SO - Earnings call transcript Q1 2020

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Operator

Good morning. My name is Nelson, and I will be your conference operator today. At this time, I would like to welcome everyone to Southern Company's First Quarter 2020 Earnings Call. [Operator Instructions] Please note, today's call is being recorded Thursday, April 30, 2020. I would now like to turn the call over to Mr. Director. Relations Investor Gammill, Scott Please go sir. ahead,

Scott Gammill

Thank First Quarter Nelson. Good afternoon, Company's Southern to welcome XXXX and you, Earnings Call.

Joining Company; Chief Fanning, Officer me Chairman, President and Tom today Chief of and Officer. Financial Southern Evans, Drew are Executive

and those Let XX-K, those today addition filings. me forward-looking indicated subsequent important could in to statements to Form results including Various in cause information. the remind actual be discussed historical differ forward-looking Form we'll factors you, XX-Qs in making our providing materially statements, from

In applicable included information released to financial Relations addition, which as non-GAAP this on call, both financial we conference well are we will Investor GAAP website present available the at call. Reconciliations this our slides this information in investor.southerncompany.com. the morning, as are for measure the on

I'll the to Tom time, this over turn Fanning. call At

Tom Fanning

for and well. that afternoon you Good thank us. I hope you're joining all

the can to as reported for adjusted coronavirus results see you current you environment, sales morning, ahead estimate. we this solid As short-term provide Drew quarter, our and will we from us we well strong year will our of more to so positions This detail first materials the the on look released turn our coronavirus. ahead overcome the impacts financials the go from amid momentarily, to pandemic. with I operating start

were throughout continue We Company, internet response our customer. activating clean, provide to in safe, adjustments the we prepared healthy employee for across company February. reliable make while our necessary Southern The affordable business safe, top priority every to remains team and our and energy quickly keeping well

has And COVID-XX our been execute for exceptional. to business. continue to-date, our We plans operational performance pandemic

of our well about currently nor do foresee reliability infrastructure, remarkably utilities for chain and our of the often the during talk electric We and resilience this gas We delivered which our projects. natural supply have has not construction disruptions importance we experienced or time.

workforce. I reliability been employees our want every our who our resiliency asset to to has have and COVID-XX, of of face really risen thank biggest the In challenge.

equipment deploying against the and virus. We to have rapidly protective been implementing resourceful protocols effective procuring necessary and and safeguard

Our the clock. operations work and continued to service have customer around teams

We in new our teams are stakeholders work and with in we way. communicating workforce are whole external to finding remotely, a solutions effectively and

wide a work support well citizen operation during being and implemented the range their wherever company. of We've physical, to continue this of financial support be superb to It's our the as projects our a of they we of to emotional company a time hallmark also our employees serve.

during we we difficult can So times. these how communities our best worked to have assist identify,

its our the of sorry, in Southern have pandemic. targeting expect, are assist commitment those charitable and subsidiaries a nearly employees contributions. and in even do coming will we I'm foundation more the volunteer of And months. hours I to thousands million financial impacted by logged $XX coronavirus in --

we to and We turn focused maintain Plant November a dates. as plan Let’s remain And in-service now refined XXXX aggressive X. Unit February, aggressive to completion help XXXX a completion meet the reflect March in X a Unit May those November work update an an on continue target position for dates. on-site to X. work to on we tool site Vogtle to regulatory-approved 'XX Units for and Recall, XXXX the X us and plan target meeting

That today. completed open plan. X vessel today, work have these Despite behind in the refined April's plan. X Unit with benchmark Through the challenges, X. aggressive complete. we We breaking construction for work about site performance new, was also approximately was due challenged aggressive COVID site is XX and came milestone consistent November direct production laid notably, out generally a p.m. related impact, Unit just March, to slightly schedule which XX% testing. And us put for late just

quarter, the We of the setting also reached installation during the containment including Unit X topic. the several vessel interim construction train milestones and Polar for

of update productivity, protect commitment we recent want Before giving safety community. have proactive to the intended the number on-site highlight our of workforce the beginning I of measures taken community and to workforce Since a our and in to our COVID-XX. pandemic, the the on of spread an the surrounding against

areas, at its who can distancing site implemented strategy, and Among the and these medical provided As mandating we’ve a we eliminating possible we out social enhanced common as implement tell work sanitation protective of measures, to guide transportation actions the have the independent and such practices spread to spreading do additional so. engage our increasing advisors equipment, reduce measures, virus. those other group to

protocol Beyond to of these quickly to off-site. build designed tested will to work. clearing on, results, mineralize around clinic, medical an turn promptly close facilitation to test improved contacts closed their early expedite and isolated for proximity our We on-site time personnel acted anyone basics, screening on-site that ensured and return self

regulatory time, close projects consultation local authorities. well and as commission this and have in co-owners the nuclear Throughout we as with the state remained

Commended call consulting We Notably other keep members on their site, Building the for and to North safe of last President with duty Trade are also Company American healthy. going month, Southern construction Unions the and above mega of monitoring projects. the and beyond Vogtle the

turning Now recent our to progress.

site X was to the electrical end at site March build to Unit with monthly mechanical, March. subcontract consistent aggressive largely overall began plan, plan work the and aggressive Although work production activities of backlog a through refined

as That workforce coronavirus related began an the trend in including experiencing across increase site to was exacerbated pandemic, through the absenteeism. impact we April,

by take to of announced mitigate XX%. on workforce Two intent in density effort our we weeks COVID-XX, site to reduce an the ago, down impacts the and

this transition, effects we the sawtooth have we through past. near the As that to in similar experienced we term decrease production, in a see expect to work

and is productivity by operational reducing term efficiencies objectives to fatigue absenteeism. Longer workforce and gain

workforce. ahead, move effectiveness evaluate we As streamlined to we will the of our continue

recent know, you our into regularly ongoing factored we both have and schedule, and we evaluate As analysis. costs developments

first Looking its schedule.

events. work plan the which targets, been light slightly site prioritizing on pushed to aggressive of We keyword work fronts are X back continue and Unit have recent towards in

is our the expect on which for hydro the The to start start X testing, to August Unit in of next the X Unit cold currently timing cold the July major is functional testing, hot timeframe. to September hydro we expected planned of in timeframe. testing commence occur to June milestone Considering

On productivity we year and Unit for to to pre-pandemic the that aggressive stabilize able end of assumption maintaining fuel increase work load. levels, targets we the are are site plan X

performance meet November construction work benchmark project we completion As site X% complete consistent a that date, schedule. account is to per now we to with approximately aggressive need reminder, the of Taking per month about plan. our month into to the X%

down last is Now, this slightly discussed from X.X%, the we quarter.

our subcontract about X.XX%, outbreak the rate the the in-service was supports November focus meeting areas for regulatory-approved April, construction amid Critical completion remain pandemic of and performance. dates. even electrical of which Importantly, XXXX

XXXX, with X plan months consisting Unit May we back prioritization X to site regulatory-approved for Lastly, target of still to completion related date. aggressive provides and shifted the staffing, the six Unit have margin date work of which the on in-service the

site the we under date February, by in target refined Recall, out the to completion we plan laid for aggressive March. accelerated work X two months Unit

the of to prior day action the So takes back May, XXXX. current us

allocated With with quarter's additional contingency reduction In Power's productivity, construction the as remaining site this most procurement, in to aggressive of estimated subcontract cost time the the based cost. in in a the date forecast. recent approximately to support, scheduled regulatory-approved between change Power continue an contingency, million the assessment, project workforce. of combined and margin forecast. remaining of to field reflecting represent the contingency complete. and is cost XX its XXXX, in-service no Georgia capital XXXX now April cost work of Recall total the as first estimated capital impacts our risks XX% cost Georgia Based quarter associated well the or the November project of there Turning on embedded plan cost the cost allocation, schedule and

the we completion to few towards As the an Vogtle to that of The we Units hard at X the said, incredibly and of has have meaningful funds over have we environment contingency the to utilize progress worked progress at past create the expect site the team as led project. pandemic. X productivity. through community safety be our to continue the making as guide workforce we workforce few decision this paramount our streamlined remains while surrounding months the next and months even adjust we The at The smaller, managing more and of and improve unprecedented to to a site. pivotal will entirety seek

November and from Importantly, approved X. to service the meet regulatory Units X and we still expect both

our Drew, it on I'll turn over outlook. you now an financials and for updated to our

Drew Evans

Thanks, hope good afternoon, well. all Tom, I are and you everybody.

