UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

__________

 

FORM 11-K

 

FOR ANNUAL REPORTS OF EMPLOYEE STOCK REPURCHASE, SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2007

 

OR

 

o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from to  

 

Commission File Number 1-3526

 

 

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

 

THE SOUTHERN COMPANY

EMPLOYEE SAVINGS PLAN

 

 

B.Name of issuer of the securities held pursuant to the plan

and the address of its principal executive office:

 

 

THE SOUTHERN COMPANY

30 Ivan Allen Jr. Boulevard, NW

Atlanta, Georgia 30308

 


THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN

TABLE OF CONTENTS

Page

EXHIBIT

2

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

3

FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 2007 AND 2006:

 

Statements of Net Assets Available for Benefits

4

Statements of Changes in Net Assets Available for Benefits

5

Notes to Financial Statements

6–12

SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 2007—

13

Form 5500, Schedule H, Part IV, Line 4i—Schedule of Assets (Held at End of Year)

14

SIGNATURE

15

NOTE:     All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

 

 

 

- 1 -

 

 


EXHIBIT

23.1

- Consent of Deloitte & Touche LLP.

 

 

- 2 -

 

 


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Employee Savings Plan Committee and Participants of

The Southern Company Employee Savings Plan

We have audited the accompanying statements of net assets available for benefits of The Southern Company Employee Savings Plan (the “Plan”) as of December 31, 2007 and 2006, and the related statements of changes in net assets available for benefits for the years then ended.  These financial statements are the responsibility of the Plan's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2007 and 2006, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental schedule listed in the Table of Contents is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  This schedule is the responsibility of the Plan's management.  Such schedule has been subjected to the auditing procedures applied in our audit of the basic 2007 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

/s/Deloitte & Touche LLP

Atlanta, GA

June 25, 2008

 

 

- 3 -

 

 


 

THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN

 

 

 

 

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

 

 

AS OF DECEMBER 31, 2007 AND 2006

 

 

 

 

2007

2006

 

ASSETS:

 

 

 

Participant-directed investments at fair value

$ 4,311,371,449

$ 4,149,309,464

 

 

 

Receivables:

 

 

Due from broker for securities sold

1,285,912

1,345,547

Accrued interest

12,949

248,431

 

 

 

Total receivables

1,298,861

1,593,978

 

 

 

Cash

3,243,929

4,010,087

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS AT

 

 

FAIR VALUE

4,315,914,239

4,154,913,529

 

 

 

ADJUSTMENTS FROM FAIR VALUE TO CONTRACT VALUE FOR FULLY BENEFIT-RESPONSIVE INVESTMENT CONTRACTS

5,819,928

10,725,051

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

$ 4,321,734,167

$ 4,165,638,580

 

See notes to financial statements.

 

- 4 -

 

 


THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN

 

 

 

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

 

 

 

2007

2006

 

ADDITIONS:

 

 

 

Investment income:

 

 

 

Interest and dividends

$ 136,434,585

$ 118,064,535

Net appreciation in fair value of investments

170,178,252

284,583,984

 

 

 

Total investment income

306,612,837

402,648,519

 

 

 

Contributions:

 

 

Participants

145,020,437

136,610,854

Participant rollovers

3,826,721

3,682,773

Employer

72,875,876

62,035,613

 

 

 

Total contributions

221,723,034

202,329,240

 

 

 

Transfer from merged plan

         -       

313,324,267

 

 

 

Total additions

528,335,871

918,302,026

 

 

 

DEDUCTIONS:

 

 

Benefits paid to participants

(371,653,405)

(312,379,020)

Administrative expenses

(586,879)

(711,229)

 

 

 

Total deductions

(372,240,284)

(313,090,249)

 

 

 

NET INCREASE

156,095,587

605,211,777

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS:

 

 

Beginning of year

4,165,638,580

3,560,426,803

 

 

 

End of year

$ 4,321,734,167

$ 4,165,638,580

 

See notes to financial statements.

 

- 5 -

 

 


THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

1.

DESCRIPTION OF THE PLAN

The following description of The Southern Company Employee Savings Plan (the “Plan”) is provided for general information purposes only. Readers should refer to the Plan document for more complete information.

