Southern Power Company Fixed Income Update June 20, 2016 Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this presentation is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning Southern Power Company’s (“Southern Power”) corporate strategy, future renewable investment opportunities, completion of announced construction projects and acquisitions, the anticipated timing of completion of Southern Company’s acquisition of AGL Resources and anticipated operational performance. Southern Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Power’s Annual Report on Form 10-K for the year ended December 31, 2015, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the impact of recent and future federal and state regulatory changes, including legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry, environmental laws regulating emissions, discharges, and disposal to air, water, and land, and also changes in tax and other laws and regulations to which Southern Power or its subsidiaries are subject, as well as changes in application of existing laws and regulations; current and future litigation, regulatory investigations, proceedings, or inquiries, including, without limitation, Internal Revenue Service and state tax audits; the effects, extent, and timing of the entry of additional competition in the markets in which Southern Power or its subsidiaries operate; variations in demand for electricity, including those relating to weather, the general economy and recovery from the last recession, population and business growth (and declines), the effects of energy conservation and efficiency measures, including from the development and deployment of alternative energy sources such as self-generation and distributed generation technologies, and any potential economic impacts resulting from federal fiscal decisions; available sources and costs of fuels; effects of inflation; the ability to control costs and avoid cost overruns during the development and construction of generating facilities, to construct facilities in accordance with the requirements of permits and licenses, and to satisfy any operational and environmental performance standards, including the requirements of tax credits and other incentives; advances in technology; state and federal rate regulations; the ability to successfully operate generating facilities and the successful performance of necessary corporate functions; internal restructuring or other restructuring options that may be pursued; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Power; risks to the completion of Southern Company’s pending acquisition of AGL Resources, including the failure to receive, on a timely basis or otherwise, the required approvals by government or regulatory agencies, and the risk that a condition to closing may not be satisfied; the ability of counterparties of Southern Power or its subsidiaries to make payments as and when due and to perform as required; the ability to obtain new short- and long-term contracts with wholesale customers; the direct or indirect effect on Southern Power’s business resulting from cyber intrusion or terrorist incidents and the threat of terrorist incidents; interest rate fluctuations and financial market conditions and the results of financing efforts; changes in Southern Power’s credit ratings, including impacts on interest rates, access to capital markets, and collateral requirements; the impacts of any sovereign financial issues, including impacts on interest rates, access to capital markets, impacts on currency exchange rates, counterparty performance, and the economy in general; the ability of Southern Power to obtain additional generating capacity (or sell excess generating capacity) at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes and other storms, droughts, pandemic health events such as influenzas, or other similar occurrences; the direct or indirect effects on Southern Power’s business resulting from incidents affecting the U.S. electric grid or operation of generating resources; and the effect of accounting pronouncements issued periodically by standard-setting bodies.

2 Southern Company – Parent of Southern Power

• Southern Power is a subsidiary of Southern Company, one of the largest electric utilities in the world – Each major subsidiary of Southern Company, including Southern Power, issues its own debt with no parent or cross-affiliate guarantees

Electricite Dominion Southern National Duke E.ON Exelon Enel NextEra de France Resources Company Grid Energy

Ticker EOANGR EDF EXC ENELIM D SO NGGLN NEE DUK

Düsseldorf, Paris, Richmond, Warwick, Juno Charlotte, Headquarters Chicago, IL Rome, Italy Atlanta, GA Germany France VA UK Beach, FL NC Market Cap $19.6 $25.5 $31.6 $46.0 $44.5 $46.4 $54.7 $55.4 $53.9 (bn)1

LT Debt (bn)1,2,3 $19.7 $58.5 $30.0 $48.5 $24.2 $34.4 $35.9 $27.8 $38.2

1 Assumes 1.11 EUR/USD and 1.45 GBP/USD. Market Cap as of May 31 2016 2 Source: Most recent filing of the respective Company as of May 31, 2016, including Company 10-K, 10-Q, Company websites, or Company Reports; Does not include current portion of LTD or Securities due within one year. 3 For Southern Company, reflects net adjustment of $8.3 billion due to parent debt issuance and retirement of subsidiary debt subsequent to most recent quarterly filing 3 Southern Power Overview

