Alabama Power Company is engaged in the generation and purchase of electricity, and the transmission, distribution and sale of such electricity. The Company provides electricity to retail and wholesale customers within its service territory located in the State of Alabama in addition to wholesale customers in the Southeast. It sells electricity at retail in approximately 400 cities and towns (including Anniston, Birmingham, Gadsden, Mobile, Montgomery and Tuscaloosa), as well as in rural areas, and at wholesale to over 10 municipally owned electric distribution systems, approximately 10 of which are served indirectly through sales to Asia, Middle East and Africa (AMEA), and over two rural distributing cooperative associations. It owns coal reserves near its Plant Gorgas and uses the output of coal from the reserves in its generating plants. It also sells and cooperates with dealers in promoting the sale of electric appliances. The Company is a subsidiary of Southern Company.