Alerts set up on Home > Set Preference is not following the time zone specified on Home > Set Preferences

1.    Navigate to Setup > Company > Company Information

2.    Select PST Time Zone (GMT8-08:00) Pacific Time (US & Canada) on Time Zone field

3.    Click Save

4.    Navigate to Home > Set Preferences > General tab

5.    On Localization section, Time Zone is set to EST (GMT-05:00) Eastern Time (US & Canada)

6.    Navigate to Alerts Tab

7.    Set First Selection to 7:00 am 

8.    Click Save

Notice that Email is received at 10 am EST not at 7am EST. This is because Alerts are following the Time Zone set on the Company Preference. Workaround would be to set alert schedule based on Time Zone set in the Company Preferences.