Southern Company (NYSE:SO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 01:00 pm ET

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Southern Company (NYSE:SO) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Operator: Good afternoon. My name is Rita, and I will be your conference operator today. At this time, I would like to welcome everyone to the Southern Company Second Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, July 30, 2020.

I would now like to turn the conference over to Mr. Scott Gammill, Investor Relations Director. Please go ahead, sir.

Executive
Scott Gammill

Thank you, Rita. Good afternoon, and welcome to Southern Company's second quarter 2020 earnings call. Joining me today are Tom Fanning, Chairman, President and Chief Executive Officer of Southern Company; and Drew Evans, Chief Financial Officer.

Let me remind you we'll be making forward-looking statements today in addition to providing historical information. Various important factors could cause actual results to differ materially from those indicated in the forward-looking statements, including those discussed in our Form 10-K, Form 10-Qs and subsequent filings.

In addition, we will present non-GAAP financial information on this call. Reconciliations to the applicable GAAP measure are included in the financial information we released this morning, as well as the slides for this conference call, which are both available on our Investor Relations website at investor.southerncompany.com.

At this time, I'll turn the call over to Tom.

Executive
Thomas A. Fanning

Good afternoon and thank you all for joining us. As you can see from the materials we released this morning, we reported strong adjusted results for the second quarter, meaningfully ahead of the estimate we provided last quarter. While we remain within our expected annual range of COVID-related revenue impacts, the second quarter impacts were not as severe as we originally estimated.

Employees throughout the company have worked hard to maintain excellent levels of customer service and implemented thoughtful cost-containment measures. Of course, our peak electric load occurs in the third quarter. And consistent with our long-standing practice, we will wait to address our annual guidance in October.

Before turning to the business update, I want to recognize that these are unusual times on multiple fronts. Our role in the communities, we are privileged to serve has never been more important and apparent, whether it's our response to the COVID pandemic or working within our communities to promote racial justice, we continue to deliver results.

I want to extend a huge thank you to our employees, customers, business partners and public officials. Southern Company and our operating companies remain committed to supporting our communities today and throughout what is expected to be a prolonged recovery period.

Let's turn now to an update on plant Vogtle Units three and four. From a schedule perspective, we continue to remain focused on meeting the November 2021 and November 2022 regulatory approved in-service dates. We are maintaining an aggressive site work plan that targets a May 2021 in-service date for Unit three and seeks to provide margin that are regulatory approved in-service date.

From a cost perspective, Georgia Power's proportional share of the total project capital cost forecast increased in the second quarter by approximately $115 million to $8.5 billion,