SO - Earnings call transcript Q2 2021

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Operator

Good afternoon. My name is Rita and I will be your conference operator today. At this time, I would like to welcome everyone to The Southern Company Second 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 July, recorded As XXXX. XX, Instructions] this being conference Thursday [Operator like the to Mr. now would I turn call to over Scott Director. Gammill, Investor Relations ahead, go sir. Please

Scott Gammill

Thank Southern welcome Earnings you. afternoon quarter Call. second XXXX to Rita. Good Company's and

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

me you that statements remind we forward-looking Let today. will be making

forward-looking historical actual those filings. to providing XX-Qs information. including the results indicated differ addition factors Form cause Various in In could discussed from to materially in XX-K, our statements, those important Form subsequent and

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

Tom Fanning

a testing secondary Functional validated marks of have completion basis the step all design the and major placing testing, significant I is Thank joining a you, Scott. Units for we demonstrated Testing me updates the but towards in Hot service. cover usual few full the critical Unit last Drew will provide today. moments, systems in on before primary operation temperature X. Hot first, and X at us business Good that X update pressure Through Vogtle afternoon let Functional Unit our The and represent thank and and is complete. of X an milestone you and and sound.

capital the anticipated, of testing it now activities to of for units, we Taking the during Functional account the trends driven in recent right, of of a cost increased contingency functional XXXX. the replenishment XXXX by Unit duration future originally fund million, and both first second Power forecast expected for of From So, and quarter was X productivity committed risks. project service longer X, in during schedule, Unit cost of trends, the aspects $XXX for Hot perspective, getting testing total recent and placing quarter than hot productivity by into project service share remaining length X updated project. Georgia of Unit all remain the to we our we the largely

As a X and load to second $XXX near next year-end occur in million an quarter. of Functional tax XXXX Unit Hot Georgia result, load. for milestone X Power recorded is during sometime fuel major project charge the With testing Unit or complete, early We fuel after our final XXXX.

fuel it As operator standards objective and we our testing prior activity. significant remains commitment safety the of we meet get load, units, as first-time top is approach our these our operations to priority. and to And quality paramount to strive right

site. Unit past; two, construction the sacrifice during We the systems; identified and paper, schedule associated work to with four, ongoing those on continues to and dates. and required in is hot of review the functional testing; work process meet reduction and prior completion follow implement been productivity have XXX of time submitted fuel the will site necessary To-date, commitments level completion to to three, our plant fuel as testing for a additional the recent the documentation, to remediation it ITAAC or remaining and completion referred includes; one, not milestone load activities and I performance. to NRC. work and and or support The our systems ITAAC consistent submittal work nuclear of scope X to

complete and Commission the special identified we Regulatory quality this load. the issues earlier XXX Nuclear the is remaining inspection had the exact and determined of inspection within by we We that underway. report fuel as are will be though Recently, a timing will months, year, the we that course be on-site NRC's NRC. couple approach electrical of expect that published conducted of to a remediation submit The efforts

is achieved construction direct initial XX% approximately X, May. Unit and in we now energization complete to Turning

construction And are assumptions consistent Our of with the productivity X. during in-service project as revised an now mentioned, first I trends. recent quarter for Unit XXXX date we

Our updated timeline of several for Unit X factors. is reflective

recovery X shifted the critical X effectively path slower focus experienced Unit related work from X time, to our call, disproportionately X. Unit XXXX. Unit we at move people the We the the personnel on a to staffing Unit density reductions of COVID-XX staffing and First, site expected reduced We as than we from early in reduction X fronts. call, our impacted Unit

electricians Unit have plans staffing X completion per the past Unit first More the three the Unit since start To year. part months need by of would our has timeline, hot in we driven functional Unit estimate completion third, delayed we X.X% average X. X to of per month, positive enhanced as seen electrician average resources of Unit to we And this to in the work rest testing, during year. mitigate Unit averaged leading on per helped schedule month compensation, Unit growing X X support XXXX would Second, over up recently, November independently have X.X% transition continues. and economy quarter staffed to Construction the retain in been completion service, has offering we and a labor Unit than expected. construction impact. X X.X% attrition. the skilled this weeks, approximately to result, levels need challenging ability for construction has trends, expected our to to and service, further more for X than in to higher meet our and, demand XXXX month, necessary of for craft achieve for In which recent labor has experienced X to attract Attaining milestones as and construction impacted

while potential activity charge associated and as with the construction units. second at replenishing for for of this support so, for now Hot well load. million cost the success Functional In us ahead including quarter pre-tax Testing encouraged Unit $XXX enormous work risks completion of fuel Even have milestone, updated to schedule by of the timing of the still a the we reflects originally longer both to update get during than test. expected, completing important resources, as Looking assumptions am X took cost of conclusion, recorded the lot contingency I units, both the with

