The Southern Company (SO) 4 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

Tom Fanning	Chairman, President and Chief Executive Officer
Scott Gammill	Investor Relations Director
Drew Evans	Chief Financial Officer
Shar Pourreza	Guggenheim
Julien Dumoulin-Smith	Bank of America
Steve Fleishman	Wolfe Research
Jeremy Tonet	JPMorgan
Michael Lapides	Goldman Sachs
Paul Fremont	Mizuho

Call transcript

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Operator

Good afternoon. My name is Myra, (ph) and I will be your conference operator today. At this time, I would like to welcome everyone to the Southern Company's Third Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. now turn would to call I Mr. Instructions] like the to over [Operator Relations Gammill, Director. Scott Investor ahead, go Please sir.

Scott Gammill

and third Call. quarter afternoon XXXX Good welcome Earnings to Southern Company's

Joining Financial Officer. and Chairman, Southern Tom and me Officer Company, Chief Executive of President Tucker Dan today are Chief Fanning,

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

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

Tom Fanning

Good Scott. you, afternoon joining you for Thank today. thank and us

released reported recover growth from see exceed pandemic. The service to to from continue As the expectations. results in particular, territories And economies in morning, our Quarter. strong this the the you Third for continues adjusted our can materials customer we COVID-XX

share through will our expect adjusted results to this end more full-year Given in top be on guidance earnings we the share per above Dan September, of range. a moment.

extending for units, and weeks ago, X both X. we in-service begin let's X X expected on an with completion our Units So dates months. timeline Vogtle update updated by the

island impacts address the X of function the the attrition our The consistent electrical the time highlighted July. full from in primarily to XXX during a we year, higher third however, issues needed and our and change expected walk from following installation Unit of than earlier remediation to required, productivity down engineers, needing found completion testing, assess the of than with number of XXXX the electricians, of instances the remaining extent field of nuclear rooms the quality remediation the for X, of is safety-related resulting schedule of process, completed work work on-boarding The assessment the we of exceeded expected Unit items functional hot on new full this remediation within For supervisors. the slower into scope estimate quarter and to account

productivity Unit expect and support have several been X, resources that's next second Unit Unit labor, shifted now this concert available recent XXXX. the in For temporarily in-service Considering to progress we has recent during of X completion -- over craft trends, slowed. X's efforts. the support decrease plus months, resources quarter

we quality is the X, that than Importantly, quality with experienced what with discovery turn including we to the as importance the Bechtel's the craft amount corrective will improvements remediation of application required work believe actions the Unit of of we X over first issues, on X. after and beside program. Unit time implemented on of personnel, of quality systems be less Unit reinforcement

of experienced the consistent cases COVID-XX approached we spike in that quarter, the During peak the early third cases areas, the site with XXXX. experienced in surrounding a

protocols was pandemic of and COVID-XX, of to availability. overall certainly wave a same degree factor experienced vaccines productivity helped the well-established first disruption While the availability of and the preclude contributing during the resource

date. XXX quarter. and complete. earnings are quarter For Repairs the G submittals call ITAAC will Unit included deck, the May throughout load pool fuel next support XXX the be On the for from third NRC. milestone now required in fuel a letter to a have system of Unit been submittals To-date, submitted of remaining. repairs of ITAAC to have projected fuel turnovers the X service forecast to the the and Slide receipt X NRC to the ITAAC X, XXXX And with pool, spent spent remaining XXX major we XXXX continued third today's projected the

of volume metals and would site recent is this completion the earlier in of expected margin is the our in remaining provide considering ahead, in targeting Now, than Unit of completion October, ITAAC months what the ITAAC X's schedule. significant forecast, indicated and systems which to turnover

complete use completion load expect time pre of to We plant, the fuel load finalize and -fuel elements ITAAC the the testing. between to and non-safety-related remaining to any

increased From need in we'd schedule, X we non-manual of now the quarter for the Unit approximately on a labor share the the resources by electrical with since complete of Georgia to of work shift of full XXXX to Unit X. XX% perspective, end necessary service and the X.X% average capital Unit forecast, the productivity. month through cost XXXX, quality ongoing support million, replenishment revised per reflects in averaged driven service to $XXX that now second date, a direct by has updated to construction total complete. is to consistent the temporary for first-time and and of second the on XXXX. productivity craft recent the X, Turning score services construction Unit A projected with our completion estimate year. cost bulk quarter additional quality focus Recent trends efforts of To and cost project start of trends, of X X%, field largely in resources work contingency. support achieve completion add Construction Power month date per productivity approximately remaining

will We maintain Georgia an $XXX for the quality metrics seek, to million after-tax both And and third a during credit Southern charge to quarter. entities. credit of of Power Georgia Power the strong As recorded remain to committed we result, continue Company,

safely to right. bringing X to And carbon-free XX reliable, to with resource Units the X for committed get time priority next to fuel XXXX. letter we a and energy and will meet we submit XXX Unit is it years. load online to support safety the sacrifice operations the provide to working quality prior XX to in to We're not Our Vogtle remaining Georgia At of X, are schedule. or commercial ITAAC receipt G taking

progress work X, of Unit remain financial. increase to XXXX. on quarter retaining well support open second necessary call focused of you for over turn as will is vessel to Dan, I now first-time craft, attracting productivity and the and labor, which update now testing, the the we start towards we the by quality projected resources, and as as For on an

