Southern Companytoday reported first quarter earnings of$422.3 million, or50 centsa share, compared with$494.5 million, or60 centsa share, for the same period a year ago.

Revenues for the first quarter were$4.01 billion, compared with$4.16 billionfor the same period a year ago, a 3.5 percent decrease.

Earnings were negatively affected by a return to more normal temperatures for the period, as compared with abnormally cold weather during the same period in 2010. Earnings were further negatively affected by a reduction in wholesale revenue, due to the scheduled expiration of a long-term contract for a portion of a major generating facility inAlabamathat was subsequently transferred to retail jurisdiction. Increased operations and maintenance expenses and higher depreciation and amortization also contributed negatively.

Earnings were positively influenced by better-than-expected growth in the industrial sector, as well as a recent regulatory action inGeorgiathat supports investment in advanced technologies, cleaner natural gas generation and new environmental controls.

"Activity among our industrial customers has nearly reached pre-recession levels, and we expect that momentum to continue as the year progresses," said Southern Company Chairman, President and CEOThomas A. Fanning. "While the overall pace of economic recovery remains measured, we are confident in the fundamental strength of our service territory and in our core business strategy focused on exceptional customer satisfaction, industry-leading reliability and prices below the national average."

As evidence of the industrial growth trend, full-year industrial sales for 2010 increased 7.7 percent compared with 2009, and were further bolstered by a 6.7 percent increase in the first quarter of 2011 compared with the first quarter of 2010. Meanwhile, a recent Southern Company survey shows that in 2011, one-third of the largest industrial customers inGeorgiaexpect increases in employment and 60 percent anticipate increases in production.

Kilowatt-hour sales to retail customers in Southern Company's four-state service area decreased 3.9 percent in the first quarter of 2011 compared with the first quarter of 2010. Residential electricity sales decreased 12.6 percent, while commercial sales decreased 3.3 percent.

Total energy sales to Southern Company's customers in the Southeast, including wholesale sales, decreased 7.5 percent in the first quarter of 2011 compared with the same period in 2010.