For Unit pandemic at impacted that focused through progressing next efforts both milestones, the COVID-XX through productivity X, sites. recovery the continuing to we have broader are navigate economic on while and several

for we to XX online with energy Georgia to and next years. team, As X a safely remain X a company the and XX focused bringing provide carbon a free resource Units management Vogtle on reliable,

over to unwavering As you an co-owners want dedication our contractors, this project. I'll partners the thank important community always, employees, on update and financial. turn for I it for Drew, to now to their statewide

Drew Evans

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

the Vogtle want update. financial to on impacts I touch of today's First,

to its credit to Power continue and committed Power down to capital target credit Southern very be Georgia for quality and Southern profile. contribute to Therefore, Georgia We Company. both structure maintain will Company capital

million dividend is We fund issuances expect over internal to our expected parent to approximately year. $XXX by at primarily it produce plans, the is under equity the company plan, next the which reinvestment the incurred cash new reinstating need as

size, credit $X to also impact long-term Company's given with de and of rate financing and profile current to Importantly, minimis maintain our with credit our X% XXXX we in a EPS expect to range to earnings consolidated we strategy, Southern we $X.XX. projected our on see the above X% This downgrade are metrics this range continue growth has reiterating thresholds. EPS

$X.XX in Southeast, And mandates customer strong were in to higher on coupled increased it performance as initiatives. year's we and earnings earnings; regulated to drivers quarter our and to peak XXXX of cost quarter at Recall in COVID-XX actions. that had of quarter compared well in no earnings state kilowatt-hour both now we with than the second implemented as impacts regulatory quarterly state of the last the significant adjusted with strong savings Turning of the year the shelter experiencing year, related primarily share this is Therefore, place year, utilities, peak second last usage primary growth sales. as was $X.XX, and This pandemic last our customer response, second we of we estimate. per working constructive our the surprise our remote.

were impacts compared actions for second to to compared growth, XX% are main prior in year, at our outages would compared When six favorable kilowatt adjusted quarterly to in to customer the growth, and year. drivers are rising sales similar these included you the release as with compared quarter, detailed was and are stronger normal. are increased expense quarter; year planned new to $X.XX looking and XXXX, our hour non-fuel higher $X.XX results, customer for units. year-over-year. quarter June impacts were as by forecast Year-to-date expect reported by package. year-to-date unfavorable to $X.XX weather the XXXX, earnings O&M connects adjusted non-fuel higher usage, and compared by for those higher last Weather our EPS, reconciliation at is today's first of offset state last increased partially and remains versus expectation, the A of through the as that Year-to-date As months generating EPS regulatory increased discipline. earnings maintenance to O&M. Drivers the higher constructive negligible adjusted and were than due estimates our continued exceeding of the the

in in in service modest territory, we saw the commercial and last from economies weather the year X% significant time are to compared second the related sharply to our improvement retail quarter, last sales. to sales experiencing the continue up to lows industrial In this at Turning by see year, declines residential we and with normal segments were aggregate pandemic.

below relative sales, XXXX have to XX% levels. levels segment assess residential strong may due also indicate though our and An XX% recovered while remained sales segment, that longer elevated been to compared pre-pandemic to norms. and momentum across Sales norms. remain industrial sales have XXXX sales slightly in to to working, Industrial retail we commercial comparable; seeing nearly the continued are of in historical historical aggregate, of the In pre-COVID something retail sales recovery the all data take early reach to analyzing hybrid XX% We the level. like between XXXX commercial are improving sub-segments,

see widespread have positive material unemployment COVID-XX Georgia Underpinning more territories, in and becomes the to evidenced any by any sales labor strong delta change, Alabama. impacts. monitor of these for are signs a that but trends yet will rates in X% the service below closely market variant As both as shrinking we

potential with jobs Economic Georgia over net in the we adjusted both in XX,XXX electric active In and development to the the as positioned and In year, growth job even sales. continues reflecting coming in years. and robust continued businesses are active improvement there With new Southeast. our our over new growth outpacing the solid outpacing homes, These of the commercial well addition, as season. are bring remains what peak significantly utilities, electric results expectations positive very migration. construction be customer projects across the signals new as far experienced for are to head we before connects the we are announcements well with XXX of Capital investment half into load first pandemic. the for continued alone customer

of relative the turn for estimate the Tom, back guidance that, to quarter earnings third an after practice, year we With share with XXXX to is it on you. Our consistent and quarter. EPS $X.XX I'll will adjusted per address historical basis this third the for