Drew Evans

Thanks, Tom. everyone. afternoon, And good

can see our through extremely you third this As all trending our released morning, and the solid are quarter subsidiaries materials, had consolidated well quarter. from the a earnings we major adjusted of

third basis, earnings per quarter estimate our third share per higher of share. than the of an $X.XX earnings XXXX, for quarter our of XXXX For on reported quarter and adjusted adjusted $X.XX both we a the

in our in XXXX reflects XXXX. and temperatures quarter ended adjusted $X.XX per we $X.XX pandemic, For A of the relative reported regulatory see is earnings offsetting normal of and months third adjusted compared to as share XXth, conditions quarter we and adjusted partially our summer to kilowatt at $X.XX utilities, negatively the per results September normal operating morning's the by higher than earnings-per-share earnings by estimate included the XXXX, hour milder in of release regulated Southeast compared impacted results reported earnings our this adjusted the for of our same non-fuel sales growth reconciliation for X compared continue period impacts, retail more share for drivers and with Major detailed included to the these XXXX XXXX. also $X.XX of outcomes, package. of to trend earnings third impacts towards the O&M recovery strong constructive several from customer state

in utilities. residential XX,XXX September, growth customer our year-to-date have through to Customer gas continues new on level This strong growth customer natural residential to labor is forecast XX,XXX above be over next historical year. our customer were us we reach recovery, now Southeast territory our regulated pre has service norms. on electric and -pandemic growth across track surpass added puts growth market of a driven to last which of and year's over Turning levels to which customers also levels, track by exceeded customers employment

year forecast. remained usage sales expected expectations. extended segment higher industrial to quarter. up were improvement single practices third sales in this forecast work coming large customer continued to For showed than X% retail in for line due were chemical commercial have weather-adjusted quarter, electric in [Indiscernible] event, our by our with been sales in compared sales the cuts and Residential with last remote and the driven Industrial the lagged from other customer electricity specific a than customer production our primarily groups, better line slightly

essentially continue aggregate analyze -pandemic sales and retail quarter to the We have recovered sales pre XXXX levels. third retail an our through to

in ending with the the for XXXX. the projects than of robust. force to We while higher and the in and there potential Southeast quarter monitor we the in levels $XX active are of in business coming XXXX capital average years In were constraints, supply Job alone, by signals Georgia also currently billion participation. and are these variant, continue pipeline XXXX chain remains economic Georgia XX,XXX development pre The years. in impact -pandemic announcements investment nearly investment over to labor COVID-XX X in jobs encouraged XXX and bring third positive potential

September adjusted you for per to through outlook our like of with earnings of I'd $X.XX, expect Next, above of adjusted top share. full-year range an $X.XX XXXX share the remainder we of achieve provide earnings to per guidance the with end our update on

full-year results $X.XX is on of the an Our adjusted per estimate $X.XX implies fourth an quarter basis. for which estimated share,

to over Tom, I'd update to on on and follow-up back call Tom's X. like the turning BOPIS Before briefly X

constant. our which near First, credit quality, future. turn that commitment call, reinforced dividend in been to last would plans announcing In the we I reinvestment has we our want to commitment on reiterate by our

investments ultimately capital we As plans, Within Units as potential Southern the continue disciplined benefit long-term whether not the we over plans. or warrant opportunities we of alike, offset to and sales. a better have holders execute finally, remain needs exists. several which Company, owner holders let Vogtle briefly Whether to bond several fund transactions continuous our serve or will X X for Vogtle done it our Cost after base we to approved XXth and a Georgia Tuesday. the established of month Unit Georgia highlight And order evaluate the VCM equity have the service, X Power stipulation we size so financing such portfolio where the equity common Public to in our for our rate me the Construction Unit near-term Service for years, well also review into last retail asset rate that Process. facilities Recovery of Commission the be moved most on the was full return. adjustments, into X unanimously order from with investment and allowed NCCR, tariff learn recent goes Units, of or with will billion X This the the Vogtle $X.X rate framework Nuclear by 's allows PSC consistent investment

operating of related stakeholders, important the portion and the a Additionally, recover appropriate balance X, credit which aspect struck depreciation supportive on Unit expenses I'll process is this which now the was be entire great all call Georgia affirmation The to for an Georgia Power will over environment. constructive regulatory Tom, the back allowed to of an you. of turn stipulation.

Tom Fanning

Dan. Thanks

carbon-free Southeastern update scores Market and with request, resolution represented across residential this is expected the market of of the of is energy integrated XX is platform, Subject by a similar approval We our municipalities, wrap an for robust metrics new is an our goal up mid individual all or that on bilateral a across favorably believe to launch me Let Southeast, compared states, automated rest the improve the of consisting not in our country. members for and SEEM SEEM we're imbalance which SEEM to part process. energy members the region-wide excited customers, from transition electric will and the any rehearing fleet entities states, nearly region moving customer by Energy country. already the the and and business customers on to electricity It using to resources RTOs forward platform, service trading Benefiting market retail reliability. SEEM provide to in prices more is low an into SEEM The Southeast. Exchange with of leader of SEEM a XX good the for RTO industry SEEM of reason is also or clearing XXXX. planning after mix customers the important be utilities, efficient an satisfaction very the in to

of achieving climate Turning and our we our Towards greenhouse recent Action gas Net our report most transition. In reaffirmed named goal X now by XXXX. to X, Implementation long-term fleet net emissions

the detailing U.S. Alabama respective how an important would with Georgia each filed this Limitation the authorities step Guidelines. our transition fleet, comply Environmental As in of earlier plans Power month environmental and Effluent state with Protection Power their Agency's

