Constellation Energy Corporation (CEG.US): More Power Contracts in Play

Yesterday, CEG announced another data center contract in PJM to bring 890 MW of new nuclear capacity online through uprates and contract another 2,700 MW of existing capacity. We continue to see attractive upside opportunity in nuclear assets and compelling entry points in the broader IPP space. Constellation and Google announced an agreement to bring 890 MW of new nuclear capacity online and contract another 2,700 MW of existing capacity in PJM. The new capacity is supported by a 20-year contract and will be enabled by uprates at 11 nuclear units in IL, PA and NJ, with expected investments of over $4.3b. The first uprate is expected to be delivered in 2028. In addition, the companies entered into a 15-year agreement for 2,700 MW of CEG's existing capacity in PJM. In the announcement, the companies mentioned the agreement offers a direct response to PJM's "Bring Your Own Power" proposal and aligns with the White House Ratepayer Protection Pledge as well as Google's commitment to bring