Tom Fanning

it's our often think earnings Thanks, performance on that that we businesses. calls, we important across but also our Drew. We dominates see I understand terrific focus news the global

highlighted, As we half first the are operationally, and well. adjusted of our financial are performing results Drew outstanding,

Five this system a like has now as Georgia storm during of more one already mention in we on throughout month, closed known week endured we and our the the Southern experienced demonstrated tropical this our ago topic your earlier I take questions. this would Gas. have in before extreme We Company resilience Southeast. Resources, temperatures acquisition to summer AGL years

that. at by shareholder Our the we predominantly the We high non-regulated franchise of continued to objective just bolstered invest have utilities, our with in gas and the asset. quality strengthen utility value in Gas to greater assets, customer regulated investment state even to continuing deliver Retail Georgia, and Natural transaction position was regulated done divested

five past the Over years.

everyone then is of an increased breadth positive our Officer Company XX%; far mix average four, increased JD business process our In Gas increased customer our and in doing Financial one, experience ratios a basis. seek by The A business leaders business rate Pipeline annual floor three, of on billion result thank maximize Chief Atlantic PE XX%; ahead again, roles assets state job. and to Operator, sitting that we'll are to positions and our of question. being acquisition Fifth, Evans, across great satisfaction example take we equity $X has helped best to privileged business; reduced to all. growth high us and at has on to the has; risk by own XX% expectations. seventh, afternoon. by our for the Southern authorized Asset all-time want increased million as base shareholders the regulated customers gas thought from adjusted annually; talented and to serve. I we two, Power the and its across raised our Management for regulated utility-centric summary, non-strategic our Coast Southern multiples all his Company engaging sale of me, for XX% next to to while selling enterprise. is to the all approach the to assets, for its some this communities future its we This opportunities important terrific And nine like return new are Drew take open risk indicative right go with the scores; us of Sequent - and and the approach Once increasing model of businesses the exceeded a

Operator

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

Tom Fanning

Hey, you? Julien, how are

Julien Dumoulin-Smith

How Clark Hey, this on is Julien. you? Cody for actually are

Tom Fanning

fantastic. okay. Oh, Great,

Julien Dumoulin-Smith

to remediation you have [indiscernible]. through Functional how thinking there wondering you're wondering, that this you And there? testing. can we of back if temperature working that proceed, now, you're analysis additional year, post-test work down the So, for I'm now assuming I'm Hot maybe that about of the the talk is you all about right can potential kind still data took risk kind first,

Tom Fanning

hood, we a car, that's In progressing right now would. is that me of other HFT words, I now we things said let call the But part things China. the the our and couple certainly, think. happened. in that effectively, Number out work. as lift So, The see any everything is, China at in take be happen. interesting, and one completed showed important we've that's experience it there That's what look experience shouldn't of engine, and big an

has prior to point thing because want out know been on to a just I other topic want I this. this The just calls, raise

went it I recall, through the in you to to If was unit actually HFT had that want their China, say first re-perform HFT.

a significant six other had that over they of So variety operational issues concerning vibrations and things. months. took And

We have those we plant our great. worked from learn the issues, them, and for experienced, passed they through issues

the as we the course, on That load, site, thought water script, four we vapor are when I reactor fuel actually is I now guys affluent Cooling we And there Tower of information to slide you we during frankly, in look, have morning, be. areas coolant site as heated given five, wonderful test. who So, on coming big five, was this and would you see page performed between on. beautifully it do was called out work was the certainly I love has to out a But on. think going we've with from see. Unit heat was the X, such pumps, Vogtle that of it. we

with Now nuclear it we're heat going fuel. to

to in source. necessary and heat put we that all there as the use to systems get the So, got nuclear fuel

the of Secondly, operation as we plant. we some and long-term better we do then improve HFT, went the can starting things to through through found the process HFT, of

support HVAC the water And portable them productivity load. We of goes operating to workforce necessary to We on then, like on at closely call. some to we things plant an recent but then plant the the an support what's essentially more are made that's get called last our reduced this that live. that adjustment, of match activities balance this left but actually And finally, systems, we workforce things. site plant is signage, call estimate fuel will I do our to experience those out of

biggest of getting say HFT that. HFT significant a was excellent but in did manner, these an and effort, and the All the things that we risk will I represent completing

