SOUTHERN CO Q1 FY2025 earnings call

• Adjusted earnings results for the first quarter were above estimate with year-over-year growth across major businesses. • Southeast has economic resilience with robust economic development activity and large load pipeline. • State-regulated electric utilities have customer growth and attractive service territories. • Grid reliability and resilience are well-regarded, especially by data center customers. • Assessed tariff implications with potential cost increases of 1%-3%, leveraging scale, supplier portfolio, and vendor relationships. • Board approved $0.08 per share increase in annual common dividend, raising annualized rate to $2.96 per share (24th consecutive annual increase). • State-regulated electric subsidiaries issued $2.2B of long-term debt year-to-date; parent company issued ~$2.4B of junior subordinated notes and entered into ATM program for $1B common stock sale. • Commercial and industrial sales higher, including data centers up 11%, office buildings up 4%, transportation up 4% due to Hyundai Mega plant. • Large load pipeline across electric subsidiaries over 50 gigawatts by mid-2030s, with project commitments totaling 10 gigawatts.

No specific product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• Potential reevaluation of long-term EPS growth as early as 2027 based on incremental capital and economic development momentum. • Georgia Power's 2025 Integrated Resource Plan resolution expected in mid-July. • Expect to provide additional color on capital expenditure outlook and financing plan on second quarter earnings call. • Aim to fully address $4B five-year equity needs in base plan through disciplined equity sourcing.

• Policy uncertainty regarding tariffs with potential cost implications. • Supply chain challenges related to tariffs and efforts to get vendors/purchases compliant with USMCA. • Impact on capital deployment and customer affordability due to tariff considerations.

Q: Could you talk about the 2Q EPS guide and Georgia Power load pipeline?

A: Dan Tucker said two big factors: weather differential and timing of Georgia transmission system transactions. Georgia pipeline has ~52 gigawatts, contracted is 4 gigawatts, committed is 8 gigawatts with near-term pipeline moving up.

Q: Any churn in data center composition?

A: Chris Womack said there's diversity of customers from hyperscalers to developers, with momentum continuing.

Q: Marrying balance sheet with rebate in 2027?

A: Dan Tucker said debt associated with regulatory assets rolling off helps, but incremental capital and projects could adjust journey to 17% FFO to debt.

Q: Georgia Power rate case timeline?

A: Chris Womack said working towards filing in early July as required by 2022 rate case order.

Q: IRA transferability impact?

A: Dan Tucker said transferability is not highly relied on, but helps monetize tax credits, with minor impact on FFO to debt. Chris Womack said engaged with policymakers on tax credit value to customers.

Q: Demand trends and large load pipeline?

A: Dan Tucker said data center growth is on increasing ramp, pipeline grew, and large industrial outages are operational related. Georgia pipeline is 52 gigawatts with focus on tangible trends.

Q: Data center rate structure feedback?

A: Dan Tucker said rate structure framework finalized recently, providing order and certainty, with growth continuing despite details not out yet.

Q: RFP clarity?

A: Dan Tucker said will provide more color on capital expenditure outlook in second quarter earnings call regarding RFPs.

Q: Tariffs impact on Southern Power?

A: Dan Tucker said Southern Power projects are well-positioned, with new contracted gas projects being measured with contingencies.

Q: GRC thinking in election year?

A: Chris Womack said too early to say what the filing will look like, with affordability a primary issue.

Q: Midstream gas and dividend policy?

A: Dan Tucker said midstream gas supply is well-positioned with existing investments, and dividend growth is modest due to financing needs, reevaluated when payout ratio is in low 60% range.