SO - Earnings call transcript Q1 2021

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Operator

Good afternoon. My name is Dimitra, and I will be your conference operator today. At this time, I would like to welcome everyone to The Southern Company First Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. reminder, is a April recorded As XXXX. XX, Instructions] today’s being conference Thursday, [Operator like the to Scott now would I turn Relations Gammill, conference Director. Investor to over Please, ahead, go sir.

Scott Gammill

first afternoon, to Dimitra. and you, earnings call. Good Southern Thank Company’s quarter XXXX welcome

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

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

as will In as this for call, are we time, Reconciliations in at the to which information applicable conference available the on this Fanning. At are present website addition, I’ll morning, on over Relations included this turn we call. our call well non-GAAP financial Tom investor.southerncompany.com. information Investor the slides measures GAAP financial both the this to released

Tom Fanning

and thank Good us. you joining afternoon, all for

As in earnings and than you start with the ahead recover the year starting our territories service the COVID-XX this it exceeded mildly from quarter, first pandemic released economies are pre-pandemic The the the estimate. the remains our to demand during a customer we adjusted we of materials reported to share lower levels quarter morning, of strong expectation. for our first XXXX can per see from

customers to we effective. programs keep Importantly, the implemented the be during proven many very pandemic of connected have to

operations and well proud partnered effects Southwest the with At that devastating businesses, beyond. February Texas grids pandemic. communities this employees the past customers this with Southern parts Texas in We crippled to event. and in generating alternative during I contending payment our including region weather have facilitated This each those of Company, arrangements and and performed be units in our those our have need. throughout with our the reliably we and energy for power continue of were winter nation of ways our to provided of

electric did regulated issues gas utilities or experience service disruptions. not and operational any Our related

minimally was model. Power its contracted business Southern highly due impacted to

over services micro in Sequent by need part, provided producing in customers had power large And reliability held storage. natural XX secure Our Energy effectively subsidiary conditions. grids hours caused gas utilizing runtime wholesale X,XXX also gas served in a utilities reliable customers of The seasons system for to own the atypical country evaluate megawatt the storm. have under energy similar their across resilience winter temperatures during

utilize utilities of Company to allowing are in with For invest integrated we have integrated resilience. Southeast to extreme address our and and and as circumstances a for vertically range Southern years beneficial electric for, consider, planning plan improve our across structure needed in carefully process regulators resource infrastructure along us

stakeholder provided we analysis leverage We rigorous will input evaluate these enhancements continue as potential to proceedings and for the our additional footprint. system the by across

verify together load. to on of and Functional to for the in Plant of confirm update and on X successful Unit April marking milestone that started now turn and major X Hot ready a Let’s an is is Testing Testing components X. Functional last series reactor to Hot the XX tests. the operation fuel reactor Vogtle systems conducted Units

without any in-service years. Unit quarter result years X, date. XX Starting quarter source operation course, to the reach work normal in-service date XXXX the will first late Hot a now and to fuel pressure delays Unit reliable process site significant next through for Unit carbon-free of towards testing, step run of X and temperature. and X providing Unit customers a systems of part with XX represents the targets the Functional As plan third site XXXX advanced load in in X The energy could the testing Testing team plant fuel the operating ultimately nuclear for and a December,

Now, as to that basis state process assure as in step is we differences. of system built turnover important resolve stated any prior to design and with the and the the calls the in have plant aligns

we systems, ITAAC. them testing close for and submit ready declare Before

the are to getting of right. we and construction nature the improvement programs We reviewed program Southern Nuclear’s work, and in Unit the project identified improve months, is for that necessary of Testing. quality recent of standards Nuclear construction electrical Functional effective. notion to we start construction implemented Hot help design improvement were committed Testing, primarily prior quality drive plans We are Unit quality we to the believe completion Hot ensure was successful met are to to it X certain Functional performance remediation designed In plans Furthermore, prior Southern and implementing X. the

of are it units, operator met getting activities. testing striving ensure right, standards our we and to and the committed As safety prior significant operations these to are to quality

nearing accelerate We hot transition had To the the will to submittal our NRC. of in progress, submitted Unit focus load include or efficient primary two, forward system construction successful as The to orderly not Functional unit. three, of sacrifice sequence. one, remaining Hot start-up direct the meet X construction and completion, ITAAC and With from we completion been and and review is date functional Functional Testing, move fuel ITAAC of commitment process completion an test leading beyond going fuel to that to turnovers expected and the into load, milestone an schedule XXX to Testing Hot system dates. testing

Functional will fuel Hot We Testing XXX approach during the as we load. submit remaining

Turning major in on plan provide XX site. shield labor initial increasing roof top placed the November lift would is in containment in weeks. the flush Unit on at resources coming complete. the The and quarter site which the focused construction is the is last week, productivity. expected third current and X Unit came direct site project the tank crane XXXX, craft, of to of Earlier regulatory this vessel and is work date. representing Integrated service progress approve the energization completion building margin now XX% in the approximately the water electrical X, And the targets site

to Unit current Construction achieve X, month pace per to X.X% X has continue shifting will regulatory the expected In resources We date, completion averaged completion. our is from Unit start incremental adding and construction of since XX November increase year. of during reference the would by construction order and resources which include heavily also we approximately per half of to second through completion the to while periods estimate we approved COVID-XX. Unit averaged need year. month of And first of average XXXX through X as point, which approximately and X% this half did X% impacted the the end XXXX, of service a

during remediation at forecast quarter the both Unit Power first across related and Georgia support resources $XX allocated the of performing construction contingency now the extending cost into units. X, increasing work for Looking to schedule million base capital

first of As after-tax the the a Power its by million end result, Georgia replenished of charge $XX reporting million at contingency an quarter. $XX

and completion site. the at project system three, on X, increase decreased led year. place Unit of active completion there now recent complete at increase, rates risks for schedule The uncertainties the earned cost major the While trending COVID remain those we fuel as CPI vaccines, to Unit X completion estimate Testing to significantly Notably site time prior the time has one, to Hot and what Hot exemplary many reach progress both was the contingency similar at in successful lower. start With site remaining and the testing onset X necessary X the productivity months during it the to remaining we COVID-XX contingency units impact subsequent or as units. been appropriate ability of has an namely, Unit hours our the this availability and our last when of and providing Testing, believe in turnovers cost lead considering potential this both toward of to The and load. team has additional and broader of risk the of responded extended Unit safety is amount to unprecedented the cases maintaining protocols Functional year, improve isolation effective this are to fashion, of that are in Functional

We testing completion that and consistently partners project. over to it to X employees, very risk the on for Unit We’ve is commencement said always, underway. this co-owners reduce the our want successful dedication Testing that will are turn contractors, update now as Hot pleased the an sequence And of thank unwavering Functional their to I’ll community for for and I you project. both Drew, important financial. this

