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Summary of Significant Accounting Policies | 6 Months Ended
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Jun. 30, 2026
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amounts of net earnings during the reporting periods. Actual results could be different from these estimates. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include highly liquid investments with an original maturity of three months or less at the time of purchase. Cash and cash equivalents held at subsidiary facilities was $247 million and $194 million as of June 30, 2026 and December 31, 2025, respectively. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
| June 30, 2026 |  | December 31, 2025
| (In millions)
Cash and cash equivalents | $ | 251 |  |  | $ | 231 |
Restricted cash | 292 |  |  | 587 |
Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | 543 |  |  | $ | 818 |
Restricted cash consists primarily of funds held to satisfy the requirements of certain debt agreements and funds held within the Company’s facilities that are restricted in their use. As of June 30, 2026, these restricted funds were comprised of $130 million designated to fund operating expenses, $40 million designated for current debt service payments and $90 million restricted for reserves including debt service, performance obligations and other reserves as well as capital expenditures. The remaining $32 million is held in distribution reserve accounts. In January 2026, the Company distributed $174 million to the tax equity investor in Rosie South TE Holdco LLC related to transferable ITCs for the Rosamond South I solar and BESS facility that were included in restricted cash as of December 31, 2025. Accumulated Depreciation and Accumulated Amortization The following table presents the accumulated depreciation included in property, plant and equipment, net, and accumulated amortization included in intangible assets for power purchase agreements, net and other intangible assets, net:
| June 30, 2026 |  | December 31, 2025
| (In millions)
Property, Plant and Equipment Accumulated Depreciation | $ | 5,030 |  |  | $ | 4,673 |
Intangible Assets Accumulated Amortization | 1,485 |  |  | 1,382 |
Redeemable Noncontrolling Interests To the extent that a third party has the right to redeem their interests for cash or other assets, the Company has included the noncontrolling interest attributable to the third party as a component of temporary equity in the mezzanine section of the consolidated balance sheet. The following table reflects the changes in the Company’s redeemable noncontrolling interest balance:
|  | (In millions)
Balance at December 31, 2025 |  | $ | 103 |
Cash contributions from redeemable noncontrolling interests, net of distributions |  | 245 |
Non-cash contribution from redeemable noncontrolling interests |  | 6 |
Comprehensive loss attributable to redeemable noncontrolling interests |  | (230) |
Balance at June 30, 2026 |  | $ | 124 |
Revenue Recognition Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers along with the reportable segment for each category:
| Three months ended June 30, 2026
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  | Total
Energy revenue (a) | $ | 8 |  |  | $ | 389 |  |  |  |  | $ | 397 |
Capacity revenue (a) | 66 |  |  | 42 |  |  |  |  | 108 |
Other revenues | — |  |  | 25 |  |  |  |  | 25 |
Contract amortization | (4) |  |  | (47) |  |  |  |  | (51) |
Mark-to-market for economic hedges | 16 |  |  | (14) |  |  |  |  | 2 |
Total operating revenues | 86 |  |  | 395 |  |  |  |  | 481 |
Less: Contract amortization | 4 |  |  | 47 |  |  |  |  | 51 |
Less: Mark-to-market for economic hedges | (16) |  |  | 14 |  |  |  |  | (2) |
Less: Lease revenue | (25) |  |  | (293) |  |  |  |  | (318) |
Total revenue from contracts with customers | $ | 49 |  |  | $ | 163 |  |  |  |  | $ | 212 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | — |  |  | $ | 258 |  |  | $ | 258 |
Capacity revenue | 25 |  |  | 35 |  |  | 60 |
Total | $ | 25 |  |  | $ | 293 |  |  | $ | 318 |
| Three months ended June 30, 2025
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  |  |  | Total
Energy revenue (a) | $ | 5 |  |  | $ | 333 |  |  |  |  |  |  | $ | 338 |
Capacity revenue (a) | 68 |  |  | 22 |  |  |  |  |  |  | 90 |
Other revenues | 1 |  |  | 21 |  |  |  |  |  |  | 22 |
Contract amortization | (4) |  |  | (41) |  |  |  |  |  |  | (45) |
Mark-to-market for economic hedges | (20) |  |  | 7 |  |  |  |  |  |  | (13) |
Total operating revenues | 50 |  |  | 342 |  |  |  |  |  |  | 392 |
