SO - Earnings call 3 2023 | The Southern Company

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Operator

Good afternoon. My name is Dina, and I will be your conference operator today. At this time, I would like to welcome everyone to The Southern Company Third Quarter 2023 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded November 2, 2023. to conference like Mr. over now would turn call the to I Gammill, and Relations President, Scott Investor Treasurer. Vice go Please ahead, sir.

Scott Gammill

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

and me Chief Company; Joining Dan Financial Chief Tucker, Chris are Womack, and Executive of The today Officer Southern Officer. President

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

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

Christopher Womack

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

gas react and July Power continued we since Unit Our deliver and premier quarter. operate the utilities adjusted to Vogtle declared targets our in Southern financial being perform on power state-regulated expect XXX% continued at well X XXXX. to Plant has XX, third during to and for service electric to

overview an several provide an announcements results, of update provides Dan I'd Before on call. since financial our like to our last

Southeast territories. across service First, continue our economic see we growth to

magazine. jobs Power's and named honor. those for and the the our consecutive Georgia Power about important of top efforts will play to the attracted role Site investment development excited Power year by each Alabama are representing new and utilities Georgia as We for this Selection economic are utility communities With our states recognition XXth recognition recent for proud a and and

and larger historic Econite new Last Friday, base years transportation, update accelerated levels. is past significantly manufacturing projected and growth, over plan. an been the filed computing success to IRP supplier state's its investments With should Development solutions than its provide for generations and couple [ the is increased this to centers of major to contributing electricity future Georgia data the usage is along benefit support Power to which energy supporting Georgia resource in our ] has to energy extraordinary Georgia's integrated Georgia to needs Power additional Electric contributors proposing update, have with that customers and economical into growing digital XXXX economy. come. power communities

upon and help XXXX and the of XXXX. continue Building seeks plan Commission update the flexibility XXXX Public reliability to Service has IRP, of end utilization the IRP requested evaluate behalf this ensure Power's the resilience, of on to Georgia by that Georgia approach diversified approved update Power customers, in the April a Georgia

late facility new these XXX-megawatt Wyoming expected credit and in Power's Southern Branch Southern with Texas. portfolio, of represent facility September, XXth newest the These include portfolio acquisition operation in in are capacity. Commercial counterparties facilities, Consistent projects additions megawatts contracts Power of solar support. a Solar XXth with X,XXX of and long-term and project Power's Cheyenne projects Southern XXXX In the XXXX, to carbon-free in South the announced strong the and the which XXX-megawatt the solar generating of Millers facilities is respectively. existing

growing to serve positioned was efficient applying experience believe proposed resource XXXX to units gas Unit combined our XXX-megawatt [ schedule with needs. are generating update, in IRP Additionally, most and renewable unit the natural X This new and successfully well expertise service Power's we in cycle the constructing our Alabama Georgia continue Power's natural in to Consistent plan region's Barry and we be gas on budget. the ] plants country. expected on in yesterday of placed is

when develop to Company development announced and of our on our Services we carbon-free electricity collaborate facilities executed Southern net exciting Southeast to memorandum service goal federal more important map federal to as week, Southern in documents zero The road between understanding contribution a will territory. agencies partnership intent of U.S. for reaching lead Company's the agreement a that solutions another by of We region. towards Last buying Administration the carbon-free XXXX. view across this electricity General

the And in last clean as innovation, progress the the annual we and privilege our Wednesday, finally, to we to communities through people issued our advance highlighting we sustainability have and invest lead made continue serve that energy, great summary elevate serve. that we

with to reliable customer solutions safe, to communities, groups, our policymakers strategic the for financial affordable a stakeholders develop economies. worked I'll update. states, now have our you growing call We turn energy serve and to clean, over deliver regulators, and Dan, other to

