power with a purpose

PUR POSEPOWER WITH A

A report to the community.

“I now commit to you the good name and destiny

of Alabama Power. May it be developed for the service of Alabama.”

- Captain William Patrick Lay,

Founder, Alabama Power,

upon turning control of the company

over to a new generation of leaders.

THAT’S POWER W ITH A PURPOSE.

- 3 -

Our commitment to the people of Alabama goes well beyond providing power to the communities we serve.

We believe in helping Alabamians in their time of need.

And in generating jobs by supporting existing Alabama businesses in any way we can.

We believe in attracting new business to our state.

And in ensuring our environment is healthy for generations to come.

We believe in research to develop cleaner energy and to lessen our dependence on foreign energy sources.

We believe in new technology to help our customers save energy, make our system

more reliable and keep our rates low.

We believe in our employees and retirees as they do good work in every corner of the state.

But, perhaps most of all, we believe in making Alabama a better place.

WE BELIEVE IN BEING THE FIRST ONE IN AND THE L AST ONE OUT AFTER A STORM.

A series of horrific tornados tore

through the state on April 27, 2011

and caused the worst damage ever to

Alabama Power’s infrastructure. We

lost more than 6,000 poles and 400

transmission structures. This, however,

pales in comparison to the more than

240 lives, thousands of homes and entire

communities lost that day.

Recovery cannot begin until we do

our job, so we focused fi rst on getting

the power back on for the more than

400,000 customers without it – and we

did it within seven days. But vastly more

important to us are the more than 10,000

customers who suffered so much more

loss than power. They lost their homes,

their cherished belongings and in some

cases their community and way of life.

Homes and businesses are being

rebuilt everyday, but many Alabamians

are still struggling to rebuild their lives.

The fact that makes us most proud

now is the hundreds of our employees

still helping those most affected.

Karen Shepherd, an Executive

Secretary who saw people weren’t

getting good food after the storm,

championed one such effort by

mobilizing her church group to put

together a makeshift drive-thru for

storm survivors. Another effort was led

by Tracey Carter, a Hamilton Customer

Service Representative. She gathered

volunteers to help rebuild the home of

a customer. Without Karen and Tracey’s

efforts and those of many, many more

like them, we wouldn’t see the recovery

occurring at such a inspiring pace.

Alabama Power doesn’t just restore

power after a natural disaster; we

restore hope.


- 5 -

RESTORING HOPE

WE BELIEVE IN HELPING AL ABAMA BUSINESSES PROSPER AND GROW.

In the early 1900s, Alabama Power

employees traveled the state helping

farmers understand how electricity

could increase their productivity and

profi ts. Today, our employees continue

to seek ways to help customers succeed

in business. Since the economic

downturn of 2007, our specialists have

helped hundreds of businesses all over

the state keep their doors open.

One success story is Globe

Metallurgical, Inc. in Selma. In 2009,

Globe was forced to close due to rising

production costs, leaving more than 100

people jobless and tens of thousands of

square feet of manufacturing space empty

in a part of the state that desperately

needs industry. Larry Kennedy, an

Alabama Power Market Specialist based

in Montgomery, decided he didn’t

need to sever ties with Globe when the

company shut down. Instead, he worked

tirelessly with Globe management and

Alabama Power experts to identify ways

for Globe to cut costs and become

more effi cient. In 2010, Globe reopened

its doors, fi red up its massive furnaces

and welcomed employees back to

work. Today, they are busier than

ever adding jobs and running shifts

around the clock.

Keeping Alabama-based businesses

open, growing and vibrant is good for our

customers, our state and our region.


- 7 -

EMPOWERING BUSINESSES

WE BELIEVE IN HELPING OUR CUSTOMERS GET THE MOST FROM ELECTRICITY.

Alabama Power once had to convince

residents of our mostly rural state that

electricity was a good thing. We did this

by reaching out to homemakers through

home service advisers who toured

Alabama, stopping at any house with a

power line and sharing information

about ways electricity could make life

easier. Today, Alabama Power continues

this tradition of teaching.

The Technology Applications

Center (TAC) near Calera showcases

electric innovations in a demonstration

kitchen. Chef and Alabama Power

Market Specialist Nick Hartmann helps

commercial customers such as Chef

John Rolen at Bottega Restaurant and

Cafe explore the benefi ts of cooking

with electricity. One such technology is

induction. Used in European kitchens

for decades, induction is not widely

used in America, yet is one of the most

effi cient ways to cook because the energy

fi eld heats just the pot, rather than the

area around the pot. Induction is 80 to

85 percent effi cient, while gas is 40 to 50

percent and regular electric cooktops

are about 70 percent effi cient. Through

Nick’s work and culinary relationships,

restaurants such as Bottega, Highlands

Bar & Grill, DoDiYos, the Wynfrey Hotel

and Culinard in Birmingham have added

induction technology to their kitchens.

