Filed Pursuant to Rule 433 Registration Nos. 333-126348 333-126348-01 333-126348-02 333-126348-03 March 9, 2006 PRICING TERM SHEET (To Preliminary Prospectus Supplement dated March 8, 2006) Issuer: Alabama Power Company Security: Series II Senior Notes Ratings: Aaa by Moody's, AAA by Standard & Poor's Insurer: XL Capital Assurance Inc. Size: $200,000,000 Price: $25.00 Maturity: March 15, 2046 Redemption Terms: Callable in whole or in part any time on or after March 15, 2011 at par Coupon: 5.875% Interest Payment Dates: March 15, June 15, September 15 and December 15 of each year beginning June 15, 2006 Format: SEC Registered Expected Listing: NYSE Proceeds to Issuer: 96.85% of principal amount Transaction Date: March 9, 2006 Expected Settlement Date: March 15, 2006 (T+4) Joint Lead Managers: Morgan Stanley & Co. Incorporated Wachovia Capital Markets, LLC Co-Managers: Citigroup Global Markets Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated Underwriters: A. G. Edwards & Sons, Inc. BNY Capital Markets, Inc./Pershing LLC Blaylock & Company, Inc. Guzman & Company M.R. Beal & Company Morgan Keegan & Company, Inc. Samuel A. Ramirez & Co., Inc. The Williams Capital Group, L.P. B.C. Ziegler and Company, Inc. Jeffries & Company, Inc. SunTrust Capital Markets, Inc. Synovus Securities, Inc. Toussaint Capital Partners, LLC The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Alabama Power Company collect at 205-257-2714, Morgan Stanley & Co. Incorporated toll-free at 1-866-718-1649 (institutional investors) or 1-800-584-6837 (retail investors) or Wachovia Capital Markets, LLC toll-free at 1-800-326-5897.