The Southern Company (SO) 28 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Scott Gammill	Director, IR
Thomas Fanning	Chairman, President & CEO
Daniel Tucker	EVP & CFO
Shahriar Pourreza	Guggenheim Securities
Steven Fleishman	Wolfe Research
Julien Dumoulin-Smith	Bank of America Merrill Lynch
Jeremy Tonet	JPMorgan Chase & Co.
Paul Patterson	Glenrock Associates
David Arcaro	Morgan Stanley
Michael Lapides	Goldman Sachs Group
Nicholas Campanella	Crédit Suisse
Durgesh Chopra	Evercore ISI

Call transcript

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Operator

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

Scott Gammill

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

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

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

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

Thomas Fanning

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

we adjusted strong, quarter, to morning, of economies financial see believe you our this last quarter. remain Southeast we the within second well are we XXXX. the we released achieve objectives for The our strong materials service reported meaningfully estimate for results provided territories As from and the can positioned ahead earnings

submittal XXG on for the from position Upon of This load have remains then for begin the criteria few the of the a that acceptance call last Unit testing, all NRC Concurrent ahead, submit with turned ITAAC to The systems should still Southern ITAACs projected At XXXX, XX an first but completion timeline more from X. by necessary ITAACs will to of letter the for XXXG Unit we be to milestone, and XXXG the for of outstanding. receipt date met. ITAACs Dan October. including the quarter of the work focusing letter we surveillance, those from units Unit morning. are final the weeks to remain the quarters, end complete inspection X complete findings for important end which performance, no historic support or Nuclear X. we demobilization, all and later, NRC will fuel earnings ITAACs license all is receipt within recent units although Vogtle ranges last just X on X, X we ranges. call, look finishing and an load to submittals, work to we our the there's with before NRC, testing were over turning filed been X an load progress financial at startup the construction progress to our in-service to of the continue like at further to the work end finding since our this finding the Before records update plan provided we us related first detailed submittal In documenting this complete Receiving fuel up provide for do To at the I'd a necessary of to and at and over X, sequence. the weeks both more Plant NRC forecast need fuel. documentation.

in approximately Turning key be hot and XX% advance progress to testing. continues a testing electrical to Direct focus. is functional of construction X. now particular, of in hydro area Unit production, cold complete continues terminations and Electrical

times in-service engineers for to we site ensuring necessary resources and and operations. X production to Timely is for electrical Unit first a We December focus our increasing to a productivity over as have the several quality fuel Unit X X upcoming start-up, field XXXX continue Unit with from load next transitioning on the we electrical in months add this support along and sustained objective. support work, long-term continue and on our plan first testing improvement

quarter, of estimated an related productivity months updated progress from during seen last Unit We're support increase the quarter weeks to impacts. to of the and operations Unit in that construction co-owner planned the and call Georgia Power about to end the Contingency assumptions look resource of to for the ahead. and recorded plan contingency and and incremental Moving primarily the after-tax Dan, you. the in the forward the over At million, over sharing turn for several procurement excited is at charge we've cost. resources. site allocated remediation to a craft reflects now second activities including of that transition replenishment I'll the X X revised $XX

Daniel Tucker

Tom, good and afternoon, everyone. Thanks,

had included utilities. with cost we usage, resilience. earnings earnings O&M, and today's compared warmer-than-normal changes expense and last to rising our These release reliability to higher strong detailed reconciliation rates and last of estimate. mentioned, A effects weather year of in partially adjusted in higher and XXXX share, to were along consistent the offset nonfuel associated environment than $X.XX $X.XX compared electric $X.XX by adjusted increases interest above regulated with with and package. pricing drivers results and per as depreciation, higher our revenue very a commitments reported our and our primary Tom long-term As revenues is and year quarter, for at The higher with estimate our are higher the and

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

residential see the Hyundai, Airbus. investment labor customers these led the continue participation outlook. service gas with and and by inflation during quarter, XX-year remain within constraints, announcements to jobs of during on electric our with remains announcements X,XXX and a are the from robust, Alabama residential and customers development supply encouraged force potential in XX,XXX chain territories growth continuing quarter. our Economic the of addition pressures by We seeing customer high capital We Novelis and trends impacts to robust monitor also

economic Additionally, alone recent Hyundai history. nearly electric projects vehicle the to billion $XX investment are the over Georgia jobs expected represent projects of development largest state. in Rivian across in X state's plant XX,XXX capital create announcements from These the and and

ports solid of a the to levels first the highlighted As with growth in show record quarter, we in vessels U.S. continue the the the first the of remain the our we with into are of head year, to Savannah With well results the half diversion each encouraged accelerating level partner June. strength, positioned from Port states of new during as businesses. adjusted We economic quarter continues we last through demand development electric-load of cargo season. by container consumer our second volume quarter seen the we and of other driving and result our service to territories, peak within as attract