[Indiscernible] timing of the or processes future generation retirements may and actions planning decreases remains unit intended resource Daniel, outlined changes will include at Mississippi coal-generating the announcement than of to have plant, expected term, two over IRP. XX,XXX since from compliance other of additional our Southern and retirement are and megawatts coal the to to regarding including This units the of subject its a long more could in than coal megawatts, remaining across proceedings comprehensively announced Power's units. we the the approval transmission these state These service reduction total With the generating equates recommend needs generating integrated actions the capacity, XX%. X,XXX XXXX, for decisions recent Company of less public commissions in the through capacity resource exact many filings, nearly X resolution which address unit. of nearly XX of at to any remaining The coal final

of As protecting The part these important play our the and planning transitioning proceedings X units of placing months, and will our significantly our the transition fleet privileged investment priority capital will regulatory for employees interest inform generating are next the will high that opportunities. over always, out a of process to serve. our the communities include we on

forecasts As will It further will do, long-term investment earnings and our is transition appropriately. include next our call always which quarter update capital likely opportunities. unfold XXXX out early during on we plans update our as we capital fourth will year, transparency plan known will we our fleet through that

and current X our to plan within both providing base range. our based opportunity range of long-term capital current earnings-per-share $X $X.XX to X-year with X% the strengthen potential upon is incremental within XXXX Importantly, investments, our growth to that our position, XXXX

the before here, which across Q&A the came Now, this love we we move always just portion to wires.

typically and well, all out week of Booz And publication know top you employers. and We a are folks that Best shows list that these Veterans significant That retention, XX% been contribution a is support base, that our Times, Military guard a Day included who practices, respect assistance the and environment we their Next we've I'm ranking the the of X came the emphasis work with think provide higher XX on sure Vets for companies employment companies have and for Hilton over on I for vets. employee have recruiting they evaluations the America, part Allen of amounting that Johnson reserves. have. Hamilton, and their America well-known named the employers Southern include best and across We to programs it respect flexibility certainly individuals They Company Company America they of that want that's others. Bank in They today. The of and Johnson and & just service like to and make could best Group, number sure make.

joining Thank X We Company for the are you the number now Times. be by for Military Operator, we belief questions. are honored named ready in take named this us as to Vets, Best beyond to America, afternoon.

Operator

[Operator Instructions]. Thank you.

[Operator a hear request. for will our please prompt acknowledge to One Instructions] X-tone You question. moment, first your

question with, Pourreza first Please, go from Our comes Guggenheim. Shar ahead.

Shar Pourreza

guys. Hey

Drew Evans

thanks for Hello joining. Shar,

Shar Pourreza

some IRP your especially nice capex voice. with next a Excellent. Georgia week, about Tom, EEI Dan and of your you are I I to see the hoping but opportunities it, opportunity questions now of ballpark of and between down Can But Alabama to lot of size help quick mean hear comment shut could impact what offer us just types kind capex [Indiscernible] rates next here. hear incremental investors forward will a coal, things remind your as more of of at the couple some year. be set how capex you'll February. figures any to plans shift we roll understand the be, and finance frame great. you could then, would when the next the Maybe you the

Tom Fanning

about and that to hate We're beat total quarter will fourth that very capex. Yeah. will going call. to an our our end much say plan on January week. the I in you. and have to disappoint Sure. always We I results public to early provide be service not by or guess Suffice February, impact say of approve results. commissions update year the next it

do So we that certainly then. will

X% I the said, formulated capital our $X.XX. there range X% forecast are is an I in to the to extent as current certainly place extent growth XXXX, $X think the range the there capex, in our impacts, To strengthens increase term, to within that that longer rate. and

is We we you use customers. as you cost generation replace new that for about revenue account allow for as and of that that remember retire our with lot will O&M coal, rates low that that should rates free as to recovery, O&M. the a to thing up associated incremental intend other possible whole basically, for requirements The keep

Drew Evans

the XXXX such our to And And to increase Tom current what opportunities $X as mean, about think so as or is I prepared you a $X on these way it remarks growth. potentially intensify, reminder just said is I on -- incremental postpone $X.XX think the will capex plan. overcome. predicated

think I a is point that time to in billion long-term tangible really increases year something see profile when begin the from more. $X we to that to

Tom Fanning

of but point integrated not on there, get of And only is planning portfolios, our to one also optimize generation, the transmission. processes, we resource last benefits one

So transmission be could a there. benefit

would transitions opportunities as its Power are there more our in Southern fleet, U.S. allocations And that that in forecast. included will to regard. in keep generating of a The million other -- XXX things of calls. Southern is like We currently said we about for one allocation other this we mind you should Power. year currently for be allow stand None it in cap the those to reason

Drew Evans

reason retire. to there's transmission well, a share And opportunities early, and just what we associated being we're little the with hesitant will too on the transmission Shar

with need we that come simply and processes off. with The we where, what and just let about a our of opportunities to those other planning play integrated that function replaced is and transmission

Tom Fanning

thing a for get those choices. for But Good we our thing customers us. it's iterate around good to

You that in organized don't get opportunity the markets.

Shar Pourreza

there's on exactly that for Thank know year, once service bit next three more happens but it. interested, little of I'm which know a in be lastly it's lot focus me, on online. I in you I Got for and a the month what will

the that you TSC get that should earnings for online, NCCR flows but of just there's required parts comes to about settlement joint this The how with following once a at the means Unit a the with what I impacts cash light know proven earnings what three we and really the cash So penalty lot in ROE, think reaching of the level, AFDC. are moving immediate flows high X service. guys. Thanks and staff

Tom Fanning

Yes, absolutely.

