Constellation Energy Expands Nuclear Portfolio with Acquisition of 44% Stake in Texas Nuclear Plant
Constellation Energy Corporation, a leading supplier of clean, carbon-free energy in the United States, has announced the completion of its acquisition of a 44% ownership stake in the South Texas Project Electric Generating Station (STP) from NRG Energy Inc. This acquisition, which was finalized following the approval of the Nuclear Regulatory Commission on October 30, 2023, marks a significant expansion in Constellation's nuclear energy portfolio.
The South Texas Project, a 2,645-megawatt, dual-unit nuclear plant located about 90 miles southwest of Houston, is one of the newest and largest nuclear plants in the U.S. With this acquisition, Constellation now oversees approximately 1,100 megawatts of the plant's output, which is enough to power two million average homes.
Joe Dominguez, president and CEO of Constellation, emphasized the importance of this acquisition in the company's growth strategy, highlighting the role of nuclear power in addressing the climate crisis and maintaining energy security. He also noted the company's commitment to working with new co-owners and plant team members to continue providing reliable, clean, and affordable energy.
Constellation is renowned for operating nuclear plants safely, efficiently, and reliably, with a fleetwide capacity factor of over 94% in the past decade, approximately 4% higher than the industry average. The acquisition further strengthens Constellation's position as a key player in the clean energy sector, with its owned nuclear assets now capable of powering more than 16 million average homes.
In addition to its nuclear portfolio, Constellation has a strong presence in Texas, operating 3,520 megawatts of natural gas-fired generation and 169 megawatts of wind energy. The company also plays a significant role in Texas' competitive retail energy market, supplying electricity, natural gas, and other services to around 200,000 residential and commercial customers.
Constellation's commitment to the community is evident in its contributions to Texas. In 2022, the company and its over 550 Texas employees donated $460,000 to nonprofit organizations and contributed 4,800 volunteer hours. Furthermore, Constellation paid $33.6 million in state and local taxes in Texas in the same year.
BofA Securities served as the exclusive financial advisor, and Sidley Austin LLP was the lead transaction counsel for Constellation in this acquisition.
Constellation Energy Corporation, headquartered in Baltimore and listed on Nasdaq as CEG, is a Fortune 200 company and the nation's largest producer of clean, carbon-free energy. With an annual output that is nearly 90% carbon-free, Constellation's diverse portfolio includes hydro, wind, solar facilities, and the nation's largest nuclear fleet. The company is committed to accelerating the transition to a carbon-free future, with a goal of achieving 100% carbon-free generation by 2040.
For more details, you can view the full press release here.