Q2 2024 The Southern Co Earnings Call

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Shahriar: Good afternoon. My name is Shahriar, and I will be your conference operator today. At this time, I would like to welcome everybody to the Southern Company's second quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I would now like to turn the call over to Mr. Scott Gammill, Vice President, Investor Relations, and Treasurer. Please go ahead, sir.

Sharri: My name is Sharri, and I will be your conference operator today.

Sherry: Good afternoon, my name is Sherry and I will be your conference operator today. At this time, I would like to welcome everybody to the Southern Company's second quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise.

Sharri: At this time, I would like to welcome everybody to the Southern Company's second quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise.

Sharri: After the speaker's remarks, there will be a question-and-answer session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Speaker Change: After the speaker's remarks, there will be a question and answer session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I would now like to turn the call over to Mr. Scott Gammill, Vice President, Investor Relations and Treasurer. Please go ahead, sir.

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

Scott Gammill: Thank you, Sharri. Good afternoon and welcome to Southern Company's second quarter 2024 earnings call. Joining me today are Chris Womack, Chairman, President, and Chief Executive Officer of Southern Company, and Dan Tucker, Chief Financial Officer.

Scott Gammill: Thank you, Sherry. Good afternoon, and welcome to Southern Company's second quarter 2024 earnings call. Joining me today are Chris Womack, Chairman, President, and Chief Executive Officer of Southern Company, and Dan Tucker, Chief Financial Officer. Let me remind you we'll be making forward-looking statements today in addition to providing historical information. Various important factors could cause actual results to differ materially from those indicated in our forward-looking statements, including those discussed in our Form 10-K, Form 10-Q, and subsequent filings.

Speaker Change: Thank you, Sherry. Good afternoon and welcome to Southern Company's second quarter 2024 earnings call. Joining me today are Chris Womack, chairman, president, and chief executive officer of Southern Company, and Dan Tucker, chief financial officer.

Scott Gammill: Let me remind you we'll be making forward leaking statements today in addition to providing historical information. Various important factors could cause extra results to differ materially from those indicated in our forward-looking statements, including those discussed in our Form 10-K, Form 10-Q, and subsequent filings.

Speaker Change: Let me remind you, we'll be making forward-looking statements today, in addition to providing historical information.

Speaker Change: Various important factors could cause actual results to differ materially from those indicated in our forward-looking statements, including those discussed in our Form 10-K, Form 10-Q, and subsequent filings.

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

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

Speaker Change: In addition, we'll present non-GAAP financial information on this call.

Speaker Change: Reconciliations to the Applicable Gap Measure are included in the financial information we released this morning, as well as the slides for this conference call, which are both available on our Investor Relations website at investor.southerncompany.com. Now I'll turn the call over to Chris.

Chris Womack: Now I'll turn the call over to Chris. Thank you, Scott, and good afternoon, and thank you for joining us today. As you can see from the materials we released this morning, we reported strong, adjusted earnings results for the second quarter, meaningfully ahead of the estimate provided last quarter. We believe we're well positioned to achieve our financial objectives for 2024. All our businesses, electric and gas, are performing well, and we continue to see both economic resilience and economic growth, especially within our Southeast service territories. During the most recent heat wave across the Southeast, our dedicated employees, supported by our coordinated planning, ensured our electric system delivered outstanding reliability and resiliency for the customers and communities that we are privileged to serve.

Chris Womack: Thank you, Scott, and good afternoon, and thank you for joining us today. As you can see from the materials we released this morning, we reported strong adjusted earnings results for the second quarter, meaningfully ahead of the estimate provided last quarter. We believe we are well positioned to achieve our financial objectives for 2024 across all our businesses, electric and gas.

Chris: Thank you, Scott, and good afternoon and thank you for joining us today.

Chris: As you can see from the materials we released this morning, we reported strong adjusted earnings results for the second quarter, meaningfully ahead of the estimate provided last quarter.

Chris: We believe we are well positioned to achieve our financial objectives for 2024.

Chris Womack: Performing well, and we continue to see both economic resilience and economic growth, especially within our Southeast Service Territory. During the most recent heat wave across the Southeast, our dedicated employees, supported by our coordinated planning. Ensured that our electric system delivered outstanding reliability and resiliency for the customers and communities that we are privileged to serve. Last quarter represented the warmest second quarter in the last 38 years, with a peak electric load of over 38,000 megawatts, the third-highest June peak electric load on record for the Southern Company System.

Chris: All our businesses, electric and gas, are performing well, and we continue to see both economic resilience and economic growth, especially within our Southeast Service Territories.

Chris: During the most recent heat wave across the southeast, our dedicated employees, supported by our coordinated planning.

Chris: ensured our electric system delivered outstanding reliability and resiliency for the customers and communities that we are privileged to serve.

Chris Womack: Last quarter represented the warmest second quarter in the last 38 years, with a peak electric load of over 38,000 megawatts, the third highest June peak electric load on record for the Southern Company system. We take tremendous pride in our ability to reliably serve our customers through all operating conditions. Our performance continues to highlight the value of the integrated regulated framework in which we operate. Coordinating planning for generation and transmission, as well as our robust portfolio of natural gas transportation capacity and storage, have positioned us to effectively manage peak demand needs. This same framework, including our orderly internal and external regulatory processes for loan term demand planning and resource decisions, is what also positions us so well to reliably serve the significant electric load growth projected over the next decade.

Chris: Last quarter represented the warmest second quarter in the last 38 years.

Chris: with a peak electric load of over 38,000 megawatts, the third highest June peak electric load on record for the Southern Company system.

Chris Womack: We take tremendous pride in our ability to reliably serve our customers under all operating conditions. Our performance continues to highlight the value of the integrated, regulated framework in which we operate. Coordinating Planning for Generation and Transmission, as well as our robust portfolio of natural gas, transportation, capacity, and storage, have positioned us to effectively manage peak demand needs. This same framework, including our orderly internal and external regulatory processes for long-term demand planning and resource decisions, is what also positions us so well to reliably serve the significant electric load growth projected over the next decade, an opportunity we are excited about. Dan, I'll now turn the call over to you for a financial update.

Chris: We take tremendous pride in our ability to reliably serve our customers.

Chris: through all operating conditions.

Chris: Our performance continues to highlight the value of the integrated, regulated framework in which we operate.

Chris: coordinating planning for generation and transmission, as well as our robust portfolio of natural gas, transportation, capacity, and storage.

Chris: have positioned us to effectively manage peak demand needs.

Chris: This same framework, including our orderly internal and external regulatory processes for long-term demand planning and resource decisions, is what also positions us so well to reliably serve the significant electric load growth projected over the next decade.

Chris Womack: An opportunity we are excited about.

Dan Tucker: Dan, I'll now turn the call over to you for a financial update. Thanks, Chris, and good afternoon, everyone, for the second quarter of 2024. Our adjusted earnings per share was a dollar and ten cents per share, 31 cents higher than the second quarter of 2023 and 20 cents above our estimate. The primary drivers of our performance for the quarter compared to last year were continued investment in our state regular utilities and warmer than normal weather for our electric city areas. This was somewhat offset by higher interest and depreciation expenses.

Chris: an opportunity we are excited about.

Chris: Dan, I'll now turn the call over to you for a financial update.

Dan Tucker: Thanks, Chris, and good afternoon, everyone. For the second quarter of 2024, our adjusted earnings per share was $1.10 per share, $0.31 higher than the second quarter of 2023, and $0.20 above our. The primary drivers of our performance for the quarter compared to last year were continued investment in our state-regulated utilities and warmer than normal weather for our electric subsidiaries. This was somewhat offset by higher interest and depreciation. A complete reconciliation of year-over-year earnings is included in the materials we released this morning. Our adjusted EPS estimate for the third quarter is $1.30 per share.

Dan: Thanks, Chris, and good afternoon, everyone. For the second quarter of 2024, our adjusted earnings per share was $1.10 per share, 31 cents higher than the second quarter of 2023 and 20 cents above our estimate.

Dan: The primary drivers of our performance for the quarter compared to last year were continued investment in our state regulated utilities and warmer than normal weather for our electric subsidiaries.

Dan Tucker: A complete reconciliation of year-to-year earnings is included in the materials we released this morning. Our adjusted EPS estimate for the third quarter is a dollar 30 cents per share. As Chris noted, all of our businesses experienced a strong second quarter, leading to adjusted financial results meaningfully higher than our estimate of 90 cents per share. The warmer than normal weather in the second quarter contributed to these results, as well as our continued focus on managing operating costs. Additionally, during the second quarter, we experienced higher than expected weather-adjusted electricity sales in our commercial customer class. These higher sales were driven by a combination of continued strength in our local economies as well as increased usage by many of our existing data center customers.

Dan: This was somewhat offset by higher interest and depreciation expenses.

Dan: A complete reconciliation of year-over-year earnings is included in the materials we released this morning.

Dan: Our adjusted EPS estimate for the third quarter is $1.30 per share.

Dan Tucker: As Chris noted, all of our businesses experienced a strong second quarter, leading to adjusted financial results meaningfully higher than our estimate of $0.90 per share. The warmer than normal weather in the second quarter contributed to these results, as well as our continued focus on managing operating costs. Additionally, during the second quarter, we experienced higher than expected weather-adjusted electricity sales in our commercial customer class. These higher sales were driven by a combination of continued strength in our local economies, as well as increased usage by many of our existing data center customers.

Dan: As Chris noted, all of our businesses experienced a strong second quarter, leading to adjusted financial results meaningfully higher than our estimate of $0.90 per share.

Chris: The warmer-than-normal weather in the second quarter contributed to these results, as well as our continued focus on managing operating costs.

Chris: Additionally, during the second quarter, we experienced higher than expected weather-adjusted electricity sales in our commercial customer class.

Speaker Change: These higher sales were driven by a combination of continued strength in our local economies, as well as increased usage by many of our existing data center customers. In fact, sales to existing data centers for the quarter were up approximately 17% year-over-year.

Dan Tucker: In fact, sales to existing data centers for the quarter were up approximately 17% year-to-year. The strong southeast economy, including favorable business climates and expansions and manufacturing, continues to drive net in-migration and customer growth. For the second quarter, we saw residential customer additions of 14,000 in our electric businesses and 6,000 in our natural gas distribution businesses. We also continued to see strong economic development activity across our electric service territories. The aggregate pipeline for potential new industrial and commercial customers across our three-state electric utility footprint includes nearly 200 projects and over 30 gigawatts of potential load over the next decade or so.

Dan Tucker: In fact, sales to existing data centers for the quarter were up approximately 17% year-over-year. The strong Southeast economy, including favorable business climates and expansions and manufacturing, continues to drive net in-migration and customer growth. For the second quarter, we saw residential customer additions of $14,000 in our electric businesses and $6,000 in our natural gas distribution business.

Speaker Change: The strong Southeast economy, including favorable business climates and expansions in manufacturing, continues to drive net in-migration and customer growth.

Speaker Change: For the second quarter, we saw residential customer additions of 14,000 in our electric businesses and 6,000 in our natural gas distribution businesses.

Dan Tucker: We also continue to see strong economic development activity across our electric service territory. The aggregate pipeline for potential new industrial and commercial customers across our three-state electric utility footprint includes nearly 200 projects and over 30 gigawatts of potential load over the next decade or so. Well, it's likely these numbers include some degree of duplication as in potential projects as some prospective customers are evaluating multiple states that we serve for their facilities. However, these numbers are significantly higher than what we've seen historically.