So for let's the that XXXX. just September assumption describing chart of this make quarter sake of third all means the the

So billion Public Service at go Georgia this week, mean earning earlier the the will $X.X that of place Georgia full Power's X will results given Commission into the Unit for of cost facilities, comm in rates that capital.

going think relative December of what The for about If it's October, third third a month, about penny of today, what and it, relative we're add would a a a about to to November, for every conditions that's month. per EPS under of have forecasted sense you to current earning you

Drew Evans

Unit is cost least remains facilities, X not be we is costs with thing Unit be will the for And operating the deferred the $X.X billion. the a depreciation, the recovering NCCR, that earning with will return time, the or of Commission. and the under and common future what will of associated a at $X.X Important remain same recovery at currently, billion full X

Shar Pourreza

appreciate the Thanks, it. Got guys. great I super was helpful. execution. That

Drew Evans

Thanks, Sir.

Tom Fanning

Thank you.

Operator

And of with question Julien comes Please our go ahead. from you. next Dumoulin-Smith Bank Thank America.

Tom Fanning

how Julien, you? are Hey

Julien Dumoulin-Smith

Dan thanks, clinical Pleasure, to congrats A quite o. well Tom. team

the just the for year. right Let's on asset sale in dive

some interesting moment made obviously some You comments ago. pretty

there about clarify Obviously, regulated perhaps importantly, to Power to. some into or here. sales more of think other to needs, some here? assets are kind thinking not capex wanted there I about on substantive and it's about are thinking you're you least Just what is it how this can prospective about own about as versus considering what of explicitly feeds equity of exactly -- equity the the you then expect especially talk you doesn't you otherwise, need Southern that stated to. asset seem But that alluded you thinking as you commentary

Tom Fanning

sure. Yes,

always, litany equity As speak do. the back I needs. the on I'll to M&A go always Dan to that

or I with best whether assets selling, think we to put in seek we've demonstrated the always past owner. that buying the we're

Our formulation a value old is return. that rubric, for risk is and function the of

want speak to not. keep of the And assets owners. right will list whether better they so in or fruition they Certainly want see. now, things come do, equity our needs? public front be we'll you about updated, those where We'll looking what don't we see ideas as we you to there have Dan, we are run may are, to ideas we but the and over to really

Drew Evans

absolutely. Yes

essentially, what is impact Vogtle addressing cost So Julien, the the only of increases. we're recent

has opportunities an credit our So sales. to finding drip the impact profile, extent our that that. Whether on on or that mitigating to turning with that's these we're committed asset

of that, where still incremental opportunities we're that don't to long-term need alluding in even incremental capex we light a Beyond plan, we see equity. the

how important a a to cent month, for said to just higher make are that as position us Vogtle towards credit month. a a to per of And think that's today. X/X kind FFO about are and just It's of gives clarify, out want I to source lot per finance they period. I points of I group. And X/X we than that's of strength flexibility And it's want I point clear. for back basis forecast debt there on our us just question of our cent sure XXX metrics post a

Julien Dumoulin-Smith

a X/X cent.

Drew Evans

Yeah.

Julien Dumoulin-Smith

Got it.

Tom Fanning

ourselves of what going on In But should that we looking very And to less to more here be, are assume, you Yeah. is Okay. our it, to at. words, regulated moved that risky. have what I'm as be o, to it XX% be contribute profile. trying we're we're not elliptical kind to clear would integrated earnings earnings which buy things make other to of ourselves

of as since risk. have you turn or think past also years and I reasonable idea the seen love I've here. in And the low been we

example, Southern we the allowed As had -risk Resources bought our have Gas, been to de there say simplify us for business. that now Company have edges AGL around and things

think and see we'll about So those goes. how things it

Julien Dumoulin-Smith

to availability, remediation coming just then labor I some of And how and the floor, you made nine some etc. obviously, get Excellent. Unit comfortable the back work. ago a comments mean, moment you two time do about gap those month in between that date. I'm calling the unit staffing sort they to service stated But various of second about and concerns that out service. units points at just have, with on the

Tom Fanning

Thanks that. It's an Julian. both Yes. has ties and important as raise at point here. Yeah. ebbs the for flows to

Let craftwork, me supervisory believe skilled field personnel, electrician oversee and the skilled that's has assess to site to that's the a that We responsibility personnel explain work to that going work attract engineers, personnel, on. the had being little Bechtel especially bit. done

why We more the we've have the the attracting requirements had reason pace people, kept these you with not to and attrition. units terms advance named of in

everything response the attrition COVID certainly I is and think of amount with associated potentially else. the

we've to do had So a of different things. couple

progress X. said Unit from have that the the We at we -link X past moving de to Unit were in

didn't And so matter. therefore, this XX-month margin

One personnel from Unit that again serve continue to advance to to X, was way Unit of the borrow X. we

X. it move at really to work So we advance a to Unit but the to that, continue was didn't want do necessary

a But have X, delay Now, from to send personnel as time for the we period again, X four. in to will de we those that -linked. delay borrowed Unit in X. which they people we be back of in And finish X a means work, will once

And has so that happened.

that fills, personnel labor, and Birmingham, a efforts attract we engineering that electricians with and thing other augmented promote we so sourcing own to The done resources and is flow group very to of our field deep personnel. Bechtel's necessary construction efforts augment the We've supervisory services our have people could increase had in significantly back skilled own we have efforts. to

of in All those progress. are things

about I the I things consistent given of with the I lot Unit this. and Womack new one those X the are And schedules weeks to we X to more can If trends, the We will to of looked looked a however, on really just tell thing. you, particular, X watching conversation we're X, existing current me still There I have Unit schedules. was the say or we've and in data, you. troubling. All we're margin trends. Chris so extended or at not so at trends months

we of all I evaluating left trends and X of months kind we more we the rather back that margin because would posture take so and We X out a adding where a And on on quarter this didn't scheduled could've months we X. quibble scheduled let's both. margin And these conservative on decision. or X left came step months. had month that's ahead said, and said, for go adding believe X, And time, of on of and frankly add we

Julien Dumoulin-Smith

Got it.

both of X in both the with you months quarter you're latitude that it's a I'm schedule. so It's of adding much hearing those not If So right. necessarily.

