Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2022shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 001-41137 |
Entity Registrant Name | CONSTELLATION ENERGY CORPORATION |
Entity Tax Identification Number | 87-1210716 |
Entity Incorporation, State or Country Code | PA |
Entity Address, Address Line One | 1310 Point Street |
Entity Address, City or Town | Baltimore |
Entity Address, State or Province | MD |
Entity Address, Postal Zip Code | 21231-3380 |
City Area Code | (610) |
Local Phone Number | 765-5959 |
Title of 12(b) Security | Common Stock, without par value |
Trading Symbol | CEG |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock Shares Outstanding | 326,698,937 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0001868275 |
Amendment Flag | false |
Constellation Energy Generation, LLC | |
Document Information [Line Items] | |
Entity File Number | 333-85496 |
Entity Registrant Name | CONSTELLATION ENERGY GENERATION, LLC |
Entity Tax Identification Number | 23-3064219 |
Entity Incorporation, State or Country Code | PA |
Entity Address, Address Line One | 200 Exelon Way |
Entity Address, City or Town | Kennett Square |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 19348-2473 |
City Area Code | (610) |
Local Phone Number | 765-5959 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001168165 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income, Parent - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating revenues | ||
Operating revenues | $ 5,431 | $ 5,264 |
Operating revenues from affiliates | 160 | 295 |
Total operating revenues | 5,591 | 5,559 |
Operating expenses | ||
Purchased power and fuel | 3,545 | 4,610 |
Purchased power and fuel from affiliates | 5 | 0 |
Operating and maintenance | 1,161 | 856 |
Operating and maintenance from affiliates | 44 | 145 |
Depreciation and amortization | 280 | 940 |
Taxes other than income taxes | 137 | 121 |
Total operating expenses | 5,172 | 6,672 |
Gain on sales of assets and businesses | 16 | 71 |
Operating income (loss) | 435 | (1,042) |
Other income and (deductions) | ||
Interest expense, net | (55) | (68) |
Interest expense to affiliates | 1 | 4 |
Other, net | (318) | 167 |
Total other income and (deductions) | (374) | 95 |
Income (loss) before income taxes | 61 | (947) |
Income taxes | (53) | (179) |
Equity in losses of unconsolidated affiliates | (3) | (1) |
Net income (loss) | 111 | (769) |
Net income attributable to noncontrolling interests | 5 | 24 |
Net income (loss) attributable to membership interest | 106 | (793) |
Other comprehensive income, net of income taxes | ||
Prior service benefit reclassified to periodic benefit cost | (1) | 0 |
Actuarial loss reclassified to periodic cost | 18 | 0 |
Unrealized gain on foreign currency translation | 4 | 1 |
Other comprehensive income, net of income taxes | 21 | 1 |
Comprehensive income (loss) | 132 | (768) |
Comprehensive income attributable to noncontrolling interests | 5 | 24 |
Comprehensive income (loss) attributable to membership interest | $ 127 | $ (792) |
Average shares of common stock outstanding and Earnings per average common share | ||
Basic (in shares) | 327,000 | 0 |
Assumed exercise and/or distributions of stock-based awards (in shares) | 1,000 | 0 |
Diluted (in shares) | 328,000 | 0 |
Earnings per average common share | ||
Basic (in dollars per share) | $ 0.32 | $ 0 |
Diluted (in dollars per share) | $ 0.32 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows, Parent - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ 111 | $ (769) |
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | ||
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization | 602 | 1,346 |
Asset impairments | 0 | 1 |
Gain on sales of assets and businesses | (16) | (71) |
Deferred income taxes and amortization of investment tax credits | (307) | (123) |
Net fair value changes related to derivatives | 75 | (178) |
Net realized and unrealized losses (gains) on NDT funds | 271 | (118) |
Net unrealized losses on equity investments | 20 | 23 |
Other non-cash operating activities | 256 | (202) |
Changes in assets and liabilities: | ||
Accounts receivable | (78) | (453) |
Receivables from and payables to affiliates, net | 20 | 59 |
Inventories | 82 | 50 |
Accounts payable and accrued expenses | 36 | 208 |
Option premiums (paid) received, net | (31) | 16 |
Collateral received, net | 1,169 | 270 |
Income taxes | 254 | (55) |
Pension and non-pension postretirement benefit contributions | (204) | (205) |
Other assets and liabilities | (909) | (1,411) |
Net cash flows provided by (used in) operating activities | 1,351 | (1,612) |
Cash flows from investing activities | ||
Capital expenditures | (410) | (382) |
Proceeds from NDT fund sales | 1,130 | 2,908 |
Investment in NDT funds | (1,193) | (2,939) |
Collection of DPP | 853 | 1,574 |
Proceeds from sales of assets and businesses | 28 | 680 |
Other investing activities | (4) | (2) |
Net cash flows provided by investing activities | 404 | 1,839 |
Cash flows from financing activities | ||
Changes in short-term borrowings | (702) | 997 |
Repayments of short-term borrowings with maturities greater than 90 days | (300) | 0 |
Issuance of long-term debt | 2 | 1 |
Retirement of long-term debt | (1,058) | (35) |
Retirement of long-term debt to affiliate | (258) | 0 |
Changes in money pool with Exelon | 0 | (285) |
Distributions to member | 0 | (458) |
Contribution from Exelon | 1,750 | 0 |
Dividends paid on common stock | (46) | 0 |
Other financing activities | (23) | (12) |
Net cash flows (used in) provided by financing activities | (635) | 208 |
Increase in cash, restricted cash, and cash equivalents | 1,120 | 435 |
Cash, restricted cash, and cash equivalents at beginning of period | 576 | 327 |
Cash, restricted cash, and cash equivalents at end of period | 1,696 | 762 |
Supplemental cash flow information | ||
Decrease in capital expenditures not paid | (119) | (37) |
Increase in DPP | 918 | 1,339 |
Increase in PP&E related to ARO update | $ 335 | $ 0 |
Consolidated Balance Sheets, Pa
Consolidated Balance Sheets, Parent - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 1,605 | $ 504 | |
Restricted cash and cash equivalents | 91 | 72 | |
Accounts receivable | |||
Customer accounts receivable (net of allowance for credit losses of $50 and $55 as of March 31, 2022 and December 31, 2021, respectively) | 1,936 | 1,669 | |
Other accounts receivable (net of allowance for credit losses of $5 as of March 31, 2022 and December 31, 2021) | 334 | 592 | |
Mark-to-market derivative assets | 1,775 | 2,169 | |
Receivables from affiliates | 0 | 160 | |
Inventories, net | |||
Natural gas, oil, and emission allowances | 212 | 284 | |
Materials and supplies | 999 | 1,004 | |
Renewable energy credits | 577 | 520 | |
Other | 1,238 | 1,007 | |
Total current assets | 8,767 | 7,981 | |
Property, plant, and equipment (net of accumulated depreciation and amortization of $16,007 and $15,873 as of March 31, 2022 and December 31, 2021, respectively) | 19,837 | 19,612 | |
Deferred debits and other assets | |||
Nuclear decommissioning trust funds | 15,272 | 15,938 | |
Investments | 217 | 174 | |
Mark-to-market derivative assets | 565 | 949 | |
Prepaid pension asset | 0 | 1,683 | |
Deferred income taxes | 36 | 32 | |
Other | 2,152 | 1,717 | |
Total deferred debits and other assets | 18,242 | 20,493 | |
Total assets | [1] | 46,846 | 48,086 |
Current liabilities | |||
Short-term borrowings | 1,080 | 2,082 | |
Long-term debt due within one year | 191 | 1,220 | |
Accounts payable | 1,847 | 1,757 | |
Accrued expenses | 803 | 737 | |
Payables to affiliates | 0 | 131 | |
Mark-to-market derivative liabilities | 1,469 | 981 | |
Renewable energy credit obligation | 727 | 777 | |
Other | 317 | 311 | |
Total current liabilities | 6,434 | 7,996 | |
Long-term debt | 4,548 | 4,575 | |
Long-term debt to affiliates | 0 | 319 | |
Deferred credits and other liabilities | |||
Deferred income taxes and unamortized investment tax credits | 3,247 | 3,703 | |
Asset retirement obligations | 13,276 | 12,819 | |
Pension obligations | 722 | 0 | |
Non-pension postretirement benefit obligations | 862 | 847 | |
Spent nuclear fuel obligation | 1,210 | 1,210 | |
Payables to affiliates | 0 | 3,357 | |
Payable related to Regulatory Agreement Units | 2,969 | 0 | |
Mark-to-market derivative liabilities | 773 | 513 | |
Other | 1,300 | 1,133 | |
Total deferred debits and other assets | 24,359 | 23,582 | |
Total liabilities | [1] | 35,341 | 36,472 |
Commitments and contingencies | |||
Member’s equity | |||
Predecessor Member's Equity | [2] | 0 | 11,250 |
Common stock (No par value, 1,000 shares authorized, 327 shares outstanding as of March 31, 2022) | 13,212 | 0 | |
Undistributed earnings | (91) | 0 | |
Accumulated other comprehensive loss, net | (2,016) | (31) | |
Total shareholders’ equity | 11,105 | 11,219 | |
Noncontrolling interests | 400 | 395 | |
Total equity | 11,505 | 11,614 | |
Total liabilities and equity | 46,846 | 48,086 | |
Constellation Energy Generation, LLC | |||
Current assets | |||
Cash and cash equivalents | 1,605 | 504 | |
Restricted cash and cash equivalents | 79 | 72 | |
Accounts receivable | |||
Customer accounts receivable (net of allowance for credit losses of $50 and $55 as of March 31, 2022 and December 31, 2021, respectively) | 1,936 | 1,669 | |
Other accounts receivable (net of allowance for credit losses of $5 as of March 31, 2022 and December 31, 2021) | 327 | 592 | |
Mark-to-market derivative assets | 1,775 | 2,169 | |
Receivables from affiliates | 2 | 160 | |
Inventories, net | |||
Natural gas, oil, and emission allowances | 212 | 284 | |
Materials and supplies | 999 | 1,004 | |
Renewable energy credits | 577 | 520 | |
Other | 1,238 | 1,007 | |
Total current assets | 8,750 | 7,981 | |
Property, plant, and equipment (net of accumulated depreciation and amortization of $16,007 and $15,873 as of March 31, 2022 and December 31, 2021, respectively) | 19,837 | 19,612 | |
Deferred debits and other assets | |||
Nuclear decommissioning trust funds | 15,272 | 15,938 | |
Investments | 217 | 174 | |
Mark-to-market derivative assets | 565 | 949 | |
Prepaid pension asset | 0 | 1,683 | |
Deferred income taxes | 36 | 32 | |
Other | 2,152 | 1,717 | |
Total deferred debits and other assets | 18,242 | 20,493 | |
Total assets | [3] | 46,829 | 48,086 |
Current liabilities | |||
Short-term borrowings | 1,080 | 2,082 | |
Long-term debt due within one year | 191 | 1,220 | |
Accounts payable | 1,830 | 1,757 | |
Accrued expenses | 773 | 737 | |
Payables to affiliates | 13 | 131 | |
Mark-to-market derivative liabilities | 1,469 | 981 | |
Renewable energy credit obligation | 727 | 777 | |
Other | 317 | 311 | |
Total current liabilities | 6,400 | 7,996 | |
Long-term debt | 4,548 | 4,575 | |
Long-term debt to affiliates | 0 | 319 | |
Deferred credits and other liabilities | |||
Deferred income taxes and unamortized investment tax credits | 3,247 | 3,703 | |
Asset retirement obligations | 13,276 | 12,819 | |
Pension obligations | 722 | 0 | |
Non-pension postretirement benefit obligations | 862 | 847 | |
Spent nuclear fuel obligation | 1,210 | 1,210 | |
Payables to affiliates | 0 | 3,357 | |
Payable related to Regulatory Agreement Units | 2,969 | 0 | |
Mark-to-market derivative liabilities | 773 | 513 | |
Other | 1,295 | 1,133 | |
Total deferred debits and other assets | 24,354 | 23,582 | |
Total liabilities | [3] | 35,302 | 36,472 |
Commitments and contingencies | |||
Member’s equity | |||
Predecessor Member's Equity | 12,326 | 10,482 | |
Undistributed earnings | 817 | 768 | |
Accumulated other comprehensive loss, net | (2,016) | (31) | |
Total liabilities and equity | $ 46,829 | $ 48,086 | |
[1] | Our consolidated assets include $2,588 million and $2,549 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. | ||
[2] | Represents Constellation’s predecessor member's equity prior to the separation transaction. Upon completion of the separation, the predecessor member's equity was transferred to CEG Parent’s Common stock. See Note 1 — Basis of Presentation for additional information on the separation. | ||
[3] | Our consolidated assets include $2,588 million and $2,549 million as of March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million as of March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. |
Consolidated Balance Sheets, _2
Consolidated Balance Sheets, Parent (Parenthetical) $ in Millions | Mar. 31, 2022USD ($)$ / sharesshares | |
Allowance for credit losses | $ (50) | |
Allowance for other credit losses | (5) | |
Accumulated depreciation and amortization | $ 16,007 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0 | |
Common stock, shares authorized (in shares) | shares | 1,000,000,000 | |
Common stock, shares outstanding (in shares) | shares | 327,000,000 | |
Total assets | $ 46,846 | [1] |
Total liabilities | 35,341 | [1] |
Variable Interest Entity, Primary Beneficiary | ||
Total assets | 2,807 | |
Total liabilities | 1,046 | |
Variable Interest Entity, Primary Beneficiary | Nonrecourse | ||
Total liabilities | 1,045 | |
Variable Interest Entity, Primary Beneficiary | Asset Pledged as Collateral | ||
Total assets | $ 2,588 | |
[1] | Our consolidated assets include $2,588 million and $2,549 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity, Parent - USD ($) $ in Millions | Total | Common Stock | Membership Interest | Undistributed Earnings | Accumulated Other Comprehensive Loss, net | Noncontrolling Interests | Predecessor Member's Equity(a) | [1] |
Beginning Balance at Dec. 31, 2020 | $ 14,676 | $ 9,624 | $ 2,805 | $ (30) | $ 2,277 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (769) | (793) | 24 | |||||
Changes in equity of noncontrolling interests | (10) | (10) | ||||||
Distributions to member | (458) | (458) | ||||||
Other comprehensive income, net of income taxes | 1 | 1 | ||||||
Ending Balance at Mar. 31, 2021 | 13,440 | $ 9,624 | 1,554 | (29) | 2,291 | |||
Beginning Balance (in shares) at Dec. 31, 2021 | 0 | |||||||
Beginning balance at Dec. 31, 2021 | 11,614 | $ 0 | 0 | (31) | 395 | $ 11,250 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 111 | |||||||
Other comprehensive income, net of income taxes | $ 21 | |||||||
Ending Balance (in shares) at Mar. 31, 2022 | 327,000,000 | 326,699,000,000 | ||||||
Ending balance at Mar. 31, 2022 | $ 11,505 | $ 13,212 | $ (91) | $ (2,016) | $ 400 | $ 0 | ||
[1] | Represents Constellation’s predecessor member's equity prior to the separation transaction. Upon completion of the separation, the predecessor member's equity was transferred to CEG Parent’s Common stock. See Note 1 — Basis of Presentation for additional information on the separation. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity, Parent (Parenthetical) | 3 Months Ended |
Mar. 31, 2022$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividends (in dollars per share) | $ 0.14 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating revenues | ||
Operating revenues | $ 5,431 | $ 5,264 |
Operating revenues from affiliates | 160 | 295 |
Total operating revenues | 5,591 | 5,559 |
Operating expenses | ||
Purchased power and fuel | 3,545 | 4,610 |
Purchased power and fuel from affiliates | 5 | 0 |
Operating and maintenance | 1,161 | 856 |
Operating and maintenance from affiliates | 44 | 145 |
Depreciation and amortization | 280 | 940 |
Taxes other than income taxes | 137 | 121 |
Total operating expenses | 5,172 | 6,672 |
Gain on sales of assets and businesses | 16 | 71 |
Operating income (loss) | 435 | (1,042) |
Other income and (deductions) | ||
Interest expense, net | (55) | (68) |
Interest expense to affiliates | 1 | 4 |
Other, net | (318) | 167 |
Total other income and (deductions) | (374) | 95 |
Income (loss) before income taxes | 61 | (947) |
Income taxes | (53) | (179) |
Equity in losses of unconsolidated affiliates | (3) | (1) |
Net income (loss) | 111 | (769) |
Net income attributable to noncontrolling interests | 5 | 24 |
Net income (loss) attributable to membership interest | 106 | (793) |
Other comprehensive income, net of income taxes | ||
Prior service benefit reclassified to periodic benefit cost | (1) | 0 |
Actuarial loss reclassified to periodic cost | 18 | 0 |
Unrealized gain on foreign currency translation | 4 | 1 |
Other comprehensive income, net of income taxes | 21 | 1 |
Comprehensive income (loss) | 132 | (768) |
Comprehensive income attributable to noncontrolling interests | 5 | 24 |
Comprehensive income (loss) attributable to membership interest | 127 | (792) |
Constellation Energy Generation, LLC | ||
Operating revenues | ||
Operating revenues | 5,431 | 5,264 |
Operating revenues from affiliates | 160 | 295 |
Total operating revenues | 5,591 | 5,559 |
Operating expenses | ||
Purchased power and fuel | 3,545 | 4,610 |
Purchased power and fuel from affiliates | 5 | 0 |
Operating and maintenance | 1,161 | 856 |
Operating and maintenance from affiliates | 44 | 145 |
Depreciation and amortization | 280 | 940 |
Taxes other than income taxes | 137 | 121 |
Total operating expenses | 5,172 | 6,672 |
Gain on sales of assets and businesses | 16 | 71 |
Operating income (loss) | 435 | (1,042) |
Other income and (deductions) | ||
Interest expense, net | (55) | (68) |
Interest expense to affiliates | 1 | 4 |
Other, net | (318) | 167 |
Total other income and (deductions) | (374) | 95 |
Income (loss) before income taxes | 61 | (947) |
Income taxes | (53) | (179) |
Equity in losses of unconsolidated affiliates | (3) | (1) |
Net income (loss) | 111 | (769) |
Net income attributable to noncontrolling interests | 5 | 24 |
Net income (loss) attributable to membership interest | 106 | (793) |
Other comprehensive income, net of income taxes | ||
Prior service benefit reclassified to periodic benefit cost | (1) | 0 |
Actuarial loss reclassified to periodic cost | 18 | 0 |
Unrealized gain on foreign currency translation | 4 | 1 |
Other comprehensive income, net of income taxes | 21 | 1 |
Comprehensive income (loss) | 132 | (768) |
Comprehensive income attributable to noncontrolling interests | 5 | 24 |
Comprehensive income (loss) attributable to membership interest | $ 127 | $ (792) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ 111 | $ (769) |
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | ||
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization | 602 | 1,346 |
Asset impairments | 0 | 1 |
Gain on sales of assets and businesses | (16) | (71) |
Deferred income taxes and amortization of investment tax credits | (307) | (123) |
Net fair value changes related to derivatives | 75 | (178) |
Net realized and unrealized losses (gains) on NDT funds | 271 | (118) |
Net unrealized losses on equity investments | 20 | 23 |
Other non-cash operating activities | 256 | (202) |
Changes in assets and liabilities: | ||
Accounts receivable | (78) | (453) |
Receivables from and payables to affiliates, net | 20 | 59 |
Inventories | 82 | 50 |
Accounts payable and accrued expenses | 36 | 208 |
Option premiums (paid) received, net | (31) | 16 |
Collateral received, net | 1,169 | 270 |
Income taxes | 254 | (55) |
Pension and non-pension postretirement benefit contributions | (204) | (205) |
Other assets and liabilities | (909) | (1,411) |
Net cash flows provided by (used in) operating activities | 1,351 | (1,612) |
Cash flows from investing activities | ||
Capital expenditures | (410) | (382) |
Proceeds from NDT fund sales | 1,130 | 2,908 |
Investment in NDT funds | (1,193) | (2,939) |
Collection of DPP | 853 | 1,574 |
Proceeds from sales of assets and businesses | 28 | 680 |
Other investing activities | (4) | (2) |
Net cash flows provided by investing activities | 404 | 1,839 |
Cash flows from financing activities | ||
Changes in short-term borrowings | (702) | 997 |
Repayments of short-term borrowings with maturities greater than 90 days | (300) | 0 |
Issuance of long-term debt | 2 | 1 |
Retirement of long-term debt | (1,058) | (35) |
Retirement of long-term debt to affiliate | (258) | 0 |
Changes in money pool with Exelon | 0 | (285) |
Distributions to member | 0 | (458) |
Contribution from Exelon | 1,750 | 0 |
Other financing activities | (23) | (12) |
Net cash flows (used in) provided by financing activities | (635) | 208 |
Increase in cash, restricted cash, and cash equivalents | 1,120 | 435 |
Cash, restricted cash, and cash equivalents at beginning of period | 576 | 327 |
Cash, restricted cash, and cash equivalents at end of period | 1,696 | 762 |
Supplemental cash flow information | ||
Decrease in capital expenditures not paid | (119) | (37) |
Increase in DPP | 918 | 1,339 |
Increase in PP&E related to ARO update | 335 | 0 |
Constellation Energy Generation, LLC | ||
Cash flows from operating activities | ||
Net income (loss) | 111 | (769) |
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | ||
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization | 602 | 1,346 |
Asset impairments | 0 | 1 |
Gain on sales of assets and businesses | (16) | (71) |
Deferred income taxes and amortization of investment tax credits | (307) | (123) |
Net fair value changes related to derivatives | 75 | (178) |
Net realized and unrealized losses (gains) on NDT funds | 271 | (118) |
Net unrealized losses on equity investments | 20 | 23 |
Other non-cash operating activities | 247 | (202) |
Changes in assets and liabilities: | ||
Accounts receivable | (71) | (453) |
Receivables from and payables to affiliates, net | 31 | 59 |
Inventories | 82 | 50 |
Accounts payable and accrued expenses | 7 | 208 |
Option premiums (paid) received, net | (31) | 16 |
Collateral received, net | 1,169 | 270 |
Income taxes | 254 | (55) |
Pension and non-pension postretirement benefit contributions | (204) | (205) |
Other assets and liabilities | (901) | (1,411) |
Net cash flows provided by (used in) operating activities | 1,339 | (1,612) |
Cash flows from investing activities | ||
Capital expenditures | (410) | (382) |
Proceeds from NDT fund sales | 1,130 | 2,908 |
Investment in NDT funds | (1,193) | (2,939) |
Collection of DPP | 853 | 1,574 |
Proceeds from sales of assets and businesses | 28 | 680 |
Other investing activities | (4) | (2) |
Net cash flows provided by investing activities | 404 | 1,839 |
Cash flows from financing activities | ||
Changes in short-term borrowings | (702) | 997 |
Repayments of short-term borrowings with maturities greater than 90 days | (300) | 0 |
Issuance of long-term debt | 2 | 1 |
Retirement of long-term debt | (1,058) | (35) |
Retirement of long-term debt to affiliate | (258) | 0 |
Changes in money pool with Exelon | 0 | (285) |
Distributions to member | (46) | (458) |
Contribution from Exelon | 1,750 | 0 |
Other financing activities | (23) | (12) |
Net cash flows (used in) provided by financing activities | (635) | 208 |
Increase in cash, restricted cash, and cash equivalents | 1,108 | 435 |
Cash, restricted cash, and cash equivalents at beginning of period | 576 | 327 |
Cash, restricted cash, and cash equivalents at end of period | 1,684 | 762 |
Supplemental cash flow information | ||
Decrease in capital expenditures not paid | (119) | (37) |
Increase in DPP | 918 | 1,339 |
Increase in PP&E related to ARO update | $ 335 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 1,605 | $ 504 | |
Restricted cash and cash equivalents | 91 | 72 | |
Accounts receivable | |||
Customer accounts receivable (net of allowance for credit losses of $50 and $55 as of March 31, 2022 and December 31, 2021, respectively) | 1,936 | 1,669 | |
Other accounts receivable (net of allowance for credit losses of $5 as of March 31, 2022 and December 31, 2021) | 334 | 592 | |
Mark-to-market derivative assets | 1,775 | 2,169 | |
Receivables from affiliates | 0 | 160 | |
Inventories, net | |||
Natural gas, oil, and emission allowances | 212 | 284 | |
Materials and supplies | 999 | 1,004 | |
Renewable energy credits | 577 | 520 | |
Other | 1,238 | 1,007 | |
Total current assets | 8,767 | 7,981 | |
Property, plant, and equipment (net of accumulated depreciation and amortization of $16,007 and $15,873 as of March 31, 2022 and December 31, 2021, respectively) | 19,837 | 19,612 | |
Deferred debits and other assets | |||
Nuclear decommissioning trust funds | 15,272 | 15,938 | |
Investments | 217 | 174 | |
Mark-to-market derivative assets | 565 | 949 | |
Prepaid pension asset | 0 | 1,683 | |
Deferred income taxes | 36 | 32 | |
Other | 2,152 | 1,717 | |
Total deferred debits and other assets | 18,242 | 20,493 | |
Total assets | [1] | 46,846 | 48,086 |
Current liabilities | |||
Short-term borrowings | 1,080 | 2,082 | |
Long-term debt due within one year | 191 | 1,220 | |
Accounts payable | 1,847 | 1,757 | |
Accrued expenses | 803 | 737 | |
Payables to affiliates | 0 | 131 | |
Mark-to-market derivative liabilities | 1,469 | 981 | |
Renewable energy credit obligation | 727 | 777 | |
Other | 317 | 311 | |
Total current liabilities | 6,434 | 7,996 | |
Long-term debt | 4,548 | 4,575 | |
Long-term debt to affiliates | 0 | 319 | |
Deferred credits and other liabilities | |||
Deferred income taxes and unamortized investment tax credits | 3,247 | 3,703 | |
Asset retirement obligations | 13,276 | 12,819 | |
Pension obligations | 722 | 0 | |
Non-pension postretirement benefit obligations | 862 | 847 | |
Spent nuclear fuel obligation | 1,210 | 1,210 | |
Payables to affiliates | 0 | 3,357 | |
Payable related to Regulatory Agreement Units | 2,969 | 0 | |
Mark-to-market derivative liabilities | 773 | 513 | |
Other | 1,300 | 1,133 | |
Total deferred credits and other liabilities | 24,359 | 23,582 | |
Total liabilities | [1] | 35,341 | 36,472 |
Commitments and contingencies | |||
Member’s equity | |||
Membership interest | [2] | 0 | 11,250 |
Undistributed earnings | (91) | 0 | |
Accumulated other comprehensive loss, net | (2,016) | (31) | |
Total liabilities and equity | 46,846 | 48,086 | |
Constellation Energy Generation, LLC | |||
Current assets | |||
Cash and cash equivalents | 1,605 | 504 | |
Restricted cash and cash equivalents | 79 | 72 | |
Accounts receivable | |||
Customer accounts receivable (net of allowance for credit losses of $50 and $55 as of March 31, 2022 and December 31, 2021, respectively) | 1,936 | 1,669 | |
Other accounts receivable (net of allowance for credit losses of $5 as of March 31, 2022 and December 31, 2021) | 327 | 592 | |
Mark-to-market derivative assets | 1,775 | 2,169 | |
Receivables from affiliates | 2 | 160 | |
Inventories, net | |||
Natural gas, oil, and emission allowances | 212 | 284 | |
Materials and supplies | 999 | 1,004 | |
Renewable energy credits | 577 | 520 | |
Other | 1,238 | 1,007 | |
Total current assets | 8,750 | 7,981 | |
Property, plant, and equipment (net of accumulated depreciation and amortization of $16,007 and $15,873 as of March 31, 2022 and December 31, 2021, respectively) | 19,837 | 19,612 | |
Deferred debits and other assets | |||
Nuclear decommissioning trust funds | 15,272 | 15,938 | |
Investments | 217 | 174 | |
Mark-to-market derivative assets | 565 | 949 | |
Prepaid pension asset | 0 | 1,683 | |
Deferred income taxes | 36 | 32 | |
Other | 2,152 | 1,717 | |
Total deferred debits and other assets | 18,242 | 20,493 | |
Total assets | [3] | 46,829 | 48,086 |
Current liabilities | |||
Short-term borrowings | 1,080 | 2,082 | |
Long-term debt due within one year | 191 | 1,220 | |
Accounts payable | 1,830 | 1,757 | |
Accrued expenses | 773 | 737 | |
Payables to affiliates | 13 | 131 | |
Mark-to-market derivative liabilities | 1,469 | 981 | |
Renewable energy credit obligation | 727 | 777 | |
Other | 317 | 311 | |
Total current liabilities | 6,400 | 7,996 | |
Long-term debt | 4,548 | 4,575 | |
Long-term debt to affiliates | 0 | 319 | |
Deferred credits and other liabilities | |||
Deferred income taxes and unamortized investment tax credits | 3,247 | 3,703 | |
Asset retirement obligations | 13,276 | 12,819 | |
Pension obligations | 722 | 0 | |
Non-pension postretirement benefit obligations | 862 | 847 | |
Spent nuclear fuel obligation | 1,210 | 1,210 | |
Payables to affiliates | 0 | 3,357 | |
Payable related to Regulatory Agreement Units | 2,969 | 0 | |
Mark-to-market derivative liabilities | 773 | 513 | |
Other | 1,295 | 1,133 | |
Total deferred credits and other liabilities | 24,354 | 23,582 | |
Total liabilities | [3] | 35,302 | 36,472 |
Commitments and contingencies | |||
Member’s equity | |||
Membership interest | 12,326 | 10,482 | |
Undistributed earnings | 817 | 768 | |
Accumulated other comprehensive loss, net | (2,016) | (31) | |
Total member’s equity | 11,127 | 11,219 | |
Noncontrolling interests | 400 | 395 | |
Total equity | 11,527 | 11,614 | |
Total liabilities and equity | $ 46,829 | $ 48,086 | |
[1] | Our consolidated assets include $2,588 million and $2,549 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. | ||
[2] | Represents Constellation’s predecessor member's equity prior to the separation transaction. Upon completion of the separation, the predecessor member's equity was transferred to CEG Parent’s Common stock. See Note 1 — Basis of Presentation for additional information on the separation. | ||
[3] | Our consolidated assets include $2,588 million and $2,549 million as of March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million as of March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Allowance for credit losses | $ (50) | $ (55) | |
Allowance for other credit losses | (5) | (5) | |
Accumulated depreciation and amortization | 16,007 | 15,873 | |
Total assets | [1] | 46,846 | 48,086 |
Total liabilities | [1] | 35,341 | 36,472 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 2,807 | 2,774 | |
Total liabilities | 1,046 | 1,078 | |
Variable Interest Entity, Primary Beneficiary | Nonrecourse | |||
Total liabilities | 1,045 | 1,077 | |
Variable Interest Entity, Primary Beneficiary | Asset Pledged as Collateral | |||
Total assets | 2,588 | 2,549 | |
Constellation Energy Generation, LLC | |||
Allowance for credit losses | (50) | (55) | |
Allowance for other credit losses | (5) | (5) | |
Accumulated depreciation and amortization | 16,007 | 15,873 | |
Total assets | [2] | 46,829 | 48,086 |
Total liabilities | [2] | 35,302 | 36,472 |
Constellation Energy Generation, LLC | Variable Interest Entity, Primary Beneficiary | Nonrecourse | |||
Total liabilities | 1,045 | 1,077 | |
Constellation Energy Generation, LLC | Variable Interest Entity, Primary Beneficiary | Asset Pledged as Collateral | |||
Total assets | $ 2,588 | $ 2,549 | |
[1] | Our consolidated assets include $2,588 million and $2,549 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. | ||
[2] | Our consolidated assets include $2,588 million and $2,549 million as of March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million as of March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Membership Interest | Undistributed Earnings | Accumulated Other Comprehensive Loss, net | Noncontrolling Interests | Constellation Energy Generation, LLC | Constellation Energy Generation, LLCMembership Interest | Constellation Energy Generation, LLCUndistributed Earnings | Constellation Energy Generation, LLCAccumulated Other Comprehensive Loss, net | Constellation Energy Generation, LLCNoncontrolling Interests |
Beginning Balance at Dec. 31, 2020 | $ 14,676 | $ 9,624 | $ 2,805 | $ (30) | $ 2,277 | $ 14,676 | $ 9,624 | $ 2,805 | $ (30) | $ 2,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (769) | (793) | 24 | (769) | (793) | 24 | ||||
Changes in equity of noncontrolling interests | (10) | (10) | (10) | (10) | ||||||
Distributions to member | (458) | (458) | (458) | (458) | ||||||
Other comprehensive income, net of income taxes | 1 | 1 | 1 | 1 | ||||||
Ending Balance at Mar. 31, 2021 | 13,440 | $ 9,624 | $ 1,554 | $ (29) | $ 2,291 | 13,440 | 9,624 | 1,554 | (29) | 2,291 |
Beginning Balance at Dec. 31, 2021 | 11,614 | 10,482 | 768 | (31) | 395 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 111 | 111 | 106 | 5 | ||||||
Separation related adjustments | (166) | 1,844 | (11) | (2,006) | 7 | |||||
Changes in equity of noncontrolling interests | (7) | (7) | ||||||||
Distributions to member | (46) | (46) | ||||||||
Other comprehensive income, net of income taxes | $ 21 | 21 | 21 | |||||||
Ending Balance at Mar. 31, 2022 | $ 11,527 | $ 12,326 | $ 817 | $ (2,016) | $ 400 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Description of Business We are a supplier of clean energy. Our generating capacity includes nuclear, wind, solar, natural gas and hydroelectric assets. Through our integrated business operations, we sell electricity, natural gas, and other energy related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, governmental, and residential customers in competitive markets across multiple geographic regions. We have five reportable segments: Mid-Atlantic, Midwest, New York, ERCOT and Other Power Regions. Basis of Presentation On February 21, 2021, the board of directors of Exelon authorized management to pursue a plan to separate its competitive generation and customer-facing energy businesses, conducted through Constellation Energy Generation, LLC (“Constellation”, formerly Exelon Generation Company, LLC) and its subsidiaries, into an independent, publicly-traded company. CEG Parent, a direct, wholly owned subsidiary of Exelon, was newly formed for the purpose of separation and had not engaged in any business activities nor had any assets or liabilities prior to the separation. On February 1, 2022 the separation was completed and CEG Parent holds all the interests in Constellation previously held by Exelon. As an individual registrant, Constellation has historically filed consolidated financial statements to reflect its financial position and operating results as a stand-alone, wholly owned subsidiary of Exelon. The accompanying Consolidated Financial Statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 are unaudited but, in our opinion include all adjustments that are considered necessary for a fair statement of the financial statements in accordance with GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The Consolidated Financial Statements include the accounts of our subsidiaries and all intercompany transactions have been eliminated. CEG Parent's prior period financial statements have been adjusted to reflect the balances of Constellation in accordance with applicable guidance. Constellation's December 31, 2021 Consolidated Balance Sheet was derived from audited financial statements. The interim financial statements are to be read in conjunction with prior annual financial statements and notes. Financial results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2022. These Combined Notes to Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Amounts disclosed relate to CEG Parent and Constellation unless specifically noted as relating to CEG Parent only. Unless otherwise indicated or the context otherwise requires, references herein to the terms “we,” “us,” and “our” refer collectively to CEG Parent and Constellation. Separation from Exelon On February 1, 2022, Exelon completed the separation through a pro-rata distribution of all of the outstanding shares of our common stock, no par value, on the basis of one such share for every three shares of Exelon common stock held on January 20, 2022, the record date of the distribution. We are now an independent, publicly traded company listed on the Nasdaq Stock Market under the symbol “CEG”, and regular-way trading began on February 2, 2022. Exelon no longer retains any ownership interest in CEG Parent or Constellation. Prior to completion of the separation, our financial statements include certain transactions with affiliates of Exelon, which are disclosed as related party transactions. After February 1, 2022, all transactions with Exelon or its affiliates are no longer related party transactions. In order to govern the ongoing relationships with Exelon after the separation, and to facilitate an orderly transition, we entered into several agreements with Exelon, including the following: • Separation Agreement – sets forth the principal actions to be taken in connection with the separation, including the transfer of assets and assumption of liabilities and establishes certain rights and obligations between us following the distribution • Transition Services Agreement (TSA) – governs all matters relating to the provision of services between us and Exelon on a transitional basis, in addition to providing us with certain services for an expected period of two-years, provided that certain services may be longer than the term and services may be extended with approval from both parties; the services include support for information technology, accounting, finance, human resources, security, and various other administrative and operational services • Employee Matters Agreement (EMA) – addresses certain employment, compensation and benefits matters, including the allocation of employees between us and Exelon and the allocation and treatment of certain assets and liabilities relating to our employees and former employees • Tax Matters Agreement (TMA) - governs the respective rights, responsibilities, and obligations between us and Exelon with respect to all tax matters (excluding employee related taxes covered under EMA), in addition to certain restrictions which generally prohibit us from taking or failing to take any action in the two-year period following the distribution that would prevent the distribution from qualifying as tax-free for U.S. federal income tax purposes, including limitations on our ability to pursue certain equity issuances, strategic transactions, repurchases or other transactions Pursuant to the Separation Agreement, we received a cash contribution of $1.75 billion from Exelon on January 31, 2022, the proceeds of which were used to settle $258 million of an intercompany loan from Exelon and $200 million of short-term debt outstanding prior to separation, in addition to a $192 million contribution to our pension plans. We also entered into two new five-year facility agreements providing $4.5 billion of capacity. Pursuant to the TSA, for the period from February 1, 2022 to March 31, 2022, the amounts we billed Exelon and Exelon billed us for these services were $9 million and $56 million, respectively. Summary of Significant Accounting Policies See Note 1 — Significant Accounting Policies of our 2021 Form 10-K for additional information on significant accounting policies. At March 31, 2022 the following policy was added as a result of separation. Retirement Benefits Effective upon separation, we sponsor defined benefit pension plans and OPEB plans as described in Note 10 — Retirement Benefits. The plan obligations and costs of providing benefits under these plans were measured as of February 1, 2022. The measurement involved various factors, assumptions, and accounting elections. The impact of assumption changes or experience different from that assumed on pension and OPEB obligations is recognized over time rather than immediately recognized in the Consolidated Statements of Operations and Comprehensive Income. Gains or losses more than the greater of ten percent of the projected benefit obligation or the MRV of plan assets are amortized over the expected average remaining service period of plan participants. |
