Constellation Energy Corporation (CEG)

On 27 October Constellation announced a conditional loan commitment of up to $5 billion from the US Department of Energy for nuclear uprates, upgrades that let an existing reactor make more power 13.

The Energy Department said the work would add nearly 1.1 gigawatts, and TechCrunch counted eight plants in Illinois, Maryland and Pennsylvania 23.

Constellation says the commitment is not final, because it depends on due diligence and definitive financing documents 1.

On 6 October Google and Constellation announced a 20-year power purchase agreement for 890 megawatts of new nuclear capacity at 11 Constellation-owned units 4.

Constellation put the new investment at more than $4.3 billion, with the first uprate expected by 2028 4.

A 20-year Amazon agreement signed on 30 September adds about 190 megawatts at the Calvert Cliffs plant in Maryland 6.

The Federal Energy Regulatory Commission accepted PJM's plan to buy backstop power on 29 September but suspended it for five months, to an effective date of 28 February 2027 9.

On 6 August the company raised its full-year guidance for adjusted operating earnings, its own non-GAAP measure, to a range of $11.50 to $12.50 per share 10.

Constellation began as the competitive power and retail arm of Exelon, a large utility group 12.

On 21 February 2021 Exelon's board authorized a plan to separate its competitive generation and customer-facing energy businesses into an independent public company 12. Exelon completed the separation on 1 February 2022 by distributing all the new company's shares to its shareholders 12.

In November 2023 the company acquired NRG South Texas LP, which owns a 44 percent share of the two-unit South Texas Project nuclear plant in Bay City, Texas, for $1.66 billion 12.

Revenue was $24.92 billion in 2023, $23.57 billion in 2024 and $25.53 billion in 2025 12. A federal credit for nuclear output of up to $15 per megawatt hour began in 2024 12.

That credit added $2.08 billion to revenue in 2024 but only $320 million in 2025, which the company ties to higher energy and capacity prices 12. Higher contracted prices from retail customers and favorable settled hedges worked the other way, and total revenue rose 8.3 percent 12.

Profit still fell: net income was $2.32 billion in 2025 against $3.75 billion in 2024, and operating income was $3.09 billion against $4.35 billion 12. Fuel and purchased power costs rose to $14.68 billion from $11.42 billion that year 12.

In September 2024 Constellation signed a 20-year agreement with Microsoft to support restarting Three Mile Island Unit 1, renamed the Crane Clean Energy Center, which closed in 2019 for economic reasons 12. In November 2025 the Energy Department's financing office issued a guarantee for up to $1.0 billion of a federal loan for the restart 12.

In June 2025 it signed a 20-year agreement with Meta for the Clinton plant in Illinois, starting in June 2027, with a 30 megawatt uprate expected to be complete in 2029 12.

The biggest turn came with Calpine, a power producer centered on natural gas and geothermal 12. The merger agreement is dated 10 January 2025 12. The deal closed on 7 January 2026 at about $22 billion, paid in 50 million new shares and about $4.5 billion in cash 12.

Calpine's former shareholders owned about 14 percent of the combined company right after the merger 12. To satisfy an agreement with the US Department of Justice, Constellation agreed in March 2026 to divest five PJM plants of about 4.4 gigawatts to LS Power for $5.0 billion before closing adjustments 117.

Second-quarter 2026 revenue was $7.50 billion against $6.10 billion a year earlier, and six-month revenue was $18.63 billion against $12.89 billion 11. Adjusted operating earnings rose to $2.55 per share from $1.91 10.

The company credits the adjusted gain mainly to adding Calpine and favorable market conditions, partly offset by nuclear outages 10. Net income under standard accounting fell to $1.42 per share from $2.67, because of items such as unrealized hedge losses and Calpine merger costs 10.

Nuclear power, the core of the fleet

Constellation owns 22 gigawatts of capacity at 25 nuclear units, which produced 183 terawatt hours of electricity in 2025 at a 94.7 percent capacity factor 12. Capacity factor is the share of a plant's possible output that it actually delivers 12.

In the second quarter of 2026 the fleet produced 44,160 gigawatt-hours, against 45,170 a year earlier, and the company counted 86 planned refueling outage days against 41 10.

Where the revenue comes from

Operating revenues in 2025 were $6.49 billion in the Mid-Atlantic, $5.80 billion in the Midwest, $2.19 billion in New York, $1.90 billion in ERCOT, the Texas grid, and $5.58 billion in Other Power Regions 12.

From 2024 the Midwest grew 20.8 percent, ERCOT 22.8 percent and the Mid-Atlantic 17.5 percent 12. Net generation capacity at the end of 2025 was 31,676 megawatts, 37 percent in the Midwest and 33 percent in the Mid-Atlantic 12.

Gas, geothermal and batteries from Calpine

The Calpine merger added about 23 gigawatts across 72 generation and battery storage assets, after divestitures tied to regulatory approvals 12. Calpine is the largest US generator from natural gas and geothermal, according to S&P Global Market Intelligence as the annual report cites it 12.

Its Geysers assets are 13 operating geothermal plants in Northern California with about 730 megawatts, and Calpine adds about 800 megawatts of battery storage 12. The annual report calls Calpine's gas assets reliable and dispatchable 12.

