The Southern Company (SO) 31 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Greg MacLeod	executive
Christopher Womack	executive
Daniel Tucker	executive
Carly Davenport	analyst
Shahriar Pourreza	analyst
Ross Fowler	analyst
Nicholas Campanella	analyst
Julien Dumoulin-Smith	analyst
Jeremy Tonet	analyst
Paul Fremont	analyst
Durgesh Chopra	analyst
Travis Miller	analyst
Paul Patterson	analyst

Call transcript

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Operator

Good afternoon. My name is Julian, and I will be your conference operator for today. At this time, I would like to welcome everyone to Southern Company's Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure Mr. my now is to introduce It Greg MacLeod. you. Thank

You may begin.

Greg MacLeod

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

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

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

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

I'll the to Chris now Womack. call turn over

Christopher Womack

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

electric well The as has demonstrated recent utilities, employees one more including the entire been and came together Helene. response continued premier, team especially our of professionalism was quarter, and gas never evident third as storm in perform through state-regulated to to restoration our in Southern efforts Georgia. than the Company Hurricane Our our resolve the across company, employees dedicated during

across emergency met mutual our was government storm extraordinary first assistance a an Before Southern share agencies Dan Its of of unprecedented our across dedicated and Helene with Hurricane all provides our and historic an like financial was partners, to I'd local aftermath this results, Company, officials and event. overview response responders our Georgia. story team weather magnitude. state from management from

devastation be of impacting the flooding, in winds resulted state. to serve, destruction communities Eastern stretching what extreme we miles, can characterized only rain, of X/X entire of the with heavy the many hundreds and the Persistent as

-- and Helene resulted state entered the Helene Southern by hurricane the of Power's out combined. the caused being impact to X counties Management caused the X damage largest the Georgia by disaster Federal Hurricane history, Emergency XX exceeding XXX in largest destructive service was major damage areas Power's by declared Georgia Georgia as most XXX-year storms the a the Energy the territory -- Ultimately, in Agency. Category in

considerable the XX,XXX and With Arizona, infrastructure, to X,XXX transmission of distance wires, X.X utility between of nearly wake Atlanta poles the storm. the damage downed our some over of damaged outages customers' the in Phoenix, million and experienced miles equivalent

worked safely resources conditions. With across North XX,XXX reconnect a the clock the over through America, of to extremely customers of support around from difficult well workforce

Commensurate affected the our with complete in of was communities, a infrastructure regions of our require system our repair, the damaged seen beyond devastation a and near rebuild. much significant portion utility in

especially our partners utility were X.X to of endured whom within to the hours. XX million the communities own the efforts with of commitment hard-working contributions destruction first and days, customers thanks of unwavering and to restored the dedicated industry power of restoration own complete Thanks rebuilding XX% within and our lived crews, over same homes, X some in many the to whom their

proud incredibly of of a are that well together so industry response, to grateful and of in part We be an our need. team's works eternally times

Light. to are have we ahead Many of Power, road across Georgia long the recovery, communities privileged serve Eastern Gas Georgia a to Atlanta

and aid Power to Georgia Southern steps taken are our Georgia. customers contributing additional resources support and to these organizations in communities, has Company to provide to

financial than the these. we has center of call at our I we like in been clearly update. business over to communities to now our each everything serve and for we model, I'll do. efforts exceptional customers are team's the am our commitment a the every never And a day. Dan, serve wherever of proud important demonstrate and turn customers extremely In are we that to more citizen you times

Daniel Tucker

and Chris, good afternoon, everyone. Thanks,

to Hurricane costs I'd through quarter results, financial address briefly described third the to Helene. related I associated the efforts with Before walk like Chris the just recovery

estimated is historic associated labor, rebuild approximately of storm-related cost The cost and event, of unprecedented on with destruction to this billion. for initial overall contribute the $X.X weather combined and fuel inflation the restoration with The food, supplies, impacts contract this cost. lodging,

our final the Our our estimate bills is mutual subject impacted are replaced it That assistance takes to ultimate that estimate several the restored reliability. complete fully is estimates damaged with time is not our partners materially and months to to an to long-term but we extensive ensure as cost equipment, to areas capture such endeavor. to from of standards we to likely suggest the change, next change rather meet cleanup over of for as that work as acknowledge are the