Mergers, Acquisitions, and Disp
Mergers, Acquisitions, and Dispositions | 3 Months Ended |
Mar. 31, 2022 | |
Mergers, Acquisitions, and Dispositions [Abstract] | |
Mergers, Acquisitions, and Dispositions | Mergers, Acquisitions, and Dispositions Agreement for Sale of Our Solar Business On December 8, 2020, we entered into an agreement with an affiliate of Brookfield Renewable, for the sale of a significant portion of our solar business, including 360 MW of generation in operation or under construction across more than 600 sites across the United States. We will retain certain solar assets not included in this agreement, primarily Antelope Valley. Completion of the transaction contemplated by the sale agreement was subject to the satisfaction of several closing conditions that were satisfied in the first quarter of 2021. The sale was completed on March 31, 2021 for a purchase price of $810 million. We received cash proceeds of $675 million, net of $125 million long-term debt assumed by the buyer and certain working capital and other post-closing adjustments. We recognized a pre-tax gain of $68 million which is included in Gain on sales of assets and businesses in the Consolidated Statement of Operations and Comprehensive Income. See Note 17 — Debt and Credit Agreements of our 2021 Form 10-K for additional information on the SolGen nonrecourse debt included as part of the transaction. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters The following matters below discuss the status of our material regulatory and legislative proceedings. Impacts of the February 2021 Extreme Cold Weather Event and Texas-based Generating Assets Outages Beginning on February 15, 2021, our Texas-based generating assets within the ERCOT market, specifically Colorado Bend II, Wolf Hollow II, and Handley, experienced outages as a result of extreme cold weather conditions. In addition, those weather conditions drove increased demand for service, dramatically increased wholesale power prices, and also increased gas prices in certain regions. In response to the high demand and significantly reduced total generation on the system, the PUCT directed ERCOT to use an administrative price cap of $9,000 per MWh during firm load shedding events. The estimated impact to our Net income for the three months ended March 31, 2022 was an increase of approximately $30 million and is primarily the result of impacts from a payment to ERCOT from a defaulting market participant and the settlement of a dispute related to gas penalties. The estimated impact to our Net income for the three months ended March 31, 2021 arising from these market and weather conditions was a reduction of approximately $880 million. Due to the event, a number of ERCOT market participants experienced bankruptcies or defaulted on payments to ERCOT, with approximately $1.9 billion and $2.5 billion of remaining defaults as of March 31, 2022 and December 31, 2021, respectively, which is allocated to the remaining ERCOT market participants. We recorded our estimated obligation of the remaining defaults, net of legislative solutions and on a discounted basis, of approximately $16 million and $17 million as of March 31, 2022 and December 31, 2021, respectively, which was expected to be paid over a term of 62 years and 83 years, respectively. Additionally, several legislative proposals were introduced in the Texas legislature during February and March 2021 concerning the amount, timing and allocation of recovery of the $3.0 billion peak defaults, as well as recovery of other costs associated with the PUCT's directive to set prices at $9,000 per MWh. Two of these proposals were enacted into law in June 2021 and establish financing mechanisms that ERCOT and certain market participants can utilize to fund amounts owed to ERCOT. Securitization of defaults of competitive retail providers has been completed and a market participant securitized its debt and repaid amounts owed to ERCOT, both of which reduce our obligation. We participated in proceedings before the PUCT addressing the proposed allocation of the $2.1 billion in securitized funds for reliability and ancillary service charges over $9,000 per MWh. In September 2021, we entered into a settlement agreement and stipulation to resolve the allocation issues. The PUCT approved the settlement agreement and stipulation on October 13, 2021. ERCOT has indicated that funds approved under the settlement agreement and stipulation are expected to be disbursed in June 2022. In the first quarter of 2022, a hearing began on ERCOT’s $1.9 billion claim in another market participant’s bankruptcy, which is now in mediation. In February 2021, more than 70 local distribution companies (LDCs) and natural gas pipelines in multiple states throughout the mid-continent region, where we serve natural gas customers, issued operational flow orders (OFOs), curtailments or other limitations on natural gas transportation or use to manage the operational integrity of the applicable LDC or pipeline system. When in effect, gas transportation or use above these limitations is subject to significant penalties according to the applicable LDCs’ and natural gas pipelines’ tariffs. Gas transportation and supply in many states became restricted due to wells freezing and pipeline compression disruption, while demand was increasing due to the extreme cold temperatures, resulting in extremely high natural gas prices. Due to the extraordinary circumstances, many LDCs and natural gas pipelines have either voluntarily waived or have sought applicable regulatory approvals to waive the tariff penalties associated with the extreme weather event. During May 2021, an LDC filed a motion with the Kansas Corporation Commission (KCC) requesting the KCC to grant a waiver from the tariff and allow the LDC to reduce the amounts assessed by permitting the removal of a multiplier from the penalty calculation. On January 20, 2022, a unanimous settlement was filed with the KCC that amended previously filed October 8, 2021 and November 30, 2021 nonunanimous settlements. On March 3, 2022, the KCC approved the unanimous settlement, resolving this matter. Operating License Renewals Peach Bottom Units 2 and 3. On March 6, 2020, the NRC approved a second 20-year license renewal for Peach Bottom Units 2 and 3. As a result, Peach Bottom Units 2 and 3 were granted the authority to operate through 2053 and 2054, respectively. On February 24, 2022, the NRC issued an order related to its review of our subsequent license renewal application for Peach Bottom. While the NRC had previously granted subsequent license renewal to the Peach Bottom units, the NRC was responding to a request for hearing that had not previously been adjudicated. In its decision, the NRC reversed itself and concluded that the previous environmental review required by the National Environmental Policy Act (NEPA) was incomplete because it did not adequately address environmental impacts resulting from renewing the units’ licenses for 20 years. As a result, the NRC directed its staff to change the expiration dates for the licenses back to 2033 and 2034, until the completion of the NEPA analysis. The NRC directed, however, that the subsequently renewed licenses themselves remain in effect. The NRC also stated that it fully expects that the staff will complete its update of the NEPA analysis before 2033. We expect that the license expiration dates will be restored to 2053 and 2054, respectively, once the NRC's reevaluation of environmental impacts resulting from subsequent license renewal is complete. On March 7, 2022, we filed a petition requesting that the NRC reevaluate its decision to amend the expiration dates of the Peach Bottom licenses. There is no specific deadline by which the NRC must act on our petition, and we cannot reasonably predict the outcome of this proceeding. On March 25, 2022, the NRC staff issued a letter to us with amendments to the Peach Bottom license, reverting the expiration dates to 2033 and 2034, as directed by the NRC in its February 24 th |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We recognize revenue from contracts with customers to depict the transfer of goods or services to customers at an amount that we expect to be entitled to in exchange for those goods or services. Our primary sources of revenue include competitive sales of power, natural gas, and other energy-related products and services. See Note 4 — Revenue from Contracts with Customers of our 2021 Form 10-K for additional information regarding the primary sources of revenue. Contract Balances Contract Assets We record contract assets for the revenue recognized on the construction and installation of energy efficiency assets and new power generating facilities before we have an unconditional right to bill for and receive the consideration from the customer. These contract assets are subsequently reclassified to receivables when the right to payment becomes unconditional. We record contract assets and contract receivables in Other current assets and Customer accounts receivable, net, respectively, in the Consolidated Balance Sheets. The following table provides a rollforward of the contract assets reflected in the Consolidated Balance Sheets for the three months ended March 31, 2022 and 2021. Contract Assets Balance as of December 31, 2021 $ 149 Amounts reclassified to receivables (16) Revenues recognized 9 Balance as of March 31, 2022 $ 142 Balance as of December 31, 2020 $ 144 Amounts reclassified to receivables (16) Revenues recognized 13 Amounts previously held-for-sale 12 Balance as of March 31, 2021 $ 153 Contract Liabilities We record contract liabilities when consideration is received or due prior to the satisfaction of the performance obligations. We record contract liabilities in Other current liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. These contract liabilities primarily relate to upfront consideration received or due for equipment service plans and the Illinois ZEC program that introduces a cap on the total consideration to be received by us. The following table provides a rollforward of the contract liabilities reflected in the Consolidated Balance Sheets for the three months ended March 31, 2022 and 2021. Contract Liabilities Balance as of December 31, 2021 $ 75 Consideration received or due 50 Revenues recognized (63) Balance as of March 31, 2022 $ 62 Balance as of December 31, 2020 $ 84 Consideration received or due 31 Revenues recognized (64) Amounts previously held-for-sale 3 Balance as of March 31, 2021 $ 54 The following table reflects revenues recognized in three months ended March 31, 2022 and 2021, which were included in contract liabilities at December 31, 2021 and 2020, respectively: Three Months Ended March 31, 2022 2021 Revenues recognized $ 28 $ 39 Transaction Price Allocated to Remaining Performance Obligations The following table shows the amounts of future revenues expected to be recorded in each year for performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2022. This disclosure only includes contracts for which the total consideration is fixed and determinable at contract inception. The average contract term varies by customer type and commodity but ranges from one month to several years. This disclosure excludes our power and gas sales contracts as they contain variable volumes and/or variable pricing. 2022 2023 2024 2025 2026 and thereafter Total Remaining performance obligations $ 224 $ 132 $ 55 $ 32 $ 152 $ 595 Revenue Disaggregation We disaggregate the revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. See Note 5 — Segment Information for the presentation of revenue disaggregation. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are determined based on information used by the CODM in deciding how to evaluate performance and allocate resources. We have five reportable segments consisting of the Mid-Atlantic, Midwest, New York, ERCOT, and all other power regions referred to collectively as “Other Power Regions.” The basis for our reportable segments is the integrated management of our electricity business that is located in different geographic regions, and largely representative of the footprints of ISO/RTO and/or NERC regions, which utilize multiple supply sources to provide electricity through various distribution channels (wholesale and retail). Our hedging strategies and risk metrics are also aligned to these same geographic regions. Descriptions of each of our five reportable segments are as follows: • Mid-Atlantic represents operations in the eastern half of PJM, which includes New Jersey, Maryland, Virginia, West Virginia, Delaware, the District of Columbia, and parts of Pennsylvania and North Carolina. • Midwest represents operations in the western half of PJM and the United States footprint of MISO, excluding MISO’s Southern Region. • New York represents operations within NYISO. • ERCOT represents operations within Electric Reliability Council of Texas that covers a majority of the state of Texas. • Other Power Regions: • New England represents operations within ISO-NE. • South represents operations in the FRCC, MISO’s Southern Region, and the remaining portions of the SERC not included within MISO or PJM. • West represents operations in the WECC, which includes CAISO. • Canada represents operations across the entire country of Canada and includes AESO, OIESO, and the Canadian portion of MISO. The CODM evaluates the performance of our electric business activities and allocates resources based on Revenues less Purchased Power and Fuel Expense (RNF). We believe this is a useful measurement of operational performance, although it is not a presentation defined under GAAP and may not be comparable to other companies’ presentations or deemed more useful than the GAAP information provided elsewhere in this report. Our operating revenues include all sales to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022. Purchased power costs include all costs associated with the procurement and supply of electricity including capacity, energy, and ancillary services. Fuel expense includes the fuel costs for our owned generation and fuel costs associated with tolling agreements. The results of our other business activities are not regularly reviewed by the CODM and are therefore not classified as operating segments or included in the regional reportable segment amounts. These activities include natural gas, as well as other miscellaneous business activities that are not significant to our overall operating revenues or results of operations. Further, our unrealized mark-to-market gains and losses on economic hedging activities and our amortization of certain intangible assets and liabilities relating to commodity contracts recorded at fair value from mergers and acquisitions are also excluded from the regional reportable segment amounts. The CODM does not use a measure of total assets in making decisions regarding allocating resources to or assessing the performance of these reportable segments. The following tables disaggregate the revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation of revenues reflects our two primary products of power sales and natural gas sales, with further disaggregation of power sales provided by geographic region. The following tables also show the reconciliation of reportable segment revenues and RNF to our total revenues and RNF for the three months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 Revenues from external customers (a) Contracts with customers Other (b) Total Intersegment Revenues Total Revenues Mid-Atlantic $ 1,154 $ (50) $ 1,104 $ — $ 1,104 Midwest 1,248 (51) 1,197 — 1,197 New York 494 (135) 359 6 365 ERCOT 163 72 235 — 235 Other Power Regions 1,421 512 1,933 (6) 1,927 Total Competitive Businesses Electric Revenues 4,480 348 4,828 — 4,828 Competitive Businesses Natural Gas Revenues 811 634 1,445 — 1,445 Competitive Businesses Other Revenues (c) 86 (768) (682) — (682) Total Consolidated Operating Revenues $ 5,377 $ 214 $ 5,591 $ — $ 5,591 Three Months Ended March 31, 2021 Revenues from external customers (a) Contracts with customers Other (b) Total Intersegment Revenues Total Revenues Mid-Atlantic $ 1,174 $ (14) $ 1,160 $ 5 $ 1,165 Midwest 1,009 (11) 998 — 998 New York 382 (45) 337 — 337 ERCOT 353 (101) 252 5 257 Other Power Regions 1,172 268 1,440 (10) 1,430 Total Competitive Businesses Electric Revenues 4,090 97 4,187 — 4,187 Competitive Businesses Natural Gas Revenues 864 462 1,326 — 1,326 Competitive Businesses Other Revenues (c) 89 (43) 46 — 46 Total Consolidated Operating Revenues $ 5,043 $ 516 $ 5,559 $ — $ 5,559 __________ (a) Includes all wholesale and retail electric sales to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022. (b) Includes revenues from derivatives and leases. (c) Represents activities not allocated to a region. See text above for a description of included activities. Includes unrealized mark-to-mar ket losses of $921 million and $84 million for the three months ended March 31, 2022 and 2021, respectively, and the elimination of intersegment revenues. Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 RNF from external (a) Intersegment Total RNF from external (a) Intersegment Total Mid-Atlantic $ 509 $ (1) $ 508 $ 562 $ 5 $ 567 Midwest 785 — 785 702 — 702 New York 260 8 268 240 2 242 ERCOT 106 (27) 79 (1,036) (148) (1,184) Other Power Regions 297 (10) 287 250 (33) 217 Total RNF for Reportable Segments 1,957 (30) 1,927 718 (174) 544 Other (b) 84 30 114 231 174 405 Total RNF $ 2,041 $ — $ 2,041 $ 949 $ — $ 949 __________ (a) Includes purchases and sales from/to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022. (b) Other represents activities not allocated to a region. See text above for a description of included activities. Primarily includes: • unrealized mark-to-market losses of $92 million and gains of $175 million for the three months ended March 31, 2022 and 2021, respectively; • accelerated nuclear fuel amortization associated with the announced early plant retirements as discussed in Note 7 - Early Plant Retirements of $54 million for the three months ended March 31, 2021; and • the elimination of intersegment RNF. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Allowance for Credit Losses on Accounts Receivable The following table presents the rollforward of Allowance for Credit Losses on Customer Accounts Receivable. Three Months Ended March 31, 2022 Balance as of December 31, 2021 (a) $ 55 Plus: Current period provision for expected credit losses — Less: Write-offs, net of recoveries (b) 5 Balance as of March 31, 2022 (a) $ 50 Three Months Ended March 31, 2021 Balance as of December 31, 2020 (a) $ 32 Plus: Current period provision for expected credit losses (c) 34 Less: Write-offs, net of recoveries (b) 1 Balance as of March 31, 2021 (a) $ 65 __________ (a) Allowance for Credit Losses on Other Accounts Receivable were not material as of the balance sheet dates. (b) Recoveries were not material. (c) Primarily relates to the impacts of the February 2021 extreme cold weather event. See Note 3 — Regulatory Matters for additional information . Unbilled Customer Revenue We recorded $360 million and $373 million of unbilled customer revenues in Customer accounts receivables, net in the Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021, respectively. Sales of Customer Accounts Receivable On April 8, 2020, NER, a bankruptcy remote, special purpose entity, which is wholly owned by us, entered into a revolving accounts receivable financing arrangement with a number of financial institutions and a commercial paper conduit (the Purchasers) to sell certain customer accounts receivable (the Facility). The Facility has a maximum funding limit of $900 million and is scheduled to expire on March 29, 2024, unless renewed by the mutual consent of the parties in accordance with its terms. Under the Facility, NER may sell eligible short-term customer accounts receivable to the Purchasers in exchange for cash and subordinated interest. The transfers are reported as sales of receivables in the consolidated financial statements. The subordinated interest in collections upon the receivables sold to the Purchasers is referred to as the DPP, which is reflected in Other current assets in the Consolidated Balance Sheets. The Facility requires the balance of eligible receivables to be maintained at or above the balance of cash proceeds received from the Purchasers. To the extent the eligible receivables decrease below such balance, we are required to repay cash to the Purchasers. When eligible receivables exceed cash proceeds, we have the ability to increase the cash received up to the maximum funding limit. These cash inflows and outflows impact the DPP. The following table summarizes the impact of the sale of certain receivables: March 31, 2022 December 31, 2021 Derecognized receivables transferred at fair value $ 1,321 $ 1,265 Cash proceeds received 900 900 DPP 421 365 Three Months Ended March 31, 2022 2021 Loss on sale of receivables (a) $ 10 $ 17 __________ (a) Reflected in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income. Three Months Ended March 31, 2022 2021 Proceeds from new transfers (a) $ 1,654 $ 1,036 Cash collections received on DPP and reinvested in the Facility (b) 853 1,174 Cash collections reinvested in the Facility 2,507 2,210 __________ (a) Customer accounts receivable sold into the Facility were $2,572 million and $2,375 million for the three months ended March 31, 2022 and 2021, respectively. (b) Does not include $400 million in cash proceeds received from the Purchasers in the first quarter of 2021. Our risk of loss following the transfer of accounts receivable is limited to the DPP outstanding. Payment of DPP is not subject to significant risks other than delinquencies and credit losses on accounts receivable transferred, which have historically been and are expected to be immaterial. We continue to service the receivables sold in exchange for a servicing fee. We did not record a servicing asset or liability as the servicing fees were immaterial. We recognize the cash proceeds received upon sale in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The collection and reinvestment of DPP is recognized in Net cash provided by investing activities in the Consolidated Statements of Cash Flows. See Note 13 — Fair Value of Financial Assets and Liabilities and Note 17 — Variable Interest Entities for additional information. Other Purchases and Sales of Customer and Other Accounts Receivables We are required, under supplier tariffs in ISO-NE, MISO, NYISO, and PJM, to sell customer and other receivables to utility companies, which include Exelon's utility subsidiaries. The following table presents the total receivables sold. Three Months Ended March 31, 2022 2021 Total receivables sold $ 69 $ 81 Related party transactions: Receivables sold to Exelon's utility subsidiaries prior to the separation on February 1, 2022 4 12 |
Early Plant Retirements
Early Plant Retirements | 3 Months Ended |
Mar. 31, 2022 | |
Implications of Potential Early Plant Retirements [Abstract] | |
Early Plant Retirements | Early Plant Retirements We continuously evaluate factors that affect the current and expected economic value of our plants, including, but not limited to: market power prices, results of capacity auctions, potential legislative and regulatory solutions to ensure plants are fairly compensated for benefits they provide through their carbon-free emissions, reliability or fuel security, and the impact of potential rules from the EPA requiring reduction of carbon and other emissions and the efforts of states to implement those final rules. The precise timing of an early retirement date for any plant, and the resulting financial statement impacts, may be affected by many factors, including the status of potential regulatory or legislative solutions, results of any transmission system reliability study assessments, the nature of any co-owner requirements and stipulations, and NDT fund requirements for nuclear plants, among other factors. However, the earliest retirement date for any plant would usually be the first year in which the unit does not have capacity or other obligations, and where applicable, just prior to its next scheduled nuclear refueling outage. Nuclear Generation On August 27, 2020, we announced our intention to permanently cease our operations at Byron in September 2021 and at Dresden in November 2021. Neither of these nuclear plants cleared in PJM’s capacity auction for the 2022-2023 planning year held in May 2021. Our Braidwood and LaSalle nuclear plants in Illinois did clear in the capacity auction, but were also showing increased signs of economic distress. On September 15, 2021, we announced that we have reversed our previous decision to retire Byron and Dresden given the opportunity for additional revenue under the Clean Energy Law. Our Byron, Dresden, and Braidwood nuclear plants participated in the CMC procurement process and were awarded contracts that commit each plant to operate through May 31, 2027. In addition, we no longer consider the Braidwood or LaSalle nuclear plants to be at risk for premature retirement. See Note 3 — Regulatory Matters of our 2021 Form 10-K for additional information. As a result of the decision to early retire Byron and Dresden, there were ongoing annual financial impacts stemming from shortening the expected economic useful lives of these nuclear plants primarily related to accelerated depreciation of plant assets (including any ARC), accelerated amortization of nuclear fuel, and changes in ARO accretion expense associated with the changes in decommissioning timing and cost assumptions to reflect an earlier retirement date. The total impact for the three months ended March 31, 2021 in the Consolidated Statements of Operations and Comprehensive Income resulting from the initial decision to early retire Byron and Dresden is summarized in the table below. Income statement expense (pre-tax) Three Months Ended March 31, 2021 Depreciation and amortization Accelerated depreciation (a) $ 620 Accelerated nuclear fuel amortization 54 Operating and maintenance Other charges 2 Contractual offset (b) (226) Total $ 450 _________ (a) Includes the accelerated depreciation of plant assets including any ARC. (b) Reflects contractual offset for ARO accretion, ARC depreciation, ARO remeasurement, and excludes any changes in earnings in the NDT funds. Based on the regulatory agreement with the ICC, decommissioning-related activities are offset in the Consolidated Statements of Operations and Comprehensive Income as long as the net cumulative decommissioning-related activity result in a regulatory liability at ComEd. The offset resulted in an equal adjustment to the noncurrent payables to ComEd. We remain committed to continued operations for our other nuclear plants receiving state-supported payments under the Illinois ZES (Clinton and Quad Cities), New Jersey ZEC program (Salem), and the New York CES (FitzPatrick, Ginna, and Nine Mile Point) assuming the continued effectiveness of each program. To the extent each program does not operate as expected over the full term, each of these plants would be at heightened risk for early retirement, which could have a material impact in future financial statements. We continue to work with stakeholders on state policy solutions to support continued operation of our nuclear fleet, while also advocating for broader market reforms at the regional and federal level. The absence of such solutions or reforms could have a material unfavorable impact on our future results of operations. Other Generation In March 2018, we notified ISO-NE of our plans to early retire, among other assets, the Mystic Generating Station's units 8 and 9 (Mystic 8 and 9) absent regulatory reforms to properly value reliability and regional fuel security. Thereafter, ISO-NE identified Mystic 8 and 9 as being needed to ensure fuel security for the region and entered into a cost of service agreement with these two units for the period between June 1, 2022 - May 31, 2024. The agreement was approved by FERC in December 2018. On June 10, 2020, we filed a complaint with FERC against ISO-NE stating that ISO-NE failed to follow its tariff with respect to its evaluation of Mystic 8 and 9 for transmission security for the 2024 to 2025 Capacity Commitment Period and that the modifications that ISO-NE made to its unfiled planning procedures to avoid retaining Mystic 8 and 9 should have been filed with FERC for approval. On August 17, 2020, FERC issued an order denying the complaint. As a result, on August 20, 2020, we announced we will permanently cease generation operations at Mystic 8 and 9 at the expiration of the cost of service commitment in May 2024. See Note 3 — Regulatory Matters of our 2021 Form 10-K for additional discussion of Mystic's cost of service agreement. |
Nuclear Decommissioning
Nuclear Decommissioning | 3 Months Ended |
