. Fanning elects the extended coverage described in Section
     2.2(c) hereof, the Company shall pay to Mr. Fanning a cash amount
     equal to the Company's and Mr. Fanning's cost of premiums for three
     (3) years of coverage under the Group Health Plan and Group Life
     Insurance Plan, as such Plans were in effect as of the date of the
     Change in Control.

     (d)  Stock Option Vesting. The provisions of this Section 2.2(d) shall
          apply to any equity based awards under the Omnibus Plan, the defined
          terms of which are incorporated in this Section 2.2(d) by reference.

      (i) Any of Mr. Fanning's Options and Stock Appreciation Rights outstanding
          as of the Separation Date which are not then exercisable and vested,
          shall become fully exercisable and vested; provided, that in the case
          of a Stock Appreciation Right, if Mr. Fanning 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. Fanning 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

                                       25
<PAGE>

          of the first date that such activity would no longer result in
          liability under Section 16(b) of the Exchange Act.

     (ii) The restrictions and deferral limitations applicable to any of Mr.
          Fanning's Restricted Stock and Restricted Stock Units as of the
          Separation Date shall lapse, and such Restricted Stock and Restricted
          Stock Units shall become free of all restrictions and limitations and
          become fully vested and transferable.

 (e)      Performance Pay Program. The provisions of this Section 2.2(e) shall
          apply to the Performance Pay Program under the Omnibus Plan, the
          defined terms of which are incorporated in this Section 2.2(e) by
          reference. Provided Mr. Fanning is not entitled to a Cash-Based Award
          under the PPP, if the PPP is in place as of Mr. Fanning's Separation
          Date and to the extent Mr. Fanning is entitled to participate therein,
          Mr. Fanning shall be entitled to receive cash in an amount equal to a
          prorated payout of his Cash-Based Award under the PPP for the
          performance period in which the Separation Date shall have occurred,
          at target performance under the PPP and prorated by the number of
          months which have passed since the beginning of the performance period
          until the Separation Date.

(f)  Performance  Dividend Program.  The provisions of this Section 2.2(f) shall
     apply to the Performance Dividend Program, the defined terms of which are
     incorporated in this Section 2.2(f) by reference. Provided Mr. Fanning is
     not entitled to a Cash-Based  Award  under  the  PDP,  if the  PDP is in
     place  through  Mr. Fanning's  Separation  Date and to the extent
     Mr. Fanning is  entitled  to participate therein, Mr. Fanning shall be
     entitled to receive cash for each

                                       26

<PAGE>

     such Cash-Based  Award under the PDP held as of such date based on a payout
     percentage  of the greater of 50% or actual  performance  under the PDP for
     the  performance  period in which the Separation  Date shall have occurred,
     and the sum of the quarterly  dividends declared on the Common Stock in the
     performance  year of and prior to the Separation Date. For purposes of this
     Section  2.2(f),  payout of each  Cash-Based  Award  under the PDP shall be
     based upon the  performance  measurement  period that would  otherwise have
     ended on December 31st of the year in which Mr.  Fanning's  Separation Date
     occurs,  all other  remaining  PPP  performance  measurement  periods shall
     terminate  with respect to Mr.  Fanning and no payment to Mr. Fanning shall
     be made with respect thereto.

(g)  Other Short Term Incentives Under the Omnibus Plan. The provisions of
     this Section 2.2(g) shall apply to Performance Unit or Performance
     Share awards under the Omnibus Plan. Provided Mr. Fanning is not
     otherwise entitled to a Performance Unit/Share award under the Omnibus
     Plan, Mr. Fanning shall be entitled to receive cash in an amount equal
     to a prorated payout of the value of his Performance Units and/or
     Performance Shares for the performance period in which the Separation
     Date shall have occurred, at target performance and prorated by the
     number of months which have passed since the beginning of the
     performance period until the Separation Date.

(h)  Other  Short-Term  Incentive  Plans.  The provisions of this Section 2.2(h)
     shall apply to Mr.Fanning to the  extent that he,   as of the date of the
     Change in Control, is a participant in any other "short term  incentive
     compensation  plan" not otherwise  previously referred to in this
     Section 2.2. Provided Mr. Fanning is not  otherwise  entitled  to a plan
     payout  under any change in control

                                       27
<PAGE>

     provisions of such plans, if the "short term incentive  compensation  plan"
     is in place  through Mr.  Fanning's  Separation  Date and to the extent Mr.
     Fanning is entitled to participate  therein,  Mr. Fanning shall be entitled
     to receive cash in an amount equal to his award under the Company's  "short
     term  incentive  compensation  plan" for the annual  performance  period in
     which the Separation  Date shall have  occurred,  at Mr.  Fanning's  target
     performance  level and  prorated by the number of months  which have passed
     since the beginning of the annual  performance  period until the Separation
     Date. For purposes of this Section  2.2(h),  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 to  participants  based  upon  articulated
     performance  criteria,  and which have been identified by the  Compensation
     Committee and listed on Exhibit B hereto, which may be amended from time to
     time to reflect plan additions, terminations and amendments.

(i)  Pro rata Calculation. For purposes of calculating any pro rata
     Cash-Based Awards under Section 2.2(e), (f), (g) and (h) hereof, a
     month shall not be considered if the determining event occurs on or
     before the 14th day of the month, and a month shall be considered if
     the determining event occurs on or after the 15th day of the month.
(j)  No Duplicate Benefits. Notwithstanding anything in this Section 2.2 to
     the contrary, in the event that Mr. Fanning has received or is
     entitled to receive a Cash-Based Award under the PPP or the PDP as
     determined under the provisions of the Southern Company Change in
     Control Benefits Protection Plan (the "BPP") for the Performance
     Period which includes Mr. Fanning's Separation Date, then the amount

                                  28

<PAGE>

     of any such Cash-Based Award under this Plan shall be reduced
     dollar-for-dollar by any such amount received or to be received under
     the BPP.

2.3 Coordination with Retiree Medical and Life Insurance Coverage.
Notwithstanding anything to the contrary above, if Mr. Fanning is otherwise
eligible to retire pursuant to the terms of the Pension Plan, he shall be deemed
to have retired for purposes of all employee benefit plans sponsored by the
Company of which Mr. Fanning is a participant. If Mr. Fanning is deemed to have
retired in accordance with the preceding sentence, he shall not be eligible to
receive the benefits described in Section 2.2(c) hereof if, upon his Separation
Date, Mr. Fanning becomes eligible to receive the retiree medical and life
insurance coverage provided to certain retirees pursuant to the terms of the
Pension Plan, the Group Health Plan and the Group Life Insurance Plan.

2.4 Payment of Benefits.

  (a)     Except as otherwise provided in Section 2.4(b) hereof, the total
          amount payable under this Article II shall be paid to Mr. Fanning in
          one (1) lump sum payment within two (2) payroll periods of the later
          of the following to occur: (a) Mr. Fanning's Separation Date, or (b)
          the tender to the Company by Mr. Fanning of an effective Waiver and
          Release in the form of Exhibit A attached hereto and the expiration of
          any applicable revocation period for such waiver. In the event of a
          dispute with respect to liability or amount of any benefit due
          hereunder, an effective Waiver and Release shall be tendered at the
          time of final resolution of any such dispute when payment is tendered
          by the Company.
  (b)     Notwithstanding anything to the contrary in Section 2.4(a) above, if
          the Compensation Committee determines that it is necessary to delay
          any payment under this Article II in order to avoid any tax liability
          pursuant to Code Section 409A(a)(1), such payment shall be delayed for

                                       29
<PAGE>

          the period set forth in Section 409A(a)(2)(B)(i) and such delayed
          payment shall bear a reasonable rate of interest as determined by the
          Compensation Committee.

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

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

2.7  No  Mitigation.  Mr. Fanning shall have no duty or obligation to seek other
employment  following his Separation Date and, except as otherwise provided
in Subsection  2.1(b) hereof,  the amounts due Mr. Fanning  hereunder shall
not be reduced or suspended if he accepts such subsequent employment.

2.8 Non-qualified Retirement and Deferred Compensation Plans. Subsequent to a
Change in Control, any claims by Mr. Fanning for benefits under any of the
Company's non-qualified retirement or deferred compensation plans shall be
resolved through binding arbitration in accordance with the procedures and
provisions set forth in Article III hereof and if any material issue in such
dispute is finally resolved in Mr. Fanning's favor, the Company shall reimburse
Mr. Fanning's legal fees in the manner provided in Section 2.6 hereof.

                           ARTICLE III - ARBITRATION

                                       30

3.1 General. 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 Article III are not intended to apply to any other disputes, claims or
controversies arising out of or relating to Mr. Fanning's employment by the
Company or the termination thereof.

3.2 Demand for Arbitration. Arbitration shall be initiated by serving a written
notice of demand for arbitration to Mr. Fanning, in the case of the Company, or
to the Compensation Committee, in the case of Mr. Fanning.

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

3.4 Appointment of Arbitrators. Arbitrators shall be appointed within fifteen
(15) business days following service of the demand for arbitration. The number
of arbitrators shall be three. One arbitrator shall be appointed by Mr. Fanning,
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.

3.5 Costs. The arbitration filing fee shall be paid by Mr. Fanning. All other
costs of arbitration shall be borne equally by Mr. Fanning and the Company,
provided, however, that the Company

                                       31

<PAGE>

shall reimburse such fees and costs in the event any material issue in such
dispute is finally resolved in Mr. Fanning's favor and Mr. Fanning is reimbursed
legal fees under Section 2.6 hereof.

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

                      ARTICLE IV - TRANSFER OF EMPLOYMENT

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

                           ARTICLE V - MISCELLANEOUS

5.1 Funding of Benefits. Unless the Board of Directors in its discretion
determines otherwise, the amounts payable to Mr. Fanning under the this
Agreement shall not be funded in any manner and shall be paid by the Company out

                                       32
<PAGE>

of its general assets, which assets are subject to the claims of the Company's
creditors.

5.2 Withholding. There shall be deducted from the payment of any amount 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. Fanning.

5.3 Assignment. Neither Mr. Fanning nor his beneficiaries shall have any rights
to sell, assign, transfer, encumber, or otherwise convey the right to receive
the payment of any amount 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.

5.4  Interpretation.   This  Agreement  is  intended  to  comply  with  the
provisions  of Code  Section  409A  and  the  Treasury  Regulations  promulgated
thereunder in order to avoid any additional tax under Section 409A(a)(1). In the
event it is necessary to interpret the provisions of this Agreement for purposes
of its  operation,  such  interpretation  shall,  to  the  extent  possible,  be
consistent with such intent.

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

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement
this 16 day of November 30, 2006.

                                        THE SOUTHERN COMPANY

                               By:      /s/  David M. Ratcliffe

                                        SOUTHERN COMPANY SERVICES, INC.

                               By:     /s/ Robert A. Bell

                                         MR. FANNING

                                       /s/  Thomas A. Fanning
                                           Thomas A. Fanning

<PAGE>
                                 Exhibit A
                           CHANGE IN CONTROL AGREEMENT
                               Waiver and Release

         The attached Waiver and Release is to be given to Mr. Thomas A. Fanning
upon the occurrence of an event that triggers eligibility for severance benefits
under the Change in Control Agreement, as described in Section 2.2 of such
Agreement.