XXXX. our now XXXX, operating of This financial third and last Turning of our higher for per compared to earnings and third utilities by The share, quarter for performance of drivers in depreciation results mostly continued the primary offset adjusted expenses. quarter our quarter growth. $X.XX the customer year was to investment were $X.XX state-regulated higher other than the our were interest,

per And the X the same XXXX. $X.XX, share in of with were our for adjusted compared ended per adjusted months earnings XXXX, period $X.XX XX, September share earnings for

half is in weather weather-related year-to-date year impacts far is of the largest mild an of results morning. thus contrasted earnings year-over-year released in we've XXXX, with in XXXX. materials effects the the first A complete compared extremely our experienced reconciliation with the of included this One prior we from drivers the

share, full our adjusted share. quarter $X.XX Our per of is with earnings would year per adjusted combined which, represent for estimate year-to-date performance, fourth EPS the $X.XX

sales data positive XX% were was center Hurricane the with a in caused power from as its XXXX. and Southeast Helene, of well the the of the negative usage, weather-normalized sales quarter retail by compared After chemical, quarter strength that electricity which excluding X.X% total segments economy third exhibited the in transportation electricity year-over-year. the damage The flat continued by of resulted and up broad strong as lost impact in pipeline was sales trend, essentially

in slightly quarter. businesses strong XX,XXX distribution X,XXX natural usage down our And gas customer customer businesses. weather-normalized and electric saw per in of the while our new additions in customers residential was We electricity residential

The territory investments new economic approximately pipeline potential remains robust, to and grow expanded our territories pace. and service operation across billion. $X.X electric at our activity development generating either representing service historic quarter, continues or established companies third in capital XX totaling our X,XXX-plus in jobs, the an

Power's renewable chemicals the energy this activity quarter in strongest metals, Alabama by segment. its announcements represented economic and quarter led several years, in

reflect X-state load grow. to across large the to industrial X Power's potential footprint to our development pipeline economic and and mid-XXXXs, gigawatts upcoming that have continues commercial report Georgia Public Commission customers Service be the electric large development load grown to over utility committed. The its by is combined pipeline new for The with quarterly Georgia with economic additions other filed load XX expected gigawatts

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

Christopher Womack

Thanks, Dan.

operational and the exceptional of well delivered quarters we results financial X the are the and have first through positioned year, solid year finish We strong. to

of grateful Our communities team. customers serve, dedication historic I highlights so to part and our team's extremely to proud are the we a storm face in resilience their and be of privileged and to am the a the

states It industry state-regulated utilities, well our regulation, the demand electric portfolio With for this and and projecting in are an along by constructive opportunity coming exciting positioned we of time the growth certainly our company and gas great presented extraordinary for is our with supportive energy for this years. industry. is

and we existing the states to help should mutual and our we combined communities of processes regulatory utility approach, disciplined support our with our orderly our all grow As planning service are benefits the partner including customers. for across stakeholders, to serve, work privileged our territories, with

am by conclude I our very me about saying, excited Let future.

now take ready questions. are we Operator, to

Operator

Instructions] Davenport, [Operator comes first question from Sachs. Our Goldman Carly

Carly Davenport

on storm just appreciate start all be the process kind recovery just at $X.X side. cost talk for deferred? estimate can Will Maybe billion of in and color this timing on the filing costs to Georgia? point. that of you the for of I through those the And the

Daniel Tucker

decide to too want ahead pretty how Yes. we or will about of ultimately far assumptions deal it. And any get make the to commission regulatory upcoming Carly, usual, processes don't with

constructive, it's needs customers. timely of and historically. the kind very the and good recovery company I of the the has to balanced acknowledge been Just They've been think and

would of work to a rebuild sit still There where today, don't nature not do, determining, expect we There's crews, have cost. potentially new restoration, of typically capital on dollars, these been assets, a process the terms those go yes, look just that simply is estimates this are will not just recovered rehang through In dollars deferred. the all cost more into material in of manner there. deferred will how particularly cost as capital turning also and to O&M, the occurred, wires, numbers. those the also unlike like than costs Again, ultimately -- different be of essentially opposed but -- we based to changes to look the much firm support more

