ceg-20240930

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission
File Number

Name of Registrant; State or Other Jurisdiction of Incorporation; Address of Principal Executive Offices; and Telephone Number

IRS Employer Identification Number

001-41137

CONSTELLATION ENERGY CORPORATION

87-1210716

(a Pennsylvania corporation)

1310 Point Street

Baltimore, Maryland 21231-3380

(833) 883-0162

333-85496

CONSTELLATION ENERGY GENERATION, LLC

23-3064219

(a Pennsylvania limited liability company)

200 Energy Way

Kennett Square, Pennsylvania 19348-2473

(833) 883-0162

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

CONSTELLATION ENERGY CORPORATION:

Common Stock, without par value

CEG

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Constellation Energy Corporation

Yes

☐

Constellation Energy Generation, LLC

Yes

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Constellation Energy Corporation

Large Accelerated Filer

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

Constellation Energy Generation, LLC

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No x

The number of shares outstanding of each registrant’s common stock as of October 31, 2024 was as follows:


Constellation Energy Corporation Common Stock, without par value			312,766,599
Constellation Energy Generation, LLC			Not applicable

TABLE OF CONTENTS


		Page No.
GLOSSARY OF TERMS AND ABBREVIATIONS		1
FILING FORMAT		4
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION		4
WHERE TO FIND MORE INFORMATION		4
PART I	FINANCIAL INFORMATION	4
ITEM 1.	FINANCIAL STATEMENTS	4
	Constellation Energy Corporation
	Consolidated Statements of Operations and Comprehensive Income	5
	Consolidated Statements of Cash Flows	6
	Consolidated Balance Sheets	7
	Consolidated Statements of Changes in Equity	9
	Constellation Energy Generation, LLC
	Consolidated Statements of Operations and Comprehensive Income	11
	Consolidated Statements of Cash Flows	12
	Consolidated Balance Sheets	13
	Consolidated Statements of Changes in Equity	15
	Combined Notes to Consolidated Financial Statements
	1. Basis of Presentation	17
	2. Mergers, Acquisitions, and Dispositions	17

	3. Revenue from Contracts with Customers	18
	4. Segment Information	20
	5. Government Assistance	23
	6. Accounts Receivable	23

	7. Nuclear Decommissioning	25

	8. Income Taxes	26
	9. Retirement Benefits	27
	10. Derivative Financial Instruments	28
	11. Debt and Credit Agreements	33
	12. Fair Value of Financial Assets and Liabilities	34
	13. Commitments and Contingencies	40

	14. Shareholders' Equity	41
	15. Variable Interest Entities	42
	16. Supplemental Financial Information	45


ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	48
	Executive Overview	48
	Significant Transactions and Developments	48
	Other Key Business Drivers	49
	Critical Accounting Policies and Estimates	49
	Financial Results of Operations	50
	Liquidity and Capital Resources	62
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	68
ITEM 4.	CONTROLS AND PROCEDURES	72
PART II	OTHER INFORMATION	72


ITEM 1.	LEGAL PROCEEDINGS	72
ITEM 1A.	RISK FACTORS	72
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	72
ITEM 4.	MINE SAFETY DISCLOSURES	73
ITEM 5.	OTHER INFORMATION	73
ITEM 6.	EXHIBITS	74
SIGNATURES		75
	Constellation Energy Corporation	75
	Constellation Energy Generation, LLC	76

Table of Contents


GLOSSARY OF TERMS AND ABBREVIATIONS
Constellation Energy Corporation and Related Entities
CEG Parent						Constellation Energy Corporation
Constellation						Constellation Energy Generation, LLC
Registrants						CEG Parent and Constellation, collectively
Antelope Valley						Antelope Valley Solar Ranch One
Calvert Cliffs						Calvert Cliffs nuclear generating station

Continental Wind						Continental Wind LLC
CR						Constellation Renewables, LLC
Crane						Crane Clean Energy Center (formerly known as Three Mile Island Unit 1)
CRP						Constellation Renewables Partners, LLC
FitzPatrick						James A. FitzPatrick nuclear generating station

NER						NewEnergy Receivables LLC
NMP						Nine Mile Point nuclear generating station
RPG						Renewable Power Generation, LLC

STP						South Texas Project nuclear generating station

West Medway II						West Medway Generating Station II


Former Related Entities
Exelon						Exelon Corporation
ComEd						Commonwealth Edison Company
PECO						PECO Energy Company
BGE						Baltimore Gas and Electric Company

Table of Contents


GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations


AEP Texas						American Electric Power Texas
AESO						Alberta Electric Systems Operator

AOCI						Accumulated Other Comprehensive Income (Loss)

