Talen Energy Corp

Recent Developments

Common Stock Transactions

Share Repurchases. During the three months ended March 31, 2025, we repurchased and retired 452,130 shares of TEC’s outstanding common stock under the SRP. The aggregate purchase price after transaction fees and excise tax was $85 million at a weighted average price of $186.24 per share. As of March 31, 2025, the remaining capacity under the SRP is $995 million through 2026. See Note 16 to the Interim Financial Statements for additional information on the SRP.

Financing Transactions

Secured Notes Consent. In January 2025, we received consents from noteholders representing a majority in principal amount of the Secured Notes to adopt certain amendments to the Indenture to, among other things: (i) modify certain provisions, including certain covenants and related definitions, in order to substantially conform to the corresponding amendments to the Credit Agreement obtained in December 2024; and (ii) waive TES’s right to optionally redeem up to 10% of the Secured Notes at a price of 103% of par prior to June 1, 2025.

See Note 11 to the Interim Financial Statements for additional information on long-term debt, other credit facilities, and recent financing activities.

Hedging Transactions

Interest Rate Swaps. To reduce the risk of unpredictable future cash flows associated with changes in variable rate indebtedness, in the first quarter 2025 we entered into interest rate swaps with a notional value of $550 million and a four-year maturity. In April 2025 we entered into additional interest rate swaps with notional value of $150 million and a four-year maturity.

RMR Arrangements

On May 1, 2025, the FERC approved the terms under which Talen will operate its Brandon Shores and H.A. Wagner power plants until May 31, 2029, beyond their scheduled May 31, 2025 retirement dates. Talen, PJM, and a broad coalition of the Maryland Public Service Commission, Maryland customers, and electric utilities reached agreement in January 2025 on the RMR agreement. Under the RMR agreement, Brandon Shores Units 1 and 2 and H.A. Wagner Units 3 and 4 will remain in service and provide power necessary to maintain grid and transmission reliability in and around the City of Baltimore until transmission upgrades to provide reliable power to the area from other sources are complete. Beginning June 1, 2025, we expect to receive $145 million annually for Brandon Shores and $35 million for H.A. Wagner with some performance incentives.