stellation Energy (CEG) - 2024 Q4 - Annual Report

Acquisition and Growth Strategy - The company announced an agreement to acquire Calpine Corporation, which would create the nation's leading competitive retail electric supplier and enhance its scale and diversification[95]. - The company aims to maintain investment grade credit ratings and optimize cash returns through disciplined operations and cost management[90]. - The company is focused on growth opportunities in clean energy, efficiency, storage, and electrification to meet customer sustainability targets[98]. - Significant investments from hyperscalers in AI technology are driving unprecedented demand for reliable energy, presenting growth opportunities for the company[102]. Clean Energy Commitment - The company is committed to a clean energy future and aims to support businesses and public entities in achieving sustainability goals[91]. - The company supports public policy for vehicle electrification and invests in enabling infrastructure and technology to facilitate decarbonization[111]. - Emerging technologies such as advanced nuclear power, carbon capture, and energy storage are expected to significantly contribute to decarbonization efforts[123]. - The company has made investments in developing carbon capture technologies to reduce GHG emissions from carbon-emitting generating plants[110]. - The company is actively involved in corporate clean energy targets, supporting commitments to reduce GHG emissions through clean energy procurement[122]. Nuclear Energy and Emissions - Nuclear energy accounts for over 50% of the nation's carbon-free power, and the company plans to extend the licenses of its nuclear fleet to 80 years with continued policy support[101]. - The company achieved a 94.6% capacity factor across its nuclear fleet in 2024, producing 182 TWh of electricity from 22 GWs of carbon-free generation capacity[110]. - The company is positioned as a low-carbon generation company, minimizing GHG emitting assets and maximizing carbon-free electric production[109]. - In 2023, the company's Scope 1 and 2 market-based GHG emissions were 10 million metric tons CO2 equivalent, with 9.3 million metric tons from natural gas and oil-fueled generation, significantly lower than peers[109]. - The company emphasizes the importance of regulatory support for nuclear energy to ensure reliability and security of the electrical grid[101]. Regulatory and Environmental Compliance - The company operates under comprehensive environmental legislation and regulations at federal, state, and local levels, addressing climate change and GHG emissions[104]. - The company is evaluating market impacts of new EPA regulations on GHG emissions from power plants, which are currently under litigation[114]. - Six out of twelve nuclear stations operated by the company have been deemed compliant with the EPA's Section 316(b) rule using existing technology[127]. - The company has completed all required studies and submitted recommendations for compliance as part of the NPDES/SPDES renewal process for its nuclear stations[127]. - The company has established appropriate contingent liabilities for environmental remediation requirements, with potential significant additional expenditures not presently determinable[135]. Workforce and Community Engagement - In 2024, the company hired over 1,400 employees, aiming to attract and retain a world-class workforce[147]. - The total number of employees as of December 31, 2024, was 14,264, including 14,215 full-time employees[150]. - The turnover rate for regular employees for the year ended December 31, 2024, was 1.50% for involuntary terminations, 2.40% for retirements, and 3.50% for voluntary resignations[151]. - Approximately 25% of all employees participate in collective bargaining agreements (CBAs), with 3,333 employees covered by 21 CBAs as of December 31, 2024[152]. - The company actively invests in community development, with employees donating over $5.3 million to non-profit organizations and providing more than 116,500 volunteer service hours in 2024[146]. Energy Demand and Market Position - The U.S. energy sector is experiencing unprecedented changes, increasing demand for reliable, clean power generation, which positions the company's generation fleet favorably[97]. - 25 states and the District of Columbia have set 100% clean energy targets, impacting 55% of U.S. residential electricity customers, with the company being the largest generator of carbon-free electricity[115]. - The company will continue to manage cash flow volatility through prudent risk management strategies across its business[94]. - The company is engaged in partnerships with national labs, universities, and startups to foster innovation in energy solutions[98].