ARC						Asset Retirement Cost
ARO						Asset Retirement Obligation


ASR						Accelerated Share Repurchase




CAISO						California ISO


CenterPoint						CenterPoint Energy Houston Electric, LLC


Clean Air Act						Clean Air Act of 1963, as amended


CMC						Carbon Mitigation Credit

CODM						Chief Operating Decision Maker








DOE						United States Department of Energy


DPP						Deferred Purchase Price







EPA						United States Environmental Protection Agency

ERCOT						Electric Reliability Council of Texas
ERISA						Employee Retirement Income Security Act of 1974, as amended



ERP						Enterprise Resource Planning



Exchange Act						Securities Exchange Act of 1934, as amended
FERC						Federal Energy Regulatory Commission

Former PECO Units						Limerick, Peach Bottom, and Salem nuclear generating units
Former ComEd Units						Braidwood, Byron, Dresden, LaSalle and Quad Cities nuclear generating units
FRCC						Florida Reliability Coordinating Council

GAAP						Generally Accepted Accounting Principles in the United States

GDP						Gross Domestic Product
GHG						Greenhouse Gas
GWh						Gigawatt hour

ICE						Intercontinental Exchange
IPA						Illinois Power Agency
IRA						Inflation Reduction Act of 2022

IRS						Internal Revenue Service
ISO						Independent System Operator
ISO-NE						ISO New England Inc.
ITC						Investment Tax Credit










MISO						Midcontinent Independent System Operator, Inc.



MW						Megawatt
MWh						Megawatt hour
Mystic COS						Mystic Cost of Service Agreement
NAV						Net Asset Value
NASDAQ						Nasdaq Stock Market, LLC
NDT						Nuclear Decommissioning Trust


NERC						North American Electric Reliability Corporation
NGX						Natural Gas Exchange, Inc.


Non-Regulatory Agreement Units						Nuclear generating units or portions thereof whose decommissioning-related activities are not subject to contractual elimination under regulatory accounting

Table of Contents


NPNS						Normal Purchase Normal Sale scope exception
NRC						Nuclear Regulatory Commission



NYISO						New York ISO
NYMEX						New York Mercantile Exchange

OCI						Other Comprehensive Income
OIESO						Ontario Independent Electricity System Operator
OPEB						Other Postretirement Employee Benefits




Pension Protection Act (the Act)						Pension Protection Act of 2006
PG&E						Pacific Gas and Electric Company
PJM						PJM Interconnection, LLC
PPA						Power Purchase Agreement
PP&E						Property, Plant, and Equipment


PSDAR						Post-shutdown Decommissioning Activities Report
PSEG						Public Service Enterprise Group Incorporated
PTC						Production Tax Credit




Regulatory Agreement Units						Nuclear generating units or portions thereof whose decommissioning-related activities are subject to contractual elimination under regulatory accounting (includes the Former ComEd units, the Former PECO units and STP)




RNF						Operating Revenues Net of Purchased Power and Fuel Expense

ROU						Right-of-use





RTO						Regional Transmission Organization
S&P						Standard & Poor’s Ratings Services

SEC						United States Securities and Exchange Commission
SERC						SERC Reliability Corporation (formerly Southeast Electric Reliability Council)

SNF						Spent Nuclear Fuel

SOFR						Secured Overnight Financing Rate

SPP						Southwest Power Pool


STPNOC						STP Nuclear Operating Company

TMA						Tax Matters Agreement
TSA						Transition Services Agreement
U.S. Treasury						U.S. Department of the Treasury



VIE						Variable Interest Entity
WECC						Western Electric Coordinating Council
ZEC						Zero Emission Credit

Table of Contents

FILING FORMAT

This combined Form 10-Q is being filed separately by Constellation Energy Corporation and Constellation Energy Generation, LLC, (the Registrants). Information contained herein relating to any individual Registrant is filed by the Registrant on its own behalf. Neither Registrant makes any representation as to information relating to the other Registrant.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.

The factors that could cause actual results to differ materially from the forward-looking statements made by us include those factors discussed herein, as well as the items discussed in (1) the Registrants' combined 2023 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 13, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.

Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. Neither Registrant undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.

WHERE TO FIND MORE INFORMATION

The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements, and other information that we file electronically with the SEC. These documents are also available to the public from commercial document retrieval services and our website at www.ConstellationEnergy.com. Information contained on our website shall not be deemed incorporated into, or to be a part of, this Report.

PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS

Table of Contents

Constellation Energy Corporation and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2024		2023		2024		2023
Operating revenues	$	6,550	$	6,111	$	18,186	$	19,122



Operating expenses
Purchased power and fuel	3,119		3,367		8,828		11,983

Operating and maintenance	1,535		1,353		4,666		4,263

Depreciation and amortization	266		266		868		808
Taxes other than income taxes	165		148		446		419
Total operating expenses	5,085		5,134		14,808		17,473

Gain (loss) on sales of assets and businesses	2		—		2		28


Operating income (loss)	1,467		977		3,380		1,677
Other income and (deductions)
Interest expense, net	(147)		(82)		(416)		(292)

Other, net	325		—		693		919
Total other income and (deductions)	178		(82)		277		627
Income (loss) before income taxes	1,645		895		3,657		2,304
Income tax (benefit) expense	449		205		768		677
Equity in income (losses) of unconsolidated affiliates	—		—		(1)		(11)
Net income (loss)	1,196		690		2,888		1,616
Net income (loss) attributable to noncontrolling interests	(4)		(41)		(9)		(44)
Net income (loss) attributable to common shareholders	$	1,200	$	731	$	2,897	$	1,660
Comprehensive income (loss), net of income taxes
Net income (loss)	$	1,196	$	690	$	2,888	$	1,616
Other comprehensive income (loss), net of income taxes
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost	(1)		—		(3)		(3)
Actuarial loss reclassified to periodic cost	15		5		53		18
Pension and non-pension postretirement benefit plan valuation adjustment	—		—		(4)		(53)
Unrealized gain (loss) on cash flow hedges	1		—		3		—
Unrealized gain (loss) on foreign currency translation	12		(2)		8		1
Other comprehensive income (loss), net of income taxes	27		3		57		(37)
Comprehensive income (loss)	1,223		693		2,945		1,579
Comprehensive income (loss) attributable to noncontrolling interests	(4)		(41)		(9)		(44)
Comprehensive income (loss) attributable to common shareholders	$	1,227	$	734	$	2,954	$	1,623

Average shares of common stock outstanding:
Basic	313		322		315		324
Assumed exercise and/or distributions of stock-based awards	1		1		1		1
Diluted	314		323		316		325

Earnings per average common share
Basic	$	3.83	$	2.27	$	9.20	$	5.12
Diluted	$	3.82	$	2.26	$	9.17	$	5.11

See the Combined Notes to Consolidated Financial Statements

Table of Contents

Constellation Energy Corporation and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended September 30,
(In millions)	2024		2023
Cash flows from operating activities
Net income (loss)	$	2,888	$	1,616
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization	2,049		1,840


Deferred income taxes and amortization of ITCs	358		189
Net fair value changes related to derivatives	(1,161)		146
Net realized and unrealized (gains) losses on NDT funds	(475)		(154)
Net realized and unrealized (gains) losses on equity investments	115		(490)
Other non-cash operating activities	(161)		147
Changes in assets and liabilities:
Accounts receivable	1,083		942

Inventories	31		90
Accounts payable and accrued expenses	(38)		(1,526)
Option premiums received (paid), net	159		(36)
Collateral received (posted), net	1,495		(222)
Income taxes	154		277
Pension and non-pension postretirement benefit contributions	(178)		(46)
Other assets and liabilities	(7,767)		(4,892)
Net cash flows provided by (used in) operating activities	(1,448)		(2,119)
Cash flows from investing activities
Capital expenditures	(1,836)		(1,735)
Proceeds from NDT fund sales	4,934		4,221
Investment in NDT funds	(5,140)		(4,374)
Collection of DPP, net	7,104		4,058

Acquisitions of assets and businesses	(22)		(21)
Other investing activities	16		30
Net cash flows provided by (used in) investing activities	5,056		2,179
Cash flows from financing activities
Change in short-term borrowings	(1,105)		(959)
Proceeds from short-term borrowings with maturities greater than 90 days	200		527
Repayments of short-term borrowings with maturities greater than 90 days	(739)		(200)
Issuance of long-term debt	900		3,192
Retirement of long-term debt	(99)		(150)
Dividends paid on common stock	(333)		(277)
Repurchases of common stock	(999)		(750)
Other financing activities	(5)		6
Net cash flows provided by (used in) financing activities	(2,180)		1,389
Increase (decrease) in cash, restricted cash, and cash equivalents	1,428		1,449
Cash, restricted cash, and cash equivalents at beginning of period	454		528
Cash, restricted cash, and cash equivalents at end of period	$	1,882	$	1,977

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid	$	20	$	(63)
Increase (decrease) in DPP	7,682		5,288
Increase (decrease) in PP&E related to ARO update	(1,475)		762

