Constellation Energy Corp

Note 6 — Government Assistance

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.

For the three and nine months ended September 30, 2026, we didnot 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. For the three and nine months ended September 30, 2025, our Consolidated Statements of Operations and Comprehensive Income included an estimated nuclear PTC benefit in Operating revenues of approximately $175 million and $220 million, respectively. As of September 30, 2026 and December 31, 2025, our Consolidated Balance Sheets reflect approximately $195 million and $120 million, respectively, of nuclear PTCs within Other deferred debits and other assets. For the nine months ended September 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 September 30, 2026 and December 31, 2025, we have recognized approximately $155 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 nine months ended September 30, 2026, we refunded or offset against outstanding receivables approximately $1,030 million associated with state-sponsored program compensation relating to the nuclear PTCs recorded in 2024. During the three and nine months ended September 30, 2026, we recognized a reduction to net operating revenue (pre-tax) of approximately $280 million and $555 million, respectively, associated with these programs in our Consolidated Statements of Operations and Comprehensive Income, compared to a reduction to net operating revenue (pre-tax) of approximately $220 million and $30 million during the three and nine months ended September 30, 2025, respectively.