4 Retail Electric Operating Companies 1 Wholesale Electric 1 Natural Gas Operating Company Operating Company Alabama Power Georgia Power (Pending Acquisition)1 Company Company Southern Power

Gulf Power Mississippi Power Company AGL Resources Company Company (Issuing Entity) (BBB+/Baa1/BBB+)2

• Southern Power is a leading U.S. wholesale clean energy provider meeting the electricity needs of public power entities and investor-owned utilities

• Southern Power currently owns 36 generation facilities totaling 10,661MW of 3 capacity (natural gas, solar, wind and biomass)

– Southern Power owns no coal or nuclear facilities

(1) Southern Company’s acquisition of AGL Resources is expected to close in the second half of 2016 (2) Senior Unsecured Ratings per S&P/Moody’s/Fitch. Outlooks are Negative/Stable/Stable, respectively. A securities rating is not a recommendation to buy, sell or hold a security and may be subject to revision or withdrawal at any time. (3) Reflects facilities owned, under construction or under contract to purchase as of March 31, 2016 4 Southern Power Business Model

• Sell generating capacity and energy covered by long-term contracts – Contracted revenues are not linked to market power prices • Minimize fuel and transmission risks using pass-through contract provisions • Execute contracts with strong credit support Illustrative Contract Structure: Natural Gas and Biomass

Sample Customers: Fixed $/kW monthly capacity charge Non-Affiliate IOUs (Duke Energy) Energy as scheduled by customer Affiliate IOUs (Georgia Power) Municipalities (Orlando Utilities) Cooperatives (Seminole Electric) Fuel pass-through revenue

Illustrative Contract Structure: Solar and Wind Sample Customers:

Energy as generated Non-Affiliate IOUs (Nevada Power) Affiliate IOUs (Georgia Power) Fixed $/MWh energy charge Municipalities (City of Austin TX) Cooperatives (Flint EMC)

5 Southern Power Growth

2001 to 2010: Built and acquired natural gas assets in the Southeast U.S. • 7,880 MW1 • $3.2B2 of investment • Assets in 4 states

2010 to 2014: Entered renewables space in Southwest U.S. • 1st solar acquisition in 2010; Biomass in 2012 • Incremental 1,194MW1 across 10 projects • $2.2B2 of incremental investment ($5.4B total investment) • Assets in 8 states

2015 to 2016: Significant continued growth in renewables space • 1st wind acquisition in 2015 • Incremental 1,587MW1,3 across 18 projects • $4.1B2,3 of incremental investment ($9.5B total investment) • Assets in 10 states

(1) MW numbers represent and reflect Southern Power and its subsidiaries’ ownership interest. (2) Represents total gross investment on Southern Power consolidated financial statements adjusted for non-controlling interest (3) Reflects facilities owned, under construction or under contract to purchase as of March 31, 2016 6

Southern Power – A Nationwide Clean Energy Fleet

Diversified Portfolio •G Natural Gas 1,2 2 •S Solar Type MW % Net Book Value % Natural Gas 8,600 81% $2.4B 26% W• Wind W Solar 1,454 14% $5.8B 61% •B Biomass Passadumkeag Wind 491 5% $0.9B 9% • Under Construction Biomass 115 1% $0.4B 4% Total 10,661 100% $9.4B 100%

S North Star S Tranquillity S Apex Spectrum S Granville S S Desert Stateline Cimarron S Grant Wind W W Kay Wind G Rowan Cleveland G S Imperial Valley Dahlberg S Pawpaw S Campo Verde G Wansley S Butler S Adobe S Calipatria G Addison G S Sandhills S Macho Lost Hills-Blackwell S G G Springs Harris S Butler Solar Farm S Garland S Nacogdoches B Decatur Parkway S Morelos del Sol Franklin S S East Pecos Decatur County S Roserock Stanton G (1) MW numbers represent nameplate capacity and reflect Southern Power and its subsidiaries’ ownership interest. G Oleander (2) Reflects facilities owned, under construction or under contract for purchase as of March 31, 2016 Diversified portfolio with strong contract coverage with high credit quality counterparties