Mar. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Nuclear Decommissioning | Nuclear Decommissioning Nuclear Decommissioning Asset Retirement Obligations We have a legal obligation to decommission our nuclear power plants following the permanent cessation of operations. To estimate our decommissioning obligations related to our nuclear generating stations for financial accounting and reporting purposes, we use a probability-weighted, discounted cash flow model which, on a unit-by-unit basis, considers multiple outcome scenarios that include significant estimates and assumptions, and are based on decommissioning cost studies, cost escalation rates, probabilistic cash flow models, and discount rates. We update our AROs annually, unless circumstances warrant more frequent updates, based on our review of updated cost studies and our annual evaluation of cost escalation factors and probabilities assigned to various scenarios. The financial statement impact for changes in the ARO, on an individual unit basis, due to the changes in and timing of estimated cash flows generally result in a corresponding change in the unit’s ARC in Property, plant, and equipment in the Consolidated Balance Sheets. If the ARO decreases for a Non-Regulatory Agreement unit without any remaining ARC, the corresponding change is recorded as a decrease in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income. The following table provides a rollforward of the nuclear decommissioning AROs reflected in the Consolidated Balance Sheets from December 31, 2021 to March 31, 2022: Balance as of December 31, 2021 (a) $ 12,676 Net increase due to changes in, and timing of, estimated future cash flows 335 Accretion expense 129 Costs incurred related to decommissioning plants (17) Balance as of March 31, 2022 (a) $ 13,123 __________ (a) Includes $61 million and $72 million as the current portion of the ARO as of March 31, 2022 and December 31, 2021, respectively, which is included in Other current liabilities in the Consolidated Balance Sheets. During the three months ended March 31, 2022, the net $335 million increase in the ARO for the changes in the amounts and timing of estimated decommissioning cash flows was driven by multiple adjustments, including the following: • An increase of approximately $320 million due to revisions to the projected decommissioning schedule for our New York nuclear plants in connection with our separation from Exelon as discussed further below • An increase of approximately $95 million due to higher estimated decommissioning costs resulting from the completion of updated cost studies for our New York nuclear plants • A decrease of approximately $80 million due to an increase in discount rates NDT Funds We had NDT funds totaling $15,462 million and $16,064 million as of March 31, 2022 and December 31, 2021, respectively. The NDT funds also include $190 million and $126 million for the current portion of the NDT funds as of March 31, 2022 and December 31, 2021, respectively, which are included in Other current assets in the Consolidated Balance Sheets. See Note 18 — Supplemental Financial Information for additional information on activities of the NDT funds. Payable Related to Regulatory Agreement Units We have noncurrent payables to ComEd and PECO as a result of the nuclear decommissioning contractual construct whereby, to the extent NDT funds remain upon completion of required decommissioning, such amounts are due back to ComEd and PECO, as applicable, for payment to their respective customers. See Note 10 — Asset Retirement Obligations of our 2021 Form 10-K for additional information. The following table presents our noncurrent payables to ComEd and PECO which are recorded as Payable related to Regulatory Agreement Units as of March 31, 2022 and noncurrent Payables to affiliates as of December 31, 2021: March 31, 2022 December 31, 2021 ComEd $ 2,484 $ 2,760 PECO 485 597 NRC Minimum Funding Requirements NRC regulations require that licensees of nuclear generating facilities demonstrate reasonable assurance that funds will be available in specified minimum amounts to decommission the facility at the end of its life. We filed our biennial decommissioning funding status report with the NRC on February 24, 2021 for all units, including our shutdown units, except for Zion Station which is included in a separate report to the NRC submitted by ZionSolutions, LLC. The status report demonstrated adequate decommissioning funding assurance as of December 31, 2020 for all units except for Byron Units 1 and 2. We filed an updated decommissioning funding status report for Byron Units 1 and 2 and Dresden Units 2 and 3 on September 28, 2021 based on their current license expiration dates consistent with our announcements regarding the continued operations of these units. This report demonstrated adequate decommissioning funding assurance as of December 31, 2020 for Byron Units 1 and 2 and Dresden Units 2 and 3. On March 23, 2022, we filed our annual decommissioning funding status report with the NRC for our shutdown units (excluding Zion station for the reason noted above). The annual status report demonstrated adequate decommissioning funding assurance, based on the value of the trust funds as of December 31, 2021 for all of our shutdown reactors except for Peach Bottom Unit 1. As a former PECO plant, financial assurance for decommissioning Peach Bottom Unit 1 is provided by the NDT fund, collections from PECO customers, and the ability to adjust those collections in accordance with the approved PAPUC tariff. No additional actions are required aside from the PAPUC filing in accordance with the tariff. See Note 10 – Asset Retirement Obligations of our 2021 Form 10-K for information regarding the amount collected from PECO ratepayers for decommissioning costs of the former PECO nuclear units. Impact of Separation from Exelon Satisfying a condition precedent, on December 16, 2021, the NYPSC authorized our separation from Exelon and accepted the terms of a Joint Proposal that became binding upon closing of the separation on February 1, 2022. As part of the Joint Proposal, among other items, we have projected completion of radiological decommissioning and site restoration activities necessary to achieve a partial site release from the NRC (release of the site for unrestricted use, except for any on-site dry cask storage) within 20 years from the end of licensed life for each of our Ginna and FitzPatrick units and from the end of licensed life for the last of the NMP operating units. While there is flexibility under the Joint Proposal, there was an increase to the AROs, as noted above, associated with our New York nuclear plants during the first quarter of 2022. The Joint Proposal also required a contribution of $15 million to the NDT for NMP Unit 2 in January 2022 and requires various financial assurance mechanisms through the duration of decommissioning and site restoration, including a minimum NDT balance for each unit, adjusted for specific stages of decommissioning, and a parent guaranty for site restoration costs updated annually as site restoration progresses, which must be replaced with a third-party surety bond or equivalent financial instrument in the event we fall below investment grade. See Note 1 — Basis of Presentation for additional information. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Rate Reconciliation The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following: Three Months Ended March 31, 2022 (a) 2021 (b) U.S. federal statutory rate 21.0 % 21.0 % Increase (decrease) due to: State income taxes, net of federal income tax benefit 55.2 4.4 Qualified NDT fund income (127.5) (5.5) Amortization of investment tax credit, including deferred taxes on basis differences (9.2) 0.6 Production tax credits and other credits (34.8) 1.8 Noncontrolling interests (1.0) 0.2 Other 9.4 (3.6) Effective income tax rate (c) (86.9) % 18.9 % __________ (a) Positive percentages represent income tax expense. Negative percentages represent income tax benefit. (b) Positive percentages represent income tax benefit. Negative percentages represent income tax expense. (c) The change in effective tax rate in 2022 is primarily due to the impacts of higher net realized and unrealized NDT losses on Income before income taxes. Recognition of Unrecognized Tax Benefits The following table presents the unrecognized tax benefits that, if recognized, would decrease the effe ctive tax rate. March 31, 2022 $ 17 December 31, 2021 39 Reasonably possible the total amount of unrecognized tax benefits could significantly increase or decrease within 12 months after the reporting date No amounts are expected to significantly increase or decrease within 12 months after the reporting date. Other Tax Matters Tax Matters Agreement In connection with the separation, we entered into a TMA with Exelon. The TMA governs the respective rights, responsibilities, and obligations between us and Exelon after the separation with respect to tax liabilities and benefits, tax attributes, tax returns, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. Responsibility and Indemnification for Taxes . As a former subsidiary of Exelon, we have joint and several liability with Exelon to the IRS and certain state jurisdictions relating to the taxable periods that we were included in federal and state filings. However, the TMA specifies the portion of this tax liability for which we bear contractual responsibility, and we and Exelon each agreed to indemnify each other against any amounts for which such indemnified party is not responsible. Specifically, we will be liable for taxes due and payable in connection with tax returns that we are required to file. We will also be liable for our share of certain taxes required to be paid by Exelon with respect to taxable years or periods (or portions thereof) ending on or prior to the separation to the extent that we would have been responsible for such taxes under the Exelon tax sharing agreement then existing. As such, our Consolidated Balance Sheets reflected a payable of $103 million upon separation for tax liabilities where we maintain contractual responsibility to Exelon, with $53 million recognized in Accounts payable and $50 million in Noncurrent other liabilities as of March 31, 2022. Tax Refunds and Attributes . The TMA provides for the allocation of certain pre-closing tax attributes between us and Exelon. Tax attributes will be allocated in accordance with the principles set forth in the Exelon tax sharing agreement then existing, unless otherwise required by law. Under the TMA, we will be entitled to refunds for taxes for which we are responsible. In addition, it is expected that Exelon will have tax credit carryforwards that may be used to offset Exelon’s future tax liabilities. A significant portion of such carryforwards were generated by our business. Upon separation we reclassified $508 million from Deferred income taxes to reflect receivables of $11 million and $497 million in Other accounts receivable and Other deferred debits and other assets, respectively, in the Consolidated Balance Sheets for the tax credit carryforwards expected to be utilized by Exelon after separation in accordance with the terms of the TMA. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits Defined Benefit Pension and OPEB Effective February 1, 2022, in connection with the separation, pension and OPEB obligations and the related plan assets for current participants (inclusive of employees transferred to us from Exelon upon separation), were transferred to pension and OPEB plans established by us as the plan sponsor. Most current employees participate in the defined benefit pension and OPEB plans that we sponsor. Newly hired employees are generally not eligible for either pension or OPEB benefits; instead, these employees are eligible to receive an enhanced non-discretionary fixed employer contribution under our sponsored defined contribution savings plan. As the plan sponsor, effective February 1, 2022, our Consolidated Balance Sheets reflect an unfunded PBO equal to an excess of the PBO over the fair value of the plan assets, consistent with a single-employer benefit plan. We no longer account for our interest in Exelon sponsored pension and OPEB plans under the multi-employer benefit plan guidance as we are no longer participants. That previous approach historically resulted in the recognition of a net prepaid pension asset in our Consolidated Balance Sheets representing an excess of contributions over cumulative costs. Benefit Obligations, Plan Assets, and Funded Status As of February 1, 2022, we assumed from Exelon the PBO, APBO, and plan assets for our plan participants in connection with the separation. The pension and OPEB plans were remeasured to determine the obligations and related plan assets to be transferred to us as of that date. The pension assets allocated to us were based on the rules prescribed by ERISA for transfers of assets in connection with a pension plan separation. A portion of the Exelon OPEB plan assets, which are held in VEBA trusts, were also allocated to us separately for each funding vehicle based on the ratio of the APBO assumed by us to the total APBO attributed to each funding vehicle. The remeasurement completed at separation resulted in the recognition of pension obligations of $953 million, net of pension plan assets of $8,267 million, and OPEB obligations of $876 million, net of OPEB plan assets of $904 million. Additionally, we recognized $2,006 million (after-tax) in Accumulated other comprehensive loss for actuarial losses and prior service costs that had accrued over the lives of the plans prior to separation, primarily based on our proportionate share of the total projected pension and OPEB obligations at Exelon prior to separation. We present our benefit obligations net of plan assets on our balance sheet within the following line items: March 31, 2022 December 31, 2021 Pension Benefits OPEB Pension Benefits OPEB Prepaid pension asset $ — $ — $ 1,683 $ — Other current liabilities (10) (17) — — Pension obligations (722) — — — Non-pension postretirement benefit — (860) — (847) (Unfunded) funded status (net benefit obligation less plan assets) $ (732) $ (877) $ 1,683 $ (847) Assumptions The measurement of the plan obligations and costs of providing benefits under our defined benefit and OPEB plans involves various factors, including the development of valuation assumptions and inputs and accounting policy elections. The measurement of benefit obligations and costs is impacted by several assumptions and inputs, as shown below, among other factors. When developing the required assumptions, we consider historical information as well as future expectations. Expected Rate of Return. In determining the EROA, we consider historical economic indicators (including inflation and GDP growth) that impact asset returns, as well as expectations regarding future long-term capital market performance, weighted by our target asset class allocations. Discount Rate. The discount rates are determined by developing a spot rate curve based on the yield to maturity of a universe of high-quality non-callable (or callable with make whole provisions) bonds with similar maturities to the related pension and OPEB obligations. The spot rates are used to discount the estimated future benefit distribution amounts under the pension and OPEB plans. The discount rate is the single level rate that produces the same result as the spot rate curve. We utilize an analytical tool developed by our actuaries to determine the discount rates. Mortality. The mortality assumption is composed of a base table that represents the current expectation of life expectancy of the population adjusted by an improvement scale that attempts to anticipate future improvements in life expectancy. In 2022, we adopted the revised mortality tables and projection scales released by the SOA. The following table summarizes the assumptions we used to determine the benefit obligations as of February 1, 2022 and costs for 2022: Pension OPEB Discount rate (a) 3.23 % 3.21 % Investment crediting rate (b) 3.86 % N/A Expected return on plan assets (c) 7.00 % 6.50 % Rate of compensation increase 3.75 % 3.75 % Mortality table Pri-2012 table with MP-2021 improvement scale (adjusted) Pri-2012 table with MP-2021 improvement scale (adjusted) Healthcare cost trend on covered charges N/A Initial and ultimate rate of 5.00% __________ (a) The discount rates above represent the blended rates used to establish the majority of Constellation's pension and OPEB costs. (b) The investment crediting rate above represents a weighted average rate. (c) Applicable to our pension and OPEB plans with plan assets, with the OPEB rate representing a weighted average. Components of Net Periodic Benefit Costs We report the service cost and other non-service cost components of net periodic benefit costs for all plans separately in our Consolidated Statements of Operations and Comprehensive Income. Effective February 1, 2022, the service cost component will continue to be included in Operating and maintenance expense and Property, plant, and equipment, net (where criteria for capitalization of direct labor has been met) while the non-service cost components will now be included in Other, net, in accordance with single employer plan accounting. Historically, we were allocated our portion of pension and OPEB service and non-service costs from Exelon, which was included in Operating and maintenance expense. Our portion of the total net periodic benefit costs allocated to us from Exelon in 2022 prior to separation was not material and remains in total Operating and maintenance expense. The following table presents the components of our net periodic benefit costs, prior to capitalization, for the three months ended March 31, 2022 and 2021: Pension Benefits OPEB Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2022 2021 Components of net periodic benefit cost Service cost $ 33 $ 36 $ 6 $ 7 Interest cost 70 59 13 11 Expected return on assets (137) (123) (14) (15) Amortization of: Prior service cost (credit) — — (2) (2) Actuarial loss 38 50 — 3 Net periodic benefit cost (a) $ 4 $ 22 $ 3 $ 4 __________ (a) The pension and OPEB non-service costs for the three months ended March 31, 2021 totaling ($14) million and ($3) million, respectively, are reflected in Operating and maintenance expense. Effective February 1, 2022, the non-service costs are reflected in Other, net. Average Remaining Service Period For pension benefits, we amortize the unrecognized prior service costs (credits) and certain actuarial gains and losses reflected in AOCI, as applicable, based on participants’ average remaining service periods. For OPEB, we amortize the unrecognized prior service costs (credits) reflected in AOCI over participants’ average remaining service period to benefit eligibility age, and amortize certain actuarial gains and losses reflected in AOCI over participants’ average remaining service period to expected retirement. The resulting average remaining service periods for pension and OPEB were as follows as of March 31, 2022: March 31, 2022 Pension plans 12.2 OPEB plans: Benefit Eligibility Age 7.5 Expected Retirement 8.3 Contributions We consider various factors when making pension funding decisions, including actuarially determined minimum contribution requirements under ERISA, contributions required to avoid benefit restrictions and at-risk status as defined by the Pension Protection Act of 2006 (the Act), and management of the pension obligation. The Act requires the attainment of certain funding levels to avoid benefit restrictions (such as an inability to pay lump sums or to accrue benefits prospectively), and at-risk status (which triggers higher minimum contribution requirements and participant notification). The contributions below reflect a funding strategy to make levelized annual contributions with the objective of achieving 100% funded status on an ABO basis over time. This level funding strategy helps minimize the volatility of future period required pension contributions. Based on this funding strategy and current market conditions, which are both subject to change, we made our annual qualified pension contribution totaling $192 million in February 2022. There are no additional contributions expected for the remainder of 2022. Our non-qualified pension plans are not funded given that they are not subject to statutory minimum contribution requirements. While OPEB plans are also not subject to statutory minimum contribution requirements, we do fund certain plans. For our funded OPEB plans, contributions generally equal accounting costs; however, we consider several factors in determining the level of contributions to our OPEB plans, including liabilities management and levels of benefit claims paid. The planned benefit payments to the non-qualified pension plans in 2022 are $9 million and the planned contributions to the OPEB plans, including benefit payments to unfunded plans is $27 million. The benefit payments to the non-qualified pension plans and OPEB plans for the three months ended March 31, 2022 were both $6 million. Estimated Future Benefit Payments Estimated future benefit payments to participants in all pension and OPEB plans as of March 31, 2022 were: Pension Benefits OPEB 2022 $ 532 $ 108 2023 521 108 2024 524 108 2025 536 107 2026 533 107 2027 through 2031 2,710 540 Total estimated future benefits payments through 2031 $ 5,356 $ 1,078 Plan Assets On a regular basis, we evaluate our investment strategy to ensure that plan assets will be sufficient to pay plan benefits when due. We have developed and implemented a liability hedging investment strategy for our qualified pension plans that has reduced the volatility of these pension assets relative to the associated pension liabilities. We are likely to continue to gradually increase the liability hedging portfolio as the funded status of the plans improve. The overall objective is to achieve attractive risk-adjusted returns that will balance the liquidity requirements of the plans’ liabilities while striving to minimize the risk of significant losses. Trust assets for our OPEB plans are managed in a diversified investment strategy that prioritizes maximizing liquidity and returns while minimizing asset volatility. Defined Contribution Savings Plans We sponsor the Constellation Employee Savings Plan, a 401(k) defined contribution savings plan. The plan allows employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. We match a percentage of the employee contributions up to certain limits. In addition, certain employees are eligible for a fixed non-discretionary employer contribution in lieu of a pension benefit. The matching contributions to the savings plan were $13 million for both the three months ended March 31, 2022 and 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage commodity price risk, interest rate risk, and foreign exchange risk related to ongoing business operations. Authoritative guidance requires that derivative instruments be recognized as either assets or liabilities at fair value, with changes in fair value of the derivative recognized in earnings immediately. Other accounting treatments are available through special election and designation, provided they meet specific, restrictive criteria both at the time of designation and on an ongoing basis. These alternative permissible accounting treatments include NPNS, cash flow hedges, and fair value hedges. All derivative economic hedges related to commodities, referred to as economic hedges, are recorded at fair value through earnings. For all NPNS derivative instruments, accounts receivable or accounts payable are recorded when derivatives settle and revenue or expense is recognized in earnings as the underlying physical commodity is sold or consumed. Authoritative guidance about offsetting assets and liabilities requires the fair value of derivative instruments to be shown in the Combined Notes to Consolidated Financial Statements on a gross basis, even when the derivative instruments are subject to legally enforceable master netting agreements and qualify for net presentation in the Consolidated Balance Sheets. A master netting agreement is an agreement between two counterparties that may have derivative and non-derivative contracts with each other providing for the net settlement of all referenced contracts via one payment stream, which takes place as the contracts deliver, when collateral is requested or in the event of default. In the tables below, which present fair value balances, our energy-related economic hedges and proprietary trading derivatives are shown gross. The impact of the netting of fair value balances with the same counterparty that are subject to legally enforceable master netting agreements, as well as netting of cash collateral, including margin on exchange positions, is aggregated in the collateral and netting columns. Our use of cash collateral is generally unrestricted unless we are downgraded below investment grade. Commodity Price Risk We employ established policies and procedures to manage our risks associated with market fluctuations in commodity prices by entering into physical and financial derivative contracts, including swaps, futures, forwards, options, and short-term and long-term commitments to purchase and sell energy and commodity products. We believe these instruments, which are either determined to be non-derivative or classified as economic hedges, mitigate exposure to fluctuations in commodity prices. To the extent the amount of energy we produce differs from the amount of energy we have contracted to sell, we are exposed to market fluctuations in the prices of electricity, natural gas and oil, and other commodities. We use a variety of derivative and non-derivative instruments to manage the commodity price risk of our electric generation facilities, including power and gas sales, fuel and power purchases, natural gas transportation and pipeline capacity agreements, and other energy-related products marketed and purchased. To manage these risks, we may enter into fixed-price derivative or non-derivative contracts to hedge the variability in future cash flows from expected sales of power and gas and purchases of power and fuel. The objectives for executing such hedges include fixing the price for a portion of anticipated future electricity sales at a level that provides an acceptable return. We are also exposed to differences between the locational settlement prices of certain economic hedges and the hedged generating units. This price difference is actively managed through other instruments which include derivative congestion products, whose changes in fair value are recognized in earnings each period, and auction revenue rights, which are accounted for on an accrual basis. Additionally, we are exposed to certain market risks through our proprietary trading activities. The proprietary trading activities are a complement to our energy marketing portfolio but represent a small portion of our overall energy marketing activities and are subject to limits established by our RMC. The following tables provide a summary of the derivative fair value balances recorded as of March 31, 2022 and December 31, 2021: March 31, 2022 Economic Proprietary Collateral (a)(b) Netting (a) Total Mark-to-market derivative assets (current assets) $ 21,878 $ 39 $ (264) $ (19,882) $ 1,771 Mark-to-market derivative assets (noncurrent assets) 3,836 2 (178) (3,111) 549 Total mark-to-market derivative assets 25,714 41 (442) (22,993) 2,320 Mark-to-market derivative liabilities (current liabilities) (21,154) (33) (163) 19,882 (1,468) Mark-to-market derivative liabilities (noncurrent liabilities) (3,813) — (70) 3,111 (772) Total mark-to-market derivative liabilities (24,967) (33) (233) 22,993 (2,240) Total mark-to-market derivative net assets (liabilities) $ 747 $ 8 $ (675) $ — $ 80 December 31, 2021 Mark-to-market derivative assets (current assets) $ 10,915 $ 25 $ 152 $ (8,923) $ 2,169 Mark-to-market derivative assets (noncurrent assets) 3,224 2 15 (2,298) 943 Total mark-to-market derivative assets 14,139 27 167 (11,221) 3,112 Mark-to-market derivative liabilities (current liabilities) (10,143) (19) 262 8,923 (977) Mark-to-market derivative liabilities (noncurrent liabilities) (2,893) (1) 83 2,298 (513) Total mark-to-market derivative liabilities (13,036) (20) 345 11,221 (1,490) Total mark-to-market derivative net assets (liabilities) $ 1,103 $ 7 $ 512 $ — $ 1,622 _________ (a) We net all available amounts allowed under the derivative authoritative guidance in the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases we may have other offsetting exposures, subject to a master netting or similar agreement, such as trade receivables and payables, transactions that do not qualify as derivatives, letters of credit and other forms of non-cash collateral. These amounts are not material as of March 31, 2022 and December 31, 2021 and not reflected in the table above. (b) Includes $1,400 million and $897 million of variation margin held from the exchanges as of March 31, 2022 and December 31, 2021, respectively. Economic Hedges (Commodity Price Risk) For the three months ended March 31, 2022 and 2021, we recognized the following net pre-tax commodity mark-to-market gains (losses) which are also located in the Net fair value changes related to derivatives line in the Consolidated Statements of Cash Flows. Three Months Ended March 31, 2022 2021 Income Statement Location (Loss) Gain Operating revenues $ (919) $ (83) Purchased power and fuel 826 265 Total $ (93) $ 182 In general, increases and decreases in forward market prices have a positive and negative impact, respectively, on owned and contracted generation positions that have not been hedged. For merchant revenues not already hedged via comprehensive state programs, such as the CMC in Illinois, we utilize a three-year ratable sales plan to align our hedging strategy with our financial objectives. The prompt three-year merchant revenues are hedged on an approximate rolling 90%/60%/30% basis. We may also enter into transactions that are outside of this ratable hedging program. As of March 31, 2022, the percentage of expected generation hedged for the Mid-Atlantic, Midwest, New York, and ERCOT reportable segments is 97%-100% and 86%-89% for 2022 and 2023, respectively. Proprietary Trading (Commodity Price Risk) We also execute commodity derivatives for proprietary trading purposes. Proprietary trading includes all contracts executed with the intent of benefiting from shifts or changes in market prices as opposed to those executed with the intent of hedging or managing risk. Gains and losses associated with proprietary trading are reported as Operating revenues in the Consolidated Statements of Operations and Comprehensive Income and are included in the Net fair value changes related to derivatives line in the Consolidated Statements of Cash Flows. For the three months ended March 31, 2022 and 2021, net pre-tax commodity mark-to-market gains and losses associated with proprietary trading activities were not material. Interest Rate and Foreign Exchange Risk We utilize interest rate swaps to manage our interest rate exposure and foreign currency derivatives to manage foreign exchange rate exposure associated with international commodity purchases in currencies other than U.S. dollars, both of which are treated as economic hedges. The notional amounts were $479 million and $486 million as of March 31, 2022 and December 31, 2021, respectively. The mark-to-market derivative assets and liabilities as of March 31, 2022 and December 31, 2021 and the mark-to-market gains and losses associated with management of interest rate and foreign currency risk for the three months ended March 31, 2022 and 2021 were not material. Credit Risk We would be exposed to credit-related losses in the event of non-performance by counterparties on executed derivative instruments. The credit exposure of derivative contracts, before collateral, is represented by the fair value of contracts as of the reporting date. For commodity derivatives, we enter into enabling agreements that allow for payment netting with our counterparties, which reduces our exposure to counterparty risk by providing for the offset of amounts payable to the counterparty against amounts receivable from the counterparty. Typically, each enabling agreement is for a specific commodity and, with respect to each individual counterparty, netting is limited to t ransactions involving that specific commodity product, except where master netting agreements exist with a counterparty that allows for cross commodity netting. In addition to payment netting language in the enabling agreement, our credit department establishes credit limits, margining thresholds and collateral requirements for each counterparty, which are defined in the derivative contracts. Counterparty credit limits are based on an internal credit review process that considers a variety of factors, including the results of a scoring model, leverage, liquidity, profitability, credit ratings by credit rating agencies, and risk management capabilities. To the extent that a counterparty’s margining thresholds are exceeded, the counterparty is required to post collateral with us as specified in each enabling agreement. Our credit department monitors current and forward credit exposure to counterparties and their affiliates, both on an individual and an aggregate basis. The following tables provide information on the credit exposure for all derivative instruments, NPNS and payables and receivables, net of collateral and instruments that are subject to master netting agreements, as of March 31, 2022. The tables further delineate that exposure by credit rating of the counterparties and provide guidance on the concentration of credit risk to individual counterparties. The amounts in the tables below exclude credit risk exposure from individual retail counterparties, nuclear fuel procurement contracts, and exposure through RTOs, ISOs, NYMEX, ICE, NGX, and Nodal commodity exchanges. Rating as of March 31, 2022 Total Credit Collateral (a) Net Number of Net Exposure of Investment grade $ 927 $ 123 $ 804 — $ — Non-investment grade 18 — 18 — — No external ratings Internally rated — investment grade 71 — 71 — — Internally rated — non-investment grade 220 45 175 — — Total $ 1,236 $ 168 $ 1,068 — $ — Net Credit Exposure by Type of Counterparty As of March 31, 2022 Financial institutions $ 25 Investor-owned utilities, marketers, power producers 900 Energy cooperatives and municipalities 55 Other 88 Total $ 1,068 __________ (a) As of March 31, 2022, credit collateral held from counterparties where we had credit exposure included $131 million of cash and $37 million of letters of credit. The credit collateral does not include non-liquid collateral. Credit-Risk-Related Contingent Features As part of the normal course of business, we routinely enter into physically or financially settled contracts for the purchase and sale of electric capacity, electricity, fuels, emissions allowances, and other energy-related products. Certain of our derivative instruments contain provisions that require us to post collateral. We also enter into commodity transactions on exchanges where the exchanges act as the counterparty to each trade. Transactions on the exchanges must adhere to comprehensive collateral and margining requirements. This collateral may be posted in the form of cash or credit support with thresholds contingent upon our credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. These credit-risk related contingent features stipulate that if we were to be downgraded or lose our investment grade credit rating (based on our senior unsecured debt rating), we would be required to provide additional collateral. This incremental collateral requirement allows for the offsetting of derivative instruments that are assets with the same counterparty, where the contractual right of offset exists under applicable master netting agreements. In the absence of expressly agreed-to provisions that specify the collateral that must be provided, collateral requested will be a function of the facts and circumstances of the situation at the time of the demand. In this case, we believe a combination of several months of future payments (e.g., capacity payments) and a calculation of fair value is the best estimate for the contingent collateral obligation, which has been factored into the disclosure below. The aggregate fair value of all derivative instruments with credit-risk related contingent features in a liability position that are not fully collateralized (excluding transactions on the exchanges that are fully collateralized) is detailed in the table below: Credit-Risk Related Contingent Features March 31, 2022 December 31, 2021 Gross fair value of derivative contracts containing this feature (a) $ (5,416) $ (3,872) Offsetting fair value of in-the-money contracts under master netting arrangements (b) 3,111 2,424 Net fair value of derivative contracts containing this feature (c) $ (2,305) $ (1,448) __________ (a) Amount represents the gross fair value of out-of-the-money derivative contracts containing credit-risk-related contingent features ignoring the effects of master netting agreements. (b) Amount represents the offsetting fair value of in-the-money derivative contracts under legally enforceable master netting agreements with the same counterparty, which reduces the amount of any liability for which we could potentially be required to post collateral. (c) Amount represents the net fair value of out-of-the-money derivative contracts containing credit-risk related contingent features after considering the mitigating effects of offsetting positions under master netting arrangements and reflects the actual net liability upon which any potential contingent collateral obligations would be based. As of March 31, 2022 and December 31, 2021, we posted or held the following amounts of cash collateral and letters of credit on derivative contracts with external counterparties, after giving consideration to offsetting derivative and non-derivative positions under master netting agreements. March 31, 2022 December 31, 2021 Cash collateral posted $ 430 $ 713 Letters of credit posted 682 755 Cash collateral held 1,068 182 Letters of credit held 41 124 Additional collateral required in the event of a credit downgrade below investment grade 2,838 2,113 We entered into supply forward contracts with certain utilities with one-sided collateral postings only from us. If market prices fall below the benchmark price levels in these contracts, the utilities are not required to post collateral. However, when market prices rise above the benchmark price levels, counterparty suppliers, including us, are required to post collateral once certain unsecured credit limits are exceeded. |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Short-Term Borrowings We meet our short-term liquidity requirements primarily through the issuance of commercial paper. We may use our credit facility for general corporate purposes, including meeting short-term funding requirements and the issuance of letters of credit. Commercial Paper The following table reflects our commercial paper program supported by the revolving credit agreements and bilateral credit agreements as of March 31, 2022 and December 31, 2021: Outstanding Commercial Average Interest Rate on March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 $ — $ 702 — % 0.66 % Credit Agreements In connection with our separation from Exelon, we entered into two new credit agreements that replaced our $5.3 billion syndicated revolving credit facility. On February 1, 2022, we entered into a new credit agreement establishing a $3.5 billion revolving credit facility at a variable interest rate of SOFR plus 1.275%, with a maturity of February 1, 2027 and on February 9, 2022, we entered into a $1 billion liquidity facility with the primary purpose of supporting our letter of credit issuances with a maturity of January 31, 2027. As of March 31, 2022, we had the following aggregate bank commitments, credit facility borrowings and available capacity under our respective credit facilities: Available Capacity as of March 31, 2022 Facility Type Aggregate Bank Facility Draws Outstanding Actual To Support Syndicated Revolver (a) $ 3,500 $ — $ 873 $ 2,627 $ 2,627 Bilaterals 1,100 — 751 349 — Liquidity Facility 971 — 615 356 — Project Finance 131 — 113 18 — Total $ 5,702 $ — $ 2,352 $ 3,350 $ 2,627 __________ (a) Excludes $44 million of credit facility agreements arranged at minority and community banks. These facilities expire on October 7, 2022 and are solely utilized to issue letters of credit. As of March 31, 2022, letters of credit issued under these facilities totaled $5 million. Short-Term Loan Agreements On March 19, 2020, we entered into a term loan agreement for $200 million. The loan agreement was renewed on March 17, 2021 and will expire on March 16, 2022. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to LIBOR plus 0.875% and all indebtedness thereunder is unsecured. In connection with the separation, we repaid the term loan on January 26, 2022. The loan agreement was reflected in Short-term borrowings in the Consolidated Balance Sheet as of December 31, 2021. On March 31, 2020, we entered into a term loan agreement for $300 million. We repaid $100 million of the term loan on March 29, 2022. The remaining $200 million from the loan agreement was renewed on March 29, 2022 and will expire on March 29, 2023. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to SOFR plus 0.80% and all indebtedness thereunder is unsecured. The loan agreement is reflected in Short-term borrowings in the Consolidated Balance Sheet. On August 6, 2021, we entered into a 364-day term loan agreement for $880 million to fund the purchase of EDF's equity interest in CENG. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate of LIBOR plus 0.875% until March 31, 2022 and a rate of LIBOR plus 1% thereafter and all indebtedness thereunder is unsecured. The loan agreement was amended on January 24, 2022 to change the maturity date to June 30, 2022 from August 5, 2022. We repaid the term loan on April 15, 2022 that was reflected in Short-term borrowings in the Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. See Note 2 — Mergers, Acquisitions, and Dispositions of our 2021 Form 10-K for additional information. Long-Term Debt Debt Issuances and Redemptions During the three months ended March 31, 2022, the following long-term debt was issued: Type Interest Rate Maturity Amount Use of Proceeds Energy Efficiency Project Financing (a) 2.20% - 2.44% March 31, 2023 - February 29, 2024 $ 2 Funding to install energy conservation measures. __________ (a) For Energy Efficiency Project Financing, the maturity dates represent the expected date of project completion, upon which the respective customer assumes the outstanding debt. During the three months ended March 31, 2022, the following long-term debt was retired and/or redeemed: Type Interest Rate Maturity Amount Senior Notes 3.40% March 15, 2022 $ 500 Senior Notes 4.25% June 15, 2022 523 Continental Wind Nonrecourse Debt 6.00% February 28, 2033 20 Antelope Valley DOE Nonrecourse Debt 2.29% - 3.56% January 5, 2037 6 West Medway II Nonrecourse Debt 1 month LIBOR + 2.875% March 31, 2026 6 RPG Nonrecourse Debt 4.11% March 31, 2035 3 Long-Term Debt from Affiliates In connection with the debt obligations assumed by Exelon as part of the 2012 merger, Exelon and our subsidiaries assumed intercompany loan agreements that mirror the terms and amounts of the third-party debt obligations of Exelon, resulting in intercompany notes payable to Exelon. As of December 31, 2021, we had $319 million recorded to intercompany notes payable to Exelon Corporate. In connection with the separation, on January 31, 2022, we paid cash to Exelon Corporate in the amount of $258 million to settle the intercompany loan with the difference of $61 million recorded to membership interest. Debt Covenants As of March 31, 2022, we are in compliance with all debt covenants. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities We measure and classify fair value measurements in accordance with the hierarchy as defined by GAAP. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: • Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to liquidate as of the reporting date. • Level 2 — inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. • Level 3 — unobservable inputs, such as internally developed pricing models or third-party valuations for the asset or liability due to little or no market activity for the asset or liability. Fair Value of Financial Liabilities Recorded at Amortized Cost The following tables present the carrying amounts and fair values of the short-term liabilities, long-term debt, and the SNF obligation as of March 31, 2022 and December 31, 2021. We have no financial liabilities classified as Level 1. The carrying amounts of the short-term liabilities as presented in the Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments. March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Level 2 Level 3 Total Level 2 Level 3 Total Long-Term Debt, including amounts due within one year $ 4,739 $ 4,009 $ 1,022 $ 5,031 $ 6,114 $ 5,749 $ 1,093 $ 6,842 SNF Obligation 1,210 978 — 978 1,210 1,060 — 1,060 Recurring Fair Value Measurements The following tables present assets and liabilities measured and recorded at fair value in the Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2022 and December 31, 2021: As of March 31, 2022 As of December 31, 2021 Level 1 Level 2 Level 3 Not subject to leveling Total Level 1 Level 2 Level 3 Not subject to leveling Total Assets Cash equivalents (a) $ 912 $ — $ — $ — $ 912 $ 113 $ — $ — $ — $ 113 NDT fund investments Cash equivalents (b) 898 95 — — 993 465 116 — — 581 Equities 4,033 1,655 1 1,468 7,157 4,564 1,805 — 1,645 8,014 Fixed income Corporate debt (c) — 1,077 278 — 1,355 — 1,145 286 — 1,431 U.S. Treasury and agencies 2,139 19 — — 2,158 2,193 30 — — 2,223 Foreign governments — 46 — — 46 — 60 — — 60 State and municipal debt — 24 — — 24 — 26 — — 26 Other 29 25 — 1,391 1,445 29 23 — 1,449 1,501 Fixed income subtotal 2,168 1,191 278 1,391 5,028 2,222 1,284 286 1,449 5,241 Private credit — — 183 612 795 — — 178 624 802 Private equity — — — 696 696 — — — 673 673 Real estate — — — 885 885 — — — 864 864 NDT fund investments subtotal (d)(e) 7,099 2,941 462 5,052 15,554 7,251 3,205 464 5,255 16,175 Rabbi trust investments Cash equivalents 1 — — — 1 3 — — — 3 Mutual funds 44 — — — 44 36 — — — 36 Life insurance contracts — 31 3 — 34 — 33 — — 33 Rabbi trust investments subtotal 45 31 3 — 79 39 33 — — 72 Investments in equities (f) 13 — — — 13 43 — — — 43 Commodity derivative assets Economic hedges 5,158 14,913 5,643 — 25,714 3,017 7,223 3,899 — 14,139 Proprietary trading — 31 10 — 41 — 19 8 — 27 Effect of netting and allocation of (g)(h) (3,764) (14,643) (5,028) — (23,435) (2,108) (6,177) (2,769) — (11,054) Commodity derivative assets subtotal 1,394 301 625 — 2,320 909 1,065 1,138 — 3,112 DPP consideration — 421 — — 421 — 365 — — 365 Total assets 9,463 3,694 1,090 5,052 19,299 8,355 4,668 1,602 5,255 19,880 Liabilities Commodity derivative liabilities Economic hedges (4,054) (14,280) (6,633) — (24,967) (2,201) (6,870) (3,965) — (13,036) Proprietary trading — (31) (2) — (33) — (18) (2) — (20) Effect of netting and allocation of collateral (g)(h) 3,980 14,048 4,732 — 22,760 2,189 6,642 2,735 — 11,566 Commodity derivative liabilities subtotal (74) (263) (1,903) — (2,240) (12) (246) (1,232) — (1,490) Deferred compensation obligation — (59) — — (59) — (43) — — (43) Total liabilities (74) (322) (1,903) — (2,299) (12) (289) (1,232) — (1,533) Total net assets (liabilities) $ 9,389 $ 3,372 $ (813) $ 5,052 $ 17,000 $ 8,343 $ 4,379 $ 370 $ 5,255 $ 18,347 __________ (a) We exclude cash of $710 million and $417 million as of March 31, 2022 and December 31, 2021, respectively, and restricted cash of $62 million and $46 million as of March 31, 2022 and December 31, 2021, respectively. CEG Parent has an additional $12 million of excluded restricted cash as of March 31, 2022. (b) Includes $110 million and $116 million of cash received from outstanding repurchase agreements as of March 31, 2022 and December 31, 2021, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (e) below. (c) Includes investments in equities sold short of ($53) million and ($55) million as of March 31, 2022 and December 31, 2021, respectively, held in an investment vehicle primarily to hedge the equity option component of convertible debt. (d) Includes net derivative assets of $1 million and net derivative liabilities of $1 million, which have total notional amounts of $461 million and $687 million as of March 31, 2022 and December 31, 2021, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the periods ended and do not represent the amount of our exposure to credit or market loss. (e) Excludes net liabilities of $92 million and $111 million as of March 31, 2022 and December 31, 2021, respectively, which include certain derivative assets that have notional amounts of $231 million and $182 million as of March 31, 2022 and December 31, 2021, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, repurchase agreement obligations, and payables related to pending securities purchases. The repurchase agreements are generally short-term in nature with durations generally of 30 days or less. (f) Includes equity investments which were previously designated as equity investments without readily determinable fair values but are now publicly traded and therefore have readily determinable fair values. The first investment became publicly traded in the fourth quarter of 2020. The fair value of these investments is recorded in Other current assets in the Consolidated Balance Sheets based on the quoted market prices of the stocks as of the respective balance sheet date. Unrealized (losses) of ($20) million and ($160) million were recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2022 and the year ended December 31, 2021, respectively. (g) Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $216 million, ($595) million, and ($296) million allocated to Level 1, Level 2, and Level 3 mark-to-market derivatives, respectively, as of March 31, 2022. Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $81 million, $465 million, and ($34) million allocated to Level 1, Level 2, and Level 3 mark-to-market derivatives, respectively, as of December 31, 2021. (h) Includes $1,400 million and $897 million of variation margin held from the exchanges as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, we have outstanding commitments to invest in private credit, private equity, and real estate investments of $301 million, $163 million, and $430 million, respectively. These commitments will be funded by our existing NDT funds. We hold investments without readily determinable fair values with carrying amounts of $54 million and $33 million as of March 31, 2022 and December 31, 2021, respectively. Changes in fair value, cumulative adjustments, and impairments were not material for the three months ended March 31, 2022 and the year ended December 31, 2021. Reconciliation of Level 3 Assets and Liabilities The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2022 and 2021: For the Three Months Ended March 31, 2022 NDT Fund Investments Mark-to-Market Life Insurance Contracts Total Balance as of December 31, 2021 $ 464 $ (94) $ — $ 370 Total realized / unrealized gains (losses) Included in net income — (1,011) (a) — (1,011) Included in Payable related to Regulatory Agreement Units (2) — — (2) Change in collateral — (262) — (262) Impacts of separation — — 3 3 Purchases, sales, issuances and settlements Purchases — 49 — 49 Sales — (26) — (26) Settlements — — — — Transfers into Level 3 — 101 (b) — 101 Transfers out of Level 3 — (35) (b) — (35) Balance as of March 31, 2022 $ 462 $ (1,278) $ 3 $ (813) The amount of total losses included in income attributed to the change in unrealized losses related to assets and liabilities as of March 31, 2022 $ — $ (1,019) $ — $ (1,019) For the Three Months Ended March 31, 2021 NDT Fund Investments Mark-to-Market Total Balance as of December 31, 2020 $ 497 $ 430 $ 927 Total realized / unrealized gains (losses) Included in net income 1 (278) (a) (277) Included in noncurrent payables to affiliates 1 — 1 Change in collateral — (57) (57) Purchases, sales, issuances and settlements Purchases — 109 109 Sales — 1 1 Settlements (20) — (20) Transfers into Level 3 — — (b) — Transfers out of Level 3 — 2 (b) 2 Balance as of March 31, 2021 $ 479 $ 207 $ 686 The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of March 31, 2021 $ 1 $ (149) $ (148) __________ (a) Includes an addition of $8 million for realized losses and a reduction for the reclassification of $129 million for realized gains due to the settlement of derivative contracts for the three months ended March 31, 2022 and 2021, respectively. (b) Transfers into and out of Level 3 generally occur when the contract tenor becomes less and more observable, respectively, primarily due to changes in market liquidity or assumptions for certain commodity contracts. The following table presents the income statement classification of the total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2022 and 2021: Operating Purchased Other, net Total (losses) gains included in net income for the three months ended March 31, 2022 $ (1,021) $ 10 $ — Total unrealized (losses) gains for the three months ended March 31, 2022 (1,221) 202 — Total (losses) gains included in net income for the three months ended March 31, 2021 (116) (162) 1 Total unrealized (losses) gains for the three months ended March 31, 2021 (65) (84) 1 Our valuation techniques used to measure the fair value of the assets and liabilities shown in the tables below are in accordance with the policies discussed in Note 18 — Fair Value of Financial Assets and Liabilities of our 2021 Form 10-K. Valuation Techniques Used to Determine Net Asset Value Certain NDT Fund Investments are not classified within the fair value hierarchy and are included under the heading “Not subject to leveling” in the table above. These investments are measured at fair value using NAV per share as a practical expedient and include commingled funds, mutual funds which are not publicly quoted, managed private credit funds, private equity and real estate funds. For commingled funds and mutual funds, which are not publicly quoted, the fair value is primarily derived from the quoted prices in active markets on the underlying securities and can typically be redeemed monthly with 30 or less days of notice and without further restrictions. For managed private credit funds, the fair value is determined using a combination of valuation models including cost models, market models, and income models and typically cannot be redeemed until maturity of the term loan. Private equity and real estate investments include those in limited partnerships that invest in operating companies and real estate holding companies that are not publicly traded on a stock exchange, such as, leveraged buyouts, growth capital, venture capital, distressed investments, investments in natural resources, and direct investments in pools of real estate properties. These investments typically cannot be redeemed and are generally liquidated over a period of 8 to 10 years from the initial investment date, which is based on our understanding of the investment funds. Private equity and real estate valuations are reported by the fund manager and are based on the valuation of the underlying investments, which include inputs such as cost, operating results, discounted future cash flows, market based comparable data, and independent appraisals from sources with professional qualifications. These valuation inputs are unobservable. Mark-to-Market Derivatives See Note 11 — Derivative Financial Instruments for additional information on mark-to-market derivatives. The following table presents the significant inputs to the forward curve used to value these positions: Type of trade Fair Value as of March 31, 2022 Fair Value as of December 31, 2021 Valuation Unobservable 2022 Range & Arithmetic Average 2021 Range & Arithmetic Average Mark-to-market derivatives—Economic hedges (a)(b) $ (990) $ (66) Discounted Cash Flow Forward power $8.76 - $318 $73 $8.86 $481 $55 Forward gas $1.93 - $29 $4.45 $1.69 $17 $3.50 Option Volatility 21% - 178% 64% 24% 284% 56% __________ (a) The valuation techniques, unobservable inputs, ranges, and arithmetic averages are the same for the asset and liability positions. (b) The fair values do not include cash collateral received on level three positions of $296 million and $34 million as of March 31, 2022 and December 31, 2021, respectively. The inputs listed above, which are as of the balance sheet date, would have a direct impact on the fair values of the above instruments if they were adjusted. The significant unobservable inputs used in the fair value measurement of our commodity derivatives are forward commodity prices and for options is price volatility. Increases (decreases) in the forward commodity price in isolation would result in significantly higher (lower) fair values for long positions (contracts that give us the obligation or option to purchase a commodity), with offsetting impacts to short positions (contracts that give us the obligation or right to sell a commodity). Increases (decreases) in volatility would increase (decrease) the value for the holder of the option (writer of the option). Generally, a change in the estimate of forward commodity prices is unrelated to a change in the estimate of volatility of prices. An increase to the reserves listed above would decrease the fair value of the positions. An increase to the heat rate or renewable factors would increase the fair value accordingly. Generally, interrelationships exist between market prices of natural gas and power. As such, an increase in natural gas pricing would potentially have a similar impact on forward power markets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commercial Commitments. Commercial commitments as of March 31, 2022, representing commitments potentially triggered by future events, were as follows: Expiration within Total 2022 2023 2024 2025 2026 2027 and beyond Letters of credit $ 2,372 $ 1,660 $ 712 $ — $ — $ — $ — Surety bonds (a) 912 764 148 — — — — Total commercial commitments $ 3,284 $ 2,424 $ 860 $ — $ — $ — $ — __________ (a) Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds. Environmental Remediation Matters General. Our operations have in the past, and may in the future, require substantial expenditures to comply with environmental laws. Additionally, under Federal and state environmental laws, we are generally liable for the costs of remediating environmental contamination of property now or formerly owned by us and of property contaminated by hazardous substances generated by us. We own or lease several real estate parcels, including parcels on which our operations or the operations of others may have resulted in contamination by substances that are considered hazardous under environmental laws. In addition, we are currently involved in proceedings relating to sites where hazardous substances have been deposited and may be subject to additional proceedings in the future. Unless otherwise disclosed, we cannot reasonably estimate whether we will incur significant liabilities for additional investigation and remediation costs at these or additional sites identified by us, environmental agencies, or others. Additional costs could have a material, unfavorable impact on our financial statements. As of March 31, 2022 and December 31, 2021, we had accrued undiscounted amounts of $115 million and $120 million, respectively, for environmental liabilities in Other current liabilities and Other deferred credits and other liabilities in the Consolidated Balance Sheets. Cotter Corporation. The EPA has advised Cotter Corporation (N.S.L.) (Cotter), a former ComEd subsidiary, that it is potentially liable in connection with radiological contamination at two sites in Missouri. In 2000, ComEd sold Cotter to an unaffiliated third-party. As part of the sale, ComEd agreed to indemnify Cotter for any liability arising from these two Missouri superfund sites, West Lake Landfill and Latty Avenue. In connection with Exelon’s 2001 corporate restructuring, this responsibility to indemnify Cotter was transferred to us, and ultimately retained by us per the terms of our separation from Exelon. Refer to Note 1 — Basis of Presentation for additional information on the separation. West Lake Landfill . Including Cotter, there are three PRPs currently participating in the West Lake Landfill remediation proceeding. Our investigation has identified several other parties who also may be PRPs and could be liable to contribute to the final remedy. Further investigation is ongoing. In September 2018, the EPA issued its Record of Decision Amendment (RODA) for the selection of a final remedy. The RODA modified the remedy previously selected by EPA in its 2008 Record of Decision (ROD). While the ROD required only that the radiological materials and other wastes at the site be capped, the 2018 RODA requires partial excavation of the radiological materials in addition to the previously selected capping remedy. The RODA also allows for variation in depths of excavation depending on radiological concentrations. The EPA and the PRPs have entered into a Consent Agreement to perform the Remedial Design, which is expected to be completed in the middle of 2024. In March 2019, the PRPs received Special Notice Letters from the EPA to perform the Remedial Action work. On October 8, 2019, as part of a mediation, Cotter (our indemnitee), provided a non-binding good faith offer to conduct, or finance, a portion of the remedy, subject to certain conditions. The total estimated cost of the remedy, considering the current EPA technical requirements and the total costs expected to be incurred collectively by the PRPs in fully executing the remedy, is approximately $290 million, including cost escalation on an undiscounted basis, which would be allocated among the final group of PRPs. We have determined that a loss associated with the EPA’s partial excavation and enhanced landfill cover remedy is probable and have recorded a liability, included in the total amount as discussed above, that reflects management’s best estimate of Cotter’s allocable share of the ultimate cost. Given the joint and several nature of this liability, the magnitude of our ultimate liability will depend on the actual costs incurred to implement the required remedy as well as on the nature and terms of any cost-sharing arrangements with the final group of PRPs. Therefore, it is reasonably possible that the ultimate cost and Cotter's associated allocable share could differ significantly once these uncertainties are resolved, which could have a material impact on our financial statements. One of the other PRPs has indicated it will be making a contribution claim against Cotter for costs that it has incurred to prevent a subsurface fire from spreading to those areas of the West Lake Landfill where radiological materials are believed to have been disposed. Currently, we do not possess sufficient information to assess this claim and therefore are unable to estimate a range of loss, if any. As such, no liability has been recorded for the potential contribution claim. It is reasonably possible, however, that resolution of this matter could have a material, unfavorable impact on our financial statements. In January 2018, the PRPs were advised by the EPA that it will begin an additional investigation and evaluation of groundwater conditions at the West Lake Landfill. In September 2018, the PRPs agreed to an Administrative Settlement Agreement and Order on Consent for the performance by the PRPs of the groundwater Remedial Investigation Feasibility Study (RI/FS). The purpose of this RI/FS is to define the nature and extent of any groundwater contamination from the West Lake Landfill site and evaluate remedial alternatives. We estimate the undiscounted cost for the groundwater RI/FS to be approximately $40 million. We determined a loss associated with the RI/FS is probable and have recorded a liability, included in the total amount as discussed above, that reflects management’s best estimate of Cotter’s allocable share of the cost among the PRPs. At this time we cannot predict the likelihood, or the extent to which, if any, remediation activities may be required and therefore cannot estimate a reasonably possible range of loss for response costs beyond those associated with the RI/FS component. It is reasonably possible, however, that resolution of this matter could have a material, unfavorable impact on our financial statements. Latty Avenue . In August 2011, Cotter was notified by the DOJ that Cotter is considered a PRP with respect to the government’s clean-up costs for contamination attributable to low level radioactive residues at a former storage and reprocessing facility named Latty Avenue near St. Louis, Missouri. The radioactive residues had been generated initially in connection with the processing of uranium ores as part of the U.S. Government’s Manhattan Project. Cotter purchased the residues in 1969 for initial processing at the Latty Avenue facility for the subsequent extraction of uranium and metals. In 1976, the NRC found that the Latty Avenue site had radiation levels exceeding NRC criteria for decontamination of land areas. Latty Avenue was investigated and remediated by the United States Army Corps of Engineers pursuant to funding under the Formerly Utilized Sites Remedial Action Program. On August 3, 2020, the DOJ advised Cotter that it is seeking approximately $90 million from all the PRPs and has directed that the PRPs must submit a good faith offer. In December 2021, a good faith offer was submitted to the government and negotiations are expected to commence in the second quarter of 2022. Pursuant to a series of agreements since 2011, the DOJ and the PRPs have tolled the statute of limitations until August 31, 2022 so that settlement discussions can proceed. We have determined that a loss associated with this matter is probable and have recorded an estimated liability, included in the total amount as discussed above, that reflects management's best estimate of Cotter's allocable share of the cost. It is reasonably possible that Cotter's allocable share could differ significantly, which could have a material impact on our financial statements. Litigation and Regulatory Matters Asbestos Personal Injury Claims. We maintain a reserve for claims associated with asbestos-related personal injury actions at certain facilities that are currently owned by us or were previously owned by ComEd, PECO, or BGE. The estimated liabilities are recorded on an undiscounted basis and exclude the estimated legal costs associated with handling these matters, which could be material. At March 31, 2022 and December 31, 2021, we recorded estimated liabilities of approximately $81 million in total for asbestos-related bodily injury claims. As of March 31, 2022, approximately $20 million of this amount related to 233 open claims presented to us, while the remaining $61 million is for estimated future asbestos-related bodily injury claims anticipated to arise through 2055, based on actuarial assumptions and analyses, which are updated on an annual basis. On a quarterly basis, we monitor actual experience against the number of forecasted claims to be received and expected claim payments and evaluate whether adjustments to the estimated liabilities are necessary. Impacts of the February 2021 Extreme Cold Weather Event and Texas-based Generating Assets Outages. Beginning on February 15, 2021, our Texas-based generating assets within the ERCOT market, specifically Colorado Bend II, Wolf Hollow II, and Handley, experienced outages as a result of extreme cold weather conditions. In addition, those weather conditions drove increased demand for service, dramatically increased wholesale power prices, and also increased gas prices in certain regions. See Note 3 — Regulatory Matters for additional information. Various lawsuits have been filed against us since March 2021 related to these events, including: • On March 5, 2021, we, along with more than 160 power generators and transmission and distribution companies, were sued by approximately 160 individually named plaintiffs, purportedly on behalf of all Texans who allegedly suffered loss of life or sustained personal injury, property damage or other losses as a result of the weather events. The plaintiffs allege that the defendants failed to properly prepare for the cold weather and failed to properly conduct their operations, seeking compensatory as well as punitive damages. On April 26, 2021, another multi-plaintiff lawsuit was filed on behalf of approximately 90 plaintiffs against more than 300 defendants, including us, involving similar allegations of liability and claims of personal injury and property damage. Since March 2021, approximately 60 additional lawsuits, naming multiple defendants including us, were filed by individual or multiple plaintiffs in different Texas counties, all arising out of the February weather events. These additional lawsuits allege wrongful death, property damage, or other losses. Co-defendants in these lawsuits include ERCOT, transmission and distribution utilities and other generators. On December 28, 2021, approximately 130 insurance companies which insured Texas homeowners and businesses filed a subrogation lawsuit against multiple defendants alleging that defendants were at fault for the energy failure that resulted from the winter storm, causing significant property damage to the insureds. Additionally, as of January 28, 2022, we have been added to approximately 80 additional wrongful death, personal injury, and property damage lawsuits through the Multi-District-Litigation (MDL) pending in Texas state court. The MDL now includes all of the above-described Texas state court matters. We are now defendants in approximately 150 lawsuits in the MDL brought by several hundred plaintiffs and more than 130 insurance companies. Motions to Dismiss in five bellwether cases are due May 17, 2022. We dispute liability and deny that we are responsible for any of plaintiffs’ alleged claims and are vigorously contesting them. No loss contingencies have been reflected in the consolidated financial statements with respect to these matters, as such contingencies are neither probable nor reasonably estimable at this time. • On March 22, 2021, an LDC filed a lawsuit in Missouri federal court against us for breach of contract and unjust enrichment, seeking damages of approximately $40 million. The plaintiff claims that we failed to deliver gas to our customers in February of 2021, causing the plaintiff to incur damages by forcing it to purchase gas for our customers and by our refusal to pay the resulting penalties. On March 26, 2021, we filed a complaint with the MPSC against the LDC to void the OFO penalties, or alternatively to grant a waiver or variance from the tariff requirements, to prohibit the LDC from billing or otherwise attempting to collect from us or any Missouri customer any portion of the penalties claimed by the LDC until the resolution of the complaint, and to prohibit the LDC from taking any retaliatory measure, including termination of service. On September 1, 2021, the MPSC consolidated our complaint with two other similar complaints from other companies. On January 4, 2022, the court denied our motion to dismiss, but in the alternative granted its motion to stay pending MPSC resolution of our complaint. The MPSC has abated its procedural schedule at this time. Based on the penalty provisions within the tariff that was in effect at the relevant time, we have recorded a liability of approximately $40 million as of March 31, 2022. On May 11, 2022, a settlement was filed with the MPSC that, if approved, would cause the LDC to move for the final dismissal of the federal court lawsuit, effectively resolving both matters. We cannot reasonably predict the outcome of this proceeding. General. We are involved in various other litigation matters that are being defended and handled in the ordinary course of business. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. We maintain accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of reasonably possible loss, particularly where (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Stock-Based Compensation Effective February 1, 2022, we established our own LTIP and began granting cash and stock-based awards that primarily include performance share awards and restricted stock units. Our LTIP authorized 20,000,000 shares of common stock for these awards. The existing, unvested cash and stock-based awards issued through the Exelon LTIP were modified in connection with the separation to align with our performance metrics and maintain an equivalent value immediately before and after separation. The impact of this modification was not material to our stock-based compensation expense for the three months ended March 31, 2022. The following table presents the stock-based compensation expense included in our Consolidated Statements of Operations and Comprehensive Income. The information does not include expenses related to the cash awards as they are not considered stock-based compensation plans under the applicable authoritative guidance. Three Months Ended March 31, 2022 2021 Total stock-based compensation expense included in operating and maintenance expense $ 14 $ 12 Income tax benefit (3) (3) Total after-tax stock-based compensation expense $ 11 $ 9 Performance Share Awards Performance share awards are granted under the LTIP. The performance share awards are typically settled 50% in common stock and 50% in cash at the end of the three-year performance period, subject to certain ownership thresholds that, if met, may result in cash settlement of the entire award. The common stock portion of the performance share awards is considered an equity award and is valued based on our stock price on the grant date. The cash portion of the performance share awards is considered a liability award which is remeasured each reporting period based on the current stock price. As the value of the common stock and cash portions of the awards are based on the stock price during the performance period, coupled with changes in the total expected payout of the award, the compensation costs are subject to volatility until payout is established. For nonretirement-eligible employees, stock-based compensation costs are recognized over the vesting period of three years using the straight-line method. For performance share awards granted to retirement-eligible employees, the value of the performance shares is recognized ratably over the vesting period, which is the year of grant. We process forfeitures as they occur for employees who do not complete the requisite service period. During the three months ended March 31, 2022, we granted performance share awards, inclusive of those converted at separation, totaling 1,514,288 with a weighted-average grant date fair value of $48.35. As of March 31, 2022, $33 million of total unrecognized compensation costs related to nonvested performance shares are expected to be recognized over the remaining weighted-average period of 2.4 years. Restricted Stock Units Restricted stock units are granted under the LTIP with the majority being settled in a specific number of shares of common stock after the service condition has been met. The corresponding cost is measured based on the grant date fair value of the restricted stock unit issued. The value of the restricted stock units is expensed over the requisite service period using the straight-line method. The requisite service period for restricted stock units is generally three During the three months ended March 31, 2022, we granted restricted stock units, inclusive of those converted at separation, totaling 1,283,406 with a grant date fair value of $47.20. As of March 31, 2022, $38 million of total unrecognized compensation costs related to nonvested restricted stock units are expected to be recognized over the remaining weighted-average period of 2.6 years. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated Other Comprehensive Loss The following tables present changes in AOCI, net of tax, by component: Three Months Ended March 31, 2022 Losses on Cash Flow Hedges Pension and Non-Pension Postretirement Benefit Plan Items(a) Foreign Currency Items Total Beginning balance $ (8) $ — $ (23) $ (31) Separation related adjustments — (2,006) — (2,006) OCI before reclassifications — — 4 4 Amounts reclassified from AOCI — 17 — 17 Net current-period OCI — (1,989) 4 (1,985) Ending balance $ (8) $ (1,989) $ (19) $ (2,016) Three Months Ended March 31, 2021 Losses on Cash Flow Hedges Pension and Non-Pension Postretirement Benefit Plan Items(a) Foreign Currency Items Total Beginning balance $ (7) $ — $ (23) $ (30) OCI before reclassifications — — 1 1 Amounts reclassified from AOCI — — — — Net current-period OCI — — 1 1 Ending balance $ (7) $ — $ (22) $ (29) __________ (a) AOCI amounts are included in the computation of net periodic pension and OPEB cost. See Note 10 — Retirement Benefits for additional information. See our Statements of Operations and Comprehensive Income for individual components of AOCI. The following table presents income tax benefit (expense) allocated to each component of our other comprehensive loss: Three Months Ended March 31, 2022 2021 Pension and non-pension postretirement benefit plans: Actuarial loss reclassified to periodic benefit cost $ (6) $ — Pension and non-pension postretirement benefit plans valuation adjustment 680 — |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entities | Variable Interest Entities At March 31, 2022 and December 31, 2021, we consolidated several VIEs or VIE groups for which we are the primary beneficiary (see Consolidated VIEs below) and had significant interests in several other VIEs for which we do not have the power to direct the entities’ activities and, accordingly, we were not the primary beneficiary (see Unconsolidated VIEs below). Consolidated and unconsolidated VIEs are aggregated to the extent that the entities have similar risk profiles. Consolidated VIEs The table below shows the carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the consolidated financial statements as of March 31, 2022 and December 31, 2021. The assets, except as noted in the footnotes to the table below, can only be used to settle obligations of the VIEs. The liabilities, except as noted in the footnotes to the table below, are such that creditors, or beneficiaries, do not have recourse to our general credit. March 31, 2022 December 31, 2021 Cash and cash equivalents $ 45 $ 35 Restricted cash and cash equivalents 39 48 Accounts receivable Customer 28 24 Other 7 6 Inventories, net Materials and supplies 14 14 Other current assets 461 405 Total current assets 594 532 Property, plant and equipment, net 2,004 2,027 Other noncurrent assets 209 215 Total noncurrent assets 2,213 2,242 Total assets (a) $ 2,807 $ 2,774 Long-term debt due within one year $ 65 $ 70 Accounts payable 14 10 Accrued expenses 12 21 Other current liabilities — 1 Total current liabilities 91 102 Long-term debt 799 822 Asset retirement obligations 153 151 Other noncurrent liabilities 3 3 Total noncurrent liabilities 955 976 Total liabilities (b) $ 1,046 $ 1,078 __________ (a) Our balances include unrestricted assets f or current unamortized energy contract assets of $23 million and $23 million, disclosed within other current assets in the table above, noncurrent unamortized energy contract assets of $196 million and $202 million, disclosed within other noncurrent assets in the table above as of March 31, 2022 and December 31, 2021, respectively. (b) Our balances include liabilities with recourse of $1 million and $1 million as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, our consolidated VIEs included the following: Consolidated VIE or VIE groups: Reason entity is a VIE: Reason we are the primary beneficiary: CRP - A collection of wind and solar project entities. We have a 51% equity ownership in CRP. See additional discussion below. Similar structure to a limited partnership and the limited partners do not have kick out rights with respect to the general partner. We conduct the operational activities. Bluestem Wind Energy Holdings, LLC - A Tax Equity structure which is consolidated by CRP. We have a noncontrolling interest. Similar structure to a limited partnership and the limited partners do not have kick out rights with respect to the general partner. We conduct the operational activities. Antelope Valley - A solar generating facility, which is 100% owned by us. Antelope Valley sells all of its output to PG&E through a PPA. The PPA contract absorbs variability through a performance guarantee. We conduct all activities. NER - A bankruptcy remote, special purpose entity which is 100% owned by us, which purchases certain of our customer accounts receivable arising from the sale of retail electricity. NER’s assets will be available first and foremost to satisfy the claims of the creditors of NER. Refer to Note 6 —Accounts Receivable for additional information on the sale of receivables. Equity capitalization is insufficient to support its operations. We conduct all activities. CRP - CRP is a collection of wind and solar project entities and some of these project entities are VIEs that are consolidated by CRP. While we or CRP own 100% of the solar entities and 100% of the majority of the wind entities, it has been determined that the wholly owned solar and wind entities are VIEs because the entities' customers absorb price variability from the entities through fixed price power and/or REC purchase agreements. Additionally, for the wind entities that have minority interests, it has been determined that these entities are VIEs because the governance rights of some investors are not proportional to their financial rights. We are the primary beneficiary of these solar and wind entities that qualify as VIEs because we control operations and direct all activities of the facilities. There is limited recourse to us related to certain solar and wind entities. In 2017, our interests in CRP were contributed to and are pledged for the CR non-recourse debt project financing structure. Refer to Note 17 — Debt and Credit Agreements of our 2021 Form 10-K for additional information. Unconsolidated VIEs Our variable interests in unconsolidated VIEs generally include equity investments and energy purchase and sale contracts. For the equity investments, the carrying amount of the investments is reflected in the Consolidated Balance Sheets in Investments. For the energy purchase and sale contracts (commercial agreements), the carrying amount of assets and liabilities in the Consolidated Balance Sheets that relate to our involvement with the VIEs are predominantly related to working capital accounts and generally represent the amounts owed by, or owed to, us for the deliveries associated with the current billing cycles under the commercial agreements. As of March 31, 2022 and December 31, 2021, we had significant unconsolidated variable interests in several VIEs for which we were not the primary beneficiary. These interests include certain equity method investments and certain commercial agreements. The following table presents summary information about our significant unconsolidated VIE entities: March 31, 2022 December 31, 2021 Commercial Equity Total Commercial Equity Total Total assets (a) $ 751 $ 362 $ 1,113 $ 772 $ 372 $ 1,144 Total liabilities (a) 72 213 285 80 216 296 Our ownership interest in VIE (a) — 133 133 — 139 139 Other ownership interests in VIE (a) 679 16 695 692 17 709 __________ (a) These items represent amounts on the unconsolidated VIE balance sheets, not in the Consolidated Balance Sheets. These items are included to provide information regarding the relative size of the unconsolidated VIEs. We do not have any exposure to loss as we do not have a carrying amount in the equity investment VIEs as o f March 31, 2022 and December 31, 2021. As of March 31, 2022 and December 31, 2021 the unconsolidated VIEs consist of: Unconsolidated VIE groups: Reason entity is a VIE: Reason we are not the primary beneficiary: Equity investments in distributed energy companies. Similar structures to a limited partnership and the limited partners do not have kick out rights with respect to the general partner. We do not conduct the operational activities. Energy Purchase and Sale agreements - We have several energy purchase and sale agreements with generating facilities. PPA contracts that absorb variability through fixed pricing. We do not conduct the operational activities. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Supplemental Statement of Operations Information The following tables provide additional information about material items recorded within our Consolidated Statements of Operations and Comprehensive Income. Operating revenues Three Months Ended March 31, 2022 2021 Operating lease income $ 4 $ 3 Variable lease income 56 64 Taxes other than income taxes Three Months Ended March 31, 2022 2021 Gross receipts (a) $ 30 $ 24 Property 70 68 Payroll 33 28 __________ (a) Represent gross receipts taxes related to our retail operations. The offsetting collection of gross receipts taxes from customers is recorded in revenues in the Consolidated Statements of Operations and Comprehensive Income. Other, net Three Months Ended March 31, 2022 2021 Decommissioning-related activities: Net realized income on NDT funds (a) Regulatory Agreement Units $ 174 $ 291 Non-Regulatory Agreement Units 85 203 Net unrealized losses on NDT funds Regulatory Agreement Units (537) (82) Non-Regulatory Agreement Units (337) (66) Regulatory offset to NDT fund-related activities (b) 291 (167) Decommissioning-related activities (324) 179 Non-service net periodic benefit cost (c) 18 — Net unrealized losses from equity investments (d) (20) (23) __________ (a) Realized income includes interest, dividends and realized gains and losses on sales of NDT fund investments. (b) Includes the elimination of decommissioning-related activities for the Regulatory Agreement Units, including the elimination of income taxes related to all NDT fund activity for those units. See Note 10 — Asset Retirement Obligations of our 2021 Form 10-K for additional information regarding the accounting for nuclear decommissioning. (c) Historically, we were allocated our portion of pension and OPEB non-service costs from Exelon, which was included in Operating and maintenance expense. Effective February 1, 2022, the non-service cost components will now be included in Other, net, in accordance with single employer plan accounting. See Note 10 — Retirement Benefits for additional information. (d) Net unrealized losses from equity investments that became publicly traded in the fourth quarter of 2020 and the first half of 2021. Supplemental Cash Flow Information The following tables provide additional information about material items recorded within our Consolidated Statements of Cash Flows. Depreciation, amortization and accretion Three Months Ended March 31, 2022 2021 Property, plant, and equipment (a) $ 270 $ 928 Amortization of intangible assets, net (a) 10 12 Amortization of energy contract assets and liabilities (b) 9 3 Nuclear fuel (c) 181 276 ARO accretion (d) 132 127 Total depreciation, amortization, and accretion $ 602 $ 1,346 __________ (a) Included in Depreciation and amortization in the Consolidated Statements of Operations and Comprehensive Income. (b) Included in Operating revenues or Purchased power and fuel expense in the Consolidated Statements of Operations and Comprehensive Income. (c) Included in Purchased power and fuel expense in the Consolidated Statements of Operations and Comprehensive Income. (d) Included in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income. Other non-cash operating activities: Three Months Ended March 31, 2022 2021 Pension and non-pension postretirement benefit costs $ 7 $ 26 Allowance for credit losses — 34 Other decommissioning-related activity (a) 6 (332) Energy-related options (b) 188 17 Amortization of operating ROU asset 17 21 __________ (a) Includes the elimination of decommissioning-related activities for the Regulatory Agreement Units including the elimination of operating revenues, ARO accretion, ARC amortization, investment income, and income taxes related to all NDT fund activity for these units. See Note 10 — Asset Retirement Obligations of our 2021 Form 10-K for additional information regarding the accounting for nuclear decommissioning. (b) Includes option premiums reclassified to realized at the settlement of the underlying contracts and recorded to results of operations. The following table provides a reconciliation of cash, restricted cash, and cash equivalents reported within our Consolidated Balance Sheets that sum to the total of the same amounts in the Consolidated Statements of Cash Flows. CEG Parent Constellation March 31, 2022 Cash and cash equivalents $ 1,605 $ 1,605 Restricted cash and cash equivalents 91 79 Total cash, restricted cash, and cash equivalents $ 1,696 $ 1,684 December 31, 2021 Cash and cash equivalents $ 504 $ 504 Restricted cash and cash equivalents 72 72 Total cash, restricted cash, and cash equivalents $ 576 $ 576 March 31, 2021 Cash and cash equivalents $ 721 $ 721 Restricted cash and cash equivalents 41 41 Total cash, restricted cash, and cash equivalents $ 762 $ 762 December 31, 2020 Cash and cash equivalents $ 226 $ 226 Restricted cash and cash equivalents 89 89 Cash, restricted cash, and cash equivalents - Held for Sale 12 12 Total cash, restricted cash, and cash equivalents $ 327 $ 327 For additional information on restricted cash see Note 1 — Significant Accounting Policies of our 2021 Form 10-K. Supplemental Balance Sheet Information The following table provides additional information about material items recorded within our Consolidated Balance Sheets. Accrued expenses March 31, 2022 CEG Parent Constellation Compensation-related accruals (a) $ 249 $ 217 Taxes accrued 421 421 December 31, 2021 Compensation-related accruals (a) 356 356 Taxes accrued 272 272 __________ (a) Primarily includes accrued payroll, bonuses and other incentives, vacation, and benefits. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Prior to completion of the separation on February 1, 2022, we engaged in transactions with affiliates of Exelon in the normal course of business, these affiliate transactions are summarized in the tables below. After February 1, 2022, all transactions with Exelon or its affiliates are no longer related party transactions. Operating Revenues from Affiliates The following table presents our Operating revenues from affiliates: Three Months Ended March 31, 2022 2021 ComEd (a) $ 58 $ 78 PECO (b) 33 42 BGE (c) 18 72 PHI 51 100 Pepco (d) 39 75 DPL (e) 10 21 ACE (f) 2 4 Other — 3 Total operating revenues from affiliates $ 160 $ 295 __________ (a) We have an ICC-approved RFP contract with ComEd to provide a portion of ComEd’s electricity supply requirements. We also sell RECs and ZECs to ComEd. (b) We provide electric supply to PECO under contracts executed through PECO’s competitive procurement process. In addition, we have a ten-year agreement with PECO to sell solar AECs. (c) We provide a portion of BGE’s energy requirements under its MDPSC-approved market-based SOS and gas commodity programs. (d) We provide electric supply to Pepco under contracts executed through Pepco's competitive procurement process approved by the MDPSC and DCPSC. (e) We provide a portion of DPL's energy requirements under its MDPSC and DEPSC approved market-based SOS commodity programs. (f) We provide electric supply to ACE under contracts executed through ACE's competitive procurement process. Service Company Costs for Corporate Support We received a variety of corporate support services from Exelon. Through its business services subsidiary, BSC, Exelon provided support services at cost, including legal, human resources, financial, information technology, and supply management services. The costs of BSC were directly charged or allocated to us. Certain of these services continue after the separation and are covered by the TSA. See Note 1 — Basis of Presentation for additional information. The following table presents the service company costs allocated to us: Operating and maintenance from Capitalized costs Three Months Ended March 31, Three Months Ended March 31, 2022 (a) 2021 2022 (a) 2021 $ 44 $ 144 $ 15 $ 10 __________ (a) Represents only January 2022 costs prior to separation on February 1, 2022. Current Receivables from/Payables to Affiliates The following tables present Current receivables from affiliates and Current payables to affiliates: December 31, 2021 Receivables from affiliates: Payables to affiliates: ComEd $ 84 $ 13 PECO 30 — BGE 4 — Pepco 20 — DPL 4 — ACE 7 — BSC — 102 Other 11 16 Total (a) $ 160 $ 131 __________ (a) Prior to the completion of the separation on February 1, 2022, we engaged in transactions with affiliates of Exelon in the normal course of business. As of March 31, 2022, all transactions with Exelon or its affiliates are third party transactions. Payables Related to Regulatory Agreement Units We have Noncurrent payables to ComEd and PECO as a result of the nuclear decommissioning contractual construct whereby, to the extent NDT funds are greater than the underlying ARO at the end of decommissioning, such amounts are due back to ComEd and PECO, as applicable, for payment to their respective customers. See Note 8 — Nuclear Decommissioning for additional information. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On February 21, 2021, the board of directors of Exelon authorized management to pursue a plan to separate its competitive generation and customer-facing energy businesses, conducted through Constellation Energy Generation, LLC (“Constellation”, formerly Exelon Generation Company, LLC) and its subsidiaries, into an independent, publicly-traded company. CEG Parent, a direct, wholly owned subsidiary of Exelon, was newly formed for the purpose of separation and had not engaged in any business activities nor had any assets or liabilities prior to the separation. On February 1, 2022 the separation was completed and CEG Parent holds all the interests in Constellation previously held by Exelon. As an individual registrant, Constellation has historically filed consolidated financial statements to reflect its financial position and operating results as a stand-alone, wholly owned subsidiary of Exelon. The accompanying Consolidated Financial Statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 are unaudited but, in our opinion include all adjustments that are considered necessary for a fair statement of the financial statements in accordance with GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The Consolidated Financial Statements include the accounts of our subsidiaries and all intercompany transactions have been eliminated. CEG Parent's prior period financial statements have been adjusted to reflect the balances of Constellation in accordance with applicable guidance. Constellation's December 31, 2021 Consolidated Balance Sheet was derived from audited financial statements. The interim financial statements are to be read in conjunction with prior annual financial statements and notes. Financial results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2022. These Combined Notes to Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Amounts disclosed relate to CEG Parent and Constellation unless specifically noted as relating to CEG Parent only. Unless otherwise indicated or the context otherwise requires, references herein to the terms “we,” “us,” and “our” refer collectively to CEG Parent and Constellation. |
Separation from Exelon | Separation from Exelon On February 1, 2022, Exelon completed the separation through a pro-rata distribution of all of the outstanding shares of our common stock, no par value, on the basis of one such share for every three shares of Exelon common stock held on January 20, 2022, the record date of the distribution. We are now an independent, publicly traded company listed on the Nasdaq Stock Market under the symbol “CEG”, and regular-way trading began on February 2, 2022. Exelon no longer retains any ownership interest in CEG Parent or Constellation. Prior to completion of the separation, our financial statements include certain transactions with affiliates of Exelon, which are disclosed as related party transactions. After February 1, 2022, all transactions with Exelon or its affiliates are no longer related party transactions. In order to govern the ongoing relationships with Exelon after the separation, and to facilitate an orderly transition, we entered into several agreements with Exelon, including the following: • Separation Agreement – sets forth the principal actions to be taken in connection with the separation, including the transfer of assets and assumption of liabilities and establishes certain rights and obligations between us following the distribution • Transition Services Agreement (TSA) – governs all matters relating to the provision of services between us and Exelon on a transitional basis, in addition to providing us with certain services for an expected period of two-years, provided that certain services may be longer than the term and services may be extended with approval from both parties; the services include support for information technology, accounting, finance, human resources, security, and various other administrative and operational services • Employee Matters Agreement (EMA) – addresses certain employment, compensation and benefits matters, including the allocation of employees between us and Exelon and the allocation and treatment of certain assets and liabilities relating to our employees and former employees • Tax Matters Agreement (TMA) - governs the respective rights, responsibilities, and obligations between us and Exelon with respect to all tax matters (excluding employee related taxes covered under EMA), in addition to certain restrictions which generally prohibit us from taking or failing to take any action in the two-year period following the distribution that would prevent the distribution from qualifying as tax-free for U.S. federal income tax purposes, including limitations on our ability to pursue certain equity issuances, strategic transactions, repurchases or other transactions |
Retirement Benefits | Retirement Benefits Effective upon separation, we sponsor defined benefit pension plans and OPEB plans as described in Note 10 — Retirement Benefits. The plan obligations and costs of providing benefits under these plans were measured as of February 1, 2022. The measurement involved various factors, assumptions, and accounting elections. The impact of assumption changes or experience different from that assumed on pension and OPEB obligations is recognized over time rather than immediately recognized in the Consolidated Statements of Operations and Comprehensive Income. Gains or losses more than the greater of ten percent of the projected benefit obligation or the MRV of plan assets are amortized over the expected average remaining service period of plan participants. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table provides a rollforward of the contract assets reflected in the Consolidated Balance Sheets for the three months ended March 31, 2022 and 2021. Contract Assets Balance as of December 31, 2021 $ 149 Amounts reclassified to receivables (16) Revenues recognized 9 Balance as of March 31, 2022 $ 142 Balance as of December 31, 2020 $ 144 Amounts reclassified to receivables (16) Revenues recognized 13 Amounts previously held-for-sale 12 Balance as of March 31, 2021 $ 153 The following table provides a rollforward of the contract liabilities reflected in the Consolidated Balance Sheets for the three months ended March 31, 2022 and 2021. Contract Liabilities Balance as of December 31, 2021 $ 75 Consideration received or due 50 Revenues recognized (63) Balance as of March 31, 2022 $ 62 Balance as of December 31, 2020 $ 84 Consideration received or due 31 Revenues recognized (64) Amounts previously held-for-sale 3 Balance as of March 31, 2021 $ 54 |
Contract with Customer, Prior Year Contract Revenues Recognized in Current Year | The following table reflects revenues recognized in three months ended March 31, 2022 and 2021, which were included in contract liabilities at December 31, 2021 and 2020, respectively: Three Months Ended March 31, 2022 2021 Revenues recognized $ 28 $ 39 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table shows the amounts of future revenues expected to be recorded in each year for performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2022. This disclosure only includes contracts for which the total consideration is fixed and determinable at contract inception. The average contract term varies by customer type and commodity but ranges from one month to several years. This disclosure excludes our power and gas sales contracts as they contain variable volumes and/or variable pricing. 2022 2023 2024 2025 2026 and thereafter Total Remaining performance obligations $ 224 $ 132 $ 55 $ 32 $ 152 $ 595 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The following tables disaggregate the revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation of revenues reflects our two primary products of power sales and natural gas sales, with further disaggregation of power sales provided by geographic region. The following tables also show the reconciliation of reportable segment revenues and RNF to our total revenues and RNF for the three months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 Revenues from external customers (a) Contracts with customers Other (b) Total Intersegment Revenues Total Revenues Mid-Atlantic $ 1,154 $ (50) $ 1,104 $ — $ 1,104 Midwest 1,248 (51) 1,197 — 1,197 New York 494 (135) 359 6 365 ERCOT 163 72 235 — 235 Other Power Regions 1,421 512 1,933 (6) 1,927 Total Competitive Businesses Electric Revenues 4,480 348 4,828 — 4,828 Competitive Businesses Natural Gas Revenues 811 634 1,445 — 1,445 Competitive Businesses Other Revenues (c) 86 (768) (682) — (682) Total Consolidated Operating Revenues $ 5,377 $ 214 $ 5,591 $ — $ 5,591 Three Months Ended March 31, 2021 Revenues from external customers (a) Contracts with customers Other (b) Total Intersegment Revenues Total Revenues Mid-Atlantic $ 1,174 $ (14) $ 1,160 $ 5 $ 1,165 Midwest 1,009 (11) 998 — 998 New York 382 (45) 337 — 337 ERCOT 353 (101) 252 5 257 Other Power Regions 1,172 268 1,440 (10) 1,430 Total Competitive Businesses Electric Revenues 4,090 97 4,187 — 4,187 Competitive Businesses Natural Gas Revenues 864 462 1,326 — 1,326 Competitive Businesses Other Revenues (c) 89 (43) 46 — 46 Total Consolidated Operating Revenues $ 5,043 $ 516 $ 5,559 $ — $ 5,559 __________ (a) Includes all wholesale and retail electric sales to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022. (b) Includes revenues from derivatives and leases. (c) Represents activities not allocated to a region. See text above for a description of included activities. Includes unrealized mark-to-mar ket losses of $921 million and $84 million for the three months ended March 31, 2022 and 2021, respectively, and the elimination of intersegment revenues. Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 RNF from external (a) Intersegment Total RNF from external (a) Intersegment Total Mid-Atlantic $ 509 $ (1) $ 508 $ 562 $ 5 $ 567 Midwest 785 — 785 702 — 702 New York 260 8 268 240 2 242 ERCOT 106 (27) 79 (1,036) (148) (1,184) Other Power Regions 297 (10) 287 250 (33) 217 Total RNF for Reportable Segments 1,957 (30) 1,927 718 (174) 544 Other (b) 84 30 114 231 174 405 Total RNF $ 2,041 $ — $ 2,041 $ 949 $ — $ 949 __________ (a) Includes purchases and sales from/to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022. (b) Other represents activities not allocated to a region. See text above for a description of included activities. Primarily includes: • unrealized mark-to-market losses of $92 million and gains of $175 million for the three months ended March 31, 2022 and 2021, respectively; • accelerated nuclear fuel amortization associated with the announced early plant retirements as discussed in Note 7 - Early Plant Retirements of $54 million for the three months ended March 31, 2021; and • the elimination of intersegment RNF. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Allowance for Credit Losses Rollforward | The following table presents the rollforward of Allowance for Credit Losses on Customer Accounts Receivable. Three Months Ended March 31, 2022 Balance as of December 31, 2021 (a) $ 55 Plus: Current period provision for expected credit losses — Less: Write-offs, net of recoveries (b) 5 Balance as of March 31, 2022 (a) $ 50 Three Months Ended March 31, 2021 Balance as of December 31, 2020 (a) $ 32 Plus: Current period provision for expected credit losses (c) 34 Less: Write-offs, net of recoveries (b) 1 Balance as of March 31, 2021 (a) $ 65 __________ (a) Allowance for Credit Losses on Other Accounts Receivable were not material as of the balance sheet dates. (b) Recoveries were not material. (c) Primarily relates to the impacts of the February 2021 extreme cold weather event. See Note 3 — Regulatory Matters for additional information |
Purchases and Sales of Accounts Receivable | The following table summarizes the impact of the sale of certain receivables: March 31, 2022 December 31, 2021 Derecognized receivables transferred at fair value $ 1,321 $ 1,265 Cash proceeds received 900 900 DPP 421 365 Three Months Ended March 31, 2022 2021 Loss on sale of receivables (a) $ 10 $ 17 __________ (a) Reflected in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income. Three Months Ended March 31, 2022 2021 Proceeds from new transfers (a) $ 1,654 $ 1,036 Cash collections received on DPP and reinvested in the Facility (b) 853 1,174 Cash collections reinvested in the Facility 2,507 2,210 __________ (a) Customer accounts receivable sold into the Facility were $2,572 million and $2,375 million for the three months ended March 31, 2022 and 2021, respectively. (b) Does not include $400 million in cash proceeds received from the Purchasers in the first quarter of 2021. Three Months Ended March 31, 2022 2021 Total receivables sold $ 69 $ 81 Related party transactions: Receivables sold to Exelon's utility subsidiaries prior to the separation on February 1, 2022 4 12 |
Early Plant Retirements (Tables
Early Plant Retirements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Implications of Potential Early Plant Retirements [Abstract] | |
Restructuring and Related Costs | The total impact for the three months ended March 31, 2021 in the Consolidated Statements of Operations and Comprehensive Income resulting from the initial decision to early retire Byron and Dresden is summarized in the table below. Income statement expense (pre-tax) Three Months Ended March 31, 2021 Depreciation and amortization Accelerated depreciation (a) $ 620 Accelerated nuclear fuel amortization 54 Operating and maintenance Other charges 2 Contractual offset (b) (226) Total $ 450 _________ (a) Includes the accelerated depreciation of plant assets including any ARC. (b) Reflects contractual offset for ARO accretion, ARC depreciation, ARO remeasurement, and excludes any changes in earnings in the NDT funds. Based on the regulatory agreement with the ICC, decommissioning-related activities are offset in the Consolidated Statements of Operations and Comprehensive Income as long as the net cumulative decommissioning-related activity result in a regulatory liability at ComEd. The offset resulted in an equal adjustment to the noncurrent payables to ComEd. |
Nuclear Decommissioning (Tables
Nuclear Decommissioning (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | The following table provides a rollforward of the nuclear decommissioning AROs reflected in the Consolidated Balance Sheets from December 31, 2021 to March 31, 2022: Balance as of December 31, 2021 (a) $ 12,676 Net increase due to changes in, and timing of, estimated future cash flows 335 Accretion expense 129 Costs incurred related to decommissioning plants (17) Balance as of March 31, 2022 (a) $ 13,123 __________ (a) Includes $61 million and $72 million as the current portion of the ARO as of March 31, 2022 and December 31, 2021, respectively, which is included in Other current liabilities in the Consolidated Balance Sheets. |
Related Party Transactions - Noncurrent Receivables from/Payables to affiliates | The following table presents our noncurrent payables to ComEd and PECO which are recorded as Payable related to Regulatory Agreement Units as of March 31, 2022 and noncurrent Payables to affiliates as of December 31, 2021: March 31, 2022 December 31, 2021 ComEd $ 2,484 $ 2,760 PECO 485 597 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation | The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following: Three Months Ended March 31, 2022 (a) 2021 (b) U.S. federal statutory rate 21.0 % 21.0 % Increase (decrease) due to: State income taxes, net of federal income tax benefit 55.2 4.4 Qualified NDT fund income (127.5) (5.5) Amortization of investment tax credit, including deferred taxes on basis differences (9.2) 0.6 Production tax credits and other credits (34.8) 1.8 Noncontrolling interests (1.0) 0.2 Other 9.4 (3.6) Effective income tax rate (c) (86.9) % 18.9 % __________ (a) Positive percentages represent income tax expense. Negative percentages represent income tax benefit. (b) Positive percentages represent income tax benefit. Negative percentages represent income tax expense. (c) The change in effective tax rate in 2022 is primarily due to the impacts of higher net realized and unrealized NDT losses on Income before income taxes. |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | The following table presents the unrecognized tax benefits that, if recognized, would decrease the effe ctive tax rate. March 31, 2022 $ 17 December 31, 2021 39 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | We present our benefit obligations net of plan assets on our balance sheet within the following line items: March 31, 2022 December 31, 2021 Pension Benefits OPEB Pension Benefits OPEB Prepaid pension asset $ — $ — $ 1,683 $ — Other current liabilities (10) (17) — — Pension obligations (722) — — — Non-pension postretirement benefit — (860) — (847) (Unfunded) funded status (net benefit obligation less plan assets) $ (732) $ (877) $ 1,683 $ (847) The following table summarizes the assumptions we used to determine the benefit obligations as of February 1, 2022 and costs for 2022: Pension OPEB Discount rate (a) 3.23 % 3.21 % Investment crediting rate (b) 3.86 % N/A Expected return on plan assets (c) 7.00 % 6.50 % Rate of compensation increase 3.75 % 3.75 % Mortality table Pri-2012 table with MP-2021 improvement scale (adjusted) Pri-2012 table with MP-2021 improvement scale (adjusted) Healthcare cost trend on covered charges N/A Initial and ultimate rate of 5.00% __________ (a) The discount rates above represent the blended rates used to establish the majority of Constellation's pension and OPEB costs. (b) The investment crediting rate above represents a weighted average rate. (c) Applicable to our pension and OPEB plans with plan assets, with the OPEB rate representing a weighted average. The resulting average remaining service periods for pension and OPEB were as follows as of March 31, 2022: March 31, 2022 Pension plans 12.2 OPEB plans: Benefit Eligibility Age 7.5 Expected Retirement 8.3 Estimated future benefit payments to participants in all pension and OPEB plans as of March 31, 2022 were: Pension Benefits OPEB 2022 $ 532 $ 108 2023 521 108 2024 524 108 2025 536 107 2026 533 107 2027 through 2031 2,710 540 Total estimated future benefits payments through 2031 $ 5,356 $ 1,078 |
