8 unchanged sentences
Electricity available from our owned or contracted generation supply in excess of our obligations to customers is sold into the wholesale markets.
−Removed: To reduce commodity price risk caused by market fluctuations, we enter non-derivative contracts as well as derivative contracts, including swaps, futures, forwards, and options, with approved counterparties to hedge anticipated exposures.
−Removed: We use derivative instruments as economic hedges to mitigate exposure to fluctuations in commodity prices.
−Removed: We expect the settlement of the majority of our economic hedges will occur during 2025 through 2027.
−Removed: 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.
−Removed: Beginning in 2024, our existing nuclear fleet is eligible for the nuclear PTC provided by the IRA, an important tool in managing commodity price risk for each nuclear unit not already receiving state support.
−Removed: The nuclear PTC provides increasing levels of support as unit revenues decline below levels established in the IRA and is further adjusted for inflation after 2024 through the duration of the program based on the GDP price deflator for the preceding calendar year.
−Removed: See Note 6 — Government Assistance of the Combined Notes to Consolidated Financial Statements for additional information on the nuclear PTC.
−Removed: In locations and periods where our load serving activities do not naturally offset existing generation portfolio risk, remaining commodity price exposure is managed through portfolio hedging activities.
+Added: To reduce commodity price risk caused by market fluctuations, we enter into non-derivative contracts as well as derivative contracts, including swaps, futures, forwards, and options, with approved counterparties to hedge anticipated exposures in locations and periods where our load serving activities do not naturally offset existing generation portfolio risk.
Portfolio hedging activities are generally concentrated in the prompt three years, when customer demand and market liquidity enable effective price risk mitigation.
−Removed: During this prompt three-year period, we seek to mitigate price risk associated with our load serving contracts, non-nuclear generation, and any residual price risk for our nuclear generation that the nuclear PTC and state programs may not fully mitigate.
+Added: We expect the settlement of the majority of our economic hedges will occur during 2026 through 2028.
We also enter transactions that further optimize the economic benefits of our overall portfolio.
+Added: 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.
+Added: Beginning in 2024, our existing nuclear fleet is eligible for a nuclear PTC, an important tool in managing commodity price risk for each nuclear unit not already receiving state support.
+Added: The nuclear PTC provides increasing levels of support as unit revenues
+Added: decline below levels established in the IRA and is further adjusted for inflation annually through the duration of the program based on the GDP price deflator for the preceding calendar year.
+Added: See Note 6 — Government Assistance of the Combined Notes to Consolidated Financial Statements for additional information.
The forecasted market price risk exposure is the risk of a change in the value of unhedged positions.
−Removed: The forecasted market price risk exposure for our entire economic hedge portfolio associated with a $5/MWh reduction in the annual average around-the-clock energy price based on December 31, 2024 market conditions and hedged position results in an immaterial impact to earnings for 2025 and 2026, respectively, largely due to the nuclear PTC.
+Added: The forecasted market price risk exposure as of December 31, 2025 for our portfolio associated with a hypothetical $5/MWh reduction in the annual average around-the-clock energy price results in an impact to earnings that is not material for 2026 and 2027.
See Note 15 — Derivative Financial Instruments of the Combined Notes to Consolidated Financial Statements for additional information.
4 unchanged sentences
Supply market conditions may make our procurement contracts subject to credit risk related to the potential non-performance of counterparties to deliver the contracted commodity or service at the contracted prices.
−Removed: We engage a diverse set of suppliers to secure the nuclear fuel needed to continue to operate
−Removed: our nuclear fleet long-term.
+Added: We engage a diverse set of suppliers to secure the nuclear fuel needed to continue to operate our nuclear fleet long-term.
Approximately 35% of our uranium concentrate requirements from 2026 through 2030 are supplied by three suppliers.
2 unchanged sentences
Geopolitical developments, including the Russia and Ukraine conflict and United States, United Kingdom, European Union, and Canadian sanctions against Russia, have the potential to impact delivery from multiple suppliers in the international uranium processing industry.
−Removed: Non-performance by these counterparties could have a material adverse impact on our consolidated financial statements.
+Added: Non-performance by these counterparties could have a material adverse impact on our results of operation or financial condition.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS — Other Key Business Drivers for more information on the Russia and Ukraine conflict.
−Removed: Trading and Non-Trading Marketing Activities
−Removed: The following table provides detail on changes in our commodity mark-to-market net assets (liabilities) balance sheet position from December 31, 2022 to December 31, 2024.
−Removed: This table incorporates the mark-to-market activities that are immediately recorded in earnings.
−Removed: This table excludes all NPNS contracts and does not segregate proprietary trading activity.
−Removed: See Note 15 — Derivative Financial Instruments of the Combined Notes to Consolidated Financial Statements for additional information on the balance sheet classification of the mark-to-market commodity contract net assets (liabilities) recorded as of December 31, 2024 and 2023.
+Added: Commodity Derivative Activity
+Added: The following table provides detail on changes in our commodity derivative contract net assets (liabilities) balance sheet position from January 1, 2024 to December 31, 2025.
+Added: This table incorporates the unrealized gains and losses that are immediately recorded in earnings.
+Added: This table excludes all NPNS contracts.
+Added: See Note 15 — Derivative Financial Instruments of the Combined Notes to Consolidated Financial Statements for additional information on the balance sheet classification of the commodity derivative contract net assets (liabilities) recorded as of December 31, 2025 and 2024.
Beginning balance as of January 1 (a)
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Total change in fair value of contracts recorded in results of operations
−Removed: (654) (2,530)
Reclassification to realized at settlement of contracts recorded in results of operations 104 1,934
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Ending balance as of December 31 (a)
−Removed: $ 317 $ 1,108
(a) Amounts are shown net of collateral paid to and received from counterparties.
