The Southern Company (SO) 27 Oct 222022 Q3 Earnings call transcript

Company Profile

Participants

Scott Gammill	Vice President, Investor Relations & Treasurer
Tom Fanning	Chairman, President & Chief Executive Officer
Dan Tucker	Chief Financial Officer
Shar Pourreza	Guggenheim Partners
Ross Fowler	UBS
Jeremy Tonet	JPMorgan
David Arcaro	Morgan Stanley
Nick Campanella	Credit Suisse
Julien Dumoulin-Smith	Bank of America
Michael Lapides	Goldman Sachs
Durgesh Chopra	Evercore ISI
Angie Storozynski	Seaport Global
Paul Fremont	Mizuho
Travis Miller	Morningstar

Call transcript

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Operator

Good afternoon. My name is Scott, and I'll be your conference operator today. At this time, I would like to welcome everyone to The Southern Company's Third 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. Instructions] [Operator

like President, call Please, Investor sir. now Scott to go turn Vice Gammill, Relations to would over the Mr. ahead, I and Treasurer.

Scott Gammill

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

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

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

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

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

Tom Fanning

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

earnings our financial quarter including and third Our has territories economic remain activity our outpaced customer year results the strong, growth that to support economies within expectations. service our full objectives. continue And

the our range. of through financial quarter, near third expect our year Given adjusted share per earnings the full guidance earnings we performance top

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

for consistent both Importantly, the what remain forecast outlined timeline units cost completion last projected capital and we with quarter.

Unit have and license early spent safe for X major last core submitting all site finding receiving Unit completing been by successful from substantial week. on from letter, highlighted progress last fuel XXX including the the call, all make which the signifies the the several of acceptance the fuel Unit Since has to team complete XXX(g) pool reactor criteria assemblies NRC, the to met, continued our that ITAAC transfer of successfully achievement X X, milestones,

and towards milestone and with The electric pristine startup next conditions primarily the necessary pivotal the island months over and the of historic activities. another of plant marked couple power of focus preparations operations. start-up associated and load for nuclear the achieving Fuel testing final systems commercial side to production in the turns

Unit and begin The major milestone the test multiple criticality sequence, which the unit's nuclear safety plateaus and initial systems. testing for projected a milestone Once important achieved, first reductions, X in or power sustained prescribed is plant next to series reaction, output various the January. can operators is which power trips is this ascensions of includes forced self-sustaining

to This variety the be its the rigorous is included to in placed benefit and of service customers. of reliable for the process intended be demonstrate and performance unit of dispatch a in to readiness under conditions

end service the of continue placed X first to be of will Unit in by XXXX. We the quarter project

to X. of Turning XX% Open electrical approximately completed complete. August area Electrical testing key construction vessel now terminations in in remains Unit a was is and production, particular, focus. direct

the critical is which electrical projected first of sustained become hot date, more projected XXXX. by weeks. start towards the path support expected is as future project be of milestones To the Testing functional the production hydro several progresses for of testing recent the levels XXXX end testing, team our December cold in-service and to must quarter

Dan, call to I'll turn the now you. over

Dan Tucker

everyone. good Tom and afternoon Thanks,

of pricing and year-over-year our $X.XX with higher the for retail The third primary than we increased per mentioned, quarter XXXX. share, quarter are higher $X.XX of the a with utilities. had at Tom usage regulated As revenues strong earnings adjusted increase associated drivers

reported resiliency, A commitments environment results along dilution mandatory release our and of XXXX reliability These units. the package. of and as from and to and our interest revenue offset higher higher were today's the with in effects our expenses partially and is earnings compared equity O&M with by share conversion cost adjusted included consistent long-term nonfuel to detailed rising reconciliation

sales economy. retail third continued of now all classes, reflects in stronger customer in XXXX service see XXXX. quarter the than Southeast to electricity third In This to sales across were weather-normal the increase the across quarter Turning our electric X.X% as territories. three retail higher we've expansion sales

see We also X,XXX continue during of growth XX,XXX addition gas to quarter. customers robust with customer electric customers residential and the residential the

trends on supply We impacts force chain these monitor are by continue potential pressures of participation and constraints, our to encouraged labor the outlook. and inflation

development service XXXX period in development of investment. territories, a territories our and same economic XXX% compared electric in increase pipeline service remains the XXXX, in robust. reflect additions Within increase in a to first through The months XXX% economic announcements nine our the job business

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

per Our quarter $X.XX the fourth share. adjusted for estimate is earnings

turn I'll you. back the call to Tom, over

Tom Fanning

out Power Alabama and across legacy attract the job Thanks encouraged economic sustained and based XX of States on recognition approximately in these top named of efforts, to investment continue utilities within with Power Selection by In as new development economic our Dan. Georgia Site business. a again remain We United partnering X,XXX once we were each activity activity. Magazine's creation of capital long territories our of level service the development of states utilities to

are honored and helping our to communities within businesses look to to our recognition grow service this commitment strengthen our the for continuing We by further states economies territories forward to and come. attract and years

without significant XX project moment this successfully completed the to hour when site to like mean, would month, achieved but its job at safety job lost millionth lost a time -- XX milestone I a I Vogtle the closing, hour a time incident, a incident. without highlight In lost take millionth

with and individuals of the thousands IBEW, represent Trades like safety-first X recognize key Company, that from Building Southern of for our Units a all American at Plant creating they tenet to I'd project a support tremendous McGarvey North ongoing on the and values and milestone culture. Lonnie is the from At their testament uncompromising of focus this represents safety along the Sean Stephenson to X. Vogtle team's a

These groups resource partners is to to recent committed of been and tribute the bringing women Georgia milestones with Units XX years. a of X reliable, provide of the men have to and Vogtle next us, business X thousands online to XX for major several carbon-free dedication terrific safely and the a for achievement

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

Operator

[Operator is you. Instructions] with Guggenheim from Shar ahead, go question We a Partners. open. line Thank Pourreza your have Please

Shar Pourreza

Hey, guys.

