BIRMINGHAM, Ala. - Feb. 29, 2008 - Alabama Power Company announced today the planned conversion of the interest rate determination method on the Industrial Development Board of the City of Mobile, Alabama Pollution Control Revenue Bonds Series 2007-A, 2007-B, and 2007-C (the “Bonds”) on March 19th, 24th, and 20th of 2008, respectively. The interest rate determination method on the Bonds will be changed from an Auction Period Rate to a Long-Term Interest Rate according to Arthur P. Beattie, Alabama Power executive vice president, chief financial officer and treasurer.  

The Bonds will be subject to mandatory tender on the conversion date at a purchase price equal to 100% of the principal amount plus accrued interest thereon to the date of conversion.  

Series 2007-A      Series 2007-B       Series 2007-C
    $86,500,000        $80,000,000      $80,000,000

Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE: SO), is an investor-owned electric utility serving more than 1.4 million customers in the southern two-thirds of Alabama.

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Media Contact: Michael Sznajderman, (205) 257-4155, msznajde@southernco.com