General — The Plan is a defined contribution plan administered by The Southern Company Employee Savings Plan Committee (the “Committee”), as designated in the Plan. The Plan covers substantially all employees and certain former employees and retirees of the following subsidiaries of The Southern Company (the “Company”): Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, Savannah Electric and Power Company (“Savannah Electric”), Southern Communications Services, Inc., Southern Company Energy Solutions, LLC, Southern Company Services, Inc. (“Plan Sponsor”), and Southern Nuclear Operating Company, Inc. (collectively, referred to as the “Employing Companies”). Savannah Electric merged into Georgia Power Company effective July 1, 2006, and ceased participating in the Plan as a subsidiary as of that date. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).

Plan Administration — The trustee and recordkeeper of the Plan are Merrill Lynch Bank & Trust Co., FSB (the “Trustee”) and Merrill Lynch, Pierce, Fenner & Smith, Inc., respectively.

Participation — Employees meeting certain criteria, as defined, may elect to participate in the Plan immediately after the employee’s first day of employment.

Effective December 20, 2006, The Southern Company Employee Stock Ownership Plan (the “ESOP”) was merged into the Plan, and assets totaling $313,324,267 were transferred to the Plan. Employees who participated in the ESOP who did not participate in the Plan prior to the merger became participants through the transfer of assets. These participants are not required to contribute to the Plan unless they elect to do so.

Contributions — Participants may elect to contribute total before-tax and after-tax contributions of up to 25% of eligible compensation, as defined by the Plan. Participants may change the percentage of their contributions at any time. Contributions are subject to certain Internal Revenue Code limitations. Participants may also contribute by rolling over to the Plan amounts representing distributions from other qualified defined benefit plans, defined contribution plans, or eligible individual retirement accounts.

The Employing Companies’ contributions (“Employer Matching Contributions”) are discretionary and determined by the Board of Directors of the Plan Sponsor on an annual basis. For the period from January 1, 2006 through October 31, 2006, the Employing Companies contributed, on behalf of the participants, an amount equal to 75% of each participant’s contribution, up to 6% of eligible compensation. Effective November 1, 2006, the Board of Directors increased the Employer Matching Contributions to an amount equal to 85% of each participant’s contribution, up to 6% of eligible

 

- 6 -

 

 


compensation for the remainder of 2006 and the 2007 Plan year. The Board of Directors reserves the right to discontinue or change the Employer Matching Contributions at any time; however, they have not expressed any intent to make any further changes at the present time.

Participant Accounts — Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contributions, the Employer Matching Contributions, and an allocation of Plan earnings based on the participant’s investment elections, and charged with certain administrative expenses and any withdrawals and allocations of Plan losses based on the participant’s investment elections. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

Investment Options — Participants’ contributions may be invested in 1% increments into any of the investment options offered by the Plan. Participants may direct the investment of shares of Company common stock transferred into the Plan in connection with the merger of the ESOP into any of the investment options offered by the Plan. The Plan offers a participant-directed brokerage account that allows participants to purchase publicly traded securities, mutual funds, and fixed income instruments. Participants may change their investment options at any time, with the following exception:

Participants may have had Mirant Corporation common stock in their Plan accounts until June 30, 2006, as a result of the Company’s spin-off of Mirant Corporation in April 2001. In that spin-off, participants with the Company’s common stock in their accounts received a dividend in the form of Mirant Corporation common stock. This investment was held in the Mirant Corporation Stock Fund.

Participants who received Mirant Corporation common stock in the spin-off were given a five-year period ending June 30, 2006 to liquidate their holdings in the Mirant Corporation Stock Fund and reinvest the proceeds in one of the investment options permitted under the Plan. The Plan never permitted additional investments into the Mirant Corporation Stock Fund beyond the shares that participants received as a dividend in the spin-off. No such restriction exists for purchases made through the participant-directed brokerage option. The spin-off did not impact the number of shares of the Company’s common stock held in the participants’ accounts.

In July 2003, Mirant Corporation declared bankruptcy. Mirant Corporation subsequently emerged from bankruptcy on January 3, 2006. Pursuant to Mirant Corporation’s plan of reorganization, the Plan was amended effective January 11, 2006 to accommodate the cancellation of Mirant Corporation common stock and its replacement with newly issued New Mirant Stock and New Mirant Warrants.

