# EDGAR Filing Document

**Accession Number:** 0001013871
**File Stem:** 0001104659-25-092754
**Filing Date:** 2025-9
**Character Count:** 680690
**Document Hash:** 5da54214ce11de4ada05409109af525a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-092754.hdr.sgml**: 20250924

**ACCESSION NUMBER**: 0001104659-25-092754

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 49

**CONFORMED PERIOD OF REPORT**: 20250924

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250924

**DATE AS OF CHANGE**: 20250924

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NRG ENERGY, INC.
- **CENTRAL INDEX KEY:** 0001013871
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 411724239
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15891
- **FILM NUMBER:** 251335161

**BUSINESS ADDRESS:**
- **STREET 1:** 910 LOUISIANA STREET
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002
- **BUSINESS PHONE:** 713-537-3000

**MAIL ADDRESS:**
- **STREET 1:** 910 LOUISIANA STREET
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NRG ENERGY INC
- **DATE OF NAME CHANGE:** 19960509

?xml version='1.0' encoding='ASCII'?

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **September 24, 2025**

**NRG ENERGY, INC.**

(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware**<br> (State or other jurisdiction of<br> incorporation) | **001-15891**<br> (Commission File Number) | **41-1724239**<br> (IRS Employer Identification No.) |

---

**910 Louisiana Street,** **Houston, Texas 77002**

(Address of principal executive offices, including zip code)

**(713) 537-3000**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) <br>

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) <br>

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) <br>

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which <br> registered** |
| Common Stock, par value $0.01 | NRG | New York Stock Exchange |
| Common Stock, par value $0.01 | NRG | NYSE Texas |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 7.01.** | **Regulation FD Disclosure.** |

---

*LSP Acquisition*

On May 12, 2025, NRG Energy, Inc., a Delaware corporation (the "Company"), along with certain of its direct, wholly-owned subsidiaries (collectively, the "Buyer Entities"), entered into a Purchase and Sale Agreement (the "Purchase Agreement"), with Lightning Power Holdings, LLC ("Lightning PH Seller"), Thunder Generation, LLC ("Linebacker Seller"), CCS Power Holdings, LLC ("CCS PH Seller"), and Linebacker Power Development Funding, LLC ("Linebacker PDF Seller" and, collectively with Lightning PH Seller, Linebacker Seller and CCS PH Seller, the "Sellers") to acquire a portfolio of generation and other assets from affiliates of LS Power, including approximately 13 GW of natural gas-fired generation facilities and a commercial and industrial virtual power plant platform with approximately 6 GW of capacity. The Sellers are affiliates of LS Power Equity Advisors, LLC. The acquisition of the equity interests, together with the other transactions contemplated by the Purchase Agreement, are referred to herein as the "LSP Acquisition."

Subject to the terms and conditions of the Purchase Agreement, the Buyer Entities will acquire all of the issued and outstanding equity interests of Lightning Power, LLC ("Lightning"), Linebacker Power Holdings, LLC ("Linebacker"), CCS Intermediate HoldCo, LLC ("CCS") and Jack County Power Development, LLC ("JCPD" and, collectively, the "LSP Portfolio").

The Company has previously disclosed to the market that it currently anticipates that the LSP Portfolio will contribute approximately $1,600 million to its consolidated Adjusted EBITDA. This amount includes revenue enhancements that the Company expects will result in an increase to the annual run-rate Adjusted EBITDA by approximately $800 million. The revenue enhancements will be derived primarily from increased capacity prices and higher energy rates, a portion of which have already been contracted. The Company expects to achieve the full run-rate revenue enhancements within 18 months from the closing of the LSP Acquisition. There is no guarantee that the anticipated levels of revenue enhancements and Adjusted EBITDA will be achieved.

*Offerings*

In connection with the LSP Acquisition, the Company is conducting concurrent offerings of (1) senior secured first lien notes (the "Secured Notes Offering"), consisting of (i) senior secured first lien notes due 2030 (the "2030 Notes") and (ii) senior secured first lien notes due 2035 (the "2035 Notes" and, together with the 2030 Notes, the "Secured Notes") and (2) senior unsecured notes (the "Unsecured Notes Offering" and, together with the Secured Notes Offering, the "Offerings"), consisting of (i) senior notes due 2034 (the "2034 Notes") and (ii) senior notes due 2036 (the "2036 Notes" and, collectively with the 2034 Notes and the Secured Notes, the "Notes"). The Offerings will be made, in each case, pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The consummation of the Secured Notes Offering is not conditioned upon the completion of the Unsecured Notes Offering or vice versa. A copy of the press release announcing the Offerings is attached hereto as Exhibit 99.1 and incorporated by reference herein.

*Texas Development Priorities*

On July 31, 2025, the Company entered into a $216 million loan agreement with the Public Utility Commission of Texas (the "PUCT") under the Texas Energy Fund (the "First TEF loan") to support development at its T.H. Wharton generation facility, which is currently under construction. The First TEF loan bears interest at a fixed coupon rate of 3.000% per annum and has a final maturity date of July 31, 2045. Since July 2025, $176 million of disbursements for the First TEF loan have occurred.

In September 2025, the Company anticipates entering into a $562 million loan agreement with the PUCT under the Texas Energy Fund (the "Second TEF loan") to support development at its Cedar Bayou generation facility. The Second TEF loan is expected to bear interest at a fixed coupon rate of 3.000% per annum and is expected to have a final maturity in September 2045. The initial disbursement of $200 million for the Second TEF loan is expected to occur in September 2025.

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

---

(a) *Financial Statements*

In connection with the Offerings, the Company is providing the following historical financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. audited consolidated financial statements of Lightning Power, LLC and its subsidiaries as of December 31,
2024 and for the period August 9, 2024 to December 31, 2024 and the related notes, which are included as Exhibit 99.2 and
incorporated by reference herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. unaudited condensed consolidated financial statements of Lightning Power, LLC and its subsidiaries as
of June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and the related notes, which
are included as Exhibit 99.3 and incorporated by reference herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. audited combined financial statements of Fund III Projects for the period January 1, 2024 to August 8,
2024, and the year ended December 31, 2023 and the related notes, which are included as Exhibit 99.4 and incorporated by reference
herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. unaudited condensed combined financial statements of Fund III Projects as of June 30, 2024 and for
the three and six months ended June 30, 2024 and the related notes, which are included as Exhibit 99.5 and incorporated by reference
herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. audited consolidated financial statements of Gridiron Intermediate Holdings, LLC and its subsidiaries
for the period January 1, 2024 to August 8, 2024, and the year ended December 31, 2023 and the related notes, which are
included as Exhibit 99.6 and incorporated by reference herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. unaudited condensed consolidated financial statements of Gridiron Intermediate Holdings, LLC and its subsidiaries
as of June 30, 2024 and for the three and six months ended June 30, 2024 and the related notes, which are included as Exhibit 99.7
and incorporated by reference herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. audited consolidated financial statements of Linebacker Power Funding, LLC and its subsidiaries as of
the years ended December 31, 2024 and 2023 and for the year ended December 31, 2024 and the period of June 12, 2023 to
December 31, 2023 and the related notes, which are included as Exhibit 99.8 and incorporated by reference herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. unaudited condensed consolidated financial statements of Linebacker Power Funding, LLC and its subsidiaries
as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 and the related notes, which are included
as Exhibit 99.9 and incorporated by reference herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. audited consolidated financial statements of CCS Power Finance Co, LLC as of and for the fiscal years
ended December 31, 2024 and 2023 and the related notes, which are included as Exhibit 99.10 and incorporated by reference herein;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. unaudited condensed consolidated financial statements of CCS Power Finance Co, LLC as of June 30,
2025 and December 31, 2024 and for the three and six months periods ended June 30, 2025 and 2024 and the related notes, which
are included as Exhibit 99.11 and incorporated by reference herein.

(b) *Pro forma financial information*

In connection with the Offerings, the Company is providing the preliminary unaudited pro forma combined financial statements of the Company reflecting the LSP Acquisition and the related notes as of and for the six months ended June 30, 2025 and the unaudited pro forma combined statements of operations for the year ended December 31, 2024 and the six months ended June 30, 2024, which are filed as Exhibit 99.12 and incorporated by reference herein.

(d) *Exhibits*

---

| | |
|:---|:---|
| Exhibit<br> No. | Description |
| [23.1](tm2526385d1_ex23-1.htm) | [Consent of KPMG LLP, independent registered public accounting firm of Fund III Projects.](tm2526385d1_ex23-1.htm) |
| [23.2](tm2526385d1_ex23-2.htm) | [Consent of KPMG LLP, independent registered public accounting firm of Gridiron Intermediate Holdings, LLC.](tm2526385d1_ex23-2.htm) |
| [23.3](tm2526385d1_ex23-3.htm) | [Consent of KPMG LLP, independent registered public accounting firm of Lightning Power, LLC.](tm2526385d1_ex23-3.htm) |
| [23.4](tm2526385d1_ex23-4.htm) | [Consent of KPMG LLP, independent registered public accounting firm of Linebacker Power Funding, LLC .](tm2526385d1_ex23-4.htm) |
| [23.5](tm2526385d1_ex23-5.htm) | [Consent of KPMG LLP, independent registered public accounting firm of CCS Power Finance, LLC.](tm2526385d1_ex23-5.htm) |
| [99.1](tm2526385d1_ex99-1.htm) | [Press Release, dated September 24, 2025, announcing the Offerings.](tm2526385d1_ex99-1.htm) |
| [99.2](tm2526385d1_ex99-2.htm) | [Audited consolidated financial statements of Lightning Power, LLC and its subsidiaries as of December 31, 2024 and for the period August 9, 2024 to December 31, 2024 and the related notes thereto.](tm2526385d1_ex99-2.htm) |
| [99.3](tm2526385d1_ex99-3.htm) | [Unaudited condensed consolidated financial statements of Lightning Power, LLC and its subsidiaries as of June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and the related notes thereto.](tm2526385d1_ex99-3.htm) |
| [99.4](tm2526385d1_ex99-4.htm) | [Audited combined financial statements of Fund III Projects for the period January 1, 2024 to August 8, 2024, and the year ended December 31, 2023 and the related notes thereto.](tm2526385d1_ex99-4.htm) |
| [99.5](tm2526385d1_ex99-5.htm) | [Unaudited condensed combined financial statements of Fund III Projects as of June 30, 2024 and for the three and six months ended June 30, 2024 and the related notes thereto.](tm2526385d1_ex99-5.htm) |
| [99.6](tm2526385d1_ex99-6.htm) | [Audited consolidated financial statements of Gridiron Intermediate Holdings, LLC and its subsidiaries for the period January 1, 2024 to August 8, 2024, and the year ended December 31, 2023 and the related notes thereto.](tm2526385d1_ex99-6.htm) |
| [99.7](tm2526385d1_ex99-7.htm) | [Unaudited condensed consolidated financial statements of Gridiron Intermediate Holdings, LLC and its subsidiaries as of June 30, 2024 and for the three and six months ended June 30, 2024 and the related notes thereto.](tm2526385d1_ex99-7.htm) |
| [99.8](tm2526385d1_ex99-8.htm) | [Audited consolidated financial statements of Linebacker Power Funding, LLC and its subsidiaries as of the years ended December 31, 2024 and 2023 and for the year ended December 31, 2024 and the period of June 12, 2023 to December 31, 2023 and the related notes thereto.](tm2526385d1_ex99-8.htm) |
| [99.9](tm2526385d1_ex99-9.htm) | [Unaudited condensed consolidated financial statements of Linebacker Power Funding, LLC and its subsidiaries as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 and the related notes thereto.](tm2526385d1_ex99-9.htm) |
| [99.10](tm2526385d1_ex99-10.htm) | [Audited consolidated financial statements of CCS Power Finance Co, LLC as of and for the fiscal years ended December 31, 2024 and 2023 and the related notes thereto.](tm2526385d1_ex99-10.htm) |
| [99.11](tm2526385d1_ex99-11.htm) | [Unaudited condensed consolidated financial statements of CCS Power Finance Co, LLC as of June 30, 2025 and December 31, 2024 and for the three and six months periods ended June 30, 2025 and 2024 and the related notes thereto.](tm2526385d1_ex99-11.htm) |
| [99.12](tm2526385d1_ex99-12.htm) | [Unaudited pro forma combined financial information of NRG Energy, Inc. giving effect to the LSP Acquisition, which includes the unaudited pro forma combined balance sheet as of June 30, 2025 and the unaudited pro forma combined statement of operations for the year ended December 31, 2024 and the six months ended June 30, 2025 and 2024, and the notes related thereto.](tm2526385d1_ex99-12.htm) |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the IXBRL document. |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Dated: September 24, 2025 | **NRG Energy, Inc.** | **NRG Energy, Inc.** |
|  | (Registrant) | (Registrant) |
|  | By: | /s/ Christine A. Zoino |
|  |  | Christine A. Zoino |
|  |  | Corporate Secretary |

---

## Exhibit 23.1

**Exhibit 23.1**

---

| | |
|:---|:---|
| ![](tm2526385d1_ex23-1img001.jpg) |  |
|  | KPMG LLP<br> Suite 4000<br> 1735 Market Street<br> Philadelphia, PA 19103-7501 |

---

**Consent of Independent Auditors**

We consent to the incorporation by reference in the registration statements No. 333-217595, 333-197882, 333-185501, 333-182379, 333-171318, 333-151992, 333-135973, 333-114007, 333-270479 and 333-273810 on Form S-8 of NRG Energy, Inc. of our report dated June 27, 2025, with respect to the combined financial statements of Fund III Projects, which report appears in the Form 8-K of NRG Energy, Inc. dated September 24, 2025.

/s/ KPMG LLP

Philadelphia, Pennsylvania<br> September 24, 2025

KPMG LLP, a Delaware limited liability partnership and a member firm of <br> the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

## Exhibit 23.2

**Exhibit 23.2**

---

| | |
|:---|:---|
| ![](tm2526385d1_ex23-2img001.jpg) |  |
|  | KPMG LLP<br> Suite 4000<br> 1735 Market Street<br> Philadelphia, PA 19103-7501 |

---

**Consent of Independent Auditors**

We consent to the incorporation by reference in the registration statements No. 333-217595, 333-197882, 333-185501, 333-182379, 333-171318, 333-151992, 333-135973, 333-114007, 333-270479 and 333-273810 on Form S-8 of NRG Energy, Inc. of our report dated June 26, 2025, with respect to the consolidated financial statements of Gridiron Intermediate Holdings, LLC, which report appears in the Form 8-K of NRG Energy, Inc. dated September 24, 2025.

/s/ KPMG LLP

Philadelphia, Pennsylvania<br> September 24, 2025

KPMG LLP, a Delaware limited liability partnership and a member firm of<br> the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

## Exhibit 23.3

**Exhibit 23.3**

---

| | |
|:---|:---|
| ![](tm2526385d1_ex23-3img001.jpg) |  |
|  | KPMG LLP<br> Suite 4000<br> 1735 Market Street<br> Philadelphia, PA 19103-7501 |

---

**Consent of Independent Auditors**

We consent to the incorporation by reference in the registration statements No. 333-217595, 333-197882, 333-185501, 333-182379, 333-171318, 333-151992, 333-135973, 333-114007, 333-270479 and 333-273810 on Form S-8 of NRG Energy, Inc. of our report dated May 5, 2025, with respect to the consolidated financial statements of Lightning Power, LLC, which report appears in the Form 8-K of NRG Energy, Inc. dated September 24, 2025.

/s/ KPMG LLP

Philadelphia, Pennsylvania<br> September 24, 2025

KPMG LLP, a Delaware limited liability partnership and a member firm of<br> the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

## Exhibit 23.4

**Exhibit 23.4**

---

| | |
|:---|:---|
| ![](tm2526385d1_ex23-4img001.jpg) |  |
|  | KPMG LLP <br> Suite 4000<br> 1735 Market Street<br> Philadelphia, PA 19103-7501 |

---

**Consent of Independent Auditors**

We consent to the incorporation by reference in the registration statements No. 333-217595, 333-197882, 333-185501, 333-182379, 333-171318, 333-151992, 333-135973, 333-114007, 333-270479 and 333-273810 on Form S-8 of NRG Energy, Inc. of our report dated June 24, 2025, with respect to the consolidated financial statements of Linebacker Power Funding, LLC, which report appears in the Form 8-K of NRG Energy, Inc. dated September 24, 2025.

/s/ KPMG LLP

Philadelphia, Pennsylvania<br> September 24, 2025

KPMG LLP, a Delaware limited liability partnership and a member firm of<br> the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

## Exhibit 23.5

**Exhibit 23.5**

---

| | |
|:---|:---|
| ![](tm2526385d1_ex23-5img001.jpg) |  |
|  | KPMG LLP<br> Suite 4000<br> 1735 Market Street<br> Philadelphia, PA 19103-7501 |

---

**Consent of Independent Auditors**

We consent to the incorporation by reference in the registration statements No. 333-217595, 333-197882, 333-185501, 333-182379, 333-171318, 333-151992, 333-135973, 333-114007, 333-270479 and 333-273810 on Form S-8 of NRG Energy, Inc. of our report dated May 9, 2025, except for modifications disclosed in Note 1b and Note 14, for which the date is August 14, 2025, with respect to the consolidated financial statements of CCS Power Finance Co, LLC, which report appears in the Form 8-K of NRG Energy, Inc. dated September 24, 2025.

/s/ KPMG LLP

Philadelphia, Pennsylvania<br> September 24, 2025

KPMG LLP, a Delaware limited liability partnership and a member firm of<br> the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

## Exhibit 99.1

**Exhibit 99.1**

![](tm2526385d1_ex99-1img001.jpg)

**NRG Energy, Inc. Announces Offerings of<br> Senior Secured Notes and Senior Unsecured Notes**

HOUSTON – September 24, 2025 – NRG Energy, Inc. (NYSE:NRG) announced today the commencement of concurrent offerings of (1) senior secured first lien notes (the "Secured Notes Offering"), consisting of (i) senior secured first lien notes due 2030 (the "2030 Notes") and (ii) senior secured first lien notes due 2035 (the "2035 Notes" and, together with the 2030 Notes, the "Secured Notes") and (2) senior unsecured notes (the "Unsecured Notes Offering" and, together with the Secured Notes Offering, the "Offerings"), consisting of (i) senior notes due 2034 (the "2034 Notes") and (ii) senior notes due 2036 (the "2036 Notes" and, collectively with the 2034 Notes and the Secured Notes, the "Notes").

The Notes will be guaranteed by each of NRG's current and future wholly-owned U.S. subsidiaries that guarantee the term loans under NRG's credit agreement. The Secured Notes will be secured by a first priority security interest in the same collateral that is pledged for the benefit of the lenders under NRG's credit agreement, which collateral consists of a substantial portion of the property and assets owned by NRG and the guarantors.

NRG intends to use a portion of the net proceeds from the Offerings to partially fund the cash portion of the purchase price of its previously announced acquisition (the "LSP Acquisition") of the issued and outstanding equity interests of Lightning Power, LLC, Linebacker Power Holdings, LLC, CSS Intermediate HoldCo, LLC and Jack County Power Development, LLC. In addition, NRG intends to use a portion of the net proceeds from the Secured Notes Offering to repay in full its $500 million aggregate principal amount of 2.000% senior secured first lien notes on the maturity date on December 2, 2025.

The consummation of the Secured Notes Offering is not conditioned upon the completion of the Unsecured Notes Offering or vice versa.

The Notes and related guarantees are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and, outside the United States, to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. The Notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell any security, including the Notes, nor a solicitation for an offer to purchase any security, including the Notes. NRG does not intend to file a registration statement for the resale of the Notes.

**About NRG**

NRG Energy, Inc. is leading the future of energy—now. Our solutions power a smarter, brighter future by helping customers achieve today's goals while solving for the challenges of tomorrow. Every day, we deliver innovative natural gas, electricity, and smart home solutions to customers large and small across North America.

**Forward-Looking Statements**

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identified by the use of words such as "intend," "expect," "estimate," "should," "anticipate," "forecast," "plan," "guidance," "outlook," "believe" and similar terms. Although NRG believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions; hazards customary in the power industry; the inability to close (or any delay in closing) the LSP Acquisition; and the other risks and uncertainties detailed in NRG's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC at *www.sec.gov*. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the SEC at *www.sec.gov*.

**Contacts:**

**Investors:**

Brendan Mulhern

Brendan.Mulhern@nrg.com

**Media:**

Ann Duhon

NRGMediaRelations@nrg.com

## Exhibit 99.2

**Exhibit 99.2**

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Financial Statements

December 31, 2024 and for the period August 9, 2024 to December 31, 2024

(With Independent Auditors' Report Thereon)

![](tm2526385d1_ex99-2img01.jpg)

KPMG LLP

Suite 4000

1735 Market Street

Philadelphia, PA 19103-7501

**Independent Auditors' Report**

The Member

Lightning Power, LLC:

*Opinion*

We have audited the consolidated financial statements of Lightning Power, LLC and its subsidiaries (the Company), which comprise the consolidated balance sheet as of December 31, 2024, and the related consolidated statements of operations, member's equity, and cash flows for the period from August 9, 2024 to December 31, 2024, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the period from August 9, 2024 to December 31, 2024, in accordance with U.S. generally accepted accounting principles.

*Basis for Opinion*

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

*Responsibilities of Management for the Consolidated Financial Statements*

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the consolidated financial statements are issued.

*Auditors' Responsibilities for the Audit of the Consolidated Financial Statements*

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

![](tm2526385d1_ex99-2img02.jpg)

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional
skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of
the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated
financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude whether, in our judgment, there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for
a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

![](tm2526385d1_ex99-2img03.jpg)

Philadelphia, Pennsylvania

May 5, 2025

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Balance Sheet

December 31, 2024

(In thousands)

---

| | |
|:---|:---|
| **Assets** |  |
| Current assets: |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $59498 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 103062 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - affiliate | 1253 |
| &nbsp;&nbsp;&nbsp;Inventory | 122547 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 28161 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 424369 |
| &nbsp;&nbsp;&nbsp;Deposits | 26323 |
| &nbsp;&nbsp;&nbsp;Other current assets | 14216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 779429 |
| Property, plant, and equipment | 6855838 |
| Accumulated depreciation | (132209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | 6723629 |
| Intangible assets, net | 31772 |
| Assets from risk management activities | 671161 |
| Operating lease right-of-use assets, net | 27609 |
| Goodwill | 127985 |
| Other noncurrent assets | 135907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8497492 |
| **Liabilities and Member's Equity** |  |
| Current liabilities: |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | $8474 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 189495 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 414666 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 6243 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 25310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 644188 |
| Long term debt | 3194168 |
| Liabilities from risk management activities | 659818 |
| Asset retirement obligations | 68502 |
| Operating lease liabilities | 28092 |
| Other long term liabilities | 12799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 4607567 |
| Member's equity | 3889925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and member's equity | $8497492 |

---

See accompanying notes to the consolidated financial statements

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statement of Operations

For the period from August 9, 2024 to December 31, 2024

(In thousands)

---

| | |
|:---|:---|
| Revenues: |  |
| &nbsp;&nbsp;&nbsp;Energy and capacity revenues | $494471 |
| &nbsp;&nbsp;&nbsp;Gain on risk management activities | 15384 |
| &nbsp;&nbsp;&nbsp;Other revenue | 12290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 522145 |
| Operating expenses: |  |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | 190142 |
| &nbsp;&nbsp;&nbsp;Gain on risk management activities | (103706) |
| &nbsp;&nbsp;&nbsp;Operating and maintenance | 139565 |
| &nbsp;&nbsp;&nbsp;General and administrative | 38900 |
| &nbsp;&nbsp;&nbsp;Depreciation | 132209 |
| &nbsp;&nbsp;&nbsp;Accretion | 2097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 399207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 122938 |
| Interest expense, net | (130811) |
| Other loss, net | (9005) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(16878) |

---

See accompanying notes to the consolidated financial statements

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statement of Member's Equity

For the period from August 9, 2024 to December 31, 2024

(In thousands)

---

| | |
|:---|:---|
|  | Total<br>member's<br>equity |
| Balances at August 9, 2024 | $4530636 |
| Net loss | (16878) |
| Capital contribution | 9820 |
| Distributions | (633653) |
| Balances at December 31, 2024 | $3889925 |

---

See accompanying notes to the consolidated financial statements

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statement of Cash Flows

For the period from August 9, 2024 to December 31, 2024

(In thousands)

---

| | |
|:---|:---|
| Cash flows from operating activities: |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(16878) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash used in operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets | 2516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on insurance proceeds for damage to equipment | (1069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment | 16478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 132209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 3347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk management activities | (346699) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion | 2097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts receivable | (4774) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts receivable - affiliate | 1528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in inventory | 2484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in prepaid expenses | (5516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deposits | (1256) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other current assets | 2655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other noncurrent assets | (2923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued expenses | 13356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deferred revenue | 6243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other current liabilities | 25310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in operating lease liabilities | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other long term liabilities | (4605) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (174386) |
| Cash flows from investing activites: |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (19685) |
| &nbsp;&nbsp;&nbsp;Insurance proceeds received for damage to equipment | 1069 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (18616) |
| Cash flows from financing activities: |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of short term debt | 21000 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of long term debt | 3250000 |
| &nbsp;&nbsp;&nbsp;Principal payments on long term debt | (2491742) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs | (67330) |
| &nbsp;&nbsp;&nbsp;Capital contributions | 9820 |
| &nbsp;&nbsp;&nbsp;Cash distributions | (633653) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 88095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in restricted cash | (104907) |
| Restricted cash, beginning of period | 164405 |
| Restricted cash, end of period | $59498 |
| Supplemental disclosure of cash flow information: |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $94366 |

---

See accompanying notes to the consolidated financial statements

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

**(1)** **Organization** 

Lightning Power, LLC (Company), a Delaware limited liability company, was formed on June 21, 2024 to own, finance, develop, and manage a diverse portfolio of power generation facilities across the United States and is wholly owned by Lightning Power Holdings, LLC (Lightning Holdings). Lightning Holdings is directly owned by Fund III Lightning Holdings, LLC (Fund III Holdings) and Gridiron Holdings, LLC (Gridiron Holdings). Fund III Holdings and Gridiron Holdings own 68% and 32%, respectively, Class A common units of Lighting Holdings. Fund III Holdings is indirectly owned, through various holding companies, by Granite Energy, LLC (Granite) and Helix Generation, LLC (Helix). Gridiron Holdings is indirectly owned, through various holding companies, by Gridiron Energy, LLC (Gridiron).

On August 9, 2024, Gridiron, Helix, and Granite contributed 100% ownership interest in their respective generation facilities to the Company. Additionally on the same date, Helix contributed 100% ownership in Rise Light & Power, LLC and subsidiaries (Rise), which was formed to identify, evaluate, and develop investment opportunities within the power industry (collectively, "Contribution Transaction") (See Note 3). Rise maintains its dedicated workforce.

These consolidated financial statements reflect the period from August 9, 2024 through December 31, 2024 in accordance with the Contribution Transaction. These consolidated statements reflect all Company activity, which began with the Contribution Transaction.

The Generation Facilities that were included in the Company during 2024 are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Generation Facilities** | **Location** | **Size** | **Year<br> operational** | **Type** |
| Springdale Energy, LLC | Springdale, PA | 700 MW | 1999-2003 | Simple & Combined Cycle |
| Gans Energy, LLC | Gans, PA | 96 MW | 2000 | Simple Cycle |
| Chambersburg Energy, LLC | Chambersburg, PA | 100 MW | 2001 | Simple Cycle |
| Aurora Generation, LLC | Aurora, IL | 1,050 MW | 2001 | Simple Cycle |
| Rockford Generation, LLC | Rockford, IL | 550 MW | 2000/2002 | Simple Cycle |
| Armstrong Power, LLC | Shelocta, PA | 780 MW | 2002 | Simple Cycle |
| Troy Energy, LLC | Luckey, OH | 780 MW | 2002 | Simple Cycle |
| Helix Ironwood, LLC | Lebanon, PA | 760 MW | 2001 | Combined Cycle |
| LSP University Park, LLC | University Park, IL | 580 MW | 2002 | Simple Cycle |
| University Park Energy, LLC | University Park, IL | 330 MW | 2001 | Simple Cycle |
| Wallingford Energy, LLC | Wallingford, CT | 340 MW | 2002 | Simple Cycle |
| Riverside Generating Company, LLC | Lousia, KY | 950 MW | 1999 | Simple Cycle |
| Doswell Limited Partnership | Hanover County, VA | 1210 MW | 2001, 1992 | Simple & Combined Cycle |
| Helix Ravenswood, LLC | Queens, NY | 2002 MW | 1963 | Simple & Combined Cycle |
| Ocean State Power LLC | Burrillville, RI | 600 MW | 1990 | Combined Cycle |

---

6 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

**(2)** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Basis of presentation*** 

The consolidated financial statements and related notes are presented in accordance with U.S. generally accepted accounting principles (U.S. GAAP). These consolidated financial statements reflect the consolidated balance sheet as of December 31, 2024, consolidated statements of operations, member's equity, and cash flows of the Company for the period from August 9, 2024 to December 31, 2024. All intercompany transactions have been eliminated in the consolidated financial statements.

The reporting period begins on August 9, 2024, which is the date the equity interests of Granite, Gridiron, and Helix were contributed to the Company (See Note 3).

These consolidated financial statements and notes reflect the Company's evaluation of events occurring subsequent to December 31, 2024, through May 5, 2025, the date the consolidated financial statements were issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Use of Estimates*** 

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the consolidated financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to the valuation of acquired assets and assumed liabilities in connection with business combination, derivative instruments, and asset retirement obligations. Actual results could differ materially from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Restricted Cash*** 

Restricted cash consists of amounts that are restricted under the terms of certain financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Accounts Receivable*** 

Accounts receivable primarily consists of amounts owed to the Generation Facilities for electric energy delivered to independent system operators (ISO), including PJM Interconnection LLC (PJM), ISO-New England Inc. (ISO-NE), and New York Independent System Operator (NYISO) under the energy management agreements (see Note 8a). Accounts receivable also consists of amounts owed to the Generation Facilities from the ISOs for delivered capacity, as well as for hedge settlement fuel sales, and bilateral capacity settlements from energy marketers or other counterparties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Allowance for Doubtful Accounts*** 

Management establishes reserves on accounts receivable if it becomes probable that the Company will not collect part of the outstanding accounts receivable balance. Management reviews collectability and establishes or adjusts its allowance using the specific identification method.

7 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Inventory*** 

Inventory consists of fuel oil, natural gas, and spare parts used in the production of electricity. Inventory is stated at the lower of weighted average cost or net realizable value. The carrying value of both fuel oil and natural gas inventories will be recovered with normal profits in the ordinary course of business through the generation and sale of energy. As of December 31, 2024, spare parts inventory, natural gas, and fuel oil were $74.2 million, $521 thousand, and $47.8 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Property, Plant and Equipment*** 

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated remaining useful lives of individual assets or classes of assets. Plant and equipment are depreciated over the estimated useful life of the power generation facilities for 20 years. The estimated useful life for computer software is 3 years, computer hardware is 5 years, vehicles are 5 years, warehouse storage structure is 10 years, mechanical and electrical tools are 5 years and office equipment and furniture and fixtures are 7 years. Property, plant, and equipment also includes capital spares inventory available for use in planned major maintenance. Additions and improvements extending asset lives beyond their remaining estimated useful lives are capitalized, while repairs and maintenance, including planned major maintenance and capital spares, are charged to expense as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)***  ***Impairment of Long-Lived Assets*** 

In accordance with FASB ASC 360, *Property, Plant, and Equipment*, long-lived assets and intangible assets with determinable useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the costs to sell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i)***  ***Intangible Assets*** 

On Acquisition Date, the Company recorded an asset management agreement at fair value. The contract is recorded as an intangible asset on the accompanying consolidated balance sheet. The intangible asset is being amortized using the straight-line method over the term of the contract as a reduction in Energy and capacity revenues on the accompanying consolidated statement of operations. Amortization of the intangible asset for the period from August 9, 2024 to December 31, 2024 totaled $628 thousand. Amortization for each of the next five years is $1.6 million.

8 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j)***  ***Goodwill*** 

Goodwill represents, at the time of an acquisition, the amount of the purchase price paid in excess of the fair value of the net assets acquired (See Note 4). In accordance with FASB ASC 350, *Intangibles— Goodwill and Other* (ASC 350), the Company will evaluate goodwill for impairment on an annual basis and when events warrant an assessment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(k)***  ***Asset Retirement Obligations*** 

In accordance with ASC 410, *Asset Retirement Obligations and Environmental Obligations*, the Company recognizes the fair value of the liability for asset retirement obligations in the period in which it is incurred if a reasonable estimate of fair value can be made. An amount equal to the present value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the useful life of the asset. The liability is accreted through charges to Accretion in the accompanying consolidated statement of operations. If the obligation is settled for an amount other than the carrying amount of the liability, a gain or loss is recognized upon settlement. As of December 31, 2024, the Company has a liability of approximately $68.5 million for asset retirement obligations to provide for the future removal and dismantling of certain generation facilities. Accretion expense was $2.1 million for the period from August 9, 2024 to December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(l)***  ***Leases*** 

In accordance with FASB ASC 842, *Leases*, the Company evaluates each contract at inception to determine if it contains a lease. The Company considers a contract to be a lease when an asset is either explicitly or implicitly identified in the contract; and the contract conveys to the Company the right to control the use of the identified asset during the contract period. Operating leases are included in Operating lease right-of-use assets, net and Operating lease liabilities in the Company's consolidated balance sheet.

Operating lease right-of-use assets represent our right to use an underlying asset for the lease term, and operating lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Renewal options that are reasonably certain to be exercised are included in the lease term. In determining the present value of the future lease payments, the Company uses the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the payments for the lease. Short-term leases, leases with a term of 12 months are less at inception, are not recorded on the Company's consolidated balance sheet. Lease expenses for all operating leases are expensed on a straight-line basis over the lease term on the Company's consolidated statement of income. (See Note 9).

9 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(m)***  ***Debt Issuance and Deferred Financing Costs*** 

Debt issuance and deferred financing costs are amortized over the term of the Company's financing arrangements using effective interest method. Unamortized debt issuance and deferred financing costs are reflected as a components of Current portion of long term debt and Long term debt on the accompanying consolidated balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(n)***  ***Regional Greenhouse Gas Initiative Allowances*** 

Certain Generation Facilities are located in states that participate in the Regional Greenhouse Gas Initiative (RGGI) to reduce greenhouse gas emissions. The Company is required to possess RGGI allowances equal to its CO2 emissions over a three-year control period. The Company must hold allowances equal to 50% of its emissions during each interim control period (the first two calendar years of each three-year control period), and 100% of all three years' allowances must be surrendered by March 1 after the three-year control period. The Company records RGGI allowances as other current assets or other current liabilities at the weighted-average cost or fair market value, respectively, on the accompanying consolidated balance sheet.

Due to market fluctuations in value, the value of the liability for the RGGI allowances recorded on the Company's accompanying consolidated balance sheet may not reflect the final cost of the surrendered RGGI allowances. RGGI allowances are charged to Fuel and transportation on the accompanying consolidated statement of operations when the Generation Facility operates. As of December 31, 2024, the Company had a RGGI allowance liability of $23.3 million, which is included in Other current liabilities on the accompanying consolidated balance sheet. For the period from August 9, 2024 to December 31, 2024, RGGI allowance expense was $16.7 million, which is reflected as a component of Fuel and transportation expense in the accompanying consolidated statement of operations.

The Company enters into futures contracts whereby the Company agrees to purchase RGGI allowances at a fixed price to be physically delivered on a future date. These contracts meet the definition of a derivative in accordance with ASC 815, *Derivatives and Hedging* (ASC 815) (see Note 11).

10 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o)***  ***Revenue Recognition*** 

Capacity revenue is recognized over time as the Company satisfies its performance obligation of maintaining available generation capacity at negotiated contract terms. Energy revenue consists of physical and financial transactions and is recognized when the performance obligation is satisfied upon delivery of electricity to customers. Physical transactions are recorded on a gross basis in accordance with ASC 606, *Revenue from Contracts with Customers* (ASC 606), as the Company controls the specified electricity before transfer to customers. The Company has elected to apply the practical expedient to recognize revenue in the amount it has the right to invoice for both capacity and energy revenue, as this represents the value transferred to customers. For the period from August 9, 2024 to December 31, 2024, capacity revenue amounted to $162.6 million, which is reflected as a component of Energy and capacity revenues in the accompanying consolidated statement of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(p)***  ***Derivative Financial Instruments*** 

The Company enters into agreements that meet the definition of a derivative in accordance with ASC 815. These agreements are entered into to mitigate or eliminate market and financial risks. ASC 815 provides for three different ways to account for derivative instruments: (i) as an accrual agreement, if the criteria for the "normal purchase normal sale" exception are met and documented;(ii) as a cash flow or fair value hedge, if the specified criteria are met and documented; or (iii) as a mark-to-market agreement with changes in fair value recognized in current period earnings. All derivative instruments that do not qualify for the normal purchase normal sale exception are recorded at fair value in risk management assets and liabilities on the accompanying consolidated balance sheet.

11 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

If designated as a cash flow or fair value hedge, the Company documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy. This process includes linking all derivatives that are designated as hedges to specific assets or liabilities on the accompanying consolidated balance sheets or to forecasted transactions. The Company also assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. This could occur when: (1) it is determined that a derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; or (3) the derivative is discontinued as a hedging instrument, because it is unlikely that a forecasted transaction will occur. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective hedge of cash flows, the derivative will continue to be carried at fair value on the accompanying consolidated balance sheet and the gains and losses that were accumulated in other comprehensive income are recognized immediately or over the remaining term of the forecasted transaction in the accompanying consolidated statement of operations.

Changes in the fair value of derivative instruments are either recognized in the accompanying consolidated statement of operations or consolidated statement of comprehensive income as a component of other comprehensive income, depending upon their use and designation.

Gains and losses related to transactions that qualify for hedge accounting are recorded in the accompanying consolidated statement of comprehensive income as a component of other comprehensive income and shown in the aggregate in accumulated other comprehensive income (AOCI) in the accompanying consolidated statement of member's equity and will flow through the accompanying consolidated statement of operations in the period the hedged item affects earnings.

Otherwise, any gains and losses resulting from changes in the market value of the derivative instruments contracts are recorded in the accompanying consolidated statement of operations in the current year.

The Company has no items of other comprehensive income for the period presented and, accordingly, comprehensive income is equal to net income.

12 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(q)***  ***Fair Value Measurements*** 

Fair value, as defined in ASC 820, *Fair Value Measurements and Disclosures* (ASC 820), is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(r)***  ***Fair Value of Financial Instruments*** 

The carrying amounts of Restricted cash, Accounts receivable, and Accounts payable and accrued expenses are equal to or approximate their fair values due to the short-term maturity of those instruments.

Long-term debt consists of a variable term loan and fixed rate notes. The carrying value and fair value of the variable term loan were both $1.75 billion as of December 31, 2024, as the interest rates are variable. The carrying amount and fair value of the fixed rate notes were $1.5 billion and $1.44 billion, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(s)***  ***Equity Method Investments*** 

In accordance with ASC 323*, Investments Equity Method and Joint Ventures*, the Company applies the equity method of accounting to investments in which it has significant influence, but not a controlling financial interest (see Note 5). Under the equity method, the Company initially records the investment at cost and adjusts the carrying amount to recognize the Company's share of the earnings or losses of the investee after the acquisition date. The Company's share of the investee's earnings or losses is recognized in the Company's income statement. Distributions received from the investee reduce the carrying amount of the investment. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(t)***  ***Income Taxes*** 

The Company consists of entities that have been organized as a limited liability company and is treated as a disregarded entity for federal and state income tax purposes. Therefore, federal and state income taxes are assessed at the member's level.

13 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(u)***  ***Concentrations of Credit and Market Risk*** 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of restricted cash, accounts receivable, and derivatives. Restricted cash accounts are generally held at major institutions. Accounts receivable is concentrated within entities engaged in the energy industry. These industry concentrations may impact the Company's overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic, industry, or other conditions.

The Company is exposed to credit losses in the event of noncompliance by counterparties on its derivative financial instruments. The counterparties to these transactions are major financial institutions. The Company does not require collateral or other security to support its financial instruments with credit risk. For the period August 9, 2024 to December 31, 2024, 93%, 2%, and 5% of revenues consisted of sales to ISOs, bilateral sales, and hedge settlements, respectively. All revenues are subject to geographical market risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(v)***  ***Risks and Uncertainties*** 

The Company is subject to a variety of factors, including the economy, the regulatory environment, the electricity markets, and the availability of capital resources. As with any power generation facility, operations of the Company's Generation Facilities involve risk, including the performances of the facilities below expected levels of efficiency and output, shut downs due to the breakdown or failure of equipment or processes, violations of permit requirements, operator error, labor disputes, weather interferences, or catastrophic events such as fires, earthquakes, floods, explosions, pandemics, or other similar occurrences affecting a power generation facility or its power purchasers. The occurrence of any of these events could significantly reduce or eliminate revenues generated by the facilities or significantly increase the expenses of the facilities, adversely impacting the Company's ability to make payments of principal and interest on its debt when due.

14 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(w)***  ***Commitments and Contingencies*** 

In accordance with ASC 450, *Contingencies*, the Company records a loss contingency for matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Loss contingency reserves are based on estimates and judgments made by management with respect to the likely outcome of matters, including any applicable insurance coverage for litigation matters, and are adjusted as circumstances warrant. These estimates and judgments could change based on new information, changes in laws or regulations, changes in management's plans or intentions, the outcome of legal proceedings, settlements or other factors.

Additionally, the Company follows the guidance of ASC 460, *Guarantees* (ASC 460), for disclosing and accounting of guarantees and indemnifications entered into during the course of business. When a guarantee or indemnification subject to ASC 460 is entered into the estimated fair value of the guarantee or indemnification is assessed. Some guarantees and indemnifications could have a financial impact under certain circumstances. Management considers the probability of such circumstances occurring when estimating fair value.

**(3)** **Acquisition** 

On August 9, 2024 (Acquisition Date), the Company acquired 100% interest in certain generation facilities in connection with the Contribution Transaction (See Note 1). The Company was the accounting acquirer in the transaction as it was a substantive entity and obtained controlling financial interests, as defined in ASC 810, in each of the Generation Facilities via the contribution of their equity in exchange for the equity of the Company, and the transaction was not among entities under common control. The Company recognized transaction costs of approximately $8.8 million within selling, general, and administrative expenses in the consolidated statement of operations.

In accordance with ASC 805, *Business Combinations* (ASC 805), the acquisition was determined to be a business combination and the acquired assets and assumed liabilities were recorded at fair value, which resulted in Net assets acquired of $4.5 billion as of the Acquisition Date. The excess of the purchase price over the fair value of identifiable net assets acquired was recorded as goodwill (See Note 4).

Fair values were determined primarily by an independent third-party valuation. The measurement approach utilized to fair value the assets acquired was the income approach using a discounted cash flow model for property, plant and equipment, intangible assets and asset retirement obligations*.*** The fair values of property, plant and equipment, intangible assets, as well as other assets and liabilities have been finalized based on the facts and circumstances that existed as of the Acquisition Date. The fair value of long term debt approximated its book value as of August 9, 2024 as the interest rates are variable, with the exception of fixed rate notes (See Note 10). Derivative instruments were valued in accordance with the Company's policy as of the acquisition date. For the remaining of the net assets acquired, book value approximated fair value given the short-term nature and quick turn of the related assets and liabilities.

15 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

The following table summarizes the fair values of assets acquired and liabilities assumed at the Acquisition Date (in millions):

---

| | |
|:---|:---|
| **Assets Acquired:** |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $164 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 101 |
| &nbsp;&nbsp;&nbsp;Inventory | 125 |
| &nbsp;&nbsp;&nbsp;Loan receivable | 133 |
| &nbsp;&nbsp;&nbsp;Other current assets | 249 |
| &nbsp;&nbsp;&nbsp;Intangible assets | 32 |
| &nbsp;&nbsp;&nbsp;Goodwill | 128 |
| &nbsp;&nbsp;&nbsp;Property, plant, and equipment | 6836 |
| &nbsp;&nbsp;&nbsp;Other noncurrent assets | 314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets acquired | 8082 |
| **Liabilities Assumed:** |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 176 |
| &nbsp;&nbsp;&nbsp;Short term debt | 13 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 306 |
| &nbsp;&nbsp;&nbsp;Asset retirement obligations | 66 |
| &nbsp;&nbsp;&nbsp;Long term debt | 2460 |
| &nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities assumed | 3552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net asset acquired | 4530 |

---

16 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

**(4)** **Goodwill** 

As part of the business combination completed on Acquisition Date and accounted for under ASC 805, the Company recognized goodwill of $128 million.

The recognized goodwill is predominantly attributable to the acquired Rise development platform that did not meet the recognition criteria for separate identifiable intangible assets under ASC 805 and ASC 350. The development platform incorporates the underlying processes, expertise, and capabilities that enable Rise to utilize interconnection and other arrangements of a certain generation facility for future growth initiatives. While not separately recognizable under U.S. GAAP, these initiatives represent significant future economic benefits expected to be derived from the integration of the acquired development platforms.

Management applies judgment in assessing the recoverability of goodwill. Goodwill is not amortized but is subject to an annual impairment test in accordance with ASC 350, or more frequently if events or changes in circumstances indicate potential impairment.

**(5)** **Equity Method Investment** 

The Company holds a 16.3% equity interest in Attentive Energy LLC (Attentive). The Company accounts for this investment using the equity method of accounting as the Company exercises significant influence, but not control over the Attentive's operating and financial policies. At the Acquisition Date, the Company performed a fair value assessment of this investment and determined the fair value to be $0. There was no material operating activity in Attentive from the Acquisition Date through December 31, 2024 and the investment's carrying value remained at $0 as of December 31, 2024. See Note 7 regarding loan receivable from Attentive.

**(6)** **Property, Plant and Equipment** 

Property, plant and equipment are stated at cost less accumulated depreciation. As of December 31, 2024, Property, plant and equipment, net consisted of the following (in thousands):

---

| | |
|:---|:---|
| Land and improvements | $100440 |
| Plant and equipment | 6683094 |
| Capital spares | 46933 |
| Computer software and hardware | 922 |
| Office furniture and equipment | 240 |
| Equipment and tools | 735 |
| Construction in progress | 23066 |
| Warehouse storage | 162 |
| Vehicles | 246 |
| &nbsp;&nbsp;&nbsp;Total property, plant and equipment | 6855838 |
| Accumulated depreciation | (132209) |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | $6723629 |

---

17 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

For the period from August 9, 2024 to December 31, 2024, depreciation expense for property, plant and equipment was approximately $132.2 million.

**(7)** **Other Noncurrent Assets** 

Other noncurrent assets primarily consists of initial loan that was made by Rise to Attentive. The loan accrues interest at 7% per annum and expires December 31, 2027. As of December 31, 2024, the Company had a loan receivable of $135.9 million plus accrued interest.

**(8)** **Facility and Contract Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Energy Management Agreements*** 

The Company has entered into several energy management agreements (EMAs) with various counterparties to provide comprehensive power management services, including scheduling, dispatch, and delivery of energy, as well as fuel and risk management services for its generation facilities. These counterparties are responsible for scheduling the natural gas supply required to operate the respective generation facilities and coordinating the sale of power, capacity, and ancillary services.

For the period from August 9, 2024 to December 31, 2024, the Company incurred costs under the EMAs of $1.5 million, which is recorded in General and administrative expense on the accompanying consolidated statement of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Operation and Maintenance Agreements*** 

The Company has entered into several operations and maintenance (O&M) agreements with various counterparties to provide comprehensive operation and maintenance services for its generation facilities. Under these agreements, the Company pays a fixed monthly operating fee, which is subject to an annual adjustment based on specified indices. Additionally, the Company pays an annual incentive fee and reimburses the operators for all labor costs, including payroll, related taxes, and other incurred costs.

For the period from August 9, 2024 to December 31, 2024, the Company incurred fixed costs under the O&M agreements of $2.0 million, which are recorded under General and administrative expenses, and incurred $27.5 million of other labor costs, which is recorded in Operating and maintenance expense in the accompanying consolidated statement of operations. Under the terms of a certain agreement, the Company issued Letters of Credit (LOC) in the amount of $2.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Asset Management and Fuel Supply Agreements*** 

The Company has entered into several asset management and fuel supply agreements with various counterparties to provide fuel transportation and management services to the Generation Facilities. The following summarizes the terms in those agreements:

Certain Generation Facilities have separate fuel supply agreements with Sequent Energy Management, L.P. (Sequent). This agreement calls for Sequent to provide certain fuel management services and to be the gas supplier to the plant. Quantities purchased will be agreed between the plant and Sequent on the applicable pipelines and will be priced according to the transaction confirm in the contract.

18 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

Certain Generation Facilities have separate fuel supply agreements with NRG Business Marketing, LLC (NRG). This agreement calls for NRG to provide certain fuel management services and to be the gas supplier to the plant. Quantities purchased will be agreed between the plant and NRG on the applicable pipelines and will be priced according to the transaction confirm in the contract.

Springdale Energy, LLC (Springdale) has an asset management with Range Resources-Appalachia, LLC (Range). The Company shall release to Range the firm transportation capacity an amount specified in the agreement. Range agrees to pay the Company for each month of the term of the released capacity. Released capacity must be used by Range to first serve gas supply obligations to Springdale to the delivery point and shall have the right to utilize the remainder for its purposes.

Chambersburg Energy, LLC has a fuel supply agreement with Shell Energy North America (US), L.P. (Shell). This agreement calls for Shell to schedule gas with Texas Eastern Transmission Corporation for deliveries to the delivery points. This contract may be terminated on 30 Days written notice but shall remain in effect until the expiration of the latest delivery period.

Riverside Generating Company, LLC has a fuel supply agreement with NextEra Energy Marketing, LLC (NextEra). This agreement calls for NextEra to schedule gas with Tennessee Gas Pipeline Company, LLC for deliveries to the delivery points. This contract expires October 31, 2025 and has automatic one year renewal periods until either party cancels.

Armstrong has a call option agreement with BP Energy Company to buy natural gas at an index price plus transportation charges for a maximum daily amount specified in the agreement. For the period from August 9, 2024 to December 31, 2024, the Company incurred costs under the physical gas call option agreements of $974 thousand, which is recorded in Fuel and transportation expense in the accompanying consolidated statement of operations.

For the period from August 9, 2024 to December 31, 2024, the Company incurred costs under the asset management and fuel supply agreements of $152.5 million, which is recorded in Fuel and transportation expense in the accompanying consolidated statements of operations. Under the terms of a certain agreement, the Company issued a LOC in the amount of $400 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Gas Transportation and Storage Agreements*** 

Certain Generation Facilities have firm gas transportation and storage agreements with various counterparties. These agreements call for the counterparties to deliver natural gas, not to exceed the daily maximum, to a specific interconnection point, specified in the respective agreements.

19 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

Helix Ravenswood, LLC (Ravenswood) has gas transportation, balancing service, and fuel oil agreements with Consolidated Edison Company of New York, Inc. ("Con Edison"). The gas transportation and balancing service agreement with Con Edison allows for an agreed upon amount per day, with Ravenswood paying fixed and variable charges, continuing month-to-month unless terminated. The fuel oil supply agreement with Con Edison involves Ravenswood supplying, storing, and handling fuel oil, with Con Edison paying handling fees and costs based on delivery quantities, expiring in 2098 or when certain facilities cease operations. Furthermore, Ravenswood has a contract with Con Edison and NYISO to use fuel oil instead of natural gas for electricity generation, with NYISO providing fixed monthly payments. During the period from August 9, 2024 to December 31, 2024, the Company earned $9.5 million, which are recorded as Other revenue on the accompanying consolidated statement of operations.

For the period from August 9, 2024 to December 31, 2024, the Company incurred costs under the gas transportation agreements of $24.7 million, which is recorded in Fuel and transportation expense in the accompanying consolidated statements of operations. Under the terms of certain agreements, the Company issued LOCs totaling $29.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Equipment Maintenance Agreements*** 

Helix Ironwood, LLC (Ironwood) has a term warranty contract (TWC) with Siemens Energy, Inc. (Siemens) for outage procedures on turbine and generator components, expiring at the earlier of a major inspection or December 31, 2049, with fees based on time and milestones and paid quarterly. The long-term service agreements (LTSA) with GE International (GE) for Armstrong Power, LLC (Armstrong) and Troy Energy, LLC (Troy) expired December 2024. Armstrong has a maintenance service agreement (MSA) with GE that expires in December 2027 and can be renewed on mutual agreement. Troy's MSA with GE expired December 2024. The MSA is a bundled service agreement that involves fixed quarterly fees. Springdale's long-term service agreement with Siemens, expiring by the third major outage or December 31, 2032, includes similar fee structures and potential extensions.

Doswell Limited Partnership (Doswell) and Siemens has an LTSA that provides for outage procedures on certain combustion turbine components. The LTSA term expires on the earlier of the date on which the scheduled 2nd major outage procedures have been completed or September 28, 2030. Doswell pays for these services on a monthly basis based on operating hours multiplied by a contracted rate, subject to escalation, as well as pay periodic fixed milestone payments.

Ravenswood has a contractual services agreement (CSA) with GE for outage procedures on gas combustion turbine components, expiring at the earlier of the fourth major outage or 225,000 operating hours, or October 3, 2036. Initially, Ravenswood makes quarterly payments in arrears based on operating hours at a contracted rate, subject to escalation.

Payments for LTSAs, TWC, and CSA are deferred as prepaid expenses until maintenance occurs, while Armstrong and Troy's payments are expensed quarterly. For the period from August 9, 2024 to December 31, 2024, the Company made payments totaling $11.6 million under the TWC, MSAs, and LTSAs. The Springdale LTSA and Ironwood TWC costs incurred have exceed the cumulative payments made and accordingly the net excess in the amounts of $9.9 million and $12.8 million is reflected as a component of Accounts Payable and accrued expenses and Other long term liabilities, respectively, in the accompanying consolidated balance sheets. Conversely, the Ravenswood CSA and Doswell LTSA payments made have exceeded the cumulative costs and accordingly the net excess in the amounts of $14.2 million is reflected as a component of Other current assets in the accompanying consolidated balance sheet.

