The Southern Company (SO) 28 Apr 222022 Q1 Earnings call transcript

Company Profile

Participants

Scott Gammill	Director, Investor Relations
Tom Fanning	Chairman, President & Chief Executive Officer
Dan Tucker	Chief Financial Officer
Julien Dumoulin-Smith	Bank of America
Steve Fleishman	Wolfe Research
Angie Storozynski	Seaport Global
Shahriar Pourreza	Guggenheim Partners
Michael Lapides	Goldman Sachs
Jeremy Tonet	JPMorgan
Paul Fremont	Mizuho
Nicholas Campanella	Credit Suisse
Srinjoy Banerjee	Barclays

Call transcript

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Operator

Good afternoon. My name is Kelly, and I will be your conference operator today. At this time, I would like to welcome everyone to The Southern Company First Quarter 2022 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. now turn would to call I Mr. Instructions] like the to over [Operator Relations Gammill, Director. Scott Investor ahead, go Please sir.

Scott Gammill

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

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

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

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

Tom Fanning

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

we released for we see can of The you As Southeast believe first economies the quarter among best to United within we for our service our achieve in morning, from adjusted and States ahead estimates. the our well-positioned materials objectives we earnings results are the territories are this financial reported the strong XXXX.

call our progress the at Vogtle to financial turning Plant provide X. over more update at a recent on Before X performance, Dan first detailed look for an I will units and

week program. expectations its during Since forecast time, for our to that timeline closed. implemented issued the NRC at year cost follow-up that Vogtle unchanged returns and supplemental actions been Southern for completion progress the last provided have the projected final site inspection inspection the verified its capital sustained follow-up The unit. consistent remediation we've we identified that units inspection the With additional No the inspection complete, this quarter. this efforts corrective completed both findings the and identified updates and baseline Importantly, each effectively were from seen The last findings with report. the site. and Nuclear step are

now on focus Let's Unit X.

receipt necessary to have We construction records and towards the remaining been all ITAAC submission inspection from now the XXXG nearly of progress complete. to letter. continue necessary for the testing, of turned systems are All over NRC's

this ITAAC with months, submitted Associated progress the to NRC Of these complete XX ITAAC the to just ITAAC, remain. earnings progress, last our the call prior completed support two the all XX ITAAC last are over in last XX NRC were XX to submitting we the ITAAC since Considering letter. provided to letter have to be remaining expected an the our of XXXG updated schedule. completion and

focused X receipt system Unit operations, XXXG records, component required completing be the to test letter load construction and from turnovers Following the on continues efforts NRC of inspection will later as its transformation to our this necessary year. remaining the the from and and fuel preoperational

X.X% XXXX has in-service year, supportive the focus the have and ensuring quality. the be a of XX% from productivity testing we in in-service ahead to Turning on X. we clear since and our continues functional first-time now Overall, cold for per to hydro year-end is progress the plan on Unit achieve have X Direct X Unit make average personnel to a of completion need additional continue site we hot December We increasing date. month resources testing. approximately complete. advance a needed as start through projected and construction X.X% XXXX for the of to X and Unit Unit averaged transitioning September construction of believe

current Unit on meeting is X expectations. progress our specifically, production electrical For

continued to across on X and vital Vogtle in unanimously the carbon-free We energy, next partners and reliable, for bring state. online, the X,XXX proceed to need endeavors XX dates. will X with that partnership schedule the with to which, year affirmatively multiple decision our megawatts value vote the them X The for to availability to We in-service to be changes of required resource This projected owners to do. had and resources announced However, for safely last with project, increase and of importance electrical the our Georgia Vogtle which a as of XX units baseload have the production energy February, customers forward decades. our look across the increasing relationships late we Vogtle work carbon-free to will support X zero X X to years. they voted we providing underscores net

are with Dan, the of and few to relentless past X units at Vogtle proud months this and for site the progress entire incredibly quality. I'll important the their pleased commitment safely you. and We utmost to over with at call completing turn X over project the the team the now

Dan Tucker

everyone. Thanks, Tom, good afternoon, and

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

looking of at and for were is to at included continued reconciliation drivers our quarter, customer and actions last and quarter higher earnings of was $X.XX was than quarterly conditions regulatory relative state-regulated operating levels detailed customer normal which growth last release estimate. more the results above during control. trend EPS O&M, the and quarter for driver utilities. towards for first our compared variance a in EPS estimate cost XXXX and adjusted reported first main the then non-fuel the reduced adjusted and Our compared XXXX to adjusted A year year primary $X.XX, largely our $X.XX to state constructive as When strong by lower the of offset to The XXXX today's our robust growth significantly reflects package.

