POWERGRAMS

busINEss FORum 5 Alabama Power has a history of providing excellent customer service, maintaining high reliability and quickly restoring outages, which bodes well for the future financial condition of the company, said Executive Vice President, Chief Financial Officer and Treasurer Phil Raymond. However, employees must continue to be counted on to "manage our business" in difficult situations to continue the company's strong credit ratings and financial integrity, Raymond said. Looking at 2014 and beyond, he said key challenges for the company include the weather, economy and increased environmental regulations. The Performance Pay Plan goals this year are more focused on net income than return on equity but are attainable, Raymond said. The goal weights are one-third each for Southern Company earnings per share, Alabama Power net income and operational goals. The operational goals include performance results for safety, customer satisfaction, Generation peak season EFOR, Transmission and Distribution reliability, and workforce culture and diversity. "They are pretty aggressive goals for us. However, with the commitment of every one of you, we will maintain and meet our financial goals," he said. Assistant Comptroller Wendy Hoomes reviewed the 2013 financial performance, saying it was "a great year" despite having to operate with $100 million less revenue. The company completed the year $18 million over anticipated income for a 13.1 percent return on equity. Hoomes said the financial performance helped Alabama Power maintain its "A" credit rating in 2013, as Moody's Investor Service upgraded the company from A to A+. High credit ratings allow the company to borrow money at lower rates. She said the high ratings continue because of the outstanding performance of employees adapting to business difficulties, as well as other factors such as the Public Service Commission determining the company's rate of return is "fair and reasonable" following informal hearings. International Brotherhood of Electrical Workers System Council u-19 Manager Casey Shelton discussed the solid foundation built by the brotherhood and Alabama Power Company and how he is looking forward to the future. "Other utilities across the country are building business models based on what we have accomplished here in Alabama and I am looking forward to continuing that in the future under the new leadership of Mark Crosswhite. Welcome, Mark," Shelton said. Shelton praised the mentoring efforts of senior employees across the service territory and discussed some of the benefits of new technology. "In Southern Division, some of our crews are using iPads that have manuals and other information stored on them. They can also take pictures and identify problems and reach solutions safely and quickly," Shelton said. "I want all of us to continue to learn about the new innovative ways to help us do our job safer and more efficiently." Safety has always been and continues to be the No. 1 priority for the IBEW and Alabama Power, Shelton said. He praised the efforts of the safety committees across the company, but warned employees against becoming complacent. "All the safety committees in Power Delivery, Transmission, Generation and the guys that work in the hydro dams do a great job, but let's continue to make Target Zero our No. 1 goal and work safely each and every day," Shelton said. Raymond: Financial outlook good IBEW leader says safety No. 1 concern Raymond spoke of economic challenges. Shelton said technology is boosting job safety.

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