Carly Davenport

it. Got

the that developed growth you That's load in Okay. how just pipeline load talk that that Georgia. of pipeline appreciate converted has the in helpful. you developed? In there the and commitments? terms what you've to the just maybe based the the just commitments? customer Georgia, side. filing, about And thinking pivoting also in I magnitude bit potential context then to upcoming on how has pipeline updates super a IRP pipeline how And has are how far on Could that the so mix of large or filing about little actual seen of

Daniel Tucker

Yes. question, That's Carly. great a

actual better help reason with sight that was formal without again, really bit process. or is PSC So parties into line a far have all quarterly -- any and the this ahead processes to Georgia of filings, little the leading of getting Power too next filing the making

we your since seen within continue commitments so not we that to only began size continued seen momentum we've but that pipeline, pipeline. and have, of process, And the the point,

again, by megawatts. fall filing that here the that sit Commission, frame, X,XXX megawatts whereas we as our committed the of time like we been the Public have of today, kind more time was at Service last with mid-XXXX number have So X,XXX

see continuing we're kind so of to progress. And that

Christopher Womack

talk add, for think thing orderly through we the the filing process, work a then and talk working clearly how prepares Resource process look how processes. bringing because through activity think, I orderly and of large we how and regulatory and And projects demonstrate it our demonstrates to Integrated kind we online, real think make the to Planning an of then as about as in to about I that's I what's also it as one we place a forward to our process through I as that projects that this there's you I lot owe through a all sure bring process process our this go load to about Carly, would we company next works way lot these bodies, to and this very just work we online. up we're these but our being this states lot our but price narrative just but in of marketplace, diligent

Operator

Shar Our Partners. of next question from Pourreza comes Guggenheim

Shahriar Pourreza

for with sort kind maybe center being almost offtakers imagine resource Power to to to the start of wanted Southern just I I of want assets. with kind in this is Power but stick for front and push the every a Southern jurisdiction. predominantly adequacy contracted, have second, so of mean I

Are this think opportunities it do what around roll restriking growth? Southern mean kind kind in for extending and Power's seeing we environment contracts also the the seeing opportunities you about of how could as tenors? pricing of And any and contracts off? Are you

Daniel Tucker

Yes.

Let set on level Southern Shar, Power. and just start, me

So risk Power like the feels have looks to always profile that it regulated a have to business. and Southern taken we've approach --

take fuel long-term risk. don't So counterparties, contracts, creditworthy we

in if of the that and XX%-plus so we is I decade. largely on generation gas through particular, covered this in the And natural covered, portfolio, -- portfolio, mean, focus end

contracts you have that it's for renewal. are up that so then until And not begin to

we obviously, of renew or the would an before Now point to to the have opportunity end your decade. well extend

what this to what relative improve time And in is they returns essentially to so to were. values in opportunity within doubled they've long-term be appear that of that to context, kind contract rates current at Again, capacity as frame, out Southern the Power. we the look a relative

So there great in that is interest capacity. yes,

kind continuously whether or natural will, in where in add Beyond to other of the We we customer if able be those have renewables, we markets, today. serve And or assets, of customers, whether it's to existing assets, we're be hoping have same you also getting the entities. that's mix renewables. gas potential pinged, Southeast particularly new that a lot load-serving the by

directly lot markets, a ultimately portfolio, utilities, an in but contract individual industrial But investor-owned through also, in commercial So customer. structured customers co-ops. and serve municipalities, contract. They particularly of be with our a it's we large renewable may

we're same fuel I long-term front described those contracts, counterparties, discipline So the too, but on maintaining that no end, risk. exploring creditworthy

Shahriar Pourreza

really ceiling pretty curtail the get, put it. you Got to discipline But Power big a or Southern doesn't that sizable? on opportunities expect because how are

Daniel Tucker

think that's business business, going utility and regulated get relative even to complementary Shar. think this and to I gas are generation in or wholesale that incredibly I outsized historically, our we've we Yes, a electric right, And forward, just attractive wanted retail have holding never we business business. our retail company,

