Constellation advances nuclear baseload with hybrid 'Peak+' contracts
Constellation Energy is launching 'Peak+' hybrid capacity contracts, priced $20-$50/MWh above the nuclear tax credit floor, to pair its existing nuclear fleet with new resources for large customers, as its Three Mile Island restart targets late 2027.
Constellation Energy is leveraging its nuclear fleet to offer large customers a new hybrid power solution, with its planned restart of the Three Mile Island nuclear site scheduled for the second half of 2027. The company's 'Peak+' contracts combine clean baseload nuclear power with battery storage, demand response, and new generation, priced between $20 and $50 per megawatt-hour above the federal nuclear production tax credit floor.
Hybrid capacity contracts launched
Constellation is pursuing these 'Peak+' hybrid capacity contracts for large commercial and industrial customers. The product adds new capacity such as batteries, generation, and demand response to the company's existing clean nuclear output. CEO Joe Dominguez said the offerings could be built on land Constellation already owns around its nuclear plants. "Constellation Peak+ gives us a new way to pair the existing fleet with incremental capacity," Dominguez stated. The first such deal is a 20-year agreement for 270 megawatts of unit-contingent energy, capacity, and environmental attributes from Constellation's existing nuclear fleet, starting in 2028. This inaugural contract was disclosed alongside the company's third-quarter results on November 9.
Contract economics advantage
The pricing structure gives Peak+ a competitive edge against new fossil fuel generation. While the contracts carry a premium over the base nuclear power price supported by federal tax credits, they are positioned well below the projected cost of new gas-fired plants. By 2032, the levelized cost of new gas turbine generation in the eastern PJM Interconnection market is estimated to reach $110 to $130 per megawatt-hour.
| Power Source | Price / Cost Range |
|---|---|
| Nuclear PTC Floor | Base reference price |
| Constellation Peak+ Contracts | PTC floor + $20 to $50 |
| New Gas Plants in PJM (2032 est.) | $110 to $130 |
This economic gap creates a clear value proposition for customers seeking long-term, clean, and reliable power.
Strategic expansion continues
Constellation's move into hybrid contracts builds on a series of major expansions and acquisitions. The company has already secured over one gigawatt of new capacity backed by hyperscale data center companies. These deals include an 890-megawatt agreement with Google and a separate 190-megawatt deal with Amazon. Beyond nuclear, Constellation has aggressively grown its non-nuclear portfolio. It completed a $16.4 billion combination with gas-heavy power company Calpine. More recently, Constellation agreed to pay Shell Energy North America $715 million to acquire the 609-megawatt Rhode Island State Energy Center, a gas-fired plant operating in the ISO New England market. The company also holds a conditional loan guarantee from the U.S. Department of Energy for up to $5 billion to support potential nuclear uprates. The strategy culminates in the first 20-year Peak+ contract for 270 megawatts of unit-contingent energy, capacity, and attributes from Constellation's existing nuclear fleet starting in 2028.
