Analyst Note| Charles Fishman, CFA |
We are reaffirming our $64 fair value estimate for narrow-moat Southern after further delays for the commercial operation of Vogtle Unit 3 were announced. On May 18, Southern informed Georgia regulators that problems surfaced during hot functional testing that would delay Unit 3's startup by at least one month. Southern now believes it is unlikely that Unit 3 will begin generating electricity until sometime during the first quarter of 2022. Less than one month ago, Southern announced a new target in-service date of December.