The Mirant Corporation Stock Fund was replaced with the New Mirant Stock Fund. The New Mirant Stock Fund only included the shares received as a dividend in the spin-off converted into the new replacement shares and warrants. No additional investment into Mirant Corporation was allowed as a result of the reorganization, except as provided through the participant-directed brokerage option.

As required by the Plan, participants liquidated the New Mirant Stock Fund on or before June 30, 2006 by directing their respective investments in New Mirant Stock and New Mirant Warrants into other investment options provided by the Plan. For participants who failed to take action to liquidate their investment in the New Mirant Stock Fund, the Trustee was instructed to take such action. The proceeds were invested in the Merrill Lynch Retirement Preservation Trust investment option pending further direction from the participant.

 

- 7 -

 

 


Vesting — Participants are immediately vested in the total value of their accounts, both employee contributions and Employer Matching Contributions.

Participant Loans — Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum of $50,000 or 50% of their account balances, whichever is less. The loans are secured by the balance in the participant’s account and bear interest at rates commensurate with prevailing rates as determined by the Committee. Generally, principal and interest are paid ratably through payroll deductions. Participants may also repay an outstanding loan in full at any time.

Payment of Benefits — Upon retirement, a participant may elect to receive either a lump-sum amount equal to the value of the participant’s account or annual installments over a period of up to 20 years. On termination of service due to death or disability, or for other reasons, a participant or beneficiary may receive the value of his or her account as a lump-sum distribution.

Each participant may elect to receive a cash distribution of all or a portion of the dividends payable on the shares of the Company’s common stock credited to the participant’s account as of the record date of the dividend. The dividends payable on the shares of the Company’s common stock credited to the account of a participant who does not elect to receive a cash distribution are reinvested in the participant’s account in shares of the Company’s common stock. Payments of the cash distributions for dividends payable are made as soon as administratively practicable after the payable date of the dividend but no later than 90 days after the end of the Plan year which includes such payable date. A participant’s election to receive cash distributions of dividends payable on the Company’s common stock is revoked automatically upon his or her death.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting — The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.

Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Plan management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Risks and Uncertainties — The Plan utilizes various investment instruments including common collective trust funds and common and preferred stocks. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.

Investment Valuation and Income Recognition — The Plan’s investments are stated at fair value. Quoted market prices are used to value all readily marketable securities. Shares of common collective trust funds are reported at the net asset value of shares held by the Plan at year-end, as determined by the Trustee. The net asset value of shares in common collective trust funds is determined by Merrill Lynch Bank & Trust Co., FSB based on the fair market value of the underlying assets. Common collective trust funds with underlying investments in investment contracts are valued at fair market value of the underlying investments and then adjusted by the Plan Sponsor to contract value. Participant loans are valued at the outstanding loan balance. Purchases and sales of securities are recorded on a trade-date

 

- 8 -

 

 


basis. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date.

The Plan offers a stable value investment option, the Merrill Lynch Retirement Preservation Trust, to participants. This fund may invest in guaranteed investment contracts (“GICs”), separate account GICs and synthetic GICs. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. Contract value represents contributions made to the fund plus earnings less participant withdrawals.

In accordance with the Financial Accounting Standards Board (“FASB”) Staff Position AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined–Contribution Health and Welfare and Pension Plans (the “FSP”), the statements of net assets available for benefits presents the Merrill Lynch Retirement Preservation Trust holding these investment contracts at fair value as well as an additional line item showing an adjustment of fully benefit-responsive investment contracts from fair value to contract value. The statement of changes in net assets available for benefits is presented on a contract value basis and was not affected by the FSP.

New Accounting Pronouncements — In September 2006, the FASB issued Statement on Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS No. 157”). SFAS No. 157 establishes a single authorative definition of fair value, sets a framework for measuring fair value, and requires additional disclosures about fair value measurement. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 17, 2007. Plan management has not completed the process of evaluating the impact that will result from adopting SFAS No. 157. Plan management is therefore unable to disclose the impact that adopting SFAS No. 157 will have on the Plan’s net assets available for benefits and changes in net assets available for benefits when such statement is adopted. The Plan will adopt SFAS No. 157 to be effective January 1, 2008.

