Constellation finalizes purchase of stake in Texas nuclear plant
Nuclear

Constellation finalizes purchase of stake in Texas nuclear plant

Constellation completed its acquisition of NRG Energy’s 44% ownership stake in the South Texas Project Electric Generating Station, a 2,645 MW nuclear plant located about 90 miles southwest of Houston.

Constellation is now one of three owners of the plant, joining Texas municipal utilities Austin Energy (16%) and CPS Energy (40%). The South Texas Project Nuclear Operating Company (STPNOC) will continue to operate the plant.

The $1.75 deal faced strong opposition from Austin Energy and CPS Energy, which serves San Antonio. CPS Energy has filed litigation claiming right of first refusal to the plant, which Austin Energy has intervened in.

The muni utilities also told the U.S. Nuclear Regulatory Commission (NRC) in July STPNOC did not have approval to submit an application to NRC related to the sale.

But the parties closed the transaction Nov. 1.

“The ongoing legal proceeding did not prohibit NRG and [Constellation] from consummating the transaction, and Constellation is working with all parties to reach a resolution to the matter,” Constellation Energy said in a Nov. 1 SEC filing.

The South Texas Plant includes two pressurized water reactors which came online in 1988 and 1989, respectively.

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