at XXXX adjusted start last the utilities. and state we to very quarter $X.XX first is year was our which year, completed last quarter. were As regulatory compared The constructive year higher Tom primary $X.XX, actions, the EPS estimate driver for than $X.XX which strong in above have to was mentioned, a our

us In from year-over-year, the aggressive non-fuel reconciliation in A reported package. addition, overcome an and and first to of in release included warmer detailed impact hence today's weather control, is cost able helped and our through decreased O&M to results quarter. were adjusted we earnings normal which

residential the normalized which modest quarter slightly weeks compared from two with to added our customers first system, across XX,XXX up impacts quarter. XXXX last natural for over were by the We flats, led gas in expectations. Weather electric sales last with customer retail consistent is the COVID-XX year of our only new and evidence the

assessment of potential the go business turn to of With our let's impacts. of top COVID-XX, mind, ahead and potential assessment --

impact from assessing the did COVID-XX we continually see are financial While earnings first in on potential a meaningful we impacts our business. not quarter,

outlook. coronavirus time, not affect expect we this materially do to impact At our long-term

plan to Our XXXX, the issue expected rate strong -- parent with a EPS to $XX announcements And foresee is we annual our of capital shareholder our week's we markets equity five-year both unchanged, commitment the XX%, demonstrate to $X.XX increase remains to long-term access good last subsidiaries. XXth not capital the do investment for our enhancing need continue billion dividend consecutive liquidity with and growth value. increase at is annual

focus potential of our near-term XXXX we expense our on COVID-XX think key about impact areas and As the sales, are liquidity. bad debt expectations

microphones, am better. Just so going hear switch moment, I a can me both to

whether demand retail slightly reflecting of our slightly far, electric working, the approximately higher first lower as thus at is end April, with retail total residential mentioned, forecast X%. than sales, Starting the to I as were Tele up normalized people March, sales, by quarter, demand, estimated begin for weather-normalized in

switched So cooling. April lows between and customer historically are heating and volatile

levels approximate to continue last demand over seen monitor our within these have reopen. at few stabilize businesses begin closely to We'll weeks. trends, states the as We

we economic stay mid-summer current year. that balance economic recovery a recovery, XXXX the territories, policies U-shaped for forecast on across modest are service reflects the the Looking a our of with phase of home out ahead, basing over the at

X% down retail an residential industrial assumptions the sales, on X% X%, to of range projections to a X%. or X% up and for these in basis XX%, indicate Using X% to overall to year are commercial whereas X%, normalize defined full whether down

As consistent completion month about of aggressive each customer per a construction site reminder, plans. X% about is with the

approximately Retail the non-critical year. sales total continuing throughout electrical $XXX with consolidated of a in plan the to on ranges on by these by mitigate to manage million impacts remainder $XXX million basis, these aggressively revenue them we to lower

is of in to the in While the environment. current a confidence current gives situation which XXXX, ability recession, us unprecedented, demonstrated cost the discipline deliver level in response our XXXX we similar to

impacts course, recovery. be will the of and the actual highly duration pace dependent economic stable on Of of polices

of appropriate level cost visibility expectations will an we hone these As control. around factors our improves, of

nature not impacts. anticipate model, contracted power of Southern it be we're business from to on pandemic largely from Company financial time, or expect gas. Southern we insulated sales COVID-XX do we impacts Power's Southern Due the this to At long-term significant

to has over Gas earnings year first half Company with net expected the remainder the consistent its of our full expect year forecast. already be in roughly of And quarter. Southern the achieved we income,

for In expense. in assessing sales, the debt are also addition to we bad potential an increase

we utilities, late disconnecting waiting our are customers payment fees. the And non are Specifically, payment. electric most utilities, country around sellers for temporarily not

Our in are debt incremental recovering defer future to for these pandemic -- taking related future regulators rate states expenses bad recovery this proceedings.

both sales bad bad may already helped In debt to place, addition, them have are have decoupled and and and mechanisms non-payment largely in may impacts. debt utilities from insulate gas our which

increased expect provisions lightning assist certain funding also in TTC with customers the programs in. to We eligible and built federal for like program

largely mitigated. Including mechanisms be and will customer programs, regulatory we that assistance believe expensive acts

-- and our $X Turning XXXX stands $XXX of the the on the completion we have now year-end in to taken in at March the relative further second steps liquidity quarter, Southern's liquidity liquidity actions took to we with strengthen billion net end currently quarter, depend by million $X of April. a In at billion. parent issuance over already including position, to a first

dividends, our ample have liquidity believe plans, weather in and debt as investment we elevated [ph] periods as we customer for [ph] non-payment juncture, this Apple of markets, potential At protect volatility COVID-related well

largely the deviate O&M EPS practice, we electric through for first with reason the reductions sales see our solid still guidance that we relative current will offset from loads belief year, current Consistent the no third objectives. is financial quarter. With impacts earnings come, after can peak pandemic-related our with quarter, to results to our historical to address

that will $X.XX. so with early the recognizing For the second persist, assume the predict it on EPS second [indiscernible], providing to quarter, retail we precision we are factors, adjusted of quarter is these too overall of all sales pressure like for

resulting allowed and a it customers, increase I'd settlement March, to In for Public the in between the ratio Mississippi Power regulatory matters. XX%. an like [ph], decrease brief Commission give rate Mississippi the breach turn to TSP equity update Tom, I in for on approved Before rate of back Mississippi Power unanimously staff Service and a some

front, requesting spend we XX the of with [ph] mid-February, of approval through verification filed in global July of period Georgia the XXXX. of $XXX and DCM PSC On million December

expect decision We August. from a in PFC

it stride all has to during job outstanding this I’d like period. focused new on at I for and our Southern back taken family has remained Before to the our an normal Tom, thank Everyone customer levels. turn

You've shown well, everyone with it that Tom. back and turn to total commitment. I superior performance hope I'll and stays

Tom Fanning

Thanks, Drew.

your As seeks Company, energy clean, pandemic, our a from we to reliable our resolute safe, recovery are in the commitment to at nation Southern and for provide affordable path customers. coronavirus

our engaged economies. are make policymakers they our and about with supporting recovery critical Southern State the as ensure reopening Company that efforts, and actively Federal both at subsidiaries level are we To decisions

federal Along Notably, part Alabama Subsector Initiative. the been were has Council, lead that which heavily work the Power's pandemic liaison power named recovery principal I Economic in to the of electric the CEO, do Mark Crosswhite and and the help with between as Revival I Coordinating involved the President's Government industry, Electricity efforts.

a leadership at Southern national level. Company continues its

two also I Before the we response businesses. In or damaged extraordinary experienced severe your take weekends and devastating hundreds homes recent of of our successive after service that storms. highlight questions, teams our want destroyed across Southeast we to of the tornadoes territories April,

and tirelessly restore service by the electric customers the Our frontlines were to employees on storms. worked to these affected thousands gas natural that of

duress during of proud our grateful for In Southern service continue over value the we coronavirus to work to restored effectively women I XX and with extraordinary customers improved aggregate, capacity to times. protocols. Company, men XXX,XXX within the customers hard am to who under of and each extremely deliver these hours, shareholders and work day to

potential as the In what serve. closing, through economies reasonable undoubtedly scenario, cost on we and currently positioning on global a to our view have pandemic U.S. the and recovery communities COVID-XX thoughtful Under are on will and a ourselves impacts we economic we mitigate financial impact aggressive control. lasting company

summer increase X. season productivity at for Southern warm the recovery, Units particularly of and The into next the work our several and will X as Vogtle instructive be and pace utilities monitor move we months to

remain our on to history in our shareholders. reliable long-term our long business commitments of and resilient over will delivering We keeping the employees customers, expect with and

Operator, us you take we ready questions. joining Thank for this are afternoon. now to

Operator

[Operator you. from Please with the of Shar Instructions] Our first comes Guggenheim Thank question Partners. line Pourreza proceed.

Tom Fanning

How are Shar. you? Hello,

Shar Pourreza

How Good. you guys. Hey, are doing?

Tom Fanning

Great.

