Alabama Power Company reported the following today:

  Company description
  *  Birmingham-based investor-owned electric utility; a subsidiary of
     Southern Company.

  Performance
  *  Earnings down for the second quarter and 12-month period ended
     June 2001.

  Net Income
  *  Second Quarter Net Income
     $ 75,428,000 for the second quarter of 2001
     $103,175,000 for the second quarter of 2000

  *  12 Months Ended Net Income
     $394,609,000 for the 12-month period ended June 2001
     $414,455,000 for the 12-month period ended June 2000

  Total Territorial Energy Sales
  *  Second Quarter Energy Sales
     13.5 billion kilowatt-hours for the second quarter of 2001
     14.0 billion kilowatt-hours for the second quarter of 2000

  *  12 Months Ended Energy Sales
      55.3 billion kilowatt-hours for the 12-month period ended June 2001
      55.0 billion kilowatt-hours for the 12-month period ended June 2000

  Comments

"The decrease in net income for the second quarter ended June 2001 was primarily due to a decrease in territorial energy sales and an increase in operating expenses. Territorial energy sales are down due to milder weather and a slowing economy in the company's service territory. Operating expenses are up as a result of higher expenses related to maintenance of transmission and distribution lines and increased depreciation expenses associated with recent capacity additions.

"Net income decreased in the twelve-month period ended June 2001 primarily due to higher expenses related to maintenance of transmission and distribution lines and increased depreciation expenses associated with recent capacity additions."

-- William B. Hutchins, III, executive vice president, chief financial officer and treasurer.

Alabama Power, a subsidiary of Atlanta-based Southern Company , provides reliable, affordable electricity to more than 1.3 million customers across the state.

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SOURCE: Alabama Power Company