Speaker Change: We also continue to see strong economic development activity across our electric service territories.

Speaker Change: The aggregate pipeline for potential new industrial and commercial customers across our three-state electric utility footprint includes nearly 200 projects and over 30 gigawatts of potential load over the next decade or so.

Dan Tucker: While likely these numbers include some degree of duplication as in potential projects, as some prospective customers are evaluating multiple states that we serve for their facilities, these numbers are significantly higher than what we've seen historically. About 40% of the projects in the pipeline and 80% of the potential electric load are data centers. In addition to data centers, clean energy and transportation manufacturing, port-related businesses and other heavy industries continue to be attracted to our states due to reliable energy, a diverse workforce, robust transportation networks and a low cost of living, all compelling reasons to locate or expand in our southeastern states.

Speaker Change: While it is likely these numbers include some degree of duplication in potential projects as some prospective customers are evaluating multiple states that we serve for their facilities.

Speaker Change: These numbers are significantly higher than what we've seen historically.

Dan Tucker: About 40% of the projects in the pipeline and 80% of the potential electric load are data centers. In addition to data centers, clean energy and transportation manufacturing, port-related businesses, and other heavy industries continue to be attracted to our states due to reliable energy, a diverse workforce, robust transportation networks, and a low cost of living.

Speaker Change: About 40% of the projects in the pipeline and 80% of the potential electric load are data centers.

Speaker Change: In addition to data centers, clean energy and transportation manufacturing, port-related businesses, and other heavy industries continue to be attracted to our states due to reliable energy, a diverse workforce.

Dan Tucker: All compelling reasons to locate or expand in our southeastern state. However, the potential load growth in this pipeline that is reflected in our forecast is currently only a fraction of this full potential. As a reminder, during our year-end earnings call in February, we updated our forecast to reflect projected retail electric sales growth that is expected to accelerate in the latter part of this decade, with a projected growth rate of approximately 6% from 2025 to 2028.

Speaker Change: robust transportation networks, and a low cost of living. All compelling reasons to locate or expand in our southeastern states.

Dan Tucker: The potential load growth in this pipeline that is reflected in our forecast is currently only a fraction of this full potential.

Speaker Change: The potential load growth from this pipeline that is reflected in our forecast is currently only a fraction of this full potential.

Dan Tucker: As a reminder during our year-end earnings call in February, we updated our forecast to reflect projected retail electric sales growth that is expected to accelerate in the latter part of this decade, with the projected growth rate of approximately 6% from 2025 to 2028. State. The underlying Georgia Power projected sales growth is approximately 9% over the same period. In response to this growth, Georgia Power filed and the Georgia Public Service Commission subsequently approved earlier this year, its 2023 Integrated Resource Plan update. Since the time of the original filing last year, Georgia Power's pipeline of potential large load additions by the mid-2030s has grown approximately 40%, and the amount of committed peak demand over the same time frame has more than doubled, now totaling over 7 gigawatts.

Speaker Change: As a reminder, during our year-end earnings call in February, we updated our forecast to reflect projected retail electric sales growth that is expected to accelerate in the latter part of this decade.

Speaker Change: with a projected growth rate of approximately 6% from 2025 to 2028.

Dan Tucker: The underlying Georgia power projected sales growth is approximately 9% over the same period. In response to this growth, Georgia Power filed and the Georgia Public Service Commission subsequently approved its 2023 integrated resource plan update since the time of the original filing last year.

Speaker Change: The underlying Georgia power projected sales growth is approximately 9% over this same period.

Speaker Change: In response to this growth, Georgia Power filed and the Georgia Public Service Commission subsequently approved, earlier this year, its 2023 Integrated Resource Plan update.

Chris Womack: Georgia Power's Pipeline of Potential Large Load Additions by the mid-2030s has grown approximately 40 percent, and the amount of committed peak demand over the same time frame has more than doubled, now totaling over 7 gigawatts. As we described in detail on our last earnings call, we continue to execute on our disciplined approach to attracting, serving, pricing, and forecasting this potential incremental electric load, and we continue to expect that our disciplined approach to pricing this new load should result in revenues that not only cover the incremental cost to serve these new customers but also provide economic benefits to existing customers. Chris, I'll now turn the call back over to you.

Speaker Change: since the time of the original filing last year.

Speaker Change: Georgia Power's pipeline of potential large load additions by the mid-2030s has grown approximately 40% and the amount of committed peak demand over the same time frame has more than doubled, now totaling over 7 gigawatts.

Dan Tucker: As we described in detail on our last earnings call, we continue to execute on our disciplined approach to attracting, serving, pricing, and forecasting this potential incremental electric load, and we continue to expect that our disciplined approach to pricing this new load should result in revenues that not only cover the incremental cost to serve these new customers, it also provides economic benefits to existing customers.

Speaker Change: As we described in detail on our last earnings call, we continue to execute on our disciplined approach to attracting, serving, pricing, and forecasting this potential incremental electric load.

Speaker Change: And, we continue to expect that our disciplined approach to pricing this new load should result in revenues that not only cover the incremental cost to serve these new customers, it also provides economic benefits to existing customers.

Chris Womack: Chris, I'll turn the call back over to you. Thanks, Dan. Southern Company remains focused on execution, and we're excited about the future. We believe we are well positioned to capture the value of the significant electricity demand for the benefits of all stakeholders. Our orderly and proven processes for engaging with prospective customers and for addressing resource needs with our regulators differentiates Southern Company from our peers and helps mitigate risk for our customers and our investors. Additionally, prospective electric customers are increasingly recognizing the value of our institutional experience and wherewithal. The value of the great states we operate in and the value of the vertically integrated regulated utility model.

Speaker Change: Chris, I'll now turn the call back over to you. Thanks, Dan.

Chris Womack: The company remains focused on execution, and we're excited about the future. We believe we are well positioned to capture the value of this significant electricity demand for the benefit of all stakeholders. Our orderly and proven processes for engaging with prospective customers and for addressing resource needs with our regulators differentiate Southern Company from our peers and helps mitigate risk for our customers and our investors. Additionally, prospective Electric customers are increasingly recognizing the value of our institutional experience and wherewithal. The Value of the Great States We Operate in and The Value of the Vertically Integrated Regulated Utility Model

Chris: Southern Company remains focused on execution, and we're excited about the future.

Chris: We believe we are well positioned to capture the value of this significant electricity demand for the benefits of all stakeholders.

Chris Womack: Before taking your questions this afternoon, I'd like to take a moment to recognize the hundreds of team members from Alabama Power, Georgia Power, and Mississippi Power, who recently returned home after aiding in power restorations in Texas following the devastation caused by Hurricane Barrel. These teams and others from across our industry work tirelessly to bring relief to affected communities, and their performance throughout the successful restoration effort stands as a testament that our employees are at their very best when conditions are at their worst. Let me conclude by saying, we have delivered very strong operational and financial results for the first half of this year.

Chris Womack: Before taking your questions this afternoon, I'd like to take a moment to recognize the hundreds of team members from Alabama Power, Georgia Power, and Mississippi Power who recently returned home after aiding in power restorations in Texas following the devastation caused by Hurricane Beryl. These teams, along with others from across our industry, They work tirelessly to bring relief to affected communities, and their performance throughout the successful restoration effort stands as a testament that our employees are at their very best when conditions are at their worst.

Chris Womack: Let me conclude by saying that we have delivered very strong operational and financial results for the first half of this year. We will remain focused on continuing to execute on our plan, and we believe that we are extraordinarily well positioned to deliver the superior performance that you expect from us for the remainder of the year. Operator, we're now ready to take your questions.

Chris Womack: We will remain focused on continuing to execute on our plan, and we believe that we are extraordinarily well positioned to deliver the superior performance that you expect from us for the remainder of the year.

Sharri: Operator, we're now ready to take your questions. Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue, and for part two.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we pull for questions. Our first question is from Carly Davenport with Goldman Sachs. Please proceed.

Sharri: Dispenshusing speaker equipment, and maybe necessary to pick up your handset before pressing the start keys. One moment at what we pull for questions.

Carly Davenport: Our first question is from Carly Davenport with Goldman Sachs. Please proceed. Hey, good afternoon. How are you? Thanks so much for taking the questions. Maybe just to start on the quarter itself, I guess just with the significant beat relative to your initial 90 cents guidance, sort of how are you thinking about the puts and takes around the full year guidance and your execution there at this point?

Speaker Change: Our first question is from Carly Davenport with Goldman Sachs. Please proceed.

Carly Davenport: Hey, good afternoon. How are you? Thanks so much for taking the questions. Maybe just to start on the quarter itself, I guess just with the significant beat relative to your initial 90 cents guidance, sort of how are you thinking about the puts and takes around the full year guidance and your execution there at this point?

Speaker Change: Hey, good afternoon colleagues.

Speaker Change: How are you. Thanks, so much for taking the questions maybe.

Carly Davenport: Maybe just to start on the quarter itself I guess, just with the significant beat relative to your initial 90 cents guidance sort of how are you thinking about the puts and takes around the full year guidance and your execution there at this point.

Chris Womack: Look, we're always very cautious. While we're halfway through the year, there's a lot of year left to go. And in particular with our elected utilities being in the Southeast, the summer is a pretty big period from a revenue perspective.

Unknown Executive: Look, we're always very cautious this time of year; while we're halfway through the year, there's a lot of the year left to go. And in particular, with our electric utilities being in the southeast, the summer is a pretty big period from a revenue perspective.

Look we're always very cautious this even while we're halfway through the year. There's a lot of year left to go and in particular with our electric utilities being in the southeast that the summer is a pretty big period from a revenue perspective. So we typically kind of hone in on a more specific ed.

Chris Womack: So we typically kind of hone in on a more specific expectation after our third quarter call. That said, to your point, we are incredibly well positioned. We're off to a great start. And what we also have a history of doing is really taking that kind of opportunity and doing anything and everything that we can to not only deliver on the current year, but use that as an opportunity to improve our positioning for future years. So that might look like advancing maintenance work out of future years into 2024 or getting ahead on other programs. There are reliability reserves.

Carly Davenport: Expectation.

Unknown Executive: So we typically kind of hone in on a more specific expectation after our third quarter call. That said, to your point, we are incredibly well positioned, and we're off to a great start. And what we also have a history of doing is really taking that kind of opportunity and doing anything and everything that we can to not only deliver on the current year but use that as an opportunity to improve our positioning for future years.

Carly Davenport: After our third quarter call that said to your point, we are incredibly well positioned we're off to a great start and what we also have a history of doing is really taking that kind of opportunity and doing anything and everything that we can to not only deliver on the current year, but use that as an opportunity.

Carly Davenport: To improve our positioning for future years, so that might look like advancing maintenance work out of future years into 'twenty 'twenty four or getting ahead on on other programs are.

Unknown Executive: So that might look like advancing maintenance work out of future years into 2024 or getting ahead on other programs. There are reliability reserves we have the opportunity to kind of optimize in some of our states. And so, with our position working hard to do all those things focus on this year but focus on the long term. But, you know, all that to say, given how we started, if we, you know, don't end up in the top half of our range, I think Chris and I would be disappointed.

Carly Davenport: Reliability reserves, we have the opportunity to kind of optimize in some of our states.

Chris Womack: We have the opportunity to kind of optimize in some of our states. And so with how we're positioned, working hard to do all those things, focus on this year, but focus on the long term. But all that to say, given how we started, if we don't end up in the top half of our range, I think Chris now would be disciplined.