Shar Pourreza

of So couple just questions a here.

for versus impact where April the How year? of on % flat assuming pieces. just with COVID slightly anything of they especially earnings we us figures remind normalized, thinking QX, you about X%, sort of, guess, your growth how OEM just up XX. of moving prior sales guidance a I that weaker March looking expectations, versus, range We're jurisdictions. at versus slide normal storms weather do for within of your We're Are versus reduction for QX X weather then much the else? to see in weather, sales in the And better-than-expected some the guidance lever. recent kind and coming guidance First, extrapolate, X% do COVID to was

Tom Fanning

to place you a that all I is know, broadly we when of of we set respect to question, without midpoint think range that a we the first with other guidance impacts expect that would So these range, think, do the land. the kind we

remain we the for consistent year. think I objectives financial with our

will add, we reaffirm. some I about I we know, should You know received conversation

quick. hit We peak January, third that’s never kind would of season, guidance the our periods. at which just interim that February. late be in that our the me through been guidance. be our we give then once as get a practice when real Let one guidance we has quarter of And update give to earnings reaffirm in -- It end to you so year the would

believe committed financial objectives. to We we're hitting our

is there the everything we does. run far. we course, that Of else uncertainty committed front said to we've remain everybody us, know But and same right with now we of reasonable in uncertainty so what impacts, with

we So sticking that. with are

is think the dividend. I further evidence that of recent in increase

else you Shar, there? did what want

Shar Pourreza

Sorry, the of and that have just impacted on weather through is weather is much impacts the XX, from How much versus the April. recent it March COVID from how that normalized, storms? slide you

Drew Evans

normalized. weather is That

So one of quarter. second I related have think other for guidance piece our just virtually strong all Shar, addressed I your estimate open. to question

a demand Second April's us is quarter expectation. light between big and of difference total and for you imagine that June’s typically terms expectation quarter a there's in can relatively

very be terms the some what in a period reduce sales. place of over is to retail are industrial. customer or residential, feel going We across is base, have we like also impact this balance the period expenses, measures is amount even commercial it's in will of the whether of looking the to those adjusted largely quarter And COVID-XX putting where constrained greatest you're though and the

mix in at for year, quarter, Also, So reported last you the that think just weather I we related. would $X.XX look $X.XX I of light. was that if take it

consistent the what already what out with is So we're putting reported we've first I think quarter for

Tom Fanning

for And not, did Drew, it back is was eight of estimate. I or last and the went what years Yes, range believe just estimates. thanks this kind low that. at the of XX. actually The over we look within

you you with the it estimate want estimate reasonably fact, in my have the to $X.XX. okay from standpoint. but conservative when XXXX, consider say, impact, like seems -- a effect knows, In I'm And -- we I who coronavirus it it for the of covirus

Shar Pourreza

March, back Got that will Vogtle, come something budgeted at hopeful could being schedule to the the midpoint of foresight the somewhere budget plan the given push zero lines. met. aggressive probability are Is away reality as move May And about schedule aggressive placing we've move and What schedule? this on to now be from time point? we continue impact past, it. the until Thanks. the site on meeting aggressive the And point closer and more keep know unit just aggressive talked May from of know could see aggressive to we've at that managers not you probabilities and COVID you to I to May in between online there's it the I between the could what and the kind the that units

Tom Fanning

Shar, pick it. let me

test Look, some One of reasonable the kind predicates a that. in probability. of load. an we between until of had hot not case. zero That's stick your We with We've and here. fuel question, kind shot, we extra and have that and margin of functional month used the margin there's hidden was really do

We of through of, in that consuming. so between think people XX we'll seen and now But we we going two mitigate crazy far to a weeks. just days that margin May, to will, the if month. XX have fuel another load the like we're of month to lose The aggressive kind site had you Essentially, in losing are loss work schedule. days

has Otherwise, we the with reasonable was many maintained from in before? But recall, Yes. -- Is stick a go still conversation fuel When it in-service, schedule it than earnings in okay? point. load been it's a it, we calls. riskier I and wouldn't we One last know objective. from this to have

We have a six-month maintained schedule there.

and months, think in beat it or we X.X did can we China. China meet

May. have So we margin and actually to to even more November a little

reasonable eyes is look, We are can continues is what So gotten that. still hit and to schedule. matters. a believe at beat to it Yes, got our Has it. a on site The November shot May November, more they aggressive?

Shar Pourreza

and Congrats and guys on it. Got the stay you see results we'll safe, soon.

Tom Fanning

you, to bud. Thanks. Sure. Same

Shar Pourreza

All right.

Operator

you. Thank

next Our with from Fleishman comes question Steve of Wolfe line Please the Research. proceed.

Tom Fanning

Hi, Steve.

Steve Fleishman

afternoon. Hey, Tom. Good

Tom Fanning

afternoon. Good

Steve Fleishman

of couple a So questions.

did has And reduction -- plan? the now? end XX% being took the up workforce that that implemented been around So it

Tom Fanning

Yes. Yes.

Steve Fleishman

on things And -- Okay. play is people just to different is -- people for how it refill areas out? certain need obviously, where Or that skills? maybe And just -- different there's does Are okay. color it there there. give doing you some

Tom Fanning

filled Yes. I was on may to do this In general, then off we to what bring we people the thought call we to And and four first That's rightsizing. how were we of we think, to voluntary. we was able in three. the reduction moved gaps see. is whatever Recall, X-K, what

effort the the result that at So voluntary kind have didn't for of produce we phases an work the plant. all optimal

the And particularly and with subcontracts. right productivity right the electrical in remember, in getting everything and as concerned script with I said mix else, and the we're

we And which resources aggressive there's from a in-service we we on by bolstered the shot so did what a three, so date. mix has away the reasonable to that May schedule, unit maintain believe four, that moving

has is what really So that happened.

else. will even believe idea new mix will this that plant, occur. and that open time sawtooth want up increase out We the workforce now, to effect. effect the sawtooth phase transition. personnel, and lead that In remember, put that, And in personnel that script, we may an to I decrease in new thing mentioned, every in schedules and we a with time the Now, work - time the crews and follow I everything is a now, as well, every the just we these every are we've other calls of seen we in you about those

so, conservative May. why that's being reasonably we're And with

November. April, we surprised pick want May beyond little the up don't in we words, would other in maybe if we hope not achieve really what beat better, X.XX% June we need be have a past. similarly We it's done expect then and we sawtooth the did great. to In as but still for it's the effect X% to challenged. in But and do, that that

So, when fact, talked effect the has past, you we've it sawtooth in to about in occurred.

right, want the work readjust, we together us the see. performance get let get back to the So get then think teams and we practices we'll

Steve Fleishman

of when going? one? then, is we will And going the Vogtle or hearing this would to kind be get update it? they on next in -- kind how about an Okay. of Commission feeling really Is that is the Are how that of VCM do any special

Tom Fanning

couple everything Well, are others or Steve, all Yes. call know let really me that this of I filings about the Commission contacting answer looking ways. terms the of a you're good and on and else. at the in directly

So you their in of words would kind never himself, mouth. I Commissioner the have from heard directly put

Tuesday, everybody thing and staff testifying. the interplay would But I be company that able between days, the highlight company to see few is so just to the the the that And and just else. other a people will be you'll

get so And we'll some there. illumination

Steve Fleishman

on level mean is now? just later recovery, in assumptions very this that? question recovery making And when And kind about you do for sure when start-up low summer of last Okay. kind then recovery, of the off of Or is my about by you're the talk just -- you talking sales. understand and what then I

Drew Evans

me technical hear you all I having some We're Tom and socially difficulties, actually, distance. as right? Steve, can

Steve Fleishman

I hear you well.

Drew Evans

Good.

Steve Fleishman

Yes.

Drew Evans

XXX something mid-summer, certainly and from not XXX complete. W general, the re-emergence L, until August probably of midline U, or a In of the then even maybe of delayed like whether is kind it's the sort balance recovery stay-at-home modelling We're of bunch to things, through through V, some our but of year, different

which today, we're mean, the I contributor quite the that actually by is it very. at but not earnings, customer classes industrial performing to look segment, we way, If largest different tracking our is the well, is

chemical, like things well the on product. demand paper, because and low input cost larger quite so segments, some of of of because are doing pulp And

we're industries of Some bit things is to But to little and as particular. Alabama, take starting precursors to automotive production are to across rebound. and still longer to or automotive beginning those light watching going reopen are the restart a in like Georgia

pretty On the side, decrease. seen commercial a we've exaggerated

of our segments in are some bigger are there certainly move customers starting back. Some those education, but of and retail to

And I it to X% actions in the aggregate, those pretty think we're we that represents in total detailed you gave a so really but looking different X% at way.

Tom Fanning

add to that, just I'll too. And

that the states one So stepping re-emerging. on out think, everybody, of I knows Georgia is

in doing a phased Of course, we're process. thoughtful it

I out prices The there really other low. is issue that fuel would put are

For natural year. BTU. I per last amount million the the gas -- than lower million quarter, customers gas natural was million of by $X.XX $XXX borne think around cost was $XXX And

more electricity, energy of before. it and cost of So therefore, consumption is cost-efficient than has been

I'm whether whether it's of or step terms the economy, would There's response, are one their a it's timeliness there. Powell friend, compared lot guys all top sure to, Congress, I broadly I as of and the supporting on And that complement I now. say, of whether this, response Fed, criticize from the the it's in there's XXXX, complement, the federal here XXXX, my but administration, kinds contact and also, can in these I'll the say And we in about Fed, the just been mix especially right know with would Jay all of it. disagreement

produce all forward. think necessary I going the hopefully sea chemicals in are But will something the to the that minimize impact

Steve Fleishman

Okay. Thank you.

Tom Fanning

Thank you.