quarter. modes continued recovery sales the offset as Turning continue or approximately weather sales X% This first sales our the remote quarter, than industrial quarter residential the hybrid retail now territories, somewhat and throughout in from and commercial reflects from were businesses to in XXXX. lower economic normal to schools economy. retail to sales by service the transition In higher stronger environments first increase in-person

customer quarter. customer of see continue addition market the reach Southeast residential growth robust customers year. and by X,XXX is expected nearly to territories growth driven customers level labor with electric this over XX,XXX later to and levels pre-pandemic This recovery of during a our service of also strong residential gas employment We are the

of is the X% Port as jobs anchor the largest also Port of from a growth of Savannah, record year. the the in elevated cargo demand with mid-September congestion last of of of volumes container a a currently around to of Savannah, in increase is first Additionally, US continues in record XXXX, that XX economic only port consumer easing of which and a ships outside in levels. peak pace contributor the fourth nation Recent Georgia, down and experienced quarter to ahead XXXX's major from drive Authority Port at the signaled Georgia figures in handful year-over-year

the payroll respectively. increase XXXX by the in last in to our Additionally, annual XXXX. our expected increase compared of recent first capacity first expansion of is year, in quarter saw Port a remains of in service approval XXX% and quarter robust. the to regulated City increase than by Terminal the development of the Savanna's business XX% Garden economic service end a XX% territory territories additions investment, the In more West electric pipeline development economic announcements The

outlook. in is with an for the new alone, quarter averages active well-above back on job We projects additions high economic we participation the year. our labor constraints, exceeded Tom. trends and we of closed two all-time the as first Georgia topics the and of The the pressures force monitor to quarter that seeing in over historical pipeline of inflationary by call the are remain final for XXX X,XXX, before have And the which implications to encouraged continue supply first turning chain State Georgia I

$X.XX our common have providing superior dividend completed, rate of increase our to share; the an our century accelerating that consider highlight we investment. back has adjusted to our the $X.XX quarters Southern premier marks call record return believe of a risk-adjusted Board was action and Directors XXXX, will share. X back opportunity second, equal to last increase we and rate second call, per greater EPS dividend track estimate Southern in the $X.XX or per a reinforces remarkable Company First, quarter, as paid our This Board our I'd as announcement. further investors. recent X the to total sustainable per the are dating objective supporting Earlier share of the to, Tom, on for Southern approved over this annual consecutive previous annualized is the raising Vogtle you. shareholder three to This for our year. turn increase month, of Company like growth, mentioned XXst once And and than dividend, the dividend to now Company I'll

Tom Fanning

investors, interest Southern Company. for have a Thanks, our customers, Dan. and has and heightened stakeholders. recent always other Sustainability our plans communities, received progress top priority employees been In years, from

underway This sustainability of business of we company to work and governance provides future transparency tremendous all reach site energy. across constructive build with seek We website, stakeholders the a about and highlights on have we which a us engagement strong our long, environmental, the as and our sustainability are core release additional recent dedicated topics. help new of social objectives, excited history to the

our like information maintain thousands recognizes work is need published of of I'd and interested job dedication take and and we Lineman the each to are and out month, from. the and Industry that Edison report It principles know the Brotherhood the moment women Power presented inspirational. Alabama community Workers day improve Electric which appropriate disclosures. From every International open current great the Edwin this Additionally, the Power National now heat unwavering outlining time, you days of in the them to National We IBEW to to ALLIANCE, and in we Thank and of serve. Moreover, the to needed and our enhancing the privilege IBEW day. hard employees needs those fiber these to communication. enables and last ever-evolving Day, specifically infrastructure and a to us Utility efforts, prospective weeks the install committed grid ready just our necessary closing, investment that we our miles the display, meet D. in broadband. call transition are and and Council training this are Electrical those supporting continue your and customers to prestigious to cold joining a line electrical and employees the take award, week, Southern stakeholders our Fund workforce and to just Operator, and country In with men answering month, look Training that remain increasingly have committed for the of at resiliency employees is throughout successfully recognize the that questions. truly Company day this Award honor that in to we the do away to afternoon. and this support skills bitter to and training to Alabama Institute automation to sustainability ensure was transparent related to the Appreciation access training Through a to have observed U-XX. continued contribution that receive extreme an Hill we providing important our the workers that and System and remain

Operator

Thank Instructions] Guggenheim question with first Partners. Shahriar comes you. from Pourreza [Operator Our

may question. You your proceed with

Tom Fanning

Are owe Operator, hear are are there? you how don't on Shar, do, you you Shar, I If mute? you Shar. $XX. us you?

next go You the question? want to to

Operator

Yes, certainly, moment. one

comes question Julien from next Bank from Our America. Dumoulin-Smith of

question. your with proceed may You

Tom Fanning

Julien. Hey

Julien Dumoulin-Smith

Thanks for the time comments too. Thanks it. Appreciate opportunity. and for

seeing So wanted get then labor that given of you you the of and Unit those just are trending comments a can, environment, here. able just about just what about feel all versus specifically the I and own is is both just being specifically, your productivity How on the historical And bit the inflation individuals? there? to on more to if expectations? talk little then X, and exactly availability And cost literally

Tom Fanning

Yes.

some think I remains can on-track in simply, But X Dan with here. blanks fill expectations. Unit our

consistent good budgets, that regard. with all in our are and expected timeframes We

timeframe better consistent is X.X% gave the monthly of that than suggests that the a average we September is, X.X% the you of we in year-end. advance and need increase I in think the with that construction to data hit kind

that's stuff. your So three-to-six-month

make our to for Importantly, all as just our of consistent X you is production we in said with know, want the script, expectations. I Unit sure

X. from people X moving to are We

so, productivity And overtime. and production increase expect their to their we

estimates with we to So our increase. consistent need

behind and most us. to respect plans the still Dan, like pay, ready have anything is that to risk frankly over this getting increase. that to top effectuate for people and add feel With went want decile that of the move for inflation We Southeast, We over here to do else? we believe call. we're pay we you

