Starting off October on a bullish note, Constellation Energy (CEG +1.93%) stock is powering higher today after the power producer announced a new power purchase agreement with Amazon.
As of 1:06 p.m. ET, shares of Constellation Energy are up 2.3%, paring back an earlier gain of 6.4%.
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Maryland's only nuclear power plant is about to get a lot more powerful
Constellation and Amazon announced yesterday that they have inked a 20-year, 690-megawatt power agreement that will support $3 billion in facility upgrades and the expansion of the Calvert Cliffs Clean Energy Center, which includes two nuclear reactors, in Maryland.
NASDAQ: CEG
Key Data Points
The investment will help Constellation add about 190 megawatts between 2030 and 2032 to the facility, which currently has a 1,790-megawatt generation capacity.
Additionally, the two companies announced a related retail supply agreement to support Amazon operations in the 13-state PJM market, where electricity is bought, sold, and distributed across the Mid-Atlantic and parts of the Midwest.
Is it too late to buy Constellation stock now?
Unlike stocks of companies developing advanced nuclear reactors, Constellation stock offers investors a more conservative way to gain exposure to the nuclear renaissance the United States is currently experiencing. While shares of Constellation are bumping higher today, they have hardly soared to a valuation that would make them undesirable, trading at only 2.7 times trailing sales.