That the no that. growth fast concerns so Power's growing Southern now. utility have regulated said, rate business is about outstripping I right

Christopher Womack

period. that about we And just this will But talk disciplined. in we very through midst as this Shar, opportunity, just remain always disciplined know the all remember, of being we move

Shahriar Pourreza

it. Got

on just Okay. lastly, fine-tuning. Perfect. And just follow-up on Carly's, then just

there. any got you've have you sense, number do Dan, an cost estimated Just

said how of that capital versus change. have be it could But billion, sense much You O&M? do you $X.X could on any

we And is once, and about do into this bill happening there's and GRC GRC big we're then timing customer right? of a at recovery sort So the how a bunch think thinking up. coming impact things of of going a affordability, as that about

about do think risks we how of the there? sort So

Daniel Tucker

to On say. first Shar, Yes. early it's point, your too just

of in of the I likely that like, is occurred think intuitively, capital in than more storm. But actually skew that this we least say. reason what of at it's our And because little terms believe to the it hard that's looks historically. will belief simply magnitude that rebuilding a

processes being process, There's lots know important us, going this look We're Chris' of that and else And you disciplined part the to most comments. of go only of split not making approach historically. again, just our not time. the is assumptions about to our and I terms the regulatory the is remain has commission the considered other in capital thing piece, discipline is be will to and at variables, the then but back And ahead going be. getting constructive back versus on think what taken the to what of

Operator

Instructions] [Operator next Bank Fowler, from comes Ross America. question Our of

Ross Fowler

you hurricane in What past, But on Can asked of through whatever recovery gap create in do in following an the most recovery looks sheet state? going processes versus balance like? ever Georgia, of he question, forward? Shar's on as happens have that finance the you securitization? sort commenting of cash maybe you isn't out on Can what the the kind be that the you've for But does remind And that maybe actual storm us that this not opportunity then typical Dan, the So work sort future. the had. is it. of lag? the the done in between cash expenses how And first this sort recovery then gone of

Daniel Tucker

to has their in kind every disposal to Look, this. think overlay of Yes. a I PSC the their of flexible approach tool hands

to periods on time, the of been it as fair I it's the kind else too the have years, think has say, precise big circumstances depending from storm to but and magnitude the on many the time. history, at the of rates recovery at a the Without factored being about and the how into of balance years as X same what being was was dependent couple

Operator

Our Nick next Campanella, Barclays. comes from question

Nicholas Campanella

well. doing Hope everyone is

number. is So your XX I get perspective, of big to gigawatts just a wanted kind

pressure this. numbers, of X outlook kind some higher And of outlooks every committed kind It in EPS have like just here. seen already on You you to the of quarter specifically to load starting have point. on kind space seems your revise peers there's your

that there of rate the point reevaluate point of X%? a growth for X% to essentially would there And even of need of where is kind a plant Is kind kind kind sustain into tipping range? you above to drag that you where that put X% to can you I'm a the just curious, figure, base X% would financing

Daniel Tucker

Sure.

would the the describing. rate. change not term, So growth we're I'll historically on said what everything start, Nick, I anything to expect I've near with in

kind certainly in There's That's by phenomenon. go next decade. long the we're through nature. of here of that That's then gets it gigawatts a referring term. let's for is the exists back to into long opportunity XXXX, term to. and in well that XXXX, the end decade the XXXX So feathered every not XX -- certainly mid-XXXXs. acceleration of the But anything That's

capital the and And the what the latter I've that and and from. serve growth our historically that starting the where on the said sales it to is, in momentum the there pipeline less outlook, extent the may be is term, continues, outlook to load. momentum half to is continues, commitments is this the opportunity it as If about takes an reevaluate of long risk-adjusted the

here of sit as X to I growth rate don't changes. today, we As a X think

But again, it get we we will when there. evaluate

moving You the be we're in the we parts you of plan. X%. the update February back all, this year here. for our was earlier growth capital a mentioned that lot or to our I We a shared we plan seeing, least sales surprised unveil long-term With close won't that's half When of we'll our February, plan to number. higher get if everything when at

are ] talked we IRP way along its details certification. update and Yates this the refinement own pipeline We've already of. things little around incremental XX% Power to cost of Natural plant Georgia bit Southern plan our projects, that year, disclosed Southern the handful that in Power the that seen [ capital our IRP around process, storage around earlier the and opportunity of Q the We've and of several

given that February. are reflected what dollars known billion on won't that top in billion relative we're plan our are plan. $XX in of our capital seeing, incremental on are me, things to roughly several own there $X that of their surprise Those It billion

being There's a about this. long-term how disciplined here. taking We're very lots opportunity. So of we view approach we're

