Vistra Stock

Vistra Corp., through its subsidiaries (Vistra), operates an integrated retail electricity and power generation company. The company combines an innovative, customer-centric approach to retail sales with safe, reliable, diverse, and efficient power generation. The company’s integrated power generation and wholesale operation allows it to efficiently obtain the electricity needed to serve its customers. The integrated model enables the company to structure products and contracts in a way that offers significant value compared to stand-alone retail electric providers.

The company brings its products and services to market in 20 states and the District of Columbia, including all major competitive wholesale power markets in the U.S. The company serves approximately 4 million residential, commercial, and industrial retail customers with electricity and natural gas. The company’s generation fleet totals approximately 37,000 megawatts of generation capacity powered by a diverse portfolio, including natural gas, nuclear, coal, solar, and battery energy storage facilities.

Segments

The company operates through six segments: Retail, Texas, East, West, Sunset and Asset Closure.

The Retail segment engages in retail sales of electricity and natural gas to residential, commercial and industrial customers. Substantially all of these activities are conducted by TXU Energy, Ambit, Dynegy Energy Services, Homefield Energy and U.S. Gas & Electric across 19 states in the U.S.

The Texas and East segments are engaged in electricity generation, wholesale energy sales and purchases, commodity risk management activities, fuel production and fuel logistics management. The Texas segment represents results from Vistra's electricity generation operations in the ERCOT market, other than assets that are now part of the Sunset or Asset Closure segments. The East segment represents results from Vistra's electricity generation operations in the Eastern Interconnection of the U.S. electric grid, other than assets that are part of the Sunset or Asset Closure segments, and includes operations in the PJM, ISO-NE and NYISO markets. The company determined it was appropriate to aggregate results from these markets into one reportable segment, East, given similar economic characteristics.

The West segment represents results from the CAISO market, including the company’s battery ESS projects at its Moss Landing power plant site.

The Sunset segment consists of generation plants with announced retirement dates after December 31, 2023. Separately reporting the Sunset segment differentiates operating plants with announced retirement plans from the company’s other operating plants in the Texas, East and West segments.

The Asset Closure segment engages in the decommissioning and reclamation of retired plants and mines. The Asset Closure segment also includes results from generation plants the company retired in the years ended December 31, 2023.

Retail Operations

Vistra is one of the largest competitive residential retail electricity providers in the U.S. The company’s Retail operations are engaged in retail sales of electricity, natural gas and related services to approximately 4 million customers. Substantially all of the company’s retail activities are conducted by TXU Energy, Ambit Energy, Dynegy Energy Services, Homefield Energy, and U.S. Gas & Electric across 19 U.S. states and the District of Columbia.

The company’s TXU Energy brand, which has been used to sell electricity to customers in the competitive retail electricity market in Texas for approximately 20 years, is registered and protected by trademark law and is the only material intellectual property asset that it owns. The company has also acquired the trade names for Ambit Energy, Dynegy Energy Services, Homefield Energy, TriEagle Energy, Public Power and U.S. Gas & Electric through the Ambit Transaction, Crius Transaction and the Dynegy Merger, as the case may be.

The largest portion of the company’s retail operations are in Texas, where it provides retail electricity to approximately 2.5 million customers. The company’s retail business also offers a comprehensive suite of green products and services, including 100% wind and solar options, as well as thermostats, dashboards and other programs designed to encourage reduced consumption and increased energy efficiency.

Electricity Generation Operations

The company’s natural gas-fueled generation fleet cosnists of 23 CCGT generation facilities totaling 19,512 MW and 11 peaking generation facilities totaling 4,801 MW. The company satisfies its fuel requirements at these facilities through a combination of spot market and near-term purchase contracts. Additionally, the company has near-term natural gas transportation agreements and natural gas storage agreements in place to ensure reliable fuel supply.

The company’s coal/lignite-fueled generation fleet consists of seven generation facilities totaling 8,428 MW of generation capacity. The company meets its fuel requirements at its coal-fueled generation facilities in PJM and MISO with coal purchased from multiple suppliers under contracts of various lengths and transported to the facilities by either railcar or barges.

The company owns and operates two nuclear generation units at the Comanche Peak plant site in ERCOT, each of which is designed for a capacity of 1,200 MW. Comanche Peak Unit 1 and Unit 2 went into commercial operation in 1990 and 1993, respectively, and are generally operated at full capacity. Refueling (nuclear fuel assembly replacement) outages for each unit are scheduled to occur every eighteen months during the spring or fall off-peak demand periods.

