Adjustments for Non-Cash Items - Depreciation and Amortization [USD, Millions]

Adjustments for Non-Cash Items - Deferred Income Taxes [USD, Millions]

Adjustments for Non-Cash Items - Pension, Postretirement, and Other Employee Benefits [USD, Millions]

Adjustments for Non-Cash Items - Stock-Based Compensation [USD, Millions]

Adjustments for Non-Cash Items - Estimated Loss on Plant Vogtle Units 3 and 4 [USD, Millions]

Adjustments for Non-Cash Items - Other, Net [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital - Receivables [USD, Millions]

Changes in Working Capital - Retail Fuel Cost Under Recovery [USD, Millions]

Changes in Working Capital - Fossil Fuel for Generation [USD, Millions]

Changes in Working Capital - Materials and Supplies [USD, Millions]

Changes in Working Capital - Other Current Assets [USD, Millions]

Changes in Working Capital - Accounts Payable [USD, Millions]

Changes in Working Capital - Accrued Taxes [USD, Millions]

Changes in Working Capital - Accrued Compensation [USD, Millions]

Changes in Working Capital - Customer Refunds [USD, Millions]

Changes in Working Capital - Other Current Liabilities [USD, Millions]

Capital Expenditures (CapEx) - Property Additions [USD, Millions]

Proceeds from Long-Term Debt [USD, Millions]

Proceeds from Short-Term Borrowings [USD, Millions]

Repayments of Long-Term Debt [USD, Millions]

Repayments of Short-Term Borrowings [USD, Millions]

Dividend Payments - Payment of Common Stock Dividends [USD, Millions]

Net Change in Cash, Cash Equivalents, and Restricted Cash [USD, Millions]

b6b3c090a238598f6b7f185a798788b237a637ee21e9f2956fe1395e6a68960a

1. Given the uncertainty around coal retirement timelines and pending EPA regulations, how will you navigate these challenges to ensure compliance while minimizing financial impact on the company and shareholders?
2. With significant customer demand for additional capacity, is Southern Power considering adding new fossil generation assets, and how do you balance this with environmental risks and regulatory hurdles?
3. As Southern Power's long-term contracts approach expiration towards the end of the decade, how do you plan to address potential increases in capacity prices and secure extensions or new agreements to enhance returns while managing risk?
4. Considering your experience with nuclear power, what is your position on investing in Small Modular Reactor (SMR) technology, and how are you evaluating the risks and scalability challenges associated with integrating SMRs into your future generation mix?
5. With the unprecedented $1.1 billion in storm costs from Hurricane Helene and no prior storm cost reserve, what is your plan for cost recovery in Georgia, and how might this affect your financials and customer rates?

03470a8fe795e9b5b53ddafa6ddc25294ac49bde4539f6d10a5a1acb32b87f73

Southern Company

- Electric Utilities

-- Traditional Electric

-- Southern Power

-- Eliminations

- Southern Company Gas

-- Gas Distribution

-- Gas Pipeline Investments

-- Gas Marketing Services

-- All Other

- All Other

Georgia Power

- Retail Revenues

- Wholesale Revenues

- Other Revenues

Alabama Power

- Wholesale Revenues (non-affiliates)

- Wholesale Revenues (affiliates)

Mississippi Power

Southern Power

Total Revenue

923ce86f809d2aa4bb83893744d06a98763ce70340729b9cc11f1cb819b5cb54

Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

Property, Plant, and Equipment (PP&E) [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Lease Liabilities [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

