BALTIMORE (Nov. 1, 2023) — Constellation, operator of the nation’s largest fleet of reliable, carbon-free nuclear plants, announced today it has completed its acquisition of NRG Energy Inc.’s 44 percent ownership stake in the South Texas Project Electric Generating Station (STP), a 2,645-megawatt, dual-unit nuclear plant located about 90 miles southwest of Houston. Constellation’s stake represents approximately 1,100 megawatts of the plant’s output. The ownership transfer was approved on October 30 by the Nuclear Regulatory Commission, which was the final regulatory approval needed before closing the deal.
“Growing our fleet of the nation’s best-run nuclear plants is at the heart of our growth strategy,” said Joe Dominguez, president and CEO of Constellation. “As the world is waking up to the immense value of nuclear power to address the climate crisis and maintain energy security, Constellation will continue to look for opportunities to expand our ownership of assets like STP. We look forward to working with our new co-owners and the plant’s team members to provide reliable, clean and affordable energy, as well as economic benefits to the people of Texas.”
Constellation is now one of three owners with oversight of the South Texas Project Nuclear Operating Company (STPNOC), which will continue to operate the plant.
Constellation also is working to reach a favorable resolution for all parties in the related litigation pending in Matagorda County, Texas.
One of the newest and largest nuclear plants in the U.S., STP has an exceptional track record for safety and reliability, generating enough carbon-free power for two million average homes.
Constellation is an industry leader in operating nuclear plants safely, efficiently and reliably, with a fleetwide capacity factor of more than 94 percent over the past decade, or about 4 percent higher than the industry average. With this acquisition, Constellation’s owned nuclear assets are capable of powering the equivalent of more than 16 million average homes.
Constellation has a strong and growing presence in Texas as an employer, taxpayer and significant provider of electricity and other services to the region. The company owns and operates 3,520 megawatts of natural gas-fired generation at its Colorado Bend II, Wolf Hollow II and Handley generating stations in Texas, in addition to 169 megawatts of wind energy at the Whitetail and Sendero wind projects. Constellation also is a supplier in Texas’ competitive retail energy market, supplying electricity, natural gas, energy efficiency and other services to approximately 200,000 residential and commercial customers statewide.
The company and its more than 550 Texas employees donated $460,000 to nonprofit organizations across the state in 2022 and contributed 4,800 volunteer hours. Constellation also paid $33.6 million in state and local taxes in Texas last year.
BofA Securities served as the exclusive financial advisor to Constellation and Sidley Austin LLP served as the lead transaction counsel to the company.