Operator

Thank you.

comes line with Byrd the Morgan Stanley. Please of question next Our proceed. Stephen from

Tom Fanning

Steven. are How you? Hey,

Stephen Byrd

made further? at a you to wanted you more a to you the the that have cases. such the trying steps of that trajectory Is status just on Is work I there there Vogtle of Good. have of work number do of sort changes you've feel made -- for? number taken you've Or the that cases at of we're cases site. track to risk. reduce impacts practices looking afternoon. to to sort follow-up And risk the site were sort good adjust the of Hi, of of COVID the

Tom Fanning

No.

village very we things we I that medical the was before very of staff it early have to specialist we on of all COVID-XX one team, the were disease site nurses advising been weekend a did, there first effects, the started daily. remember by doctors, to In And that's and move there of the essentially fact, be. were any a was we executive site, look, planning would

need. all have the We PPE we

We I'll And it the on this conservative practices. in realization, of and talking testing -- call, fact, turnaround bit about throw there. out little work of have we've about I but debated kind a on

Our that. rate about to half, the XX%, industry like utility maybe incidence is something compared

Our severity way low. of cases is

basis of be very or be steps to site if don't pre-existing likely with One I most did I'm least remove as describe myself older. elderly impacted. that on that voluntary That people would severely is and category. the to was very to had smart want early from they a at a site Look, elderly the the on condition. probably pay, that

look we we only contact very if have doing. and at other aren't that's want at that site one them. tested, we is, we somebody feels you thing they if to that, funny, test their conservative just That get the So the Not people that well if them associates get and other do close out don't tested. it, feel take work

being and anywhere is XX in are somewhere times amount the five person at per testing then tested we to site the of at in the region. we community the look you people When relative testing it more what's between elsewhere serve,

stuff. it's So amazing

is asymptomatic, other So contact severity. that cases, we kind these somebody telling the test factor removed is will ensure they sometimes positive, of turned And in we close them. up oh,

returned hospital. or they're Otherwise, to and only be work. being the of tested tested have folks to we've on-site about that people with people half the a two have positive been go had think one or I hospitalized

that's pretty that more think A things I couple we're doing. positive stuff. all

we three doing work limit social At site. of to the people any the distancing front, work per amount

approval, generally is everybody's we with the exceed practice. that sometimes, that but So

elsewhere what Plant We big worked have and really sure and their we’ve think be areas, workers lunch could surrounding quarter I have a that. Vogtle was that on to there the bussing, right or find for And principle all in close quarters that communities better X early We close stuff. areas, their eliminated great the the to hard X and wanted in away environment in done the they we homes make area. than

Stephen Byrd

in we maybe checking of very or mind else Thank equipment on, of testing of equipment all just site? on most giving overall on the the testing of on status relevant status That's guess, update really you you just is a tested as just the helpful would site, I about high-level think equipment percentage And whatever color. just sort much.

Tom Fanning

I major was from all as The right? in is Well, Westinghouse. -- the sign entered testing was equipment to tested, it vessel complete. testing, off we fact, So the the call, got mean, we open right

passed recent work on hours, Just That's children whatever. Westinghouse. have tests teenagers, we get what before had just turn had in. the that past, in just check in we And fact, the your from had we in they And and verified clearance all you your we doing got been day it as -- OVT. fact, you

-- So, we want else what that today. were I how don't very would happy you know to announce to hear?

Stephen Byrd

think I makes Well, that sense.

think past, metric of the percentage that's of afterwards. some But can I equipment inspected. been in there of I follow-up was sort

Tom Fanning

again it test system, has and done. the a I'd tested. is We'll major been say equipment goes once into it we're but all there

Drew Evans

the right, from Summer. got a thing, We is other spare. everybody walk as It's admires all one by that it on-site they it. and Hey, RCP,

Stephen Byrd

all I That’s had. Great. you. Thank

Tom Fanning

Thank you.

Operator

Thank you.

Our line Chopra next Durgesh the proceed. comes question Please Evercore of ISI. from with

Tom Fanning

Thanks us. for joining

Durgesh Chopra

for Thanks my taking Thanks question. Tom.

back take to you to want 'XX, I -- 'XX. Just

the also, You able the believe wrong, that offset of of correct with were and a I'm Georgia me some opportunity were if accounts mentioned sort to to cost an Is cuttings. were around? you impact the this time there lot amortize kind regulatory mitigate there? earnings able was of I of you to available But hit it

Tom Fanning

future and Well, to We need approach steps to the is to. would think took right take that lessen in we've is, did. feel the are you've think we some got certainly in that the a just Those fact, can fact, regulators one need That now. but if options steps burden, what we we those The to correct. in just you're -- the system thing point received to go around I broadly. great I don't you I memory,

to but would this unique say, also, think, of national over accommodate NERC have environment. really, the level, needs FERC I spent folks Our and at PSCs, the backwards I

they help calls through Not think by in to I'm period. costs assisting get variety another in very like. level, of to need generally FERC doing do are And by set complementary I'll practice Likewise, frame. et order regulations, through approaches constructive our been to other issue what industry very asset a what constructive of they're the cetera. evidence over the of this ESCC help and as things regulators aside this imposing being and time of And NERC the taking tough on recovery disconnect I you, these has tell been of to able states. a at regulatory they've

Durgesh Chopra

numbers, debt Thanks. your metrics the bit and you agencies? the just are expect with kind to EPS do Got to confident And color gears, talk your about on you any, if to the as any seeing And in maybe impact, a you dialogue versus I'm may credit really what then can rating of FFO XXXX any credit it. have on you're you and shifting or little just curious had targets? see but

Drew Evans

a had rating would This numerous of say that topics of units, and weeks business across is individual review conversations a not ago. did those of we've agencies I credit Drew. very with X each fulsome variety the

we're meeting change While much. debt FFO targets, doesn't

Our for goal categories what's maintain. with that relative of expected buffer to to is we ratings a sort the stay

of improving we Vogtle the really as the is just that an which are economics through of get trajectory, Vogtle. generally, of function construction And work a how on

have position to all we've to on. Paramount fortunate do the which we we The be well-functioning to needed and reasonable general other the business. balance for later is year, markets, least the issuance thing we credit for to in were a that not been debt ourselves accelerated good And face those challenges of think we through at a in working good liquidity, operating that of is

managing comfortable credit total. So I think how very liquidity with and in we're

Tom Fanning

comfortable I'm recently, also but to say What that? the Yes. continuous, review pretty saying agencies, went can only agencies. rating is you you're rating And going you ask you to regulators, intensive discrete. Drew, the if our And not a just etcetera, something by with just not through relationship but our here, about response their

Drew Evans

Just have that and worry XXXX as more to about similar expect XXXX probably utility. than you and they they sectors would far very that

the nature on the thing is behaviors us of general, the things with like debt productive a thing. I proactive from expense, concern think, we've regulators with think rating constructive less very bad than same that they others. But the But are and they're is were still certainly, I a agencies concerned focused before. in insulating most of I and concerned our seen protective think, and is sector are

Tom Fanning

a them? I from review favorable got think And we

Drew Evans

Yes.

Durgesh Chopra

our the Really you very much. time Okay, answer taking Thank appreciate perfect today. questions guys. to you

Drew Evans

Yes sir, thank you.

Operator

Our next the with of question line comes Sophie KeyBanc. from Karp Please proceed.

Drew Evans

Hello Sophie.

Sophie Karp

Congrats on a solid afternoon. thank and you in Good me quarter, for squeezing here.

Drew Evans

Absolutely.

Sophie Karp

have but been the answered, questions I on here. maybe and of couple can lot a of just follow-up asked A if Yes. points

you that said, teams the workforce you I XX%. three right, Vogtle, you the reduced on firstly by people, think of to So mentioned overall size and

staffing based that going go your normal normal sort your back is guidelines when declines, say, teams believe on of new mind? some back point? larger fair would right? of that causing is at CDC may some you reduce So I it duration go the are And obviously, or that internal like more like projects to productivity to like we to be in a this is kind Or you've of developed? this that And to guidelines or because,

Tom Fanning

Yes.

great Sophie, that's a question.

kind our on assuming So to the done peak the curve. of be the past, that this actually X. by if we've turn -- CapEx think we've to down these in at curve And Unit productive, quarter, you kind jumped recall, the starts of of I continue we curves. We're

up Now, X on going more it'll a forward. bit Unit little ramp

ahead. and to is Unit on So, going X. in that appropriate progress for level we the is where evaluate my X be sense of this months it could we're to activity our But want be

right Unit X, We were on the downturn of there. just activity at

whole seven we're probably which accelerated, exactly little out means a It's some unexpected. to site the from that push dropping nine isn't hours. to going So,

unexpected did we able when to moving accelerating bank those in more accommodate that this essentially to refinement we X didn't people gave us not refinanced and schedule the the it and the for voluntary it's but two X intend February, to difference use resizing reduction. margin we from of a the But we're in months after

So, it's actually be. a not place to bad

in months ahead. happens what the see Let's

Sophie Karp

about it which And maybe the might to is cycle if bad on was this but question the that as wind now case sometime early away? guess, other my as do think internally? before where is you debt it sheet far expense, What I cover we're go, regulators right. guess the the how approach point rate it be the might any? then I balance to want there a issue an next And pretty for cycles is threshold, in you