Industrial customers use the facility

to explore process improvements

related to manufacturing product quality

issues, improving energy usage and

addressing environmental concerns.

This helps reduce production costs,

improves product quality and increases

effi ciency and productivity.

The TAC allows our customers to try

the latest equipment and learn what works

for them before they buy – which saves

them time and money. Just one more way

we stay connected to our customers.


- 9 -

STAYING CONNECTED

WE BELIEVE IN BRINGING NEW BUSINESS TO OUR STATE.

Since the company’s earliest days,

Alabama Power leaders have believed

the company should help bring new

business and industry to the state. In

fact, Alabama Power created the state’s

fi rst, and for many years only, economic

development department.

Over the years, Alabama Power has

played a major role in bringing the

textile, pulp and paper and automotive

industries to Alabama, and we continue

to partner with organizations like the

Economic Development Partnership of

Alabama to bring new industry to our

state. Between 2006 and 2010, Alabama

Power played a substantial role in

bringing an estimated 17,000 jobs and

approximately $7.5 billion in new and

expanding businesses to Alabama.

No place in the state refl ects the

bustle of growth more than the Port

of Mobile. From here, goods and raw

materials made in Alabama, such as

automobiles and airplanes and silicon

and steel, fl ow to all parts of the world.

And electricity is leading the port into

the future with new all-electric cranes at

the Mobile Container Terminal. These

state-of-the-art cranes are quieter, more

effi cient and much cleaner than existing

cranes at the port.

Granted, attracting new businesses

to the state is good for our business.

But, new industry means an increase

in the state tax base and good paying

jobs for our citizens. All factors that lead

to an overall improvement in quality

of life in our state.


- 11 -

GENERATING JOBS

WE BELIEVE IN MAKING OUR SERVICE BETTER AND MORE RELIABLE FOR OUR CUSTOMERS.

It’s hard to believe that Alabama

Power employees had to travel the state

to educate and inform our citizens

about the possibilities of power in the

early part of the 20th century. Look

at us today; electricity powers every

aspect of our lives – from computers

to cars, from TVs to toothbrushes and

everything in between.

“Smart Grid” has become a popular

term in the electric utility industry the

past couple of years, but Alabama Power

has been developing ways to make our

grid smarter for over 20 years. In fact, in

2004 we created algorithms, joined them

with existing equipment and technology,

and developed a computer program that

allows our electrical system to identify

problems and implement solutions

automatically. What does that mean to

our customers? An issue that might have

taken an hour just to identify now may

automatically be corrected within a few

seconds or minutes.

Feeder automation or a “self-healing”

grid is just one of the ways Alabama

Power uses the latest technology to

develop in-house solutions that make

sense for our customers, shareholders

and other stakeholders.


- 13 -

REDUCING OUTAGES

WE BELIEVE PHILANTHROPY IS SO MUCH MORE THAN WRITING A CHECK; IT’S THE PERSONAL TOUCH THAT COMES WITH A GIFT OF TIME.

Last year, the 5,000-plus members of

the Alabama Power Service Organization

donated more than 66,000 volunteer

hours supporting nonprofit groups

and charitable events across the state.

Our retirees donated more than 40,000

volunteer hours. To put that in

perspective, the combined hours is the

equivalent to one person working for 40

hours a week for 50 years - a signifi cant

force for good work across the state.

This work may take the form of

adopting classrooms and helping

children learn to read. Or helping

families by putting a roof over their

head through Habitat for Humanity

projects all over the state. Or it may be

as simple as being there for a worthy

organization such as the Shelby County

Sharks Special Olympics Swim Team.

Members of the E.C. Gaston Plant

APSO Chapter in Wilsonville support

the kids who swim on this nationally

recognized team - and have for over a

decade. Led this year by Chapter

President Mike Martin, President-elect

Justin Bailey and Secretary Karen White,

the Gaston APSO volunteers provide

encouragement, swim bags, towels,

uniforms and hugs for each member

of the team. The gratitude of the kids

and their parents is seen in the smiles

and warmth with which they greet the

volunteers each and every time they

visit with the team.

This spirit of volunteerism goes to

Alabama Power’s core and makes our

communities and our state a better place.


