Press release
Constellation to Acquire Ownership Stake in Texas Nuclear Plant From NRG Energy
Company will purchase 44% share of South Texas Project Electric Generating Station, expanding nation’s largest carbon-free nuclear fleet BALTIMORE--(BUSINESS
About this update from Constellation Energy Corporation
[{"type":"text","content":"\nCompany will purchase 44% share of South Texas Project Electric Generating Station, expanding nation’s largest carbon-free nuclear fleet\n\n\n BALTIMORE--(BUSINESS WIRE)--\nConstellation, operator of the nation’s largest fleet of reliable, carbon-free nuclear plants, announced today it is acquiring NRG Energy Inc.’s 44 percent ownership stake in the South Texas Project Electric Generating Station, a 2,645-megawatt, dual-unit nuclear plant located about 90 miles southwest of Houston. The transaction is valued at $1.75 billion, with an effective purchase price of $1.4 billion after taking into consideration the present value of tax benefits to Constellation. The transaction will be financed with a combination of cash and debt.\n\n\n“The South Texas Project is an exceptionally well-maintained plant and its ability to produce resilient, carbon-free energy 24/7 makes it among the most valuable power sources in the world,” said Joe Dominguez, president and CEO of Constellation. “With the potential to run for at least 46 more years with the right policy support, we look forward to working with the South Texas Project’s other owners to continue bringing clean, reliable electricity to this growing region for decades to come.”\n\n\nAfter the transaction, Constellation will be one of three owners with oversight of the South Texas Project Nuclear Operating Company (STPNOC), which will continue to operate the plant. The purchase is subject to approval by the Nuclear Regulatory Commission and Department of Justice. We expect the deal to be completed by year end.\n\n\nOne of the newest and largest nuclear plants in the U.S., the South Texas Project has an exceptional track record for safety and reliability, generating enough carbon-free power for two million average homes.\n\n\nConstellation is an industry leader in operating nuclear plants safely, efficiently and reliably, with a fleetwide capacity factor of more than 94 percent over the past decade, or about 4 percent higher than the industry average. The company has ownership interests in 13 generating stations with 23 nuclear units capable of producing approximately 21,000 megawatts of electricity, enough clean energy to power approximately 15 million homes.\n\n\nConstellation already has a strong and growing presence in Texas as an employer, taxpayer and significant provider of electric...