Talen Energy Corp
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
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4. Revenue
- 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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.