Julien Dumoulin-Smith

Got that. you understood. Thank it, for

Tom Fanning

specific, far be your that so no part seen one data was any to that And have concern, gives we if of more question. us thing,

Julien Dumoulin-Smith

that's helpful. helpful. it. Got No, That's

little on you new the So, assuming can and the color especially you PCM considering attrition and the give that are us more you and at know schedule mentioned? I up what brought bit testimony a the site, [ph]; in some pay that of enhanced in was stat,

Tom Fanning

Yes.

there. went we period a So, through

getting getting all we HFT, and So that. on going really it, into through it, and were focused

of on and NRC, greater everything issues At we staff, of X, that didn't attrition. lay meetings our - done. so Jacobs, planning really a improving we I want during attracting the deal PSC I that we out economy And on but sure expected were weren't those big one co-owners, and repeat so, we we in scope we and electricians. we some the the data were that recognized to, seeing doing centers to that Dr. everybody than finding and with were think Southeast, quality with, think, we that understood make And Unit we Further, the really mistakes lot. the that point, fully which we've the

exited we increases stages two compensation So, that of arrested really that.

in four so would weeks net experience we now, that adds, are activity, maybe Recent the XXX this say since would net fix people. say, to of we hired when And we week that, that. we've electricians I And and we man, saw one going, oh lost to were So, I want we think XX. we these added XX June now adjustment like got be, have. - so,

we'd get So, now we to like to and XXXX. have about a XXXX

ability we that. X forward And X on is track still point important some going is an here to our the good now is but about Unit for do activity X. other Unit feel from independent there So, hiring Unit

Okay? calls, months. And optimal prior is about, used to talked we oh, we in an and relationship in months fact, - XX and earnings nine

We on track an Unit independent have is the idea. no X. path Unit stopped for to the Unit X. applicable about now It think X is from longer

Julien Dumoulin-Smith

Got it. I And can. then, just one if more

Tom Fanning

sure. Yes,

Julien Dumoulin-Smith

the the any from on wondering impact of the in schedule? staff if variant Just current this you're delta what assuming and of is the impacts

Tom Fanning

Yes, absolutely.

up have been a where tests was what there handful a bit. period we they we went So, positive through little a just of are - and

guess I XXXX pandemic, start now, like impacted. have our had see, something of Let's around people Right the we - since like something - the we've somewhere XX.

be increase. data. an two have That would About XX. Okay? a been that, XX. it That's our latest it or ago, a Probably might week week was before

So up. yes, is picking it

while a been of full It seeing we're that full progression we say, get the that impacted, to associated thing thing but is the One stable. for I the other don't a I It has has slide champion. there, are the The been significant. got a took that, severity other to those think here once shows is with like have plant us want virus, of temperature, the do we HFT, to really illness pressure, less running

of little the along very things stable. once So, been there, lots them, we way, it's we got fixed and

Julien Dumoulin-Smith

Thank I'll for great. jump the back you in questions. that's Okay, queue. my taking

Tom Fanning

joining Appreciate you Thank for us. it.

Operator

you. Thank

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

Tom Fanning

you? are How Jeremy. Hey,

Jeremy Tonet

Hi, afternoon. Jeremy. Ryan It's on good actually for

Tom Fanning

Okay.

