Alabama and Georgia have agreed on a proposal that fairly allocates the waters of the Alabama-Coosa-Tallapoosa River basins. If the proposal gains the ACT Commission's support and concurrence by the Federal Commissioner, the matter will not have to be resolved in court. The final adoption of this proposed Allocation Formula is contingent on the States of Alabama, Georgia and Florida reaching a similar agreement on the allocation of the waters in the Apalachicola-Chattahoochee- Flint River Basin.

Alabama Power supports the state of Alabama's proposal, and has monitored the discussions from the outset due to the company's extensive use of the waterways to generate power. The company operates 14 hydroelectric facilities statewide, 11 in the ACT river basin. Many Alabamians live on or near the lakes and they are used for recreational purposes throughout the year.

"We are pleased that the two states have been able to resolve this issue outside of the courts. We've been following this closely and we feel very confident that the agreement will allow us to continue providing reliable electricity at a price well below the national average, and at the same time maintain recreational uses of our lakes," said Elmer Harris, President and CEO of Alabama Power. "This negotiated agreement between the states is in the best interest of all parties."

The proposal will provide protection for the state's lakes and enable Alabama Power to continue to serve the many uses, including environmental protection and recreation, of these resources. The proposal contains low-flow protection provisions that should enhance flows and elevations in Alabama during drought conditions. The agreement addresses both states goals of protecting the water resources, including water supply and flow regimes.

This proposal will not replace any of Alabama Power's current operating obligations or FERC requirements. The proposed agreement extends 30 years, to 2030.

Alabama Power provides affordable, reliable electric service to 1.3 million customers in the lower two-thirds of Alabama. Alabama Power is a subsidiary of Atlanta-based Southern Company , an international energy company that operates more than 48,000 megawatts of electric generating capacity worldwide. Southern Company is the largest producer of electricity in the United States and one of the world's largest independent power producers.

SOURCE: Alabama Power