Alabama Power powers up Southern Rockers and many others in the heart of Dixie. The
subsidiary provides electricity to 1.4 million residential and business customers in a 44,500 sq. ml. service area in Alabama. The utility operates more than 83,000 miles of power lines, and it has nuclear, hydroelectric, and fossil-fueled power plant interests that give it a generating capacity of more than 12,000 MW. Alabama Power sells wholesale power to more than 15 municipal and rural distribution utilities; it also provides steam transmission (used for heating and cooling buildings) in downtown Birmingham, Alabama, and sells electric appliances (such as thermostats, ovens, and washing machines).
Alabama Power owns coal reserves near its Plant Gorgas power plant and uses the output of coal from the reserves in its generating plants.
It has cogeneration contracts with 12 industrial customers and purchased 151 million KWHs from these companies in 2013.
SEGCO (a public utility company jointly owned by Alabama Power and sister company
) owns electric generating units with a capacity of 1,019 MW at Plant Gaston on the Coosa River near Wilsonville, Alabama. Alabama Power owns 92% ownership in Plant Miller Units 1 and 2, which have a total capacity of 1,320 MW.
The company sells electricity at retail in 400 Alabama cities and towns (including Anniston, Birmingham, Gadsden, Mobile, Montgomery, and Tuscaloosa), as well as in rural areas, and at wholesale to 14 municipally-owned electric distribution systems, 11 of which are served indirectly through sales to Alabama Municipal Electric Authority, and two rural distributing cooperative associations.
The company reported a 2% increase in revenues in 2013, primarily due to higher retail revenues, and wholesale revenues from affiliates, partially offset by the wholesale revenues from non-affiliates.
Retail revenues increased due to favorable weather (which pushed up demand), higher fuel revenues, and increased revenues associated with a new plant; partially offset by a drop in revenues related to net investments related to the certification of one of its newer plants. That year its wholesale revenues from sales to affiliates grew due to an increase in energy sales fueled by higher energy prices, partially offset by a lower capacity revenues.
Wholesale revenues from sales to non-affiliates decreased, as a result of a drop in capacity revenues, and a decline in revenues from energy sales.
The company's net income was almost flat in 2013, as the increase in revenues was offset by higher fuel expenses (an 11% increase in the average cost of KWHs generated by natural gas, and a 10% increase in KWHs generated by coal).
Net cash provided from operating activities increased by $538 million in 2013, primarily due to changes in timing of fossil fuel stock purchases and payment of accounts payable, and the collection of fuel cost recovery revenues.
An active player in the larger community, in 2014 Alabama Power and B.A.S.S. (a fishing association) signed an agreement to enhance and maintain sport-fishing resources on the 11 lakes managed by Alabama Power.
Growing its green energy portfolio, in 2013 Alabama Power partnered with City of Montgomery to set up electric vehicle charging station. In the same vein, in 2012 the company received approval from the state Public Service Commission to purchase more electricity from midwestern wind projects. It agreed to buy 202 MW of power from a Oklahoma wind park being developed by TradeWind Energy and which is expected to commence operations in 2014. It also agreed to a 202 MW deal with TradeWind Energy's Buffalo Dunes Wind Project in Kansas.
In 2011 Alabama Power completed a six-year $1.7 billion clean air project that called for the installation of scrubbers (air pollution control devices) at all seven of its largest coal fired plants in Alabama. By 2010, six scrubbers were in operation at four power plants in Jefferson, Shelby, Walker, and Mobile counties.
In 2009 Alabama Power began exploring the possibility of generating power by burning wood and other renewable fuels at one of its coal-fired plants in response to government regulations calling for lower carbon emissions. In 2010 the company teamed up with
The Westervelt Company
, agreeing to buy biomass-fuel (waste wood material) from the timber company.