20 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Capacity Agreements*** 

The Company has several agreements to sell capacity to various counterparties. These agreements enable certain Generation Facilities to sell to various counterparties a fixed quantity of capacity at a fixed price for a certain period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Electric and Gas Interconnection Agreements*** 

The Company has electric interconnection agreements with PJM, ISO -NE, Con Edison, National Grid and other counterparties that connect the Generation Facilities to the electrical power grid. The agreements continue in effect indefinitely until terminated. The Company has gas interconnection agreements with various counterparties that connect the Generation Facilities to their respective natural gas pipelines. The agreements continue in effect indefinitely until terminated. For the period from August 9, 2024 to December 31, 2024, the Company did not incur maintenance costs relating to the electric and gas interconnection agreements.

The Company has various long term contractual and commercial commitments of which the significant contracts have been discussed in this note and note 6, which further discusses lease agreements. The following table summarizes the obligations with respect to the significant contractual and commercial commitments, including lease agreements, as of December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| <br>**Contractual obligations** | **Less than**<br>**1 year** | **More than**<br>**5 years** |<br>**Total** |
| Energy management agreements | $3843 | 62435 | 81978 |
| Operation and maintenance agreements | 3677 | 73388 | 92780 |
| Equipment maintenance agreements | 26238 | 331448 | 481351 |
| Gas transportation agreements | 51245 | 615519 | 866812 |
| Physical call option agreements | 1305 |  | 1627 |
| Lease agreements | 2492 | 28730 | 40995 |
| &nbsp;&nbsp;&nbsp;Total | $88800 | 1111520 | 1565543 |

---

21 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

**(9)** **Leases** 

The Company has various operating leases for land, storage, and office equipment. These include a lease for 21.2 acres of land from Rock River Valley Industrial Park, Inc. for the Rockford generation facility, which includes easements for operating a simple cycle generation facility. This lease, expiring on December 31, 2039, is payable on an annual basis subject to a 3% escalation. Additionally, the Company leases 8.5 acres from the Town of Wallingford, expiring in January 2040, and holds several land leases for the Riverside generation facility, expiring in 2040 and 2041, with monthly payments subject to escalation.

For office space, the Company entered into a 5-year and 6-year lease on December 30, 2021, which includes a 5-year renewal option. Lease payments are made monthly, and renewal options that are reasonably certain to be exercised are included in the lease term. The Company does not have any leases with variable payments or residual value guarantees.

As of December 31, 2024, annual payments based on the maturities of the Company's operating leases are expected to be as follows (in thousands):

---

| | |
|:---|:---|
| **Lease cost (in thousands)** |  |
| Operating lease cost | $1165 |
| Short-term lease cost | 152 |
| &nbsp;&nbsp;&nbsp;Total lease cost | $1317 |
| **Other information (in thousands):** |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |
| Operating cash flows from operating leases | $968 |
| Weighted-average remaining lease terms (in years) | 15 |
| Weighted-average discount rate | 5.17% |

---

As of December 31, 2024, annual payments based on the maturities of the Company's operating leases are expected to be as follows (in thousands):

---

| | |
|:---|:---|
| 2025 | $2491 |
| 2026 | 2553 |
| 2027 | 2451 |
| 2028 | 2352 |
| 2029 | 2417 |
| Thereafter | 28728 |
| Total operating lease payments | 40992 |
| &nbsp;&nbsp;&nbsp;Less: present value adjustment | (12900) |
| Total operating lease liabilities | $28092 |

---

22 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

**(10)** **Financing Arrangements** 

On Acquisition Date, the Company assumed existing debt obligations with a principal amount of $2.5 billion as part of the acquisition (See Note 3). The assumed debt consisted of $2.1 billion in variable rate loans with interest rates based on SOFR plus spreads ranging from 2.75% to 4.75%, and $458 million in fixed rate notes with interest rates of 5.64%. In accordance with ASC 805, the variable rate loans were recorded at their carrying value as their carrying value approximated fair value at the Acquisition Date. On Acquisition Date, the fixed rate notes were recorded at their fair value of $441 million.

On August 16, 2024 (Finance Date), the Company established new financing arrangements to facilitate the repayment of the long term debt assumed in the Acquisition (See Note 3), pay transaction costs, pay to partially offset certain commodity derivatives (See Note 11), and make a $513.8 million distribution. The loss on debt extinguishment of $17 million on the fixed rate notes was recognized in Interest expense, net in the accompanying consolidated statement of operations.

Our financing arrangements consisted of the following as of December 31, 2024 (in thousands):

---

| | |
|:---|:---|
|  | **December 31,**<br>**2024** |
| Term Loan | $1728125 |
| Secured Notes | 1500000 |
| Revolving Facility | 21000 |
| Unamortized debt issuance costs and discount | (63983) |
| &nbsp;&nbsp;&nbsp;Total long-term debt | 3130185 |
| Current portion of Term Loan | 17500 |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of financing fees | 3202642 |

---

&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Credit Agreement*** 

On August 16, 2024, the Company entered into a credit agreement (Credit Agreement) with various lenders. The Credit Agreement consists of a term loan totaling $1.75 billion (Term Loan) and revolving loan facility of $600 million (Revolving Facility). The maturity date of the Term Loan and the Revolving Facility is August 16, 2031, and August 16, 2029, respectively. The interest rate for the Term Loan is equal to the SOFR rate plus a margin of 3.25%. The interest rate in effect at December 31, 2024 for the Term Loan was 7.58%.

Under the terms of the Credit Agreement, principal on the Term Loan is paid quarterly commencing on December 31, 2024, in an amount equal to 0.25% of the original outstanding principal. Each quarter, commencing in December 2025, a percentage, based on the first lien net leverage ratio, of the excess cash flows are applied to repay a portion of the outstanding Term Loan, after such, the Company is permitted, subject to meeting certain distribution conditions, to distribute the remaining excess cash. The Company is required to prepay the Term Loan with 25% of any remaining excess cash flow if the first lien leverage ratio exceeds 3.50 but is less than 4.25, 50% of any remaining excess cash flow if the first lien leverage ratio exceeds 4.25 but is less than 5.50, and 75% of any remaining excess cash flow if the first lien leverage ratio exceeds 5.50. Additionally for each quarter, the Company is required to maintain at least a 1.10 fixed charge coverage ratio.

23 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

Under the terms of the Credit Agreement, the Company includes the receipt of revenues, debt service payments and the payments for certain categories of expenses in one bank account. The Company has established the required bank account and has pledged all its rights, title and interest in the bank account as security for its payment obligations under the Credit Agreement.

As of December 31, 2024, there was $1.75 billion outstanding under the Credit Agreement and $60 million and $21 million of LOCs and borrowing, respectively, outstanding under the Revolving Facility.

As of December 31, 2024, the unamortized debt issuance and deferred financing costs totaled $64 million. The amortization of these costs is reflected as a component of Interest expense, net on the accompanying consolidated statement of operations. For the period August 9, 2024 to December 31, 2024, amortization of such costs totaled $3.3 million.

As of December 31, 2024, minimum principal payments for the next five years for the term loans are as follows (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2026** | **2027** | **2028** | **2029** |
| Minimum principal payments | $17500 | 17500 | 17500 | 17500 | 17500 |

---

&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Notes Indenture*** 

On August 16, 2024, the Company entered into an notes indenture with various lenders, which consists of senior secured notes (Secured Notes) totaling $1.5 billion with a maturity date of August 15, 2032. The fixed interest rate on the Secured Notes is 7.25% and is paid semi-annually in arrears on and of each year, commencing on February 15, 2025. The principal amount of the Secured Notes will be paid in full on maturity unless the Company chooses to early redeem.

**(11)** **Derivative Instruments and Hedging Activities** 

The Company enters into commodity derivatives to reduce its exposure to market fluctuations of energy prices and gas prices. The Company is a party to the following derivative instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Heat Rate Call Options*** 

The Company entered into several daily financial heat rate call option contracts with various counterparties. The contracts provided for receipt of fixed option premium payments by the Company, net of energy settlements based on a fixed heat rate, power reference index price, gas reference index price, and certain energy prices. The heat rate call option is marked to market with changes in fair value recognized in current period earnings.

24 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Commodity Derivatives*** 

The Company enters into various energy related derivatives to manage the commodity price risk associated with power revenue and fuel costs for the Generation Facilities, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap Contracts, which require payments to or from counterparties
based upon the difference between the contract and the market price for a predetermined notional amount. These contracts are used to
manage commodity price risk associated with changes in the ISOs power prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap Contracts, which require payments to or from counterparties
based upon the difference between the contract and the market price for a predetermined notional amount. These contracts are used to
manage commodity price risk at multiple delivery points associated with changes in fuel prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Capacity Contracts, which require payments from counterparties
based upon the difference between the contract and the market price for a predetermined notional amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Option Contracts, which provide the Company the ability to buy
or sell power at a fixed price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) RGGI Contracts, which two parties agree to exchange a fixed number
of allowances of a certain vintage year at a fixed price for a specific delivery month.

On Finance Date, the Company entered into an agreement with a counterparty to enter into new power and gas swap contracts that had the economic effect of bringing certain existing power and gas swap contracts to an overall net value of zero while maintaining original counterparty arrangements. The Company paid $245.6 million as part of this arrangement, which was recorded as risk management assets and liabilities.

The Power Swap Contracts, Gas Swap Contracts, Capacity Contracts, Option Contracts, Heat Rate Call Option Contracts, and RGGI Contracts are entered into as part of the Company's overall hedging strategy with respect to commodity price risk associated with energy gross margin. The Company records changes in the fair value of the commodity derivatives in the accompanying consolidated statements of operations in the current period.

The Company's outstanding net position as of December 31, 2024 is summarized in the following table (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2026** | **2027** | **2028** | **2029** |
| Power Swap Contracts (MWh) | Sell | 15706 | 9294 | 7879 | – |  |
| Gas Swap Contracts (MMBTU) | Buy | 121594 | 71056 | 56995 | – |  |
| Capacity Contracts (MW) | Sell | 10918 | 5085 | 655 | – |  |
| Call Options (MWh) | Sell | 100800 |  |  | – |  |
| RGGI Futures Contracts (CO2 Tons) | Buy | 315 | 1500 | 2500 | – |  |
| Heat Rate Call Options (MW) | Sell | 400 |  |  | – |  |

---

25 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

***Fair Value Measurements***

The following table sets forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of December 31, 2024. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

· Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

· Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and agreement prices for the underlying instruments, as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

· Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

The following table presents assets and liabilities measured and recorded at fair value on the Company's consolidated balance sheet and their level within the fair value hierarchy as of December 31, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity Derivatives | $— | 57184 |  | 57184 |
| Capacity Contracts |  | (1333) |  | (1333) |
| Call Options |  | (875) |  | (875) |
| Heat Rate Call Options |  |  | (44047) | (44047) |
| RGGI Contracts |  | 10117 |  | 10117 |
| &nbsp;&nbsp;&nbsp;Assets (liabilities) from risk management activities, net | $— | 65093 | (44047) | 21046 |

---

26 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

For the period from August 9, 2024 to December 31, 2024, the Company did not have any transfers between Levels 1, 2, or 3.

---

| | |
|:---|:---|
| **Fair value measurements using significant**<br>**unobservable inputs (Level 3)** | **2024** |
| Balance – Beginning of Period – August 9, 2024 | $(71942) |
| Unrealized gain on risk management activities | 18963 |
| Premiums | (13589) |
| Settlements | 22521 |
| Balance – Ending balance – December 31, 2024 | $(44047) |

---

The following tables provide quantitative information for financial instruments classified as Level 3 in the fair value hierarchy for the period from August 9, 2024 to December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Valuation**<br>**Technique** | <br>**Significant Inputs** | **Average/**<br>**Range**<br>**2024** | <br>**Units** |
| Heat rate call options | Model | Electricity regional prices | $51.81 | Dollars/MWH |
|  |  | Natural gas prices | $3.53 | Dollars/MMBtu |
|  |  | Power price volatility | 36.7% |  |
|  |  | Gas price volatility | 52.3% |  |

---

The following tables present information concerning the impact of derivative instruments on the accompanying consolidated balance sheets and consolidated statements of operations.

***Impact of Derivative Instruments on the Accompanying Consolidated Balance Sheets***

The following tables present the classifications and fair value of derivative instruments on the accompanying consolidated balance sheets as of December 31, 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| **Instrument** | **Balance sheet location** | **2024** |
| Derivatives not designated as hedging activities: | Derivatives not designated as hedging activities: |  |
| Call Options | Liabilities from risk-management activities – short term | $(875) |
| Heat rate call options | Liabilities from risk-management activities – short term | (44047) |
| Commodity Derivatives | Assets from risk-management activities – short term | 398736 |
| Commodity Derivatives | Assets from risk-management activities – long term | 652738 |
| Commodity Derivatives | Liabilities from risk-management activities – short term | (349842) |
| Commodity Derivatives | Liabilities from risk-management activities – long term | (644448) |
| Capacity contracts | Assets from risk-management activities – short term | 25169 |
| Capacity contracts | Assets from risk-management activities – long term | 8770 |
| Capacity contracts | Liabilities from risk-management activities – short term | (19902) |
| Capacity contracts | Liabilities from risk-management activities – long term | (15370) |
| RGGI Contracts | Assets from risk-management activities – short term | 464 |
| RGGI Contracts | Assets from risk-management activities – long term | 9653 |
| &nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | &nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | 21046 |
| &nbsp;&nbsp;&nbsp;Total derivatives, net asset | &nbsp;&nbsp;&nbsp;Total derivatives, net asset | $21046 |

---

27 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

***Impact of Derivative Instruments on the Accompanying Consolidated Statements of Operations***

The following table presents the classification and amount of the gains and losses on derivative instruments in the accompanying consolidated statements of operations for the period from August 9, 2024 to December 31, 2024.The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

---

| | | |
|:---|:---|:---|
| | | **Amount of gain<br> (loss) in income on<br> derivative for the<br> period ended<br> December 31,** |
| <br>**Instrument** | **Location of gain (loss) recognized in income on**<br>**derivatives** | **2024** |
| Derivatives not designated as hedges: |  |  |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - power | Gain on risk management activities | $(39880) |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - gas | Gain on risk management activities | 103706 |
| &nbsp;&nbsp;&nbsp;Capacity contract | Gain on risk management activities | 39021 |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Gain on risk management activities | 27895 |
| &nbsp;&nbsp;&nbsp;RGGI Contracts | Gain on risk management activities | (11652) |
| Total gain in income on derivatives |  | $119090 |

---

***Offsetting of Derivative Assets and Liabilities***

The Company has elected to present derivative assets and liabilities on the balance sheets by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying consolidated balance sheet December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**December 31, 2024** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments as of**<br>**December 31, 2024** |<br>**Net amounts after**<br>**offset as of**<br>**December 31, 2024** |
| Assets from risk management activities | $1095530 | (233047) | 862483 |
| Liabilities from risk management activities | (1074484) | 233047 | (841437) |
| &nbsp;&nbsp;&nbsp;Net risk management activities | $21046 |  | 21046 |

---

28 (Continued)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

For the period from August 9, 2024 to December 31, 2024

**(12)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. These costs are not allocated to the Company. For the period from August 9, 2024 to December 31, 2024, the Company made payments of $5.9 million to an affiliate for costs related to the operation and management of the Company, which are reflected under General and administrative in the accompanying statement of operations.

**(13)** **Member's Equity** 

Profits, losses, and distributions are allocated in accordance with the provisions of the Company's Limited Liability Company agreement. During the period from August 9, 2024 to December 31, 2024, the Company made contributions and distributions in the amount of $9.8 million and $633.7 million, respectively.

**(14)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote. The Company, from time to time, is a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's consolidated financial position, results of operations, or cash flows.

## Exhibit 99.3

**Exhibit 99.3**

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Financial Statements <br> As of June 30, 2025 and December 31, 2024, <br> For the three and six months ended June 30, 2025

(Unaudited)

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **As of June 30, 2025** | **As of December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Assets** | $— | $— |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | 49472 | 59498 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 167641 | 103062 |
| &nbsp;&nbsp;&nbsp;Accounts receivable – affiliates | 1253 | 1253 |
| &nbsp;&nbsp;&nbsp;Inventory | 126386 | 122547 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 30814 | 28161 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 500895 | 424369 |
| &nbsp;&nbsp;&nbsp;Deposits | 33144 | 26323 |
| &nbsp;&nbsp;&nbsp;Other current assets | 20732 | 14216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 930337 | 779429 |
| Property, plant, and equipment | 6867158 | 6855838 |
| Accumulated depreciation | (299821) | (132209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | 6567337 | 6723629 |
| Intangible assets, net | 30962 | 31772 |
| Assets from risk management activities, long term | 537097 | 671161 |
| Operating lease right-of-use assets, net | 26837 | 27609 |
| Goodwill | 127985 | 127985 |
| Other noncurrent assets | 135907 | 135907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**8356462** | $**8497492** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Liabilities and Member's Equity** |  |  |
| Current liabilities: | $— | $— |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 8374 | 8474 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 194798 | 189495 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 525971 | 414666 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 2167 | 6243 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities ST | 1373 | 1310 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 42935 | 25310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 775618 | 645498 |
| Long term debt | 3211506 | 3194168 |
| Liabilities from risk management activities | 536591 | 659818 |
| Asset retirement obligations | 71098 | 68502 |
| Operating lease liabilities LT | 25983 | 26782 |
| Other long term liabilities | 9260 | 12799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **4630056** | **4607567** |
| Member's equity | 3726406 | 3889925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and member's equity** | $**8356462** | $**8497492** |

---

See accompanying notes to the interim condensed consolidated financial statements.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Statements of Operations

For the three and six months ended June 30, 2025

(Unaudited) (In thousands)

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**June 30, 2025** | **Six months ended**<br>**June 30, 2025** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;Energy and capacity revenues | $419552 | $909589 |
| &nbsp;&nbsp;&nbsp;Other revenue | 4079 | 8257 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on risk management activities | 55130 | (30625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 478761 | 887221 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | 142791 | 431875 |
| &nbsp;&nbsp;&nbsp;Loss on risk management activities | 109838 | 9186 |
| &nbsp;&nbsp;&nbsp;Operating and maintenance | 126323 | 192168 |
| &nbsp;&nbsp;&nbsp;General and administrative | 9696 | 23506 |
| &nbsp;&nbsp;&nbsp;Depreciation | 83809 | 167602 |
| &nbsp;&nbsp;&nbsp;Accretion | 1298 | 2596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 473755 | 826933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 5006 | 60288 |
| Interest expense, net | (59531) | (119345) |
| Other loss, net | (635) | (1262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loss** | $(55160) | $(60319) |

---

See accompanying notes to the interim condensed consolidated financial statements.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Statements of Member's Equity

For the three and six months ended June 30, 2025

(Unaudited)

(In thousands)

---

| | |
|:---|:---|
|  | Total<br>member's<br>equity |
| Balances at December 31, 2024 | $3889925 |
| Net loss | (60319) |
| Distributions | (103200) |
| Balances at June 30, 2025 | $3726406 |
| Balances at March 31, 2025 | $3861566 |
| Net loss | (55160) |
| Distributions | (80000) |
| Balances at June 30, 2025 | $3726406 |

---

See accompanying notes to the interim condensed consolidated financial statements.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2025

(Unaudited) (In thousands)

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**June 30, 2025** | **Six months ended**<br>**June 30, 2025** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(55160) | (60319) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 83809 | 167602 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 405 | 810 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 385 | 772 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 2249 | 4488 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk management activities | 25501 | 45616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion | 1298 | 2596 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts receivable | (62044) | (64579) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in inventory and capital spares | (1001) | (3839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in prepaid expenses | (6548) | (2653) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other current assets | (3346) | (6516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deposits | 7312 | (6821) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued expenses | 86010 | 5302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other current liabilities | 11770 | 17625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in deferred revenue | (1625) | (4076) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other non-current liabilities | (3457) | (3539) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in operating lease liabilities | (174) | (735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 85384 | 91734 |
| Cash flows from investing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (8700) | (11310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (8700) | (11310) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of short term debt | 17000 | 72500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on short term debt | (5400) | (51000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on long term debt | (4375) | (8750) |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions | (80000) | (103200) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (72775) | (90450) |
| Net change in restricted cash | 3909 | (10026) |
| Restricted cash, beginning of period | 45563 | 59498 |
| Restricted cash, end of period | $49472 | 49472 |
| Supplemental disclosure of cash flow information: |  |  |
| Cash paid for interest | $30283 | 117465 |

---

See accompanying notes to the interim condensed consolidated financial statements.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

**(1)** **Organization** 

Lightning Power, LLC (the Company), a Delaware limited liability company, was formed on June 21, 2024, to own, finance, develop, and manage a diverse portfolio of power generation facilities across the United States and is wholly owned by Lightning Power Holdings, LLC (Lightning Holdings). Lightning Holdings is directly owned by Fund III Lightning Holdings, LLC (Fund III Holdings) and Gridiron Holdings, LLC (Gridiron Holdings). Fund III Holdings and Gridiron Holdings own 68% and 32%, respectively, Class A common units of Lighting Holdings. Fund III Holdings is indirectly owned, through various holding companies, by Granite Energy, LLC (Granite) and Helix Generation, LLC (Helix). Gridiron Holdings is indirectly owned, through various holding companies, by Gridiron Energy, LLC (Gridiron).

On August 9, 2024, Gridiron, Helix, and Granite contributed 100% ownership interest in their respective generation facilities to the Company. Additionally on the same date, Helix contributed 100% ownership in Rise Light & Power, LLC and subsidiaries (Rise), which was formed to identify, evaluate, and develop investment opportunities within the power industry. The Company was the accounting acquirer in the transaction as it was a substantive entity and obtained controlling financial interests in each of the generation facilities via the contribution of their equity in exchange for the equity of the Company, and the transaction was not among entities under common control.

On May 12, 2025, a definitive purchase and sale agreement was executed with NRG Energy, Inc. for the sale of the Company. The transaction is subject to customary closing conditions and regulatory approvals.

The Generation Facilities that are owned by the Company are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Generation Facilities** | **Location** | **Size** | **Year operational** | **Type** |
| Springdale Energy, LLC | Springdale, PA | 700 MW | 1999-2003 | Simple & Combined Cycle |
| Gans Energy, LLC | Gans, PA | 96 MW | 2000 | Simple Cycle |
| Chambersburg Energy, LLC | Chambersburg, PA | 100 MW | 2001 | Simple Cycle |
| Aurora Generation, LLC | Aurora, IL | 1,050 MW | 2001 | Simple Cycle |
| Rockford Generation, LLC | Rockford, IL | 550 MW | 2000/2002 | Simple Cycle |
| Armstrong Power, LLC | Shelocta, PA | 780 MW | 2002 | Simple Cycle |
| Troy Energy, LLC | Luckey, OH | 780 MW | 2002 | Simple Cycle |
| Helix Ironwood, LLC | Lebanon, PA | 760 MW | 2001 | Combined Cycle |
| LSP University Park, LLC | University Park, IL | 582 MW | 2002 | Simple Cycle |
| University Park Energy, LLC | University Park, IL | 328 MW | 2001 | Simple Cycle |
| Wallingford Energy, LLC | Wallingford, CT | 350 MW | 2002 | Simple Cycle |
| Riverside Generating Company, LLC | Lousia, KY | 976 MW | 1999 | Simple Cycle |
| Doswell Limited Partnership | Hanover County, VA | 1274 MW | 2001, 1992 | Simple & Combined Cycle |
| Helix Ravenswood, LLC | Queens, NY | 1995 MW | 1963 | Combined Cycle |
| Ocean State Power LLC | Burrillville, RI | 560 MW | 1990 | Combined Cycle |

---

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

**(2)** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Basis of Presentation*** 

The interim condensed consolidated financial statements of Lightning Power, LLC have been prepared by us, without audit, in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included, and intercompany transactions have been eliminated in the interim condensed and consolidated financial statements. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2024. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

These consolidated financial statements and notes reflect the Company's evaluation of events occurring subsequent to the consolidated balance sheets date through August 15, 2025, the date the consolidated financial statements were issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Use of Estimates*** 

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the condensed consolidated financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to derivative instruments and asset retirement obligations. Actual results could differ materially from those estimates.

**(3)** **Select Balance Sheet Information** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Restricted Cash*** 

Restricted cash consists of amounts that are restricted under the terms of certain financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Inventory*** 

As of June 30, 2025, spare parts inventory, natural gas, and fuel oil were $74.6 million, $0.2 million, and $51.5 million, respectively. As of December 31, 2024, spare parts inventory, natural gas, and fuel oil were $74.2 million, $0.5 million, and $47.8 million, respectively

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Asset Retirement Obligations*** 

As of June 30, 2025 and December 31, 2024, the Company had a liability of $71.1 million and $68.5 million respectively, for asset retirement obligations to provide for the future removal and dismantling of certain generation facilities. Accretion expense was $1.3 million and $2.6 million, for the three month and six month periods ended June 30, 2025, respectively.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Property, Plant and Equipment, Net*** 

Property, plant and equipment are stated at cost, less accumulated depreciation. As of June 30, 2025 and December 31, 2024, Property, plant and equipment, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of June 30, 2025** | **As of December 31, 2024** |
| Land and improvements | $100440 | $100440 |
| Plant and equipment | 6685839 | 6683094 |
| Capital spares | 47767 | 46933 |
| Computer software and hardware | 1298 | 922 |
| Office furniture and equipment | 240 | 240 |
| Equipment and tools | 735 | 735 |
| Construction in progress | 30418 | 23066 |
| Warehouse storage | 162 | 162 |
| Vehicles | 259 | 246 |
| **Total property, plant and equipment** | 6867158 | 6855838 |
| Accumulated depreciation | (299821) | (132209) |
| **Property, plant and equipment, net** | $6567337 | $6723629 |

---

For the three month and six month periods ended June 30, 2025, depreciation expense for property, plant and equipment was $83.8 million and $167.6 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Other Noncurrent Assets*** 

Other noncurrent assets primarily consists of initial loan contributions that were made by the Company to an unrelated joint venture. The loan contribution accrues interest at 7% per annum. As of June 30, 2025 and December 31, 2024, the Company had a long term debt receivable of $135.9 million. Other noncurrent assets are stated at their carrying values, net of a reserve for doubtful accounts based on evidence of collectability. There were no impairment to Other noncurrent assets as of June 30, 2025 and December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Regional Greenhouse Gas Initiative Allowances*** 

Certain Generation Facilities are located in states that participate in the Regional Greenhouse Gas Initiative (RGGI) to reduce greenhouse gas emissions. As of June 30, 2025 and December 31, 2024, the Company had a RGGI allowance liability of $42.9 million and $23.3 million respectively, which is included in Other current liabilities on the accompanying condensed consolidated balance sheets. For the three month and six month periods ended June 30, 2025, RGGI allowance expense was $10.9 million and $16.7 million respectively, which are reflected as a component of fuel and transportation expense in the accompanying condensed consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Revenue Recognition*** 

Capacity revenue is recognized over time as the Company satisfies its performance obligation of maintaining available generation capacity at negotiated contract terms. Energy revenue consists of physical and financial transactions and is recognized when the performance obligation is satisfied upon delivery of electricity to customers. Physical transactions are recorded on a gross basis in accordance with ASC 606, *Revenue from Contracts with Customers*, as the Company controls the specified electricity before transfer to customers. The Company has elected to apply the practical expedient to recognize revenue in the amount it has the right to invoice for both capacity and energy revenue, as this represents the value transferred to customers. For the three month and six month periods ended June 30, 2025 capacity revenue amounted to $134.2 million and $214.0 million respectively, which is reflected as a component of Energy and capacity revenues in the accompanying condensed consolidated statements of operations.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

**(4)** **Facility and Contract Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Energy Management Agreements*** 

For the three month and six month periods ended June 30, 2025, the Company incurred costs under the Energy Management Agreements (EMAs) of $1.0 million and $1.9 million respectively, which is recorded in General and administrative expense on the accompanying condensed consolidated statement of operations. The characteristics and details of the EMAs remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2024, with no material updates during the interim period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Operation and Maintenance Agreements*** 

For the three month and six month periods ended June 30, 2025, the Company incurred costs under the O&M agreements of $17.9 million and $37.4 million respectively, which is recorded in Operating and maintenance expense in the accompanying condensed consolidated statement of operations. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2024, with no material updates during the interim period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Asset Management and Fuel Supply Agreements*** 

For the three month and six month periods ended June 30, 2025, the Company incurred costs under the asset management and fuel supply agreements of $117.4 million and $367.3 million respectively, which is recorded in Fuel and transportation expense in the accompanying condensed consolidated statements of operations. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2024, with no material updates during the interim period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Gas Transportation and Storage Agreements*** 

Certain generation facilities have firm gas transportation and storage agreements with various counterparties. These agreements call for the counterparties to deliver natural gas, not to exceed the daily maximum, to a specific interconnection point, specified in the respective agreements.

For the three month and six month periods ended June 30, 2025, the Company incurred costs under the gas transportation agreements of $14.3 million and $29.7 million respectively, which is recorded in Fuel and transportation expense in the accompanying condensed consolidated statements of operations. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2024, with no material updates during the interim period.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Equipment Maintenance Agreements*** 

Certain generation facilities have long term maintenance contracts with several counterparties. Based on the terms of such agreements, payments will either be deferred as prepaid expenses until maintenance occurs or expensed quarterly. For the three month and six month periods ended June 30, 2025, the Company made payments totaling $9.5 million and $18.2 million, respectively, under the such agreements. As of June 30, 2025, the costs incurred on certain generation facilities have exceed the cumulative payments made and accordingly the net excess in the amounts of $10.2 million and $9.3 million, respectively, is reflected as a component of Accounts Payable and accrued expenses and Other long term liabilities, respectively, in the accompanying condensed consolidated balance sheets. Conversely, as of June 30, 2025, payments made by certain generation facilities have exceeded the cumulative costs and accordingly the net excess in the amounts of $20.7 million is reflected as a component of Other current assets in the accompanying condensed consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Capacity Agreements*** 

The Company has several agreements to sell capacity to various counterparties. These agreements enable certain Generation Facilities to sell to various counterparties a fixed quantity of capacity at a fixed price for a certain period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Electric and Gas Interconnection Agreements*** 

The Company has electric interconnection agreements with several counterparties that connect the Generation Facilities to the electrical power grid. The agreements continue in effect indefinitely until terminated. The Company has gas interconnection agreements with various counterparties that connect Generation Facilities to their respective natural gas pipelines. The agreements continue in effect indefinitely until terminated. For the three month and six month periods ended June 30, 2025, the Company did not incur maintenance costs relating to the electric and gas interconnection agreements.

**(5)** **Financing Arrangements** 

Our financing arrangements consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| <br>**Loan agreement** | **As of**<br>**June 30, 2025** | **As of**<br>**December 31, 2024** |
| Term Loan | $3236875 | $3245625 |
| Revolving Facility | 42500 | 21000 |
| Total debt principal | 3279375 | 3266625 |
| Less: unamortized debt issuance costs and |  |  |
| discount | (59495) | (63983) |
| Total debt | 3219880 | 3202642 |
| Less: current portion | (8374) | (8474) |
| Long-term debt | $3211506 | $3194168 |

---

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Credit Agreement*** 

On August 16, 2024, the Company entered into a credit agreement (Credit Agreement) with various lenders. The Credit Agreement consists of a term loan totaling $1.75 billion (Term Loan) and revolving loan facility of $600 million (Revolving Facility). The maturity date of the Term Loan and the Revolving Facility is August 16, 2031, and August 16, 2029, respectively. The interest rate for the Term Loan is equal to the SOFR rate plus a margin of 3.25%. The interest rate in effect at June 30, 2025 and December 31, 2024 for the Term Loan was 6.55% and 7.58%, respectively.

As of June 30, 2025 and December 31, 2024, there was $1.74 billion and $1.75 billion respectively, outstanding under the Credit Agreement, respectively. As of June 30, 2025, there was $54.6 million and $42.5 million of LOCs and borrowing, respectively, outstanding under the Revolving Facility. As of December 31, 2024, there was $60.0 million and $21.0 million of LOCs and borrowing, respectively, outstanding under the Revolving Facility.

As of June 30, 2025, the unamortized debt issuance and deferred financing costs totaled $59.5 million of which the current portion was $9.1 million. As of December 31, 2024, the unamortized debt issuance and deferred financing costs totaled $64.0 million of which the current portion was $9.0 million The amortization of these costs is reflected as a component of Interest expense, net on the accompanying condensed consolidated statement of operations. For the three month and six month periods ended June 30, 2025, amortization of such costs totaled $2.3 million and $4.5 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Notes Indenture*** 

On August 16, 2024, the Company entered into a notes indenture with various lenders, which consists of senior secured notes (Secured Notes) totaling $1.5 billion with a maturity date of August 15, 2032. The fixed interest rate on the Secured Notes is 7.25% and is paid semi-annually in arrears on and of each year, commencing on February 15, 2025. The principal amount of the Secured Notes will be paid in full on maturity unless the Company chooses to early redeem.

**(6)** **Derivative Instruments and Hedging Activities** 

The Company enters into commodity derivatives to reduce its exposure to market fluctuations of energy prices and gas prices. The Company is a party to the following derivative instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Heat Rate Call Options*** 

The Company has heat rate call option contracts with various counterparties. The contracts provided for receipt of fixed option premium payments by the Company, net of energy settlements based on a fixed heat rate, power reference index price, gas reference index price, and certain energy prices. The heat rate call option is marked to market with changes in fair value recognized in current period earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Commodity Derivatives*** 

The Company enters into various energy related derivatives to manage the commodity price risk associated with power revenue and fuel costs for the Generation Facilities, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap Contracts, which require payments to or from counterparties based upon the difference between the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk associated with changes in the ISOs power prices.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap Contracts, which require payments to or from counterparties based upon the difference between the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk at multiple delivery points associated with changes in fuel prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Capacity Contracts, which require payments from counterparties based upon the difference between the contract and the market price for a predetermined notional amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d) Option Contracts, which provide the Company the ability to buy or sell power at a fixed price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) RGGI Contracts, which two parties agree to exchange a fixed number of allowances of a certain vintage year at a fixed price for a specific delivery month.

The Power Swap Contracts, Gas Swap Contracts, Capacity Contracts, Option Contracts, Heat Rate Call Option Contracts, and RGGI Contracts are entered into as part of the Company's overall hedging strategy with respect to commodity price risk associated with energy gross margin. The Company records changes in the fair value of the commodity derivatives in the accompanying condensed consolidated statements of operations in the current period.

***Fair Value Measurements***

The following table sets forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of June 30, 2025. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and agreement prices for the underlying instruments, as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

The following table presents assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheet and their level within the fair value hierarchy as of June 30, 2025 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Fair value as of June 30, 2025** | **Fair value as of June 30, 2025** | |
|  |<br>**Level 1** | **Level 2** | **Level 3** |<br>**Total** |
| Commodity Derivatives | $– | $(11654) | $– | $(11654) |
| Capacity Contracts |  | 23291 |  | 23291 |
| Heat Rate Call Options |  |  | (34687) | (34687) |
| RGGI Contracts | – | (1520) | – | (1520) |
| &nbsp;&nbsp;&nbsp;Assets (liabilities) from risk management activities, net | $– | $10117 | $(34687) | $(24570) |

---

The following table presents assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheet and their level within the fair value hierarchy as of December 31, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | |
|  |<br>**Level 1** | **Level 2** | **Level 3** |<br>**Total** |
| Commodity Derivatives | $– | $57184 | $– | $57184 |
| Capacity Contracts |  | (1333) |  | (1333) |
| Call Options |  | (875) |  | (875) |
| Heat Rate Call Options |  |  | (44047) | (44047) |
| RGGI Contracts | – | 10117 | – | 10117 |
| &nbsp;&nbsp;&nbsp;Assets (liabilities) from risk management activities, net | $– | $65093 | $(44047) | $21046 |

---

The following tables provide quantitative information for financial instruments classified as Level 3 in the fair value hierarchy for the period ended June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Valuation**<br>**Technique** | <br>**Significant Inputs** | **Average/**<br>**Range**<br>**June 30,**<br>**2025** | <br>**Units** |
| Heat rate call options | Model | Electricity regional prices | $57.01 | Dollars/MWH |
|  |  | Natural gas prices | $3.77 | Dollars/MMBtu |
|  |  | Power price volatility | 31.2% |  |
|  |  | Gas price volatility | 56.5% |  |

---

The following tables provide quantitative information for financial instruments classified as Level 3 in the fair value hierarchy for the period ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Valuation**<br>**Technique** | <br>**Significant Inputs** | **Average/**<br>**Range**<br>**December**<br>**31, 2024** | <br>**Units** |
| Heat rate call options | Model | Electricity regional prices | $51.81 | Dollars/MWH |
|  |  | Natural gas prices | $3.53 | Dollars/MMBtu |
|  |  | Power price volatility | 36.7% |  |
|  |  | Gas price volatility | 52.3% |  |

---

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

The following tables present information concerning the impact of derivative instruments on the accompanying condensed consolidated balance sheets and condensed consolidated statements of operations.

***Impact of Derivative Instruments on the Accompanying Condensed Consolidated Balance Sheets***

The following tables present the classifications and fair value of derivative instruments on the accompanying condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| <br>**Instrument** | <br>**Balance sheet location** | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Derivatives not designated as hedging activities: | Derivatives not designated as hedging activities: |  |  |
| Call Options | Assets from risk-management activities – short term | $– | (875) |
| Heat rate call options | Liabilities from risk-management activities – short term | (34.687) | (44047) |
| Commodity Derivatives | Assets from risk-management activities – short term | 441491 | 398736 |
| Commodity Derivatives | Assets from risk-management activities – long term | 534814 | 652738 |
| Commodity Derivatives | Liabilities from risk-management activities – short term | (457157) | (349842) |
| Commodity Derivatives | Liabilities from risk-management activities – long term | (530802) | (644448) |
| Capacity contracts | Assets from risk-management activities – short term | 58286 | 25169 |
| Capacity contracts | Assets from risk-management activities – long term | 2283 | 8770 |
| Capacity contracts | Liabilities from risk-management activities – short term | (33649) | (19902) |
| Capacity contracts | Liabilities from risk-management activities – long term | (3.629) | (15370) |
| RGGI Contracts | Assets from risk-management activities – short term | 1118 | 464 |
| RGGI Contracts | Assets from risk-management activities – long term |  | 9653 |
| RGGI Contracts | Liabilities from risk-management activities – short term | (478) |  |
| RGGI Contracts | Liabilities from risk-management activities – long term | (2160) | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | (24570) | 21046 |
| Total derivatives, net (liability) asset | Total derivatives, net (liability) asset | $(24570) | 21046 |

---

***Impact of Derivative Instruments on the Accompanying Condensed Consolidated Statements of Operations***

The following table presents the classification and amount of the gains and losses on derivative instruments in the accompanying condensed consolidated statements of operations for the period ended June 30, 2025. The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in income on** | **Amount of gain (loss) in income on** |
| | | **derivatives for the** | **derivatives for the** |
| <br>**Instrument** | <br>**Location of gain (loss) recognized in**<br>**income on derivatives** | **Three month**<br>**ended June 30**<br>**2025** | **Six month**<br>**ended June 30**<br>**2025** |
| Commodity derivatives - power | Gain (loss) on risk management activities | $74584 | $26776 |
| Commodity derivatives - gas | Loss on risk management activities | (109838) | (9186) |
| Capacity contract | Gain (loss) on risk management activities | 1392 | (26757) |
| Heat rate call options | Gain (loss) on risk management activities | (19890) | (30638) |
| RGGI Contracts | Gain (loss) on risk management activities | (956) | (6) |
| Total loss in income on derivatives |  | $(54708) | $(39811) |

---

**LIGHTNING POWER, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements

***Offsetting of Derivative Assets and Liabilities***

The Company has elected to present derivative assets and liabilities on the balance sheets by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying condensed consolidated balance sheet as of June 30, 2025 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**June 30, 2025** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments as of**<br>**June 30, 2025** |<br>**Net amount after**<br>**offset as of June**<br>**30, 2025** |
| Assets from risk management activities | $1037992 | (214329) | 823663 |
| Liabilities from risk management activities | (1062562) | 214329 | (848233) |
| &nbsp;&nbsp;&nbsp;Net risk management activities | $(24570) | – | (24570) |

---

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying condensed consolidated balance sheet as of December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**December 31, 2024** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments as of**<br>**December 31, 2024** |<br>**Net amount after**<br>**offset as of**<br>**December 31, 2024** |
| Assets from risk management activities | $1095530 | (233047) | 862483 |
| Liabilities from risk management activities | (1074484) | 233047 | (841437) |
| &nbsp;&nbsp;&nbsp;Net risk management activities | $21046 | – | 21046 |

---

**(7)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. A portion of such costs related to these services are allocated to the Company and reimbursed by the Company. All other costs related to the operation and management of the Company are reflected in the accompanying consolidated statements of operations.

**(8)** **Member's Equity** 

Profits, losses, and distributions are allocated in accordance with the provisions of the Company's Limited Liability Company agreement. For the six months ended June 30, 2025, the Company made distributions in the amounts of $103.2 million.

**(9)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote. The Company, from time to time, is a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's condensed consolidated financial position, results of operations, or cash flows.

## Exhibit 99.4

**Exhibit 99.4**

**FUND III PROJECTS**

Combined Financial Statements

For the period January 1, 2024 to August 8, 2024, and year ended December 31, 2023

(With Independent Auditors' Report Thereon)

---

| | |
|:---|:---|
| ![](tm2526385d1_ex99-4img001.jpg) |  |
|  | KPMG LLP |
|  | Suite 4000 |
|  | 1735 Market Street |
|  | Philadelphia, PA 19103-7501 |

---

**Independent Auditors' Report**

The Members

Fund III Projects:

*Opinion*

We have audited the combined financial statements of Fund III Projects (the Company), which comprise the combined balance sheets as of August 8, 2024 and December 31, 2023, and the related combined statements of operations, members' equity, and cash flows for the periods then ended, and the related notes to the combined financial statements.

In our opinion, the accompanying combined financial statements present fairly, in all material respects, the financial position of the Company as of August 8, 2024 and December 31, 2023, and the results of its operations and its cash flows for the periods then ended in accordance with U.S. generally accepted accounting principles.

*Basis for Opinion*

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Combined Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

*Emphasis of Matter*

As discussed in Note 13 to the combined financial statements, the Company has elected to change its method of accounting for interest rate swaps to remove the application of the simplified hedge accounting alternative available for private companies. Consequently, the Company's combined financial statements for the year ended December 31, 2023 have been revised. Our opinion is not modified with respect to this matter.

*Responsibilities of Management for the Combined Financial Statements*

Management is responsible for the preparation and fair presentation of the combined financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the combined financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the combined financial statements are available to be issued.

*Auditors' Responsibilities for the Audit of the Combined Financial Statements*

Our objectives are to obtain reasonable assurance about whether the combined financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the combined financial statements.

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

![](tm2526385d1_ex99-4img001.jpg)

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the combined financial statements, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts
and disclosures in the combined financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly,
no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the combined financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about
the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

![](tm2526385d1_ex99-4img002.jpg)

Philadelphia, Pennsylvania

June 27, 2025

**FUND III PROJECTS**

Combined Balance Sheets

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **August 8, 2024** | **December 31, 2023** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $112508 | $56749 |
| &nbsp;&nbsp;&nbsp;Accounts receivable and affiliates | 81815 | 49211 |
| &nbsp;&nbsp;&nbsp;Inventory | 99034 | 95600 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 19069 | 27745 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 133694 | 138391 |
| &nbsp;&nbsp;&nbsp;Other current assets | 9634 | 15211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 455754 | 382907 |
| Property, plant, and equipment | 3221387 | 3209878 |
| Accumulated depreciation | (965010) | (894451) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | 2256377 | 2315427 |
| Assets from risk management activities, long term | 141833 | 161356 |
| Operating lease right-of-use assets, net | 5313 | 5504 |
| Investment in unconsolidated affiliate |  | 39700 |
| Other noncurrent assets | 144070 | 130452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $3003347 | $3035346 |
| **Liabilities and Members' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | $171848 | $5797 |
| &nbsp;&nbsp;&nbsp;Short term debt | 26100 | 15900 |
| &nbsp;&nbsp;&nbsp;Accounts payable and affiliates and accrued expenses | 105266 | 94054 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 184460 | 243180 |
| &nbsp;&nbsp;&nbsp;Deferred revenue |  | 1548 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 368 | 634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 488042 | 361113 |
| Long term debt | 1714462 | 1922821 |
| Liabilities from risk management activities, long term | 210611 | 280133 |
| Asset retirement obligations | 82138 | 79500 |
| Operating lease liabilities | 5240 | 5375 |
| Other long term liabilities | 17404 | 23367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2517897 | 2678309 |
| Members' equity | 485450 | 363038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and members' equity | $3003347 | $3035346 |

---

See accompanying notes to the combined financial statements

**FUND III PROJECTS**

Combined Statements of Operations

January 1, 2024 to August 8, 2024 and Years Ended December 31, 2023

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **January 1, 2024 to**<br>**August 8, 2024** | **Year ended**<br>**December 31, 2023** |
| Revenues: |  |  |
| Energy and capacity revenues | $631446 | $990798 |
| Gain on risk management activities | 161227 | 574691 |
| Other revenue | 6963 | 11032 |
| Total revenues | 799636 | 1576521 |
| Operating expenses: |  |  |
| Fuel and transportation | 248171 | 360711 |
| Loss on risk management activities | 41400 | 452860 |
| Operating and maintenance | 133962 | 250910 |
| General and administrative | 18199 | 29306 |
| Depreciation | 72401 | 119608 |
| Accretion | 2638 | 4134 |
| Total operating expenses | 516771 | 1217529 |
| Operating income | 282865 | 358992 |
| Interest expense, net | (116018) | (194616) |
| Other (loss) income, net | (30565) | 3592 |
| Equity in net income of unconsolidated affiliate | 13 | 2846 |
| Net income | $136295 | $170814 |

---

See accompanying notes to the combined financial statements

**FUND III PROJECTS**

Combined Statements of Members' Equity

(In thousands)

---

| | |
|:---|:---|
|  | Total<br>Members'<br>equity |
| Balances at December 31, 2022 | $280934 |
| Net income | 170814 |
| Capital contribution | 36600 |
| Distributions | (125310) |
| Balances at December 31, 2023 | $363038 |
| Net income | 136295 |
| Capital contribution | 30274 |
| Distributions | (44157) |
| Balances at August 8, 2024 | $485450 |

---

See accompanying notes to the combined financial statements

**FUND III PROJECTS**

Combined Statements of Cash Flows

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **January 1, 2024 to**<br>**August 8, 2024** | **Year ended**<br>**December 31, 2023** |
| Cash flows from operating activities: |  |  |
| Net income | $136295 | 170814 |
| Adjustments to reconcile net income to net cash provided by |  |  |
| Operating activities: |  |  |
| Depreciation | 72401 | 119608 |
| Amortization of right-of-use assets | 191 | 411 |
| Amortization of deferred financing costs | 6993 | 13316 |
| Risk management activities | (104023) | (35223) |
| Accretion | 2638 | 4134 |
| Impairment on investment in unconsolidated affiliate | 30586 |  |
| Distributions received from investments in unconsolidated affiliates, net of equity in net loss (income) | 109 | (1858) |
| Change in assets and liabilities: |  |  |
| (Increase) decrease in accounts receivable | (32604) | 87168 |
| Increase in inventory and capital spares | (3434) | (4548) |
| Decrease in prepaid expenses | 8676 | 398 |
| Decrease (increase) in other current assets | 5577 | (6122) |
| Increase in other noncurrent assets | (13618) | (10121) |
| Increase (decrease) in accounts payable and accrued expenses | 11213 | (79214) |
| (Decrease) increase in deferred revenue | (1548) | 1548 |
| Decrease in operating lease liabilities | (401) | (355) |
| (Decrease) increase in other long term liabilities | (5963) | 7076 |
| Net cash provided by operating activities | 113088 | 267032 |
| Cash flows from investing activities: |  |  |
| Capital expenditures | (11508) | (11554) |
| Change in investment in unconsolidated affiliate | - | 12 |
| Net cash used in investing activities | (11508) | (11542) |
| Proceeds from issuance of short term debt | 11200 | 79300 |
| Principal payments on short term debt | (1000) | (99500) |
| Proceeds from issuance of long term debt |  | 675000 |
| Principal payments on long term debt | (49301) | (794129) |
| Debt issuance costs |  | (26077) |
| Capital contributions | 30274 | 36600 |
| Cash distributions | (36994) | (125310) |
| Net cash used by financing activities | (45821) | (254146) |
| Net change in restricted cash | 55759 | 1344 |
| Restricted cash, beginning of period | 56749 | 55405 |
| Restricted cash, end of period | $112508 | 56749 |
| Supplemental disclosure of cash flow information: |  |  |
| Cash paid for interest | $95021 | 167006 |
| Supplemental disclosure of noncash financing activities |  |  |
| In May 2024, the Company transferred its equity interest in a certain generation facility | $(7163) |  |

---

See accompanying notes to the combined financial statements

**FUND III PROJECTS**

Notes to Combined Financial Statements

**(1)** **Organization** 

The accompanying combined financial statements of Fund III Projects (Company) includes the operations and assets held by Granite Generation, LLC (Granite), Helix Gen Funding, LLC (Helix), Ocean State Power LLC (Ocean State), and Rise Light & Power, LLC (Rise) (collectively the "Companies"). Granite is indirectly owned by Granite Energy, LLC (Granite Energy). Helix, Ocean State, and Rise are indirectly owned by Helix Generation, LLC (Helix Gen). The Companies hold an array of generation facilities (collectively, the "Generation Facilities") that are strategically positioned in key power markets, including PJM Interconnection LLC (PJM), ISO-New England Inc.(ISONE), and New York Independent System Operator (NYISO).

The Generation Facilities owned by the Companies are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Generation Facilities** | **Location** | **Size** | **Year operational** | **Type** |
| Springdale Energy, LLC | Springdale, PA | 700 MW | 1999-2003 | Simple & Combined Cycle |
| Gans Energy, LLC | Gans, PA | 96 MW | 2000 | Simple Cycle |
| Chambersburg Energy, LLC | Chambersburg, PA | 100 MW | 2001 | Simple Cycle |
| Aurora Generation, LLC | Aurora, IL | 1,050 MW | 2001 | Simple Cycle |
| Rockford Generation, LLC | Rockford, IL | 550 MW | 2000/2002 | Simple Cycle |
| Armstrong Power, LLC | Shelocta, PA | 780 MW | 2002 | Simple Cycle |
| Troy Energy, LLC | Luckey, OH | 780 MW | 2002 | Simple Cycle |
| Helix Ironwood, LLC | Lebanon, PA | 760 MW | 2001 | Combined Cycle |
| Helix Ravenswood, LLC | Queens, NY | 2002 MW | 1963 | Simple & Combined Cycle |
| Ocean State Power LLC | Burrillville, RI | 560 MW | 1990 | Combined Cycle |

---

**(2)** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Basis of presentation*** 

The accompanying combined financial statements include the accounts of the Companies. The Companies are under common control, as they are owned and controlled by LS Power Equity Partners III, LP. Accordingly, the combined financial statements and related notes are presented in accordance with U.S. generally accepted accounting principles (U.S. GAAP). All significant intercompany transactions and balances among the Companies have been eliminated in the combined financial statements. These combined statements are prepared to present the combined results of entities that are under common control.

Operating results for the period ended August 8, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The operation results for fiscal year 2024 reflect activity only up to August 8, 2024, due to a contribution transaction that occurred on August 9, 2024 (see Note 12).

These combined financial statements and notes reflect the Company's evaluation of events occurring subsequent to the combined balance sheet date through June 27, 2025, the date the financial statements were issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Use of Estimates*** 

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the combined financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to derivative instruments and asset retirement obligations. Actual results could differ materially from those estimates.

6 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Restricted Cash*** 

Restricted cash consists of amounts that are restricted under the terms of certain financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Accounts Receivable*** 

Accounts receivable primarily consists of amounts owed to the Generation Facilities for electric energy delivered to PJM, ISONE, and NYISO (collectively, the "ISOs") under the energy management agreements (see Note 6a). Accounts receivable also consists of amounts owed to the Generation Facilities from ISOs for delivered capacity, as well as for hedge settlement fuel sales, and bilateral capacity settlements from energy marketers or other counterparties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Allowance for Doubtful Accounts*** 

Management establishes reserves on accounts receivable if it becomes probable that the Company will not collect part of the outstanding accounts receivable balance. Management reviews collectability and establishes or adjusts its allowance using the specific identification method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Inventory*** 

Inventory consists of fuel oil, natural gas, and spare parts used in the production of electricity. Inventory is stated at the lower of weighted average cost or net realizable value. The carrying value of fuel inventories will be recovered with normal profits in the ordinary course of business through the generation and sale of energy. As of August 8, 2024 and December 31, 2023, spare parts inventory were $53.6 million and $51.5 million, respectively. As of August 8, 2024 and December 31, 2023, fuel inventory was $45.4 million and $44.1 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Property, Plant and Equipment*** 

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated remaining useful lives of individual assets or classes of assets. Plant and equipment is depreciated over the estimated useful life of the power generation facilities ranging from 20 to 30 years. The estimated useful life for computer software is 3 years, computer hardware is 5 years, vehicles is 5 years, warehouse storage structure is 10 years, mechanical and electrical tools are 5 years and office equipment, and furniture and fixtures are 7 years. Property, plant, and equipment also includes capital spares inventory available for use in planned major maintenance. Additions and improvements extending asset lives beyond their remaining estimated useful lives are capitalized, while repairs and maintenance, including planned major maintenance and capital spares, are charged to expense as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)***  ***Impairment of Long-Lived Assets and Intangible Assets*** 

In accordance with ASC 360, *Property, Plant, and Equipment*, long-lived assets with determinable useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less the costs to sell.

