Issuer:

Alabama Power Company

Size:

6,000,000 shares of Preference Stock

Par Value:

$1.00 per share

Stated Capital:

$25.00 per share

Purchase Price to be Paid

by the Underwriters:

$25.00 per share

Coupon:

6.45%

Optional Redemption:

Callable in whole or in part, from time to time:

•      prior to October 1, 2017, at the greater of (1) $25.00 per share to be redeemed or (2) the sum of the present values of the liquidation amount and the remaining scheduled dividend payments on the shares to be redeemed (excluding any accrued and unpaid dividends) to October 1, 2017, discounted to the redemption date on a quarterly basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the treasury yield plus 25 basis points; or

•      on or after October 1, 2017, at $25.00 per share,

plus, in each case, with accrued and unpaid dividends for the current quarterly period.

Proceeds to Issuer:

$147,375,000

Transaction Date:

September 12, 2007

Expected Settlement Date:

September 19, 2007 (T+5)

CUSIP:

010392 488

Joint Book-Running and

Lead Managers:

J.P. Morgan Securities Inc.

Lehman Brothers Inc.

Joint Lead Manager:

Banc of America Securities LLC