Southern Company(US:SO)2024-10-31 21:37Financial Data and Key Metrics Changes - For Q3 2024, adjusted earnings were $1.43 per share, a $0.01 increase from Q3 2023, driven by investments in state-regulated utilities and customer growth, offset by higher interest, depreciation, and operating expenses [15][16] - For the nine months ended September 30, 2024, adjusted earnings per share were $3.56, compared to $3.01 for the same period in 2023, influenced by weather-related impacts [16] - The adjusted EPS estimate for Q4 is $0.49, leading to a projected full-year adjusted earnings of $4.05 per share [17] Business Line Data and Key Metrics Changes - Weather-normalized total retail electricity sales were flat compared to Q3 2023, with a 0.4% negative impact from Hurricane Helene [17] - Strong electricity sales were noted in the chemical, pipeline, and transportation segments, with data center power usage up 10% year-over-year [18] - Residential customer additions included 12,000 in electric businesses and 7,000 in natural gas distribution [19] Market Data and Key Metrics Changes - Economic development in electric service territories was robust, with 42 companies establishing or expanding operations, generating over 5,000 potential new jobs and approximately $2.6 billion in capital investments [20] - Alabama Power experienced its strongest quarter in years, driven by announcements in metals, renewable energy, and chemicals [21] Company Strategy and Development Direction - The company is positioned to benefit from projected energy demand growth, supported by disciplined planning and regulatory processes [24] - The focus remains on maintaining a disciplined approach while exploring growth opportunities in the energy sector [40][70] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's response to Hurricane Helene and emphasized the importance of community commitment [5][11] - The company is optimistic about future growth, with a focus on long-term planning and regulatory alignment [24][92] Other Important Information - The estimated cost for storm-related restoration and rebuild from Hurricane Helene is approximately $1.1 billion, with potential changes as actual costs are finalized [13][14] - The company has deferred all storm costs, with a process in place for recovery through regulatory channels [27] Q&A Session Summary Question: Will all storm costs be deferred and what is the recovery process? - All costs have been deferred, and the recovery process will be determined by regulatory decisions, which have historically been constructive [26][27] Question: How has the load growth pipeline developed in Georgia? - The pipeline has seen commitments grow from 3,600 megawatts to 8,000 megawatts, indicating strong momentum [30] Question: Are there opportunities for Southern Power to extend contracts? - There is interest in renewing contracts as they approach expiration, with potential for improved returns [36][40] Question: What is the typical cash recovery lag for storm costs? - Recovery periods have historically ranged from a couple of years to six years, depending on the storm's magnitude [45] Question: What is the company's perspective on nuclear technology? - The company is engaged in research on SMR technology but emphasizes the need for risk mitigation before moving forward [80][84] Question: How long would it take to build new gas generation? - Generally, it takes three to five years to develop gas generation from concept to operation, with the company well-positioned for future projects [88][89] Question: How will storm cost deferrals impact customer bills? - The objective is to ensure that costs are recovered in a manner that benefits existing customers [72][94]