BIRMINGHAM - Oct. 26, 2007 - Alabama Power announced today the planned redemption on Jan. 1, 2008, of all outstanding Alabama Power Company Flexible Money Market Class A Preferred Stock (Series 2003A) according to Arthur P. Beattie, Executive Vice President, Chief Financial Officer and Treasurer.

The redemption price for the Alabama Power Company Flexible Money Market Class A Preferred Stock (Series 2003A) will be $100,000 per share plus accumulated and unpaid dividends thereon to the date of redemption. The Bank of New York Mellon will deliver written notices of redemption to registered shareholders no less than 30 days prior to the redemption.

Alabama Power Company, a Southern Company subsidiary, is an investor-owned electric utility serving more than 1.4 million customers in the southern two- thirds of Alabama.

SOURCE: Alabama Power Company

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Media Contact: Michael Sznajderman, Media Inquiry Line, +1.205.257.4155, msznajde@southernco.com