consistent is address quarter basis. the per XXXX the EPS an third guidance And to we Our estimate will third on for share historical earnings for quarter. after $X.XX the adjusted with practice, of year relative our

call X.X investment Georgia long-term week. an to briefly Integrated Resource generation megawatts Tom, of the like Georgia highlight the to was Commission existing of X,XXX over IRP, megawatts and approved megawatts grid Service by X,XXX back turning I Plan, coal by last Georgia addition the unanimously which Public The the new XXXX. battery would Before or Power's the includes to closure XXXX clean, years, of storage of plan Georgia XXXX, also continue as company's renewable the retirement energy adding by Recall, plan of safe, part of Power's its its over next million resources X approves X,XXX to plan decades. double the energy customers files every renewable continuation to the pond by approved programs. over outlining an reliable in XXX over of several delivering projects, The Power and additional affordable megawatts addition IRP of ash plan

which expenditures Additionally, extend for Georgia the turn hydro February. plan we initiating modernization benefit a with the Plant associated now each energy approved of call Tom, important of for license these call the the quarter out with application the continues earnings in consistent carbon-free The IRP Hatch, of program authorizes are of you. approval the the and to lives expected on Power's I'll fourth IRP customers. capital back that resources will laid renewal capital

Thomas Fanning

Dan. Thanks,

X decades, Power, infrastructure. world's of turbine. clean This Electric innovation hydrogen has Research I'd an to build existing of and a highlight demonstration natural demonstration at to successfully the energy blended for McDonagh, Power's date hydrogen at way carbon-free the the the largest project representing blending of forefront fuel project Georgia month, a gas-generating announcements. helped future along on organization gas Institute, and couple development the pave world-class long-term for advanced-class today. XX% than to R&D Plant, remained and recent Company's more For Mitsubishi Last research moment Power like Southern to take Georgia with use fuel Power

surpassed National Company and in continues Capture capture direct hours the of air Carbon Center which focus generation, the Additionally, for Southern solutions recently its capture. carbon gas-powered of Department for has utilization XXX,XXX carbon expanded on advancing Alabama, technology-enhanced and natural such testing, as manage to Energy,

developed recently bolstered achieved at commercialization a winner, CarbonBuilt, fact, deal the technology its low-carbon concrete and In XPRIZE Carbon by first center. by UCLA testing successful

well last by like delivery XX moment Company's created years highlight to to fleet power Southern proud through for extremely to the weather. look work In a and closing, group continuing our this which We take important June's the I'd exceedingly performed over years of are come. and R&D legacy system, many to forward hot generating

during and was generating real-time on results of including XX,XXX that take of the in Delivering facilitated joining manner. ready the you I'd exemplary integrated, which June Operator, system megawatts, I Thank now who, once our across outstanding of to state-regulated us what continued best times years, this vertically sufficient XX,XXX team's plants June we're we when peaked daily performance our markets, need didn't customers afternoon. is XX times an recognize were be second operators. covered a megawatts again, the capacity requires our effective X planning in for us coupled I'm of During long-term proud peak And days, able these performance during between if to reserves maintain coordination hottest most. load peaks, our with over performed all-time our an in remiss workers questions. and duress XX. these

Operator

our Shahriar Partners. from And the with we'll on Instructions]. line question is to first Pourreza get [Operator Guggenheim

Shahriar Pourreza

just two you, ones So got quick Tom. for

out the pushed of obviously, X,XXX transmission Can sizable. sort the was it Bowen the to forward you pipe there it's IRP, decision firm is to get can -- $XX to just northern it build location? went the the on just to and or gas? convert remind in Just transmission with of plant the kind the think there you you pathway option be Can more you've most megawatts, would solar viable would do amount of make million said maybe if on take that of needed you at a on you renewables, it you us the time given plants an

Thomas Fanning

that strong Shar, on system here a as the strategy robust you to in net-zero the nail My by commitment head. comment XXXX place. our hit long-term is remains is and overarching

beauty stakeholders fuel markets is the and, kind how commission factors changed, have of and inflation from has the something think exogenous to have changed, to that work frankly, our impact I chains supply a of respond tactical with the staff of us that us we Obviously, all really changed. the allows standpoint.