Tom Fanning

Shar. Hey,

Shar Pourreza

fastest the just you think for the reward I Tom, got prepared quickest remarks.

good. was that So

Tom Fanning

him by made the got President, credit. all give Just Vice

Shar Pourreza

There go. you

that Georgia in discussions are staff intervenors? fully well with guess, will is mean, we're market think equity on when the Vogtle do GRC, kind I seems X.XX% litigated counter there. a Just reduction recommending of what thoughts I risks go the likely are how route? the guess, are in as service layer with ask, as I and out and the conditions or this quickly both to around ROE going bid your a settlement what you to case the so capital seeing narrowing that somewhat

Tom Fanning

of this XXXX, order, a which that know since do is kind it's thing. been it's you technically not litigated means accounting what kind of an is Well,

have is, and true, outcome. in every it tried been their that a You and has constructive that XXXX since proven, this have let really place process say party to a think, has process I know and been that

think Us time any testimony we've this of And constructive. on point commenting and particular I that anybody's isn't proven time at part really again.

of constructive Let it. at in run treated I'm a and the the way process sure end be we'll

Shar Pourreza

just your and resolving the then so the And Thanks. on what do for ultimately now terms that Perfect. concerns? sort cost of I it. or of contribution any on? outstanding of things projects stand cap means with And Got Vogtle, in ownership co-owners where guess, other

Tom Fanning

agreement, My this end we of year. turn Oglethorpe Dan, not is, a the Dalton these over some until to more and to effectively, the rest next about But anything in details. reached among just have settlement with MEAG. likely know you're else I'll MEAG, of Dan sense and going and here between an

Dan Tucker

Yes, that's right.

for with that's slight settlement the Georgia so really you materials a settlement. of And ownership. reflective the Power's in And see that cost might revision MEAG,

previously And estimate of a previous from tender the less of kind assumptions not than of the part many a notion ownership or settlement of of impact our co-owners. was of estimate. of reached any this the of our as that Our we you assumed, since is resolution, the know, put the

Shar Pourreza

winning Got it. Georgia know about Thanks lastly, I the just just Power super of that. competitive And for being previously have developers then RFPs. solar terms you in talked really against third-party not guys

compete think of in guide? is with Georgia the And with we're et you Georgia that cetera, we able the running? of going changes Power be about what sort potentially do portion came of the and to IRA, solar PTCs, tax solar win a that the then be that Sort transferability, RFPs how assume looking now Thanks. current versus with at could to credit

Tom Fanning

Credit to of we your interesting. some of through right. treatment normalized versus the exactly sort treatment Power. Any flow had were on Georgia related question, It's to is differences part tax

the in positions actually out one during came Southern think had early of other in and positions. of then rounds I we take years, those developers them and Power took

really much utilities that folks. equal way. accounting. to another And those use My closer IRA the otherwise does an put is could all we on going be So, us helpful is sense it compete regulated to normalized footing to

across account, our particularly to with expansion The territory on is service is other well that thing sites renewables that that plan reasonably thinking basis. have known we distributed into portfolio Southern have a about our always for take

consider its that, certain of to Of the over conclusion time. portfolio. course, you plants But those each closure when have considerations into company reaches within wrapping that of kinds be coal especially met, own

IRA I want we'll to But you see think Dan, goes. add? how it really is do the helpful. overall, So,

Dan Tucker

this about So is Shar it's in to dynamic. a the important of right? longer-term this Yes. horizon, terms think planning

to been Those So, decisions been on the much already Those you're executed resources. have plan. for front of already have going see RFPs five-year not end the very made.

couple talking base potentially really years where of half back this last as our about itself manifest the or may forecast of five-year you're the rate opportunity assets. So, even

at kind that thing profile tax there's this resources, in it's to affordability difference -- the things is between lease into that's notion of factor these dynamic location, the other a what play. is where a dynamics much kind best will and costs, The so, the low-cost and of change. of of equation, begin entering benefits versus Other certainly, cost some new other the of them these how considerations locational controllability of to

Tom Fanning

to of the the every customers. of reduce them to We customers. for just through position We serves make off benefit future, our current cost our don't the all money IRA flow And transition us, typically benefit bit of of a the Net Zero to tax benefits. for

Shar Pourreza

a and in Terrific, of it. weeks. see Got Appreciate couple guys. so it. you Thanks much

Tom Fanning

Look bet. You forward it. to

Operator

open. Fowler Our is Ross with ahead, go question your is from Please next UBS. line