Dan Tucker

then you do we but on transitioning, for this thing a briefly, -- the into X we from particularly our productivity. through to from lesson Unit detailed to And certainly only craft hit every plan X this and that learned go do, Unit process. have X, electric us also factor very Unit Unit as as to The Yes. you'd we're ability expect add to increase will X applying I'd

Tom Fanning

there. point is last Attrition One normal at levels.

progressing expected. it's as we So

Julien Dumoulin-Smith

How in be for about the around timing communicated? window resolution of cost, will what guys. then your that Thank disagreements if on can with in that And middle? just Excellent. think you that baseline we And are here the COVID tender before looks up should expectations resolution opens mid-June comment like co-owners, the costs, today? timeline coming you, the and mid-August. it's the here the How

Dan Tucker

this. deep co-owners. don't in Julien, with us place conversation form the I too right to just a to want our and into take that That's frankly dive needs

As certainly back the the course remarks, that Tom a of own referenced But you resolving out constructively. record mentioned in formalize throughout discussions. The let of these in on of are that to, That's any of year. just us over rest and play March these disagreements that with have timeline We'll was our the back let kind a decades play out its XXX-day backdrop of this we partners the clock let's to sort prepared started go track year. that. it a

Tom Fanning

with this of our we I at that discrete the site. them kind not engagement know a with was have should week you co-owners. last And Yes. is

real-time You conversation Julien? a Anything should having us here. view as else,

Julien Dumoulin-Smith

folks guys. but I other let got thank I'll But here. more, jump in you,

Tom Fanning

you like. us. Feel All joining right. you Thank if back free to jump in, for

Julien Dumoulin-Smith

guys. luck, Good

Tom Fanning

Yes, thank you.

Operator

comes Our Wolfe question with from next Steve Research. Fleishman

You may proceed with your question.

Tom Fanning

Hey, Steve.

Steve Fleishman

Tom. Hi, everybody. Dan. Hi, Hi,

Tom Fanning

thought well. your to complement just with folks was done. -- call really our want action that on you I'll your get to I to me call, as before Let that Good I job. well share you here.

Steve Fleishman

Of course.

So now actually act that BBB suggest policy. I up, would out if if that slim energy curious other just down I'm you -- of or actually is brought that on, and anything anybody you're hearing that listen -- D.C. guess, anybody might

Tom Fanning

make I my comment on energy of you But essentially here, of Box United sure I Well, didn't headlines little -- just it to unleash I'm the sure media see Squat me the get States out this one economy. was think the unleashing American morning. let needs the

good McCarthy been We mentioned Granholm and a having conversations lots I think, and Energy, with like this Secretary of others. Jennifer Gene have people is of Listen, Senator constant ideas. conversation. has

number States be the I we United and think that ever. take right advance to see it's we think issues elections do time in it the When to the get for D.C. energy in to policy, Listen, than people right in the the enough is of issue essentially weaponized get of November agree its we now see right constructive. more done I Russia people get that Steve, action. time now is a How the number of frame and on service. challenge deal

Steve Fleishman

hope they do. Okay. I

So question, renewables, some you're pretty of related, one that maybe that you nuclear I know still just gas, good a -- second mix has companies just have still and of data in coal, more that put mix metrics you moved you up price. just showing little a your set deck lot gas in slide consistent though and even has had on pretty renewables, a the the

why could from not gas. maybe seeing color more just So give on away you some just switching

Tom Fanning

– it’s little… Well, a I I think think

Steve Fleishman

We see more call…

Tom Fanning

hedging be put with we've a this programs. And in place in industry. don't put the data long state a But our time I ago, for always had full may This -- place we constructive man. Yes, know relationship set -- our regulators.

going me, I'm Dan gas effect, -- correct in about of say about so was consumption XX% to hedged at about natural Btu. and $X our million And per

of what So to of times decades, of when you accrue customers. dispatch make these all no We as expected profit the they're have hedging think Dan, lots this. about because anything over program. percentage of pointed curves, than And of any benefits else? of you better that might we course, off probably our out,

Dan Tucker

a of things. Yeah, couple

being is looking electric in on to and little holding just summer are peak Steve, that conservative we're business word terms sure coal making that as there our be a might the the thing season we our right well. of enough one towards is in So occurring, in

we switched And of report, your frankly, So this there and one otherwise energy hot certainly are touched is a coal, rails. natural the own People their we're you times their topic. And bit when is have of it's that of coal ahead. and about don't reprioritize transportation is right the looking that, obviously little behind might to the on we're top gas but because on a have and I the at things and think of in not enough what's sets are lot coal available other lack we have rails personnel frankly, pipes now. personnel things, a of. of with the having talk And train with may list

just so do be And to how having thoughtful that. about we're we

Tom Fanning

that units is the the Alabama. there controlled news coal is it Plant the good best It you cheapest of of flagship, plant, has plenty in if our The coal will, summer. for Miller is

shape. in So is that one good

people In want XXXX. The make other loud of long-term and by just objective clear. no thing this way negatively achieving that net-zero sure I our impact to does here

be able the until day-to-day. plan face have the in the But plan happening worldwide to long-term have what remains long-term our to Certainly, Mike exogenous in factors energy should what's then will happens. change strategy robust strategy and You get upon a tactics that vary you understand Tyson, manage be market. you and that our hit depending the intact.

