Gulf Power Company (Gulf Power) operates as a vertically integrated utility providing electricity to retail customers within its service area located in northwest Florida and to wholesale customers in the Southeast. It is engaged in the generation and purchase of electricity and the transmission, distribution, and sale of such electricity at retail in 71 communities, including Pensacola, Panama City, and Fort Walton Beach, as well as in rural areas, and at wholesale to a non-affiliated utility and a municipality. Gulf Power is a wholly owned subsidiary of The Southern Company (Southern Company). The Company operates three electric generating plants with onsite coal combustion byproduct storage facilities (some with both wet (ash ponds) and dry (landfill) storage facilities). During the year ended December 31, 2010, Gulf Power purchased 111.7 million kilowatt-hours of energy and purchased an assembly fluted compressor from Georgia Power Company (Georgia Power).