CONSTELLATION ENERGY GENERATION LLC

6. Government Assistance

Beginning in 2024, our nuclear units are eligible for a PTC extending through 2032. See Note 1 — Basis of Presentation and Note 6 — Government Assistance of our 2025 Form 10-K for additional information on nuclear PTCs.

Note 6 — Government Assistance

For the three and six months ended June 30, 2026 and 2025, we did not record a material nuclear PTC benefit as the estimate of full year gross receipts exceeded the phase-out for annual gross receipts per MWh for most units. As of June 30, 2026 and December 31, 2025, our Consolidated Balance Sheets reflect approximately $150 million and $120 million, respectively, of nuclear PTCs within Other deferred debits and other assets. For the six months ended June 30, 2026, we did not utilize any estimated nuclear PTCs as a credit against our current federal income taxes payable. For the year ended December 31, 2025, we recognized a reduction to Accounts payable and accrued expenses in our Consolidated Balance Sheets of $375 million for estimated nuclear PTCs that we have utilized as a credit against our current federal income taxes payable.

Many of the state-sponsored programs providing compensation for the emissions-free attributes of generation from certain of our nuclear units include contractual or other provisions that require us to refund that compensation up to the amount of the nuclear PTC received or pass through the entirety of the nuclear PTC received. As of June 30, 2026 and December 31, 2025, we have recognized approximately $270 million and $1,190 million, respectively, of estimated payables within Other deferred credits and other liabilities, Accounts payable and accrued expenses or as offsets to Accounts receivable, net in our Consolidated Balance Sheets associated with programs requiring refunds or pass through of the nuclear PTC. In general, we expect to remit refunds or pass-throughs of state-sponsored program compensation related to nuclear PTCs in the year following the filing of the related tax return. During the six months ended June 30, 2026, we refunded or offset against outstanding receivables approximately $920 million associated with state-sponsored program compensation relating to the nuclear PTCs recorded in 2024. During the three and six months ended June 30, 2026, we recognized an increase to net operating revenue (pre-tax) of approximately $10 million and a reduction to net operating revenue of approximately $275 million, respectively, associated with these programs in our Consolidated Statements of Operations and Comprehensive Income, compared to an increase to net operating revenue (pre-tax) of approximately $75 million and $190 million during the three and six months ended June 30, 2025, respectively.