One, prejudge part decision say think are keeping I don't so to this options this in pushing of But at to will northern know perfectly the reasonable. that certainly want outlined we the I the I state. you in the commission don't generation very forward. X warranted think case wisdom about And our of point. in is is what

You is sync load Atlanta. know our that big

could South. role. of continue to we And shut the kind in important you so Were played historically between would really the have to Obviously, is and balancing a North think renewables an North. load North More down replacement. about to gas units, those Bowen option a part unit need play

to these the As our likely turbines the wind. knows. renewables big come system not, answer is to And you just across solar, we or fruition will on tall don't not maybe wind, most who climate know, have widespread do

beauty state the more solar generation terrain So state sense. to balance the of needs of locate in allowed putting we'll here need optimal generation transmission markets we as that. solution. is between iterate and in the North, does more that, better In in an have the and order among are portfolio The significant south a much transmission. the The structure so-called failing order organized with to doing to market our in difficulty to part make build

a this So is topic of conversation.

in handle we'll think it future. the I

Shahriar Pourreza

seem ITAACs, sort more interim ahead have you of you like sort Got expected it's I likely it. X And fuel hit you can Can your X-month or just lastly, it. cushion the could in to left target just Vogtle target, you you but Got think that steps to hindrance months a November. then Unit of on elaborate and on to be I X gives of post mean, load, X- letter, say be with fuel a NRC doesn't QX then hit X schedule load those this, have date? still actually the here? about hate which complex plant your major

Thomas Fanning

would hate that. to say I Yes.

to would say You love that.

Shahriar Pourreza

excited. I want don't get to everyone

Thomas Fanning

Yes, right. I We're right, all range that guess, ago. we we out, say If comfortable within calls that guiding to X don't feel either. you we've the laid

say XX. the March Let's for completion calls by schedule end of

where are. we Here's of kind

days, remaining, ITAACs weeks. We those have I finish in we'll not And X not X. believe

think plenty requesting letter NRC. out time frame, to that has these load the letter of begin I max file load fuel operation capability now imminent. be to to We their are we for Really, by think the begin days. plant. which think the then need XXXG, to to not the the is is we'll and the it greater laid work our XX of is NRC think reasonably things of I fuel a we've handle factor initial the own I the within pacing of issued Then rest on at finish ITAACs, concurrently the

and thinking there before, scope of in is I Dan categories here, that me As of too, big kind mentioned demobilization. of terms are help One can the work. X about we're

and testing is second The surveillance.

the place. that and of And paper of The the have nuclear terms at the spare demobilization taking down to within meet that, some laying is examples the the final just right. in we want have getting day, work site of and everything we add Unit work taking the is else scaffolding, Dan, things, you anything will we've of finishing parts around standards about the end rooms off and one then the already to you those talked any of so documentation, operations. third X that Simple there? things do in is like those moving

Daniel Tucker

Yes.

of for similar fuel particularly pristine work, Testing I obvious is think a what pretty those think gets containment to alluded to of and documentation, to, but and coatings, to surveillance get activities is example temporary I it's finishing great scaffolding, Tom example. that's and condition a are really lighting demobilization this getting doing part it the ready load.

just that, a activities through. sequence So them, time it's logical takes those it to work to frankly, and have

Thomas Fanning

ahead, now and that nothing have ITAAC, is the operations, moving we from sight here we whole work. time this And to transition we have that now. is safety-related the to that stuff. do to and needed the There's we finish unusual transition about plant of to now Look, the line work exciting finish

Operator

Steve Fleishman Research. question next Our the on from with line Wolfe

Steven Fleishman

hear to you. good Tom,

certainly, So that just it and might. Any just now reduction potential kind we happening, right a last there's second about of bill. here this just new inflation a question thoughts you've since been very got on not this chance

board? do you that Manchin this good across customers then happen on think now or would for just is And bad? different ways impact you your Southern implications Just that can or

Thomas Fanning

sure. Yes,

bet. You

Let all the me good. you it's give --

long people deal we our inflation physics this were were and, on Manchin et lot of Congress we've inflation. or me getting said the kind happen. administration Let as in And his groups, And frankly, a physics eye back the won't to I it of go it's period cetera, relentlessly entering had of did. before. say said the senator stakeholder on I say because whether were time what just cards never wouldn't hill, environmental, I hard. before worked let's I replay other the the a tough deal

idea so, guess and more the inflation so money was X% I latest concerning. pressures, light is really of in of the And announcement that spending or is something

And of can kind and the as leave right include of way it that is pay-fors $XXX increased within will let's arise you don't whatever the so And proposal as the pay-fors. proposal, get may a inflationary spending. offset now, that billion this know, additional, an you I promote to from to from there's bill see it, pressures

not to speaks it fire. the need log inflationary hopefully, this an on the additional So to make

exogenous The increase concerning may specter this been that a a to domino at of what recession. another kind adding time is think your interesting likelihood many taxes variable may a has of people is second I fall be that of into entering And recession.