Daniel Tucker

and Thanks, everyone. afternoon, Chris, good

and For drivers our than earnings adjusted performance $X.XX our last higher the XXXX, per offset expenses, ] somewhat of share, third The in depreciation and primary of compared and were by . -- were [ and than estimate taxes and higher to rates pricing lower changes our $X.XX quarter income year. normal $X.XX amortization. year warmer $X.XX than weather last O&M higher conditions,

and September release XXXX, $X.XX to earnings of $X.XX detailed results package. share adjusted earnings and period For per reconciliation in XXXX. for A as earnings in is the months compared adjusted ended to the our today's compared of XXXX our included XX, X adjusted same were per reported share

below XX, with in first experienced September the earnings share factor year developed. of XXXX, Southeast the same in the mild major months how XXXX, conditions year extremely per ended the $X.XX we X months are X during a a the this period representing weather For ago, has adjusted

to of our to range continue year we $X.XX of share. per achieve earnings full middle to conditions project $X.XX our While results, weather near adjusted risk guidance to our the fourth quarter present

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

commercial added gas XX,XXX Year-to-date, have were XX,XXX residential usage pre-pandemic groups customers, to levels. now lower X.X% of and sales return have approximately to than sales electricity status. trends outpace customers offset a the by levels first customer electricity we weather-normal dynamic XXXX reached and pre-pandemic Year-to-date the these retail between relationship as months in office for Turning largely X the which sales electric economy. was approximately continue sales appears Strong to X to XXXX.

batteries, Lower industrial driven More paper automobiles. way to the territories paper by our housing-related Historically, and of as weakness of making the industrial to in significant panels, manufacturing service chemical, be sectors. period particularly a are it are sales broadly, manufacturing. electric for industries solar in and such pertains continued and airplanes chemicals transition as

during within Chris an see we to economic extraordinary of have service territories. mentioned As our activity earlier, continued development XXXX, level

in to to sales highlight the rate quarter mid- an Factoring to did single-digit these our of over our want closer needs growth updates While seeing businesses February, a annual we forecast X%. formal potential of of range electricity we highly our in provide power next will to call data-centric sales to have fourth we new, and electricity growth assumed manufacturing magnitude are the to electricity X% are outlook Recall, change annual likely sales previous growth. during earnings the facilities, high years. in X

we now existing benefits you. customers significant to to economic over While there development from be activity, new recognize turn both capital level this this Chris, serve is economic likely and to I'll investment growth. required call of expect the to back incremental

Christopher Womack

Dan. Thank you,

the at X I'd July, has a achieving Vogtle of reliable delivering in Since like and commercial Georgia. megawatt energy to to operations X X on million end nearly with inventory. discovered questions, Unit performed taking pump testing, preoperational citizens the successfully carbon-free progress Before fuel motor a your provide following fault our X. of during of the brief X.X a hours update X, first of from and Units of well, coolant load necessitating reactor spare our On the at we Unit pumps, and replacement X start-up full parts X

cleared in will which that the and coolant reactor coming the in expect successfully days. have to path We existing activity the removed begin be pump

parallel XXXX. pump, with a quarter containment with Many coatings, spare power preoperational the will replacement, the in ascension we recommence preparation successful the After in-service start-up pump including of preoperational and installation activities projected date insight path of first during for the a with continue turbine of testing. testing along

August and base Public to this X Georgia rates. on Unit include reasonable Georgia agreement Also, Power Related constructively to to is filed among and reasonableness, this X cost. rates intended Service other Vogtle costs, regarding is in already expected Georgia X as an process, advocacy the Commission December the public Service and matter several application of intervenors, with on and the Public X to adjust XX. not remaining Power resolve a recovery filed cost Georgia prudence the stipulated application, in and prudent and X Georgia to Commission Service X staff The which vote part late Vogtle all prudence issues Public Commission for interest Vogtle

take your for and now afternoon this Company. us joining we to in for all Operator, ready are you thank Again, interest Southern questions.