<PAGE>

                           CHANGE IN CONTROL AGREEMENT
                               Waiver and Release

         I, Thomas A. Fanning, understand that I am entitled to receive the
severance benefits described in Article II 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 receiving the severance and welfare benefits under
Article II of the Agreement, I hereby voluntarily and irrevocably waive,
release, dismiss with prejudice, and withdraw all claims, complaints, suits or
demands of any kind whatsoever (whether known or unknown) which I ever had, may
have, or now have against The Southern Company, Southern Company Services, Inc.,
Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi
Power Company, Savannah Electric and Power Company, Southern Communications
Services, Inc. d/b/a Southern LINC, Southern Company Energy Solutions, L.L.C.,
Southern Nuclear Operating Company, Inc., Southern Telecom, Inc., Southern
Company Management Development, Inc., and other current or former subsidiaries
or affiliates of The Southern Company and their past, present and future
officers, directors, employees, agents, insurers and attorneys (collectively,
the "Releasees"), arising from or relating to (directly or indirectly) my
employment or the termination of my employment or other events occurred as of
the date of execution of this Agreement, including but not limited to:

                  (a) claims for violations of Title VII of the Civil Rights Act
         of 1964, the Age Discrimination in Employment Act, the Fair Labor
         Standards Act, the Civil Rights Act of 1991, the Americans With
         Disabilities Act, the Equal Pay Act, the Family and Medical Leave Act,
         42 U.S.C. ss. 1981, the National Labor Relations Act, the Labor
         Management Relations Act, Executive Order 11246, Executive Order 11141,
         the Rehabilitation Act of 1973, the Sarbanes-Oxley Act of 2002 or the
         Employee Retirement Income Security Act;

                  (b) claims for violations of any other federal or state
         statute or regulation or local ordinance;

                  (c) claims for lost or unpaid wages, compensation, or
         benefits, defamation, intentional or negligent infliction of emotional
         distress, assault, battery, wrongful or constructive discharge,
         negligent hiring, retention or supervision, fraud, misrepresentation,
         conversion, tortious interference, breach of contract, or breach of
         fiduciary duty;
<PAGE>

                  (d) claims to benefits under any bonus, severance, workforce
         reduction, early retirement, outplacement, or any other similar type
         plan sponsored by the Company (except for those plans listed below); or

                  (e) any other claims under state law arising in tort or
         contract.

         In signing this Agreement, I am not releasing any claims that may arise
under the terms of this Agreement or which may arise out of events occurring
after the date I execute this Agreement.

         I am also not releasing claims to benefits that I am already entitled
to receive under The Southern Company Pension Plan, The Southern Company
Employee Stock Ownership Plan, The Southern Company Employee Savings Plan, The
Southern Company Omnibus Incentive Compensation Plan, The Southern Company
Change in Control Benefits Protection Plan or under any workers' compensation
laws. 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.

         Nothing in this Agreement shall prohibit me from engaging in protected
activities under applicable law (including protected activities described in
Section 211 of the Energy Reorganization Act) or from communicating, either
voluntarily or otherwise, with any governmental agency concerning any potential
violation of the law.

         I understand and agree for a period of two (2) years after the date I
execute this Agreement, I will regard and treat as strictly confidential all
valuable, non-public, competitively sensitive data and information relating to
the Releasees' business that is not generally known by or readily available to
Releasees' competitors and I will not for any reason, either directly or
indirectly, use, sell, lend, lease, distribute, license, transfer, assign, show,
disclose, disseminate, reproduce, copy, or otherwise communicate any such
information to any third party for my own benefit or for any purpose, other than
in accordance with the express, written instructions of the Company or
Releasees.

         I further understand and agree that I will regard and treat as strictly
confidential all trade secrets of Releasees for as long as such items remain
trade secrets under applicable law and I will not for any reason, either
directly or indirectly, use, sell, lend, lease, distribute, license, transfer,
assign, show, disclose, disseminate, reproduce, copy, or otherwise communicate
any such trade secrets to any third party for my own benefit or for any purpose,
other than in accordance with the express, written instructions of the Company
or Releasees.

         I further agree to keep confidential and not disclose the terms of this
Agreement, including, but not limited to, the benefits under the Agreement,
except to my spouse, attorneys or financial advisors (who must be informed of
and agree to be bound by the confidentiality provisions contained in this
Agreement before I disclose any information to them about this Agreement), or
where such disclosure is required by law.

<PAGE>

         I agree to return to the Company prior to my last day of employment all
property of the Company, including but not limited to data, lists, information,
memoranda, documents, identification cards, credit cards, parking cards, keys,
computers, fax machines, beepers, phones, and files (including copies thereof).

         I understand and agree that I will not seek re-employment as an
employee, leased employee or independent contractor with the Company or any
Southern Company subsidiary or affiliate during the twenty-four (24) month
period beginning immediately following my execution of this Agreement.

         I have carefully read this agreement and I fully understand all of the
provisions of this Waiver.

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

         I have had the  opportunity  to review and consider this Waiver for a
period of at least  twenty-one  (21) days before signing it.

         I understand that I may revoke this Waiver at any time during the seven
(7) calendar day period after I sign this Waiver. In order to revoke this
Waiver, I must deliver written notification of such revocation to the
Compensation Committee. 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. Revocation of this
Waiver will not alter or change the termination of my employment by the Company.

         In signing this Waiver, I am not relying on any representation or
statement (written or oral) not specifically set forth in this Waiver, the
Agreement or by the company or any of its representatives with regard to the
subject matter, basis, or effect of this Waiver or otherwise.

         I was not coerced, threatened, or otherwise forced to sign this Waiver.
I am voluntarily signing and delivering this Waiver of my own free will.

<PAGE>

I understand that by signing this Waiver I am giving up rights I may have. I
understand I do not have to sign this Waiver.

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

                                                     ---------------------------
                                                     Thomas A. Fanning

Sworn to and subscribed to me this

___day of _________, ____

--------------------------
Notary Public

My Commission Expires:

---------------------------
(Notary Seal)

         Acknowledged and Accepted by the Company.

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

<PAGE>

                                    EXHIBIT B

                               SEVERANCE AGREEMENT

     THIS SEVERANCE AGREEMENT ("Agreement") made and entered into by and between
Acquiring   Company   ("Company")   and   Mr.   ________________   ("Executive")
(hereinafter    collectively   referred   to   as   the   "Parties")   effective
______________, 200__.
                                   WITNESSETH:

     WHEREAS,  the  Company  wishes to provide to  Executive  certain  severance
benefits under certain circumstances;

     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:

                            ARTICLE I - DEFINITIONS

1.1 "Annual Compensation" shall Executive's Base Salary plus Target Bonus under
the Company's Short Term Bonus Plan.

1.2 "Base Salary" shall mean Executive's
annual base salary rate during the twelve (12) month period immediately
preceding his Separation Date plus target bonus.

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

1.4 "COBRA Coverage" shall mean any continuation coverage to which
Executive or his dependents may be entitled pursuant to Code Section 4980B.

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

1.6 "Company" shall mean Acquiring Company, its successors and assigns.

1.7 "Employee Outplacement Program" shall mean the program established by the
Company from time to time for the purpose of assisting employees find employment
outside of the Company which provides for the following services:

        (a) self assessment, career decision and goal setting;

        (b) job market research and job sources;

        (c) networking and interviewing skills;

        (d) planning and implementation strategy;

        (e) resume writing, job hunting methods and salary negotiation; and

        (f) office support and job search resources.

1.8 "Employment Date" shall mean the date that Executive is hired by the Company
as a full time employee.

1.9 "Equity Based Bonus Plan" shall mean a plan or
arrangement that provides for the grant to participants of stock options,
restricted stock, stock appreciation rights, phantom stock, phantom stock

<PAGE>

appreciation rights or any other similar rights the terms of which provide a
participant with the potential to receive the benefit of any increase in value
of the underlying equity or notional amount (e.g., number of phantom shares)
from the date of grant through a subsequent date.

1.10 "Good Reason" shall mean, without Executive's express written consent,
after written notice to the Board of Directors, and after a thirty (30) day
opportunity for the Board of Directors to cure, the continuing occurrence of any
of the events described in Subsections (a), (b), (c) or (d) of this Section
1.10.

        (a) Inconsistent Duties. A meaningful and detrimental alteration in
Executive's position or in the nature or status of his responsibilities from
those in effect on the Employment Date.

        (b)  Reduced  Compensation.  A  reduction  of five  percent  (5%) or
more by the Company  in  any  of  the  following   amounts  of  compensation
expressed  in subparagraphs  (i),  (ii) or (iii)  hereof,  except for a less
than ten  percent (10%),   across-the-board  reduction  in  such  compensation
amounts  similarly affecting  ninety-five  percent  (95%) or more of all
employees  of the Company eligible for such compensation:

           (i) Executive's Base Salary;

          (ii) the sum of Executive's Base Salary plus Target Bonus under the
               Company's Short Term Bonus Plan, as in effect on the
               Employment Date; or

         (iii) the sum of Executive's Base Salary plus Target Bonus under the
               Short Term Bonus Plan and Long Term Bonus Plan plus the Target
               Award under the Equity Based Bonus Plan, each of which as in
               effect on the Employment Date.

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

        (d)  Benefits  and Perquisites.

         (i)      Change in Control - Retirement and Welfare Benefits. The
                  taking of any action by the Company that would directly or
                  indirectly cause a Material Reduction in the Retirement and
                  Welfare Benefits to which Executive is entitled under the
                  Company's Retirement and Welfare Benefit plans in which
                  Executive was participating on his Employment Date.

        (ii)      Vacation and Paid Time Off. The failure by the Company to
                  provide Executive with the number of paid vacation days or, if
                  applicable, paid time off days to which Executive is entitled
                  on the basis of years of service with a Southern Entity and
                  the Company in accordance with the Company's normal vacation
                  policy or the paid time off program (whichever applicable) in
                  effect on the Employment Date (except for across-the-board
                  vacation policy or paid time off program changes or policy or

                                       2
<PAGE>

                  program terminations similarly affecting at least ninety-five
                  percent (95%) of all employees of the Company).

1.11 "Group Health Agreement" shall mean the group health plan covering
Executive, as such plan may be amended from time to time.

1.12 "Group Life Insurance Agreement" shall mean the group life insurance
plan covering Executive, as such plan may be amended from time to time.

1.13 "Long Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure performance over a
period of more than twelve months.

1.14 "Material Reduction" shall mean (i) any change in a retirement plan or
arrangement that has the effect of reducing the present value of the projected
benefits to be provided to Executive by five percent (5%) or more, (ii) any five
percent (5%) or more reduction in medical, health and accident and disability
benefits as a percentage of premiums or premium equivalents in accordance with
the Company's prior practice as measured over a period of the three previous
plan years from the Employment Date, or (iii) any five percent (5%) or more
reduction in employer matching funds as a percentage of employee contributions
in accordance with the Company's prior practice measured over a period of the
previous three plan years from the Employment Date.

1.15 "Month of Service"shall mean any calendar month during which Executive
worked at least one (1) hour or was on approved leave of absence while in the
employ of a Southern Entity or Acquiring Company and its affiliates.

1.16 "Pension Plan" shall mean the Company Pension Plan or any successor
thereto, as in effect on the Employment Date.

1.17 "Retirement and Welfare Benefits" shall mean benefits provided by the
following types of plans and arrangements: pension plans, defined contribution
plans (matched savings, profit sharing, money purchase, ESOP, and similar
plans and arrangements), plans providing for death benefits while employed or
retired (life insurance, survivor income, and similar plans and arrangements),
plans providing for short-term disability benefits (including accident and
sick time), plans providing for long-term disability benefits, plans providing
health-care benefits (including reimbursements during active employment or
retirement related to expenses for medical, vision, hearing, dental, and
similar plans and arrangements).

1.18 "Separation Date" shall mean the date on which Executive is separated from
the Company's regular payroll.

1.19 "Short Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure  performance over a
period of twelve months or less.