Administrative and Investment Management Fees — Brokerage commissions, transfer taxes, and any other expenses resulting from purchases and sales of securities within investment funds are charged to the various investment funds. Commissions on individual securities traded through the participant-directed brokerage option are charged to the participant making the trade.

In addition, investment management fees for all funds, except Company common stock and new Mirant common stock, are charged to Plan assets. For participant contributions prior to November 1, 2006, investment management fees for the Merrill Lynch Retirement Preservation Trust, Merrill Lynch Equity Index Trust Tier 10, and Northern Trust Collective Aggregate Bond Index Fund Tier N (formerly Merrill Lynch Aggregate Bond Index Trust) were paid by the Company.

Certain reasonable Plan administration expenses approved in accordance with Plan requirements may be paid from Plan assets.

Payments of Benefits — Benefit payments to participants are recorded upon distribution. Amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not yet been paid were $3,243,929 and $4,010,087 as of December 31, 2007 and 2006, respectively.

 

- 9 -

 

 


 

3.

INVESTMENTS

The Plan’s investments, at fair value, that represented 5% or more of the Plan’s net assets available for benefits as of December 31, 2007 and 2006 are as follows:

 

2007

 

2006

 

Number of

Fair

 

Number of

Fair

 

Shares/Units

Value

 

Shares/Units

Value

 

 

 

 

 

 

Southern Company

 

 

 

 

 

common stock

57,712,285

$2,236,351,055

 

62,125,293

$2,289,938,300

Merrill Lynch Small Cap Index Plus Trust

12,481,118

247,999,824

 

12,538,881

253,786,941

Merrill Lynch Equity

 

 

 

 

 

Index Trust Tier 10

5,863,298

667,008,776

 

5,818,108

625,213,853

Merrill Lynch Retirement

 

 

 

 

 

Preservation Trust

633,912,634

628,101,706

 

575,408,967

564,683,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the years ended December 31, 2007 and 2006, the Plan’s investments (including gains and losses on investments bought and sold as well as held during the year) appreciated (depreciated) in value as follows:

 

2007

2006

 

 

 

Common stocks

$118,967,629

$133,737,849

Preferred stocks

378

695

Merrill Lynch Equity Index Trust Tier 10

33,694,460

58,853,465

Merrill Lynch Small Cap Index Plus Trust

(4,471,614)

21,755,537

Merrill Lynch Intl. Index Plus Trust

14,157,450

57,332,622

Northern Trust Collective Aggregate Bond

Index Trust Fund Tier N (formerly Merrill

Lynch Aggregate Bond Index Trust)

5,434,140

12,975,834

Other

2,395,809

(72,018)

 

 

 

Total

$170,178,252

$284,583,984

 

4.

EXEMPT PARTY-IN-INTEREST TRANSACTIONS

Certain Plan investments are units of common collective trust funds managed by Merrill Lynch Investment Managers. Merrill Lynch Bank & Trust Co., FSB is the Trustee as defined by the Plan, and therefore, these transactions qualify as party-in-interest transactions. Fees paid by the Plan for investment management services were included as a reduction of the return earned on each fund.

At December 31, 2007 and 2006, the Plan held 57,712,285 and 62,125,293 shares, respectively, of common stock of the Company at a fair value of $2,236,351,055 and $2,289,938,300, respectively, with a cost basis of $1,266,059,403 and $1,283,052,259, respectively. During the years ended December 31,

 

- 10 -

 

 


2007 and 2006, the Plan recorded related dividend income of $97,400,713 and $85,647,556, respectively.

5.

PLAN TERMINATION

Although it has not expressed any intention to do so, the Plan Sponsor has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event that the Plan is terminated, participants are 100% vested in their accounts.

6.

FEDERAL INCOME TAX STATUS

The Internal Revenue Service has determined and informed the Plan Sponsor by a letter dated January 31, 2003 that the Plan and related trust were designed in accordance with the applicable regulations of the Internal Revenue Code. The Plan has been amended since receiving the determination letter; however, the Plan Sponsor and the Plan administrator believe that the Plan is currently designed and operated in compliance with the applicable requirements of the Internal Revenue Code, and the Plan and related trust continue to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

7.

RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The net assets available for benefits of the Plan include $3,243,929 and $4,010,087 for participants who had requested distributions from their accounts but had not yet been paid at December 31, 2007 and 2006, respectively. These amounts are reflected as benefit claims payable and are included in benefit payments to participants or beneficiaries in the Form 5500 for the Plan years ended December 31, 2007 and 2006, respectively.

The net assets available for benefits of the Plan include a stable value investment option recorded at contract value. Investments in the Form 5500 reflect adjustments of $5,819,928 and $10,725,051 to record the stable value investment option at fair value at December 31, 2007 and 2006, respectively. Income in the Form 5500 was decreased by $5,819,928 and $10,725,051 to adjust the investment to fair value for the years ended December 31, 2007 and 2006, respectively.

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 as of December 31, 2007 and 2006:

 

 

 

2007

 

2006

 

Net assets available for benefits per the financial statements

 

$4,321,734,167

 

$4,165,638,580

 

Benefit claims payable

(3,243,929)

(4,010,087)

Adjustments from Fair Value to Contract Value for fully benefit-
   responsive investment contracts

 

(5,819,928)

 

(10,725,051)

 

Net assets available for benefits per the Form 5500

 

$4,312,670,310

 

$4,150,903,442

 

 

- 11 -

 

 


Reconciliations of benefits paid to participants and total income per the financial statements to the Form 5500 for the year ended December 31, 2007 are as follows:

 

 

 

Benefits paid to participants per the financial statements

$371,653,405

Benefits payable to participants:

 

Beginning of year

(4,010,087)

End of year

3,243,929

 

 

Benefits paid to participants per Form 5500

$ 370,887,247

 

 

Total additions per the financial statements

$528,335,871

Adjustment from contract value to fair value for fully benefit-responsive investment contracts:

 

Beginning of year

10,725,051

End of year

(5,819,928)

 

Total income per the Form 5500

$ 533,240,994

 

******

 

 

- 12 -

 

 


SUPPLEMENTAL SCHEDULE

(See Independent Registered Public Accounting Firm Report)

 

 

- 13 -

 

 


 

THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN

 

 

 

 

 

 

 

FORM 5500, SCHEDULE H, PART IV, LINE 4i — SCHEDULE OF ASSETS

 

 

(HELD AT END OF YEAR)

 

 

 

AS OF DECEMBER 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

(a)

 

 

(b) Identity of Issue, Borrower,

Lessor, or Similar Party

(c) Description of Investment,

Including Maturity Date,

Rate of Interest, Collateral,

Par, or Maturity Value

 

 

 

(d) Cost

 

 

(e) Current Value

 

 

 

 

 

*

The Southern Company

Common stock, 57,712,285 shares

**

$2,236,351,055

*

Merrill Lynch Equity Index Trust Tier 10

Common collective trust, 5,863,298 shares

**

667,008,776

*

Merrill Lynch Retirement Preservation Trust

Common collective trust, 633,921,634 shares

**

628,101,706

*

Merrill Lynch Small Cap Index Plus Trust

Common collective trust, 12,481,118 shares

**

247,999,824

*

Merrill Lynch Intl. Index Plus Trust

Common collective trust, 7,941,902 shares

**

204,345,151

 

Northern Trust Collective Aggregate Bond
Index Fund Tier N (formerly Merrill
Lynch Aggregate Bond Index Trust)

Common collective trust, 315,524 shares

**

114,690,139

*

Participants

Loans to participants,

 

 

 

 

with interest rates ranging

 

 

 

 

from 4.0% to 9.5%,

 

 

 

 

maturing January 4, 2008

 

 

 

 

to December 30, 2022

**

82,334,879

 

Various

Self-directed accounts

**

130,539,921

 

 

 

 

 

 

Total investments

 

 

$4,311,371,449

 

 

 

 

 

 

 

 

 

 

*

Party-in-interest.

 

 

 

**

Cost information is not required for participant-directed investments and, therefore, is not included.

 

 

 

- 14 -

 

 


SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, The Southern Company Employee Savings Plan Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

THE SOUTHERN COMPANY

 

EMPLOYEE SAVINGS PLAN

 

 

 

 

/s/Marsha S. Johnson

 

Marsha S. Johnson, Chair

 

The Southern Company Employee

 

Savings Plan Committee

 

June 27, 2008

 

 

- 15 -