Southern Company (NYSE: SO) today reported second quarter earnings of $510.2 million, or 62 cents a share, compared with $478.6 million, or 61 cents a share, in the second quarter of 2009.

For the six months ended June 30, Southern Company's earnings were $1.0 billion, or $1.22 a share, compared with $604.3 million, or 77 cents a share, for the same period a year ago.

Earnings for the six months ended June 30, 2009, included a charge of 26 cents a share, or $202 million,  related to a settlement agreement with MC Asset Recovery LLC to resolve a lawsuit arising out of the 2003 bankruptcy of Mirant Corp., a Southern Company subsidiary until its 2001 spin-off.  Excluding the impact of the 2009 settlement, Southern Company earned $1.22 a share for the first six months of 2010, compared with $1.03 a share for the same period in 2009.

Weather was a primary factor driving earnings, as the Southeast experienced one of the warmest second quarters in more than a century. The economic recovery contributed positively to earnings. Industrial sales, which were up 13 percent for the second quarter compared to the same period in 2009, reflect improvement in industrial activity in the Southeast.

"We continue to see positive economic trends, particularly among our industrial and manufacturing customers," said Chairman, President and CEO David M. Ratcliffe. "Our businesses continued to perform well overall in the second quarter, giving us solid results and keeping the company on track to deliver on our financial and operational goals for the year."

Revenues associated with the recovery of investments in environmental equipment and reduced depreciation and amortization also contributed positively to second quarter earnings. The positive earnings drivers were partially offset by an increase in non-fuel operations and maintenance expenses, reflecting a return to normal ongoing levels as the economic recovery continues. Other negative earnings drivers include an income decrease as a result of a gain in the second quarter of 2009 related to the early termination of two international leveraged-lease investments and an increase in the number of Southern Company shares outstanding.

Revenues for the second quarter of 2010 were $4.21 billion, compared with $3.89 billion in the same period a year ago, an increase of 8.3 percent. For the first six months of the year, revenues totaled $8.36 billion, compared with $7.55 billion in the same period a year ago, a 10.8 percent increase.

In the second quarter, kilowatt-hour sales to retail customers in Southern Company's four-state service area increased 6.4 percent, compared with the second quarter of 2009. Residential electricity sales increased 5.8 percent. Electricity sales to commercial customers increased 1.7 percent, and industrial sales increased 13.0 percent.

Year-to-date, kilowatt-hour sales to retail customers increased 8.4 percent compared with sales during the first six months of 2009. Residential electricity sales increased 13.3 percent. Electricity sales to commercial customers increased 2.5 percent, and industrial sales increased 9.9 percent.

Total energy sales to Southern Company's customers in the Southeast, including wholesale sales, increased 4.1 percent in the second quarter of 2010 compared with the same period of 2009. Year-to-date, total sales of electricity increased 7.2 percent as compared with the same period in 2009.

Southern Company's financial analyst call will be at 1 p.m. EDT July 28, at which time Ratcliffe and Chief Financial Officer Paul Bowers will discuss earnings and earnings guidance as well as a general business update. Investors, media and the public may listen to a live webcast of the call and view slides in conjunction with the call at www.southerncompany.com. A replay of the webcast only will be available at the site for 12 months.

Southern Company has also posted on its Web site detailed financial information on its second quarter performance. These materials are available at www.southerncompany.com.

With 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are below the national average. Southern Company is consistently listed among the top U.S. electric service providers in customer satisfaction by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com.