our investment. at job Further, backlog, our you now. in we've Dan economic and will, that at over expected. Now I heard numbers, you're morning centers. and talking the growth. about whatever, you development, United like look in this see that just is a we GDP look quarters if talking States negative the Dan nearly XXX% of recession X to things or of leave talking development is this right us you're activity, don't to Rivian technical growth you're But script, our and historic for nice right who kind respect about with the you bring you're quarter now. the data did than not better EV certainly, you're if any seeing We what when indicators a the capital to we're talking headlights, more data numbers recession But referenced about in the date of way and of in are of recession the XXX% summary up specter And that talking

bit. cautious on Now be Other burst to the roundtable. in Dan, some that's it. I'd for part XXXX, He roundtable, people just does first a don't of through like Dan the his And us why reasons seeing you little comment are to cautious. a got with economic give maybe

Daniel Tucker

Yes.

is year from cross a lot our from and for over And -- universities, or in of customer we've do reminder from institutions representation what bring base. financial a sector representation cross-sector then, we a this a decade. times a couple large a for as just regional of frankly, done So a folks, folks

railroads recession yourself had We the as endure there this a where had very is we clear ones companies, is or place had was backdrop into may We find get geographic period regional So And very differences board. acknowledgment there's but Tom's you to that with consumer in a looming, it. that housing. a goods that in and you point, what clear manufacturing enter room. yes, the across involved of,

indication, look tailwinds provides how we we Tom quarter terrific is and Things shape. Everything of to terrific We're the of us. could our if seeing and But right. you sales during manifested now in shape. deck lot everything change. certainly XX a We're every in relative So we're for at expected. Slide see what

Thomas Fanning

And even pretty those plant Olin one Chemical other one industrial results, big X included Dan, was... and closures, the

Daniel Tucker

newspaper manufacturer that in a was Georgia. Resolute,

Thomas Fanning

[indiscernible], mean, And guys, The certainly numbers would I so been look have those it good. than X.X%. absent higher momentum

likelihood -- just we we the right? the be there all that Now remains the where don't a the in raised recession on robust growing. and last national may recession, support call of So of a data the Southeast the recession light issue doesn't

So that we don't just see right now.

food will inflation say, Now, that and markets, hurts in we do and energy our and the customers. I see particularly

strength the be the going in environment and chain our And would variables. of this to inflation has we There's I many what that I key factors, places in are is not potential States is What side. for mean, technical really the reflect that narrative is of of those in economy? than foundation, the will future exogenous I the what better weather would is been good States. say, how this United future a variables all what are So of, the United this and argue arguments without given to it's other Ukraine? visit pretty unwinding able on be? has strong duress? bit the Does recession? And Southeast, supply an recession from the the a may really else that each the and changed

be so, up I us legislation tax security of speak this structure I'll going think the very enough recessionary the Southern, come story. the by Southern, into to good. of pieces impact in not the at good much, also the believe people They of this is legislation to tip having the of respect climate tend don't increases, to very With really the the us. look respect inflationary territory. more billion with an looks and change how conclusion to that $XXX and legislation, and energy qualitative quantitative it's probably very aren't is the further pieces have that or of some this which this helpful and -- to When to you its

very know particularly owner the our States. that years, to solar or tax us, investment favorite capital. were in the off credit time, of We've the is we ITC kind of United move You favorable. the call having we the from production live one never To it over credits like largest renewable recycled some I tax characteristics.

PTC future. the And So IRP, Georgia thing. really a part an plays moving at solar you our to in important is good when look

carbon So already that's also for good our storage. R&D start. our mentioned really We've science. capture of Recall importance

So XXQ are credits the great.

other reduce Here's say There're the attractive. future. in those of there and used tax other write or of is a in would to big to strategy whether There other the there customers the vehicles, kind hydrogen, new. purchase I thing, though. a in credits some variety If there things benefits, the The of beneficial today are should I things from of all for cost of on really that that transition are long-term electric for to net-zero fleet in the some headline they're things. our the had this

us $XX It's estimate. and is other that of what almost million. I'll paid the all company just difference leading this revenue $X see and for to almost billion the nothing. difference book ours can't corporate almost It's between the is kind the X.X% like negatives? call, at the list look it, XX% tax. as small the tax probably but taxes examples really after If stuff, as A What an guys big So in that million, the room $XX book that the is will show prepared, about this as about that of you of the Steve, pay-fors? I with taxes in nothing. am is with you charts taxes of boiler you minimum leave kind

travels of don't reform on this But have depends enough there? and What appears happens to as should really Now doesn't some the will impact And these you other will. material as just prescription the should over just us, of time there. course, be you as interesting are book company, see to we're everything things. I thoughts factors. with to we been okay? on alternative that say haven't Dan, have the of tax document pricing a say giving that I the anything what a our want It admonition do first be thoroughly drug through to XXX-page we be to us. underscored it on what to host

