Talen Energy Corporation announced today that it has signed a long-term power purchase agreement with a major investment-grade counterparty. The agreement covers a significant portion of the output from the Susquehanna nuclear power plant and sets a fixed price for those power sales.
Talen says the agreement is part of its strategy to hedge its generation assets and stabilize revenue. The fixed-price sales reduce the company’s exposure to volatile wholesale electricity prices and provide greater cash flow certainty.