Document:

Exhibit 1.1

                              ALABAMA POWER COMPANY

                                       TO

                              JPMORGAN CHASE BANK,
                                     TRUSTEE

                      TWENTY-EIGHTH SUPPLEMENTAL INDENTURE

                           DATED AS OF AUGUST 25, 2004

                      SERIES BB FLOATING RATE SENIOR NOTES

                               DUE AUGUST 25, 2009

<PAGE>

                                Table of Contents

                                                                      Page

ARTICLE 1     Series BB Senior Notes....................................2

SECTION 101.  Establishment.............................................2
              -------------
SECTION 102.  Definitions...............................................3
              -----------
SECTION 103.  Payment of Principal and Interest.........................4
              ---------------------------------
SECTION 104.  Determination of Interest Rate............................5
              ------------------------------
SECTION 105.  Denominations.............................................6
              -------------
SECTION 106.  Global Securities.........................................6
              -----------------
SECTION 107.  Transfer..................................................7
              --------
SECTION 108.  Redemption at the Company's Option........................7
              ----------------------------------

ARTICLE 2     Miscellaneous Provisions..................................7

SECTION 201.  Recitals by Company.......................................7
              -------------------
SECTION 202.  Ratification and Incorporation of Original
                    Indenture...........................................7
SECTION 203.  Executed in Counterparts..................................7
              ------------------------

EXHIBIT A     FORM OF SERIES BB NOTE .................................A-1

EXHIBIT B     CERTIFICATE OF AUTHENTICATION ..........................B-1

<PAGE>

     THIS TWENTY-EIGHTH SUPPLEMENTAL INDENTURE is made as of the 25th day of
August, 2004, by and between ALABAMA POWER COMPANY, an Alabama corporation, 600
North 18th Street, Birmingham, Alabama 35291 (the "Company"), and JPMORGAN CHASE
BANK (formerly known as The Chase Manhattan Bank), a New York banking
corporation, 4 New York Plaza, New York, New York 10004 (the "Trustee").

                              W I T N E S S E T H:

     WHEREAS, the Company has heretofore entered into a Senior Note Indenture,
dated as of December 1, 1997 (the "Original Indenture"), with the Trustee, as
supplemented by a First Supplemental Indenture, dated as of December 12, 1997
(the "First Supplemental Indenture"), a Second Supplemental Indenture, dated as
of February 26, 1998 (the "Second Supplemental Indenture"), a Third Supplemental
Indenture, dated as of April 23, 1998 (the "Third Supplemental Indenture"), a
Fourth Supplemental Indenture, dated as of August 19, 1998 (the "Fourth
Supplemental Indenture"), a Fifth Supplemental Indenture, dated as of September
17, 1998 (the "Fifth Supplemental Indenture"), a Sixth Supplemental Indenture,
dated as of September 24, 1998 (the "Sixth Supplemental Indenture"), a Seventh
Supplemental Indenture, dated as of October 15, 1998 (the "Seventh Supplemental
Indenture"), an Eighth Supplemental Indenture, dated as of November 3, 1998 (the
"Eighth Supplemental Indenture"), a Ninth Supplemental Indenture, dated as of
November 17, 1998 (the "Ninth Supplemental Indenture"), a Tenth Supplemental
Indenture, dated as of May 26, 1999 (the "Tenth Supplemental Indenture"), an
Eleventh Supplemental Indenture, dated as of August 19, 1999 (the "Eleventh
Supplemental Indenture"), a Twelfth Supplemental Indenture, dated as of
September 30, 1999 (the "Twelfth Supplemental Indenture"), a Thirteenth
Supplemental Indenture, dated as of May 18, 2000 (the "Thirteenth Supplemental
Indenture"), a Fourteenth Supplemental Indenture, dated as of August 29, 2001
(the "Fourteenth Supplemental Indenture"), a Fifteenth Supplemental Indenture,
dated as of August 29, 2001 (the "Fifteenth Supplemental Indenture"), a
Sixteenth Supplemental Indenture, dated as of June 28, 2002 (the "Sixteenth
Supplemental Indenture"), a Seventeenth Supplemental Indenture, dated as of
October 22, 2002 (the "Seventeenth Supplemental Indenture"), an Eighteenth
Supplemental Indenture, dated as of November 26, 2002 (the "Eighteenth
Supplemental Indenture"), a Nineteenth Supplemental Indenture, dated as of
December 12, 2002 (the "Nineteenth Supplemental Indenture"), a Twentieth
Supplemental Indenture, dated as of February 19, 2003 (the "Twentieth
Supplemental Indenture"), a Twenty-First Supplemental Indenture, dated as of
February 19, 2003 (the "Twenty-First Supplemental Indenture"), a Twenty-Second
Supplemental Indenture, dated as of March 14, 2003 (the "Twenty-Second
Supplemental Indenture"), a Twenty-Third Supplemental Indenture, dated as of
April 23, 2003 (the "Twenty-Third Supplemental Indenture"), a Twenty-Fourth
Supplemental Indenture, dated as of May 7, 2003 (the "Twenty-Fourth Supplemental
Indenture"), a Twenty-Fifth Supplemental Indenture, dated as of November 20,
2003 (the "Twenty-Fifth Supplemental Indenture"), a Twenty-Sixth Supplemental
Indenture, dated as of February 17, 2004 (the "Twenty-Sixth Supplemental
Indenture") and a Twenty-Seventh Supplemental Indenture, dated as of April 21,
2004 (the "Twenty-Seventh Supplemental Indenture");