Carly Davenport: And so with how we're positioned working hard to do all of those things focus on this year, but focus on the long term, but you know all that to say given how we started if we.

Kristen: Don't end up in the top half of our range I think Kristen I'd be disciplined, but I think that I think as we say internally a lot.

Unknown Executive: But I think, Dan, as we say internally a lot, when we have the opportunity to fix the roof while the sun is shining, and so thinking about 24 and 25 and 26, those are some things we'll consider as we continue to move forward through this year.

Chris Womack: But I think, Dan, I think, as we say internally a lot, when we have the opportunity to fix the roof by the sun is shining. And so thinking about 24 and 25 and 26, those are some things we'll consider as we continue to move forward through this year.

Carly Davenport: Great. I appreciate that color.

Chris Womack: And then the follow-up, just would love to get your perspectives on nuclear as it continues to gain focus here. I guess, what do you think the industry needs to do to support the build out of new large scale nuclear plants? And as you think about the 2025 Georgia IRP filing, is there any potential to see nuclear play a role there?

Kristen: Great I appreciate that color and then the follow up just would love to get your perspectives on nuclear as it continues to gain focus here I guess, what do you think the industry needs to do to support the build out of new large scale nuclear and as you think about the 2025, Georgia ERP filing is there any potential to see nuclear.

Carly Davenport: And then the follow-up just would love to get your perspectives on nuclear as it continues to gain focus here.

Carly Davenport: I guess what do you think the industry needs to do to support the build-out of new large-scale nuclear. And as you think about the 2025 Georgia IRP filing, is there any potential to see nuclear play a role there?

Kristen: Play a role there.

Chris Womack: Carly, I mean, I think the industry has got to continue to do all the planning, all the reviews, working with industries to look at what all the possibilities may be. I think to ultimately get that deal that and get the momentum we've got to have incredible leadership from the government to make this a reality. We know they're risk, and I think we all must find ways, and I think support from the government can help mitigate some of that risk. So I think that is the critical element in terms of really gaining the momentum to build on what we got done by completing over units three and four.

Chris Womack: Carly, I think the industry has got to continue to do all the planning, all the reviews, working with industries to look at what all the possibilities may be. I think to ultimately get that build out and get the momentum, we've got to have incredible leadership from the government to make this a reality. We know their risk.

Speaker Change: Currently I mean, I think the industry has got to continue to do all the planning all the reviews working with industries to look at what are the possibilities may be I think to ultimately get that do that and get the momentum we've got to have incredible leadership from the government.

Kristen: To make this.

Kristen: Our our reality, we know their risk and I think we all must find ways in and I think support from the government can help mitigate some of that risk. So I think that is the critical element in terms of really gaining the momentum to to build on what we got done by completing both units three and four.

Chris Womack: And I think we all must find ways, and I think support from the government can help mitigate some of that risk. So I think that is the critical element in terms of really gaining the momentum to build on what we got done by completing vocal units three and four. I think it's got to be a part of the future. It's got to be part of the mix. We have got to have diverse resources to meet this demand we see going forward.

Chris Womack: I think it's got to be a part of the future. It's got to be a part of the mix. We got to have diverse resources to meet this demand. And we see going forward, and nuclear's got to play a very prominent part in that role. But I think there's got to be and needs to be great leadership from the government to really kind of help build the momentum that we need to see.

Kristen: It's got to be a part of the future is going to be part of the mix, we got to have diverse resources ought.

Chris Womack: And Nucla's got to play a very prominent part in that role. But I think there's got to be and needs to be great leadership from the government to really kind of help build the momentum that we need to see. I mean, I'll leave it at that.

Kristen: To meet this demand, we see going forward and nuclear Guy to play a very prominent part in that in that role, but I think there's gotta be and needs to be great leadership from the government to really kind of helped build that momentum that that I that we need to see I mean I'll leave it at that.

Carly Davenport: I mean, I'll leave it at that. Thank you so much for the comments.

Carly Davenport: Thanks so much for the comments.

Speaker Change: Great. Thanks, so much for the comments.

Shar Pourreza: Our next question is from Shar Pourreza with Guggenheim Partners. Please proceed. What's up, Shar? How are you doing, guys? Good, how are you doing, Griff? You doing great, man? Excellent.

Shar Pourreza: Our next question is from Shar Pourreza with Guggenheim Partners. Please proceed.

Our next question is from Shire Perez with Guggenheim Partners. Please proceed.

Shire Perez: Whatsapp show how are you doing guys good.

Shar Pourreza: What's up, Shah? How are you doing, man? Hey, guys. Good. How are you?

Shar Pourreza: Good. How are you doing, Chris? Great, man. Excellent. So Dan, I can maybe do a quick one for Dan.

Shire Perez: Good How're you doing Chris.

Great Man.

Dan Tucker: Dan, I can totally appreciate the conservativeness and sort of how you're messaging around this year. But, obviously, like, we are seeing, you know, much stronger. The reality of your sort of your footprint is much stronger than your planning assumptions, right? And I know you've talked about in the past that maybe you can provide an update in the fourth quarter or potentially EI time frame of what all this kind of means to your longer-range guidance. I guess, what other trigger points are you looking for outside of sustainability around this load backdrop to really revisit how you guys think about a longer-range plan?

Shire Perez: Excellent.

Shar Pourreza: So, Dan, I can maybe quick one for Dan. Dan, I can totally appreciate the conservativeness and sort of how you're messaging around this year. But obviously, we are seeing much stronger; the reality of your footprint is much stronger than kind of your planning assumptions, right? And I know you've talked about in the past that maybe you can provide an update in the fourth quarter or potentially E.I. timeframe of what all this kind of means to your longer range guidance.

Dan: And then I can maybe quick one for Dan Dan I can totally appreciate the conservatism and sort of how your messaging around this year, but like obviously like we are seeing.

Speaker Change: Much stronger the reality of just sort of your footprint is much stronger than kind of your planning assumptions right and I know you've talked about in the past.

Speaker Change: That may be you can provide an update in the fourth quarter or potentially EI timeframe of what all this kind of means to your longer range guidance I guess, what other trigger points are you looking for outside of sustainability around this load backdrop to really revisit how you guys think about a longer range.

Dan Tucker: I guess, what other trigger points are you looking for outside of sustainability around this loadback? What's the backdrop to really revisit how you guys think about a longer range plan? Sure, I think it does, you know, and I know you said besides sustainability, but it really is rooted in that notion of continued momentum. Look, I think we feel good about what we know and see right in front of us. And that's a large part of what we addressed in this recent Georgia proceeding. We've got the 2025 RRP ahead of us that will provide an opportunity to kind of further button up the latter part of the decade into the next decade.

Speaker Change: <unk>.

Speaker Change: Okay.

Dan Tucker: Char, I think it does. You know, and I know you said besides sustainability, but it really is rooted in that notion of continued momentum. Look, I think we feel good about what we know and see right in front of us, and that's a large part of what we addressed in this recent Georgia proceeding. We've got the 2025 IRP ahead of us that will provide an opportunity to kind of further button up the latter part of the decade and into the next decade for, again, what we kind of know sitting here today.

Speaker Change: So I think it does yeah, and I know you said besides sustainability, but it really is rooted in that notion of continued momentum.

Speaker Change: I think we feel good about.

Speaker Change: What we know and see right in front of us and that's a large part of what we addressed in this recent Georgia proceeding we've got the 2025. Our P ahead of us that will provide an opportunity to kind of further button up the latter part of the decade and into the next decade for for again, what we kind of know sitting here today the.

Dan Tucker: And again, what we kind of know sitting here today, the opportunity, and it certainly feels like there is continued increase momentum. The opportunity is that, assuming that continues, there will inevitably be more capital investment needed to serve continued load growth. Whether that's in the form of new generation resources, certainly transmission improvements around the system. But the thing I want to balance all of that with, and I think we've continued to say that this is really a later-in-the-decade phenomenon. This is not a 25 thing. This is starting to bleed into 26, but because of the long-term nature of these capital investments, because of the long-term nature of building out these data centers, this is an opportunity that sustains beyond the current forecast period, the kind of financial profile and strength that we see.

Dan Tucker: The opportunity, and it certainly feels like there is continued increased momentum, is that, assuming that continues, there will inevitably be more capital investment needed to serve continued load growth, whether that's in the form of new generation resources, certainly transmission improvements around the system, and, but I, the thing I want to balance all of that with, and I think we've continued to say this, This is really a later in the decade phenomenon.

Speaker Change: Entity and it certainly feels like there is continued increase momentum the opportunity is that.

Speaker Change: Assuming that continues there will inevitably be more capital investment needed to serve continued load growth.

Speaker Change: Whether that's in the form of new generation resources, certainly transmission improvements are around the system.

Speaker Change: And but the thing I want to balance all of that with them and we've I think we've continued to say that.

Dan Tucker: This is not a 25 thing. This is starting to bleed into 26. But because of the long-term nature of these capital investments, because of the long-term nature of building out these data centers, this is an opportunity that sustains beyond the current forecast period the kind of financial profile and strength that we see.

Speaker Change: This is really a later in the decade phenomenon. This is not a.

Speaker Change: Twenty-five thing this is starting to bleed into 'twenty, six but because of the long term nature of these capital investments because of the long term nature of building out these data centers.

Shar Pourreza: Okay, I got it. That's helpful.

Speaker Change: This is a.

Speaker Change: This is an opportunity that sustains beyond the current forecast period, the kind of financial profile and strength that we see.

Chris Womack: And then maybe just Chris, on your end, I know obviously, we've got a Georgia GRC coming. It's going to come sooner than we think. There's been some noise around sort of ROEs and equity ratios, maybe being overly adequate. Now that Vogel is online from just some of the commissioners, can you maybe just talk this through a bit? Is this going to be an issue as you prep for the case? Have you begun discussions with stakeholders ahead of this filing? Thanks.

Shar Pourreza: Okay, got it. That's helpful.

Speaker Change: Okay.

Speaker Change: Got it that's helpful and then maybe just Chris.

Chris Womack: And then maybe just Chris on your end. I know obviously we've got a Georgia GRC coming. It's going to come sooner than we think. There's been some noise around sort of ROEs and equity ratios, maybe being overly adequate. Now that Vogel is online from just some of the commissioners, can you maybe just talk this through a bit? Is this going to be an issue as you prep for the case? Have you begun discussions kind of with stakeholders ahead of this filing? Thanks. And sure, you know, I mean, there's always conversations about those matters as we go through those proceedings.

Speaker Change: On your and I know, obviously, we've we've got a Georgia <unk> coming it's going to come sooner than we think there's been some noise around sort of ROE and equity ratios may be being overly adequate now that Vogel is online from just some of the commissioners can you maybe just talk us through a bit is this going to be an issue.

Speaker Change: Prep for the case have you begun discussions kind of with stakeholders ahead of this filing thanks.

Chris Womack: And sure, you know, man, there's always conversations about those matters as we go through those proceedings. And so I would not, you know, I would not be surprised.

Speaker Change: I'm, sorry, you're not I mean, there's always conversations about those matters as we go through those proceedings and so.

Chris Womack: And so I would not, you know, I would not, you know, be surprised. I mean, we always have good deliberations about those issues in terms of where we are. And recognizing the level of service that we provide and the premium nature of how we run this business. Davis, I mean, equity ratio also came from a tax reform issue, not just from Vogel. I mean, so there are a lot of implications. And so, as usual, as we go through 25, all of these issues, I think, will be thoroughly vetted and thoroughly debated, recognizing also, once again, as I said, recognizing how we perform as a company.