842b8d674bdc21dba99bad9b6a6b25251f05404a83ea7a187477a6ddc520941a

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  1. **Adjusted EPS for Q4 2024**: **$0.49 per share**. Combined with year-to-date performance, full-year adjusted earnings of **$4.05 per share**  **[SO_3405177_2]** .
  2. **Sales Growth Outlook**: Robust outlook driven by strong electricity sales and customer additions, with significant load growth expected in 2028-2030  **[SO_3405177_22]** .
  3. **Long-term Load Growth**: Potential load addition of over **36 gigawatts by the mid-2030s**, with **8 gigawatts already committed**  **[SO_3405177_2]** .
  4. **Capital Plan**: Incremental capital projects could add roughly **$3 billion** to the existing **$48 billion** capital plan  **[SO_3405177_10]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  1. **Adjusted EPS Estimate for Q3 2024**: **$1.30 per share**  **[SO_3395747_2]** .
  2. **Credit Metrics and FFO to Debt**: Trending towards **14%** by the end of 2024 and **16% to 17%** by the end of 2028  **[SO_3395747_21]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  1. **Adjusted EPS Estimate for Q2 2024**: **$0.90 per share**  **[SO_3382180_2]** .
  2. **Projected Retail Electric Sales Growth**: Accelerating to approximately **6% from 2025 to 2028**; Georgia Power projected sales growth rate of approximately **9%** over the same period  **[SO_3382180_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EPS for 2024**: **$3.95 to $4.05**  **[SO_3373545_2]** .
  2. **Long-term Adjusted EPS Growth Rate**: **5% to 7%** from the 2024 guidance range  **[SO_3373545_2]** .
  3. **Electricity Sales Growth**: **1% to 2%** for 2024 and 2025, accelerating to approximately **6% annually** from 2025 to 2028; Georgia Power's growth projected at **9% annually**  **[SO_3373545_2]** .
  4. **Capital Investment Plan**: **$48 billion** over five years, with a $5 billion increase in state-regulated utility investments  **[SO_3373545_3]** .
  5. **State-Regulated Rate Base Growth**: Approximately **6% annually**  **[SO_3373545_3]** .
  6. **Equity Issuance**: Approximately **$350 million** annually through internal plans  **[SO_3373545_3]** .
  7. **FFO to Debt Ratio**: Expected to improve by more than **100 basis points** in 2024, reaching mid-**16% to 17%** over five years  **[SO_3373545_7]** .

aa0c322b6cc96b0e1402895c2eea83b729d1ad2236539e33b0c11b7840888cbc

| Name                     | Position                                           | Start Date          | Short Bio                                                                                                                                                                                                 |
|--------------------------|----------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Chris Womack             | Chairman, President, and CEO, Southern Company     | May 2023            | Chris Womack was named President in March 2023, CEO in May 2023, and Chairman in December 2023. He has extensive experience within Southern Company, including roles as Chairman and CEO of Georgia Power  **[0001308179-24-000401_so4274141-pre14a.htm:34]** **[0001308179-24-000515_so4274141-def14a.htm:34]** **[0001308179-24-000401_so4274141-pre14a.htm:4]** .                           |
| Dan Tucker               | Executive Vice President and CFO, Southern Company | 2023                | Dan Tucker oversees Southern Company's financial operations and supports financial and operational performance improvements and business transformation initiatives  **[0000092122-24-000089_x31a2-q32024so.htm:0]** **[0001308179-24-000515_so4274141-def14a.htm:75]** .                                                                     |
| Kim Greene               | Chairman, President, and CEO, Georgia Power        | 2023                | Kim Greene assumed her role in 2023. She was not listed as a Named Executive Officer in 2021 or 2022  **[0001308179-24-000515_so4274141-def14a.htm:92]** **[0001308179-24-000401_so4274141-pre14a.htm:92]** .                                                                                                                                   |
| Jim Kerr                 | Chairman, President, and CEO, Southern Company Gas | January 2023        | Jim Kerr took on his role as part of leadership transitions announced in January 2023. Previously, he was Executive Vice President, Chief Legal Officer, and Chief Compliance Officer at Southern Company  **[0001308179-24-000515_so4274141-def14a.htm:75]** **[0001308179-23-000469_so4109301-pre14a.htm:43]** .                               |
| Stephen E. Kuczynski     | Chairman and CEO, Southern Nuclear                 | N/A                 | Stephen E. Kuczynski has been in his role since at least 2021, with retirement effective June 28, 2024. Specific start date details are not provided  **[0001308179-24-000515_so4274141-def14a.htm:92]** **[0001308179-23-000671_so4109301-def14a.htm:116]** .                                                                                     |
| Stanley W. Connally, Jr. | Executive Vice President and COO, Southern Company | January 1, 2025     | Stanley W. Connally, Jr. will assume his role as Executive Vice President and COO on January 1, 2025. He has been an executive officer since 2012 and served as EVP for Operations and CEO of Southern Company Services since April 2021  **[0000092122-24-000093_so-20241205.htm:1]** . |

c59d62ac76778c09978499d103ee88bb82c4b2d74b547304411f259bd53edad9

Net Income [USD, Billions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

Depreciation and Amortization (D&A) [USD, Billions, Nine Months]