7 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i)***  ***Asset Retirement Obligations*** 

In accordance with ASC 410, *Asset Retirement Obligations and Environmental Obligations*, the Company recognizes the fair value of the liability for asset retirement obligations in the period in which it is incurred if a reasonable estimate of fair value can be made. An amount equal to the present value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the useful life of the asset. The liability is accreted through charges to accretion in the accompanying combined statements of operations. If the obligation is settled for an amount other than the carrying amount of the liability, a gain or loss is recognized upon settlement. As of August 8, 2024 and December 31, 2023, the Company has a liability of $82.1 million and $79.5 million, respectively, for asset retirement obligations to provide for the future removal and dismantling of certain generation facilities. Accretion expense was $2.6 million and $4.1 million for the period from January 1, 2024 to August 8, 2024 and the year ended December 31, 2023, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j)***  ***Leases*** 

In accordance with FASB ASC 842, *Leases*, the Company evaluates each contract at inception to determine if it contains a lease. The Company considers a contract to be a lease when an asset is either explicitly or implicitly identified in the contract; and the contract conveys to the Company the right to control the use of the identified asset during the contract period. Operating leases are included in Operating lease right-of-use assets, net and Operating lease liabilities in the Company's combined balance sheets.

Operating lease right-of-use assets represent our right to use an underlying asset for the lease term, and operating lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Renewal options that are reasonably certain to be exercised are included in the lease term. In determining the present value of the future lease payments, the Company uses the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the payments for the lease. Short-term leases, leases with a term of 12 months are less at inception, are not recorded on the Company's combined balance sheets. Lease expenses for all operating leases are expensed on a straight-line basis over the lease term on the Company's combined statements of operations (see Note 7).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(k)***  ***Debt Issuance and Deferred Financing Costs*** 

Debt issuance and deferred financing costs are amortized over the term of the Company's financing arrangements using effective interest method. Unamortized debt issuance and deferred financing costs are reflected as components of Current portion of long term debt and Long term debt on the accompanying combined balance sheet.

8 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(l)***  ***Regional Greenhouse Gas Initiative Allowances*** 

The Company is located in states that participate in the Regional Greenhouse Gas Initiative (RGGI) to reduce greenhouse gas emissions. The Company is required to possess RGGI allowances equal to its CO2 emissions over a three-year control period. The Company must hold allowances equal to 50% of its emissions during each interim control period (the first two calendar years of each three-year control period), and 100% of all three years' allowances must be surrendered by March 1 after the three-year control period. The Company records RGGI allowances as other assets or other liabilities at the weighted-average cost or fair market value, as appropriate, on the accompanying combined balance sheets. Due to market fluctuations in value, the value of the liability for the RGGI allowances recorded on the Company's accompanying combined balance sheet may not reflect the final cost of the surrendered RGGI allowances. RGGI allowances are charged to Fuel and transportation on the accompanying combined statements of operations when the Generation Facility operates. As of August 8, 2024 and December 31, 2023, the Company recorded accounts payable of $31.9 million and $7.0 million respectively, based on weighted average cost and the fair market value for the remaining liability in excess of the RGGI contracts on the accompanying combined balance sheets. For the period from January 1, 2024 to August 8, 2024, RGGI allowance expense was $33.2 million, which is reflected as a component of Fuel and transportation expense in the accompanying combined statements of operations. For the year ended December 31, 2023, RGGI allowance expense was $37.3 million.

The Company enters into futures contracts whereby the Company agrees to purchase RGGI allowances at a fixed price to be physically delivered on a future date. The contracts entered into by the Company meet the definition of a derivative in accordance with ASC 815, *Derivatives and Hedging* (ASC 815) (see Note 9).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(m)***  ***Revenue Recognition*** 

Capacity revenue is recognized over time as the Company satisfies its performance obligation of maintaining available generation capacity at negotiated contract terms. Energy revenue consists of physical and financial transactions and is recognized when the performance obligation is satisfied upon delivery of electricity to customers. Physical transactions or the sale of generated electricity to meet supply are recorded on a gross basis in the accompanying combined statements of operations in accordance with ASC 606, *Revenue from Contracts with Customers*. The Company elected to apply the practical expedient to recognize revenue in the amount it has the right to invoice for both capacity and energy revenue, as this represents the value transferred to customers. For the period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2023, capacity revenue amounted to $231.6 million and $378.9 million, respectively, which are reflected as a component of energy and capacity revenues in the accompanying combined statements of operations. For the year ended December 31, 2023, the Company recognized $32.9 million net gain related to capacity performance bonuses and penalties (see Note 14).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(n)***  ***Derivative Financial Instruments*** 

The Company enters into agreements that meet the definition of a derivative in accordance with ASC 815. These agreements are entered into to mitigate or eliminate market and financial risks. ASC 815 provides for three different ways to account for derivative instruments: (i) as an accrual agreement, if the criteria for the "normal purchase normal sale" exception are met and documented; (ii) as a cash flow or fair value hedge, if the specified criteria are met and documented; or (iii) as a mark-to-market agreement with changes in fair value recognized in current period earnings. All derivative instruments that do not qualify for the normal purchase normal sale exception are recorded at fair value in risk management assets and liabilities on the accompanying combined balance sheets.

If designated as a cash flow or fair value hedge, the Company documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy. This process includes linking all derivatives that are designated as hedges to specific assets or liabilities on the accompanying combined balance sheets or to forecasted transactions. The Company also assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. This could occur when: (1) it is determined that a derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; or (3) the derivative is discontinued as a hedging instrument, because it is unlikely that a forecasted transaction will occur. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective hedge of cash flows, the derivative will continue to be carried at fair value on the accompanying combined balance sheets and the gains and losses that were accumulated in other comprehensive income are recognized immediately or over the remaining term of the forecasted transaction in the accompanying combined statements of operations.

9 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

Changes in the fair value of derivative instruments are recognized in the accompanying combined statements of operations. Any gains and losses resulting from changes in the market value of the derivative instruments contracts are recorded in the accompanying combined statements of operations in the current year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o)***  ***Fair Value Measurements*** 

Fair value, as defined in ASC 820, *Fair Value Measurements and Disclosures* (ASC 820), is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(p)***  ***Fair Value of Financial Instruments*** 

The carrying amounts of Restricted cash, Accounts receivable, and Accounts payable and accrued expenses are equal to or approximate their fair values due to the short-term maturity of those instruments. The fair value of long-term debt approximates its book value at August 8, 2024, as the interest rates are variable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(q)***  ***Income Taxes*** 

The Company consists of entities that have been organized as a limited liability company and are treated as disregarded entities for federal and state income tax purposes. Therefore, federal and state income taxes are assessed at the member's level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(r)***  ***Concentrations of Credit and Market Risk*** 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of restricted cash, accounts receivable, and derivatives. Restricted cash accounts are generally held at major institutions. Accounts receivable is concentrated within entities engaged in the energy industry. These industry concentrations may impact the Company's overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic, industry, or other conditions.

The Company is exposed to credit losses in the event of noncompliance by counterparties on its derivative financial instruments. The counterparties to these transactions are major financial institutions. The Company does not require collateral or other security to support its financial instruments with credit risk. For the period January 1, 2024 to August 8, 2024,46%, 10%, and 44% of revenues consisted of sales to PJM, ISONE, and NYISO, respectively. For the year ended December 31, 2023,50%, 11%, and 39% of revenues consisted of sales to PJM, ISONE, and NYISO, respectively. All revenues are subject to geographical market risks.

10 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(s)***  ***Risks and Uncertainties*** 

The Company is subject to a variety of factors, including the economy, the regulatory environment, the electricity markets, and the availability of capital resources. As with any power generation facility, operations of the Generation Facilities involve risk, including the performances of the facilities below expected levels of efficiency and output, shut downs due to the breakdown or failure of equipment or processes, violations of permit requirements, operator error, labor disputes, weather interferences, or catastrophic events such as fires, earthquakes, floods, explosions, pandemics, or other similar occurrences affecting a power generation facility or its power purchasers. The occurrence of any of these events could significantly reduce or eliminate revenues generated by the facilities or significantly increase the expenses of the facilities, adversely impacting the Company's ability to make payments of principal and interest on its debt when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(t)***  ***Equity Method Investments*** 

In accordance with ASC 323, *Investments Equity Method and Joint Ventures*, the Company applies the equity method of accounting to investments in which it has significant influence, but not a controlling financial interest (see Note 3). Under the equity method, the Company initially records the investment at cost and adjusts the carrying amount to recognize the Company's share of the earnings or losses of the investee after the acquisition date. The Company's share of the investee's earnings or losses is recognized in the Company's income statement. Distributions received from the investee reduce the carrying amount of the investment. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(u)***  ***Commitments and Contingencies*** 

In accordance with ASC 450, *Contingencies*, the Company records a loss contingency for matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Loss contingency reserves are based on estimates and judgments made by management with respect to the likely outcome of matters, including any applicable insurance coverage for litigation matters, and are adjusted as circumstances warrant. These estimates and judgments could change based on new information, changes in laws or regulations, changes in management's plans or intentions, the outcome of legal proceedings, settlements or other factors.

Additionally, the Company follows the guidance of ASC 460, *Guarantees* (ASC 460), for disclosing and accounting of guarantees and indemnifications entered into during the course of business. When a guarantee or indemnification subject to ASC 460 is entered into the estimated fair value of the guarantee or indemnification is assessed. Some guarantees and indemnifications could have a financial impact under certain circumstances. Management considers the probability of such circumstances occurring when estimating fair value.

11 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

**(3)** **Equity Method Investment** 

The Company holds 16.3% equity interest in Attentive Energy LLC (Attentive). The Company accounts for this investment using the equity method of accounting as the Company exercises significant influence, but not control over the Attentive's operating and financial policies. As of December 31, 2023, the carrying value of the investment in Attentive was $30.6 million. During the period from January 1, 2024 to August 8, 2024, the Company determined that its investment in Attentive was impaired due to significant regulatory and contractual challenges that materially reduced the likelihood of Attentive's projects progressing as planned. As a result, the carrying value was written down by $30.6 million to $0. This impairment loss was recorded in Other (loss) income, net in the combined statements of operations. There was no material operating activity in Attentive during the periods presented. See Note 5 regarding loan receivable from Attentive.

**(4)** **Property, Plant and Equipment** 

Property, plant and equipment are stated at cost, less accumulated depreciation. As of August 8, 2024 and December 31, 2023, Property, plant and equipment, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **August 8, 2024** | **December 31, 2023** |
| Land and improvements | $87879 | $87879 |
| Plant and equipment | 3081970 | 3067046 |
| Computer software and hardware | 6653 | 6596 |
| Vehicles | 426 | 426 |
| Warehouse Storage | 209 | 209 |
| Mechanical equipment | 1805 | 1805 |
| Office furniture and equipment | 261 | 169 |
| Construction in progress | 12012 | 10631 |
| Capital spares | 30172 | 35117 |
| &nbsp;&nbsp;&nbsp;Total property, plant and equipment | 3221387 | 3209878 |
| Accumulated depreciation | (965010) | (894451) |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | $2256377 | $2315427 |

---

For the period from January 1, 2024, to August 8, 2024, depreciation expense for property, plant and equipment was $72.4 million. For the year ended December 31, 2023, depreciation expense for property, plant and equipment was $119.6 million.

**(5)** **Other Noncurrent Assets** 

Other Noncurrent Assets primarily consists of initial loan that was made by Rise to Attentive. The loan accrues interest at 7% per annum and expires December 31, 2027. As of August 8, 2024 and December 31, 2023, the Company had a loan receivable of $133.0 million and $122.3 million plus accrued interest, respectively.

**(6)** **Facility and Contract Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Energy Management Agreements*** 

The Company has entered into several energy management agreements (EMAs) with various counterparties to provide comprehensive power management services, including scheduling, dispatch, and delivery of energy, as well as fuel and risk management services for its generation facilities. These counterparties are responsible for scheduling the natural gas supply required to operate the respective generation facilities and coordinating the sale of power, capacity, and ancillary services.

12 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

For the period from January 1, 2024 to August 8, 2024 and year ended December 31, 2023, the Company incurred costs under the EMAs of $1.4 million and $2.0 million, respectively, which is recorded in General and administrative expense on the accompanying combined statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Operation and Maintenance Agreements*** 

The Company has several operations and maintenance (O&M) agreements with various counterparties to provide comprehensive operation and maintenance services for its generation facilities. Under these agreements, the Company pays a fixed monthly operating fee, which is subject to an annual adjustment based on specified indices. Additionally, the Company pays an annual incentive fee and reimburses the operators for all labor costs, including payroll, related taxes, and other incurred costs.

For the period from January 1, 2024 to August 8, 2024 and year ended December 31, 2023, the Company incurred fixed costs under the O&M agreements of $2.2 million and $3.6 million, respectively, which are recorded under General and administrative expenses, and incurred $33.9 million and $52.3 million of other labor costs, respectively, under the O&M agreements, which is recorded in Operating and maintenance expense in the accompanying combined statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Asset Management and Fuel Supply*** 

The Company has entered into several asset management and fuel supply agreements with various counterparties to provide fuel transportation and management services to the Generation Facilities. The following summarizes the terms in those agreements:

Certain Generation Facilities have separate fuel supply agreements with various counterparties. These agreements call for the counterparty to provide certain fuel management services and to be the gas supplier to the plant. Quantities purchased will be agreed between the facilities and counterparties on the applicable pipelines and will be priced according to the transaction confirm in the contract.

Springdale Energy, LLC (Springdale) has an asset management with a counterparty. The Company shall release to the counterparty the firm transportation capacity an amount specified in the agreement. The counterparty agrees to pay the Company for each month of the term of the released capacity. Released capacity must be used to first serve gas supply obligations to Springdale to the delivery point and the counterparty shall have the right to utilize the remainder for its purposes.

For the period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2024, the Company incurred costs under the asset management and fuel supply agreements of $185.4 million and $278.8 million, respectively, which is recorded in Fuel and transportation expense in the accompanying combined statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Gas Transportation and Storage Agreements*** 

Certain Generation Facilities have firm gas transportation and storage agreements with various counterparties. These agreements call for the counterparties to deliver natural gas, not to exceed the daily maximum, to a specific interconnection point, specified in the respective agreements.

Helix Ravenswood, LLC (Ravenswood) has a fuel oil supply agreement with Con Edison that involves Ravenswood supplying, storing, and handling fuel oil, with Con Edison paying handling fees and costs based on delivery quantities, expiring in 2098 or when certain facilities cease operations. Furthermore, Ravenswood has a contract with Con Edison and NYISO to use fuel oil instead of natural gas for electricity generation, with NYISO providing fixed monthly payments. During the period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2023, the Company earned $5.4 million and $10.6 million, respectively, which are recorded as Other revenue in the accompanying combined statements of operations.

13 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

For the period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2024, the Company incurred costs under the gas transportation agreements of $24.8 million and $40.7 million, respectively, which is recorded in Fuel and transportation expense in the accompanying combined statements of operations. As of August 8, 2024 and December 31, 2023, the Company has $13.2 million in LOCs outstanding related to the gas transportation and storage agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Equipment Maintenance Agreements*** 

Helix Ironwood, LLC (Ironwood) has a term warranty contract (TWC) with Siemens Energy, Inc. (Siemens) for outage procedures on turbine and generator components, expiring at the earlier of a major inspection or December 31, 2049, with fees based on time and milestones and paid quarterly. The long-term service agreements (LTSA) with GE International (GE) for Armstrong Power, LLC (Armstrong) and Troy Energy, LLC (Troy) expired December 2024. Armstrong has a maintenance service agreement (MSA) with GE that expires in December 2027 and can be renewed on mutual agreement. Troy's MSA with GE expired December 2024. The MSA is a bundled service agreement that involves fixed quarterly fees. Springdale's long-term service agreement with Siemens, expiring by the third major outage or December 31, 2032, includes similar fee structures and potential extensions. Under the terms of the MSA, the Company issued a LOC in the amount of $7 million.

Ravenswood has a contractual services agreement (CSA) with GE for outage procedures on gas combustion turbine components, expiring at the earlier of the fourth major outage or 225,000 operating hours, or October 3, 2036. Initially, Ravenswood makes quarterly payments in arrears based on operating hours at a contracted rate, subject to escalation.

Payments for LTSAs, TWC, and CSA are deferred as prepaid expenses until maintenance occurs, while Armstrong and Troy's payments are expensed quarterly. For the period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2023, the Company made payments totaling $10.6 million and $19.4 million, respectively, under the TWC, MSAs, and LTSAs.

The TWC and LTSA accrued expenses have exceeded the cumulative payments made. As of August 8, 2024, and December 31, 2023, the net excess amounts of $9.8 million and $17.4 million, and $9.3 million and $23.4 million, respectively, relating to the TWC and LTSA, are reflected as components of Accounts Payable and accrued expenses and Other long-term liabilities, respectively, in the accompanying combined balance sheets. The cumulative payments made under the CSA have exceeded the cumulative costs and accordingly the net excess is reflected as a component of Other noncurrent assets in the accompanying balance sheets for the period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2023, in the amount of $10.9 million and $6.4 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Physical Gas Call Option Agreements*** 

Armstrong has a call option agreement with BP Energy Company to buy natural gas at an index price plus transportation charges for a maximum daily amount of 27,500 MMBtu(s). For the period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2023, the Company incurred costs under the physical gas call option agreements of $2.6 million and $6.4 million, respectively, which is recorded in Fuel and transportation expense in the accompanying combined statements of operations.

14 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Capacity Agreements*** 

The Company has several agreements to sell capacity to various counterparties. These agreements enable certain Generation Facilities to sell to various counterparties a fixed quantity of capacity at a fixed price for a certain period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)***  ***Electric and Gas Interconnection Agreements*** 

The Company has electric interconnection agreements with PJM, ISO-NE, Con Edison, National Grid and other counterparties that connect the Generation Facilities to the electrical power grid. The agreements continue in effect indefinitely until terminated. For the period from January 1, 2024 to August 8, 2024, and for the year ended December 31, 2023 the Company did not incur maintenance costs relating to the electric and gas interconnection agreements. The Company has gas interconnection agreements with various counterparties that connect the Generation Facilities to their respective natural gas pipelines. The agreements continue in effect indefinitely until terminated.

The Company has various long term contractual and commercial commitments of which the significant contracts have been discussed in this note and Note 8, which further discusses lease agreements. The following table summarizes the obligations with respect to the significant contractual and commercial commitments, including lease agreements, as of August 8, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| <br>**Contractual obligations** | **Less than 1**<br>**year** | **More than**<br>**5 years** |<br>**Total** |
| Energy management agreements | $2563 | 44257 | 57325 |
| Operation and maintenance agreements | 2618 | 50313 | 64044 |
| Equipment maintenance agreements | 21813 | 148713 | 272836 |
| Gas transportation agreements | 34990 | 367062 | 531782 |
| Physical call option agreements | 1305 |  | 2063 |
| Lease agreements | 390 | 5182 | 7252 |
| Management service agreement (see Note 10) | 10951 |  | 25874 |
| &nbsp;&nbsp;&nbsp;Total | $74630 | 615527 | 961176 |

---

**(7)** **Leases** 

The Company has various operating leases for land, storage, and office equipment. These include a lease for 21.2 acres of land from Rock River Valley Industrial Park, Inc. for the Rockford generation facility, which includes easements for operating a simple cycle generation facility. This lease, renewable for two successive 20-year terms, currently extends to December 31, 2039, with annual rent payments subject to a 3% escalation.

For office space, the Company entered into a 5-year and 6-year lease on December 30, 2021, which includes a 5-year renewal option. Lease payments are made monthly, and renewal options that are reasonably certain to be exercised are included in the lease term. The Company does not have any leases with variable payments or residual value guarantees.

15 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

---

| | | |
|:---|:---|:---|
|  | **January 1,**<br>**2024 to August**<br>**8, 2024** | **Year Ended**<br>**December**<br>**31, 2023** |
| **Lease cost (in thousands)** |  |  |
| Operating lease cost | $452 | 748 |
| Short-term lease cost | 2 | 22 |
| &nbsp;&nbsp;Total lease cost | $454 | 770 |
| **Other information (in thousands):** |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Operating cash flows from operating leases | $596 | 631 |
| Weighted-average remaining lease terms (in years) | 13.49 | 14.15 |
| Weighted-average discount rate | 5.59% | 5.59% |

---

As of August 8, 2024, annual payments based on the maturities of the Company's operating leases are expected, presented by calendar year, to be as follows (in thousands):

---

| | |
|:---|:---|
| 2024 | $109 |
| 2025 | 715 |
| 2026 | 727 |
| 2027 | 577 |
| 2028 | 426 |
| 2029 | 438 |
| Thereafter | 5182 |
| Total operating lease payments | 8174 |
| &nbsp;&nbsp;&nbsp;Less: present value adjustment | (2566) |
| Total operating lease liabilities | $5608 |

---

**(8)** **Financing Arrangements** 

Our financing arrangements consisted of the following as of August 8, 2024 and December 31, 2023 (in thousands):

---

| | | |
|:---|:---|:---|
| **Loan agreement** | **August 8, 2024** | **December 31, 2023** |
| Term Loan | $1919778 | 1969079 |
| Revolving Facility | 26100 | 15900 |
| Total debt principal | 1945878 | 1984979 |
| Less: unamortized debt issuance costs and discount | (33468) | (40461) |
| Total debt | 1912410 | 1944518 |
| Less: current portion | (171848) | (5797) |
| Less: short term debt | (26100) | (15900) |
| Long-term debt | $1714462 | 1922821 |

---

16 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

***Granite***

In November 2019, Granite entered into a credit agreement with a group of lenders (the Granite Credit Agreement).

The Credit Agreement consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) $1.4 billion seven-year term loan (the Granite Term Loan)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) $100 million five year revolving and LOC facility (Granite Revolving Facility)

As of August 8, 2024, there was $40.9 million of LOCs outstanding under the Granite Revolving Facility.

The amortization of the debt issuance and deferred financing costs is reflected as a component of Interest expense, net on the accompanying combined statements of operations. For the periods ended August 8, 2024 and December 31, 2023, amortization of such costs totaled $2.6 million and $4.4 million, respectively.

The one-month interest rate in effect as of August 8, 2024 and December 31, 2023 for the Term Loan was 9.21% and 9.22%, respectively.

Under the terms of the Granite Credit Agreement, the Granite Term Loan requires quarterly scheduled principal payments of 0.25% of the original outstanding principal amount starting in March 2020. Each quarter, commencing in March 2020, a percentage, based on the first lien leverage ratio, of the excess cash flows are applied to repay a portion of the outstanding Granite Term Loan, after such, Granite is permitted, subject to meeting certain distribution conditions, to distribute the remaining excess cash. Granite is required to prepay the Granite Term Loan with 25% of any remaining excess cash flow if the first lien leverage ratio exceeds 3.75 but is less than 4.50, 50% of any remaining excess cash flow if the first lien leverage ratio exceeds 4.50 but is less than 5.75, and 75% of any remaining excess cash flow if the first lien leverage ratio exceeds 5.75.

***Helix***

On July 13, 2023, Helix executed a credit agreement with a group of lenders (the Helix Credit Agreement). The Helix Credit Agreement consisted of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) $675 million term loan with a termination date of December 31, 2027 (Helix Term Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) $175 million revolving and LOC facility with a termination date of September 30, 2027 (Helix Revolving
Facility), until September 29, 2023, which then reduced to $150 million.

The interest rate in effect at August 8, 2024, and December 31, 2023 for the Helix Term Loan was 10.08% and 10.10%.

For the period ended August 8, 2024, $46.3 million excess cash flow generated from operations was applied to repay a portion of the outstanding principal on the Helix Term Loan.

The Helix Credit Agreement requires compliance with covenants, including, among other things, financial statement reporting requirements and limitations or restrictions relating to the use of the proceeds, additional indebtedness and disposition of assets. Helix was in compliance with all covenants as of August 8, 2024.

17 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

In accordance with the Helix Credit Agreement, Helix is also required to maintain and have available a debt service reserve at least equal to the aggregate scheduled principal, interest, interest rate swaps settlement, and other scheduled debt service projected to be payable under the Helix Credit Agreement for the six-month period occurring after the last day of each calendar quarter. This requirement may be satisfied with either cash or LOCs. As of August 8, 2024, Helix issued LOCs totaling the amount of $30.0 million to satisfy this requirement.

Helix is also required to maintain and have available a major maintenance reserve at least equal to the aggregate major maintenance expenses reasonably anticipated becoming due within the six-month period occurring after the last day of each calendar quarter. This requirement may be satisfied with cash or LOCs. As of August 8, 2024, Helix had an $7.0 million LOC outstanding.

As of August 8, 2024, there was $587.1 million outstanding under the Helix Term Loan and $75.5 million of LOCs outstanding under the Helix Revolving Facility. As of December 31, 2023, there was $633.4 million outstanding under the Helix Term Loan and $123.4 million of LOCs outstanding under the Helix Revolving Facility.

The amortization of debt issuance and deferred financing costs is reflected as a component of interest expense, net on the accompanying combined statements of operations. For the period ended August 8, 2024 and December 31, 2023, amortization of such costs totaled $3.7 million and $8.0 million, respectively.

***Ocean State***

On August 8, 2018, Ocean State executed a credit agreement with a group of lenders (the Ocean State Credit Agreement). The Ocean State Credit Agreement consists of a $230.0 million seven-year term loan (the Ocean State Term Loan), and a $30.0 million seven year revolving and letter of credit facility (the Ocean State Revolving Facility). The interest rate in effect at August 8, 2024, and December 31, 2023 for the Term Loan was 8.18% and 8.20%, respectively.

In accordance with the Ocean State Credit Agreement, Ocean State is also required to maintain and have available a debt service reserve at least equal to the aggregate scheduled principal, interest, interest rate swaps settlement, and other scheduled debt service projected to be payable under the Ocean State Credit Agreement for the six month period occurring after the last day of each calendar quarter. For the year ended December 31, 2023, Ocean State issued a Letter of Credit (LOC) totaling $11.6 million to satisfy this requirement.

Ocean State is also required to maintain and have available a major maintenance reserve at least equal to the aggregate major maintenance expenses reasonably anticipated becoming due within the six month period occurring after the last day of each calendar quarter. This requirement may be satisfied with cash or LOCs. For the periods ended August 8, 2024 and December 31, 2023 Ocean State issued a LOC totaling $1.1 million.

The amortization of debt issuance and deferred financings costs is reflected as a component of interest expense, net on the accompanying combined statements of operations. For the period ended August 8, 2024 and December 31, 2023, amortization of such costs totaled $527 thousand and $858 thousand, respectively.

As of August 8, 2024, minimum principal payments for the remainder of 2024 and the following calendar years for the Granite, Helix and Ocean State are as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** |
| Minimum Principal Payments | $3674 | 169001 | 1160007 | 587096 |  |  |

---

18 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

**(9)** **Derivative Instruments and Hedging Activities** 

The Company enters into interest rate swaps to reduce its exposure to market risks from changing interest rates and commodity derivatives to reduce its exposure to market fluctuations of energy prices and gas prices. The Company is a party to the following derivative instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Interest Rate Swaps Granite*** 

The Company had several interest rate swaps with amortizing notional values with various counterparties, maturing in December 2023, to effectively convert the floating interest rate on a portion of the Term Loan to fixed interest rates ranging from 1.20% to 2.88%. These interest rate swaps were designated as cash flow hedges under ASC 815. As of December 31, 2023, there was no aggregate notional amount outstanding.

***Helix***

In July 2023, the Company entered into three interest rate swap agreements with an initial aggregate amortizing notional amount of approximately $333.5 million, to effectively convert the floating interest rate on a portion of the Term Loan to a fixed interest rate averaging 3.87% for each of the quarterly periods ending September 30, 2023 through December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Heat Rate Call Option*** 

The Company entered into several daily financial heat rate call option contracts with various counterparties. The contracts provided for receipt of fixed option premium payments by the Company, net of energy settlements based on a fixed heat rate, power reference index price, gas reference index price, and certain energy prices. The heat rate call option is marked to market with changes in fair value recognized in current period earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Commodity Derivatives*** 

The Company enters into various energy related derivatives to manage the commodity price risk associated with power revenue and fuel costs for the Generation Facilities, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap Contracts, which require payments to or from counterparties based upon the difference between
the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk associated
with changes in the ISOs power prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap Contracts, which require payments to or from counterparties based upon the difference between
the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk at multiple
delivery points associated with changes in fuel prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Capacity Contracts, which require payments from counterparties based upon the difference between the contract
and the market price for a predetermined notional amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Option Contracts, which provide the Company the ability to buy or sell power at a fixed price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) RGGI Contracts, which two parties agree to exchange a fixed number of allowances of a certain vintage
year at a fixed price for a specific delivery month.

19 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

The Power Swap Contracts, Gas Swap Contracts, Capacity Contracts, Option Contracts, Heat Rate Call Option Contracts, and RGGI Contracts are entered into as part of the Company's overall hedging strategy with respect to commodity price risk associated with energy gross margin. The Company records changes in the fair value of the commodity derivatives in the accompanying combined statements of operations in the current period.

The Company's outstanding net position as of August 8, 2024, presented by calendar year, is summarized in the following table (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** |
| Power Swap Contracts (MWh) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sell | 6219 | 9961 | 4585 | 3937 | – |  |
| Gas Swap Contracts (MMBTU) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buy | 48621 | 71219 | 32617 | 27751 | – |  |
| Capacity Contracts (MW) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sell | 900 | 900 | 805 | 150 | – |  |
| Heat Rate Call Options (MW) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sell | 280 |  |  |  | – |  |
| RGGI Contracts (CO2 tons) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buy | 20 |  |  |  | – |  |

---

***Fair Value Measurements***

The following table sets forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of August 8, 2024 and December 31, 2023. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

· Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of
the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume
to provide pricing information on an ongoing basis.

· Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which
are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using
models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including
quoted forward prices for commodities, time value, volatility factors, and current market and agreement prices for the underlying instruments,
as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace throughout the full
term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed
in the marketplace.

· Level 3 – Pricing inputs include significant inputs that are generally less observable from objective
sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

20 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

The following table presents assets and liabilities measured and recorded at fair value on the Company's combined balance sheets and their level within the fair value hierarchy as of August 8, 2024 and December 31, 2023 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of August 8, 2024** | **Fair value as of August 8, 2024** | **Fair value as of August 8, 2024** | **Fair value as of August 8, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity derivatives | $- | (73553) |  | (73553) |
| Capacity contracts |  | (46227) |  | (46227) |
| Interest rate swap |  | (1654) |  | (1654) |
| Heat rate call options |  |  | (1865) | (1865) |
| RGGI contracts | - | 3755 | - | 3755 |
| &nbsp;&nbsp;&nbsp;Assets (liabilities) from risk management activities, net | $- | (117679) | (1865) | (119544) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2023** | **Fair value as of December 31, 2023** | **Fair value as of December 31, 2023** | **Fair value as of December 31, 2023** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity derivatives | $— | (115184) |  | (115184) |
| Capacity contracts |  | (88349) |  | (88349) |
| Interest rate swap |  | (2823) |  | (2823) |
| Heat rate call options |  |  | (17210) | (17210) |
| &nbsp;&nbsp;&nbsp;Assets (liabilities) from risk management activities, net | $— | (206356) | (17210) | (223566) |

---

---

| | | |
|:---|:---|:---|
| **Fair value measurements using significant**<br>**unobservable inputs (Level 3)** | **August 8,**<br>**2024** | **December 31,**<br>**2023** |
| Balance – Beginning of Period | $(17210) | (121626) |
| Total (loss) gain on risk management activities | (1153) | 67222 |
| Settlements | 16498 | 37194 |
| Balance – Ending balance | $(1865) | (17210) |

---

For the period from January 1, 2024, to August 8, 2024, the Company did not have any transfers between Levels 1, 2, or 3.

The following tables provide quantitative information for financial instruments classified as Level 3 in the fair value hierarchy for the period from January 1, 2024, to August 8, 2024 and year ended December 31, 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Valuation**<br>**Technique** | <br>**Significant Inputs** | **Average August 8,**<br>**2024** | <br>**Units** |
| Heat rate call options | Model | Electricity regional prices | $34.63 | Dollars/MWH |
|  |  | Natural gas prices | $2.13 | Dollars/MMBtu |
|  |  | Power price volatility | 39.2% |  |
|  |  | Gas price volatility | 62.5% |  |

---

21 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Valuation**<br>**Technique** | <br>**Significant Inputs** | **Average**<br>**December 31,**<br>**2023** | <br>**Units** |
| Heat rate call options | Model | Electricity regional prices | $49.84 | Dollars/MWH |
|  |  | Natural gas prices | $2.51 | Dollars/MMBtu |
|  |  | Power price volatility | 49.5% |  |
|  |  | Gas price volatility | 60.3% |  |

---

The following tables present information concerning the impact of derivative instruments on the accompanying combined balance sheets and combined statements of operations.

***Impact of Derivative Instruments on the Accompanying Combined Balance Sheets***

The following tables present the classifications and fair value of derivative instruments on the accompanying combined balance sheets as of August 8, 2024 and December 31, 2023 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| <br>**Instrument** | <br>**Balance sheet location** | **August 8,**<br>**2024** | **December**<br>**31, 2023** |
| Derivatives not designated as hedging activities: | Derivatives not designated as hedging activities: |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swap | Assets from risk-management activities – short term | $— | 2790 |
| &nbsp;&nbsp;&nbsp;Interest rate swap | Liabilities from risk-management activities – short term | (1654) |  |
| &nbsp;&nbsp;&nbsp;Interest rate swap | Liabilities from risk-management activities – long term |  | (5613) |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Assets from risk-management activities – short term |  | 1114 |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Liabilities from risk-management activities – short term | (1865) | (18324) |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Assets from risk-management activities – short term | 120336 | 133402 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Assets from risk-management activities – long term | 137848 | 152614 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Liabilities from risk-management activities – short term | (146126) | (178755) |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Liabilities from risk-management activities – long term | (185611) | (222445) |
| &nbsp;&nbsp;&nbsp;Capacity contract | Assets from risk-management activities – short term | 9604 | 1085 |
| &nbsp;&nbsp;&nbsp;Capacity contract | Assets from risk-management activities – long term | 3984 | 8742 |
| &nbsp;&nbsp;&nbsp;Capacity contract | Liabilities from risk-management activities – short term | (34815) | (46101) |
| &nbsp;&nbsp;&nbsp;Capacity contract | Liabilities from risk-management activities – long term | (25000) | (52075) |
| &nbsp;&nbsp;&nbsp;RGGI contract | Assets from risk-management activities – short term | 3755 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives, net liability | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives, net liability | $(119544) | (223566) |

---

***Impact of Derivative Instruments on the Accompanying Combined Statements of Operations***

The following table presents the classification and amount of the gains and losses on derivative instruments in the accompanying combined statements of operations for the period from January 1, 2024, to August 8, 2024 and December 31, 2023.

The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

22 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in income on** | **Amount of gain (loss) in income on** |
| | | **derivative for the period ended** | **derivative for the period ended** |
| <br>**Instrument** | **Location of gain (loss) recognized**<br>**in income on derivatives** | **August 8, 2024** | **December 31, 2023** |
| Derivatives not designated as hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - power | Gain on risk management activities | 180481 | 618397 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - gas | Loss on risk management activities | (41400) | (452860) |
| &nbsp;&nbsp;&nbsp;Interest rate swap | Interest expense, net | 1169 | (2823) |
| &nbsp;&nbsp;&nbsp;Capacity contract | Gain on risk management activities |  | (121888) |
| &nbsp;&nbsp;&nbsp;Call option contract | Gain on risk management activities |  | 4264 |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Gain on risk management activities | (22957) | 74590 |
| &nbsp;&nbsp;&nbsp;RGGI contracts | Gain on risk management activities | 3703 | (672) |
| Total gain (loss) in income on derivatives | Total gain (loss) in income on derivatives | $120996 | 119008 |

---

For the period from January 1, 2024 to August 8, 2024 and year ended December 31, 2023, the Company did not record any ineffectiveness on the interest rate swaps.

***Offsetting of Derivative Assets and Liabilities***

The Company has elected to present derivative assets and liabilities on the balance sheets by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying combined balance sheets as of August 8, 2024 and December 31, 2023 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**August 8, 2024** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments as of**<br>**August 8, 2024** |<br>**Net amounts after**<br>**offset as of**<br>**August 8, 2024** |
| Assets from risk management activities | $275527 | (218869) | 56658 |
| Liabilities from risk management activities | (395071) | 218869 | (176202) |
| &nbsp;&nbsp;&nbsp;Net risk management activities | $(119544) |  | (119544) |

---

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**December 31, 2023** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments as of**<br>**December 31, 2023** |<br>**Net amounts after**<br>**offset as of**<br>**December 31, 2023** |
| Assets from risk management activities | $299747 | (222302) | 77445 |
| Liabilities from risk management activities | (523313) | 222302 | (301011) |
| &nbsp;&nbsp;&nbsp;Net risk management activities | $(223566) |  | (223566) |

---

23 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

**(10)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. These costs are not allocated to the Company. All other costs related to the operation and management of the Company are reflected in the accompanying combined statements of operations. Additionally, the Company provides certain overhead administrative services to an affiliate which are reflected in the accompanying combined balance sheets.

Granite has a management services agreement (MSA) with an affiliate for operational management and administrative services to its generation facilities. The affiliate receives an annual management fee of $10.0 million, plus an escalation adjustment, payable on the first day of the quarter. The MSA expires on November 7, 2026. For period from January 1, 2024 to August 8, 2024 and for the year ended December 31, 2023, the Company incurred management fees of $7.2 million and $10.6 million, respectively, which is included in Operating and maintenance on the accompanying combined statements of operations.

**(11)** **Members' Equity** 

Profits, losses, and distributions are allocated in accordance with the provisions of the Company's Limited

Liability Company agreements. During the period from January 1, 2024 to August 8, 2024 and December 31, 2023, the Company made distributions in the amount of $44.2 million and $125.3 million, respectively.

**(12)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote. The Company, from time to time, is a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's combined financial position, results of operations, or cash flows.

**(13)** **Change in Accounting Principle** 

The Company changed its method of accounting for interest rate swap agreements to remove the application of the simplified hedge accounting alternative available for private companies. These combined financial statements have been revised to remove the application of hedge accounting resulting in changes in the fair value of interest rate swaps now being recognized in earnings. This change has been applied retrospectively to all periods presented.

The effects of this change in accounting principle on the Company's combined financial statements as of and for the year ended December 31, 2023 are as follows (in thousands):

24 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

---

| | | | |
|:---|:---|:---|:---|
| <br>**Financial Statement Line Item** | **2023 Previously**<br>**Reported** | **2023 As**<br>**Revised** | **2023 Effect of**<br>**Change** |
| Combined Statements of Operations |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | $(170724) | (194617) | (23893) |
| &nbsp;&nbsp;&nbsp;Net income | $194707 | 170814 | (23893) |
| Combined Statements of Members' Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;Balances at December 31, 2022 – Members' Interest | 259864 | 280934 | 21070 |
| &nbsp;&nbsp;&nbsp;Balances at December 31, 2022 – Accumulated other comprehensive income | 21070 |  | (21070) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss | $(23893) |  | (23893) |
| &nbsp;&nbsp;&nbsp;Net income | $194707 | 170814 | (23893) |
| Combined Statements of Comprehensive Income |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in unrealized income on derivatives | $(23893) |  | 23893 |
| Combined Statements of Cash Flows |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $194707 | 170814 | (23893) |
| &nbsp;&nbsp;&nbsp;Risk management activities | $(59116) | (35223) | 23893 |

---

The 2023 previously reported amounts in the table above represent combined amounts which were previously reported separately in each entity's separate financial statements.

**(14)** **Capacity Performance Penalties and Bonuses** 

In late December 2022, Winter Storm Elliot brought severe cold weather, high winds, and some snow throughout most of the US causing energy demands to rise rapidly, generation facilities to fail to perform and natural gas production to go offline. PJM experienced approximately 23 hours of capacity performance events from December 23-24, 2022 across PJM's entire footprint. Certain generation facilities failed to meet the capacity demands during this time, while certain facilities were able to generate additional power to meet increased demand. As a result, certain generation facilities were subject to penalty or bonus payments which will result in cash settlements in 2023.

A settlement in principle was filed with FERC in September 2023, which reduced bonuses and penalties by approximately 32%. FERC also granted a waiver allowing PJM to defer collection of the remaining unbilled non-performance charges and suspended remaining bonus payments associated with Winter Storm Elliott until FERC decides on the merits of the settlement. In December 2023, FERC approved the settlement without modification. As a result of such settlement, the Company recognized in 2023 a net gain in the amount of $32.9 million from penalties and bonuses, which is reflected in Energy and capacity revenues on the accompanying combined statements of operations

As December 31, 2023, the Company recognized $2.3 million and $679 thousand in net bonuses and penalties, respectively, when netted by PJM market participant. Bonuses and penalties for each generation facility were recorded net in Accounts receivable or Accounts payable and accrued expenses on the accompanying combined balance sheets.

25 (Continued)

**FUND III PROJECTS**

Notes to Combined Financial Statements

**(15)** **Subsequent Events** 

On August 9, 2024, Helix Gen and Granite Energy contributed the equity interest of the Companies to a newly formed entity, Lightning Power, LLC (Lightning), in exchange for 68% of Class A common units in Lightning.

## Exhibit 99.5

**Exhibit 99.5**

**FUND III PROJECTS**

Condensed Combined Financial Statements

As of June 30, 2024,

For the three and six months ended June 30, 2024

(Unaudited)

---

| |
|:---|
| **FUND III PROJECTS** |
| Condensed Combined Balance Sheets |
| (Unaudited) |
| (In thousands) |

---

---

| | |
|:---|:---|
|  | **June 30, 2024** |
| **Assets** |  |
| Current assets: |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $56524 |
| &nbsp;&nbsp;&nbsp;Accounts receivable and affiliates | 76605 |
| &nbsp;&nbsp;&nbsp;Inventory | 99541 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 24362 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 120855 |
| &nbsp;&nbsp;&nbsp;Other current assets | 17981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 395868 |
| Property, plant, and equipment | 3219132 |
| Accumulated depreciation | (952485) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | 2266647 |
| Assets from risk management activities, long term | 157017 |
| Operating lease right-of-use assets, net | 5289 |
| Other noncurrent assets | 132984 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2957805 |
| **Liabilities and Members' Equity** |  |
| Current liabilities: |  |
| &nbsp;&nbsp;&nbsp;Short term debt | 27100 |
| &nbsp;&nbsp;&nbsp;Accounts payable and affiliates and accrued expenses | 66825 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 232082 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 654 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 9751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 336412 |
| Long term debt | 1885185 |
| Liabilities from risk management activities, long term | 230777 |
| Asset retirement obligations | 81681 |
| Operating lease liabilities | 4972 |
| Other long term liabilities | 20875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2559902 |
| Members' equity | 397903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and members' equity | $2957805 |

---

See accompanying notes to the interim condensed combined financial statements

**FUND III PROJECTS**

Condensed Combined Statements of Operations

For the three and six months ended June 30, 2024

(Unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **Three months**<br>**ended June 30,**<br>**2024** | **Six months**<br>**ended June 30,**<br>**2024** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;Energy and capacity revenues | $240166 | $458593 |
| &nbsp;&nbsp;&nbsp;Gain on risk management activities | 116934 | 83608 |
| &nbsp;&nbsp;&nbsp;Other revenue | 5322 | 10617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 362422 | 552818 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | 78135 | 186361 |
| &nbsp;&nbsp;&nbsp;Loss on risk management activities | 26288 | 18873 |
| &nbsp;&nbsp;&nbsp;Operating and maintenance | 48730 | 104812 |
| &nbsp;&nbsp;&nbsp;General and administrative | 10368 | 19757 |
| &nbsp;&nbsp;&nbsp;Depreciation | 29892 | 59864 |
| &nbsp;&nbsp;&nbsp;Accretion | 1090 | 2180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 194503 | 391847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 167919 | 160971 |
| Interest expense, net | (46251) | (89056) |
| Other loss, net | (33847) | (34317) |
| Equity in net loss of unconsolidated affiliate | (452) | (675) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $87369 | $36923 |

---

See accompanying notes to the interim condensed combined financial statements

**FUND III PROJECTS**

Condensed Combined Statements of Members' Equity

For the three and six months ended June 30, 2024

(Unaudited)

(In thousands)

---

| | |
|:---|:---|
|  | **Members'**<br>**equity** |
| Balances at March 31, 2024 | $323487 |
| Net income | 87369 |
| Capital contribution | 11776 |
| Distributions | (24729) |
| Balances at June 30, 2024 | $397903 |
| Balances at December 31, 2023 | $363038 |
| Net income | 36923 |
| Capital contribution | 22671 |
| Distributions | (24729) |
| Balances at June 30, 2024 | $397903 |

---

See accompanying notes to the interim condensed combined financial statements

**FUND III PROJECTS**

Condensed Combined Statements of Cash Flows

For the three and six months ended June 30, 2024

(Unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **Three months**<br>**ended June 30,**<br>**2024** | **Six months**<br>**ended June 30,**<br>**2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $87369 | $36923 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 29892 | 59864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 2884 | 5752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 108 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on derivative instruments | (93253) | (38464) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of investment | 30586 | 30586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in net loss (income) of unconsolidated affiliates | (104) | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of asset retirement obligations | 1090 | 2180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in accounts receivable | (22217) | (27393) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in inventory and capital spares | (180) | (3941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in prepaid expenses | (1837) | 3383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other current assets | (5039) | (2770) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other noncurrent assets | (3892) | (2532) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in operating lease liabilities | (2) | (383) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable and accrued expenses | (410) | (27225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other current liabilities | 6149 | 9751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in deferred revenue | (397) | (1548) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in other long term liabilities | (2310) | (2492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 28437 | 42027 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (5268) | (9254) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (5268) | (9254) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Principal payments on long term debt | (24957) | (49301) |
| &nbsp;&nbsp;&nbsp;Proceeds from working capital loans | 2000 | 11200 |
| &nbsp;&nbsp;&nbsp;Capital contributions | 11776 | 22671 |
| &nbsp;&nbsp;&nbsp;Cash distribution | (17566) | (17566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (28747) | (32996) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in restricted cash | (5578) | (223) |
| &nbsp;&nbsp;&nbsp;Restricted cash, beginning of period | 62102 | 56747 |
| &nbsp;&nbsp;&nbsp;Restricted cash, end of period | $56524 | $56524 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $47506 | $94996 |
| Supplemental disclosure of noncash financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;In May 2024, the Company transferred its equity interest in a certain generation facility | $(7163) | $(7163) |

---

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(1)** **Organization** 

The accompanying condensed combined financial statements of Fund III Projects (the "Company"), includes the operations and assets held by the operating entities Granite Generation, LLC ("Granite"), Helix Gen Funding, LLC ("Helix"), and Ocean State Power LLC ("Ocean State"). Helix also owns 100% in Rise Light & Power, LLC and subsidiaries ("Rise"). The operating entities hold an array of generation facilities (collectively, the "Generation Facilities") that are strategically positioned in key power markets, including PJM Interconnection LLC ("PJM"), ISO-New England Inc. ("ISO-NE"), and New York Independent System Operator ("NYISO").

The operating entities were historically owned by LS Power Equity Partners III, L.P., an investment vehicle of LS Power Development LLC. On August 9, 2024 the operating entities were contributed to Lightning Power Holdings, LLC, a newly formed entity (refer to Note 12).

The Generation Facilities owned by the Company are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Generation Facilities** | **Location** | **Size** | **Year operational** | **Type** |
| Springdale Energy, LLC | Springdale, PA | 700 MW | 1999-2003 | Simple & Combined Cycle |
| Gans Energy, LLC | Gans, PA | 96 MW | 2000 | Simple Cycle |
| Chambersburg Energy, LLC | Chambersburg, PA | 100 MW | 2001 | Simple Cycle |
| Aurora Generation, LLC | Aurora, IL | 1,050 MW | 2001 | Simple Cycle |
| Rockford Generation, LLC | Rockford, IL | 550 MW | 2000/2002 | Simple Cycle |
| Armstrong Power, LLC | Shelocta, PA | 780 MW | 2002 | Simple Cycle |
| Troy Energy, LLC | Luckey, OH | 780 MW | 2002 | Simple Cycle |
| Helix Ironwood, LLC | Lebanon, PA | 760 MW | 2001 | Combined Cycle |
| Helix Ravenswood, LLC | Queens, NY | 2,002 MW | 1963 | Simple & Combined Cycle |
| Ocean State Power, LLC | Burrillville, RI | 560 MW | 1990 | Combined Cycle |

---

**(2)** **Summary of Significant Accounting Policies** 

***Basis of Presentation***

The condensed combined financial statements of the Company have been prepared by us, without audit, in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included, and intercompany transactions have been eliminated in the interim condensed and combined financial statements. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These condensed combined consolidated financial statements be read in conjunction with the audited consolidated combined financial statements and the notes for the period January 1, 2024 to August 8, 2024, and for the year ended December 31, 2023. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

These condensed combined financial statements and notes reflect the Company's evaluation of events occurring subsequent to the condensed combined balance sheet date through August 15, 2025, the date the condensed combined financial statements were issued.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Use of Estimates***

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the condensed combined financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to derivative instruments and asset retirement obligations. Actual results could differ materially from those estimates.

***Restricted Cash***

Restricted cash consists of amounts that are restricted under the terms of certain financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

**(3)** **Select Balance Sheet Information** 

***Inventory***

As of June 30, 2024, spare parts inventory, natural gas, and fuel oil were $53.3 million, $0.5 million and $45.7 million, respectively.

***Asset Retirement Obligations***

As of June 30, 2024, the Company has a liability of approximately $81.7 million for asset retirement obligations to provide for the future removal and dismantling of certain generation facilities. Accretion expense was $1.1 million and $2.2 million for the three and six months ended June 30, 2024, respectively.

***Property, Plant and Equipment, Net***

Property, plant and equipment are stated at cost, less accumulated depreciation. As of June 30, 2024, Property, plant and equipment, net consisted of the following (in thousands):

---

| | |
|:---|:---|
|  | **June 30, 2024** |
| Land and improvements | $87879 |
| Plant and equipment | 3072446 |
| Computer software and hardware | 6613 |
| Vehicles | 426 |
| Warehouse Storage | 209 |
| Mechanical equipment | 1805 |
| Office furniture and equipment | 260 |
| Construction in progress | 11070 |
| Capital spares | 38424 |
| &nbsp;&nbsp;&nbsp;Total property, plant and equipment | 3219132 |
| Accumulated depreciation | (952485) |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | $2266647 |

---

For the three and six months ended June 30, 2024, depreciation expense for property, plant and equipment was $29.9 million and $59.9 million, respectively.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Other Noncurrent Assets***

Other Noncurrent Assets primarily consists of an initial loan that was made by Rise to Attentive Energy LLC (Attentive). The loan accrues interest at 7% per annum and expires December 31, 2027. As of June 30, 2024, the Company had a loan receivable of $133.0 million. Other noncurrent assets are stated at their carrying values, net of a reserve for doubtful accounts, based on evidence of collectability. There were no impairments to other noncurrent assets as of June 2024.

***Regional Greenhouse Gas Initiative Allowances***

The Company is located in states that participate in the Regional Greenhouse Gas Initiative (RGGI) to reduce greenhouse gas emissions.

As of June 30, 2024, the Company recorded accounts payable of $19.6 million related to RGGI liabilities. For the three and six months ended June 30, 2024, RGGI allowance expense was $11.1 million and $18.2 million, respectively, and was recorded as part of Fuel and transportation expenses in the combined statements of operations.

**(4)** **Revenue Recognition** 

Capacity revenue is recognized over time as the Company satisfies its performance obligation of maintaining available generation capacity at negotiated contract terms. Energy revenue consists of physical and financial transactions and is recognized when the performance obligation is satisfied upon delivery of electricity to customers. Physical transactions or the sale of generated electricity to meet supply are recorded on a gross basis in the accompanying combined statements of operations in accordance with ASC 606, Revenue from Contracts with Customers. The Company elected to apply the practical expedient to recognize revenue in the amount it has the right to invoice for both capacity and energy revenue, as this represents the value transferred to customers. For the three and six months ended June 30, 2024, capacity revenue amounted to $99.2 million and $187.7 million, respectively, which are reflected as a component of energy and capacity revenues in the accompanying condensed combined statements of operations.

**(5)** **Equity Method Investment** 

The Company holds 16.3% equity interest in Attentive. The Company accounts for this investment using the equity method of accounting as the Company exercises significant influence but not control over the Attentive's operating and financial policies. As of December 31, 2023, the carrying value of the investment in Attentive was $30.6 million. During the three and six months ended June 30, 2024 the Company determined that its investment in Attentive was impaired due to significant regulatory and contractual challenges that materially reduced the likelihood of Attentive's projects progressing as planned. As a result, the carrying value was written down by $30.6 million to $0. This impairment loss was recorded in Other (loss) income, net in the combined statements of operations. There was no material operating activity in Attentive during the periods presented. See Note 3 – Other Noncurrent Assets regarding the loan receivable from Attentive.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(6)** **Facility and Contract Commitments** 

***Energy Management Agreements***

The Company incurred costs under energy management agreements (EMAs) of $0.6 million and $1.1 million for the three and six month periods ended June 30, 2024, respectively, recorded in general and administrative expense. The characteristics and details of the EMAs remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Operation and Maintenance Agreements***

The Company incurred costs under operation and maintenance agreements (O&M) agreements of $14.3 million and $29.0 million for the three and six month periods ended June 30, 2024, respectively, recorded in Operating and maintenance expense. The characteristics and details of the O&M agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Asset Management and Fuel Supply Agreements***

The Company incurred costs under asset management and fuel supply agreements of $56.5 million and $145.3 million for the three and six month periods ended June 30, 2024, respectively, recorded in Fuel and transportation expense. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Gas Transportation and Storage Agreements***

The Company incurred costs under gas transportation agreements of $9.8 million and $20.1 million for the three and six month periods ended June 30, 2024, respectively, recorded in Fuel and transportation expense. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Equipment Maintenance Agreements***

The Company made payments under long-term service agreements (LTSAs), term warranty contracts (TWCs), and contractual service agreements (CSAs) totaling $7.1 million and $2.3 million for the three and six month periods ended June 30, 2024, respectively. Excess payments or costs are reflected in Accounts Payable, Other long-term liabilities, or Other current assets, as applicable, in the condensed combined balance sheets. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Physical Gas Call Option Agreements***

The Company incurred costs under physical gas call option agreements of $64.3 million and $160.7 million for the three and six month periods ended June 30, 2024, respectively, recorded in Fuel and transportation expense. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Capacity Agreements***

The Company has agreements to sell capacity at fixed quantities and prices for specified periods. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Electric and Gas Interconnection Agreements***

The Company maintains electric and gas interconnection agreements to connect its generation facilities to the power grid and natural gas pipelines. No maintenance costs were incurred under these agreements for the three and six months periods ended June 30, 2024. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

The Company's significant long-term contractual and commercial commitments are summarized above.