Operator

[Operator Instructions].

coming is Davenport the from with of Goldman question line Sachs. Carly first Our

Carly Davenport

or on of Maybe And of the your on could guess, still of time actual point Vogtle. just the time that reactor just about first, process talk this gives bit that little terms XQ And a to accelerate any kind pump in you're to expectations comments coolant in get up what that you'd that that decelerate any replacing at start to line? watching expect confidence when pick line. wrapped? maybe XXXX you factors I

Christopher Womack

China, as pumps for thanks we've at the designed. this Unit as X, at [indiscernible] the are this in I We pumps terms in so we've again, experience of seen X look your Carly, And mean, from seen questions. running replacement.

we the to pump. good have replacing we So think path a

replacing about we in place then and the so process the that for identified just we've removal pump. spare feel is And good that

we replacement at the process we about and this time. are feel where pump confident So with very the process

Carly Davenport

growth some to then your opportunities sort going alluded you'd of across load to of guess, debt managing between to context you the rate that how thinking capital interest CapEx balance Daniel maybe are about growth shifting in you're I this how just that facilitate forward. and And support equity financing expecting the and to required Great. territory, environment, that the see to the of expect

Daniel Tucker

of look, Carly, end plan potential question. X-year very magnitude, process, our dollars in capital on Yes, order this is increases. billion. But And provide substantial IRP pretty current we do guidance see for of I sit update billions a And where front February. we'll think here we're of we today specific it's talking great the just $XX potentially, as

it's continuing until to and a of billion, that much to out. once projects own of include all I be over translates of expect those that absolutely territories that think higher I those. $XX we're how we individual plan easily north conservative lay February of say a renewables We than to including service better going owned line to of wait about the our renewables. But electric any there's across horizon. on forecast sight all and question to we really get something And to kind $XX billion see

So question the your to getting we've is preserve about And I be credit differentiated that term and profile. differentiated, our very long of financing, our in clear objective objectives. to to think it's terms profile been over positioned our

mean will the that plans. a industry. shelf the the to have so million have We're the year We largest the flexibility. potential And to those. turning market million and generate $XXX for largest, And in equity then on maybe and if can program through not between we $XXX always fortunate X on drips of just the at just our keep

will in absolutely that's do to the the financed. we how do balance need of credit of we terms to So what preserve profile

equity fraction capital potential billions through of translates millions a to still it's and hundreds of think I equity. mentioned any drip. the incremental capital Again, of that I of

will be. be we to that think maintain I to sufficient want where

Carly Davenport

point, have of have parent debt Great. there any forward? Do any sneak going just on -- targets If that hold that follow-up Dan. I you'd are you the on X that could to level like you

Daniel Tucker

today, a just just south for to of so you securities. we where overall. of We're basis, trying particular factor Carly, sit in credit think unadjusted any or XX% an I not equity if on kind will, content little

I don't business grows, to the that think intend as percentage. really we grow

time, the debt quantum absolute about same, the increase of think. to the will our may debt I of the proportion debt over but So . remain rest of parent

Operator

Partners. question next the Shar Guggenheim from of line Our Pourreza coming is with

Shahriar Pourreza

guess, from it your Or scenario? be this runway highlighting to follow-up be X% you're is is guess, the to Dan, do opportunity question. extended scenario quick the think a about an it's growth? a obviously material, pretty we could how of prior the relation set accretive to or So this X%? where billions. Just opportunity I set that growth I in is accretive could to sort in

Daniel Tucker

been and with acknowledging Shar, the great it's economic the Look, we've to Commission out not potential to together to Georgia result that it But question. there. it's presents more right capital renewables, both that. of for and growth kind an development has opportunity very potentially filing seeing, rate what been Yes. -- term. activity the community the been whether our opportunity as it's we well about a out objective in advance that What the coming growth strengthen and But for this lingering Chris longer a have question. rate speaking is this investment is owned profile itself to I the of growth clear sustain months It's we've whether of been it's as of raise the