Tom Fanning

to the delay X. when idea are X in a this we of XX borrowed linked delay causes got there's in a into back to And X fact in they're get X is place, able only time are does -- The X be then they X Yeah. months, X. send the from people again, us. to and are its we difference back month to not -linked. de we X Once between trouble the they Therefore,

Julien Dumoulin-Smith

it. Got

from luck. guys. Hear I'll soon me. leave me it of you Thank Best Okay. there.

Tom Fanning

you calling Appreciate Thanks. in.

Operator

Thank you.

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

Steve Fleishman

Tom. to Great. Dan, nice you have Good afternoon, CFO. Likewise.

match on in chance be they again they'll are come now, want you when commission, giving update with for something better speak this than that, the just different out what for what Vogtle saying So that I the this saying. schedules in Tom on is there on first staff don't latest know you're prepared you're closer few the schedule. we or up to but a just just to should you weeks that's maybe the way a

Tom Fanning

sees you really He answered of meetings Steve, know same the answer the and Dr. Jacob for I a guy he guy. speak attends well. we I the Yes. I gave that a before same kind is He's me attend, we see. bright is that want staff. stuff to don't

work some is from that Recall in more that remains finding Unit XXXG schedule probably biggest some load remediation. had in that look we think I allows us we to that I something clear come work will hot a it's to to the X. the fuel media, being must them receipt there's fuel. letter, None discussion be of opinion, loading I the done fuel, on actual G is think site. the killers and deal such but Everything little the no XXX script, a certain receiving is with the want under my track about remaining pretty to about We talked at the nuclear I of we receipt on if And which There loading this occur will talked highlight In letter schedule believe see nuclear. and you us risk and perfection. to variability at point. to thing stuff, that know as of and correct, effectively go these take to other amount allows the items. issue all absolutely a in Everything between of seriously. we've nuclear

other risk the during with, on is required G in issues going our a stuff work parallel Dr. that some now, me this probably reduces guess now just assessment get work delayed, then get of with g XXX right part, letter is hot going as that you done we've X of of Remember to buckets to XXX it schedule to fuel. that work XXX HFT. can If I'm hold I'm early left let's say we the One weeks the actual there maybe of a that's be G. January, about we us, test. in identified the my identified letter to six of and so looking functional weeks deals to But X And view of is biggest of we Jacobs then we're guess, particular that this post loading the that right that that because the is that bucket the at it. receipt guess from the talked so work, and to the say don't is I would letter time shared if remain, to

since see. received as get a See mean will I later, of G we or to July performance second with we G of is a work to you with really had January last you the see margin at really subsequent discussion bigger, that's who let between shrink If as time has That lot XXX early where G something. variety other me was It say The I systems, with X a HVAC, that guys. that things. it bucket let's could remediation call human increased deals The get say be we and and much signage XXX weeks. X If we letter the will passed think We'll weeks dealt work knows. frankly the XXX again. commission. just us

Drew Evans

to fuel Let Tom's me logistics. just add real up really to is that of quickly the for comments. XXXG nature work load risk The Coast

So once we receive operating site. the nuclear XXXG, an becomes site

do friction to personnel and on to and ingress people the productivity that's a of logistics nature egress work risk. just the So is of remaining that really the getting

Tom Fanning

That was helpful.

Steve Fleishman

question about very sale, back that And before or size of the to kind helpful. to the potential trying needs Dan asset need. Clear was equity target going

just targeting what's is or it's that? different And look to then prior increases said the any metrics you that you as a been cost as at had are You simple that well? have the

Drew Evans

looking if in after-tax we're Look, is assumption the to our an model that assumption. that you That make across a want to size reasonable said, of multiple do that's opportunities. your opportunity the write-offs, Yes. Steve,

that what looks like. see will We

More we long is not or and always a for that credit about long-term comfortable a very term positioned in with key. importantly, is that talked perspective, We that how this need we're near-term I'm significant from really there's on view to take the those anything stuff uplift and taken earn. a long-term what we've metrics charges than

Steve Fleishman

haven't -- you And Okay.

Tom Fanning

Go Steve. ahead, Go ahead.

Steve Fleishman

equity on. turn No, you you on just what that the you DRIP -- given you haven't number a said I'm Did DRIP the --

Drew Evans

have. have. We Yes, we

see DRIP to turned basis equals $XXX becomes of holding we'll on, option anything, any as on asset and one So if other. an the or annual do what, opportunities of equity. an The sale we've it not million we're about worth that

Tom Fanning

without the $XXX is This And call was last year you of issue. kind another million. said we and in the drip prior one you're roughly a thought

we'll if out Please So will let's the under go asset shares do see assure it. review drip the figure where better solution and of our are, issuing than the new we what the can shares a drip. on sales of we find issuance under

Steve Fleishman

fund I And go part you Right. guess sales incremental etc., to growth that as there degree might transition, IRP asset some, be plan that too. the could opportunities in through help Capital

Tom Fanning

Yes.