1.20 "Southern Entity" shall mean The Southern Company or any of its
subsidiaries and affiliates.

1.21 "Target Bonus" shall mean the amount of incentive compensation expressed
as either a percent of salary or pay, an expected dollar amount, the number of
awards granted or such other quantifiable measure to determine the amount to be
paid or granted under the terms of the respective Short Term Bonus Plan, Long
Term Bonus Plan or Equity Based Bonus Plan as used by the Company to measure
the market competitiveness of its employee compensation programs.

                                       3

<PAGE>

1.22 "Termination for Cause" or "Cause" shall mean Executive's termination of
employment with the Company upon the occurrence of any of the following:

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

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

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

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

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

       (iv) violation of 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;

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

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

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

                 Notwithstanding the foregoing, Executive shall not be deemed to
        have been terminated for Cause unless and until there shall have been
        delivered to him a copy of a resolution duly adopted by the affirmative
        vote of the majority of Board of Directors at a meeting called and held
        for such purpose (after reasonable notice to Executive and an
        opportunity for him, together with counsel, to be heard before the Board
        of Directors), finding that, in the good faith opinion of the Board of
        Directors, Executive was guilty of conduct set forth in Section 1.22(a)
        or (b) hereof and specifying the particulars thereof in detail.

1.23 "Total Disability" shall mean total disability under the terms of the
Pension Plan.

                                       4
<PAGE>

1.24 "Waiver and Release" shall mean the Waiver and Release substantially
in the form of Exhibit A attached hereto.

1.25 "Year of Service" shall mean Executive'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 Executive had a break in service
during his employment with a Southern Entity, he or she will receive credit
under this Agreement for his service prior to such break in service provided the
break in service was less than five (5) years and his service with the Southern
Entity prior to the break exceeded the length of such break in service.

                        ARTICLE II - SEVERANCE BENEFITS

2.1      Eligibility.

      (a)    Except as otherwise provided herein, if Executive's employment
             is involuntarily terminated by the Company at any time during
             the two year period following his Employment Date for reasons
             other than Cause or if Executive shall voluntarily terminate
             his employment with the Company for Good Reason at any time
             during the two year period following his Employment Date,
             Executive shall be entitled to receive the amounts described
             in Section 2.2 hereof, subject to the terms and conditions
             described in this Article II.

      (b)    Limits on Eligibility. Notwithstanding anything to the
             contrary herein, Executive shall not be eligible to receive
             amounts under this Agreement if Executive:

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

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

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

        (iv)      accepts the transfer of his employment to an affiliate of
                  the Company;

        (v)       elects to receive the benefits of any other voluntary or
                  involuntary severance, separation or outplacement program,
                  plan or agreement maintained by the Company in lieu of
                  benefits under this Agreement.

2.2      Benefits. Upon the Company's receipt of an effective Waiver and
Release, Executive shall be entitled to receive the following:

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

     (b) Severance  Benefit.  Executive shall be paid in cash an amount equal to
three times Executive's  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

                                       5
<PAGE>

Company shall pay to Executive 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 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 Executive  under Code  Section 280G exceeds  three (3)
times Executive'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
Executive's Base Amount,  less all other  "parachute  payments" (as such term is
defined  under Code Section 280G)  received by  Executive,  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 Section 2.2(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 a
         nationally recognized firm specializing in federal income taxes as
         selected by the Board of Directors, and such calculations or
         determinations shall be binding upon Executive and the Company.

(c)       Welfare Benefit.

     (i) Except as provided in Section 2.3 hereof,  Executive  shall be eligible
to participate in the Company's Group Health Plan for a period of six (6) months
for each of  Executive's  Years of  Service,  not to exceed a period of five (5)
years,  beginning  on the  first day of the first  month  following  Executive's
Separation  Date unless  otherwise  specifically  provided under such plan, upon
Executive's  payment of both the  Company's and  Executive's  premium under such
plan.  Executive shall also be entitled to elect coverage under the Group Health
Plan for his  dependents  who are  participating  in the  Group  Health  Plan on
Executive's Separation 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  Executive's  extended  medical
coverage under this Section 2.2(c) to the extent such dependents remain eligible
for dependent coverage under the terms of the Group Health Agreement.

     (ii) The extended medical coverage  afforded to Executive  pursuant to this
Section  2.2(c) as well as the premiums to be paid by  Executive  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 Executive in connection  with this
extended  coverage  shall  be due on the  first  day of  each  month;  provided,
however,  that if Executive  fails to pay his premium within thirty (30) days of
its due date, Executive's extended coverage shall be terminated.

                                       6
<PAGE>

     (iii) Any Group Health Plan  coverage  provided  under this Section  2.2(c)
shall be a part of and not in addition to any COBRA Coverage which  Executive or
his dependent may elect.  In the event that  Executive or his dependent  becomes
eligible  to be  covered,  by  virtue  of  re-employment  or  otherwise,  by any
employer-sponsored  group  health plan or is  eligible  for  coverage  under any
government-sponsored  health plan during the above  period,  coverage  under the
Employing Company's Group Health Plan available to Executive or his dependent by
virtue of the  provisions  of this  Article  II shall  terminate,  except as may
otherwise be required by law, and shall not be renewed.  It shall be the duty of
Executive to inform the Company of his  eligibility  to  participate in any such
health plan.

     (iv) Except as  otherwise  provided in Section  2.3 hereof,  regardless  of
whether  Executive  elects the extended  coverage  described  in Section  2.2(c)
hereof,  the Company shall pay to Executive a cash amount equal to the Company's
and Executive's cost of premiums for three (3) years of coverage under the Group
Health Plan and Group Life Insurance Plan.

  (d)Equity  Based  Awards.  Any  Equity  Based  Awards  outstanding  as of
     the Separation  Date which are not  then  exercisable  and
     vested,  shall become fully exercisable and vested;  provided,  that in the
     case of a stock  appreciation  right,  if  Executive  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 Executive  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.

  (e)Incentive  Plans. To the extent that Executive,  as of the Separation Date,
     is a  participant  in any Short Term  Bonus  Plan or Long Term Bonus  Plan,
     Executive  shall be  entitled  to  receive  cash in an amount  equal to his
     awards under such Plans for the period in which the  Separation  Date shall
     have occurred,  at  Executive's  Target Bonus and prorated by the number of
     months which have passed  since the  beginning  of the  performance  period
     until the Separation Date. For this purpose a month shall not be considered
     if the Separation Date occurs on or before the 14th day of the month, and a
     month shall be  considered  if the  Separation  Date occurs on or after the
     15th day of the month.

2.3 Payment of Benefits. The total amount payable under this Article II shall be
paid to Executive in one (1) lump sum payment within two (2) payroll periods of
the later of the following to occur: (a) Executive's Separation Date, or (b) the
tender to the Company by Executive of an effective Waiver and Release (in
substantially 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.

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

                                       7

<PAGE>

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

2.6 No Mitigation. Executive shall have no duty or obligation to seek other
employment following his Separation Date and, except as otherwise provided in
Subsection 2.1(b) hereof, the amounts due Executive hereunder shall not be
reduced or suspended if Executive accepts such subsequent employment.

                           ARTICLE III - ARBITRATION

3.1 General. Any dispute, controversy or claim arising out of or relating to the
Company's obligations to pay severance amounts 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 Article III are not intended to apply to any other disputes, claims or
controversies arising out of or relating to Executive's employment by the
Company or the termination thereof.

3.2 Demand for Arbitration. Arbitration shall be initiated by serving a written
notice of demand for arbitration to Executive, in the case of the Company, or to
the Board of Directors, in the case of Executive.

3.3 Law and Venue.  The  arbitrators  shall  apply the laws of the State in
which the Company's headquarters are located, except to the extent pre-empted by
federal law, excluding any law which would require the use of the law of another
state. The arbitration shall be held in such State.

3.4 Appointment of Arbitrators. Arbitrators shall be appointed within fifteen
(15) business days following service of the demand for arbitration. The number
of arbitrators shall be three. One arbitrator shall be appointed by Executive,
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.

3.5 Costs. The arbitration filing fee shall be paid by Executive. All other
costs of arbitration shall be borne equally by Executive 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 Executive's
favor and Executive is reimbursed legal fees under Section 2.5 hereof.

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

                                       8
<PAGE>

                           ARTICLE IV - MISCELLANEOUS

4.1 Funding of Benefits. Unless the Board of Directors in its discretion
determines otherwise, amounts payable to Executive 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.

4.2 Withholding. There shall be deducted from the payment of any amount 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 Executive entitled to such payment.

4.3 Assignment. Neither Executive nor his beneficiaries shall have any rights to
sell, assign, transfer, encumber, or otherwise convey the right to receive the
payment of any amount 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.

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

         IN   WITNESS   WHEREOF,    the   parties   hereto   have   executed
this   Agreement   this   ____  day of ______________, _____.

                                           ACQUIRING COMPANY

                                  By:      ____________________________________

                                           EXECUTIVE

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

                                       9
<PAGE>

                                    Exhibit A

                               SEVERANCE AGREEMENT
                               Waiver and Release

         The attached Waiver and Release is to be given to Executive upon the
occurrence of an event that triggers eligibility for severance benefits under
the Severance Agreement, as described in Paragraph 2.1(a) of such agreement.

                                       10

<PAGE>

                               Waiver and Release

         I, _________________, understand that I am entitled to receive the
severance benefits described in Article II of the Severance 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 Acquiring Company (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
Acquiring Company and other direct or indirect subsidiaries of Acquiring 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 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.

                                       11
<PAGE>

         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
----.

                                  ---------------------------
                                    Executive

Sworn to and subscribed to me this

___day of _________, ____Exhibit 10.4
                              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. Michael D. Garrett ("Mr. Garrett ")
(hereinafter collectively referred to as the "Parties") is effective November
16, 2006. This Agreement amends and restates the Amended and Restated Change in
Control Agreement entered into by Mr. Garrett, Southern and the Company,
effective June 1, 2004.

                                   WITNESSETH:

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

         WHEREAS, the Company wishes to provide to Mr. Garrett certain severance
benefits under certain circumstances following a change in control (as defined
herein) of Southern or the Company;

         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
<PAGE>

                            ARTICLE I - DEFINITIONS.

              For purposes of this Agreement, the following terms shall have the
following meanings:

1.1 "Annual Compensation" shall mean Mr. Garrett's Base Salary plus Target Bonus
under the Company's Short Term Bonus Plan and Long Term Bonus Plan.

1.2 "Base Salary" shall mean Mr. Garrett's highest annual base salary rate
during the twelve (12) month period immediately preceding the date the Change
in Control is Consummated.

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

1.4 "Benefit Index" shall mean the Hewitt Associates' Benefit Index(r),  or
if such index is no longer available,  cannot be used, or if pursuant to Section
1.5 hereof  another  Benefits  Consultant  has been  chosen by the  Compensation
Committee, such other comparable index utilized by the Benefits Consultant.

1.5  "Benefits  Consultant"  shall  mean  Hewitt  Associates  or such other
nationally  recognized  employee benefits consulting firm as shall be designated
in writing by the  Compensation  Committee  upon the occurrence of a Preliminary
Change in Control that would result in a Subsidiary Change in Control.