And to governor that fortunate preserves focused really some affordability, here. is have. in on we making And rate term constructive the sure a that again, this from temporarily environments, perspective We're a long profile regulatory factors: higher short term. on trying more growth we're is we're customer not the to important all the maintain two, of the number One, importantly, customer X have

benefit that the about fundamentals this That, affordability excited everything sales Chris seeing mitigate we're opportunity to and equation. provide I other and in and itself, are The the will of an level great growth. of so is that of

Christopher Womack

tell in mean, that you and we very the you terms got -- giving you, of we you are headwinds, Shar, on 'XX headwinds in where I But us lot looking and well, we next in there call add. know that you kind so are 'XX mean, have update development guidance iconic in I look mean, in the now of mean that what's of of give front, I that rates, tailwinds exciting the update us, you I'd guidance thing process. will our we front of February just in a I I kind 'XX. interest our February. the and cards at And opportunities. of year. in we forward are X I'd we'll We've mean, know to give but of

Shahriar Pourreza

just, a Just, on Chris, bit somewhat little thanks -- maturities, the I on few the for kind parent just next of bringing it's that level over up sizable years. guess,

a about guided of [indiscernible] prior as I those to just you how can and manage provide we're guess, the I pressures, 'XX maybe little that right you range. rate and especially So bit think sensitivities interest to thinking around

you if a So provide? how there sensitivity have you do manage that can you

Daniel Tucker

somewhat to manage that. in kind Look, we're of terms Yes. just like how Shar, we be thoughtful, year, creative, of did this we going aggressive

year the everything as way kind You saw us do interest low as our disposal that at impact. mitigated do to the We'll convert in earlier of really this execute a rates that possible. keeps

likely and piece this today, for seeing all But it's by all tremendous windfall we stepping as thought activity here. not we mitigated that economic sense I consistent. what have. higher, long were this and longer is what is, sit perhaps we're we longer as of I higher we was as probably think And as kind industry all sit development think of us, back for it's in look, the rates saying of here you interest everyone the knew

EPS In around with of an move think a year, point incremental kind points XX are as we in minus plus sensitivity. not public our interest interest kind basically basis terms We're forecasts forecasters. that of or And there that planning. just of for XX every interest basically forward, of rates sensitivities, it's terms sensitivity think basis look, incremental of another about rate rate potential you if [indiscernible] of out using we're

Shahriar Pourreza

it. about That Thanks a for Okay. had. the all Perfect. I week. was [indiscernible] I appreciate color

Operator

question Stanley. coming David with from next the of Our is Arcaro line Morgan

David Arcaro

kind a you'll that quarter? last starting sales the actual do guess, load of side first. XX experience. through coming start months the down weather-normal you on When see the similar over I things to the were growth think Maybe of in

you start kind underlying electric when comes inflection load that growth level? the point single-digit of think So do towards to upper to getting that

Christopher Womack

late the they've as constructed. to begin the needs we be lay probably frame, be [indiscernible] think, got play out see could think I plants as as got the this They've some as we'll and I what online. go 'XX. and plan mean in out to are, I time of

So 'XX at 'XX, look late frame. yes, early time the we

kind will up those show you this of before see in increased think sales? I

Daniel Tucker

Yes. facilities that's announcement hear staffed activity time about announcements, X, to typically, X to talk When is Dave, and for get at operating to built, get load. trained that meaningful you economic from development our a get to and X, us years capacity

David Arcaro

it Yes, on this Does got indications like units? a this Unit a And ] it. other are wondering context any it That's just helpful there. this that could there color does be was design issue has if -- the little look at and maybe APXXXX the pump look then you one-off could just with could -- Or here? on be issue [ happened a bit X. elaborate pumps

Christopher Womack

is a we'll to I it mean, the get what back I in premature from focus that. I pump removal manufacturer to replacing learn to putting mean it spare service. think process toward little a our on then But once see say. of get the out, it's actually then right of we'll it now, the moving unit and we and happened the with and

but a mean, hard move we'll . -- repair we'll I I pump forward. and at, take to mean look what it yes, the So happened and