I would not you know.

Chris Womack: I mean, we always have good deliberations about those issues in terms of where we are and recognizing the level of service that we provide and the premium nature of how we run this business. The equity ratio also came from a tax reform issue, not just from Vogel. I mean, there are a lot of implications. And so, as usual, as we go through 25, all of these issues will be thoroughly vetted and thoroughly debated, recognized, and also, once again, as I said, recognizing how we perform as a company.

Speaker Change: I would not.

Speaker Change: Be surprised I mean, we always have good deliberations about those issues in terms of where we are and recognizing the level of service that we provide and the premium nature of how we how we run this business.

Speaker Change: I mean equity ratio.

Speaker Change: Also came from a tax reform issue not just from Bogo I mean, so there are a lot of implications and so as usual as we go through 25 all of these issues I think will be thoroughly vetted and thoroughly debated are recognizing also once again as I say, recognizing how we perform as a company.

Dan Tucker: Got it. The equity ratio kind of changes were broad base, right? This is not just a Georgia conversation. It was in all of our states, and Chris made a point. That was for tax reform. It was coincidentally, during the construction of Vogel, but had nothing to do with the Vogel construction itself. So, unless there's some major change to tax policy that has implications, I think that, you know, defending that is where we will start from. Okay.

Dan Tucker: Got it. The equity ratio kind of changes were broad based, right? This is not just a Georgia conversation. It happened in all of our states. And Chris made the point that it was for tax reform. It happened coincidentally during the construction of Vogel Center but had nothing to do with the Vogel construction itself. So unless there's some major change to tax policy that has implications, I think that, you know, defending that is where we will start from.

Speaker Change: Got it.

Chris: The equity ratio kind of changes were broad based sorry. This is not just a GA conversation. It was in all of our states and Chris made the point that was for tax reform. It was coincidentally during the construction of Vogel, but had nothing to do with the vogtle construction itself. So unless there is some.

Chris: Major change to the tax policy that has implications.

Speaker Change: The defending that is where we will start from.

Shar Pourreza: Okay, that's helpful. Thank you so much, Dan, and Chris. We'll see you soon. Thanks for your hope, too.

Speaker Change: Okay. That's helpful. Thank you so much Dan Chris we'll see you soon.

Shar Pourreza: That's helpful.

Shar Pourreza: Thank you so much, Dan. Chris, we'll see you soon. Thanks, y'all.

Chris: Thanks, sure I hope too.

Unknown Executive: Hope to.

Unknown Executive: Our next question is from Julian Domolyn Smith with Jeffries. Please proceed. Julian. Are you there, Julian? Yeah, oh, hey, how are you guys doing? Sorry, I was on mute there. Hey, Julian, how are you, man? How are you? Yeah, good, good. Pleasure, guys. Thank you. Hey, congratulations on your child. All right. Thank you so much. I appreciate it. It's been a busy month. All right. I got to tell you. Hope to get some hope to get into some sleep. One of these days, it's like getting this lunchtime.

Julian: Our next question is from Julian.

Speaker Change: Our next question is from Julien Dumoulin Smith with Jefferies. Please proceed.

Speaker Change: Julian.

Julien: Hi, there Julien.

Julian: Yeah, oh, hey, how are you guys doing? Sorry, I was on mute there. Hey, Julian. How are you, man?

Julien: Yeah, Hey, guys doing sorry, I was on mute there Hey, Julien.

Yeah.

Speaker Change: Are you get good Pleasant Guy.

Julian: Good. Pleasure, guys. Absolutely. Doing well. Thank you.

Speaker Change: Well thank you.

Speaker Change: Congratulations on your Chow.

Julian: Alright, thank you so much. I appreciate it. It's been a busy month, alright. I gotta tell you. Hope you're getting some sleep one of these days. Seriously, getting this lunch done.

Julien: Thank you so much I appreciate it it's been a busy month alright, I got it that helps again some again some sleep.

Dan Tucker: Look, speaking of having the sun shining, you guys are starting the year off pretty well. It's nice to see. Maybe to turn that into a specific question, you know, you've got this $1.30 out there just to kick it off. You've probably seen some continuation of that good weather from 2Q into 3Q. Is that already reflected in that $1.30, or is there some more upside there? Because you already had $0.10 versus normal in the second quarter?

Julien: One of these days.

Julien: Getting this last time.

Speaker Change: [laughter] Luke if they can have a speaking of having the Sunshine and you guys just starting the year off pretty well, it's a it's nice to see caught maybe turning that into a specific question. You know you've got this dollar 30 out there just to kick it off you've probably seen some continuation of that good weather from QQ and that <unk> is.

Julian Domolyn Smith: Look, speaking of speaking of having the sunshine. You guys just starting the year off pretty well. It's nice to see. Maybe to turn it into a specific question. You know, you've got to stop this dollar 30 out there just to kick it off. You've probably seen some continuation of that good weather from 2Q into 3Q. Is that already reflected in that dollar 30, or is there? Is there some more upside there? Because you already had 10 cents versus normal in the second quarter. So what we would typically do, Julian, and what we've certainly done in this case, is put out a quarterly estimate that is weather normal.

Speaker Change: That already reflected in that down at 30 or is there. There's some more upside there because you already had 10 cents versus normal in the second quarter.

Dan Tucker: So what we would typically do, Jillian, and what we've certainly done in this case is put out a quarterly estimate that is weather-normal. You know, there are always at least two months left in the quarter when we put these out. And just anecdotally, I would say, I think this is the first day in about three weeks that it hasn't rained here in Atlanta. So I'm not so sure that July has looked like it did in June.

Speaker Change: And so what we would typically do Jillian and what we've certainly done in this case has put out a quarterly estimate that is whether normal you know theres always still at least two months left in the quarter. When we put these out and just anecdotally I would say I think this is the first day in about three weeks that it hasn't rained here in Atlanta, So I'm not so sure.

Chris Womack: You know, there's always still at least two months left in the quarter when we put these out. And just anecdotally, I would say, I think this is the first day in about the three weeks that it hasn't rained here in Atlanta. So I'm not so sure that July has looked like June to. Sounds like Texas. That's right.

Speaker Change: That July has looked like looked like June did.

Dan Tucker: Sounds like Texas, as far as rank goes. Anyway, just to keep going on that, in terms of the backdrop of the low growth, and I just want to make sure I'm hearing you clearly on this, right, the 17% is phenomenal on the data center low growth. How do you think about that number in terms of the medium and longer term? Right, you've obviously provided some very healthy longer-term low growth. Should we expect that to continue to compound kind of consistently through the period here?

It sounds like Texas.

Speaker Change: Fox Raker.

Chris Womack: Anyway, just to keep going on that in terms of the backdrop of the logo. I just want to make sure I'm hearing clearly on this, right? The 17% is phenomenal on the data center. How do you think about that number in terms of the medium and longer term, right? You've obviously provided some very healthy longer term logo numbers. Should you expect that to continue to compound kind of consistently through the period here? Or to what extent actually could we see an acceleration of that number here? I mean, you know, there's a lot of talk about building infrastructure.

Speaker Change: Anyway.

Speaker Change: Just to keep going on that.

Speaker Change: In terms of the backdrop with the longer I think I just want to make sure I'm hearing you clearly on this right. The 17% is phenomenal on the data center how.

Speaker Change: How do you think about that number in terms of the medium and longer term.

Speaker Change: Rather than very healthy longer term.

Speaker Change: Is it should we expect that to continue to compound.

Speaker Change: Great.

Dan Tucker: Or to what extent could we actually see an acceleration of that number here? I mean, you know, there's a lot of talk about building infrastructure, but you guys are experiencing it in a much more tangible way than perhaps some of your peers.

Speaker Change: To what extent actually could we see an acceleration of that number here I mean, there's a lot of talk about building infrastructure. When you guys are realizing it into much more tangible way than perhaps some of your peers.

Chris Womack: But you guys are realizing it in a much more tangible way than perhaps some of your peers.

Chris Womack: Great question. So let me just kind of clarify the dynamics that are happening. That 17% that we referred to is existing data centers that are on the ground, have been on the ground. And they're either in the process of ramping to their full load. Or, in some cases, what we believe is also happening is some of these are actually improving the technology in the data centers with not only increasing processing capabilities, but that's also utilizing a little bit more electricity in the process. What will happen going forward while this dynamic will be there? You know, this is a small component of our overall commercial sales today.

Dan Tucker: Great question. So let me just kind of clarify the dynamics that are happening. That 17% that we referred to is existing data centers that are on the ground, have been on the ground, and they're either in the process of ramping up to their full load, or in some cases, what we believe is also happening is some of these are actually improving the technology in the data centers with, you know, not only increasing processing capabilities, but that's also utilizing a little bit more electricity in the process.

Speaker Change: Great question. So let me just kind of clarify the dynamics that are happening that 17% that we referred to is existing data centers that are on the ground and have been on the ground in there either in the process of ramping to their full load or in some cases what.

Speaker Change: We believe is also happening is some of these are actually improving the technology in the data centers with not only increasing processing capabilities, but that's also utilizing a little bit more electricity in the process what will happen going forward. While this dynamic will be there you know this is a small component.

Speaker Change: Our overall commercial sales today.

Chris Womack: The everything we've been talking about in terms of what drives that 6% sales growth from 25 to 28, you know, 9% at Georgia Power. Those are new data centers. And so it will be a significant acceleration that begins to happen and that, you know, 26, 27, 28 time frame and beyond as these data centers are completed and they too will have their own ramp-ups to the point where overall commercial sales growth implicit in that 6% will be in the double digits. But the point is, you know, all 17% looks phenomenal, so you've just been based; they're so anxious, obviously accentuated in 26 hours.

Dan Tucker: What will happen going forward while this dynamic is there, you know, this is a small component of our overall commercial sales today. Everything we've been talking about in terms of what drives that 6% sales growth from 25 to 28, you know, 9% at Georgia Power, those are new data centers. And so there will be a significant acceleration that begins to happen. And, you know, the 26, 27, 28 timeframe and beyond, as these data centers are completed, and they, too, will have their own ramp-ups to the point where overall commercial sales growth implicit in that 6% will be

Everything we've been talking about in terms of what drives that 6% sales growth and 25 to 28, 9% at Georgia power those are new data centers and so it will be a significant acceleration that begins to happen and that you know.

Speaker Change: 26, 27, 28 timeframe and beyond as these data centers are completed and they too will have their own ramp ups are to the point, where overall commercial sales growth implicit in that 6% will be in the double digits.

Speaker Change: Right.

Dan Tucker: Right. But the point is, you know, while 17% looks phenomenal off the existing base, the acceleration is obviously accentuated at 26%, and we did see continued ramping of the existing base in 2016.

Speaker Change: You know all 17% looks the novel things.

Speaker Change: The acceleration obviously excel.

Speaker Change: Accentuated in 'twenty six okay.

Chris Womack: And we can see continued ramping of these existing days in 25. It will become a bit...

Speaker Change: And we can see continued ramping of existing base in 'twenty five.

Julian: It will It will become a bit.

Speaker Change: It will it will become a bit.

Unknown Executive: Excellent.

Julian: Excellent. All right, guys. I'll leave it there. Thank you.

Speaker Change: Excellent alright, guys I'll leave it there thank you.

Unknown Executive: Alright guys, I'll leave it there. Thank you.

David Arcaro: Thank you, Julien. Our next question is from David Arcaro with Morgan Stanley. Please proceed. Hey, thanks so much for taking my question.