Drew Evans

you’re safe all afternoon Tom, well. and and Thanks, I everyone. hope good

we had a start Tom mentioned, very year. to the As strong

allowed XX% A and customer their impacts quarter from as maintain has to We significantly continued looking that aggregate COVID-XX to of and the performance The last in last nearly package. to state-regulated compared higher to from from electric our $X.XX, EPS than year. better COVID-XX quarterly regulatory XX%, expense was that report very customer of expectation in above earnings release year cost lessons COVID-XX revenues static the year continued to we today’s The exceed and forecast our limited main primary adjusted adjusted last detailed XXXX all we adjusted included their estimate first learned the the a XX,XXX growth strong estimate. for $X.XX due results quarter, during were the a Southeast a retail XXXX. of impacts and mild at increased lower first than in our for despite drivers that growth utilities, comparative and actions. customer an were quarter Our benefit peak. When the us classes we nearly of weather as saw we of to relatively is extremely at the variance $X.XX drivers reconciliation compared constructive COVID-XX state in experienced our added to quarter Further, as our compared than our was EPS almost discipline, impacts. year-over-year retail XXXX structure peak across sales withdrawal and saw due had $X.XX residential strong customers positive by

year’s first were This continued sales driven commercial by by than decrease Looking weather-normal lower quarter, industrial the more approximately was closely unaffected retail sales sales of normal quarter. times. in offset only lower higher trends X.X% compared at the residential to last sales largely and

and be to sales by continue sales remained X%. elevated, residential commercial industrial depressed While about

restaurant and and to office, meaningful with These by As you most improving expect education. even are conditions. pandemic expect, very be declines gradual, would commercial we recovery economic continue the to impacted sub-sectors be the

supply COVID-XX since points. may percentage by with service states, also peak. territory all X sales with by the while particular Alabama, demonstrating recent strength. The are pre-pandemic sector during peak our quarter, that A the early first to exceeding quarter chain roughly and most sales XXXX and construction industrial be retail to in return In general, constraints the have affecting and not moved XXXX, stronger to chemicals showing including segments estimates other predicted our in levels of recovery are industrial the states employment strong Southeastern in appear Markit primary to analysis expectations lumber are levels and return these but metals automotive economies For until down, Georgia, produced by their signs IHS beyond. Mississippi

than pandemic Georgia. near-term jobs its more transportation and segments of for have including distribution, territory, project encouraging. a And the economic We variety new region, Company’s the the activity COVID-XX over alone, XXXX with billion. investments equipment across electric on fact, our potential We non-manufacturing new mentioned others. unpredictable, $X.X quarter learned Southern included impacts and first saw and warehousing, and in scientific both service retail are in manufacturing in particularly certainly are economic addition strong last in announcements development development more strong announcements We recovery call among that industries, trends that is in our but the X,XXX of in of of

previous business. XXXX, adjusted a dividend also continuing Southern second $X.XX. growth paid XXXX, For dividend to and EPS EPS year. of long-term. decision sustainability the for back attention X% our your of increase to Southern to $X.XX board its X%, marks meeting, consecutive of dividend the dividend, Southern the to total XX objective last our increases or to EPS Company the was The adjusted Company’s to supports This that to and risk the years, share annual estimated of raising increase increase. is strength equal greater would – This like action directors return Company long-term reinforces approved an Board’s has than to estimate providing projected the per At our per our call recent combined in quarter investors our XXth dating annualized our of to common with dedication rate share. rate our our superior our of dividend $X.XX over that shareholder I increase

Tom, to few publish the call Southern On I in to the an recall utility turn Before ESG on update Company our minutes I’d of January, providing framework. major spend our financing priorities. some to a efforts, strategic a like sustainable became U.S. first back

to Power’s Georgia February, with continued by at appropriate. Our bond proceeds of first United sustainable over one leveraging sustainable few total owners largest community is be such megawatts we for with as renewable commitments related issued the of I’d years, small Georgia to Also X,XXX to our largest and of net Power aligns issuance last that look as used renewable one issuers Southern portfolio issuance issuers renewable projects, Southern our for to business investment future are itself financings a Power with growth been in bond mentioned portfolio. was solar establishing investments, with green the energy Power sustainable active suppliers Georgia Power further Southern has States. In and a construction. green nearly forward spending nation’s bond the under very our our in Power of solidifying inaugural framework renewable financing diverse projects. all The and our as of ongoing the We the operation in generation our the

Power in announced facility acquisition South in facility XXX-megawatt Glass wind Southern month, Deuel XXX-megawatt Sands and located the last Harvest located the of Dakota Within the the wind Oklahoma.

wind along now approximately solar megawatts gas The both the approximately next is XXX of projects existing generation of Power Southern with X,XXX of megawatts U.S. acquisitions, contracted these renewables the storage. XX across comprised fleet XX% battery and With owns natural and XX for years. over

three our have order investments past our our operations. years, business Finally, in simplified core in we focus time the strategically over to and

into quarter we our expect business yesterday, an not Sequent we’ll example services there of to We billion. credit the entered gas associated capital business, loss to trading a complete provide Management $X return comprised and sale a transaction the and Energy sell wholesale of As elimination expect XXXX. supports the on certain the the of of do gain approximately of and material Sequent another Energy we third the that commitment, in of of working and agreement Canada or

As quarterly have excluded a variability. due earnings our to its Sequent’s reminder, from we always adjusted results

remainder on expectations EPS years thank pleasure reduces has So personally no risk I’d the for at of of I’ll like to those I it’s to this more the year. company. continued you. my with both Sequent over with the sale the business team years. to all and of forward at that, service that it can impact Sequent adjusted our for the XX their tell look I dedication really turn of and to individuals back success. been And their you for Tom, working than

Tom Fanning

Thanks, Drew.

their resource XXXX, month, an includes the beating in integrated plan we achieved of Earlier reduction filed I emissions in decade. goal that by which a Mississippi’s reflect Alabama responding XXXX. As effluent this retirement Georgia quarter, to regulators work Power noted Power coal in last GHG unit integrated the will our year a with we resource in next will over XX% they XXXX the Mississippi plan. and respective and in their guideline limitation last rules, next Both

continue work will stakeholders to in We with developing strategies. these also all

hard work constructive and region. worked historically have we note, partnership municipalities We on in our co-ops collaboration. and respect in with Another mutual

enhance this a savings As long-term with of approach, in energy is the coordinated South of Alabama to valued signed operations. from create an planning Power agreement which expected of Alabama, example system wisdom Power reliability and customer and recently

forward season load a objectives right growth. As us operating strong positions the to in power to now SaaS and quarter participate for with future closing, months to support has for our we all in you In well our financial deliver fuel first of Operator, And X. a summer the at and our Power eyes Vogtle the service storm are well the afternoon. joining companies look agreement, portion Thank on ready on of this updates take part us of to load incremental of Alabama needs Unit we’re year, prepared for to as ahead, and this the we customers. continued questions. progress course, providing approach remain

Operator

Instructions] Our Bank Dumoulin-Smith of America. with the [Operator Please of first comes you. Julien proceed. Thank question from line

Tom Fanning

you? Julien, how are

Julien Dumoulin-Smith

afternoon Good good Hey, Absolutely. team. to chat.