(b) Includes derivative contracts acquired or sold through upfront payments or receipts of cash, excluding option premiums, and the associated amortizations.
−Removed: The following table presents maturity and source of fair value for mark-to-market commodity contract net assets (liabilities).
+Added: The following table presents maturity and source of fair value for commodity derivative contract net assets (liabilities).
See Note 17 — Fair Value of Financial Assets and Liabilities of the Combined Notes to Consolidated Financial Statements for additional information regarding fair value measurements and the fair value hierarchy.
−Removed: Maturities Within Total Fair
+Added: Maturities Within Total Fair Value
2026 2027 2028 2029 2030 2031 and Beyond
−Removed: Normal Operations, Commodity derivative contracts (a)(b) :
+Added: Commodity derivative contracts (a) :
Actively quoted prices (Level 1) $ 145 $ 26 $ (17) $ (12) $ — $ — $ 142
2 unchanged sentences
Total $ 467 $ (5) $ 28 $ (16) $ (28) $ 58 $ 504
−Removed: (a) Represents mark-to-market gains and losses on commodity derivative contracts that are recorded in the results of operations.
−Removed: (b) Amounts are shown net of collateral paid to and received from counterparties (and offset against mark-to-market assets and liabilities) of $586 million at December 31, 2024.
+Added: (a) Amounts are shown net of collateral paid to and received from counterparties (and offset against derivative assets and liabilities) of $1,352 million at December 31, 2025.
We would be exposed to credit-related losses in the event of non-performance by counterparties that execute derivative instruments.
2 unchanged sentences
Credit-Risk-Related Contingent Features
−Removed: As part of the normal course of business, we routinely enter physically or financially settled contracts for the purchase and sale of capacity, electricity, fuels, emissions allowances, and other energy-related products.
+Added: As part of the normal course of business, we routinely enter into physically or financially settled contracts for the purchase and sale of capacity, electricity, fuels, emissions allowances, and other energy-related products.
In accordance with the contracts and applicable law, if we are downgraded by a credit rating agency, especially if such downgrade is to a level below investment grade, it is possible that a counterparty would attempt to rely on such a downgrade as a basis for making a demand for adequate assurance of future performance.
4 unchanged sentences
The bilateral contracts are subject to credit risk, which relates to the ability of counterparties to meet their contractual payment obligations.
−Removed: Any failure to collect these payments from counterparties could have a material impact on our consolidated financial statements.
+Added: Any failure to collect these payments from counterparties could have a material impact on our results of operation or financial condition.
As market prices rise above or fall below contracted price levels, we are required to post collateral with purchasers;
5 unchanged sentences
ERCOT is not subject to regulation by FERC but performs a similar function in Texas to that performed by RTOs and ISOs in markets regulated by FERC.
−Removed: In these areas, power and related products are traded through bilateral agreements between buyers and sellers and in the energy markets
−Removed: that are administered by the RTOs or ISOs, as applicable.
+Added: In these areas, power and related products are traded through bilateral agreements between buyers and sellers and in the energy markets that are administered by the RTOs or ISOs, as applicable.
In areas where there is no RTO or ISO to administer energy markets, electricity and related products are purchased and sold solely through bilateral agreements.
1 unchanged sentence
The credit policies of the RTOs and ISOs may, under certain circumstances, require that losses arising from the default of one member be shared by the remaining participants.
−Removed: Non-performance or non-payment by a major member of an RTO or ISO could result in a material adverse impact on our consolidated financial statements.
+Added: Non-performance or non-payment by a major member of an RTO or ISO could result in a material adverse impact on our results of operations or financial condition.
Exchange Traded Transactions
−Removed: We enter commodity transactions on NYMEX, ICE, NASDAQ, NGX, and the Nodal exchange (each an Exchange and, collectively, Exchanges).
+Added: We enter into commodity transactions on NYMEX, ICE, NASDAQ, NGX, and the Nodal exchange (each an Exchange and, collectively, Exchanges).
The Exchange clearinghouses act as the counterparty to each trade.
3 unchanged sentences
We use a combination of fixed-rate and variable-rate debt to manage interest rate exposure.
−Removed: We may also utilize interest rate swaps to manage our interest rate exposure.
−Removed: A hypothetical 50 basis point increase in the interest rates associated with unhedged variable-rate debt (excluding Commercial Paper) and fixed-to-floating swaps would not have resulted in a material decrease in our earnings for the year ended December 31, 2024.
+Added: We may also utilize interest rate swaps to manage our interest rate exposure, including derivatives to lock in rate levels in anticipation of future financings.
+Added: A hypothetical 50 basis points change in interest rates associated with unhedged variable-rate long term debt and interest rate swaps would not have resulted in a material impact to our earnings for the year ended December 31, 2025.
To manage foreign exchange rate exposure associated with international energy purchases in currencies other than U.S.
7 unchanged sentences
We actively monitor the investment performance of the trust funds and periodically review asset allocations in accordance with our NDT fund investment policy.
−Removed: A hypothetical 25 basis points increase in interest rates and 10% decrease in equity prices would have resulted in a $943 million reduction in the fair value of our NDT trust assets as of December 31, 2024.
+Added: A hypothetical 25 basis point increase in interest rates and 10% decrease in equity prices would have resulted in a $1,099 million reduction in the fair value of our NDT trust assets as of December 31, 2025.
This calculation holds all other variables constant and assumes only the discussed changes in interest rates and equity prices.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.