7 Strong contract coverage with high credit quality counterparties

Contract Coverage Profile1 Counterparty Credit Profile1 Investment2 Weighted Contract Metrics: • 57% of contracted investment2 is with 5-year coverage: 91% counterparties rated A- or better • All counterparties have an investment 10-year coverage: 90% grade rating or ratemaking authority Average contract length: 18 years

Investment2 Weighted Contract Coverage by Customer Type Investment2 Weighted Contract Coverage by Credit Rating3

Other Public Power 8% Entities with Southern Ratemaking Company Authority Affiliates 10% 25%

BBB+ to Co-ops / AAA to A- BBB- Municipalities 57% 35% 33% Investor Owned Utilities 32%

(1) As of March 31, 2016 (2) Investment based on the respective generation facilities' net book value (or expected in-service value for facilities under construction or being acquired) as the investment amount (3) Percentage based on 5-year contract coverage as of March 31, 2016 for all contracts greater than 1 year in length 8 Superior Gas Fleet Performance

Peak Season EFOR (%) Contract Availability 99.97% 99.97% 2010-2014 Industry Average = 3.9% 99.91% 99.90%

99.80%

0.63% 0.56%

0.36% 0.29%

0.18%

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Peak Season Combined-Cycle Equivalent Forced Outage Rate Contract availability measures the percentage of scheduled hours delivered Delivering on key operating performance metrics helps to ensure contractual commitments to customers are met

9 Significant Green Portfolio Impact

• As of March 31, 2016, Southern Power’s operating solar and wind facilities had generated more than 3.2 million MWh since beginning operations • Produced enough electricity to power the equivalent of 292,000 average US homes for one year1 • Offset approximately 2.2 million metric tons2

of CO2 • Equivalent to taking over 460,000 passenger vehicles off the road or planting 56 million trees2 • Southern Power’s Green impact will increase as construction projects are completed and begin generating electricity

(1) Per the EIA annual average US residential electricity consumption; shown since beginning operations (2) Per the EPA Environmental Impacts Calculator; shown since beginning operations 10 Southern Power Financial Highlights – A Growing Business

($ millions) 20131 20141 20151 Total Assets $4,429 $5,233 $8,905

Common Stockholder’s Equity $1,564 $1,752 $2,483 Total Debt2 $1,620 $1,805 $3,259 Total Capitalization2 $3,184 $3,557 $5,742

Debt to Capitalization2 50.9% 50.7% 56.8% CFO to Debt2 37.3% 33.4% 30.8%

Net Income Attributable to the Company $166 $172 $215 ROE 10.8% 10.4% 10.2% • Southern Power has seen significant growth – Total assets doubled from 2013 to 2015 • Southern Power has funded growth with a mix of debt and equity • Cash flow credit metric has been consistent with current credit rating • Growth in net income has delivered a 3 year average ROE of 10.5% from 2013 to 2015

1 As of December 31 for each year 2 See Appendix for reconciliation of non-GAAP financial measures, as well as a presentation of net cash provided from operating activities (CFO), net cash used for investing activities, and net cash provided from financing activities as determined in accordance with GAAP 11 Southern Power Credit Highlights

• Committed to maintaining high credit quality • Current credit ratings are Baa1/BBB+/BBB+ from Moody’s/S&P/Fitch1 – Ratings were affirmed by all 3 agencies in May 2016 • Credit quality is supported by long-term sales contracts – 91% of investment covered by contracts over next 5 years (2016 – 2020)2 – 90% of investment covered by contracts over next 10 years (2016 – 2025)2 – Average investment weighted contract length of 18 years • Long-term contracts are with high credit quality counterparties3 – 57% AAA to A- – 33% BBB+ to BBB- – 10% Public Power Entities with Ratemaking Authority • Southern Power targets a capital structure of 55% to 60% debt which is supportive of our current credit ratings

(1) Senior Unsecured Ratings per S&P/Moody’s/Fitch. Outlooks are Negative/Stable/Stable, respectively. A securities rating is not a recommendation to buy, sell or hold a security and may be subject to revision or withdrawal at any time. (2) Ratio of investment under contract to total investment using the respective generation facilities' net book value (or expected in-service value for facilities under construction or being acquired) as the investment amount. (3) Percentage based on 5-year contract coverage as of March 31, 2016 for all contracts greater than 1 year in length 12 Southern Power Capital Structure

