Alabama Power Company has entered into agreements with a group of underwriters led by Goldman, Sachs & Co. and Lehman Brothers, Inc. for the issuance of $225,000,000 principal amount of Series Q Senior Notes due October 15, 2017, according to William B. Hutchins, III, Chief Financial Officer and Treasurer.

The proceeds from the sale of the notes will be used to redeem all of the company's outstanding Series D 6.50% Senior Insured Quarterly Notes (the "Series D Senior Notes") and for other general corporate purposes.

Holders of the Series D Senior Notes to be redeemed will receive a notice of redemption at least 30 days prior to the redemption date. Redemption of the Series D Senior Notes is contingent upon the closing of the sale of the new notes. The expected date for closing is on or about October 24, 2002.

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

Make Your Opinion Count - Click Here
http://tbutton.prnewswire.com/prn/11690X72912342

SOURCE: Alabama Power Company