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

1.7 "Business Combination" shall mean a reorganization, merger or consolidation
of Southern or sale or other disposition of all or substantially all of the
assets of Southern.
                                       2

<PAGE>

1.8      "Change in Control" shall mean,

       (a)        with respect to Southern, the occurrence of any of the
                  following:

         (i)      The Consummation of an acquisition by any Person of Beneficial
                  Ownership of 20% or more of Southern's Voting Securities;
                  provided, however, that for purposes of this Section 1.8(a)(i)
                  the following acquisitions of Southern's Voting Securities
                  shall not constitute a Change in Control:

                (A) any acquisition directly from Southern;

                (B) any acquisition by Southern;

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

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

                (E) any acquisition by an employee of Southern or a Southern
                 Subsidiary, or Group composed exclusively of such employees;
                 or

                (F) any Business Combination which would not otherwise
                 constitute a Change in Control because of the application of
                 clauses (A), (B) or (C) of Section 1.8(a)(iii);

        (ii)      A change in the composition of the Southern Board whereby
                  individuals who constitute the Incumbent Board cease for any
                  reason to constitute at least a majority of the Southern
                  Board; or

                                      3

<PAGE>

        (iii)     The Consummation of a Business Combination, unless, following
                  such Business Combination, all of the following three
                  conditions are met:

                (A)  all  or  substantially  all  of  the  individuals  and
     entities  who  held Beneficial  Ownership,   respectively,   of
     Southern's  Voting  Securities immediately prior to such Business
     Combination hold Beneficial  Ownership, directly or indirectly,
     of 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 Business  Combination 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 qualified pension plan, publicly
     held mutual fund, Group composed exclusively of Employees or employee
     benefit plan (or related trust) of Southern, any Southern Subsidiary or
     Surviving Company) holds Beneficial Ownership, directly or indirectly, of
     20% or more of the combined voting power of the then outstanding Voting
     Securities of Surviving Company except to the extent that such
     ownership existed prior to the Business Combination; and

                          4

<PAGE>

                (C)  at least a majority of the members of the board of
     directors of Surviving Company were members of the Incumbent Board on
     the date of the Preliminary Change in Control.

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

    (i)           The Consummation of an acquisition by any Person of Beneficial
                  Ownership of 50% or more of the combined voting power of the
                  then outstanding Voting Securities of the Company; provided,
                  however, that for purposes of this Section 1.8(b)(i), any
                  acquisition by Mr. Garrett, any other employee of Southern or
                  a Southern Subsidiary, or Group composed entirely of such
                  employees, any qualified pension plan, any publicly held
                  mutual fund or any employee benefit plan (or related trust)
                  sponsored or maintained by Southern or any Southern Subsidiary
                  shall not constitute a Change in Control;

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

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

1.9 "COBRA Coverage" shall mean any continuation coverage to which Mr. Garrett
or his dependents may be entitled pursuant to Code Section 4980B.

                                       5
<PAGE>

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

1.11 "Common Stock" shall mean the common stock of Southern.

1.12 "Company" shall mean Georgia Power Company, its successors and assigns.

1.13 "Compensation Committee" shall mean the Compensation and Management
Succession Committee of the Southern Board.

1.14 "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.

1.15 "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.

1.16 "Economic Equivalent" or "Economic Equivalence" shall have the meaning set
forth in Section 1.23(f) hereof.

                                       6
<PAGE>

1.17  "Employee Outplacement Program" shall mean the program established by
the Company from time to time for the purpose of assisting employees in finding
employment outside of the Company which provides for the following services:

        (a) self assessment, career decision and goal setting;

        (b) job market research and job sources;

        (c) networking and interviewing skills;

        (d) planning and implementation strategy;

        (e) resume writing, job hunting methods and salary negotiation; and

        (f) office support and job search resources.

1.18 "Company" shall mean Georgia Power Company, its successors and assigns.

1.19 "Company Business Combination" shall have the meaning set forth in Section
1.8(b)(ii) hereof.

1.20 "Equity Based Bonus Plan" shall mean a plan or
arrangement that provides for the grant to participants of stock options,
restricted stock, stock appreciation rights, phantom stock, phantom stock
appreciation rights or any other similar rights the terms of which provide a
participant with the potential to receive the benefit of any increase in value
of the underlying equity or notional amount (e.g., number of phantom shares)
from the date of grant through a subsequent date.

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

1.22 "Executive Employee" shall mean those employees of the Company of Grade
Level 10 or above.

                                       7

<PAGE>

1.23 "Good Reason" shall mean, without Mr. Garrett's express
written consent, after written notice to the Company, and after a thirty (30)
day opportunity for the Company to cure, the continuing occurrence of any of the
events described in Subsections (a)(i), (b)(i), (c)(i), (d)(i) or (d)(ii) of
this Section 1.23. In the case of Mr. Garrett claiming benefits under this
Agreement upon a Subsidiary Change in Control, the foregoing notice and
opportunity to cure will be satisfied if Mr. Garrett provides to the
Compensation Committee a copy of his written offer of employment by the
acquiring company within thirty (30) days of such offer along with a written
explanation describing how the terms of such offer satisfy the requirements of
Subsections (a)(ii), (b)(ii), (c)(ii), (d)(iii) or (e) of this Section 1.23. The
Compensation Committee shall make a determination of whether such written offer
of employment satisfies the requirements of Sections 1.23(a)(ii), (b)(ii),
(c)(ii), (d)(iii) or (e) hereof upon consultation with the Benefits Consultant
and shall notify Mr. Garrett of its decision within thirty (30) days of receipt
of Mr. Garrett's written offer of employment. Any dispute regarding the
Compensation Committee's decision shall be resolved in accordance with Article
III hereof.

        (a) Inconsistent Duties.

             (i)  Change in Control. A meaningful and detrimental alteration in
                  Mr. Garrett's position or in the nature or status of his
                  responsibilities from those in effect immediately prior to the
                  Change in Control.
             (ii) Subsidiary Change in Control. In the event of a Subsidiary
                  Change in Control, Good Reason shall exist if Mr. Garrett is
                  offered employment with the acquiring employer with a job
                  title, duties and status which are materially and

                                       8
<PAGE>

                  detrimentally lower than Mr. Garrett's job title, duties and
                  status in effect at the Company as of the date the offer of
                  employment is received.

      (b)         Reduced Compensation.

           (i)    Change in Control. A reduction of five percent (5%) or more by
                  the Company in any of the following amounts of compensation
                  expressed in subparagraphs (A), (B) or (C) hereof, except for
                  a less than ten percent (10%), across-the-board reduction in
                  such compensation amounts similarly affecting ninety-five
                  percent (95%) or more of the Executive Employees eligible for
                  such compensation:

                (A) Mr. Garrett's Base Salary;

                (B) the sum of Mr. Garrett's Base Salary plus Target Bonus under
          the Company's Short Term Bonus Plan, as in effect on the day
          immediately preceding the day the Change in Control is
          Consummated; or

                (C) the sum of Mr. Garrett's Base Salary plus Target Bonus under
          the Company's Short Term Bonus Plan and Long Term Bonus Plan
          plus the Target Bonus under the Company's Equity Based Bonus
          Plan, each of which as in effect on the day immediately
          preceding the day the Change in Control is Consummated.

          (ii)    Subsidiary Change in Control. In the event of a Subsidiary
                  Change in Control, Good Reason shall exist if Mr. Garrett is
                  offered Base Salary, Target Bonus under the acquiring
                  company's Short Term Bonus Plan and Long Term Bonus Plan and

                                       9
<PAGE>

                  Target Bonus under the acquiring company's Equity Based Bonus
                  Plan that, in the aggregate, is less than ninety percent (95%)
                  of Mr. Garrett's Base Salary plus Target Bonus under the
                  Company's Short Term Bonus Plan and Long Term Bonus Plan, plus
                  Target Bonus under the Company's Equity Based Bonus Plan, each
                  of which as in effect on the day the offer of employment is
                  received;

      (c)           Relocation.

        (i)  Company.  A change in Mr.  Garrett's  work location to a location
     more than fifty (50) miles from the facility where Mr. Garrett was
     located on the day immediately preceding the day the Change in Control is
     Consummated,  unless such new  work  location  is  within  fifty  (50)
     miles  of Mr.  Garrett's principal place of residence on the day
     immediately  preceding the day the Change in Control is Consummated. The
     acceptance, if any, by Mr. Garrett of employment  by the  Company at a
     work  location  which is outside the fifty mile radius set forth in this
     Section  1.23(c) shall not be a waiver of Mr.Garrett's right to refuse
     subsequent  transfer by the Company to a location which is more than
     fifty (50) miles from Mr.  Garrett's  principal place of residence on the
     day immediately preceding the day the Change in Control is Consummated,
     and such  subsequent  nonconsensual  transfer  shall be "Good
     Reason" under this Agreement;

        (ii) Subsidiary Change in Control. In the case of a Subsidiary
     Change in Control, Good Reason shall exist if Mr. Garrett's
     work location under the terms of the offer of employment from
     the acquiring employer is more than fifty (50) miles from Mr.
     Garrett's work location at the Company as of the date the

                                       10

<PAGE>

     offer of employment by the acquiring employer is received.

        (d)       Benefits and Perquisites.

           (i)    Change in Control - Retirement and Welfare Benefits. The
                  taking of any action by the Company that would directly or
                  indirectly cause a Material Reduction in the Retirement and
                  Welfare Benefits to which Mr. Garrett is entitled under the
                  Company's Retirement and Welfare Benefit plans in which Mr.
                  Garrett was participating on the day immediately preceding the
                  day the Change in Control is Consummated.

           (ii)   Vacation and Paid Time Off. The failure by the Company to
                  provide Mr. Garrett with the number of paid vacation days or,
                  if applicable, paid time off days to which Mr. Garrett is
                  entitled on the basis of years of service with the Company in
                  accordance with the Company's normal vacation policy or the
                  paid time off program (whichever applicable) in effect on the
                  day immediately preceding the day the Change in Control is
                  Consummated (except for across-the-board vacation policy or
                  paid time off program changes or policy or program
                  terminations similarly affecting at least ninety-five percent
                  (95%) of all Executive Employees of the Company).

           (iii)  Subsidiary Change in Control. In the event of a Subsidiary
                  Change in Control, Good Reason shall exist if Mr. Garrett is
                  offered a package of Retirement and Welfare Benefits by the
                  acquiring employer that is not Economically Equivalent, as
                  determined under Sections 1.23(f) and (g) hereof.

                                       11
<PAGE>

    (e)           Adoption of Severance Agreement. In the event of a Subsidiary
                  Change in Control, Good Reason shall exist if the offer of
                  employment by the acquiring employer does not include an
                  agreement to enter into a severance agreement substantially in
                  the form of Exhibit B attached hereto.

    (f)           Economic Equivalence. For purposes of Section 1.23(d)(iii)
                  above, an acquiring employer's package of Retirement and
                  Welfare Benefits shall be considered Economically Equivalent
                  if, in the written opinion of the Benefits Consultant, the
                  anticipated, employer-provided value of what Mr. Garrett is
                  expected to derive from the acquiring employer's Retirement
                  and Welfare Benefits is equal to or greater than ninety
                  percent (90%) of such value Mr. Garrett would have derived
                  from the Company's Retirement and Welfare Benefits using the
                  Benefit Index.

    (g)           Benefit Index Guidelines. For purposes of Section 1.23(f)
                  above, the following guidelines shall be followed by the
                  Company, the acquiring employer and the Benefits Consultant in
                  the performance of the Benefit Index calculations:

        (i)  Upon a Preliminary  Change in Control that if Consummated would
     result in a Subsidiary Change in Control,  the Company and the acquiring
     employer shall provide to the Benefits  Consultant the applicable
     benefit plan provisions for the plan year in which the Subsidiary  Change
     in Control is anticipated to occur.  Plan provisions for the  immediately
     preceding plan year may be provided  if the  Benefits  Consultant
     determines  that there have been no changes to such plans that would
     materially  affect the  determination  of Economic Equivalence.  If the
     acquiring employer's relevant plan provisions have not  previously  been
     included in the Benefits  Consultant's  Benefit

                                       12
<PAGE>

     Index  database,  the  acquiring  employer  shall  provide to the  Benefits
     Consultant such plan  information as the Benefits  Consultant shall request
     in writing as soon as practicable  following such request. The Compensation
     Committees  shall take such action as is reasonably  required to facilitate
     the  transfer  of such  information  from  the  acquiring  employer  to the
     Benefits Consultant.