Tom Fanning

you? are How Rob. Hey,

Ross Fowler

just election So you? are couple a not How to One, on that have going a of weeks we're two is election away, Good. but day. Commission questions. day Georgia

So whether would is how can and and redistricting you actually around a how of statewide process from or just it's what remind us that that district here works, election proceed? the sort

Tom Fanning

most work undertake, out year. it ahead figured the likely yet. Not to through legislature next for This is

Our lot of how thoughtful a sense to not going a something going into to going anytime debate this There's be that's consideration is, conclusion about be put this a lot to of to quickly. play. reach is and

take Except result So get I right now, going we're don't time think to don't a estimate I to it's frame. time. really sense anytime can't really on is, soon. my on it guess have and going any an some

Dan Tucker

iterative becomes it process of court. some because And maybe, a between an the the bit legislature time, of and that

Ross Fowler

commission that understanding? All Is process sit that then right. was a And current so would Dan. complete. a the -- correct Thanks, until

Tom Fanning

right. That's

Ross Fowler

and Okay. -- big remind we're as just on And a step. congratulations maybe fuel then that's load, the us

putting they're there X, -- it done and As in off penalties XXXX, to Unit more I'm correct? are then the time December sort Unit into of, Unit we does on penalties X no how get over XXXX, if if ROE service, about X roll thinking is all

Dan Tucker

Ross. Sure,

all as goes rates cost our billion. into again, of Vogtle So, reminder, outlook a $X.X for that of assumes total a

ROE, to or goes way rates down break in rate that full month base the allowed into of so Unit go there's base, and will into into thus, service. $X.X And terms that billion power after earnings will the rolling X

the rates And remainder, X into after into goes then service. next following go Unit the prudence proceeding would year, month

$X.X on ROE you'd based full Power's on full so XXXX. the Georgia current for And allowed the be at year billion schedule,

Ross Fowler

right? pretty much of penalties debt, cost into it's with right, the worked, the now Dan, of put timing And you how

Dan Tucker

The passage of time and cost there. increase debt, of the essentially in we're

Ross Fowler

prudency the process Unit then, And on that fuel mentioned, you Okay. X? starts loaded

Dan Tucker

load. Fuel Correct.

Tom Fanning

Summer of XXXX.

Ross Fowler

XXXX Of Thanks, schedule. All Thanks, in current right. Tom. Dan. the

Tom Fanning

Always good having you.

Operator

ahead, go from is open. is Please JPMorgan. question Tonet with next your Our Jeremy line

Tom Fanning

how Jeremy, Hey you? are

Jeremy Tonet

me. having for Thanks afternoon. Good Good.

bit to a Southern it us with that bill before, that wondering, to share touched are you this that at but point on any the relates aspects IRA, You could impact just there determined. as other you've it

other Would the for Southern. very tax? bill wondering of more customer minimum types benefits that if and the cuts Clearly, Just broadly on share here Southern impact could for you tax is important or beyond thoughts renewables. its impact on

Tom Fanning

The particularly do a and at XX%, to We not change ended good to relate to minimum us, think from research are reduction be of impact but it to up where that those all. tax put hit things and too. This policy a all response, thing doesn't us they already hit much say sounds in made. difference, XX% from and longer decade help helping know term, making hardly goal. really our latest XXQ XX% hydrogen, the we XXX% innovation get we've is like that Getting with in a will development look, and research place with development and how that, in these XX% XXXX. early XXXX. helpful. Getting We we from things That it

expenditures particular, is we're of and in In of we're place. sequestration. some capture nuclear and those will in make this with the on. put cycle respect carbon something interested between trade you of XXs before that are things in cost XXs renewables combined focused the certainly, And into and adding more Obviously, they're happen the

in All are addressed provisions build they're those helpful. of as the

Dan Tucker

that certainly say interesting, particularly for to and that opt we're of used of historically, these within impacts IRS something we're tax out Power, for is Yes. the waiting have exploring we trying equity. guidance and And is the Jeremy, certainly especially understand normalization things better That's storage. rates Southern might the evaluating I'd other where how kind tax transferability credits customer

on that lot PTC. any see turns This interpretation, having for better -- in wait us. nuclear guidance discussion meaningful impact see regard. we'll dynamic about now, on sit based that But our a of creates we as out. I a we don't right been new, There's the perhaps that here, again, But and that how for

Tom Fanning

technology is And market about time. in Yes. are the like we for idea really is this therefore, of what effectively neutral. structure the to credits work best the the that what general, And our in bill place show over let customers

Dan Tucker

think years business. the and these that of provides for lot there and about next flexibility are our And the the a XX planning certainty way we

Jeremy Tonet

during just Got milestone as to key chloride relates pass want their up that a all quarter, pick it. about the there nuclear That's Company helpful. part I molten to with talked with very reactor. Power and you the there and Southern Terra was saw it

as could generation as utility having benefits type just and that of of part And of into there, wondering up as guess, ramp of could us your the technology What when I far up? provide could fact? proven I you ability down for that thoughts play to provide you think scale if and there quickly come was timeframe type the the

Tom Fanning

nuclear of small people We start last effect. Gen are that certainly. you're SMRs. into and will to would America of about lot modular of discussing beyond. X hear me referencing that kind a could that with mean, Yes. new putting reactors The decade half likely reactors I this Yes. the happen future mid-XXs larger argue I

Jeremy Tonet

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

Tom Fanning

you. Thank

Operator

ahead. go Morgan question Arcaro Please a have from with We Stanley. David

Your is line open.

