CONSTELLATION ENERGY GENERATION LLC

7. Accounts Receivable

Allowance for Credit Losses on Accounts Receivable

The following table presents the rollforward of allowance for credit losses on Customer accounts receivable. The activity and balances were not material for the nine months ended September 30, 2024 given it did not include an allowance related to the sales of customer accounts receivable disclosed below.

(a)Recoveries were not material.

The Allowance for credit losses on Other accounts receivable was not material as of the balance sheet dates.

Unbilled Customer Revenue

We recorded $1,045 million and $1,109 million of unbilled customer revenues in Customer accounts receivables, net in the Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively.

Note 7 — Accounts Receivable

Sales of Customer Accounts Receivable

In 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 (Purchasers) to sell certain customer accounts receivable (Facility). On December 31, 2024, we amended the Facility. We no longer sell receivables to the Purchasers and all outstanding receivables were assigned back to us. Under the Facility's prior terms, NER sold eligible short-term customer accounts receivable to the Purchasers in exchange for cash and subordinated interest. The transfers were 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. As a result of the receivables being assigned back to NER under the amended Facility, NER forgave any and all remaining DPP owed by the Purchasers. The reassignment of receivables resulted in the recognition of $1,529 million of Customer accounts receivable as of December 31, 2024. See Note 12 — Debt and Credit Agreements for terms of the amended Facility.

The following table presents our cash proceeds associated with the Facility prior to the amendment.

(a)Customer accounts receivable sold into the Facility was $9,370 million.

(b)Does not include the $300 million net cash payments made to the Purchasers in order to reduce the outstanding borrowing amount under the Facility.

We previously recognized the cash proceeds received upon sale in Cash flows from operating activities within the Changes in Other assets and liabilities line in the Consolidated Statements of Cash Flows, which was ($7,682) million for the nine months ended September 30, 2024. The collection and reinvestment of DPP was recognized in Cash flows from investing activities in the Collection of DPP, net line in the Consolidated Statements of Cash Flows, which was $7,104 million for the nine months ended September 30, 2024.

See Note 16 — Variable Interest Entities for additional information on NER.

Other Sales of Customer Accounts Receivables

We are required, under supplier tariffs, to sell customer receivables to certain utility companies at a nominal discount. The total gross receivables sold were $3,207 million and $228 million for the nine months ended September 30, 2025 and 2024, respectively. Prior to the Facility amendment discussed in the preceding paragraphs, certain accounts receivable subject to these supplier tariffs were sold to the Purchasers under the Facility.