Interest Expense [USD, Billions, Nine Months]

7aa462bdc41e4edc918f8493096e419903aae9b8dd429043979aa927a5019e99

**Quarterly guidance for Q4 2024:**
- **Adjusted EPS**: $0.49  **[SO_3405177_2]**  (no prior guidance)  
- **Sales growth outlook**: Robust outlook driven by strong electricity sales and customer additions  **[SO_3405177_22]**  (no prior guidance)  
- **Long-term load growth**: Potential addition of over 36 gigawatts, with 8 gigawatts already committed  **[SO_3405177_2]**  (no prior guidance)  
- **Capital plan**: Incremental capital projects of approximately $3 billion on top of the existing $48 billion plan  **[SO_3405177_10]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **Adjusted EPS**: $4.05  **[SO_3405177_2]**  (no prior guidance)  

29ef6158029fd31f1d7fe5749031848ce295ccd8d9f660134a00b5e8287934b9

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2002       | Present  | Current auditor    **[0000092122-24-000009_so-20231231.htm:189]**  |
```

f5b15fd8e7fc3a5143204a349a30c7a053afb1268a93859546800515a5199e45

42e6d74127000542fa6b55ae062d7d70e486dcfe2464b1ac3f33054f956e13ca

25e9fd58b97d1e4a6e5a0d502994dcef97efa30ac53fc3ed1423fc188d32c991

59eaa5010761e95d53f8397278d0bbcbdcbcc574262139e4c2666bb8e488dd0f

- Southern Company's projected 9% annual **electric sales growth** from 2025 to 2028 relies heavily on **data centers**, which represent **80%** of this emerging load, raising concerns about over-dependence on a single industry.  **[SO_3373545_10]**
- The company's **FFO-to-debt ratio** was **14%** in 2023, below the targeted **17%**, and is expected to improve slowly due to incremental capital expenditures and regulatory lag, potentially impacting credit metrics.  **[SO_3373545_7]**
- Southern Company plans to issue approximately **$350 million** of equity annually to finance increasing capital expenditures, which may lead to shareholder dilution and impact **earnings per share** growth.  **[SO_3373545_24]**

216ef6ece46469d7d7d089be76623086975f79e00d39c61a36c7a63707858ef4

1. **Load Growth Outlook**  
   **Q:** Will increasing load growth affect your 5-7% growth rate?  
   **A:** Daniel Tucker explained that while they are seeing significant load growth projections, with **36 GW** expected by mid-2030s and **8 GW** already committed, they do not anticipate changing their **5-7%** growth rate in the near term. Any acceleration is long-term in nature and may be considered later ( **[SO_3405177_10]** ).

2. **Nuclear Expansion Plans**  
   **Q:** Are you considering nuclear uprates or new nuclear units?  
   **A:** Southern Company is evaluating nuclear options in their Integrated Resource Plan scenarios, including potential uprates for **6 legacy units**. While the Inflation Reduction Act makes these more viable, significant capital and time are required, and they will not proceed until risks are mitigated ( **[SO_3405177_11]** ,  **[SO_3405177_13]** ).

3. **Storm Costs and Recovery**  
   **Q:** How will you recover the **$1.1 billion** storm costs?  
   **A:** Daniel Tucker stated that all storm costs have been deferred, with ongoing work to finalize numbers. Recovery will depend on regulatory processes. Historically, recovery periods ranged from **2 to 6 years**, based on storm magnitude and circumstances ( **[SO_3405177_4]** ,  **[SO_3405177_8]** ,  **[SO_3405177_9]** ,  **[SO_3405177_20]** ).

4. **Southern Power Growth Opportunities**  
   **Q:** Are there opportunities to expand Southern Power's capacity?  
   **A:** Southern Power is exploring opportunities as capacity values have **doubled**. They are considering new assets, including natural gas and renewables, while maintaining discipline with long-term contracts and creditworthy counterparties. Growth is not expected to outpace the regulated utility business ( **[SO_3405177_6]** ,  **[SO_3405177_7]** ,  **[SO_3405177_16]** ).

5. **Gas Pipeline Expansion**  
   **Q:** What are your plans regarding gas pipeline expansion?  
   **A:** Southern Company is considering participating in the Southern Natural Gas pipeline expansion, potentially being a large participant due to their significant usage. The project is expected to culminate by late this decade, with **90%** being brownfield work, reducing risks, though regulatory challenges remain ( **[SO_3405177_15]** ,  **[SO_3405177_18]** ).

6. **Carbon Capture and Coal Retirements**  