        (ii) The standard Benefit Index assumptions for the plan year from
     which the plan provisions are taken shall be used.

        (iii)The Company shall provide to the Benefit Consultant actual
     data for its Employees.

        (iv) The determination of whether or not the acquiring employer's
     Retirement and Welfare Benefits are Economically Equivalent to
     the Retirement and Welfare Benefits provided to Mr. Garrett by
     the Company shall be determined on an aggregate basis. All
     assessments shall consider all benefits in total and no
     individual-by-individual, plan-by-plan determination of
     Economic Equivalence shall be made.

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

1.25 "Group Health Plan" shall mean the group health plan covering Mr. Garrett,
as such plan may be amended from time to time.

1.26 "Group Life Insurance Plan" shall mean the group life insurance plan
covering Mr. Garrett, as such plan may be amended from time to time.

                                       13

<PAGE>

1.27 "Incumbent Board" shall mean those individuals who constitute the Southern
Board as of February 23, 2006, 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 February 23, 2006
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.

1.28 "Long Term Bonus Plan" shall mean any bonus type plan or
arrangement designed to provide incentive based compensation to participants
upon the achievement of objective or subjective goals that measure performance
over a period of more than twelve months.

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

1.30 "Material Reduction" shall mean (i) any change in a retirement plan or
arrangement  that has the effect of reducing the present  value of the projected
benefits to be provided to Mr.  Garrett by five percent  (5%) or more,  (ii) any
five  percent  (5%) or more  reduction  in  medical,  health  and  accident  and
disability  benefits  as a  percentage  of premiums  or premium  equivalents  in
accordance  with the Company's  prior  practice as measured over a period of the
three previous plan years from the date the Change in Control is Consummated, or
(iii) any five percent (5%) or more  reduction in employer  matching  funds as a

                                       14
<PAGE>

percentage  of employee  contributions  in accordance  with the Company's  prior
practice  measured over a period of the previous  three plan years from the date
the Change in Control is Consummated.

1.31 "Omnibus Plan" shall mean the Southern Company Omnibus Incentive
Compensation Plan, and the Design and Administrative Specifications duly adopted
thereunder, as in effect on the date a Change in Control is Consummated.

1.32 "Pension Plan" shall mean The Southern Company Pension Plan or any
successor thereto, as in effect on the date a Change in Control is Consummated.

1.33 "Performance Dividend Program" or "PDP" shall mean the Performance Dividend
Program under the Omnibus Plan or any replacement thereto, as in effect on the
date a Change in Control is Consummated.

1.34 "Performance Pay Program" or "PPP" shall mean the Performance Pay Program
under the Omnibus Plan or any replacement thereto, as in effect on the date a
Change in Control is Consummated.

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

1.36 "Preliminary  Change in Control"  shall mean the  occurrence of
any of the following as  administratively determined by the Southern Committee.

        (a) Southern or the Company has  entered  into a written  agreement,
such as, but not limited to, a letter of intent, which, if Consummated, would
result in a Change in Control;

                                       15

<PAGE>

        (b)  Southern, the Company or any Person publicly announces an
intention to take or to consider taking actions which, if Consummated, would
result in a Change of Control under circumstances where the Consummation of
the announced action or intended action is legally and financially
possible;

        (c)  Any Person achieves the Beneficial Ownership of fifteen percent
(15%) or more of the Common Stock; or

        (d) The Southern Board or the Board of Directors has declared that a
Preliminary Change of Control has occurred.

1.37 "Retirement and Welfare Benefits" shall mean benefits provided by the
following types of plans and arrangements: pension plans, defined contribution
plans (matched savings, profit sharing, money purchase, ESOP, and similar plans
and arrangements), plans providing for death benefits while employed or retired
(life insurance, survivor income, and similar plans and arrangements), plans
providing for short-term disability benefits (including accident and sick time),
plans providing for long-term disability benefits, plans providing health-care
benefits (including reimbursements during active employment or retirement
related to expenses for medical, vision, hearing, dental, and similar plans and
arrangements).

1.38 "Separation Date" shall mean the date on which Mr. Garrett's employment
with the Company is terminated; provided, however, that solely for purposes of
Section 2.2(c) hereof, if, upon termination of employment with the Company, Mr.
Garrett is deemed to have retired pursuant to the provisions of Section 2.3
hereof, Mr. Garrett's Separation Date shall be the effective date of his
retirement pursuant to the terms of the Pension Plan.

                                       16

<PAGE>

 1.39 "Short Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure performance over a
period of twelve months or less.

1.40 "Southern" shall mean The Southern Company, its successors and assigns.

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

1.42 "Southern Committee" shall mean the committee comprised of the Chairman of
the Southern Board, the Chief Financial Officer of Southern and the General
Counsel of Southern.

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

1.44 "Subsidiary Change in Control" shall have the meaning set forth in Section
1.8(b)(iii) hereof.

1.45 "Target Bonus" shall mean the amount of incentive
compensation expressed as either a percent of salary or pay, an expected dollar
amount, the number of awards granted or such other quantifiable measure to
determine the amount to be paid or awards granted under the terms of the
respective Short Term Bonus Plan, Long Term Bonus Plan or Equity Based Bonus
Plan, as used by the Company or respective acquiring employer to measure the
market competitiveness of its employee compensation programs.

1.46 "Termination for Cause" or "Cause" shall mean Mr. Garrett's termination of
employment with the Company upon the occurrence of any of the following:

  (a)The willful and continued  failure by Mr. Garrett to substantially  perform
     his duties with the Company (other than any such failure resulting from Mr.
     Garrett's  Total  Disability or from Mr.  Garrett's  retirement or any such

                                       17
<PAGE>

     actual or anticipated failure resulting from termination by Mr. Garrett 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 Mr. Garrett has
     not substantially performed his duties; or

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

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

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

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

        (iv) violation of 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;

                                       18
<PAGE>

        (v)  assault or other act of violence by Mr. Garrett against any
     person during the course of employment; or

        (vi) Mr. Garrett's indictment for any felony or any misdemeanor
     involving moral turpitude.

                  No act or failure to act by Mr. Garrett shall be deemed
         "willful" unless done, or omitted to be done, by Mr. Garrett 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. Garrett shall not be
          deemed to have been terminated for Cause unless and until there shall
          have been delivered to him a copy of a resolution duly adopted by the
          affirmative vote of the majority of the Southern Board at a meeting
          called and held for such purpose (after reasonable notice to Mr.
          Garrett 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. Garrett was guilty of conduct set forth in
          Section 1.46(a) or (b) hereof and specifying the particulars thereof
          in detail.

1.47      "Total Disability" shall mean total disability under the terms of the
Pension Plan.

1.48 "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.

1.49 "Waiver and Release" shall mean the Waiver
and Release substantially in the form of Exhibit A attached hereto.

1.50 "Year of Service" shall mean an Employee's Months of Service divided by
twelve (12) rounded to the nearest whole year, rounding up if the remaining
number of months is seven (7) or greater and rounding down if the remaining
number of months is less than seven (7). If an Employee has a break in his

                                       19

<PAGE>

service with his Employing Company, he will receive credit under this Plan for
the service prior to the break in service only if the break in service was less
than five years and his service prior to the break exceeds the length of the
break in service.

                        ARTICLE II - SEVERANCE BENEFITS

2.1      Eligibility.

       (a)        Except as otherwise provided herein, if Mr. Garrett's
                  employment is involuntarily terminated by the Company at any
                  time during the two year period following a Change in Control
                  of Southern or the Company for reasons other than Cause or if
                  Mr. Garrett voluntarily terminates his employment with the
                  Company for Good Reason at any time during the two year period
                  following a Change in Control of Southern or the Company, he
                  shall be entitled to receive the benefits described in Section
                  2.2 hereof, subject to the terms and conditions described in
                  this Article II.

       (b)        Limits on Eligibility. Notwithstanding anything to the
                  contrary herein, Mr. Garrett shall not be eligible to receive
                  benefits under this Plan if Mr. Garrett :

          (i)     is not actively at work on his Separation Date, unless Mr.
                  Garrett is capable of returning to work within twelve (12)
                  weeks of the beginning of any leave of absence from work;

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

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

                                       20
<PAGE>

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

        (v)       accepts the transfer of his employment to any employer (or its
                  affiliate) that acquires all or substantially all of the
                  assets of a Southern Subsidiary or the Company and becomes an
                  employee of any such employer (or its affiliate) following
                  such acquisition (provided, however, that if Mr. Garrett would
                  otherwise have been entitled to severance benefits under this
                  Agreement but for this Section 2.1(b)(v), Mr. Garrett shall be
                  eligible for benefits under this Agreement except for those
                  outplacement, severance and welfare benefits described in
                  Sections 2.2(a), (b) and (c) hereof);

        (vi)      is involuntarily separated from service with the Company after
                  refusing an offer of employment by Southern or a Southern
                  Subsidiary, under circumstances where the terms of such offer
                  would not have amounted to Good Reason for voluntary
                  termination of employment from the Company by comparing each
                  item of compensation and benefits of such offer of employment
                  as set forth in Section 1.23(a)(i), (b)(i), (c)(i), (d)(i) and
                  (d)(ii) above, with such items of compensation and benefits to
                  which he is entitled at the Company as of the day immediately
                  preceding the day of such offer of employment;

      (vii)       refuses an offer of employment by an acquiring employer in a
                  Subsidiary Change in Control under circumstances where such
                  offer does not provide Good Reason under the requirements of

                                       21

<PAGE>

                  Section 1.23(a)(ii), (b)(ii), (c)(ii), (d)(iii) or (e) hereof.

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

2.2 Severance  Benefits.  Upon the Company's receipt of an effective Waiver
and Release,  Mr.  Garrett shall be entitled to receive the following  severance
benefits:

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

       (b) Severance  Amount. Mr. Garrett shall be paid in cash 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.  Garrett 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

                                       22
<PAGE>

     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.  Garrett  under  Code
     Section 280G exceeds three (3) times Mr.  Garrett'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.  Garrett's  Base
     Amount, less all other "parachute  payments" (as such term is defined under
     Code Section 280G)  received by Mr.  Garrett,  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 Section 2.2(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 a
         nationally recognized firm specializing in federal income taxes as
         selected by the Compensation Committee, and such calculations or
         determinations shall be binding upon Mr. Garrett, Southern and the
         Company.

        (c)   Welfare Benefit.

        (i)  Except as provided in Section 2.3 hereof,  Mr. Garrett shall be
     eligible to participate  in the  Company's  Group  Health  Plan for a
     period of six (6) months for each of Mr.  Garrett's Years of Service,
     not to exceed a period of five (5) years,  beginning on the first day of
     the first month following Mr. Garrett's Separation Date unless otherwise
     specifically provided under such  plan,  upon  Mr.  Garrett's  payment
     of both the Company's and Mr.

                                       23
<PAGE>

     Garrett's  premium under such plan.  Mr.  Garrett shall also be entitled to
     elect  coverage  under the Group  Health  Plan for his  dependents  who are
     participating  in the Group Health Plan on Mr.  Garrett's  Separation  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.  Garrett's  extended  medical  coverage under
     this  Section  2.2(c) to the extent such  dependents  remain  eligible  for
     dependent coverage under the terms of the Group Health Plan.

