Constellation to sell gas plant to LS Power and raises operating profit forecast
Article excerpt
((Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer: https://bit.ly/rtrsauto)) Electricity company Constellation Energy CEG.O announced on Thursday that it would sell a gas-fired power plant located in Texas to LS Power for 860 million dollars, and also raised its operating profit forecast for the current year, thanks to strong electricity demand. The company's shares rose 5% in pre-market trading. The sale of the Brazos Valley Energy Center plant to LS Power marks the last divestiture required by Constellation to finalize its 16.4 billion dollar acquisition of Calpine's assets. Constellation has expanded its fleet, which was previously largely focused on nuclear power: the acquisition of Calpine allowed it to add a significant portfolio of gas-fired power plants, giving it greater flexibility in high-demand markets such as Texas. “We are strengthening the country’s energy infrastructure and helping to meet the growing demand for reliable electricity,” said Joe Dominguez, CEO. In a separate statement, LS Power indicated that its acquisition of the Texas plant, which is expected to close by the end of the year, will bring its total capacity to 14,100 MW once the transaction is completed and will strengthen its presence within ERCOT, one of the fastest-growing electricity markets. FORECAST REVISION UPWARDS...
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The company announced on Thursday that it had signed agreements to supply an additional 920 megawatts (MW) of nuclear energy to a diverse set of "investment grade" customers for a period of 15 to 20 years, with supply expected to begin between 2029 and 2032.