Jeremy Tonet

or any additional is what that X kind then, required? And that adjustments X - I heading report, about very there any into expectations if just regarding for the that any kind wanted to NRC on kind kind but timeline, of come have of out of of baked be remediation ask you kind there they're of might of guess, this report. of might kind in Unit one any explicit Unit

Tom Fanning

the rather it an plans remediation mean, the paper. goes system to necessary and in the but I It's submit it place put turning construction and get this to was testing, And quality to took necessary the documentation go nuclear saw the to over But ITAC. it shorthand - really of to paper. to to satisfy issues in report NRC necessary we for doesn't time from Yes. quality, HFT to involved we remember the

a in was. three big the been when four what past deal. big call, big So, deal. And I said that a I've it's Okay? And say actually deal it it paper, or a has

the in and And is; their I okay. improve schedule processors to want to in the hands. our put include is we effort. The of report, does NRC in that place their processes, thing only say effect this So, it's those other new about

there, to say, I So, will I what want And NRC. jurisdictions. - regulator of a all, we all site of speak NRC our are all of all going any our is aware found, everybody in meeting the fully speak say have as we practices. about wouldn't the certainly for about been I of our state in I'm transparent with remediation co-owners, and the completely as that's they aware fully that. to not I to

the speak beyond NRC for themselves that. Let

Jeremy Tonet

kind year internal - No, make sense kind of have Totally programs equity a understood trip the as next $XX what want - plan got understood. guess, It online? take the in million guys like, longer, of maybe of there. to of you kind I - Just I the then, to come potentially over or I message to sure the [ph] just the get on And understand. the mentioned sounds there. kind just timing a combination as with

Drew Evans

couple Yes. reported experience we terms Maybe until what actually Understand we'll a start move construction. experience into we just won't boundaries give costs, of sort or later of that we I increased you can of on in what this. to

that report The the budgets next of write-down incremental today sometime led these to million. really begin of $XXX So, to those total are we sum things, April. that

ratios in like to the incredibly credit a to there our and felt are We particular. fulfill was agencies made necessity we've focused commitments that related rating coverage to on

thing could by say which is maintain think, under this single expectation DRIP have debit I three to monitors our what that of only I to The that issue agencies so this whether credit is on But $XXX for in is just generates we or the a what a plan, to turn continue to particular program as do year to we be we that's to about just of it would sort construction. for as that's temporary a construction us purpose monitor rating million, the is plans bondholders described biggest intent But of it that intent. that made temporary. we'll And quarters we've for simplest to permanent, through year. those commitments and to our created you and single singular quite

Tom Fanning

I too, plans And you the for forward, plan. X.XX. to The that The we said we the is turning script impact think to on the it in Drew, in time, place, to the put financial did range, the stick de some X X% guidance XX% that of DRIP, minimis. we

Jeremy Tonet

Understood. color. the leave it there. Appreciate I'll

Tom Fanning

you. Thank

Operator

you. Thank

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

Tom Fanning

Hey, Mike. you? How are

Michael Lapides

and proceeding schedule of you're whether trying off that in the for supposed of moving case and one is how the And you file rate push next well, how you big timeline always. my kind little X taking with docket Vogtle of and the One that? all question Georgia, then, playing Tom. docket? how Vogtle or that First and all, you, the think from one second as and do kind do kind processes to on this getting just and about questions of Georgia. Vogtle, for And Thank here? for rates Tom specifically, really envision Drew, in the think you on of two for around really a I'm regulatory bit, about will you that the year in and

Tom Fanning

Yes.

and kind front anything I will framework Unit know, regulators we the job X Commission in us follow is out we my We've the of a laid with do steps. around fact, run Michael, before that forever those proceeding great been not have. prudence, early to admonition already and before, you plans mean a you've and rate of right you, address you or and So, one cost the to certainly recovery the that. really with currently

order back There there. involved really pieces since a but it is an it move in complex constructive methodology to able regulator, constructive moving with here, way, the all do have was place they'll moving whole my in putting in we pieces XXXX, job sense fair as leave a accounting we've I let's tough a with manage lot situations So, way. a is, think of in in really, I we And forward. constructive been the

Michael Lapides

places of Got jurisdiction then, asks, no thinking change in generation Alabama investment utility. better of to may kind play the be you ever about ever of over out, well grid next talks in one it. about the And a How obviously fleet about, terms question the years? how are pace but to continued one of a one as may the no the as five how three change

Tom Fanning

is a our founded integration, the So, at we right? and plan. great very importantly, a investments the at And very way look dysfunction transition resource than organized into fleet we and and at Georgia, the Alabama question, of of integrated clear look generating transmission is Alabama, markets, evaluating operating bigger we an URI, When interesting have jurisdictions, so-called orderly overall well the Mississippi, all it question. to that's much a in of California a and look so-called - the that

