Mississippi Power statement on Aug. 6 PSC meeting

Today, the Mississippi Public Service Commission addressed two issues related to Mississippi Power.

First, the Commission ordered a refund process for Kemper-related rates that includes a bill credit with the option for customers to choose a refund check. The bill credit is the safest, quickest and most efficient method of providing refunds within the 120-day period set forth by the Commission.

Former customers will receive a refund check, mailed to their last known mailing address.

Mississippi Power also presented its interim rate recovery plan because the company is facing an impending cash shortfall, has an inability to access outside financing and faces the potential for further degraded credit ratings.

The Commission has taken the company’s request under advisement and will hold a public meeting on Thursday, Aug. 13 when we hope a decision on our request will be made.

We have maintained – since first proposing the Kemper County energy facility – that rate recovery during construction was required, which the Commission acknowledged and approved. Mississippi Power currently has received no permanent cost recovery for the construction of the Kemper County energy facility.

We believe the facts the company presented will allow the Commission to determine that interim rates are in the best interest of customers and help maintain Mississippi Power’s ability to provide the quality service our customers expect.

As always, the company is focused on what is in the best interests of our customers. We are prepared to work closely with the Commission to comply with its requirements while also delivering the lowest-cost solution to our customers.

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Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this communication is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the pending customer refund and the effect of the Mississippi PSC’s ruling on the interim rate request. Mississippi Power cautions that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Mississippi Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Mississippi Power’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to the Mississippi PSC’s review of Mississippi Power’s filing regarding retail base rates; changes in tax and other laws and regulations to which Mississippi Power is subject as well as changes in application of existing laws and regulations; the ability to control costs and avoid cost overruns during the development and construction of facilities, which include the development and construction of generating facilities with designs that have not been finalized or previously constructed, including changes in labor costs and productivity, adverse weather conditions, shortages and inconsistent quality of equipment, materials, and labor, contractor or supplier delay, non-performance under construction or other agreements, operational readiness, including specialized operator training and required site safety programs, unforeseen engineering or design problems, start-up activities (including major equipment failure and system integration), and/or operational performance (including additional costs to satisfy any operational parameters ultimately adopted by the Mississippi Public Service Commission (“PSC”)); the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; advances in technology; actions related to cost recovery for the Kemper IGCC, including actions relating to proposed securitization, Mississippi PSC approval of a rate recovery plan, the ability to utilize bonus depreciation, which currently requires that assets be placed in service in 2015, and satisfaction of requirements to utilize investment tax credits and grants; the ultimate impact of the termination of the proposed sale of an interest in the Kemper IGCC to South Mississippi Electric Power Association; Mississippi PSC review of the prudence of Kemper IGCC costs; the ultimate impact of the 2015 decision of the Mississippi Supreme Court, the Mississippi PSC’s order implementing such decision and any further related legal or regulatory proceedings; and the ability of counterparties of Mississippi Power to make payments as and when due and to perform as required. Mississippi Power expressly disclaims any obligation to update any forward-looking information.