Schedule of Net Benefit Costs | The following table presents the components of our net periodic benefit costs, prior to capitalization, for the three months ended March 31, 2022 and 2021: Pension Benefits OPEB Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2022 2021 Components of net periodic benefit cost Service cost $ 33 $ 36 $ 6 $ 7 Interest cost 70 59 13 11 Expected return on assets (137) (123) (14) (15) Amortization of: Prior service cost (credit) — — (2) (2) Actuarial loss 38 50 — 3 Net periodic benefit cost (a) $ 4 $ 22 $ 3 $ 4 __________ (a) The pension and OPEB non-service costs for the three months ended March 31, 2021 totaling ($14) million and ($3) million, respectively, are reflected in Operating and maintenance expense. Effective February 1, 2022, the non-service costs are reflected in Other, net. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of the Derivative Fair Value | The following tables provide a summary of the derivative fair value balances recorded as of March 31, 2022 and December 31, 2021: March 31, 2022 Economic Proprietary Collateral (a)(b) Netting (a) Total Mark-to-market derivative assets (current assets) $ 21,878 $ 39 $ (264) $ (19,882) $ 1,771 Mark-to-market derivative assets (noncurrent assets) 3,836 2 (178) (3,111) 549 Total mark-to-market derivative assets 25,714 41 (442) (22,993) 2,320 Mark-to-market derivative liabilities (current liabilities) (21,154) (33) (163) 19,882 (1,468) Mark-to-market derivative liabilities (noncurrent liabilities) (3,813) — (70) 3,111 (772) Total mark-to-market derivative liabilities (24,967) (33) (233) 22,993 (2,240) Total mark-to-market derivative net assets (liabilities) $ 747 $ 8 $ (675) $ — $ 80 December 31, 2021 Mark-to-market derivative assets (current assets) $ 10,915 $ 25 $ 152 $ (8,923) $ 2,169 Mark-to-market derivative assets (noncurrent assets) 3,224 2 15 (2,298) 943 Total mark-to-market derivative assets 14,139 27 167 (11,221) 3,112 Mark-to-market derivative liabilities (current liabilities) (10,143) (19) 262 8,923 (977) Mark-to-market derivative liabilities (noncurrent liabilities) (2,893) (1) 83 2,298 (513) Total mark-to-market derivative liabilities (13,036) (20) 345 11,221 (1,490) Total mark-to-market derivative net assets (liabilities) $ 1,103 $ 7 $ 512 $ — $ 1,622 _________ (a) We net all available amounts allowed under the derivative authoritative guidance in the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases we may have other offsetting exposures, subject to a master netting or similar agreement, such as trade receivables and payables, transactions that do not qualify as derivatives, letters of credit and other forms of non-cash collateral. These amounts are not material as of March 31, 2022 and December 31, 2021 and not reflected in the table above. (b) Includes $1,400 million and $897 million of variation margin held from the exchanges as of March 31, 2022 and December 31, 2021, respectively. |
Economic Hedges (Commodity Price Risk) | For the three months ended March 31, 2022 and 2021, we recognized the following net pre-tax commodity mark-to-market gains (losses) which are also located in the Net fair value changes related to derivatives line in the Consolidated Statements of Cash Flows. Three Months Ended March 31, 2022 2021 Income Statement Location (Loss) Gain Operating revenues $ (919) $ (83) Purchased power and fuel 826 265 Total $ (93) $ 182 |
Disclosure of Credit Derivatives | The following tables provide information on the credit exposure for all derivative instruments, NPNS and payables and receivables, net of collateral and instruments that are subject to master netting agreements, as of March 31, 2022. The tables further delineate that exposure by credit rating of the counterparties and provide guidance on the concentration of credit risk to individual counterparties. The amounts in the tables below exclude credit risk exposure from individual retail counterparties, nuclear fuel procurement contracts, and exposure through RTOs, ISOs, NYMEX, ICE, NGX, and Nodal commodity exchanges. Rating as of March 31, 2022 Total Credit Collateral (a) Net Number of Net Exposure of Investment grade $ 927 $ 123 $ 804 — $ — Non-investment grade 18 — 18 — — No external ratings Internally rated — investment grade 71 — 71 — — Internally rated — non-investment grade 220 45 175 — — Total $ 1,236 $ 168 $ 1,068 — $ — Net Credit Exposure by Type of Counterparty As of March 31, 2022 Financial institutions $ 25 Investor-owned utilities, marketers, power producers 900 Energy cooperatives and municipalities 55 Other 88 Total $ 1,068 __________ (a) As of March 31, 2022, credit collateral held from counterparties where we had credit exposure included $131 million of cash and $37 million of letters of credit. The credit collateral does not include non-liquid collateral. |
Fair Value of Derivatives with Credit- Risk Related Contingent Features | The aggregate fair value of all derivative instruments with credit-risk related contingent features in a liability position that are not fully collateralized (excluding transactions on the exchanges that are fully collateralized) is detailed in the table below: Credit-Risk Related Contingent Features March 31, 2022 December 31, 2021 Gross fair value of derivative contracts containing this feature (a) $ (5,416) $ (3,872) Offsetting fair value of in-the-money contracts under master netting arrangements (b) 3,111 2,424 Net fair value of derivative contracts containing this feature (c) $ (2,305) $ (1,448) __________ (a) Amount represents the gross fair value of out-of-the-money derivative contracts containing credit-risk-related contingent features ignoring the effects of master netting agreements. (b) Amount represents the offsetting fair value of in-the-money derivative contracts under legally enforceable master netting agreements with the same counterparty, which reduces the amount of any liability for which we could potentially be required to post collateral. (c) Amount represents the net fair value of out-of-the-money derivative contracts containing credit-risk related contingent features after considering the mitigating effects of offsetting positions under master netting arrangements and reflects the actual net liability upon which any potential contingent collateral obligations would be based. |
Cash Collateral and Letters of Credit on Derivative Contracts | As of March 31, 2022 and December 31, 2021, we posted or held the following amounts of cash collateral and letters of credit on derivative contracts with external counterparties, after giving consideration to offsetting derivative and non-derivative positions under master netting agreements. March 31, 2022 December 31, 2021 Cash collateral posted $ 430 $ 713 Letters of credit posted 682 755 Cash collateral held 1,068 182 Letters of credit held 41 124 Additional collateral required in the event of a credit downgrade below investment grade 2,838 2,113 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table reflects our commercial paper program supported by the revolving credit agreements and bilateral credit agreements as of March 31, 2022 and December 31, 2021: Outstanding Commercial Average Interest Rate on March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 $ — $ 702 — % 0.66 % |
Schedule of Line of Credit Facilities | As of March 31, 2022, we had the following aggregate bank commitments, credit facility borrowings and available capacity under our respective credit facilities: Available Capacity as of March 31, 2022 Facility Type Aggregate Bank Facility Draws Outstanding Actual To Support Syndicated Revolver (a) $ 3,500 $ — $ 873 $ 2,627 $ 2,627 Bilaterals 1,100 — 751 349 — Liquidity Facility 971 — 615 356 — Project Finance 131 — 113 18 — Total $ 5,702 $ — $ 2,352 $ 3,350 $ 2,627 __________ (a) Excludes $44 million of credit facility agreements arranged at minority and community banks. These facilities expire on October 7, 2022 and are solely utilized to issue letters of credit. As of March 31, 2022, letters of credit issued under these facilities totaled $5 million. |
Schedule of Long-term Debt Instruments | During the three months ended March 31, 2022, the following long-term debt was issued: Type Interest Rate Maturity Amount Use of Proceeds Energy Efficiency Project Financing (a) 2.20% - 2.44% March 31, 2023 - February 29, 2024 $ 2 Funding to install energy conservation measures. __________ (a) For Energy Efficiency Project Financing, the maturity dates represent the expected date of project completion, upon which the respective customer assumes the outstanding debt. During the three months ended March 31, 2022, the following long-term debt was retired and/or redeemed: Type Interest Rate Maturity Amount Senior Notes 3.40% March 15, 2022 $ 500 Senior Notes 4.25% June 15, 2022 523 Continental Wind Nonrecourse Debt 6.00% February 28, 2033 20 Antelope Valley DOE Nonrecourse Debt 2.29% - 3.56% January 5, 2037 6 West Medway II Nonrecourse Debt 1 month LIBOR + 2.875% March 31, 2026 6 RPG Nonrecourse Debt 4.11% March 31, 2035 3 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Liabilities Recorded at Amortized Cost | The following tables present the carrying amounts and fair values of the short-term liabilities, long-term debt, and the SNF obligation as of March 31, 2022 and December 31, 2021. We have no financial liabilities classified as Level 1. The carrying amounts of the short-term liabilities as presented in the Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments. March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Level 2 Level 3 Total Level 2 Level 3 Total Long-Term Debt, including amounts due within one year $ 4,739 $ 4,009 $ 1,022 $ 5,031 $ 6,114 $ 5,749 $ 1,093 $ 6,842 SNF Obligation 1,210 978 — 978 1,210 1,060 — 1,060 |
Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following tables present assets and liabilities measured and recorded at fair value in the Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2022 and December 31, 2021: As of March 31, 2022 As of December 31, 2021 Level 1 Level 2 Level 3 Not subject to leveling Total Level 1 Level 2 Level 3 Not subject to leveling Total Assets Cash equivalents (a) $ 912 $ — $ — $ — $ 912 $ 113 $ — $ — $ — $ 113 NDT fund investments Cash equivalents (b) 898 95 — — 993 465 116 — — 581 Equities 4,033 1,655 1 1,468 7,157 4,564 1,805 — 1,645 8,014 Fixed income Corporate debt (c) — 1,077 278 — 1,355 — 1,145 286 — 1,431 U.S. Treasury and agencies 2,139 19 — — 2,158 2,193 30 — — 2,223 Foreign governments — 46 — — 46 — 60 — — 60 State and municipal debt — 24 — — 24 — 26 — — 26 Other 29 25 — 1,391 1,445 29 23 — 1,449 1,501 Fixed income subtotal 2,168 1,191 278 1,391 5,028 2,222 1,284 286 1,449 5,241 Private credit — — 183 612 795 — — 178 624 802 Private equity — — — 696 696 — — — 673 673 Real estate — — — 885 885 — — — 864 864 NDT fund investments subtotal (d)(e) 7,099 2,941 462 5,052 15,554 7,251 3,205 464 5,255 16,175 Rabbi trust investments Cash equivalents 1 — — — 1 3 — — — 3 Mutual funds 44 — — — 44 36 — — — 36 Life insurance contracts — 31 3 — 34 — 33 — — 33 Rabbi trust investments subtotal 45 31 3 — 79 39 33 — — 72 Investments in equities (f) 13 — — — 13 43 — — — 43 Commodity derivative assets Economic hedges 5,158 14,913 5,643 — 25,714 3,017 7,223 3,899 — 14,139 Proprietary trading — 31 10 — 41 — 19 8 — 27 Effect of netting and allocation of (g)(h) (3,764) (14,643) (5,028) — (23,435) (2,108) (6,177) (2,769) — (11,054) Commodity derivative assets subtotal 1,394 301 625 — 2,320 909 1,065 1,138 — 3,112 DPP consideration — 421 — — 421 — 365 — — 365 Total assets 9,463 3,694 1,090 5,052 19,299 8,355 4,668 1,602 5,255 19,880 Liabilities Commodity derivative liabilities Economic hedges (4,054) (14,280) (6,633) — (24,967) (2,201) (6,870) (3,965) — (13,036) Proprietary trading — (31) (2) — (33) — (18) (2) — (20) Effect of netting and allocation of collateral (g)(h) 3,980 14,048 4,732 — 22,760 2,189 6,642 2,735 — 11,566 Commodity derivative liabilities subtotal (74) (263) (1,903) — (2,240) (12) (246) (1,232) — (1,490) Deferred compensation obligation — (59) — — (59) — (43) — — (43) Total liabilities (74) (322) (1,903) — (2,299) (12) (289) (1,232) — (1,533) Total net assets (liabilities) $ 9,389 $ 3,372 $ (813) $ 5,052 $ 17,000 $ 8,343 $ 4,379 $ 370 $ 5,255 $ 18,347 __________ (a) We exclude cash of $710 million and $417 million as of March 31, 2022 and December 31, 2021, respectively, and restricted cash of $62 million and $46 million as of March 31, 2022 and December 31, 2021, respectively. CEG Parent has an additional $12 million of excluded restricted cash as of March 31, 2022. (b) Includes $110 million and $116 million of cash received from outstanding repurchase agreements as of March 31, 2022 and December 31, 2021, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (e) below. (c) Includes investments in equities sold short of ($53) million and ($55) million as of March 31, 2022 and December 31, 2021, respectively, held in an investment vehicle primarily to hedge the equity option component of convertible debt. (d) Includes net derivative assets of $1 million and net derivative liabilities of $1 million, which have total notional amounts of $461 million and $687 million as of March 31, 2022 and December 31, 2021, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the periods ended and do not represent the amount of our exposure to credit or market loss. (e) Excludes net liabilities of $92 million and $111 million as of March 31, 2022 and December 31, 2021, respectively, which include certain derivative assets that have notional amounts of $231 million and $182 million as of March 31, 2022 and December 31, 2021, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, repurchase agreement obligations, and payables related to pending securities purchases. The repurchase agreements are generally short-term in nature with durations generally of 30 days or less. (f) Includes equity investments which were previously designated as equity investments without readily determinable fair values but are now publicly traded and therefore have readily determinable fair values. The first investment became publicly traded in the fourth quarter of 2020. The fair value of these investments is recorded in Other current assets in the Consolidated Balance Sheets based on the quoted market prices of the stocks as of the respective balance sheet date. Unrealized (losses) of ($20) million and ($160) million were recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2022 and the year ended December 31, 2021, respectively. (g) Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $216 million, ($595) million, and ($296) million allocated to Level 1, Level 2, and Level 3 mark-to-market derivatives, respectively, as of March 31, 2022. Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $81 million, $465 million, and ($34) million allocated to Level 1, Level 2, and Level 3 mark-to-market derivatives, respectively, as of December 31, 2021. (h) Includes $1,400 million and $897 million of variation margin held from the exchanges as of March 31, 2022 and December 31, 2021, respectively. |
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2022 and 2021: For the Three Months Ended March 31, 2022 NDT Fund Investments Mark-to-Market Life Insurance Contracts Total Balance as of December 31, 2021 $ 464 $ (94) $ — $ 370 Total realized / unrealized gains (losses) Included in net income — (1,011) (a) — (1,011) Included in Payable related to Regulatory Agreement Units (2) — — (2) Change in collateral — (262) — (262) Impacts of separation — — 3 3 Purchases, sales, issuances and settlements Purchases — 49 — 49 Sales — (26) — (26) Settlements — — — — Transfers into Level 3 — 101 (b) — 101 Transfers out of Level 3 — (35) (b) — (35) Balance as of March 31, 2022 $ 462 $ (1,278) $ 3 $ (813) The amount of total losses included in income attributed to the change in unrealized losses related to assets and liabilities as of March 31, 2022 $ — $ (1,019) $ — $ (1,019) For the Three Months Ended March 31, 2021 NDT Fund Investments Mark-to-Market Total Balance as of December 31, 2020 $ 497 $ 430 $ 927 Total realized / unrealized gains (losses) Included in net income 1 (278) (a) (277) Included in noncurrent payables to affiliates 1 — 1 Change in collateral — (57) (57) Purchases, sales, issuances and settlements Purchases — 109 109 Sales — 1 1 Settlements (20) — (20) Transfers into Level 3 — — (b) — Transfers out of Level 3 — 2 (b) 2 Balance as of March 31, 2021 $ 479 $ 207 $ 686 The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of March 31, 2021 $ 1 $ (149) $ (148) __________ (a) Includes an addition of $8 million for realized losses and a reduction for the reclassification of $129 million for realized gains due to the settlement of derivative contracts for the three months ended March 31, 2022 and 2021, respectively. (b) Transfers into and out of Level 3 generally occur when the contract tenor becomes less and more observable, respectively, primarily due to changes in market liquidity or assumptions for certain commodity contracts. |
Total Realized and Unrealized Gains (Losses) Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the income statement classification of the total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2022 and 2021: Operating Purchased Other, net Total (losses) gains included in net income for the three months ended March 31, 2022 $ (1,021) $ 10 $ — Total unrealized (losses) gains for the three months ended March 31, 2022 (1,221) 202 — Total (losses) gains included in net income for the three months ended March 31, 2021 (116) (162) 1 Total unrealized (losses) gains for the three months ended March 31, 2021 (65) (84) 1 |
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis, Valuation Technique | The following table presents the significant inputs to the forward curve used to value these positions: Type of trade Fair Value as of March 31, 2022 Fair Value as of December 31, 2021 Valuation Unobservable 2022 Range & Arithmetic Average 2021 Range & Arithmetic Average Mark-to-market derivatives—Economic hedges (a)(b) $ (990) $ (66) Discounted Cash Flow Forward power $8.76 - $318 $73 $8.86 $481 $55 Forward gas $1.93 - $29 $4.45 $1.69 $17 $3.50 Option Volatility 21% - 178% 64% 24% 284% 56% __________ (a) The valuation techniques, unobservable inputs, ranges, and arithmetic averages are the same for the asset and liability positions. (b) The fair values do not include cash collateral received on level three positions of $296 million and $34 million as of March 31, 2022 and December 31, 2021, respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Commercial commitments as of March 31, 2022, representing commitments potentially triggered by future events, were as follows: Expiration within Total 2022 2023 2024 2025 2026 2027 and beyond Letters of credit $ 2,372 $ 1,660 $ 712 $ — $ — $ — $ — Surety bonds (a) 912 764 148 — — — — Total commercial commitments $ 3,284 $ 2,424 $ 860 $ — $ — $ — $ — __________ |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Cost by Plan | The following table presents the stock-based compensation expense included in our Consolidated Statements of Operations and Comprehensive Income. The information does not include expenses related to the cash awards as they are not considered stock-based compensation plans under the applicable authoritative guidance. Three Months Ended March 31, 2022 2021 Total stock-based compensation expense included in operating and maintenance expense $ 14 $ 12 Income tax benefit (3) (3) Total after-tax stock-based compensation expense $ 11 $ 9 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in AOCI, net of tax, by component: Three Months Ended March 31, 2022 Losses on Cash Flow Hedges Pension and Non-Pension Postretirement Benefit Plan Items(a) Foreign Currency Items Total Beginning balance $ (8) $ — $ (23) $ (31) Separation related adjustments — (2,006) — (2,006) OCI before reclassifications — — 4 4 Amounts reclassified from AOCI — 17 — 17 Net current-period OCI — (1,989) 4 (1,985) Ending balance $ (8) $ (1,989) $ (19) $ (2,016) Three Months Ended March 31, 2021 Losses on Cash Flow Hedges Pension and Non-Pension Postretirement Benefit Plan Items(a) Foreign Currency Items Total Beginning balance $ (7) $ — $ (23) $ (30) OCI before reclassifications — — 1 1 Amounts reclassified from AOCI — — — — Net current-period OCI — — 1 1 Ending balance $ (7) $ — $ (22) $ (29) __________ (a) AOCI amounts are included in the computation of net periodic pension and OPEB cost. See Note 10 — Retirement Benefits for additional information. See our Statements of Operations and Comprehensive Income for individual components of AOCI. The following table presents income tax benefit (expense) allocated to each component of our other comprehensive loss: Three Months Ended March 31, 2022 2021 Pension and non-pension postretirement benefit plans: Actuarial loss reclassified to periodic benefit cost $ (6) $ — Pension and non-pension postretirement benefit plans valuation adjustment 680 — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entity [Abstract] | |
Consolidated VIEs- Assets and Liabilities | The table below shows the carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the consolidated financial statements as of March 31, 2022 and December 31, 2021. The assets, except as noted in the footnotes to the table below, can only be used to settle obligations of the VIEs. The liabilities, except as noted in the footnotes to the table below, are such that creditors, or beneficiaries, do not have recourse to our general credit. March 31, 2022 December 31, 2021 Cash and cash equivalents $ 45 $ 35 Restricted cash and cash equivalents 39 48 Accounts receivable Customer 28 24 Other 7 6 Inventories, net Materials and supplies 14 14 Other current assets 461 405 Total current assets 594 532 Property, plant and equipment, net 2,004 2,027 Other noncurrent assets 209 215 Total noncurrent assets 2,213 2,242 Total assets (a) $ 2,807 $ 2,774 Long-term debt due within one year $ 65 $ 70 Accounts payable 14 10 Accrued expenses 12 21 Other current liabilities — 1 Total current liabilities 91 102 Long-term debt 799 822 Asset retirement obligations 153 151 Other noncurrent liabilities 3 3 Total noncurrent liabilities 955 976 Total liabilities (b) $ 1,046 $ 1,078 __________ (a) Our balances include unrestricted assets f or current unamortized energy contract assets of $23 million and $23 million, disclosed within other current assets in the table above, noncurrent unamortized energy contract assets of $196 million and $202 million, disclosed within other noncurrent assets in the table above as of March 31, 2022 and December 31, 2021, respectively. (b) Our balances include liabilities with recourse of $1 million and $1 million as of March 31, 2022 and December 31, 2021, respectively. |
Schedule of Variable Interest Entities | As of March 31, 2022 and December 31, 2021, our consolidated VIEs included the following: Consolidated VIE or VIE groups: Reason entity is a VIE: Reason we are the primary beneficiary: CRP - A collection of wind and solar project entities. We have a 51% equity ownership in CRP. See additional discussion below. Similar structure to a limited partnership and the limited partners do not have kick out rights with respect to the general partner. We conduct the operational activities. Bluestem Wind Energy Holdings, LLC - A Tax Equity structure which is consolidated by CRP. We have a noncontrolling interest. Similar structure to a limited partnership and the limited partners do not have kick out rights with respect to the general partner. We conduct the operational activities. Antelope Valley - A solar generating facility, which is 100% owned by us. Antelope Valley sells all of its output to PG&E through a PPA. The PPA contract absorbs variability through a performance guarantee. We conduct all activities. NER - A bankruptcy remote, special purpose entity which is 100% owned by us, which purchases certain of our customer accounts receivable arising from the sale of retail electricity. NER’s assets will be available first and foremost to satisfy the claims of the creditors of NER. Refer to Note 6 —Accounts Receivable for additional information on the sale of receivables. Equity capitalization is insufficient to support its operations. We conduct all activities. The following table presents summary information about our significant unconsolidated VIE entities: March 31, 2022 December 31, 2021 Commercial Equity Total Commercial Equity Total Total assets (a) $ 751 $ 362 $ 1,113 $ 772 $ 372 $ 1,144 Total liabilities (a) 72 213 285 80 216 296 Our ownership interest in VIE (a) — 133 133 — 139 139 Other ownership interests in VIE (a) 679 16 695 692 17 709 __________ (a) These items represent amounts on the unconsolidated VIE balance sheets, not in the Consolidated Balance Sheets. These items are included to provide information regarding the relative size of the unconsolidated VIEs. We do not have any exposure to loss as we do not have a carrying amount in the equity investment VIEs as o f March 31, 2022 and December 31, 2021. As of March 31, 2022 and December 31, 2021 the unconsolidated VIEs consist of: Unconsolidated VIE groups: Reason entity is a VIE: Reason we are not the primary beneficiary: Equity investments in distributed energy companies. Similar structures to a limited partnership and the limited partners do not have kick out rights with respect to the general partner. We do not conduct the operational activities. Energy Purchase and Sale agreements - We have several energy purchase and sale agreements with generating facilities. PPA contracts that absorb variability through fixed pricing. We do not conduct the operational activities. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Financial Information [Abstract] | |
Supplemental Statement of Operations Information | The following tables provide additional information about material items recorded within our Consolidated Statements of Operations and Comprehensive Income. Operating revenues Three Months Ended March 31, 2022 2021 Operating lease income $ 4 $ 3 Variable lease income 56 64 Taxes other than income taxes Three Months Ended March 31, 2022 2021 Gross receipts (a) $ 30 $ 24 Property 70 68 Payroll 33 28 __________ (a) Represent gross receipts taxes related to our retail operations. The offsetting collection of gross receipts taxes from customers is recorded in revenues in the Consolidated Statements of Operations and Comprehensive Income. |
Schedule of Other Nonoperating Income, by Component | Other, net Three Months Ended March 31, 2022 2021 Decommissioning-related activities: Net realized income on NDT funds (a) Regulatory Agreement Units $ 174 $ 291 Non-Regulatory Agreement Units 85 203 Net unrealized losses on NDT funds Regulatory Agreement Units (537) (82) Non-Regulatory Agreement Units (337) (66) Regulatory offset to NDT fund-related activities (b) 291 (167) Decommissioning-related activities (324) 179 Non-service net periodic benefit cost (c) 18 — Net unrealized losses from equity investments (d) (20) (23) __________ (a) Realized income includes interest, dividends and realized gains and losses on sales of NDT fund investments. (b) Includes the elimination of decommissioning-related activities for the Regulatory Agreement Units, including the elimination of income taxes related to all NDT fund activity for those units. See Note 10 — Asset Retirement Obligations of our 2021 Form 10-K for additional information regarding the accounting for nuclear decommissioning. (c) Historically, we were allocated our portion of pension and OPEB non-service costs from Exelon, which was included in Operating and maintenance expense. Effective February 1, 2022, the non-service cost components will now be included in Other, net, in accordance with single employer plan accounting. See Note 10 — Retirement Benefits for additional information. (d) Net unrealized losses from equity investments that became publicly traded in the fourth quarter of 2020 and the first half of 2021. |
Cash Flow Supplemental Disclosures | The following tables provide additional information about material items recorded within our Consolidated Statements of Cash Flows. Depreciation, amortization and accretion Three Months Ended March 31, 2022 2021 Property, plant, and equipment (a) $ 270 $ 928 Amortization of intangible assets, net (a) 10 12 Amortization of energy contract assets and liabilities (b) 9 3 Nuclear fuel (c) 181 276 ARO accretion (d) 132 127 Total depreciation, amortization, and accretion $ 602 $ 1,346 __________ (a) Included in Depreciation and amortization in the Consolidated Statements of Operations and Comprehensive Income. (b) Included in Operating revenues or Purchased power and fuel expense in the Consolidated Statements of Operations and Comprehensive Income. (c) Included in Purchased power and fuel expense in the Consolidated Statements of Operations and Comprehensive Income. (d) Included in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income. Other non-cash operating activities: Three Months Ended March 31, 2022 2021 Pension and non-pension postretirement benefit costs $ 7 $ 26 Allowance for credit losses — 34 Other decommissioning-related activity (a) 6 (332) Energy-related options (b) 188 17 Amortization of operating ROU asset 17 21 __________ (a) Includes the elimination of decommissioning-related activities for the Regulatory Agreement Units including the elimination of operating revenues, ARO accretion, ARC amortization, investment income, and income taxes related to all NDT fund activity for these units. See Note 10 — Asset Retirement Obligations of our 2021 Form 10-K for additional information regarding the accounting for nuclear decommissioning. (b) Includes option premiums reclassified to realized at the settlement of the underlying contracts and recorded to results of operations. The following table provides a reconciliation of cash, restricted cash, and cash equivalents reported within our Consolidated Balance Sheets that sum to the total of the same amounts in the Consolidated Statements of Cash Flows. CEG Parent Constellation March 31, 2022 Cash and cash equivalents $ 1,605 $ 1,605 Restricted cash and cash equivalents 91 79 Total cash, restricted cash, and cash equivalents $ 1,696 $ 1,684 December 31, 2021 Cash and cash equivalents $ 504 $ 504 Restricted cash and cash equivalents 72 72 Total cash, restricted cash, and cash equivalents $ 576 $ 576 March 31, 2021 Cash and cash equivalents $ 721 $ 721 Restricted cash and cash equivalents 41 41 Total cash, restricted cash, and cash equivalents $ 762 $ 762 December 31, 2020 Cash and cash equivalents $ 226 $ 226 Restricted cash and cash equivalents 89 89 Cash, restricted cash, and cash equivalents - Held for Sale 12 12 Total cash, restricted cash, and cash equivalents $ 327 $ 327 |
Supplemental Balance Sheet Information | The following table provides additional information about material items recorded within our Consolidated Balance Sheets. Accrued expenses March 31, 2022 CEG Parent Constellation Compensation-related accruals (a) $ 249 $ 217 Taxes accrued 421 421 December 31, 2021 Compensation-related accruals (a) 356 356 Taxes accrued 272 272 __________ (a) Primarily includes accrued payroll, bonuses and other incentives, vacation, and benefits. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents our Operating revenues from affiliates: Three Months Ended March 31, 2022 2021 ComEd (a) $ 58 $ 78 PECO (b) 33 42 BGE (c) 18 72 PHI 51 100 Pepco (d) 39 75 DPL (e) 10 21 ACE (f) 2 4 Other — 3 Total operating revenues from affiliates $ 160 $ 295 __________ (a) We have an ICC-approved RFP contract with ComEd to provide a portion of ComEd’s electricity supply requirements. We also sell RECs and ZECs to ComEd. (b) We provide electric supply to PECO under contracts executed through PECO’s competitive procurement process. In addition, we have a ten-year agreement with PECO to sell solar AECs. (c) We provide a portion of BGE’s energy requirements under its MDPSC-approved market-based SOS and gas commodity programs. (d) We provide electric supply to Pepco under contracts executed through Pepco's competitive procurement process approved by the MDPSC and DCPSC. (e) We provide a portion of DPL's energy requirements under its MDPSC and DEPSC approved market-based SOS commodity programs. (f) We provide electric supply to ACE under contracts executed through ACE's competitive procurement process. The following table presents the service company costs allocated to us: Operating and maintenance from Capitalized costs Three Months Ended March 31, Three Months Ended March 31, 2022 (a) 2021 2022 (a) 2021 $ 44 $ 144 $ 15 $ 10 __________ (a) Represents only January 2022 costs prior to separation on February 1, 2022. The following tables present Current receivables from affiliates and Current payables to affiliates: December 31, 2021 Receivables from affiliates: Payables to affiliates: ComEd $ 84 $ 13 PECO 30 — BGE 4 — Pepco 20 — DPL 4 — ACE 7 — BSC — 102 Other 11 16 Total (a) $ 160 $ 131 __________ (a) Prior to the completion of the separation on February 1, 2022, we engaged in transactions with affiliates of Exelon in the normal course of business. As of March 31, 2022, all transactions with Exelon or its affiliates are third party transactions. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Jan. 31, 2022USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022USD ($)segment | Mar. 31, 2022USD ($)Reportable_segment | Mar. 31, 2021USD ($) | Jan. 20, 2022 | Dec. 31, 2021USD ($) |
Significant Accounting Policies Additional Narrative Information [Line Items] | |||||||
Number of reportable segments | 5 | 5 | |||||
Conversion ratio | 0.3333 | ||||||
Contribution from Exelon | $ 1,750 | $ 1,750 | $ 0 | ||||
Payables to affiliates | 0 | $ 0 | $ 0 | $ 3,357 | |||
Short-term borrowings | $ 200 | 1,080 | 1,080 | 1,080 | $ 2,082 | ||
Credit facility term | 5 years | ||||||
Credit facility | $ 4,500 | 5,702 | 5,702 | 5,702 | |||
Due from affiliate | 9 | 9 | 9 | ||||
Due to affiliate | $ 56 | $ 56 | $ 56 | ||||
Pension Benefits | |||||||
Significant Accounting Policies Additional Narrative Information [Line Items] | |||||||
Contribution from Exelon | 192 | ||||||
Exelon Consolidation | |||||||
Significant Accounting Policies Additional Narrative Information [Line Items] | |||||||
Payables to affiliates | $ 258 |
Mergers, Acquisitions, and Di_2
Mergers, Acquisitions, and Dispositions (Details) - Solar Business - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Millions | Mar. 31, 2021USD ($) | Dec. 08, 2020siteMW |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
MW of generation | MW | 360 | |
Number of sites | site | 600 | |
Purchase price | $ 810 | |
Cash proceeds received | 675 | |
Long-term debt assumed by buyer | 125 | |
Pre-tax gain on disposition | $ 68 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) | Feb. 15, 2021 | Mar. 06, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Defaulting Market Participant and Settlement of Regulatory Matters | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Reduction to net income | $ 30,000,000 | $ 880,000,000 | |||
Defaulting Market Participant and Settlement of Regulatory Matters | Minimum | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Term to be paid | 62 years | ||||
Defaulting Market Participant and Settlement of Regulatory Matters | Maximum | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Term to be paid | 83 years | ||||
Texas-based generating assets | Defaulting Market Participant and Settlement of Regulatory Matters | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Market payment shortfall in collections | $ 16,000,000 | $ 17,000,000 | |||