**(7)** **Financing Arrangements** 

Our financing arrangements consisted of the following as of June 30, 2024 (in thousands):

---

| | |
|:---|:---|
| **Loan agreement** | **June 30, 2024** |
| Term Loans | $1913494 |
| Revolving Facility | 27100 |
| Total debt principal | 1940594 |
| Less: unamortized debt issuance costs and discount | (28309) |
| Total debt | 1912285 |
| Less: short term debt | (27100) |
| Long term debt | $1885185 |

---

***Granite***

In November 2019, Granite entered into a credit agreement with a group of lenders (the Granite Credit Agreement).

The Credit Agreement consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) $1.4 billion seven-year term loan (the Granite Term Loan)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) $100 million five year revolving and Line of Credit (LOC) facility (Granite Revolving Facility)

As of June 30, 2024, there was $1.2 billion outstanding under the Granite Term Loan. LOCs outstanding under the Granite Revolving Facility totaled $40.9 million. Granite was in compliance with all covenants as of June 30, 2024.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

The one-month interest rate in effect for the Granite Term Loan was 9.21% as of June 30, 2024.

Amortization of debt issuance and deferred financing costs for the three and six months periods ended June 30, 2024, totaled $1.1 million and $2.2 million, respectively.

***Helix***

On July 13, 2023, Helix executed a credit agreement with a group of lenders (the Helix Credit Agreement). The Helix Credit Agreement consisted of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) $675 million term loan with a termination date of December 31, 2027 (Helix Term Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) $175 million revolving and LOC facility with a termination date of September 30, 2027 (Helix Revolving Facility), until September 29,
2023, which then reduced to $150 million.

As of June 30, 2024, there was $587.1 million outstanding under the Helix Term Loan. LOCs outstanding under the Helix Revolving Facility totaled $75.5 million. Helix was in compliance with all covenants as of June 30, 2024.

The interest rate in effect for the Helix Term Loan was 10.08% as of June 30, 2024.

Amortization of debt issuance and deferred financing costs for the three and six-month periods ended June 30, 2024, totaled $1.5 million and $3.1 million, respectively.

***Ocean State***

On August 8, 2018, Ocean State executed a credit agreement with a group of lenders (the Ocean State Credit Agreement). The Ocean State Credit Agreement consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) $230 million seven-year term loan (the Ocean State Term Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) $30 million seven year revolving and letter of credit facility (the Ocean State Revolving Facility)

As of June 30, 2024, there was $172.7 million outstanding under the Ocean State Term Loan. LOCs outstanding under the Ocean State Revolving Facility totaled $1.9 million to satisfy debt service reserve requirements. Ocean State was in compliance with all covenants as of June 30, 2024.

The interest rate in effect for the Ocean State Term Loan was 8.18% as of June 30, 2024.

Amortization of debt issuance and deferred financing costs for the three and six month periods ended June 30, 2024, totaled $218.1 thousand and $435.1 thousand, respectively.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(8)** **Derivative Instruments and Hedging Activities** 

The Company enters into interest rate swaps to reduce its exposure to market risks from changing interest rates and commodity derivatives to reduce its exposure to market fluctuations of energy prices and gas prices. The Company is a party to the following derivative instruments:

***Interest Rate Swaps***

*Granite*

The Company had several interest rate swaps with amortizing notional values with various counterparties, maturing in December 2023, to effectively convert the floating interest rate on a portion of the Term Loan to fixed interest rates ranging from 1.20% to 2.88%. The Company records changes in the fair value of the interest rate swaps in the accompanying condensed combined statement of operations in the current period.

*Helix*

In July 2023, the Company entered into three interest rate swap agreements with an initial aggregate amortizing notional amount of approximately $333.5 million, to effectively convert the floating interest rate on a portion of the Term Loan to a fixed interest rate averaging 3.87% for each of the quarterly periods ending September 30, 2023 through December 31, 2027. The Company records changes in the fair value of the interest rate swaps in the accompanying condensed combined statement of operations in the current period.

***Heat Rate Call Option***

The Company entered into two daily financial heat rate call option contracts with various counterparties. The contracts provided for receipt of fixed option premium payments by the Company, net of energy settlements based on a fixed heat rate, power reference index price, gas reference index price, and certain energy prices. The heat rate call option is marked to market with changes in fair value recognized in current period earnings.

***Commodity Derivatives***

The Company enters into various energy related derivatives to manage the commodity price risk associated with power revenue and fuel costs for the Generation Facilities, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap Contracts, which require payments to or from counterparties based upon the difference between
the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk associated
with changes in the ISOs power prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap Contracts, which require payments to or from counterparties based upon the difference between
the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk at multiple
delivery points associated with changes in fuel prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Capacity Contracts, which require payments from counterparties based upon the difference between the contract
and the market price for a predetermined notional amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Option Contracts, which provide the Company the ability to buy or sell power at a fixed price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) RGGI Contracts, which two parties agree to exchange a fixed number of allowances of a certain vintage
year at a fixed price for a specific delivery month.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

The Power Swap Contracts, Gas Swap Contracts, Capacity Contracts, Option Contracts, Heat Rate Call Option Contracts, and RGGI Contracts are entered into as part of the Company's overall hedging strategy with respect to commodity price risk associated with energy gross margin. The Company records changes in the fair value of the commodity derivatives in the accompanying condensed combined statements of operations in the current period.

***Fair Value Measurements***

The following table sets forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of June 30, 2024. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of
the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume
to provide pricing information on an ongoing basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which
are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using
models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including
quoted forward prices for commodities, time value, volatility factors, and current market and agreement prices for the underlying instruments,
as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace throughout the full
term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed
in the marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 3 – Pricing inputs include significant inputs that are generally less observable from objective
sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

The following table presents assets and liabilities measured and recorded at fair value on the Company's condensed combined balance sheet and their level within the fair value hierarchy as of June 30, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of June 30, 2024** | **Fair value as of June 30, 2024** | **Fair value as of June 30, 2024** | **Fair value as of June 30, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity Derivatives | $- | (124019) |  | (124019) |
| Capacity Contracts |  | (48396) |  | (48396) |
| Call Options |  | 3623 |  | 3623 |
| Heat Rate Call Options |  |  | (14096) | (14096) |
| RGGI Contracts | - | (2099) | - | (2099) |
| Assets (liabilities) from risk management activities, net | $- | (170891) | (14096) | (184987) |

---

For the periods ending June 30, 2024, the Company did not have any transfers between Levels 1, 2, or 3.

The following tables provide quantitative information for financial instruments classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | <br>**Significant Inputs** | **Average**<br>**YTD June 31,**<br>**2024** | <br>**Units** |
| Heat rate call options | Model | Electricity regional prices | $54.87 | Dollars/MWH |
|  |  | Natural gas prices | $2.61 | Dollars/MMBtu |
|  |  | Power price volatility | 69.4% |  |
|  |  | Gas price volatility | 56.0% |  |

---

The following tables present information concerning the impact of derivative instruments on the accompanying condensed combined balance sheets and condensed combined statements of operations.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Impact of Derivative Instruments on the Accompanying Condensed Combined Balance Sheets***

The following tables present the classifications and fair value of derivative instruments on the accompanying condensed combined balance sheets as of June 30, 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| **Instrument** | **Balance sheet location** | **June 30, 2024** |
| Derivatives not designated as hedging activities: |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swap | Assets from risk-management activities | $3677 |
| &nbsp;&nbsp;&nbsp;Interest rate swap | Assets from risk-management activities, long term | 64 |
| &nbsp;&nbsp;&nbsp;Interest rate swap | Liabilities from risk-management activities, long term | (118) |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Liabilities from risk-management activities | (14096) |
| &nbsp;&nbsp;&nbsp;Commodity Derivatives | Assets from risk-management activities | 107688 |
| &nbsp;&nbsp;&nbsp;Commodity Derivatives | Assets from risk-management activities, long term | 153043 |
| &nbsp;&nbsp;&nbsp;Commodity Derivatives | Liabilities from risk-management activities | (181885) |
| &nbsp;&nbsp;&nbsp;Commodity Derivatives | Liabilities from risk-management activities, long term | (202865) |
| &nbsp;&nbsp;&nbsp;Capacity contract | Assets from risk-management activities | 9490 |
| &nbsp;&nbsp;&nbsp;Capacity contract | Assets from risk-management activities, long term | 3910 |
| &nbsp;&nbsp;&nbsp;Capacity contract | Liabilities from risk-management activities | (34002) |
| &nbsp;&nbsp;&nbsp;Capacity contract | Liabilities from risk-management activities, long term | (27794) |
| &nbsp;&nbsp;&nbsp;RGGI contract | Liabilities from risk-management activities | (2099) |
| &nbsp;&nbsp;&nbsp;Total derivatives, net liability |  | $(184987) |

---

***Impact of Derivative Instruments on the Accompanying Condensed Combined Statements of Operations***

The following table presents the classification and amount of the gains and losses on derivative instruments in the accompanying condensed combined statements of operations for the three and six-month ended June 30, 2024. The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in income<br> on derivative** | **Amount of gain (loss) in income<br> on derivative** |
| <br>**Instrument** | <br>**Location of gain (loss) recognized**<br>**in income on derivatives** | **Three-months**<br>**ended June 30,**<br>**2024** | **Six-months**<br>**ended June 30,**<br>**2024** |
| Derivatives not designated as hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | Interest expense, net | $6446 | $948 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - power | Gain on risk management activities | 129671 | 98001 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - gas | Loss (Gain) on risk management activities | (26288) | (18873) |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Gain on risk management activities | (10783) | (12294) |
| &nbsp;&nbsp;&nbsp;RGGI Contracts | Gain on risk management activities | (1954) | (2099) |
| Total gain in income on derivatives |  | $97092 | $65683 |

---

***Offsetting of Derivative Assets and Liabilities***

The Company has elected to present derivative assets and liabilities on the balance sheets by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

**FUND III PROJECTS**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying condensed combined balance sheet as of June 30, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**June 30, 2024** | **Offsetting amounts**<br>**of derivative**<br>**instruments as of**<br>**June 30, 2024** |<br>**Net amounts after**<br>**offset as of June**<br>**30, 2024** |
| Assets from risk management activities | $277872 | $(234714) | $43158 |
| Liabilities from risk management activities | (462859) | 234714 | (228145) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net risk management activities | $(184987) | $- | $(184987) |

---

**(9)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. These costs are not allocated to the Company. All other costs related to the operation and management of the Company are reflected in the accompanying and condensed combined statements of operations. Additionally, the Company provides certain overhead administrative services to an affiliate which are reflected in the accompanying and condensed combined balance sheets.

**(10)** **Members' Equity** 

Profits, losses, and distributions are allocated in accordance with the provisions of the Company's Limited Liability Company agreement. During the three and six months ended June 30, 2024, the Company made distributions in the amount of $24.7 million, and $24.7 million, respectively. For the three and six months ended June 30, 2024, the Company received contributions of $11.8 million and $22.7 million, respectively.

**(11)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote. The Company, from time to time, is a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's financial position, results of operations, or cash flows.

**(12)** **Subsequent Events** 

On August 9, 2024, Helix Gen and Granite Energy contributed the equity interest of the Companies to a newly formed entity, Lightning Power, LLC, in exchange for 68% of Class A common units in Lightning.

## Exhibit 99.6

**Exhibit 99.6**

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024, and<br> for the year ended December 31, 2023

(With Independent Auditor's Report Thereon)

![](tm2526385d1_ex99-6img001.jpg)

KPMG LLP

Suite 4000

1735 Market Street

Philadelphia, PA 19103-7501

**Independent Auditors' Report**

The Member

Gridiron Intermediate Holdings, LLC:

*Opinion*

We have audited the consolidated financial statements of Gridiron Intermediate Holdings, LLC and its subsidiaries (the Company), which comprise the consolidated balance sheets as of August 8, 2024 and December 31, 2023, and the related consolidated statements of operations, member's equity, and cash flow for the periods then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of August 8, 2024 and December 31, 2023, and the results of its operations and its cash flows for the periods then ended in accordance with U.S. generally accepted accounting principles.

*Basis for Opinion*

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

*Emphasis of Matter*

As discussed in Note 12 to the consolidated financial statements, the Company has elected to change its method of accounting for interest rate swaps to remove the application of the simplified hedge accounting alternative available for private companies. Consequently, the Company's consolidated financial statements for the year ended December 31, 2023 have been revised. Our opinion is not modified with respect to this matter.

*Responsibilities of Management for the Consolidated Financial Statements*

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the consolidated financial statements are available to be issued.

*Auditors' Responsibilities for the Audit of the Consolidated Financial Statements*

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

![](tm2526385d1_ex99-6img002.jpg)

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding
the amounts and disclosures in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly,
no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

![](tm2526385d1_ex99-6img003.jpg)

Philadelphia, Pennsylvania

June 26, 2025

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Balance Sheets

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **August 8, 2024** | **December 31, 2023** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $51897 | 15202 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 19092 | 17392 |
| &nbsp;&nbsp;&nbsp;Inventory | 29979 | 29857 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 3576 | 4500 |
| &nbsp;&nbsp;&nbsp;Deposits | 15274 | 18570 |
| &nbsp;&nbsp;&nbsp;Intangible assets | 584 | 584 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 51793 | 64850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 172195 | 150955 |
| Property, plant, and equipment | 1872455 | 1867941 |
| Accumulated depreciation | (540243) | (498555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant, and equipment, net | 1332212 | 1369386 |
| Intangible assets, net | 9792 | 10145 |
| Assets from risk management activities | 143164 | 154580 |
| Operating lease right-of-use assets, net | 18527 | 19099 |
| Other noncurrent assets | 5947 | 3027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1681837 | 1707192 |
| **Liabilities and Member's Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of long term debt | $52069 | 60631 |
| &nbsp;&nbsp;&nbsp;Short term debt | 59500 |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 65896 | 106653 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 121500 | 148746 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 707 | 706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 299672 | 316736 |
| Long term debt | 431211 | 461665 |
| Asset retirement obligations | 5077 | 4924 |
| Liabilities from risk management activities | 276854 | 340447 |
| Operating lease liabilities | 20601 | 21026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1033415 | 1144798 |
| Member's equity | 648422 | 562394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and member's equity | $1681837 | 1707192 |

---

See accompanying notes to the consolidated financial statements.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Operations

January 1, 2024 to August 8, 2024 and Year ended December 31, 2023

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **January 1 to August 8** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;Energy and capacity revenues | $211973 | 350061 |
| &nbsp;&nbsp;&nbsp;Gain on risk management activities | 81199 | 294102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 293172 | 644163 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | 85697 | 176688 |
| &nbsp;&nbsp;&nbsp;Loss on risk management activities | 18977 | 135908 |
| &nbsp;&nbsp;&nbsp;Operating and maintenance | 34049 | 70310 |
| &nbsp;&nbsp;&nbsp;General and administrative | 3462 | 5475 |
| &nbsp;&nbsp;&nbsp;Depreciation | 41686 | 69319 |
| &nbsp;&nbsp;&nbsp;Accretion | 154 | 242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 184024 | 457942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 109148 | 186221 |
| Interest expense, net | (24518) | (42454) |
| Other loss, net | (2603) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $82028 | 143767 |

---

See accompanying notes to the consolidated financial statements.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Member's Equity

(In thousands)

---

| | |
|:---|:---|
|  | **Member's**<br>**equity** |
| Balances at December 31, 2022 | $415127 |
| Net income | 143767 |
| Capital contributions | 3500 |
| Balances at December 31, 2023 | $562394 |
| Balances at December 31, 2023 | $562394 |
| Net income | 82028 |
| Capital contributions | 4000 |
| Balances at August 8, 2024 | $648422 |

---

See accompanying notes to the consolidated financial statements.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Cash Flows

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **January 1 to August 8** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $82028 | 143767 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 41686 | 69319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 353 | 584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 572 | 918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 2210 | 4230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk management activities | (66492) | (162786) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion | 154 | 242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts receivable | (1700) | 45266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in inventory and capital spares | (122) | 14683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in prepaid expenses | 924 | 305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (Increase) in deposits | 3296 | (615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other current assets |  | 650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other noncurrent assets | (2920) | 1887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable and accrued expenses | (40755) | (30896) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease increase in deferred revenue |  | (591) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in operating lease liabilities | (424) | (632) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 18810 | 86331 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (4514) | (2911) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (4514) | (2911) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of short-term debt | 123500 | 3000 |
| &nbsp;&nbsp;&nbsp;Principal payments on short-term debt | (64000) | (44000) |
| &nbsp;&nbsp;&nbsp;Principal payments on long-term debt | (41101) | (72959) |
| &nbsp;&nbsp;&nbsp;Capital contributions | 4000 | 3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 22399 | (110459) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in restricted cash | 36695 | (27039) |
| Restricted cash, beginning of period | 15202 | 42241 |
| Restricted cash, end of period | $51897 | 15202 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $18049 | 39398 |

---

See accompanying notes to the consolidated financial statements.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

**(1)** **Organization** 

Gridiron Intermediate Holdings, LLC (Gridiron Intermediate or the Company) a Delaware limited liability company, was formed on August 29, 2019 to wholly own Gridiron Acquisition Holdings, LLC, which wholly owns Gridiron Funding, LLC (Gridiron Funding), which owns and finances certain power generation facilities which produces, sells and delivers energy and energy products and services into the PJM Interconnection LLC and ISO-New England Inc. (PJM and ISO-NE) power markets in the United States. Gridiron Funding includes LSP University Park, LLC (University Park), University Park Energy, LLC (University Park Energy), Wallingford Energy, LLC (Wallingford), Riverside Generating Company, LLC (Riverside), Doswell Limited Partnership (Doswell), (collectively, the Generation Facilities), Amsterdam Holdings, LLC, Wallingford Energy II LLC, Port River Energy Marketing, LLC, and Amsterdam Energy Marketing, LLC.

Gridiron Intermediate is indirectly wholly owned by Gridiron Holdings, LLC (Gridiron Holdings). Gridiron Energy, LLC (Gridiron Energy) and Gridiron Energy Management, LLC (Gridiron Management), respectively, own 100% of the Class A interests and 100% of the Class P interests in Gridiron Holdings. Gridiron Management is the manager of Gridiron Energy and Gridiron Holdings. Gridiron Services, LLC provides asset manager services to Gridiron Holdings. Gridiron Energy is scheduled to terminate on April 19, 2026, provided however, that such date may be extended by Gridiron Management for two additional one-year terms, and may be further extended in accordance with the Gridiron Energy Membership and Participation Agreement.

The Generation Facilities that are owned by the Company are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Entity** | **Location** | **Size** | **Year operational** | **Type** |
| LSP University Park, LLC | University Park, IL | 582 MW | 2002 | Simple Cycle |
| University Park Energy, LLC | University Park, IL | 328 MW | 2001 | Simple Cycle |
| Wallingford Energy, LLC | Wallingford, CT | 350 MW | 2002 | Simple Cycle |
| Riverside Generating Company, LLC | Louisa, KY | 976 MW | 1999 | Simple Cycle |
| Doswell Limited Partnership | Hanover County, VA | 1274 MW | 2001, 1992 | Simple Cycle & Combined Cycle |

---

**(2)** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Basis of presentation*** 

The consolidated financial statements and related notes are presented in accordance with U.S. generally accepted accounting principles (U.S. GAAP). These consolidated financial statements include the financial statements of the Company. All intercompany transactions have been eliminated in the consolidated financial statements.

Operating results for the period ended August 8, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other period. The operating results for fiscal year 2024 reflect activity only up to August 8, 2024, due to a Contribution transaction that occurred on August 9, 2024 (refer to Note 12). The consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

These consolidated financial statements and notes reflect the Company's evaluation of events occurring subsequent to the consolidated balance sheet date through June 26, 2025, the date the consolidated financial statements were issued.

&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Use of Estimates*** 

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the consolidated financial statements in conformity with U.S. generally accepted accounting principles. The most significant of these estimates and assumptions relate to the valuation of derivative instruments and asset retirement obligations. Actual results could differ materially from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Restricted Cash*** 

Restricted cash consists of amounts that are restricted under the terms of the Company's financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Accounts Receivable*** 

Accounts receivable primarily consists of amounts owed to the Company from Engie Energy Marketing NA, Inc. (Engie), Boston Energy Trading Marketing LLC (BETM), and Nextera Energy Power Marketing, LLC (Nextera) under energy management agreements (EMA or collectively the EMAs) for electric energy delivered to the PJM or ISO-NE markets (collectively the RTOs) and amounts owed to the Company from the RTOs for capacity delivered to the respective market. Accounts receivable also consists of amounts owed to the Company for hedge settlements, fuel sales, and bilateral capacity settlements from energy marketers or other counterparties.

&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Allowance for doubtful accounts*** 

Management establishes reserves on accounts receivable if it becomes probable that the Company will not collect part of the outstanding accounts receivable balance. Management reviews collectability and establishes or adjusts its allowance using the specific identification method.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Inventory*** 

Inventory consists of fuel oil, natural gas and spare parts used in the production of electricity. Inventory is stated at the lower of weighted average cost or net realizable value. The current carrying value of both fuel oil and natural gas inventories will be recovered with normal profits in the ordinary course of business through the generation and sale of energy. As of August 8, 2024, and December 31, 2023, fuel oil was $9.0 million. As of August 8, 2024, and December 31, 2023, spare parts inventories were $21.0 and $20.9 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Property, Plant, and Equipment*** 

Property, plant and equipment is stated at cost, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of individual assets or classes of assets. Plant and equipment is being depreciated over the estimated useful lives of the respective power generation facilities ranging from 20 to 30 years. The estimated useful lives for computer software is 3 years, computer hardware is 5 years, vehicles are 5 years, and office equipment and furniture and fixtures are 7 years. Property, plant, and equipment also includes capital spares inventory available for use in major maintenance. Additions and improvements extending asset lives beyond their remaining estimated useful lives and capital spares are capitalized, while repairs and maintenance, including major maintenance, are charged to expense as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;***(h)***  ***Impairment of Long Lived Assets and Intangible Assets*** 

In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360, Property, Plant, and Equipment, long-lived assets and intangible assets with determinable useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the costs to sell. Intangible assets are amortized over their respective estimated useful lives in accordance with ASC 350, Intangibles – Goodwill and Other, which promulgates the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset.

&nbsp;&nbsp;&nbsp;&nbsp;***(i)***  ***Asset Retirement Obligations*** 

In accordance with ASC 410, Asset Retirement Obligations and Environmental Obligations, the Company recognizes the fair value of the liability for asset retirement obligations in the period in which it is incurred if a reasonable estimate of fair value can be made. An amount equal to the present value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the useful life of the asset. The liability is accreted through charges to operating expenses. If the obligation is settled for an amount other than the carrying amount of the liability, a gain or loss is recognized upon settlement.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

As of August 8, 2024 and December 31, 2023, the Company had a liability of $5.1 million and $4.9 million, respectively, for asset retirement obligations to provide for the future removal and dismantling of the Riverside and Wallingford generation facilities. For the periods ended August 8, 2024, and December 31, 2023, accretion expense was $154 thousand and $242 thousand, respectively, in the accompanying consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;***(j)***  ***Leases*** 

In accordance with FASB ASC 842, *Leases*, the Company evaluates each contract at inception to determine if it contains a lease. The Company considers a contract to be a lease when an asset is either explicitly or implicitly identified in the contract; and the contract conveys to the Company the right to control the use of the identified asset during the contract period. Operating leases are included in Operating lease right-of-use assets, net and Operating lease liabilities in the Company's consolidated balance sheet.

Operating lease right-of-use assets represent our right to use an underlying asset for the lease term, and operating lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Renewal options that are reasonably certain to be exercised are included in the lease term. In determining the present value of the future lease payments, the Company uses the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the payments for the lease. Short-term leases, leases with a term of 12 months are less at inception, are not recorded on the Company's consolidated balance sheet. Lease expenses for all operating leases are expensed on a straight-line basis over the lease term on the Company's consolidated statement of income. (See Note 5).

&nbsp;&nbsp;&nbsp;&nbsp;***(k)***  ***Intangible Assets*** 

The Company recorded an acquired asset management arrangement at fair value as an intangible asset on the accompanying consolidated balance sheets. The intangible asset is being amortized using the straight line method over the term of the contract as a reduction in Energy and capacity revenues on the accompanying consolidated statements of operations.

As of August 8, 2024, and December 31, 2023, the intangible asset, net of amortization, is $9.8 million and $10.1 million, respectively. For the periods ended August 8, 2024, and December 31, 2023, the Company recorded $353 thousand and $584 thousand of amortization related to the arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;***(l)***  ***Revenue Recognition*** 

Capacity and bilateral capacity revenues are recognized over time as the Company satisfies its performance obligations of maintaining available generation capacity at negotiated contract terms. Electric energy revenue consists of physical and financial transactions and is recognized when the performance obligation is satisfied upon delivery of electricity to customers. Physical transactions for the sale of generated electricity to meet supply are recorded on a gross basis in accordance with ASC 606, *Revenue from Contracts with Customers* (ASC 606), as the Company controls the specified electricity before transfer to customers. The Company has elected to apply the practical expedient to recognize revenue in the amount it has the right to invoice for both capacity and energy revenue, as this represents the value transferred to customers.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

For the period ended August 8, 2024, and December 31, 2023, capacity revenues were $30.1 million and $65.7 million, respectively, which are reflected as a component of energy and capacity revenues in the accompanying consolidated statements of operations. Additionally, for the year ended December 31, 2023, the capacity performance related net penalty was reduced by $14.0 million (See Note 10).

&nbsp;&nbsp;&nbsp;&nbsp;***(m)***  ***Debt Issuance and Deferred Financing Costs*** 

Debt issuance and deferred financing costs are amortized over the term of the Company's financing arrangements using effective interest method. Unamortized debt issuance and deferred financing costs are reflected as a components of Current portion of long term debt and Long term debt on the accompanying consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;***(n)***  ***Derivative Financial Instruments*** 

The Company has entered into agreements that meet the definition of a derivative in accordance with ASC 815. These agreements are entered into to mitigate or eliminate market and financial risks. ASC 815 provides for three different ways to account for derivative instruments: (i) as an accrual agreement, if the criteria for the "normal purchase normal sale" exception are met and documented; (ii) as a cash flow or fair value hedge, if the specified criteria are met and documented; or (iii) as a mark-to-market agreement with changes in fair value recognized in current period earnings. All derivative instruments that do not qualify for the normal purchase normal sale exception are recorded at fair value in Assets and Liabilities from risk management activities on the accompanying consolidated balance sheets.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

If designated as a cash flow or fair value hedge, the Company documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy. This process includes linking all derivatives that are designated as hedges to specific assets or liabilities on the accompanying consolidated balance sheets or to forecasted transactions. The Company also assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. This could occur when: (1) it is determined that a derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; or (3) the derivative is discontinued as a hedging instrument, because it is unlikely that a forecasted transaction will occur. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective hedge of cash flows, the derivative will continue to be carried at fair value on the accompanying consolidated balance sheets and the gains and losses that were accumulated in other comprehensive income or loss are recognized immediately or over the remaining term of the forecasted transaction in the accompanying consolidated statements of operations.

Changes in the fair value of derivative instruments are recognized in the accompanying consolidated statements of operations. Any gains and losses resulting from changes in the market value of the derivative instruments are recorded in the accompanying consolidated statements of operations in the current period.

&nbsp;&nbsp;&nbsp;&nbsp;***(o)***  ***Fair Value Measurements*** 

Fair value, as defined in ASC 820, Fair Value Measurements and Disclosures (ASC 820), is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

&nbsp;&nbsp;&nbsp;&nbsp;***(p)***  ***Fair Value of Financial Instruments*** 

The carrying amounts of restricted cash, accounts receivable, accounts payable and accrued expenses, and short-term debt are equal to or approximate their fair values due to the short-term maturity of those instruments. As of August 8, 2024, and December 31, 2023, the fair values of long-term debt is estimated to be $442 million and $508 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;***(q)***  ***Income Taxes*** 

The Company and its subsidiaries have been organized as limited liability companies and are treated as disregarded entities for federal and state income tax purposes. Therefore, federal and state income taxes are assessed at the member's level.

The Company, in accordance with ASC 740, Income Taxes, performs the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are ''more likely than not'' of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely than not threshold would be derecognized and recorded as a tax benefit or expense in the current year. However, the Company's conclusions regarding these uncertain tax positions will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analysis of tax laws, regulations and interpretations thereof.

&nbsp;&nbsp;&nbsp;&nbsp;***(r)***  ***Regional Greenhouse Gas Initiative Allowances*** 

The Company is located in states that participate in the Regional Greenhouse Gas Initiative (RGGI) to reduce greenhouse gas emissions. The Company is required to possess RGGI allowances equal to its CO2 emissions over a three-year control period. The Company must hold allowances equal to 50% of its emissions during each interim control period (the first two calendar years of each three-year control period), and 100% of all three years' allowances must be surrendered by March 1 after the three year control period. RGGI allowances must be surrendered by March 1, 2024, for the three year control period ended December 31, 2023. The Company records RGGI allowances as other assets or other liabilities at the weighted-average cost or fair market value, as appropriate, on the accompanying consolidated balance sheets. Due to market fluctuations in value, the value of the liability for the RGGI allowances recorded on the Company's accompanying consolidated balance sheet may not reflect the final cost of the surrendered RGGI allowances. RGGI allowances are charged to Fuel and transportation on the accompanying consolidated statements of operations when the Generation Facility operates. As of August 8, 2024 and December 31, 2023, the Company recorded accounts payable and accrued expenses of $441 thousand and $81.4 million, respectively, based on weighted average cost and the fair market value for the remaining liability in excess of the RGGI contracts on the accompanying consolidated balance sheets. For the period ended August 8, 2024, and December 31, 2023, RGGI allowance expense was $4.6 million and $47.0 million, respectively, which are reflected as a component of fuel and transportation expense in the accompanying consolidated statements of operations.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

The Company enters into futures contracts whereby the Company agrees to purchase RGGI allowances at a fixed price to be physically delivered on a future date. These contracts meet the definition of a derivative in accordance with ASC 815 (see note 7 (c)).

&nbsp;&nbsp;&nbsp;&nbsp;***(s)***  ***Concentrations of Credit and Market Risk*** 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of restricted cash, accounts receivable, and derivatives. Restricted cash accounts are generally held at major financial institutions. Accounts receivable are concentrated within entities engaged in the energy industry. These industry concentrations may impact the Company's overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic, industry, or other conditions.

The Company is exposed to credit losses in the event of noncompliance by counterparties on its derivative financial instruments. The counterparties to these transactions are major financial institutions and established utilities. The Company does not require collateral or other security to support its financial instruments with credit risk.

For the period ended August 8, 2024 and December 31, 2023, revenues from PJM were 91% and 79%, respectively. The remaining 9% and 21%, respectively, were sales to ISO-NE. All revenues are subject to geographical market risks.

&nbsp;&nbsp;&nbsp;&nbsp;***(t)***  ***Risks and Uncertainties*** 

The Company is subject to a variety of factors, including the economy, the regulatory environment, the electricity markets, and the availability of capital resources. As with any power generation facility, operation of the Generation Facilities involves risk, including the performance of the facility below expected levels of efficiency and output, shut downs due to the breakdown or failure of equipment or processes, violations of permit requirements, operator error, labor disputes, weather interferences, or catastrophic events such as fires, earthquakes, floods, explosions, pandemics, or other similar occurrences affecting a power generation facility or its power purchasers. The occurrence of any of these events could significantly reduce or eliminate revenues generated by the facilities or significantly increase the expenses of each of the facilities, adversely impacting the Company's ability to make payments of principal and interest on its debt when due.

&nbsp;&nbsp;&nbsp;&nbsp;***(u)***  ***Commitments and Contingencies*** 

In accordance with ASC 450, Contingencies, the Company records a loss contingency for matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Loss contingency reserves are based on estimates and judgments made by management with respect to the likely outcome of matters, including any applicable insurance coverage for such matters, and are adjusted as circumstances warrant. These estimates and judgments could change based on new information, changes in laws or regulations, changes in management's plans or intentions, the outcome of legal proceedings, settlements or other factors.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

Additionally, the Company follows the guidance of ASC 460, Guarantees (ASC 460), for disclosing and accounting of guarantees and indemnifications entered into during the course of business. When a guarantee or indemnification subject to ASC 460 is entered into the estimated fair value of the guarantee or indemnification is assessed. Some guarantees and indemnifications could have a financial impact under certain circumstances. Management considers the probability of such circumstances occurring when estimating fair value.

**(3)** **Property, Plant, and Equipment, Net** 

Property, plant and equipment, net as of August 8, 2024, and December 31, 2023, consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **August 08, 2024** | **December 31, 2023** |
| Land and improvements | $11050 | 11050 |
| Plant and equipment | 1845315 | 1843272 |
| Capital spares | 14064 | 11686 |
| Construction in progress | 149 | 56 |
| Equipment and tools | 208 | 208 |
| Computer software and Hardware | 1161 | 1161 |
| Vehicle | 428 | 428 |
| Office furniture & Equipment | 80 | 80 |
| &nbsp;&nbsp;&nbsp;Total property, plant and equipment | 1872455 | 1867941 |
| Accumulated depreciation | (540243) | (498555) |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | $1332212 | 1369386 |

---

For the periods ended August 8, 2024, and December 31, 2023, depreciation expense was $41.7 million and $69.3 million, respectively.

**(4)** **Facility and Contract Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Energy Management Agreements*** 

The Company has entered into separate EMAs with Engie, BETM, and NextEra to provide energy, fuel and risk management services for each of the Generation Facilities. Engie, BETM, and NextEra primarily market power and capacity, schedule dispatch and supply the natural gas as required to operate the Generation Facilities. Each of the managed Generation Facilities retains the ability to sell power, capacity, or ancillary services to third parties. In July 2023, the Company terminated its agreement with Engie.

Under the agreement with NextEra, the counterparty is required to invoice the Company on a net basis for the prior month's revenues earned and costs incurred. Each counterparty receives a fixed monthly management fee for their services.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

Under the agreements with Engie and BETM, the counterparty is required to invoice the Company on a net basis for the prior week's revenues earned and costs incurred. The counterparty receives a fixed weekly management fee for their services.

During the periods ended August 8, 2024, and December 31, 2023, the Company incurred costs under the EMAs of $733 thousand and $466 thousand, respectively, which are reflected as a component of operating and maintenance expenses on the accompanying consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Gas Transportation and Storage Agreements*** 

The Company has several firm gas transportation and storage agreements with various counterparties. These agreements call for the counterparties to deliver natural gas, not to exceed the daily maximum, to a specific interconnection point, for either consumption or storage, specified in the respective agreement with certain Generation Facilities. The agreements were renewed in 2023 by mutual agreement.

During the periods ended August 8, 2024, and December 31, 2023, the Company incurred costs of $14.3 million and $23.0 million, respectively, under the gas transportation and storage agreements, which are reflected as a component of fuel and transportation expenses on the accompanying consolidated statements of operations. As of August 8, 2024 and December 31, 2023, the Company has $11.7 million in Letter of Credit (LOC)s outstanding related to the gas transportation and storage agreements.

&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Operations and Maintenance Agreements*** 

The Company has separate operations and maintenance (O&M) agreements with IHI Power Services Corp and Ethos Energy Power Operations that provide for the operation and maintenance of each of the Generation Facilities. The Company pays a fixed monthly operating fee and reimburses the operator for all labor costs, including payroll and related taxes, and other related costs. Monthly operating fees are subject to an annual adjustment based on specified indices. The agreements were renewed for an additional year in 2023 by mutual agreement.

During the periods ended August 8, 2024, and December 31, 2023, the Company incurred fixed costs under the O&M agreements of $1.0 million and $1.6 million, respectively, which are recorded under General and administrative expenses, and incurred $7.4 million and $12.1 million of other labor costs, respectively, under the O&M agreements, which are reflected as a component of Operating and maintenance expenses in the accompanying consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Electric Interconnection Agreements*** 

The Company has electric interconnection agreements with PJM and ISO-NE that connect the Generation Facilities to the electrical power grid.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Long Term Service Agreement*** 

Doswell and Siemens Energy, Inc. have a long term service agreement (LTSA) that provides for outage procedures on certain combustion turbine components. The LTSA term expires on the earlier of the date on which the scheduled 2nd major outage procedures have been completed or September 28, 2030. Doswell pays for these services on a monthly basis based on operating hours multiplied by a contracted rate, subject to escalation, as well as pay periodic fixed milestone payments. The payments are deferred and recorded as an asset until the planned outage maintenance occurs, at which time, the cost of the planned maintenance outage will be expensed and reflected as a component of operating and maintenance expenses on the accompanying consolidated statements of operations.

During the periods ended August 8, 2024, and December 31, 2023, the Company made payments under the LTSA of $3.1 million and $4.7 million, respectively, which were reflected as a prepayment in other noncurrent assets in the accompanying consolidated balance sheets. For the year ended December 31, 2023, planned outage maintenance of $6.6 million was incurred and expensed, reducing Other noncurrent assets on the accompanying consolidated balance sheets. As of August 8, 2024, and December 31, 2023, the prepayments pursuant to the LTSA are $5.9 million and $2.9 million, respectively.

The following table summarizes the obligations with respect to the significant contractual and commercial commitments of the Generation Facilities that have been previously discussed in this note as of August 8, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| <br>**Contractual obligations** | **Less than**<br>**1 year** | **More than**<br>**5 years** |<br>**Total** |
| Operations and maintenance agreements | 1058 | 25151 | 30852 |
| Energy management agreements | 1304 | 19566 | 26088 |
| Gas transportation and storage agreements | 17598 | 263275 | 351267 |
| Lease agreement (see note 5) | 1756 | 24206 | 33499 |
| Long term service agreement | 4639 | 122070 | 147515 |
| &nbsp;&nbsp;&nbsp;Total | 26355 | 454268 | 589221 |

---

**(5)** **Leases** 

The Company has a lease with the Town of Wallingford for 8.5 acres of property, which expires in January 2040. The Company makes monthly payments that are subject to escalation. The Company also has several land leases with various counterparties for the Riverside generation facility, which expire in 2040 and 2041.

The Company does not have any leases that contain variable lease payments. The Company has no leases which contain residual value guarantees provided by the Company.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

---

| | | |
|:---|:---|:---|
|  | **January 1,**<br>**2024 to**<br>**August 8,**<br>**2024** |<br>**December**<br>**31, 2023** |
| **Lease cost (in thousands)** |  |  |
| Operating lease cost | $1187 | 1963 |
| &nbsp;&nbsp;&nbsp;Total lease cost | $1187 | 1963 |
| **Other information (in thousands):** |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Operating cash flows from operating leases | $1145 | 1674 |
| Weighted-average remaining lease terms (in years) | 15.5 | 16.1 |
| Weighted-average discount rate | 4.75% | 4.75% |

---

As of August 8, 2024, outstanding principal balances under the Company's financing arrangement, presented by calendar year, are as follows (in thousands):

---

| | |
|:---|:---|
| 2024 | $574 |
| 2025 | 1775 |
| 2026 | 1825 |
| 2027 | 1875 |
| 2028 | 1926 |
| 2029 | 1978 |
| Thereafter | 23545 |
| Total operating lease payments | 33499 |
| &nbsp;&nbsp;&nbsp;Less: present value adjustment | (12191) |
| Total operating lease liabilities | $21308 |

---

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

**(6)** **Financing Arrangements** 

Our financing arrangements consisted of the following as of August 8, 2024, and December 31, 2023 (in thousands):

---

| | | |
|:---|:---|:---|
| | **Balance** | **Balance** |
| <br>**Loan agreement** | **August 8, 2024** | **December 31, 2023** |
| Term Loan | $- | 40846 |
| Senior Secured Notes | 458226 | 458226 |
| Revolving Facility | 59500 |  |
| Holdco Loan | 26137 | 26520 |
| Total debt principal | 543862 | 525592 |
| Less: unamortized debt issuance and deferred financing costs | 1082 | 3296 |
| Total debt | 542780 | 522296 |
| Less: short term debt | 59500 |  |
| Less: current portion | 52069 | 60631 |
| Long term debt | 431211 | 461665 |

---

The amortization of these debt issuance and deferred financing costs is reflected as a component of interest expense, net on the accompanying consolidated statements of operations. For the period ended August 8, 2024, and December 31, 2023, amortization of these costs totaled $2.2 million and $4.2 million, respectively.

***Gridiron Funding Credit Agreement***

On May 15, 2017, Gridiron Funding executed financing arrangements which consist of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) $590 million term loan (Term Loan), under a credit agreement (Credit Agreement), with a maturity date
of June 30, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) $460 million senior secured notes (Senior Secured Notes), under a note purchase agreement (NPA), with
a maturity date of May 15, 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) $150 million revolving and letter of credit facility (Revolving Facility) under the Credit Agreement,
with a maturity date of June 30, 2022, used to (i) finance working capital and for general corporate purposes, (ii) support
obligations under certain agreements and (iii) satisfy certain collateral requirements with respect to maintenance and operations.

The Credit Agreement permits both Eurodollar and base rate loans. The interest rate on Eurodollar loans is equal to the LIBOR for the applicable term of the loan plus an applicable margin of 2.50% through May 15, 2022 and 2.75% thereafter. Interest rates on base rate loans are equal to the prime rate plus an applicable margin of 1.5% through May 15, 2022 and 1.75% thereafter. On June 29, 2023, the Credit Agreement was amended to replace LIBOR with Secured Overnight Financing Rate (Term SOFR) as the applicable benchmark interest rate. The interest rates in effect as of August 8, 2024 for the Revolving Facility was 8.20%. The interest rates in effect as of December 31, 2023 for both the Term Loan and the Revolving Facility was 8.21%.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

Mandatory amortization of the Term Loan ranges from 3.0769% to 4.6154% of the original outstanding principal amount, payable quarterly. Optional prepayment of the Term Loan is permitted. Mandatory amortization will be ratably reduced in the event of optional or mandatory prepayments.

The Senior Secured Notes pay interest quarterly at a fixed interest rate of 5.64%. Quarterly principal payments of $10.4 million will commence on September 30, 2024. The remaining principal balance of the Senior Secured Notes will be due and payable on the stated maturity date of June 30, 2027. Under the NPA, Gridiron Funding can voluntarily prepay the notes series in whole or in part. Gridiron Funding is required to provide written notice of each prepayment and to pay a make whole amount equal to the excess, if any, of the discounted value of the remaining scheduled payments over the amount of the called principal. In September 2023, the Company prepaid $1.8 million of the Senior Secured Notes, which reduced a portion of future obligations due.

Under the terms of the Depositary Agreement (Depositary Agreement), the receipt of revenues, debt service payments and the payments for certain categories of expenses are segregated into separate bank accounts. Gridiron Funding has established the required bank accounts and has pledged all its rights, title and interest in the bank accounts as security for its payment obligations under the Credit Agreement and NPA. Quarterly, subject to the priority allocations of cash described in the Depositary Agreement, which requires payments of, among other items, operating expenses, funding of certain reserve accounts, and payment of mandatory interest and principal in accordance with the Credit Agreement and NPA, any excess cash flow after meeting the distribution conditions which include maintaining a debt service coverage ratio in excess of 1:20 to 1:00 for the preceding and following four quarters, is permitted to be distributed to the Company's member (see Note 11).

Additionally, all obligations of Gridiron Funding under the Guarantee and Collateral Agreement are guaranteed by Gridiron Holdings, LLC, the Company and its subsidiaries.

Under the Common Terms Agreement, Gridiron Funding is also required to maintain and have available a debt service reserve at least equal to the aggregate scheduled principal, interest, interest rate swaps settlement, and other scheduled debt service projected to be payable under the agreement for the six-month period occurring after the last day of each calendar quarter. As of both August 8, 2024 and December 31, 2023, the Company had a LOC in the amount of $22.1 million and $33.9 million, respectively.

Under the Common Terms Agreement, Gridiron Funding is also required to maintain and have available a major maintenance reserve in the form of cash or LOCs of at least equal to the aggregate major maintenance expenses related to the Generation Facilities reasonably anticipated becoming due within the six-month period occurring after the last day of each calendar quarter. As of both August 8, 2024 and December 31, 2023, the Company had a LOC in the amount of $10.8 million.

In 2022, the Company had entered into a Loan Modification Agreement (Modification Agreement). Under the Modification Agreement, the Revolving Facility maturity date was extended to December 31, 2025.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

As December 31, 2023, Gridiron Funding had $40.8 million under the Term Loan. As of August 8, 2024, and December 31, 2023, the Company had $59.5 million and $0 million, respectively, of loans outstanding under the Revolving Facility. Additionally, there were LOCs of $48.1 million and $61.4 million, respectively, outstanding under the Revolving Facility.

***Gridiron Intermediate Holdings Credit Agreement***

On August 29, 2019, the Company closed on financing a term loan (Holdco loan). The financing consisted of a $51 million six-year term loan at LIBOR + 3.25% for the first four years and LIBOR + 3.50% thereafter. On March 31, 2023, the Holdco loan Agreement was amended to replace LIBOR with Term SOFR. Additionally, there was a $12 million six- year letter of credit facility to fund the required debt service reserve. As of August 8, 2024 and December 31, 2023, the company had $26.1 million and $26.5 million, respectively, outstanding under the Holdco loan.

Under the terms of the Credit Agreement, the receipt of revenues, debt service payments and the payments for certain categories of expenses are segregated into separate bank accounts. The Company has established the required bank accounts and has pledged all its rights, title and interest in the bank accounts as security for its payment obligations under the Credit Agreement. Quarterly, subject to the priority allocations of cash described in the Credit Agreement, which requires payments of, among other items, operating expenses, funding of certain reserve accounts, and payment of mandatory interest and principal in accordance with the Credit Agreement, any excess cash flow after meeting the distribution conditions which include maintaining a debt service coverage ratio in excess of 1:20 to 1:00 for the preceding and following four quarters, is permitted to be distributed to the Company's member (see Note 11).

Additionally, all obligations of the Company under the Collateral Agency Agreement are guaranteed by Gridiron Holdings, LLC, the Company and its subsidiaries.

Under the terms of the Credit Agreement, the Company and its subsidiaries are required to hedge a minimum of 75% of the sum of the outstanding principal amount of the Holdco loan until the four year anniversary of the Holdco loan. The minimum hedge requirement was satisfied through several interest rate derivatives.

Under the Credit Agreement, the Company is also required to maintain and have available a debt service reserve at least equal to the aggregate scheduled principal, interest, interest rate swaps settlement, and other scheduled debt service projected to be payable under the agreement for the six-month period occurring after the last day of each calendar quarter, As of August 8, 2024 and December 31, 2023, the Company had LOCS of $3.5 million and $1.5 million, respectively to satisfy this requirement.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

As of August 8, 2024, minimum principal payments for the next five years for the Company's financing arrangements, presented by calendar year, are as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** |
| Gridiron Funding Senior Secure Notes | 20753 | 41506 | 41506 | 354461 |  |  |
| Revolving Facility |  | 59500 |  |  |  |  |
| Holdco Loan | 1148 | 24990 | - | - |  |  |
| Minimum principal payments | 21901 | 125996 | 41506 | 354461 |  |  |

---

**(7)** **Derivative Instrument and Hedging Activities** 

The Company utilizes interest rate swaps to reduce its exposure to market risks from changing interest rates. The Company has entered into multiple separate derivative agreements for the Generation Facility. The following is a summary of the terms of these agreements.

&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Interest Rate Swaps*** 

In September 2019, the Company entered into three interest rate swap agreements, with an initial aggregate amortizing notional amount of approximately $38.3 million, and a maturity date of October 31, 2023, to effectively convert the floating interest rates on a portion of the Holdco loan to a fixed interest rate averaging 1.5%.

&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Heat Rate Call Options*** 

The Company entered into several daily financial heat rate call option contracts with various counterparties. These contracts provide for receipt of fixed option premium payments by certain Generation Facilities, net of energy settlements based on a fixed heat rate, power reference index price, gas reference index price, and certain energy prices. Additionally, the aforementioned Generation Facilities retain dispatch control over all of the contracted facilities and receive all proceeds from the physical sale of energy, capacity, and ancillary services. The heat rate call options are marked to market with changes in fair value recognized in current period earnings.

&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Commodity Derivatives*** 

The Company entered into various energy related derivatives to manage the commodity price risk associated with power revenues and fuel costs, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap Contracts which require payments to or from counterparties based upon the difference between
the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk associated
with changes in the RTOs power prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap and Optimization Contracts which require payments to or from counterparties based upon the difference
between the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk
at multiple delivery points associated with changes in fuel prices.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) RGGI Futures Contracts which two parties agree to exchange a fixed number of allowances of a certain vintage
year at a fixed price for a specific delivery month.

The contracts mentioned above are entered into as part of the Company's overall hedging strategy with respect to commodity price risk associated with energy gross margin. The Company records changes in the fair value of the commodity derivatives in the accompanying consolidated statement of operations in the current period

&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Capacity Swap*** 

The Company entered into a Master Power Purchase and Sale Agreement (MPPSA) with Central Virginia Electric Cooperative (CVEC) for a capacity swap of 30 MW of daily unforced capacity load (UCAP) for the period of June 1, 2017 through May 31, 2027. The contract provides for the Company to receive fixed capacity payments, escalating annually at 3%, in exchange for floating capacity payments set by prices settled in the capacity auction conducted by PJM. This swap is marked to market with changes in fair value recognized in current period earnings. The Company issued a LOC in favor of CVEC, as security under the MPPSA, in the amount of $500 thousand.

The Company's outstanding net position as of August 8, 2024, presented by calendar year, is summarized in the following table (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** |
| Power Swap Contracts (MWh) | Sell | 1924 | 2047 | 3942 | 3942 | – |  |
| Gas Swap Contracts (MMBTU) | Buy | 18550 | 20260 | 27516 | 31719 | – |  |
| Heat Rate Call Option (MW) | Sell | 400 | 400 |  |  | – |  |
| Capacity Swap Contract (MW) | Sell | 30 | 30 | 30 | 30 | – |  |
| RGGI Futures Contract (CO2) | Buy |  |  | 1500 | 2500 | – |  |

---

**Fair Value Measurements**

The following tables set forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of August 8, 2024, and December 31, 2023. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and agreement prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

The following tables present assets and liabilities measured and recorded at fair value on the Company's accompanying consolidated balance sheets and their level within the fair value hierarchy as of August 8, 2024, and December 31, 2023 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of August 8, 2024** | **Fair value as of August 8, 2024** | **Fair value as of August 8, 2024** | **Fair value as of August 8, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity derivative – assets |  | 176438 |  | 176438 |
| Commodity derivative – liabilities |  | (325698) |  | (325698) |
| RGGI future contract – assets |  | 17603 |  | 17603 |
| Capacity swap – liabilities |  |  | (1664) | (1664) |
| Heat rate call options – liabilities | - | - | (70077) | (70077) |
| &nbsp;&nbsp;&nbsp;Derivative instrument liabilities (net) | $**-** | (131657) | (71741) | (203398) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2023** | **Fair value as of December 31, 2023** | **Fair value as of December 31, 2023** | **Fair value as of December 31, 2023** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| RGGI futures contract - assets |  | 1078 |  | 1078 |
| Commodity derivative – assets |  | 215945 |  | 215945 |
| Commodity derivative – liabilities |  | (373062) |  | (373062) |
| Capacity swap – assets |  |  | 2349 | 2349 |
| Heat rate call options – assets |  |  | 58 | 58 |
| Heat rate call options – liabilities | - | - | (116131) | (116131) |
| &nbsp;&nbsp;&nbsp;Derivative instrument liabilities (net) | $**-** | (156039) | (113724) | (269763) |

---

For the periods ending August 8, 2024, and December 31, 2023, the Company did not have any transfers between Levels 1, 2, or 3.

---

| | |
|:---|:---|
| **Fair value measurements using significant<br> unobservable inputs (Level 3)** |  |
| Beginning balance as of January 1, 2024 | $(113724) |
| Total gain on risk management activities | 3108 |
| Settlements | 38875 |
| &nbsp;&nbsp;&nbsp;Ending balance as of August 8, 2024 | $(71741) |

---

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

---

| | |
|:---|:---|
| **Fair value measurements using significant**<br>**unobservable inputs (Level 3)** | |
| Beginning balance as of January 1, 2023 | $(252325) |
| Total gain on risk management activities | 72900 |
| Settlements | 65701 |
| &nbsp;&nbsp;&nbsp;Ending balance as of December 31, 2023 | $(113724) |

---

The following tables provide quantitative information for financial instruments classified as Level 3 in the fair value hierarchy for the periods ended August 8, 2024, and December 31, 2023:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Fair Value as of** | **Fair Value as of** | | | **Average Ratio** | **Average Ratio** |
|  | **August 8,**<br>**2024** | **December 31,**<br> **2023** | <br>**Valuation**<br>**Technique** | <br>**Significant Inputs** | **August 8,**<br>**2024** | **December 31,**<br>**2023** |
| Heat rate call options | $(70077) | (116073) | Model | Electricity regional prices | $50.25 | 41.36 |
|  |  |  |  | Natural gas prices | $3.13 | 2.78 |
|  |  |  |  | Power price volatility | 30.8% | 51.2% |
|  |  |  |  | Gas price volatility | 50.9% | 58.9% |
| Capacity swap | $(1664) | 2349 | Model | Electricity regional prices | $131-144 | 131-144 |

---

The following tables present information concerning the impact of the derivative instruments on the accompanying consolidated balance sheets and accompanying consolidated statements of operations.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

***Impact of Derivative Instruments on the Accompanying Consolidated Balance Sheets***

The following tables present the classifications and fair value of derivative instruments on the accompanying consolidated balance sheets As of August 8, 2024, and December 31, 2023 (in thousands).