   **Q:** What is your stance on carbon capture and coal retirements?  
   **A:** They are monitoring EPA rules to inform coal retirement timelines. Southern Company has shifted carbon capture research to natural gas, recognizing gas's vital role in electricity generation. They continue to invest in carbon capture technologies for scalability ( **[SO_3405177_14]** ).

7. **SMR Technology and Nuclear Innovation**  
   **Q:** What is your view on SMR technology?  
   **A:** Southern Company is engaged in SMR and advanced nuclear research but believes more work is needed before commercialization. They are cautious about fully committing to one nuclear technology and emphasize the need for further design and engineering development ( **[SO_3405177_19]** ).

8. **T&D Supply Chain and Timing**  
   **Q:** How are supply chain issues affecting T&D projects?  
   **A:** While lead times for transformers and major equipment are longer, Southern Company is planning accordingly and believes they are in good shape with their projects ( **[SO_3405177_20]** ).

ac8d9d3c63915fd99be1feaccc9c6efe1462a21e18bc17b6d656f23092bb970d

- **Southern Company plans significant capital expenditures, including transmission and gas infrastructure, which could pressure cash flows and returns.**  **[SO_3382180_29]** **[SO_3382180_10]** **[SO_3382180_17]**
- **The company expects to issue equity to finance increased capital expenditures, potentially diluting existing shareholders.**  **[SO_3382180_17]**
- **Despite increased investments, management does not expect to change its growth rate guidance, suggesting that the capital investments may not translate into higher earnings growth.**  **[SO_3382180_10]**

75943d85c79d8cb6a89ce278fb731cf326c4ffaf4f349efc4be041a7d9e4af1d

- **Upcoming Georgia rate case may pose risks to ROE and equity ratios**, as there is "noise around sort of ROEs and equity ratios maybe being overly adequate now that Vogtle is online from just some of the commissioners".  **[SO_3395747_8]**
- **Significant capital expenditure plans ($15–$20 billion over next 7–8 years)** could impact financing and balance sheet, as the company considers DOE loans to fund eligible capital, which "could be big round numbers, eligible capital in the range of $15 billion to $20 billion over the next, I don't know, 7 to 8 years or so".  **[SO_3395747_18]**
- **Credit metrics may not improve despite strong performance**, with FFO to debt ratios expected to remain at prior levels, as "we are where we were... in terms of the trajectory we're on, we are exactly where we were and how you described it".  **[SO_3395747_21]**

7ebb35ff90cf492478b3df68930458042e30b762303372eb5e0b66cc9673c716

- **Environmental regulatory uncertainties and risks associated with coal retirements and future fossil generation investments may impact the company's growth and profitability.**  **[SO_3405177_14]** **[SO_3405177_16]**  The company is closely monitoring EPA rules that will inform coal retirement timelines and is cautious about adding new fossil generation due to potential environmental regulations and infrastructure challenges.
- **Significant storm-related costs of $1.1 billion may lead to increased regulatory scrutiny and potential delays or disallowances in cost recovery, affecting financial results.**  **[SO_3405177_4]**  While all costs have been deferred, recovery depends on constructive regulatory processes, and there is uncertainty regarding how much will be capitalized versus expensed.
- **Supply chain challenges, including longer lead times on major equipment, could delay project timelines and increase costs, impacting the company's ability to meet growing demand.**  **[SO_3405177_20]**  Extended lead times on large transformers and other critical equipment may affect the timely completion of new projects despite the company's planning efforts.

0692ab26b0e452a88526cd65620f5e9b42678c1275a9a37f4fd382c1bd005cf6

1. **Vogtle Unit 4 Completion**  
   **Q:** Will Vogtle Unit 4 meet April completion, impact if delayed?  
   **A:** Management expects Unit 4 to be completed during the second quarter, with initial criticality achieved and syncing to the grid later this month. They have several weeks of margin to meet the April objective.  **[SO_3373545_10]**  Any delay beyond April would have an approximate **$0.03 per month** impact on earnings, but they have flexibility within their **$0.10 guidance range** to mitigate this.  **[SO_3373545_10]** 

2. **Georgia Load Growth**  