Operator

of is Julian question the next America. Bank Our Dumoulin-Smith of with from coming line

Julien Dumoulin-Smith

you here, about don't a Indeed, here. just little further on mind. the this upside likewise, let's Look, bit if keep Chris. CapEx talk you bothering I

upside if not billions that as that talking LMM Or you ownership were was going I going Let's service? about opportunity? use And that of talk want do think the forward, inclusive upside angle to first XQ? as the think there you what think extent When how ripe for to Alabama. years, about X well. X.X there of that gigs, you upside, be just also, you over To is is that's that to trivial about

Daniel Tucker

Julien. upside, the to upside It's

this conservative that to to we be again, to owned we're part an individual expectation activity, have I going service projects. earlier, those I spear the happening continue of stories. opportunities sight individual in will of on mentioned a it tied rest So line this. Alabama, think tip like be to electric the of on have we what's better we're lot going And development comes while it largely here Georgia, in across forecast that until mix will there's not and absolutely renewables of become is When our to for the this economic today sit territory customer momentum kind the of of

Julien Dumoulin-Smith

you it. they're here with be that, ownership Alabama, would Got targeting Carly's here, forma of an not that bit negotiated customers to presumably then [indiscernible] to more for you're the like flat into turning clarify question pro fairly and DRIP. debt thinking incremental that And that little will? balance to you're piece a about of a the sheet only FFO directly even opportunity DRIP. on just level level, capital, hit would leaning if still that clarify the Excellent. be entirely It's a the It's you'll this, just flat further, inclusive like by

Daniel Tucker

Yes.

terms So our of mix on -- ownership and be of will of the going territories. mix. part, this all for electric It Julien, is service to the true in first a be

amount, like has expect be to PPAs third-party own here, a there just We historically. likely mix the there is meaningful to but in

as exactly don't we're will what want forecast. not have that meaningful. So including expectation an be the know it that's We we We or reason just to be mix is. to anything presumptuous

Julien? was again, I'm -- question On the what sorry, the second

Julien Dumoulin-Smith

Yes.

flat that use, thinking are of on the of some Just of here, when capacity? you DRIP the will, reengaging Carly's of keep kind think versus of CapEx, question, sheet said about the about in expecting response millions that? ratio balance Or equity you relatively to hundreds equity something you -- are metrics sort you with of to you that if you can that and

Daniel Tucker

would Julian. I call Yes. it flat,

over flat term. So long it's the

nor objective. Our consume [indiscernible] we've to credit flat against a no we that a long-term adversity quality have It of incremental is do have or is we kind buffer -- where desire we positioned growth. to are got

Julien Dumoulin-Smith

soon. leave see right, I'll you All luck. of guys. there. Excellent. it Best I

Operator

question is with from Evercore Durgesh the Chopra Our next of line coming ISI.

Durgesh Chopra

'XX year the of down. you -- do 'XX on you but you're about I again? Dan, [indiscernible] numbers jump keep obviously, think just clearly rates wanted year headwinds then just sort sort higher, prospectively. of qualitatively, stronger were 'XX and -- but from How showing Just I that a gun to there's load from articulating want think to going sort guys of last headwinds the subsequentially here, forecast brought rates -- don't were

puts and expectations how of of you the beginning takes, So shaking at where your 'XX right the is the year? articulate would versus kind now

Christopher Womack

into earlier, terms in our you've But me But or we're this Let to bit the I a of of of seen mean that that you I mean, of I we it's part 'XX. activities our calculus in process tailwinds go kind said do us this. will about February tab by with headwinds us in rates. when of middle February coming the economic think any to forth how the you we just point don't guidance assessing for process mentioned, all give the start will the we in of that that's We'll really the of at 'XX. premature. time. to I that is you've February indication I 'XX in kind guidance. mean, us do we I think we -- guidance lead But excited And things saying as the are now of give interest development that from