Steven Fleishman

on last question Vogtle. One Great. separately

resolved. seem seems at electrical the to getting it update contracting, the related paperwork to to the to made mainly the And with be which so year-end you issues be when schedules,

is most terms that be other should on anything load? the goal to there that we of focused issue, So of else line than getting in fuel

Tom Fanning

Yeah, bet. you

it's – do worried So am lumpy the What X the that in the if XX a gave I It could about most pretty just we to that occur if manageable pretty looks as looks ITAAC math we request you, effort situation if I you right similar needing you your remaining the will particular? right and that for XX question, but that you would fairly question. on say ITAAC letter. Vogtle to I change a in finish, XX XXXG about file think manageable. now fashion

my nothing always for to ITAAC and there's the and load. things. time happen today Certainly, work more that take good has granted. so variable going XXXG between in hard. But sense we're pretty situation And think the do I like it's We how getting shape. now about that worried am is those a in to I to looks fuel

like, Now that and not I'm safety of transfer fuel the it of kind But related a things, but giving a sample, are. the nearly aligning you lot scaffolding, different putting include covers them, a pristine XXXG just they're things permanent the would throughout as obviously buses getting things nuclear lighting operating closing in the efforts, for demobilization removing rooms, system, electric closing lighting, ready and them and like cleaning plant, removing the general temporary as condition.

that lot So stuff still happen. that's of a to has

few a turnovers for that. system think, I

done. just work two left. think to I There's more be

are together, kind can say as big well then integrated cycle load XXXG. thinking to path in from fuel of do think now. and the that something? digital as would I critical my say, you of follow-on right that I thing be. right Dan, about that I operation, steam worry they fully are operating is just the the the controls will now Those to things be want sure than about next mind making And more the probably

Dan Tucker

Yes.

and on on doing work Tom think to paths. then describe the things and concurrent to get important parallel fuel XXXG. not that we're sequential. the necessary It's what on to the understand, those we're to load the work as focused there, things to with largely I other. It's first get We're doing to not hear is it's get you

Tom Fanning

now our to runs fuel brought Yes. Sena, Chief to And done, we be that's that our And Pete thing to guy the and he we what site, the Nuclear a other I say tried load. Officer, is who have pointing fleet.

environment. member we've senior so, about think to team, added the And another construction as an environment to from we moving operating a

Steve Fleishman

PSEG. Great. you. I Thank him from remember Great.

Tom Fanning

is He terrific. Steve. Thanks,

Next question.

Operator

Our next Seaport from Storozynski with question Global. comes Angie

You may with your proceed question.

Tom Fanning

to have us. Hey Angie, you glad always with

Angie Storozynski

Thank you. me. Thanks for having

of plant commodity in expect regulators, and just what could the if from have rate So, construction, price the project? nuclear co-owners of the to and in this under wondering case the both us I'm you new also Georgia give politicians of upcoming perception how any changed Georgia environment sense the might for your

Tom Fanning

for get to followed you years, the many to regulator. we're with front Angie, us having not in that Yes, of know, anything going do

the I and all June, the when the think, So we right filing end in at make we'll reveal we'll filing our make our of rate issues, case. certainly of

think that especially really I [ph] though, cover they was don't I when it's XXXX, I separate triennial think the is will have cases we this it Triangle in fair So, rate gosh, first our it Vogtle. cases, since, as past rate say, issues -- been case, filed from what in the to about issues in boy, know,

so, And I we've are they what issues how always potato I I meat treated say, more fairly. of call been running. and would about system would is think And

work there's constructive arises, a a And sticky it we have issue that relationship. out. We whenever

kind I same that think should expect just process of you to continue.

Dan Tucker

PON it, grid capital in the would rate are introduced particular, of programs. I XXXX a large programs about a in investment a to Yes. lot and of the extent, Ash things items, continuation think like case,

updated. carried those see you'll So, forward, just

Tom Fanning

Yes, us. policy is but normal for any here. you won't curve stuff expect This

Angie Storozynski

answer everything. Vogtle to Okay. for – recognition there's And that more be be power of gas a might diversification of has of not that's then on now there the sources that this the and global appeal

Tom Fanning

want to Angie, champion. and good be by the a don't going going very the dispatch Southeast. by the to, standpoint a And most transition for even you plant. be potentially its Vogtle, in like it's to $X it's asset the for to And of $X price are for going energy dispatch the the to a fleet. gas look BTU the as be or think of I say, at about all the from it's about price a future think but and going dispatch carbon-free. higher positioning thing compared is for this about million Absolutely. way, feeling when nation. look, per be safest the way, here, we good Southeast the of really I reliable to hyperbolic state, it's Look, probably fleet this Look,

Angie Storozynski

question. Okay. or – fuel about And your so some then can one and XX-K talk or sourcing just general, nuclear it's but the saw last on dependent it, processing from you I in about comments enrichment any nuclear of how not uranium well, indirect and Russia? dependent in sourcing director

Tom Fanning

answered own your you Well, question.

system we – a moved our And some ago. as from we're so we think did. away time glad I Russia

no have exposure to We Russia.

Angie Storozynski

to Not exposure like even indirect XXx? through

Tom Fanning

pushed now. that problems. And our no. we – from I've not with many well times insulated on think question No, we're folks any Russia

Angie Storozynski

Thank Great. you.

Tom Fanning

Thank you.

Operator

Our Pourreza next from with Guggenheim question Shahriar Partners. comes

question. You with may proceed

Tom Fanning

Shar, back. are Hey, you

Shahriar Pourreza

My got up. all I I that, apologies. hung about that. sorry excited am I

Tom Fanning

as as nearly Not excited we are.