   **Q:** How does Georgia's load growth affect earnings and rates?  
   **A:** Georgia is experiencing unprecedented **9% annual sales growth**, mainly from data centers (about **80%** of new load).  **[SO_3373545_9]**  Management views this growth as an opportunity to put downward pressure on customer rates, expecting rate decreases due to additional sales and customer growth.  **[SO_3373545_17]**  They remain conservative in forecasts and see potential for upward revisions.  **[SO_3373545_16]** 

3. **Increased Capital Expenditure**  
   **Q:** What's driving increased CapEx and how will it be financed?  
   **A:** The company added **$5 billion** to the capital plan to support Georgia's growth and new resources proposed in the IRP.  **[SO_3373545_10]**  They plan to finance this with approximately **35-40% equity**, adding around **$350 million** in equity annually through internal programs like the DRIP and 401(k).  **[SO_3373545_21]**  Additional equity needs may be met through an ATM program.  **[SO_3373545_21]** 

4. **FFO-to-Debt Metrics**  
   **Q:** What's the outlook for FFO-to-debt metrics post-Vogtle?  
   **A:** FFO-to-debt was **14%** in 2023 and is expected to improve by over **100 basis points** in 2024 with Vogtle Unit 4 in service.  **[SO_3373545_7]**  The company projects metrics to reach mid-16% towards **17%** over time, improving each year despite incremental capital deployment.  **[SO_3373545_12]** 

5. **Dividend Growth Outlook**  
   **Q:** Will dividend growth accelerate after Vogtle completion?  
   **A:** Management expects to maintain the current dividend growth of **$0.08 per share annually**, or just below **3%**, for the foreseeable future. This helps efficiently finance growth and reduce the payout ratio into the **60%** range.  **[SO_3373545_22]** 

6. **Nuclear PTCs Inclusion**  
   **Q:** Are nuclear Production Tax Credits included in the outlook?  
   **A:** The company has not factored any cash flow from nuclear PTCs into its outlook. Any potential benefits would flow to customers and not affect earnings or credit metrics.  **[SO_3373545_6]** 

7. **Reactor Coolant Pumps**  
   **Q:** Any risks from reactor coolant pump issues at Vogtle?  
   **A:** They've identified and addressed the issue with a reactor coolant pump by replacing it and testing all other pumps. They believe there are no similar issues with other pumps and are confident in their performance.  **[SO_3373545_14]** 

8. **Earnings Growth Impact**  
   **Q:** Does strong load growth lead to higher earnings growth?  
   **A:** While load growth is significant, management remains conservative in earnings growth estimates of **5% to 7%**. Factors like higher interest expenses and investments to serve peak demand temper the immediate impact on earnings.  **[SO_3373545_24]** 

9. **Regulatory Approvals**  
   **Q:** How will upcoming regulatory decisions affect the capital plan?  
   **A:** The company included about **60%** of proposed resources in the capital plan ahead of the April IRP decision. Depending on regulatory outcomes, the capital plan may be updated, potentially increasing capital expenditures.  **[SO_3373545_10]** **[SO_3373545_20]** 

10. **Rate Base Growth Sufficiency**  
    **Q:** Is 6% rate base growth sufficient for earnings targets?  
    **A:** Management feels comfortable achieving earnings growth within the **5% to 7%** range with the current **6%** rate base growth. They consider their forecasts conservative and achievable despite incremental equity issuance.  **[SO_3373545_25]** 

571451b17f1bd8c0bc8869380b4a8aa1075ab0709a5ae25980a90e95f575561e

- **Data center sales growth increased by 12%** in the quarter compared to last year, driven by both existing data centers ramping up usage (about 75%) and new data centers (25%), contributing significantly to earnings with a **1% change in sales equating to $20 million to $40 million**.  **[SO_3382180_18]** **[SO_3382180_23]**
- **Expansion opportunities in other jurisdictions**, such as Alabama and Mississippi, where a **200 MW facility was announced by Meta in Alabama**, and supportive legislation in Mississippi for data centers and hyperscalers; these projects are **not yet included in forecasts**, indicating potential upside.  **[SO_3382180_16]**
