Constellation Energy Corp current report, 21 June 2022

Business Context and Reporting Period

Constellation Energy Corporation and Constellation Energy Generation, LLC filed a Form 8-K dated June 21, 2022, reporting the results of the PJM capacity auction for the 2023–2024 planning year. Auction results become effective June 1, 2023.

Key Operating and Financial Metrics

  • All of the company’s nuclear, natural gas, and oil generation plants located in the PJM market cleared the auction, subject to the noted eligibility limitation.
  • Total PJM cleared capacity at ownership: 18,775 MW.
  • Cleared nuclear capacity: 16,175 MW.
  • Cleared natural gas, oil, and other capacity: 2,600 MW.
  • COMED: 10,025 MW of nuclear capacity cleared at $34 capacity-performance price.
  • MAAC: 6,150 MW of nuclear capacity and 2,175 MW of natural gas/oil/other capacity cleared at $49.
  • BGE: 425 MW of natural gas/oil/other capacity cleared at $70; no nuclear capacity cleared in this zone.
  • The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or other financial statement metrics.

Material Changes Versus Prior Comparable Period

The filing reports a discrete capacity-auction result and does not provide a comparable prior-period auction result or quantify changes versus a prior period.

Outlook, Risks, Contingencies, and Unusual Items

  • Capacity commitments from the auction are scheduled to take effect June 1, 2023.
  • Southeast Chicago was not eligible to be offered because of its deactivation status.
  • The filing contains customary forward-looking-statement warnings. Actual results may differ due to factors described in the company’s 2021 Form 10-K, first-quarter 2022 Form 10-Q, and other SEC filings.
  • No specific financial guidance or management forecast is provided in this filing.

Investor Verification Items

  • Verify the capacity-performance pricing and volumes by PJM zone, particularly the aggregate 18,775 MW clearing.
  • Assess the financial impact of the capacity commitments beginning June 1, 2023, including expected revenue, costs, and performance obligations.
  • Review the treatment and timing of the Southeast Chicago deactivation.
  • Review the referenced Form 10-K and Form 10-Q risk factors, commitments, contingencies, and liquidity disclosures.