     WHEREAS, the Original Indenture is incorporated herein by this reference
and the Original Indenture, as heretofore supplemented and as further
supplemented by this Twenty-Eighth Supplemental Indenture, is herein called the
"Indenture";

     WHEREAS, under the Original Indenture, a new series of Senior Notes may at
any time be established pursuant to a supplemental indenture executed by the
Company and the Trustee;

     WHEREAS, the Company proposes to create under the Indenture a new series of
Senior Notes;

     WHEREAS, additional Senior Notes of other series hereafter established,
except as may be limited in the Original Indenture as at the time supplemented
and modified, may be issued from time to time pursuant to the Indenture as at
the time supplemented and modified; and

     WHEREAS, all conditions necessary to authorize the execution and delivery
of this Twenty-Eighth Supplemental Indenture and to make it a valid and binding
obligation of the Company have been done or performed.

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

                         ARTICLE 1Series BB Senior Notes

         SECTION 101. Establishment. There is hereby established a new series of
Senior Notes to be issued under the Indenture, to be designated as the Company's
Series BB Floating Rate Senior Notes due August 25, 2009 (the "Series BB
Notes").

         There are to be authenticated and delivered $250,000,000 aggregate
principal amount of Series BB Notes, and such principal amount of the Series BB
Notes may be increased from time to time pursuant to Section 301 of the Original
Indenture. All Series BB Notes need not be issued at the same time and such
series may be reopened at any time, without the consent of any Holder, for
issuances of additional Series BB Notes. Any such additional Series BB Notes
will have the same interest rate, maturity and other terms as those initially
issued. No Series BB Notes shall be authenticated and delivered in excess of the
principal amount as so increased except as provided by Sections 203, 303, 304 or
907 of the Original Indenture. The Series BB Notes shall be issued in definitive
fully registered form.

         The Series BB Notes shall be issued in the form of one or more Global
Securities in substantially the form set out in Exhibit A hereto. The Depositary
with respect to the Series BB Notes shall be The Depository Trust Company.

         The form of the Trustee's Certificate of Authentication for the Series
BB Notes shall be in substantially the form set forth in Exhibit B hereto.

         Each Series BB Note shall be dated the date of authentication thereof
and shall bear interest from the date of original issuance thereof or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for.

         The Series BB Notes will not have a sinking fund.

         SECTION 102. Definitions. The following defined terms used herein
shall, unless the context otherwise requires, have the meanings specified below.
Capitalized terms used herein for which no definition is provided herein shall
have the meanings set forth in the Original Indenture.

         "Calculation Agent" means JPMorgan Chase Bank, or its successor
appointed by the Company, acting as calculation agent.

         "Interest Determination Date" means the second London Business Day
immediately preceding the first day of the relevant Interest Period.

         "Interest Payment Dates" means February 25, May 25, August 25 and
November 25 of each year, commencing November 25, 2004; provided, however, in
the event that any Interest Payment Date would otherwise be a day that is not a
Business Day, the Interest Payment Date will be the next succeeding Business
Day, except that if such Business Day is in the next calendar month, such
Interest Payment Date shall be the immediately preceding Business Day, in each
case with the same force and effect as if made on the date the payment was
originally payable.

         "Interest Period" means the period commencing on an Interest Payment
Date (or, with respect to the initial Interest Period only, commencing on the
Original Issue Date) and ending on the day before the next succeeding Interest
Payment Date.