Drew Evans

understanding in rates. together through Drew. utilities things fact, so probably could these of for to things. In but regulatory our gas much mechanism, have Sophie, we a get electric we very that this discuss were our in regulatory would constructive more is bad And of number conversations. exposures So, so next I'd expense track at say the an general, types debt trackers utilities. that not We've recover least or isolated riders when had and assets

the low The a total late is of sort interim of that payment fear. one that expense not relatively around was And the think bills. I question, revenue. It's really percentage Your things we're period. thing of of honest, debt our is to be bad I for tracking

in last of And so the customers It not over we've changed month. arrears. the monitoring been materially number has

typically more quarter. like customers XX% provision additional to capital XX% of per customers any is $XXX,XXX arrears $X in would in time We a our have were and we than provisions know between a our arrears we somewhere worth something that that about billion probably normal any happen in of we of given and to have time a being if

that within that have is business. the the liquidity of we incredibly All all within management, existing

than that be anticipate but really long don't impact some maybe we bad of so term liquidity, And to temporary impacts anything more they'll debt. no

Tom Fanning

revenue, we've who add but I about long impact about the occurring I it's talked our the when revenue and month during It's in that light during out southeast big Yes, of intensive comment. of -- these let something call. for let think ready comes you us. think, May, the particularly, the knows, This under of getting -- and strong known occurring Atlanta, another for It's is month month. are April me the for it's is summer. still beautiful XX% but which revenue think springs COVID-XX, me our And not is

somebody coming low to, and get fact, going we In Hey, that's spot. been back in who stuff. will I other even than of other survey. even than out think, U.S. days, mentioned, recovery One a XX more Sophie, We you pointed thing have part, Yes, somebody yes, we CDC you things. with that we're variety is all conservative terms people one during about guidelines? do. think cover, you So therefore, recovery, revenue, that that's intense said, knows is that more impact -- to to CDC us so they've other been that's a if of the around think be tested, not that when thing. keep around I if stay the follow in thing. do some me didn't good we megaprojects out just And I do We different do and their and the ours. one last in fact, We touch the experience

kind I think XX% are of as progressing we are. still

Sophie Karp

Great. Thank you,

Tom Fanning

you. Thank

Operator

you. Thank

with line Suisse. Our Weinstein from Credit proceed. the Please next Michael of comes question

Michael Weinstein

doing? you Hey, Tom. How

Tom Fanning

doing? you How

Michael Weinstein

it about X% a about something of offsetting to X% On residential forecast expect is that from X% forecast not little be a there it I to Is range bit what your guess, an been hearing about like to for light utilities, is as to factor? I've little compared a as looks sales, up It open. other sales. more, residential X% for you sales residential enthusiastic

Tom Fanning

think point noting as the heating the period, meant slide in point we what sort what May given X% we're to conditioning our an we time people so I the that to a churn heating of the what we've got we on think time on expect we represent really into probably you're Michael, where difference and maybe expect What change the response in is would trying in what XX we're No, -- year quite said, X% all are from that cooling full we cycle, the is we're demand industrial And more to commercial, What seeing than and over residential, of full Tom We think exaggerated light. and just what's is today. impact starting this fraction are these is of in certainly interesting Georgia, air April is month to a here. are impacts in across June. be show might be. classes, is depicted year in

Drew Evans

are And here crazy. September August and

Michael Weinstein

[Technical Difficulty] Right.

Tom Fanning

Where are Did up. where say they Did you you say you're fuel breaking manufactured? is the manufactured? --

Michael Weinstein

Yes.

Tom Fanning

South Carolina,

Michael Weinstein

[Technical Difficulty]

Tom Fanning

really Yes. is, breaking in -- the sorry, I'm Carolina. sorry, what you're you're manufactured breaking would we I'm South hear But up. up. What is it where fuel

Michael Weinstein

issues on-site any manufacturing there Are process? or

Tom Fanning

No. on-site? fuel there That will Is any --

Michael Weinstein

[Technical Difficulty]

Tom Fanning

No, no.

Michael Weinstein

you. Got

Okay. Thank you.

Tom Fanning

hit Yes, Michael, be we'll thank and after, you. If us glad please for it question we to your you. there, missed call

You were just breaking up a lot.

Michael Weinstein

Thank you. Thank you.

Tom Fanning

Yes, you. Thank sir.

Operator

you. Thank

question next JPMorgan. with Jeremy line comes Tonet of from proceed. the Please Our

Tom Fanning

Hello, Jeremy. How you? are

Jeremy Tonet

Good. me. Good having for afternoon. Thanks

Tom Fanning

bet. You

Jeremy Tonet

hour I little hours a could. wanted achieving with here of a of you you are to regards wondering, need ask to the what concern week And monthly to have would what come I back about guys of bit, was to now? guys see levels Vogtle if working type Vogtle what workforce, completion to X%? with I just hit rate per that schedule? numbers working do lower definitely of And the type kind Or

Tom Fanning

as many as think we're do I don't weekends have. XXXs. on we And then Yes, we

bit backed little little work a So bit. gives us a we should to off weekend. optionality That need of we

opposed as shift. So everything into work to little and we less hours we to else. during density more night on the we and a Unit Further, hours have timeframe backed-off this bit have X. And more shifted shifted daylight the

there. broad kind So, of approach that's the

Jeremy Tonet

thanks. be But early that well share recently with you're projections a to seems that started a I here. to early that too reopen tell. to That's load seeing has inform call? on of With just you your shift guess, that And kind might process live bit like started anything if it helpful, was it could just time. us just Georgia able and provided to wondering appreciate you And to the and want gears load

Tom Fanning

Well, our in key contact with account look, customers. we're

stay job always estimates there. the pretty good where are. a we estimate think the I And let do

of a have pulse a of So, little kind our you question what's of different bit the community.

start that a in just takeout. live it again lives this are better. part. the I right trying figure now, to ways little are city. of to -- burbs. It Drew What's experience? a I doing a all vibrate in different He is think there is out the of in They positive the kind restaurants. heart feels your people the right

Drew Evans

of Well, commercial has industrial about of actual and have another you that is think of the But improved confidence coming I state governor as Georgia last of Tom, of particular. I would load real we fact in that four have has back usage. customers say sort in opened would all the as in last out saw human And the materially. set way as that we customers. weeks, the not to particular, that the couple this polling as on And commercial say pulled general, I data we of then around time changed data behaviour in our described, has

school demand early sort where But these one for virtual top back consumption. categories the and segments That's kinds hospital, loads immediate season. they are historical of is expected. this where Education like look exceeded signs. people we Then any there in of are some to have chutes don't of being And is. just we'll we what improvement. be have other We our to at certainly actual have don't expect anticipate

we'll more -- little you give more give to able better us bit So, be just few daily. a few I months, a

Jeremy Tonet

State Drew hospital in Give are this flatten because Georgia how used think this you here and the many half curve have is sense is concept? as -- a his is anyway, board, in beds reminded you Drew, of I being guys capacity on It’s to to the me of a But the doctor. wife interesting. time. probably kind beds the the

Drew Evans

probably away in I institutions I'm functioning academic the hospital, Emory intimate to themselves. these It’s some would for ramp of and our report absolute in incredibly I an that that numbers. Grady to prefer their am have expected institutions I stay just ability safety amazed of demand. And say with Yes. -- sort from town. to I of

ability little to seeing could And grasp has crush a really our them, been to But be were than there projected. models incredible, in in lighter accommodate what general, a the very of hospitals sophisticated I institutions in bit those think hospitals area. those cases that that we're are

Tom Fanning

in we right So actual what have seeing capacity of terms cases now. XXX% more we're than

gating been when back to you a I've lot about whole level the working we've national Southern. on. of in industry that at in So work, here been think issues working a coming on and there's

is, instructive you been is, One Yes. Vogtle work we the it's that very The capacity? of learn virus. think I with have to curve? indicators have we at the Do fact big flattened and the to have

you We can be we available have yet. have have have won't get get the vaccines, is widespread and complete only to for don't to Until along, virus have the we American assured learn to you way there, you don't that because Commerce recovery.

as think was you why this How of So act? will are we I I We'll I next is, knows, environment? was a persist do do all have second at, to that you available Kemp do he able have looking think question issues nation Yes. the that's who The but in wave And we a why later fall? see. -- how mean, one we capacity? that's Governor this have

Jeremy Tonet

Thank for helpful. my you really question. That’s taking

Tom Fanning

you you. Thank Yes, bet.

Operator

Thank you.

of Securities. proceed. line the Paul from with comes question next Please Mizuho Our Fremont

Tom Fanning

you us. have Paul. Glad with Hello, to

Paul Fremont

healthy. Hey, great safe to here. be Hope all you're and

Tom Fanning

great. we're Yes,

Paul Fremont

small You had COVID-XX due the initially to planned the footprint Is the to construction. plan? And turnover and plant? still of that does with testing simultaneous complicate occur this

Tom Fanning

PSC been I pace. that's and testing once along a and know thorough construction way. a everybody thorough at reports. according do going we going co-owners to glove month have the get and hand Turnover else, the in with reports the We everything

And sometimes you speed up testing.