Peach Bottom Units 2 and 3 | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Operating license renewal period | 20 years | ||||
ERCOT | Defaulting Market Participant and Settlement of Regulatory Matters | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Market payment shortfall in collections | 1,900,000,000 | $ 2,500,000,000 | |||
ERCOT | Extreme Cold Weather Conditions | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Administrative price cap | $ 9,000 | ||||
Market payment shortfall in collections | $ 3,000,000,000 | ||||
ERCOT | Public Utility Commission of Texas | |||||
Regulatory Matters Additional Narrative Information [Line Items] | |||||
Securitized funds allocation | $ 2,100,000,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Contract Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change in Contract with Customer [Roll Forward] | ||
Beginning Balance - Contract Assets | $ 149 | $ 144 |
Amounts reclassified to receivables | (16) | (16) |
Revenues recognized | 9 | 13 |
Amounts previously held-for-sale | 12 | |
Ending Balance - Contract Assets | $ 142 | $ 153 |
Revenue from Contracts with C_4
Revenue from Contracts with Customer - Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Contract with Customer, Liability [Roll Forward] | ||
Beginning Balance - Contract Liabilities | $ 75 | $ 84 |
Consideration received or due | 50 | 31 |
Revenues recognized | (63) | (64) |
Contracts liabilities reclassified as held for sale | 3 | |
Ending Balance - Contract Liabilities | $ 62 | $ 54 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenues recognized | $ 5,591 | $ 5,559 |
Remaining performance obligations | 595 | |
Contract Liability | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenues recognized | 28 | $ 39 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 224 | |
Remaining performance obligations, timing | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 132 | |
Remaining performance obligations, timing | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 55 | |
Remaining performance obligations, timing | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 32 | |
Remaining performance obligations, timing | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 152 | |
Remaining performance obligations, timing | 1 year |
Segment Information - Narrative
Segment Information - Narrative (Details) - 3 months ended Mar. 31, 2022 | segment | Reportable_segment |
Segment Reporting [Abstract] | ||
Number of reportable segments | 5 | 5 |
Segment Information - Generatio
Segment Information - Generation Total Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total operating revenues | $ 5,591 | $ 5,559 |
Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,104 | 1,165 |
Midwest | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,197 | 998 |
New York | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 365 | 337 |
ERCOT | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 235 | 257 |
Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,927 | 1,430 |
Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 4,828 | 4,187 |
Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,445 | 1,326 |
Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (682) | 46 |
Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 5,591 | 5,559 |
Operating Segments | Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,104 | 1,160 |
Operating Segments | Midwest | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,197 | 998 |
Operating Segments | New York | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 359 | 337 |
Operating Segments | ERCOT | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 235 | 252 |
Operating Segments | Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,933 | 1,440 |
Operating Segments | Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 4,828 | 4,187 |
Operating Segments | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,445 | 1,326 |
Operating Segments | Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 5,591 | 5,559 |
Intersegment Revenues | Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 5 |
Intersegment Revenues | Midwest | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 0 |
Intersegment Revenues | New York | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 6 | 0 |
Intersegment Revenues | ERCOT | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 5 |
Intersegment Revenues | Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (6) | (10) |
Intersegment Revenues | Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 0 |
Intersegment Revenues | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 0 |
Intersegment Revenues | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 0 |
Intersegment Revenues | Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 0 | 0 |
Corporate, Non-Segment | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (682) | 46 |
Contracts with customers | Operating Segments | Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,154 | 1,174 |
Contracts with customers | Operating Segments | Midwest | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,248 | 1,009 |
Contracts with customers | Operating Segments | New York | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 494 | 382 |
Contracts with customers | Operating Segments | ERCOT | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 163 | 353 |
Contracts with customers | Operating Segments | Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 1,421 | 1,172 |
Contracts with customers | Operating Segments | Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 4,480 | 4,090 |
Contracts with customers | Operating Segments | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 811 | 864 |
Contracts with customers | Operating Segments | Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 5,377 | 5,043 |
Contracts with customers | Corporate, Non-Segment | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 86 | 89 |
Other | Operating Segments | Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (50) | (14) |
Other | Operating Segments | Midwest | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (51) | (11) |
Other | Operating Segments | New York | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | (135) | (45) |
Other | Operating Segments | ERCOT | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 72 | (101) |
Other | Operating Segments | Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 512 | 268 |
Other | Operating Segments | Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 348 | 97 |
Other | Operating Segments | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 634 | 462 |
Other | Operating Segments | Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | 214 | 516 |
Other | Corporate, Non-Segment | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues | $ (768) | $ (43) |
Segment Information - Generat_2
Segment Information - Generation Total Revenues Net of Purchased Power and Fuel Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | $ 508 | $ 567 |
Midwest | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | 785 | 702 |
New York | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | 268 | 242 |
ERCOT | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | 79 | (1,184) |
Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | 287 | 217 |
Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | 1,927 | 544 |
Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | 114 | 405 |
Unrealized mark-to-market gains (losses) | (921) | (84) |
Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue Net of Purchase Power And Fuel | 2,041 | 949 |
Operating Segments | Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 509 | 562 |
Operating Segments | Midwest | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 785 | 702 |
Operating Segments | New York | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 260 | 240 |
Operating Segments | ERCOT | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 106 | (1,036) |
Operating Segments | Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 297 | 250 |
Operating Segments | Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 1,957 | 718 |
Operating Segments | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 84 | 231 |
Unrealized mark-to-market gains (losses) | (92) | 175 |
Nuclear Fuel Amortization | 54 | |
Operating Segments | Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
RNF from external customers | 2,041 | 949 |
Intersegment Revenues | Mid-Atlantic | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | (1) | 5 |
Intersegment Revenues | Midwest | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | 0 | 0 |
Intersegment Revenues | New York | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | 8 | 2 |
Intersegment Revenues | ERCOT | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | (27) | (148) |
Intersegment Revenues | Other Power Regions | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | (10) | (33) |
Intersegment Revenues | Total Competitive Businesses Electric Revenues | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | (30) | (174) |
Intersegment Revenues | Competitive Businesses Natural Gas Revenues | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | 30 | 174 |
Intersegment Revenues | Total Consolidated Operating Revenues | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue Net Of Purchase Power And Fuel | $ 0 | $ 0 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Apr. 08, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unbilled customer revenues | $ 360 | $ 373 | ||
Credit facility | $ 5,702 | $ 4,500 | ||
Sale of Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit facility | $ 900 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Plus: Current period provision for expected credit losses | $ 0 | $ 34 |
Customer accounts receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 55 | 32 |
Plus: Current period provision for expected credit losses | 0 | 34 |
Less: Write-offs, net of recoveries | 5 | 1 |
Ending balance | $ 50 | $ 65 |
Accounts Receivable - Purchases
Accounts Receivable - Purchases and Sales of Accounts Receivable (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Cash proceeds received | $ 400 | ||
Loss on sale of receivables | $ (10) | (17) | |
Proceeds from new transfers | 1,654 | 1,036 | |
Cash collections received on DPP and reinvested in the Facility | 853 | 1,174 | |
Cash collections reinvested in the Facility | 2,507 | 2,210 | |
Total receivables sold | 69 | 81 | |
Exelon Utility Registrants Affiliates | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables sold to Exelon's utility subsidiaries prior to the separation on February 1, 2022 | 4 | 12 | |
Sale of Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Derecognized receivables transferred at fair value | 1,321 | $ 1,265 | |
Cash proceeds received | 900 | 900 | |
DPP | 421 | $ 365 | |
Customer accounts receivable sold into the Facility | $ 2,572 | $ 2,375 |
Early Plant Retirements - Preta
Early Plant Retirements - Pretax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Depreciation and amortization | $ 280 | $ 940 |
Constellation New England | ||
Depreciation and amortization | 20 | |
Facility Closing | Byron Dresden | ||
Accelerated depreciation | 620 | |
Accelerated nuclear fuel amortization | 54 | |
Other charges | 2 | |
Contractual offset | (226) | |
Total | $ 450 |
Nuclear Decommissioning - Narra
Nuclear Decommissioning - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligations [Line Items] | ||
Nuclear decommissioning trust funds | $ 15,272 | $ 15,938 |
Nuclear Decommissioning | ||
Asset Retirement Obligations [Line Items] | ||
Net increase due to changes in, and timing of, estimated future cash flows | 335 | |
Net increase due to revisions to projected decommission schedule | 320 | |
Net increase due to higher estimated decommissioning costs | 95 | |
Net decrease due to an increase in discount rates | (80) | |
Nine Mile Point | ||
Asset Retirement Obligations [Line Items] | ||
Nuclear decommissioning trust funds | 15 | |
Assets, Total | ||
Asset Retirement Obligations [Line Items] | ||
Nuclear decommissioning trust funds | 15,462 | 16,064 |
Other Current Assets | ||
Asset Retirement Obligations [Line Items] | ||
Nuclear decommissioning trust funds | $ 190 | $ 126 |
Nuclear Decommissioning - Nucle
Nuclear Decommissioning - Nuclear Decommissioning Asset Retirement Obligation Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Accretion expense | $ 132 | $ 127 | |
Nuclear Decommissioning | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
ARO beginning balance | 12,676 | ||
Net increase due to changes in, and timing of, estimated future cash flows | 335 | ||
Accretion expense | 129 | ||
Costs incurred related to decommissioning plants | (17) | ||
ARO ending balance | 13,123 | ||
Current portion of ARO | $ 61 | $ 72 |
Nuclear Decommissioning - Noncu
Nuclear Decommissioning - Noncurrent Related Party Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Asset Retirement Obligations [Line Items] | ||
Payables to affiliates | $ 0 | $ 3,357 |
ComEd | ||
Asset Retirement Obligations [Line Items] | ||
Payables to affiliates | 2,484 | 2,760 |
PECO | ||
Asset Retirement Obligations [Line Items] | ||
Payables to affiliates | $ 485 | $ 597 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to Effective Tax Rate (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory rate | 21.00% | 21.00% |
Increase (decrease) due to: | ||
State income taxes, net of federal income tax benefit | 55.20% | 4.40% |
Qualified NDT fund income | (127.50%) | (5.50%) |
Amortization of investment tax credit, including deferred taxes on basis differences | (9.20%) | 0.60% |
Production tax credits and other credits | (34.80%) | 1.80% |
Noncontrolling interests | (1.00%) | 0.20% |
Other | 9.40% | (3.60%) |
Effective income tax rate | (86.90%) | 18.90% |
Income Taxes - Recognition of U
Income Taxes - Recognition of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | $ 17 | $ 39 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Income Taxes [Line Items] | ||
Deferred income taxes and unamortized investment tax credits | $ 3,247 | $ 3,703 |
Other accounts receivable (net of allowance for credit losses of $5 as of March 31, 2022 and December 31, 2021) | 334 | 592 |
Other deferred debits and other assets | 2,152 | $ 1,717 |
Separation from Parent | ||
Income Taxes [Line Items] | ||
Payable for tax liabilities upon separation | 103 | |
Deferred income taxes and unamortized investment tax credits | 508 | |
Other accounts receivable (net of allowance for credit losses of $5 as of March 31, 2022 and December 31, 2021) | 11 | |
Other deferred debits and other assets | 497 | |
Separation from Parent | Accounts Payable | ||
Income Taxes [Line Items] | ||
Payable for tax liabilities upon separation | 53 | |
Separation from Parent | Other Noncurrent Liabilities | ||
Income Taxes [Line Items] | ||
Payable for tax liabilities upon separation | $ 50 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | Feb. 01, 2022 | Feb. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Defined Contribution Plan Disclosure [Line Items] | |||||
Actuarial losses and prior service costs | $ 2,006 | ||||
Matching contributions to savings plan | $ 13 | $ 13 | |||
Nonqualified Plan | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Planned contributions | 9 | ||||
Pension Benefits | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Pension obligations | 953 | 722 | $ 0 | ||
Pension plan assets | 8,267 | ||||
Annual qualified pension contribution | $ 192 | ||||
Planned contributions | 0 | ||||
OPEB | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Pension obligations | 876 | 0 | $ 0 | ||
Pension plan assets | $ 904 | ||||
Planned contributions | 27 | ||||
Nonqualified Plan and Other Postretirement Benefits Plans | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Benefit payments | $ 6 |
Retirement Benefits - Benefit O
Retirement Benefits - Benefit Obligations Net of Plan Assets, Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Feb. 01, 2022 | Dec. 31, 2021 |
Defined Contribution Plan Disclosure [Line Items] | |||
Prepaid pension asset | $ 0 | $ 1,683 | |
Pension Benefits | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Prepaid pension asset | 0 | 1,683 | |
Other current liabilities | (10) | 0 | |
Pension obligations | (722) | $ (953) | 0 |
Non-pension postretirement benefit obligations | 0 | 0 | |
(Unfunded) funded status (net benefit obligation less plan assets) | (732) | 1,683 | |
OPEB | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Prepaid pension asset | 0 | 0 | |
Other current liabilities | (17) | 0 | |
Pension obligations | 0 | $ (876) | 0 |
Non-pension postretirement benefit obligations | (860) | (847) | |
(Unfunded) funded status (net benefit obligation less plan assets) | $ (877) | $ (847) |
Retirement Benefits - Assumptio
Retirement Benefits - Assumptions (Details) | Feb. 01, 2022 |
Pension Benefits | |
Defined Contribution Plan Disclosure [Line Items] | |
Discount rate | 3.23% |
Investment crediting rate | 3.86% |
Expected return on plan assets | 0.0700 |
Rate of compensation increase | 3.75% |
OPEB | |
Defined Contribution Plan Disclosure [Line Items] | |
Discount rate | 3.21% |
Expected return on plan assets | 0.0650 |
Rate of compensation increase | 3.75% |
Healthcare cost trend on covered charges | 5.00% |
Retirement Benefits - Net Benef
Retirement Benefits - Net Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Benefits | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Service cost | $ 33 | $ 36 |
Interest cost | 70 | 59 |
Expected return on assets | (137) | (123) |
Prior service cost (credit) | 0 | 0 |
Actuarial loss | 38 | 50 |
Net periodic benefit cost | 4 | 22 |
Non-service costs | (14) | |
OPEB | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Service cost | 6 | 7 |
Interest cost | 13 | 11 |
Expected return on assets | (14) | (15) |
Prior service cost (credit) | (2) | (2) |
Actuarial loss | 0 | 3 |
Net periodic benefit cost | $ 3 | 4 |
Non-service costs | $ (3) |
Retirement Benefits - Remaining
Retirement Benefits - Remaining Service Period (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Pension Benefits | |
Defined Contribution Plan Disclosure [Line Items] | |
Pension plans | 12 years 2 months 12 days |
OPEB | |
Defined Contribution Plan Disclosure [Line Items] | |
Benefit Eligibility Age | 7 years 6 months |
Expected Retirement | 8 years 3 months 18 days |
Retirement Benefits - Estimated
Retirement Benefits - Estimated Future Benefit Payments (Details) $ in Millions | Mar. 31, 2022USD ($) |
Pension Benefits | |
Defined Contribution Plan Disclosure [Line Items] | |
2022 | $ 532 |
2023 | 521 |
2024 | 524 |
2025 | 536 |
2026 | 533 |
2027 through 2031 | 2,710 |
Total estimated future benefits payments through 2031 | 5,356 |
OPEB | |
Defined Contribution Plan Disclosure [Line Items] | |
2022 | 108 |
2023 | 108 |
2024 | 108 |
2025 | 107 |
2026 | 107 |
2027 through 2031 | 540 |
Total estimated future benefits payments through 2031 | $ 1,078 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivative Fair Value Balances (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Mark-to-market derivative assets (current assets) | $ 1,775 | $ 2,169 |
Mark-to-market derivative assets (noncurrent assets) | 565 | 949 |
Mark-to-market derivative liabilities (current liabilities) | (1,469) | (981) |
Mark-to-market derivative liabilities (noncurrent liabilities) | (773) | (513) |
Variation margin | 1,400 | 897 |
Commodity Contract | ||
Derivative [Line Items] | ||
Mark-to-market derivative assets (current assets) | 1,771 | 2,169 |
Mark-to-market derivative assets (noncurrent assets) | 549 | 943 |
Total mark-to-market derivative assets | 2,320 | 3,112 |
Mark-to-market derivative liabilities (current liabilities) | (1,468) | (977) |
Mark-to-market derivative liabilities (noncurrent liabilities) | (772) | (513) |
Total mark-to-market derivative liabilities | (2,240) | (1,490) |
Total mark-to-market derivative net assets (liabilities) | 80 | 1,622 |
Commodity Contract | Collateral | ||
Derivative [Line Items] | ||
Mark-to-market derivative assets (current assets) | (264) | 152 |
Mark-to-market derivative assets (noncurrent assets) | (178) | 15 |
Total mark-to-market derivative assets | (442) | 167 |
Mark-to-market derivative liabilities (current liabilities) | (163) | 262 |
Mark-to-market derivative liabilities (noncurrent liabilities) | (70) | 83 |
Total mark-to-market derivative liabilities | (233) | 345 |
Total mark-to-market derivative net assets (liabilities) | (675) | 512 |
Commodity Contract | Netting | ||
Derivative [Line Items] | ||
Mark-to-market derivative assets (current assets) | (19,882) | (8,923) |
Mark-to-market derivative assets (noncurrent assets) | (3,111) | (2,298) |
Total mark-to-market derivative assets | (22,993) | (11,221) |
Mark-to-market derivative liabilities (current liabilities) | 19,882 | 8,923 |
Mark-to-market derivative liabilities (noncurrent liabilities) | 3,111 | 2,298 |
Total mark-to-market derivative liabilities | 22,993 | 11,221 |
Total mark-to-market derivative net assets (liabilities) | 0 | 0 |
Commodity Contract | Not Designated as Hedging Instrument, Economic Hedge | ||
Derivative [Line Items] | ||
Mark-to-market derivative assets (current assets) | 21,878 | 10,915 |
Mark-to-market derivative assets (noncurrent assets) | 3,836 | 3,224 |
Total mark-to-market derivative assets | 25,714 | 14,139 |
Mark-to-market derivative liabilities (current liabilities) | (21,154) | (10,143) |
Mark-to-market derivative liabilities (noncurrent liabilities) | (3,813) | (2,893) |
Total mark-to-market derivative liabilities | (24,967) | (13,036) |
Total mark-to-market derivative net assets (liabilities) | 747 | 1,103 |
Commodity Contract | Not Designated as Hedging Instrument, Propriety Trading | ||
Derivative [Line Items] | ||
Mark-to-market derivative assets (current assets) | 39 | 25 |
Mark-to-market derivative assets (noncurrent assets) | 2 | 2 |
Total mark-to-market derivative assets | 41 | 27 |
Mark-to-market derivative liabilities (current liabilities) | (33) | (19) |
Mark-to-market derivative liabilities (noncurrent liabilities) | 0 | (1) |
Total mark-to-market derivative liabilities | (33) | (20) |
Total mark-to-market derivative net assets (liabilities) | $ 8 | $ 7 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Economic Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Total | $ (75) | $ 178 |
Not Designated as Hedging Instrument, Economic Hedge | Commodity Contract | ||
Derivative [Line Items] | ||
Total | (93) | 182 |
Not Designated as Hedging Instrument, Economic Hedge | Commodity Contract | Operating revenues | ||
Derivative [Line Items] | ||
Total | (919) | (83) |
Not Designated as Hedging Instrument, Economic Hedge | Commodity Contract | Purchased power and fuel | ||
Derivative [Line Items] | ||
Total | $ 826 | $ 265 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Not Designated as Hedging Instrument, Economic Hedge | Interest Rate Swap | ||
Derivative [Line Items] | ||
Notational amount | $ 479 | $ 486 |
Minimum | ||
Derivative [Line Items] | ||
Expected generation hedged in next twelve months | 97.00% | |
Expected generation hedged in year two | 86.00% | |
Maximum | ||
Derivative [Line Items] | ||
Expected generation hedged in next twelve months | 100.00% | |
Expected generation hedged in year two | 89.00% |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Credit Risk Exposure (Details) counterparty in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)counterparty | |
Derivative [Line Items] | |
Cash collateral | $ 131 |
Letters of credit held | 37 |
Total Exposure Before Credit Collateral | |
Derivative [Line Items] | |
Total | 1,236 |
Total Exposure Before Credit Collateral | Internally rated — investment grade | |
Derivative [Line Items] | |
Total | 71 |
Total Exposure Before Credit Collateral | Internally rated — non-investment grade | |
Derivative [Line Items] | |
Total | 220 |
Total Exposure Before Credit Collateral | Investment grade | |
Derivative [Line Items] | |
Total | 927 |
Total Exposure Before Credit Collateral | Non-investment grade | |
Derivative [Line Items] | |
Total | 18 |
Credit Collateral | |
Derivative [Line Items] | |
Total | 168 |
Credit Collateral | Internally rated — investment grade | |
Derivative [Line Items] | |
Total | 0 |
Credit Collateral | Internally rated — non-investment grade | |
Derivative [Line Items] | |
Total | 45 |
Credit Collateral | Investment grade | |
Derivative [Line Items] | |
Total | 123 |
Credit Collateral | Non-investment grade | |
Derivative [Line Items] | |
Total | 0 |
Net Exposure | |
Derivative [Line Items] | |
Total | 1,068 |
Net Exposure | Financial institutions | |
Derivative [Line Items] | |
Total | 25 |
Net Exposure | Investor-owned utilities, marketers, power producers | |
Derivative [Line Items] | |
Total | 900 |
Net Exposure | Energy cooperatives and municipalities | |
Derivative [Line Items] | |
Total | 55 |
Net Exposure | Other | |
Derivative [Line Items] | |
Total | 88 |
Net Exposure | Internally rated — investment grade | |
Derivative [Line Items] | |
Total | 71 |
Net Exposure | Internally rated — non-investment grade | |
Derivative [Line Items] | |
Total | 175 |
Net Exposure | Investment grade | |
Derivative [Line Items] | |
Total | 804 |
Net Exposure | Non-investment grade | |
Derivative [Line Items] | |
Total | $ 18 |
Number of Counterparties Greater than 10% of Net Exposure | |
Derivative [Line Items] | |
Number of counterparties | counterparty | 0 |
Number of Counterparties Greater than 10% of Net Exposure | Internally rated — investment grade | |
Derivative [Line Items] | |
Number of counterparties | counterparty | 0 |
Number of Counterparties Greater than 10% of Net Exposure | Internally rated — non-investment grade | |
Derivative [Line Items] | |
Number of counterparties | counterparty | 0 |
Number of Counterparties Greater than 10% of Net Exposure | Investment grade | |
Derivative [Line Items] | |
Number of counterparties | counterparty | 0 |
Number of Counterparties Greater than 10% of Net Exposure | Non-investment grade | |
Derivative [Line Items] | |
Number of counterparties | counterparty | 0 |
Net Exposure of Counterparties Greater than 10% of Net Exposure | |
Derivative [Line Items] | |
Total | $ 0 |
Net Exposure of Counterparties Greater than 10% of Net Exposure | Internally rated — investment grade | |
Derivative [Line Items] | |
Total | 0 |
Net Exposure of Counterparties Greater than 10% of Net Exposure | Internally rated — non-investment grade | |
Derivative [Line Items] | |
Total | 0 |
Net Exposure of Counterparties Greater than 10% of Net Exposure | Investment grade | |
Derivative [Line Items] | |
Total | 0 |
Net Exposure of Counterparties Greater than 10% of Net Exposure | Non-investment grade | |
Derivative [Line Items] | |
Total | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Credit Risk Related Contingent Features (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross fair value of derivative contracts containing this feature | $ (5,416) | $ (3,872) |
Offsetting fair value of in-the-money contracts under master netting arrangements | 3,111 | 2,424 |
Net fair value of derivative contracts containing this feature | $ (2,305) | $ (1,448) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Summary of Cash Collateral and Letters of Credit (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash collateral posted | $ 430 | $ 713 |
Letters of credit posted | 682 | 755 |
Cash collateral held | 1,068 | 182 |
Letters of credit held | 41 | 124 |
Additional collateral required in the event of a credit downgrade below investment grade | $ 2,838 | $ 2,113 |
Debt and Credit Agreements - Co
Debt and Credit Agreements - Commercial Paper Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Outstanding Commercial Paper as of | $ 0 | $ 702 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Average Interest Rate on Commercial Paper Borrowings as of | 0.00% | 0.66% |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - USD ($) $ in Millions | Mar. 29, 2022 | Feb. 01, 2022 | Jan. 31, 2022 | Aug. 06, 2021 | Mar. 19, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 05, 2022 | Feb. 09, 2022 | Dec. 31, 2021 | Mar. 31, 2020 | |
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Syndicated credit facility | $ 0 | |||||||||||
Credit facility | $ 4,500 | 5,702 | ||||||||||
Short term loan agreement | 200 | 1,080 | $ 2,082 | |||||||||
Repayments of loan | 1,058 | $ 35 | ||||||||||
Membership interest | [1] | 0 | 11,250 | |||||||||
Exelon Corporate | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Notes payable to related parties | $ 319 | |||||||||||
Repayments of related party debt | 258 | |||||||||||
Revolving Credit Facility | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Syndicated credit facility | $ 5,300 | 0 | ||||||||||
Credit facility | $ 3,500 | 3,500 | ||||||||||
Liquidity Facility | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Syndicated credit facility | 0 | |||||||||||
Credit facility | $ 971 | $ 1,000 | ||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Basis spread | 1.275% | |||||||||||
Term Loan | Unsecured Debt | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Short term loan agreement | $ 200 | $ 880 | $ 200 | $ 300 | ||||||||
Repayments of short-term debt | $ 100 | |||||||||||
Debt instrument term | 364 days | |||||||||||
Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Unsecured Debt | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Basis spread | 0.80% | |||||||||||
Term Loan | London Interbank Offered Rate (LIBOR) | Unsecured Debt | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Basis spread | 0.875% | 0.875% | ||||||||||
Term Loan | London Interbank Offered Rate (LIBOR) | Forecast | Unsecured Debt | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Basis spread | 1.00% | |||||||||||
Related Party Debt | ||||||||||||
Schedule of line of credit, short term, and long term debt [Line Items] | ||||||||||||
Membership interest | $ 61 | |||||||||||
[1] | Represents Constellation’s predecessor member's equity prior to the separation transaction. Upon completion of the separation, the predecessor member's equity was transferred to CEG Parent’s Common stock. See Note 1 — Basis of Presentation for additional information on the separation. |
Debt and Credit Agreements - Su
Debt and Credit Agreements - Summary of Bank Commitments, Credit Facility Borrowings and Available Capacity (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Feb. 09, 2022 | Feb. 01, 2022 | Jan. 31, 2022 |
Short-term Debt [Line Items] | ||||
Aggregate Bank Commitment | $ 5,702 | $ 4,500 | ||
Facility Draws | 0 | |||
Outstanding Letters of Credit | 2,352 | |||
Actual Available Capacity | 3,350 | |||
To Support Additional Commercial Paper Available Capacity | 2,627 | |||
Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Aggregate Bank Commitment | 3,500 | $ 3,500 | ||
Facility Draws | 0 | $ 5,300 | ||
Outstanding Letters of Credit | 873 | |||
Actual Available Capacity | 2,627 | |||
To Support Additional Commercial Paper Available Capacity | 2,627 | |||
Revolving Credit Facility | Community and Minority Facilities | ||||
Short-term Debt [Line Items] | ||||
Credit facility agreements with minority and community banks | 44 | |||
Revolving Credit Facility | Letter of credit | Community and Minority Facilities | ||||
Short-term Debt [Line Items] | ||||
Credit facility agreements with minority and community banks | 5 | |||
Bilateral Credit Agreements | ||||
Short-term Debt [Line Items] | ||||
Aggregate Bank Commitment | 1,100 | |||
Facility Draws | 0 | |||
Outstanding Letters of Credit | 751 | |||
Actual Available Capacity | 349 | |||
To Support Additional Commercial Paper Available Capacity | 0 | |||
Liquidity Facility | ||||
Short-term Debt [Line Items] | ||||
Aggregate Bank Commitment | 971 | $ 1,000 | ||
Facility Draws | 0 | |||
Outstanding Letters of Credit | 615 | |||
Actual Available Capacity | 356 | |||
To Support Additional Commercial Paper Available Capacity | 0 | |||
Secured debt | ||||
Short-term Debt [Line Items] | ||||
Aggregate Bank Commitment | 131 | |||
Facility Draws | 0 | |||
Outstanding Letters of Credit | 113 | |||
Actual Available Capacity | 18 | |||
To Support Additional Commercial Paper Available Capacity | $ 0 |
Debt and Credit Agreements - _2
Debt and Credit Agreements - Summary of Outstanding Long-term Debt (Details) $ in Millions | Mar. 31, 2022USD ($) |
Energy Efficiency Project Financing | |
Debt Instrument [Line Items] | |
Amount | $ 2 |
Minimum | Energy Efficiency Project Financing | |
Debt Instrument [Line Items] | |
Interest Rate | 2.20% |
Maximum | Energy Efficiency Project Financing | |
Debt Instrument [Line Items] | |
Interest Rate | 2.44% |
Senior Notes | Senior Notes, Due March 2022 | |
Debt Instrument [Line Items] | |
Interest Rate | 3.40% |
Amount | $ 500 |
Senior Notes | Senior Notes, Due June 2022 | |
Debt Instrument [Line Items] | |
Interest Rate | 4.25% |
Amount | $ 523 |
Nonrecourse Debt | Continental Wind Nonrecourse Debt | |
Debt Instrument [Line Items] | |
Interest Rate | 6.00% |
Amount | $ 20 |
Nonrecourse Debt | Antelope Valley DOE | |
Debt Instrument [Line Items] | |
Amount | $ 6 |
Nonrecourse Debt | West Medway II | |
Debt Instrument [Line Items] | |
Interest Rate | 2.875% |
Amount | $ 6 |
Nonrecourse Debt | RPG Nonrecourse Debt | |
Debt Instrument [Line Items] | |
Interest Rate | 4.11% |
Amount | $ 3 |
Nonrecourse Debt | Minimum | Antelope Valley DOE | |
Debt Instrument [Line Items] | |
Interest Rate | 2.29% |
Nonrecourse Debt | Maximum | Antelope Valley DOE | |
Debt Instrument [Line Items] | |
Interest Rate | 3.56% |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Fair Value of Financial Liabilities Recorded at Amortized Cost (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
SNF Obligation | $ 1,210 | $ 1,210 |
Carrying Amount | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-Term Debt, including amounts due within one year | 4,739 | 6,114 |
SNF Obligation | 1,210 | 1,210 |
Fair Value | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-Term Debt, including amounts due within one year | 5,031 | 6,842 |
SNF Obligation | 978 | 1,060 |
Fair Value | Level 2 | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-Term Debt, including amounts due within one year | 4,009 | 5,749 |
SNF Obligation | 978 | 1,060 |
Fair Value | Level 3 | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-Term Debt, including amounts due within one year | 1,022 | 1,093 |
SNF Obligation | $ 0 | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Fair Value Measurement of Assets and Liabilities, Recurring (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Net derivative assets | $ 1 | $ 1 |
Total notational amounts | 461 | 687 |
Unrealized gains (losses) | (20) | (160) |
Variation margin | 1,400 | 897 |
Cash and Cash Equivalents | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 710 | 417 |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 710 | 417 |
Restricted cash | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 46 | |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 46 | |
Restricted cash | Constellation Energy Generation, LLC | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 62 | |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 62 | |
Restricted cash | CEG Parent | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 12 | |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 12 | |
NDT fund investments subtotal | Maturity Less than 30 Days | ||
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash | 110 | 116 |
NDT fund investments subtotal | ||
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Investments in equities sold short | 53 | 55 |
Net liabilities | 92 | 111 |
Notational amount | 231 | 182 |
Fair Value, Recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 912 | 113 |
DPP | 421 | 365 |
Total assets | 19,299 | 19,880 |