See the Combined Notes to Consolidated Financial Statements

Table of Contents

Constellation Energy Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	September 30, 2024		December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	1,793	$	368
Restricted cash and cash equivalents	89		86
Accounts receivable
Customer accounts receivable (net of allowance for credit losses of $55 and $56 as of September 30, 2024 and December 31, 2023, respectively)	1,208		1,934
Other accounts receivable (net of allowance for credit losses of $6 and $5 as of September 30, 2024 and December 31, 2023)	557		917
Mark-to-market derivative assets	632		1,179


Inventories, net
Natural gas, oil, and emission allowances	209		284
Materials and supplies	1,263		1,216


Renewable energy credits	700		660

Other	2,819		1,655
Total current assets	9,270		8,299
Property, plant, and equipment (net of accumulated depreciation and amortization of $17,972 and $17,423 as of September 30, 2024 and December 31, 2023, respectively)	20,892		22,116
Deferred debits and other assets

Nuclear decommissioning trust funds	17,694		16,398
Investments	494		563
Goodwill	420		425
Mark-to-market derivative assets	732		995




Deferred income taxes	35		52
Other	2,297		1,910
Total deferred debits and other assets	21,672		20,343
Total assets(a)	$	51,834	$	50,758

See the Combined Notes to Consolidated Financial Statements

Table of Contents

Constellation Energy Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	September 30, 2024		December 31, 2023
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings	$	—	$	1,644
Long-term debt due within one year	1,034		121

Accounts payable and accrued expenses	2,685		2,612



Mark-to-market derivative liabilities	502		632

Renewable energy credit obligation	909		972

Other	322		338
Total current liabilities	5,452		6,319
Long-term debt	7,378		7,496


Deferred credits and other liabilities
Deferred income taxes and unamortized ITCs	3,554		3,209
Asset retirement obligations	12,322		14,118
Pension obligations	867		1,070
Non-pension postretirement benefit obligations	774		732
Spent nuclear fuel obligation	1,349		1,296


Payables related to Regulatory Agreement Units	4,828		3,688
Mark-to-market derivative liabilities	341		419


Other	2,028		1,125
Total deferred credits and other liabilities	26,063		25,657
Total liabilities(a)	38,893		39,472
Commitments and contingencies (Note 13)

Shareholders' equity
Common stock (No par value, 1,000 shares authorized, 313 shares and 317 shares outstanding as of September 30, 2024 and December 31, 2023, respectively)	11,379		12,355
Retained earnings (deficit)	3,325		761
Accumulated other comprehensive income (loss), net	(2,134)		(2,191)
Total shareholders' equity	12,570		10,925
Noncontrolling interests	371		361
Total equity	12,941		11,286
Total liabilities and shareholders' equity	$	51,834	$	50,758

__________

(a)Our consolidated assets include $3,992 million and $3,355 million at September 30, 2024 and December 31, 2023, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $982 million and $990 million at September 30, 2024 and December 31, 2023, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 15 — Variable Interest Entities for additional information.

See the Combined Notes to Consolidated Financial Statements

Table of Contents

Constellation Energy Corporation and Subsidiary Companies

Consolidated Statements of Changes in Equity

(Unaudited)


	Nine Months Ended September 30, 2024
	Shareholders' Equity
(In millions, shares in thousands)	Issued Shares	Common Stock		Retained Earnings (Deficit)		Accumulated Other Comprehensive Income (Loss), net		Noncontrolling Interests		Total Equity
Balance, December 31, 2023	317,472	$	12,355	$	761	$	(2,191)	$	361	$	11,286
Net Income (loss)	—	—		883		—		—		883
Employee incentive plans	661	(4)		—		—		—		(4)

Common stock dividends ($0.3525/common share)	—	—		(112)		—		—		(112)
Common stock repurchased	(2,900)	(504)		—		—		—		(504)
Other comprehensive income (loss), net of income taxes	—	—		—		11		—		11
Balance, March 31, 2024	315,233	$	11,847	$	1,532	$	(2,180)	$	361	$	11,560
Net Income (loss)	—	—		814		—		(5)		809
Employee incentive plans	72	8		—		—		—		8

Common stock dividends ($0.3525/common share)	—	—		(110)		—		—		(110)
Common stock repurchased	(2,091)	(505)		—		—		—		(505)
Other comprehensive income (loss), net of income taxes	—	—		—		19		—		19
Balance, June 30, 2024	313,214	$	11,350	$	2,236	$	(2,161)	$	356	$	11,781
Net Income (loss)	—	—		1,200		—		(4)		1,196
Employee incentive plans	78	29		—		—		—		29
Changes in equity of noncontrolling interests	—	—		—		—		19		19
Common stock dividends ($0.3525/common share)	—	—		(111)		—		—		(111)
Common stock repurchased	(528)	—		—		—		—		—
Other comprehensive income (loss), net of income taxes	—	—		—		27				27
Balance, September 30, 2024	312,764	$	11,379	$	3,325	$	(2,134)	$	371	$	12,941