Remember, calls. that a discussion in got past about into we

of served talked us. Sometimes the as going other you in areas and I than really exactly that plant to on We've say construction in what focus we've you that's approach been a letting areas expected. that's catch you past, area. All has down, this has fail or in really fast learn And think but us I well. other particular anything about in slow wouldn't up, it test while construction expected. other the helpful

Paul Fremont

had on then time a the ITAC? update of you the And should to think you are many about be construction to NRC we have from the Or complete remaining on? can final to how until is us on wait approvals lot frame for fully that? for off And signed how you've ITACs going secondly,

Tom Fanning

Yes.

without the so been been Let submitted this a NRC, have have The submitted, the me been number. Have in so is UIN, of give the all the ITACs quick you by just numbers. every ITACs one that form that accepted those.

think, submitted whole wave lessen for that that guess, to That's load We been we really those I X. XXX So lot we've have and well. still the need a ITACs I get we bow had Unit XXX they're complete. certified going be clearance we have. about of the originally, to fully had And fuel. left that before

just me yes, Go Let -- ahead, go Paul. ahead.

Paul Fremont

Are going to wait expecting Do approved. you construction happen, just for complete? earlier? the I XXX until be have essentially to was to that ask to is you

Tom Fanning

work are that to or are everything, the There's, three either elements pace ability of of concerns some ITACs this in remember, after schedule bigger say way. We're it's while we're may I concerned on deliver used along you that ITAC is reach And going work, are subcontract Paul, top it's, much think, to ITAC. whatever. about at a I think the point concerns. would my ahead and But There XXX we construction. well. electrical of our

throw committed they the staffed I bouquet the holding team of have want charged [ph] a end it's and I visiting Steve bargain. job UINs the that. done with timely a approving feel been of I really have Kaczynski to the that are still big teams and appropriately. to done ITAC a worked guys personally good, think are I their up have commissioners, I great. to NRC. have complete They issue. with the have feel And the very fully doing NRC up that and with those And

minimize I it. feel me But good something about. Let pretty not it's

Drew Evans

I is indicator constantly, on we with best milestones the on approve progress turnover Tom, starts add thing actual the Good. think making of testing turnover is that try this testing themselves. the and emphasize I we're to the folks only that and the

milestones That's summer. best you'll indicator customer So that the a those successful can progressed see the couple a of have you against turnover. are

Tom Fanning

town halls. and then said recently know, just of I I Shar we these following the do Weissman it's did and sometime of these end [ph]. you And one end with -- forget. I enough sure month of OBT I Yes, did back ago well, with we month. -- been variety finished the

COVID. schedule challenges the the of follow through we're able So on despite to

Paul Fremont

anticipating productivity implementing you XX% then reduction, significant a plant? the And after at improvement are in the workforce

Tom Fanning

and to new staff to Yes, got right-size you yes. sawtooth we've now had new we sawtooth. And front a and the know, supervision. people That's a and, work and expecting to you of discussion, always Anytime used we just Yes, people an staff have down remember we bring or up together are new improvement. learning There on is getting new a a before. curve. working bit

far tick I X%. scheduled target we November. slight X%. it, But our April, out think even just completed November from aggressive again, shows the at, have April, I Even but down let And me we from think, The a schedule. point been chart slide it's during really was away pretty on called X X.XX%, for with

even So even margin a bad month. some November during made to we

Paul Fremont

my towards slide potential of the million we with middle, sort to your O&M to, last end, at high sort end? of, should the would that? reduction, the in looking, offset XX with about then that And potential the question How see revenue erosion? to it's XXX respect ability think of, XXX cost where relation the lower million to Where you

Drew Evans

simple absolute at give But going bookends see that where the in run the it are we're goes. think Well, that describe have I the at this is will them, or particular, things is way quarter There to you. achieve certainly spectrum us either I travel, the to end we're you are to place, travel, of perfect plans least categorize reduce entertainment how to expense we on example. put going in to costs

of into of that few the expenses delaying cost things then end months. of ratting. were don't Workforce periods. that spectrum a XX,XXX travel for where nearly that, the people, We of be creates we people be There number come expect will will far for very our a into backlog future back will travelling

across this potential either these outcomes. entire those so effort both spectrum to an declines, And function we're revenue just and of with in identifying of might -- going of categories through either how we

Tom Fanning

refilling as the principle, We're has really open not approval, And we're a without -- jobs which freeze. not CEO freezes them. a effect of

Paul Fremont

on are mean, that where there through of years, examples share you past sort can cost and you've experience? I based numbers of any like reduction gone past

Tom Fanning

Yes, go ahead.

Drew Evans

capabilities of are, So and XXXX the understanding XXXX bit this the a number and little I good indication a the company a bit of the think of smaller. XXXX think was XXXX, probably range, lower but pretty towards I was what end

larger So complex is the this. our acquisition and in a cost came heads quite bit than so Resources AGL of

O&M a is maybe in Our responsible plenty us bit think O&M gives range. addressable it range, total $X-plus little smaller than But the billion of -- this I around that. be something room to

Paul Fremont

Great. you. Thank

Tom Fanning

Thank sir. Yes, you.

Operator

you. Thank

the Michael line of Sachs. from comes Please Lapides question Goldman with next proceed. Our

Tom Fanning

are How Michael. you? Hey,

Michael Lapides

best well just you you an demand well may the that ownership people you stand you how as both well to can solar the is you Can ask a for different this of be plants Glad the talk question. Alabama? Southern hear also, the and PSC? ordinal of enough. year all both about about where the you in jurisdiction people about and -- rate or filed you? into winter don't And everybody to at to possible. was family and Can don't approval talk you one I that the both the update the that the doing as a with things think And PPAs there taking I is Thank the ones about, gas am ask there spring. us Alabama actually the docket relative Company about thought trends then undergoing that? as are want Tom, how in finally, ones? And on I give

Tom Fanning

as all giant I we process that everything would Georgia in a there. that's you're going it -- thought in say, on Yes, in think for I'm in Yes. I track general, Alabama. would sorry, is stuff

Drew Evans

Yes.

customer more about as move to tends of in like industrial jurisdictions, generally. move it just you entirety toward question our mix, the west Your

Tom Fanning

in what's sales residential. But And those interesting largely of XX% true. Mississippi? wholesale. sales are Mississippi That's are wholesale

and but you bit a right. different Mississippi, So pretty but Alabama are mix a Drew it give exactly similar. small, it's of in Georgia is

Michael Lapides

remind line the can And development? Okay. for acquisition time was? to rate what what also the in plant, both us request get Alabama, the approval you gas and And

Tom Fanning

June, were for process occur. to I think early towards summer -- we that looking summer

Michael Lapides

it. Thank Got you.

Drew Evans

piece And I but approve only the news, summer. plant gas acquisition did early news it's we other of the PSC projected the that Alabama think not there, FERC

that way. of got we out So the

Michael Lapides

Tom. you, Much Thank it. appreciated. Got

Tom Fanning

friend. Thank you my

Operator

you. Thank

from America. line with of next the Dumoulin-Smith Julien Bank proceed. Our question comes of Please

Tom Fanning

you are doing? How Julien. Hey,

Julien Dumoulin-Smith

are very just to you the how you front. O&M follow-up Hey, on guys. I wanted Thanks much.