- 15 -

HELPING OUT

WE BELIEVE IN KEEPING OUR STATE CLEAN AND PRISTINE FOR THE NEXT GENERATION.

A decade ago, the banks along many

of our rivers were littered with trash

– none more so than the Coosa that

runs through Gadsden. This litter and

the impact it has on our environment is

what led Gene Phifer, an employee at

Alabama Power’s Gadsden Plant, to begin

picking up trash along the river during

his lunch hour. He soon convinced

co-workers to help and later enlisted

the aid of community groups.

Today, Gene’s lunchtime activity has

grown into Renew Our Rivers, the largest

river cleanup in the Southeast. Nationally

recognized, the campaign now includes

waterways in Alabama, Georgia,

Mississippi and Florida. Renew Our Rivers

brings together more than 10,000

volunteers and has resulted in the removal

of more than 12 million pounds of trash

and debris from Southeastern waterways.

Alabama has more than 77,000 miles

of rivers and streams crisscrossing the

state in addition to the bays and inlets

along the coast. These abundant

waterways also host some of the most

biologically diverse ecosystems in the

country. Keeping these remarkable

waterways clean and healthy is just

another way Alabama Power is trying

to keep our state beautiful and ready

for the future.


- 17 -

CLEANING UP

WE BELIEVE IN RESEARCHING ALTERNATIVE SOURCES OF ENERGY TO CONTINUE PROVIDING CLEAN, AFFORDABLE AND RELIABLE ELECTRICITY.

Over a century ago, Alabama Power

was founded on renewable energy with

the building of our fi rst dam along the

Coosa River. Today, our state is ranked

sixth in the nation for renewable energy

capacity because of existing hydro

generation. Although the best hydropower

sites are already utilized, fi nding new

renewable alternative energy sources is

becoming more important.

Alabama’s cloudy weather and lack

of sustained wind make it ill-suited to

produce large amounts of solar or wind

energy on a reliable and affordable basis.

That doesn’t stop our engineers from their

mission of fi nding ways to use Mother

Nature’s renewable energy sources.

Since 2010, four different types of

solar panels have been installed on the

roof of our Corporate Headquarters in

Birmingham. Last year, we expanded our

solar power research by installing panels

on power poles across our service area.

The resulting studies will help us

determine which solar technologies are

most viable for widespread use in the

Southeast. To begin similar research

into wind, we are working with the

University of Alabama at Birmingham

to add wind turbines on the Corporate

Headquarters building.

The research on alternative energy

sources that work best for our region is

driven by our ongoing commitment to

keep our rates low for our customers and

to keep our state attractive for business.


- 19 -

USING ALTERNATIVE ENERGY

WE BELIEVE IN RESEARCH TO LESSEN OUR DEPENDENCE ON FOREIGN FUEL SOURCES AND

PRODUCE THE CLEANEST POWER POSSIBLE.

The United States has a 150- to 200-

year supply of coal – more than Saudi

Arabia has oil. Alabama Power is leading

the way in developing clean coal

technologies to lessen our dependence

on foreign fuel.

One way we’re doing this is

through the ongoing testing at the

General Services Complex (GSC) near

Calera. Chemists David Anderson and

Amy Badillo along with Environmental

Engineer Jeremy Driver and

Environmental Specialist Debbie Bond

are just a few of the scientists and

engineers working on new technology

to purify wastewater released by

scrubbers at our coal-fi red plants. We

want to ensure the air and water remain

clean in an effort to make our state’s coal

supply even more viable for the future.

Emissions from our plants have been

signifi cantly reduced in recent years

thanks to an almost $3 billion investment

in equipment and technology.

But, Alabama Power is committed to

doing even more, which is why we host

the new National Carbon Capture Center

at an Alabama Power facility in Wilsonville.

This joint partnership between private

industry and the government is quickly

becoming the hub of international

efforts to develop and test advanced

technologies to capture carbon dioxide

from coal-fired plants. We’re also

involved in an exciting carbon capture

and sequestration project at our Barry

Steam Plant near Mobile.

Keeping coal in the national fuel mix

helps us keep the cost of electricity

down for our customers and allows us to

better support local fuel sources, which

is good for Alabama’s economy.


- 21 -

BEING SUSTAINABLE

WE BELIEVE IN INVESTING IN NEW TECHNOLOGIES TO HELP US STAY AHEAD OF THE COMPETITION AND OFFER OUR CUSTOMERS INNOVATIVE ALTERNATIVES.

Electric transportation has been

around for decades, but it seems the

rest of the country abandoned the

possibilities in the 1990s, in lieu of

supposedly better alternatives.

