The two companies inked a 20-year power purchase agreement, wherein, the utility will purchase electricity produced at the 220MW Buffalo Dunes project.
The $300m project is located in Kansas and is expected to be operational in 2014.
Commenting on the agreement Alabama Power resource planning director John Kelly remarked that the utility is consistently seeking environmental friendly sources of power.
The deal mirrors a previously agreed deal with the Chisholm View Wind Project.
"These two agreements represent a win-win for the company and the people we serve," said Kelly.
Alabama Power currently serves over 1.4 million customers in the southern state of US.
