Constellation Energy Stock Is Waiting On One Answer
Constellation Energy (CEG) could lock in many years of sales by signing long-term contracts for the power from its nuclear plants. Constellation has signed only some of those contracts so far. Over the past twelve months, the stock has fallen 25%, while the S&P 500 returned 17.1%. Shareholders first need to know how much of that power is already under contract.
Constellation Has Contracted About 30% Of Clean Baseload Output
Constellation has contracted roughly 30% of its clean baseload output, the steady power its plants produce around the clock, under long-term agreements. Management gave that figure on its second-quarter 2026 call on August 6. The rest of that clean baseload output is not under long-term agreements.
The company built that share deal by deal. It signed about 920 megawatts of long-term nuclear deals between its first-quarter and second-quarter calls. On September 30 it announced a 20-year agreement with Amazon at Calvert Cliffs, Maryland’s only nuclear plant. That agreement adds about 190 megawatts of nuclear capacity at the 1,790-megawatt plant.
Analysts asked on the August 6 call about capacity, including new capacity in PJM, the power market where most of its nuclear plants operate. Management has said it is discussing all of its opportunities to add megawatts with customers, in combination with its existing capabilities.
Contracts that long should make sales easier to predict, and Constellation’s sales have not been steady. Its annual revenue fell 5.4% in fiscal 2024 and rose 8.3% in fiscal 2025.
What Has Constellation Said About Its New Contracts?
Management has said the deals signed since the first-quarter call run 18.5 years on average. The buyers are investment-grade customers, meaning companies with strong credit. Management has also said those deals recognize existing nuclear energy as a premium product.
Management has not said what those customers pay. In March it gave a range for the potential value of its contracts. A question on the August 6 call put that range at $20 to $50 a megawatt hour, and management said it would leave that range unchanged. It has also said customers will decide how and when their own agreements are disclosed. So you know how long the new contracts run, but not what they pay.
Which PJM And FERC Decisions Are Still Ahead?
Decisions from PJM and from the regulator FERC are still ahead. Management said in March that it was behind its timeline for long-term agreements, due to new uncertainty over regulation. On the August 6 call it said progress on that front was giving customers more confidence to plan and to contract.
Management has said PJM has proposed a procurement auction this fall, with results expected by year-end. Management also expects an order from FERC in the first or second quarter of 2027.
Shareholders are still waiting to learn how much more of its clean baseload output Constellation will sign. A contracted share clearly above the roughly 30% management reported in August would show customers committing more of that power for the long term.
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