Bob Hawkins, now retired, and

Alabama Power Market Specialist Cedric

Daniels didn’t. Instead they continued

to work with and learn about electric

transportation. Thanks to their vision

and commitment, Alabama Power has

become a national leader in the

development of non-road electric

transportation, including fast-charging

electric lift trucks, underground mining

vehicles and overland conveyors. We’ve

also joined with a broad spectrum of

partners to develop and test advanced

battery technology that, today, has led

to a resurgence of interest in on-road

electric vehicles.

This interest in on-road electric

vehicles has driven us to purchase a

number of different electric cars to test

and demonstrate around the state.

We also have placed charging stations

at all of our offi ces. The goal is to help

our customers understand what works

and what doesn’t when it comes to

electric transportation.

As a result, Alabama Power is a step

ahead of the competition in understanding

the impact of electric vehicle use on

our grid and in offering innovative and

cleaner transportation solutions for

businesses and consumers statewide.


- 23 -

PLUGGING INTO THE FUTURE

The Alabama Power Foundation,

founded in 1989 with an investment by

Alabama Power shareholders, has the

goal of strengthening and spurring

additional growth in communities across

the state. The Foundation awards more

than 1,000 grants annually with non-

ratepayer money and in its history has

given more than $130 million through

more than 20,000 grants and scholarships.

The Alabama Power Foundation

does many things. It makes medical

services accessible to those in need

and strives to prepare students for the

workplace. It supports programs that

inform people about the state’s history

and improve the environment. The

Foundation supports innovative

programs and organizations around

the state hoping to spur long-term

opportunities. But when it comes down

to it, the Foundation embodies Alabama

Power’s belief in making our state a

better place.

One real-world example of the

Foundation’s commitment to building

better communities is evidenced in its

efforts to replant areas that lost nearly

every tree in sight during the April 27,

2011 tornados. To do this, the Foundation

has partnered with Henry Hughes,

Director of Education at the Birmingham

Botanical Gardens, and Sheila Tyson,

Citizens Advisory Board President of the

Birmingham Neighborhood Association.

Community volunteers are replanting

Pratt City using saplings grown from

native trees that thrive in parks and

natural areas around the region this fall.

Selecting the right trees for Pratt City will

lead to longer-term sustainability and,

in turn, a healthier community.


- 25 -

GIVING BACK

WE BELIEVE IN BUILDING BETTER COMMUNITIES BY SUPPORTING ORGANIZATIONS, PROGRAMS AND

PROJECTS IN EVERY CORNER OF THE STATE.

WE BELIEVE THAT AL ABAMA POWER WAS DEVELOPED FOR THE SERVICE OF AL ABAMA.

Alabama Power continues to invest

in our state at every level. In addition to

being Alabama’s largest taxpayer, we also

have the largest charitable foundation

in the state. When you factor all the

goods and services we provide directly

and indirectly, Alabama Power’s total

economic impact is estimated at $2.2

billion annually.

That’s impressive but only tells part

of the story. Our top priority is taking

care of our customers. We provide

reliable power to 1.4 million homes

across 44,500 square miles and 78,000

miles of power lines. With more than

80 business offices, we are the only

company that can honestly say we have

people on the ground in nearly every

corner of the state.

The people in each of these offi ces

are an integral part of the communities

they serve. They get to know their

customers and help them when they are

in need. They are their customers’ friends

and know what their communities need

most. They are there to listen, and there

to mobilize our force of employees and

resources when necessary. Our people

are our real power. That’s a fact and that

makes us most proud.


- 27 -

SERVING AL ABAMA

As I hope you’ve discovered on the previous pages, Alabama Power is committed

to doing more than providing affordable, reliable and renewable electricity to the

people of Alabama. We’re committed to being of service to our state in every way

possible. It is in our corporate DNA.

The late Joe Farley, who served as Alabama Power’s president from 1969 to 1989,

once noted that,

“Corporations, like people, develop through their lives a personality and,

indeed, a character that explains much about their actions.”

Our actions to improve the quality of life in our state through economic and

community development, research and technology, and volunteerism and

philanthropy are intended to refl ect the character and integrity of our company

founders who believed, in Tom Martin’s words, that “nothing can be good for

Alabama Power unless it is fi rst good for Alabama.”

On behalf of Alabama Power’s 6,700 employees, I assure you those words remain

true today.

Charles D. McCrary

April 2012

power with a purpose

Documents

alabama power employees

alabama power doesnt

destiny of alabama power

service of alabama

people of alabama

existing alabama businesses

thats power w ith

alabama powers infrastructure