Constellation completes South Texas acquisition
02 November 2023
Constellation completed its acquisition of NRG Energy Inc's 44% stake in the two-unit South Texas Project plant after receiving final approval from the US Nuclear Regulatory Commission.
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South Texas Project (Image: NRG)
The Baltimore-based company agreed in June to purchase NRG's stake in the plant - also known as STP - for USD1.75 billion. The plant is co-owned by CPS Energy (40%) and Austin Energy (16%), and operated by South Texas Project Nuclear Operating Company.
Growing its nuclear fleet is at the heart of Constellation's growth strategy, the company's president Joe Dominguez said. "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."
Constellation describes itself as the USA's largest producer of clean, carbon-free energy with annual output that is nearly 90% carbon-free, with hydro, wind and solar facilities as well as the nation's largest nuclear fleet.
The Nuclear Regulatory Commission (NRC) announced on 31 October that it had approved the transfer of licences for South Texas Project units 1 and 2, and its associated spent fuel storage facility, from NRG South Texas to Constellation Energy Generation, after concluding that "Constellation was financially qualified to be a licensed owner and would continue to provide reasonable assurance that funds will be available to eventually decommission the plant". The regulator noted that there is a hearing request currently pending before the commission.
STP's co-owners - CPS and Austin Energy - in July jointly filed a motion with the NRC seeking to dismiss or place on hold the licence transfer pending the outcome of a lawsuit brought against NRG by CPS, in which CPS claimed a "right of first refusal" over the sale.
Constellation said it was "working to reach a favourable resolution for all parties in the related litigation pending in Matagorda County, Texas".
Researched and written by World Nuclear News