David Arcaro

give I frame Hey, color little shift. the X. just thanks updates if more around time you time. on The so didn't much a was could for wondering Unit the bit

the two the made to also recent increasing and been bit just like line look X? Unit It red on has last Just ahead you has And the eyeballing additional you've over how even looks wondering productivity that around line. as there targets months. a clarity the progress been little X maybe with for color relative on based green to Unit

Tom Fanning

out factor. called Dan, as tag should that one start. you I We're always with terminations. one on team well. risk gratified progress We've Well, electrical I'll the a and as this

we that site, on we're November, so on performance the issue. on recent And through, then say, long as our track sustain

made. need So the continue very just We're it closely. that we've to we're with progress We gratified watching progress.

important. you've that to we to as tests believe Unit equipment some the and performance X, expect that test seen due don't we a we on our Unit system we've think repeat learned learned on or issues Obviously, had on We particularly Unit we've of delays lot, from issues, issues the in X. saw And a some we Unit are X X. these lot where with

as that Dan? reflects schedule our So well.

Dan Tucker

think now, near it learned Unit the being on been that tied right a people on big I lessons the predicated Unit and regard on getting certainly where hit right path for Look, you smooth focused the Unit And And in issues. testing that X work. critical will those in X term. the focus The is X is become up here process. completing they've

Tom Fanning

that discussions Dan and environment. in occur referencing a these all And completely and transparent are open I

our have co-owners us. We with

We from cetera. this staff, made, laying hear the And just all we we've time see with gets I the way mean, to public gratified to I frames have same the remaining out. with et the comfortable information and we're DOE, everybody our representives NRC, commission we're progress way. through think

David Arcaro

next separate headwinds headwinds for topic. you're interest Thanks could then EPS Great. managing if to manage how or there? just debt hedge other to against touch ways Okay. right looking you're proactively I rate on year, with wondering now you that any was issuances And coming that ways that. a potential

Tom Fanning

Drew new low Maybe finance guy, the environment. in I'm liability right and was Evans really say I doesn't And I this will stuff. not interest this, old we that's when the can I rate like like management. and learn Well, remember But tricks. an dog were old here. back I CFO line

capital. intentional of debt, I all short-term putable year, debt We debt, that reducing, sort our within call, risk about what one thing. of very level That's were

So a I on X.X% your done do shortened it. average it's the but total of assets. job the valuable portfolio enterprise plot, risk cheap and in a our have I It's managing long is Company lengthened we asset. And our debt whatever. think would when corporation really capital. a nice package, guys look a really kind of we rate, XX years These if of at We or you duration this value argue Dan? has really coupon Southern

Dan Tucker

Yes.

regard. term. variability year the the issuances, the from continue our of things. to our got of this I as and able business We've Tom's our that in things move table, portfolio like take certainly to interest that. about some So And we'll And of through assumptions an conservative We've mean, we've on we're in assumptions the do fairly out but forward. taking over upsizing been I'm we we place within were short-term in on long were pretty with levers XXXX, far those focus accelerating that. the that, risk We'll here a results, some are already continue do everyone, or the impact to done the in short-term. starting our point, great off off, then to those rates look, and having to offset managing sure we're to anyone, Like

Tom Fanning

issue another we deal with. that just It's

David Arcaro

Thanks much. No, that’s Great. Yeah. helpful. so

Dan Tucker

You bet.

Tom Fanning

you. Thank

Operator

Please from go Credit have Nick Campanella We question Suisse. a ahead. with

Your open. line is

Dan Tucker

you Hey, doing are great? Nick. Hope

Nick Campanella

about rate kind to you're you XXXX. the Thank and for of good X.XX% XXXX. I'm taking rate through on year you've XXXX? into had but us hope how follow-up interest kind and it, am. the give I Thanks there thinking this out comments of just else to the I just kind could Not of marker drivers ahead know any guess growth commentary get you about of just as thinking I next question. the really well. of everyone and doing on for

bridging some you you previous on of the but about X.XX, gap costs. potential kind to higher maybe the think ROE financing have I talked calls, that penalty,

have sales Georgia Your strong, commentary new you Power. seems at pretty also and rates

be So considerations thinking just of? any other to

Tom Fanning

at is XXXX your said but all question, And ever about Yes. to we've $X pick $X.XX. to not

midpoint. the just think I you picking were

has always that Dan? ago. $X in We to years put Our range XX. $X. some been place

Dan Tucker

on to course provide going Yes. We change we're And always our here. fourth annual call. guidance not quarter Nick, our

do there $X number February do the here time. put again February in So is in XXXX what will first that we on our narrow also we'll are to likely that and at for to we $X.XX the we And based time. see out what

existed in rate One was we'd years place, three of that of and three case, everything transpired in Georgia those ago put the years. important we Power when have factors that else uncertainties another knowing course, and that then, has

we'll past once be So narrow down. we that positioned to get that,

Nick Campanella

yes, some current notable guess kind midpoint, for And picking helpful. the higher. understood to I growth, load seen commentary and footprint sales just your longer-term sales That's your your $X.XX. economy on of we've peers the but was on was just I the the and just starting revise of

are that you more of quarter for update longer-term how call? the we Just kind of fourth in a prepare as about thinking