So or I anything be You're of equivalent have you clear as about about more, think today? contemplating that little -- you the guys O&M to the your quantify -- at cost the XXX, can this magnitude savings the cost amount sort you that savings right? XXX planning you're you about doing of here? bit to very is do that that's looking how at you're a in effort you're basically, looking range revenue, When saying think just to in offset you're wanted this. that

Drew Evans

to through against What Yes. is either plans No, under going to range. us about by think how be we determined in that execute is we're our I plans that place in actually going in the service to think the put simple could this to it help work or have economies quickly way territories. respond

Tom Fanning

mean, here, ago, saying of other knows. a million, range this of the month just more of that's out track $XXX I million to hate would who that's again, But million, $XXX I $XX think thing say effect. maybe say, we I a I was kind it's all a And earlier, kind down and prolonged just uncertainty, with to I conservatism

Drew Evans

demand the responsive don't the pool. this over have is limitations to impression, going There want how we're see are give to certainly that to I just and time. Julien, also limitless you

Tom Fanning

even ends, too, the again, would But we're at still range. that highest there, reflect within

Drew Evans

about Yes. revenue easiest of some in get this basis and total we adjusted. million And $XX That's way know. can XX folks so turn on of impact that per most The range a for probably per earnings penny pre-tax. this sense are and don't and into generally divide gross you the share by that to

Tom Fanning

was an effect. -- you that. tax You to need effect gave He Drew just after-tax income net

this So pre-tax. is

Julien Dumoulin-Smith

understood. Yes, All right.

to reduction thinking the Are at this ramp cumulatively? guys how Unit how labour you're back X that in reduction XX% schedule this the up you point? you here workforce, year. are later to about delaying do on that be the make talk you making going up project? back workforce up XX% in come about talked sawtooth in here you about Or for And that also thinking --. me you Let the the When

Tom Fanning

There's But my with if good of I'm were draw Julien. air. I Yes. my my we hand written Thanks, a one-on-one, little here draw doing things, a so finger there. the paper, piece for in payment

X of I the Unit site, down had on-site showed into Unit tests, for heading on functional imagine as wind people curve people a Just if down construction occurs. X that we this, X,XXX hot wind

What the down. a Imagine right. So out functional we doing on bit being and you a was it what little out curve peak goes of the All about kind we've the of pushes of little. is it pushed hand said now your push did actually tests X,XXX down kind and September. August, to we're hot

comfortable big I were aggressive the feel is site to the done to on-site, the another X,XXX Unit already pushes drawing why So tried down. X at we And X, ability off some back That's I you're to We X,XXX our all we've wind plan peak to don’t of that hit movement to to level. and schedule now maintain think original from starts for going peak. that think still which X. here. peak with see its maintaining

was with little and we a bit, curve that funded curve we X. Unit shift All did the

Julien Dumoulin-Smith

Got it.

you think And of when that, address going consider guys the about round compartmentalization implemented, of But might already of Okay. I'll would what COVID? what you And quick look have terms a follow-up around you like it here. here, a do stopping lot factors. here? labour of to of how and mitigating out So just construction sounds on you like? scenarios trigger lot factors that scenario it range already mitigating in might scenarios Under

Tom Fanning

Yes.

I in likely. just there. that's You I think Julien, know what, suppose a hypothetical don't there is

live I it America, to just speak learn think America and has broadly, site. take me with down the I'll to let virus. the to

than seen been on experience in Our knock far, about industry much has what less so you've half. wood, the

have actions, now people the on likewise, and on at-risk -- severe, for to And example, coming effects site think the personnel the our of the site because experience site, removing largely well before People saw on them smart I back the the site. been work. of are paying less have the taken, we

the I One the like don't four other looks point know, over is, past, weeks. average it

we four-week peak you may a past If the on looks at if it average, be look the site. as do

as seven-day it only out will incidence next in if come. few borne that the you a if to weeks looks are be Now, But do rolling average, decreasing. levels

good we'll think labour don't doing. but And just we're are So it's people response really that hand look, now, that to see there. work, in unprecedented doing unions job which hypothetical I attractive site, for I don't place an it I make think practical is, out for continue the at work The I think kind we're us the at I on there's manner. keep right think a of going. calling all and a -- see.

Julien Dumoulin-Smith

Excellent. All right. Yes.

time. Well, happening. you the thank me best. Excellent. All You the its can tell for

Tom Fanning

Julien. Appreciate it, bud. Thank you,

Operator

you. Thank

Weisel Weil. from comes the question with Andrew next line Please Our of Howard Scotia proceed.

Tom Fanning

Andrew. Hello, for Thanks joining us.

Andrew Weisel

a to forecasting here Hey, bigger the of a-third, way. you're the apologize commercial you're a-third, mix Page I'm Most time, other decline everyone. your I And interest I stick XX. really about a-third. talking Maybe surprised. roughly I know utilities in missed industrial. one question if is but In did, you I'll other it mentioned I this, on little volumes for a

explain industrial? can than you're why a So expecting you to deeper commercial hit

Tom Fanning

It Look, better. come ability there what much back will I is to big -- back hit quicker. the good Yes. come news think is, that's your is, I your if and

and get Your then a ability than down a restarting to restaurant. plant is shut it harder back

me this after He on, instantaneous. and back the is turn was almost of CNBC IMAX. I was right on morning, fact, our ability CEO theatres I to In know says,

look, So, key accounts, our the and that system. assessment an marketing teams see. we across is what of That's our just

I'm sales see, Our we're quarter. really folks through industrial that at the a February. momentum positive you fond statistics, kind And showing great the been month-by-month having have fact, really we momentum gosh, mentioning, of make look of if our at industrial, up, quite in

with to sending of faster, we go going recover And companies industrial outage taking what maintenance, it's a They 'Well, just don't said, actually why outages. we're if were a and and some lot socially people ahead We resilient. COVID, we saw take want an do think distance, home.' will some more

have particularly in we that Southeast upon in thing other is The a the here industrial dependent feedstock, gas natural chemicals as the area.

and think that's in this one gas is, I customer. And product where natural attractive really XXXX at being it our again XXXX. with number those guys levels. producing saw industrial are We

and capacity been across to have the plans they industrial And rate where States, Southeast. United essentially, things in of productive States United industrials move down I their in would that to parts in didn't putting particularly say, the and tended has plants preserve shut the load, place Alabama other proactive those

quickly, more commercial. going opinion. to reasons, Good commercial that's those is is all why than industrial resilient news recover in we think my is pretty For

Andrew Weisel

Thank you. Okay.

Tom Fanning

You bet.

Thank Operator: you.

question Our of Associates. proceed. Please Paul next the line comes Glenrock with from Patterson

Paul Patterson

doing How Thanks, are Tom, It to you. sounds hear happy well. guys you you doing?

Tom Fanning

Yes.

there. in hanging are We

Paul Patterson

of this, wanted home stuff and the at I people you just economic stay to optimistic It base I basically are is touch once that sort forecast, coming served like the social quite guess. resolved, on was be back still you basically -- economic X% business with the this given usual. it after is sort of you that Are and year? growth sounds So, I'm guys case? guys as are you your distancing rate? Is expecting your And your will just forecast sales wondering that growth thinking what

Tom Fanning

relative that, Certainly, year million impact. it feels slope in XXX what of retail where too our for today the I we to than downward through a know want We we've assumes projection history. in it maybe U-shape, Yes. better The quite that sitting on weeks estimate there's exaggerated a But we're of reduction don't to couple is sales seen optimism. ago. the more portray X% of total much a

without for pain will this sure. be so And not economic

relative economies got migration. it's our decent The do we takes we do get inestimable. good -- that time we've We in that business it pretty to the so though is the place benefit generally amount long-term, to to got And economic Southeast of from and that think to normalcy think others, climate. back we've a good in fact

you most our freedom guys out this. There most lots we area. phone goes by at to the and York New have people It's this. reasonable the New Yes. are of this heart have And degrees I'm from lives and point. my impacted Jersey, I just and on in of of been guess relatives all in all know,

we of mindful seen down very up severe least we're there. circumstance. haven't so, less much That's experiencing case And the southeast at in not you're the grave the here; what it. It's than

Paul Patterson

rate essentially of meaningful hit to terms will make have this, next but will just I economic understand sure guys in earnings it a beginning growth But of -- year you on that sounds not soon expect then Okay. of year, thereafter, activity this economy guidance the region? long-term your your you pretty like pandemic did that your global sort or and in impact the everything, that see

Tom Fanning

yes. So,

Okay.

-- Will economies may States of COVID this the My a position issue we respect like question That So and as the to now good that's sorry, in in United interesting. different see. be I'm that's global a sense relative destruction will economy be. a there pretty a is result it's to with the deal? is

been particularly other us reliance products? from for demand talking federal is a of to critical economies. impacts work this about on In other on that revitalizing little to dependent, less be infrastructure chain at about supply American What return level in words, China? is Europe One States, there a to the we've kind for going foreign the the less of United making

some used in initiatives, legislative continuing there's Still is, bill. Congress infrastructure an sustaining there behind overcome more in that My future the energy could impact upon, sitting destruction sense economy. is of

there emerge. sense think just My I be about right continuing here things if is and other XXXX impacts. XXXX, could Some sit some and may now,

all they're at for at to don't full us issue the down. guidance point But rate the on we Bill. Vogtle significant It's and would service, our X% to the I Once this change where getting think rate. point, increase X% dominant the earnings is forward a We growth EPS on hard inside Unit return of the period we clear a X construction X because to Unit to beat capital. of rates to that recover

Paul Patterson

Okay.

now at the It Just the the It for something. into I've guys been or XX% you like -- XX% it sort people and are think or quickly here. to report testing, been something if of XXX looks on you've something. looks consistent estimating, to that from like Vogtle, just up it's when pretty I that correct, looks me it's range I'm remarkably

more don't of any testing? well, it are a like who just And you is maybe sort about that? there any antibody guys feel say, and about thinking I'm mean, or give me obviously, the hey, Is a in people Or thought anything I Or of thing?' are doing immunity come kind test thought that lot than just working anything heard -- of people wondering, basically there I there is site. at

Tom Fanning

Look, we're antibody on early best really interesting. pretty the we availability tests -- the time, can test got we get the are

we're a at level. fact, that about In national talking

kind place. We regime attractive, in whole Admiral from testing Giroir he have of available and had HHS. He's the Health, that's the of Director just has right it's now. something not That's but

Testing the is We and and really have it can valuable, next day. underestimate solve fact, to vaccine you'll and place, the the to retest nation. everybody them going in don't you day a doesn't test all with can day go and in next we live next the they this to test get over having it, and environment in home, I And place. the problem. be Until but we're the

Paul Patterson

just Okay. And for not adjusted out for sales they're leap the They the year. -- on quarter? really include numbers. correct then Is quickly that

Tom Fanning

they think adjusted. not are I

Paul Patterson

appreciate Okay. so That's Thanks it for it. me. I really much.