Julien: Thank you Julien.

David Arcaro: Our next question is from David Arcaro with Morgan Stanley. Please proceed.

Speaker Change: Our next question is from David Arcaro with Morgan Stanley. Please proceed.

David Arcaro: Hey, thanks so much for taking my question. Good afternoon. Good afternoon, David.

Speaker Change: Hey, Thanks, so much for taking my question. Good afternoon, good afternoon David.

David Arcaro: Good afternoon, David. You know, a great commentary here just on the load growth that you're seeing in data center commentary. Are you tracking ahead of that 6% assumption? I feel like things are pretty fluid and moving quickly. Are there indications that it could be stronger from here? I think given how the pipeline is evolving, there are indications the long term could certainly be stronger. So again, we're talking into the decade, into the 2030s. The way that is building in the momentum is very promising in terms of the very near term, David. You know, like the 17% we're just talking about.

David Arcaro: You know, a great commentary here, just on the load growth that you're seeing in data center commentary. Are you tracking ahead of that 6% assumption? I feel like things are pretty fluid and moving quickly. Are there indications that it could be stronger from here?

Speaker Change: You know at a great commentary here just on the load growth that youre seeing in data center commentary.

David Arcaro: Are you tracking ahead of that 6% assumption I feel like things are pretty fluid and moving quickly are there indications that it could be stronger from here.

Dan Tucker: I think given how the pipeline is evolving, there are indications the long term could certainly be stronger. So again, we're talking into the decade into the 2030s. The way that is building and the momentum is very promising in terms of the very near term, David, you know, like the 17% we're just talking about, even if that swings a little bit. It's such a small piece today; it's not going to have a meaningful impact on current results. It really is about the capital being deployed in the big, hyperscale data centers that are due to be online a little bit here in a few years.

David Arcaro: I think given how the pipeline is evolving their indications the long term could certainly be stronger. So again, we're talking into the decade into the 20 thirties.

David Arcaro: <unk> that is building the momentum is very promising in terms of the very near term. David you know like this 17% were just talking about.

David Arcaro: Even if that swung a little bit, it's such a small piece today. It's not going to have a meaningful impact on current results. It really is about the capital being deployed in the big, hyperscale data centers that are due to be online a little bit. And here in a few years.

David Arcaro: Even if that.

David Arcaro: Swung a little bit it's such a small piece today, it's not going to have a meaningful impact on kind of current results. It really is about the capital being deployed in the big Hyperscale data centers that are due to be online a little bit in here in a few years.

David Arcaro: Yep, got it. That makes sense. And I was thinking about the load growth overall.

Chris Womack: Yep, got it. That makes sense. And I was thinking about the load growth. Overall, and let's see the other item, the other item I just wanted to check on, there was a valve issue at Vogel 3 recently. Just wondering if you had any feedback on that, kind of the extent of that issue, and anything else to watch for.

Speaker Change: Yep got it that makes sense and I was I was thinking about the load growth.

Speaker Change: Overall, and let's see the other.

Dan Tucker: And let's see, the other item I just wanted to check on: there was a valve issue at Vogel 3 recently. Just wondering if you had any feedback on that, kind of extent of that issue, in anything else to watch for there. Yeah, no, they worked through that issue, and the unit is now back online. And Vogel 3 has operated more than 98% capacity factor over the period.

Speaker Change: The other item I just wanted to check on that there was a valve issue at Vogtle. Three recently just wondering if you had any feedback on that are kind of the extent.

Of that issue and anything else to watch for there.

Chris Womack: Yeah, no, they're working through that issue, and the unit is now back online, and Vogel 3 has operated more than 98% of its capacity factor over the period. So those things will happen with new units, but we're very pleased with the performance of Vogel 3 and Vogel 4.

Speaker Change: Yes no.

Speaker Change: They worked through that issue and the unit is now back online.

Speaker Change: And well go three as operator more than 98% capacity factor over the period. So those things will happen with new units, but we're very pleased with the performance of volt three and Vogel for.

Dan Tucker: So those things will happen with new units, but we're very pleased with the performance of Vogel 3 and Vogel 4. Yep, okay, great.

David Arcaro: Yeah, okay, great. Thanks so much. I'll leave it there.

Speaker Change: Yeah, Okay, great. Thanks.

David Arcaro: Thanks so much; I'll leave it there.

Speaker Change: Thanks, so much I'll leave it there.

Unknown Executive: Our next question.

Steve Fleishman: Our next question is for Steve Fleishman with Wolf Research. Please proceed.

Speaker Change: Our next question.

Steve Fleshman: Next for Steve Fleshman with Wolf Research, please proceed. Hey Steve, good afternoon.

Speaker Change: Steve Fleishman with Wolfe Research. Please proceed.

Steve Fleishman: Steve. Hi, good afternoon. Hi, Chris.

Speaker Change: Hi, Steve Hi, good afternoon.

Steve Fleshman: Hi Chris. First, just wanted to clarify on the data centers. So I think on the Q1 call, you gave a number of pipeline of 21 gigawatts, firm commitment of 6.2 gigawatts.

Steve Fleishman: Hi, Chris.

Steve Fleishman: First, just wanted to clarify on the data center. So I think on the Q1 call, you gave a number of pipeline gigawatts, a firm commitment of 6.2 gigawatts. [inaudible] by the mid-2030s, is it?

Steve Fleishman: First just I just.

Speaker Change: I just wanted to clarify on the data centers. So I think on the Q1 call.

Speaker Change: You gave a number of pipeline.

Speaker Change: Of 21 Gigawatts.

Speaker Change: Firm commitment of 6.2 Gigawatts.

Speaker Change:

Speaker Change: By the mid twenties thirties as it does that sound right.

Speaker Change: Yes.

Speaker Change: What are those now.

Dan Tucker: [inaudible] Deal, what are those numbers now? Sure.

Speaker Change: What are those numbers now.

Chris Womack: I'm going to take it a little bit further back to you because I think the progression here is important. So, you mentioned the 21 gigawatts. That was where we were as of our last call, and that's compared to 17 gigawatts back when we originally filed the 2023 IRP update at Georgia Power, so it had grown 4,000 gigawatts. As you sit here today, that 21 gigawatts is 24.3 gigawatts in terms of the total pipeline. You mentioned the commitments. The commitments were a significant change from the original filing last quarter, so it went from 3.6 gigawatts to 6.2 gigawatts, and then from the last earnings call to today, that 6.2 is now 7.3.

Dan Tucker: And so I'm going to take it a little bit further back, Steve, because I think the progression here is important. So you know, you mentioned 21 gigawatts. That was where we were as of our last call.

Speaker Change: Sure and so I'm going to even take it a little bit further back see because I think the progression here is important. So you mentioned the 21 Gigawatts that was where we were as of our last call and that's compared to 17 gigabit what's back when we originally filed the 2023 IOP update.

Speaker Change: At Georgia power. So it had grown 4000 gigawatts as we sit here today that 'twenty. One gigawatts is 24.3 gigawatts in terms of the total pipeline you.

Dan Tucker: And that's compared to 17 gigawatts back when we originally filed the 2023 IRP update at Georgia Power. So it had grown by 4000 gigawatts. As we sit here today, that 21 gigawatts is 24.3 gigawatts. In terms of the total pipeline, you mentioned the commitments. The commitments were a significant change from the original filing last quarter. So it went from 3.6 gigawatts to 6.2 gigawatts, and then from the last earnings call to today, that 6.2 is now 7.2.

Speaker Change: You mentioned the commitments the commitments were a significant change from the original filing last quarter. So it went from 3.6 Gigawatts to 6.2 Gigawatts.

Speaker Change: And then from from the last earnings call to today that 6.2 is now 7.3.

Steve Fleshman: Got it.

Steve Fleishman: Got it. Okay. That's helpful. And then, you know, on Kinder Morgan's call, they mentioned, expanding the SONET system with $3 billion in growth investment and kind of, I think implied that you would represent half of it. And could you just talk about your thoughts on that and the likelihood that you'll do that.

Speaker Change: Got it okay.

Steve Fleshman: Okay, that's helpful.

Speaker Change: That's helpful.

Chris Womack: And then, totally separate question. On Kinder Morgan's call, they mentioned expanding the SONAT system with $3 billion, I think, growth investment, and kind of, I think, implied that you would represent half of it, and could you just talk to your thoughts on that and likelihood you'll do that? Yeah, look, it's really early for that, so yes, we're a 50 percent partner on Southern Natural. There is a project that is proposed that total capital was $3 billion; our share would be one and a half billion dollars. It's just really early days. You know how these projects evolved?

Speaker Change: And then totally separate question.

Speaker Change: The on Kinder Kinder Morgan's call they mentioned.

Speaker Change: Expanding the sonat system.

Speaker Change: With 3 billion dollar I think.

Investment and kind of I think implied that you would represent half of it and could you just talk to.

Speaker Change: Your thoughts on that and likelihood you'll you'll do that.

Dan Tucker: Yeah, look, it's really early for that. So yes, we're a 50% partner in Southern Natural. There is a project that is proposed that the total capital is $3 billion. Our share would be one and a half billion dollars.

Speaker Change: Yeah look it's it's really early for that so yes, we're a 50% partner on southern natural there is a project that is proposed that total capital is $3 billion, our share would be $1 $5 billion.

Dan Tucker: It's just really early days. You know how these projects evolve. Look, we're very encouraged by it. It's, you know, it's 90 plus percent, I believe, you know, Brownfield, existing rights away, a tremendous opportunity there. We will kind of, you know, at the right time down the road once this thing has solidified a little bit more, there's some traction from a FERC perspective in terms of approval, kind of reflect that more in our outlook, but that's still the case. All that said, it's an encouraging opportunity.

Speaker Change: It's just really early days you know how these projects evolve look we're very encouraged by it. It's you know, it's 90 plus percent I believe brownfield existing rights away.

Chris Womack: Look, we're very encouraged by it. It's 90 plus percent, I believe, brownfield, existing right-of-way, tremendous opportunity there. We will kind of, you know, at the right time, down the road, once this thing has solidified a little bit more, there's some traction from a FERC perspective, terms of approval, kind of reflect that more in our outlook, but that's still, all that said, it's an encouraging opportunity.

Speaker Change: Tremendous opportunity there.

Speaker Change: We will kind of you know at the right time down the road. Once this thing has solidified a little bit more there are some traction from a FERC perspective in terms of approval kind of reflect that more in our outlook, but.

Speaker Change: That's still the.

Speaker Change: All that said, it's an encouraging opportunity.

Chris Womack: Steve, the only thing I would add, as Dan said it, is that it's just very early on in that process. I think there's a great deal of diligence to be done. But I think at this point in time, the thing to note is that it's just very early on in that process.

Dan Tucker: Steve, don't think I would add, man. I think Dan said it, but it's just very early on in that process. I think there's a great deal of diligence to be done, but I think at this point in time, the thing to note is that it's just very early on in that consideration.

Speaker Change: Steve the only thing I would add and I think Dan said it but it's just very early on in that process. I think there's a great deal of diligence to be done, but I think at this point in time I think the thing to note is that it's just very early on in that consideration.

Dan Tucker: Okay, last question. I'm going to, yeah. I was going to say just policy-wise. I mean, we're excited about it to the extent that we can get this done. It's important for everything else that's happening, right, to the extent that all this large load is down the road that has the opportunity to be served with more gas. Capacity like this is really important, and so we're super supportive of it. Yeah, Steve, let me add one more thing to that.