So, place. we in processes have

different and optimal in accountable, it's to to customers. a was structure some constructive degree, utilities their do distribution, the we've procurement, and of years; my Recently, Recall whether where Power the continue. of being idea Alabama our the part would year to transmission, That embraced, a the are past approach And of develop problem. for I way Georgia in as of market very embraced way renewables. have has answers investor-owned companies our the of by is have cited for we're mix. Power we sense a sales, our fuel But say the commission best addressing generation, of utility Everybody way of idea we to All the accountable the all solar been effective problem. has solar industry. it able will the work the with

Michael Lapides

you, Got guys. it. Tom. Thank Much appreciate it

Tom Fanning

you. Thank

Operator

you. Thank

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

Tom Fanning

Hey are How Paul, you?

Paul Patterson

are How right. doing? you All

Tom Fanning

us. for being Thanks Fantastic. with

Paul Patterson

Absolutely.

else somebody number think came I - this about of up I what workforce you percentage just vaccinated? just So, people Do just ask have your curious, any in that? many how is question heard - COVID. I'm - when on

Tom Fanning

know. we So, 'XXs. argue, I low it's XX would and don't somewhere But between

Drew Evans

different seen in than the what in not materially Probably we've the general population Southeast.

Tom Fanning

We're disclose Yes. to people for example. it, not requiring

requiring workforce, in not wear etcetera. the mask, are you distance, you'll you're a if socially We behaviors that certain vaccinated

Paul Patterson

what Okay, we're retail is we've to or there your And normal, had further is and of is of, your Obviously, post sort that with sales pandemic I have COVID, normal respect effects? just back sales what as to and - total - terms rebound any I'm When for great. expectations if just in might change is what's how you. growth wondering, what your guess? you've along, there a outlook a then be thought, new gotten

it's of is let's how given pandemic? say, expectations end growth normal, sales now, going of retail guess, here. would assuming, XXXX any I at assuming are back just growth what for XXXX, let's kind there - in you forward, say, noisy growth, the think mean, So, the sales I your that But the sales we're to and change,

Tom Fanning

Yes.

shows chart this, given me. pre-pandemic But Paul, part residential Drew because is up. a package, brings and that you team page So let of different we've the still he I XX. I It guess, double than to perspective

evaluate So, But analyze office varies of and this. things significantly mostly kind are think here virtual, varies kind and location, when with pre-pandemic, XX%, it the like by the roughly to it head were in around maybe new function. XX%, the centers interesting we of what to numbers the of wrap your When we about will things consider; is call one workforce normal our pretty by local changing XX% tried permanently that. be, work

residential If the to follow and be idea kind XX% they're would be appears XX% between a about the of hybrids; going racing new virtually. this working completely then, Industrial, of sometimes expect in then to the sometimes we'll the me levels. XXXX I office to to to a are permanently of being with think back world rest XX% to XX%-XX%, round in sales numbers virtually. we're Pre-COVID. have office, starts up And prior that be to I they normal,

the jobs thousand investment Amazon now. development guys Amazon, I'll this you $XXX Squawk watched that in economic development bringing we it's said And I if activity I them - is investment told of in million; a kind and one, the see, data, give we're I one. - that's that Box So, there. of especially morning, XX% think forward-looking I at you mean, economic

but happened projects, versus hasn't this versus So, XXXX these XX%. up are are XXXX, announced up XX%; are and

this So, of the mid-XX. activity in And is somewhere is burst jobs created from investment. there

would to say So, a remain to of industrial Residential little catch commercial still Drew, we'll what is bit all see. may that? elevated, up, going question; a you is what's happening?

Drew Evans

I I you would job The might count nice a customer of it. thing add think around did only be itself.

first is so, in the residential. year. like a just that normally This half we've And something of probably add XX,XXX given year. And largely customers three in we this added of quarters

And pre-pandemic. on described and So the a there would and region huge couple based a really have what net like more really stay. in here of move couple global that's Southeast to But migration out than sort or is which you some. X% we've not segments, expected is automotive sectors is strong based be represent from difficult employer. a little to a customer, here. what bit think being productivity, of on could separate industrial we we Industrial of economics, use there had of I good transitions where a per global higher large And are residential probably the lot customers as that in not benefit at

Commercial in and on industrial normalize. to As residential bit take with going you, to longer I'm little very is a bullish particular.