---

| | | | |
|:---|:---|:---|:---|
| <br>**Instrument** | <br>**Balance sheet location** | **August 8,**<br>**2024** | **December 31,**<br>**2023** |
| Derivatives not designated as hedging activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;RGGI futures contracts | Derivative instrument - assets – short term | $- | 1078 |
| &nbsp;&nbsp;&nbsp;RGGI futures contracts | Derivative instrument - assets - long term | 17603 |  |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Derivative instrument - assets - short term | 50877 | 62723 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Derivative instrument - assets - long term | 125561 | 153222 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Derivative instrument - liabilities - short term | (72793) | (94090) |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | Derivative instrument - liabilities - long term | (252905) | (278972) |
| &nbsp;&nbsp;&nbsp;Capacity swaps | Derivative instrument - assets - short term | 915 | 991 |
| &nbsp;&nbsp;&nbsp;Capacity swaps | Derivative instrument - assets - long term |  | 1358 |
| &nbsp;&nbsp;&nbsp;Capacity swaps | Derivative instrument - liabilities - short term | (225) |  |
| &nbsp;&nbsp;&nbsp;Capacity swaps | Derivative instrument - liabilities - long term | (2354) |  |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Derivative instrument - assets - short term |  | 58 |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Derivative instrument - liabilities - short term | (48482) | (54656) |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Derivative instrument - liabilities - long term | (21595) | (61475) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities |  | (203398) | (269763) |
| &nbsp;&nbsp;&nbsp;Total derivatives, net liability |  | $(203398) | (269763) |

---

***Impact of Derivative Instrument on the Accompanying Consolidated Statements of Operations***

The following tables present the disclosure of the location and amount of gains and losses on derivative instruments in the accompanying consolidated statements of operations for the periods ended August 8, 2024, and December 31, 2023, by type of instrument.

The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in** | **Amount of gain (loss) in** |
| | | **income on derivative for the** | **income on derivative for the** |
| | | **periods ended** | **periods ended** |
| <br>**Instrument** | <br>**Location of gain (loss) recognized in income**<br>**on derivatives** | **August 8,**<br>**2024** | **December** 31,**<br> **2023** |
| Derivatives not designated as hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - power | Gain on risk management activities | $42329 | 186735 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives - gas | Loss on risk management activities | (18977) | (135908) |
| &nbsp;&nbsp;&nbsp;Heat rate call options | Gain on risk management activities | 23945 | 105867 |
| &nbsp;&nbsp;&nbsp;Interest rate swap agreements | Interest expense, net |  | 585 |
| &nbsp;&nbsp;&nbsp;RGGI future contracts | Gain on risk management activities | 14925 | 1500 |
| Total gain in income on derivatives |  | $62222 | 158782 |

---

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

***Offsetting of Derivative Assets and Liabilities***

The Company has not elected to present derivative assets and liabilities on the balance sheets by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying consolidated balance sheets As of August 8, 2024, and December 31, 2023 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements As of**<br>**August 8, 2024** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments As of**<br>**August 8, 2024** |<br>**Net amounts after**<br>**offset As of**<br>**August 8, 2024** |
| Assets from risk management activities | $194956 | (145141) | 48815 |
| Liabilities from risk management activities | (398354) | 145141 | (253213) |
| &nbsp;&nbsp;&nbsp;Net risk management activities | $(203398) |  | (203398) |

---

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**December 31, 2023** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments as of**<br>**December 31, 2023** |<br>**Net amounts after**<br>**offset as of**<br>**December 31, 2023** |
| Assets from risk management activities | $219430 | (169927) | 49503 |
| Liabilities from risk management activities | (489193) | 169927 | (319266) |
| &nbsp;&nbsp;&nbsp;Net risk management activities | $(269763) |  | (269763) |

---

**(8)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. These costs are not allocated to the Company. All other costs related to the operation and management of the Generation Facilities are reflected in the accompanying consolidated statements of operations.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

**(9)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote.

The Company is from time to time a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's consolidated balance sheets, statements of operations, or cash flows.

**(10)** **Capacity Performance Penalties and Bonuses** 

In late December 2022, Winter Storm Elliot brought severe cold weather, high winds, and some snow throughout most of the US causing energy demands to rise rapidly, generation facilities to fail to perform and natural gas production to go offline. PJM experienced approximately 23 hours of capacity performance events from December 23-24, 2022 across PJM's entire footprint. Certain generation facilities failed to meet the capacity demands during this time, while certain facilities were able to generate additional power to meet increased demand. As a result, certain generation facilities were subject to penalty or bonus payments which will result in cash settlements in 2023 and 2024.

A settlement in principle was filed with FERC in September 2023, which reduced bonuses and penalties by approximately 32%. FERC also granted a waiver allowing PJM to defer collection of the remaining unbilled non-performance charges and suspended remaining bonus payments associated with Winter Storm Elliott until FERC decides on the merits of the settlement. In December 2023, FERC approved the settlement without modification. As a result of such settlement, the Company recognized in 2023 a net gain in the amount of $9.0 million from penalties and bonuses, which is reflected in Energy and capacity revenues on the accompanying consolidated statements of operations

As December 31, 2023, the Company has a remaining balance in the amount of $91 thousand, related to net bonus payments in accounts receivable on the accompanying consolidated balance sheet.

**(11)** **Member's Equity** 

Profits, losses and distributions are allocated in accordance with the provisions of the Company's limited liability agreement. During the period ended August 8, 2024, and December 31, 2023, the Company received contributions of $4.0 million and $3.5 million, respectively, from Gridiron Energy, LLC.

**(12)** **Change in Accounting Principle** 

The Company changed its method of accounting for interest rate swap agreements to remove the application of the simplified hedge accounting alternative available for private companies. These consolidated financial statements have been revised to remove the application of hedge accounting resulting in changes in the fair value of interest rate swaps now being recognized in earnings. This change has been applied retrospectively to all periods presented.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Consolidated Financial Statements

For the period January 1, 2024 to August 8, 2024

and for the year ended December 31, 2023

The effects of this change in accounting principle on the Company's consolidated financial statements as of and for the year ended December 31, 2023 are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| <br>**Financial Statement Line Item** | **2023 Previously**<br>**Reported** | **2023 As**<br>**Revised** | **2023 Effect of**<br>**Change** |
| Consolidated Statements Operations |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | $(41869) | (42454) | (585) |
| &nbsp;&nbsp;&nbsp;Net income | $144352 | 143767 | (585) |
| Consolidated Statements of Member's Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;Balances at December 31, 2022 – Member's Interest | $414542 | 415127 | 585 |
| &nbsp;&nbsp;&nbsp;Balances at December 31, 2022 – Accumulated other comprehensive income | $585 |  | (585) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss | $(585) |  | 585 |
| &nbsp;&nbsp;&nbsp;Net income | $144352 | 143767 | (585) |
| Consolidated Statements of Comprehensive Income |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in unrealized gain on derivatives | $(585) |  | 585 |
| Consolidated Statements of Cash Flows |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $144352 | 143767 | (585) |
| &nbsp;&nbsp;&nbsp;Risk management activities | $(163371) | (162786) | 585 |

---

**(13)** **Subsequent Events** 

On August 9, 2024, Gridiron Holdings contributed the equity interests of the Company to the newly formed entity, Lightning Power Holdings, LLC (Lightning), in exchange for 32% of Class A common units in Lightning.

## Exhibit 99.7

**Exhibit 99.7**

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Financial Statements

As of June 30, 2024,

For the three and six months ended June 30, 2024

(Unaudited)

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

---

| | |
|:---|:---|
|  | **June 30, 2024** |
| **Assets** | |
| Current assets: |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $27137 |
| &nbsp;&nbsp;&nbsp;Accounts receivable and affiliates | 21934 |
| &nbsp;&nbsp;&nbsp;Inventory | 30476 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 1166 |
| &nbsp;&nbsp;&nbsp;Deposits | 12708 |
| &nbsp;&nbsp;&nbsp;Intangible asset | 584 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 46968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 140973 |
| Property, plant, and equipment | 1872283 |
| Accumulated depreciation | (532975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | 1339308 |
| Intangible assets, net | 9853 |
| Operating lease right-of-use assets, net | 18626 |
| Assets from risk management activities, long term | 143909 |
| Other noncurrent assets | 5466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1658135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Liabilities and Member's Equity** |  |
| Current liabilities: |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | $47682 |
| &nbsp;&nbsp;&nbsp;Short term debt | 59500 |
| &nbsp;&nbsp;&nbsp;Accounts payable and affiliates and accrued expenses | 52562 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 134522 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 294977 |
| Long term debt | 435623 |
| Asset retirement obligations | 5050 |
| Liabilities from risk management activities, long term | 295782 |
| Operating lease liabilities LT | 20670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1052102 |
| Member's equity | 606033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and member's equity | $1658135 |

---

See accompanying notes to the interim condensed consolidated financial statements.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Statements of Operations

For the three and six months ended June 30, 2024

(Unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**June 30, 2024** | **Six months ended**<br>**June 30, 2024** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;Energy and capacity revenues | $81235 | $157618 |
| &nbsp;&nbsp;&nbsp;Gain on risk management activities | 55693 | 31516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 136928 | 189134 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | 26642 | 70840 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on risk management activities | 730 | (6267) |
| &nbsp;&nbsp;&nbsp;Operating and maintenance | 16390 | 27735 |
| &nbsp;&nbsp;&nbsp;General and administrative | 1417 | 2766 |
| &nbsp;&nbsp;&nbsp;Depreciation | 17088 | 34420 |
| &nbsp;&nbsp;&nbsp;Accretion | 64 | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 62331 | 129621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 74597 | 59513 |
| Interest expense, net | (10313) | (19874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $64284 | $39639 |

---

See accompanying notes to the interim condensed consolidated financial statements.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Statements of Member's Equity

For the three and six months ended June 30, 2024

(Unaudited)

(In thousands)

---

| | |
|:---|:---|
|  | **Member's**<br>**equity** |
| Balances at March 31, 2024 | $541749 |
| Net income | 64284 |
| Balances at June 30, 2024 | $606033 |
| Balances at December 31, 2023 | $562394 |
| Net income | 39639 |
| Capital contributions | 4000 |
| Balances at June 30, 2024 | $606033 |

---

See accompanying notes to the interim condensed consolidated financial statements.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Statement of Cash Flows

For the three and six months ended June 30, 2024

(Unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**June 30, 2024** | **Six months ended**<br>**June 30, 2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $64284 | $39639 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 17088 | 34420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 1049 | 2109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 146 | 292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 236 | 472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion | 64 | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk management activities | (64510) | (30336) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts receivable | (5336) | (4543) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in inventory and capital spares | (2535) | (4592) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in prepaid expenses | 2086 | 3334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in deposits | 6622 | 5862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other noncurrent assets | (1052) | (2439) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable and accrued expenses | 320 | (54091) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in operating lease liabilities | (178) | (350) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 18284 | (10096) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Payments for capital expenditures/construction in progress | (56) | (368) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (56) | (368) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of short-term debt | 28500 | 123500 |
| &nbsp;&nbsp;&nbsp;Principal payments on short term debt | (19000) | (64000) |
| &nbsp;&nbsp;&nbsp;Principal payments on long term debt | (20551) | (41101) |
| &nbsp;&nbsp;&nbsp;Capital contributions | - | 4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | (11051) | 22399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in restricted cash | 7177 | 11935 |
| Restricted cash, beginning of period | 19960 | 15202 |
| Restricted cash, end of period | $27137 | $27137 |
| Supplemental disclosure of cash flow information: |  |  |
| Cash paid for interest | $9246 | $18049 |

---

See accompanying notes to the interim condensed consolidated financial statements

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(1)** **Organization** 

Gridiron Intermediate Holdings, LLC (Gridiron Intermediate or the Company) a Delaware limited liability company, was formed on August 29, 2019 to wholly own Gridiron Acquisition Holdings, LLC, which wholly owns Gridiron Funding, LLC (Gridiron Funding), which owns and finances certain power generation facilities which produce, sell and deliver energy and energy products and services into the PJM Interconnection LLC and ISO-New England Inc. (PJM and ISO-NE) power markets in the United States. Gridiron Funding includes LSP University Park, LLC (University Park), University Park Energy, LLC (University Park Energy), Wallingford Energy, LLC (Wallingford), Riverside Generating Company, LLC (Riverside), Doswell Limited Partnership (Doswell), (collectively, the Generation Facilities), Amsterdam Holdings, LLC, Wallingford Energy II LLC, Port River Energy Marketing, LLC, and Amsterdam Energy Marketing, LLC.

Gridiron Intermediate is indirectly wholly owned by Gridiron Holdings, LLC (Gridiron Holdings). Gridiron Energy, LLC (Gridiron Energy) and Gridiron Energy Management, LLC (Gridiron Management), respectively, own 100% of the Class A interests and 100% of the Class P interests in Gridiron Holdings. Gridiron Management is the manager of Gridiron Energy and Gridiron Holdings. Gridiron Services, LLC provides asset manager services to Gridiron Holdings. Gridiron Energy is scheduled to terminate on April 19, 2026, provided however, that such date may be extended by Gridiron Management for two additional one-year terms, and may be further extended in accordance with the Gridiron Energy Membership and Participation Agreement.

The Generation Facilities that are owned by the Company are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Entity** | **Location** | **Size** | &nbsp;&nbsp;**Year operational** | **Type** |
| LSP University Park, LLC | University Park, IL | 582 MW | 2002 | Simple Cycle |
| University Park Energy, LLC | University Park, IL | 328 MW | 2001 | Simple Cycle |
| Wallingford Energy, LLC | Wallingford, CT | 350 MW | 2002 | Simple Cycle |
| Riverside Generating Company, LLC | Louisa, KY | 976 MW | 1999 | Simple Cycle |
| Doswell Limited Partnership | Hanover County, VA | 1274 MW | 2001, 1992 | Simple Cycle & |
|  |  |  |  | Combined Cycle |

---

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(2)** **Summary of Significant Accounting Policies** 

***Basis of Presentation***

The interim condensed consolidated financial statements of Gridiron Intermediate have been prepared by us, without audit, in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included, and intercompany transactions have been eliminated in the interim condensed and consolidated financial statements. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented.

***Use of Estimates***

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles. The most significant of these estimates and assumptions relate to the valuation of derivative instruments and asset retirement obligations. Actual results could differ materially from those estimates.

***Restricted Cash***

Restricted cash consists of amounts that are restricted under the terms of certain financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

**(3)** **Select Balance Sheet Information** 

***Inventory***

As of June 30, 2024, fuel oil was $9.0 million and spare parts inventories were $21.5 million.

***Asset Retirement Obligations***

As of June 30, 2024, the Company had a liability of $5.1 million, for asset retirement obligations to provide for the future removal and dismantling of the Riverside and Wallingford generation facilities. For the three and six months ended June 30, 2024, accretion expense was $64 thousand and $127 thousand, respectively, in accompanying condensed consolidated statements of operations.

***Intangible Assets, Net***

As of June 30, 2024, the intangible asset, net of amortization, is $10.4 million. For the three and six months ended June 30, 2024, the Company recorded $146 thousand and $292 thousand, respectively, of amortization related to the asset management arrangement. The intangible asset is being amortized using the straight-line method over the term of the contract as a reduction in Energy and capacity revenues on the accompanying condensed consolidated statements of operations.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Revenue Recognition***

For the three and six months ended June 30, 2024, capacity revenues were $13.7 million $27.2 million respectively, which are reflected as a component of Energy and capacity revenues in the accompanying condensed consolidated statements of operations.

***Fair Value of Financial Instruments***

The carrying amounts of restricted cash, accounts receivable, accounts payable and accrued expenses, and short-term debt are equal to or approximate their fair values due to the short-term maturity of those instruments. As of June 30, 2024, the fair value of long-term debt is estimated to be $434.8 million.

***Regional Greenhouse Gas Initiative Allowances***

The Company is located in states that participate in the Regional Greenhouse Gas Initiative (RGGI) to reduce greenhouse gas emissions. As of June 30, 2024, the Company recorded accounts payable of $128 thousand, based on weighted average cost and the fair market value for the remaining liability in excess of the RGGI contracts on the accompanying condensed consolidated balance sheets. For the three and six months ended June 30, 2024, RGGI allowance expense was $146 thousand and $183 thousand, respectively, which are reflected as a component of fuel and transportation expense in the accompanying condensed consolidated statements of operations.

**(4)** **Property, Plant, and Equipment, Net** 

Property, plant and equipment, net as of June 30, 2024 consist of the following (in thousands):

---

| | |
|:---|:---|
|  | **June 30, 2024** |
| Land and improvements | $11050 |
| Plant and Equipment | 1843272 |
| Capital spares | 15935 |
| Construction in progress | 149 |
| Equipment and tools | 209 |
| Computer software and Hardware | 1161 |
| Vehicles | 428 |
| Office furniture & Equipment | 79 |
| **Total property, plant and equipment** | 1872283 |
| Accumulated depreciation | (532975) |
| **Property, plant and equipment, net** | $**1339308** |

---

For the three and six months ended June 30, 2024, depreciation expense was $17.1 million and $34.4 million, respectively.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(5)** **Facility and Contract Commitments** 

***Energy Management Agreements***

For the three and six months ended June 30, 2024, the Company incurred costs under the Energy Management Agreements (EMAs) of approximately $302 thousand and $580 thousand, respectively, which are reflected as a component of operating and maintenance expenses on the accompanying condensed consolidated statements of operations. The characteristics and details of the EMAs remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Gas Transportation and Storage Agreements***

For the three and six months ended June 30, 2024, the Company incurred costs of $6.2 million and $11.8 million, respectively, under the gas transportation and storage agreements, which are reflected as a component of fuel and transportation expenses on the accompanying condensed consolidated statements of operations. As of June 30, 2024, the Company has $11.7 million in Letters of Credit (LOCs) outstanding related to the gas transportation and storage agreements. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Operations and Maintenance Agreements***

For the three and six months ended June 30, 2024, the Company incurred costs of $3.6 million and $6.9 million, respectively, under the O&M agreements, which are reflected as a component of operating and maintenance expenses on the accompanying condensed consolidated statements of operations. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2023, with no material updates during the interim period.

***Electric Interconnection Agreements***

The Company has electric interconnection agreements with PJM and ISO-NE that connect the Generation Facilities to the electrical power grid.

***Long Term Service Agreement***

On September 28, 2018, Doswell and Siemens Energy, Inc. entered into a long term service agreement (LTSA) that provides for outage procedures on certain combustion turbine components.

For the three and six months ended June 30, 2024, the Company made payments under the LTSA of $1.1 million and $2.4 million, respectively, which were reflected as a prepayment in other noncurrent assets in the accompanying condensed consolidated balance sheets. As of June 30, 2024, the prepayments pursuant to the LTSA were $5.3 million.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(6)** **Financing Arrangements** 

Our financing arrangements consisted of the following as of June 30, 2024 (in thousands):

---

| | |
|:---|:---|
| **Loan agreement** | **June 30, 2024** |
| Senior secured notes | $458224 |
| Revolving facility | 59500 |
| Holdco loan | 26264 |
| Total debt principal | 543988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: unamortized debt issuance and deferred financing costs | (1183) |
| **Total debt** | **542805** |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: current portion | (47682) |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Short term debt | (59500) |
| **Long term debt** | **435623** |

---

***Gridiron Funding Credit Agreement***

On May 15, 2017, Gridiron Funding executed financing arrangements which consist of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) $590 million
 term loan (Term Loan),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) $460 million
 senior secured notes (Senior Secured Notes),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) $150 million
 revolving and letter of credit facility (Revolving Facility)

The interest rates in effect as of June 30, 2024 for the Revolving Facility was 8.2%

The amortization of the debt issuance and deferred financing costs is reflected as a component of interest expense, net on the accompanying condensed consolidated statements of operations. For the three and six months ended June 30, 2024, amortization of these costs totaled $1.0 million and $2.1 million, respectively.

As of June 30, 2024, a LOC was issued in the amount of $30.1 million. This LOC, in addition to the existing availability under the Revolving Facility, satisfies the debt service reserve requirement.

As of June 30, 2024, the Company issued a LOC in the amount of $10.8 million. This LOC, in addition to the existing availability under the Revolving Facility, satisfies the major maintenance requirement.

As of June 30, 2024, Gridiron Funding had $34.4 million available under the Revolving Facility.

***Gridiron Intermediate Holdings Credit Agreement***

On August 29, 2019, the Company closed on financing a term loan (HoldCo loan). Under the Credit Agreement, the Company is also required to maintain and have available a debt service reserve at least equal to the aggregate scheduled principal, interest, interest rate swaps settlement, and other scheduled debt service projected to be payable under the agreement for the six-month period occurring after the last day of each calendar quarter. As of June 30, 2024, the Company had LOCS of $2.5 million to satisfy this requirement.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(7)** **Derivative Instrument and Hedging Activities** 

The Company has entered into multiple separate derivative agreements for the Generation Facility. The following is a summary of the terms of these agreements.

***Heat Rate Call Option***

The Company entered into several daily financial heat rate call option contracts with various counterparties. These contracts provide for receipt of fixed option premium payments by certain Generation Facilities, net of energy settlements based on a fixed heat rate, power reference index price, gas reference index price, and certain energy prices. Additionally, the aforementioned Generation Facilities retain dispatch control over all of the contracted facilities and receive all proceeds from the physical sale of energy, capacity, and ancillary services. The heat rate call options are marked to market with changes in fair value recognized in current period earnings.

***Commodity Derivatives***

The Company entered into various energy related derivatives to manage the commodity price risk associated with power revenues and fuel costs, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap
 Contracts which require payments to or from counterparties based upon the difference between
 the contract and the market price for a predetermined notional amount. These contracts are
 used to manage commodity price risk associated with changes in the RTOs power prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap
 and Optimization Contracts which require payments to or from counterparties based upon the
 difference between the contract and the market price for a predetermined notional amount.
 These contracts are used to manage commodity price risk at multiple delivery points associated
 with changes in fuel prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) RGGI Futures
 Contracts which two parties agree to exchange a fixed number of allowances of a certain vintage
 year at a fixed price for a specific delivery month.

The contracts mentioned above are entered into as part of the Company's overall hedging strategy with respect to commodity price risk associated with energy gross margin. The Company records changes in the fair value of the commodity derivatives in the accompanying condensed consolidated statement of operations in the current period.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Capacity Swap***

The Company entered into an agreement with a counterparty for a capacity swap of 30 MW of daily unforced capacity load through May 31, 2027. The contract provides for the Company to receive fixed capacity payments, escalating annually at 3%, in exchange for floating capacity payments set by prices settled in the capacity auction. This swap is marked to market with changes in fair value recognized in current period earnings. The Company issued a LOC in favor of the counterparty in the amount of $500 thousand.

***Fair Value Measurements***

The following tables set forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of June 30, 2024. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

● Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

● Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and agreement prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

● Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

The following tables present assets and liabilities measured and recorded at fair value on the Company's accompanying condensed consolidated balance sheets and their level within the fair value hierarchy as of June 30, 2024, (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of June 30, 2024** | **Fair value as of June 30, 2024** | **Fair value as of June 30, 2024** | **Fair value as of June 30, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity derivative – assets | $— | 188887 |  | 188887 |
| Commodity derivative – liabilities |  | (349510) |  | (349510) |
| RGGI Future Contract – assets |  | 174 |  | 174 |
| Capacity swap – assets |  |  | 1816 | 1816 |
| Heat rate call options – liabilities |  |  | (80794) | (80794) |
| &nbsp;&nbsp;Derivative instrument liabilities (net) | $— | (160449) | (78978) | (239427) |

---

For the periods ending June 30, 2024, the Company did not have any transfers between Levels 1, 2, or 3.

The following tables provide quantitative information for financial instruments classified as Level 3 in the fair value hierarchy for the periods ended June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value as of**<br>**June 30, 2024** | **Valuation**<br>**Technique** | <br>**Significant Inputs** | **Average**<br>**June 30, 2024** |
| Heat rate call options | $(80794) | Model | Electricity regional prices | $50.98 |
|  |  |  | Natural gas prices | $3.28 |
|  |  |  | Power price volatility | 34.5% |
|  |  |  | Gas price volatility | 47.1% |
| Capacity Swap | $1816 | Model | Electricity regional prices | $131-144 |

---

The following tables present information concerning the impact of the derivative instruments on the accompanying condensed consolidated balance sheets and accompanying condensed consolidated statements of operations.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Impact of Derivative Instruments on the Accompanying Condensed Consolidated Balance Sheets***

The following tables present the classifications and fair value of derivative instruments on the accompanying condensed consolidated balance sheets as of June 30, 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| **Instrument** | **Balance sheet location** | **June 30, 2024** |
| Derivatives not designated as hedging activities: |  |  |
| &nbsp;&nbsp;RGGI Futures Contracts | Assets from risk management activities | $174 |
| &nbsp;&nbsp;Commodity derivatives | Assets from risk management activities | 45730 |
| &nbsp;&nbsp;Commodity derivatives | Assets from risk management activities, long term | 143157 |
| &nbsp;&nbsp;Commodity derivatives | Liabilities from risk management activities | (84111) |
| &nbsp;&nbsp;Commodity derivatives | Liabilities from risk management activities, long term | (265399) |
| &nbsp;&nbsp;Capacity swaps | Assets from risk management activities | 1064 |
| &nbsp;&nbsp;Capacity swaps | Assets from risk management activities, long term | 752 |
| &nbsp;&nbsp;Heat rate call options | Liabilities from risk management activities | (50411) |
| &nbsp;&nbsp;Heat rate call options | Liabilities from risk management activities, long term | (30383) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | (239427) |
| &nbsp;&nbsp;Total derivatives, net liability |  | $(239427) |

---

***Impact of Derivative Instrument on the Accompanying Condensed Consolidated Statements of Operations***

The following tables present the disclosure of the location and amount of gains and losses on derivative instruments in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2024, by type of instrument. The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in<br> income on derivative** | **Amount of gain (loss) in<br> income on derivative** |
| <br>**Instrument** | <br>**Location of gain (loss) recognized in**<br>**income on derivatives** | **Three-months** <br>**ended June**<br>**30, 2024** | **Six-months**<br>**ended June**<br>**30, 2024** |
| Derivatives not designated as hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives - power | Gain on risk management activities | $43583 | 12038 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives - gas | Loss (gain) on risk management activities | (730) | 6267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Heat rate call options | Gain on risk management activities | 16159 | 21982 |
| &nbsp;&nbsp;&nbsp;&nbsp;RGGI Future Contracts | Gain on risk management activities | (4049) | (2504) |
| Total gain in income on derivatives |  | $54963 | 37783 |

---

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

***Offsetting of Derivative Assets and Liabilities***

The Company has not elected to present derivative assets and liabilities on the balance sheets by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

The following table presents the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying condensed consolidated balance sheets as of June 30, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Gross amounts not**<br>**offset in financial**<br>**statements as of**<br>**June 30, 2024** | **Offsetting**<br>**amounts of**<br>**derivative**<br>**instruments as of**<br>**June 30, 2024** |<br>**Net amounts after**<br>**offset as of**<br>**June 30, 2024** |
| Assets from risk management activities | $190877 | (182011) | 8866 |
| Liabilities from risk management activities | (430304) | 182011 | (248293) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net risk management activities | $(239427) |  | (239427) |

---

**(8)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. These costs are not allocated to the Company. All other costs related to the operation and management of the Generation Facilities are reflected in the accompanying condensed consolidated statements of operations.

**(9)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote.

The Company is, from time to time, a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's condensed consolidated balance sheets, statements of operations, or cash flows.

**(10)** **Members' Equity** 

Profits, losses and distributions are allocated in accordance with the provisions of the Company's limited liability agreement. For the six months ended June 30, 2024, the Company received a contribution of $4.0 million. For the three months ended June 30, 2024, the Company did not receive any such contributions.

**GRIDIRON INTERMEDIATE HOLDINGS, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024

**(11)** **Subsequent Events** 

On August 9, 2024, Gridiron Holdings contributed the equity interests of the Company to the newly formed entity, Lightning Power Holdings, LLC (Lightning Power), in exchange for 32% of Class A common units in Lightning.

## Exhibit 99.8

**Exhibit 99.8**

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Financial Statements

December 31, 2024 and 2023

(With Independent Auditors' Report Thereon)

![](tm2526385d1_ex99-8img01.jpg)

KPMG LLP

Suite 4000

1735 Market Street

Philadelphia, PA 19103-7501

**Independent Auditors' Report**

The Member

Linebacker Power Funding, LLC:

*Opinion*

We have audited the consolidated financial statements of Linebacker Power Funding, LLC and its subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, member's equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.

*Basis for Opinion*

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

*Emphasis of Matter*

As discussed in Note 11 to the consolidated financial statements, the Company has elected to change its method of accounting for interest rate swaps to remove the application of the simplified hedge accounting alternative available for private companies in 2024. Consequently, the Company's consolidated financial statements for 2024 and 2023 have been revised. Our opinion is not modified with respect to this matter.

*Responsibilities of Management for the Consolidated Financial Statements*

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the consolidated financial statements are available to be issued.

*Auditors' Responsibilities for the Audit of the Consolidated Financial Statements*

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding
the amounts and disclosures in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly,
no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

![](tm2526385d1_ex99-8img02.jpg)

Philadelphia, Pennsylvania

June 24, 2025

**Linebacker Power Funding, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Balance Sheets

December 31, 2024 and 2023

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $18825 | 18559 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 12848 | 11040 |
| &nbsp;&nbsp;&nbsp;Inventory | 33865 | 33684 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 15481 | 6502 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 44254 | 37380 |
| &nbsp;&nbsp;&nbsp;Other current assets | 149 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 125422 | 107251 |
| Property, plant and equipment | 732820 | 730889 |
| Accumulated depreciation | (38918) | (13756) |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 693902 | 717133 |
| Assets from risk management activities | 27803 | 2796 |
| &nbsp;&nbsp;&nbsp;Total assets | $847127 | 827180 |
| **Liabilities and Member's Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $28993 | 15797 |
| &nbsp;&nbsp;&nbsp;Accounts payable - affiliate | 603 | 351 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 35611 | 61601 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 65207 | 77749 |
| Long term debt |  | 238786 |
| Liabilities from risk management activities | 14795 | 6600 |
| Asset retirement obligation | 2006 | 1849 |
| Deferred taxes | 354 | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 82362 | 325124 |
| Commitments and contingencies (see note 10) |  |  |
| Member's equity | 764765 | 502056 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and member's equity | $847127 | 827180 |

---

See accompanying notes to the consolidated financial statements

**Linebacker Power Funding, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Operations

Year ended December 31, 2024 and for the period of June 12, 2023 to December 31, 2023

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;Energy revenues | $282238 | 560335 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on risk management activities | 240317 | (137047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 522555 | 423288 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | 162186 | 114763 |
| &nbsp;&nbsp;&nbsp;Loss on risk management activities | 10635 | 27619 |
| &nbsp;&nbsp;&nbsp;Operating and maintenance | 84632 | 37420 |
| &nbsp;&nbsp;&nbsp;General and administrative | 5946 | 4195 |
| &nbsp;&nbsp;&nbsp;Depreciation | 25162 | 13756 |
| &nbsp;&nbsp;&nbsp;Accretion | 157 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 288718 | 197827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 233837 | 225461 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (40119) | (27815) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 193718 | 197646 |
| &nbsp;&nbsp;&nbsp;Income tax expense | (2153) | (1811) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $191565 | 195835 |

---

See accompanying notes to the consolidated financial statements

**Linebacker Power Funding, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Member's Equity

Year ended December 31, 2024

and for the period of June 12, 2023 to December 31, 2023

(In thousands)

---

| | |
|:---|:---|
|  | **Member's**<br>**equity** |
| Balance at June 12, 2023 | $- |
| Capital contributions | 412863 |
| Net income | 195835 |
| Distributions | (106642) |
| Balance at December 31, 2023 | $502056 |
| Capital contributions | 389104 |
| Net income | 191565 |
| Distributions | (317960) |
| Balance at December 31, 2024 | $764765 |

---

See accompanying notes to the consolidated financial statements

**Linebacker Power Funding, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Cash Flows

Year ended December 31, 2024 and for the period of June 12, 2023 to December 31, 2023

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $191565 | $195835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 25162 | 13756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 16491 | 6869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | 214 | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion | 157 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk management activities | (49676) | 28025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts receivable | (1808) | (10828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in inventory and capital spares | (181) | (3251) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in prepaid expenses | (8979) | (3633) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other current assets | (63) | (86) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable - affiliate | 252 | 351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued expenses | 13196 | 11555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 186330 | 238807 |
| Cash flows from investing activites: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of assets and liabilities assumed |  | (757346) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (1931) | (1040) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (1931) | (758386) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of short term debt |  | 37000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on short term debt |  | (37000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long term debt | 150000 | 740000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on long term debt | (401000) | (489000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt issuance costs | (4277) | (19083) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital contributions | 389104 | 412863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions | (317960) | (106642) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (184133) | 538138 |
| Net change in restricted cash | 266 | 18559 |
| Restricted cash, beginning of year | 18559 | - |
| Restricted cash, end of year | $18825 | $18559 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;Cash paid for interest | $26775 | $18315 |

---

See accompanying notes to the consolidated financial statements

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

**(1)** **Organization** 

Linebacker Power Funding, LLC (the Company), a Delaware limited liability company, was formed on April 18, 2023 to own and finance certain power generation facilities. The Company is owned by Linebacker Power Holdings, LLC (Holdings). Holdings is wholly-owned by Linebacker Power, LLC (Linebacker). Linebacker is owned by LS Power Equity Partners IV, LP (Equity Partners).

On June 12, 2023 (the Acquisition Date), the Company acquired from Brazos Electric Power Cooperative, Inc. (Brazos) (the Acquisition) (see note 3) three natural gas-fired plants, providing 2,020 megawatts of power in the Electric Reliability Council of Texas, Inc (ERCOT), including Jack County Power, LLC (Jack), Johnson County Power, LLC (Johnson), and R.W. Miller Power, LLC (Miller) (collectively, the Generation Facilities).

On October 3, 2024, the interests in the Company were contributed to Thunder Generation Funding, LLC (Thunder), a limited liability company formed on June 26, 2024.

These consolidated financial statements reflect the year ended December 31, 2024, and the period of the Acquisition Date through December 31, 2023.

The Generation Facilities owned by the Company are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Entity** | <br>**Location** | <br>**Size** | **Year**<br>**operational** | <br>**Type** |
| Jack County Power, LLC | Jacksboro, TX | 1,237 MW | 2005-2011 | Combined Cycle |
| Johnson County Power, LLC | Cleburne, TX | 266 MW | 1997-2005 | Combined Cycle |
| R.W. Miller Power, LLC | Palo Pinto, TX | 517 MW | 1968-1994 | Simple & Combined Cycle |

---

**(2)** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Basis of Presentation*** 

The consolidated financial statements and related notes are presented in accordance with U.S. generally accepted accounting principles (U.S. GAAP). These consolidated financial statements include the financial statements of the Company. All intercompany transactions have been eliminated in the consolidated financial statements.

These consolidated financial statements and notes reflect the Company's evaluation of events occurring subsequent to the consolidated balance sheets date through June 24, 2025, the date the consolidated financial statements were issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Use of Estimates*** 

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the consolidated financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to the valuation of acquired assets, derivative instruments, and asset retirement obligations. Actual results could differ materially from those estimates.

(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Restricted Cash*** 

Restricted cash consists of amounts that are restricted under the terms of certain financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Accounts Receivable*** 

Accounts receivable primarily consists of amounts owed to the Company from ERCOT. Accounts receivable also consists of amounts owed to the Company for hedge settlements from energy marketers or other counterparties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Allowance for Doubtful Accounts*** 

Management establishes reserves on accounts receivable if it becomes probable that the Company will not collect part of the outstanding accounts receivable balance. Management reviews collectability and establishes or adjusts its allowance using the specific identification method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***  ***Inventory*** 

Inventory consists of fuel oil, natural gas and spare parts used in the production of electricity. Spare parts and fuel oil are stated at the lower of weighted average cost or net realizable value. Natural gas inventories are stated at cost. The current carrying value of both fuel oil and natural gas inventories will be recovered with normal profits in the ordinary course of business through the generation and sale of energy. At December 31, 2024, fuel oil was $12.7 million, natural gas was $3.0 million and spare parts inventory was $18.2 million. At December 31, 2023, fuel oil was $10.8 million, natural gas was $3.7 million and spare parts inventory was $19.2 million. Certain capital spare parts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***  ***Property, Plant and Equipment*** 

Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated remaining useful lives of individual assets or classes of assets. Plant and equipment is depreciated over the estimated useful life of the power generation facilities ranging from 19 to 29 years. The estimated useful life for computer software is 3 years, computer hardware is 5 years, vehicles is 5 years, and office equipment and furniture and fixtures are 7 years. Additions and improvements extending asset lives beyond their remaining estimated useful lives are capitalized, while repairs and maintenance, including planned major maintenance and capital spares, are charged to expense as incurred.

(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)***  ***Impairment of Long Lived Assets*** 

In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360, *Property, Plant, and Equipment*, long-lived assets and intangible assets with determinable useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the costs to sell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i)***  ***Asset Retirement Obligation*** 

In accordance with ASC 410, *Asset Retirement Obligations and Environmental Obligations*, the Company recognizes the fair value of the liability for asset retirement obligations in the period in which it is incurred if a reasonable estimate of fair value can be made. An amount equal to the present value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the useful life of the asset. The liability is accreted through charges to Accretion in the accompanying statement of operations. If the obligation is settled for an amount other than the carrying amount of the liability, a gain or loss is recognized upon settlement.

As of December 31, 2024 and 2023, the Company had a liability of $2.0 million and $1.8 million, respectively, for asset retirement obligations on the accompanying consolidated balance sheets to provide for the future removal and disposal of hazardous waste from the Generation Facilities. For the year ended December 31, 2024 and for the period ended December 31, 2023, Accretion expense was $157 thousand and $74 thousand, respectively, which is reflected in the accompanying consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j)***  ***Debt Issuance and Deferred Financing Costs*** 

Debt issuance and deferred financing costs are amortized over the term of the Company's financing arrangements using effective interest method. Unamortized debt issuance and deferred financing costs are reflected as a component of Long term debt on the accompanying consolidated balance sheets. For the year ended December 31, 2024, amortization of these costs was $1.5 million, $6.6 million was written off as a result of the amendment to the Credit Agreement, and $8.3 million was written off as a result of the termination of the Credit Agremeent (see note 6(b)). For the period ended December 31, 2023, amortization of these costs was $1.4 million, and $5.5 million was written off as a result of the refinancing (see note 6(b)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(k)***  ***Revenue Recognition*** 

Electric energy revenue is recognized upon transmission to the customers and consists of both physical and financial transactions. Physical transactions or the sale of generated electricity to meet supply are recorded on a gross basis in the accompanying consolidated statement of operations, in accordance with ASC 606, *Revenue from Contracts with Customers*. Financial transactions are recorded net within Energy and capacity revenues in the accompanying consolidated statements of operations in accordance with ASC 815, *Derivatives and Hedging* (ASC 815).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(l)***  ***Derivative Financial Instruments*** 

The Company enters into agreements that meet the definition of a derivative in accordance with ASC 815. These agreements are entered into to mitigate or eliminate market and financial risks.

ASC 815 provides for three different ways to account for derivative instruments: (i) as an accrual agreement, if the criteria for the "normal purchase normal sale" exception are met and documented; (ii) as a cash flow or fair value hedge, if the specified criteria are met and documented; or (iii) as a mark-to-market agreement with changes in fair value recognized in current period earnings. All derivative instruments that do not qualify for the normal purchase normal sale exception are recorded at fair value in Assets and Liabilities from risk management activities on the accompanying consolidated balance sheet.

If designated as a cash flow or fair value hedge, the Company documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy. This process includes linking all derivatives that are designated as hedges to specific assets or liabilities on the accompanying consolidated balance sheet or to forecasted transactions. The Company also assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. This could occur when: (1) it is determined that a derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; or (3) the derivative is discontinued as a hedging instrument, because it is unlikely that a forecasted transaction will occur. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective hedge of cash flows, the derivative will continue to be carried at fair value on the accompanying consolidated balance sheets and the gains and losses that were accumulated in other comprehensive income are recognized immediately or over the remaining term of the forecasted transaction in the accompanying statement of operations.

Changes in the fair value of derivative instruments are recognized in the accompanying statements of operations.

Any gains and losses resulting from changes in the market value of the derivative instruments contracts are recorded in the accompanying statements of operations in the current period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(m)***  ***Fair Value Measurements*** 

Fair value, as defined in ASC 820, *Fair Value Measurements and Disclosures* (ASC 820), is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(n)***  ***Fair Value of Financial Instruments*** 

The carrying amounts of Restricted cash, Accounts receivable, and Accounts payable and accrued expenses are equal to or approximate their fair values due to the short term maturity of those instruments. The fair value of Long term debt approximates its book value as of December 31, 2023, as the interest rates are variable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o)***  ***Income Taxes*** 

The Company has been organized as a limited liability company and is treated as a disregarded entity for federal and state income tax purposes. Therefore, no federal and state income taxes other than Texas Gross Margin Tax (Margin Tax) are assessed at the entity level. Deferred taxes recorded on the accompanying balance sheets arise from Gross Margin Tax temporary differences associated with unrealized gains and losses on the Company's energy risk management activities.

The Company, in accordance with ASC 740, *Income Taxes*, performs the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are ''more likely than not'' of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely than not threshold would be derecognized and recorded as a tax benefit or expense in the current period. However, the Company's conclusions regarding these uncertain tax positions will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analysis of tax laws, regulations and interpretations thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(p)***  ***Concentrations of Credit and Market Risk*** 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of restricted cash, accounts receivable, and derivatives. Restricted cash accounts are generally held at major institutions. Accounts receivable is concentrated within entities engaged in the energy industry. These industry concentrations may impact the Company's overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic, industry, or other conditions.

The Company is exposed to credit losses in the event of noncompliance by counterparties on its derivative financial instruments. The counterparties to these transactions are major financial institutions. The Company does not require collateral or other security to support its financial instruments with credit risk.

For the year ended December 31, 2024 and for the period ended December 31, 2023, all of the revenues were from sales to ERCOT, as well as hedge settlements from various third parties. All revenues are subject to geographical market risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(q)***  ***Risks and Uncertainties*** 

The Company is subject to a variety of factors, including the economy, the regulatory environment, the electricity markets, and the availability of capital resources. As with any power generation facility, operations of the Generation Facility involves risk, including the performance of the facility below expected levels of efficiency and output, shut downs due to the breakdown or failure of equipment or processes, violations of permit requirements, operator error, labor disputes, weather interferences, or catastrophic events such as fires, earthquakes, floods, explosions, pandemics, or other similar occurrences affecting a power generation facility or its power purchasers. The occurrence of any of these events could significantly reduce or eliminate revenues generated by the facility or significantly increase the expenses of the facility, adversely impacting the Company's ability to make payments of principal and interest on its debt when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(r)***  ***Commitments and Contingencies*** 

In accordance with ASC 450, *Contingencies* (ASC 450), the Company records a loss contingency for matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Loss contingency reserves are based on estimates and judgments made by management with respect to the likely outcome of matters, including any applicable insurance coverage for litigation matters, and are adjusted as circumstances warrant. These estimates and judgments could change based on new information, changes in laws or regulations, changes in management's plans or intentions, the outcome of legal proceedings, settlements or other factors.

Additionally, the Company follows the guidance of ASC 460, *Guarantees* (ASC 460), for disclosing and accounting of guarantees and indemnifications entered into during the course of business. When a guarantee or indemnification subject to ASC 460 is entered into the estimated fair value of the guarantee or indemnification is assessed. Some guarantees and indemnifications could have a financial impact under certain circumstances. Management considers the probability of such circumstances occurring when estimating fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(s)***  ***Recent Accounting Pronouncements (Not Yet Adopted)*** 

In December 2023, FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires certain quantitative rate reconciliation disclosures for public entities. Additionally, this ASU requires all entities to disclose income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2025. The Company is currently evaluating the impact of the standard on the Company's consolidated financial statements.

**(3)** **Acquisition** 

The cost of the Company's interest in the Generation Facility included in the Acquisition (see note 1) was approximately $757.3 million, including $7.7 million of direct acquisition costs that were recorded as Property, plant, and equipment in the accompanying balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

In accordance with ASC 805, *Business Combinations* (ASC 805), the acquired assets and assumed liabilities were recorded at their fair values, which were determined by an independent third-party valuation using a discounted cash flow method. The acquisition was funded with $350 million in debt (see note 6) and $412.9 million of capital contributions.

In accordance with ASC 805, the acquisition was determined to be an asset acquisition. The following table summarizes the estimated fair value of assets acquired and liabilities assumed at the Acquisition Date (in thousands):

---

| | |
|:---|:---|
| **Assets Acquired** | |
| Accounts receivable | $212 |
| Inventory | 52247 |
| Property and equipment | 706260 |
| Prepaid expenses | 2869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets acquired | 761588 |
| **Liabilities Assumed** |  |
| Current liabilities | 4242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities assumed | 4242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets acquired | $757346 |

---

**(4)** **Property, Plant and Equipment, Net** 

As of December 31, 2024 and 2023, Property, plant and equipment, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Plant and equipment | $728206 | 727190 |
| Computer software and hardware | 1914 | 999 |
| Land | 2700 | 2700 |
| &nbsp;&nbsp;&nbsp;Total property, plant and equipment | 732820 | 730889 |
| Accumulated Depreciation | (38918) | (13756) |
| &nbsp;&nbsp;&nbsp;Total property, plant and equipment, net | $693902 | 717133 |

---

For the year ended December 31, 2024 and for the period ended December 31, 2023, Depreciation for Property, plant and equipment, net was $25.2 million and $13.8 million, respectively.

(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

**(5)** **Facility and Contract Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Energy Management Agreement*** 

On May 4, 2023, the Company entered into an EMA with EDF to provide power, fuel and risk management services to the Generation Facilities. EDF primarily schedules and coordinates the sale of power and other ancillary services and the natural gas supply required to operate the Generation Facilities. EDF receives a fixed weekly management fee paid monthly. The contract with EDF expires on August 1, 2025.

For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company incurred costs under the EMAs of $1.2 million and $723 thousand, respectively, which are recorded under General and administrative expenses in the accompanying consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Operation and Maintenance Agreement*** 

The Company has several operations and maintenance agreements (O&M agreements) to provide for the operation and maintenance of each generation facility. The Generation Facilities pay a fixed monthly operating fee, based on their respective agreement, annual incentive fee, and reimburse the operator for all labor costs, including payroll and related taxes, and other related costs. Monthly operating fees are subject to an annual adjustment based on specified indices.

For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company incurred fixed costs under the O&M agreements of $1.5 million and $766 thousand, respectively, which are recorded under General and administrative expenses, and incurred $18.1 million and $10.2 million, respectively, of other labor costs, which are recorded under Operating and maintenance expenses in the accompanying consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Gas Transportation and Storage Agreements*** 

The Company has several firm gas transportation and storage agreements with various counterparties. These agreements call for the counterparties to deliver natural gas to a specific interconnection point, for either consumption or storage, specified in the respective agreement with certain Generation Facilities.

For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company incurred costs of $16.8 million and $9.2 million, respectively, under the gas transportation and storage agreements, which are reflected as a component of Fuel and transportation expenses on the accompanying consolidated statements of operations. As of December 31, 2024 and 2023, the Company has $2.6 million and $1.8 million, respectively, in LOCs outstanding related to the gas transportation and storage agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Electric Interconnection Agreement*** 

The Company has an interconnection agreement with ERCOT to connect the Generation Facilities to the electrical power grid.

(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Long Term Service Agreement*** 

Johnson and Siemens Energy, Inc. (Siemens) are parties to a long term service agreement (Johnson LTSA) which provides outage procedures, program management services, and other maintenance services and parts for the covered units. The payments under the Johnson LTSA are deferred as prepaid expenses until the planned outage maintenance occurs, at which time, the cost of the planned maintenance outage will be expensed. The quarterly payments are expensed. The Johnson LTSA expires on December 31, 2040. The Company pays for services as performed. The Company also pays an annual fixed fee subject to escalation. For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company expensed $1.5 million and $904 thousand, respectively, related to the Johnson LTSA, recorded under Operating and maintenance expenses in the accompanying consolidated statements of operations.

Jack and GE International (GE) are parties to a long term service agreement (Jack LTSA) which provides certain maintenance services and parts for the covered units. The payments under the Jack LTSA are deferred as prepaid expenses until the planned outage maintenance occurs, at which time, the cost of the planned maintenance outage will be expensed. The quarterly payments are expensed. The Jack LTSA expires on December 31, 2033. The Company pays for services as performed. The Company also pays an annual fixed fee subject to escalation. For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company expensed $4.6 million and $2.7 million, respectively, related to the Jack LTSA.

The Company has various long-term contractual and commercial commitments of which the significant contracts have been discussed in this footnote. The following table summarizes such obligations with respect to the significant contractual and commercial commitments as of December 31, 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| <br>**Contractual Obligations** | **Less than**<br>**1 year** | <br>**Total** |
| Energy Management | 1200 | 32900 |
| Operations & Maintenance | 1010 | 41398 |
| Firm Fuel Transportation | 12855 | 42068 |
| Long Term Service Agreement | 5971 | 95544 |
|  | 21036 | 211910 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

**(6)** **Financing Arrangements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Bridge Credit Agreement*** 

On June 12, 2023 the Company executed a credit agreement with a group of lenders (the Bridge Credit Agreement). The Bridge Credit Agreement consisted of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a $350 million term facility (Bridge Term Loan) with a maturity date of December 12, 2024; (i) used
to pay a portion of the purchase price to Brazos in connection with the Acquisition, (ii) finance the ongoing working capital requirements,
and (iii) pay the fees and expenses associated with the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) a $50 million revolving facility (Bridge Revolving Facility) with a maturity date of December 12,
2024 used to (i) support obligations under certain agreements and (ii) satisfy certain collateral requirements with respect
to maintenance and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) a $50 million Letter of Credit facility (Bridge LC Facility) with a maturity date of December 12,
2024. The Bridge Credit Agreement permitted both Eurodollar and Base rate loans. The interest rate on Eurodollar loans was equal to the Secured Overnight Financing Rate (SOFR), or other benchmark replacement as determined, for the applicable term of the loan plus an applicable margin of 4.25%.

Under the terms of the Bridge Depositary Agreement, the receipt of revenues, debt service payments and the payments for certain categories of expenses were segregated into separate bank accounts. The Company had established the required bank accounts and had pledged all its rights, title and interest in the bank accounts as security for its payment obligations under the Bridge Credit Agreement.

All obligations of the Company under the Bridge Credit Agreement were guaranteed by Holdings, as outlined in the Guarantee and Collateral Agreement.

On June 29, 2023, the Bridge Credit Agreement was terminated in connection with the refinancing with a new group of lenders (see note 6(b)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Credit Agreement*** 

On June 29, 2023 the Company executed a credit agreement with a group of lenders (the Credit Agreement). The Credit Agreement consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a $390 million term facility (Term Loan) with a maturity date of June 29, 2028; (i) used to
repay the Bridge Term Loan in full, (ii) to finance the ongoing working capital requirements of the Company, and (iii) pay the
fees and expenses associated with the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) a $35 million revolving facility (Revolving Facility) with a maturity date of June 29, 2028 used
to (i) support obligations under certain agreements and (ii) satisfy certain collateral requirements with respect to maintenance
and operations.

(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) a $45 million Letter of Credit facility (LC Facility) with
a maturity date of June 29, 2028.

On March 26, 2024, the Credit Agreement was amended to increase the Term Loan to $400 million and reduce all applicable margin rates by .25%.

On October 3, 2024, the Company received a capital contribution of $389.1 million from Thunder. This capital contribution was specifically designated for and utilized in the repayment of the

Company's outstanding Term Loan, at which time the Credit Agreement was terminated.

The Credit Agreement permits both Eurodollar and Base rate loans. The interest rate on Eurodollar loans is equal to the SOFR, or other benchmark replacement as determined, for the applicable term of the loan plus an applicable margin of 4.00% if in compliance with the Hedge Margin Requirement, 4.50% otherwise. Interest rates on Base rate loans are equal to the Prime rate plus an applicable margin of 3.00% if in compliance with the Hedge Margin Requirement, 3.50% otherwise. The interest rate in effect at December 31, 2023 for the Term Loan was 9.66%.

Under the terms of the Credit Agreement, quarterly scheduled principal payments of the original outstanding principal amount are required starting September 30, 2023 through March 31, 2028. Each quarter, if there are excess cash flows as described in the depositary agreement (Depository Agreement), 75% of the excess cash flows are applied to repay a portion of the outstanding debt, the remaining 25%, subject to the Company meeting certain distribution conditions, is distributed up to the Company's member. For the year ended December 31, 2024, $5.5 million of excess cash flow generated from operations was applied to repay a portion of the outstanding principal on the Term Loan. For the period ended December 31, 2023, $139.0 million of excess cash flow generated from operations was applied to repay a portion of the outstanding principal on the Term Loan. This excess cash flow satisfies mandatory amortization requirements through maturity of Term Loan.

Under the terms of the Depositary Agreement, the receipt of revenues, debt service payments and the payments for certain categories of expenses are segregated into separate bank accounts. The Company has established the required bank accounts and has pledged all its rights, title and interest in the bank accounts as security for its payment obligations under the Credit Agreement.

All obligations of the Company under the Credit Agreement are guaranteed by Holdings, as outlined in the Guarantee and Collateral Agreement.

In accordance with the Credit Agreement, the Company is also required to maintain and have available a debt service reserve at least equal to the aggregate scheduled principal, interest, interest rate swaps settlement, and other scheduled debt service projected to be payable under the Credit Agreement for the six-month period occurring after the last day of each calendar quarter. As of December 31, 2023, a letter of credit (LOC) was issued in the amount of $13.7 million to satisfy this requirement.

Under the Credit Agreement, the Company is also required to maintain and have available a major maintenance reserve in the form of cash or LOCs of at least equal to the aggregate major maintenance expenses reasonably anticipated becoming due within the six month period, occurring after the last day of each calendar quarter. As of December 31, 2023, the Company issued a LOC in the amount of $13.1 million to satisfy this requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Under the terms of the Credit Agreement, the Company is required to hedge a minimum of 50% of the sum of the outstanding principal amount of the Term Loan. The minimum hedge requirement is satisfied through several interest rate derivatives as discussed in note 7.

