Jul 30, 2026 earnings call — Large data-center contracts and strong earnings
Signed a 3.2 GW, 25-year OpenAI contract and Alabama added approximately 3 GW, bringing total large-load contracts to over 17 GW.
Revenue $7.0B (est $7.2B) · EPS $1.13 (est $1.01)
Key quotes
"In just the last quarter, there were three projects across the state of Alabama, Alabama Power added approximately 3 GW, while Georgia Power signed a 3.2 GW 25-year contract for electric service with OpenAI at its recently announced site near Savannah, Georgia."
"For the second quarter of 2026, our adjusted EPS was $1.13 per share, $0.21 higher than the second quarter of 2025 and $0.13 above our estimate."
"In the second quarter, we sourced an additional $700 million of equity through our at-the-market or ATM program with forward contracts to settle at our discretion through 2028."
Analyst Q&A 10
More big customers' effect on rates
Q (Nick Campanella · Barclays): Analyst asked how higher visibility on megawatts and load ramps affects incremental sales revenue and the company's ability to extend or stay out further on the regulatory front. He also asked whether the 3 GW being finalized is within the 2030 window and what milestones remain.
A: Management said they expect to be at the top half of their long-term earnings trajectory and that extended rate stability in Georgia and Alabama creates optionality to provide rate stability for customers. They said the signed contracts give flexibility and durability, that they are about 1 GW or 2 away from selling out capacity approved in Georgia, and that the 3 GW being worked on will initiate ramp-up in 2028 and into the next decade.
"As we work through these processes with the success that we have had in signing these contracts, you know, it does give us a great deal of flexibility and enhancing the benefits for customers." — David P. Poroch (CFO)
Recontracting Southern Power capacity
Q (Shahriar Pourreza · Wells Fargo): Analyst asked whether Southern Power's tolling agreements rolling off can be repurposed for hyperscalers, whether conversations with hyperscalers have begun, and if those opportunities count in the 75 GW pipeline. He also asked about hyperscalers taking on nuclear cost-overrun risk.
A: Management said the team is having conversations with many counterparties about recontracting as contracts expire and that market pricing today shows upside opportunities which will add to their long-term plan. On new nuclear, management said Southern Company is not going to be next to build a unit but will work constructively with the administration and other parties, and they are having conversations with hyperscalers about what role they can play on cost issues without reaching a firm conclusion yet.
"The team is now in the midst of having those conversations with a host of different counterparties that you understand our risk profile there in terms of making sure that they are creditworthy counterparties." — Christopher C. Womack (CEO·CHAIR)
FERC pipeline and RFP timing
Q (Carly Davenport · Goldman Sachs): Analyst asked about any update on FERC-regulated pipeline investments and timing, and whether incremental RFPs could lead to incremental gas plant builds. He also asked if recent load progression was already included in RFP filings and whether there is upside beyond current RFPs.
A: Management said they see opportunities for expanded FERC-regulated pipeline investments as growth in the Southeast continues, and that current RFPs and regulatory processes will help inform that. They said their load forecast is used conservatively to form RFPs, there is potential to procure more generation than currently identified, but upside is not in the capital plan today; OpenAI pushes capacity beyond recently approved capacity by about 1 GW.
"But, you know, as the opportunities continue to grow, we do see the possibility of expanded opportunities in, in those, investments that currently hold." — David P. Poroch (CFO)
How much new generation is needed
Q (Stephen D’Ambrisi · RBC): Analyst asked how many gigawatts of incremental generation might be required to serve new large load in Alabama and Georgia and how to think about sequencing and timing for when those loads would energize and resources needed.
A: Management said directionally the analyst's thinking was correct: newly signed contracts in Alabama amount to about 3 GW and Georgia is about 1 GW oversubscribed based on what has been signed. They said projects vary by project, finalizing and commission certification will inform RFPs to match resource timing, and if the company is selected to provide generation they will start to feather in spend with resources coming online around 2030–2031.
"you know, we have got the newly signed contracts in Alabama. that is gonna inform that. that is about 3 GW right there, contracts signed." — David P. Poroch (CFO)
Mississippi outlook and demand response
Q (Jeremy Tonet · JPMorgan): Analyst asked about the outlook for Mississippi given receptiveness to data center activity and what the opportunity set looks like there. He also asked how demand response fits into conversations and assumptions for projects in the pipeline.
