Postretirement Benefit Obligations

6 Months Ended

Jun. 30, 2024

Postemployment Benefits [Abstract]

Postretirement Benefit Obligations

13. Postretirement Benefit Obligations

TES and certain subsidiaries sponsor postemployment benefits which include defined benefit pension plans, health and welfare postretirement plans (other postretirement benefit plans), and defined contribution plans.

The components of net periodic benefit costs for the periods were:

	Successor				Predecessor		Successor				Predecessor
	Three Months Ended June 30, 2024		May 18 through June 30, 2023		April 1 through May 17, 2023		Six Months Ended June 30, 2024		May 18 through June 30, 2023		January 1 through May 17, 2023
Postretirement benefits service cost (a)	$	1	$	—	$	—	$	2	$	—	$	1
Interest cost	17		8		9		33		8		27
Expected return on plan assets	(17)		(8)		(11)		(35)		(8)		(33)
Amortization of:
Net loss	—		—		1		—		—		2
Postretirement benefit (gain) loss, net (b)	—		—		(1)		(2)		—		(4)
Net periodic defined benefit cost (credit)	$	1	$	—	$	(1)	$	—	$	—	$	(3)

_____________

(a)Activity presented as “Operation, maintenance and development” on the Consolidated Statements of Operations.

(b)Activity presented as “Other non-operating income (expense), net” on the Consolidated Statements of Operations.

See Note 10 for additional information on recently resolved litigation regarding certain of our defined benefit pension obligations.

In March 2024, $10 million of excess assets from the PA Mines UMWA Plan VEBA were transferred to a separate VEBA which provides benefits for participants in Talen’s health and welfare “wrap plan.” As such assets were not presented on the Consolidated Balance Sheets prior to the transfer of the assets from the VEBA, a transfer gain of $10 million was recognized for the six months ended June 30, 2024 (Successor) and presented as “Other non-operating income (expense), net” on the Consolidated of Operations.