Commitment to Energy Efficiency Robin White Alabama Power Company Energy Sales & Efficiency

1. Commitment to Energy EfficiencyRobin WhiteAlabama Power CompanyEnergy Sales & Efficiency

2. Provide profitable, sustainable, predictable revenue growth • Energy efficient end-uses • Unregulated products and services, ODL and power services • Understanding our customers needs • Highly trained workforce • Innovative pricing options • Committed to R&D and emerging technologies

3. Ensuring highly satisfied customers • Customer centered • Understand our customers needs and values • Align our products and services appropriately • Focus on the drivers of satisfaction

4. Drivers of Satisfaction • Pricing/Cost • Reliability • Customer service skills • Bill statement • Image • Direct contact • Energy efficiency programs/information • Trust

5. What do our Customers Want? • Open lines of communication • Effective energy efficiency programs • Want options to manage their overall energy usage • Willing to adjust usage patterns to save money • Customers expect energy management tools • Invest in alternative/renewable energy research but not if it results in higher prices • Customers are more interested in saving money

6. Trusted Energy Advisor • “Go To” organization for trusted energy advise • Commitment to a well trained workforce • Long-term investment around workforce recruitment and knowledge retention • Knowledgeable on electro-technologies • Understand energy sources • Understand energy end-uses • Understand customer energy use pattern • Identify energy efficient solutions • No/low cost • Positive ROI

7. What we offer our customers • On-site Energy Check Up • Energy efficient Building Design • Education / Public Speaking • Energy Management Tools • Connect you with 3rd Party Funding • Regional Energy Efficiency Revolving Loans • Alabama Saves • USDA • Phillips Lighting loans • School Energy Efficiency Retrofits K-12 • Private Sources • Outdoor lighting products • Rate Options

8. Energy Efficiency Strategy • Maintain an on-line building energy analysis tool • Provide energy analysis training for our employees and customers • Keep abreast of new energy efficient products and technologies • Maintain a list of trusted energy partners • Be aware of funding sources • Seek sales opportunities that benefit the customer while conducting an audit • Maintain a high level of customer satisfaction • Downward Pressure on Rates

9. Levels of Energy Check-Up’s • Level I • Typically, customers with loads <= 50 kw • On-site survey • Provide low cost / no cost measurers • Provide estimated savings • Level II • Requires more time commitment • More detailed audit requiring hand calculations • Provide energy modeling • Identify capital improvements • Provide energy savings, cost analysis and ROI • Level III • Required third party more technical rigorous audit • Large capital investments • Provide energy savings with ROI • Identify funding sources

10. On-Site Energy Check-Up • Energy analysis with a building parameter report • Energy efficient improvement measures • No cost saving suggestions • Low cost saving recommendations • Provide ROI

11. Annual and monthly average totals based on ACTUAL BILLING dollars.

12. The coral line represents the actual billing kWh. The bars represent the analysis of the building based on the inputs and the pattern of use in the billing data.

13. Detailed report for combined energy costs for electricity and other commodities.

14. Estimated energy improvements comparing the results with the base facility results.

15. Southern Company Kwh Saved2000-2010 • (conservative view)* • Total: 1,072,000,000 kwh • * actuals up to 50% higher

16. Residential Programs

17. Commercial/Industrial Programs

18. Sustainable Objectives • Reduce the use of natural resources and waste production • Improve the efficiency of buildings • Improve operations and maintenance of systems • Manage energy, water usage and transportation efficiently • Engage the state and community • Encourage green space and mixed use developments

19. EnergyDirect.com • The ability to manage energy usage • Will foster energy efficiency • 15 minute interval data opportunities • Consolidate buildings to roll-up energy and cost data • Benchmark buildings energy data in a variety of ways • Define thresholds and building metrics • Correlate temperature to consumption data • Provide data graphically • Real time capabilities

20. Outdoor Lighting • APCo Owned and Maintained • Customer Owned and APCo maintained • Fixture types – Offer Dark Sky compliant • Open bottom • Cobra Head • Flood • Off Road • Acorn • Coach • Colonial • Provide photometric Designs • Customer Owned and Customer Maintained - Coming soon!!

21. Alabama Power LED Lighting Evaluation General Services Complex Calera, Al.

22. Location 1 (Entrance) –GE lights • Location 2 (GSC 2) –GE lights • Location 3 (North Loop) – AEL lights • Location 4 (Training Ctr) – Cooper & Hadco • Location 5 (Test Lab) –GE lights & SALCo brackets • Location 6 (SW Loop) –Holophane lights

23. AEL LEDR (10) GE Sitelighter (2) Hadco Evolaire (3) Cooper OVH (9) GE R150 (8) Holophane LEDgend (3) GE R150 (9)

24. Wi-OLC Photo controls • Will allow metering & monitoring of all 44 lights • 2500’ line of sight spacing beginning with base station installed at Test Lab

25. Civil Rights Institute 16th St between 5th and 6th Ave N

26. King Luminaire – Decorative Acorn

27. Rate Options • Rate Rider CRI • Community redevelopment incentives are intended to give customers a reduction in base rate charges for 12 months when they establish a new account in an existing building that has been unoccupied for at least 6 months. • Incentive ‐ 15% discount on monthly base rate charges, 1 year Customer Service Agreement commencing before January 1, 2013 • Account must represent new load (merely switching locations does not qualify) • Rate Rider CRI will be in effect for July 2011 billings • Rate Rider EDI • Load addition and job creation incentives are intended to give customers a reduction in base rate charges for 24 months when they provide new or additional load of at least 1,000 kVA while adding new jobs. • Incentive ‐ 10% discount on monthly base rate charges for the first year, 5% for the second year, 2 year contract term, commencing before January 1, 2014 • Customer must satisfy the Alabama Department of Revenue criteria for receiving Capital Investment Tax Credits. • Rate Rider EDI will be in effect for May 2011 billings

28. TOU RATES New Time of Use (TOU) rates were filed May 20, 2011 with the Alabama Public Service Commission and if approved, will become effective with October 2011 billings.  The four new TOU rate options include: • Residential Time Advantage (RTA) • Residential Time Advantage – Energy Only (RTA – Energy Only) • Business Time Advantage (BTA) • Business Time Advantage – Large (BTAL) These new TOU rates benefit the customer and the Company by incenting customers to shift their usage to the Company’s lower cost periods, thereby lowering customer bills as a result.

29. RECAP • Provide profitable, sustainable, predictable revenue growth • Ensuring highly satisfied customers • Trusted energy advisor • KWH savings thru energy efficiency programs • Residential, commercial and industrial programs • Energy Checkup/Audit • Green building initiatives • Energy management tools • LED lighting evaluation • TOU rate options

30. Questions ?