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Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
10. Property, Plant and Equipment
Successor
December 31, 2024December 31, 2023
Estimated Useful Life (years)Gross ValueAccumulated DepreciationCarrying ValueGross ValueAccumulated DepreciationCarrying Value
Electric generation
3-27
$3,030 $(292)$2,738 $3,178 $(109)$3,069 
Nuclear fuel
1-6
322 (152)170 228 (55)173 
Other property and equipment
1-26
90 (18)72 358 (21)337 
Capitalized software
1-5
8 (3)5 6 (1)5 
Construction work in progress169 — 169 255 — 255 
Property, plant and equipment, net$3,619 $(465)$3,154 $4,025 $(186)$3,839 

The components of “Depreciation, amortization and accretion” presented on the Consolidated Statements of Operations for the periods were: 
SuccessorPredecessor
Year Ended December 31, 2024May 18 through December 31, 2023January 1 through May 17, 2023Year Ended December 31, 2022
Depreciation expense (a)
$225 $133 $173 $432 
Amortization expense (b)
16 1 4 12 
Accretion expense (c)
57 31 24 78 
Other
— — (1)(2)
Depreciation, amortization and accretion $298 $165 $200 $520 
__________________
(a)Electric generation and other property and equipment.
(b)Intangible assets and capitalized software.
(c)ARO and accrued environmental cost accretion. See Note 11 for additional information.
The cost of nuclear fuel and the amortization of nuclear fuel intangible assets are presented as “Nuclear fuel amortization” on the Consolidated Statements of Operations.
Amortization expense related to nuclear fuel intangible assets was $33 million for the year ended December 31, 2024 (Successor) and $53 million for the period from May 18 through December 31, 2023 (Successor). Estimated intangible assets amortization expense for the next four years is:
202520262027
2028 (a)
Estimated amortization expense$14 $5 $3 $1 
__________________
(a)Supply contracts underlying the nuclear fuel intangible assets expire in 2028.
The carrying value of nuclear fuel intangible assets presented as “Other noncurrent assets” on the Consolidated Balance Sheets was $23 million as of December 31, 2024 (Successor) and $56 million as of December 31, 2023 (Successor).
Jointly Owned Facilities
Certain of Talen's subsidiaries own undivided interests in jointly owned electric generation facilities and related assets. These generation facilities and other assets are maintained and operated pursuant to their joint ownership participation and operating agreements. Under such arrangements, each participant is responsible for funding its proportional share of costs and is entitled to its proportionate share of electric generation and (or) other attributes of the relevant jointly owned facilities. Talen's proportional share of gross margin and other operating costs for its undivided interests is presented within the Consolidated Statements of Operations.
Talen owns undivided interest of 90% in Susquehanna, 22.22% in Conemaugh, and 12.34% in Keystone. See below for information regarding the ownership of Colstrip in Montana. The carrying value of Colstrip, Conemaugh, and Keystone were non-material as of December 31, 2024 (Successor) and December 31, 2023 (Successor).
The proportionate share of “Property, plant and equipment, net” related to Susquehanna presented on the Consolidated Balance Sheets was:
Successor
December 31, 2024December 31, 2023
Ownership interest90%90%
Electric generation$2,206 $2,187 
Nuclear fuel322 228 
Other property and equipment25 19 
Capitalized software2 2 
Construction work in progress109 95 
Proportionate property, plant and equipment, cost2,664 2,531 
Less: accumulated depreciation and amortization326 121 
Proportionate property, plant and equipment, net$2,338 $2,410 
Talen Montana. Talen Montana owns 30% of Colstrip Unit 3 and does not own any portion of Colstrip Unit 4. However, it is a participant in a joint-owner sharing agreement which governs each party’s responsibilities and rights whereby Talen Montana is responsible for 15% of the total operating costs and expenditures of Colstrip Unit 3 and 15% of Colstrip Unit 4. Accordingly, it is entitled to 15% of the available generation from each of these units. In January 2020, Talen Montana and the other co-owner of Colstrip Units 1 and 2 permanently retired the units. Talen Montana is responsible for 50% of the decommissioning and other related costs of Colstrip Units 1 and 2.
Reliability Impact Assessments
Brandon Shores and H.A Wagner RMR Arrangements. In 2023, we notified PJM of our intent to deactivate electric generation at both our Brandon Shores and H.A. Wagner facilities on June 1, 2025. However, PJM subsequently notified us that both Brandon Shores and H.A Wagner are needed past their previously planned retirement dates to maintain reliability in PJM. In January 2025, we reached a settlement (which remains subject to FERC approval) with key stakeholders on the terms of an RMR arrangement and filed with FERC the resulting Joint Offers of Settlement regarding both facilities’ RMR Continuing Operations Rates Schedules (the “CORS”). If approved, the proposed RMR arrangements will extend the operating life of these plants through May 31, 2029, or until such time as the necessary transmission upgrades are placed into service. Beginning June 1, 2025, the CORS will provide a monthly fixed-cost payment of $12,083,333 ($312/MW-day) for Brandon Shores and $2,916,667 ($137/MW-day) for H.A Wagner, which includes a performance “hold back” of $416,667 per month for Brandon Shores and $208,333 per month for H.A Wagner, each to be paid out based on unit performance. We will also receive separate reimbursement for variable costs and approved project investments.
2023 Impairment
Brandon Shores Asset Group. Brandon Shores is required by contract and permit to cease coal combustion by December 31, 2025. In the first quarter 2023, Talen canceled its plan to convert Brandon Shores to an oil combustion facility due to an increase in expected conversion costs. This decision triggered a recoverability assessment of the carrying value of the Brandon Shores asset group. Brandon Shores notified PJM that it will deactivate electric generation on June 1, 2025. See above for additional information.
The recoverability analysis indicated that the Brandon Shores asset group carrying value exceeded its future estimated undiscounted cash flows, which required an impairment charge to amend the asset group’s carrying value of its PP&E to its estimated fair value. The estimated fair value of the asset group was determined by a discounted cash flow technique that utilized significant unobservable inputs including an 11% discount rate. We believe that the utilized discount rate and other discounted cash flow assumptions are consistent with those used by principal market participants. Such assumptions consider available evidence regarding the prospects of future cash flows for the Brandon Shores asset group, including but not limited to estimated available future generation volumes and useful lives, capacity prices, energy prices, operating costs, capital expenditures, and environmental costs. Accordingly, for the period from January 1 through May 17, 2023 (Predecessor), a $361 million non-cash pre-tax impairment charge on the asset group’s undepreciated PP&E is presented as “Impairments” on the Consolidated Statements of Operations.
Equity Method Investments
Talen holds equity interests in Conemaugh Fuels and Keystone Fuels equal to its respective undivided ownership interests in Conemaugh and Keystone. Conemaugh Fuels and Keystone Fuels were formed to purchase coal and sell it to Conemaugh and Keystone. Additionally, they may sell coal to any entity that manufactures or produces synthetic fuel from coal for resale to Conemaugh and Keystone. The aggregate affiliated fuel purchases by Talen from Conemaugh Fuels and Keystone Fuels is presented as “Fuel and energy purchases” on the Consolidated Statements of Operations. Talen’s aggregate fuel purchases for Conemaugh and Keystone Fuels were $35 million for the year ended December 31, 2024 (Successor), $23 million for the period from May 18 through December 31, 2023 (Successor) and $14 million for the period from January 1 through May 17, 2023 (Predecessor). For the year ended December 31, 2022 (Predecessor), Talen’s aggregate fuel purchases were $63 million.