A: Management said momentum has migrated west and they have seen success with 100 MW projects in Mississippi and that their pipeline reflects that activity. They said demand response is part of every conversation, they can negotiate bilateral contracts across their three electric jurisdictions (not limited to a tariff) to leverage flexibility and price it right, and they see demand response as a useful trend.
"it is one of the actually, one of the great aspects that our 3 electric jurisdictions have where we are not limited to just a tariff." — David P. Poroch (CFO)
Credit protections and RFP timeline
Q (Steven Fleishman · Wolfe): Analyst asked how tariffs and credit protections work for customers who are not investment-grade, timelines for RFP selections and approvals, and whether political noise in Georgia is changing appreciation for data center benefits.
A: Management said contracts (like OpenAI's 25-year deal) include minimum bills that cover 100% of incremental cost to serve, default provisions tied to collateral, and they have flexibility on forms of collateral to achieve about an A- position; the whole 17 GW portfolio has about $21 billion of collateral. They said the RFP selection process should be clear by year end, with certification through much of 2027, and that while there is political noise, projects and approvals continue and communication of benefits is important.
"Our minimum bills cover 100% of the incremental cost to serve." — David P. Poroch (CFO)
Demand response and equity pace
Q (Andrew Weisel · Scotiabank): Analyst asked whether the gigawatt of demand response is the first time they've used that for a data center and whether they quantified savings or benefits to other customers. He also asked how to think about the pace of equity issuance and how it will hit over the next few years.
A: Management said the demand response resource will benefit the entire customer base by shaving peak and providing flexible, economical resources to the grid, and that this is the first time they have done that for a data center. On equity, management said equity commitments are flexible and available on short notice, they generally shape draws to mirror capital outlays and to help reach about 17% FFO to debt by 2029, and they will manage liquidity in a shareholder-friendly way while protecting credit quality.
"We generally wanna shape that in terms of kind of mirroring, if you will, our capital outlays." — David P. Poroch (CFO)
Rates and returning credits to customers
Q (Julien Dumoulin-Smith · Jefferies): Analyst asked if the company can come back with bigger rate credits or otherwise update tariffs in Georgia and Alabama as load growth continues, and how that growth transposes into rates and the CMP process in Alabama.
A: Management said they do not get ahead of regulators and work constructively with them, with the goal of keeping rates as low as possible for customers and delivering rate stability through 2028. They said growth provides opportunities to benefit customers, and in Alabama the traditional certification and RFP proceedings (including the CMP) are orderly processes to approve projects and put them into rates.
"I mean, our goal at all times is to keep rates as low as possible for our customers." — Christopher C. Womack (CEO·CHAIR)
Southern Power updates and sales ramp
Q (Richard Sunderland · Truist): Analyst asked about interest and tone on remaining Southern Power upgrades and brownfield efforts and whether a Southern Power update is planned. He also asked about learnings from sales growth and data center ramp-up and the impact on EPS guidance.
A: Management said they continue to evaluate Southern Power opportunities with current and new counterparties in a disciplined process and see potential to reprice contracts and execute upgrades, with updates to come. They said they must work closely with projects on actual ramp rates, that minimum bills help decouple revenue and provide protections for customers and the company, and that the load is real even if it ramps over time.
"But the bottom line is the load is very real." — Christopher C. Womack (CEO·CHAIR)
OpenAI site and equity partners
Q (Travis Miller · Morningstar): Analyst asked what made the OpenAI location unique and where else similar large projects could be built quickly in the territory. He also asked whether the company would consider taking minority investments from partners to meet future equity needs.
A: Management said site selection involves many factors—geography, topography, electric infrastructure, and other energy resources—and that they have multiple meaningful sites across the territory (not disclosed as proprietary), mentioning Savannah and Effingham County as strong economic areas. They also said they evaluate many structures but do not see the need for minority investment partners for foreseeable future and are comfortable with current securities issuance options.
"I just do not see that as a need for us at least for the foreseeable future." — David P. Poroch (CFO)