Speaker Change: Okay.

Chris Womack: Okay, last question. I'm going to, yeah, as you can say, just politically wise, I mean, we're excited about it. To the extent that we can get this done, it's important for everything else that's happening, right? To the extent that all this large load is down the road, that has the opportunity to be served with more gas, capacity like this is really important, and so we're super supportive of it. Yes, Steve, let me have one more thing on that, man, and we talk a lot about the importance of this country building infrastructure. So these kinds of things need to happen to support this economy going forward, but for us, it's just very early on. But it's some things that this country must embrace and must move forward on.

Speaker Change: Last question and I'll get it yet.

Speaker Change: Because you can say just policy wise I mean, we're excited about it too to the extent that we can get this done it's important for everything else is happening right to the extent that.

Speaker Change: All of this large load is down the road that has the opportunity to be served with more gas capacity. Like this is really important and so we're super supportive yeah, Steve Let me add one more thing on that and we've talked a lot about the importance of this country building infrastructure.

Dan Tucker: I mean, and we talk a lot about the importance of this country building infrastructure. So these kinds of things need to happen to support this economy going forward. But for us, it's just very early on, but they're some things that this country must embrace and must move forward on.

Steve Fleishman: So these kind of things need to happen.

Steve Fleishman: To support this economy going forward, but for us it's just very early on but its.

Some things done this country must embrace and must move forward on.

Steve Fleshman: Okay, one last question, just going back to my first topic on data centers. Can you just remind me how you define firm commitments relative to pipeline for data centers? Yeah, so the commitment we're characterizing is essentially a signed request for service within our service territory. It's a commitment by the customer to be at a particular level to commit commitment by us to provide the service. And then a lot of these commitments have kind of further papering, if you will, that goes beyond those kind of key elements where it's, you know, commitments for local infrastructure, commitments around pricing, commitments around the ramp.

Steve Fleishman: Okay, one last question. Just going back to my first topic on data centers, can you just remind me what you define firm commitments relative to the pipeline for data?

Speaker Change: Okay. One last question just going back to my first topic on data centers can you just remind.

Speaker Change: Remind me what how you define.

Speaker Change: Firm commitments relative.

Speaker Change: Relative to the pipeline.

Speaker Change: Our data centers.

Dan Tucker: Yeah, so the commitment we're characterizing is essentially a signed request for service within our service territory. It's a commitment by the customer to be at a particular level to commit us to provide the service. And then a lot of these commitments have kind of further papering, if you will, that goes beyond those kind of key elements where it's, you know, commitments for local infrastructure, commitments around pricing, commitments around the ramp. So there's clearly different stages here. I think, importantly, because we argue with ourselves, you know, what is the right nomenclature for this? What's the right word to really characterize this?

Yeah. So the commitment we're characterizing is essentially a.

Speaker Change: Signed request for service within our service territory, it's a commitment by the customer to be at a particular level to commit our commitment by us to provide the service and then a lot of these commitments have kind of further papering. If you will that goes beyond those kind of.

Speaker Change: Key elements, where its commitments for local infrastructure commitments around pricing commitments around the ramp and so there there's clearly different stages here I think.

Chris Womack: So there's clearly different stages here. I think, importantly, because, you know, we, we argue with ourselves, you know, what is the right nomenclature for this? What's the right word to really characterize this? Because commitment sounds like something that's, you know, completely fixed and irreversible. The reality is, we have these commitments, these requests for services. And over time, there's puts in takes. And in fact, in the numbers I shared with you a few minutes ago, Steve, there were puts in takes in there, but net net. The megawatts are still going up. And Steve, last earnings call, we went through this, I guess, process, this orderly process that we go through internal in terms of confirming that this load is in fact real.

Speaker Change: Importantly, because.

Speaker Change: Yeah, we.

Speaker Change: We argue with ourselves what is the right now.

Dan Tucker: Because commitment sounds like something that's, you know, completely fixed and unreversible. The reality is we have these commitments, these requests for services, and over time, there are puts and takes. In fact, in the numbers I shared with you a few minutes ago, Steve, there were puts and takes in there, but net net, the megawatts are still going up.

Nomenclature for this what's the right word to really characterize this because commitment sounds like something that's.

Speaker Change: <unk> completely fixed in an unrivaled <unk> reality is we have these commitments these request for services.

Speaker Change: And over time, there's puts and takes in fact in the numbers I shared with you a few minutes ago, Steve There were puts and takes in there but net net.

Steve Fleishman: The megawatts are still going up.

Chris Womack: And Steve, on the last earnings call, we went through this, I guess, process, this orderly process that we go through internally in terms of confirming that this load is, in fact, real. And so if you look, remember some of that. That's kind of the discipline in which we look at these projects to make sure they are real, that they've demonstrated a commitment to the state, that they've selected our utility companies. I mean, it's a very orderly and disciplined process that we go through, because, like I said, we've been in this economic development business for a very, very long time.

Speaker Change: Steven.

Steven: Last earnings call. We went through this I guess process. This orderly process that we go through internal.

Steven: In terms of confirming that this load is in fact real.

Chris Womack: And so if you look, remember some of that, I mean, that's kind of the discipline in which we, you know, look at these projects to make sure they are real, that they've demonstrated commitment to the state that they've selected our utility companies. I mean, so, so very orderly and discipline process that we go through because like we've been in a secondite development distance for a very, very long time. I mean, we're in the market each and every day, engaging with customers, but we know how this plays out. We know how it works. And so for us, as well as for them, it's important to understand what's real in terms of and what it means to have a commitment.

Steven: And so if you look remember some of that I mean, that's kind of the discipline in which we play.

Steven: You know look at these projects to make sure. They are real that they've demonstrated a commitment to the state that they've selected our utility companies I mean, so so very orderly and disciplined process that we go through because actually we've been in the second half development distance for very very long time, I mean, we're in the market each and every day.

Chris Womack: I mean, we're in the market each and every day, engaging with customers, but we know how this plays out. We know how it works. And so for us, as well as for them, it's important to understand what's real in terms of and what it means to have a commitment. So we spend a lot of time working on this.

Steven: Engaging with customers, but we know how this plays out we know how it works and so for us as well as for them. It's important too to understand what's real in terms of end and what it means to have a commitment. So we spend a lot of time working on this and so important that just last thing Steve just to clarify.

Chris Womack: So we spend a lot of time working on this. And so importantly, I just last think Steve, I will just to clarify, commitment for us does not mean it's in our forecast. There's further risk adjustment from there. There's, we know that things will get delayed. We know the actual peak load alluded to may not show up to that extent, but they'll be low, but not that much. So we're risk adjusting beyond this commitment level to be as conservative, but also as pragmatic as we can with the forecast. And then lastly, the 9% Georgia Power growth rate that was based off of the initial numbers that you gave at the end of 23.

Dan Tucker: and so importantly, I just last thing Steve, I will just clarify commitment for us does not mean it's in our There's further risk adjustment from there. There's, we know that things will get delayed. We know that the actual peak load alluded to may not show up to that extent, but there'll be load, but not that much. So we're risk adjusting beyond this commitment level to be as conservative but also as pragmatic as we can with the forecast.

Speaker Change: <unk> for US does not mean in center forecast, there's further risk adjustment from there there's.

Speaker Change: We know that things will get delayed we know that the the actual peak load alluded to may not show up to that extent, but there'll be load, but not that much. So.

Speaker Change: We're we're risk adjusting beyond this commitment level to be us.

Speaker Change: Conservative, but also as pragmatic as we can with the forecast.

Steve Fleishman: And then lastly, the 9% Georgia Power growth rate, that was based off of the initial numbers that you gave at the end of 23, for when you wrote the file. So that was that.

Speaker Change: And then lastly, the 9%, Georgia power growth rate that was based off of.

Speaker Change: The initial numbers that you gave at the end of 'twenty three.

Chris Womack: When you get the filing.

Speaker Change: For when you read the filing okay. So that was that.

Chris Womack: Okay, so that was that. Yes, that there is potential for those to evolve. And I think that's what we will. We will see where we are at the time of the 2025 IRP file.

Dan Tucker: Yes, there is potential for those to evolve, and I think that will be what we see where we are at the time of the 2025 IRP filing.

Speaker Change: Yes, yes that there is potential for those to evolve and I think that's what we will we will see where we are at the time of the 2025 by our P filings.

Steve Fleshman: Thank you. Yeah, thank you.

Speaker Change: Okay. Thank you.

Speaker Change: Yeah. Thank you. Thank you.

Nick Kipinella: Our next question is from Nick Kipinella with Barclays, please.

Nick Campanella: Our next question is from Nick Campanella with Barclays. Please proceed.

Speaker Change: Our next question is from Nick Campanella with Barclays. Please proceed.

Nick Campanella: Hey, thanks. Hope everyone's doing well, um, I am. I am. It's hot.

Nick Kipinella: Speaker. Hey, thanks. Hope everyone's doing well. I am, I am. It's hot.

Nick Campanella: Hey, Thanks hope everyone's doing well.

Speaker Change:

Nick Campanella: Hey, a lot of questions have been answered, but I guess just, you know, there's been potential for DOE loans to enter the portfolio, and hopefully that's coming up soon. But just, can you just remind us how that could affect your overall financing plans and what could maybe be on the table, if anything?

Speaker Change: I am I am it's hot.

Nick Kipinella: Hey, a lot of questions have been answered, but I guess just, you know, I know that there's been potential for DOE loans to enter the portfolio, and hopefully that's coming up soon. But just can you just remind us, you know, how that could affect your overall financing plans and what could maybe be on the table, if anything? Sure, I'm happy to. So look, there's, we believe, and you know, the double being the details as we work through this process with, with the DOE loan office, there could be big, round numbers, eligible capital in the range of $15 billion to $20 billion over the next, I don't know, seven, eight years or so.

Nick Campanella: Hey, a lot of questions have been answered, but I guess, just you know I know that theres been potential for for D. O P loans to enter the portfolio and hopefully that's coming up soon but just can you just remind us you know how that could affect.

Speaker Change: Your overall financing plans and what can maybe be on the table if anything.

Dan Tucker: Sure, Nick, happy to. So look, there's, we believe, and you know the devil will be in the details as we work through this process with the DOE loan office. There could be. Big round numbers, eligible capital in the range of $15 billion to $20 billion over the next, I don't know, seven to eight years or so that could qualify for this. The program allows that qualified capital to be financed up to 80% of the qualifying amount.

Speaker Change: Sure happy to so look there is we believe.

Speaker Change: And and you know the Devil will be in the details as we work through this process with with the deal we loan office.

Speaker Change: There could be.

Speaker Change: Big round numbers eligible capital in the range of 15 billion to $20 billion over the next I don't know seven eight years or so that could qualify for this.

Dan Tucker: That could qualify for this. And the program allows that qualified capital to be financed up to 80% of the qualifying amount. So that's a significant amount of debt financing that could be done through a very low-cost source relative to the capital markets. It's implication of that is a potential tremendous benefit to customers over time, not unlike what we had with BOE 3 and 4 in terms of the loan program there. Again, this program could potentially be three to four times the size of the BOE 3 and 4 program, which created tremendous savings for customers.

Speaker Change: And.

Speaker Change: The program allows that qualified capital to be financed up to 80% of the qualifying amount. So that's a significant amount of debt.

Dan Tucker: So that's a significant amount of debt financing that could be done through a very low-cost source relative to the capital market. The implications of that are a potential tremendous benefit to customers over time, not unlike what we had with Vogel 3 and 4 in terms of the loan program there. Again, this program could potentially be three to four times the size of the Vogel 3 and 4 programs, which created tremendous savings for customers.

