Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

4. Revenue

The disaggregation of our operating revenues for the periods were:

	Successor								Predecessor
	Three Months Ended September 30, 2024		Three Months Ended September 30, 2023		Nine Months Ended September 30, 2024		May 18 through September 30, 2023		January 1 through May 17, 2023
Capacity revenues	$	50	$	44	$	141	$	70	$	108
Electricity sales and ancillary services, ISO/RTO	351		558		865		688		281
Physical electricity sales, bilateral contracts, other	38		35		124		41		62
Other revenue from customers	20		29		91		44		27
Total revenue from contracts with customers	459		666		1,221		843		478
Realized and unrealized gain (loss) on derivative instruments	119		(150)		276		(26)		732
Nuclear PTC and other revenue (a)	72		—		151		—		—
Operating revenues	$	650	$	516	$	1,648	$	817	$	1,210

__________________

(a)During the nine months ended September 30, 2024, $90 million of estimated Nuclear PTCs were utilized as a credit against our federal income tax payable. See Note 5 for additional information on the tax impact of the Nuclear PTC

Accounts Receivable

“Accounts receivable, net” presented on the Consolidated Balance Sheets were:

	Successor
	September 30, 2024		December 31, 2023
Customer accounts receivable	$	50	$	52
Other accounts receivable	47		85
Accounts receivable, net	$	97	$	137

During the nine months ended September 30, 2024 (Successor), the period from May 18 through September 30, 2023 (Successor), and the period from January 1 through May 17, 2023 (Predecessor), there were no significant changes in accounts receivable other than normal receivable recognition and collection transactions. See Note 3 for additional information on Talen’s credit risk on the carrying value of its receivables.

Future Performance Obligations

In the normal course of business, Talen has future performance obligations for capacity sales awarded through market-based capacity auctions and (or) for capacity sales under bilateral contractual arrangements.

The PJM capacity auction for the 2025/2026 PJM Capacity Year was held in July 2024. Talen cleared a total of 6,820 MW at a clearing price of $269.92 per MW-day for the MAAC, PPL, and PSEG locational deliverability areas. The PJM capacity auctions for any years thereafter have not yet been held. See Note 10 for additional information on the PJM BRAs.

As of September 30, 2024 (Successor), the expected future period capacity revenues subject to unsatisfied or partially unsatisfied performance obligations were:

	2024 (a)		2025		2026		2027		2028
Expected capacity revenues	$	51	$	478	$	280	$	3	$	1

__________________

(a)For the period from October 1 through December 31, 2024.