Southern Company (The) Series 2 Q3 FY2024 earnings call

• Hurricane Helene was extremely destructive in Georgia Power's service territory, with restoration and rebuild estimated at $1.1 billion. Employees worked around the clock to restore power, with 95% of restoration complete within eight days. • Company performed well financially in Q3 2024, with adjusted earnings up. • Strong economic development activity in service territories, including 42 companies establishing/expanding operations. • Commitment to customers and communities, especially during storm recovery.

For the third quarter of 2024, adjusted earnings were $1.43 per share, $0.01 higher than the third quarter of 2023. For the nine months ended September 30th, 2024, adjusted earnings per share were $3.56 compared with $3.01 for the same period in 2023. Weather-normalized total retail electricity sales were essentially flat compared with the third quarter of 2023. Residential customer additions were 12,000 in electric businesses and 7,000 in natural gas distribution businesses. Economic development activity across service territories was robust with 42 companies establishing or expanding operations generating 5,000-plus potential new jobs and $2.6 billion in capital investments.

• Adjusted EPS estimate for fourth quarter is $0.49 per share, full year adjusted earnings expected to be $4.05 per share. • Weather-normalized total retail electricity sales essentially flat compared to Q3 2023. • Economic development pipeline growing, with Georgia Power's potential load additions over 36 gigawatts by mid-2030s with 8 gigawatts committed.

• Uncertainty in storm recovery costs as estimates may change over time. • Variables in regulatory processes for recovering storm costs and capital vs O&M allocation. • Potential legal challenges and permitting issues related to pipeline expansions.

Q: On storm cost side, will all $1.1 billion be deferred and process for filing in Georgia?

A: Yes, costs are deferred, and process involves determining capital vs O&M costs.

Q: On load growth, how has Georgia Power's pipeline developed?

A: Pipeline has grown, with 8,000 megawatts committed by mid-2030 vs 3,600 megawatts last fall.

Q: On Southern Power, opportunities for restriking contracts and growth?

A: There are opportunities to renew/extend contracts, and Southern Power is exploring new assets while maintaining discipline.

Q: On storm recovery cash lag and securitization?

A: Recovery periods vary, dependent on storm magnitude, from a couple to six years, and PSC has tools for flexible approach.