Daniel Tucker

transcript, Yes. discipline But and it's script This a of And hear say Chris are we us. fair just guess back I the could really and ever, same I for quarter every matter I it's answer. where to you're to to excited is about. third go are. going you think

Our stack now. anybody I value against proposition would else's right up

Durgesh Chopra

Okay. . I at it least. tried

Christopher Womack

try. It was a good

Durgesh Chopra

by discussion the where to obviously, there's be of the forecast pretty back would this billions that growth you How load versus of you shifting could the CapEx slowed talk rates, upside. much is just bit. suggesting a increasing going you you a impacts. so I'm that towards go would I to CapEx were think satisfied digits sizable that percentage would mid- single if with to dollars, return or forecast of guess bill -- then high maybe Just think what customer to

Daniel Tucker

to you Sure. on. parts evaluated be of you relative And resources you're perspective But invest can terms peak resource the electricity XX/X. stepping Look, key, And this at the a can level, right? in ahead plan and peak, sure the of that loads, things growth as needed adding regulatory moving to and just the will serve get to oftentimes really we so make imagine. the there's customers see load. peak a You to want at don't meet ultimate growing of adding here, electricity that back that's that it process decided I aren't but happens, just high a that everything load using to that's are the lot use the customers from expected we're

really where other profile that the so at benefits That exist pay the economic that this opportunity is have kind will with affordability for sufficient capital. for is today of more needed to revenue rate provide to customers than And help that that equation. structures the

Operator

Our from next of coming is line Andrew with Scotiabank. the Weisel question

Andrew Weisel

Andrew, Okay.

first, it's quick one. a So

range ahead the of part than the weather, pulling estimate. know to obviously that I was quarter rather full higher. you're but the Third midpoint well is something still of of year

if ago? relative X what are outlook it, the to me . Forgive but missed months I your offsets

Daniel Tucker

update really just X the our we quarter didn't So call. we same on discipline, only as months address that ago. Again, third year-end year-end

It's quarter, last half that's of a we it. headwinds first why And substantial. third year. refining half really of year we're below about pretty were we're the but on the in better-than-expected time had first year-to-date weather the the really a it's basis. $X.XX the first so Yes, And

end at of expectations middle biggest guidance And the of so the that's kind the of year. of the driver

that, quarterly estimates time challenge where out all go that. of didn't the we back Andrew, exceed Now I and you we again, mean, kind say I a find put all and time, I to

So expectations are. where help that with should our

Andrew Weisel

definitely. Yes,

Okay. Got it.

you're on could now, So I say. track back I guess,

talked to I to is cycle. How I [indiscernible] IRP. the receptive this? the with XXXX. cadence to And I on pattern? been a existing until going maybe are add know assume question typical you to any there and some of thoughts some you've it's on know assets, had any Is you're reluctance to regulators retirements? would plant key have but wait for Next intervenors. The retirements? thought that any postponing off postponing your contracts as is there X-year breaking what follow-up, about conversations sign

Christopher Womack

of a a things. first And ahead our take me all, get never of Let regulators. we of shot couple at

say were the going the that process, we bring the Secondly, some we would cycle. occurring socialize through activity there 'XX I'd filing between as that update need commission the we a forth there did in IRP that be to and likelihood to was saw X-year

we'll So of this that question? But is hopefully, the a And forthcoming. process, We was decision yes, updated your be the second would, by get not part will IRP. of necessarily through a fact, this in this and surprise. did we sometime mention so what go April 'XX with

Andrew Weisel

. postpone retirements. plant to Potential

Christopher Womack

you look to take we in we look the look likelihood I may we that this there as into at scheduled a little to longer. at is that [indiscernible]. would there, that retire units think may is the need that As traditional need 'XX, units been them have Meaning, some

look a customers. to that demand So as to respond is possibility we for this our growing

Daniel Tucker

will assumption future in terms an that's in a while be think this update, IRP And proceeding units. existing decision be I of those IRP that made coal a to in

