Southern Company (NYSE:SO) Q4 2014 Earnings Conference Call - Final Transcript
Feb 04, 2015 • 01:00 pm ET
Good afternoon my name is Rebecca, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Southern Company's fourth quarter 2014 earnings call. (Operator Instructions) I would now like to turn the call over to Mr. Dan Tucker, Vice President of Investor Relations and Financial Planning. Please go ahead, sir.
Thank you, Rebecca. Welcome everyone to Southern Company's fourth quarter 2014 earnings call. Joining me this afternoon are Tom Fanning, Chairman, President and Chief Executive Officer of Southern Company; and Art Beattie, Chief Financial Officer. (Forward-Looking Cautionary Statement)
We have a full agenda for today's call. We will begin with a brief recap of 2014 operational highlights, followed by an update on the Kemper and Vogtle projects. We will then discuss fourth quarter and full year 2014 financial results and sales results, and finally we will provide earnings guidance for 2015.
At this time, I'll turn the call over to Tom Fanning.
Good afternoon and thank you for joining us. I am pleased to report that Southern Company's franchise operations have never performed better than they did in 2014. In 2014, we continue to provide the best customer service in the business. In fact, Southern Company and its four traditional operating companies occupied the top five spots for all customer classes combined in the customer value benchmark survey, our annual peer comparison of United States electric utilities. This marks the eleventh time in the past 13 years that Southern Company has ranked in the top cortile for all customer classes in that survey.
And earlier this month, those of our traditional operating companies that were rated in the J.D. Power & Associates survey, all ranked either first or second in their respective categories. Alabama Power was also named the most-trusted residential electric utility in America by Lifestory Research, an independent consumer market research firm.
In terms of system reliability, we have continued to set and raise the bar. Our 2014 peak season EFOR of 1.9% was particularly exceptional compared to the most recent five-year national average of around 9%. And our transmission and distribution businesses performed superbly, setting all-time system records for frequency and duration of transmission outages as well as an all-time system record for distribution outage frequency. Meanwhile, we achieved our second best year ever in the duration of distribution outages.
We also continue to grow our wholesale renewable portfolio through our Southern Power subsidiary, which added three new solar facilities in 2014. The 20 megawatt Adobe facility in California, the 50 megawatt Macho Springs facility in New Mexico and the 150 megawatt Solar Gen 2 facility in California.
Southern Power also had a 131 megawatt solar plant under development in Georgia that is expected to begin operation in late 2016. With completion of this facility, Southern Power is expected to own more than 460 megawatts of solar capacity, and is clearly becoming an industry leader in the advancement and operation of this important technology. In these areas and many others,