Deferred compensation obligation | (59) | (43) |
Total liabilities | (2,299) | (1,533) |
Total net assets (liabilities) | 17,000 | 18,347 |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 912 | 113 |
Fair Value, Recurring | Commodity derivative liabilities subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (2,240) | (1,490) |
Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (24,967) | (13,036) |
Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (33) | (20) |
Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 22,760 | 11,566 |
Fair Value, Recurring | NDT fund investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 15,554 | 16,175 |
Fair Value, Recurring | Cash equivalents NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 993 | 581 |
Fair Value, Recurring | Equities NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 7,157 | 8,014 |
Fair Value, Recurring | Fixed income subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 5,028 | 5,241 |
Fair Value, Recurring | Corporate debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,355 | 1,431 |
Fair Value, Recurring | U.S. Treasury and agencies | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 2,158 | 2,223 |
Fair Value, Recurring | Foreign governments | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 46 | 60 |
Fair Value, Recurring | State and municipal debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 24 | 26 |
Fair Value, Recurring | Other | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,445 | 1,501 |
Fair Value, Recurring | Private credit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 795 | 802 |
Fair Value, Recurring | Private equity | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 696 | 673 |
Fair Value, Recurring | Real estate | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 885 | 864 |
Fair Value, Recurring | Rabbi trust investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 79 | 72 |
Fair Value, Recurring | Cash equivalents | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1 | 3 |
Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 44 | 36 |
Fair Value, Recurring | Life insurance contracts | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 34 | 33 |
Fair Value, Recurring | Investments in equities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 13 | 43 |
Fair Value, Recurring | Commodity derivative assets subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 2,320 | 3,112 |
Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 25,714 | 14,139 |
Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 41 | 27 |
Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | (23,435) | (11,054) |
Level 1 | ||
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Collateral posted (received) from counterparties | 216 | 81 |
Level 1 | Fair Value, Recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 912 | 113 |
DPP | 0 | 0 |
Total assets | 9,463 | 8,355 |
Deferred compensation obligation | 0 | 0 |
Total liabilities | (74) | (12) |
Total net assets (liabilities) | 9,389 | 8,343 |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 912 | 113 |
Level 1 | Fair Value, Recurring | Commodity derivative liabilities subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (74) | (12) |
Level 1 | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (4,054) | (2,201) |
Level 1 | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 0 | 0 |
Level 1 | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 3,980 | 2,189 |
Level 1 | Fair Value, Recurring | NDT fund investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 7,099 | 7,251 |
Level 1 | Fair Value, Recurring | Cash equivalents NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 898 | 465 |
Level 1 | Fair Value, Recurring | Equities NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 4,033 | 4,564 |
Level 1 | Fair Value, Recurring | Fixed income subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 2,168 | 2,222 |
Level 1 | Fair Value, Recurring | Corporate debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 1 | Fair Value, Recurring | U.S. Treasury and agencies | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 2,139 | 2,193 |
Level 1 | Fair Value, Recurring | Foreign governments | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 1 | Fair Value, Recurring | State and municipal debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 1 | Fair Value, Recurring | Other | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 29 | 29 |
Level 1 | Fair Value, Recurring | Private credit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 1 | Fair Value, Recurring | Private equity | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 1 | Fair Value, Recurring | Real estate | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 1 | Fair Value, Recurring | Rabbi trust investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 45 | 39 |
Level 1 | Fair Value, Recurring | Cash equivalents | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1 | 3 |
Level 1 | Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 44 | 36 |
Level 1 | Fair Value, Recurring | Life insurance contracts | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 1 | Fair Value, Recurring | Investments in equities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 13 | 43 |
Level 1 | Fair Value, Recurring | Commodity derivative assets subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 1,394 | 909 |
Level 1 | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 5,158 | 3,017 |
Level 1 | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 0 | 0 |
Level 1 | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | (3,764) | (2,108) |
Level 2 | ||
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Collateral posted (received) from counterparties | (595) | 465 |
Level 2 | Fair Value, Recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 0 | 0 |
DPP | 421 | 365 |
Total assets | 3,694 | 4,668 |
Deferred compensation obligation | (59) | (43) |
Total liabilities | (322) | (289) |
Total net assets (liabilities) | 3,372 | 4,379 |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 0 | 0 |
Level 2 | Fair Value, Recurring | Commodity derivative liabilities subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (263) | (246) |
Level 2 | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (14,280) | (6,870) |
Level 2 | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (31) | (18) |
Level 2 | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 14,048 | 6,642 |
Level 2 | Fair Value, Recurring | NDT fund investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 2,941 | 3,205 |
Level 2 | Fair Value, Recurring | Cash equivalents NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 95 | 116 |
Level 2 | Fair Value, Recurring | Equities NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,655 | 1,805 |
Level 2 | Fair Value, Recurring | Fixed income subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,191 | 1,284 |
Level 2 | Fair Value, Recurring | Corporate debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,077 | 1,145 |
Level 2 | Fair Value, Recurring | U.S. Treasury and agencies | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 19 | 30 |
Level 2 | Fair Value, Recurring | Foreign governments | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 46 | 60 |
Level 2 | Fair Value, Recurring | State and municipal debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 24 | 26 |
Level 2 | Fair Value, Recurring | Other | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 25 | 23 |
Level 2 | Fair Value, Recurring | Private credit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 2 | Fair Value, Recurring | Private equity | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 2 | Fair Value, Recurring | Real estate | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 2 | Fair Value, Recurring | Rabbi trust investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 31 | 33 |
Level 2 | Fair Value, Recurring | Cash equivalents | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 2 | Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 2 | Fair Value, Recurring | Life insurance contracts | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 31 | 33 |
Level 2 | Fair Value, Recurring | Investments in equities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 2 | Fair Value, Recurring | Commodity derivative assets subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 301 | 1,065 |
Level 2 | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 14,913 | 7,223 |
Level 2 | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 31 | 19 |
Level 2 | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | (14,643) | (6,177) |
Level 3 | ||
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Collateral posted (received) from counterparties | (296) | (34) |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 0 | 0 |
DPP | 0 | 0 |
Total assets | 1,090 | 1,602 |
Deferred compensation obligation | 0 | 0 |
Total liabilities | (1,903) | (1,232) |
Total net assets (liabilities) | (813) | 370 |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Commodity derivative liabilities subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (1,903) | (1,232) |
Level 3 | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (6,633) | (3,965) |
Level 3 | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | (2) | (2) |
Level 3 | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 4,732 | 2,735 |
Level 3 | Fair Value, Recurring | NDT fund investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 462 | 464 |
Level 3 | Fair Value, Recurring | Cash equivalents NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Equities NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1 | 0 |
Level 3 | Fair Value, Recurring | Fixed income subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 278 | 286 |
Level 3 | Fair Value, Recurring | Corporate debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 278 | 286 |
Level 3 | Fair Value, Recurring | U.S. Treasury and agencies | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Foreign governments | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | State and municipal debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Other | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Private credit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 183 | 178 |
Level 3 | Fair Value, Recurring | Private equity | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Real estate | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Rabbi trust investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 3 | 0 |
Level 3 | Fair Value, Recurring | Cash equivalents | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Life insurance contracts | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 3 | 0 |
Level 3 | Fair Value, Recurring | Investments in equities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Level 3 | Fair Value, Recurring | Commodity derivative assets subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 625 | 1,138 |
Level 3 | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 5,643 | 3,899 |
Level 3 | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 10 | 8 |
Level 3 | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | (5,028) | (2,769) |
Not subject to leveling | Fair Value, Recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 0 | 0 |
DPP | 0 | 0 |
Total assets | 5,052 | 5,255 |
Deferred compensation obligation | 0 | 0 |
Total liabilities | 0 | 0 |
Total net assets (liabilities) | 5,052 | 5,255 |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | ||
Cash equivalents, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Commodity derivative liabilities subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity derivative liabilities | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | NDT fund investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 5,052 | 5,255 |
Not subject to leveling | Fair Value, Recurring | Cash equivalents NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Equities NDT | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,468 | 1,645 |
Not subject to leveling | Fair Value, Recurring | Fixed income subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,391 | 1,449 |
Not subject to leveling | Fair Value, Recurring | Corporate debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | U.S. Treasury and agencies | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Foreign governments | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | State and municipal debt | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Other | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 1,391 | 1,449 |
Not subject to leveling | Fair Value, Recurring | Private credit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 612 | 624 |
Not subject to leveling | Fair Value, Recurring | Private equity | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 696 | 673 |
Not subject to leveling | Fair Value, Recurring | Real estate | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 885 | 864 |
Not subject to leveling | Fair Value, Recurring | Rabbi trust investments subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Cash equivalents | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Life insurance contracts | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Investments in equities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Investments, fair value disclosure | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Commodity derivative assets subtotal | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Economic hedges | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Proprietary trading | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | 0 | 0 |
Not subject to leveling | Fair Value, Recurring | Effect of netting and allocation of collateral | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Derivative asset | $ 0 | $ 0 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments without determinable fair values | $ 54 | $ 33 |
Private credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding commitments | 301 | |
Private equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding commitments | 163 | |
Real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding commitments | $ 430 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Fair Value Reconciliation of Level 3 Assets and Liabilities Measured on a Recurring Basis (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Beginning Balance | $ 370 | $ 927 |
Total realized / unrealized gains (losses) | ||
Included in net income | (1,011) | (277) |
Included in Payable related to Regulatory Agreement Units | (2) | 1 |
Change in collateral | (262) | (57) |
Impacts of separation | (3) | |
Purchases, sales, issuances and settlements | ||
Purchases | 49 | 109 |
Sales | (26) | 1 |
Settlements | 0 | (20) |
Transfers into Level 3 | 101 | 0 |
Transfers out of Level 3 | (35) | 2 |
Ending Balance | (813) | 686 |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities | (1,019) | (148) |
NDT fund investments subtotal | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Beginning Balance | 464 | 497 |
Total realized / unrealized gains (losses) | ||
Included in net income | 0 | 1 |
Included in Payable related to Regulatory Agreement Units | (2) | 1 |
Change in collateral | 0 | 0 |
Impacts of separation | 0 | |
Purchases, sales, issuances and settlements | ||
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | (20) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | 462 | 479 |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities | 0 | 1 |
Mark-to-Market Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Beginning Balance | (94) | 430 |
Total realized / unrealized gains (losses) | ||
Included in net income | (1,011) | (278) |
Included in Payable related to Regulatory Agreement Units | 0 | 0 |
Change in collateral | (262) | (57) |
Impacts of separation | 0 | |
Purchases, sales, issuances and settlements | ||
Purchases | 49 | 109 |
Sales | (26) | 1 |
Settlements | 0 | 0 |
Transfers into Level 3 | 101 | 0 |
Transfers out of Level 3 | (35) | 2 |
Ending Balance | (1,278) | 207 |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities | (1,019) | (149) |
Footnotes To Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Abstract] | ||
Realized gains (losses) | (8) | $ 129 |
Life insurance contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Beginning Balance | 0 | |
Total realized / unrealized gains (losses) | ||
Included in net income | 0 | |
Included in Payable related to Regulatory Agreement Units | 0 | |
Change in collateral | 0 | |
Impacts of separation | (3) | |
Purchases, sales, issuances and settlements | ||
Purchases | 0 | |
Sales | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending Balance | 3 | |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities | $ 0 |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities - Fair Value Assets and Liabilities Measure on a Recurring Basis Gain Loss Included in Earnings (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Assets and Liabilities Measured on a Recurring Basis Gain Loss Included in Earnings [Line Items] | ||
Total (losses) gains included in net income | $ 1,011 | $ 277 |
Total unrealized (losses) gains | (1,019) | (148) |
Operating revenues | ||
Fair Value Assets and Liabilities Measured on a Recurring Basis Gain Loss Included in Earnings [Line Items] | ||
Total (losses) gains included in net income | (1,021) | (116) |
Total unrealized (losses) gains | (1,221) | (65) |
Purchased power and fuel | ||
Fair Value Assets and Liabilities Measured on a Recurring Basis Gain Loss Included in Earnings [Line Items] | ||
Total (losses) gains included in net income | 10 | (162) |
Total unrealized (losses) gains | 202 | (84) |
Other, net | ||
Fair Value Assets and Liabilities Measured on a Recurring Basis Gain Loss Included in Earnings [Line Items] | ||
Total (losses) gains included in net income | 0 | 1 |
Total unrealized (losses) gains | $ 0 | $ 1 |
Fair Value of Financial Asset_8
Fair Value of Financial Assets and Liabilities - Fair Value Inputs Assets Quantitative Information (Details) - Level 3 $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Cash collateral received | $ 296 | $ 34 |
Economic Hedges | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Mark-to-market derivatives—Economic hedges | $ (990) | $ (66) |
Economic Hedges | Minimum | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Forward power price | 8.76 | 8.86 |
Forward gas price | 1.93 | 1.69 |
Economic Hedges | Minimum | Option Model | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Volatility percentage | 0.21 | 0.24 |
Economic Hedges | Maximum | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Forward power price | 318 | 481 |
Forward gas price | 29 | 17 |
Economic Hedges | Maximum | Option Model | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Volatility percentage | 1.78 | 2.84 |
Economic Hedges | Average | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Forward power price | 73 | 55 |
Forward gas price | 4.45 | 3.50 |
Economic Hedges | Average | Option Model | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Volatility percentage | 0.64 | 0.56 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commercial Commitments (Details) $ in Millions | Mar. 31, 2022USD ($) |
Guarantor Obligations [Line Items] | |
Total | $ 3,284 |
2022 | 2,424 |
2023 | 860 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and beyond | 0 |
Letters of credit | |
Guarantor Obligations [Line Items] | |
Total | 2,372 |
2022 | 1,660 |
2023 | 712 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and beyond | 0 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Total | 912 |
2022 | 764 |
2023 | 148 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and beyond | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) $ in Millions | Mar. 22, 2021USD ($) | Mar. 31, 2022USD ($)Open_claim | Dec. 31, 2021USD ($) | Aug. 03, 2020USD ($) | Sep. 30, 2018USD ($) | Jan. 31, 2018USD ($) |
Commitments and Contingencies [Line Items] | ||||||
Accrued undiscounted amounts | $ 115 | $ 120 | ||||
Estimated liabilities for asbestos-related bodily injury claims | 81 | $ 81 | ||||
LDC Damages | ||||||
Commitments and Contingencies [Line Items] | ||||||
Damages sought | $ 40 | |||||
Litigation liability | 40 | |||||
West Lake | ||||||
Commitments and Contingencies [Line Items] | ||||||
Accrued undiscounted amounts | $ 290 | $ 40 | ||||
Latty Avenue | ||||||
Commitments and Contingencies [Line Items] | ||||||
Environmental loss contingencies | $ 90 | |||||
Open Claims | ||||||
Commitments and Contingencies [Line Items] | ||||||
Estimated liabilities for asbestos-related bodily injury claims | $ 20 | |||||
Number of claims | Open_claim | 233 | |||||
Estimated Future Claims | ||||||
Commitments and Contingencies [Line Items] | ||||||
Estimated liabilities for asbestos-related bodily injury claims | $ 61 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) - LTIP - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Feb. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 20,000,000 | |
Vesting period | 3 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage to be settled as common stock | 50.00% | |
Percentage to be settled as cash | 50.00% | |
Performance period | 3 years | |
Shares granted (in shares) | 1,514,288 | |
Weighted average grant date fair value (in shares) | $ 48.35 | |
Total unrecognized compensation costs | $ 33 | |
Remaining weighted average period | 2 years 4 months 24 days | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 1,283,406 | |
Weighted average grant date fair value (in shares) | $ 47.20 | |
Total unrecognized compensation costs | $ 38 | |
Remaining weighted average period | 2 years 7 months 6 days | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period | 3 years | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period | 5 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Total stock-based compensation expense included in operating and maintenance expense | $ 14 | $ 12 |
Income tax benefit | (3) | (3) |
Total after-tax stock-based compensation expense | $ 11 | $ 9 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss - Schedule of Changes in AOCI (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Jan. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ 11,614 | $ 11,614 | ||
Separation related adjustments | (197) | |||
Other comprehensive income, net of income taxes | $ 21 | 21 | $ 1 | |
Ending balance | 11,505 | 11,505 | ||
Losses on Cash Flow Hedges | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (8) | (8) | (7) | |
Separation related adjustments | 0 | |||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Other comprehensive income, net of income taxes | 0 | 0 | ||
Ending balance | (8) | (8) | (7) | |
Pension and Non-Pension Postretirement Benefit Plan Items | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | |
Separation related adjustments | (2,006) | |||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 17 | 0 | ||
Other comprehensive income, net of income taxes | (1,989) | 0 | ||
Ending balance | (1,989) | (1,989) | 0 | |
Foreign Currency Items | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (23) | (23) | (23) | |
Separation related adjustments | 0 | |||
OCI before reclassifications | 4 | 1 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Other comprehensive income, net of income taxes | 4 | 1 | ||
Ending balance | (19) | (19) | (22) | |
Total | ||||
Movement in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ (31) | (31) | (30) | |
Separation related adjustments | (2,006) | |||
OCI before reclassifications | 4 | 1 | ||
Amounts reclassified from AOCI | 17 | 0 | ||
Other comprehensive income, net of income taxes | (1,985) | 1 | ||
Ending balance | $ (2,016) | $ (2,016) | $ (29) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss - Income Taxes Allocated to Other Comprehensive Income (Loss) Components (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Actuarial loss reclassified to periodic benefit cost | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension and non-pension postretirement benefit plans valuation adjustment | $ (6) | $ 0 |
Pension and Non-Pension Postretirement Benefit Plan Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension and non-pension postretirement benefit plans valuation adjustment | $ 680 | $ 0 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets | |||||
Cash and cash equivalents | $ 1,605 | $ 504 | $ 721 | $ 226 | |
Restricted cash and cash equivalents | 91 | 72 | $ 41 | $ 89 | |
Accounts receivable | |||||
Customer | 1,936 | 1,669 | |||
Other | 334 | 592 | |||
Inventories, net | |||||
Materials and supplies | 999 | 1,004 | |||
Other current assets | 1,238 | 1,007 | |||
Total current assets | 8,767 | 7,981 | |||
Property, plant and equipment, net | 19,837 | 19,612 | |||
Other noncurrent assets | 2,152 | 1,717 | |||
Total assets | [1] | 46,846 | 48,086 | ||
Current liabilities | |||||
Long-term debt due within one year | 191 | 1,220 | |||
Accounts payable | 1,847 | 1,757 | |||
Accrued expenses | 803 | 737 | |||
Other current liabilities | 317 | 311 | |||
Total current liabilities | 6,434 | 7,996 | |||
Long-term debt | 4,548 | 4,575 | |||
Other noncurrent liabilities | 1,300 | 1,133 | |||
Total deferred credits and other liabilities | 24,359 | 23,582 | |||
Total liabilities | [1] | 35,341 | 36,472 | ||
Recourse | |||||
Current liabilities | |||||
Total liabilities | 1 | 1 | |||
Variable Interest Entity, Primary Beneficiary | |||||
Current assets | |||||
Cash and cash equivalents | 45 | 35 | |||
Restricted cash and cash equivalents | 39 | 48 | |||
Accounts receivable | |||||
Customer | 28 | 24 | |||
Other | 7 | 6 | |||
Inventories, net | |||||
Materials and supplies | 14 | 14 | |||
Other current assets | 461 | 405 | |||
Total current assets | 594 | 532 | |||
Property, plant and equipment, net | 2,004 | 2,027 | |||
Other noncurrent assets | 209 | 215 | |||
Total noncurrent assets | 2,213 | 2,242 | |||
Total assets | 2,807 | 2,774 | |||
Current liabilities | |||||
Long-term debt due within one year | 65 | 70 | |||
Accounts payable | 14 | 10 | |||
Accrued expenses | 12 | 21 | |||
Other current liabilities | 0 | 1 | |||
Total current liabilities | 91 | 102 | |||
Long-term debt | 799 | 822 | |||
Asset retirement obligations | 153 | 151 | |||
Other noncurrent liabilities | 3 | 3 | |||
Total deferred credits and other liabilities | 955 | 976 | |||
Total liabilities | 1,046 | 1,078 | |||
Unamortized energy contract assets, current | 23 | 23 | |||
Unamortized energy contract assets, noncurrent | $ 196 | $ 202 | |||
[1] | Our consolidated assets include $2,588 million and $2,549 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
EGRP | ||
Variable Interest Entity [Line Items] | ||
Equity ownership | 51.00% | 51.00% |
Antelope Valley | ||
Variable Interest Entity [Line Items] | ||
Equity ownership | 100.00% | 100.00% |
NER | ||
Variable Interest Entity [Line Items] | ||
Equity ownership | 100.00% | 100.00% |
Solar project entities | ||
Variable Interest Entity [Line Items] | ||
Equity ownership | 100.00% | |
Wind project entities | ||
Variable Interest Entity [Line Items] | ||
Equity ownership | 100.00% |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Significant Unconsolidated VIEs (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Total assets | [1] | $ 46,846 | $ 48,086 |
Total liabilities | [1] | 35,341 | 36,472 |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,113 | 1,144 | |
Total liabilities | 285 | 296 | |
Our ownership interest in VIE | 133 | 139 | |
Other ownership interests in VIE | 695 | 709 | |
Commercial Agreement VIEs | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Total assets | 751 | 772 | |
Total liabilities | 72 | 80 | |
Our ownership interest in VIE | 0 | 0 | |
Other ownership interests in VIE | 679 | 692 | |
Equity Investment VIEs | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Total assets | 362 | 372 | |
Total liabilities | 213 | 216 | |
Our ownership interest in VIE | 133 | 139 | |
Other ownership interests in VIE | $ 16 | $ 17 | |
[1] | Our consolidated assets include $2,588 million and $2,549 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Our consolidated liabilities include $1,045 million and $1,077 million at March 31, 2022 and December 31, 2021, respectively, of certain VIEs for which the VIE creditors do not have recourse to us. See Note 17 — Variable Interest Entities for additional information. |
Supplemental Financial Inform_3
Supplemental Financial Information - Summary of Taxes other than income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental Financial Information [Abstract] | ||
Operating lease income | $ 4 | $ 3 |
Variable lease income | 56 | 64 |
Gross receipts | 30 | 24 |
Property | 70 | 68 |
Payroll | $ 33 | $ 28 |
Supplemental Financial Inform_4
Supplemental Financial Information - Summary of Other Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Decommissioning-related activities: | ||
Regulatory Agreement Units | $ 174 | $ 291 |
Non-Regulatory Agreement Units | 85 | 203 |
Regulatory Agreement Units | (537) | (82) |
Non-Regulatory Agreement Units | (337) | (66) |
Regulatory offset to NDT fund-related activities | 291 | (167) |
Decommissioning-related activities | (324) | 179 |
Non-service net periodic benefit cost | 18 | 0 |
Net unrealized (losses) gains from equity investments | $ (20) | $ (23) |
Supplemental Financial Inform_5
Supplemental Financial Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation, amortization and accretion | ||||
Property, plant, and equipment | $ 270 | $ 928 | ||
Amortization of intangible assets, net | 10 | 12 | ||
Nuclear fuel | 181 | 276 | ||
ARO accretion | 132 | 127 | ||
Total depreciation, amortization, and accretion | 602 | 1,346 | ||
Other non-cash operating activities: | ||||
Pension and non-pension postretirement benefit costs | 7 | 26 | ||
Allowance for credit losses | 0 | 34 | ||
Other decommissioning related-activity | 6 | (332) | ||
Energy-related options | 188 | 17 | ||
Amortization of operating ROU asset | 17 | 21 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 1,605 | 721 | $ 504 | $ 226 |
Restricted cash and cash equivalents | 91 | 41 | 72 | 89 |
Cash, restricted cash, and cash equivalents - Held for Sale | 12 | |||
Total cash, restricted cash, and cash equivalents | 1,696 | 762 | 576 | 327 |
Constellation Energy Generation, LLC | ||||
Depreciation, amortization and accretion | ||||
Total depreciation, amortization, and accretion | 602 | 1,346 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 1,605 | 721 | 504 | 226 |
Restricted cash and cash equivalents | 79 | 41 | 72 | 89 |
Cash, restricted cash, and cash equivalents - Held for Sale | 12 | |||
Total cash, restricted cash, and cash equivalents | 1,684 | 762 | $ 576 | $ 327 |
Unamortized Energy Contracts | ||||
Depreciation, amortization and accretion | ||||
Amortization of energy contract assets and liabilities | $ 9 | $ 3 |
Supplemental Financial Inform_6
Supplemental Financial Information - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Supplemental Balance Sheet Information [Line Items] | ||
Compensation-related accruals | $ 249 | $ 356 |
Taxes accrued | 421 | 272 |
Constellation Energy Generation, LLC | ||
Supplemental Balance Sheet Information [Line Items] | ||
Compensation-related accruals | 217 | 356 |
Taxes accrued | $ 421 | $ 272 |
Related Party Transactions - Op
Related Party Transactions - Operating Revenues and Purchased Power and Fuel From Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | $ 160 | $ 295 |
ComEd | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 58 | 78 |
PECO | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 33 | 42 |
BGE | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 18 | 72 |
PHI | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 51 | 100 |
Pepco | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 39 | 75 |
DPL | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 10 | 21 |
ACE | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 2 | 4 |
Other | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | 0 | 3 |
Constellation Energy Generation, LLC | ||
Related Party Transaction [Line Items] | ||
Total operating revenues from affiliates | $ 160 | $ 295 |
Related Party Transactions - BS
Related Party Transactions - BSC Service Companies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Operating and maintenance from affiliates | $ 44 | $ 145 |
Other | ||
Related Party Transaction [Line Items] | ||
Operating and maintenance from affiliates | 44 | 144 |
Capitalized costs | 15 | 10 |
Constellation Energy Generation, LLC | ||
Related Party Transaction [Line Items] | ||
Operating and maintenance from affiliates | $ 44 | $ 145 |
Related Party Transactions - Cu
Related Party Transactions - Current Receivables From/Payables To Affiliates (Details) $ in Millions | Dec. 31, 2021USD ($) |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | $ 160 |
Payables to affiliates: | 131 |
ComEd | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 84 |
Payables to affiliates: | 13 |
PECO | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 30 |
Payables to affiliates: | 0 |
BGE | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 4 |
Payables to affiliates: | 0 |
Pepco | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 20 |
Payables to affiliates: | 0 |
DPL | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 4 |
Payables to affiliates: | 0 |
ACE | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 7 |
Payables to affiliates: | 0 |
BSC | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 0 |
Payables to affiliates: | 102 |
Other | |
Related Party Transaction [Line Items] | |
Receivables from affiliates: | 11 |
Payables to affiliates: | $ 16 |
Uncategorized Items - ceg-20220
Label | Element | Value | |
Noncontrolling Interest, Period Increase (Decrease) | us-gaap_MinorityInterestPeriodIncreaseDecrease | $ (7,000,000) | |
Dividends, Common Stock | us-gaap_DividendsCommonStock | 46,000,000 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | 9,000,000 | |
Common Stock [Member] | |||
Adjustments, Consummation of Separation | ceg_AdjustmentsConsummationOfSeparation | $ 13,203,000,000 | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation | 35,000,000 | |
Adjustments, Consummation of Separation, Shares Issued | ceg_AdjustmentsConsummationOfSeparationSharesIssued | 326,664,000,000 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | $ 9,000,000 | |
Retained Earnings [Member] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (45,000,000) | |
Dividends, Common Stock | us-gaap_DividendsCommonStock | 46,000,000 | |
Noncontrolling Interest [Member] | |||
Adjustments to Additional Paid in Capital, Separation From Parent | ceg_AdjustmentsToAdditionalPaidInCapitalSeparationFromParent | 7,000,000 | |
Noncontrolling Interest, Period Increase (Decrease) | us-gaap_MinorityInterestPeriodIncreaseDecrease | (7,000,000) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 5,000,000 | |
Predecessor Member's Equity [Member] | |||
Adjustments, Consummation of Separation | ceg_AdjustmentsConsummationOfSeparation | (13,203,000,000) | [1] |
Adjustments to Additional Paid in Capital, Separation From Parent | ceg_AdjustmentsToAdditionalPaidInCapitalSeparationFromParent | 1,802,000,000 | [1] |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 151,000,000 | [1] |
AOCI Attributable to Parent [Member] | |||
Adjustments to Additional Paid in Capital, Separation From Parent | ceg_AdjustmentsToAdditionalPaidInCapitalSeparationFromParent | (2,006,000,000) | |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | $ 21,000,000 | |
[1] | Represents Constellation’s predecessor member's equity prior to the separation transaction. Upon completion of the separation, the predecessor member's equity was transferred to CEG Parent’s Common stock. See Note 1 — Basis of Presentation for additional information on the separation. |