Talen Energy Corp
For the period ended Mar 31, 2025. Filed May 8, 2025.
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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.
Mar 31, 2025 · Filed May 8, 2025
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8. Property, Plant and Equipment
- Property, Plant and Equipment
| March 31, 2025 · December 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|
| Estimated Useful Life (years) | Gross Value | Accumulated Depreciation | Carrying Value | Gross Value | Accumulated Depreciation | Carrying Value | |
| Electric generation | 3-27 | $3,057 | $(340) | $2,717 | $3,030 | $(292) | $2,738 |
| Nuclear fuel | 1-6 | 426 | (174) | 252 | 322 | (152) | 170 |
| Other property and equipment | 1-26 | 89 | (21) | 68 | 90 | (18) | 72 |
| Capitalized software | 1-5 | 8 | (3) | 5 | 8 | (3) | 5 |
| Construction work in progress | 96 | — | 96 | 169 | — | 169 | |
| Property, plant and equipment, net | $3,676 | $(538) | $3,138 | $3,619 | $(465) | $3,154 | |
The components of “Depreciation, amortization and accretion” presented on the Consolidated Statements of Operations for the periods were:
| Three Months Ended March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Depreciation expense (a) | $55 | $60 |
| Amortization expense (b) | 5 | 2 |
| Accretion expense (c) | 14 | 13 |
| Depreciation, amortization and accretion | $74 | $75 |
(a)Electric generation and other property and equipment.
(b)Intangible assets and capitalized software.
(c)ARO and accrued environmental cost accretion. See Note 9 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.
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 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”). On May 1, 2025, the FERC approved the terms under which Talen will operate 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 an annual fixed-cost payment of $145 million ($312/MWd) for Brandon Shores and $35 million ($137/MWd) for H.A. Wagner, which includes a performance “hold back” of $5 million per year for Brandon Shores and $2 million per year 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.
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