it stand we your chat I productivity if can Unit can where you here. several but on of in can like productivity, together, that that Can prepared right. here, effective – around turn you all it’s more do your of if specifically factors sounds plans improve Unit the comments what progress to seems So there from X, and – X the we and the to specifically? It do pointed area, you project, you focus clearly, do is about your more out so numerically talk we’re just contributed to like But productivity? think

Tom Fanning

look, experience Well, Yes. basically modeling bet. You on four. for one, three number forward we’re

now So months let’s Do the up, first we It months that Because to that’s and doing staffing release what four. really for on we finished when through until all didn’t of effectively, you three. remember Remembering about six last year? six we’ve all to revised We’ve XXXX complete and these else. delayed about estimate want effectively four XXXX. started we’re everything to people this last think we and it. the were of accounted

November estimated be the don’t we to, the for just what we about X%. last with can similar So experienced XXX up We’ll CPI least is year. We’ll I hit of completing at to remainder that have done get know, project.

six first knows given way happen the expanded what’s Included of I that right it Remember, I is our for we that, of we’ve vaccines. months with now, have have certainly It you some waves optimism experience they’ve where less three COVID. told COVID, has But just the XXXX, period of for six to we’re improvement. think appears here’s gotten way in months reason who it than smaller, room that Now been. last we XXXX. going

And so our view productivity is rise. should

so X level what or beat guarantee thing. measures of one learned just last hot X on some There we’ll Unit lessons obviously are we it always X, Unit have we going the meet And into we some quality optimism, on of that at least can about tests. we Unit talked did and functional with

won’t there. to applying them have We’re we repeat lessons those that so Unit to all of X

In fact, came X. better should meeting X right and our we’re even the just last and we do our notion see reiterated on good on if board expect November. Unit friends that from did will frankly believe We hit X, we Julien, we we did Vogtle performance is to that saying All can than now, better. what

Julien Dumoulin-Smith

But and replacing won’t it. load. we fuel that see uptick after until Got personnel

Tom Fanning

say successful factors through going let’s would guess you’ve big to three. – forward a the HFT, I on is predicate risk so I the right. got have go

factor, project. do right. the to left think there’s I forward One the biggest related and HFT do the that load, however, effluent to to means up HFT two heat risk is is use to coolant well. off we’re the that segments nuclear to still pumps really fuel after fuel, is, we going heat have the going reactor work work completing of that

nuclear It fuel, like would Radwaste the reactor core. to system’s it related fuel So would things facility. move to finishing the include it up pool the systems like, to and required the over remove fuel from be the

that support The what at we’re recall going about site. have to permanent I systems, would employees call segment XXX broadly second would the relate to,

for systems support So folks. those

That work to of or that XX% be that XX% what completion by at doing, less, the something XX% plant. So of work. to things just call HFT are be safety-related. systems get of systems the between think significantly maybe give one only been out it’s a reference, water, working of about And less to to we load safety like is going support and people you hear more The latest in taken those should lot about are would complexity. HFT the HVAC like we’ve that to communications, are of you related. frame of the And And that. will let’s fuel those work amount done

accelerated will it thing to have been deal service. next I So that’s so as X. getting we’ll as Unit move starting thing you June, then into successful final to I feel about believe are think, to say people Probably, load X it’s we run We numbers not having is summer. around big then now, start max frankly, has you. and the third out Unit from confident a our hit last point, I And to to in Hey, Certainly, from the do, X. a this to pretty that. Unit get HFT. Julien, it’ll at riskiest the fuel see but that’ll

Julien Dumoulin-Smith

you Got of luck. the Excellent. so right. it. it. Thank Okay. details, for much Appreciate Best

Tom Fanning

joining you Thank you. us. Appreciate

Operator

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

Tom Fanning

Hey are you? Steve, how

Steve Fleishman

Hey, Drew. afternoon. Good Tom and

the on kind guess, I guess that So give kind color identified on you I of just make you issues – to quality March. done first you’re one sure the, assume the question release and on you on was the on – maybe there. during just right issues control some the Vogtle, track have of remediated I feel what like been those quality just

Tom Fanning

bet. You

And was were the harmonized. basis effectively that as-built that there always And the it’s plan vernacular, differences design vernacular that there I But So to the site of paper. the was plant. as we assuring let’s of for this back adjustments. as-built caution in made just several involved compared up evaluation condition use of where you I calls. That but – the

problems to we manifest with control of be we When Some a that concentration beyond that about stop remediated. HFT. And itself, calling caught issues in we starting take in it system. system. while recall ultimately program. plant, last really delay of quality we when of the electrical Effectively, weeks saw start two really the to our with when for a at elsewhere systems. think the good look appears March, what you We It there dealt needed were that this some were to kind start the turn it decided to and over that these work then was saw what issues to of takes thought, we

and And to we so looked no. – it said, back and at in effect, sat we had

Our program work. quality control does

have the system. identified We

have things But did will of finish some order we’re start to remediated continue that pretty remediated be catch to that that HFT sketched We we them, are load. we’ve all that we’re HFT. the fuel that out in we dealing to know There everything from and with. confident

say is of our would are Bechtel we a have talked All this adjustments that I X. would think estimates. found, of we and to to part schedule this cost what about with and that current agree for making with this. We Board we our Unit

So and that repeat schedule That confidence going us not, these not gives we will more in forward. we issues cost. should

Steve Fleishman

topic, Different just and understand. transaction was who the the you can name did better sale, Great. and Sequent just buyer

are $X up sheet to if it. direct how there effectively, freeing the of payment. balance sale, So you is about effective even through billion think that Is a not

Tom Fanning

call will announced not space. the they because it’s – in likely announce credible their somebody this It future that have is that something very and earnings in respected will Steve, we come buyer on is it days.

we better we’ve $XXX of than tie up working a think on for capital. found And We like ourselves. so million sequent worth average, probably something just owner

with credit something because four sales to positions, for another gross like parental we have support. revenue And business probably of associated our or gross within $XXX the in million worth facilities. So provision that of that then

transition, and but our want a as the beginning extraordinary have asked some They’re you the as just look function is you at value out quarter, when until how after transaction show up quick some to fascinating. of and don’t we’ve always say earnings we We’ve Sequent to freed just variable alert we’ll I any And expect progress. third it, included be return. items. of return. will things never things I variable we these them too risk close to in always so the are. from data And it’s

years, was earnings. even prior million zero. XXXX to when near had at earnings income. one $XXX was If say They’ve Southern $XX They you $XXX than net in averaged million, blew that, made two they and out about were look million forward. from the acquisition, where the Sequent, really Other one

years, of since and big income. in If this XXX the big so net in were years, net about owned income. And million over year. you there’s been sequence, exclude XXXX, earnings $X around then year, nine those $XX And one otherwise the they averaged then we’ve million

it, two, freeing look so any sheet, risk number number of are earnings the because step profile. we And up you if one, billion x we $X that back at balance our and reduces

to net-net think a we values, this clear So is corporation winner.

