The Southern Company (NYSE:SO) Q4 2023 Earnings Call Transcript

Dan Tucker: Yeah, there’s some customer-sided programs that have been proposed in the IRP, Paul, that those are being evaluated and those serve the same purpose, but it’s not the dynamic that you’re describing in those other states.

Paul Patterson: Okay. Then just roughly speaking, when we’re talking about the average data center rate versus the system rate, is there a rule of thumb as to where that kind of is? Do you follow what I’m saying? In other words, I mean how much of a percentage of the average system rate for Georgia Power, let’s say, with a data center customer be roughly, I mean, just roughly speaking, you’re getting?

Chris Womack: I don’t think so. I think we may be better informed as we bring some more projects online. Right now, I think — I don’t think that would be the case. And plus it could be trade secrets as well, so.

Paul Patterson: Okay. Then just finally, when we’re looking at 2026, 2027 and 2028 in that 9% number, for instance, for Georgia Power, does that go up a lot? In other words, is it kind of — I mean, is 2026 — is 2028 a lot higher than 2026, if you follow what I’m saying? In other words, it’s a three-year period, the number jumps up a lot in that period? Do you follow what I’m saying? In other words, is it roughly the –ratable over that period of time? Or is this sort of a hockey stick in terms of what you see in terms of demand?

Dan Tucker: Yes. It’s fairly ratable, Paul. It’s obviously not perfectly linear by any means. But that — the significant load really begins to come in, in, say, late 2025 and into 2026, which is why a lot of the resource proposals you see at Georgia Power are to really serve the 2026-2027 winter peak to make sure they’re in place for that, and then it continues to grow from there.

Paul Patterson: Thanks so much and congratulations.

Chris Womack: Thank you.

Dan Tucker: Thanks Paul.

Operator: Thank you. And that will conclude today’s question-and-answer session. Sir, are there any closing remarks?

Chris Womack: Again, let me say, Southern Company had an exceptional year in 2023. And I am really excited about the future of this company. Let me thank everybody for joining us today, and wish everybody a happy day, and thank you very much.

Operator: Thank you, sir. Ladies and gentlemen, this concludes the Southern Company fourth quarter 2023 earnings call. You may now disconnect. Have a good day.