Andrew Weisel

requesting decision of anything you're this will just April. February until Okay. update to Does the that not reflect in February ? a to clarify wait related XXXX that will CapEx in And that mean

Daniel Tucker

degree where be may of best There but our we'll I we bit think good uncertainty, some We'll be able are. assess to do a of it. to reflect

Christopher Womack

process. established integrated not resource traditional has planning we but a expect order scheduling the And similar to been Yes. the process

in 'XX. And so that would April time align with a of sometime the frame decision

Operator

is Tonet question line with from next coming of JPMorgan. Our the Jeremy

Jeremy Tonet

litigation Southern mean What any and these that any the that regards and elections. out here? could with hoping what's thoughts and elections those could with forward potential just was for Georgia Just these there next provide happening latest materialize? of for of perspective road? down implications are and state, For on to could regards the us to steps some the in-state I When you and

Christopher Womack

a and a the Yes. still of in Georgia XXth of terms congressional lot there quarter seats. around But appeals. regarding matter Circuit the from And the activity [indiscernible] not decision redistricting Service issue pending is Commission, Public that lines has there. in There's been the before

before other the processes not case. the the may matters you does go Georgia for Those that include matters in legislate redistricting. consumed So Rose

So for we from still the a that XXth matter. are Circuit waiting decision on

Jeremy Tonet

or elections this much it. you mean 'XX just be point. Got really too X to would at held in I those expect can't tell

Christopher Womack

question. answered We you think can't time. us really this I your tell

Jeremy Tonet

enough. Fair then switching component the clearly And talked enough. natural earlier. as key a gears here, about you Fair mix, energy to gas

wondering, Just it sources? a the Is where other natural supply at MVP? as the see as you how this state. do dynamic Or incremental I'm pipeline point? this past from? to easy points into coming wondering to supply in [indiscernible] not it's gas Is just see you that at . the build just was this

Christopher Womack

trying in of pipeline of that capacity. there of in middle couple A expand lines things. and I terms different to processes we're are different mean the

across increase companies; so we find also working to in existing expanding with to, our fact, And pipelines existing but one, infrastructure on and capacity are themselves pipeline all working where ways territory. possible,

customers the but important being speak that about need. there they I there, able time. and serve are all support our know is can demand this challenges think they with to reliability it us at we Yes, essential and that's So we to

need. continuing we to supply have we and are of the that pursue we options host to various sure And make so alternatives

Jeremy Tonet

X Got one, enough. it. And last I Fair could. if

into or Any that Vogtle fuel? just IRP power to out test view? related a how and plans plant it could otherwise, hydrogen green the be wondering to as Just play your

Christopher Womack

X largest blends, done have. at we've and I we're other the opportunities. we mean of looking And

to not know, with of you also hydrogen to conversations thus hydrogen in participated interested of down Midwest. think I discussions hydrogen that As but successful the in around. hydrogen were the we We we price the hub participated number here we customers. get in the have and infrastructure all in create hub ways the to finding and with move in continue Southeast, And we're the

option every quiver, hydrogen all still for us. to is renewable a the customers resources yes, we're arrows for at needs I in big meet So we're the consideration . and looking our of mean,

Operator

coming from Seaport . Angie next with line of Our question Storozynski is the

Agnieszka Storozynski

How are you.

solar I things. small Southern a mean, of surprised was Power, So the project X the kind about announcement to one, I One, see acquisitions. just

that to from perspective. actually struggled makes any find economic have an sense projects You

we're a these interest high in you're meaningfully now environment projects. and rate Now going after

is the some .[indiscernible]. I'm just So just these the that projects? and solar if benefit your using about wondering it of Or something there's FFO are specific back on the you managing of X