Nicholas Campanella

That's context. appreciate Dan. is all filing the great, And I I know that coming. IRP

kind was space. And Are, about you kind been little relicensing have level? how this consolidated the that Is there wider opportunities generation guys consider? opportunities? leader Maybe Can a just something there discussion are nuclear of the talk talk this kind Are of of outlook, about could fits of? you if to you multistate there You uprate company's part framework? bit. potential even the not it's about in that into

Daniel Tucker

Yes. Look, that as obviously a question there's lot in well.

of to process context like, that what the it going regulatory but Let's processes, in any looks talk just the IRP, ahead about let's not just of put right? get

day, the projecting scenarios are scenarios under over the -- for solving at way serve It's most of over gas rules, various economic, time. those end customers And of the reliable long cost the in and reflecting the the it's of parts, out capital moving cost natural environmental term. time, to

is might. it's Is those Does spits on? before place it that in industry that hear that's preserving talking is. I that's mean we've going a that uprate the down Sure, model? No. Of a us and path get nuclear it take there's road? But a lot we one that of out Does to that's No. a an recommendation? as Does And you model a think, that's, scenario unit option of the the in mean possible it runs, that what new or solution considering worth mean a about. nuclear that lot embarked course, point. to the

large as That's than for exists today. these there's come government, to of place, with many that companies of better some to to from technology from to super changes as the risk country, get talking mitigation got anyone. the We're conversations to nuclear come order in this important right got for them New these companies. with but is these could federal be

of load just solve I'd them, with different just to we're not ways conversations having nuclear, around this equation. around for majority argue the

conversation, it's discipline as CFO, but I'll risk around not tell part going So a a the of as mitigated. our down this, path and you until broader discipline is we're my that

what add? But Chris, you would

Christopher Womack

to maybe said if all there work mean a their majority, to -- level be the this mean mean needs nuclear. that are dealt and center regarding risks exactly it. is hyperscalers solutions, I that Yes. country lot with. great. of there's I Southern embrace done be simply risk other nuclear but the over I Dan mean, to with, many think to No, Dan, of more just respond I to at too you're have has engaged federal Company needs, but data I is just solutions the so right.

hopeful to of on we're also this terms federal to that But those am the are hyperscalers, sure I hope to being trying be and helping going better see a risks and mean we encourage customers. But the of of what risk in, sight we to some existing see needs a in I helps until make can that hope the government to and forward government in progress move manner advancement risk. there's the we we not and done between leans line mitigate mitigated. to and mitigate some but responding of shareholders

Operator

Our next question comes from Jamieson Ward, Jefferies.

Julien Dumoulin-Smith

I actually. to just if little here, of up Julien here side. the can clearly, on mean one It's Nick's lot nuclear further focus. you here, Maybe elaborate a bit last on follow a

led obviously last outset the Vanguard the the ] guys here cycle. at build-out You of [

Can hearing that little doesn't nearer-term bit That -- sure I about preliminary release [indiscernible]. preserving a what peers sound press you the is speak than hyperscaler seen could the kind with right. some of from year just over your in the I'm there. you want you more maybe time. of it's we've option development talked make to out like more a this next This

in hole of far table words just bring tease down to expertise you to subject, on I'm the you don't how the your mouth. or are, whether considering you I put out the an to guys want anything [indiscernible] rabbit curious of that SMR sort that

Christopher Womack

No.