thought quarter. Thankfully, gas I thing year Texas the needs supported think primarily. earnings to really first they storage, the one I point a Sequent out, state had of in good in had more which just the of

around put into income foundation customers took that going profits to and were a commitment able to million In Texas’ net get to the Thank we our were You it $XXX provide. of there the constrained cloud our sell volume recognition to $XX goodness and produce $XXX able made communities. lot that into that million was storage of a remember, of of so gas or gas million. flows. back into of some step that Sequent off they is to breach in and made lot – communities, of

or income in Sequent you’ll So per around the net quarter first so. see of XXX

years, value shareholders demonstrated So look, that every Drew we lot any had about time. what a said we’ve bring a a good think said, asset. know to particular ability is is, who’s as M&A do I And of think better all for owner. the buyer year. I’ve that we to sold, best what owner bought and And we’ve I I the for our think of

Steve Fleishman

there there? you’ve and then renewables wind. I’m seeing look just ramping for recently. and up And are you where curious that acquisitions saying Because didn’t on just then of the what been time, question more is kind period returns transactions had a Okay. them was really you the returns last I these of good recall been

So I see started on them you color that assume Could to some that? again. give maybe improve you just

Drew Evans

tough Yes. it’s really business. think We a

and terms of in We about Steve, talked I’ve of And the believe duration to conditions the continue of that the contracts, the contracts. dimensions that. the

of it’s deals keep too much say so same of for than harder. In general, lower out we coverage. specific has many We I that because what There’s is than chasing there. lot just would comment deals. money on new a our just look share there’s too place. any been been deal. in contract rather And significant the And deals historical, thresholds

case, particular those general mentioned in plus years, over that are, XX we our XX% over for just and deals that just deals. our get profile. on threshold that That But we these business. profits fit say, So look this would rather XXX generally regulated ROE be mentioned drew that we commenting is than things

Steve Fleishman

Great. Thank you. Great.

Tom Fanning

You bet.

Operator

All right.

from the go line Please Weinstein Michael ahead. Next comes with of Credit question Suisse.

Tom Fanning

How are you? Michael. Hey

Michael Weinstein

All on Doing good. is that there? up services last seeing to out Oh you’re how different like more Hopefully, commitment you a Hey, power follow value providing doing just discussion. – on also your secure, than Could too. business sequence? that you right. ways What are comment there? Is to good that

Tom Fanning

It’s completely different.

and three case So diagram in diagram in the about Venn been would this Power, past, the in have a Sequent. of we’ve a talked Southern PowerSecure fact Venn circles

make And make premises. commercial at side move putting focused with and with now scale. of XXX let’s that that old miniaturizing station, customer of is old at for PowerSecure. PowerSecure century the projects about year think business let’s the resilient industrial been the idea Now mostly particularly sell this keeping and central essentially the really and important. premise represents of a Sequent, sell, model customers, kind of model and PowerSecure business, move where the particularly on retail start has minute. in

level, resilience micro So of can major when value our a think some customers who exceptional at put you about we grid. an do

grids United States PowerSecure. put generation proprietary of storage. and distributed by switch can are there. largest share gear We the put micro We far can the in We through

kind And Venn so the world. this has seen the on at Power. Add been a wonderful window Southern what of lately to diagram we’ve

attributes. kind and been power to has or zone a Southern other other selling great for target other utilities Southern grew a co-ops green up companies, of or Power lately munis desiring

by Southern Power So in with market of motors, so part that general that synergy. seeing renewables mutual there’s of we’re served their as cruise want speak. overlap that market The portfolio union have carnival that mills, primarily is respect and at business, great like lines, that the what great PowerSecure, of people to to generation general

do it, of Sequent generation we Now serviced Sequent ourselves we our a in now. fact have to can. need of all fuel take to somebody to can’t feel our can that do our We where degree, as some the selling that of And customers. we’ll we that for if find we management at diagram, impact customers. ability that part does Venn And serve an by would used distributed over significant

and to data of others. earnings, across provide XX% at in I being a peanut mean, general is of look earning little to our thing excess these terms and and look I kind URI through over contributor calls though Sequent, money. say. reliability a winter earnings. last don’t is at earnings one just bit you a to the leave with, PowerSecure This done, I able very idea remain want in to work, hurricanes, about the storm that a even So, terms storms. few – of of does talk in we’ve We it PowerSecure past devastating PowerSecure will

optimally. future. that businesses this we to the to in happening option and maybe a value about window position requirements, only think to what as I but on new learn how it changing that And our to gives us not technology, world an because of market, influence emerges allows customer it also the of bigger is the us franchise because see is

Drew Evans

on it of either window on dispatched. meet be the to used what are basis. into or assets customer people It but add, of of like you reliability the the focused can world, looks sort as can that I the needs it an be nine extra really just describe reliability, antenna it’s

assurity I can are that interested best kind generation, interested of think it you our But we’ll get out is I demonstrates terms in at in of that PowerSecure example backup reliability folks the most required constructions that’s that recently product all prime of there. produce the the not think Airport that and in to distributed really line. kinds but Atlanta power, more do of the

Tom Fanning

I gear, would which phrase grid generation the it’s beyond includes is et storage, switch And use infrastructure, distributed cetera. micro

a really us. but it’s thing, helps small think it I

Michael Weinstein

or of pulse your keeping a the on of the finger More future going. Right. technology look is where

Tom Fanning

That’s right.

Michael Weinstein

this question and storage. more on subject lines, Hey, along battery those one that’s

replaced? and is that projects Is the that in may more currently have comer? that seeing built You something of see believe, battery maybe deck returns renewable a that wind that as battery with higher much getting that something something you I be Is standalone, big up solar, standalone we’re projects projects. storage couple as like in than and our an

Tom Fanning

it’ll whether to are returns know don’t see interesting higher. about I – the be

We’ll doing Tranquillity an in the it’s include be build requirement. but battery, megawatts of Georgia. what hundred also couple if the packages, absolute of we’ll think what’s Garland a and state you I within

part more We’re named building is compliments to of couple facilities relatively it how facilities is lithium-ion, But or the to about is or our – our renewables air energy itself next if California. today liquid liquid hydro solar short probably storage be as whether complex with you complication pump the metal, system transition think going duration existing as the probably to something the operates biggest is example. in which single decades, another air, like we of great two over compressed

operating facility just things that out is for going the do for Alabama that is one It’s side. experiments talking kinds technology have Power figure duration to of will us. a long today about years. most hours. ways arrangements I with understandings been the of PowerSource us have circumstances. We great renewable the storage to for XX we what to that deliver we’re for power almost to within think of an can And have compliment investment for These operate pertinent learn. actually on for XX the a find that assets We’re they are case to that nice area and increasing battery battery be