• Principal sources of Southern Power’s capital include cash from operations, Southern Power corporate long-term debt, and equity contributions from Southern Company to target a capital structure of 55% to 60% debt – Simple, transparent capital structure – All long-term debt is senior unsecured (no long-term project financing)

Q1 2016 ($ in millions) (Mar-31-2016) Total Capital $6,002 Outstanding Debt Summary Issue Date Total Equity1 $2,466 Bank and Short Term Notes2 $811 Total Debt $3,536 2006-2015 Senior Notes3 $1,725 Debt / Total Capital Ratio1 58.9% 2015 Green Bond Senior Notes3 $1,000

• Southern Power became the first investment grade U.S. power producer to issue a Green Bond with $1.0B Green Bond issuance in 2015 – Proceeds were allocated to solar projects located in and Georgia, and one wind project located in Oklahoma – Allocation details and our Independent Accountant certification are available on Southern Power’s website (see appendix)4

(1) Does not include non-controlling interest of $778 million (2) Includes $413 million of subsidiary construction bridge facilities (3) Additional details can be found in appendix (4) Information on Southern Power’s website is not incorporated into, and does not form part of, this presentation 13 Southern Power Growth Outlook

• Southern Power projects $4.9B in capital expenditures from 2016 to 2018 driven by growth projects – Based on robust market opportunities, Southern Power is currently reviewing that capital expenditures forecast and it is expected to increase • Additional wind and solar projects expected to be the primary growth vehicle for next several years – Expect a more balanced mix of wind and solar in growth opportunities • Natural gas expected to be a growth option again in medium / long term – Environmental regulations and operational constraints may accelerate timing • Southern Power and its diversified portfolio are well positioned to grow as a clean energy provider in both near term and long term – Southern Power is committed to maintaining its existing business risk profile

14 Southern Power Summary

• Low-risk business model compared to other competitive wholesale generators – Diversified clean energy portfolio substantially covered by long-term contracts with high credit quality counterparties • Demonstrated commitment to Green projects over the last five years with a portfolio of approximately 2,000 MW1 of Green generating capacity and an investment of over $5.5B2 – Green generation is consistent with Southern Power’s business model and is expected to continue to be a growth vehicle for Southern Power • Commitment to maintain high credit quality and existing business risk profile

Southern Power represents a unique business model in the U.S. with a highly contracted Green portfolio

(1) MW owned, under construction or under contract for purchase as of March 31, 2016 (2) Represents total gross investment on Southern Power consolidated financial statements adjusted for non-controlling interest 15 Appendix

16 Past Green Bond Reporting – Management Assertion

Green Bond allocations, Southern Power’s Management Assertion, and our Independent Accountant’s Report can be found on Southern Company’s website under Information for Investors ►Green Bonds Information on Southern Power’s website is not incorporated into, and does not form part of, this presentation 17 Past Green Bond Reporting – Investor Website

Information on Southern Power’s website is not incorporated into, and does not form part of, this presentation 18 Southern Power Capital Structure

($ in millions) Q1 2016 (Mar-31-2016) Total Capital $6,002 Total Equity1 $2,466 Total Debt $3,536 Issue Date: Bank and Short Term Notes2 $811 Debt/Total Capital Ratio1 58.9% 11/06 6.375% Senior Notes due 2036 $200 09/11 5.150% Senior Notes due 2041 $575 07/13 5.250% Senior Notes due 2043 $300 05/15 1.500% Senior Notes due 2018 $350 05/15 2.375% Senior Notes due 2020 $300 11/15 1.850% Green Bond Senior Notes due 2017 $500 11/15 4.150% Green Bond Senior Notes due 2025 $500 Total $3,536

(1) Does not include non-controlling interest of $778 million (2) Includes $413 million of subsidiary construction bridge facilities 19 First Investment in Solar in 2010

Cimarron Solar Facility • Partnership with Turner Renewable 31 MW1 Energy Colfax County, New Mexico • Acquired in March 2010 • 25-year PPA with Tri-State Generation and Transmission Association (Baa1) • Generates power equivalent to meet the needs of approx. 7,200 average NM homes2 • Generated approx. 350,000 MWh as of March 31, 2016 • Offset over 240,000 metric tons of 3 CO2 over the life of the plant

