Constellation Energy Market Performance
Cost Management Outpacing Inflation
($ in millions)
$4,975
-1.5%
5,000
$4,775
4,500
$4,400
$4,450
$225
$4,475
$4,475
$4,375
$4,375
$225
$4,225
$4,150
0
2017
2018
20 19
2020
2021E(1)
2022E(4)
2023E(4)
2024E(4)
Q4 2019 Disclosures (2)
Adjusted O&M*(3)
Focus on Efficiencies and Cost Management
Constellation has a proven track record of effective cost management
15
Projected to save over $1.4B in inflation-adjusted costs by 2024(5)
Constellation's focus on efficiencies and cost reduction, while ensuring safety and operational excellence, will support free cash
flow generation
Note: All amounts rounded to the nearest $25M and may not sum due to rounding
(1) 2021 adjusted O&M* is estimated based on November 30, 2021 forecasts. Actual results may vary.
(2) Represents the additional adjusted O&M* disclosed in Q4 20 19 Earnings call under normal conditions. 2020 and 2021 O&M spend is lower due to savings achieved to offset impacts of Covid-19
and Texas Weather Event, respectively.
(3) 2017-2021 include adjustments for purposes of comparing to forward-looking measures. Adjustments include reflecting CENG at 100% ownership, ARO accretion expense of unregulated units,
and reclass of pension and OPEB non-service costs from O&M in accordance with SEC reporting guidelines that will apply to Constellation post-separation.
(4) Post-separation Constellation will apply single-employer pension accounting, which requires non-service costs to be reclassed out from O&M to Other, Net for SEC reporting purposes.
Constellation's non-service costs are anticipated to be in a credit position of $100 M, $150 M, and $175M in 2022, 2023, and 2024, respectively. Impact is P&L neutral.
(5) Calculated using 2017 actuals and adjusting for annual inflation through 2024 (Source: Federal Reserve Bank of Minneapolis); 2022-2024 assumes inflation rate of 2.5%
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