Alabama Power today issued the following:

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

  Performance
  *  Earnings down for the third quarter and 12-month period ended September
     2001.

  Net Income
  *  Third Quarter Net Income
     $ 179,495,000 for the third quarter of 2001
     $ 208,726,000 for the third quarter of 2000

  *  12 Months Ended Net Income
     $ 365,378,000 for the 12-month period ended September 2001
     $ 422,360,000 for the 12-month period ended September 2000

  Total Territorial Energy Sales
  *  Third Quarter Energy Sales
     15.5 billion kilowatt-hours for the third quarter of 2001
     16.4 billion kilowatt-hours for the third quarter of 2000

  *  12 Months Ended Energy Sales
     54.4 billion kilowatt-hours for the 12-month period ended September
      2001
     55.2 billion kilowatt-hours for the 12-month period ended September
      2000

  Comments:

"A decrease in territorial energy sales and Allowance for Funds Used During Construction (AFUDC) resulted in a decrease in net income for the third quarter ended September 2001. Territorial energy sales are down due to milder weather and a slowing economy in the company's service territory. The reduction in AFUDC can be attributed to a decrease in Construction Work in Progress (CWIP) as a result of completed capacity additions.

"Net income decreased in the twelve month period ended September 2001 primarily due to an increase in expenses as a consequence of higher costs related to maintenance of transmission and distribution lines and increased depreciation and interest expenses associated with recent capacity additions. These capacity additions also resulted in a decrease in CWIP which further contributed to a decrease in AFUDC and net income for the period."

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