-- transition occur with forecast, opportunity the if and back the that capex likely Dan associated fleet forecast. part indicated I look the think capex as you the of capex in from most at of the good will

Steve Fleishman

[Indiscernible] Okay. Okay. credit metrics will Where you. our be Thank

Tom Fanning

you, Thank Steve.

Operator

Thank you.

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

Tom Fanning

are how Jeremy, you? Hey

Jeremy Tonet

Thanks Good, me. having for

to could come to I back wanted If here. Just Vogtle.

if see Just just just incremental a on to I'm and would've how could much thought. provide go labor increased this impacts delayed then here prior you this up market seems per thinking, month I point, some color at costs just bit wanted larger as

Drew Evans

for that that's and Unit And for that about. we million of Jeremy the notion the believe been talked has itself, I this and and $XX month increases occurred third for a Second Unit million a that been function really cost the kind way $XX things. has a most the in to is both recent X, of think in month the load X, is hotel about and million quarter it, what quarter, One this X. announcement month Unit $XX of really two is schedule here a

then incremental where quarter like the really on from construction the increase, And about, new to necessary so that's the work. if assumptions So of personnel that. cost costs. that productivity again, hotel this with reaching and for and that complete personnel both the that's in the assumptions every second just schedule recent half cost the and infrastructure increases or it also coming came the is month represented pure of to With much number complete supports half, work, increase other most

Tom Fanning

particular The that efforts. great, would is bearing I been tremendous had been these trades that sourcing McGarvey of think his the idea And building given in And has I be them labor. we fabulous. us relationship Sean augment they've really team didn't the at builds all if and Yes. remiss as personnel skilled has ongoing fruit here with support. our in in we IBEW the

Jeremy Tonet

just it, as are helpful. here, but towards just to Thank for if shifting the are stand Got about the minute maybe some Southern? that. I thinking guess think now, it and well, And federal see things biggest And you you the from I here of how right as that's a DC to for legislation? do gives minimum when takes infrastructure could. things what your fluid want Obviously, taxes, takeaways relates

Tom Fanning

at in energy low incentives are competitive transmission the go. we the fleet of we fluid calling market around X. looked whatever, kind impact in To is We're situation X, proposal. shaped maybe year-to-year like that resource as Washington, minimum X%. for a here X Canyon help incentives net customers would will a manufacturing And lots other or the but bit Jeremy kind as it as tax we've -- loads important low this, expect, that's but future anything things, a They keep thing in think it say to bounces stuff Dan possible, infrastructure bill of strong to have to new it our us. to the It And that this a America that reconciliation you in that very for is are and doesn't and is the bill crack. us prices to through I to keep a calling a for Grand can good of go to it that we the prices a position particularly to nation. and compete provide way to as as important of much averages there's from Thing that of correct we of this me interested mostly it think worldwide variety incentives. the transition that, an help in do keep and and our keep in

Drew Evans

Tom. right, That's

Tom Fanning

have of earnings. sure don't drive that us. rely much would an So on it for I'm benefits their tax others impact to

Jeremy Tonet

helpful. Got you. Thank That's it.

Operator

Thank you.

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

Michael Lapides

question. the for guys. congratulations. you Thank Hey just say, A. taking Dan I B. wanna

of always have being kind in Another with your large kudos the lots CFO and person talented well-deserved. Company on and going seat

just Next and in if regulatory year of in intertwine intertwine. the I'm series trying think how more, they and the they or events about to calendar Georgia,

X I the if process. revenue X And But like ahead will have service you'll a still to forget the Unit get what be. or similar So actually think go rate in if I requirement gets approval you to and through the IRP did IRP -- not. to also Unit file formal would how with it also go you you've then looks case. set

Tom Fanning

going that is So Michael, all list next account. year. laundry there of a on We're of taking things into certainly

going relationship look staff, you working at get load constructive of case we work to to beginning its The just managed forward, done. what earnings the history. big If always forward I going find on filing. prudency continued Vogtle the and the There things just script year the a the with that think that to Power we relationship lot the next Georgia we've itself, on way our good fuel look Company IRP, And settlement with PSC I at with the rate was load recent reached we of stuff mentioned in evidenced with with relationships. on potential a X, with with agreement is X VCM, think

to there's lot So a work through.

involved understand past, we as the in to right it with work that in Just folks have to the the do way. we'll

Michael Lapides

saw Got news My other it. question and a splash. little I

from so serve. For or to private the equity owner buying a past infrastructure plant AI week about you're

Alabama for was Power. it think I

of around into opportunities to going look M&A you through kind plant when them versus process? curious, you do see the construction bring rate Just base significant for

Tom Fanning

those as of those see something. closed we'll want our evidence kimono at we're And keep certainly talking do. opportunities to kind keep we we of another we just work Yes, about That's as on selling point, buying just we things, and this them. and

buying The about kind assets used of way. good other that thing

different. maybe XXXX this As XX% nuclear, XX% like I about past, XXXX something a renewables, think fleet, the be have all gas could gas. going have will for The thing. maybe it. get It in in could on XX% we're said natural maybe Hydrogen of you it in think X to viable X% transitioning the that the to to a us that A of look until that, I've to variety profile be be of be end the hydrogen, CCS lot could appear natural remaining XXs. that something will to doesn't the other tail

You do the has is into Plant blend that building its the mix. Alabama hydrogen know fuel capability to

XXs with have to the see an you So is sort way you're lot to prior my of good and used may in years, fits have a that about to are life thing renewables. remaining of anyway, occur buying hydrogen they XX going of that XX. units retirement schedules consistent more with that natural adding may to is, sense buy The in XX But some indirect opportunity a gas.

very So economically and assets. those renewables. replacing to it important attractive and our of bridging look with assets like strategy

Michael Lapides

Thank you, much it. Tom Got appreciated.