had mean I and upfront. we we've risk understand -- Vanguard, I had we've there. experience, the fully think and you recognize are this with said it that

also earlier, to we mitigate down before customers find path, to solutions nuclear. move think shareholders but we got we've as to with And so our this can spoke the our risk we to

models the just the we we and through of of IRP all where reality that we terms that a the we've and through processes come go as forward. go that's to risk what opportunity, moving before mitigate are. are some and we to scenarios see mean, so got they the those in way find nuclear I we -- real, we'll are, those the But perspective, so issues may from see forward. issues know what kind different And of

Operator

Our next Jeremy from question comes JPMorgan. Tonet,

Jeremy Tonet

Happy as a just a if on you I Halloween. a set, thoughts lot If variables wanted the uprate I But as far could of, high I continue that you've side I And at at And there's you all know that on what there. here. all other opportunity there bit level, potential in the and to the touched uprates see guess, bit. nuclear listed. of just economics range know could share the any a factors play,

us could Just any you thoughts directionally, if there? wondering give

Daniel Tucker

again, to hate going there. any you color regulatory Look, I get -- just not ahead Yes. Jeremy, processes. we're of to keep little a give I'll

So broadly the enterprise. across

have bring legacy with that them of that, a and Alabama new nuclear of don't is are not they pushing potentially a not the on of more the and require been project. we inherent for that them certainly Georgia in of some kind don't of these We X a don't not amount and time, Historically, but Power co-owners have that amount The benefits significant uprates other significant do So all a they specific rates. many legislation risk to the that they require economic. IRA and point up opportunities Power are units but help those not with of are things. where capital, of viable, have Georgia-Power this are there

at as option, it on is certainly time, we right evaluating. we'll appropriate. that So forward if that table something the an the And put are

Jeremy Tonet

want gears, to shift big on the there. Great. you've generation, then given of outlined I as call just And kind

relates that thoughts What it for something Just then to you as even guess, it or any capture, be impacted I And wondering time could Southern? you thoughts as see there? could carbon just coal plausible coal is Or any relates lines? gas? as with, to share retirement that

Christopher Womack

inform what On retirements, and and things. to couple planning of life A what clearly, terms -- the instruct look go we're clearly attention the those that us we like. of EPA watching coal of we'll paying in through as and will processes -- rules, projects will those

couple So of that's a attention continue that pay course, to things will, of to.

the of was your what part question? second And

Jeremy Tonet

as Just it for coal the and to gas. potential both relates carbon capture

Christopher Womack

years. the So as operating you center XX know, now national carbon capture we've some been for

And initially capture doing were around lot research coal. we a carbon of so

vital have have shifted a will to that and gas And industry, to will the knowing now because sequestration. how the as and play We oil and all this of electricity but partners we supporting economy generation, role forth partners from the gas. gas that from it well natural in as be important research for number we bring also recognize technology carbon utility industry capture

continue to this we point We but scalable, we're be to to there's make work. this capture to this capture. continue And gas where pursue to carbon investment because forward. will know We in international but also more this at for a going carbon and invest carbon think research find to going continue done be invest to essential research other in center, opportunities we'll it's research capture get country

Jeremy Tonet

And helpful. I if quick very could sneak it That's one, in. last one

size gas what frame And to there, opportunity $X you your see relates more look to color could ultimately unfolding of do like, think territory? guess, of over? time get bit could I laid Just on you'd like type the that this little as part just service I into it pipes what billion it of a you as just it was provide you the was there. out if But wondering,

Daniel Tucker

Yes.

lot between Southern that's all part Natural that's the Jeremy, a provisions the proprietary on details there's gas So and of project. information side, that There of procurement I are mean there we share. can't the contractual off-takers.

the between of existing electric the Georgia say fleet to Gas Southern pipe. and generation offtake represent of the Atlanta XX% it the Light Natural and existing our our in marketers entities Suffice pipe,

an that And with so pretty think to it's well. project, expansion that the have I opportunity don't a we as unreasonable participant be large

essentially as as our in late very I are all or think Morgan's the sometime project, decade. materials. just these that of end at Kinder probably out a about culminates this far details back the of timing But it As forecast the there again, think project

Operator

Ladenburg Our comes Fremont, Paul next question from Thalmann.

