The risk inherent in our market-risk sensitive instruments and positions is the potential loss arising from adverse changes in commodity prices, equity security prices and interest rates as discussed in the Notes to Condensed Consolidated Financial Statements. It is our policy to use derivatives to manage risk consistent with business plans and prudent practices. We have a Risk Management Committee comprised of executive officers who utilize a risk oversight function to ensure compliance with our corporate policies and risk management practices. Additionally, we are exposed to counterparty credit losses in the event of non-performance or non-payment. We have a credit management process, which is used to assess, monitor and mitigate counterparty exposure. In the event of non-performance or non-payment by a major counterparty, there may be a material adverse impact on our financial condition, results of operations or net cash flows. Commodity Contracts The availability and price of energy-related commodities are subject to fluctuations from factors such as weather, environmental policies, changes in supply and demand, state and federal regulatory policies, market rules and other events. To reduce price risk caused by market fluctuations, we enter into supply contracts and derivative contracts, including forwards, futures, swaps, and options with approved counterparties. These contracts, in conjunction with physical sales and other services, help reduce risk and optimize the value of owned electric generation capacity. Value-at-Risk (VaR) Models VaR represents the potential losses, under normal market conditions, for instruments or portfolios due to changes in market factors, for a specified time period and confidence level. We estimate VaR across our commodity businesses. MTM VaR consists of MTM derivatives that are economic hedges. The calculation does not include market risks associated with activities that are subject to accrual accounting, primarily our generating facilities and some load-serving activities. The VaR models used are variance/covariance models adjusted for the change of positions with 95% and 99.5% confidence levels and a one-day holding period for the MTM activities. The models assume no new positions throughout the holding periods; however, we actively manage our portfolio. From April through June 2026, MTM VaR varied between a low of $53 million and a high of $92 million at the 95% confidence level. The range of VaR was narrower for the three months ended June 30, 2026 as compared with the year ended December 31, 2025. MTM VaR Three Months Ended June 30, 2026 Year Ended December 31, 2025 Millions 95% Confidence Level, Loss could exceed VaR one day in 20 days Period End $ 70 $ 63 Average for the Period $ 69 $ 41 High $ 92 $ 71 Low $ 53 $ 17 99.5% Confidence Level, Loss could exceed VaR one day in 200 days Period End $ 109 $ 99 Average for the Period $ 107 $ 64 High $ 143 $ 111 Low $ 83 $ 27 See Item 1. Note 10. Financial Risk Management Activities for a discussion of credit risk. 72 Table of Contents