(1) Southern Power’s ownership is approx. 28 MW (2) Per the US Energy Information Administration (EIA) annual average NM residential electricity consumption (3) Per the Environmental Protection Agency (EPA) Environmental Impacts Calculator 20 Solar Growth in 2012-2014 Solar Gen 2 • Acquired or developed 163 MW2, Imperial County, California eight additional solar projects over the course of 2012-2014 totaling 585 MW1 • Landmark project for Southern Power – These projects span five renewable development between 2012-2014 states • Acquired majority interest through initial partnership arrangement with – Facilities range in size • 3 sites throughout California from 2.5 MW to 163 MW • Generates electricity to power the equivalent of more than 60,000 average CA homes3 • Generated approx. 530,000 MWh as of March 31, 2016 4 • Offset approx. 365,000 metric tons of CO2 over the projected life of the plant (1) Southern Power’s ownership is over 475 MW (2) Southern Power’s ownership is approx. 83 MW • 25-year PPA with San Diego Gas and (3) Per the EIA annual average CA residential electricity consumption (4) Per the EPA Environmental Impacts Calculator Electric (A1/A/A) 21 Major Green Expansion in 2015 and 2016

• From Jan 1, 2015 to Mar 31, Desert Stateline Solar Facility, 300 MW2 2016, SPC announced the 8 Blocks Phased in through 3Q 2016 acquisition of 17 Green San Bernardino County, California projects capable of generating more than 1,870 MW1 – Southern Power’s largest solar plant, the 299 MW2 Desert Stateline Solar Facility – Southern Power’s largest wind plant, the 299 MW Kay Wind • Largest solar facility in Southern Facility Company system – Additional 260 MW of solar • Electricity will be sold under a 20-year PPA with Southern California Edison generation in the state of (A2/BBB+/A-) Georgia • Expected to generate enough electricity to meet the needs of nearly (1) Southern Power’s ownership is over 1,000 MW 3 (2) Southern Power’s ownership is 197 MW 100,000 average CA homes (3) Per the EIA annual average CA residential electricity consumption 22 Strategic Expansion into Wind

Southern Power announced its first wind acquisition, Kay Wind, on March 31, 2015, followed by the second, Grant Wind, on September 9, 2015

Kay Wind Grant Wind Generating 299 MW 152 MW Capacity Wind Turbines 130 66 Equivalent US 100,000 50,000 Homes Powered1 COD December 2015 March 2016 PPA Westar Energy Western Farmers (Baa1/BBB+/ Electric Co-Op (A-/A-), BBB+) and East Texas Electric Co- Grand River Dam Op, NE Texas Electric Authority Co-Op

(1) Per the EIA annual average U.S. residential electricity consumption

23 Reconciliation of Non-GAAP Financial Measures

($ millions) 2013 2014 2015

Long-Term Debt 1,619 1,085 2,719 Securities Due within One Year 1 525 403 Notes Payable 0 195 137 Total Debt 1,620 1,805 3,259

Total Debt 1,620 1,805 3,259 Common Stockholder's Equity 1,564 1,752 2,483 Total Capitalization 3,184 3,557 5,742

Total Debt 1,620 1,805 3,259 Total Capitalization 3,184 3,557 5,742 Debt to Capitalization 50.9% 50.7% 56.8%

Net Cash Provided from Operating Activities 604 603 1,003 Total Debt 1,620 1,805 3,259 CFO to Total Debt 37.3% 33.4% 30.8%

Beginning Common Stockholder's Equity 1,522 1,564 1,752 Ending Common Stockholder's Equity 1,564 1,752 2,483 Average Common Stockholder's Equity 1,543 1,658 2,118

Net Income Attributable to the Company 166 172 215 Average Common Stockholder's Equity 1,543 1,658 2,118 ROE 10.8% 10.4% 10.2%

As of December 31 for each year 24 Net Change in Cash and Cash Equivalents

($ millions) 2013 2014 2015

Net Cash Provided from Operating Activities 604 603 1,003 Net Cash Used for Investing Activities (696) (814) (2,538) Net Cash Provided from Financing Activities 132 217 2,290 Net Change in Cash and Cash Equivalents 40 6 755

As of December 31 for each year 25