As of December 31, 2023, the unamortized debt issuance and deferred financing costs totaled $12.2 million, of which the current portion was $2.8 million. The amortization of these costs is reflected as a component of Interest expense, net on the accompanying consolidated statement of operations. For the period ended December 31, 2023, amortization of such costs totaled $1.4 million.

As of December 31, 2023, there was $251 million outstanding under the Credit Agreement, and $30.2 million of LOCs outstanding under the Revolving Facility.

**(7)** **Derivative Instruments and Hedging Activities** 

The Company enters into interest rate swaps to reduce its exposure to market risks from changing interest rates and commodity derivatives to reduce its exposure to market fluctuations of energy and natural gas prices. The Company is a party to the following derivative instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Interest Rate Swaps*** 

In August 2023, the Company entered into interest rate swap agreements with an initial aggregate amortizing notional amount of $157.5 million, to effectively convert the floating interest rate on a portion of the Term Loan to a fixed interest rate of 4.524% for the quarterly periods, commencing on September 29, 2023, through June 30, 2026. The interest rate swaps were terminated in connection with the termination of the credit agreement (see note 6(b)).

As of December 31, 2023, the outstanding notional amount of the interest rate swaps totaled $156.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Commodity Derivatives*** 

The Company entered into various energy related derivatives to manage the commodity price risk associated with power revenues and fuel costs, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap Contracts which require payments to or from counterparties based upon the difference between
the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk associated
with changes in the ERCOT power prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap Contracts which require payments to or from counterparties based upon the difference between
the contract and the market price for a predetermined notional amount. These contracts are used to manage commodity price risk at multiple
delivery points associated with changes in fuel prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

The Company's outstanding net position as of December 31, 2024 is summarized in the following table (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2025** | **2026** | **2027** | **2028** | **2029** |
| Power Swap Contracts (MWh) | Sell | 4123 | 588 | 534 | 793 | 531 |
| Gas Swap Contracts (MMBtu) | Buy | 26805 | 4080 | 3705 | 5505 | 3690 |

---

***Fair Value Measurements***

The following tables set forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of December 31, 2024. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· Level 1 – Quoted prices are available in active markets for identical
assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient
frequency and volume to provide pricing information on an ongoing basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which
are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using
models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including
quoted forward prices for commodities, time value, volatility factors, and current market and agreement prices for the underlying instruments,
as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full
term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed
in the marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 3 – Pricing inputs include significant inputs that are generally less observable from objective
sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

The following table present assets and liabilities measured and recorded at fair value on the Company 's consolidated balance sheets and their level within the fair value hierarchy as of December 31, 2024 and 2023 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2-024** | **Fair value as of December 31, 2-024** | **Fair value as of December 31, 2-024** | **Fair value as of December 31, 2-024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity derivatives - assets | $- | 72057 |  | 72057 |
| Commodity derivatives - liabilities | - | (50406) | - | (50406) |
| &nbsp;&nbsp;&nbsp;Derivative instrument assets (net) | $- | 21651 | - | 21651 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2-024** | **Fair value as of December 31, 2-024** | **Fair value as of December 31, 2-024** | **Fair value as of December 31, 2-024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Interest rate swaps - assets | $- | 306 |  | 306 |
| Interest rate swaps - liabilities |  | (12025) |  | (1205) |
| Commodity derivatives - assets |  | 39870 |  | 39870 |
| Commodity derivatives - liabilities | - | (66996) | - | (66996) |
| &nbsp;&nbsp;&nbsp;Derivative instrument liabilities (net) | $- | (28025) | - | (28025) |

---

For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company did not have any transfers between Levels 1, 2, or 3.

The following tables present information concerning the impact of derivative instruments on the accompanying consolidated balance sheet and consolidated statement of operations.

***Impact of Derivative Instruments on the Accompanying Consolidated Balance Sheet***

The following table presents the classifications and fair value of derivative instruments on the accompanying consolidated balance sheets as of December 31, 2024 and 2023 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | 2024 | 2023 |
| Derivatives not designated as hedging activities: | Derivatives not designated as hedging activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | Assets from risk-management activities – short term | $- | 306 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | Liabilities from risk-management activities – long term |  | (1205) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | Assets from risk-management activities – short term | 44254 | 37074 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | Assets from risk-management activities – long term | 27803 | 2796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | Liabilities from risk-management activities – short term | (35611) | (61601) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | Liabilities from risk-management activities – long term | (14795) | (5395) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging activities | 21651 | (28025) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives, net asset (liability) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives, net asset (liability) | $21651 | (28025) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

***Impact of Derivative Instruments on the Accompanying Consolidated Statements of Operations***

The following table presents the classification and amount of the gains and losses on derivative instruments in the accompanying consolidated statements of operations for the year ended December 31, 2024 and for the period ended December 31, 2023.

The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in income on** | **Amount of gain (loss) in income on** |
| | | **derivatives for the years ended** | **derivatives for the years ended** |
| | | **December 31,** | **December 31,** |
| <br>**Instrument** | <br>**Location of gain (loss) recognized in**<br>**income on derivatives** | **2024** | **2023** |
| Derivatives not designated as hedges |  |  |  |
| &nbsp;&nbsp;Commodity derivatives - power | Gain (loss) on risk management activities | $240317 | (137047) |
| &nbsp;&nbsp;Commodity derivatives - gas | Loss on risk management activities | (10635) | (27619) |
| &nbsp;&nbsp;Interest rate swap | Interest expense, net | 899 | (899) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net gain (loss) in income on derivatives |  | $230581 | (165565) |

---

For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company did not record any ineffectiveness on the interest rate swaps.

***Offsetting of Derivative Assets and Liabilities***

The Company has not elected to present derivative assets and liabilities on the balance sheet by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying balance sheets for the year ended December 31, 2024 and for the period ended December 31, 2023 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| <br>December 31, 2024 | **Gross amounts not**<br>**offset in financial**<br>**statements** | <br>**Offsetting amounts of**<br>**derivative instruments** | <br>**Net amounts after**<br>**offset** |
| Assets from risk management activities | $72057 | (48099) | 23958 |
| Liabilities from risk management activities | (50406) | 48099 | (2307) |
|  | $21651 | - | 21651 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

---

| | | | |
|:---|:---|:---|:---|
| <br>December 31, 2023 | **Gross amounts not**<br>**offset in financial**<br>**statements** | <br>**Offsetting amounts of**<br>**derivative instruments** | <br>**Net amounts after**<br>**offset** |
| Assets from risk management activities | $40176 | (39126) | 1050 |
| Liabilities from risk management activities | (68201) | 39126 | (29075) |
|  | $(28025) | - | (28025) |

---

**(8)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. These costs are not allocated to the Company. For the year ended December 31, 2024 and for the period ended December 31, 2023, the Company made payments of $1.2 million and $614 thousand, respectively, to an affiliate for costs related to the operation and management of the Company, which are reflected under General and administrative expenses in the accompanying consolidated statements of operations.

Certain derivative instruments are entered into by an affiliate on behalf of the Company and have been recorded in the consolidated financial statements of the Company.

**(9)** **Member's Equity** 

Profits, losses, and distributions are allocated in accordance with the provisions of the Company's Limited Liability Company agreement. During 2024, the Company made distributions in the amounts of $317.9 million, consisting of $182.3 million from the financing of the amendment to the Credit Agreement and $135.6 million in connection with the termination of the Credit Agreement (see note 6(b)). During 2023, the Company made distributions in the amounts of $106.6 million, consisting of $23.3 million from the financing of the Credit Agreement and $83.3 million from excess cash flows from operations. On October 3, 2024, the Company received a capital contribution of $389.1 million from Thunder (see note 6(b)).

**(10)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote.

The Company, from time to time, is a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's financial position, results of operations, or cash flows.

(Continued)

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

**(11)** **Change in Accounting Principle** 

The Company changed its method of accounting for interest rate swap agreements to remove the application of the simplified hedge accounting alternative available for private companies. These consolidated financial statements have been revised to remove the application of hedge accounting resulting in changes in the fair value of the interest rate swaps now being recognized in earnings. This change has been applied retrospectively to all periods presented.

The effects of this change in accounting principle on the Company's consolidated financial statements as of and for the year ended December 31, 2023 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Financial Statement Line Item** | **2023 Previously**<br>**Reported** | **2023 As**<br>**Revised** | **2023 Effect of**<br>**Change** |
| Consolidated Statements of Operations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | $(26916) | (27815) | (899) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $196734 | 195835 | (899) |
| Consolidated Statements of Comprehensive Income |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on derivatives | $(899) | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income | $195835 | N/A | N/A |
| Consolidated Statement of Member's Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $196734 | 195835 | (899) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss | $(899) |  | 899 |
| Consolidated Statement of Cash Flows |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Income | $196734 | 195835 | (899) |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Management Activities | $27126 | 28025 | 899 |

---

**(12)** **Subsequent Events** 

On June 9, 2025, the Company entered into a credit agreement (the New Credit Agreement) with a group of lenders. The New Credit Agreement consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a $650 million term facility with a maturity date of June 9, 2028; used to (i) make a distribution
to Equity Partners, (ii) finance the ongoing working capital requirements of the Company, and (iii) pay the fees and expenses
associated with the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) a $50 million revolving facility with a maturity date of June 9, 2028 used to (i) support obligations
under certain agreements and (ii) satisfy certain collateral requirements with respect to maintenance and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) a $50 million Letter of Credit facility with a maturity date of June 9, 2028.

## Exhibit 99.9

**Exhibit 99.9**

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Condensed Consolidated Financial Statements

As of June 30, 2025 and December 31, 2024,

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Consolidated Balance Sheets<br> (Unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $22167 | $18825 |
| &nbsp;&nbsp;&nbsp;Accounts receivable and affiliates | 23807 | 12848 |
| &nbsp;&nbsp;&nbsp;Inventory | 36694 | 33865 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 14590 | 15481 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | 65673 | 44254 |
| &nbsp;&nbsp;&nbsp;Other current assets | 213 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 163144 | 125422 |
| Property, plant, and equipment | 735403 | 732820 |
| Accumulated depreciation | (51557) | (38918) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | 683846 | 693902 |
| Assets from risk management activities, long term | 54962 | 27803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $901952 | $847127 |
| **Liabilities and Member's Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Short term debt | $6500 | $- |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 9222 |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 43009 | 28993 |
| &nbsp;&nbsp;&nbsp;Accounts payable - affiliate | 603 | 603 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | 65375 | 35611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 124709 | 65207 |
| Long term debt | 632012 |  |
| Liabilities from risk management activities, long term | 46146 | 14795 |
| Asset retirement obligations | 2087 | 2006 |
| Deferred Taxes | 499 | 354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 805453 | 82362 |
| Member's equity | 96499 | 764765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and member's equity | $901952 | $847127 |

---

See accompanying notes to the interim condensed consolidated financial statements

**LINEBACKER POWER FUNDING, LLC**

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Operations

(Unaudited)

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended**<br>**June 30, 2025** | **Six months ended**<br>**June 30, 2025** | **Three months ended**<br>**June 30, 2024** | **Six months ended**<br>**June 30, 2024** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Energy revenues | $71582 | $160958 | $86520 | $144771 |
| &nbsp;&nbsp;&nbsp;Gain on risk management activities | 76009 | 61639 | 22896 | 56025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 147591 | 222597 | 109416 | 200796 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | 51322 | 125641 | 36985 | 80917 |
| &nbsp;&nbsp;&nbsp;Loss on risk management activities | 22910 | 7609 | 2697 | 10539 |
| &nbsp;&nbsp;&nbsp;Operating and maintenance | 33608 | 56098 | 19321 | 34101 |
| &nbsp;&nbsp;&nbsp;General and administrative | 1275 | 2541 | 1665 | 3080 |
| &nbsp;&nbsp;&nbsp;Depreciation | 6324 | 12639 | 6286 | 12551 |
| &nbsp;&nbsp;&nbsp;Accretion | 41 | 81 | 38 | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 115480 | 204609 | 66992 | 141263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 32111 | 17988 | 42424 | 59533 |
| Interest expense, net | (3199) | (3129) | (10398) | (21938) |
| &nbsp;&nbsp;&nbsp;Income before income taxes | 28912 | 14859 | 32026 | 37595 |
| Income tax expense | 653 | 748 | (119) | 1685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $28259 | $14111 | $32145 | $35910 |

---

See accompanying notes to the interim condensed consolidated financial statements

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES**

Consolidated Statements of Member's Equity

(Unaudited)

(In thousands)

---

| | |
|:---|:---|
|  | Total<br>member's<br>equity |
| Balances at December 31, 2023 | $502056 |
| Net income (loss) | 191565 |
| Capital contribution | 389104 |
| Distributions | (317960) |
| **Balances at December 31, 2024** | $764765 |
| Balances at March 31, 2025 | $703962 |
| Net income (loss) | 28259 |
| Capital contribution | 5541 |
| Distributions | (641263) |
| **Balances at June 30, 2025** | $96499 |
| Balances at December 31, 2024 | $764765 |
| Net income (loss) | 14111 |
| Capital contribution | 11525 |
| Distributions | (693902) |
| **Balances at June 30, 2025** | $96499 |
| Balances at March 31, 2024 | $315420 |
| Net income (loss) | 32145 |
| **Balances at June 30, 2024** | $347565 |
| Balances at December 31, 2023 | $502056 |
| Net income (loss) | 35910 |
| Capital contribution | 825 |
| Distributions | (191226) |
| **Balances at June 30, 2024** | $347565 |

---

See accompanying notes to the interim condensed consolidated financial statements

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended**<br>**June 30, 2025** | **Six months ended**<br>**June 30, 2025** | **Three months ended**<br>**June 30, 2024** | **Six months ended**<br>**June 30, 2024** |
| Cash flows from operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $28259 | $14111 | $32145 | $35910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash used |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 6324 | 12639 | 6286 | 12551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing cost | 245 | 245 | 532 | 7636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | 370 | 145 |  | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion | 40 | 81 | 38 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk management activities | (26315) | 12537 | 10774 | 32160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts receivable | (20995) | (10959) | (25111) | (25477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in inventory and capital spares | (4680) | (4963) | 921 | 3032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in prepaid expenses | 1119 | 891 | (1718) | (6562) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other current assets | (37) | (64) | (2070) | (2070) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable - affiliate |  |  | 300 | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued expenses | 24027 | 14016 | 5364 | 4019 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accrued interest | - | - | (263) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 8357 | 38679 | 27198 | 61189 |
| Cash flows from investing activites: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (292) | (449) | (781) | (1551) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (292) | (449) | (781) | (1551) |
| Cash flows from financing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of short term debt | 6500 | 6500 |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on short term debt |  |  | (2000) | (2000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long term debt | 650000 | 650000 |  | 150000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on long term debt |  |  | (1499) | (2500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt issuance costs | (9011) | (9011) |  | (4277) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital contributions | 5541 | 11525 |  | 825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions | (641263) | (693902) | - | (191226) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | 11767 | (34888) | (3499) | (47178) |
| Net change in restricted cash | 19832 | 3342 | 22918 | 12460 |
| Restricted cash, beginning of period | 2335 | 18825 | 8101 | 18559 |
| Restricted cash, end of period | $22167 | $22167 | $31019 | $31019 |
| Supplemental disclosure of cash flow information: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $2959 | $2959 | $10219 | $16485 |

---

See accompanying notes to the interim condensed consolidated financial statements

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

**(1)** **Organization** 

Linebacker Power Funding, LLC (the Company), a Delaware limited liability company, was formed on April 18, 2023 to own and finance three natural gas-fired plants (the Generation Facilities), providing 2,020 megawatts of power in the Electric Reliability Council of Texas, Inc (ERCOT). The Company is owned by Linebacker Power Holdings, LLC (Holdings). Holdings is wholly-owned by Linebacker Power, LLC (Linebacker). Linebacker is owned by LS Power Equity Partners IV, LP (Equity Partners).

On October 3, 2024, the interests in the Company were contributed to Thunder Generation Funding, LLC (Thunder), a limited liability company formed on June 26, 2024.

On May 12, 2025, a definitive purchase and sale agreement was executed with NRG Energy, Inc. for the sale of the Company. The transaction is subject to customary closing conditions and regulatory approvals.

These condensed consolidated financial statements reflect the three months and six months ended June 30, 2025 and June 30, 2024.

The Generation Facilities owned by the Company are described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Entity** | <br>**Location** | <br>**Size** | **Year**<br>**operational** | <br>**Type** |
| Jack County Power, LLC | Jacksboro, TX | 1,237 MW | 2005-2011 | Combined Cycle |
| Johnson County Power, LLC | Cleburne, TX | 266 MW | 1997-2005 | Combined Cycle |
| R.W. Miller Power, LLC | Palo Pinto, TX | 517 MW | 1968-1994 | Simple & Combined Cycle |

---

**(2)** **Summary of Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Basis of Presentation*** 

The interim condensed consolidated financial statements of Linebacker Power Funding, LLC have been prepared by us, without audit, in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included, and intercompany transactions have been eliminated in the interim condensed and consolidated financial statements. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes for the year ended December 31, 2024, and December 31, 2023. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

These condensed consolidated financial statements and notes reflect the Company's evaluation of events occurring subsequent to the condensed consolidated balance sheets date through August 15, 2025, the date the condensed consolidated financial statements were issued.

6 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Use of Estimates*** 

Management makes estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses to prepare the condensed consolidated financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to the valuation of acquired assets, derivative instruments, and asset retirement obligations. Actual results could differ materially from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Restricted Cash*** 

Restricted cash consists of amounts that are restricted under the terms of certain financing agreements from transfer or dividend until such time as certain conditions are met. Such restricted cash is used primarily for operating expenses and debt service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Income Taxes*** 

The Company has been organized as a limited liability company and is treated as a disregarded entity for federal and state income tax purposes. Therefore, no federal and state income taxes other than Texas Gross Margin Tax (Margin Tax) are assessed at the entity level. Deferred taxes recorded on the accompanying balance sheets arise from Gross Margin Tax temporary differences associated with unrealized gains and losses on the Company's energy risk management activities.

The Company, in accordance with ASC 740, Income Taxes, performs the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are ''more likely than not'' of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely than not threshold would be derecognized and recorded as a tax benefit or expense in the current period. However, the Company's conclusions regarding these uncertain tax positions will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analysis of tax laws, regulations and interpretations thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** **Select Balance Sheet Information** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Inventory*** 

As of June 30, 2025, fuel oil was $12.1 million, natural gas was $4.6 million and spare parts inventory was $20.0 million. As of December 31, 2024, fuel oil was $12.7 million, natural gas was $3.0 million and spare parts inventory was $18.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Property, Plant and Equipment*** 

Property, plant and equipment are stated at cost, less accumulated depreciation. As of June 30, 2025, and June 30, 2024, Property, plant and equipment, net consisted of the following (in thousands):

7 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **June**<br>**30, 2025** | **December**<br>**31, 2024** |
| Plant and equipment | $730610 | $728206 |
| Land | 2700 | 2700 |
| Computer software and hardware | 1914 | 1914 |
| Office furniture & fixtures | 151 |  |
| Vehicles | 28 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total property, plant and equipment** | **735403** | **732820** |
| Accumulated depreciation | (51557) | (38918) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Property, plant and equipment, net** | $**683846** | $**693902** |

---

For each of the three and six months periods ended June 30, 2025 and 2024, depreciation expense for property, plant and equipment was $6.3 million and $12.6 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Asset Retirement Obligation*** 

As of June 30, 2025 and December 31, 2024, the Company had a liability of $2.1 million and $2.0 million, respectively, for asset retirement obligations on the accompanying condensed consolidated balance sheets to provide for the future removal and disposal of hazardous waste from the Generation Facilities. For the three month and six month period ended June 30, 2025, Accretion expense was $41 thousand and $81 thousand, respectively. For the three month and six month period ended June 30, 2024, Accretion expense was and $38 thousand and $75 thousand, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4)** **Facility and Contract Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Energy Management Agreement*** 

For the three month and six month period ended June 30, 2025, the Company incurred costs under the Energy Management Agreements (EMAs) of $300 thousand and $600 thousand respectively and for the three month and six month period ended June 30, 2024, the Company incurred costs under the EMAs of $300 thousand and $600 thousand, respectively, which are recorded under General and administrative expenses in the accompanying condensed consolidated statements of operations. The characteristics and details of the EMAs remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2024, with no material updates during the interim period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Operation and Maintenance Agreement*** 

For the three month and six month period ended June 30, 2025, the Company incurred fixed costs under the operation and maintenance agreements of $380 thousand and $793 thousand, respectively, which are recorded under General and administrative expenses, and incurred $4.2 million and $8.7 million, respectively, of other labor costs, which are recorded under Operating and maintenance expenses in the accompanying condensed consolidated statements of operations. For the three month and six month period ended June 30, 2024, the Company incurred fixed costs under the operation and maintenance agreements of 423 thousand and $805 thousand, respectively, which are recorded under General and administrative expenses, and incurred $4.1 million and $8.2 million, respectively, of other labor costs, which are recorded under Operating and maintenance expenses in the accompanying condensed consolidated statements of operations. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2024, with no material updates during the interim period.

8 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***  ***Gas Transportation and Storage Agreements*** 

For the three month and six month period ended June 30, 2025, the Company incurred costs of $5.8 million and $11.2 million respectively, and for the three month and six month period ended June 30, 2024, the Company incurred costs of $3.9 million and $8.1 million respectively, under the gas transportation and storage agreements, which are reflected as a component of Fuel and transportation expenses on the accompanying condensed consolidated statements of operations. As of June 30, 2025 and June 30, 2024, the Company has $2.9 million and $1.8 million, respectively, in LOCs outstanding related to the gas transportation and storage agreements. The characteristics and details of these agreements remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2024, with no material updates during the interim period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Electric Interconnection Agreement*** 

The Company has an interconnection agreement with ERCOT to connect the Generation Facilities to the electrical power grid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Long Term Service Agreement*** 

Johnson and Siemens Energy, Inc. (Siemens) are parties to a long-term service agreement (Johnson LTSA) which provides outage procedures, program management services, and other maintenance services and parts for the covered units. The Johnson LTSA expires on December 31, 2040. The quarterly variable payments under the Johnson LTSA are deferred as prepaid expenses until the planned outage maintenance occurs, at which time, the cost of the planned maintenance outage will be expensed. The Company also pays an annual fixed fee subject to escalation, which is expensed.

For the three month and six month period ended June 30, 2025, the Company made prepayments under the Johnson LTSA of $146 thousand and $574 thousand, respectively. For the three month and six month period ended June 30, 2024, the Company made prepayments under the Johnson LTSA of $389 thousand and $508 thousand, respectively. For both the three month and six month period ended June 30, 2025, the Company expensed $2.6 million related to the Johnson LTSA, recorded under Operating and maintenance expenses in the accompanying condensed consolidated statements of operations. For the three month and six month period ended June 30, 2024, the Company expensed $44 thousand and $89 thousand, respectively, related to the Johnson LTSA. The cumulative payments made have exceeded the cumulative costs and accordingly the net excess is reflected as a component of Prepaid expenses in the accompanying consolidated balance sheets as of June 30, 2025 and December 31, 2024, in the amounts of $146 thousand and $2.1 million, respectively.

9 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

Jack and GE International (GE) are parties to a long-term service agreement (Jack LTSA) which provides certain maintenance services and parts for the covered units. The Jack LTSA expires on December 31, 2033. The quarterly variable payments under the Jack LTSA are deferred as prepaid expenses until the planned outage maintenance occurs, at which time, the cost of the planned maintenance outage will be expensed. The Company also pays an annual fixed fee subject to escalation, which is expensed.

For the three month and six month period ended June 30, 2025, the Company made prepayments under the Jack LTSA of $983 thousand and $1.9 million, respectively. For the three month and six month period ended June 30, 2024, the Company made prepayments under the Jack LTSA of $966 thousand and $2.0 million, respectively. For the three month and six month period ended June 30, 2025, the Company expensed $157 thousand and $315 thousand, respectively, related to the Jack LTSA, recorded under Operating and maintenance expenses in the accompanying condensed consolidated statements of operations. For the three month and six month period ended June 30, 2024, the Company expensed $157 thousand and $315 thousand, respectively, related to the Jack LTSA. The cumulative payments made have exceeded the cumulative costs and accordingly the net excess is reflected as a component of Prepaid expenses in the accompanying consolidated balance sheets as of June 30, 2025 and December 31, 2024, in the amounts of $8.2 million and $6.3 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5)** **Financing Arrangements** 

The company's financing arrangements consisted of the following as of June 30, 2025 (in thousands):

---

| | |
|:---|:---|
| **Loan agreement** | **June 30, 2025** |
| Senior secured notes | $650000 |
| Revolving facility | 6500 |
| Total debt principal | 656500 |
| &nbsp;&nbsp;&nbsp;Less: unamortized debt issuance and deferred financing costs | (8766) |
| **Total debt** | **647734** |
| &nbsp;&nbsp;&nbsp;Less: current portion | (9222) |
| &nbsp;&nbsp;&nbsp;Less: Short term debt | (6500) |
| **Long term debt** | **632012** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Credit Agreement*** 

On June 29, 2023 the Company executed a credit agreement with a group of lenders (the Credit Agreement). The Credit Agreement consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a $390 million term facility (Term Loan)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) a $35 million revolving facility (Revolving
 Facility)

10 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) a $45 million Letter
 of Credit facility (LC Facility)

On October 3, 2024, the Company received a capital contribution of $389.1 million from Thunder. This capital contribution was specifically designated for and utilized in the repayment of the Company's outstanding Term Loan, at which time the Credit Agreement was terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***New Credit Agreement*** 

On June 9, 2025, the Company entered into a credit agreement (the New Credit Agreement) with a group of lenders. The New Credit Agreement consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a $650 million term loan (New Term
 Loan),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a $50 revolving facility (New Revolving
 Facility),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a $50 million Letter of Credit facility
 (New LC Facility)

The interest rates in effect as of June 30, 2025 for the New Revolving Facility was 7.5%.

The amortization of the debt issuance and deferred financing costs is reflected as a component of interest expense, net on the accompanying condensed consolidated statements of operations. For both the three and six months ended June 30, 2025, amortization of these costs totaled $245 thousand.

As of June 30, 2025, a LOC was issued in the amount of $30.1 million. This LOC satisfies the debt service reserve requirement.

As of June 30, 2025, the Company had $43.5 million available under the New Revolving Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(6)** **Derivative Instruments and Hedging Activities** 

The Company enters into interest rate swaps to reduce its exposure to market risks from changing interest rates and commodity derivatives to reduce its exposure to market fluctuations of energy and natural gas prices. The Company is a party to the following derivative instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Commodity Derivatives*** 

The Company entered into various energy related derivatives to manage the commodity price risk associated with power revenues and fuel costs, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Power Swap Contracts which require payments
 to or from counterparties based upon the difference between the contract and the market price
 for a predetermined notional amount. These contracts are used to manage commodity price risk
 associated with changes in the ERCOT power prices.

11 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Gas Swap Contracts which require payments
 to or from counterparties based upon the difference between the contract and the market price
 for a predetermined notional amount. These contracts are used to manage commodity price risk
 at multiple delivery points associated with changes in fuel prices.

***Fair Value Measurements***

The following tables set forth by level within the fair value hierarchy the assets and liabilities of the Company that were accounted for at fair value on a recurring basis as of June 30, 2025 and June 30, 2024. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The three levels of the fair value hierarchy defined by ASC 820 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· Level
 1 – Quoted prices are available in active markets for identical assets or liabilities
 as of the reporting date. Active markets are those in which transactions for the asset or
 liability occur in sufficient frequency and volume to provide pricing information on an ongoing
 basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 2 – Pricing inputs are other than quoted prices in active markets included in Level
 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes
 those financial instruments that are valued using models or other valuation methodologies.
 These models are primarily industry-standard models that consider various assumptions, including
 quoted forward prices for commodities, time value, volatility factors, and current market
 and agreement prices for the underlying instruments, as well as other relevant economic measures.
 Substantially all of these assumptions are observable in the marketplace throughout the full
 term of the instrument, can be derived from observable data, or are supported by observable
 levels at which transactions are executed in the marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 3 – Pricing inputs include significant inputs that are generally less observable from
 objective sources. These inputs may be used with internally developed methodologies that
 result in management's best estimate of fair value.

The following table presents assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets and their level within the fair value hierarchy as of June 30, 2025 and December 31, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of June 30, 2025** | **Fair value as of June 30, 2025** | **Fair value as of June 30, 2025** | **Fair value as of June 30, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity Derivatives- assets | $- | 120635 |  | 120635 |
| Commodity Derivatives- liabilities | - | (111521) |  | (111521) |
| **Derivative Instruments assets (net)** | $- | 9114 |  | 9114 |

---

12 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Commodity Derivatives- assets | $- | 72057 |  | 72057 |
| Commodity Derivatives- liabilities | - | (50406) |  | (50406) |
| **Derivative Instruments assets (net)** | $- | 21651 |  | 21651 |

---

For the period ended June 30, 2025 and for the period ended December 31, 2024, the Company did not have any transfers between Levels 1, 2, or 3.

The following tables present information concerning the impact of derivative instruments on the accompanying condensed consolidated balance sheet and condensed consolidated statement of operations.

***Impact of Derivative Instruments on the Accompanying Condensed Consolidated Balance Sheet***

The following table presents the classifications and fair value of derivative instruments on the accompanying condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Derivatives not designated as hedging activities:** | **Derivatives not designated as hedging activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets from risk-management activities - short term | $65673 | 44254 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets from risk-management activities - long term | 54962 | 27803 |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities from risk-management activities - short term | (65375) | (35611) |
| &nbsp;&nbsp;&nbsp;Commodity derivatives | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities from risk-management activities - long term | (46146) | (14795) |
| Total derivatives not designated as hedging activities | Total derivatives not designated as hedging activities | 9114 | 21651 |
| **Total derivatives, net asset** |  | $9114 | 21651 |

---

***Impact of Derivative Instruments on the Accompanying Condensed Consolidated Statements of Operations***

The following table presents the classification and amount of the gains and losses on derivative instruments in the accompanying condensed consolidated statements of operations for the period ended June 30, 2025 and for the period ended June 30, 2024.

The impact of derivative instruments that have not been designated as hedging instruments (in thousands):

13 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in income on** | **Amount of gain (loss) in income on** |
| | | **derivatives** | **derivatives** |
| <br>**Instrument** | <br>**Location of gain (loss) recognized**<br>**in income on derivatives** | **Three-months ended**<br>**June 30, 2025** | **Six-months ended**<br>**June 30, 2025** |
| Derivatives not designated as hedges |  |  |  |
| Commodity derivatives - power | Gain on risk management activities | $76009 | 61639 |
| Commodity derivatives - gas | Loss on risk management activities | (22910) | (7609) |
| **Total net gain in income on derivatives** |  | $53099 | 54030 |

---

---

| | | | |
|:---|:---|:---|:---|
| | | **Amount of gain (loss) in income on** | **Amount of gain (loss) in income on** |
| | | **derivatives** | **derivatives** |
| <br>**Instrument** | <br>**Location of gain (loss) recognized**<br>**in income on derivatives** | **Three-months ended**<br>**June 30, 2024** | **Six-months ended**<br>**June 30, 2024** |
| Derivatives not designated as hedges |  |  |  |
| Commodity derivatives - power | Gain on risk management activities | $22896 | 56025 |
| Commodity derivatives - gas | Loss on risk management activities | (2697) | (10539) |
| Interest rate swap | Interest expense net | 14 | 1072 |
| **Total net gain in income on derivatives** |  | $20213 | 46558 |

---

14 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

***Offsetting of Derivative Assets and Liabilities***

The Company has not elected to present derivative assets and liabilities on the balance sheet by offsetting amounts that could be netted pursuant to agreements with the Company's counterparties.

The following tables present the gross and net derivative assets and liabilities and shows the effect if the offsetting amounts were shown net pursuant to agreements with the Company's counterparties on the accompanying condensed consolidated balance sheets for the period ended June 30, 2025 and for the period ended December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Gross amounts**<br>**not offset in**<br>**financial**<br>**statements as of**<br>**June 30, 2025** |<br>**Offsetting amounts**<br>**of derivative**<br>**instruments as of**<br>**June 30, 2025** |<br>**Net amount**<br>**after offset as of**<br>**June 30, 2025** |
| Assets from risk management activities | $120635 | (61026) | 59608 |
| Liabilities from risk management activities | (111521) | 61026 | (50495) |
|  | $9114 | - | 9114 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Gross amounts**<br>**not offset in**<br>**financial**<br>**statements as of**<br>**December 31, 2024** | <br>**Offsetting amounts**<br>**of derivative**<br>**instruments as of**<br>**December 31, 2024** | <br>**Net amount**<br>**after offset as of**<br>**December 31, 2024** |
| Assets from risk management activities | $72057 | (48099) | 23958 |
| Liabilities from risk management activities | (50406) | 48099 | (2307) |
|  | $21651 | - | 21651 |

---

15 (Continued)

**LINEBACKER POWER FUNDING, LLC** 

(A Delaware Limited Liability Company)

**AND SUBSIDIARIES** 

Condensed Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2025 and June 30, 2024

(Unaudited)

(In thousands)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(7)** **Related Party Transactions** 

The Company receives certain overhead administrative and management services from an affiliate. These costs are not allocated to the Company. All other costs related to the operation and management of the Generation Facilities are reflected in the accompanying condensed consolidated statements of operations.

Certain derivative instruments are entered into by an affiliate on behalf of the Company and have been recorded in the condensed consolidated financial statements of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(8)** **Member's Equity** 

Profits, losses, and distributions are allocated in accordance with the provisions of the Company's Limited Liability Company agreement. For the three months and six months period ended June 30, 2025, the Company made distributions in the amounts of $641.3 million and $693.9 million respectively. For the three months and six months period ended June 30, 2024, the Company made distributions in the amounts of $0 million and $191.2 million respectively, consisting of $0 million and $182.3 million respectively from the financing of the Credit Agreement and $0 million and $8.9 million from excess cash flows from operations. For the three and six months ended June 30, 2025, the Company received contributions of $5.0 million and $11.5 million, respectively. For the three and six months ended June 30, 2024, the Company received contributions of $0 thousand and $825 thousand respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(9)** **Commitments and Contingencies** 

The Company enters into contracts in the ordinary course of business that contain various representations, warranties, indemnifications, and guarantees. Some of the agreements contain indemnities that cover the other party's negligence or limit the other party's liability with respect to third-party claims, in which event the Company effectively indemnifies the other party. While there is the possibility of a loss related to such representations, warranties, indemnifications, and guarantees in the contracts and such loss could be significant, the Company considers the probability of loss to be remote.

The Company, from time to time, is a party to certain other claims arising in the ordinary course of business. The Company is of the opinion that final disposition of these claims will not have a material adverse effect on the Company's financial position, results of operations, or cash flows.

## Exhibit 99.10

**Exhibit 99.10**

---

| |
|:---|
| **CCS POWER FINANCE CO, LLC** |
| CONSOLIDATED FINANCIAL STATEMENTS |
| ***As of and for the Years Ended December 31, 2024 and December 31, 2023*** |
| ***With Independent Auditors' Report Therein*** |

---

**CCS POWER FINANCE CO, LLC**<br> **TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **INDEPENDENT AUDITORS' REPORT** | 2-3 |
| **CONSOLIDATED FINANCIAL STATEMENTS** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheets | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Operations | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Changes in Members' Equity | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Cash Flows | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes to the Consolidated Financial Statements | 8-23 |

---

---

| | |
|:---|:---|
| ![](tm2526385d1_ex99-10img001.jpg) |  |
|  | KPMG LLP |
|  | Suite 4000 |
|  | 1735 Market Street |
|  | Philadelphia, PA 19103-7501 |

---

**Independent Auditors' Report**

The Members and Board of Directors<br> CCS Power Finance Co, LLC:

*Opinion*

We have audited the consolidated financial statements of CCS Power Finance Co, LLC and its subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in members' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.

*Basis for Opinion*

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

*Emphasis of Matter*

As discussed in Note 1b to the consolidated financial statements, the Company has elected to change its method of accounting for interest rate swaps to remove the application of the simplified hedge accounting alternative available for private companies. The Company also elected to change its method of accounting for goodwill to remove the application of the amortization of goodwill on a straight-line basis over a 10-year life for private companies. Consequently, the Company's consolidated financial statements for 2024 and 2023 have been revised. Our opinion is not modified with respect to this matter.

*Responsibilities of Management for the Consolidated Financial Statements*

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the consolidated financial statements are issued.

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

![](tm2526385d1_ex99-10img002.jpg)

*Auditors' Responsibilities for the Audit of the Consolidated Financial Statements*

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

● Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

![](tm2526385d1_ex99-10img004.jpg)

Philadelphia, Pennsylvania

May 9, 2025, except for modifications disclosed in Note 1b and Note 14, for which the date is August 14, 2025.

**CCS POWER FINANCE CO, LLC**

YEARS ENDED CONSOLIDATED BALANCE SHEETS<br> *(IN THOUSANDS)*

 

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $20897 | $34359 |
| &nbsp;&nbsp;&nbsp;Financial assurance - short term | 200 | 986 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable, net | 1928 | 8451 |
| &nbsp;&nbsp;&nbsp;Unbilled accounts receivable | 12079 | 12174 |
| &nbsp;&nbsp;&nbsp;Risk management asset - short term |  | 188 |
| &nbsp;&nbsp;&nbsp;Other current assets | 3377 | 4020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **38481** | **60178** |
| Financial assurance - long term | 147 | 327 |
| Property and equipment, net | 12547 | 12103 |
| Intangible assets, net | 119078 | 136744 |
| Goodwill | 126746 | 126746 |
| Lease Right of Use Asset | 1886 | 2585 |
| Other assets | 1065 | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | **299950** | **338772** |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | 2780 | 2478 |
| &nbsp;&nbsp;&nbsp;Accrued customer payments | 48033 | 49895 |
| &nbsp;&nbsp;&nbsp;Accrued payroll, benefits, and other | 5957 | 8740 |
| &nbsp;&nbsp;&nbsp;Debt - short term | 16413 | 6156 |
| &nbsp;&nbsp;&nbsp;Lease Liability - short term | 550 | 752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **73733** | **68021** |
| Debt - long term | 85494 | 90795 |
| Debt due to related parties | 16500 | 10560 |
| Accrued liabilities due to related parties | 1773 | 252 |
| Deferred tax liabilities | 18407 | 19677 |
| Lease Liability - long term | 1705 | 2254 |
| Other liabilities | 208 | 802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **197820** | **192361** |
| Members' equity | 102130 | 146411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total members' equity** | **102130** | **146411** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and members' equity** | $**299950** | $**338772** |

---

The accompanying notes are an integral part of these consolidated financial statements. 4

**CCS POWER FINANCE CO, LLC** 

CONSOLIDATED STATEMENTS OF OPERATIONS

*(IN THOUSANDS)*

---

| | | |
|:---|:---|:---|
| **For the years ended December 31,** | **2024** | **2023** |
| Revenue | $132460 | $183067 |
| Cost of revenue | 86590 | 110041 |
| &nbsp;&nbsp;&nbsp;**Gross profit** | **45870** | **73026** |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Compensation | 34989 | 33098 |
| &nbsp;&nbsp;&nbsp;General & administrative | 12908 | 14239 |
| &nbsp;&nbsp;&nbsp;Amortization & depreciation | 22121 | 19238 |
| &nbsp;&nbsp;&nbsp;Related party advisory fees | 10 | 227 |
| &nbsp;&nbsp;&nbsp;Transaction & other expenses | 3023 | 1702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss) | (27181) | 4522 |
| &nbsp;&nbsp;&nbsp;Interest expense | 12664 | 12342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (39845) | (7820) |
| &nbsp;&nbsp;&nbsp;Provision for income tax expense (benefit) | (1411) | 290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loss** | $**(38434)** | $**(8110)** |

---

The accompanying notes are an integral part of these consolidated financial statements. 5

**CCS POWER FINANCE CO, LLC** 

CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' EQUITY

*(IN THOUSANDS)*

---

| | |
|:---|:---|
|  | **Total Members' <br> Equity** |
| Balance at December 31, 2022 | $168220 |
| Distributions | (13699) |
| Net loss | (8110) |
| **Balance at December 31, 2023** | $**146411** |
| Distributions | (5847) |
| Net loss | (38434) |
| **Balance at December 31, 2024** | $**102130** |

---

The accompanying notes are an integral part of these consolidated financial statements. 6

**CCS POWER FINANCE CO, LLC** 

CONSOLIDATED STATEMENTS OF CASH FLOWS

*(IN THOUSANDS)*

---

| | | |
|:---|:---|:---|
| **For the years ended December 31,** | **2024** | **2023** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(38434) | $(8110) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization & depreciation | 22121 | 19238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating lease right-of-use assets | 699 | 574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 1112 | 1112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | (1270) | (3510) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets & liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable, net and unbilled accounts receivable | 6616 | 29768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 833 | 614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assurance short and long term | 966 | (937) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (976) | 158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | 302 | (3380) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued customer payments | (1862) | (19255) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll, benefits, and other | (2783) | 695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | (202) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities due to related parties | 1521 | 252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (1143) | (631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) operating activities** | **(12500)** | **16603** |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (4899) | (5919) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) investing activities** | **(4899)** | **(5919)** |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of related party debt | 5940 | 10560 |
| &nbsp;&nbsp;&nbsp;Borrowing under revolving credit facility | 10000 |  |
| &nbsp;&nbsp;&nbsp;Principal repayment | (6156) | (513) |
| &nbsp;&nbsp;&nbsp;Distributions | (5847) | (13699) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) financing activities** | **3937** | **(3652)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in cash and cash equivalents | (13462) | 7032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at beginning of period | 34359 | 27327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash and cash equivalents at end of period** | $**20897** | $**34359** |
| **<u>Supplemental disclosures of cash flow information</u>** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | 681 | 4488 |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | 11171 | 11497 |

---

The accompanying notes are an integral part of these consolidated financial statements. 7

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

**Note 1—Description of Business and basis of consolidation**

*Description of Business* – Enerwise Global Technologies, LLC d/b/a CPower (hereinafter "we", "us", "our", "Enerwise") is a Delaware Limited Liability Corporation. Enerwise provides intelligent energy management solutions to utilities, independent system operators ("ISOs") and regional transmission organizations ("RTO") that manage programs and/or auctions in which commercial and industrial ("C&I") customers participate. The Enerwise solutions are delivered through the management of C&I megawatts in open and regulated markets.

On December 21, 2018, Enerwise and its parent company, CPower Holdings, LLC entered into a Stock Purchase Agreement (the "Acquisition Agreement") with CPower Acquisition Company, LLC ("CPower A") whereby all outstanding shares were acquired by CPower A, which represented a transfer of ownership.

Effective January 31, 2019 Enerwise Global Technologies d/b/a CPower converted from a Delaware Corporation to a Delaware Limited Liability Company.

On February 1, 2019, CPower A transferred 98% common ownership interest of Enerwise to CCS Power Finance Co, LLC ("Power Finance") which constituted a common control transaction under Accounting Standards Codification (ASC) 805 *Business Combinations*, as the two entities are under the control of the same parent. The transfer of ownership was recorded at historical cost and the consolidated financial statements include Enerwise activity commencing on January 1, 2019.

*Principles of Consolidation* – The consolidated financial statements include the accounts of CCS Power Finance Co., LLC, CCS Acquisition Holdco, LLC, CPower Acquisition Company, LLC and Enerwise Global Technologies, LLC d/b/a CPower (collectively referred to as the "Company") and have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Intercompany transactions and balances are eliminated upon consolidation.

**Note 1(b) – Changes in Accounting Principle**

The Company changed its method of accounting for interest rate swap agreements to remove the application of the simplified hedge accounting alternative available for private companies. These consolidated financial statements have been revised to remove the application of hedge accounting resulting in changes in the fair value of interest rate swaps now being recognized in earnings. This change has been applied retrospectively to all periods presented, with the impact to periods prior to 2023 being recognized as a decrease to accumulated other comprehensive loss and a corresponding increase to retained earnings, both of which are under members' equity in the consolidated balance sheets.

The Company changed its method of accounting for goodwill to remove the application of the amortization of goodwill on a straight-line basis over a 10-year life for private companies. These consolidated financial statements have been revised to remove the application of the amortization of goodwill on a straight-line basis over a 10-year life. This change has been applied retrospectively to all periods presented, with the impact to periods prior to 2023 being recognized as a decrease to amortization expense and a corresponding increase to members' equity.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

**Note 1(b) – Changes in Accounting Principle (continued)**

The effects of this change in accounting principle on the Company's consolidated financial statements as of and for the year ended December 31, 2023 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | 2023 Previously | | 2023 Effect of |
| Financial Statement Line Item | Reported | 2023 As Revised | Change |
| **Consolidated Balance Sheet** |  |  |  |
| Goodwill | $62998 | $126746 | $63748 |
| Members' equity | 82663 | 146411 | 63748 |
| **Consolidated Statement of Operations** |  |  |  |
| Amortization & depreciation | 31912 | 19238 | (12674) |
| Interest expense | 11822 | 12342 | 520 |
| Net Loss | (20264) | (8110) | 12154 |
| **Consolidated Statement of Comprehensive Loss** |  |  |  |
| Net Loss | (20264) | N/A | N/A |
| Unrealized (loss) gain on derivative instruments | (520) | N/A | N/A |
| Comprehensive loss | (20784) | N/A | N/A |
| **Consolidated Statement of Changes in Members' Equity** |  |  |  |
| Net Loss | (20264) | (8110) | 12154 |
| Other comprehensive loss | (520) |  | 520 |
| Members' equity | 82663 | 146411 | 63748 |
| **Consolidated Statement of Cash Flows** |  |  |  |
| Net Loss | (20264) | (8110) | 12154 |
| Amortization & depreciation | 31912 | 19238 | (12674) |
| Changes in Other current assets | 234 | 614 | 380 |
| Changes in Other assets | 18 | 158 | 140 |

---

The effects of this change in accounting principle on the Company's consolidated financial statements as of and for the year ended December 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | 2024 Previously | | 2024 Effect of |
| Financial Statement Line Item | Reported | 2024 As Revised | Change |
| **Consolidated Balance Sheet** |  |  |  |
| Goodwill | $50324 | $126746 | $76422 |
| Members' equity | 25707 | 102130 | 76423 |
| **Consolidated Statement of Operations** |  |  |  |
| Amortization & depreciation | 34796 | 22121 | (12675) |
| Interest expense | 12476 | 12664 | 188 |
| Net Loss | (50921) | (38434) | 12487 |
| **Consolidated Statement of Comprehensive Loss** |  |  |  |
| Net Loss | (50921) | N/A | N/A |
| Unrealized (loss) gain on derivative instruments | (188) | N/A | N/A |
| Comprehensive loss | (51109) | N/A | N/A |
| **Consolidated Statement of Changes in Members' Equity** |  |  |  |
| Net Loss | (50921) | (38434) | 12487 |
| Other comprehensive loss | (188) |  | 188 |
| Members' equity | 25707 | 102130 | 76423 |
| **Consolidated Statement of Cash Flows** |  |  |  |
| Net Loss | (50921) | (38434) | 12487 |
| Amortization & depreciation | 34796 | 22121 | (12675) |
| Changes in Other current assets | 645 | 833 | 188 |

---

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 2—Significant accounting policies**

*Use of estimates* – The preparation of consolidated financial statements in conformity with U.S. GAAP, which requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates include the valuation of intangible assets resulting from acquisitions, provisions required for allowance for doubtful accounts, non-collectible accounts receivable, revenues, accrued customer payments, and tax reserves.

The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Changes in estimates are recorded in the period in which they become known. Actual results could differ materially from those estimates.

*Cash and cash equivalents* – The Company considers cash equivalents to be all highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents consist of cash deposited in banks.

*Financial assurance -* The Company maintains funds in conjunction with open markets to collateralize the performance of its positions. The balances are deposited directly with the ISOs, RTOs, utilities, their designated agent or through letters of credit. These amounts have been classified on the consolidated balance sheet as short term or long term based on the underlying restriction.

*Allowance for doubtful accounts* – The Company reviews the outstanding accounts receivable on a monthly basis, as well as uncollectable account adjustments experienced in the past, and establishes an allowance for doubtful accounts when necessary. Account balances are reduced against the allowance for doubtful accounts when the Company determines it is probable the receivable will not be recovered.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 2—Significant accounting policies (continued)**

*Property and equipment, net* – Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the depreciable assets. Leasehold improvements are depreciated over the shorter of the lease term or useful life. Improvements are capitalized while repairs and maintenance are expensed as incurred. Costs associated with internally developed software are recorded in Work in Progress subcategory and reclassified to Software subcategory once ready for its intended use. Balances of major classes of property and equipment are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Estimated <br> Useful Life** | **2024** | **2023** |
| **Property and equipment** |  |  |  |
| &nbsp;&nbsp;&nbsp;Equipment | 3 | $504 | $480 |
| &nbsp;&nbsp;&nbsp;Software | 3 | 18430 | 15921 |
| &nbsp;&nbsp;&nbsp;Furniture & Fixtures | 5 | 2 | 2 |
| &nbsp;&nbsp;&nbsp;Leasehold Improvements | 3-10 | 205 | 126 |
| &nbsp;&nbsp;&nbsp;Work in Progress | N/A | 4282 | 1994 |
| **Total** |  | 23423 | 18523 |
| **Less accumulated depreciation** |  | (10876) | (6421) |
| **Property and equipment, net** |  | $12547 | $12103 |

---

The Company recorded $4,455 thousand and $1,572 thousand of depreciation expense for the years ended December 31, 2024 and December 31, 2023, respectively. These amounts are included in amortization and depreciation in the Consolidated Statements of Operations.

*Risks and uncertainties* – The Company's performance is subject to a variety of factors, including the economy, the regulatory environment, and the electricity markets. As with any operations within the power and utilities industry, the Company is subject to risk, including customer performance, market and regulatory compliance, operator error, or catastrophic events such as fires, earthquakes, floods, extreme weather, explosions, pandemics or other similar occurrences affecting a power supply and demand. The occurrence of any of these events could significantly impact the revenues generated or significantly increase the expenses incurred.

*Fair value of financial instruments* – The Company uses financial instruments in the normal course of business, including Cash and cash equivalents, Financial assurance, Trade accounts receivable, Unbilled accounts receivable, Trade accounts payable, Accrued customer payments, and Accrued payroll, benefits and other. The carrying values of these financial instruments approximate their respective fair values at the Consolidated Balance Sheet date due to the short-term maturity of these assets and liabilities.

ASC 820, *Fair Value Measurements and Disclosures* describe three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 2—Significant accounting policies (continued)**

Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and agreement prices for the underlying instruments, as well as other relevant economic measures. Substantially all assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

*Derivative Instruments*

The Company's debt obligations are exposed to interest rate changes and we may seek to control a portion of these risks using derivative instruments. We do not enter speculative or leveraged transactions, nor do we hold or issue derivatives for trading purposes. We generally intend to hold the derivatives until maturity.

The Company has elected to not apply hedge accounting under ASC Topic 815, Derivatives and Hedging, to report its derivative instruments. The interest rate swap contract is recognized as either an asset or liability, depending on the derivative's fair value, where gains and losses associated with the change in value are recognized directly as a component of interest expense in the accompanying consolidated statements of operations.

In May 2019, the Company entered into, and designated as cash flow hedging, two pay-fixed, receive-floating amortizing interest rate swaps with notional amounts of $30,000 thousand each, totaling $60,000 thousand. These notional amounts matched the corresponding principal of the borrowings of which these swaps were effectively hedging the interest payments. As such, the notional values amortized quarterly based on the terms of the agreements to match the principal borrowings as they are repaid. On April 12, 2022, the Company terminated one of its interest rate swaps. Effective, July 31, 2023, the terms and conditions of the remaining swap were amended to fix the floating interest rate on the term loan attributable to changes in the USD -SOFR swap rate, transitioning from the EUR-LIBOR swap rate. At December 2023, the Company's remaining interest rate swap had a notional amount of $16,850 thousand, respectively, with a fixed interest rate of 1.915%. That remaining swap matured on April 30, 2024. Refer to Note 9—Borrowings and credit agreements, for further information regarding the underlying borrowings. During the years ended December 31, 2024 and December 31, 2023, the Company received $194 thousand and $621 thousand, respectively, from settlement of the swap with the counterparties.

Such instruments represent a level 2 fair value on the fair value hierarchy. With its maturity in April 2024, the reported settlement value of the derivative was $0 as of December 31, 2024. The reported settlement value of the derivative, which is classified as Risk management asset – short term on the Consolidated Balance Sheet was $188 thousand as of December 31, 2023.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 2—Significant accounting policies (continued)**

The Company's interest rate swap agreement exposed us to credit risk to the extent that the counterparty possibly failed to perform its contractual obligation. The amount of the credit risk exposure was equal to the settlement value of the derivative when it was in a gain position. As of December 31, 2023, the settlement value was in a gain position until swap maturity in April 2024. The counterparty credit risk was currently not considered in the valuation of the derivative instrument as the simplified hedge accounting practical expedient does not require the assessment of counterparty risk; however, the counterparty was with an Aa2 credit rated institution based on the global rating agency of Moody's Investors Service.

*Revenue recognition and cost of revenue* – The Company derives the majority of its revenues from participation in utility, RTO, or ISO programs, which require the Company to provide electric capacity through demand reduction when a utility, RTO, or ISO calls an event to curtail electrical usage. Revenues are earned based on the Company's ability to deliver capacity. In order to provide capacity, the Company manages a portfolio of C&I end users' electric loads. Capacity amounts are verified through the results of actual events or tests, which take place throughout the calendar year. Cash payments are received from RTOs, ISOs, and utilities for participation throughout the year.

Within certain markets, the Company may utilize the incremental auctions held prior to the commencement of the delivery year or may enter into bilateral agreements with other market demand or supply-side providers to fulfill a portion of the megawatts previously awarded ("Wholesale Capacity"). If the Company is released from its obligations to fulfill commitment through an auction or a bilateral agreement, the Company recognizes revenue net of related cost of revenue over the delivery year.

