2018 Annual Meeting of Stockholders

Letter to Stockholders

Thomas A. Fanning
Chairman, President and Chief Executive Officer

We believe Southern Company is solidly positioned to deliver on its value proposition as our customer- and community-focused business model continues to serve us well.

Dear Fellow Stockholders:

You are invited to attend the 2018 Annual Meeting of Stockholders at 10:00 a.m., ET, on Wednesday, May 23, 2018, at The Lodge Conference Center at Callaway Gardens, Pine Mountain, Georgia, where we will discuss, among other things, Southern Company’s 2017 performance.

In 2017, our transmission system recorded the best operational performance in Southern Company’s history, with fewer outages and faster response times than ever before. We expanded automation and communication throughout the system with the installation of fiber networks that function to enhance flexibility in serving load and improve reliability. We also continued our track record of outstanding storm response during an especially active hurricane season.

Our generation fleet performed exceptionally well in 2017, with a record low coal burn. In 2005, our use of coal for power generation represented 71% of our fuel mix. This past year, coal represented only 28% of our energy mix. Our gas operations also performed exceptionally well in 2017, as evidenced by Southern Company Gas’ high customer satisfaction results while replacing over 500 miles of aging pipeline infrastructure and continuing the safe and reliable delivery of natural gas.

In 2017, Southern Company was once again recognized by DiversityInc as one of the “Top 50 Companies for Diversity” and number one on its list of “Top 10 Companies for Progress” for the second consecutive year. As I shared with you last year, this recognition is especially significant because it testifies that we are not only a top company for diversity, but we are considered the number one company in America in which those diverse employees are afforded an opportunity to advance their careers.

Diversity and inclusion continue to be key focus areas throughout the Southern Company system. I was pleased in 2017 to join with over 350 other CEOs in signing the CEO Action for Diversity & Inclusion™ pledge, committing to cultivate a workplace environment where diverse perspectives are welcomed and employees feel comfortable and valued. Once again, we earned a perfect score from the Human Rights Campaign on their Workplace Equality Index for 2018.

We are taking advantage of the notice and access rules of the Securities and Exchange Commission (SEC) that allow us to furnish our proxy materials to you over the internet instead of mailing paper copies to each stockholder. We are mailing a Notice of Internet Availability of Proxy Materials beginning on or about April 6, 2018 to certain stockholders. The Notice contains instructions on how to access the proxy materials and vote your proxy. A webcast of the Annual Meeting will be available at investor.southerncompany.com, starting at 10:00 a.m., ET, on Wednesday, May 23, 2018. A replay will be available following the meeting.

Your vote is important. We urge you to vote promptly, even if you plan to attend the annual meeting.

Thank you for your continued support of Southern Company.

Thomas A. Fanning
Chairman, President and Chief Executive Officer