Drew Evans

And point, whether think to us penetration, to fleet so later, profile it’s I’ll going XX% that of some clear become achieve in going to just us, forward, storage mostly it’s need when net short renewables. I’ll support of going solar. think very the we’re to duration, we the intermediate, somebody transitioning do Gosh, about now. CapEx gosh, is about it a going to But to think add, that’s zero I about intermittent seasonal, for just I forward, we important going ask think probably this

megawatts you’re name And lot needs more so going CCS, need to CTs those be meet on to that some day, to a cold winter storage, it. peak you whole able some CTs, some with

is that hydrogen So regard. important in

Weyerhaeuser center alliance, we’re I’m of aspirations are understand of out a supporters more policy little the these business there, had the this the Airlines, projects important from meet other – too. CEOs just a land bipartisan some and member administration. Petroleum, helping Tyson That’s to better So how session And zero of United net we’ve ConocoPhillips. and so Occidental with already Foods, us

McCarthy. We’re with Tuesday Gina meeting again

And so the the is part the engaging availability. we the am. of That is to the supply a we’re to to going going support, premise administration, that yes, with here aspiration, our I us in with boat with concept need constructively administration chain whole need of, we’re have assuming achieve

compared generation of as corporate will these over us we in XX-year a lift. ground will triple any hit other put So the big XX to The have years, the we to that amount on is issue is It kinds period history. of we numbers for our labor the big available. next

complex the get lots we choices that of do support, way we Yes, along so. make this There are can the policy Assuming think I decision. it? a very

Michael Weinstein

lot guys. a Thanks Okay.

Tom Fanning

you. Thank

Operator

Seaport line of Please Angie with comes question the next Global. Our from go ahead. Storozynski

Tom Fanning

with have to great Angie, you us. Hey,

Angie Storozynski

Thank you.

be before, either. to I I just heard I’ve about wondering, heard never pivotal I’m never Sequent I’m going So honest. about look

guys the So or some can do sale a purchase price have capacity? like bring sheet other or never any businesses that heard – either like we’ve money lot the or of balance you release of

Tom Fanning

really. Not

and Southern mean, hard have but clean the very do to we working cats right. investments, I around We’re dogs those things place, up.

Drew Evans

think of number less. things of assets a of couple large pockets focus equally, we’ve this is divested a lot. complexity we’re rewarded probably But of think around. Southern our on but it. bit just these Angie, of – investment the focus is of think last things? I is I a that over there And Not just years, little evidence this business is sort Are we Holdings, reduce the

Tom Fanning

there. talked had we’ve that past didn’t been They stuff way had mirror in the business. We have – a had The the tax less from stuff legacy appetite. going about they back leasing

that, past. dealing part So We’ve came has over talked with that of that the with we that. about us. been Choctaw a been in

Drew Evans

on our just gas-fired assets of best. territory, the but Sold core focus outside general infrastructure our all service really trying to

Angie Storozynski

quarter the first guys, with you stays the the right. But million, XXX mentioned in that that made business you

understand I okay, that on… then And So adjustments, cool.

Tom Fanning

that to XXX million, help XX charitable minute, of Angie, foundation a put a wait communities. we in

decision So out a net but so, it that or was kind we of it at made. XXX

Angie Storozynski

testing then Okay. Vogtle Vogtle, the always the end of I sorry of to simplifying and thought it for on way, about And but I’m X. this construction functional how as stage

seems Now lot a to the have past posts and things. include functional of construction

of You that it load, be hot before to to the a end though hot construction that sense more of needed cycle. I was thought it it is know in that a guys what the I’m is still construction saying the come, of me functional in to still is just, even So construction there’s again, it the start saw done delayed you fuel feels – that of portion have functional? order to

Tom Fanning

mentioned, an the We storage the the you. the reactor. to did pool schedule of left And, I beside honest like all the I say, related adjustment had systems think. That the the the like The move, HFT. fuel construction. amount year with related XXXX, always of that kind time from there, personnel XX% a do got last I it’s Heck, support but optimize know, ago. or We this of argument to it’s do but the safety kind don’t complex that and was do. been amount into past that is to the I for of only, we was related, was and in an left construction to less, what’s smallish work that a of to That back every schedule. try moved cost some necessary make I push to Radwaste construction we Like did, mentioned, over facility, equipment to nuclear We be move week, it Yes. adjust and In that. we to goes XXXX. to vein about

was except view anything nothing This do tactically every XXXX, mostly adjustments was made in decision we it week. that HFT. make that we decided to a with back is my So in

Angie Storozynski

Okay.

one so follow-up. And just

is somewhat on at So hot covers. point, is what’s say on functional fair probably be to is left left what side and depends to say and it the something that to granted began pretty straightforward. that it this fair what’s think to is you the done testing But construction

the shouldn’t prone And so it delays past. in that we’ve seen be to

Tom Fanning

nothing mean, we’ve there wish, I lived than a there’s but day number dog get with HFT. what complex here. as to a the I’ve I is years of been certainly out Angie, to doing Yes. it mean, every I fight, that you’ve less described for us EV

Angie Storozynski

you. Thank Okay.

Tom Fanning

you. Thank

Operator

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

Tom Fanning

Hi, Jeremy.

Unidentified Analyst

for This is Ryan on Jeremy.

Tom Fanning

Ryan. Hey,

Unidentified Analyst

nuclear level to a kind Just wanted just kind regarding start the you’re of out of at some in kind moment the plan. what Maybe nuclear just federal support and of federal of general seeing hearing of general. you’re at generation infrastructure the

Tom Fanning

question. excellent an is this So

to zero going XX% let hit XXXX ready complex undertaking. to this we we broadly. the are support awfully this part And been having if difficult them speak the and however economy of me and whole by And and move conversations can. zero basis on net is then to by The ongoing aspiration administration. And XXXX. view. an is my an XXXX, Here’s we’ve removal by This important of and with administration, net their they’re XXX%

before talked I’ll we’ve mentioned, talking her again Tuesday. Gina next a different with I be level, with on As McCarthy

in nuclear that it, important cooperation public, as for nuclear gets different keep administration say, needs collaboration, private States order book United done, get the think the of priority. the there sticks, will of this I it’s and whole a I and talk that be to a to carrots to level in

United an keep reactors are anything the support so at they operation of timeframe. goal. that may ours, imperfect helps design, the but States the market risk in really so-called X because current to alive nuclear do includes, providing also in R&D Gen projects XXXX that for the nuclear assets appear with And help can that to long-term only broadly And their not assets like

by All of zero the net XXXX. this economy important to is for achieving part an

Unidentified Analyst

that high of federal level sequestration, seen And then talking some coming focus the I of companies on see on mean the if tax maybe about that’s kind out carbon point. some at radar just kind or just of think you we’ve how early there’s maybe one some I this on your level credits technology the anything don’t stages more side. away that know thoughts, I far improving of

Tom Fanning

me just this. Let say

pretty I objective. supportive around now think the of wide is build that’s floating a long-term right kind to kind of

there this not of and to there are So more objective There but need At sticks. and I together than ideas ideas. and just going could piece carrots It’s the function the people did a it has. would take is some see a were specific other me day, asking interesting. start. point end media this carbon. of That’s solutions, look what the pretty I you to morning we’re at lots that is good proposed what, work And know of legislation be things. of at kind

For and my getting reliable, a is to important balance notions got then health to right and the work We economy, our affordable. the goes We’ve to safe, nation. economic fed. so American clean, fabric to this as it back the the at got of of It it right. get

of for in result a these work balance all nation. good achieve must So to this

Unidentified Analyst

appreciate questions. I it. my Thanks for taking

Tom Fanning

Thank bet. You you.