The Company recognizes revenue in accordance with ASU 2014-09, *Revenue from Contracts with Customers*, (referred collectively herein as "Topic 606"). The Company applies the as-invoiced practical expedient to recognize revenues, except in circumstances where the invoiced amount does not represent the value transferred to the customer. Revenues derived from Wholesale Capacity are presented net of costs.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 2—Significant accounting policies (continued)**

Disaggregated revenue by type for the years ended December 31, 2024 and December 31, 2023 was as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Demand Response | $137199 | $182415 |
| Wholesale Capacity | (4739) | 652 |
| &nbsp;&nbsp;&nbsp;**Total Revenues** | $**132460** | $**183067** |

---

*Impairment of long-lived assets* – The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying amount should be assessed by comparing their carrying value to the undiscounted estimated future net operating cash flows expected to be derived from such assets. If such evaluation indicates a potential impairment, a discounted cash flow analysis is used to measure fair value in determining the amount of these assets that should be written off.

Goodwill is tested for impairment annually, during the fourth quarter, and when events or changes in circumstances indicate that the carrying value may not be recoverable. The Company has identified one reporting unit for the purpose of goodwill impairment testing. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying value. If, based on the qualitative assessment, it is determined that it is more likely than not that the fair value of its reporting unit is less than its carrying value, a quantitative impairment test is performed. The quantitative impairment test involves comparing the fair value of the reporting unit with its carrying value. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized equal to the difference between its carrying value and fair value.

During the years ended December 31, 2024 and December 31, 2023, no impairment charges were recognized.

*Income taxes -* Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements' carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that the tax benefits will not be realized. Management has evaluated all other tax positions that could have a significant effect on the consolidated financial statements and determined the Company has no uncertain income tax positions at December 31, 2024. Accordingly, no related penalties or interest were recognized in the consolidated financial statements.

*Recent Accounting Pronouncements*

In June 2016, FASB issued ASU 2016-13, *Financial Instruments—Credit Losses (ASU 2016-13)*. ASU 2016-13 introduces the current expected credit loss model, which requires an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under ASU 2016-13, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects the entity's current estimate of credit losses expected to be incurred over the life of the financial instrument. In addition to ASU 2016-13, the FASB issued ASU 2019-04 which provides further clarification. ASU 2016-13 and related ASUs are effective for the Company for fiscal years beginning after December 15, 2022. The Company adopted ASU 2016-13 and related ASUs effective on January 1, 2023. The adoption of the aforementioned ASUs did not have a material impact on the Company's financial statements.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 2—Significant accounting policies (continued)**

In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR).

In addition to ASU 2020-04, the FASB issued ASU 2021-01 which provides further clarification, and ASU 2022-06, which defers the effective date of adoption. ASU 2020-04 was subject to election as of March 20, 2020 and can be elected for annual periods through December 31, 2024. The Company adopted ASU 2020-04 and related ASUs effective on January 1, 2023. The Company completed its evaluation of significant contracts under these ASUs. Certain reviewed contracts have been amended to apply a new reference rate. The adoption of ASU 2020-04 and related ASUs did not have a material impact on the Company's financial statements.

In December 2023, FASB issued ASU 2024-01, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires certain quantitative rate reconciliation disclosures for public entities. Additionally, this ASU requires all entities to disclose income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2025. The Company is currently evaluating the impact of the standard on the Company's consolidated financial statements.

**Note 3— Intangible Assets and Goodwill**

The Company's intangible assets, as of December 31, 2024 and December 31, 2023, consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Estimated Useful <br> Life (in Years)** | **2024** | **2023** |
| Customer and Partner Relationships | 12 | $174990 | $174990 |
| Trade Name | 20 | 25000 | 25000 |
| Developed Technology | 12 | 22000 | 22000 |
| &nbsp;&nbsp;&nbsp;Total Intangibles |  | 221990 | 221990 |
| Accumulated Amortization |  | (102912) | (85246) |
| **Intangibles, net** |  | $**119078** | $**136744** |
| **Goodwill** |  | $126746 | $126746 |

---

The Company amortizes intangible assets using the straight-line method and reviews for impairment if it determines there was a triggering event. The Company recorded $17,666 thousand of intangible amortization expense for each year ended December 31, 2024 and December 31, 2023. These amounts are included in Amortization and depreciation in the Consolidated Statements of Operations. Estimated aggregate intangible amortization expense for each of the next five years is $17,666 thousand.

Goodwill is not amortized but is tested for impairment annually, during the fourth quarter, and when events or changes in circumstances indicate that the carrying value may not be recoverable.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 4—Accounts receivable, net**

Trade accounts receivable, net of the allowance for doubtful accounts of $0 thousand, as of December 31, 2024 and December 31, 2023 totaled $1,928 thousand and $8,451 thousand, respectively. The balances represent revenues earned and invoiced or with a right to invoice. The balances primarily consist of amounts owed to the Company from the Utility, ISO or RTO.

Unbilled accounts receivable as of December 31, 2024 and December 31, 2023 totaled $12,079 and $12,174 thousand, respectively. Unbilled accounts receivable represents amounts that the Company will invoice pursuant to the Company's future billings for services rendered though the balance sheet date.

**Note 5—Income taxes**

The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss carryforwards.

Effective January 31, 2019 Enerwise Global Technologies d/b/a CPower converted from a Delaware Corporation to a Delaware Limited Liability Company, taxed as a partnership and considered a pass-through entity for tax purposes.

Under ASC Topic 740, Enerwise Global Technologies, LLC recognized the effect of the change in tax status on the net deferred tax assets and liabilities as of January 31, 2019. As a result, Enerwise's parent company CPower Acquisition Company, LLC, which is taxed as a C Corporation, recognized deferred tax assets and liabilities from its interest in Enerwise Global Technologies, LLC and its assumption of certain of its tax attributes. CCS Power Finance Co, LLC is a disregarded entity for tax purposes. The provision for income taxes reflects the activity of its subsidiaries, as described in Note 1, Description of Business and Basis of Consolidation.

The income tax provision for the years ended December 31, 2024 and 2023, consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Current: |  |  |
| &nbsp;&nbsp;&nbsp;Federal expense | $36 | $3209 |
| &nbsp;&nbsp;&nbsp;State and local expense | (176) | 591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current tax expense | (140) | 3800 |
| Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;Federal benefit | (960) | (2978) |
| &nbsp;&nbsp;&nbsp;State and local expense | (310) | (532) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax expense | (1271) | (3510) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision for income taxes | $(1411) | $290 |

---

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 5—Income taxes (continued)**

Deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023, consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | $3635 | $1002 |
| &nbsp;&nbsp;&nbsp;163j interest | 1840 | $523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 5475 | 1525 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Investment basis difference | (23845) | (21198) |
| &nbsp;&nbsp;&nbsp;174 Expense | (16) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | (23861) | (21198) |
| Net deferred income tax liabilities | (18385) | (19673) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (21) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net deferred income tax liabilities, net of valuation allowance | $(18407) | $(19677) |

---

Deferred tax assets are required to be reduced by a valuation allowance if it is more likely than not that some portion or the entire deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. In making this determination, the Company considers all available positive and negative evidence affecting specific deferred tax assets, including the Company's past and anticipated future performance, the reversal of deferred tax liabilities, the length of carryback and carry-forward periods, and the implementation of tax planning strategies. Objective positive evidence is necessary to support a conclusion that a valuation allowance is not needed for all or a portion of deferred tax assets.

The Company has determined that based on all available evidence, $21 thousand and $4 thousand of valuation allowance is necessary for years ended December 31, 2024 and 2023, respectively. The Company's current income and forecast were used in making these determinations.

The Company has a deferred tax asset for the federal and state net operating loss carryforwards of $3,260 thousand and $375 thousand, respectively, as of December 31, 2024. The federal net operating loss deferred tax asset, $978 thousand will begin expiring in the year 2031 and $2,282 thousand has an indefinite carryforward subject to an annual limitation of 80% of Federal taxable income. The state net operating loss carryforward deferred asset begin expiring in the year 2032.

As of December 31, 2024, the Company had determined no liabilities for uncertain tax positions should be recorded. The Company's tax years ended December 31, 2021 through December 31, 2024 are subject to examination by the federal and state tax authorities.

**Note 6—Accrued customer payments and trade accounts payable**

Accrued customer payments as of December 31, 2024 and December 31, 2023 consisted of program participant payments. The Company pays participants within a specified period after receipt of payment from the utility, ISO or RTO.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

**Note 6—Accrued customer payments and trade accounts payable (continued)**

Trade accounts payable as of December 31, 2024 and December 31, 2023 consisted of vendor payables and trade accruals. The Company pays vendors within a specified period, typically within 30 days of invoice date.

**Note 7—Concentrations of credit risk**

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of Cash, Financial assurance, Trade accounts receivable, and Unbilled accounts receivable. Cash accounts are generally held at major financial institutions. Financial assurance, Trade accounts receivable, and Unbilled accounts receivable is concentrated within Utility, ISO, RTO. This industry concentration may impact the Company's overall exposure to credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic, industry or other conditions.

Financial assurance, Trade accounts receivable, and Unbilled accounts receivable are concentrated within entities engaged in the energy industry. These industry concentrations may impact the Company's overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic, industry or other conditions.

As of and for the years ended December 31, 2024 and December 31, 2023, three ISOs/RTOs/utilities accounted for 71% and 76% of revenues, and 59% and 42% of accounts receivable, respectively. Loss of revenues from any of these ISOs/RTOs/utilities would be material to the Company's operations.

**Note 8—Borrowings and credit agreements**

On May 17, 2019, the Company entered into a credit agreement with a group of lenders (Credit Agreement) which was funded on the same date. The Credit Agreement consists of the following:

a) a $120,000 thousand five-year term loan (the Term Loan); and

b) a $20,000 thousand five-year revolving credit facility (the Revolver) used to (i) finance working
capital and for general corporate purposes, (ii) support obligations under certain agreements and (iii) satisfy certain collateral
requirements with respect to maintenance and operations.

The interest rates on outstanding loans under the Credit Agreement were adjusted for each interest period based on an election made by the company between 1) adjusted Eurodollar rate plus a spread of 3.50% and 2) Alternate Base Rate. The Alternate Base Rate was defined as the greatest of the following plus a spread of 2.50%: (a) Base Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus <sup>1</sup>/<sub>2</sub> of 1.00%, and (c) Adjusted Eurodollar Rate in effect on such day plus 1.00%; Base Rate is the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus <sup>1</sup>/<sub>2</sub> of 1.00%, and (c) Adjusted Eurodollar Rate in effect on such day plus 1.00%. The elections and interest rates were determined on a monthly basis.

The Company entered into two interest rate swap agreements to hedge 50% of the outstanding principal amount of the Term Loan. The interest rate swap agreements provided for the Company to pay a fixed rate and receive a floating rate. The floating rate was based on a one-month LIBOR.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

**Note 8—Borrowings and credit agreements (continued)**

Mandatory amortization of the Term Loan ranged from 0.50% to 3.50% of the original outstanding principal amount, payable quarterly.

On April 14, 2022, the Company executed an amendment to the existing Credit Agreement ("Amended Credit Agreement") whereby maturity has been extended until December 31, 2026, and an additional $180,000 thousand of commitment under the Revolver is made available for issuance of letters of credit to provide credit support to contractual counterparties or other similar payment or performance assurance. Debt issuance costs totaled $4,458 thousand. One of the two interest rate swap agreements terminated effective April 12, 2022. The remaining interest rate swap matured on April 30, 2024.

The interest rates on outstanding loans under the Amended Credit Agreement are adjusted for each interest period based on an election made by the company, which historically has been on a monthly basis, between (a) ABR Borrowing defined as Base Rate plus 2.25% and (b) SOFR Borrowing defined as Adjusted Term SOFR plus 3.25%. ABR is defined as the greatest (a) the rate that the Administrative Agent announces from time to time as its prime or base commercial lending rate, as in effect from time to time or (b) the sum of (i) the Federal Funds Effective Rate in effect on such day plus (ii) 0.50% and (c) the sum of (i) the Adjusted Term SOFR for a one-month tenor in effect on such day plus (ii) 1.00%. Adjusted Term SOFR is defined as SOFR reference rate for a tenor comparable to the applicable interest period plus 0.07% for a one month election. The interest rate in effect at December 31, 2024 and December 31, 2023 for the Term Loan and Revolver is 7.89% and 8.67%, respectively. Interest is payable on the Term Loan and Revolver on a monthly basis.

As of December 31, 2024 and December 31, 2023, there were $94,131 thousand and $100,287 thousand outstanding under the Term Loan, respectively, and $10,000 thousand and $0 thousand outstanding under the Revolver. As of December 31, 2024 and December 2023, $48,975 thousand and $43,643 thousand, respectively, of the Revolver have been used to issue standby letters of credit to collateralize performance of the Company's positions with ISOs, RTOs, and utilities in which it operates. As such, the amount available under the Revolver is $141,025 and $156,357 as of December 31, 2024 and December 2023. See Note 11 – Commitments and Contingencies. The Credit Agreement contains certain financial, affirmative and negative covenants, the Company was in compliance with all covenants throughout 2024 and 2023.

At December 31, 2024 and December 31, 2023, the unamortized debt issuance and deferred financing costs totaled $2,224 thousand and $3,336 thousand, respectively. The amortization of these costs are reflected as a component of Interest expense, net on the accompanying statements of operations. For the years ended December 31, 2024 and December 31, 2023, amortization of such costs totaled $1,112 thousand each year.

As of December 31, 2024, minimum principal payments for the next two years for the Term Loan are as follows (in thousands) with final payment due upon maturity:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2026** |
| Minimum principal payments | $6413 | $87719 |

---

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

**Note 8—Borrowings and credit agreements (continued)**

Pursuant to the Amended Credit Agreement and driven by PJM base residual capacity prices for the 2023/2024 delivery year, the Company's parent CCS Intermediate Holdco, LLC, which is indirectly majority owned by CCS Class A Member, LLC a wholly owned subsidiary of LS Power Equity Partners IV, LP, is required to make an equity contribution totaling $16,500 thousand, in equal installments over a 12 month period commencing in June 2023. To fulfill this equity contribution obligation, CCS Intermediate Holdco, LLC entered into a related party subordinated loan with the Company. See Note 13 – Related Party Transactions. As of December 31, 2024 and December 31, 2023, CCS Intermediate Holdco, LLC, has made $5,940 thousand and $10,560 thousand, respectively, in total contributions to the Company.

**Note 9—Employee savings and retirement plan**

The Company has a defined contribution employee benefit plan qualifying under Section 401(k) of the Internal Revenue Code (the "Plan"). The Company may make discretionary matching contributions equal to 50% of employee contributions up to 6% and this match is payable on a monthly basis for the years ended December 31, 2024 and December 31, 2023.

The Company recorded $678 thousand and $557 thousand of matching contribution expense for years ended December 31, 2024 and December 31, 2023, respectively. These amounts are included in Compensation in the Consolidated Statements of Operations. Unpaid matching contributions totaled $153 thousand and $129 thousand as of December 31, 2024 and 2023, respectively. Such balances are included in Accrued Payroll, Benefits and Other in the accompanying Consolidated Balance Sheet.

**Note 10—Leases**

The Company has three non-cancellable operating leases for office space under various terms ranging from 2-10 years, effective from 2018, 2020, and 2023. These lease agreements provide for increasing rent over the lease term and contain renewal options. As of December 31, 2024, the Company does not intend to take renewal options on any of the leases.

Upon adoption of ASC 842 on January 1, 2022, the Company recognized an operating lease liability and related right-of-use (ROU) asset in the amount of $4,423 thousand and $3,956 thousand, respectively. The Company has made an election not to recognize ROU assets and lease liabilities in the consolidated balance sheets for its short-term leases, which have a lease term of 12 months or less.

ROU assets and operating lease liabilities are recognized at the present value of the future lease payments on the lease commencement date. For the initial measurement of lease liabilities, the Company uses the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the payments for the lease. The Company recognizes lease expense for all operating leases on a straight-line basis over the lease term.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*<br> **Note 10—Leases (continued)**

Lease payments are payable monthly. Lease payments under certain agreements may escalate over the lease term by a variable percentage. The Company has no leases which contain residual value guarantees provided by the Company.

---

| | | |
|:---|:---|:---|
|  | For the year ended <br> December 31, 2024 |  |
| **<u>Lease cost</u>** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease cost | $797 |  |
| &nbsp;&nbsp;&nbsp;Short-term lease cost | - |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lease cost | $797 |  |
| **<u>Other information:</u>** |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $850 |  |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $- |  |
| Weighted average remaining lease term (in years) | 3.92 | yrs |
| Weighted average discount rate | 3.75 | % |

---

As of December 31, 2024, annual payments based on the maturities of the Company's operating leases are expected to be as follows (in thousands):

---

| | |
|:---|:---|
| 2025 | $622 |
| 2026 | 593 |
| 2027 | 567 |
| 2028 | 590 |
| 2029 | 50 |
| Total operating lease payments | 2422 |
| &nbsp;&nbsp;&nbsp;Less: present value adjustment | (167) |
| Total operating lease liabilities | $2255 |

---

**Note 11—Commitments and contingencies**

*Guarantees* – The Company has guaranteed the electrical capacity it has committed to deliver pursuant to certain long-term contracts or open market biddings with ISOs, RTOs and utilities. Such guarantees may be secured by cash, letters of credit, performance bonds, or third-party guarantees.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

**Note 11—Commitments and contingencies (continued)**

*Off-balance sheet arrangements - Standby letters of credit*

In the ordinary course of business, the Company has entered into collateral arrangements in the form of standby letters of credit issued under its Revolver, in favor of the ISOs, RTOs and utilities with which it operates. At December 31, 2024 and December 31, 2023, these collateral arrangements totaled $48,975 thousand and $43,643 thousand, respectively.

**Note 12—Related party transactions**

The Company is indirectly majority owned by CCS Class A Member, LLC, which is a wholly owned subsidiary of LS Power Equity Partners IV, LP ("LS Power"). LS Power is a related party to an agreement with provisions for repayment of travel and certain administrative and legal expenses. Expenses related to these provisions for the years ended December 31, 2024 and December 31, 2023 totaled $10 thousand and $227 thousand, respectively, recorded in Related party advisory fees on the Consolidated Statement of Operations.

On June 30, 2023, the Company entered into a subordinated loan agreement with the Company's parent, CCS Intermediate Holdco, LLC (which is indirectly majority owned by CCS Class A Member, LLC), to receive equity contributions pursuant to the Amended Credit Agreement. See Note 9 – Borrowings and credit agreements. The principal amount of the subordinated loan totals $16,500 thousand. The note bears interest of 9.25% per annum and matures on March 31, 2027 with no required principal payments due until maturity. As of December 31, 2024, the subordinated loan payable balance consisted of $16,500 thousand principal outstanding plus $1,773 thousand in accrued interest. As of December 31, 2023, the subordinated loan payable balance consisted of $10,560 thousand principal outstanding plus $252 thousand in accrued interest.

Certain members of management have loans with an affiliate of the Company for the purchase of stock in that affiliate. The loans are full recourse loans and are not recorded in the Company's financial statements as the Company is not a party to those loans.

Members of management of Enerwise have been awarded incentive units in CCS Power Holdings, LLC. Such units vest upon change of control as defined by the incentive agreement, which as of December 31, 2024 is deemed remote, accordingly no fair value has been assigned to such units and thus no expense has been recorded for these units.

**Note 13 - Equity**

In accordance with the Power Finance LLC agreement, the Company is permitted to make distributions to its parent at the parent's discretion, while maintaining compliance with the Amended Credit Agreement. Distributions for the years ended December 31, 2024 and December 31, 2023 totaled $5,847 thousand and $13,699 thousand, respectively.

**CCS POWER FINANCE CO, LLC** 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

*DECEMBER 31, 2024 AND DECEMBER 31, 2023*

 

**Note 14—Subsequent events**

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through August 14, 2025, the date these consolidated financial statements were available to be issued. On May 7, 2025, the Company obtained a waiver from its lenders related to a financial covenant under the Amended Credit Agreement for the quarter ending on June 30, 2025. On August 13, 2025, LS Power contributed $40M as a cash contribution to CCS Finance Co., LLC. The Company has concluded that no other subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements.

## Exhibit 99.11

**Exhibit 99.11**

**CCS POWER FINANCE CO, LLC**

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

***As of June 30, 2025 and December 31, 2024 for the Three and Six-Months Periods Ended June 30, 2025***

**CCS POWER FINANCE CO, LLC**

CONDENSED CONSOLIDATED BALANCE SHEETS

*(IN THOUSANDS)*

------

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025**<br>**(Unaudited)** | **December 31, 2024**<br>**(Audited)** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $10968 | $20897 |
| &nbsp;&nbsp;&nbsp;Financial assurance - short term |  | 200 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable, net | 15658 | 1928 |
| &nbsp;&nbsp;&nbsp;Unbilled accounts receivable | 10452 | 12079 |
| &nbsp;&nbsp;&nbsp;Other current assets | 2717 | 3377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **39795** | **38481** |
| Financial assurance - long term | 147 | 147 |
| Property and equipment, net | 11332 | 12547 |
| Intangible assets, net | 110245 | 119078 |
| Goodwill | 126746 | 126746 |
| Lease Right of Use Asset | 1680 | 1886 |
| Other assets | 1038 | 1065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | **290983** | **299950** |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | 7866 | 2780 |
| &nbsp;&nbsp;&nbsp;Accrued customer payments | 38502 | 48033 |
| &nbsp;&nbsp;&nbsp;Accrued payroll, benefits, and other | 5925 | 5957 |
| &nbsp;&nbsp;&nbsp;Debt - short term | 26413 | 16413 |
| &nbsp;&nbsp;&nbsp;Lease Liability - short term | 571 | 550 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 11215 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **90492** | **73733** |
| Debt - long term | 83750 | 85494 |
| Debt due to related parties | 16500 | 16500 |
| Accrued liabilities due to related parties | 2639 | 1773 |
| Deferred tax liabilities | 17863 | 18407 |
| Lease Liability - long term | 1454 | 1705 |
| Other liabilities | 120 | 208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **212818** | **197820** |
| Members' equity | 78165 | 102130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total members' equity** | **78165** | **102130** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and members' equity** | $**290983** | $**299950** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements. 2

**CCS POWER FINANCE CO, LLC**

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

*(IN THOUSANDS)*

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue | $39112 | $35942 | $63784 | $67656 |
| Cost of revenue | 26981 | 23246 | 44389 | 45009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross profit** | **12131** | **12696** | **19395** | **22647** |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation | 9833 | 9429 | 19422 | 18702 |
| &nbsp;&nbsp;&nbsp;General & administrative | 3386 | 3513 | 5917 | 7017 |
| &nbsp;&nbsp;&nbsp;Amortization & depreciation | 5783 | 5411 | 11348 | 10836 |
| &nbsp;&nbsp;&nbsp;Related party advisory fees |  | 10 |  | 10 |
| &nbsp;&nbsp;&nbsp;Transaction & other expenses | 274 | 560 | 452 | 937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating (loss) | (7145) | (6227) | (17744) | (14855) |
| &nbsp;&nbsp;&nbsp;Interest expense | 3496 | 3288 | 6717 | 6323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) before income taxes | (10641) | (9515) | (24461) | (21178) |
| &nbsp;&nbsp;&nbsp;Provision for income tax expense (benefit) | (227) | (225) | (496) | (525) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net (loss)** | $**(10414)** | $**(9290)** | $**(23965)** | $**(20653)** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements. 3

**CCS POWER FINANCE CO, LLC**

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' EQUITY

*(IN THOUSANDS)*

------

---

| | |
|:---|:---|
|  | **Total Members' Equity** |
| **Balance at December 31, 2024** | $102130 |
| Net loss | (13551) |
| **Balance at March 31, 2025** | $**88579** |
| Net loss | (10414) |
| **Balance at June 30, 2025** | $**78165** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements. 4

**CCS POWER FINANCE CO, LLC**

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

*(IN THOUSANDS)*

------

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) | $(23965) | $(20653) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) to net cash (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization & depreciation | 11348 | 10836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating lease right-of-use assets | 206 | 346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 556 | 556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | (544) | (641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets & liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable, net and unbilled accounts receivable | (12103) | 6461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 660 | (987) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assurance short and long term | 200 | 721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | 5086 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued customer payments | (9531) | (8546) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll, benefits, and other | (32) | (3984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 11236 | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities due to related parties | 866 | 680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (339) | (844) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) operating activities** | **(16329)** | **(16131)** |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp; **Capital expenditures** | (1300) | (2283) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) investing activities** | **(1300)** | **(2283)** |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of related party debt |  | 5940 |
| &nbsp;&nbsp;&nbsp;Borrowing under revolving credit facility | 10000 |  |
| &nbsp;&nbsp;&nbsp;Principal repayment | (2300) | (2200) |
| &nbsp;&nbsp;&nbsp;Distributions | - | (5847) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) financing activities** | **7700** | **(2107)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in cash and cash equivalents | (9929) | (20521) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at beginning of period | 20897 | 34359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash and cash equivalents at end of period** | $**10968** | $**13838** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements. 5

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

**Note 1—Description of Business and basis of consolidation**

*Description of Business* – Enerwise Global Technologies, LLC d/b/a CPower (hereinafter "we", "us", "our", "Enerwise") is a Delaware Limited Liability Corporation. Enerwise provides intelligent energy management solutions to utilities, independent system operators ("ISOs") and regional transmission organizations ("RTO") that manage programs and/or auctions in which commercial and industrial ("C&I") customers participate. The Enerwise solutions are delivered through the management of C&I megawatts in open and regulated markets.

On December 21, 2018, Enerwise and its parent company, CPower Holdings, LLC entered into a Stock Purchase Agreement (the "Acquisition Agreement") with CPower Acquisition Company, LLC ("CPower A") whereby all outstanding shares were acquired by CPower A, which represented a transfer of ownership.

Effective January 31, 2019 Enerwise Global Technologies d/b/a CPower converted from a Delaware Corporation to a Delaware Limited Liability Company.

On February 1, 2019, CPower A transferred 98% common ownership interest of Enerwise to CCS Power Finance Co, LLC ("Power Finance") which constituted a common control transaction under Accounting Standards Codification (ASC) 805 *Business Combinations*, as the two entities are under the control of the same parent. The transfer of ownership was recorded at historical cost and the condensed consolidated financial statements include Enerwise activity commencing on January 1, 2019.

*Principles of Consolidation* – The condensed consolidated financial statements include the accounts of CCS Power Finance Co., LLC, CCS Acquisition Holdco, LLC, CPower Acquisition Company, LLC and Enerwise Global Technologies, LLC d/b/a CPower (collectively referred to as the "Company") and have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Intercompany transactions and balances are eliminated upon consolidation.

**Note 2—Significant accounting policies**

*Basis of presentation* – The interim condensed consolidated financial statements have been prepared without audit, in accordance with the U.S. generally accepted accounting principles (U.S. GAAP). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included, and intercompany transactions have been eliminated in the interim condensed consolidated financial statements. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim condensed consolidated statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2024. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

**Note 2—Significant accounting policies (continued)**

*Use of estimates* – The preparation of condensed consolidated financial statements in conformity with U.S. GAAP, which requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates include the valuation of intangible assets resulting from acquisitions, provisions required for allowance for doubtful accounts, non-collectible accounts receivable, revenues, accrued customer payments, and tax reserves.

The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Changes in estimates are recorded in the period in which they become known. Actual results could differ materially from those estimates.

*Cash and cash equivalents* – The Company considers cash equivalents to be all highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents consist of cash deposited in banks.

*Financial assurance -* The Company maintains funds in conjunction with open markets to collateralize the performance of its positions. The balances are deposited directly with the ISOs, RTOs, utilities, their designated agent or through letters of credit. These amounts have been classified on the condensed consolidated balance sheet as short term or long term based on the underlying restriction.

*Allowance for doubtful accounts* – The Company reviews the outstanding accounts receivable on a monthly basis, as well as uncollectable account adjustments experienced in the past, and establishes an allowance for doubtful accounts when necessary. Account balances are reduced against the allowance for doubtful accounts when the Company determines it is probable the receivable will not be recovered.

*Property and equipment, net* – Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the depreciable assets. Leasehold improvements are depreciated over the shorter of the lease term or useful life. Improvements are capitalized while repairs and maintenance are expensed as incurred. Costs associated with internally developed software are recorded in Work in Progress subcategory and reclassified to Software subcategory once ready for its intended use. Balances of major classes of property and equipment are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Estimated<br> Useful Life** | **June 30, 2025** | **December 31, 2024** |
| **Property and equipment Equipment** | 3 | $638 | $504 |
| &nbsp;&nbsp;&nbsp;Software | 3 | 23301 | 18430 |
| &nbsp;&nbsp;&nbsp;Furniture & Fixtures | 5 | 2 | 2 |
| &nbsp;&nbsp;&nbsp;Leasehold Improvements | 3-10 | 205 | 205 |
| &nbsp;&nbsp;&nbsp;Work in Progress | N/A | 577 | 4282 |
| **Total** |  | 24723 | 23423 |
| **Less accumulated depreciation** |  | (13391) | (10876) |
| **Property and equipment, net** |  | $11332 | $12547 |

---

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

**Note 2—Significant accounting policies (continued)**

*Risks and uncertainties* – The Company's performance is subject to a variety of factors, including the economy, the regulatory environment, and the electricity markets. As with any operations within the power and utilities industry, the Company is subject to risk, including customer performance, market and regulatory compliance, operator error, or catastrophic events such as fires, earthquakes, floods, extreme weather, explosions, pandemics or other similar occurrences affecting a power supply and demand. The occurrence of any of these events could significantly impact the revenues generated or significantly increase the expenses incurred.

*Fair value of financial instruments* – The Company uses financial instruments in the normal course of business, including Cash and cash equivalents, Financial assurance, Trade accounts receivable, Unbilled accounts receivable, Trade accounts payable, Accrued customer payments, and Accrued payroll, benefits and other. The carrying values of these financial instruments approximate their respective fair values at the Condensed Consolidated Balance Sheet date due to the short-term maturity of these assets and liabilities.

ASC 820, *Fair Value Measurements and Disclosures* describe three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and agreement prices for the underlying instruments, as well as other relevant economic measures. Substantially all assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

*Revenue recognition and cost of revenue* – The Company derives the majority of its revenues from participation in utility, RTO, or ISO programs, which require the Company to provide electric capacity through demand reduction when a utility, RTO, or ISO calls an event to curtail electrical usage. Revenues are earned based on the Company's ability to deliver capacity. In order to provide capacity, the Company manages a portfolio of C&I end users' electric loads. Capacity amounts are verified through the results of actual events or tests, which take place throughout the calendar year. Cash payments are received from RTOs, ISOs, and utilities for participation throughout the year.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

**Note 2—Significant accounting policies (continued)**

Within certain markets, the Company may utilize the incremental auctions held prior to the commencement of the delivery year or may enter into bilateral agreements with other market demand or supply-side providers to fulfill a portion of the megawatts previously awarded ("Wholesale Capacity"). If the Company is released from its obligations to fulfill commitment through an auction or a bilateral agreement, the Company recognizes revenue net of related cost of revenue over the delivery year.

The Company recognizes revenue in accordance with ASU 2014-09, *Revenue from Contracts with Customers*, (referred collectively herein as "Topic 606"). The Company applies the invoicing practical expedient to recognize revenues, except in circumstances where the invoiced amount does not represent the value transferred to the customer. Revenues derived from Wholesale Capacity are presented net of costs.

Disaggregated revenue by type for the three months ended June 30, 2025 and June 30, 2024 and the six months ended June 30, 2025 and June 30, 2024 was as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Demand Response | $38795 | $36743 | $64949 | $69418 |
| Wholesale Capacity | (513) | (801) | (1995) | (1762) |
| Other | 830 | - | 830 | - |
| &nbsp;&nbsp;&nbsp;**Total Revenues** | $**39112** | $**35942** | $**63784** | $**67656** |

---

*Impairment of long-lived assets* – The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying amount should be assessed by comparing their carrying value to the undiscounted estimated future net operating cash flows expected to be derived from such assets. If such evaluation indicates a potential impairment, a discounted cash flow analysis is used to measure fair value in determining the amount of these assets that should be written off. During the years ended December 31, 2024 and December 2023, no impairment charges were recognized.

*Income taxes -* Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the condensed consolidated financial statements' carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that the tax benefits will not be realized. Management has evaluated all other tax positions that could have a significant effect on the condensed consolidated financial statements and determined the Company has no uncertain income tax positions at June 30, 2025 and December 31, 2024. Accordingly, no related penalties or interest were recognized in the condensed consolidated financial statements.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

**Note 2—Significant accounting policies (continued)**

*Recent Accounting Pronouncements*

In December 2023, FASB issued ASU 2024-01, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires certain quantitative rate reconciliation disclosures for public entities. Additionally, this ASU requires all entities to disclose income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2025. The Company is currently evaluating the impact of the standard on the Company's condensed consolidated financial statements.

**Note 3—Intangible Assets and Goodwill**

The Company's intangible assets, as of June 30, 2025 and December 31, 2024, consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Estimated Useful <br> Life (in Years)** | **June 30, 2025** | **December 31, 2024** |
| Customer and Partner Relationships | 12 | $174990 | $174990 |
| Trade Name | 20 | 25000 | 25000 |
| Developed Technology | 12 | 22000 | 22000 |
| &nbsp;&nbsp;&nbsp;Total Intangibles |  | 221990 | 221990 |
| Accumulated Amortization |  | (111745) | (102912) |
| **Intangibles, net** |  | $**110245** | $**119078** |
| **Goodwill** |  | $126746 | $126746 |

---

The Company amortizes intangible assets using the straight-line method and reviews for impairment if it determines there was a triggering event. The Company recorded $4,416 thousand of intangible amortization expense for the three months ended June 30, 2025 and June 30, 2024. The Company recorded $8,833 thousand of intangible amortization expense for the six months ended June 30, 2025 and June 30, 2024. These amounts are included in Amortization and depreciation in the Condensed Consolidated Statements of Operations. Estimated aggregate intangible amortization expense for each of the next five years is $17,666 thousand.

Goodwill is not amortized but is tested for impairment annually, during the fourth quarter, and when events or changes in circumstances indicate that the carrying value may not be recoverable.

**Note 4—Accounts receivable, net**

Trade accounts receivable, net of the allowance for doubtful accounts of $0 thousand, as of June 30, 2025 and December 31, 2024 totaled $15,658 thousand and $1,928 thousand, respectively. The balances represent revenues earned and invoiced or with a right to invoice. The balances primarily consist of amounts owed to the Company from the Utility, ISO or RTO. Certain reserve amounts have been reclassified to Other current liabilities for consistency with the current year presentation. These reclassifications had no effect on the reported results of condensed consolidated statement of operations.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

 

**Note 4—Accounts receivable, net (continued)**

Unbilled accounts receivable as of June 30, 2025 and December 31, 2024 totaled $10,452 thousand and $12,079 thousand, respectively. Unbilled accounts receivable represents amounts that the Company will invoice pursuant to the Company's future billings for services rendered though the balance sheet date.

**Note 5—Income taxes**

The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss carryforwards.

Effective January 31, 2019 Enerwise Global Technologies d/b/a CPower converted from a Delaware Corporation to a Delaware Limited Liability Company, taxed as a partnership and considered a pass-through entity for tax purposes.

Under ASC Topic 740, Enerwise Global Technologies, LLC recognized the effect of the change in tax status on the net deferred tax assets and liabilities as of January 31, 2019. As a result, Enerwise's parent company CPower Acquisition Company, LLC, which is taxed as a C Corporation, recognized deferred tax assets and liabilities from its interest in Enerwise Global Technologies, LLC and its assumption of certain of its tax attributes. CCS Power Finance Co, LLC is a disregarded entity for tax purposes. The provision for income taxes reflects the activity of its subsidiaries, as described in Note 1, Description of Business and Basis of Consolidation.

The income tax provision consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Income/(Loss before income taxes | (1055) | (1253) | (2134) | (2563) |
| Income tax expense/(benefit) | (269) | (313) | (544) | (641) |
| Effective income tax rate | 25.5% | 25.0% | 25.5% | 25.0% |

---

The income tax provision represents the stand-alone income activity for CCS Acquisition Holdco LLC, which is consolidated under CCS Power Finance Co LLC. For the three and six months ended June 30, 2025, the effective tax rate was higher than the statutory rate of 21% primarily due to the state tax expense. The 2025 effective tax rate was higher primarily due to the change in the state apportionment and increased state tax expense.

For the three and six months ended June 30, 2024, the effective tax rate was higher than the statutory rate of 21% primarily due to the state tax expense and permanent differences.

As of December 31, 2024, the Company had determined no liabilities for uncertain tax positions should be recorded. The Company's tax years ended December 31, 2021 through December 31, 2024 are subject to examination by the federal and state tax authorities.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

**Note 6—Accrued customer payments and trade accounts payable**

Accrued customer payments as of June 30, 2025 and December 31, 2024 consisted of program participant payments. The Company pays participants within a specified period after receipt of payment from the utility, ISO or RTO.

Trade accounts payable as of June 30, 2025 and December 31, 2024 consisted of vendor payables and trade accruals. The Company pays vendors within a specified period, typically within 30 days of invoice date.

**Note 7—Concentrations of credit risk**

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of Cash, Financial assurance, Trade accounts receivable, and Unbilled accounts receivable. Cash accounts are generally held at major financial institutions. Financial assurance, Trade accounts receivable, and Unbilled accounts receivable is concentrated within Utility, ISO, RTO. This industry concentration may impact the Company's overall exposure to credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic, industry or other conditions.

Financial assurance, Trade accounts receivable, and Unbilled accounts receivable are concentrated within entities engaged in the energy industry. These industry concentrations may impact the Company's overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic, industry or other conditions.

As of and for the years ended June 30, 2025 and December 31, 2024, three ISOs/RTOs/utilities accounted for 78% and 71% of revenues, and 75% and 59% of accounts receivable, respectively. Loss of revenues from any of these ISOs/RTOs/utilities would be material to the Company's operations.

**Note 8—Borrowings and credit agreements**

On May 17, 2019, the Company entered into a credit agreement with a group of lenders (Credit Agreement) which was funded on the same date. The Credit Agreement consists of the following:

a) a $120,000 thousand five-year term loan (the Term Loan); and

b) a $20,000 thousand five-year revolving credit facility (the Revolver) used to (i) finance working
capital and for general corporate purposes, (ii) support obligations under certain agreements and (iii) satisfy certain collateral
requirements with respect to maintenance and operations.

The interest rates on outstanding loans under the Credit Agreement were adjusted for each interest period based on an election made by the company between 1) adjusted Eurodollar rate plus a spread of 3.50% and 2) Alternate Base Rate. The Alternate Base Rate was defined as the greatest of the following plus a spread of 2.50%: (a) Base Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus <sup>1</sup>/<sub>2</sub> of 1.00%, and (c) Adjusted Eurodollar Rate in effect on such day plus 1.00%; Base Rate is the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus <sup>1</sup>/<sub>2</sub> of 1.00%, and (c) Adjusted Eurodollar Rate in effect on such day plus 1.00%. The elections and interest rates were determined on a monthly basis.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

**Note 8—Borrowings and credit agreements (continued)**

Mandatory amortization of the Term Loan ranged from 0.50% to 3.50% of the original outstanding principal amount, payable quarterly.

On April 14, 2022, the Company executed an amendment to the existing Credit Agreement ("Amended Credit Agreement") whereby maturity has been extended until December 31, 2026, and an additional $180,000 thousand of commitment under the Revolver is made available for issuance of letters of credit to provide credit support to contractual counterparties or other similar payment or performance assurance. Debt issuance costs totaled $4,458 thousand.

The interest rates on outstanding loans under the Amended Credit Agreement are adjusted for each interest period based on an election made by the company, which historically has been on a monthly basis, between (a) ABR Borrowing defined as Base Rate plus 2.25% and (b) SOFR Borrowing defined as Adjusted Term SOFR plus 3.25%. ABR is defined as the greatest (a) the rate that the Administrative Agent announces from time to time as its prime or base commercial lending rate, as in effect from time to time or (b) the sum of (i) the Federal Funds Effective Rate in effect on such day plus (ii) 0.50% and (c) the sum of (i) the Adjusted Term SOFR for a one-month tenor in effect on such day plus (ii) 1.00%. Adjusted Term SOFR is defined as SOFR reference rate for a tenor comparable to the applicable interest period plus 0.07% for a one month election. The interest rate in effect at June 30, 2025 and December 31, 2024 for the Term Loan and Revolver is 7.65% and 7.89% respectively. Interest is payable on the Term Loan and Revolver on a monthly basis.

As of June 30, 2025 and December 31, 2024, there were $91,831 thousand and $94,131 thousand outstanding under the Term Loan, respectively, and $20,000 thousand and $10,000 thousand outstanding under the Revolver. As of June 30, 2025 and December 31, 2024, $67,600 thousand and $48,975 thousand, respectively, of the Revolver have been used to issue standby letters of credit to collateralize performance of the Company's positions with ISOs, RTOs, and utilities in which it operates. As such, the amount available under the Revolver is $112,400 and $141,025 as of June 30, 2025 and December 31, 2024. See Note 9 – Commitments and Contingencies. The Credit Agreement contains certain financial, affirmative and negative covenants, the Company was in compliance with all covenants throughout 2025 and 2024. On May 7, 2025, the Company obtained a waiver from its lenders related to a financial covenant under the Amended Credit Agreement for the quarter ending on June 30, 2025.

Pursuant to the Amended Credit Agreement and driven by PJM base residual capacity prices for the 2023/2024 delivery year, the Company's parent CCS Intermediate Holdco, LLC, which is indirectly majority owned by CCS Class A Member, LLC a wholly owned subsidiary of LS Power Equity Partners IV, LP, is required to make an equity contribution totaling $16,500 thousand, in equal installments over a 12 month period commencing in June 2023. To fulfill this equity contribution obligation, CCS Intermediate Holdco, LLC entered into a related party subordinated loan with the Company. See Note 13 – Related Party Transactions. As of June 30, 2025 and December 31, 2024, CCS Intermediate Holdco, LLC, has made $0 thousand and $5,940 thousand, respectively, in total contributions to the Company.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

 

**Note 9—Commitments and contingencies**

*Guarantees* – The Company has guaranteed the electrical capacity it has committed to deliver pursuant to certain long-term contracts or open market biddings with ISOs, RTOs and utilities. Such guarantees may be secured by cash, letters of credit, performance bonds, or third-party guarantees.

*Off-balance sheet arrangements - Standby letters of credit*

In the ordinary course of business, the Company has entered into collateral arrangements in the form of standby letters of credit issued under its Revolver, in favor of the ISOs, RTOs and utilities with which it operates. At June 30, 2025 and December 31, 2024, these collateral arrangements totaled $67,600 thousand and $48,975 thousand, respectively.

**Note 10—Related party transactions**

The Company is indirectly majority owned by CCS Class A Member, LLC, which is a wholly owned subsidiary of LS Power Equity Partners IV, LP ("LS Power"). LS Power is a related party to an agreement with provisions for repayment of travel and certain administrative and legal expenses. Expenses related to these provisions for the three months and six month ended June 30, 2025 and June 30, 2024 totaled $0 thousand and $10 thousand, respectively, recorded in Related party advisory fees on the Condensed Consolidated Statement of Operations.

On June 30, 2023, the Company entered into a subordinated loan agreement with the Company's parent CCS Intermediate Holdco, LLC, which is indirectly majority owned by CCS Class A Member, LLC to receive equity contributions pursuant to the Amended Credit Agreement. See Note 9 – Borrowings and credit agreements. The principal amount of the subordinated loan totals $16,500 thousand. The note bears interest of 9.25% per annum and matures on March 31, 2027. As of June 30, 2025, the subordinated loan payable balance consisted of $16,500 thousand principal outstanding plus $2,639 thousand in accrued interest. As of December 31, 2024, the subordinated loan payable balance consisted of $16,500 thousand principal outstanding plus $1,773 thousand in accrued interest.

Certain members of management have loans with an affiliate of the Company for the purchase of stock in that affiliate. The loans are full recourse loans and are not recorded in the Company's financial statements as the Company is not a party to those loans.

Members of management of Enerwise have been awarded incentive units in CCS Power Holdings, LLC. Such units vest upon change of control as defined by the incentive agreement, which as of June 30, 2025 is deemed remote, accordingly no fair value has been assigned to such units and thus no expense has been recorded for these units.

**Note 11 - Equity**

In accordance with the Power Finance LLC agreement, the Company is permitted to make distributions to its parent at the parent's discretion, while maintaining compliance with the Amended Credit Agreement. Distributions for the years ended June 30, 2025 and December 31, 2024 totaled $0 thousand and $5,847 thousand, respectively.

**CCS POWER FINANCE CO, LLC**

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*JUNE 30, 2025 AND DECEMBER 31, 2024*

 

**Note 12—Subsequent events**

In preparing these condensed consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through August 15, 2025, the date these condensed consolidated financial statements were available to be issued. On August 13, 2025, LS Power contributed $40M as a cash contribution to CCS Finance Co., LLC. The Company has concluded that no other subsequent events have occurred that would require recognition or disclosure in the condensed consolidated financial statements.

## Exhibit 99.12

**EXHIBIT 99.12**

**UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION**

The following unaudited pro forma combined financial information is presented by NRG Energy, Inc. ("NRG" or the "Company") to illustrate the estimated effects of the anticipated acquisition of a portfolio of natural gas generation facilities and a commercial and industrial virtual power plant ("C&I" VPP) from LS Power (the "LS Power Portfolio"), ("the Acquisition"), and certain other related transactions and adjustments described below (collectively, the "Transactions Accounting Adjustments").

<u>Anticipated Acquisition of LS Power Portfolio</u>

On May 12, 2025, NRG entered into a Purchase and Sale Agreement (the "Purchase Agreement"), by and among the Company, NRG East Generation Holdings LLC, NRG Texas LLC, NRG Demand Response Holdings LLC, NRG Gas Development Company, LLC (all of which are subsidiaries of the Company) and Lightning Power Holdings, LLC, Thunder Generation, LLC, CCS Power Holdings, LLC and Linebacker Power Development Funding, LLC (all of which are affiliates of LS Power Equity Advisors, LLC). Pursuant to the Purchase Agreement, NRG will acquire all of the issued and outstanding equity interests of Lightning Power, LLC ("Lightning")<sup>1</sup>, Linebacker Power Holdings, LLC ("Linebacker")<sup>2</sup>, CCS Intermediate HoldCo, LLC ("CCS")<sup>3</sup> and Jack County Power Development, LLC ("JCPD")<sup>4</sup>. The LS Power Portfolio includes 18 natural gas-fired facilities totaling approximately 13 GW of capacity, located across nine states, as well as CPower, a leading C&I VPP with approximately 6 GW of capacity with more than 2,000 commercial and industrial customers.

Subject to the terms and conditions of the Purchase Agreement, the purchase price for the transaction will consist of 24,250,000 shares of common stock of the Company, par value $0.01 per share (the "Stock Consideration"), and $6.4 billion in cash, subject to certain adjustments set forth in the Purchase Agreement (the "Cash Consideration"). As part of the transaction, NRG will also assume approximately $3.2 billion of debt.

In connection with the anticipated acquisition of the LS Power Portfolio, NRG entered into a commitment letter for a 364-day Senior Secured Bridge Facility (the "Bridge Facility") in a principal amount not to exceed $4.4 billion for the purposes of paying a portion of the Cash Consideration for the anticipated acquisition and paying fees and expenses in connection with the acquisition.

<sup>1</sup> Lightning Power, LLC is the successor entity of Fund III Projects (as defined below) and Gridiron Intermediate Holdings, LLC ("Gridiron"), beginning August 9, 2024. The "Fund III Projects" are comprised of the operations and assets held by Granite Generation, LLC, Helix Gen Funding, LLC, Ocean State Power LLC, and Rise Light & Power, LLC.

<sup>2</sup> Linebacker Power Holdings, LLC (one of the acquired entities) owns Linebacker Power Funding, LLC. The pro forma financial information is prepared using the available audited and unaudited financial statements of Linebacker Power Funding, LLC. Differences between the two entities include affiliate billings and certain incremental general and administrative costs and are immaterial to the pro forma information.

<sup>3</sup> CCS Intermediate Holdco, LLC (one of the acquired entities) owns CCS Power Finance Co, LLC. The pro forma financial information is prepared using the available audited and unaudited financial statements of CCS Power Finance Co, LLC. Differences between the two entities include immaterial affiliate billings and certain immaterial incremental general and administrative costs. Intercompany note of $16.5 million between the two entities and its related impact on the pro forma information is included in the pro forma Transactions Accounting Adjustments.

<sup>4</sup> The pro forma financial information does not include the estimated effects from the acquisition of Jack County Power Development, LLC, as audited and unaudited financial statements for that entity are not available and the effects of that entity are immaterial to the pro forma information.

**Pro Forma Financial Information**

The unaudited pro forma combined balance sheet as of June 30, 2025 combines the historical consolidated balance sheet of NRG and the historical balance sheets of the LS Power entities (as listed below) after giving effect to the acquisition of the LS Power Portfolio and the related transactions, as if they had occurred on June 30, 2025. The unaudited pro forma combined statements of operations for the year ended December 31, 2024, and the six months ended June 30, 2025 and 2024, combine the historical consolidated statements of operations of NRG and the historical statements of operations of the LS Power acquired entities (as listed below), after giving effect to the Transactions Accounting Adjustments, as if they had occurred on January 1, 2024. We refer to these unaudited pro forma combined balance sheet and unaudited pro forma combined statements of operations as the "pro forma financial information".

The pro forma financial information has been prepared by NRG for illustrative and informational purposes only, based on Regulation S-X Article 11, *Pro Forma Financial Information.* The pro forma financial information is based on the Transactions Accounting Adjustments and assumptions and is not necessarily indicative of what NRG's consolidated statements of operations or consolidated balance sheet actually would have been had the Transactions Accounting Adjustments been completed as of the dates indicated, or what they will be for any future periods. The pro forma financial information does not purport to project the future financial position or operating results of NRG following the completion of the Acquisition and the related transactions. The pro forma financial information does not reflect any revenue enhancements, cost savings, operating synergies or restructuring costs that may be achievable or incurred prospectively in connection with the Acquisition and the related transactions.

The pro forma financial information for the anticipated acquisition of the LS Power Portfolio has been prepared using the acquisition method of accounting under U.S. Generally Accepted Accounting Principles ("U.S. GAAP") with NRG being the accounting acquirer in the acquisition. The purchase price will be allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the acquisition date, and any excess value of the consideration transferred over the net assets will be recognized as goodwill. The Company has made a preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the assumed Acquisition date based on NRG's preliminary valuation of the tangible and intangible assets acquired and liabilities assumed using information currently available. Differences between these preliminary estimates, which were made solely for the purpose of this pro forma financial information, and the final acquisition accounting will occur and these differences could have a material impact on the accompanying pro forma financial information. Additionally, changes in the fair value of common stock of NRG up to the closing date of the acquisition of the LS Power Portfolio could significantly change the preliminary amount of consideration transferred used in these unaudited pro forma combined financial statements, and the amounts recognized as goodwill.

The purchase price for the anticipated acquisition of the LS Power Portfolio will consist of Cash Consideration of $6.4 billion and Stock Consideration of 24,250,000 shares of common stock of the Company, par value $0.01 per share, subject to certain adjustments set forth in the Purchase Agreement.

The pro forma financial information gives effect to the following assumed sources of funds to satisfy the Cash Consideration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· proceeds of approximately $4.3 billion from $4.4 billion newly-issued secured and unsecured
 corporate debt, net of issuance costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· proceeds of approximately $2.0 billion from the Company's Revolving Credit Facility; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· cash on hand.

The assumed sources of funds and interest rates are based on currently available information and assumptions. There is no guarantee that the actual sources of funds and interest rates used to complete the anticipated acquisition of the LS Power Portfolio will be the same as the assumed sources and interest rates presented in the pro forma financial information. Depending on actual sources of funds used to complete the anticipated Acquisition, the financial position and the operating results of NRG following the Acquisition may be materially different from the pro forma financial information.