Paul Fremont

Would of you're for the Southern adding at you demand consider seeing fossil at this significant that customers Power, point given add generation capacity? sort to

Christopher Womack

Yes. as I Dan Southern we Power. about to mean think has -- our and referred back Paul, model

I And that that as lot I look taking to we that creditworthy us forward, premature to instruct risk, counterparties, in any guidance may we of -- projects, may have. kind of will or there. a terms of so consideration think what discipline what that be kind using happen we'll at kind not at Southern guide be in mean available that fuel But I of make any work at of so Power we things but will pursue. and look of will terms happens commitment it think and do of what guide going we in what opportunities

Daniel Tucker

Yes.

that's that designed such a or mitigate happens If the you can its the continue than along already we'll way environmental rules, had the to is way on pays for think we those infrastructure that. those about the things like conversation pipeline projects what here, something more there, like then and in table. If we've XXX(d) contract risks risks, to keep and do availability

consistent no. never with being model. it's of It's business function So just our a

Christopher Womack

be there's a as We've of And disciplined. disciplined. through in true and it's lot, let kind that mean, have our who philosophy place growth got today. guide we've values we in that to this being opportunities us you'll we also to me kind as kind got -- of -- here I industry. say a that move But remain see remaining and and enthusiasm got we of to remain in marketplace hear We've of incredible this I we got to disciplined. think we've the lot are

Paul Fremont

that load, sort And the committed of X you've including of identified included last I guess in gigawatts X.X gigawatts IRP. were

of how the entire versus So we socialized much being an X.X should load? is for paid assume remaining individual over your by customer retail

Daniel Tucker

Substantially by all of specific it customers.

Paul Fremont

Okay.

of bills? then customer most a -- wouldn't it actually it positive would So on impact have

Daniel Tucker

to this the load orderly benefits disciplined are existing That Yes. overlay process, is objective as serving mutual of there this and the customer base. we that

Paul Fremont

an about would to be we of to expansion of then that? challenges legal endless think And Or should We've how question for sort last SONAT pipelines, legal me. seen subject new challenges?

Daniel Tucker

well. certainly in way it Morgan I think is line. about believe think that's, thinking time the And to you Kinder susceptibilities factored again, has I its have as the

Paul Fremont

fight? potentially But of would would the need that additional to you all a things sort permitting legal lead and

Daniel Tucker

Yes. of compression There's XX% looping. particular largely project -- this and brownfield, is about

derisks And so way not greatly that not new mean the there's pipe. right opportunity, doesn't of of a creating for and building requirements, brand-new miles hundreds but still you're

Operator

Our Chopra, next ISI. question Evercore from Durgesh comes

Durgesh Chopra

a Just sky question. blue

dated power the with at you is end think announcements have of guys the discussions? But the that the do -- you your of you which think Obviously, I'd kind what several you've technology? experience nuclear seen your do the are Just as of position technology? what Have what Just decade. what peers just your a technology made, of you had operator, itself? you it's curious scalable? Do any think be on SMR

Christopher Womack

And do. proprietary We development number Yes, is you've work technology Chris. a research And heard it. a that we investing we and research follow years, about closely of and Durgesh, us in lot nuclear. advanced And organizations before and with researching partnered partners. very this SMR the for with we SMR of technology, have organizations talk our

that few about the a following and being moving but closely. just there's designs to a finalize work be mean There's lot the of them, and lot involve finalize I projects to think are work but done, And a very it lot more done we're forward. very engineering. there's I there's discussion of

on mean, be fronts, engaged to Units to even for we it's X. We beneficial think and were building I very us but Vogtle also X multiple follow, as

involve going do that's continue nuclear company, and we technology. kind to that. to of with what I are and as we're do additional Gen advanced mean a who IV, We to we continue an ourselves

to perspective, and still and but to talk close from to commercial. be before more I But work design work out done my there's of there, there's more more I we get engineering mean, but think lot a there's more done. work be work anything

Daniel Tucker

that is I as would our what say it early fair to of in Given view technology to nuclear one eggs we all too basket. put that think approach, it be

Operator

from comes Inc. Travis Miller, question next Morningstar Our

Travis Miller

that follow-up Or the any did of cost have those use how quick Did storm costs. on you you was A much available? storm reserves?