Daniel Tucker

No, just Steve any I if think has we follow-ups. see

Steven Fleishman

Yes. done? terms but is it again, Democrat on in the the you I someone likelihood off judgment, risk support my question that, or it your getting to be, every pass one this of of guess guess, reconciliation would just falls particularly need to follow-up Sinema I

Thomas Fanning

know Schumer. I has think how creation and a now. this frankly, Manchin really she of agreement, involved becomes been Sinema the don't between important person I on far so

of extremely going know hawkish is on be And to So been her raising she's sense I very taxes. this important.

relief, SALT and change tax no taxes a requests, on put Democrats including businesses. policy, the for I see. know don't let's house, small relief. know, in because not including tax the a So House local things wealthy, state of, the the additional that lot had desires have surtax in a just column I of There's wind the In even a like yet we'll lot that on

Democrat this So on a in bill, has side there's the lot not house to that in that's the be still negotiated.

goes. how see we'll So that

Operator

next Bank And the our question Julien America. line Dumoulin-Smith, of from to on we'll get

Julien Dumoulin-Smith

will, where in squarely for still extended, come lawsuit I the you the summer being to But point? back at the this the very sort we're on of playing by this that broadly. resolution time the So timing expectation I into what's just and we previously filed here? stand, your of resolution. can, on guess you're parameters if the to pointing summer co-owners just just if negotiations mean

Thomas Fanning

Julian, think we there. in the Yes. term I expect near don't anything

out, I to in I don't wouldn't think, the as of near plays and be move we'll 'XX. could to resolution court in think I the half Georgia, anything surprised business term. know be second this

Daniel Tucker

one still process is by data what needs we've The send MEAG date way or portion point, to other. let plans work and from us tender to an their XX one [indiscernible] near-term their Julian, MEAG is we'll heard August there which through know Yes. the whether and is

Julien Dumoulin-Smith

Got it.

Okay. address think perfunctory. whether certain through or And was actually, right. after renewables, or at to little me again, here stepping a to opportunity RFPs I let you already about got bit? That's a this. alluding that I expand addressing kind owning about Excellent. more RFP how I Shar you here you've you when of moment get think understood. it have kind about ask Power, just All some think in there ago. mean, could been your ownership? point -- talk to you I And that do the allocation Southern but is then processes just any these of Georgia solution a regulatory awarded in

Thomas Fanning

certainly PTC, more it attractive stuff. this Yes, more makes our the operating companies for man, to own to going competitive, certainly,

Southern helpful. of And really can that's So the Power of state. We're particularly in. new all compete for megawatts solar the course, in

on So with looks potential happy that see it. in We're the for us. settlement this we everything margin, very good

Julien Dumoulin-Smith

Got it.

Go -- for really to shift the it. perhaps So

Thomas Fanning

would engaged with months. that we mean, this. conversations with I with Like in Congress for in the administration, any also stakeholder, say I have say, I been

is at know. a the I resolution, don't it surprising? So arrived they extent to

depends tax what's the is stuff United good to to think, going I States I And to the pressure this of get I the the this on you think line. really inflation view is economy think judgment inflation. increases recession over the issue. on it versus certainly the speak margin, us. how The fors us just pay withstand on for ability the

Julien Dumoulin-Smith

about clear Georgia the here solar Power, for this, extra eligibility, more ITCs be, opens not punchy up the be just to PTC but of And sort Power. Southern Right. of window can specifically given for how especially

Thomas Fanning

does. sure It

Daniel Tucker

Yes.

make economic. to economic all our the more For PTC that and of the does they're going what customers phone cell make much always for regulated utilities, is choice

competitiveness So I this definitely through. improved goes our has think if

Operator

We Arcaro line David turn the next is question on with the Morgan from Stanley.

David Arcaro

up just back Vogtle, facing X? you you bring labor the backdrop talk to could on of site or that you're work to maybe bit just churn there issues on little wondering, start And kind and back tightness, a any was people any maybe accelerate turnover Unit as I ramp the specifically if about labor and there?

Thomas Fanning

of goes a to compensation. general, that lot In

We decile. measure think top I we're all ourselves the time.

well issues And spoken pretty so the compensation for. are

always of you right a sustained measure work. and churn have week, finish that, our other you go and conclusion statistics report within we that kind will our more think of work we now. our and virtually spoken start We keeping every We're for. people worry I day, on to think every they're leaving expectations eye that as that have

We are adding people with ease. relative to the site

attracting issue the remember will that I a able We're may you think be, interesting about us electricians. there do lot talking to now.

up XX or schedule I make engineering X X just termination. to oh, the the ramp-up and the important I will over people people in that more XX expect necessary to know, to achieve it way. on Unit is people point supervisory that the will us we weeks to not a from so. next see, work Those particularly we increase efficient. It's up these X. that don't frees are electrical think in that folks And more as X, on move wrap big We're for ramping it's do to

is really that it. So

X X, this people and think increasing of those moving to freeing up, on it's advancing our productivity. idea I resources

