Constellation Energy Market Performance slide image

Constellation Energy Market Performance

Generation and Hedges November 30, 2021 2023 Generation and Hedges 2022 Expected Generation (GWh) (¹). Midwest (2) 199,000 196,000 96,500 95,300 Mid-Atlantic 55,700 54,600 ERCOT 21,400 20,300 New York 25,400 25,800 % of Expected Generation Hedged (3) 91%-94% 74%-77% Midwest 95%-98% 86%-89% Mid-Atlantic 95%-98% 69%-72% ERCOT 78%-81% 54%-57% New York 78%-81% 54%-57% Effective Realized Energy Price ($/ MWh) (4) Midwest $27.00 $27.00 Mid-Atlantic $33.50 $34.00 ERCOT (5) $4.00 $4.00 New York $24.00 $24.50 (1) Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted for capacity based upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. Expected generation assumes 11 refueling outages in 2022 and 14 in 2023 at Constellation-operated nuclear plants and Salem. Expected generation assumes capacity factors of 94.5% and 94.0% in 2022 and 2023, respectively at Constellation-operated nuclear plants, at ownership. These estimates of expected generation in 2022 and 2023 do not represent guidance or a forecast of future results as Constellation has not completed its planning or optimization processes for those years. (2) Midwest expected generation includes generation from CMC Plants of 31,600 GWh in 2022 and 54,000 GWh in 2023 (3) Percent of expected generation hedged is the amount of equivalent sales divided by expected generation. It includes all hedging products, such as wholesale and retail sales of power, options and swaps. The Midwest values in the table reflect IL plants receiving CMC payments as 100% hedged. To align with the Midwest EREP, however, one should exclude plant and hedge volumes associated with CMC payments. Excluding CMC plant and hedge volumes, the Midwest is 93% to 96% hedged in 2022 and 69% to 72% hedged in 2023. We will hedge the residual merchant generation in line with our three-year ratable program. (4) Effective realized energy price is representative of an all-in hedged price, on a per MWh basis, at which expected generation has been hedged. It is developed by considering the energy revenues and costs associated with our hedges and by considering the fossil fuel that has been purchased to lock in margin. It excludes uranium costs, RPM capacity, ZEC and CMC revenues, but includes the mark-to-market value of capacity contracted at prices other than RPM clearing prices including our load obligations. It can be compared with the reference prices used to calculate open gross margin* in order to determine the mark-to-market value of Exelon Generation's energy hedges. 44 (5) Spark spreads shown for ERCOT Constellation.
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