Operator

the go with next Our Scotia ahead. Weisel comes Please Capital. question of from line Andrew

Tom Fanning

Thanks for joining us.

Andrew Weisel

like is Does expected the financing also imagine looks there? you’ve there that by and billion $X having proceeds include on cash for from freed few factors of dollars one I related Sequent. thanks It for plan debt the years Hey, balance the are billion. sale bulk that me. a to credit I’ve noteworthy up next support capital the working the of and over a quick got pairing sheet. dropped

Tom Fanning

to I’m Wait point. a of this None this to conclusion turn The to minute. at anything no. this question your is Sequent do over of broad going Drew. has with

Drew Evans

so with for the revolvers because we number of actually would we’re something earnings when come that we projected we only last, $X what provision a short-term through in same Andrew, just issuance walk the bank XX reason is that you’d working billion. half, I come But really if the what aggregate like. changes it’s you say, had with the capital, we and the I’d the think like I we did long-term can dropped met would Sequent of exactly issued debt Page out it would happy almost or as in you packet. table, to – we what you up but first that’s the say

Andrew Weisel

Okay. My think that misread then. I just I mistake, table

or $X be no. incremental from billion But that. would the about Sorry Sequent

Drew Evans

No.

XX. cash able getting small minus working value then return the we magnitude of at an occur will won’t revolvers, order So than because generation. are of Slide have relatively on number, smaller numbers a or book what will plus to at implications We’ll for capital. or reduce – we’re a looking major These sale you’re around that’s be

other sort or They’re aren’t the million balance takes $XXX underlying that the assurances of nominated from on generally the transactions form of into. entered the guarantees sheet. Those for off parent Sequent The has balance sheet assurances parents.

at leave we’ll so And that, yes.

Andrew Weisel

and I for just are absenteeism Thanks provide quick and Okay, site? of that. think site? explaining you understood. into active on around said trending sense rates without you quantify cases COVID, on but you COVID that you on do the have among Then construction of any sensitive one they’re Tom, are numbers workers getting information, able vaccination able to to some lower, one the

Tom Fanning

on are all XX,XXX, the can’t card The other we’ve one tell in people a period number, I vein. just I that know had And I positives has have another hundreds of only rules been got things. that saw rates. you sorts vaccinated people times, right people project the at had now. since we’ve XXX. I current XX XX At tested only in total positive We that isolation begun mean has for tell the think vaccination recently what site. I now, report don’t and vaccinated. you tested. XX,XXX COVID nearly is up. in they’re that. reporting But I do may HIPAA report the violate percent of on right workforce I’ll that I know XXX

Andrew Weisel

Yes.

Tom Fanning

with way going everything down, know I – know variants these happen it is that it’s ebbs So and hear. and else. to what’s don’t but and yes, great just you new to flows

the hopeful us. are is We worst behind that

Andrew Weisel

All Thank you. Agreed, right. fingers crossed.

Tom Fanning

Yes.

Operator

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

Michael Lapides

Hey guys, taking… thank for you

Tom Fanning

Hey Michael, how jackets, about those yellow man?

Michael Lapides

You [indiscernible] know super guy. nice what

Tom Fanning

Yes, yes.

Michael Lapides

ash a for liabilities you were. It’s remediation all disclosed but previously potential what you. been coal think had I Easy your question while,

operating. years. number and it’s those is timeline been you think dollar requirements a I in that Can the meet have for you of about to think couple billions talk what the you regs still be is how not ash just And CCR – coal the regions and honest, coal are to that to your planes material but fleet, are entire fleet. coal the

Tom Fanning

Drew. $XX XX turn this I’ll to over over billion It’s years.

Drew Evans

find all XX-K probably decent it pretty every can of in We you think I the year. Michael, of And detail do Yes. a that.

And you take look has so how a modulated. that at that, can

it’s of out that. over XX said, If probably I think the at $XX of XX% in and five-year is XX%, it plan, contained billion our maybe then five-year balance end Tom As period years. what’s about that most over about within hangs the

Michael Lapides

this important operating a of factor how arms retire, But the for in retire operating is around, trying for I’m – get just existing my plant not plants. for decision – to

Tom Fanning

any going at are declare don’t it, we October. a to to not We by We’ve one we’re did all. going I things And that think big game It’s annual ash of going there. It’s all deal. retire effluent and the guideline. like all that? I was we our – columns. made think, were out came before be I more got ahead and other important going around were limitation is the said get to to there important really meeting issues that forward the What I stuff. really legislation

of our conclusions I issue, sure, think for part So we in to the Georgia in script working then the and as with that that filings central plan. arms around to you we our regulators staff our And are to the – make be a integration declaration. Alabama those of would kind because with get respect said, integrated resource in have a and

Drew Evans

guidelines is that closing make thing that to we only a that make XX% will operate would then that and require constraint or whether maybe specify wet to filings is it also face ELG are in we that’s on intend us everything I for not to the not put investment, that the operation, like that requirements limitation to will continue we effluent say we The its some to I’d investment economics or of against have and other at will to close to allow will October, make operate, whether investment facility point facilities. facility facility part whether we decisions that into you expect to on federal producing the condition perhaps of level. might Almost those that our the ash based we coal, something But year. generally is we each

Tom Fanning

forward, that plan be resources to those it of plants could host later. is Mississippi to you you to we do this. think component been by prime know, retired being these coal it’s our has XX look months. I’m built this don’t you raised renewables talked from I about the And about think our back evolve and need important. retiring take plants, so And long-term transmission areas earnings when company. objectives. CapEx have lot for think to order I is that We’ll kinds of the information I generation we XX as as that when important, issues next, it’s transmission somewhere. come to a all think start coal pretty thin. about those when of other to reevaluating about be hit reach over going believe Hey, may to the months myself calls, some you show. And going I still I to in signal and But remember our locate skepticism a we more going I

Michael Lapides

you, Drew. Thank Got it. Tom. Thank you,

Tom Fanning

Thank you.

Operator

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

Tom Fanning

great with have Durgesh, you to us.

Durgesh Chopra

my Thanks taking Tom. for afternoon, question. good Hey,

Tom Fanning

bet. You

Durgesh Chopra

Maybe I’ll to then you, start you. and Drew question with come Vogtle for my back

reconcile looks guy versus Is quarter, $X.XX COVID the the on better I’m that just guy. like the bad Just to to trying weather Drew, a the trends? predominantly was to normal. $X.XX

Drew Evans

It is.

sideways kind we about to something of we X.X% you sales. was in were a and we a total quarter think really relative if just experienced expecting about what what saw So reduction fourth in COVID retail was that we experienced, what actually

average in for that don’t we’re you last almost we And peak. down about on we in where just year, projecting X% we today. think about aggregate the really on kind were year, quarter see improvement second are think If forward assuming X.X% from where as were we of we much

in what’s coming of bit get understanding little a terms a down the sideways better pike of of until we COVID. So

Tom Fanning

vintage somewhere were the And Drew, our of last October, around COVID estimates of there.

