CEG · 10-Q · 2026Q2 · Full report

Litigation and Legal Risk

Constellation Energy Corp · 2026-08-06 · Importance 17 · Surprise 24

Calpine became subject to the same ongoing litigation as Constellation concerning the February 2021 extreme cold weather event and outages at Texas-based generating assets. In March 2026, the Supreme Court of Texas denied plaintiffs’ petitions for writs of mandamus in all five bellwether appeals, and in July 2026 it denied plaintiffs’ motions for rehearing. The parties will return to the Multi-District-Litigation court to effect dismissal of all remaining Winter Storm Uri tort claims against power generator defendants.

Key facts

• In March 2026, the Supreme Court of Texas denied plaintiffs’ petitions for writ of mandamus in all five bellwether appeals; in July 2026 the Court denied plaintiffs' motions for rehearing; parties will now return to the MDL court to effect dismissal of all remaining Winter Storm Uri tort claims pending against power generator defendants. source
• As of June 30, 2026 and December 31, 2025, the Company had accrued undiscounted amounts for environmental liabilities of $ (redacted) and $ (redacted), respectively, in Accounts payable and accrued expenses and $ (redacted) and $ (redacted), respectively, in Other deferred credits and other liabilities. source
• As of June 30, 2026 and December 31, 2025, the Company had accrued $ (redacted) and $ (redacted), respectively, in Accounts payable and accrued expenses and $ (redacted) and $ (redacted), respectively, in Other deferred credits and other liabilities for liabilities related to litigation matters, including asbestos personal injury claims. source