Tom Fanning

you Appreciate us. you. Thank join

Drew Evans

Paul. Thanks,

Operator

you. Thank

of with Fishman the comes question with Morningstar. Please proceed question. next your from Our Charles line

Drew Evans

Charles. Hi,

Charles Fishman

question. Hey, you. just thank one Hi. Hey,

CapEx it not billion is five-year got $XX program. You The bulk of a Vogtle.

Vogtle. on detail You've great given us

year Is disruption maybe but plan? supply would that, color you the comment a in Is expensive disruptions. CapEx? chain get done -- out five-year more on you've I that pushed get chain there that, within two appreciated. You statement, to you'll be something a What concern that's problems, there no some expected going is chain? what or still within additional causing the be Any that no expected had supply supply something

Tom Fanning

Yes.

but of a we're size the of league. you think in little we're So We're round that nation the that I when Australia in about energy of numbers. get production, kind statistic. bit smaller,

we are a considered priority and relationships, with a long-standing customer high resources. have of We variety

any people do aren't in say, see doesn't the what sure really I long going that run, we to don't to working them. when And may be, to and problems make they the resource what understand they're perturbations that hard mean

we're forward least some challenges. of say, seeing been able at been where kind to of have we've always a I no want challenges, overcome And six-month Drew, have but to about confident absolutely the window We we problems.

will. margin, that's So of our kind if safety you

over When you It generation, making our think it distribution it up our ash us, round or about for which is the numbers. renewables environmental the standpoint. CapEx is tied generation $XX more ponds, nature transmission years XX some it of I required tied tied is in a in up really then budget, system is whether billion and new however, in and think And resilient matters, of is in Georgia. in Alabama from future particularly up

a don't generally to and we very Franklin our right great visibility, stuff word I is and hard of So the I a on think guess, people Drew needs. system. subject the It's pushed we're guy, a see have lot. Jeff customer not we that that We've lot a the to, to problem we've got runs have uses meet of equipment now. big visibility a work required it this support supply smalls, the our And into availability great for program. got that chain We

Drew Evans

for whatever full CapEx to material really for labour in at we've got chain general. good of remediation a on in long-term, a have I'd need you total Yes. ponds expect the we technology about. might said, environmental component of replenish is pretty reliant meet time front And say decent large isn't is work block ash our as period enough plan. And and a some

Tom Fanning

Homeland right there. Chris course, a is his essential top the on. and right of put Commission That's throw throw let is Security work the But at they terrific of an named word, out the that another NIAC, And functions a bulletin Krebs; Director in me I'm in at Health National right more And of America. behind now. also in Human job of bouquet calling factor the by of Infrastructure product, out. confines I'll one out somebody. within my in he's electricity is of CISA guy advisory responsibility The recommendations the part that Advisory also and Solarium function And Services America. Council, doing

point, on that put priority we needs met. making market. relationship are with our will people have in a labour terrific Look, valued high partners the One our last sure a

treated are as will to And So very work the for sure well need valued people the we that job, a and them anybody partners They trades they I as And done treats there U.S. think I think that we have labour the like and sure them making are in States. partners hell a when are treat it. hard of decades, that. the strategic make we building there. be United

Charles Fishman

thank times. a it. Tom, was for Okay. on the call That long you extraordinary extra

Tom Fanning

attention. No. Thank you. We Yes. appreciate your

Operator

you. Thank

Our Ashar comes line of last question proceed. from the with Khan Please Verition.

Tom Fanning

with Ashar. are have glad to us. Hello, How you you? Always

Ashar Khan

want one have years like the second in four then even hurt question, less thought for I that because you last And would really doing. had the quarter. are of Doing I $X.XX I Tom. I because I just contact. is, earned $X.XX very you ask ask, the didn't and we -- exceptional Reg Great, year seen for of we except earned XX. say, progress to guys disclosures well around Can XX, and or where the quarter Usually, which dilution, -- but have of $X.XX

just So making of quarter? the the me XX abnormal pattern the the ascribe an XX is What like second it come going average is second it have why to can the to of earnings in prior trajectory up? earnings from how versus you go quarter to

Tom Fanning

conservative kind front I was the Yes, -- our deeper I we said, $X.XX, $X.XX. years like have in me But have but me $X.XX, the $X.XX, And second COVID-XX the the years, Ashar, what of been this in data doing had call. $X.XX, All let three for eight actually we're last I low two went quarter, the $X.XX. years in well, XX, CFO, Southern fight. It's report extract from temporary always had to variances and an CFOs. are negative the are always that, they have I the always think, estimate permanent. joke bias. conservative inside CFOs always is and is. be I of is $X.XX, what a And permanent I used always the the positive thing the laugh. the -- when for system $X.XX, preparing variances shot a is And only last a they inside the at taking variances joke

through fight is. right to have the what always we So answer

light. the got say Drew can't of great in a is that's but I done freedom front job. degrees say right think There's of going that, data. I'll to around I happen lot XX. with reasonable. me. has XX% I of it's just that what's the of We'll conservatism a see, COVID data,

Drew Evans

that adding largest generally hope isolated it fair quarter be and have that's reduce something our impact expense as open COVID-XX expenses any we're of will additional expectation. That's second experience. and year the most part reduce of which of the going this the say due structure to the is -- that to hopefully said, is Ashar, If was to the halting, we'll the that, course the hopefully, will quarter and that quarter. our through to over headcount, plan that's not Tom largest

expense and light of second can year. balance we to in over we mitigation So for think less we have revenue that plan the the achieve

Drew Evans

year. for year. still But committed We're we're get still to wouldn't second our about financial quarter. I objectives the the the for committed excited

Ashar Khan

Thank Okay. you.

Tom Fanning

And I Excellent a good we quarter. did. Yes. know you quarter. had first

else? So Operator, anything good start.

Operator

today's conclude there will session, Are any question-and-answer That sir. remarks? closing

Tom Fanning

Drew, us you to want lead off?

Drew Evans

on thank the hard jus day. folks customers that all of to I'd behalf Again, working are say, every you

I'm I core values. And that with we're the done. XX,XXX our working think living impressed from getting people XX,XXX we're home, or job

hard all such you to have outcome very much a work thank teams So that great are the to working for us.

Tom Fanning

at exceedingly Homeland with my it's working all thinking about his Secretary a is responding perspective, his Krebs team terrific is union Security and the job. Energy, know case level, investor-owned utilities a that Danbury from municipals. you this in a team, cooperatives of And the well. And industry of Department doing should The and and Chris whether national industry of is the the

We as are all to working problems they together solve arise. the

puck be. skate fact, will favourite the in where the And saying Gretsky to

about for year. of us mindful the way demonstrate industry to being future. reacting the hurricane and to this that storm season, this very that is decades, I arise will we able into as the really response think present We're and effective ahead to mutual have beyond season thinking is problem

industry of a sisters doing and I think all so my is brothers there. the to terrific out job, kudos

things. in a coronavirus exceedingly lot given prudent encouraged think why I'm with to these and we about customers manner. very system is that's protocol of you the serve these to our address some still going very managing the what respond year. at the encouraged well the to with for for rest just Vogtle. I with great That's tailwind place. whatever then of ahead. data, start at And comes I'm finally, ability I is When our team Southern, look the think And of There to an deal with conditions way of their they're the uncertainty this the committed. unexpected to rest ability some year, remain in storms a us the great

you guys And thank want I'm to thing. I this know thoughts And in to all I to know, going and I we're there. up New are prayers maybe through or those your you My got impacted. being relatives with of together, all I Jersey; out you know from friends of the I and are some family get you working all. maybe Northeast, very dealing especially go tough I think families all know you times.

the Operator, to you long situation the the call, we in I but everybody today. Southern for it's situation, everybody. hope confidence of being steps everybody with Thanks Thanks, call. national forward. to soon. the that's I give but around Talk extra an gave us enough color only not conclusion know next

Operator

Earnings Thank concludes the Company and gentlemen, Call. XXXX Quarter Ladies Southern sir. First you, this

You may now disconnect.

The Southern Company (SO) 30 Apr 202020 Q1 Earnings call transcript