southern 2006 2nd

Southern Company reported second quarter earnings of $385.2 million, or 52 cents per share, driven by increased electricity usage from warm weather and customer growth. Total revenues for the quarter increased 15.1% year-over-year to $3.59 billion. However, earnings were partially offset by higher operations and maintenance expenses and the negative impact of rising oil prices on Southern Company's synthetic fuels investments. Looking forward, Southern Company expects earnings per share growth of 5% annually and has set a goal of earning at least $300 million annually from its competitive wholesale generation business by 2007.