PLA-7775, Annual Financial Information Required by 10 CFR 50.71 (PLA-7775)

Annual Financial Information Required by 10 CFR 50.71 (PLA-7775)

ML19120A276
Person / Time
Site:	Susquehanna
Issue date:	04/30/2019
From:	Cimorelli K Susquehanna, Talen Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
PLA-7775
Download: ML19120A276 (5)

Text

Kevin Cimorelli Susquehanna Nuclear, LLC Site Vice President 769 Salem Boulevard Berwick, PA 18603 TALEN~

Tel. 570.542.3795 Fax 570.542.1504 Kevin.Cimorelli@TalenEnergy.com ENERGY U.S. Nuclear Regulatory Commission 10 CPR 50.71(b)

Attn: Document Control Desk Washington, DC 20555-0001 APR 3 0 2019 SUSQUEHANNA STEAM ELECTRIC STATION ANNUAL FINANCIAL INFORMATION REQUIRED BY 10 CFR 50.71 Docl{et Nos. 50-387 PLA-7775 and 50-388 As required by 10 CPR 50.71(b), the enclosure to this letter provides the 2018 annual financial information for Talen Energy Supply, LLC, the parent company of Susquehanna Nuclear, LLC.

This letter contains no new regulatory commitments.

If you have any questions or require additional infonnation, please contact Ms. Melisa Krick, Manager of Nuclear Regulatory Affairs, at (570) 542-1818.

Enclosure:

Annual Financial Information Copy: NRC Region I Ms. T. E. Hood, NRC Project Manager Ms. L. H. Micewski, NRC Sr. Resident Inspector Mr. M. Shields, PA DEP/BRP Ms. J. C. Tobin, NRC Project Manager

Enclosure to PLA-7775 Annual Financial Information

CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, Talen Energy Supply, LLC and Subsidiaries (Millions of Dollars) 2018 2017 Capacity revenues $ 592 $ 562 Energy revenues 2,128 2,291 Unrealized gain (loss) on derivative instruments (6) (223)

Total Operating Revenues 2,714 2,630 Fuel and energy purchases (1,206) (1,301)

Unrealized gain (loss) on derivative instruments 7 62 Nuclear fuel amortization (126) (137)

Gross Margin 1,389 1,254 Other Operating Expenses Plant operation and maintenance (686) (695)

General and administrative (83) (98)

Postretirement benefits service cost (28) (40)

Depreciation, amortization and accretion (467) (513)

Restructuring costs (52) (67)

Other operating income (expense), net (19) 67 Operating Income (Loss) 54 (92)

Interest expense (333) (306)

Nuclear decommissioning trust funds gain (loss), net 166 84 Postretirement benefits gain (loss), net (5) (8)

Debt restructuring gain (loss), net 9 (12)

Reorganization gain (loss), net 73 Other non-operating income (expense), net (1) (3)

Income (Loss) Before Income Taxes (37) (337)

Income tax benefit (expense) 8 464 Income (Loss) from Continuing Operations after Income Taxes (29) 127 Income (loss) from discontinued operations (net of income taxes) (8) 22 Net Income (Loss) $ (37) $ 149

CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, Talen Energy Supply, LLC and Subsidiaries (Millions of Dollars) 2018 2017 Assets Cash and cash equivalents $ 22 $ 51 Restricted cash and cash equivalents 219 59 Accounts receivable, net 200 271 Inventory 460 424 Derivative instruments 371 233 Assets held for sale 19 Other current assets 43 43 Total current assets 1,315 1,100 Property, plant and equipment, net 6,956 7,230 Nuclear decommissioning trust funds 1,125 1,195 Derivative instruments 82 52 Other noncurrent assets 73 79 Total Assets $ 9,551 $ 9,656 Liabilities and Equity Revolving credit facilities $ 210 $ 218 Long-term debt, due within one year 45 106 Accrued interest 63 51 Accounts payable and other accrued liabilities 354 419 Derivative instruments 456 373 Liabilities held for sale 9 Other current liabilities 67 60 Total current liabilities 1,195 1,236 Long-term debt 4,204 4,151 Derivative instruments 163 72 Postretirement benefit obligations 384 398 Asset retirement obligations and accrued environmental costs 598 572 Deferred income taxes 679 787 Other noncurrent liabilities 55 50 Total Liabilities 7,278 7,266 Commitments and Contingencies Member's Equity 2,273 2,390 Total Liabilities and Equity $ 9,551 $ 9,656 2

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, Talen Energy Supply, LLC and Subsidiaries (Millions of Dollars) 2018 2017 Operating Activities Net income (loss) $ (37) $ 149 Reconciliation adjustments:

Generation facility and non-core asset sale pre-tax (loss) gains 2 (28)

Reorganization (gain) loss, net (73)

Depreciation, amortization and accretion 493 523 Nuclear fuel amortization 126 137 Deferred income taxes (44) (470)

Unrealized (gains) losses on derivative instruments (7) 179 Debt restructuring (gain) loss, net (9) 12 Nuclear Decommissioning Trust Funds (gain) loss, net (excluding interest and fees) (143) (64)

Net periodic defined benefit cost 33 47 Other 16 16 Change in assets and liabilities:

Accounts receivable, net 84 Inventory (42) 52 Other assets (1) 69 Accounts payable and accrued liabilities (96) (7)

Accrued interest 16 6 Other liabilities 16 Net cash provided by (used in) operating activities 334 621 Investing Activities Property, plant and equipment expenditures (203) (184)

Nuclear fuel expenditures (107) (78)

Generation facility and non-core asset sale proceeds 72 Nuclear decommissioning trust funds investment purchases (548) (310)

Nuclear decommissioning trust funds investment sale proceeds 574 296 Insurance proceeds 12 Other investing activities 3 8 Net cash provided by (used in) investing activities (269) (196)

Financing Activities Net increase (decrease) in revolving credit facilities 125 110 Term loan principal payments (13) (14)

Long-term debt issuance proceeds 448 1,486 Repayments and extinguishments (488) (1,544)

Member Distributions (500)

Debt issuance costs (11) (49)

Other 5 Net cash provided by (used in) financing activities 66 (511)

Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash and Cash Equivalents 131 (86)

Beginning of period cash and cash equivalents and restricted cash and cash equivalents 110 196 End of period cash and cash equivalents and restricted cash and cash equivalents $ 241 $ 110 3