Tom Fanning

saw that my this CNBC Yes. I surprised and don't saying morning know refrain, you it is we're on actually whether But Box. consistent a a we on Squad bit.

it's so growth thought. we And comprehensive. than pretty been what much has far higher Our

A all I summary, we our looking to levels and kind back of though, are pre-COVID through was commercial sales. material, on is industrial essentially of notable.

is over residential sales Our a improved. X% number little

a we're America's finding. this probably things, hybrid environment reflection work kind that's including of think workforce new reaction a number but to of of I

a in the data, other economic numbers. those We background don't development continues I much of Dan a the The see mentioned which Fed. reduction is with be have thing a to strong. slowing

that And kind But our things economist does industrial head always at nerdy details. is of particular I so one get the Shiver into look the of economic here, segment.

top sales So industrial about which the for XX segment. our industrial our represent, we I of segments, XX% think, take

statistic. pretty are We first a that lot though still look to the know that and just looking good trouble around country really momentum results, the show And show a would positive the we of going to my and we the even the third that and we of sometime need about that forward. growth, first, of to good. all go the going second, derivative, XXXX. show is of economists That and quarters Fed of only as growth, potentially moderating. amount at pundits still would we And kind talking do peers look I growth mild not about kind period-over-period really the which a recession everything call I think of

the We that see no Southeast data that be for would indicates here.

data, national it data So kind know broad and of – that, have, be, is just downturn. is speaking, less brush by generally statistic. Southeast much recession prone much when such resilient we to you The to region a hear the more appears

Nick Campanella

commentary, appreciate Helpful really it.

you see will soon. We

Tom Fanning

bet. You

Operator

We have a question from Julien ahead. America. Dumoulin-Smith Please with of go Bank

is Your line open.

Tom Fanning

Julien, great to….

Julien Dumoulin-Smith

here. around we about Hey, chat thanks thought Tom, And process? see the street stand specifically. Hey, Buzzer quarter appreciate thinking for units ask to perhaps I you about it. to the planning? here, Tom, where time. taking off talk staying the specifically, saw Good mean, just process? here how we that you a I the some your retirement question eventual long listen, to succession headlines [ph]. just your you Can are about in the late I little wanted you in prep in-service And bit of vis-à-vis a

Tom Fanning

like There's a of that. about for sakes. mathusalem am Look, XX.X. feeling heaven's written been Yeah. for I'm lot I

So that's a fact.

fit me certainly the is no assessment the made units. Southern sure. for an Company's about saw is or interest it fact The timetable I Somebody leaving. that Board article has for Vogtle other. that. progressing one read in have no an way There of to That's

reporter, for succession CEO's get I are actively asked to And for into, misconstrued there a they day looking know. comments or that I plan I'm to a looking think, first job, You successor. a in got look, you one me, of That said, also it's I place. turned my got successor. have don't every should He know

I look to of truth Company And a brothers Southern our States, sisters this, think, has United around you at know terrific you the the grow and talent. it. all when Here's been place

have experiential growing it subsidiaries our at the that. experience several within people of do intention silo And company. functions we beyond where opportunities is a within their can give to We just

into order maybe maybe constituents as don't they've to in certain they we not them new a successful build where know is put much, succeed. place got area, as a to comfortable Somebody in they're and

a have process. very We rigorous

process latest effective years X, now, growing I Power. Southern and example, going The We Robin become a of who rigorous talent November have Boren, them at is Southern XX, had to XX has Treasurer around. guess, been for CEO Company of moving

capability inside is around how another people positions us that grow the into the they show example to just company. senior This of have senior, that move we

that. news good So is very happy all we'll over I'm that beyond. the continue this very, the with talent Southern. exceptional council there's And Company The and great talent There's bench, inside management Southern industry. with

Julien Dumoulin-Smith

of the bit. on Excellent. out question for you providing air follow -- just clearing as that If on say, Nick's Thank you up articles last some the little there. can I a

and You record, and finding offsets especially all of through with just have a track COVID reductions dealing difficult context.

and and generally Vogtle in you are how that comprehensive to well? costs your talk narrowing front thinking here. extent on you XXXX of talked that and To about elsewhere, the whether just that or elevated manifests at a on update providing inflation that as in the well? management offsets inflation as more front about expense which form manage know that interest little bit with today, liability we're dealing you specifically about itself a efforts I labor can But

Dan Tucker

about As us. anything, been Julien, above with just all -- So it's always has of approach, it and the right? for

importantly, the and do issues, around these have term managed in that. and of continue to all we short both long term, we'll the So more kind of in

more will a efficient. becoming changing operate, the to that degree So way we be

always we clean, affordable right of we'll and as headwinds as also, that the way, our to focused with business importantly, that, strike will otherwise there. deploy to grow looking while be then O&M. along capital navigate on It might this safe, thus what energy we're importantly, we reliable And balance reduces elsewhere. the It focused on ways the more ways for all be for looking offset will be and regulators to are, be help

Julien Dumoulin-Smith

Got right. it. in It day, take XXXX Fair on end enough. it. embedded All update the the at will of I guys be whatever you

Dan Tucker

sir. Yes,

Julien Dumoulin-Smith

you I Good will speak Excellent. to and then. luck

Tom Fanning

friend. Thank you my

Operator

Please Sachs. ahead. have question go We a Lapides Goldman with from Michael

Your line is open.

