Constellation, Amazon Ink 20-year Power Purchase Deal
(RTTNews) - Constellation Energy Corporation (CEG), a power producing company, Wednesday announced that it has signed a 20-year agreement with ecommerce giant Amazon (AMZN) that will support continued investment and expansion of the Calvert Cliffs Clean Energy Center.
The agreement will enable more than $3 billion investment in infrastructure of the energy center which is Maryland's only nuclear plant and largest source of clean energy. It includes state of art improvements across the entire 1,790-megawatt plant and approximately 190 megawatts in total of new, emissions-free generating capacity coming online between 2030 and 2032.
Calvert Cliffs facility produces approximately 80 percent of Maryland's clean energy and enough electricity to power the equivalent of more than 1.3 million homes. It employs more than 800 people and contributes about $21 million annually in taxes.
The agreement comprises of 690 megawatts of power, including the 190 megawatt uprate with Amazon to help in providing Constellation with the revenue certainty to relicense the plant for another 20 years and develop new clean energy power plants at the site. The deal will also help Amazon manage its energy costs for facilities throughout the region.
Constellation reassured that all the electricity generated by Calvert Cliffs will continue flowing to the PJM regional grid just as it does currently.
On Wednesday, CEG shares closed at $254.02, down 3.99% on the Nasdaq.