Shahriar Pourreza

me for on. Thanks you go. go. There you There getting back

Tom, after the am tariffs, think, solar a the month in storage. PD it supposed at a essentially, coal I a the which I has healthy there's August the you're gone obviously gas, with between is looking to – besides period and And about a with of and get rule of goes PSC decision IRP. the making, circumvention plant. through So We're mix Georgia fairly IRP, all just the curious, when

are stakeholders the tariffs, some could pending some which we time? of for risk, with going in visibility out shift pricing this cause tail I I how uncertainty the see guess, light maybe mean, So investigations? IRP circumvention with conversations could

Tom Fanning

supposed should have This somewhere recent really to July, in economic about fascinating a that a anything. and held that That's schedule, of illegally to economy. The it. this to needs experience IRP I peers on time only is is my of it's resolved had tariffs frame. account. know heard a August firm circumventing some I is say it's The is lot about issues, protect my that, States from lot investigation have news circumvention be global I be if its itself question. My in my And think Shar, in security on national they an to the not comment own interesting. somebody given United standpoint belief

the let’s happens. let So what see run investigation and

any a think to despite In renewable may strategy, conversation a perturbation that investigation. strategy. me the that solar I is the long and again, see Southeast, tactics here, this in from it's is between we it clear dominant run,

I course think we the stay there.

Dan Tucker

the Georgia in to Yes. there context to directly approved. wouldn't it's if the dated. tied you as chain in issue, And executed a process to of some current asked Shar, there circumvention very out space. It's the to question Commission, the are in seeking of in but was to fact, XXXX supply And of to was forward back defer this go nature RFPs really one. you solar -- the general matter And last week approval PPAs The of IRP overlook long the brought IRP. is I anything that Georgia the the not IRP, the in are the the and being last constraints IRP a year, today.

Shahriar Pourreza

for Alabama put the with to that. that lot flows of IRP Georgia an post Vogtle be the you And Got Alabama waiting come It's still -- about, plus got opportunities it. as electron But the well. that and there's potentially it, Power. cash we're capital generating obviously, a we're and then, thinking going Southern even

maybe, you're highlight opportunities Southern about CapEx and sort that just with the thinking incremental how that So, Power. IRPs can from come financing of

we're curious mix? asset. thinking an the of you're leg next footprint, guess, of as about the post Vogtle, I'm But, optimized I kind already how regional the thinking CapEx, especially You about of sort

Tom Fanning

Yes.

Shahriar Pourreza

straight equity-like or equity beyond Thanks. opportunities there instruments? just Is

Tom Fanning

what Jeopardy think, I in on understate CapEx? I the feel think five-year this I'm capital like personally that Who When do something Well, requirement, we $X account about. billion a anything what because But, assumes number typically than could other we guess, budget sudden. I call. numbers. for you we're our $XX billion. Dan, a easily forward be, it's may last official know demonstrated let's We conservative by our I so In don't first round year, numbers. in billion, because baseline like $XX is see placeholders. about that, all I round here higher nature, that of because knows, words, we think don't don't budget I our

And start some that the to kind XXs that maybe in time frame. things or may occur from new XXXX start XXXX, generation, late come of that of showing up may maybe may

years Last any the see the but with would me I issue don't additional see So point need frame. equity think would I'll you let those capital. would make. during to will here, Dan be that I time argue this I

-- but opportunities the well, create sales. M&A, we If If You to of divestitures stuff we you at to not do best have owner. of of will have us assets do means important we the in seen amount is create It do -- do and see have hands like that, we maximum us our world that do we put we shareholders. also for acquisitions, future we in value in the asset and always if plans that the seen only selling, it, buying the to present. no

Dan Tucker

even said. I have the equity needs at your reiterate, would anything of outlook, no on Tom any I we just upside the argument the with tailwind. to don't top foresee

Shahriar Pourrez

guys. much, so you Thank the execution. Congrats perfect. Okay, on

technical that earlier. Sorry glitch about

Tom Fanning

No sweat you for joining Thank us. friend. my

Operator

Sachs. comes next with Goldman Michael Our question Lapides from

proceed may question. You with your

Tom Fanning

Michael. are you? How Hey,

Michael Lapides

heck Dan Tom, even just this probably I’m macro It's thank industry a one. than fine, one an for and of one. our here. of a question my is Tom. a industry lot more Thank and bigger It's you taking

and and how a given going industry of investing few about that thinks all months the how leadership in nuclear cybersecurity in how you that stuff just out cybersecurity Board some the world, risk Kansas, that's today? the a plant ago around regarding managing the on exists and Given curious and came

Tom Fanning

able is enormous, information it. have Well, NRC. be to the former Chairman play have we in have Svinicki, status of are Moniz, this Dale Chairman classification our on people lucky have so Kristine All Klein, are we Board Ernie we these and well that to of Energy, of in mean an think former the way. people former steeped to we Secretary NRC. unfiltered I in

and citizen years Hathaway, the utility CISA role. now turn Board. my Commission. the to issue. was that private enormous I over Advisory the an You Listen, industry I've friend Furman, eight led and my is Cyberspace all CEO obviously good for the on only at Bill know this chair I Solarium Berkshire

