CONSTELLATION ENERGY CORP earnings calls

new nuclear deal terms and customer

Q (Nicholas Campanella · Barclays): Is the long-term nuclear deal acceptable on price and term? Is the customer a hyperscaler or traditional commercial, and is this deal incremental to Walmart?

A: Management would not disclose the customer's identity. They said the deal is consistent with their view of long-term value for the nuclear fleet and represents one of many market opportunities.

"But Nick, it is consistent with our view of long-term value for the nuclear fleet." — Joseph Dominguez (CEO·CHAIR)

bilateral process and customer solutions

Q (Daniel Eggers): How should we think about the interconnect queue megawatts mix — uprates, batteries, peakers — and using bilateral deals to address nonpeak hours and the 5 gigawatts you mentioned earlier?

A: They said the bilateral process is confidential but includes a full range of solutions when they submitted megawatts: uprates, batteries and peakers. Management emphasized their motivation is to provide customers the solutions they need and that bilaterals are a place to get deals done.

contract locations and price range trend

Q (Steven Fleishman · Wolfe): Are the new nuclear contracts in PJM? And within your $20 to $50 per megawatt-hour range, how are prices trending?

A: They would not pinpoint origins but said most of their assets are in PJM. On pricing, they will keep the disclosed $20 to $50 range as is to protect customer sensitivity and remain comfortable with that range.

"I mean, again, to the point of trying to protect customer sensitivity around the exact pricing, we're going to keep that range as it is." — Shane Smith (CFO)

ERCOT Batch Zero and market outlook

Q (David Arcaro · Morgan Stanley): Do you have projects in ERCOT's Batch Zero and how do you see ERCOT power prices and batteries affecting the market?

A: They confirmed they have projects, including some from the Calpine acquisition, and some sites are in the Batch Zero process while they evaluate the Governor's requests. They said battery storage has arrived on the grid before the load, which has pressured prices, and they expect the market to tighten as data centers come online.

"The battery storage and other things you're talking about started earlier and they're arriving on the grid earlier than the load is." — Joseph Dominguez (CEO·CHAIR)

capital allocation and PJM customer tone

Q (Jeremy Tonet · JPMorgan): On Slide 13, is there anything new about growth investments or the capital allocation table? And how has customer tone changed in PJM as prices evolve?

A: Shane said the $0.20 floor reflects progress from the last 4 months and $2.2 billion of accretive buybacks, and there is nothing else disclosed that changes the growth range. Joe said ambiguity hurts deal execution, customers want clear rules, and increased clarity from PJM is already restarting contracting activity that should accelerate once final rules are set.

"And so what the $0.20 as a floor is meant to represent is the progress we've made in the last 4 months from those accretive $2.2 billion of buybacks." — Shane Smith (CFO)

PJM co-location timing and new nuclear interest

Q (Sophie Karp · KBCM): What is the next step and timing for PJM co-location clarity? And is there any place in the U.S. where economics justify new builds now?

A: They expect a PJM response around November after 90-day extensions and then a FERC order in the first to second quarter of '27, with co-location modeling (load and generation at same interconnection) and hybrid solutions in mind. On new nuclear, they are in conversations in New York but have nothing imminent to disclose and are preparing sites for future development.

"We've seen some extensions of time to answer that. In short, we think that we're going to see rule clarity in the first to second quarter of '27 in terms of co-location, far ahead of where PJM might have been before where they were targeting 2029." — Joseph Dominguez (CEO·CHAIR)

customer views on using idle capacity and batteries

Q (James West · Melius): Are customers willing to use underutilized generation and build near it, or to add some capacity while starting with existing megawatts? Also, are batteries now capable of meaningful long-duration storage?

A: They said customers are highly sophisticated and pursuing all of the above: relicensing, uprates, co-locating and mixing existing and new resources. On batteries, they said 4-hour batteries are already playing a big role and Calpine/Constellation have substantial expertise in developing and integrating them.

"One of the things that it really has just been remarkable is the level of sophistication that our clients now possess about the grid is as good as the energy companies themselves." — Joseph Dominguez (CEO·CHAIR)

bilateral timing and Illinois nuclear procurement

Q (Julien Dumoulin-Smith · Jefferies): How do bilateral negotiations fit with the RBP timing, and what is the timeline for Illinois nuclear procurement alongside your other activities and the CMC expiration?

A: They said the RBP is one avenue but not the only one; customers can pursue bilateral deals and will assess whether their contracts meet proposed PJM rules and backup requirements. Regarding Illinois, the state will run an IRP and procurement plan, Constellation will participate in that process, and they have no separate negotiations with Illinois today.

"What customers want to understand is, what I'm doing in contracting space going to meet the requirements in a future PJM rule such that I could be assured that I'm compliant, right?" — Joseph Dominguez (CEO·CHAIR)