8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)     August 5, 1998


                              ALABAMA POWER COMPANY
             (Exact name of registrant as specified in its charter)


            Alabama                1-3164                  63-0004250
(State or other jurisdiction  (Commission File    (IRS Employer Identification
         of incorporation)         Number)                 No.)



600 North 18th Street, Birmingham, Alabama                       35291
(Address of principal executive offices)                       (Zip Code)


Registrant's telephone number, including area code            (205) 250-1000
                                                              --------------



                                       N/A
          (Former name or former address, if changed since last report)





Item 5.    Other Events

Incorporation of Certain Documents by Reference

           Pursuant to Rule 411of Regulation C under the Securities Act of 1933,
as amended (the "Securities Act"), and in reliance on MBIA Insurance
Corporation, SEC No-Action Letter (September 6, 1996), Alabama Power Company
(the "Company") does hereby incorporate by reference the consolidated financial
statements of MBIA Insurance Corporation and Subsidiaries as of December 31,
1997 and December 31, 1996, and for each of the three years in the period ended
December 31, 1997, included in the Annual Report on Form 10-K of MBIA Inc.
(which was filed with the Securities and Exchange Commission on March 30, 1998)
into (i) this Current Report on Form 8-K; (ii) the Company's Registration
Statement on Form S-3 (File Nos. 333-53299, 333-53299-01, 333-53299-02 and
333-53299-03); (iii) the preliminary prospectus supplement dated August 5, 1998
relating to the Company's Series D % Senior Insured Quarterly Notes due
September 30, 2018 (the "Series D Senior Notes") filed pursuant to Rule 424(b)
under the Securities Act; and (iv) the final prospectus supplement relating to
the Series D Senior Notes to be filed pursuant to Rule 424(b) under the
Securities Act.

           In connection with the incorporation of such documents by reference,
the Company is hereby filing the consent of PricewaterhouseCoopers LLP,
independent accountants for MBIA Insurance Corporation, insurer of the Series D
Senior Notes, to the use of its name in such prospectus supplement. The consent
of PricewaterhouseCoopers LLP is filed herewith as Exhibit 23.


Item 7.    Financial Statements, Pro Forma Financial Information and Exhibits

(a)        Not applicable
(b)        Not applicable
(c)        Exhibits

           The following document is filed herewith in accordance with Item
601(b) of Regulation S-K.

    Exhibit No.                        Description

        23            Consent of PricewaterhouseCoopers LLP






                                    SIGNATURE

                Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.


Date:     August 6, 1998                                ALABAMA POWER COMPANY



                                                        By    /s/Wayne Boston
                                                                 Wayne Boston
                                                             Assistant Secretary

EX-23

                                                                    EXHIBIT 23

                       CONSENT OF INDEPENDENT ACCOUNTANTS


We consent to the incorporation by reference in the Prospectus Supplement dated
August 5, 1998 (to Prospectus dated June 30, 1998) of Alabama Power Company (the
"Company"), which is incorporated by reference in Form 8-K of the Company dated
August 5, 1998, of our report dated February 3, 1998 on our audits of the
consolidated financial statements of MBIA Insurance Corporation and Subsidiaries
as of December 31, 1997 and 1996, and for each of the three years in the period
ended December 31, 1997. We also consent to the reference to our firm under the
caption "Experts" in the Prospectus Supplement.

                                               /s/  PricewaterhouseCoopers LLP


New York, New York
August 6, 1998