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The Southern (SO) Thomas A. Fanning on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Call

April 27, 2016 1:00 pm ET

Executives

Aaron Abramovitz - Director - Investor Relations

Thomas A. Fanning - Chairman, President & Chief Executive Officer

Arthur P. Beattie - Chief Financial Officer & Executive Vice President

Analysts

Greg Gordon - Evercore ISI

Julien Dumoulin-Smith - UBS Securities LLC

James von Riesemann - Mizuho Securities USA, Inc.

Ali Agha - SunTrust Robinson Humphrey, Inc.

Paul T. Ridzon - KeyBanc Capital Markets, Inc.

Mark Barnett - Morningstar Research

Paul Patterson - Glenrock Associates LLC

Daniel F. Jenkins - State of Wisconsin Investment Board

Operator

Good afternoon. My name is Benjamin, and I will be your conference operator today. At this time, I would like to welcome everyone to Southern Co.'s First Quarter 2016 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

I would now like to turn the call over to Mr. Aaron Abramovitz, Director of Investor Relations. Please go ahead, sir.

Aaron Abramovitz - Director - Investor Relations

Thank you, Benjamin. Welcome to Southern Co.'s First Quarter 2016 Earnings Call. Joining me this afternoon are Tom Fanning, Chairman, President and Chief Executive Officer of Southern Co.; and Art Beattie, Chief Financial Officer.

Let me remind you that we will make 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 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. The slides we will discuss during today's call may be viewed on our Investor Relations website at investors.southerncompany.com.

At this time, I will turn the call over to Tom Fanning.

Thomas A. Fanning - Chairman, President & Chief Executive Officer

Good afternoon, and thank you for joining us. We appreciate your interest in Southern Company. We had another good quarter to begin 2016, a great start to the year, and we are making excellent progress on many fronts. Art will provide an overview of our financial results in just a minute. But first, I'd like to provide you with a brief update of our regulatory calendar in Georgia, and updates on the Vogtle and Kemper projects.

As many of you are aware, 2016 is a busy year for regulatory filings in Georgia; an IRP filing, two VCM filings, a merger approval application, a potential rate increase and the Vogtle contractor settlement filing, which has been extended by the Georgia Public Service Commission to review all costs of the project incurred to-date.

To summarize, first, Georgia Power filed its triennial integrated resource plan, or IRP, in January. The PSC is expected to vote on the company's plan this July.

Second, the PSC unanimously approved Georgia Power's 13th Vogtle Construction Monitoring Report in February. And later that same month, Georgia Power filed the 14th VCM Report to be voted on in August.

Third, Southern Co. and AGL Resources received unanimous regulatory approval of our companies' proposed merger from the Georgia PSC earlier this month, with all intervening parties in support of the settlement agreement.

Fourth, Georgia Power has agreed to extend its current rate plan until 2019, and to keep base rates flat for the next few years.

Fifth and finally, as you may recall in January, Georgia Power filed an application with the Georgia PSC for review of the $350 million settlement with the Vogtle 3 and Vogtle 4 EPC contractors. The Commission voted to move forward with an expanded process which will examine the full project cost and schedule. Consistent with that February order, Georgia Power filed a Supplemental Information Report, which provides compelling support that all project costs incurred to date for Vogtle Units 3 and 4 have been prudent, and that the current cost and schedule forecast is reasonable. The filing includes reports from several subject matter experts, which support that conclusion.