Less: Contract amortization | 4 |  |  | 41 |  |  |  |  |  |  | 45 |
Less: Mark-to-market for economic hedges | 20 |  |  | (7) |  |  |  |  |  |  | 13 |
Less: Lease revenue | (29) |  |  | (244) |  |  |  |  |  |  | (273) |
Total revenue from contracts with customers | $ | 45 |  |  | $ | 132 |  |  |  |  |  |  | $ | 177 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | — |  |  | $ | 232 |  |  | $ | 232 |
Capacity revenue | 29 |  |  | 12 |  |  | 41 |
Total | $ | 29 |  |  | $ | 244 |  |  | $ | 273 |
| Six months ended June 30, 2026
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  |  |  | Total
Energy revenue (a) | $ | 15 |  |  | $ | 643 |  |  |  |  |  |  | $ | 658 |
Capacity revenue (a) | 131 |  |  | 74 |  |  |  |  |  |  | 205 |
Other revenues | 1 |  |  | 40 |  |  |  |  |  |  | 41 |
Contract amortization | (9) |  |  | (92) |  |  |  |  |  |  | (101) |
Mark-to-market for economic hedges | 9 |  |  | 23 |  |  |  |  |  |  | 32 |
Total operating revenues | 147 |  |  | 688 |  |  |  |  |  |  | 835 |
Less: Contract amortization | 9 |  |  | 92 |  |  |  |  |  |  | 101 |
Less: Mark-to-market for economic hedges | (9) |  |  | (23) |  |  |  |  |  |  | (32) |
Less: Lease revenue | (54) |  |  | (472) |  |  |  |  |  |  | (526) |
Total revenue from contracts with customers | $ | 93 |  |  | $ | 285 |  |  |  |  |  |  | $ | 378 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | 1 |  |  | $ | 413 |  |  | $ | 414 |
Capacity revenue | 53 |  |  | 59 |  |  | 112 |
Total | $ | 54 |  |  | $ | 472 |  |  | $ | 526 |
| Six months ended June 30, 2025
(In millions) | Flexible Generation |  | Renewables & Storage |  |  |  | Total
Energy revenue (a) | $ | 11 |  |  | $ | 575 |  |  |  |  | $ | 586 |
Capacity revenue (a) | 132 |  |  | 43 |  |  |  |  | 175 |
Other revenues | 2 |  |  | 40 |  |  |  |  | 42 |
Contract amortization | (9) |  |  | (80) |  |  |  |  | (89) |
Mark-to-market for economic hedges | (18) |  |  | (6) |  |  |  |  | (24) |
Total operating revenues | 118 |  |  | 572 |  |  |  |  | 690 |
Less: Contract amortization | 9 |  |  | 80 |  |  |  |  | 89 |
Less: Mark-to-market for economic hedges | 18 |  |  | 6 |  |  |  |  | 24 |
Less: Lease revenue | (58) |  |  | (425) |  |  |  |  | (483) |
Total revenue from contracts with customers | $ | 87 |  |  | $ | 233 |  |  |  |  | $ | 320 |
(a) The following amounts of energy and capacity revenues relate to leases and are accounted for under ASC 842:
(In millions) | Flexible Generation |  | Renewables & Storage |  | Total
Energy revenue | $ | 1 |  |  | $ | 400 |  |  | $ | 401 |
Capacity revenue | 57 |  |  | 25 |  |  | 82 |
Total | $ | 58 |  |  | $ | 425 |  |  | $ | 483 |
Contract Balances The following table reflects the contract assets included on the Company’s consolidated balance sheets:
| June 30, 2026 |  | December 31, 2025
| (In millions)
Accounts receivable, net - Contracts with customers | $ | 141 |  |  | $ | 76 |
Accounts receivable, net - Leases | 155 |  |  | 86 |
Total accounts receivable, net | $ | 296 |  |  | $ | 162 |
Recently Adopted Accounting Standards Effective January 1, 2026, the Company adopted ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendment clarifies when software costs should be capitalized and requires certain disclosures for all capitalized internal-use software costs. The Company adopted ASU 2025-06 prospectively and the adoption had no material impact on the Company’s financial statements. Effective January 1, 2026, the Company adopted ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The amendment expands the derivative scope exceptions and clarifies when an entity should apply the guidance in ASC 606, Revenue from Contracts with Customers, to contracts with share-based noncash consideration from a customer for the transfer of goods or services. The Company adopted ASU 2025-07 prospectively, and the adoption had no material impact on the Company’s financial statements. Recent Accounting Standards Not Yet Adopted In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes guidance for the recognition, measurement, presentation and disclosure of environmental credits and environmental credit obligations. The guidance is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual periods. The amendment must be applied retrospectively through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption. Early adoption is permitted. As of June 30, 2026, the Company has not elected to early adopt the standard and is evaluating the effect of the new guidance on its consolidated financial statements.

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