Speaker Change: Debt financing that can be done through a very low cost source relative to the capital markets.

Speaker Change: Implication of that is a potential tremendous benefit to customers over time.

Speaker Change: Not unlike what we had with both three and four in terms of the the loan program. There again this program could potentially be three to four times the size of the Bogo, three and four program, which which create a tremendous savings for customers.

Nick Kipinella: Hey, I appreciate that.

Chris Womack: Hey, I appreciate that. And maybe just one conceptual question here, just, We've heard about economic development on your call and on all of your peers' calls this earnings season. The tailwinds continue to be very strong. I can't help but notice that some economic and industrial indicators are now starting to rise. You know, ISM indicators this morning were at their lowest since the pandemic. I guess my question is, just what's differentiating your service territory, you think, on the economic development side?

Speaker Change: Hey, I appreciate that and.

Chris Womack: And, you know, maybe just one conceptual question here: just, we've heard about economic development on, on your call on all of your peers' calls. This earning season, the tailwinds continue to be very strong. I can't help but notice that some economic and industrial indicators are now starting to roll. You know, ISN indicators this morning were at their lowest since the pandemic. And I guess my question is, is just what's differentiating your service territory, you think, on the economic development side? And then, you know, is this all kind of tracking up to maybe you guys being conservative in this five to seven outlook and waiting for it to come.

Speaker Change: Maybe just one conceptual question here just we've heard about economic development on your call on all of your peers calls.

Speaker Change: This earnings season, the tailwind has continued to be very strong.

Speaker Change: I can't help but notice that some economic and industrial indicators are now starting to roll.

Speaker Change: I S and indicators. This morning were at their lowest since the pandemic.

Speaker Change: I guess my question is is just what's differentiating your service territory, you think on the economic development side and then is this all kind of chalking up the Navy you guys being conservative in the five to seven outlook and waiting for it to come thanks.

Chris Womack: And then, you know, is this all kind of chalking up to maybe you guys being conservative in this five to seven outlook and waiting for it to come? Thanks. Nine. We talked about it earlier on this call about

Chris Womack: Thanks. Now, and we talked about it earlier on this call about the reliability and the performance of our company, the cost of living in the territory, the transportation hubs and access and resources that we have here, the kind of business climate. Alabama was recently recognized by CNBC as a top state to do business in. And so, the great advancements there. So, I think a collection of things that occurring across this southeast and territory has really made it has been attractive for a long period of time and continues to make this part of the country very attractive.

Chris Womack: Now, and we talked about it earlier on this call about the reliability and the performance of our company, the cost of living in the territory, the transportation hubs and access and resources that we have here, and the kind of business climate. Alabama was recently recognized by CNBC as a top state to do business in.

Speaker Change: No and we talked about it earlier on this call about the reliability and the performance of our company.

Speaker Change: Cost of living in the territory.

Speaker Change: The transportation hubs and access and resources that we have here are the the kind of business climate. Our Alabama was recently recognized by C. C. M. B C. As a top state to do business in and so the great advancements there. So I think a collection of things that are occurring across the southeastern.

Chris Womack: And so the great advancements there. So I think a collection of things that are occurring across this southeastern territory has really made it attractive for a long period of time and continues to make this part of the country very attractive. And so I think we have a lot of good things going for us, and we're kind of excited about where we are. And it shows up in the pipeline of business in the projects that are currently in the queue in all of our states, all of our southeastern states.

Speaker Change: Territory.

Speaker Change: Has really made it has been attractive for a for a long period of time and continue to make it as part of the country very attractive and so I think we have a lot of good things going for us and so we're kind of excited about where we are and it shows up in the pipeline of business and the projects that are that that are currently in the queue and in all of our states at all.

Chris Womack: And so, I think we have a lot of good things going forward. And so, we're kind of excited about where we are. And it shows up in the pipeline of business in the projects that are currently in the queue in all of our states, all of our Southeast and states. So, I think it speaks well for the characteristics of our state and where we are. And also, I think vertically integrated model also supports kind of this is a good place to come and do business.

Speaker Change: Our south Eastern States, So I think it speaks well for.

Chris Womack: So I think it speaks well for the characteristics of our state and where we are, and also I think our vertically integrated model also supports the kind of this is a good place to come and do business.

Speaker Change: The characteristics of all of our states and where we are and also I think our vertically integrated model also supports kind of our this is a good place to come and do business.

Nick Kipinella: Thanks for those thoughts. Thank you, Nick.

Speaker Change: Thanks for those thoughts.

Speaker Change: Sure.

Nick Campanella: Thank you Nick.

Gesh Chopra: Our next question is from Gesh Chopra with Evercore ASI. Please proceed. Andrew Gesh. Hey, Dan, good afternoon. Thanks for taking my questions. Hey, just then, as we think about your forward-looking guidance and your 2024 days, you've obviously started your phenomenally year-to-date materially above the plan, but there's some one-timers in there like weather. So, as we think about our models and 26, 27 EPS estimates and beyond, whenever you provide this guidance as Q4, are you going to exclude these one-time benefits in 2024? Or I'm just trying to think of what should be the base of the new 5-to-7, if you will.

Durgesh Chopra: Our next question is from Durgesh Chopra with Evercore ASI. Please proceed.

Speaker Change #100: Our next question is from the cash Chelf Pratt with Evercore ISI. Please proceed.

Andrew: Andrew Yes.

Durgesh Chopra: Hey Dan, good afternoon. Thanks for taking my questions.

Andrew: Hey, Dan good afternoon.

Dan Tucker: Hey Dan, just Dan, as we think about your forward-looking guidance and your 2024 base. You've obviously, you know, started the year phenomenally, and today you are materially above the plan, but there are some one-timers in there, like weather. So as we think about our models and, you know, 26, 27 EPS estimates and beyond. [inaudible] You know, these one-time benefits in 2024, I'm just, I'm just trying to think of what should be the base of the new 527, if you will.

Andrew: Thanks for taking my questions Hey, just then.

Speaker Change #102: As we think about your forward looking guidance and your 'twenty 'twenty four base.

Andrew: You've obviously.

Speaker Change #103: Started the year phenomenon all year to date materially above the plan, but there are some one timers in there like weather.

Speaker Change #104: As we think about our models.

Speaker Change #104: 'twenty six 'twenty seven EPS estimates and beyond.

Speaker Change #105: Are you when you rebate or whenever you provide this guidance at Q4 are you want to exclude.

Speaker Change #106: These one time benefits in 2024, I'm just I'm just trying to think of what should be the base of the new five to seven if you will.

Dan Tucker: Yeah, the base for the 5-to-7 is the current guidance in 2024, 395-405. The way to think about, so you mentioned weather as an example, Durgesh. You heard us describe kind of the notion of fixing the roof while the sun is shining, advancing maintenance out of future years in this year. If you looked back over the course of time at our O&M spend, while on average, it's probably flatish to down over time. Year to year, it's more of a sign wave. Because again, what we're doing is managing the short-term, taking advantage of opportunities like warmer than normal summers, colder than normal winters, such that in other years, where we have milder weather, 2023 being a great example, we have the flexibility to spend less.

Dan Tucker: Yeah, the base for the 5 to 7 is the current guidance for 2024, 395 to 405. The way to think about it, you mentioned weather as an example, Durgesh. You heard us describe kind of, you know, the notion of fixing the roof while the sun is shining, advancing maintenance out of future years and this year. If you looked back over the course of time at our O&M spend, Well, on average, it's probably flattish to down over time.

Yeah the base for the five to seven is the current guidance in 2020 four 395 to four or five the way to think about so you mentioned weather as an example or gas.

Speaker Change #107: You heard us describe kind of the notion of fixing the roof, while the sun is shining advancing maintenance out of future years and this year. If you looked back over the course of time at our O&M spend.

Speaker Change #107: While on average, it's probably flattish to down over time.

Speaker Change #107: Year to year, it's more of a sine wave.

Dan Tucker: Year to year, it's more of a sine wave. Because again, what we're doing is managing the short term, taking advantage of opportunities like warmer than normal summers and colder than normal winters, such that in other years, when we have milder weather, 2023 being a great example, we have the flexibility to spend less. And so we're managing to achieve a regular, predictable kind of sustainable result year in and year out despite what might be characterized as one time.

Speaker Change #107: Because again, what we're doing is managing the short term taking advantage of opportunities like warmer than normal summers colder than normal winters such that in other years, where we have milder weather 2023 being a great example, we have the flexibility to spend less.

Dan Tucker: And so we're managing to a regular, predictable, kind of sustainable result year in and year out, despite what might be characterized as one-time things. Got it. Okay. So basically, go ahead. Oh, I'm sorry; there was some background noise there. I get it. Thank you very much.

Speaker Change #107: So we're managing to a regular predictable sustainable result year in and year out despite what.

Speaker Change #107: Might be characterized as one time things.

Durgesh Chopra: Got it. Okay.

Got it okay.

Speaker Change #108: So basically you sorry go ahead.

Speaker Change #108: Well I'm sorry, there was some background noise there I get it. Thank you. Thank you very much and then just.

Dan Tucker: And then just one quick follow-up on credit metrics in FF4Rodat. I think this year, in, this is from the Q1 call, I believe, but you were kind of trending towards 14% by the end of this year. And then 16 to 17% by the end of the planning period in 2028. You know, how does that outlook get strengthened here given the year-to-date outperformance, as we think about the end of 2024? I think we are aware we were. You heard Chris and I allude to maybe being disappointed if we're not on the top half of the range.

Dan Tucker: So basically, go ahead, just one quick follow-up on credit metrics and FF photo debt. I think this year, this is from the Q1 call, I believe, but you were kind of trending towards 14% by the end of this year and then 16 to 17% by the end of the planning period in 2028. You know, how does that outlook get strengthened here given the year-to-date outperformance as we think about the end of 2024?

Speaker Change #109: One quick follow up on credit metrics and F. A photo that I think this year and this is from the Q1 call I believe but you were kind of trending towards 14% by the end of this year.

Speaker Change #110: And then 16 to 17, 17% by the end of the planning period in 2028.

Speaker Change #111: Hausch does that outlook get strengthened here given the year to date outperformance as we think about the end of 'twenty 'twenty four.

Speaker Change #110: Okay.

Dan Tucker: I think we are where we were. I know that you heard Chris and I allude to, you know, maybe being disappointed if we're not in the top half of the range. So maybe there's some incremental benefit for 2024. But I think in terms of the trajectory we're on, we are exactly where we were and how you described it.

Speaker Change #112: I think we are where we were.

Speaker Change #113: The you heard Chris and I allude to you know maybe being disappointed if we're not in the top half of that range. So maybe there's some incremental benefit for for 2024, but I think in terms of the trajectory. We're on we are exactly where we were and how you described it.

Dan Tucker: So maybe there's some incremental benefit for 2024, but I think in terms of the trajectory we're on, we are exactly where we were and how you described it. Okay.

Durgesh Chopra: Okay, perfect. Thanks again for giving me time.

Speaker Change #114: Okay perfect. Thanks, again for giving me time.

Gesh Chopra: Perfect. Thanks again for giving me time.

Gesh Chopra: Yeah, you bet.

Speaker Change #114: Yes, you bet.

Jeremy Tonet: Our next question is from Jarmit on it with. J.T. Morgan, please proceed. Hi, good afternoon.