        (ii) The extended  medical coverage afforded to Mr. Garrett pursuant to
     this Section  2.2(c)  as well as the  premiums  to be  paid  by Mr.
     Garrett  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.  Garrett in connection  with this
     extended  coverage shall be due on the first day of each month;  provided,
     however, that if Mr. Garrett fails to pay his premium  within  thirty
     (30) days of its due date,  his extended coverage shall be terminated.

        (iii)Any Group Health Plan coverage provided under this Section 2.2(c)
     shall be a part of and not in addition to any COBRA  Coverage  which
     Mr.  Garrett or his  dependent  may elect.  In the event that Mr.  Garrett
     or his dependent becomes eligible to be covered, by virtue of
     re-employment or otherwise, by any employer-sponsored  group health plan
     or is eligible for coverage under any  government-sponsored  health  plan
     during the above  period,  coverage

                                       24

<PAGE>

     under the  Company's  Group  Health Plan  available  to Mr.  Garrett or his
     dependent by virtue of the  provisions of this Article II shall  terminate,
     except as may  otherwise be required by law,  and shall not be renewed.  It
     shall be the duty of Mr.  Garrett to inform the Company of his  eligibility
     to participate in any such health plan.

        (iv) Except as otherwise provided in Section 2.3 hereof, regardless of
     whether Mr. Garrett elects the extended coverage described in Section
     2.2(c) hereof, the Company shall pay to Mr. Garrett a cash amount
     equal to the Company's and Mr. Garrett's cost of premiums for three
     (3) years of coverage under the Group Health Plan and Group Life
     Insurance Plan, as such Plans were in effect as of the date of the
     Change in Control.

        (d)  Stock Option Vesting. The provisions of this Section 2.2(d) shall
          apply to any equity based awards under the Omnibus Plan, the defined
          terms of which are incorporated in this Section 2.2(d) by reference.

                (i)  Any of Mr. Garrett's Options and Stock  Appreciation
     Rights outstanding as of the Separation  Date which are not then
     exercisable  and vested,  shall  become fully exercisable and vested;
     provided, that in the case of a Stock Appreciation  Right,  if Mr.
     Garrett 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. Garrett under Section 16(b) of the Exchange Act,  provided further that

                                       25
<PAGE>

     any such actions not taken as a result of the rules under  Section 16(b) of
     the Exchange Act shall be effected as of the first date that such  activity
     would no longer  result in liability  under  Section  16(b) of the Exchange
     Act.

                (ii) The restrictions and deferral limitations applicable to
     any of Mr. Garrett's Restricted Stock and Restricted Stock Units as of the
     Separation Date shall lapse, and such Restricted Stock and Restricted
     Stock Units shall become free of all restrictions and limitations and
     become fully vested and transferable.

        (e)  Performance Pay Program.  The provisions of this Section 2.2(e)
     shall apply to the Performance Pay Program under the Omnibus Plan, the
     defined terms of  which are  incorporated  in this Section 2.2(e) by
     reference.  Provided Mr. Garrett is not entitled to a Cash-Based  Award
     under the PPP, if the PPP is in place as of Mr. Garrett's  Separation Date
     and to the extent Mr. Garrett is  entitled  to  participate  therein,
     Mr.  Garrett  shall be entitled to receive  cash in an amount  equal to a
     prorated  payout of his  Cash-Based Award under the PPP for the
     performance period in which the Separation Date shall have occurred,  at
     target  performance  under the PPP and prorated by the  number  of  months
     which  have  passed  since  the  beginning  of the performance period
     until the Separation Date.

        (f)  Performance  Dividend Program.  The provisions of this
     Section 2.2(f) shall apply to the Performance  Dividend Program,  the
     defined terms of which are incorporated  in this Section 2.2(f) by
     reference.  Provided Mr. Garrett is not  entitled to a  Cash-Based
     Award under the PDP, if the PDP is in place

                                       26
<PAGE>

     through  Mr.  Garrett's  Separation  Date and to the extent Mr.  Garrett is
     entitled to participate  therein,  Mr. Garrett shall be entitled to receive
     cash for each  such  Cash-Based  Award  under  the PDP held as of such date
     based on a payout  percentage  of the greater of 50% or actual  performance
     under the PDP for the performance period in which the Separation Date shall
     have  occurred,  and the sum of the  quarterly  dividends  declared  on the
     Common Stock in the performance  year of and prior to the Separation  Date.
     For purposes of this Section 2.2(f),  payout of each Cash-Based Award under
     the PDP shall be based upon the performance  measurement  period that would
     otherwise  have ended on December  31st of the year in which Mr.  Garrett's
     Separation Date occurs,  all other  remaining PPP  performance  measurement
     periods shall  terminate  with respect to Mr. Garrett and no payment to Mr.
     Garrett shall be made with respect thereto.

        (g)  Other Short Term Incentives Under the Omnibus Plan. The provisions
     of this Section 2.2(g) shall apply to Performance Unit or Performance
     Share awards under the Omnibus Plan. Provided Mr. Garrett is not
     otherwise entitled to a Performance Unit/Share award under the Omnibus
     Plan, Mr. Garrett shall be entitled to receive cash in an amount equal
     to a prorated payout of the value of his Performance Units and/or
     Performance Shares for the performance period in which the Separation
     Date shall have occurred, at target performance and prorated by the
     number of months which have passed since the beginning of the
     performance period until the Separation Date.

        (h)  Other  Short-Term  Incentive  Plans.  The provisions of this
     Section 2.2(h) shall  apply to Mr.  Garrett to the  extent  that he, as
     of the date of the Change in Control,  is a  participant  in any other
     "short term  incentive compensation  plan" not  otherwise  previously
     referred to in this Section 2.2. Provided Mr. Garrett is not otherwise
     entitled to a plan payout under any  change  in  control  provisions  of
     such  plans,  if the  "short  term incentive  compensation plan" is in
     place through Mr. Garrett's  Separation Date and to the extent
     Mr. Garrett is entitled to participate  therein, Mr.

                                       27
<PAGE>

     Garrett  shall be entitled to receive  cash in an amount equal to his award
     under the Company's "short term incentive compensation plan" for the annual
     performance period in which the Separation Date shall have occurred, at Mr.
     Garrett's  target  performance  level and  prorated by the number of months
     which have passed  since the  beginning  of the annual  performance  period
     until the Separation  Date. For purposes of this Section  2.2(h),  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 to participants based
     upon articulated  performance  criteria,  and which have been identified by
     the  Compensation  Committee  and listed on Exhibit B hereto,  which may be
     amended  from time to time to  reflect  plan  additions,  terminations  and
     amendments.

        (i)  Pro rata Calculation. For purposes of calculating any pro rata
     Cash-Based Awards under Section 2.2(e), (f), (g) and (h) hereof, a
     month shall not be considered if the determining event occurs on or
     before the 14th day of the month, and a month shall be considered if
     the determining event occurs on or after the 15th day of the month.

        (j)  No Duplicate Benefits. Notwithstanding anything in this
     Section 2.2 to the contrary, in the event that Mr. Garrett has received or
     is entitled to receive a Cash-Based Award under the PPP or the PDP as
     determined under the provisions of the Southern Company Change in
     Control Benefits Protection Plan (the "BPP") for the Performance
     Period which includes Mr. Garrett's Separation Date, then the amount
     of any such Cash-Based Award under this Plan shall be reduced
     dollar-for-dollar by any such amount received or to be received under
     the BPP.
                                       28
<PAGE>

2.3 Coordination with Retiree Medical and Life Insurance Coverage.
Notwithstanding anything to the contrary above, if Mr. Garrett is otherwise
eligible to retire pursuant to the terms of the Pension Plan, he shall be deemed
to have retired for purposes of all employee benefit plans sponsored by the
Company of which Mr. Garrett is a participant. If Mr. Garrett is deemed to have
retired in accordance with the preceding sentence, he shall not be eligible to
receive the benefits described in Section 2.2(c) hereof if, upon his Separation
Date, Mr. Garrett becomes eligible to receive the retiree medical and life
insurance coverage provided to certain retirees pursuant to the terms of the
Pension Plan, the Group Health Plan and the Group Life Insurance Plan.

2.4  Payment of Benefits.

  (a)     Except as otherwise provided in Section 2.4(b) hereof, the total
          amount payable under this Article II shall be paid to Mr. Garrett in
          one (1) lump sum payment within two (2) payroll periods of the later
          of the following to occur: (a) Mr. Garrett's Separation Date, or (b)
          the tender to the Company by Mr. Garrett of an effective Waiver and
          Release in the form of Exhibit A attached hereto and the expiration of
          any applicable revocation period for such waiver. In the event of a
          dispute with respect to liability or amount of any benefit due
          hereunder, an effective Waiver and Release shall be tendered at the
          time of final resolution of any such dispute when payment is tendered
          by the Company.

  (b)     Notwithstanding anything to the contrary in Section 2.4(a) above, if
          the Compensation Committee determines that it is necessary to delay
          any payment under this Article II in order to avoid any tax liability
          pursuant to Code Section 409A(a)(1), such payment shall be delayed for
          the period set forth in Section 409A(a)(2)(B)(i) and such delayed

                                       29
<PAGE>

          payment shall bear a reasonable rate of interest as determined by the
          Compensation Committee.

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

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

2.7 No Mitigation. Mr. Garrett shall have no duty or obligation to seek other
employment following his Separation Date and, except as otherwise provided in
Subsection 2.1(b) hereof, the amounts due Mr. Garrett hereunder shall not be
reduced or suspended if he accepts such subsequent employment.

2.8 Non-qualified Retirement and Deferred Compensation Plans. Subsequent to
a Change in Control,  any claims by Mr.  Garrett for  benefits  under any of the
Company's  non-qualified  retirement  or  deferred  compensation  plans shall be
resolved  through  binding  arbitration  in accordance  with the  procedures and
provisions  set forth in Article  III hereof and if any  material  issue in such
dispute is finally  resolved in Mr. Garrett's favor, the Company shall reimburse
Mr. Garrett's legal fees in the manner provided in Section 2.6 hereof.

                           ARTICLE III - ARBITRATION

                                       30

<PAGE>

3.1 General. 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 Article III are not intended to apply to any other disputes, claims or
controversies arising out of or relating to Mr. Garrett's employment by the
Company or the termination thereof.

3.2 Demand for Arbitration. Arbitration shall be initiated by serving a written
notice of demand for arbitration to Mr. Garrett, in the case of the Company, or
to the Compensation Committee, in the case of Mr. Garrett.

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

3.4 Appointment of Arbitrators. Arbitrators shall be appointed within fifteen
(15) business days following service of the demand for arbitration. The number
of arbitrators shall be three. One arbitrator shall be appointed by Mr. Garrett,
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.

3.5 Costs. The arbitration filing fee shall be paid by Mr. Garrett. All other
costs of arbitration shall be borne equally by Mr. Garrett and the Company,
provided, however, that the Company shall reimburse such fees and costs in the

                                       31
<PAGE>

event any material issue in such dispute is finally resolved in Mr. Garrett's
favor and Mr. Garrett is reimbursed legal fees under Section 2.6 hereof.

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

                      ARTICLE IV - TRANSFER OF EMPLOYMENT

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

                           ARTICLE V - MISCELLANEOUS

5.1 Funding of Benefits. Unless the Board of Directors in its discretion
determines otherwise, the amounts payable to Mr. Garrett under the this
Agreement shall not be funded in any manner and shall be paid by the Company out

                                       32
<PAGE>

of its general assets, which assets are subject to the claims of the Company's
creditors.