David Arcaro

prudency for X Got Is maybe that those load latest mixed for to with maybe focus the the closer on it. potential other helpful. frame any And guess on to here? start able you might intervenors in a before up? and around thoughts closer discussions time be getting parties to when That's I still fuel or settlement being is time a Unit becomes

Thomas Fanning

is of boy, get just want it Settlement but, an let We'll don't that option, horse. in always front to go. we

in begin the that calls we official remember, summer X. schedule on for fuel may you As expect Unit of kind And prudence load what next year. to for

settle could process. that, issue advance I'm in hearing that's that not or here. So to that have front-run official date prudence the of we begin to a but Yes, going

Operator

from next Jeremy our afternoon on question get for thanks JPMorgan. Good the we'll joining. with -- Tonet is line And

Jeremy Tonet

touch this continue bit just being wanted I any see here, I be continue? far you -- you positioned? raise yourself current Could just things how updated the if past a And little Just on do quarter, to so have? cards if the wanted the see to ahead trends in guidance mean, could. guidance thoughts

Daniel Tucker

is this Dan. Jeremy,

to deliver we'll So call. results. down expectations what also performance really quarter the does risk look, well narrow to future is it But do, us clear us we year-to-date really as year-end position is financial our strong during in our that positioned years. has operational our well It always third and mitigate

system great been. financial our revenues they higher-than-expected flexibility activities years, thing a when roof those we we will. every and such if done We you curtail or a economic time, have our look sun expectations inevitably fix get a have balances shape our where the knowing recently history what take in are the spending years have to flexibility years going if a we've And the you can happen or to customers, we're at then activity in never growth weather there's So in out. activity. build might we this almost than customer to to our opportunity while we year. ready. O&M so to that accelerate those in shining, strong remains Over is economic conversely, in results that normal or And the volatile less as from pandemic, electric prior or weather of serve into all lot maintenance even below are have And business, otherwise programs the

our customers very frameworks backstops to whereby accrue have of mechanisms. results the and regulatory better-than-expected rate or our the of benefits many through importantly, Additionally, various rebate

So would know that but future say, to tuned years. improve everything and I to the just third doing we derisk we're can quarter, stay

Jeremy Tonet

Got Yes. it.

Sorry.

Thomas Fanning

be. range be to of a the I I too. our weren't earnings the just we with up the right? at to practice the we we're or mean, be firm Dan end on our would giving what, sticking the range if say. we, little whatever. $X.XX of I months. mean next really year, No, We're where way what $X.XX just improved we disappointed But of going ahead in That's X on bit mean clarity guidance you over trying that, is in first the I'd We're call. not of to thought It's inescapable.

Jeremy Tonet

it. Got

Thomas Fanning

doing performance the But so Yes, we're -- great. far

Jeremy Tonet

just if And one one, is everything I last then realize that I could. And new here.

to for As might here you be thoughts of that last regards willing share with but nuclear with PTC out night any us? you talk about to news the eligibility D.C., regulated

Thomas Fanning

slim. it's Yes,

I was plants duress. to help think language that under designed

duress. haven't under been Ours

a I in So credits tax recall X deal. X. have we and big production it's Vogtle And don't for already place that think

right X So really, fairly of Vogtle to view none. hatch That's application our the X now. and slim are

Operator

with the And question from on our line Sachs. Lapides Michael Goldman next

Michael Lapides

you. happen, your McDonough but the hydrogen, about gas Tom, for for that gas utilities, for how big of you we the question the discussion about have to what blending about think power that investment RNG call those plants, for decent-sized happen of in should can hydrogen have also The become talk family early Southern and to steps a kind to steps your both Dan, for just companies? Tom, for opportunities the broad

Thomas Fanning

Yes.

real near-term may be the I terms them, going of to like think we hydrogen, we generate the applications, know to doing most while the on would at optimistic kind be some in we're our about to then we argue that what, with issue great kind real words. blending But that are And are looking in a as people the a okay? in most building breathlessly here and or egg. We lot great going think of do has and I but, impact behind been the Alabama move demonstrating the as hydrogen place, the we're blend particularly Now how those think hydrogen, plant and research in with we're doing methane classic it? I and fuels chicken side. research of we of new also money the Who's hydrogen gas You have McIntosh. is

we at, we're add Gas, as certainly moving about through So thinking to looking think Southern facilities. is safety-related suitable pipeline hydrogen We're replacement about it in those that. programs

Michael Lapides

it. Got

Daniel Tucker

we've similar Yes, the how been what what on may with make agreement for and along customers. was this Schumer around talking to the to Michael, about RNG for may that, Manchin call as about say, since going asked lines be that you and may same just -- benefit affordable something renewables renewables needed I it equally

