Who Owns Alabama Power?

Alabama Power operates under Southern Company's comprehensive sustainability framework, which addresses environmental stewardship, community engagement, and ethical business practices in the utility sector. The company's sustainability efforts focus on clean energy transition, environmental protection, wildlife conservation, and community development across Alabama.

Environmental Stewardship: Alabama Power demonstrates strong commitment to environmental protection through multiple initiatives. The company operates one of the largest volunteer-led river cleanup programs in the nation through its "Renew Our Rivers" initiative, which has removed thousands of tons of debris from Alabama's waterways. Alabama Power manages 14 reservoirs with over 157,000 surface acres of water, maintaining water quality monitoring programs and supporting recreational opportunities for millions of visitors annually. The company has partnered with conservation organizations to restore 200 acres of native wetland ecosystems at Muddy Creek, creating vital wildlife habitats and environmental education spaces.

Wildlife Conservation and Habitat Protection: Through its "Alabama Wild Power" program, Alabama Power works with landowners to develop conservation plans that protect wildlife habitats under transmission lines and rights-of-way. The company actively supports longleaf pine restoration and species-specific conservation projects across Alabama, partnering with expert organizations to enhance biodiversity. Alabama Power's environmental scientists and biologists conduct hands-on habitat restoration and species protection work, demonstrating the company's commitment to preserving Alabama's ecological diversity.

Clean Energy Transition: Alabama Power is investing in cleaner generation sources including nuclear energy, solar power, and hydroelectric facilities. The company operates two nuclear plants (Farley and Hatch) that provide carbon-free electricity, while expanding solar capacity through partnerships with commercial customers. Alabama Power has significantly reduced air emissions across its generation fleet through equipment modernization and transition to cleaner generation sources, helping Alabama meet federal clean air requirements while maintaining reliable service.

Community Engagement and Ethics: Alabama Power maintains strong community relationships through the Alabama Power Foundation, which supports education, community development, and environmental initiatives across the state. The company employs approximately 6,900 people in Alabama, contributing to local economies and supporting community development through volunteer programs and charitable giving. Alabama Power adheres to strict ethical standards in business practices, maintaining transparent procurement processes and fair treatment of customers and employees.

• Edison Electric Institute Emergency Response Award: Alabama Power has received EEI Emergency Response Awards for its storm response and power restoration performance following major weather events. The EEI is the primary trade association for investor-owned utilities and administers this award annually.
• Renew Our Rivers recognition: Alabama Power's river cleanup program, active since 2000, has been cited by conservation organizations and Alabama state agencies for environmental stewardship. The program has removed over 15 million pounds of debris from Alabama waterways.
• Southern Company Fortune recognition: Parent company Southern Company has appeared on Fortune's Most Admired Companies list. Alabama Power, as Southern Company's Alabama subsidiary, is included in that corporate recognition.

Alabama Power has maintained a strong operational record overall but has faced significant environmental controversies related to coal ash management and regulatory compliance issues.

Coal Ash Groundwater Pollution (2021): In 2021, the Alabama Department of Environmental Management (ADEM) fined Alabama Power $1.25 million for ongoing violations of groundwater pollution at five coal plant facilities across the state. Groundwater testing revealed contamination with pollutants including arsenic, lead, selenium, radium, and beryllium at the E.C. Gaston plant, Greene County plant, James H. Miller plant, James M. Barry plant, and William C. Gorgas plant. Environmental groups criticized the company for withholding contamination information from the public and noted that the enforcement order did not require meaningful cleanup of pollution sources.

Environmental Compliance Challenges: Alabama Power has faced scrutiny over coal ash storage practices, particularly regarding unlined coal ash lagoons that threaten groundwater quality. The company has been involved in legal and regulatory proceedings related to coal ash management, with environmental advocates pushing for stronger state regulations to prevent future contamination incidents.

Rate and Regulatory Issues: Alabama Power has occasionally faced criticism from consumer advocates regarding rate increases and regulatory decisions. The company's 2026 rate freeze proposal, approved by the Alabama Public Service Commission, drew mixed reactions from investors and consumer groups. Some critics questioned whether the rate freeze truly benefited consumers or primarily served political interests ahead of election cycles.

Environmental Regulation Opposition: Environmental groups have criticized Alabama Power and Southern Company for supporting legislation that could weaken environmental regulations in Alabama. In 2026, the company faced criticism for its perceived role in supporting bills that could limit state environmental protections beyond federal requirements.

Grid Reliability and Outage Response: Like many utilities, Alabama Power has faced customer criticism during major outage events, particularly following severe weather events. While the company generally maintains high reliability metrics, some customers have questioned response times and communication during extended power outages following hurricanes and ice storms.

Transition to Clean Energy: Environmental advocates have criticized Alabama Power's pace of transition away from coal-fired generation, arguing that the company should move more quickly to renewable energy sources. The company has defended its gradual transition approach as necessary to maintain reliability while managing costs for customers.