- **Upward bias in earnings** due to increased capital investments from strong growth and demand, including the successful operation of Vogtle Units 3 and 4, potentially leading to growth above current expectations.  **[SO_3382180_10]**

2dd8564bb9fc6a3ad334cc35df81daaea07c709ea14957c90a87401388a05ed6

- **Southern Company has secured 8 GW of committed load growth, with the majority funded by specific customers, potentially leading to positive impacts on existing customer bills.**  **[SO_3405177_17]**
- **Southern Power is experiencing increased demand for capacity, with capacity prices doubling, and is exploring new opportunities in both natural gas and renewables under disciplined, long-term contracts with creditworthy counterparties.**  **[SO_3405177_6]**
- **The company delivered exceptional operational and solid financial results through the first three quarters, demonstrating resilience and is well-positioned to finish the year strong, highlighting their capability to capitalize on growth opportunities.**  **[SO_3405177_3]**

93115660efcd387c7eab4fccce1b52d388fdd07a87e27037f57bad86633c2fc9

- **Projected 9% annual retail electric sales growth** at Georgia Power from 2025 to 2028, driven mainly by data centers, which represent **around 80% of the emerging load**. This significant growth underpins the company's long-term electricity sales forecast.  **[SO_3373545_10]** **[SO_3373545_41]**
- **Strong financial metrics improving annually**, with FFO/debt expected to reach mid-16% towards 17% over the next five years, supporting credit ratings and financial strength, even with increased capital deployment.  **[SO_3373545_14]** **[SO_3373545_7]**
- **Continued modest dividend growth** expected, providing attractive returns to shareholders, with the company committed to maintaining a dividend growth trajectory, despite high capital expenditure plans.  **[SO_3373545_34]** **[SO_3373545_27]**

6fc0af9d74db474267a650281b4349afd33cae4dfd140932803f34c962c6444b

1. **Earnings Growth Outlook**  
   **Q:** Could you update on potential earnings growth upside?  
   **A:** Management indicated that continued momentum in investments and sales growth adds an upward bias to earnings, potentially leading to growth off a higher base in the future, though not necessarily changing the **5%–7%** growth rate. They plan any updates for the fourth quarter call if significant developments occur.  **[SO_3382180_10]** **[SO_3382180_14]** 

2. **Data Center Load Impact**  
   **Q:** How does data center growth affect earnings and load?  
   **A:** Data centers are driving substantial load growth, with **12% sales growth** from this sector. Approximately **three-fourths** of this growth comes from existing data centers ramping up usage, and one-fourth from new facilities. Each **1% change** in overall sales equates to **$20 million to $40 million** in earnings impact.  **[SO_3382180_8]** **[SO_3382180_18]** 

3. **Incremental CapEx from Georgia IRP**  
   **Q:** Are there incremental capital needs from the Georgia IRP approval?  
   **A:** Yes, the Georgia Commission approved **500 megawatts** of owned storage, more than double the company's initial assumption. This results in additional CapEx of **above $500 million, up to nearly $1 billion**, not included in the previous forecast. They'll update their forecast formally later.  **[SO_3382180_9]** **[SO_3382180_17]** 

4. **Impact of EPA Rules on Coal Plants**  
   **Q:** Will new EPA rules accelerate coal plant retirements?  
   **A:** The company is evaluating the impractical new EPA rules, which may require accelerating coal plant retirements. All options are on the table, including extending existing generation and considering new resources, while assessing the feasibility of these rules.  **[SO_3382180_20]** **[SO_3382180_25]** 

5. **Financing and Credit Metrics**  
   **Q:** How will incremental CapEx affect credit metrics?  
   **A:** The company plans to issue sufficient equity, likely via an ATM program, to maintain credit metrics as previously projected, with FFO to debt ramping from **14% to 17%** over the plan period. Despite the additional CapEx, these investments are expected to be accretive to earnings.  **[SO_3382180_17]** 

6. **Customer Preference for Low-Carbon Energy**  