Congress. I I When Congress, which me report, of about it. as it's anybody, came out this is Solarium it's that bipartisan recognition no to and playbook. with in there its of frequently universally I guess, do Commission the as the there was think I Cyberspace to halls walk As been clear of we do the adopted importance need Unfortunately, what issue

agreed so with come every industry. not recommendations XX% The course, elsewhere law. of and operationalizing, glad to our is to now with and but making And making get to, that now stuff I'm are in in enormous own this commission's fruition. ourselves strides primarily now CISA chapter Of I States was United safer. help But that making

as security. will the do we in our of national private reimagine that the role only We sector preserving

shout-outs. two give I that. with And I to making terrific think want we're progress

thought White job First one does terrific the She the Inglis, is agency. of Cyber Chris in the CISA. just Easterly, just a National Jen House, then cybersecurity guy And Director nation's in our Solarium brilliant a to Director operationalizing She's my advance became the our got we Board. around real Look, found the to how in talent wandering a I I he have Commission nation. together, and and on before partner fruition

o been. company. to years to go, than a a we operationalizing nation is man, the think And our make plan than more inside the talent man have ago. whole were nation real we're I A better it ever security national off lot five as but We better has

Michael Lapides

then Tom, that I think going bill can almost And and as got an to guarantee be discussed generations more changes it. a and and regulatory in question. -- in going the you probably because about over more I frequently for the to issue trying time, thank that's regulatory it's the bill insight I'm to Georgia. that's be Got a question, past.

will months of you'll probably next So early And X, service to I Unit rates that file progression after kick GRC the events in XXXX frame, those fuel in the changes a the a And forward as fall will X of right planned, of the goes in. then changes Unit kind the of that, fast thinking next few bill, of the any to kick it the Vogtle couple Am then in to of cost? beginning new if months, time XXXX year. as in. customer about irrespective rates rates

Tom Fanning

kind Yes. the hit what received those but than say on order originally let just me at to in when Dan are that, still discussed of to or was let we units. of committed I'm specifics Vogtle going the too, we bringing cheaper the Units

less a still deal. which we're think is at So I than XX%, big in

Dan Tucker

cadence increases you correct. those the Michael, Yes. of described exactly

Michael Lapides

it. Got

the I'm And cost? cetera? finally, changes think to to relative seeing pattern just bill going what you companies, country? bill? across do the about the in you're Alabama, customer on you fuel the et What's in what's in Georgia, southern look us customer Okay. at then happening remind How trying the just what the meaning can elsewhere

Tom Fanning

to mean, from relative overall, from average Look, anywhere starting great our averages. first of spot, rates national the XX% we're all, to bounce XX% a I around below national

place. we're a also not coming, from that them constructive only kind the out are mechanisms of capture that help So of incredibly well. forward-looking all is it's very thought very got good cadence mechanisms starting so We've what's

Michael Lapides

it. Got

Tom Fanning

bet. Yes, Make Michael. moving, you

Michael Lapides

No, go ahead, I cut you to mean off, sorry. didn't

Tom Fanning

capital broadly, every the in was going that's to down. look, help plant to got ways, that's say are investment into and internally right. turning retirements more We've That's day We're that or plans. we're working up customer cost bills we be savings, just down whether grid the O&M O&M to coming efficient working whether things systems keep of different will keep enterprise more lots down. coal doing I

very in only not things. being or it's regulatory It's our so approach how two comprehensive one operations not plan. And we

Dan Tucker

customers of are on these and of I about low afraid I'm find the you time-to-time, in increased market to some my weigh Well, about for price. when the they and they the return, are tremendous just of no also function also a somehow lowest in volatility prices with Southeast one commission the in In And net throat resilience. regulated don't go, market price where rising to those at pass structure of ours. the integrated have lowest customers are opinion, says there value get opinion preserving structured Southeast resilience, structure winter around structure that and reliability cost. our zero, the me arguing our storm to interest different we providing integrated pursue. and sales to anybody Make prices so market, you a some risk amount resilience, was the but to energy we that falling providing yes, be misguided. the Yuri, is think for move and choke, is to profit know get markets and motive from the In This Recall, a issue. Let in in advancing it think so-called serve. moving the regard commodity we We When or is irrespective valuable. prices. and along that parochial organized customers there deregulation right make have to markets is sell, disaggregating we accountable

Michael Lapides

Thank you, Dan. appreciated it. Got guys. Much Thanks Tom.

Tom Fanning

You with talking you. good bet. Always

Operator

JPMorgan. Our with next question Tonet comes from Jeremy

with proceed question. may your You

Tom Fanning

joining for us. thanks Jeremy Hey

Jeremy Tonet

Good me. having afternoon. for thanks Hi,

see, of the and just in I in I to May completed these with said where others, in want lot right maybe guess, the to a back any And to and and the if steps then there? it's what July, guess, before into real Is drivers outlook Just go like you was the difference less lumpiness better months. Vogtle, or for I wanted cadence end. just were, the the last as lot quick, there up the kind few the better I versus A difficulty of drivers, other understand ITAAC. a degree could,

Tom Fanning

slug Once quarter had is you work you with, of your quarter No, the by and and a big systems it's that it's it go just ask If I XX deals would I you say that difficulty deals like right more that that XX, se. completed And really different before to systems not It's letter. that controls of of with letter. it's final per of be just file work, systems. finish nature It those, would work, the a matter that perform. do I of final the a And It's I expect, ITaC the to has of roughly say, half work, Again, for will requirements. electrical timing. characterize our time primary with degree monitoring as then of matter lumpiness as of the it. the it you driven ventilation with a out of XXXG wouldn't certainly say, deals difficulty. a we it's the to

