Talen Energy Corp

Recent Developments

PJM Capacity Monetization

On October 1, 2026, TEM closed on a capacity monetization agreement to sell rights to approximately $1.5 billion in future PJM capacity cash flows for the 2027/2028 and 2028/2029 PJM Capacity Years and the Company used the net proceeds of $1.3 billion to fund accelerated share repurchases.

See Note 3 to the Interim Financial Statements for additional information.

Upsize of Share Repurchase Program and Accelerated Share Repurchases

In September 2026, the Board of Directors approved the upsizing of the Company’s existing SRP from $1.5 billion to an aggregate remaining capacity of $3 billion, subject to utilization under the ASR program.

On October 1, 2026, the Company received and retired 3,811,460 shares of TEC common stock repurchased under ASR program with multiple dealers, which is equivalent to 80% of the aggregate $1.5 billion value of the ASR program. The final settlement is expected to be completed no later than the first quarter of 2027. The accelerated share repurchases are being funded by net proceeds of $1.3 billion from the capacity monetization transaction and cash on hand.

See Note 15 to the Interim Financial Statements for additional information.

Common Stock Repurchases

During the three months ended September 30, 2026, the Company repurchased and retired 600,000 shares of TEC’s outstanding common stock under the SRP, separate from the ASR program. The aggregate purchase price, including transaction fees, was $204 million at a weighted average price of $339.48 per share. As of September 30, 2026, the remaining capacity under the SRP was $3.0 billion through 2028.

See Note 15 to the Interim Financial Statements and “Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds” of this Report for additional information on the SRP.