Daniel Tucker

Southern at while Yes. it changed really the because Great Power been anything done Angie, we've question, was and had IRA. what a since

because like middle we regular, stopped sense The projects matches of lot profile XXXX doing credits profile unlocked something projects. tax a that any front. that and kind had much didn't for solar then of the solar activity predictable, [indiscernible] on better investment earnings the development our sustainable didn't through did and of last the IRA of So we lot solar kind decade. do a of XXXX through We the

set opportunity we kind that we so big, it here couple fit to the of look projects was narrowed criteria for. a down recently of the and And really

from reiterate to equity better contracts, it for it's just It's It's everyone returns overall what Power. we again, regulated perspective are an fits than business, our do Look, Southern overall at that our and profile. creditworthy counterparties. long-term

is BBB+ important. financed, is a company, an itself Power and right? sheet of it's Southern balance In

has what's of crown business the become about needs dispatchable fleet of something the of the reliable, in think in Southeast. the Southern rest is you the best Power, of it capacity gas capacity it, a because of with Southeast natural X If jewel happening providers that the you think in the bulk about Southeast,

were a business us, grow opportunities important to great it. it's X and these that's So to

Agnieszka Storozynski

I utilities on it's last manage when the not and again, tax Vogtle very back the very think about the needs of to flow COD probably the or improvement those cash in that the X units, using But [indiscernible] you should be again, of FFO credits. those of last

So [indiscernible] this is not

Daniel Tucker

not Angie, credit X% . is a This play, that

Agnieszka Storozynski

that's different saw a was Alabama if not that X there secondly, yesterday. then note. this And year. I'm Power of the another change I Okay. mistaken, third management Again,

my changes Power? to . is if more there is had caught Or it? Just X just there we've if the at these management that something coincidence attention, again, Alabama it's

Christopher Womack

who more new the than And of there chosen I years wouldn't that. then some number in of have put read Angie, leadership No, in individual I to that opportunity had mean retire. to have and you've in XX anything bring a bring service talent.

helps team. think I overall the that

can also lot overall better. in know, outside when our But growing in a But team I to pay enough we in as our you our also succession of to And we teams. and some go know to terms do think internally invest we of team makes attention wise from the talent planning. to we're a work of bring lot

read So reality I retire some moving around. anything it and wouldn't deciding couple us of people the a just than to individuals more of to

Daniel Tucker

Yes.

then You that and didn't hear years that [indiscernible]. XX

Operator

question last today the of for is coming Travis with Morningstar. our Miller from line And

Travis Miller

can I capital out almost use you I'll several nontraditional Is nontraditional. raise creative. utilities mean toolbox financing, seen on use answered for of going and you? we've something who out? rule their divestitures, all Hello, in used my Or was stuff But that other some that Anything to sale. needed questions throw where we financing minority the type to just the even interest

Daniel Tucker

that that Look, Yes. to last capital. of of sources would be several when we it to toolbox companies to than lot really our years We kind argue feel alternative smaller comes work a always and it the fits I about. of over a of portfolio used to did is really toolbox. lot good this something there's own a

sale sitting But Yes. So there opportunities? right out No? some any there sign are do have we small now? for

Travis Miller

lift Okay. looking to $X.XX the think that? or for Makes The . what you rate around sense. off And get [indiscernible] thoughts is Board then that quick dividends, growth a follow-up. do

Daniel Tucker

Yes.

right? our sustainable for growing working XXXX, down sustainable where primarily in way not sits just I That's if our a to something think here think XX% XXXX. be ratio So like payout is payout a it's about company. to a for guidance you ratio, our going payout

earning and X construction function X. during we've of Vogtle a largely been Georgia ROEs Power at that's of Now the

that off, payout rolls start rate. we that with comfortably somewhere order something As a a get ratio it but probably just to will to down, higher growth into starts evaluating begin X need to that in come

Operator

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

Christopher Womack

everyone, really very you please forward interest your appreciate And we joining meantime, We for have very, if us very us Again, the of In look us today. you, for questions, today. thank in many Southern again, much thank give you to But soon. you joining Company. seeing a call.

Operator

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

now may disconnect. You

The Southern Company (SO) 2 Nov 232023 Q3 Earnings call transcript