Tom Fanning

You good you. bet. talking with Always

Operator

Thank you.

Our Paul next with from comes question please ahead. Fremont Mizuho, go

Tom Fanning

you Pleasure us. to with have

Paul Flemont

much. so you Thank

us give it's bucket work little do, remaining You've you on can talked you of to to out you letter. get the to construction that sort separate take and the third plant. you think that still a the for you construction the after time-frame bit Can going have want that if about complete you a you

it with without can bucket. that or either You do

Tom Fanning

not maybe following Paul, your Could you, again? question. try I'm that

Paul Flemont

you do In Unit work construction have much terms -- of physical days or months, X? remaining how on how yet, much

Tom Fanning

Okay.

of are So indicated in nearly we the what here November. was I in general, middle

Okay.

So XXXG. January, hit in order to

X that's months round So numbers.

in would another there hand guess I if construction. say weeks then maybe we And XXXG right is in best had X Okay. January. My of now

think months X.X is X just let's X So weeks about plus that, months.

estimate. That's Okay. a broad

Paul Flemont

Okay. obviously -- But

Tom Fanning

that. we that we And Remember, to than revised schedule. all months more Hey, certainly Paul. excuse in the X allowed have of me, added time

Paul Flemont

Okay. Right.

Tom Fanning

to answer your my That's question.

Paul Flemont

Okay.

go? have And you to believe work physical X weeks of you then still So --

Tom Fanning

be is Paul. it that's who to weeks. takes that Hold I X It's to on, wait. on. of would on. work mean, may X guess. Hold what a knows? weeks I say -- Well, reasonable Hold just XXXG. get It But physical

of minute, a was of as middle some right? That get fuel was a wait would say November Middle to, So to middle months. you And time response more January November, it X Fleishman. of to said X to then months. add-on I think load, I

X I And that. and its have fuel between maximum, is more it's XXXG at like load, something that to weeks, of a assuming delay on be So weeks. XXXG X we And estimated work say that's minimum, there at done.

I what I X Am months. I say, or say, am to question answering your X there? So

Drew Evans

Paul, let -- me

Paul Flemont

weeks plus X either on weeks, or months X depending another where X you are.

Tom Fanning

The remember, than X if delay X but that as is it if let's X weeks, was months was less it I a total there presumes were just to said, that Paul, of XXXG. X less than getting in time weeks, say amount is,

Drew Evans

a May, continue way and September different fuel receipt through of work And XXXX, then could then with XXXG for with Paul just stated April quarter. our assumption a third in-service in-servicing load in of system.

Paul Flemont

systems And were then turnover testing? need through can think are you each go tell and and testing. plants the I to that turnover you of where for to there XXX relative us

last any were on where XXX you you now Unit Unit and are the X update X. there Unit think roughly X? is I on But update, at on

Tom Fanning

So think it. let's about

now -- all there walk-through them completed XXX was now. We've have We to so through. go completed

think let's direct start Let's We or there. there's so see, XXX,XXX hours construction. about,

with, we many July over in call terms how forget between started XX around systems, to the go. have but now, left We of and turned In I XX. we

XX, over I to all though X in XX symmetry systems. And so of months, said to are a I the getting all that If worked go that's closer and the months we're we're because even being it's little think turned X interesting on complete at look the systems is probably inaccurate just X to closer. we to

XXXG. less turnovers. need a to So of system the bit than We get In eight little completion order to that. probably there's

We X to have to load. get fuel

with delta Don fuel think and about contract, XG. XXX And Those load. required get the the that can XXXG that's being between seven and said, I So parallel, how that. to are expand we and X

parallel. And So things worked load, there a are will even fuel be those after are they on. some that are to not continue then sequential,

after load. systems two do like you fuel can even there's think I that

be required to again. X are to systems on to just required So XX X even X Of remain the after continued worked load. turnover, me are that let say get can fuel be that to fuel XXXG, load, to get

Paul Flemont

you've from you approved here, letter So the you're letter. NRC are past, to of all the to by I would saying. XXXG all treatment of the needed asking where I'm for think you I-tax you get gathering I'm give your -- get what you the before different XXXG guys before get gathering In NRC the

Tom Fanning

consistent. everything No. and the XXX This consistent NRC ever we've with is with everything all is G, done

Paul Flemont

be you that s need other to would still all have untested. but would the all, In I words, ITAAC assume that would but be systems would approved, not

So don't take approvals, those that ITAAC it. systems I are require

Tom Fanning

is fuel, are issues encapsulated order permission required the to systems safety-related that. In They the systems load to after to that or Anything somebody's get get load could XXXG is eight Yes. items. like permission signage necessarily to be I something in so mentioned. not fuel

fuel. of want X fuel, we items. additional we do load X we not to construction safety-related even Before, still of those They're X, done those X -- just in after can not be load

Paul Flemont

last my I'm then And question, sorry.

Drew Evans

cadence does you'll any service. need in November materials clarify, to November November. they're we April to that be there's to end load, that is that is want will i-tech schedule, it don't XXXG, showing in schedule What expectation Our an we a September fuel our because nothing relate absolutely when note support nowhere some Just May provided Paul. completion would I-tax, in support In of

between that need and April month since December support has number reduces so fact, completed of to to be in In X we've the begun, November submitted already I believe XXXG. gets everyone the that completed

Tom Fanning

sure actually the was He was He of Aaron project. Officer located guys you on-site. know Financial Chief I'm Abramovitz.

