CEG Stock Jumps on Amazon Power Deal

Constellation Energy Corp. (CEG) saw its stock rise by 2.7% in overnight trading after announcing a 20-year power purchase agreement with Amazon.com Inc. (AMZN). The deal will add 190 megawatts of nuclear capacity at the Calvert Cliffs Clean Energy Center in Maryland, which is the state's only nuclear plant and largest source of clean energy.

The agreement covers 690 MW of power, including the new capacity, and includes a related retail supply agreement to support Amazon's operations in the PJM market. This regional grid spans 13 states and Washington D.C., and Constellation assured that the deal will not disrupt current energy supply to the grid.

The revenue certainty from this long-term commitment is expected to give Constellation the confidence to relicense the plant for another 20 years and move forward with developing new clean energy plants at the site. Amazon's CEO, Joe Dominguez, stated that 'Amazon’s commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a strong foundation for future investment in both the facility and in advanced nuclear technologies.'

The deal will enable over $3 billion in infrastructure investment in Maryland, including improvements across the entire 1,790 MW plant and about 190 MW of new emissions-free capacity expected to come online between 2030 and 2032. Constellation's CEO also mentioned that this agreement follows their earlier power deals with Microsoft and Meta Platforms as tech companies seek reliable, carbon-free power for data centers.