5.2 Withholding. There shall be deducted from the payment of any
amount 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. Garrett.

5.3 Assignment. Neither Mr. Garrett nor his beneficiaries shall have any rights
to sell, assign, transfer, encumber, or otherwise convey the right to receive
the payment of any amount 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.

5.4 Interpretation. This Agreement is intended to comply with the provisions of
Code Section 409A and the Treasury Regulations promulgated thereunder in order
to avoid any additional tax under Section 409A(a)(1). In the event it is
necessary to interpret the provisions of this Agreement for purposes of its
operation, such interpretation shall, to the extent possible, be consistent with
such intent.

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

         IN   WITNESS   WHEREOF,    the   parties   hereto   have   executed
this Agreement this 16 day of November, 2006.

                                   THE SOUTHERN COMPANY

                          By:      /s/  David M. Ratcliffe

                                   GEORGIA POWER COMPANY

                          By:      /s/  Robert A. Bell

                                   MR. GARRETT

                                   /s/  Michael D. Garrett
                                   Michael D. Garrett

<PAGE>

                                    Exhibit A
                           CHANGE IN CONTROL AGREEMENT
                               Waiver and Release

         The attached Waiver and Release is to be given to Mr. Michael D.
Garrett upon the occurrence of an event that triggers eligibility for severance
benefits under the Change in Control Agreement, as described in Section 2.2 of
such Agreement.

<PAGE>

                           CHANGE IN CONTROL AGREEMENT
                               Waiver and Release

         I, Michael D. Garrett, understand that I am entitled to receive the
severance benefits described in Article II 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 receiving the severance and welfare benefits under
Article II of the Agreement, I hereby voluntarily and irrevocably waive,
release, dismiss with prejudice, and withdraw all claims, complaints, suits or
demands of any kind whatsoever (whether known or unknown) which I ever had, may
have, or now have against The Southern Company, Southern Company Services, Inc.,
Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi
Power Company, Savannah Electric and Power Company, Southern Communications
Services, Inc. d/b/a Southern LINC, Southern Company Energy Solutions, L.L.C.,
Southern Nuclear Operating Company, Inc., Southern Telecom, Inc., Southern
Company Management Development, Inc., and other current or former subsidiaries
or affiliates of The Southern Company and their past, present and future
officers, directors, employees, agents, insurers and attorneys (collectively,
the "Releasees"), arising from or relating to (directly or indirectly) my
employment or the termination of my employment or other events occurred as of
the date of execution of this Agreement, including but not limited to:

                  (a) claims for violations of Title VII of the Civil Rights Act
         of 1964, the Age Discrimination in Employment Act, the Fair Labor
         Standards Act, the Civil Rights Act of 1991, the Americans With
         Disabilities Act, the Equal Pay Act, the Family and Medical Leave Act,
         42 U.S.C. ss. 1981, the National Labor Relations Act, the Labor
         Management Relations Act, Executive Order 11246, Executive Order 11141,
         the Rehabilitation Act of 1973, the Sarbanes-Oxley Act of 2002 or the
         Employee Retirement Income Security Act;

                  (b) claims for violations of any other federal or state
         statute or regulation or local ordinance;

                  (c) claims for lost or unpaid wages, compensation, or
         benefits, defamation, intentional or negligent infliction of emotional
         distress, assault, battery, wrongful or constructive discharge,
         negligent hiring, retention or supervision, fraud, misrepresentation,
         conversion, tortious interference, breach of contract, or breach of
         fiduciary duty;
<PAGE>

                  (d) claims to benefits under any bonus, severance, workforce
         reduction, early retirement, outplacement, or any other similar type
         plan sponsored by the Company (except for those plans listed below); or

                  (e) any other claims under state law arising in tort or
         contract.

         In signing this Agreement, I am not releasing any claims that may arise
under the terms of this Agreement or which may arise out of events occurring
after the date I execute this Agreement.

         I am also not releasing claims to benefits that I am already entitled
to receive under The Southern Company Pension Plan, The Southern Company
Employee Stock Ownership Plan, The Southern Company Employee Savings Plan, The
Southern Company Omnibus Incentive Compensation Plan, The Southern Company
Change in Control Benefits Protection Plan or under any workers' compensation
laws. 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.

         Nothing in this Agreement shall prohibit me from engaging in protected
activities under applicable law (including protected activities described in
Section 211 of the Energy Reorganization Act) or from communicating, either
voluntarily or otherwise, with any governmental agency concerning any potential
violation of the law.

         I understand and agree for a period of two (2) years after the date I
execute this Agreement, I will regard and treat as strictly confidential all
valuable, non-public, competitively sensitive data and information relating to
the Releasees' business that is not generally known by or readily available to
Releasees' competitors and I will not for any reason, either directly or
indirectly, use, sell, lend, lease, distribute, license, transfer, assign, show,
disclose, disseminate, reproduce, copy, or otherwise communicate any such
information to any third party for my own benefit or for any purpose, other than
in accordance with the express, written instructions of the Company or
Releasees.

         I further understand and agree that I will regard and treat as strictly
confidential all trade secrets of Releasees for as long as such items remain
trade secrets under applicable law and I will not for any reason, either
directly or indirectly, use, sell, lend, lease, distribute, license, transfer,
assign, show, disclose, disseminate, reproduce, copy, or otherwise communicate
any such trade secrets to any third party for my own benefit or for any purpose,
other than in accordance with the express, written instructions of the Company
or Releasees.

         I further agree to keep confidential and not disclose the terms of this
Agreement, including, but not limited to, the benefits under the Agreement,
except to my spouse, attorneys or financial advisors (who must be informed of
and agree to be bound by the confidentiality provisions contained in this
Agreement before I disclose any information to them about this Agreement), or
where such disclosure is required by law.
<PAGE>

         I agree to return to the Company prior to my last day of employment all
property of the Company, including but not limited to data, lists, information,
memoranda, documents, identification cards, credit cards, parking cards, keys,
computers, fax machines, beepers, phones, and files (including copies thereof).

         I understand and agree that I will not seek re-employment as an
employee, leased employee or independent contractor with the Company or any
Southern Company subsidiary or affiliate during the twenty-four (24) month
period beginning immediately following my execution of this Agreement.

         I have carefully read this agreement and I fully understand all of the
provisions of this Waiver.

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

         I have had the opportunity to review and consider this Waiver for a
period of at least twenty-one (21) days before signing it.

         I understand that I may revoke this Waiver at any time during the seven
(7) calendar day period after I sign this Waiver. In order to revoke this
Waiver, I must deliver written notification of such revocation to the
Compensation Committee. 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. Revocation of this
Waiver will not alter or change the termination of my employment by the Company.

         In signing this Waiver, I am not relying on any representation or
statement (written or oral) not specifically set forth in this Waiver, the
Agreement or by the company or any of its representatives with regard to the
subject matter, basis, or effect of this Waiver or otherwise.

         I was not coerced, threatened, or otherwise forced to sign this Waiver.
I am voluntarily signing and delivering this Waiver of my own free will.

<PAGE>

I understand that by signing this Waiver I am giving up rights I may have. I
understand I do not have to sign this Waiver.

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

                                           ---------------------------
                                           Michael D. Garrett

Sworn to and subscribed to me this

___day of _________, ____

--------------------------
Notary Public

My Commission Expires:

---------------------------
(Notary Seal)

         Acknowledged and Accepted by the Company.

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

<PAGE>

                                    EXHIBIT B

                               SEVERANCE AGREEMENT

     THIS SEVERANCE AGREEMENT ("Agreement") made and entered into by and between
Acquiring   Company   ("Company")   and   Mr.   ________________   ("Executive")
(hereinafter    collectively   referred   to   as   the   "Parties")   effective
______________, 200__.
                                   WITNESSETH:

     WHEREAS,  the  Company  wishes to provide to  Executive  certain  severance
benefits under certain circumstances;

     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:

                            ARTICLE I - DEFINITIONS

1.1 "Annual Compensation" shall Executive's Base Salary plus Target Bonus under
the Company's Short Term Bonus Plan.

1.2 "Base Salary" shall mean Executive's
annual base salary rate during the twelve (12) month period immediately
preceding his Separation Date plus target bonus.

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

1.4 "COBRA Coverage" shall mean any continuation coverage to which
Executive or his dependents may be entitled pursuant to Code Section 4980B.

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

1.6 "Company" shall mean Acquiring Company, its successors and assigns.

1.7 "Employee Outplacement Program" shall mean the program established by the
Company from time to time for the purpose of assisting employees find employment
outside of the Company which provides for the following services:

        (a) self assessment, career decision and goal setting;

        (b) job market research and job sources;

        (c) networking and interviewing skills;

        (d) planning and implementation strategy;

        (e) resume writing, job hunting methods and salary negotiation; and

        (f) office support and job search resources.

1.8 "Employment Date" shall mean the date that Executive is hired by the Company
as a full time employee.

1.9 "Equity Based Bonus Plan" shall mean a plan or
arrangement that provides for the grant to participants of stock options,
restricted stock, stock appreciation rights, phantom stock, phantom stock

<PAGE>

appreciation rights or any other similar rights the terms of which provide a
participant with the potential to receive the benefit of any increase in value
of the underlying equity or notional amount (e.g., number of phantom shares)
from the date of grant through a subsequent date.

1.10 "Good Reason" shall mean, without Executive's express written consent,
after written notice to the Board of Directors, and after a thirty (30) day
opportunity for the Board of Directors to cure, the continuing occurrence of any
of the events described in Subsections (a), (b), (c) or (d) of this Section
1.10.

        (a) Inconsistent Duties. A meaningful and detrimental alteration in
Executive's position or in the nature or status of his responsibilities from
those in effect on the Employment Date.

        (b)  Reduced  Compensation.  A  reduction  of five  percent  (5%) or
more by the Company  in  any  of  the  following   amounts  of  compensation
expressed  in subparagraphs  (i),  (ii) or (iii)  hereof,  except for a less
than ten  percent (10%),   across-the-board  reduction  in  such  compensation
amounts  similarly affecting  ninety-five  percent  (95%) or more of all
employees  of the Company eligible for such compensation:

           (i) Executive's Base Salary;

          (ii) the sum of Executive's Base Salary plus Target Bonus under the
               Company's Short Term Bonus Plan, as in effect on the
               Employment Date; or

         (iii) the sum of Executive's Base Salary plus Target Bonus under the
               Short Term Bonus Plan and Long Term Bonus Plan plus the Target
               Award under the Equity Based Bonus Plan, each of which as in
               effect on the Employment Date.

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

        (d)  Benefits  and Perquisites.

         (i)      Change in Control - Retirement and Welfare Benefits. The
                  taking of any action by the Company that would directly or
                  indirectly cause a Material Reduction in the Retirement and
                  Welfare Benefits to which Executive is entitled under the
                  Company's Retirement and Welfare Benefit plans in which
                  Executive was participating on his Employment Date.

        (ii)      Vacation and Paid Time Off. The failure by the Company to
                  provide Executive with the number of paid vacation days or, if
                  applicable, paid time off days to which Executive is entitled
                  on the basis of years of service with a Southern Entity and
                  the Company in accordance with the Company's normal vacation
                  policy or the paid time off program (whichever applicable) in
                  effect on the Employment Date (except for across-the-board
                  vacation policy or paid time off program changes or policy or

                                       2
<PAGE>

                  program terminations similarly affecting at least ninety-five
                  percent (95%) of all employees of the Company).

1.11 "Group Health Agreement" shall mean the group health plan covering
Executive, as such plan may be amended from time to time.

1.12 "Group Life Insurance Agreement" shall mean the group life insurance
plan covering Executive, as such plan may be amended from time to time.