Michael Lapides

taking Hi. you Tom, Thank questions. and for Hi, you, Dan thank guys. my

sizable peers balances one, number a fuel of have to years couple pretty First just may gas your in that power built up the prices. spike take given and a recover, deferred of

you're different the whether larger you're your curious with fuel seeing conversations in Just the thinking stakeholders, time recover across to same those thing subsidiaries. balances? your about how line And

Dan Tucker

Yeah, is Michael, this Dan.

to certainly proactive natural gas as appreciate with making this with well. they understand that we an regulators. discussions and has very our and occurred, So macro We've been and having prices that transparent sure costs dynamic are extent, about particularly coal

Michael, you so like in about total, majority billion. as like vast sizable under mentioned, end the of Georgia yeah, $X.X accumulated quarter many a of $X.X is third Power, is it's about peers, which we, pretty And The balance that of billion. the recovered have at

with of different. is jurisdictions, little process each a our So the

Some their are regular cadence. more little in a

are little more discretionary. Some a

largest next year. the I in that balance impactful Georgia is be think in possible. sure And as make regulators the the to early very we'll again, plan that's for that work for way closely will least that with addressed done customers a

Tom Fanning

as dogma. I Michael, just add a comment on could And

As pass-through fuel regulated from the us provide markets so-called apart integrated a costs. the organized markets, to mechanism

as it's to profit us. low incentive always no incentive as us for is keep there words, other possible. So prices In for

in for costs XX%, helpful year, those public done We've we future. prices of have are those programs, on put predict those our that. And pressure service prices about Nobody which next been keep to gas gas conjunction XX% we've with the the year, spot the now. natural the issue. have low. of place been right awfully commissions have certainly, $X.XX. place reduce programs below at helped at But the that $X XX% that had can prices, us in This have Certainly, so fuel and hedged

Dan Tucker

And one thing. last

just with the financial dialogue regulators, they're to been we've to having able that But to to through. Alabama agencies, to with conversations sure keenly addition carry So subsidiaries, continuous Mississippi debt see that similar strength of in Power, proactive this all Power, incremental the be particular, aware Power, rating that. in George likely little our of making weather us a having have

Tom Fanning

equivalent BTU. energy about price X out be in just awfully and go I do attractive XX/X, run million $X comment it. that effectively basis, be on a last asset to plant will once going One But coming It's X to per to going the wanted an is going-forward of XXX. that service, Vogtle

Michael Lapides

XXXX down a you done a for then Vogele should it. XXXX, it's additions capital about timeframe? plan, you're there's CapEx plan. necessarily comment incremental but and not And step in new of spending there's back the in still materially for little the year, because allocation, Got generation then How question, in And in except are the in unrelated. mean, end if thinking the -- coming you potential maintenance. the on Dan, XXXX, Vogtle, bit follow-up next XXXX, I made capital of

Dan Tucker

is it's to Yeah. Look, X%. this unchanged from our not support mean, to growth we early were plan year. capital designed of our I where rate X%

planning new that as things emerge. as to call fourth history we opportunities bet you think get in highlighted the technologies the numbers forecast get further we roll increase The on emerge the think I clarity continue out quarter process as continue with of the things, regulators, we happen. how our and as to forward. regulations new forecast in will And I emerge, as we

the got ramp we've you'll that because been a allocation we passed, here I Power, IRA that in think to of that Southern then, set existed days, uncertainty an before for And see up. aside recent continue little quiet that's

adjust Southern us projects the any we or finance our it. that out happy either the we'll on And regulated financing got doesn't finance that more extent require Power, issue in equity able to returns regulated growth. to are plans plan, opportunities to a to We've require to I'm our the turn that more equity returns, of but earn our find Michael, to we plan today,

Michael Lapides

I if were. guys CapEx you Dan, a But done and you are estimate. please direct this. than have misstate develop outer years done, more your team, underestimated. great me, correct investment think Yeah. to The we being have community I I'm how a always illustrating And And job you the

years. a I $XX When much as current And more estimate adjust years. five as for that if And may what you had to the billion estimate outer maybe money time, five-year through something billion. estimating we we more than go up number happen, we aren't $XX it reasonable like over kind end plan, in if the spending in of we

Dan Tucker

to And importantly, X% $XX that's the is what X% growth think don't our I supports Yeah, starting billion, the rate. unfair. point

either that short as opportunities growth the the of rate identified, so more over simply increases And to the it or invest in durability long-term. term are

