Income Taxes

3 Months Ended

Mar. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

As a part of the Inflation Reduction Act of 2022 (“IRA”), a new PTC for nuclear energy produced by existing nuclear energy plants (“Nuclear PTC”) was enacted, available from 2024 through 2032. The Nuclear PTC can be increased by five times if certain IRS prevailing wages rules are met. The Company continues to await guidance from the U.S. Treasury Department related to the definition of “gross receipts” from nuclear sales for purposes of the credit phase-out applicable to the Nuclear PTC.

The Company has claimed a $33.4 million benefit for the Nuclear PTC on its 2024 tax return using a revenue requirement methodology to determine its gross receipts from nuclear sales. In the continued absence of IRS guidance regarding the definition of gross receipts from nuclear sales, management intends to utilize this same methodology to claim a 2025 credit of $39.6 million. These benefits include the five times multiplier for complying with IRS prevailing wage rules. However, due to the continued lack of IRS guidance, management believes that there remains uncertainty as to whether the IRS will ultimately agree with the Company’s gross receipts methodology. As a result, the entire amount of the 2024 and 2025 benefits is recorded as uncertain tax positions. Additionally, the Company continues to evaluate whether it will be eligible to claim a 2026 tax credit. As of March 31, 2026, the Company continues to not recognize any income tax benefits related to the Nuclear PTC.

In March 2026, the IRS notified the Company of its intent to examine the Company's federal tax returns. We anticipate that the exam will focus primarily on 2023 general business tax credits that the Company carried back to tax year 2022, however, the IRS has not yet finalized the scope of its exam, and the final scope may cover subsequent tax years as well. As such, we are unable at this time to predict the outcome of this matter and whether it will have a material impact on our financial position, results of operations, or cash flows.