Tom Fanning

Manufacturing everybody there was was that. soda and caustic really And really, segments stuff that's primary taken up Yes, down they down chlorine, and an up XX% that just their chemicals. year-over-year; transportation raw data, We The was plant pipeline. That Olin only three one like else Industrial XX.X%. and over production, up. metals, produced year-over-year. had is

by is [indiscernible] some recovering the first the in to full Those last And States. pre-COVID to and level this of this are states data Georgia like are fastest one 'XX. looks one the So, year. hit to hit stuff. be United Alabama expected of of end going Mississippi it's point, its of states which the in

Paul Patterson

asked guys The the found, probably question, a - given And I [ph] issues rebuttal functional other how great. words, Vogtle. turning perhaps brought rebuttal that work it of they be you, whether that by about functional have after you to which Ben milestones that I or have you And performed testing you up this you situation But an just what plan we and with but have And to here quality normal that were would is, up that BD - well. those then, just quality this the that they hope as luckily, diminished? would hot to here. with filed be in tension guys of that work staff, very anything, issue testimony of I'm course move now of testing performed forward? mentioned it the and would look they in think, issue may that, testimony terms hot say would significant the Okay, sort what as do you this if maybe or were bringing wondering not my be indicate at

Tom Fanning

is that. here view my So, on

number think your follow with have arguments that a we difference interesting consistent been has had I have One that the a there of been question. staff.

example, dogma our fail project to it quickly. been doing in has this For

the been and find alternative big they from construct I was later. the think of mitigated system and it fix test to is when so, also, everything before our test would that standpoint them bigger done. early, kind a And a became to it to completely problem problems have only risk And

money. is bow agree, risk value exacerbated think also well, work. The wave the you're I would but I that doing and say, would Yes, a we costs the it of have way return. function more of would criticism,

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Paul Patterson

Awesome, much. thanks so

Tom Fanning

You bet. Thank you.

Operator

you. Thank

Please Southern question line your with Company. Our next question. Kuczynski the with proceed comes from of Stephen

Tom Fanning

Go yes, mistake. No, I a that's he works for he next to us. your question. - think don't

Sorry about that everybody.

Operator

and that Sir, there a closing Not conclude answer remarks? today's question problem. And are any session. will

Tom Fanning

construction council is business doing working make there. thing question is guy and hard is staff know, the Steve terrific. who you my for Steve don't has this of Vogtle he has management X nuclear CEO a Southern, He's on A of and he's to phone? named the the people success. Yes, And of what there of so Chick direct was been X. For those of - oversight our a course, hero of a Glen

Here we're the is is analyst point. feedback the on you getting the right I thing, think from I would community with, and leave

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think outlined I you. we've that for carefully

that X. load X, month. have for And we percent let's for with to getting productivity just you, so, per Unit completes to fuel suggested Unit we the forward the kind of the look deal

we at to So, have X.X and XX we X.X, at seven to X, the done time. XX, X.X, kind Unit level already Unit X.X the have right, X on done and for nine of months

however, give estimated, we more the productivity. done have levels are That's a we cost we the In have estimate margin past. you, lower schedule. little these ourselves given on So, and in have to

these fleet we're the carbon we're Outside So, a Vogtle, sensitive progress. very this to to running and the make preserve be security, outside of are the doing weather attacks whether numbers. we or to excited future, do about we're hit trying national low Vogtle, transitioning really we're But of continue realm to to extreme whether resilient to franchise, the great. business will we our physical to cyber in And more it great.

I think Last efforts, I'll front. diversity, I culture bringing when we're Southern think crossed the progress we efforts. even run long making This so, of mentioned gas I company now for we'll diversity will, Greene. improvements in be Drew is And when our our strengthened mention, these Company - here CFO the off at about culture better. Company functional have Gas bandwidth. in increased, Evans to you Kim of just if AGL The is think the I D&I on fold. on coming think when those cultural about and I by thing, our inclusion, all being guess, efforts about Southern. fold the bringing our better now in And Southern run cross now when over learnings renewed we Southern into has - population, of and and populated the - all we've

forward look future. day to So, for everyone listening. talking you and thank the with Thanks today, in you, exciting

Operator

Company's this call. and gentlemen, Thank the quarter XXXX Ladies earnings concludes second you, sir. Southern

You disconnect. now may

The Southern Company (SO) 29 Jul 212021 Q2 Earnings call transcript