         "LIBOR" for any Interest Determination Date will be the Reported Rate
for deposits in U.S. dollars having a maturity of three months for a period
commencing on the second London Business Day immediately following the Interest
Determination Date in amounts of not less than $1,000,000, at approximately
11:00 a.m., London time, on the Interest Determination Date.

         "London Business Day" means a day that is a Business Day and a day on
which dealings in deposits in U.S. dollars are transacted, or with respect to
any future date are expected to be transacted, in the London interbank market.

         "Original Issue Date" means August 25, 2004.

         "Rate Quotation" is defined in Section 104 hereof.

         "Regular Record Date" means, with respect to each Interest Payment
Date, the close of business on the 15th calendar day preceding such Interest
Payment Date (whether or not a Business Day).

         "Reported Rate" means the rate that appears on Telerate Page 3750.

         "Representative Amounts" is defined in Section 104 hereof.

         "Stated Maturity" means August 25, 2009.

         "Telerate Page 3750" means the display designated on page 3750 on
Moneyline Telerate, Inc. (or such other page as may replace the 3750 page on
that service or such other service as may be nominated by the British Bankers'
Association for the purpose of displaying London interbank offered rates for
U.S. dollar deposits).

         SECTION 103. Payment of Principal and Interest. The principal of the
Series BB Notes shall be due at Stated Maturity. The unpaid principal amount of
the Series BB Notes shall bear interest at the rates set quarterly pursuant to
Section 104 hereof until paid or duly provided for. Interest shall be paid
quarterly in arrears on each Interest Payment Date to the Person in whose name
the Series BB Notes are registered on the Regular Record Date for such Interest
Payment Date, provided that interest payable at the Stated Maturity of principal
as provided herein will be paid to the Person to whom principal is payable. Any
such interest that is not so punctually paid or duly provided for will forthwith
cease to be payable to the Holders on such Regular Record Date and may either be
paid to the Person or Persons in whose name the Series BB Notes are registered
at the close of business on a Special Record Date for the payment of such
defaulted interest to be fixed by the Trustee, notice whereof shall be given to
Holders of the Series BB Notes not less than ten (10) days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange, if any, on which the Series BB
Notes shall be listed, and upon such notice as may be required by any such
exchange, all as more fully provided in the Original Indenture.

         Payments of interest on the Series BB Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest
payments for the Series BB Notes shall be computed and paid on the basis of the
actual number of days elapsed over a 360 day year.

         Payment of the principal and interest due at the Stated Maturity of the
Series BB Notes shall be made upon surrender of the Series BB Notes at the
Corporate Trust Office of the Trustee. The principal of and interest on the
Series BB Notes shall be paid in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. Payments of interest (including interest on any Interest Payment
Date) will be made, subject to such surrender where applicable, at the option of
the Company, (i) by check mailed to the address of the Person entitled thereto
as such address shall appear in the Security Register or (ii) by wire transfer
or other electronic transfer at such place and to such account at a banking
institution in the United States as may be designated in writing to the Trustee
at least sixteen (16) days prior to the date for payment by the Person entitled
thereto.

         SECTION 104. Determination of Interest Rate. The Series BB Notes will
bear interest for each Interest Period at a per annum rate determined by the
Calculation Agent, subject to the maximum interest rate permitted by New York or
other applicable state law, as such law may be modified by United States law of
general application. The interest rate applicable during each Interest Period
will be equal to LIBOR on the Interest Determination Date for such Interest
Period plus 0.19%; provided, however, that in certain circumstances described
below, the interest rate will be determined without reference to LIBOR. Promptly
upon such determination, the Calculation Agent will notify the Company and the
Trustee, if the Trustee is not then serving as the Calculation Agent, of the
interest rate for the new Interest Period. The interest rate determined by the
Calculation Agent, absent manifest error, shall be binding and conclusive upon
the beneficial owners and Holders of the Series BB Notes, the Company and the
Trustee.