Drew Evans

budgeting for Sure, purposes.

Tom Fanning

could And we I the may be think what it effect forward. stands reevaluate going

Durgesh Chopra

Got it.

Okay. the to of guess just I balance is quarters and quarter first you go. the sort mean I this three

along, look terms, So had you’ll a reevaluate clearly guidance you expectations. we very as which COVID like on strong than but early and move better start

Drew Evans

guidance That’s after the season. gotten we’ve summer through in October our right. We always evaluate

and weather – of each right the sure predict If about that’s proper is we’re major expenditures a make always the COVID for to you states. want factors think making that investments dominant is difficult influence in that difficult outcome sure the to our there making one, to predict. We

that terms end we the know not just in disappointed provision would commitments got back we And this have and it that earnings, we’ve be but to so the certainly of And limitations then as for the year, range to customers. if a towards total earned in top quarter. of we’re relates second ROEs

variability hit being And in very with fourth expectations. report little to quarter to in that primary what range typically into so the a the much goal adjustments relative we those tend modulate tighter earnings

Tom Fanning

to top modulating those range. those With the the the effects, above are respect of

Drew Evans

top, the Above right.

Durgesh Chopra

to risks? remediation on and sort six to risks for doing responding Maybe Functional you maybe the eight this helpful on of the what just just Hot Testing, could weeks, those Very guys. Understood. Tom, next specific take – elaborate can in you as are actions you the

Tom Fanning

You mean within test? the

Durgesh Chopra

Yes.

Tom Fanning

Okay, sure.

with a although test, and for off started good whatever gone so three it then is early. we’re XX-day Recall a it essentially, well. or up to the ramping is XX getting temperature, and days. But in would of So to here, service, deal. it’s is, of some days of assume advance and test four we’re start pressure that days, temperature. but pressure big of than get I XX actually no different XX days, going days you’re We be declaring in down Don’t excited if it’s did work ramping XX if it’s XX days

a a we and the the drove of XX kind open that’s plan days. But Then month. for Okay. you hood like bought up just it car

did posted. at and to you’re look like Now going work see, it it everything was

are there think there So path stages you way. different is as the along along way of with the me it about, here, a have checkpoints right detailed I don’t but

in think eminent. it’s fact, I

raise the then degrees. Friday. to We’re I going might temperature start mean It every happen mean system. rise might they happen but checking tonight. incremental that’s I XXX first that level. And to

looking I’m to that for really thing real example. risk the for the integration everything think goes I like is of

together. all all four reactor We’ve tested tested RCPs, them briefly our have them of running coolant We pumps. of

some period systems to support all run of Now Do for the we’re work. going time. of together

not only of do we to So backup plant, integration work. the have we in have power have primary the external sources that

make fuel of the spin XXX degrees checked The will work. the we’re to will far we temperatures is you load turbine. do will, we of the final to cruise, we to this So about create we’ve will this pieces that of up integration steam all turbine the is it the and sure going send all culmination and and so raise that before if

Okay.

load support of then stuff. is on finish and this some systems the thing The construction only of kind the that big So remain fuel. will then

Durgesh Chopra

the Very time. Appreciate helpful. Thank you, Tom.

Tom Fanning

You bet.

us. You joining for Thank Thanks you. bet.

Operator

Paul question Mizuho. comes Fremont Please go of next Our line ahead. from with the

Tom Fanning

Hey how are you? Paul,

Paul Fremont

to Doing follow-up congratulations great, lot. a Tom. to a start I maybe Thanks question. And hot startup want on Angie’s off this functional. with

that you represents? a I XXX,XXX roughly in hours You I schedule, weeks us how or talked June XXX,XXX year, hours. days Can think change tell think terms layman’s just about of added of construction many you last

Tom Fanning

of interesting of maybe question, X, but when like about So if to hours. guess got months, the done. And a are where construction that’s I that. it that think looking some an because spending is I’m just about obviously Unit you’re you’re now, was – months over feels two period. kind When for history I talking whole boatload you about months, the of There there say example, right two

back call HFT, of I with systems fuel. a going associated question. to bit support and would bit it’s construction for what think there’s left mean a a I little the Angie’s I following nuclear tiny and

kind of depends you fit I where would it the of but all So curve these whole of think over them construction. are, into distributed –

guess to So say see. hard months, well, we’ll is my best two

Paul Fremont

obviously there’s remediation to now then that added going that. And work Okay. to is be

construction XXX,XXX of remediation that amount So need the do would hours, after instead to of look hours what the including Testing? of total Hot all like Functional you

Tom Fanning

fuel how remain test, functional the many question is So load? a hot hours after

Paul Fremont

Correct?

Tom Fanning

Is question? that your

Paul Fremont

Construction. Yes, construction hours.

Tom Fanning

in yes, that. like finish that June, something that. XXX,XXX, most of about Maybe We’ll

Paul Fremont

that last X,XXX case XXX,XXX longer no the hours that anymore. budgeted is The were it’s not hours year

Tom Fanning

accounted already the been I would It’s for, way it. say

fuel right we load. schedule beginning give And was March. with hope the one the hope may hope the costs, it All I remember I’m can and And according we your And reset the about, delays, remember XX It’s said, end the answer. answering HFT March, of you load a any as it’s days that, all you for it given it you then new into you you’re hours left schedule. April was it I the December HFT to get back December. time to asking. remediate be – what XXX,XXX now of accounted into that mean issues, of begin latest into schedule end as of of I that rise I’m update two Remember some when been there’s Paul, late But incorporated schedule, at could margin, and gave saw And we with been if schedule, I that would by new We would It’s of kind of quarter. a you already the year. now if when we the gosh, more but we’ve very the the March, gives X-K. the hitting as into costs. right were XX. at must to had these XX between April of the I November. first hours fuel we XXX,XXX incorporated push before December. say thought the that late we we to April, that already we you weeks in X-K question, then service. according I’m might hitting we for April gave I’m And last account because has we talking thought pushed If

Paul Fremont

then averaged like October Is also got of have it month through XXX. remaining – fair XX.X about you’ve per XX And it about you’ve fair? then that from And Okay. looks turnovers turnovers you Is April. a out like that looks characterization?

Tom Fanning

wouldn’t determined wind I by that clear major use logic. all to Turnovers are tests. systems

oh, well, HFT. month presence lot determined a of We the So get about do that them here, really per about we think you XX to they of x pass I wouldn’t HFT. are systems as, left. had have the to by

et We less would are more have call cetera, of related. XX support, what XX% go, are to as rest I’ve those safety than I The described.

I on load. about can you we’ve before mean that fuel don’t we what and this the think So And feel we do month. to on Think per systems it it about time schedule. given remains.

