PLA-7863, Annual Financial Report Required by 10 CFR 50.71 (PLA-7863)

Annual Financial Report Required by 10 CFR 50.71 (PLA-7863)

ML20120A435
Person / Time
Site:	Susquehanna
Issue date:	04/29/2020
From:	Cimorelli K Susquehanna, Talen Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
PLA-7863
Download: ML20120A435 (5)

Text

TALEN~

Kevin Cimorelli Susquehanna Nuclear, LLC Site Vice President 769 Salem Boulevard Berwick, PA 18603 Tel. 570.542.3795 Fax 570.542.1504 Kevin.Cimorelli@TalenEnergy.com ENERGY U.S. Nuclear Regulatory Commission 10 CFR 50.71(b)

Attn: Document Control Desk Washington, DC 20555-0001 04/29/2020 SUSQUEHANNA STEAM ELECTRIC STATION ANNUAL FINANCIAL REPORT REQUIRED BY 10 CFR50.71 Docket Nos. 50-387 PLA-7863 and 50-388 As required by 10 CFR 50.71(b), the enclosure to this letter provides the 2019 annual financial report for Tal en 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 information, please contact Ms. Melisa Krick, Manager ofNuclear Regulatory Affairs, at (570) 542-1818.

Enclosure:

Annual Financial Report Copy: NRC Region I Ms. S. Goetz, NRC Project Manager Ms. L. H. Micewski, NRC Sr. Resident Inspector Mr. M. Shields, PA DEP/BRP

Enclosure to PLA-7863 Annual Financial Report

TALEN ENERGY SUPPLY, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, (Millions of Dollars) 2019 2018 Capacity revenues $ 432 $ 592 Energy revenues 1,806 2,128 Unrealized gain (loss) on derivative instruments 359 (6)

Operating Revenues 2,597 2,714 Fuel and energy purchases (888) (1,206)

Unrealized gain (loss) on derivative instruments (55) 7 Nuclear fuel amortization (125) (126)

Gross Margin 1,529 1,389 Other Operating Expenses Plant operation and maintenance (647) (686)

General and administrative (82) (83)

Postretirement benefits service cost (5) (28)

Depreciation, amortization and accretion (451) (467)

Restructuring costs (18) (52)

Other operating income (expense), net (37) (19)

Operating Income (Loss) 289 54 Interest expense (375) (333)

Nuclear decommissioning trust funds gain (loss), net 178 (18)

Postretirement benefits gain (loss), net (9) (5)

Debt restructuring gain (loss), net (68) 9 Reorganization gain (loss), net 73 Other non-operating income (expense), net 4 (1)

Income (Loss) Before Income Taxes 19 (221)

Income tax benefit (expense) (27) 82 Income (Loss) from Continuing Operations after Income Taxes (8) (139)

Income (loss) from discontinued operations (net of income taxes) (8)

Net Income (Loss) $ (8) $ (147) 1

TALEN ENERGY SUPPLY, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, (Millions of Dollars) 2019 2018 Assets Cash and cash equivalents $ 72 $ 22 Restricted cash and cash equivalents 111 219 Accounts receivable, net 136 200 Inventory, net 511 460 Derivative instruments 784 371 Assets held for sale 14 Other current assets 55 43 Total current assets 1,683 1,315 Property, plant and equipment, net 6,642 6,956 Nuclear decommissioning trust funds 1,316 1,125 Derivative instruments 169 82 Other noncurrent assets 107 73 Total Assets $ 9,917 $ 9,551 Liabilities and Equity Revolving credit facilities $ 115 $ 210 Long-term debt, due within one year 150 45 Inventory repurchase obligations 150 Accrued interest 65 63 Accounts payable and other accrued liabilities 269 354 Derivative instruments 687 456 Liabilities held for sale 1 Other current liabilities 107 67 Total current liabilities 1,544 1,195 Long-term debt 4,096 4,204 Derivative instruments 146 163 Postretirement benefit obligations 451 384 Asset retirement obligations and accrued environmental costs 655 598 Deferred income taxes 696 679 Other noncurrent liabilities 93 55 Total Liabilities 7,681 7,278 Commitments and Contingencies Member's Equity 2,236 2,273 Total Liabilities and Equity $ 9,917 $ 9,551 2

TALEN ENERGY SUPPLY, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, (Millions of Dollars) 2019 2018 Operating Activities Net income (loss) $ (8) $ (147)

Reconciliation adjustments:

Unrealized (gains) losses on derivative instruments (289) (7)

Nuclear fuel amortization 122 126 Depreciation, amortization and accretion 470 493 Reorganization (gain) loss, net (73)

Nuclear decommissioning trust funds (gain) loss, net (excluding interest and fees) (154) 41 Debt restructuring (gain) loss, net 56 (9)

PIK interest 29 7 Net periodic defined benefit cost 15 33 Deferred income taxes 25 (116)

Other 27 11 Change in assets and liabilities:

Accounts receivable, net 51 84 Inventory, net (51) (42)

Other assets (3) (1)

Accounts payable and accrued liabilities (77) (96)

Accrued interest 2 16 Other liabilities 14 14 Net cash provided by (used in) operating activities 229 334 Investing Activities Property, plant and equipment expenditures (152) (203)

Nuclear fuel expenditures (78) (107)

Nuclear decommissioning trust funds investment purchases (111) (548)

Nuclear decommissioning trust funds investment sale proceeds 83 574 Insurance proceeds 1 12 Other investing activities 12 3 Net cash provided by (used in) investing activities (245) (269)

Financing Activities Long-term debt issuance proceeds 1,715 448 Repayments of senior unsecured notes (651) (488)

Talen TLBs principal payments (1,078) (13)

Net increase (decrease) in inventory repurchase obligations 150 Net increase (decrease) in revolving credit facilities (95) 125 NGG TLC principal payments (8)

LMBE-MC project debt principal payments (37)

Deferred finance costs (40) (11)

Other 2 5 Net cash provided by (used in) financing activities (42) 66 Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (58) 131 Beginning of period cash and cash equivalents and restricted cash and cash equivalents 241 110 End of period cash and cash equivalents and restricted cash and cash equivalents $ 183 $ 241 3