CONSTELLATION ENERGY GENERATION LLC

Note 7 — Accounts Receivable

7. Accounts Receivable

The following table provides additional information on the disaggregation of customer and other accounts receivable:

Allowance for Credit Losses on Accounts Receivable

The following table presents the rollforward of allowance for credit losses on customer accounts receivable from January 1, 2024 to December 31, 2025:

(a)Recoveries were not material.

(b)Impact as a result of the December 2024 amendment of our revolving accounts receivable financing arrangement. See below for details.

The allowance for credit losses on other accounts receivable was not material as of the balance sheet dates, therefore, a rollforward is not presented.

Unbilled Customer Revenue

We recorded $1,305 million and $1,109 million of unbilled customer revenues in Accounts receivable, net in the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively.

Sales of Customer Accounts Receivable

In 2020, NER, a bankruptcy remote, special purpose entity, which is wholly owned by us, entered a revolving accounts receivable financing arrangement with a number of financial institutions and a commercial paper conduit (Purchasers) to sell certain customer accounts receivables (Facility). On December 31, 2024, we amended the Facility. We will 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 Accounts receivable, net as of December 31, 2024. See Note 16 — Debt and Credit Agreements for terms of the amended Facility.

Note 7 — Accounts Receivable

The following table summarizes our cash proceeds associated with the Facility prior to the amendment:

(a)Customer accounts receivable sold into the Facility were $12,262 million and $11,746 million for the years ended December 31, 2024, and 2023, respectively.

(b)Does not include the $300 million and $800 million net cash payments to the Purchasers in 2024 and 2023, respectively, 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 were ($10,574) million and ($8,097) million for the years ended December 31, 2024, and 2023, respectively. 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 $10,217 million, and $7,340 million for the years ended December 31, 2024, and 2023, respectively.

See Note 21 — 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 $4,204 million, $280 million, and $356 million for the years ended December 31, 2025, 2024, and 2023, 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.