Summary
Constellation Energy Corporation (CEG) has announced positive results from the PJM capacity auction for the 2028-2029 planning year. All of the company's power plants within the PJM market successfully cleared the auction, securing capacity revenues for these future periods. This is a significant positive development as capacity revenues from nuclear units are a key component in the calculation for Production Tax Credits, potentially enhancing the company's tax benefits and overall profitability. The auction results will become effective on June 1, 2028, providing a clear revenue stream visibility for these assets over the specified planning year. Overall, the cleared capacity of 18,875 MW, comprising 15,700 MW of nuclear and 3,175 MW of fossil/other generation, indicates strong market demand for Constellation's generation fleet. The consistent capacity price of $325 per MW across various zones suggests a stable pricing environment within the PJM market for the relevant planning year. Investors should view these results as a confirmation of the reliability and value of Constellation's generation assets in meeting regional power needs.
Key Highlights
- 1All Constellation Energy power plants in the PJM market cleared the 2028-2029 capacity auction.
- 2Total cleared capacity is 18,875 MW, including 15,700 MW of nuclear and 3,175 MW of fossil/other generation.
- 3The capacity price cleared at $325 per MW across all zones.
- 4Auction results are effective for the planning year beginning June 1, 2028.
- 5Capacity revenues from nuclear units are integral to the Production Tax Credit calculation.
- 6Cleared capacity for generation assets held for sale was excluded from the reported volumes.