Jeremy Tonet

there. want then helpful just to Got I towards And pivot economy. the it. Georgia That's

do your thinking or stronger cargo forward, the as you dated, trends do point from now picture the far mean has think lot what's there pre-COVID, levels you pre-COVID activity just You good talk You had later if near-term. economic in think the economic maybe in I big the about of going growth about guess, think longer area? it in more your the a wondering, is I'm a changed? to how happening? view, term growth that of I maybe strong commentary activity back you than about, just and levels as footprint getting

Tom Fanning

also, CNBC Georgia. their particularly my you on into Southeast, a What people think you interview we website, seen go migration so I have -- look And put should of Yes. can out is the it. at

a the regional has a we there's question well, Georgia And would growing the in that United way recession think see have any at to population You I question, States. we this fifth of, point. different be the may are ask that going recession? have in don't and the highest data supports this Southeast recessions, to

give some Let interesting. it's you just me other data

two biggest But plant at guys One know that number, our mean a within and sales number, three it year-over-year, closed. was that's of I you look was we're single-site you up plants was our X.X%. plant. If a one a okay? chlor-alkali newsprint good industrial

over the mean, and up those brander you amazing I from sales stuff. that's the industrial were plants new effect X.X%. of our remove If denominator,

the So, with the unwinding you see rate. in, ports, I the you of supply think, migration suggested, of you chain, unemployment low especially see Dan people see the as

downturn, and I sustainable global for sea if certainly, positive beach think the are if to up recession. And chemicals and a there for is is the there on crawl will a years something come. to widespread the in be that

severe seen downturn past, we quicker. probably the the will that will be and from The will Southeast As downturn in less resilient. more have the emergence be be

United I to organic the is, future. So love the I I area. All economic our can't States, can in predict say the relative growth

Jeremy Tonet

Got you. helpful. Thank there. it. leave I’ll That's it

Operator

with from question next comes Fremont Paul Mizuho. Our

You question. may proceed with your

Tom Fanning

Always with Paul. to Hey, have us. you glad

Paul Fremont

here. the is X, couple of A glad process? that you that from be Always work on required remediation questions. of the that part fully ITAAC completed? separation the ITAAC is that be as And separate doing One Unit would work were is cable or quick process,

Tom Fanning

down. part underway, it it's still that winding Yeah, yes, certainly is of it but And is process.

Paul Fremont

So that, based line before July, that be out would be right? on that put work time will completed you your the expectation

Tom Fanning

consistent Yes. Everything that we're I the putting out with We're is frames. there, think. time good shape in

Paul Fremont

Okay.

Tom Fanning

the in dog your background? that Is

Paul Fremont

Wimeranner, That yes. is a

Tom Fanning

All right. Nice dog.

Paul Fremont

this documents Did you question, call those thousands of I you said time you And needed that you about to fourth Second this the was you hear had of documents XX%. potentially or either call, are around now had quarter located right talked locate. that replaced? on the found

Tom Fanning

Its found. not much so

it incomplete. Sometimes was

nearly be are for And required think are Sometimes left that to few There done of XXXG. all way those that wound work. I go may we're a fuel, for to there. it down load basically the XX% but We've was absent.

more It's there's I XXXG. with work but fuel it's So load. the still largely associated work some for described to done, be with not associated

Paul Fremont

Great.

in final it And of I Thank on you terms the so congrats much. When the out? NRC. me. questions section that's think due is for report

Tom Fanning

Next on I some website. week, already posted think. stuff their They've

debrief – our So had already and we've the NRC. with

Paul Fremont

Thanks. Great.

Tom Fanning

Thank you, sir.

Operator

question Campanella Nicholas with from Our Credit next comes Suisse.

with your proceed may question. You

Tom Fanning

joining us. for Hey, Thanks Nicholas.

Nicholas Campanella

of of some expectation is just but Hey, I of move Steve's no the can you of more you're on everyone. just parallel And that guess back load. know to like remediation ahead that the I running get I remediation appreciate work Hi. be schedule we're waiting time. sounds to Really that question right I on the front. it XXXG, point really as kind just this having on XXXG, that at to with done? for paths kind comments and wanted go on Thanks Is the the can on. there me fuel like you –

midpoint the on X? case, COD why for any of is that's reason if we be there shouldn't targeting Unit So the kind

Tom Fanning

work Yeah, to yeah, Nick, done. more there's be

should more fuel get You to There expect us XXXG work not be done. immediately. is load and to

know letter received chart to So be between, fuel there I expect shows were that will load immediately. still I sooner, be time this have load. if got gap fuel letter and some get to the we I would XXXG XXXG space there yeah, would we in you. start almost If a of

Nicholas Campanella

guess and to I Okay. that Thanks. translate Unit to kind can you bear X And lessons you starting to Unit fruit. then to and are see broadly, talked of learned from That's helpful. it. moving start and last you about just from X Unit folks X Unit to part that of talk Maybe X be would