         If the following circumstances exist on any Interest Determination
Date, the Calculation Agent shall determine the interest rate for the Series BB
Notes as follows:

                  (1) In the event no Reported Rate appears on Telerate Page
         3750 as of approximately 11:00 a.m., London time, on an Interest
         Determination Date, the Calculation Agent shall request the principal
         London offices of each of four major banks in the London interbank
         market selected by the Calculation Agent (after consultation with the
         Company) to provide a quotation of the rate (the "Rate Quotation") at
         which three month U.S. dollar deposits in amounts of not less than
         $1,000,000 are offered by it to prime banks in the London interbank
         market, as of approximately 11:00 a.m., London time, on such Interest
         Determination Date, that is representative of single transactions at
         such time (the "Representative Amounts"). If at least two Rate
         Quotations are provided, the interest rate will be the arithmetic mean
         of the Rate Quotations obtained by the Calculation Agent, plus 0.19%.

                  (2) In the event no Reported Rate appears on Telerate Page
         3750 as of approximately 11:00 a.m., London time, on an Interest
         Determination Date and there are fewer than two Rate Quotations, the
         interest rate will be the arithmetic mean of the rates quoted at
         approximately 11:00 a.m., New York City time, on such Interest
         Determination Date, by three major banks in New York City selected by
         the Calculation Agent (after consultation with the Company), for loans
         in Representative Amounts in U.S. dollars to leading European banks,
         having a maturity of three months for a period commencing on the second
         London Business Day immediately following such Interest Determination
         Date, plus 0.19%; provided, however, that if fewer than three banks
         selected by the Calculation Agent are quoting such rates, the interest
         rate for the applicable Interest Period will be the same as the
         interest rate in effect for the immediately preceding Interest Period.

         Upon the request of a Holder of the Series BB Notes, the Calculation
Agent will provide to such Holder the interest rate in effect on the date of
such request and, if determined, the interest rate for the next Interest Period.

         SECTION 105. Denominations. The Series BB Notes may be issued in
denominations of $1,000, or any integral multiple thereof.

         SECTION 106. Global Securities. The Series BB Notes will be issued in
the form of one or more Global Securities registered in the name of the
Depositary (which shall be The Depository Trust Company) or its nominee. Except
under the limited circumstances described below, Series BB Notes represented by
the Global Security will not be exchangeable for, and will not otherwise be
issuable as, Series BB Notes in definitive form. The Global Securities described
above may not be transferred except by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or to a successor Depositary or its nominee.

         Owners of beneficial interests in such a Global Security will not be
considered the Holders thereof for any purpose under the Indenture, and no
Global Security representing a Series BB Note shall be exchangeable, except for
another Global Security of like denomination and tenor to be registered in the
name of the Depositary or its nominee or to a successor Depositary or its
nominee. The rights of Holders of such Global Security shall be exercised only
through the Depositary.

         Subject to the procedures of the Depositary, a Global Security shall be
exchangeable for Series BB Notes registered in the names of persons other than
the Depositary or its nominee only if (i) the Depositary notifies the Company
that it is unwilling or unable to continue as a Depositary for such Global
Security and no successor Depositary shall have been appointed by the Company,
or if at any time the Depositary ceases to be a clearing agency registered under
the Securities Exchange Act of 1934, as amended, at a time when the Depositary
is required to be so registered to act as such Depositary and no successor
Depositary shall have been appointed by the Company, in each case within 90 days
after the Company receives such notice or becomes aware of such cessation, (ii)
the Company in its sole discretion determines that such Global Security shall be
so exchangeable, or (iii) there shall have occurred an Event of Default with
respect to the Series BB Notes. Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Series BB Notes
registered in such names as the Depositary shall direct.

         SECTION 107. Transfer. No service charge will be made for any transfer
or exchange of Series BB Notes, but payment will be required of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

         SECTION 108. Redemption at the Company's Option. The Series BB Notes
will not be redeemable at the option of the Company prior to the Stated
Maturity.

                                    ARTICLE 2

                            Miscellaneous Provisions

         SECTION 201. Recitals by Company. The recitals in this Twenty-Eighth
Supplemental Indenture are made by the Company only and not by the Trustee, and
all of the provisions contained in the Original Indenture in respect of the
rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of Series BB Notes and of this Twenty-Eighth Supplemental
Indenture as fully and with like effect as if set forth herein in full.

