Constellation Energy Corp (CEG) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Constellation Energy Corp surfaced in its latest filing.

• The Prohibiting Russian Uranium Imports Act bans import of low-enriched uranium produced in Russia or by Russian entities absent a DOE waiver.
• PJM is considering market rule changes through its stakeholder process, and the Trump administration with PJM state governors proposed a framework for new load connection and generation serving that load.
• As of December 31, 2025, approximately 26%, 8%, and 13% of available credit facilities were with European, Canadian, and Asian banks, respectively.December 31, 2025
• The Calpine acquisition was completed in January 2026 and accounted for as a business combination with goodwill recorded from the excess of consideration over fair value.January 2026
• PTC for existing nuclear plants under the IRA starting January 1, 2024 and affirmed by the OBBBA.January 1, 2024
• Federal Power Act Section 202(c) can require operation of power plants during emergencies.
• The company is involved in several proceedings relating to sites where hazardous substances have been deposited.
• License renewal for the Conowingo hydroelectric project is discussed in Note 3 — Regulatory Matters.
• Following the Calpine acquisition in January 2026, the company has several government awards for projects involving cost-share agreements with the DOE.January 2026
• Calpine has completed or commenced FEED studies for post-combustion CCUS technology at five facilities.
• Calpine received DOE funding for geothermal drilling technologies for the Geysers Assets.
• The Geysers Assets acquired in January 2026 have experienced drought conditions, affecting water injection program, steam production and generation levels.January 2026
• The company issued 50 million newly issued shares of common stock to Calpine stockholders, with prior shareholders and former Calpine stockholders owning approximately 86% and 14% respectively immediately following the merger.
• The merger is expected to be accretive to earnings per share in 2026 based on preliminary estimates.2026
• The restructuring of the Crane nuclear generation facility is subject to NRC comprehensive safety and environmental review, state and local permits, renewed license, and FERC interconnection agreement.
• The company has executed long-term contracts with technology companies as a result of increased demand from the data economy.