Daniel Tucker

We had recovered. to the not small going balance actually a very storm. reserve a be was There into

was additive that. this So to

to billion, If you is particular balance, look actually was $X.X whereas closer billion. the balance reserve at the this $X.X

Travis Miller

Okay.

electrons you're were to customer? you build, new about, today, to that today in talking serve X concept get Okay. how if demand chain, say, terms flowing especially to or that from unit that higher a take you gigawatts, to long supply to And then whatever gas it level, decide a of actually to would

Daniel Tucker

done to Chris, here. and I'm that. of the don't the jump in though I question in to to going think ahead we want But question, already haven't start things Well, get as I answering answer

get long-lead So taken the queue you opportunity -- to time we've the equipment. in for

we've We perspective have very recently an and closely successfully. that very with partners EPC worked from

several steps you and on so I that. then ahead what But say, say And technology. have step to back would we're,

a Those So combustion lines. are turbine? is a it Is different combined time cycle? it

to in long get And in that All pretty good the we're to positioned. gas say, a general, time shape. I the X- end. time Travis, the of beginning It's, given load, well lead kind to we're frame to this think nature X-year from of generation

Christopher Womack

so Yes. And X cycle over of at back at bit that that XXX look think, unit. you unit, the if megawatts I years, in construction X Project a Barry little think combined Alabama, was I our

late So with we've of those some of had good construction units. experiences

Travis Miller

then difference versus chain great. And of T&D That's timing Okay. T&D, or there about is generation? any what of terms supply in supplies,

Daniel Tucker

No.

nicely. all pretty I overlays think it

and But and longer to other large planning that yes. are have on used visibility equipment transformers times lead than accordingly. we into Our they be, major

Operator

And question our comes Glenrock next Patterson, from Associates. Paul

Paul Patterson

Halloween. Happy

I'm place that guys guys And just and understanding correct? like things everything. that So you it -- it -- that upside expectations you obviously, I and associated guys are to that, it to mean with into the are like you sounds sales correctly, you CapEx make growth -- sounds see falling had sure are previously

Daniel Tucker

Yes.

Paul Patterson

terms you that should earnings, that earnings this think out a direct earnings had sales on terms I'm increase, be guess? impact seen. about that -- necessarily Should that might -- past, there with more the wasn't guys of we And growth coming talked in how we increase I you cetera, outlook, would of this sorry, et this that about when in perhaps, think Okay. -- robust in that

Daniel Tucker

not any we at provide the our what all until back The stuff. to about the on of indeed ahead plan. Yes, and outlook not to this do opportunity I latter this of of a of the To or regulatory different momentum processes said line and the occur earlier. half extent do will is reflect sight getting maintain go our see ahead Paul, discipline far I'll too continuing, and we

industry, All is as of nature. and It's long There's exciting year. forecast. is year. 'XX, entire 'XX back all 'XX, It's the happening of the around term not on this is is in and this this It's as as end the -- this load this us and work much not for next beyond.

Paul Patterson

make I sure was don't to I Okay. thought know. at. -- just just wanted maybe that want if to should looking sure make I anything else there I be I

that's Okay, awesome.

return. debt you're mean, deferral And then Or getting is of we -- I cost, think just about deferring excuse with is the the that's deferral? a it some return? return the of should how you're When assume cost costs. Is finally associated sort on on I the at return -- a the me, -- storm that it

Daniel Tucker

with other of with large it. financing us, been it, different again, costs of under-recovered things with that, done like our capital. It's to magnitude a associated for of balances But the the has nature with just Yes. and adjust fuel typically have flexibility have historically the cost commission with it they

Operator

session. That turn Chris for would Q&A closing the like call back I will now Womack to comments. to today's conclude

Christopher Womack

Again, us let me joining one for of you thank each today.

company, we've through excited are in are, first quarters We pleased about we where X year. and the we're with we're the we as the said, performance had of this

you we we a you happy be you of all for Halloween. wish with Thank again, once us, to time much. taking so thank And very and

Operator

you. conclude today's will Thank That teleconference.

You this time. lines at may your disconnect

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