Customers and retail

Constellation serves about 2.5 million customer accounts, including 80 percent of the Fortune 100, and calls itself a leading competitive retail supplier 7. Calpine's retail platform serves about 62 terawatt hours of load a year 12.

Long-term contracts and uprates

Google's deal includes a 15-year supply agreement for another 2,700 megawatts of existing PJM output 4. Amazon's covers 690 megawatts, including the 190 megawatt uprate, plus a retail supply agreement for Amazon operations in the 13-state PJM market 6.

In the second quarter the company signed another 920 megawatts of power purchase agreements lasting 15 to 20 years, starting between 2029 and 2032 10. One is a 176 megawatt deal with Walmart that enables a 30 megawatt expansion at Dresden in Illinois 10.

Plants and people

Calvert Cliffs in Lusby, Maryland, is a 1,790-megawatt plant that employs more than 800 people 6. Crane in Pennsylvania, once restarted, is expected to have about 835 megawatts 12.

Joe Dominguez is chief executive and, since 4 August 2026, chairman, after Robert Lawless retired as chair 15. The board also named Charles Harrington lead independent director and elected Roger Crandall a director from 5 August 15.

Shane Smith is executive vice president and chief financial officer 10. The annual report counts 15,339 employees as of 31 December 2025 12.

Rivals

Vistra, another large owner of nuclear plants, received a conditional Energy Department loan commitment of up to $4.2 billion for upgrades adding 433 megawatts, a day before the Google announcement 5. Retail rivals can compete hard for customers when power prices and market swings are low, the annual report says 12.

Current problems

FERC's order delayed PJM's backstop auction, a one-time purchase of new power supply, and PJM said its dates would be reviewed later 9. PJM said it would give an update on 7 October 9.

TechCrunch reported that Constellation's announcement does not say whether the DOE-backed projects will keep or lower electricity rates, and that the company would not confirm the Energy Department's claim 3. Refueling outages cut output in the second quarter, the company said 10.

The umbrella, in words

Constellation Energy Corporation is the parent, and Calpine joined the group on 7 January 2026 12. Exhibit 21.1, listing subsidiaries of 50 percent and greater as of 31 January 2026, includes Constellation Energy Generation, LLC, Constellation NewEnergy, Inc. and many Calpine entities 13.

Constellation owns 100 percent of Calpine's equity since 7 January 2026 12. It owns shares of five jointly owned nuclear stations: Quad Cities at 75 percent, Peach Bottom 50, Salem 42.59, Nine Mile Point Unit 2 at 82 and South Texas Project at 44 12.

By agreement, not ownership, it has contracts with Microsoft, Meta, Google and Amazon described above 1246. It has agreed to acquire 100 percent of RISEC Holdings, LLC, a 609 megawatt Rhode Island gas plant, from Shell for $715 million 8. That deal has not closed 8.

The proxy statement lists holders of more than 5 percent from their Schedule 13G filings: The Vanguard Group at 11.7 percent, BlackRock 7.2, ECP ControlCo 7.0, State Street 5.7 and Capital International Investors 5.5 14. It bases the percentages on 313,309,685 shares outstanding on 2 March 2026 14.

Each holder's date differs: ECP ControlCo filed its Schedule 13G on 14 January 2026, Capital International Investors on 13 February 2026, BlackRock on 26 January 2024, and State Street on 30 January 2024 14. Vanguard's latest filing then on record was dated 13 February 2024 14.

On 6 August Constellation said the Nuclear Regulatory Commission had approved a fuel license amendment for Crane, moving it closer to restarting operations in 2027 10. The plant is expected to hold about 835 megawatts once running 12.

For the Google uprates, the company said the first uprate is expected by 2028 4. The Amazon work adds about 190 megawatts between 2030 and 2032 6. The Meta deal's 30 megawatt Clinton uprate is expected to be fully complete in 2029 12.

Constellation said on 27 October that its Google and Amazon agreements prompted it to invest more than $7 billion to add about 1,080 megawatts of nuclear capacity 1. The DOE commitment may lower financing costs, the company said, but it is conditional on due diligence and definitive documents 1.

The Energy Department said that 95 percent of the 5-gigawatt uprate and restart goal in the presidential order has been identified 2.

Constellation expects the sale of about 4.4 gigawatts of gas-fired plants in Delaware and Pennsylvania to LS Power to close by the end of 2026, subject to customary conditions 7. It expects the RISEC purchase to close after regulatory approvals, without a stated date 8.

The company said the RISEC deal will not affect its ability to carry out $5 billion of authorized share repurchases by the end of 2027 8. Its guidance for full-year adjusted operating earnings is $11.50 to $12.50 per share 10.

It has filed to extend the Ginna and Nine Mile Point Unit 1 reactors in upstate New York to 2049, a 20-year extension if the Nuclear Regulatory Commission approves 10. Nine Mile Point Unit 2 is licensed to 2046 10.

On the grid side, FERC's suspension of the PJM backstop auction runs to an effective date of 28 February 2027 9. PJM's 2028-2029 capacity auction results take effect on 1 June 2028, and each Constellation plant in PJM cleared 16.