| Issuer: | Alabama Power Company |
| Format: | SEC Registered |
| Security: | Series 2017A 2.45% Senior Notes due March 30, 2022 |
| Denominations: | $2,000 and integral multiples of $1,000 in excess thereof |
| Expected Ratings:* | A1(Stable)/A-(Stable)/A+(Stable) (Moody’s/Standard & Poor’s/Fitch) |
| Trade Date: | February 27, 2017 |
| Expected Settlement Date: | March 3, 2017 (T+4) |
| Size: | $550,000,000 |
| Maturity Date: | March 30, 2022 |
| Interest Payment Dates: | March 30 and September 30 of each year, beginning September 30, 2017 |
| Coupon: | 2.45% |
| Initial Public Offering Price: | 99.918% |
| Benchmark Treasury: | 1.875% due February 28, 2022 |
| Benchmark Treasury Yield: | 1.867% |
| Spread to Benchmark Treasury: | +60 basis points |
| Re-Offer Yield: | 2.467% |
| Optional Redemption: | |
| Make-Whole Call: | Prior to February 28, 2022 at T+10 basis points |
| Par Call: | On or after February 28, 2022 at 100% |
| CUSIP/ISIN: | 010392FQ6/US010392FQ67 |
| Joint Book-Running Managers: | BNP Paribas Securities Corp. Citigroup Global Markets Inc. Mizuho Securities USA Inc. MUFG Securities Americas Inc. |
| Co-Managers: | BB&T Capital Markets, a division of BB&T Securities, LLC BBVA Securities, LLC Regions Securities LLC Academy Securities, Inc. Samuel A. Ramirez & Company, Inc. The Williams Capital Group, L.P. |
