SOUTHERN CO Q4 FY2023 earnings call

• 2023 was an exceptional year with strong financial results, completion of Plant Vogtle Unit 3, and progress on Unit 4.
• Resolved Vogtle 3 and 4 prudence process, completed a new combined cycle plant, acquired solar projects, met GHG reduction goals, and received awards.
• Handled winter storm Heather well, showcasing the value of the vertically integrated business model.
• Provided update on Vogtle Unit 4, with initial criticality achieved and projected in-service in Q2 2024.

Weather-adjusted retail electric sales were down 0.4% in 2023 compared to 2022. Commercial sales grew 1.3% due to strong usage, while residential usage was lower. Southern Company added over 46,000 residential electric customers and nearly 27,000 residential gas customers since 2020. Plant Vogtle Unit 3 has been in service since July 30th, exceeding expectations, and Unit 4 achieved initial criticality with projected in-service in Q2 2024.

• 2024 adjusted earnings per share guidance range is $3.95 to $4.05, with long-term adjusted EPS growth rate projected at 5% to 7%.
• 2024 capital investment plan is over $48 billion, a $5 billion increase from the prior year.
• Vogtle 4 is expected to achieve commercial operation in April 2024, factored into the 2024 guidance.

• Macro factors like inflation and higher interest rates impacting interest expense.
• Potential delays in Vogtle Unit 4 completion and its effect on earnings.
• Regulatory uncertainties related to Integrated Resource Plan (IRP) decisions and Georgia Public Service Commission (PSC) elections.

Q: Does the new 2024 estimate range still include a Vogtle charge?

A: Yes, it includes impacts from Vogtle 4, with flexibility used to mitigate effects.

Q: When do you expect to reach the 17% FFO to debt target?

A: The metrics will improve, with a forecasted move towards mid-16s towards 17% over time, but incremental capital deployment causes a slightly slower ramp-up.

Q: What's the status on reactor cooler pumps for Vogtle 4?

A: Root cause analysis ongoing, but tests on other pumps and new pump installed show no similar issues.