Constellation Energy Corp

7. Accounts Receivable

Allowance for Credit Losses on Accounts Receivable

The following table presents the rollforward of allowance for credit losses on Customer accounts receivable, which does not include any allowance related to the sales of customer accounts receivable disclosed below. Allowance for credit losses on Other accounts receivable was not material as of the balance sheet dates.

(a)2023 beginning balance and activity were not material.

(b)Recoveries were not material.

(c)Impact as a result of the December 2024 Facility amendment. See below for details.

Note 7 — Accounts Receivable

Unbilled Customer Revenue

We recorded $1,109 million and $372 million of unbilled customer revenues in Customer accounts receivables, net in the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively.

Sales of Customer Accounts Receivable

In 2020, NER, a bankruptcy remote, special purpose entity, which is wholly owned by us, entered a revolving accounts receivable financing arrangement with a number of financial institutions and a commercial paper conduit (Purchasers) to sell certain customer accounts receivables (Facility). On December 31, 2024, we amended the Facility. We will no longer sell receivables to the Purchasers and all outstanding receivables were assigned back to us. Prior to the amendment, the maximum funding limit of the Facility was $1.1 billion. Under the Facility's prior terms, NER sold eligible short-term customer accounts receivable to the Purchasers in exchange for cash and subordinated interest. The transfers were reported as sales of receivables in the consolidated financial statements. The subordinated interest in collections upon the receivables sold to the Purchasers was referred to as the DPP, which was reflected in Other current assets in the Consolidated Balance Sheets prior to the amendment. See Note 16 — Debt and Credit Agreements for terms of the amended Facility.

The following table summarizes the impact of the sale of certain receivables:

(a)As a result of the Facility amendment, DPP of $1,529 million was reclassified to Customer accounts receivable as of December 31, 2024.

(a)Reflected in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income. This represents the amount by which the accounts receivable sold into the Facility are discounted, limited to credit losses.

(a)Customer accounts receivable sold into the Facility were $12,262 million, $11,746 million, and $11,274 million for the years ended December 31, 2024, 2023, and 2022, respectively.

(b)Does not include the $300 million and $800 million net cash payments to the Purchasers in 2024 and 2023, respectively, or the $200 million net cash proceeds received from the Purchases in 2022.

We recognized the cash proceeds received upon sale in Cash flows from operating activities within the Changes in Other assets and liabilities line in the Consolidated Statements of Cash Flows, which were ($10,574) million, ($8,097) million, and ($5,166) million for the years ended December 31, 2024, 2023, and 2022, respectively. The collection and reinvestment of DPP is recognized in Cash flows from investing activities in the Collection of DPP, net line in the Consolidated Statements of Cash Flows, which were $10,217 million, $7,340 million, and $4,964 million for the years ended December 31, 2024, 2023, and 2022, respectively. As a result of the receivables being assigned back to NER under the amended Facility, NER forgave any and all remaining DPP owed by the Purchasers. The reassignment of receivables and unwind of DPP will be treated as a non-cash activity and therefore have no impact in the Consolidated Statements of Cash Flows.

Note 7 — Accounts Receivable

See Note 17 — Fair Value of Financial Assets and Liabilities and Note 21 — Variable Interest Entities for additional information on DPP and NER, respectively.

Other Sales of Customer Accounts Receivables

We are required, under supplier tariffs, to sell customer receivables to certain utility companies. The total receivables sold was $280 million, $356 million, and $423 million for the years ended December 31, 2024, 2023, and 2022, respectively.