1.13 "Long Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure performance over a
period of more than twelve months.

1.14 "Material Reduction" shall mean (i) any change in a retirement plan or
arrangement that has the effect of reducing the present value of the projected
benefits to be provided to Executive by five percent (5%) or more, (ii) any five
percent (5%) or more reduction in medical, health and accident and disability
benefits as a percentage of premiums or premium equivalents in accordance with
the Company's prior practice as measured over a period of the three previous
plan years from the Employment Date, or (iii) any five percent (5%) or more
reduction in employer matching funds as a percentage of employee contributions
in accordance with the Company's prior practice measured over a period of the
previous three plan years from the Employment Date.

1.15 "Month of Service"shall mean any calendar month during which Executive
worked at least one (1) hour or was on approved leave of absence while in the
employ of a Southern Entity or Acquiring Company and its affiliates.

1.16 "Pension Plan" shall mean the Company Pension Plan or any successor
thereto, as in effect on the Employment Date.

1.17 "Retirement and Welfare Benefits" shall mean benefits provided by the
following types of plans and arrangements: pension plans, defined contribution
plans (matched savings, profit sharing, money purchase, ESOP, and similar
plans and arrangements), plans providing for death benefits while employed or
retired (life insurance, survivor income, and similar plans and arrangements),
plans providing for short-term disability benefits (including accident and
sick time), plans providing for long-term disability benefits, plans providing
health-care benefits (including reimbursements during active employment or
retirement related to expenses for medical, vision, hearing, dental, and
similar plans and arrangements).

1.18 "Separation Date" shall mean the date on which Executive is separated from
the Company's regular payroll.

1.19 "Short Term Bonus Plan" shall mean any bonus type plan or arrangement
designed to provide incentive based compensation to participants upon the
achievement of objective or subjective goals that measure  performance over a
period of twelve months or less.

1.20 "Southern Entity" shall mean The Southern Company or any of its
subsidiaries and affiliates.

1.21 "Target Bonus" shall mean the amount of incentive compensation expressed
as either a percent of salary or pay, an expected dollar amount, the number of
awards granted or such other quantifiable measure to determine the amount to be
paid or granted under the terms of the respective Short Term Bonus Plan, Long
Term Bonus Plan or Equity Based Bonus Plan as used by the Company to measure
the market competitiveness of its employee compensation programs.

                                       3

<PAGE>

1.22 "Termination for Cause" or "Cause" shall mean Executive's termination of
employment with the Company upon the occurrence of any of the following:

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

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

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

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

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

       (iv) violation of 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;

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

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

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

                 Notwithstanding the foregoing, Executive shall not be deemed to
        have been terminated for Cause unless and until there shall have been
        delivered to him a copy of a resolution duly adopted by the affirmative
        vote of the majority of Board of Directors at a meeting called and held
        for such purpose (after reasonable notice to Executive and an
        opportunity for him, together with counsel, to be heard before the Board
        of Directors), finding that, in the good faith opinion of the Board of
        Directors, Executive was guilty of conduct set forth in Section 1.22(a)
        or (b) hereof and specifying the particulars thereof in detail.

1.23 "Total Disability" shall mean total disability under the terms of the
Pension Plan.

                                       4
<PAGE>

1.24 "Waiver and Release" shall mean the Waiver and Release substantially
in the form of Exhibit A attached hereto.

1.25 "Year of Service" shall mean Executive'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 Executive had a break in service
during his employment with a Southern Entity, he or she will receive credit
under this Agreement for his service prior to such break in service provided the
break in service was less than five (5) years and his service with the Southern
Entity prior to the break exceeded the length of such break in service.

                        ARTICLE II - SEVERANCE BENEFITS

2.1      Eligibility.

      (a)    Except as otherwise provided herein, if Executive's employment
             is involuntarily terminated by the Company at any time during
             the two year period following his Employment Date for reasons
             other than Cause or if Executive shall voluntarily terminate
             his employment with the Company for Good Reason at any time
             during the two year period following his Employment Date,
             Executive shall be entitled to receive the amounts described
             in Section 2.2 hereof, subject to the terms and conditions
             described in this Article II.

      (b)    Limits on Eligibility. Notwithstanding anything to the
             contrary herein, Executive shall not be eligible to receive
             amounts under this Agreement if Executive:

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

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

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

        (iv)      accepts the transfer of his employment to an affiliate of
                  the Company;

        (v)       elects to receive the benefits of any other voluntary or
                  involuntary severance, separation or outplacement program,
                  plan or agreement maintained by the Company in lieu of
                  benefits under this Agreement.

2.2      Benefits. Upon the Company's receipt of an effective Waiver and
Release, Executive shall be entitled to receive the following:

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

     (b) Severance  Benefit.  Executive shall be paid in cash an amount equal to
three times Executive's  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

                                       5
<PAGE>

Company shall pay to Executive 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 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 Executive  under Code  Section 280G exceeds  three (3)
times Executive'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
Executive's Base Amount,  less all other  "parachute  payments" (as such term is
defined  under Code Section 280G)  received by  Executive,  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 Section 2.2(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 a
         nationally recognized firm specializing in federal income taxes as
         selected by the Board of Directors, and such calculations or
         determinations shall be binding upon Executive and the Company.

(c)       Welfare Benefit.

     (i) Except as provided in Section 2.3 hereof,  Executive  shall be eligible
to participate in the Company's Group Health Plan for a period of six (6) months
for each of  Executive's  Years of  Service,  not to exceed a period of five (5)
years,  beginning  on the  first day of the first  month  following  Executive's
Separation  Date unless  otherwise  specifically  provided under such plan, upon
Executive's  payment of both the  Company's and  Executive's  premium under such
plan.  Executive shall also be entitled to elect coverage under the Group Health
Plan for his  dependents  who are  participating  in the  Group  Health  Plan on
Executive's Separation 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  Executive's  extended  medical
coverage under this Section 2.2(c) to the extent such dependents remain eligible
for dependent coverage under the terms of the Group Health Agreement.

     (ii) The extended medical coverage  afforded to Executive  pursuant to this
Section  2.2(c) as well as the premiums to be paid by  Executive  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 Executive in connection  with this
extended  coverage  shall  be due on the  first  day of  each  month;  provided,
however,  that if Executive  fails to pay his premium within thirty (30) days of
its due date, Executive's extended coverage shall be terminated.

                                       6
<PAGE>

     (iii) Any Group Health Plan  coverage  provided  under this Section  2.2(c)
shall be a part of and not in addition to any COBRA Coverage which  Executive or
his dependent may elect.  In the event that  Executive or his dependent  becomes
eligible  to be  covered,  by  virtue  of  re-employment  or  otherwise,  by any
employer-sponsored  group  health plan or is  eligible  for  coverage  under any
government-sponsored  health plan during the above  period,  coverage  under the
Employing Company's Group Health Plan available to Executive or his dependent by
virtue of the  provisions  of this  Article  II shall  terminate,  except as may
otherwise be required by law, and shall not be renewed.  It shall be the duty of
Executive to inform the Company of his  eligibility  to  participate in any such
health plan.

     (iv) Except as  otherwise  provided in Section  2.3 hereof,  regardless  of
whether  Executive  elects the extended  coverage  described  in Section  2.2(c)
hereof,  the Company shall pay to Executive a cash amount equal to the Company's
and Executive's cost of premiums for three (3) years of coverage under the Group
Health Plan and Group Life Insurance Plan.

  (d)Equity  Based  Awards.  Any  Equity  Based  Awards  outstanding  as of
     the Separation  Date which are not  then  exercisable  and
     vested,  shall become fully exercisable and vested;  provided,  that in the
     case of a stock  appreciation  right,  if  Executive  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 Executive  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.

  (e)Incentive  Plans. To the extent that Executive,  as of the Separation Date,
     is a  participant  in any Short Term  Bonus  Plan or Long Term Bonus  Plan,
     Executive  shall be  entitled  to  receive  cash in an amount  equal to his
     awards under such Plans for the period in which the  Separation  Date shall
     have occurred,  at  Executive's  Target Bonus and prorated by the number of
     months which have passed  since the  beginning  of the  performance  period
     until the Separation Date. For this purpose a month shall not be considered
     if the Separation Date occurs on or before the 14th day of the month, and a
     month shall be  considered  if the  Separation  Date occurs on or after the
     15th day of the month.

2.3 Payment of Benefits. The total amount payable under this Article II shall be
paid to Executive in one (1) lump sum payment within two (2) payroll periods of
the later of the following to occur: (a) Executive's Separation Date, or (b) the
tender to the Company by Executive of an effective Waiver and Release (in
substantially 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.

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

                                       7

<PAGE>

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

2.6 No Mitigation. Executive shall have no duty or obligation to seek other
employment following his Separation Date and, except as otherwise provided in
Subsection 2.1(b) hereof, the amounts due Executive hereunder shall not be
reduced or suspended if Executive accepts such subsequent employment.

                           ARTICLE III - ARBITRATION

3.1 General. Any dispute, controversy or claim arising out of or relating to the
Company's obligations to pay severance amounts 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 Article III are not intended to apply to any other disputes, claims or
controversies arising out of or relating to Executive's employment by the
Company or the termination thereof.

3.2 Demand for Arbitration. Arbitration shall be initiated by serving a written
notice of demand for arbitration to Executive, in the case of the Company, or to
the Board of Directors, in the case of Executive.

3.3 Law and Venue.  The  arbitrators  shall  apply the laws of the State in
which the Company's headquarters are located, except to the extent pre-empted by
federal law, excluding any law which would require the use of the law of another
state. The arbitration shall be held in such State.

3.4 Appointment of Arbitrators. Arbitrators shall be appointed within fifteen
(15) business days following service of the demand for arbitration. The number
of arbitrators shall be three. One arbitrator shall be appointed by Executive,
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.

3.5 Costs. The arbitration filing fee shall be paid by Executive. All other
costs of arbitration shall be borne equally by Executive 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 Executive's
favor and Executive is reimbursed legal fees under Section 2.5 hereof.

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

                                       8
<PAGE>

                           ARTICLE IV - MISCELLANEOUS

4.1 Funding of Benefits. Unless the Board of Directors in its discretion
determines otherwise, amounts payable to Executive 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.

4.2 Withholding. There shall be deducted from the payment of any amount 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 Executive entitled to such payment.

4.3 Assignment. Neither Executive nor his beneficiaries shall have any rights to
sell, assign, transfer, encumber, or otherwise convey the right to receive the
payment of any amount 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.

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

         IN   WITNESS   WHEREOF,    the   parties   hereto   have   executed
this   Agreement   this   ____  day of ______________, _____.

                                           ACQUIRING COMPANY

                                  By:      ____________________________________

                                           EXECUTIVE

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

                                       9
<PAGE>

                                    Exhibit A

                               SEVERANCE AGREEMENT
                               Waiver and Release

         The attached Waiver and Release is to be given to Executive upon the
occurrence of an event that triggers eligibility for severance benefits under
the Severance Agreement, as described in Paragraph 2.1(a) of such agreement.

                                       10

<PAGE>

                               Waiver and Release

         I, _________________, understand that I am entitled to receive the
severance benefits described in Article II of the Severance 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 Acquiring Company (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
Acquiring Company and other direct or indirect subsidiaries of Acquiring 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 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.

                                       11
<PAGE>

         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
----.

                                  ---------------------------
                                    Executive

Sworn to and subscribed to me this

___day of _________, ____

--------------------------
Notary Public

My Commission Expires:

---------------------------
(Notary Seal)

         Acknowledged and Accepted by the Company.

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

                                       12

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