NRG Energy and Constellation Energy announced on June 1 that they have entered a definitive agreement for Constellation Energy to purchase NRG’s 44 percent stake in the South Texas Project.
This agreement will allow Constellation to assume NRG’s equity stake in STP, sharing ownership of the facility with CPS Energy (40 percent) and Austin Energy (16 percent) in a joint ownership agreement upon closing.
While this is a change in ownership for a portion of the company, STP Nuclear Operating Company’s role as the licensed operator of the facility is unchanged.
“Our focus has always been and will continue to be the safe, reliable operation of STP Units 1 and 2,” said Kym Harshaw, STP’s Executive Vice President and Chief Nuclear Officer.
“Our capacity for carbon-free baseload power generation along with our track record of success has made STP a stand-out in our industry and our market. These attributes make STP closely aligned with the purpose and vision of Constellation Energy.”
The agreement is expected to close by year end.
Until then, NRG will continue in its role as owner of 44 percent of the company.
“We are grateful to NRG for their many years of leadership,” Harshaw added.
“STP has a very bright future and we look forward to the new relationships we’ll be building during the coming transition as we welcome Constellation to our owners group.”
The South Texas Electric Generating Station’s two units produces 2,700 megawatts of carbonfree electricity.
To learn more about STP, visit www.stpnoc.com.
Constellation is a leading nuclear power plant operator in the United States with over 19,000 megawatts.
A Fortune 200 company headquartered in Baltimore, Constellation has a fleet of nuclear, hydro, wind and solar generation facilities powers more than 20 million homes, providing 10 percent of all carbon-free energy on the grid in the U.S.
Power magazine said that during an investor business update last week, Constellation officials highlighted STP’s myriad benefits, underscoring how the “large, young, dual unit site” poses a “strategic fit” in Constellation’s current fleet.
Joe Dominguez, president and CEO of Constellation, also stressed the acquisition will be made “at a very attractive price.”