Michael Lapides

ITC curious there RNG, under really the your there utility? thoughts is Yes. of is the for about RNG enough and Southern of that's credit kind tax was some -- if RNG opportunity to material kind impression I just in bill an whether for a Gas but was this that make for

Thomas Fanning

of Dan, We're other, kind I don't I at know. the each We need don't know. to through material. looking dive going

Daniel Tucker

Yes. material hard I term. to being it's said you near the mean material, when in it see

Thomas Fanning

Yes. XXs. I probably it's in a is really hydrogen idea, but good think the

Operator

We the Campanella from with can get Suisse. Credit line to the Nick next on question

Nicholas Campanella

lot A the of different answered. I moved you of specific appreciate ranges dates. guess about been is just this quarter them in-service quarters I of the kind target updates. for kind guys what's off to

X? of ISD Unit I'm back to you you cadence 'XX, currently Unit today? on of So think it's to communicate going X kind I the is that range like how at point? a eventually plan for Or mistaken, QX not kind move of are if just kind of to this

Thomas Fanning

that lot a about plus lot a And gave an let And okay? at to X that. of look to provided give X, as plus the example. progress X say months, thought me we months. We you guidance the has We on X,

the begin we in start-up. activity of XX% also load HFT say, half start-up as particularly, that to be fuel will to the that of maybe can second personnel X. of X, will same start-up, There in devoted the be there, kind devoted and Unit of overlap be So last

fuel we could October. take before a just let's So calendar. load have We've that suggested

starting would by -- showing up same that test calendar in that March. and the the functional you in If there, on we're X accelerate Page are freed to on January, half that personnel by somewhere the by that's could get you suggest would second hot So February, permit from X.

the March, is trying critical has path of of people to extent available we're start end think, we behind on X now. say is So X we prior mostly with at startup of the successful to to lot all the That functional indicate X. a prior I comments timing the is, our hot schedule sooner on really we're March, than to can do Page the X. what of the X to have And right or on testing timing accelerating

Nicholas Campanella

enough had down nailing quarter were in just I like sight comfortable of of Great. Okay. Yes. where like just I line wasn't if sure you you here. kind a

So...

Thomas Fanning

Well, I almost this way. mean it I describe

line of X. got I we on think sight

admit have they those you of reasonable reasonably that X. We think ranges. occur. I certainly comfortable developments X. now, variables keep of on we lots on we abreast as Right expectations we're there's within believe We'll the

improvement in We are on expecting X. an productivity

have be we'll watching quarter. We'll in certainly that So to that next very the about near term. say more

Nicholas Campanella

Okay. kind XXXX. talked to EPS Got $X gave it. you ranges, $X.XX you these And then of about also of when like in-service I guess in date

kind here the still that that today? end, guidance Now hold we're does of at

Daniel Tucker

the years but reason there's parts. were, we away, put because lot where X moving is are of a -- it there's we Look, Yes. was we and range, out a Nick,

interest So, around and inflation look, you happening see rates. what's

a was lot You recognized us. narrow see buttoned of And that that regulatory of up, uncertainty. get range we are. we'll to closer we things that those in got get We a significant XXXX, we've ahead and where exactly calendar as on there within

Thomas Fanning

think interest cost rates, call. it our Dan would the is that Yes. right Dan, we're to within see variables. The a within of But But change the economy, a see range. the now, interest of rate still say within But the don't parent. update we're range, where change, range. tell know guess, I within recession, reason I earnings any certainly year-end that we that and case, result mentioned, -- it costs host I that at you I anything still But a we biggest range. we'll we at of of But with the a the expectation as to we'll now. are everything do Georgia particularly

Operator

And we'll get next our Evercore to on from line Chopra Durgesh question is ISI. the with

Durgesh Chopra

little to wanted the a pick go I clean on just bit brain energy more a bill. for

sort of you as you, But talked can to far tax the I kind tax, XX% sort that. that, generally build for guys of like a for pay visually to are speaking. There's here to there's of utilities, oppose will. like of version you mean, I impact but obviously, no And for the credit direct I if back not look for bill. which minimum a see when through the the transmission compare investment material then utilities sort has you obviously, plan, lot is eligible better there's doesn't EEI of utilities, also this no So as have

influence chance of I'm this is industry Or here legislation? a wondering EEI of kind So the there broadly moving process quickly? the too or piece for just to certain that is

Thomas Fanning

giving say all mentioned a it's this question. I'm right? judgment think out -- complete Steven there, as And are to to I place. here, fact, that there I not My to you judgment still in so get Fleishman's been would response hard uncertainties