         SECTION 202. Ratification and Incorporation of Original Indenture. As
heretofore supplemented and as supplemented hereby, the Original Indenture is in
all respects ratified and confirmed, and the Original Indenture, the First
Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth
Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh
Supplemental Indenture, the Eighth Supplemental Indenture, the Ninth
Supplemental Indenture, the Tenth Supplemental Indenture, the Eleventh
Supplemental Indenture, the Twelfth Supplemental Indenture, the Thirteenth
Supplemental Indenture, the Fourteenth Supplemental Indenture, the Fifteenth
Supplemental Indenture, the Sixteenth Supplemental Indenture, the Seventeenth
Supplemental Indenture, the Eighteenth Supplemental Indenture, the Nineteenth
Supplemental Indenture, the Twentieth Supplemental Indenture, the Twenty-First
Supplemental Indenture, the Twenty-Second Supplemental Indenture, the
Twenty-Third Supplemental Indenture, the Twenty-Fourth Supplemental Indenture,
the Twenty-Fifth Supplemental Indenture, the Twenty-Sixth Supplemental
Indenture, the Twenty-Seventh Supplemental Indenture and this Twenty-Eighth
Supplemental Indenture shall be read, taken and construed as one and the same
instrument.

         SECTION 203. Executed in Counterparts. This Twenty-Eighth Supplemental
Indenture may be simultaneously executed in several counterparts, each of which
shall be deemed to be an original, and such counterparts shall together
constitute but one and the same instrument.

<PAGE>

         IN WITNESS WHEREOF, each party hereto has caused this instrument to be
signed in its name and behalf by its duly authorized officers, all as of the day
and year first above written.

ATTEST:                                  ALABAMA POWER COMPANY

By:      /s/Celia Shorts                 By:   /s/William B. Hutchins III
         Assistant Secretary                   William B. Hutchins, III
                                               Executive Vice President,
                                               Chief Financial Officer and
                                               Treasurer

ATTEST:                                  JPMORGAN CHASE BANK, as Trustee

By:                                      By:  /s/Carol Ng
         Nicholas Sberlati                    Carol Ng
         Trust Officer                        Vice President

<PAGE>

                                    EXHIBIT A

                             FORM OF SERIES BB NOTE

NO. __                                                    CUSIP NO.  010392 EM 6

                              ALABAMA POWER COMPANY

                       SERIES BB FLOATING RATE SENIOR NOTE

                               DUE AUGUST 25, 2009

       Principal Amount:                $__________________
       Regular Record Date:             15th calendar day prior to Interest
                                        Payment Date (whether or not a Business
                                        Day)
       Original Issue Date:             August 25, 2004
       Stated Maturity:                 August 25, 2009
       Interest Payment Dates:          February 25, May 25, August 25 and
                                        November 25
       Interest Rate:                   LIBOR plus 0.19% per annum, as set on
                                        each Interest Determination Date
       Interest Determination Dates     2nd London Business Day immediately
                                        preceding the first day of the relevant
                                        Interest Period
       Authorized Denomination:         $1,000 or any integral multiple thereof

         Alabama Power Company, an Alabama corporation (the "Company", which
term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to _________, or
registered assigns, the principal sum of ________________________________
DOLLARS ($___________) on the Stated Maturity shown above, and to pay interest
thereon from the Original Issue Date shown above, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
quarterly in arrears on each Interest Payment Date as specified above,
commencing on November 25, 2004, and on the Stated Maturity at the rate per
annum shown above until the principal hereof is paid or made available for
payment and on any overdue principal and on any overdue installment of interest.
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date (other than an Interest Payment Date that is the Stated
Maturity) will, as provided in such Indenture, be paid to the Person in whose
name this Note (the "Note") is registered at the close of business on the
Regular Record Date as specified above next preceding such Interest Payment
Date, provided that any interest payable at the Stated Maturity will be paid to
the Person to whom principal is payable. Except as otherwise provided in the
Indenture, any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Note is registered at the close
of business on a Special Record Date for the payment of such defaulted interest
to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of
this series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange, if any, on which the Notes of this series shall be
listed, and upon such notice as may be required by any such exchange, all as
more fully provided in the Indenture.

         The Series BB Notes (as defined on the reverse hereof) will bear
interest for each Interest Period at a per annum rate determined by the
Calculation Agent, subject to the maximum interest rate permitted by New York or
other applicable state law, as such law may be modified by United States law of
general application. The interest rate applicable during each Interest Period
will be equal to LIBOR on the Interest Determination Date for such Interest
Period plus 0.19%; provided, however, that in certain circumstances described
below, the interest rate will be determined without reference to LIBOR. Promptly
upon such determination, the Calculation Agent will notify the Company and the
Trustee, if the Trustee is not then serving as the Calculation Agent, of the
interest rate for the new Interest Period. The interest rate determined by the
Calculation Agent, absent manifest error, shall be binding and conclusive upon
the beneficial owners and Holders of the Series BB Notes, the Company and the
Trustee.

