Constellation Energy rose more than 12% in pre-market trading! Reached a 20-year power purchase agreement with Microsoft
Constellation Energy and Microsoft have signed a 20-year power purchase agreement, which is expected to bring its Three Mile Island nuclear power plant in Pennsylvania back into service. This agreement is the largest power purchase agreement in Constellation Energy's history, with operations expected to resume in 2028 and plans to extend the operation of the nuclear power plant until at least 2054. In response to this news, Constellation Energy's stock price rose more than 12% in pre-market trading
According to the information from Zhitong Finance APP, Constellation Energy (CEG.US) announced on Friday that the company has signed a 20-year power purchase agreement with Microsoft (MSFT.US). The latter will use the purchased electricity to help power its data centers in PJM with carbon-free energy. This agreement will pave the way for Constellation Energy to restore a unit at its Three Mile Island nuclear power plant in Pennsylvania and keep it online for decades. Boosted by this news, Constellation Energy's US stocks surged over 12% in pre-market trading on Friday.
Constellation Energy stated that this is the largest power purchase agreement in the company's history. The financial terms of the agreement were not disclosed. Constellation Energy plans to fund the project itself rather than seek support from state or federal governments. The company expects the Three Mile Island nuclear power plant to resume operations in 2028 and will seek license renewals to extend the plant's operation until at least 2054.
Joe Dominguez, President and CEO of Constellation Energy, said, "Before it closed prematurely for economic reasons, this nuclear power plant was one of the safest and most reliable nuclear power plants on the grid. We look forward to bringing it back under a new name."