Tom Fanning

you know, appropriate And happen the would, get we may that a which recovery, higher put some companies to but sensitivities there. assuming know estimates plug we CapEx, way on of indicate are. with you we we think all in should phone We should the that's bunch of We don't. what do

conservative We plan. a have

Michael Lapides

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

Tom Fanning

you. Thank

Operator

go We ISI. with have a ahead. Please Chopra from Durgesh question Evercore

open. is line Your

Tom Fanning

with Great Durgesh. have us. Hey to you

Durgesh Chopra

for Hey Tom. giving time. Thanks the me

housekeeping Just one then have one a I -- and question follow-up. just

I terms think projecting earnings of missed the but as the of EPS long-term this still target, me part Q&A, is where growth sort In is that if the this, that you last X% growth? and I to you of X% and are discussed -- long-term -- forgive

Tom Fanning

you come establish us. a that's we once February, with but back guess yeah, that Yeah, plan. it's year. we'll I a to five-year And in new

Durgesh Chopra

in And just Got fuel on increases, that? Okay. discussion some next comment increases, looking me, it, the offset few we terms here of you in it. -- are should excuse bill the what we just near-term, price the some potentially Thanks. over then was there you maybe at of what given can of how And bill are months increases? customer could what expect

Tom Fanning

policy. we Durgesh, Hey Yeah. a have

not process. front-running for us followed going some start regulatory a We're time never to now. You

that's we'll for question, to able I then be we a alone specifically. results, let now. to When to be speak So going this see

Durgesh Chopra

Understood. you, again. Thank

Tom Fanning

you. You bet. Thank

Operator

Please Angie go ahead. with We Storozynski have Seaport a from Global. question

open. is line Your

Tom Fanning

you? Angie, how are

Angie Storozynski

Thanks Great. taking for question. my Thank you.

of a questions the X. just couple about Vogtle So

date and the an to showing like they're think in-service here So showing I'm the as are it, quarter agreement almost companies how -- is I the there seems like referring between feel I co-owners to It first Oglethorpe. COD that to start the and make the wondering X commercial this to just on of if or a is actually a is I'm basically call whisper Vogtle it's up for them what is as date XX operations?

Tom Fanning

question. performance are reasonable achieving our Angie, Look, it's year-end of a a in that indicates in-service to the date 'XX date. we wonderful expectation

to depart Ogtlethorpe have from they why You'll that. may ask

Angie Storozynski

ITAAC the And very Okay. lumpy tracking that secondly, they for Unit X. I And with unit. were that remember just then

I to them many again, it like seems of it's you mean, very load. So start need fuel

be as there pattern about, any we worried or lumpy X? those should ITAAC as again, is they're they just So in that again, were Unit with

Dan Tucker

Angie. Yes, of tests. above also or if X, things there's you a a milestone little not tied particular that will to that on a lot are there's XXX remaining normal cadence, there's And yes, and about Unit

on So Unit either example. hot that would a as There as I the focusing linear any and progression kind sort of and after testing out laying will that be not X functional or will really an But that's remaining result lumpy. a of be started lot them for come we there, that of schedule. where expect it

Tom Fanning

problem. speak up absolutely Well, is that we that. we January, paper. and the earlier repeat And in on. memory place controls, to into We reason this We had, we finish the are recall was year, put your not lumpy It it's in year submit the which is should of it lumpy I able we fact, end finishing problem will to a when spot all guess of systems, around then ITAAC. processes, is the the right think

of with ramp hot ITAAC. of test finish functional you'll milestone, system up, a big see completions associated a we as ultimately, So look the lumpy so submittal big in ramp-up

Angie Storozynski

the have – for going and for the appreciate visibility the I limited are way you just the to And follow-up, be elections commission. GRC Great. one as that run to

prudence I theoretically? elections just when how may the but been happen, I know that of happen elections that the think and have Again, review it replaced? then, when depends about many will commissioners between Now now the and actually the

Tom Fanning

on new have comes your answer come hard It what or they it's even -- no really process. legislature the when couldn't I hazard when up this question. that with up therefore, that. will be I a when outcome will be the idea depends guess I'm and at to sorry.

Dan Tucker

and the this scheduled for only Angie, based on there year. next X current none there appropriations year, were But were terms,

just reelection XXXX. resolved will And it the commissioner if gets this there's in be election, quickly, of so another Again,

Angie Storozynski

good. Very

Okay. I need. That’s all Thank you.

Tom Fanning

yeah. Election,

Operator

question from is Our Mizuho. ahead. Fremont with next Please Paul go

open. Your is line

Tom Fanning

Paul. Hello,

Paul Fremont

quarter. good going? is on Congratulations it How Hey.

Tom Fanning

Thank you. Appreciate it.

Paul Fremont

on you many remaining the indicated you had I there? hours XXXG construction fuel us or Can up of think until after that how you that's doing construction got Is completed the of construction load. construction work left you all on update that letter were Unit X? are

Tom Fanning

finest It's tuning, almost wouldn't to in at I And this amount. if can refer as you it go critical. Tiny construction order point. finishing imagine, the really to

the loaded fuel. we've example, For

that the enormous to that will and We put the reactor top top ratchet structures down bolt have on tighten vessel the down.

they coating. call finish have to what We

that a So weren't so load that like finally is to be that top this would the that it that be We all just vessel to pristine, cleanliness stuff us cleaning finish and the putting -- for actually reactor preserves walls like in be on It be us painted, safety-related reactor had plant. It's required necessary areas to need of fuel, in procedures condition. order basis. vessel the the for that. to on run will minute want to

Paul Fremont

months? is I it this mean, -- And weeks, days, is

Tom Fanning

guiding next Well, the to milestone is you I Paul what is, we're say, would

Paul Fremont

Criticality?

