Constellation Energy Market Performance
42
Components of Gross Margin* Categories
Gross margin* linked to power production and sales
Gross margin* from
other business activities
Open Gross
Margin*
Contracted Revenues
•Generation Gross
Margin at current
market prices,
including ancillary
revenues, nuclear fuel
amortization and fuel
expense
•Power Purchase
Agreement (PPA)
Costs and Revenues
•Provided at a
consolidated level for
all regions (includes
hedged gross margin*
for South, West, New
England and
Canada(1))
•Expected contracted
revenues from CMC
payments to eligible IL
plants
•Expected capacity
revenues for
generation of
electricity
•Expected revenues
from Zero Emissions
Credits (ZEC)
MtM of
Hedges(2)
•Mark-to-Market
(MtM) of power,
capacity and ancillary
hedges, including
cross commodity,
retail and wholesale
load transactions
•Provided directly at a
consolidated level for
four major regions.
Provided indirectly for
each of the four major
regions via Effective
Realized Energy Price
(EREP), reference
price, hedge %,
expected generation.
"Power" New
Business
•Retail, Wholesale
planned electric sales
•Portfolio Management
new business
•Mid marketing new
business
Margins move from new business to MtM
of hedges over the course of the year as
sales are executed (5)
"Non Power"
Executed
•Retail, Wholesale
executed gas sales
•Energy Efficiency (4)
⚫BGE Home(4)
"Non Power"
New Business
•Retail, Wholesale
planned gas sales
•Energy Efficiency (3)
⚫BGE Home(3)
•Portfolio Management
/ origination fuels new
business
•Proprietary trading (4)
Margins move from "Non power new
business" to "Non power executed" over the
course of the year
(1) Hedged gross margins* for South, West, New England & Canada region will be included with Open Gross Margin*; no expected generation, hedge %, EREP or reference prices provided for these regions
(2) MtM of hedges provided directly for the four larger regions; MtM of hedges is not provided directly at the regional level but can be easily estimated using EREP, reference price and hedged MWh
(3) Gross margin* for these businesses are net of direct "cost of sales"
(4) Proprietary trading gross margins* will generally remain within "Non Power" New Business category and only move to "Non Power" Executed category upon management discretion
(5) Margins for South, West, New England & Canada regions and optimization of fuel and PPA activities captured in Open Gross Margin*
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