The pro forma financial information should be read in conjunction with the accompanying explanatory notes. In addition, the pro forma financial information is derived from and should be read in conjunction with the following historical financial statements and the related notes of NRG and the LS Power acquired entities as listed below:

<u>NRG Financial Statements:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· audited consolidated financial statements of NRG as of and for the fiscal year ended December 31,
2024 and the related notes included in NRG's Annual Report on Form 10-K for the year ended December 31, 2024 filed on
February 26, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· unaudited condensed financial statements of NRG as of and for the six months ended June 30, 2025
and 2024 and the related notes included in NRG's Quarterly Report on Form 10-Q for the quarterly period ended June 30,
2025 filed on August 6, 2025;

<u>LS Power Acquired Entities' Financial Statements:</u>

Lightning

*Successor:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· audited consolidated financial statements of Lightning Power, LLC and subsidiaries as of December 31,
2024 and for the period August 9, 2024 to December 31, 2024 and the related notes included in Exhibit 99.2 to this current
Report on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· unaudited condensed consolidated financial statements of Lightning Power, LLC and subsidiaries as of June 30,
2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and the related notes included in Exhibit 99.3
to this current Report on Form 8-K;

*Fund III Projects and Gridiron:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· audited combined financial statements of Fund III Projects for the period January 1, 2024 to August 8,
2024, and the year ended December 31, 2023 and the related notes included in Exhibit 99.4 to this current Report on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· unaudited condensed combined financial statements of Fund III Projects as of June 30, 2024 and for
the three and six months ended June 30, 2024 and the related notes included in Exhibit 99.5 to this current Report on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· audited consolidated financial statements of Gridiron Intermediate Holdings, LLC and subsidiaries for
the period January 1, 2024 to August 8, 2024, and the year ended December 31, 2023 and the related notes included in Exhibit 99.6
to this current Report on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· unaudited condensed consolidated financial statements of Gridiron Intermediate Holdings, LLC and subsidiaries
as of June 30, 2024 and for the three and six months ended June 30, 2024 and the related notes included in Exhibit 99.7
to this current Report on Form 8-K;

Linebacker

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· audited consolidated financial statements of Linebacker Power Funding, LLC and subsidiaries as of December 31,
2024 and 2023, the year ended December 31, 2024, the period of June 12, 2023 to December 31, 2023, and the related notes
included in Exhibit 99.8 to this current Report on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· unaudited condensed consolidated financial statements of Linebacker Power Funding, LLC and subsidiaries
as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 and the related notes included in Exhibit 99.9
to this current Report on Form 8-K;

CCS Power Finance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· audited consolidated financial statements of CCS Power Finance Co, LLC as of and for the fiscal year ended
December 31, 2024 and 2023 and the related notes included in Exhibit 99.10 to this current Report on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· unaudited condensed consolidated financial statements of CCS Power Finance Co, LLC as of June 30,
2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and 2024 and the related notes included in Exhibit 99.11
to this current Report on Form 8-K;

**NRG ENERGY, INC. AND SUBSIDIARIES**

**UNAUDITED PRO FORMA COMBINED BALANCE SHEET**

**AS OF JUNE 30, 2025**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Historical** | **Historical** | **Historical** | **Historical** | **Transaction Accounting** | **Transaction Accounting** | | |
| | | **LS Power Portfolio** | **LS Power Portfolio** | **LS Power Portfolio** | **Adjustments** | **Adjustments** | | |
| <br>**(In millions)** |<br>**NRG** | **Lightning as<br> Reclassified<br> (Note 3)** | **Linebacker<br> as<br> Reclassified<br> (Note 4)** | **CPower as<br> Reclassified<br> (Note 5)** | **Acquisition<br> Accounting<br> Adjustments** | **Assumed<br> Financing<br> Adjustments** | <br>**Notes** |<br>**Pro Forma<br> Combined** |
| **ASSETS** |  |  |  |  |  |  |  |  |
| **Current Assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $180 | $— | $— | $11 | $(6372) | $6371 | 7(a) | $190 |
| &nbsp;&nbsp;&nbsp;&nbsp;Funds deposited by counterparties | 446 |  |  |  |  |  |  | 446 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 17 | 50 | 22 |  |  |  |  | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 3421 | 169 | 24 | 26 | (118) |  | 7(b)(f) | 3522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | 451 | 126 | 37 |  |  |  |  | 614 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 2332 | 501 | 66 |  |  |  |  | 2899 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash collateral paid in support of energy risk management activities | 361 |  |  |  |  |  |  | 361 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other current assets | 987 | 84 | 14 | 3 |  | (12) | 7(c) | 1076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 8195 | 930 | 163 | 40 | (6490) | 6359 |  | 9197 |
| **Property, plant and equipment, net** | 3192 | 6567 | 684 | 11 | 3059 |  |  | 13513 |
| **Other Assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments in affiliates | 47 |  |  |  |  |  |  | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets, net | 133 | 27 |  | 2 |  |  |  | 162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 5017 | 128 |  | 127 | 2782 |  | 7(d) | 8054 |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer relationships, net | 1379 |  |  |  | 230 |  | 7(e) | 1609 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets, net | 1130 | 31 |  | 110 | (51) |  | 7(e) | 1220 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 1745 | 537 | 55 |  |  |  |  | 2337 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 1935 |  |  |  |  |  |  | 1935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 1315 | 136 |  | 1 | (136) |  | 7(f) | 1316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other assets | 12701 | 859 | 55 | 240 | 2825 |  |  | 16680 |
| **Total Assets** | $24088 | $8356 | $902 | $291 | $(606) | $6359 |  | $39390 |
| &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** | &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' EQUITY/MEMBER'S EQUITY** |
| **Current Liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt and finance leases | $1132 | $8 | $16 | $26 | $10 | $2000 | 7(g) | $3192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 38 | 1 |  | 1 |  |  |  | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 2544 | 82 | 5 | 8 | (98) |  | 7(b) | 2541 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 1954 | 526 | 65 |  |  |  |  | 2545 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash collateral received in support of energy risk management activities | 446 |  |  |  |  |  |  | 446 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue current | 715 | 2 |  |  |  |  |  | 717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 1952 | 156 | 39 | 55 | 50 | 12 | 7(h) | 2264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | $8781 | $775 | $125 | $90 | $(38) | $2012 |  | $11745 |

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**NRG ENERGY, INC. AND SUBSIDIARIES**

**UNAUDITED PRO FORMA COMBINED BALANCE SHEET**

**AS OF JUNE 30, 2025 (Continued)**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Historical** | **Historical** | **Historical** | **Historical** | **Transaction Accounting** | **Transaction Accounting** | | |
| | | **LS Power Portfolio** | **LS Power Portfolio** | **LS Power Portfolio** | **Adjustments** | **Adjustments** | | |
| <br>**(In millions)** |<br>**NRG** | **Lightning as<br> Reclassified<br> (Note 3)** | **Linebacker<br> as<br> Reclassified<br> (Note 4)** | **CPower as<br> Reclassified<br> (Note 5)** | **Acquisition<br> Accounting<br> Adjustments** | **Assumed<br> Financing<br> Adjustments** | <br>**Notes** |<br>**Pro Forma<br> Combined** |
| **Other Liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt and finance leases | $9812 | $3212 | $632 | $84 | $(626) | $4371 | 7(g) | $17485 |
| &nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | 134 | 26 |  | 1 |  |  |  | 161 |
| &nbsp;&nbsp;&nbsp;Derivative instruments | 1273 | 537 | 46 |  |  |  |  | 1856 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 12 |  |  | 18 | 2 |  | 7(i) | 32 |
| &nbsp;&nbsp;&nbsp;Deferred revenue non-current | 905 |  |  |  |  |  |  | 905 |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities | 883 | 80 | 2 |  |  |  |  | 965 |
| &nbsp;&nbsp;&nbsp;Debt due to related parties |  |  |  | 17 | (17) |  | 7(j) |  |
| &nbsp;&nbsp;&nbsp;Accrued liabilities due to related parties |  |  |  | 3 | (3) |  | 7(j) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other liabilities | 13019 | 3855 | 680 | 123 | (644) | 4371 |  | 21404 |
| **Total Liabilities** | 21800 | 4630 | 805 | 213 | (682) | 6383 |  | 33149 |
| **Stockholders' Equity/ Member's Equity** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock | 650 |  |  |  |  |  |  | 650 |
| &nbsp;&nbsp;&nbsp;Common stock | 2 |  |  |  |  |  |  | 2 |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital | 305 |  |  |  | 4027 |  | 7(k) | 4332 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 1970 |  |  |  | (50) | (24) | 7(l) | 1896 |
| &nbsp;&nbsp;&nbsp;Treasury stock, at cost | (538) |  |  |  |  |  |  | (538) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (101) |  |  |  |  |  |  | (101) |
| &nbsp;&nbsp;&nbsp;Member's equity |  | 3726 | 97 | 78 | (3901) |  | 7(m) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Stockholders' Equity/ Member's Equity** | 2288 | 3726 | 97 | 78 | 76 | (24) |  | 6241 |
| **Total Liabilities and Stockholders' Equity/Member's Equity** | $24088 | $8356 | $902 | $291 | $(606) | $6359 |  | $39390 |

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**NRG ENERGY, INC. AND SUBSIDIARIES**

**UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Historical** | **Historical** | **Historical** | **Historical** | **Transactions Accounting** | **Transactions Accounting** | | |
| | | **LS Power Portfolio** | **LS Power Portfolio** | **LS Power Portfolio** | **Adjustments** | **Adjustments** | | |
| <br>**(In millions)** |<br>**NRG** | **Lightning as<br> Reclassified<br> (Note 3)** | **Linebacker <br> as<br> Reclassified<br> (Note 4)** | **CPower as<br> Reclassified<br> (Note 5)** | **Acquisition<br> Accounting<br> Adjustments** | **Assumed<br> Financing<br> Adjustments** | <br>**Notes** |<br>**Pro Forma<br> Combined** |
| **Revenue** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue | $15325 | $887 | $223 | $64 | $(59) | $— | 8(a) | $16440 |
| **Operating Costs and Expenses** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of operations (excluding depreciation and amortization shown below) | 12190 | 636 | 190 | 45 | (123) |  | 8(a) | 12938 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 670 | 168 | 13 | 11 | 60 |  | 8(b) | 922 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative costs | 1273 | 23 | 2 | 26 | (1) |  | 8(a) | 1323 |
| &nbsp;&nbsp;&nbsp;Acquisition-related transaction and integration costs | 51 |  |  |  |  |  |  | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 14184 | 827 | 205 | 82 | (64) |  |  | 15234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of assets | (7) |  |  |  |  |  |  | (7) |
| **Operating Income/(Loss)** | 1134 | 60 | 18 | (18) | 5 |  |  | 1199 |
| **Other Income/(Expense)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity in earnings of unconsolidated affiliates | 3 |  |  |  |  |  |  | 3 |
| &nbsp;&nbsp;&nbsp;Other income, net | 16 |  |  |  |  |  |  | 16 |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment | (10) |  |  |  |  |  |  | (10) |
| &nbsp;&nbsp;&nbsp;Interest expense | (311) | (120) | (3) | (7) | 16 | (149) | 8(e) | (574) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (302) | (120) | (3) | (7) | 16 | (149) |  | (565) |
| **Income/(Loss) Before Income Taxes** | 832 | (60) | 15 | (25) | 21 | (149) |  | 634 |
| &nbsp;&nbsp;&nbsp;Income tax expense/(benefit) | 186 |  | 1 | (1) | 5 | (37) | 8(f) | 154 |
| **Net Income/(Loss)** | 646 | (60) | 14 | (24) | 16 | (112) |  | 480 |
| &nbsp;&nbsp;&nbsp;Less: Cumulative dividends attributable to Series A Preferred Stock | 34 |  |  |  |  |  |  | 34 |
| **Net Income/(Loss) Available for Common Shareholders** | $612 | $(60) | $14 | $(24) | $16 | $(112) |  | $446 |

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**NRG ENERGY, INC. AND SUBSIDIARIES**

**UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2024**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Historical** | **Historical** | **Historical** | **Historical** | **Transactions Accounting** | **Transactions Accounting** | | |
| | | **LS Power Portfolio** | **LS Power Portfolio** | **LS Power Portfolio** | **Adjustments** | **Adjustments** | | |
| <br>**(In millions)** |<br>**NRG** | **Fund III Projects and Gridiron as Reclassified (Note 3)** | **Linebacker as Reclassified (Note 4)** | **CPower as Reclassified (Note 5)** | **Acquisition Accounting Adjustments** | **Assumed Financing Adjustments** | <br>**Notes** |<br>**Pro Forma Combined** |
| **Revenue** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue | $14088 | $742 | $201 | $68 | $(27) |  | 8(a) | $15072 |
| **Operating Costs and Expenses** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of operations (excluding depreciation and amortization shown below) | 9990 | 405 | 125 | 45 | (67) |  | 8(a) | 10498 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 693 | 94 | 13 | 11 | 133 |  | 8(b) | 944 |
| &nbsp;&nbsp;&nbsp;Impairment losses | 15 |  |  |  |  |  |  | 15 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative costs | 1094 | 23 | 3 | 26 |  |  |  | 1146 |
| &nbsp;&nbsp;&nbsp;Acquisition-related transaction and integration costs | 15 |  |  | 1 | 50 |  | 8(c) | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 11807 | 522 | 141 | 83 | 116 |  |  | 12669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of assets | 1 |  |  |  |  |  |  | 1 |
| **Operating Income/(Loss)** | 2282 | 220 | 60 | (15) | (143) |  |  | 2404 |
| **Other Income/(Expense)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity in earnings/(losses) of unconsolidated affiliates | 7 | (1) |  |  | 1 |  | 8(d) | 7 |
| &nbsp;&nbsp;&nbsp;Impairment losses on investments |  | (31) |  |  | 31 |  | 8(d) |  |
| &nbsp;&nbsp;&nbsp;Other income, net | 33 | 3 |  |  |  |  |  | 36 |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment | (260) |  |  |  |  |  |  | (260) |
| &nbsp;&nbsp;&nbsp;Interest expense | (315) | (114) | (22) | (7) | 34 | (203) | 8(e) | (627) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (535) | (143) | (22) | (7) | 66 | (203) |  | (844) |
| **Income/(Loss) Before Income Taxes** | 1747 | 77 | 38 | (22) | (77) | (203) |  | 1560 |
| &nbsp;&nbsp;&nbsp;Income tax expense/(benefit) | 498 |  | 2 | (1) | (19) | (50) | 8(f) | 430 |
| **Net Income/(Loss)** | 1249 | 77 | 36 | (21) | (58) | (153) |  | 1130 |
| &nbsp;&nbsp;&nbsp;Less: Cumulative dividends attributable to Series A Preferred Stock | 34 |  |  |  |  |  |  | 34 |
| **Net Income/(Loss) Available for Common Shareholders** | $1215 | $77 | $36 | $(21) | $(58) | $(153) |  | $1096 |

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**NRG ENERGY, INC. AND SUBSIDIARIES**

**UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Historical** | **Historical** | **Historical** | **Historical** | **Transactions Accounting** | **Transactions Accounting** | | |
| | | **LS Power Portfolio** | **LS Power Portfolio** | **LS Power Portfolio** | **Adjustments** | **Adjustments** | | |
| <br>**(In millions)** |<br>**NRG** | **Lightning as<br> Reclassified<br> (Note 3)** | **Linebacker <br> as<br> Reclassified<br> (Note 4)** | **CPower as<br> Reclassified<br> (Note 5)** | **Acquisition<br> Accounting<br> Adjustments** | **Assumed<br> Financing<br> Adjustments** | <br>**Notes** |<br>**Pro Forma<br> Combined** |
| **Revenue** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue | $28130 | $1615 | $523 | $133 | $(54) |  | 8(a) | $30347 |
| **Operating Costs and Expenses** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of operations (excluding depreciation and amortization shown below) | 22100 | 794 | 258 | 87 | (158) |  | 8(a) | 23081 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1403 | 246 | 25 | 22 | 216 |  | 8(b) | 1912 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment losses | 36 |  |  |  |  |  |  | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative costs | 2031 | 51 | 6 | 48 | (1) |  | 8(a) | 2135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 314 |  |  |  |  |  |  | 314 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related transaction and integration costs | 30 | 9 |  | 3 | 50 |  | 8(c) | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 25914 | 1100 | 289 | 160 | 107 |  |  | 27570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain/(Loss) on sale of assets | 208 | (3) |  |  |  |  |  | 205 |
| **Operating Income/(Loss)** | 2424 | 512 | 234 | (27) | (161) |  |  | 2982 |
| **Other Income/(Expense)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings of unconsolidated affiliates | 20 |  |  |  |  |  |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment losses on investments | (7) | (31) |  |  | 31 |  | 8(d) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 44 | 6 | 1 |  |  |  |  | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment | (382) | (16) |  |  |  |  |  | (398) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (651) | (270) | (41) | (12) | 64 | (368) | 8(e) | (1278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (976) | (311) | (40) | (12) | 95 | (368) |  | (1612) |
| **Income/(Loss) Before Income Taxes** | 1448 | 201 | 194 | (39) | (66) | (368) |  | 1370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense/(benefit) | 323 |  | 2 | (1) | (16) | (91) | 8(f) | 217 |
| **Net Income/(Loss)** | 1125 | 201 | 192 | (38) | (50) | (277) |  | 1153 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Cumulative dividends attributable to Series A Preferred Stock | 67 |  |  |  |  |  |  | 67 |
| **Net Income/(Loss) Available for Common Shareholders** | $1058 | $201 | $192 | $(38) | $(50) | $(277) |  | $1086 |

---

**NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION**

**Note 1. Basis of Pro Forma Presentation**

The pro forma financial information has been prepared using the acquisition method of accounting under U.S. GAAP, in accordance with Accounting Standards Codifications 805, "Business Combination" ("ASC 805"), and is derived from the audited and unaudited historical financial statements of NRG and the acquired entities.

The unaudited pro forma combined balance sheet as of June 30, 2025 combines the historical consolidated balance sheet of NRG and the historical balance sheets of the LS Power entities (as listed below) after giving effect to the acquisition of the LS Power Portfolio and the related transactions, as if they had occurred on June 30, 2025. The unaudited pro forma combined statements of operations for the year ended December 31, 2024, and the six months ended June 30, 2025 and 2024, combine the historical consolidated statements of operations of NRG and the historical statements of operations of the LS Power acquired entities (as listed below), after giving effect to the Transactions Accounting Adjustments, as if they had occurred on January 1, 2024.

The pro forma financial information has been prepared by NRG for illustrative and informational purposes only based on Article 11. The pro forma financial information is based on the Transactions Accounting Adjustments and assumptions and is not necessarily indicative of what NRG's consolidated statements of operations or consolidated balance sheet actually would have been had the Transactions Accounting Adjustments been completed as of the dates indicated, or what they will be for any future periods. The pro forma financial information does not purport to project the future financial position or operating results of NRG following the completion of the Acquisition. The pro forma financial information does not reflect any revenue enhancements, cost savings, operating synergies or restructuring costs that may be achievable or incurred prospectively in connection with the Acquisition and related transactions.

The acquisition method of accounting requires an acquirer to recognize and measure in its financial statements the identifiable assets acquired and the liabilities assumed at fair value at the acquisition date. The determination of fair value used in the Transactions Accounting Adjustments is preliminary and based on management's best estimates considering currently available information and certain assumptions that management believes are reasonable under the circumstances. The purchase price allocation presented is dependent upon certain valuations and other analyses that have not yet been finalized. The actual amounts eventually recorded for purchase accounting, including the identifiable intangibles and goodwill may differ materially from the information presented and could be materially impacted by changing fair value measurements caused by the volatility in the current market environment.

Under ASC 805, acquisition-related transactions costs are not included as a component of the consideration transferred and are expensed in the period in which the costs are incurred. Total costs related to the Acquisition are estimated to be approximately $73 million, of which $23 million were recorded in the historical Consolidated Statement of Operations of NRG for the six months ended June 30, 2025 and $50 million were accrued in the pro forma Combined Balance Sheet. Acquisition costs include primarily due diligence, valuation, legal and filing fees, professional and other consulting fees.

During the preparation of the unaudited pro forma combined financial information, management performed a preliminary analysis of the acquired entities financial information to identify differences in accounting policies as compared to those of NRG. Except as noted below, at this time NRG is not aware of any material differences in the accounting policies followed by NRG and those used by the acquired entities in preparing its consolidated financial statements that would have a material impact on the pro forma financial information.

During the preparation of the unaudited pro forma combined financial information, management identified that LS Power acquired entities elected to expense all maintenance costs to costs of operations in the period incurred, which is different than NRG's policy to capitalize a portion of maintenance costs that extend the life of an asset and depreciate over the expected period of benefit. The Company recorded pro forma adjustments aiming to align the recognition of the maintenance costs of the LS Power entities based on information currently available (see Note 8(a),(b)). Upon consummation of the LS Power Portfolio acquisition, when additional information is available and additional analysis is performed, the Company may adjust such amounts and may identify other policy differences.

**Note 2. Preliminary Estimated Purchase Price and Assumed Financing**

The purchase price for the anticipated acquisition of the LS Power Portfolio will consist of Stock Consideration of 24,250,000 shares of common stock of the Company, par value $0.01 per share, and Cash Consideration of $6.4 billion, subject to certain adjustments set forth in the Purchase Agreement. The pro forma information assumes that the Company will be able to secure permanent financing and will not use the Bridge Facility.

The pro forma financial information gives effect to the following assumed sources of funds to satisfy the Cash Consideration:

&nbsp;&nbsp;&nbsp;&nbsp;· proceeds of approximately $4.3 billion from issuance of $4.4 billion secured and unsecured senior notes
due in 5 to 10.25 years at estimated weighted average interest rate of 5.75%, net of estimated issuance costs;

&nbsp;&nbsp;&nbsp;&nbsp;· proceeds of approximately $2.0 billion from the Company's Revolving Credit Facility; and

&nbsp;&nbsp;&nbsp;&nbsp;· cash on hand.

The pro forma information uses a weighted average interest rate of 5.75% for the senior secured and unsecured notes. A 100 basis point increase or decrease in the assumed weighted average interest rate would change the pro forma interest expense by $44 million for the fiscal year ended December 31, 2024 and $22 million for each of the six months ended June 30, 2025 and 2024.

The assumed sources of funds and interest rates are based on currently available information and assumptions. There is no guarantee that the actual sources of funds and interest rates used to complete the anticipated Acquisition will be the same as the assumed sources and interest rates presented in the pro forma financial information. Depending on actual sources of funds used to complete the anticipated Acquisition, the financial position and the operating results of NRG following the Acquisition may be materially different from the pro forma financial information. Additionally, changes in the fair value of common stock of NRG up to the closing date of the acquisition of the LS Power Portfolio could significantly change the preliminary amount of consideration transferred used in these unaudited pro forma combined financial statements and the amount recognized as goodwill.

**Note 3. Reclassification Adjustments — Lightning**

During the preparation of the unaudited pro forma combined financial statements, management performed a preliminary analysis of the Lightning successor, Fund III Projects and Gridiron financial information to identify differences in Lightning's financial statement presentation as compared to the presentation of NRG. The below reclassification adjustments represent NRG's best estimates based upon the information currently available to NRG. The reclassification adjustments are subject to change once more detailed information is available and additional analysis is performed.

***Balance Sheet Reclassifications***

**Lightning**

**Unaudited Condensed Consolidated Balance Sheet**

**As of June 30, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial Statements** | <br>**Presentation in Unaudited Pro Forma<br> Combined Financial Statements** |<br>**Lightning Before<br> Reclassification** |<br>**Reclassification** |<br>**Lightning as<br> Reclassified** |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | Restricted cash | $50 | $— | $50 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | Accounts receivable, net | 168 | 1 (a) | 169 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - affiliates |  | 1 | (1) (a) |  |
| &nbsp;&nbsp;&nbsp;Inventory | Inventory | 126 |  | 126 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | Prepayments and other current assets | 31 | 53 (b) | 84 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | Derivative instruments | 501 |  | 501 |
| &nbsp;&nbsp;&nbsp;Deposits |  | 33 | (33) (b) |  |
| &nbsp;&nbsp;&nbsp;Other current assets |  | 20 | (20) (b) |  |
| &nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | Property, plant and equipment, net | 6567 |  | 6567 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | Other intangible assets, net | 31 |  | 31 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities, long term | Derivative instruments | 537 |  | 537 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets, net | Operating lease right-of-use assets, net | 27 |  | 27 |
| &nbsp;&nbsp;&nbsp;Goodwill | Goodwill | 128 |  | 128 |
| &nbsp;&nbsp;&nbsp;Other noncurrent assets | Other non-current assets | 136 |  | 136 |
| &nbsp;&nbsp;&nbsp;**Total Assets** |  | $**8356** | **—** | $**8356** |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | Current portion of long-term debt and finance leases | $8 | $— | $8 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities ST | Current portion of operating lease liabilities | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | Accounts payable | 195 | (113) (c) | 82 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | Derivative instruments | 526 |  | 526 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | Deferred revenue current | 2 |  | 2 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | Accrued expenses and other current liabilities | 43 | 113 (c) | 156 |
| &nbsp;&nbsp;&nbsp;Long term debt | Long-term debt and finance leases | 3212 |  | 3212 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | Derivative instruments | 537 |  | 537 |
| &nbsp;&nbsp;&nbsp;Asset retirement obligations |  | 71 | (71) (d) |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities LT | Non-current operating lease liabilities | 26 |  | 26 |
| &nbsp;&nbsp;&nbsp;Other long term liabilities | Other non-current liabilities | 9 | 71 (d) | 80 |
| **Stockholders' Equity/Member's Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Member's equity | Member's equity | 3726 |  | 3726 |
| **Total Liabilities and Stockholders' Equity/Member's Equity** |  | $**8356** | $**—** | $**8356** |

---

(a) Reclassification from Accounts receivable - affiliates to Accounts receivable, net

(b) Reclassification from Deposits and Other current assets to Prepayments and other current assets

(c) Reclassification from Accounts payable and accrued expenses to Accrued expenses and other current liabilities

(d) Reclassification from Asset retirement obligations to Other non-current liabilities

***Statement of Operations Reclassifications***

**Lightning (*Successor*)**

**Unaudited Condensed Consolidated Statement of Operations**

**For the Six Months Ended June 30, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial<br> Statements** | **Presentation in Unaudited Pro Forma<br> Combined Financial Statements** | **Lightning Before<br> Reclassification** | **Reclassification** | **Lightning as<br> Reclassified** |
| Total revenues | Revenue | $887 | $— | $887 |
| Fuel and transportation | Cost of operations (excluding depreciation and amortization shown below) | 432 | 204 (a) | 636 |
| Loss on risk management activities |  | 9 | (9) (a) |  |
| Operating and maintenance |  | 192 | (192) (a) |  |
| Depreciation | Depreciation and amortization | 168 |  | 168 |
| General and administrative | Selling, general and administrative costs | 23 |  | 23 |
| Accretion |  | 3 | (3) (a) |  |
| Other loss, net | Other income, net | (1) | 1 (b) |  |
| Interest expense, net | Interest expense | (119) | (1) (b) | (120) |
| **Net Loss** |  | $**(60)** | $**—** | $**(60)** |

---

(a) Reclassification from Loss of risk management activities, Operating and maintenance, and Accretion to Cost of operations

(b) Reclassification of interest income from Interest expense, net to Other income, net

**Fund III Projects and Gridiron**

**Unaudited Condensed Combined Statement of Operations**

**For the Six Months Ended June 30, 2024**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical <br> Financial Statements** | <br>**Presentation in Unaudited Pro<br> Forma Combined Financial<br> Statements** |<br>**Fund III <br> Projects Before<br> Reclassification** |<br>**Gridiron<br> Before<br> Reclassification** |<br>**Reclassification** |<br>**Fund III <br> Projects and<br> Gridiron as<br> Reclassified** |
| &nbsp;&nbsp;&nbsp;Total revenues | Revenue | $553 | $189 | $— | $742 |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | Cost of operations (excluding depreciation and amortization shown below) | 186 | 71 | 148 (a) | 405 |
| &nbsp;&nbsp;&nbsp;Loss/(Gain) on risk management activities |  | 19 | (6) | (13) (a) |  |
| &nbsp;&nbsp;&nbsp;Operating and maintenance |  | 105 | 28 | (133) (a) |  |
| &nbsp;&nbsp;&nbsp;Depreciation | Depreciation and amortization | 60 | 34 |  | 94 |
| &nbsp;&nbsp;&nbsp;General and administrative | Selling, general and administrative costs | 20 | 3 |  | 23 |
| &nbsp;&nbsp;&nbsp;Accretion |  | 2 |  | (2) (a) |  |
| &nbsp;&nbsp;&nbsp;Equity in net loss of unconsolidated affiliate | Equity in earnings/(losses) of unconsolidated affiliates | (1) |  |  | (1) |
|  | Impairment losses on investments |  |  | (31) (b) | (31) |
| &nbsp;&nbsp;&nbsp;Other loss, net | Other income, net | (34) |  | 37 (b)(c) | 3 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | Interest expense | (89) | (19) | (6) (c) | (114) |
| &nbsp;&nbsp;&nbsp;**Net Income** |  | $**37** | $**40** | $**—** | $**77** |

---

(a) Reclassification from Loss/(Gain) on risk management activities, Operating and maintenance, and Accretion to Cost of operations

(b) Reclassification from Other loss, net to Impairment losses on investments

(c) Reclassification of interest income from Interest expense, net to Other income, net

**Lightning (*Successor, Fund III Projects and Gridiron*)**

**Combined Statement of Operations**

**For the Year Ended December 31, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical<br> Financial Statements** | **Presentation in <br> Unaudited Pro Forma <br> Combined Financial <br> Statements** | **Lightning<br> Before<br> Reclassification** | **Fund III <br> Project Before<br> Reclassification** | **Gridiron <br> Before<br> Reclassification** | **Reclassification** | **Lightning et<br> al. as<br> Reclassified** |
| &nbsp;&nbsp;&nbsp;Total revenues | Revenue | $522 | $800 | $293 | $— | $1615 |
| &nbsp;&nbsp;&nbsp;Fuel and transportation | Cost of operations (excluding depreciation and amortization shown below) | 190 | $248 | $86 | $270 (a) | 794 |
| &nbsp;&nbsp;&nbsp;(Gain)/Loss on risk management activities |  | (104) | 42 | 19 | 43 (a) |  |
| &nbsp;&nbsp;&nbsp;Operating and maintenance |  | 140 | 134 | 34 | (308) (a) |  |
| &nbsp;&nbsp;&nbsp;Depreciation | Depreciation and amortization | 132 | 72 | 42 |  | 246 |
| &nbsp;&nbsp;&nbsp;General and administrative | Selling, general and administrative costs | 39 | 18 | 3 | (9) (b) | 51 |
| &nbsp;&nbsp;&nbsp;Accretion |  | 2 | 3 |  | (5) (a) |  |
|  | Acquisition-related transaction and integration costs |  |  |  | 9 (b) | 9 |
|  | Gain/(Loss) on sale of assets |  |  |  | (3) (c) | (3) |
|  | Impairment losses on investments |  |  |  | (31) (c) | (31) |
| &nbsp;&nbsp;&nbsp;Other (loss) income, net | Other income, net | (9) | (31) | (3) | 49 (c)(e) | 6 |
|  | (Loss)/Gain on debt extinguishment |  |  |  | (16) (d) | (16) |
| &nbsp;&nbsp;&nbsp;Interest expense, net | Interest expense | (131) | (116) | (24) | 1 (d)(e) | (270) |
| &nbsp;&nbsp;&nbsp;**Net (Loss)/Income** |  | $**(17)** | $**136** | $**82** | $**—** | $**201** |

---

(a) Reclassification from (Gain)/Loss of risk management activities, Operating and maintenance, and Accretion to Cost of operations

(b) Reclassification from General and administrative to Acquisition-related transaction and integration costs

(c) Reclassification from Other income (loss), net to Gain/(Loss) on sale of assets and Impairment losses on investments

(d) Reclassification from Interest expense, net to (Loss)/Gain on debt extinguishment

(e) Reclassification of interest income from Interest expense, net to Other income, net

**Note 4. Reclassification Adjustments — Linebacker**

During the preparation of the unaudited pro forma combined financial statements, management performed a preliminary analysis of the Linebacker financial information to identify differences in Linebacker's financial statement presentation as compared to the presentation of NRG. The below reclassification adjustments represent NRG's best estimates based upon the information currently available to NRG. The reclassification adjustments are subject to change once more detailed information is available and additional analysis is performed.

***Balance Sheet Reclassifications***

**Linebacker**

**Unaudited Condensed Consolidated Balance Sheet**

**As of June 30, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial <br> Statements** | <br>**Presentation in Unaudited Pro Forma<br> Combined Financial Statements** |<br>**Linebacker<br> Before<br> Reclassification** |<br>**Reclassification** |<br>**Linebacker as<br> Reclassified** |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | Restricted cash | $22 | $— | $22 |
| &nbsp;&nbsp;&nbsp;Accounts receivable and affiliates | Accounts receivable, net | 24 |  | 24 |
| &nbsp;&nbsp;&nbsp;Inventory | Inventory | 37 |  | 37 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | Prepayments and other current assets | 14 |  | 14 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities | Derivative instruments | 66 |  | 66 |
| &nbsp;&nbsp;&nbsp;Property, plant, and equipment, net | Property, plant and equipment, net | 684 |  | 684 |
| &nbsp;&nbsp;&nbsp;Assets from risk management activities, long term | Derivative instruments | 55 |  | 55 |
| **Total Assets** |  | $**902** | **—** | $**902** |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Short term debt |  | $7 | $(7) (a) | $— |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | Current portion of long-term debt and finance leases | 9 | 7 (a) | 16 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | Accounts payable | 43 | (38) (b)(c) | 5 |
| &nbsp;&nbsp;&nbsp;Accounts payable - affiliate |  | 1 | (1) (b) |  |
|  | Accrued expenses and other current liabilities |  | 39 (c) | 39 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities | Derivative instruments | 65 |  | 65 |
| &nbsp;&nbsp;&nbsp;Long term debt | Long-term debt and finance leases | 632 |  | 632 |
| &nbsp;&nbsp;&nbsp;Liabilities from risk management activities, long term | Derivative instruments | 46 |  | 46 |
| &nbsp;&nbsp;&nbsp;Asset retirement obligations | Other non-current liabilities | 2 |  | 2 |
| **Stockholders' Equity/ Members Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Member's equity | Member's equity | 97 |  | 97 |
| **Total Liabilities and Stockholders' Equity/Member's Equity** |  | $**902** | $**—** | $**902** |

---

(a) Reclassification from Short term debt to Current portion of long-term debt and finance leases

(b) Reclassification from Accounts payable - affiliate to Accounts payable

(c) Reclassification from Accounts payable and accrued expenses to Accrued expenses and other current liabilities

***Statement of Operations Reclassifications***

**Linebacker**

**Unaudited Condensed Consolidated Statement of Operations**

**For the Six Months Ended June 30, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial<br> Statements** | **Presentation in Unaudited Pro Forma<br> Combined Financial Statements** | **Linebacker<br> Before<br> Reclassification** | **Reclassification** | **Linebacker as<br> Reclassified** |
| Total revenues | Revenue | $223 | $— | $223 |
| Fuel and transportation | Cost of operations (excluding depreciation and amortization shown below) | 126 | 64 (a) | 190 |
| Loss on risk management activities |  | 8 | (8) (a) |  |
| Operating and maintenance |  | 56 | (56) (a) |  |
| Depreciation | Depreciation and amortization | 13 |  | 13 |
| General and administrative | Selling, general and administrative costs | 2 |  | 2 |
| Interest expense, net | Interest expense | (3) |  | (3) |
| Income tax expense | Income tax expense/(benefit) | 1 |  | 1 |
| **Net Income** |  | $**14** | $**—** | $**14** |

---

(a) Reclassification from Loss on risk management activities and Operating and maintenance to Cost of operations

**Linebacker**

**Unaudited Condensed Consolidated Statement of Operations**

**For the Six Months Ended June 30, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial<br> Statements** | **Presentation in Unaudited Pro Forma<br> Combined Financial Statements** | **Linebacker<br> Before<br> Reclassification** | **Reclassification** | **Linebacker as<br> Reclassified** |
| Total revenues | Revenue | $201 | $— | $201 |
| Fuel and transportation | Cost of operations (excluding depreciation and amortization shown below) | 81 | 44 (a) | 125 |
| Loss on risk management activities |  | 10 | (10) (a) |  |
| Operating and maintenance |  | 34 | (34) (a) |  |
| Depreciation | Depreciation and amortization | 13 |  | 13 |
| General and administrative | Selling, general and administrative costs | 3 |  | 3 |
| Interest expense, net | Interest expense | (22) |  | (22) |
| Income tax expense | Income tax expense/(benefit) | 2 |  | 2 |
| **Net Income** |  | $**36** | $**—** | $**36** |

---

(a) Reclassification from Loss on risk management activities and Operating and maintenance to Cost of operations

**Linebacker**

**Consolidated Statement of Operations**

**For the Year Ended December 31, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial<br> Statements** | **Presentation in Unaudited Pro Forma<br> Combined Financial Statements** | **Linebacker<br> Before<br> Reclassification** | **Reclassification** | **Linebacker as<br> Reclassified** |
| Total revenues | Revenue | $523 | $— | $523 |
| Fuel and transportation | Cost of operations (excluding depreciation and amortization shown below) | 162 | 96 (a) | 258 |
| Loss on risk management activities |  | 11 | (11) (a) |  |
| Operating and maintenance |  | 85 | (85) (a) |  |
| Depreciation | Depreciation and amortization | 25 |  | 25 |
| General and administrative | Selling, general and administrative costs | 6 |  | 6 |
| Interest expense, net | Interest expense | (40) | (1) (b) | (41) |
| Income tax expense | Income tax expense/(benefit) | 2 |  | 2 |
|  | Other income, net |  | 1 (b) | 1 |
| **Net Income** |  | $**192** | $**—** | $**192** |

---

(a) Reclassification from Loss on risk management activities and Operating and maintenance to Cost of operations

(b) Reclassification of interest income from interest expense, net to Other income, net

**Note 5. Reclassification Adjustments — CPower**

During the preparation of the unaudited pro forma combined financial statements, management performed a preliminary analysis of the CPower financial information to identify differences in CPower's financial statement presentation as compared to the presentation of NRG. The below reclassification adjustments represent NRG's best estimates based upon the information currently available to NRG. The reclassification adjustments are subject to change once more detailed information is available and additional analysis is performed.

***Balance Sheet Reclassifications***

**CPower**

**Unaudited Condensed Consolidated Balance Sheet**

**As of June 30, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**(In millions)**<br>**Presentation in Historical Financial<br> Statements** | <br>**Presentation in Unaudited Pro Forma<br> Combined Financial Statements** |<br>**CPower Before<br> Reclassification** |<br>**Reclassification** |<br>**CPower as<br> Reclassified** |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | Cash and cash equivalents | $11 | $— | $11 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable, net | Accounts receivable, net | 16 | 10 (a) | 26 |
| &nbsp;&nbsp;&nbsp;Unbilled accounts receivable |  | 10 | (10) (a) |  |
| &nbsp;&nbsp;&nbsp;Other current assets | Prepayments and other current assets | 3 |  | 3 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | Property, plant and equipment, net | 11 |  | 11 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | Other intangible assets, net | 110 |  | 110 |
| &nbsp;&nbsp;&nbsp;Goodwill | Goodwill | 127 |  | 127 |
| &nbsp;&nbsp;&nbsp;Lease Right of Use Asset | Operating lease right-of-use assets, net | 2 |  | 2 |
| &nbsp;&nbsp;&nbsp;Other assets | Other non-current assets | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;**Total Assets** |  | $**291** | $**—** | $**291** |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | Accounts payable | $8 | $— | $8 |
| &nbsp;&nbsp;&nbsp;Accrued customer payments | Accrued expenses and other current liabilities | 38 | 17 (b) | 55 |
| &nbsp;&nbsp;&nbsp;Accrued payroll, benefits, and other |  | 6 | (6) (b) |  |
| &nbsp;&nbsp;&nbsp;Debt - short term | Current portion of long-term debt and finance leases | 26 |  | 26 |
| &nbsp;&nbsp;&nbsp;Lease liability - short term | Current portion of operating lease liabilities | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Other current liabilities |  | 11 | (11) (b) |  |
| &nbsp;&nbsp;&nbsp;Debt - long term | Long-term debt and finance leases | 84 |  | 84 |
| &nbsp;&nbsp;&nbsp;Debt due to related parties | Debt due to related parties | 17 |  | 17 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities due to related parties | Accrued liabilities due to related parties | 3 |  | 3 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | Deferred income taxes | 18 |  | 18 |
| &nbsp;&nbsp;&nbsp;Lease Liability - long term | Non-current operating lease liabilities | 1 |  | 1 |
| **Stockholders' Equity/Members' Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Members' equity | Member's equity | 78 |  | 78 |
| **Total Liabilities and Stockholders' Equity/Members' Equity** |  | $**291** | $**—** | $**291** |

---

(a) Reclassification from Unbilled accounts receivable, net to Accounts receivable, net

(b) Reclassification from Accrued payroll, benefits, and other and Other current liabilities to Accrued expenses and other current liabilities

***Statement of Operations Reclassifications***

**CPower**

**Unaudited Condensed Consolidated Statement of Operations**

**For the Six Months Ended June 30, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial<br> Statements** | **Presentation in Unaudited Pro Forma<br> Combined Financial Statements** | **CPower Before<br> Reclassification** | **Reclassification** | **CPower as<br> Reclassified** |
| Revenue | Revenue | $64 | $— | $64 |
| Cost of revenue | Cost of operations (excluding depreciation and amortization shown below) | 45 |  | 45 |
| Amortization & depreciation | Depreciation and amortization | 11 |  | 11 |
| General & administrative | Selling, general and administrative costs | 6 | 20 (a) | 26 |
| Compensation |  | 20 | (20) (a) |  |
| Interest expense | Interest expense | (7) |  | (7) |
| Provision for income tax expense (benefit) | Income tax expense/(benefit) | (1) |  | (1) |
| **Net Loss** |  | $**(24)** | $**—** | $**(24)** |

---

(a) Reclassification from Compensation to Selling, general and administrative costs

**CPower**

**Unaudited Condensed Consolidated Statement of Operations**

**For the Six Months Ended June 30, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial<br> Statements** | **Presentation in Unaudited Pro Forma<br> Combined Financial Statements** | **CPower Before<br> Reclassification** | **Reclassification** | **CPower as<br> Reclassified** |
| Revenue | Revenue | $68 | $— | $68 |
| Cost of revenue | Cost of operations (excluding depreciation and amortization shown below) | 45 |  | 45 |
| Amortization & depreciation | Depreciation and amortization | 11 |  | 11 |
| General & administrative | Selling, general and administrative costs | 7 | 19 (a) | 26 |
| Compensation |  | 19 | (19) (a) |  |
| Transaction & other expenses | Acquisition-related transaction and integration costs | 1 |  | 1 |
| Interest expense | Interest expense | (7) |  | (7) |
| Provision for income tax expense (benefit) | Income tax expense/(benefit) | (1) |  | (1) |
| **Net Loss** |  | $**(21)** | $**—** | $**(21)** |

---

(a) Reclassification from Compensation to Selling, general and administrative costs

**CPower**

**Consolidated Statement of Operations**

**For the Year Ended December 31, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)**<br>**Presentation in Historical Financial<br> Statements** | **Presentation in Unaudited Pro Forma<br> Combined Financial Statements** | **CPower Before<br> Reclassification** | **Reclassification** | **CPower as<br> Reclassified** |
| Revenue | Revenue | $133 | $— | $133 |
| Cost of revenue | Cost of operations (excluding depreciation and amortization shown below) | 87 |  | 87 |
| Amortization & depreciation | Depreciation and amortization | 22 |  | 22 |
| General & administrative | Selling, general and administrative costs | 13 | 35 (a) | 48 |
| Compensation |  | 35 | (35) (a) |  |
| Transaction & other expenses | Acquisition-related transaction and integration costs | 3 |  | 3 |
| Interest expense | Interest expense | (12) |  | (12) |
| Provision for income tax expense (benefit) | Income tax expense/(benefit) | (1) |  | (1) |
| **Net Loss** |  | $**(38)** | $**—** | $**(38)** |

---

(a) Reclassification from Compensation to Selling, general and administrative costs

**Note 6. Preliminary Calculation of Estimated Consideration and Preliminary Purchase Price Allocation for the Anticipated Acquisition of LS Power Portfolio**

**Estimated Consideration**

---

| | |
|:---|:---|
|  | **(In millions)** |
| &nbsp;&nbsp;&nbsp;Estimated Cash Consideration | $6372 |
| &nbsp;&nbsp;&nbsp;Estimated Stock Consideration: 24,250,000 common shares of NRG, par value $0.01 per share, based on NRG share price of $166.08 on September 15, 2025 | 4027 |
| **Total Estimated Consideration** | $10399 |

---

The estimated Stock Consideration is calculated using the closing price of NRG common stock on September 15, 2025 (as practicable date). The actual fair value of NRG common stock to be issued will depend on the per share price of NRG common stock at the closing of the LS Power Portfolio acquisition, and therefore, the actual consideration will fluctuate with the market price of NRG common stock until the acquisition is consummated. The following table shows the effect of changes in NRG stock price and the resulting impact on the estimated consideration and the estimated amount recognized as goodwill of $3,037 million:

---

| | | | |
|:---|:---|:---|:---|
| **Change in Stock Price** | **Stock Price** | **Estimated<br> Consideration<br> (in millions)** | **Estimated<br> Goodwill<br> (in millions)** |
| Increase of 10% | $182.69 | $10802 | 3440 |
| Decrease of 10% | $149.47 | $9997 | 2634 |

---

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at fair value on the acquisition date. The Acquisition Accounting Adjustments included herein are preliminary and based on estimates of the fair value and useful lives of the assets acquired and liabilities assumed and have been prepared to illustrate the estimated effect of the Acquisition.

The table below represents an initial allocation of the preliminary estimated consideration to tangible and intangible assets to be acquired and liabilities to be assumed based on preliminary estimated fair values as of June 30, 2025:

---

| | |
|:---|:---|
|  | **(In millions)** |
| &nbsp;&nbsp;&nbsp;Current assets | $1114 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | 10321 |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 622 |
| &nbsp;&nbsp;&nbsp;Current liabilities (including $60 million Current portion of long-term debt and finance leases) | (1000) |
| &nbsp;&nbsp;&nbsp;Long-term debt and finance leases | (3302) |
| &nbsp;&nbsp;&nbsp;Non-current liabilities | (713) |
| &nbsp;&nbsp;&nbsp;Identifiable intangible assets attributable to LS Power Portfolio | 320 |
| &nbsp;&nbsp;&nbsp;Goodwill | 3037 |
| **Total Estimated Consideration** | $10399 |

---

The preliminary fair value of the identifiable intangible assets of $320 million, which includes customer relationships, technology related assets, trade names and contracts, will be amortized over the estimated useful life. The estimated weighted average useful life is approximately 11 years. The preliminary useful lives of the intangible assets were determined based on the expected pattern of the economic benefit. The expected amortization for the six months ended December 31, 2025 is currently expected to be $18 million. The expected amortization for the five years following the Acquisition is currently estimated to be $36 million per year. Goodwill represents the excess of the preliminary estimated consideration over the estimated fair value of the underlying net assets acquired. Goodwill will not be amortized but instead will be reviewed for impairments at least annually, absent any indicators for impairment. Goodwill is attributable to the planned growth and synergies expected to be achieved from the combining the operation of LS Power acquired entities with NRG's existing business. The goodwill recorded is expected to be deductible for tax purposes.

The final purchase price allocation depends on certain valuations and other studies that have not yet been completed. The final determination of the purchase price allocation, upon the consummation of the Acquisition, will be based on the net assets acquired as of that date and will depend on a number of factors, which cannot be predicted with any certainty at this time. The purchase price allocation may change materially based on receipt of more detailed information. Accordingly, the pro forma purchase price allocation is preliminary and is subject to further adjustments as additional information becomes available and as additional analyses and final valuations are completed. There can be no assurance that these additional analyses and final valuations will not result in significant changes to the estimates of fair value set forth above.

**Note 7. Adjustments to Unaudited Pro Forma Combined Balance Sheet**

The Transactions Accounting Adjustments reflected in the unaudited pro forma combined balance sheet are detailed below:

**(a)** Reflects the estimated proceeds from the assumed financing transactions and cash outflow to complete the anticipated acquisition of the LS Power Portfolio as detailed below:

---

| | |
|:---|:---|
|  | **(In millions)** |
| **Estimated net cash received from assumed financing** |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of secured and unsecured corporate debt, net of estimated issuance costs | $4371 |
| &nbsp;&nbsp;&nbsp;Proceeds from Revolving Credit Facility | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total estimated net cash received from assumed financing | $6371 |
| **Estimated Cash Consideration** |  |
| &nbsp;&nbsp;&nbsp;Use of proceeds from assumed financing, net of issuance costs | $(6371) |
| &nbsp;&nbsp;&nbsp;Cash on hand | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total estimated Cash Consideration | $(6372) |

---

**(b)** Reflects the elimination of $98 million of accounts receivable and $98 million of accounts payable, representing receivables and payables between NRG and LS Power acquired entities.

**(c)** Reflects the write off of $12 million of short-term deferred financing costs related to the Bridge Facility as the Company expects to secure permanent financing and will not use the Bridge Facility to complete the acquisition of LS Power Portfolio.

**(d)** Reflects the removal of historical goodwill of LS Power acquired entities of $255 million and recognition of preliminary estimated goodwill of $3,037 million representing the excess of estimated purchase price over the estimated fair value of the acquired assets and liabilities, including the estimated fair value of identifiable intangible assets and related deferred income taxes.

**(e)** Reflects the removal of historical intangible assets of LS Power acquired entities of $141 million and recognition of preliminary estimated identifiable intangible assets of $320 million.

**(f)** Reflects the removal of Other non-current assets and Account receivable, net historical balances that are excluded from the scope of the LS Power Portfolio acquisition.

**(g)** The table below reflects the Transactions Accounting Adjustments to Current portion of long-term debt and finance leases and Long-term debt and finance leases:

---

| | | |
|:---|:---|:---|
| **(In millions)** | **Acquisition Accounting<br> Adjustments** | **Assumed Financing<br> Adjustments** |
| Borrowing under the Company's Revolving Credit Facility (to fund the acquisition of the LS Power Portfolio) | $— | $2000 |
| Reclassification of assumed debt from long-term debt to short-term debt | 43 |  |
| Removal of Linebacker's and CPower's debt as NRG is not assuming that debt | (42) |  |
| Removal of Lightning's unamortized deferred financing costs as a result of purchase accounting | 9 |  |
| &nbsp;&nbsp;&nbsp;**Total adjustments to Current portion of long-term debt and finance leases** | $**10** | $**2000** |
| Issuance of secured and unsecured debt, net of deferred financing costs (to fund the acquisition of the LS Power Portfolio) | $— | $4371 |
| Removal of Linebacker's and CPower's debt as NRG is not assuming that debt | (716) |  |
| Removal of Lightning's unamortized deferred financing costs as a result of purchase accounting | 50 |  |
| Reclassification of assumed debt from long-term debt to short-term debt | (43) |  |
| Adjustment to record assumed outstanding debt at fair value as a result of purchase accounting | 83 |  |
| &nbsp;&nbsp;&nbsp;**Total adjustments to Long-term debt and finance leases** | $**(626)** | $**4371** |

---

**(h)** Reflects the accrual of $50 million of expected acquisition costs for the anticipated acquisition of the LS Power Portfolio that are not yet recorded in NRG balance sheet as of June 30, 2025, and $12 million additional payments on the Bridge Facility.

**(i)** Reflects $2 million of long-term deferred tax liabilities recorded as a result of the anticipated acquisition of the LS Power Portfolio.

**(j)** Reflects elimination of the intercompany note payable and related accrued interest included in the CCS Power Finance Co, LLC historical balances payable to CCS Intermediate Holdco, LLC.

**(k)** Adjustment to reflect the issuance of 24,250,000 common shares of NRG, par value $0.01 per share, based on NRG share price of $166.08 on September 15, 2025 as part of the Stock Consideration.

**(l)** Adjustments to Retained earnings include:

---

| | |
|:---|:---|
|  | **(In millions)** |
| **Acquisition Accounting Adjustments:** |  |
| &nbsp;&nbsp;&nbsp;Accrual of expected acquisition costs | $(50) |
| **Assumed Financing Adjustments:** |  |
| &nbsp;&nbsp;&nbsp;Write-off of short-term deferred financing costs related to the Bridge Facility | $(12) |
| &nbsp;&nbsp;&nbsp;Accrual of additional payments on Bridge Facility | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total adjustments to Assumed Financing Adjustments** | $**(24)** |

---

**(m)** Reflects the removal of LS Power acquired entities historical Member's equity.

**Note 8. Adjustments to Unaudited Pro Forma Statements of Operations**

The Transactions Accounting Adjustments reflected in the unaudited pro forma combined statements of operations are detailed below:

**(a)** Adjustments to Revenue, Cost of Operations and Selling, general and administrative costs include:

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **For the six months<br> ended June 30, 2025** | **For the six months<br> ended June 30, 2024** | **For the year ended<br> December 31, 2024** |
| **Acquisition Accounting Adjustments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Adjustments to Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eliminate transactions between NRG and LS Power acquired entities | $**(59)** | $**(27)** | $**(54)** |
| &nbsp;&nbsp;&nbsp;**Adjustments to Costs of operations** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eliminate transactions between NRG and LS Power acquired entities | $(58) | $(27) | $(53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to align the capitalization of certain maintenance costs | (65) | (40) | (105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total adjustments to Costs of operations** | $**(123)** | $**(67)** | $**(158)** |
| &nbsp;&nbsp;&nbsp;**Adjustments to Selling, general and administrative costs** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eliminate transactions between NRG and LS Power acquired entities | $**(1)** | $**—** | $**(1)** |

---

**(b)** Adjustments to Depreciation and amortization expense include:

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **For the six months<br> ended June 30, 2025** | **For the six months<br> ended June 30, 2024** | **For the year ended<br> December 31, 2024** |
| Reversal of historical depreciation expense | (183) | (109) | (275) |
| Reversal of historical amortization of intangible assets | (9) | (9) | (18) |
| Recognition of depreciation expense based on the estimated fair value and estimated useful life of property, plant and equipment | 231 | 231 | 462 |
| Recognition of amortization expense based on the estimated fair value and estimated useful life of intangible assets | 18 | 18 | 36 |
| Adjustments to align the capitalization of certain maintenance costs | 3 | 2 | 11 |
| &nbsp;&nbsp;&nbsp;**Acquisition Accounting Adjustments** | $**60** | $**133** | $**216** |

---

**(c)** Reflects $50 million of expected acquisition costs recorded in the unaudited pro forma combined statement of operations for the year ended December 31, 2024 and the six months ended June 30, 2024, in addition to the $23 million that are already included in NRG's historical consolidated statement of operations for the six months ended June 30, 2025.

**(d)** Adjustment to remove impairment charge of $31 million for the six month ending June 30, 2024 and the year ending December 31, 2024, and loss of $1 million for the six month ending June 30, 2024, related to an equity method investment that is excluded from the scope of the LS Power Portfolio acquisition.

**(e)** Adjustments to Interest expense include:

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **For the six months<br> ended June 30, 2025** | **For the six months<br> ended June 30, 2024** | **For the year ended<br> December 31, 2024** |
| Reversal of historical Linebacker and CPower interest expense (unassumed debt) | $10 | $29 | $53 |
| Amortization of the difference between the fair value and the carrying value of LS Power assumed debt | 6 | 5 | 11 |
| &nbsp;&nbsp;&nbsp;**Total Acquisition Accounting Adjustments** | $**16** | $**34** | $**64** |
| Interest expense on newly issued corporate debt and incremental interest expense on Revolving Credit Facility | (151) | (177) | (342) |
| Adjustment to remove the impact of deferred financing costs related to the Bridge Facility | 2 | (14) | (14) |
| Adjustment to record additional payments on the Bridge Facility |  | (12) | (12) |
| &nbsp;&nbsp;&nbsp;**Assumed Financing Adjustments** | $**(149)** | $**(203)** | $**(368)** |

---

**(f)** Reflects income tax effect of the Transactions Accounting Adjustments based on a combined estimated tax rate of 24.73% for all periods presented.