Tower. the Now date. started you with to give In in he's to package, he that engineered schedule have started believe in-service. well margin we September way say, he And what he we believe the CFO to with service effectively did, order in margin this consistent September have your We But Georgia saw then We you back to September. with in schedule with that. would completion be conservative a reverse ITAAC that. he the

indicates ITAAC by that we in not get the Well good say work in November nothing exceeded you expect to November, we I'll As and When XX. think we'll go much we gave margin. schedule have one December. s and we get a this filed in pretty about ahead

other you in that, the And important of so that went thing giving Greg margin we'll be the you And was ahead belief is we're schedule there schedule. fact to suggests Well, our we the the that just in ultimately reason why now. to to of And all would good way thought this kind load XXXG want a fuel was hitting to trouble progress. thought a and have guys was our we way progress. measure this we measure and to our

and December So how look the I tax file and see I've November to many that. think in see and schedule we compared you'll and

beat schedule sure. for least at pretty on I think we'll early the handily

Paul Flemont

And XXX% you you relates a as to last point sharing, are in you're question, now where currently the your you Are in where a it at the project the up and picking partners then of costs? Dan, incremental cost plant?

Drew Evans

discussion and have that. believe We co-owners entered have among not we about other certainly that us We the some

that appreciate into far go us I and think with too I just that patience I'd we've and rather there. your disclosed not

Just as it's we the don't we process of front differences not that, regulatory have resolution record have long us opinion those for of as doing run best in private. track a done of to

Tom Fanning

sure. we're disclosed end even of not to fact, with matter as just But calculation very the we our Paul into just for first

Paul Flemont

Great. That's it for so me. Thank you much

Tom Fanning

Paul us. your for you Thank joining great.

Operator

next KeyBanc. Karp you. The with go from question comes Sophie ahead. Thank Please

Tom Fanning

how are Hello you? Sophie,

Sophie Karp

for you my How taking Thank are questions. you? good. I'm

Tom Fanning

bet. You

Sophie Karp

right. All

in. you result appreciate your just a little the kind COVID I of rule one. incremental quick sort as of a before thoughts, OSHA rates. any the way this expect assume, I any given vaccination Do of issues Fair to Just and to have mandate regarding vaccination kicks labor think it

Tom Fanning

Yes, Ma'am.

of have epidemic, I delay. handled OSHA, employees safety in even way amazing. legal were to diving right impacts under We're It's I expectations there's think And site You you come. too as It's know our through to We us lot think on digest folks requested been be. that about restricted minds. the have say we what the and really there gotten are. right challenges early we've look if know, done accomplishments more just are their We the a always at granularity, has just think the what will for know kind through XXX we I even to it. protocols. call XX-day we The the here guess of a our now long. EEI now. health foremost Look, a those from it's pages I

to the keep It just Let's been deals We also leading I electricity know major response on eyes And counsel. and with ESCC, call And industry's coordinating final folks those thought, national that sub-sector you deals are our events. that. physical as response know threats. storms. cyber I've the a the

And the during our not American so of I've got don't into economy ability what or to We to the customers, serve the want those only with new helped interfere national a hurricane we as plants those the kind organize we're the to of get response sure or snow operating let serve storm, that and times. restore the new you of but to requirements up any you. privileged have requirements communities a we running, hope and serve. make introduce to gigantic events, to wires these magnitude interest Clearly

we're And granular have Sophie, are going you all call earnings next our we'll I it's could now. more conversation So all of right through. I give on stay timely confident working to by very just wish very more there. I'm those conversations but stuff,

Sophie Karp

all I it. for the appreciate me. Got you That's comments, it. Thank for

Tom Fanning

you. You bet. Thank

Operator

Thank you.

with from comes question Associates. go Glenrock Patterson next Please Our Paul ahead.

Tom Fanning

with great with still you We I would Hey, to us. Great you have be where know us. have to he Paul. don't Paul? is.

Operator

register you is your appears or lift Please, we're your It to Please your unable open. mute will button handset. line question. you. for your check Patterson, Mr. hear

If Sir, And will remarks? session. any conclude that are ask today's to you'd question. like there closing your question-and-answer

Tom Fanning

guys the hard to the people margin. We're kind progress. is making may Just And and for It get right, thank to us, foremost. the working it it We'll we personnel, I stuff. at hard. that there. we're making important get frustrated of will this right the get I'm of we they're to you And used, also, frustrated But making to so get at imprudent. what quality thank I conservative I you. right. remains want get is doing times. say always challenges so us working progress to very phrase gives scheduled work this respect site now with more think We're I always know

that. understanding for for your So thank all and your you of

As post Company, that I was relationship. think mean, Vogel, a anyone's constructive have evidence I And and we regulatory move through I the the think flow, essentially warrants outstanding these X.X financial we of at integrity we that that the that issues, are truly we more on investment. numbers we've good first as had billion working all, I had The interest progress. do is an cash irrefutable trajectory, think earnings overall think constructs

and to for next talking at with week you forward look thank EEI. Dan, So we comments? you any your time closing

Drew Evans

EEI. No, sir. See everyone at

Tom Fanning

Operator. you very all, Thank That's much. right. All

Operator

Ladies this XXXX and the call. earnings gentlemen, Company concludes Southern quarter third

You may now disconnect.

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