Constellation has announced its acquisition of NRG Energy Inc.'s 44 percent stake in the South Texas Project Electric Generating Station. This dual-unit nuclear facility has a capacity of 2,645 megawatts and is located approximately 90 miles southwest of Houston. The transaction is valued at $1.75 billion, with an effective purchase price of $1.4 billion, considering the present value of tax benefits to Constellation. The financing for this acquisition will involve a combination of cash and debt.
Joe Dominguez, the president and CEO of Constellation, expressed his appreciation for the South Texas Project's exceptional condition and its ability to consistently generate carbon-free energy around the clock, making it one of the most valuable sources of power worldwide. With the potential to operate for at least another 46 years, given the necessary policy support, Constellation aims to collaborate with the other owners of the South Texas Project to continue providing clean and reliable electricity to the growing region for many decades to come.
Following the completion of the transaction, Constellation will become one of the three owners responsible for the oversight of the South Texas Project Nuclear Operating Company (STPNOC), which will continue to operate the plant. However, the acquisition is still subject to approval from the Nuclear Regulatory Commission and the Department of Justice. The deal is expected to be finalized by the end of this year.
The South Texas Project is one of the newest and largest nuclear plants in the United States, boasting an exceptional safety and reliability record while producing enough carbon-free power to meet the needs of two million average homes.
Constellation has consistently maintained a fleetwide capacity factor of over 94 percent in the past decade, which is approximately 4 percent higher than the industry average. With ownership interests in 13 generating stations and 23 nuclear units capable of producing around 21,000 megawatts of electricity, Constellation's clean energy output is sufficient to power approximately 15 million homes.
Moreover, Constellation has already established a strong and growing presence in Texas as a significant employer, taxpayer, and electricity provider. The company currently operates natural gas-fired generation facilities, namely Colorado Bend II, Wolf Hollow II, and Handley generating stations, which collectively have a capacity of 3,520 megawatts. Additionally, Constellation operates wind energy projects, Whitetail and Sendero, with a combined capacity of 169 megawatts. The company is also an active supplier in Texas' competitive retail energy market, serving approximately 200,000 residential and commercial customers statewide by providing electricity, natural gas, energy efficiency solutions, and other related services.
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