The company has contracts in place for all of Comanche Peak's 2024 through 2027 nuclear fuel requirements.

Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs) — Separate from the company’s operations, ISOs/RTOs administer the transmission infrastructure and markets across a regional footprint in most of the markets in which it operates.

ERCOT — ERCOT is an ISO that manages the flow of electricity from approximately 98,000 MW of expected Summer 2023 peak generation capacity to approximately 26 million Texas customers, representing approximately 90% of the state's electric load.

PJM — PJM is an RTO that manages the flow of electricity from approximately 183,000 MW of generation capacity to approximately 65 million customers in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

Like ERCOT, PJM administers markets for wholesale electricity and provides transmission planning for the region, utilizing a locational marginal pricing (LMP) methodology which calculates a price for every generator and load point within PJM. PJM operates day-ahead and real-time markets into which generators can bid to provide energy and ancillary services. PJM also administers a forward capacity auction, the Reliability Pricing Model (RPM), which establishes a long-term market for capacity. The company has participated in RPM auctions for years up to and including PJM's planning year 2024-2025, which ends May 31, 2025. PJM's RPM auction for planning year 2025-2026 was delayed and is expected to be run in June 2024. The company also enters into bilateral capacity transactions. PJM's Capacity Performance (CP) rules were designed to improve system reliability and include penalties for under-performing units and reward for over-performing units during shortage events. Full transition of the capacity market to CP rules occurred in planning year 2020-2021.

ISO-NE — ISO-NE is an ISO that manages the flow of electricity from approximately 32,400 MW of winter generation capacity to approximately 15 million customers in the states of Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island and Maine.

ISO-NE dispatches power plants to meet system energy and reliability needs and settles physical power deliveries at LMPs. Its energy markets allow market participants to buy and sell energy and ancillary services at prices established through real-time and day-ahead auctions. Energy prices vary among the locations in ISO-NE and are largely influenced by transmission constraints and fuel supply. ISO-NE offers the Forward Capacity Market where capacity prices are determined through auctions. Performance incentive rules have the potential to increase capacity payments for those resources that are providing excess energy or reserves during a shortage event, while penalizing those that produce less than the required level.

NYISO — NYISO is an ISO that manages the flow of electricity from approximately 37,000 MW of installed summer generation capacity to approximately 20 million New York customers.

NYISO dispatches power plants to meet system energy and reliability needs and settles physical power deliveries at LMPs. Its energy markets allow market participants to buy and sell energy and ancillary services at prices established through real-time and day-ahead auctions.

CAISO — CAISO is an ISO that manages the flow of electricity to approximately 32 million customers primarily in California, representing approximately 80% percent of the state's electric load.

MISO — MISO is an RTO that manages the flow of electricity from approximately 190,000 MW of installed generation capacity to approximately 45 million customers in all or parts of Iowa, Minnesota, North Dakota, Wisconsin, Michigan, Kentucky, Indiana, Illinois, Missouri, Arkansas, Mississippi, Texas, Louisiana, Montana, South Dakota and Manitoba, Canada.

Wholesale Operations — The company’s wholesale commodity risk management group is responsible for dispatching its generation fleet in response to market needs after implementing portfolio optimization strategies, thus linking and integrating the generation fleet production with its retail customer and wholesale sales opportunities. Market demand, also known as load, faced by electric power systems, such as those the company operates in, varies from moment to moment as a result of changes in business and residential demand, which is often driven by weather. Unlike most other commodities, the production and consumption of electricity must remain balanced on an instantaneous basis.

Business Strategy

Vistra is a leader in the clean power transition. With a strong zero-carbon generation portfolio and a deliberate and responsible strategy to decarbonize, Vistra understands the company’s obligation to balance reliability, affordability, and sustainability. The company has strategic energy transition that supports the reliability and affordability of electricity.

Environmental Regulations and Related Considerations

The company is subject to extensive environmental regulation by governmental authorities, including the U.S. Environmental Protection Agency (EPA) and the environmental regulatory bodies of states in which it operates.

History

The company was founded in 1882. It was incorporated in 2016. The company was formerly known as Vistra Energy Corp. and changed its name to Vistra Corp. in 2020.