Tom Fanning

It's criticality and January. that's

Paul Fremont

the between finish would or between then whatever is construction there then now now and you January? and work So additional

Tom Fanning

right. that sure, call That's construction, right. I not would yes. Yes, I'm but

Paul Fremont

testing the work you that, can to until criticality can need wanted And systems in discuss Do system address sure that is then, to plant? secondary way we you the that the to after make when working you go phase that you that earlier? steam wait or through

Tom Fanning

and that plant thing. in a here's and But prescribed down. it's taking nobody a really put the So but graph, taking then of is let looking graph up there. a the process it's shows it process There power out me interesting great prescribed a it

we'll week XXX%. and and the They go sorts take XX% it then and days, example, and I go and And whistles to all XX% get of to bells the XX% Then then take we'll For or do so, XX% to within, XX then along then down. think, power, first way. we'll it down. take trips it they down,

sure is it they're supposed what be the to as And what to. plant once everything to in that trying may could condition a service, do make is that works exist goes

you a filed bit we to here here more it. that the on in recently. background details that VCM And we that more want can of If report see filed that, you want you VCM if good give there's

Paul Fremont

is Great. or you you a last take I'll -- rate earlier the at apart? do think somebody question far do question, an expect asked parties case, settle general what are but you And me. too then, for the shot would to

Tom Fanning

-- through we past. years whether And not it's every Paul, at years, or, since no apart has it in far three No, bearing like. in I too have mean, XXXX. go process And us we we this. seems you've place hasn't or the settle least, forever, followed on this not had

before fairly we therapeutic, everybody's that holidays. an again. open We've would occur just a lot almost of fair my I every let time, the been you the and a to if treated again. is, value. There's It's sense come to we'll good agreement expect fairly reach have typically, views out in other be debate. And treated will,

Paul Fremont

for Great. That’s it me. Thanks.

Tom Fanning

Always joining appreciate us. you

Operator

Miller Travis Please, from And go we with Morningstar. have a question ahead.

is line Your open.

Travis Miller

distribution the of but continues does my question. stand? the where CapEx taking in versus certainly, potentially distribution for what extent that for even generation, to transmission, that, mean spending Hello. above growth, that of terms Thanks versus customer The mix does that forecast,

Tom Fanning

argue remember expenditures. because wrong. of, kind spent hardening In correctly, old me I again, or $X a the resilience year. would I'm on recent would what correct I call, Dan, that we years, up about maybe in if I of billion a days, little year amped If T&D every

Winter You Texas. Uri Yuri. it Hurricane, through was remember Hurricane gee, Storm that went

One way the give on temperature, a margin our to of extreme look kind temperature did system to in average things weather. more that proactive we and reduced margin planning us was at we of

for, things would kinds of more that the are are I on T&D spending argue. we money Those

North I Bowen. final disposition if there and And with T&D our expenditures some lot think that the ultimately be with at plant this Georgia, when intertwined a guys, location decisions. been is will well, we've you what's over at you generation look As but

I load know, more generation Whether to of to kind the get located let years. we the next, add the that don't that transmission be we'll center. and South locate Those or more in the five three necessary the are decisions north, cover generation in generation the in to

Travis Miller

talk back to on your to helpful. What extent the And know is quick That's that to the $X Board post get dividend allocation, are are you Vogtle Obviously, do, $X.XX. that can't but what that capital then, on jump. going a thoughts real on about to Okay. what general suggests I the thoughts that the significant you side?

Dan Tucker

Dan. Yes, is Travis, this

of earlier things. uplift Vogtle -- uplift So in we've about We're call. represents you from kind look in that deck, the really from this supporting an about completion the if There three thinking slide flow talked is of slide XX a perspective. our cash

an profile. dividend. it overall is in to profile, thing improvement One our continues three financial two is, then Then our is And credit our the fund in growth. particular,

increased never proposition. important overall have our the We an the for dividend. XX years. dividend back every year incredibly It's cut of decades We've value over part two now, going

given profile have growth durable pace to the As we XXXX, our growth growth better the in reevaluate in certainly given of and to in align the the and the perhaps the we improvement opportunity dividend get earnings. with think will Board growth a rate,

Travis Miller

Thanks I great. so much. That’s understand. Okay.

Scott Gammill

you. Thank

Operator

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

Tom Fanning

has and major all, the can company but call we to these reenter a wouldn't finish milestones achieve. me, a been has ago, to me look call. mantra this just performance where reminded, less say old to certainly getting six it, I towards I The it time, was one age don't we able this years know, I'm starts remember volatility dialogue was at now, that earnings future. of I in No, boring but regular, maybe somebody the as with boring five, sustainable Vogtle have is to on pleading given our predictable,

for for feel year. Thank forward forward confident, year and We finishing hoping and strong future. See it. all looking year next a the we appreciate and we you joining to look soon. the new to Here's us, you

Operator

The concludes this Earnings Call. Quarter Company's XXXX gentlemen, Third and Ladies sir. you, Southern Thank

may now disconnect. You

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