   **Q:** Are customers requiring low-carbon resources?  
   **A:** Initially, data center customers requested **24/7 carbon-free** energy, but now they primarily ask for available power. The company continues to build carbon-free resources and is transparent about its transition plans, offering customers the opportunity to align with their decarbonization efforts.  **[SO_3382180_28]** 

7. **T&D Investment Upside**  
   **Q:** Is there upside for transmission and distribution investment?  
   **A:** Yes, load growth and resource additions necessitate increased T&D investments. The company's capital plan includes **$5 billion** of increased CapEx, with a significant portion allocated to transmission, along with potential gas infrastructure build-out to support new generation resources.  **[SO_3382180_29]** 

8. **Risk Management in Data Center Commitments**  
   **Q:** How do you assess the risk of data centers not choosing you?  
   **A:** The company employs conservative forecasting, not counting on customers who are still considering multiple locations. They only include commitments where there's firm bilateral agreement, possibly adjusting for risk due to high activity levels.  **[SO_3382180_13]** 

9. **Legislative Developments in Georgia**  
   **Q:** Any updates on Georgia's legislative changes affecting you?  
   **A:** A consumer advocacy group bill was not passed, but legislation providing certainty around the election cycle for commissioners was passed, ensuring the current commission will oversee key regulatory reviews through **2028**. House Bill 1192, concerning sales tax exemptions for data centers, awaits the governor's decision, and could impact competitive economic development.  **[SO_3382180_12]** **[SO_3382180_19]** **[SO_3382180_24]** 

10. **Future Nuclear Considerations**  
    **Q:** Any thoughts on more nuclear projects?  
    **A:** While acknowledging the country's need for more nuclear to support growing demand, the company plans to celebrate the completion of Vogtle Units 3 and 4 before considering additional nuclear projects. They encourage federal leadership to incentivize nuclear development.  **[SO_3382180_20]** 

47c312c947ef9db058fd5142e7b0eb6e1f689616652754949a92ce826faa0a60

- **Significant Load Growth Driven by Data Centers:** Southern Company is experiencing substantial load growth, particularly from data centers. Sales to existing data centers increased approximately **17% year-over-year** in Q2 2024.  **[SO_3395747_2]** **[SO_3395747_10]**  New data centers are expected to drive accelerated growth, with projected electric sales growth of **6% from 2025 to 2028**, and approximately **9% growth at Georgia Power** over the same period.  **[SO_3395747_2]** **[SO_3395747_10]**
- **Robust Economic Development and Customer Growth:** The Southeast service territories continue to see strong economic growth, with favorable business climates driving net in-migration and customer growth. In Q2 2024, residential customer additions were **14,000 in electric businesses** and **6,000 in natural gas distribution businesses**.  **[SO_3395747_2]**  The pipeline includes nearly **200 projects** and over **30 gigawatts of potential load** over the next decade, with about **40%** of projects and **80%** of potential load being data centers.  **[SO_3395747_2]**
- **Strong Financial Performance and Positive Outlook:** In Q2 2024, adjusted earnings per share were **$1.10**, **$0.31 higher** than Q2 2023 and **$0.20 above** their estimate.  **[SO_3395747_2]**  Management anticipates ending the year in the top half of their guidance range  **[SO_3395747_5]** , with a disciplined approach to managing costs positioning the company well for continued strong performance.  **[SO_3395747_5]**

1f4187e978b82f3cc6adb8b66e0c2a1a1ffb157dbebdf934422f213604dad8cf

1. **Data Center Load Growth**  
   **Q:** Is data center load growth exceeding expectations?  
   **A:** Data center commitments have increased from **3.6 GW to 7.3 GW**, with the total pipeline growing to **24.3 GW** since the initial 2023 IRP filing.  **[SO_3395747_14]**  This acceleration is expected to drive **double-digit commercial sales growth** starting in **2026** as new hyperscale data centers come online.  **[SO_3395747_10]** 

2. **Earnings Guidance and Outlook**  