Jeremy Tonet: Our next question is from Jeremy Tonet with Jeff, sorry, J.P. Morgan, please proceed.

Speaker Change #114: Our next question is from Jeremy Tonet with.

Speaker Change #116: Oh, sorry, J P. Morgan. Please proceed.

Jeremy Tonet: Hi, good afternoon.

Hi, good afternoon.

Jeremy Tonet: Good afternoon, Jeremy.

Jeremy Tonet: Good afternoon, Jeremy. Just wanted to come back to the Sonat expansion, if I could, in the open season. I was just wondering if you were able to share any color on shipper interest there, and whether that was, there was a large you for Southern, or there was others that came in with, with good demand there.

Good afternoon Jeremy.

Dan Tucker: I just wanted to come back to the Sonat expansion, if I could, in the open season. I was just wondering if you were able to share any color on shipper interest there and whether that was, that was a large shipper Southern, or there were others that came in with good demand there?

Jeremy Tonet: Just wanted to come back to the stone at expansion if I could in the open season was just wondering if you're able to share any color on shipper interest there and whether that was that was it.

Archie: Archie for southern or if there is others that came in with a with good demand there.

Jeremy Tonet: Jeremy, I think it's very premature. I mean, we have no insider perspective on that at this time. It's just very early in the process.

Chris Womack: Jeremy, I think, is very premature. I mean, we have no insider perspective on that at this time. It's just very early in the process.

Speaker Change #119: Jeremy I think it's very premature I mean, as we have no insider perspective on that at this time, it's just very early in the process.

Jeremy Tonet: Got it.

Dan Tucker: Got it. Fair enough. And then, just wondering, you know, as you sit back today, how you think about the current business mix in jurisdictional exposure as the electric backdrop is changing for load growth? Is there any? rotation of assets that you might be interested in here.

Speaker Change #120: Got it fair enough and then.

Jeremy Tonet: Fair enough.

Chris Womack: And then just wondering, you know, as you sit back today, how you think about the current business mix in jurisdictional exposure, as the electric backdrop is changing for load growth. Is there any rotation of assets that you might be interested in here? Yeah, I don't think we're there. I mean, we love the portfolio we have. We've done a lot of work over the years to kind of hone it through the portfolio it is today. We've got great lectures and gas jurisdictions at large. We've, you know, we've got great compliments with with with Southern power. So, no, there's certainly no designs on anything like that as we sit here today.

Speaker Change #121: Just wondering you know as you sit back today, how do you think about the current business mix in jurisdictional exposure.

Speaker Change #122: The electric backdrop is changing for load growth is there any.

Speaker Change #123: Rotation of assets that you might be interested in here.

Speaker Change #122: Yeah.

Speaker Change #124: Yeah, I don't think we're there I mean, we love the portfolio. We have we've done a lot of work over the years to kind of.

Dan Tucker: Yeah, I just don't think we're there. I mean, we love the portfolio we have. We've done a lot of work over the years to kind of hone it to the portfolio it is today. We've got great electric and gas jurisdictions, at Large, we've got great compliments with with Southern Power.

Speaker Change #124: <unk> to the portfolio. It is today, we've got great electric and gas jurisdictions at large we've you know we've got great complements with with with southern power.

Speaker Change #124: So.

Dan Tucker: So, no, there's certainly no designs on anything like that as we sit here today.

Speaker Change #124: No other there's certainly no designs on anything like that as we sit here today.

Chris Womack: Got it. Fair enough.

Jeremy Tonet: Got it. Fair enough. Thank you very much.

Got it fair enough. Thank you very much.

Chris Womack: Thank you very much. Thank you.

Speaker Change #124: Thank you. Thank you.

Travis Miller: And our next question is from Travis Miller with Morningstar Incorporated. Please proceed.

Travis Miller: And our next question is from Travis Miller with Morningstar Incorporated. Please proceed.

Speaker Change #125: And our next question is from Travis Miller with Morningstar incorporated. Please proceed.

Travis Miller: Afternoon, thank you. And we're back to the data center conversation. As you go through those numbers and talk about risk adjusting and all of that, what are the regulatory hurdles, the state regulatory hurdles that you face in terms of thinking about that risk adjustment and some of those numbers actually coming to fruition?

Travis Miller: Dr. Neumann, thank you. Thank you. And there, back to the data center conversation, as you go through those numbers and you talked about risk adjusting and all that, what are the regulatory hurdles, the state regulatory hurdles that you face in terms of thinking about that risk adjustment and some of those numbers actually coming to fruition? Yeah, once again, Travis, you know, as we go back to a pretty detailed conversation we had on our last call, it's also going to the commissions to confirm the reality of the projects, understanding what the risks are, understanding the pricing that needs to take place, that make sure that we are working with these customers to really fully load, understand what the incremental costs are and their marginal costs are and how we price that so that we also, when we do this, we're providing benefits to the rest of the customers in terms of what sometimes we refer to as downward pressure.

Travis Miller: Good afternoon. Thank you.

Travis Miller: Hi, there.

Speaker Change #127: Back to the data center conversation.

Speaker Change #128: As you go through those numbers and you talked about risk adjusting and all of that what are the regulatory hurdles of state regulatory hurdles that you face in terms of thinking about that risk adjustment and some of those numbers actually coming to fruition.

Chris Womack: You know, once again, Travis and I, as we go back to the pretty detailed conversation we had on our last call, it's also, going to the commissions to confirm the reality of the project. Understanding what the risks are, understanding the pricing that needs to take place, that makes sure that we are working with these customers to really fully load, understand what their incremental costs are, and their marginal costs are, and how we price that so that we also, when we do this, we're providing benefits to the rest of the customers in terms of what sometimes we refer to as downward pressure.

Travis Miller: Yeah once again Travis.

Travis Miller: You know as we go back to them.

Speaker Change #128: Detailed conversation we had on our last call.

It's also.

Speaker Change #128: Going to the commissions to confirm the reality of the projects.

Chris Womack: So just as we work to Confirm Reality and Commitments, but also then do risk adjusting by having that same kind of process and conversation. With the regulatory jurisdictions, in terms of understanding the reality and then understanding the financial and pricing implications. And so one of the things I feel really good about is this kind of orderly process that we have to work through this with the commissions, but also the ability to work through this with the respective customers.

Speaker Change #128: Understanding what the risk are understanding the pricing that that needs to take place.

Speaker Change #128: That make sure that we are working with these customers to really fully load understand what the incremental costs are and their marginal cost or on how we price that so that we also when we do this we are providing benefits to the rest of the customers in term was in terms of what sometimes we refer to as downward pressure.

Dan Tucker: So, just as we work to confirm reality and commitments, but also do risk adjusting, having that same kind of process and conversation with the regulatory jurisdictions in terms of understanding the reality and then understanding the financial and price of the implications. And so, one of the things that I feel real good about is this kind of orderly process that we have to work through this with the commissions, but also the ability to work through this with the respective customers. So, I just feel real good about kind of our process to give order to sometimes what looks like a lot of chaos in this marketplace.

Speaker Change #128: So just as we work to.

Speaker Change #128: Confirm reality.

And commitments, but also then risked do risk adjusting.

Speaker Change #128: Having that same kind of process in conversation.

Speaker Change #128: With the regulatory jurisdictions in terms of understanding the reality and then understanding the financial and pricing implications and so one.

Speaker Change #128: One of the things I feel real good about is this kind of orderly process that we have to work through this with the commissions, but also the ability to work through this with with their respective customers. So I just feel real good about kind of our process T to give order to sometimes what looks like a lot of chaos in this marketplace.

Chris Womack: So, I just feel really good about kind of our process to give order to sometimes what looks like a lot of chaos in this marketplace. I think we have the experience, we have the wherewithal, we have these constructive regulatory environments, and we have the framework to do this, I think, in a way that makes sure that it's orderly and disciplined and provides benefits to all stakeholders.

Dan Tucker: I think we have the experience, we have the wherewithal, we have these constructive regulatory environments, and we have the framework to do this I think in a way that makes sure that is orderly and disciplined and provides benefits to all stakeholders.

Speaker Change #128: I think we have the experience we have the wherewithal, we have these constructive regulatory environments and we have the frame framework.

Speaker Change #128: To do this I think in a way that that make sure that as orderly and disciplined and it provides benefits to all stakeholders.

Travis Miller: Directors, Shar, Shar, and do each of those contracts need official regulatory sign-off, or can you negotiate those without regulatory sign-off, state regulatory, you know? Yeah, we can negotiate that without regulatory approval. Okay, very good, and then real quick, what's the long-term planning process timing in Alabama and Mississippi, in terms of when we might get more information on data sign-off or total CNI look growth there? You'll see those conversations, I think, on a regular basis annually. I mean, it's a little different than what happens in Georgia, but as they look at their plans and look at the issues and needs that show up, I mean, they'll take that to the commissions for certification.

Speaker Change #130: Sure sure.

Speaker Change #131: Do each of those contracts need official regulatory sign off or can you negotiate those.

Travis Miller: Sure, sure. And do each of those contracts need official regulatory sign-off, or can you negotiate those? Without Regulatory Sign-Off, State Regulatory Sign-Off.

Speaker Change #131: Without regulatory sign up state regulatory.

Chris Womack: Yeah, we can negotiate that without regulatory approval.

Speaker Change #132: Yeah, we can we can negotiate that without regulatory approval.

Travis Miller: Okay. Very good.

Speaker Change #132: Okay very good and then one real quick one.

Travis Miller: What's the long-term planning process timing in Alabama and Mississippi? In terms of when we might get more information on data center load or total C&I load growth there?

Speaker Change #132: What's the long term planning process timing, and Alabama and Mississippi.

Speaker Change #132: And in terms of when we might get more information on that.

Speaker Change #132: Data center load our total C&I book.

Speaker Change #132: Both there.

Chris Womack: You'll see those conversations, I think, on a regular basis, annually. It's a little different than what happens in Georgia. But as they look at their plans and look at the issues and needs that show up, they'll take that to the commissions for certification. Okay.

Speaker Change #134: You'll see those conversations I think on a on a regular on a regular basis.

I mean, it's a little different than what happened in Georgia, but as the as they look at their plans and look at the issues it needs that show up.

Speaker Change #134: Take that to the commissions for for certification.

Travis Miller: Okay, great. I appreciate it. Thanks.

Travis Miller: Okay, great, I appreciate it, thanks.

Speaker Change #135: Okay, Great I appreciate it thanks.

Speaker Change #135: Yeah.

Chris Womack: And that will conclude today's question-and-answer session. So, are there any closing remarks? Oh, again, thanks everybody for taking time to be with us. We feel good about where we are as a company and how we're performing and executing, and we're incredibly excited about the future.

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

Speaker Change #136: And that will conclude today's question and answer session. Sir are there any closing remarks.

Chris Womack: Again, thanks, everybody, for taking the time to be with us. We feel good about where we are as a company and how we're performing and executing, and we're incredibly excited about the future. Thanks for being with us today, and be safe.

So again, thanks, everybody for taking time to be with US we feel good about where we are as a company and how we're performing and executing them where.

Speaker Change #137: Incredibly excited about the future.

Chris Womack: Thanks for being with us today, and be safe.

Speaker Change #138: Thanks for being with us today and be safe.

Sharri: Thank you, ladies and gentlemen. This concludes the Southern Company's second quarter 2024 Earnings Club. You made that.

Speaker Change #139: Thank you ladies and gentlemen, this concludes the southern company second quarter 2020 for earnings call you may now disconnect.