Property, Plant, and Equipment

7. Property, Plant and Equipment



		June 30, 2025						December 31, 2024
	Estimated Useful Life (years)	Gross Value		Accumulated Depreciation		Carrying Value		Gross Value		Accumulated Depreciation		Carrying Value
Electric generation	3-27	$	3,091	$	(385)	$	2,706	$	3,030	$	(292)	$	2,738
Nuclear fuel	1-6	403		(166)		237		322		(152)		170
Other property and equipment	1-26	61		(8)		53		90		(18)		72

Capitalized software	1-5	8		(4)		4		8		(3)		5
Construction work in progress		89		—		89		169		—		169
Property, plant and equipment, net		$	3,652	$	(563)	$	3,089	$	3,619	$	(465)	$	3,154

The components of “Depreciation, amortization and accretion” presented on the Consolidated Statements of Operations for the periods were:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Depreciation expense (a)	$	52	$	56	$	107	$	116
Amortization expense (b)	3		4		8		6
Accretion expense (c)	15		15		29		28

Depreciation, amortization and accretion	$	70	$	75	$	144	$	150

(a)Electric generation and other property and equipment.

(b)Intangible assets and capitalized software.

(c)ARO and accrued environmental cost accretion. See Note 8 for additional information.

The cost of nuclear fuel and the amortization of nuclear fuel intangible assets are presented as “Nuclear fuel amortization” on the Consolidated Statements of Operations.

Brandon Shores and H.A. Wagner Reliability Impact Assessments

In May 2025, the FERC approved each of the Brandon Shores and H.A. Wagner RMR agreements, under which: (i) Talen will operate the generation facilities in accordance with such arrangements from June 1, 2025 through May 31, 2029, or until such time as the necessary transmission upgrades are placed into service; (ii) Brandon Shores will earn annual fixed-cost payments of $145 million ($312/MWd), inclusive of a $5 million per year unit performance “hold back;” (iii) H.A. Wagner will earn annual fixed-cost payments of $35 million ($137/MWd), inclusive of a $2 million per year unit performance “hold back;” and (iv) each facility will receive separate reimbursement for variable costs and approved project investments. Additionally, H.A. Wagner Unit 4 is subject to certain emission restrictions associated with its air permits that could limit the Unit’s runtime. On July 21, 2025, PJM filed a request for the DOE to issue an order, pursuant to Section 202(c) of the Federal Power Act, to allow Unit 4 to exceed its air permit emission limits while the facility operates under its FERC-approved RMR. The DOE entered the requested order on July 28, 2025, which is effective through October 26, 2025; Unit 4 will still be operated under and paid in accordance with the H.A. Wagner RMR agreement. Such order is subject to extension at the request of PJM and the discretion of the DOE.

Nautilus Derecognition

Under the transition terms associated with the AWS PPA as revised in June 2025, (i) the Company has ceased use of the Nautilus facility; (ii) AWS will demolish the Nautilus facility; and (iii) the facility lease between the Company and AWS, as well as the related submetering and supply arrangements, will be terminated. Accordingly, during the three months ended June 30, 2025, the Company derecognized from the Consolidated Balance Sheets approximately: (i) $15 million of structures and buildings presented as “Property, plant and equipment, net;” (ii) an aggregate $44 million of contract intangible assets and lease right-of-use assets presented as “Other noncurrent assets;” (iii) $10 million of lease liabilities presented as “Other current liabilities;” and (iv) an aggregate $57 million contractual obligations and lease obligations presented as “Other noncurrent liabilities.” The resulting net gain of $8 million is presented as “Other operating income (expense), net” on the Consolidated Statements of Operations.