If afraid, your from to, question. you try I’m afraid I’m

ratable If you’re trying XX If that was and done XX right left another well, not you that month not logic. question, X.X it’s That’s the analysis. to months. say, says your you’ve per oh, got

Paul Fremont

enough. fair Okay,

terms you’re fuel Functional basically Hot you an out construction from So hours XXX,XXX load. estimated got you’ve think of reasonable of… what the Is come that is in I saying time until Testing

Tom Fanning

Yes.

Paul Fremont

Of okay. a conclusion,

Drew Evans

about Paul, a sure – a bit have we certain hot just longer and we’d we’ll intensity little to functional that timely a and intensity on load load this reduction for between maintain is basis. make we meet think to test expected fuel in fuel

Tom Fanning

effectively, In there, staff, these We meetings are meetings. piece monitors I’ve in our reports in logic. system co-owners, Georgia represents process Public all time big described Paul, in the Remember more transparent. there. other where independent these words, in get Service the our one NRC, DOE, Hey everybody’s of completely Commission

the do be long out an of systems to evaluation. this time. over chart that There’s need gigantic We that Okay. all maps complete

every to fuel remaining load, as those things systems are haven’t systems it one I When XX% think about between hot say, said probably One complete. XX clearly of functional you remaining and now. of the the will over you I

we’re from zero. like ground not it’s So starting

construction. helpful. So what you’re complete is Maybe up, effectively that’s finishing almost really

Paul Fremont

they to a analysis need supervisors to then And is. a the it motivation cause did on root construction of last hours for deficiencies without that that remediation, Is also Southern actually credit tact? is, work. were drove then as inflated turnover been I in it the the turning would question testing possible concluded before the work Nuclear to adequately hours actually for that over Yes, you correcting first work was my by you guess level when earned have earned fact it

Tom Fanning

complete probably are little the I we where that we to that been. remediated did as of been all cause not to work remained I the as In true. what of possible. other Yes, mean now. bit But be that’s right a bayoneting may effectively have words, And it’s that opposed are could it clear recognition that was needed as was think have dead.

right what as a to complete. is giving you and we’re we be order to needs to So are done what where in completely transparent now view

of backward analysis that I think kind was looking.

Paul Fremont

I the ahead. sorry. maybe you think question, I’m – Go last Can

Tom Fanning

No, those just reappear we’ve the say X, because they issues. taken only would Unit account in should thing into I

Paul Fremont

we load. about? thinking And that that still the and I and functional then think fuel another third about for I that days were days, functional then hot end should you talked Is quarter call, the a think on this XX XX hot be between of schedule

Tom Fanning

two weeks about, know, added schedule. internet nearly we’ve don’t Yes, I

prior and I load added into calls, You Test load. remember weeks time – this to startup Paul to from in-service. fuel about said from we a gosh, want took we say fuel over some ago, And month two a a we Hot Functional had little to in took we the it

now should period that I XX So know, is well, days. you kind don’t think of, total

at did Okay. same that time We did more in we contingency think that time the this Angie, And we added just We I to, same at there. added margin. work the HFT last fuel some around want quarter. load we there also beyond that some to we work say where was some push that and and somewhere XXXX, a around I was push

Paul Fremont

you very Okay, great. Thank much.

Tom Fanning

these They’re all you Hey, thank important. for questions. raising all and very

clarification appreciate your sure here. we Paul, So

Operator

comes ahead. Our of Please next from HITE line the question Levi Andrew go Hedge. with

Tom Fanning

you’re how doing? Andrew,

Andrew Levi

Hey, could do hours… right. everybody this to all I’m X.X

Tom Fanning

Which is right. mean stuff this

Andrew Levi

hurts brain My from Nuclear. last questions, one, from the this all the of but is

And very, at companies electric and then when you’ve the about as you as So called was kind got far was those And traded is industry at lower the where something Tom, back rates Utilities a like and Super premium. I you I guys way other Southeast of rates. traded by stocks caused And there deregulation a go the companies back in thought starting, the premium. XXXXs, very with high about and and that industry it just a have was going. and Kentucky

forward fast to is where So Biden what and industry forward to now, fast the is and administration proposing headed. the

in rates high to any or very reduce rates flat. have you that don’t Now their have mainly to keep companies the levers Northeast, TND really rates

your look this build. have the maybe but at also your very opportunities. nuclear obviously So maybe will about is what through will again, the high of But I’m thinking And and longer-term the a cost Southern transform that, you other to relative that what the that again, that and then opportunity at the but your you’ve and and do to level, parts done, I there like for electric get opportunity growth to basically, longer-term plant around talk Company rates country. about longer-term to happen can talked savings got you we once key

Tom Fanning

a thing. the Yes. question, Andy, very interesting but here’s it’s

markets, portfolio, little very is the as I two, think the as there these bear will the significantly issues. In control organized integrated regulated consider number to so-called constructing of when model wisdom an absent you should sauce includes of we secret reconfiguring consider of the portfolio, transmission. that think part here coal, fact the some one. O&M. think it Number it coal we optimal fruit carries portfolio, lot I the whole about three, with is of that a Number the

and only transmission, And generation will there so not we of optionality the is in provide. terms

can O&M coal planning closing these orderly finally, effective facilities then a when processes, think that be up some could do we consider market. I by that then and organized O&M, and our efficient, much down you by intensive plants. in way the of freed like more that’s the And

just elsewhere then absorbers, costs to shock ability market. exist, will the wires have doesn’t We compared to companies be rates of Their to ability O&M the in are to only. lower kind use from the takers that because country. the that keep even find those they Certainly, price, deliver of you’ll

in already we this you better been call, about of stakeholders mean States. think our can regulators, elsewhere stockholders. I our issues my this with in earnings talking in I and these as model our but United assure positioned with we’re I the then think – So that can we’ve that I kind region

Andrew Levi

much. Great. Thank very you

Tom Fanning

you. Thank bet. You

Operator

that today’s any closing are Sir, remarks? question-and-answer And will there session. conclude

Tom Fanning

a Yes. want with to exciting comment end This I maybe is Andy’s time there. all. for just us very

We’re making great progress on Vogtle.

delays risk we that resolve the project. clearer think Every a remaining in month think we we and we the reduce by, I have path. goes

all to continue we is this think site progress I to in starting putting their you so And thing. boy, see work the can the efforts. I dividends And really all the tell they’re of for

the days so And enthusiasm. are end see in Company you, collaboration constructive to of can ahead, light to committed of with transitioning achieve tell the States can think the just the When their I with Southern imbued I not collaboration, government tunnel, terms about United and the is fleet the at cooperation, we we aspirations.

again. have cards you work together. say are our and of forward have what love will I they about as And going would this regard. and know a lot rhetoric so people cards our in we get July. I you know interactions. see a went everybody address attendance we’ll questions next little I Have future. but Thanks a in today. done. Thanks it I lot of always you almost quarter and out of rather the I ask. know where we anybody I they always again lot give else’s I they for your And long, the a great enjoy a

Operator

quarter Company you, Ladies gentlemen, earnings Southern XXXX sir. The and concludes Thank first call. this

now may disconnect. You

The Southern Company (SO) 30 Apr 212021 Q1 Earnings call transcript