Tom Fanning

are. absolutely We sure. Yeah,

work. In we've resequenced some fact,

and able wanted And will. were order complete be as as you really we fast, control the Some in We've The it critically. learn if out. that that. the past We really stuff room to we things that was focused. in moved was from Early I like able think whatever fail them of then soon site on, arose and smart. to been to apply energization problems and mentioned testing

those we Unit a I sense that to X, Unit X learnings. Now have how to as incorporating learnings we of have proceed better at on set think a

see so progression. you And will that Unit in X the

Nicholas Campanella

it. got it, Got

to the owner in. more The if Okay. sneak commentary. best I And one then could just asset sales

thinking that been business but you comments from there would at decarbonization overall your into the know There's the of about be helpful. gas the large are wider just Southern and sales clear asset on goals the fits You've markets. past. how a private portfolio no this I how there's interest table in LDCs Any acquirer point? today,

Tom Fanning

you substitution of in well, and Well, we sense our get should may Illinois, effects to of actually, effort Illinois whole afford through approaches I makes economies sure natural others. heating. fits clean, make reliable like in all. America, heat electricity do resilient Who to think make and and okay? could home, gas that affordable the When the the appliances balance the So in think all the And safe, our in all decarbonization. gas say, a could Well, eliminate about be oh, in you business policy at well compared gas like no have eliminate we other objectives, to places with that that? and gas energy we customers no that sense cooking

to global objectives with range So a and to we have reliable, to to what got account we've safe, And achieve impacts do come into solution the clean, on is take of affordable. achieve those how up full net-zero. customers,

I doing that. think we're

problem gas government talk the Don't American that Department somehow boat we idea And should in broadly, capability goal. relationship, to solving go us the where the undersell a in States foolish. technology America is future. get away think in the the innovation to want this really of with the when of net-zero about achieve United the new I Energy of I

may whether Some of more storage, zero be important new that carbon name funding that net removal, that's whether you is technologies, whether it. it's nuclear,

far, of think, Chair. one a -- Vice biggest chairs. shop funders Former by I and research the We're in the We've are, several development proprietary We biggest America. of had

is [ph] I of Conley his chairmanship now effort. think Stan second that starting

not how perhaps amount now state is plate aligned old those interest and perturbation step Europe It's can countries the there and can't trading world the whatever their far parochial that the of Friedman, new geopolitical partner Europe, geopolitical to flat the in invest that biggest we development the nature, aren't. only gas, global us the providing emerge interest help just chain and national is what security be future think economy to the standpoint, national clear do The to nation in provide foolish, to of with gas having Look, We around the that. problems. here. have with the for United of is ever are keep solve as Saying need problem development our them need how we not a globe. the has gas interest and a given plentiful energy that But supply is feel Russia supply solve can boy-o-boy, me energy now in plentiful development DOE. that we're Thomas today's see most and is, world by weaponized national the important security full may and things idea cheap given the economic with in evolves. is global States, up do secure from the do, And partner. innovation standpoint, are technology these a that, it's or we technology that commodity flat. was not see one where that we but that the to activities, can to States supply United and we'll of here, I And

Nicholas Campanella

all leave will your there. thoughts for it Thanks I

Tom Fanning

Thanks

Operator

comes Srinjoy Barclays. with question with from Banerjee next Our

You may question. your proceed with

Tom Fanning

Srinjoy, great with to you us. have

Srinjoy Banerjee

good afternoon, guys. you. Thank

of So on debt issuance questions couple side. a the just

broader of us then Southern indicating decarbonization Power, coming consider the no for that some For up, remind maturities metric And there. there, Southern just Southern's so thinking strategy? would we but Could debt what a the part core are? future credit issuance you deleveraging targets about Power, needs

Dan Tucker

wouldn't I there. it se, as debt, about the deleveraging on mean So we're maintaining continuous metrics think per kind I of

the part XX% so debt We're time. was over And about related that a question. second of to your to targeting FFO

flow, has that. simply support and the it And second been we're so, the be business we're retiring an Power to business, then part on we'll core a the here. continues kind that we're considered way. and continue and cash important operate it the Look, we're We've that of always recapitalizing of family to to debt as getting part. yes, the And as Southern

Tom Fanning

what think kinds fuel minimal counterparties, profile no its all bilateral, And its we or profile have and here, things. creditworthy we risk is those earnings risk, with to consistent of transmission long-term contracts,

Srinjoy Banerjee

Perfect. And then...

Tom Fanning

Go ahead.

Srinjoy Banerjee

think so on And whether I market $X.X billion, just still more some just last long-dated Georgia far. at just would issuance Any conditions there? of given or on you it. Got the Power credit one thoughts at front-end slated one, maturities needs, look that's

Dan Tucker

until what run with we best that to wait doing. figure the market we'll do up -- Yes, to the out looking there, end and I see let's we're we to across we curve, don't that come mean, we just anything front fits what markets Srinjoy. in want trying always to might

Tom Fanning

I'll complement Dan's just And team.

I You United kind is in life, coupon. our of it average us. background States. the valuable real asset think XX-year at the is portfolio, we one debt material, X.X but more portfolios This look a in average the of to It have

Srinjoy Banerjee

Thank very you much.

Tom Fanning

sir. you, Thank

Operator

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

Tom Fanning

base off thank in also my start Well, you for in to X. closing will only but with X good us. all We're our Vogtle Units be, and an remark year, this awfully plant certainly financials, joining business, our

to this bring work hard everyone, hard execute, continue the joining We to thing work the this to and happy for year. very home. rest us. We'll so for of Thanks, year far continue

Operator

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

disconnect. You may now

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