You don't have here. SALT relief in

still and each say else so that and are This would point, You talking finish as frame other don't unknowns people don't [indiscernible], a a thing This to bridge thing for we the we crosses something individuals and perfect this good, the in think, the is is great wanted the get across for us, wealthy I good. is I are think, are America. pretty Adding the opinion. line. have the far, in of it of people finish many broadly on get things here -- industry. to a line. surtax my I at There the can the many that let mind there this too of And the this in way the inside beltway with hope whether kind

Durgesh Chopra

you really the now decision can of milestones still filing? the kind final expecting Just for? there, a it. just watching rate Georgia investors on should case us and key then quickly, by And issues update Got the that year-end just be

Daniel Tucker

the a slide the in calendar any There of we Yes, don't process. ahead Durgesh, is to Slide XX. again, want deck, get of

really, So hearings. in by September. yes, with earnest will in the process a decision mid-September And start the expect still we

It's case. the a is say this only later. those XXXX, XXXX the capital thing of rate continuation reminder, of a lot is carrying Vogtle. I X rate think as is largely not same case forward. all other would years elements It initiatives the I just of It's a

Thomas Fanning

further benefits the What long et stressed warned of benefiting data the of been because regulatory continues secret of term cetera, climate NERC in the of And point. I long-term here the see report our the whether commission position others, system, flatter, would coming term weather no think customers tails our this duress the think, Having the a to our stability. look in with the in that growth relative the any environment beautifully. would the And in you're it the system of very we're constructive some Rivian lot centers don't and at change, respect United given are these projects, price, robust. future. having, United the change appear I'd development reference that economic excellent unusual of had be under and I it's this that of why kind by States Southeast. half industry why in then the that's reason of be company this because of And to I the to part add, decisions our Southeast has of price the given performed resilience past because States, energy and the of long economic big resilience,

Operator

Associates. Paul from next to get the Patterson we'll line our And question Glenrock on with

Paul Patterson

approach going here, I'm afraid Steve's following sort And if of to and Durgesh I'm possible. just be

PTC but to a a am I could how than bit you're some just it to you to mean all comments new happening broader little see on read tech, looked the actually logical I sense. troubled to a And that? what I nuclear you feeling Did get was legislative little it's -- sort makes plants? designed bit like and was that. me about -- the unable it elaborate I for there. think made wanted saying of what You you it better

Daniel Tucker

is Dan. Yes. Paul, this Again, this, so qualifying

BBB. understand in floor details, of and sets based an this As on high-level provisions it's the our nuclear for economic to similar plants. and get review XXX is pages through essentially The legislation

nuclear that something on costs unlikely plant And jurisdiction for a so you troubled constructive basis, its truly recovering regulated benefit financially regular a that's in and intended from a is it's when units. to have operates nuclear

Paul Patterson

be makes assume then And That all just am category you. Okay. -- the what other of a sense. idea. there? could better a mentioned within get that XX%, political ahead. I to the terms legislation, mechanics, missing just SALT something I corporations the just I'm applies all for wanted people I go you large that have the -- be am sorry, that mean, in I missing -- logical that, wondering, or to when or those or problem also that I And that and I am things did something

Thomas Fanning

you it's mean, I be us. making in that good you're will America No, point. a for I certainly There like don't think absolutely telling I'm people this. good

least see in. they and Well, has. people order impact a out to for, be the isn't we'll has think who in scorecard expect said NAM this already of and to us, -- for must kind I come really is the in positive if that Congress. weigh what you hurt And it good be It the some certainly at zero-sum it's manufacturing that of industry in in good and this. game will it

know. provide So if votes. don't headwinds by we're not I I see hurt will getting it's sway it to done. enough it people that some We'll other are. to expect it, fully

Operator

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

Thomas Fanning

made great not days, Yes. be wonderful matter had a My the these, progress next This done on isn't is months of X is a an in or quarter. exciting sense time, will We've ITAAC. it? weeks. We've

gun, a still not. improve reason believe that's soon the in electrical, have actually have have load. terminations the know necessary to work We'll so risk, particularly performance complete away. remove whether still But We in to to going a thing to deal we're that our forward is this performance will risk that We we that turn our fuel of not from great think, does done. to over poised particularly son mean happen. of and or to fuel look portfolio to true And I We to operations and that area. forth, reasonably expect

mentioned of rate look, think gives we including blessing problems our the performance flexibility can we've in to deal the future, as estimate, poised Dan over pressure. I well be. that as the own with $X.XX us So had to we're good the date, versus

the cards make like same here. you I relative cards have in of shown the bets, the I all the your robust So capital. Southeast that economy know economy. have and national of performance do allocating I like our we by terms to the are to to

I think capital the manner is allocation sense our from of model our own attractive. really to in going this business forward and

joining this for See afternoon. us in to you call October. So thank our soon. next you forward all Look

Operator

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

You disconnect. may now

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