         If the following circumstances exist on any Interest Determination
Date, the Calculation Agent shall determine the interest rate for the Series BB
Notes as follows:

                  (1) In the event no Reported Rate appears on Telerate Page
         3750 as of approximately 11:00 a.m., London time, on an Interest
         Determination Date, the Calculation Agent shall request the principal
         London offices of each of four major banks in the London interbank
         market selected by the Calculation Agent (after consultation with the
         Company) to provide a quotation of the rate (the "Rate Quotation") at
         which three month U.S. dollar deposits in amounts of not less than
         $1,000,000 are offered by it to prime banks in the London interbank
         market, as of approximately 11:00 a.m., London time, on such Interest
         Determination Date, that is representative of single transactions at
         such time (the "Representative Amounts"). If at least two Rate
         Quotations are provided, the interest rate will be the arithmetic mean
         of the Rate Quotations obtained by the Calculation Agent, plus 0.19%.

                  (2) In the event no Reported Rate appears on Telerate Page
         3750 as of approximately 11:00 a.m., London time, on an Interest
         Determination Date and there are fewer than two Rate Quotations, the
         interest rate will be the arithmetic mean of the rates quoted at
         approximately 11:00 a.m., New York City time, on such Interest
         Determination Date, by three major banks in New York City selected by
         the Calculation Agent (after consultation with the Company), for loans
         in Representative Amounts in U.S. dollars to leading European banks,
         having a maturity of three months for a period commencing on the second
         London Business Day immediately following such Interest Determination
         Date, plus 0.19%; provided, however, that if fewer than three banks
         selected by the Calculation Agent are quoting such rates, the interest
         rate for the applicable Interest Period will be the same as the
         interest rate in effect for the immediately preceding Interest Period.

         "Calculation Agent" means JPMorgan Chase Bank, or its successor
appointed by the Company, acting as calculation agent.

         "Interest Determination Date" means the second London Business Day
immediately preceding the first day of the relevant Interest Period.

         "Interest Period" means the period commencing on an Interest Payment
Date (or, with respect to the initial Interest Period only, commencing on the
Original Issue Date) and ending on the day before the next succeeding Interest
Payment Date.

         "LIBOR" for any Interest Determination Date will be the Reported Rate
for deposits in U.S. dollars having a maturity of three months for a period
commencing on the second London Business Day immediately following the Interest
Determination Date in amounts of not less than $1,000,000, at approximately
11:00 a.m., London time, on the Interest Determination Date.

         "London Business Day" means a day that is a Business Day and a day on
which dealings in deposits in U. S. dollars are transacted, or with respect to
any future date are expected to be transacted, in the London interbank market.

         "Reported Rate" means the rate that appears on Telerate Page 3750.

         "Telerate Page 3750" means the display designated on page 3750 on
Moneyline Telerate, Inc. (or such other page as may replace the 3750 page on
that service or such other service as may be nominated by the British Bankers'
Association for the purpose of displaying London interbank offered rates for U.
S. dollar deposits).

         Payments of interest on this Note will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for this Note
shall be computed and paid on the basis of the actual number of days elapsed
over a 360-day year. In the event that any Interest Payment Date would otherwise
be a day that is not a Business Day, the Interest Payment Date will be the next
succeeding Business Day, except that if such Business Day is in the next
calendar month, such Interest Payment Date shall be the immediately preceding
Business Day, in each case with the same force and effect as if made on the date
the payment was originally payable. A "Business Day" shall mean any day other
than a Saturday or a Sunday or a day on which banking institutions in New York
City are authorized or required by law or executive order to remain closed or a
day on which the Corporate Trust Office of the Trustee is closed for business.

         Payment of the principal of and interest due at the Stated Maturity of
the Series BB Notes shall be made upon surrender of the Series BB Notes at the
Corporate Trust Office of the Trustee. The principal of and interest on the
Series BB Notes shall be paid in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. Payment of interest (including interest on an Interest Payment
Date) will be made, subject to such surrender where applicable, at the option of
the Company, (i) by check mailed to the address of the Person entitled thereto
as such address shall appear in the Security Register or (ii) by wire transfer
or other electronic transfer at such place and to such account at a banking
institution in the United States as may be designated in writing to the Trustee
at least 16 days prior to the date for payment by the Person entitled thereto.

         REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

         Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                                                     ALABAMA POWER COMPANY

                                                     By:
                                                        ------------------------
                                                              Vice President

Attest:

         Assistant Secretary

                  {Seal of ALABAMA POWER COMPANY appears here}

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                                     JPMORGAN CHASE BANK,

                                                     as Trustee

                                                     By:
                                                        ------------------------

                                                              Vice President

<PAGE>

                             (Reverse Side of Note)

         This Note is one of a duly authorized issue of Senior Notes of the
Company (the "Notes"), issued and issuable in one or more series under a Senior
Note Indenture, dated as of December 1, 1997, as supplemented (the "Indenture"),
between the Company and JPMorgan Chase Bank (formerly known as The Chase
Manhattan Bank), Trustee (the "Trustee," which term includes any successor
trustee under the Indenture), to which Indenture and all indentures incidental
thereto reference is hereby made for a statement of the respective rights,
limitation of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Notes issued thereunder and of the terms upon
which said Notes are, and are to be, authenticated and delivered. This Note is
one of the series designated on the face hereof as Series BB Floating Rate
Senior Notes due August 25, 2009 (the "Series BB Notes") which is unlimited in
aggregate principal amount. Capitalized terms used herein for which no
definition is provided herein shall have the meanings set forth in the
Indenture.

     The Series BB Senior Notes will not be redeemable at the option of the
Company prior to the Stated Maturity.

         The Series BB Notes will not have a sinking fund.

         If an Event of Default with respect to the Notes of this series shall
occur and be continuing, the principal of the Notes of this series may be
declared due and payable in the manner, with the effect and subject to the
conditions provided in the Indenture.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes of each series to be affected
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in principal amount of the Notes at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders of
all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registerable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency
of the Company for such purpose, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar and duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of this series, of
authorized denominations and of like tenor and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. No service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         The Notes of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Notes of this series are exchangeable for a like aggregate principal amount of
Notes of this series of a different authorized denomination, as requested by the
Holder surrendering the same upon surrender of the Note or Notes to be exchanged
at the office or agency of the Company.

         This Note shall be governed by, and construed in accordance with, the
internal laws of the State of New York.

<PAGE>

                                  ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM- as tenants in             UNIF GIFT MIN ACT- _______ Custodian ________
         common                                        (Cust)            (Minor)
TEN ENT- as tenants by the
         entireties                               under Uniform Gifts to
 JT TEN- as joint tenants                                Minors Act
         with right of
         survivorship and                        ________________________
         not as tenants                                  (State)
         in common

                    Additional abbreviations may also be used

                          though not on the above list.

         FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

(please insert Social Security or other identifying number of assignee)

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF
ASSIGNEE

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing

agent to transfer said Note on the books of the Company, with full power of
substitution in the premises.

Dated:
       --------------------         --------------------------------------------

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular without
alteration or enlargement, or any change whatever.

<PAGE>

                                    EXHIBIT B

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                                     JPMORGAN CHASE BANK,

                                                     as Trustee

                                                     By:
                                                        ------------------------
                                                           Authorized OfficerSEVENTEENTH WAIVER UNDER CREDIT AGREEMENT

EXHIBIT
10.1

SECOND AMENDMENT TO TERM LOAN,
REVOLVING CREDIT, GUARANTEE

AND SECURITY AGREEMENT

          SECOND AMENDMENT
(this "Amendment"), dated
as of August 20, 2004, to the Term Loan, Revolving Credit, Guarantee and
Security Agreement, dated as of July 1, 2004 (as heretofore amended,
supplemented or otherwise modified, the "Credit Agreement"), among
MISSISSIPPI CHEMICAL CORPORATION (the "Borrower"), the subsidiaries of
the Borrower party thereto (collectively, the "Guarantors"), each a
debtor and debtor-in-possession in a case pending under Chapter 11 of the
Bankruptcy Code, the several banks and other financial institutions or entities
from time to time parties thereto (the "Lenders"), CITICORP NORTH
AMERICA, INC as administrative agent for the Lenders (in such capacity, the "Administrative
Agent") and CITIGROUP GLOBAL MARKETS INC., and PERRY PRINCIPALS
INVESTMENTS, LLC as Joint Lead Arrangers.