See the Combined Notes to Consolidated Financial Statements

Table of Contents


	Nine Months Ended September 30, 2023
	Shareholders' Equity
(In millions, shares in thousands)	Issued Shares	Common Stock		Retained Earnings (Deficit)		Accumulated Other Comprehensive Income (Loss), net		Noncontrolling Interests		Total Equity
Balance, December 31, 2022	327,130	$	13,274	$	(496)	$	(1,760)	$	354	$	11,372
Net Income (loss)	—	—		96		—		6		102
Employee incentive plans	528	6		—		—		—		6
Changes in equity of noncontrolling interests	—	—		—		—		(2)		(2)
Common stock dividends ($0.2820/common share)	—	—		(93)		—		—		(93)
Common stock repurchased	(3,239)	(251)		—		—		—		(251)
Other comprehensive income (loss), net of income taxes	—	—		—		(48)		—		(48)
Balance, March 31, 2023	324,419	$	13,029	$	(493)	$	(1,808)	$	358	$	11,086
Net Income (loss)	—	—		833		—		(9)		824
Employee incentive plans	115	31		—		—		—		31
Changes in equity of noncontrolling interests	—	—		—		—		7		7
Common stock dividends ($0.2820/common share)	—	—		(92)		—		—		(92)
Common stock repurchased	(2,958)	(252)		—		—		—		(252)
Other comprehensive income, net of income taxes	—	—		—		8		—		8
Balance, June 30, 2023	321,576	$	12,808	$	248	$	(1,800)	$	356	$	11,612
Net Income (loss)	—	—		731		—		(41)		690
Employee incentive plans	144	21		—		—		—		21
Changes in equity of noncontrolling interests	—	—		—		—		19		19
Common stock dividends ($0.2820/common share)	—	—		(92)		—		—		(92)
Common stock repurchased	(2,338)	(253)		—		—		—		(253)
Other comprehensive income, net of income taxes	—	—		—		3		—		3
Balance, September 30, 2023	319,382	$	12,576	$	887	$	(1,797)	$	334	$	12,000

See the Combined Notes to Consolidated Financial Statements

Table of Contents

Constellation Energy Generation, LLC and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2024		2023		2024		2023
Operating revenues	$	6,550	$	6,111	$	18,186	$	19,122



Operating expenses
Purchased power and fuel	3,119		3,367		8,828		11,983

Operating and maintenance	1,535		1,353		4,666		4,263

Depreciation and amortization	266		266		868		808
Taxes other than income taxes	165		148		446		419
Total operating expenses	5,085		5,134		14,808		17,473

Gain (loss) on sales of assets and businesses	2		—		2		28


Operating income (loss)	1,467		977		3,380		1,677
Other income and (deductions)
Interest expense, net	(147)		(82)		(416)		(292)

Other, net	325		—		693		919
Total other income and (deductions)	178		(82)		277		627
Income (loss) before income taxes	1,645		895		3,657		2,304
Income tax (benefit) expense	449		205		768		677
Equity in income (losses) of unconsolidated affiliates	—		—		(1)		(11)
Net income (loss)	1,196		690		2,888		1,616
Net income (loss) attributable to noncontrolling interests	(4)		(41)		(9)		(44)
Net income (loss) attributable to membership interest	$	1,200	$	731	$	2,897	$	1,660
Comprehensive income (loss), net of income taxes
Net income (loss)	$	1,196	$	690	$	2,888	$	1,616
Other comprehensive income (loss), net of income taxes
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost	(1)		—		(3)		(3)
Actuarial loss reclassified to periodic cost	15		5		53		18
Pension and non-pension postretirement benefit plan valuation adjustment	—		—		(4)		(53)
Unrealized gain (loss) on cash flow hedges	1		—		3		—
Unrealized gain (loss) on foreign currency translation	12		(2)		8		1
Other comprehensive income (loss), net of income taxes	27		3		57		(37)
Comprehensive income (loss)	1,223		693		2,945		1,579
Comprehensive income (loss) attributable to noncontrolling interests	(4)		(41)		(9)		(44)
Comprehensive income (loss) attributable to membership interest	$	1,227	$	734	$	2,954	$	1,623

See the Combined Notes to Consolidated Financial Statements

Table of Contents

Constellation Energy Generation, LLC and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended September 30,
(In millions)	2024	2023