Where Will Constellation Energy Be in 3 Years?

Core Insights - Constellation Energy has evolved significantly since its spin-off from Exelon in early 2022, focusing on merchant power generation while Exelon manages regulated utilities [1] - The company has signed two major nuclear power deals and is in the process of acquiring Calpine for $26.6 billion, which will enhance its scale and capacity [4] Group 1: Company Overview - Constellation Energy is one of the largest clean power producers in the U.S., operating over 32.4 gigawatts (GW) of power generation capacity, sufficient to supply electricity to more than 20 million homes and businesses [3] - Approximately 90% of the power produced by Constellation comes from carbon-free sources, including the largest nuclear power fleet in the nation, along with hydro, wind, and solar energy assets [3] Group 2: Strategic Developments - The acquisition of Calpine will increase Constellation's capacity to nearly 60 GW, positioning the company to better meet the growing power demand driven by factors such as AI data centers and increased electrification [4][5] - Electricity demand is projected to grow by 58% by 2045, significantly outpacing the growth seen in the past two decades, creating a strong market for clean power, including natural gas [5] Group 3: Nuclear Energy Focus - Constellation Energy is capitalizing on the resurgence of nuclear energy by securing new power purchase agreements (PPAs) with technology companies, including a 20-year PPA with Microsoft for the Three Mile Island plant [7][8] - The company plans to restart the dormant Unit 1 reactor at Three Mile Island, which is expected to be operational by 2028, further enhancing its nuclear power capabilities [8]