W I T N E S S
E T H :

          WHEREAS, the Borrower, the Guarantors, the Lenders, the
Administrative Agent and the Joint Lead Arrangers are parties to the Credit
Agreement;

          WHEREAS, the Borrower and Guarantors have requested that
the Lenders agree to amend certain provisions of the Credit Agreement as more
fully set forth below; and

          WHEREAS, the Lenders are willing to agree to such
requested amendments, but only upon the terms and conditions of this Amendment;

          NOW, THEREFORE, in consideration of the premises and for
other good and valuable consideration the receipt of which is hereby
acknowledged, the parties hereto agree as follows:

          1.      Defined
Terms.  Unless otherwise defined herein, capitalized terms are used herein
as defined in the Credit Agreement.

          2.     
Amendment to Section 5.11 (Approved Plan) of the Credit Agreement. 
Section 5.11 of the Credit Agreement is hereby amended by deleting the date
"August 23, 2004" where it appears therein and by inserting in-lieu thereof the
date:  "September 24, 2004".

          3.      Representations
and Warranties; No Default.  After giving effect to this Amendment, each of
the Borrower and the Guarantors hereby represents and warrants that all
representations and warranties contained in the Credit Agreement are true and
correct on and as of the date hereof (unless stated to relate to a specific
earlier date, in which case, such representations and warranties shall be true
and correct as of such earlier date) and that no Default or Event of Default
shall have occurred and be continuing or would result from the execution and
delivery of this Amendment.

          4.     
Conditions to Effectiveness of this Amendment.  This Amendment
shall become effective as of the date hereof upon receipt by the Administrative
Agent of counterparts of this Amendment duly executed by the Borrower, the
Guarantors and the Required Lenders.

          5.     
Continuing Effect; No Other Amendments or Waivers.  Except as
expressly amended pursuant to this Amendment, the Credit Agreement and the
other Loan Documents are and shall continue to be in full force and effect in
accordance with their respective terms, and this Amendment shall not constitute
the Lenders' consent or indicate their willingness to consent to any other
amendment, modification or waiver of the Credit Agreement or any other Loan
Document, including without limitation, any amendment, modification or waiver
of any Section amended pursuant to this Amendment for any other date or time
period or in connection with any other transaction.

          6.     
Counterparts.  This Amendment may be executed by one or more of
the parties hereto in any number of separate counterparts (which may include
counterparts delivered by facsimile transmission), and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.

          7.     
Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF  NEW
  YORK.

 

          IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

                                                                         MISSISSIPPI CHEMICAL CORPORATION, as

                                                                        
Debtor and Debtor-In-Possession, and Borrower

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Senior Vice President and

          Chief Financial Officer

MISSISSIPPI NITROGEN, INC., as Debtor and

Debtor-In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

MISSCHEM NITROGEN, L.L.C., as Debtor and

Debtor-In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

MISSISSIPPI CHEMICAL COMPANY, L.P., as

Debtor and Debtor-In-Possession

By: MISSISSIPPI CHEMICAL MANAGEMENT

COMPANY, Sole General Partner 

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

MISSISSIPPI CHEMICAL MANAGEMENT

COMPANY, as Debtor and Debtor-In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

 

MISSISSIPPI PHOSPHATES CORPORATION, as

Debtor and Debtor-In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

MISSISSIPPI POTASH, INC., as

Debtor and Debtor-In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

EDDY POTASH, INC., as Debtor and

Debtor-In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

TRIAD NITROGEN, L.L.C., as Debtor and Debtor-

In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

MELAMINE CHEMICALS, INC., as Debtor and

Debtor-In-Possession

By: /s/ Timothy A. Dawson                               

Name:  Timothy A. DAWSON

Title:  Vice President of Finance

ADMINISTRATIVE
AGENT AND LENDERS:

CITICORP NORTH AMERICA,
INC., as

Administrative Agent and Lender

By: /s/ Christopher Dunlop                                

Name:  CHRISTOPHER DUNLOP

Title:  Vice President

CITIGROUP FINANCIAL
PRODUCTS INC., as

Lender

By: /s/ Jeffrey
S. Jacob                         

Name:  JEFFREY S. JACOB

Title:  Managing Director

 PERRY PRINCIPALS INVESTMENTS LLC,
as

Lender 

By: /s/ Nathaniel J. Klipper                               

Name:  NATHANIEL J. KLIPPER

Title:  Managing Director

 VARDE INVESTMENT
PARTNERS, L.P.

By: Varde Investment Partners G.P., LLC, its

General Partner

By:  Varde Partners, L.P., its Managing Member

By:  Varde Partners, Inc., its General Partner

By: /s/
Marcia L. Page                                      

Name:  Marcia L. Page

Title:    Managing Director

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