Constellation Energy, operator of the nation’s largest fleet of nuclear plants, announced Thursday it is buying NRG Energy’s 44% ownership stake in a Texas nuclear plant for $1.75 billion.
The 2.6-GW South Texas Project Electric Generating Station, about 90 miles southwest of Houston, has an effective purchase price of $1.4 billion after taking into consideration the present value of tax benefits, Constellation said. The transaction will be financed with cash and debt.
“The South Texas Project is an exceptionally well-maintained plant and its ability to produce resilient, carbon-free energy 24/7 makes it among the most valuable power sources in the world,” said Joe Dominguez, president and CEO of Baltimore-based Constellation.
The plant has the potential to operate for at least another 46 years “with the right policy support,” he said.
Following the transaction, Constellation will be one of three owners with oversight of the South Texas Project Nuclear Operating Co., which will continue to operate the plant.
Constellation said it expects the deal to be completed by the end of the year. The purchase is subject to approval by the Nuclear Regulatory Commission and the Department of Justice.
The South Texas Project generates enough carbon-free power for 2 million average homes, Constellation said.
Constellation owns interests in 13 generating stations with 23 nuclear units capable of producing about 21,000 MWe, enough clean energy to power approximately 15 million homes.
Constellation owns and operates 3.5 GW of natural gas-fired generation in Texas, in addition to 169 MW of wind energy.