Constellation Adds 890 Megawatts of Nuclear Capacity to PJM Grid, Sells Gas Plant for $860 Million

Key Facts

Constellation said on October 14, 2026, that it had completed the sale of the Brazos Valley plant to LS Power, eight days after announcing a separate agreement with Google to add 890 megawatts of nuclear capacity to the PJM grid. The plant sold has a capacity of 606 megawatts and is a natural gas-fired combined-cycle facility outside Houston in the ERCOT market, according to a Constellation statement. The nuclear agreement was announced on October 6 and aims to meet rising demand and strengthen grid reliability, according to the company. The two transactions show Constellation pursuing parallel paths: expanding output at existing nuclear plants through long-term contracts, and exiting assets it was required by regulators to sell following its acquisition of Calpine. The nuclear agreement announcement did not coincide with the completion of the Brazos Valley sale; each had its own timing and purpose.

The partnership with Google is based on a 20-year power purchase agreement that enables investment in equipment and technology at 11 nuclear units owned by Constellation in Illinois, Pennsylvania and New Jersey. The agreed capacity increase will come through upgrades to operating units, not the construction of a new reactor, according to the companies' announcement. Constellation said the work would include upgrades to turbines, steam generators and digital control systems at existing plants. The first capacity increase is expected to be delivered by 2028, putting the start of actual additions more than a year after the announcement. The contract's two-decade term makes the upgrades part of a long-term arrangement to supply nuclear power, with the investment tied to a specified additional generating capacity.

Constellation said the agreement represents a new investment of more than $4.3 billion and helps retain about 4,400 existing jobs, while creating nearly 7,200 construction jobs during the implementation period. These figures relate to the nuclear deal and construction program, while the statement did not specify the duration of the construction work. Alongside the nuclear power agreement, the companies entered a separate 15-year energy supply agreement covering 2,700 megawatts from Constellation's fleet in PJM. The arrangement therefore includes a nuclear contract to increase capacity and another contract to supply electricity from the fleet, with separate durations and capacities. The arrangements also include load shaping and demand response to reduce nonessential consumption when the grid faces severe strain.

Google said funding reactor upgrades strengthens the PJM grid, which serves 67 million people, while protecting energy affordability and supporting local union jobs. The rationale places the agreement in the context of grid needs and consumers, alongside the company's stated goals on reliability, cost and jobs. Operational arrangements include reducing nonessential loads during periods of severe strain, enabling demand response when the grid is under pressure. Google's statement did not give a specific figure for the expected impact on energy prices or the amount of consumption reduction. The agreement is thus linked to increased output from existing plants and measures to manage electricity demand on the PJM grid.

Constellation valued the Brazos Valley sale at about $860 million at the time of the agreement, before closing adjustments, and said the divestiture was the last required asset sale to meet its regulatory commitments related to the Calpine acquisition. The company closed the acquisition in January 2026 and agreed to the sale to LS Power in August of the same year. It said the transaction marked progress in meeting those commitments, while its announcement described the plant sale as the last required asset divestiture under them. The divestiture therefore serves a different role from the Google deal: the first fulfills regulatory commitments following the acquisition, while the second funds an increase in nuclear capacity on another grid. The Brazos Valley sale was completed on October 14, after its expected closing date, when announced in August, had been the fourth quarter of 2026, subject to regulatory approvals.

The sale of Brazos Valley does not end the divestitures announced by Constellation; the company said the sale to LS Power of other generating assets with a capacity of about 4.4 gigawatts in Delaware and Pennsylvania was expected to close by the end of 2026, subject to customary closing conditions. Those assets consist mostly of natural gas-fired plants and are being sold in a transaction separate from the Brazos Valley deal. In its financial results for the second quarter, published on August 6, Constellation reported that GAAP net income fell to $1.42 per share from $2.67 in the same period of 2025. By contrast, adjusted operating earnings rose to $2.55 per share from $1.91. Constellation shares closed at $258.08 and Alphabet shares at $324.89 on October 28, 2026, according to EL7 data.