   **Q:** Are you likely to exceed your full-year earnings guidance?  
   **A:** The company is well-positioned and off to a great start.  **[SO_3395747_5]**  Management anticipates ending up in the **top half of the guidance range**, leveraging current success to improve future positioning.  **[SO_3395747_5]** 

3. **Capital Investment Needs**  
   **Q:** Will you need more capital investments due to load growth?  
   **A:** Continued load growth, especially from data centers, will require **additional capital investments** in new generation and transmission starting in **2026**.  **[SO_3395747_7]**  This expansion sustains the company's financial strength beyond the current forecast period.  **[SO_3395747_7]** 

4. **Potential SONAT Expansion**  
   **Q:** What's the status of the SONAT pipeline expansion?  
   **A:** There's a proposed **$3 billion** expansion of the SONAT system, with Southern Company's share being **$1.5 billion**.  **[SO_3395747_15]**  While it's an encouraging opportunity, it's still in the **early stages** and subject to further diligence and approvals.  **[SO_3395747_15]** 

5. **DOE Loan Program Impact**  
   **Q:** How will DOE loans affect your financing plans?  
   **A:** The company may access **$15–$20 billion** in DOE loans over the next **7–8 years**, financing up to **80%** of eligible capital.  **[SO_3395747_18]**  This low-cost debt could be **3–4 times** larger than the Vogtle 3 and 4 loan program, offering significant customer savings.  **[SO_3395747_18]** 

6. **Vogtle 3 Performance**  
   **Q:** Is Vogtle 3 operating as expected after recent issues?  
   **A:** Vogtle 3 experienced a valve issue but is now back online, operating at over **98% capacity factor**.  **[SO_3395747_13]**  Management is pleased with the performance of both Vogtle 3 and 4.  **[SO_3395747_13]** 

7. **Regulatory Outlook on ROE**  
   **Q:** Are you concerned about regulatory changes to ROE and equity ratios?  
   **A:** Upcoming proceedings will thoroughly vet these issues.  **[SO_3395747_8]**  Equity ratio adjustments were due to **tax reform**, not just Vogtle, and management plans to defend their positions based on company performance.  **[SO_3395747_8]** 

8. **Role of Nuclear Energy**  
   **Q:** Will nuclear energy play a role in your future plans?  
   **A:** Nuclear must be part of the future energy mix to meet increasing demand.  **[SO_3395747_6]**  Success depends on **government leadership** to mitigate risks and support new large-scale nuclear facilities.  **[SO_3395747_6]** 

9. **Credit Metrics Trajectory**  
   **Q:** Has year-to-date performance strengthened your credit outlook?  
   **A:** The company remains on track to achieve **FFO/debt ratios** of **14%** by year-end and **16–17%** by 2028.  **[SO_3395747_21]**  While outperformance may offer incremental benefits, overall plans remain consistent.  **[SO_3395747_21]** 

10. **Asset Portfolio Strategy**  
    **Q:** Are you considering rotating any assets in your portfolio?  
    **A:** There are no plans to rotate assets; the company is content with its **current portfolio** and has no designs on changes.  **[SO_3395747_23]** 

11. **Data Center Contracts**  
    **Q:** Do data center contracts require regulatory approval?  
    **A:** Contracts with data centers can be **negotiated without regulatory approval**.  **[SO_3395747_25]**  Management works closely with commissions to confirm project realities and pricing, benefiting all stakeholders.  **[SO_3395747_24]** 

12. **Economic Development Factors**  
    **Q:** What's attracting businesses to your service territory?  
    **A:** The region's **reliability**, **cost of living**, **transportation hubs**, and favorable **business climate** make it attractive.  **[SO_3395747_19]**  For example, Alabama was recognized as a top state to do business.  **[SO_3395747_19]** 

13. **Load Growth in Other States**  
    **Q:** When will we learn more about load growth in Alabama and Mississippi?  
    **A:** Planning processes in these states involve **regular annual updates**, with issues taken to commissions for certification as needs arise.  **[SO_3395747_26]** 

8ee4b8fa6d91d40ec237e74089c4148cc490490f7c84f9e89e68798d16def161

Southern Co (SO)

Financials