Three Mile Island Facility Rising From The Ashes? Constellation Energy In Talks for Restart: Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 03 2024
0mins
Source: Benzinga
Constellation Energy Corporation Talks with Pennsylvania Officials:
- Constellation Energy Corporation is in discussions with Pennsylvania officials to potentially fund a restart of part of its Three Mile Island power facility, known for a 1970s nuclear meltdown.
- The company has not made a final decision on restarting the unit due to various economic, commercial, operational, and regulatory considerations.
Potential Restart of Three Mile Island Site:
- Talks suggest plans to restart part of the site, excluding the unit that experienced the meltdown, based on a recent engineering study completed by Constellation Energy Corporation.
- No U.S. nuclear power plant has ever been reopened after closure due to high costs, logistical challenges, and expected opposition regarding safety and environmental concerns.
Focus on Nuclear Energy Expansion:
- Constellation Energy Corporation is focusing on expanding its current fleet rather than acquiring additional sites amidst the current emphasis on nuclear energy.
- The company reported strong first-quarter financial results with adjusted EPS exceeding consensus but sales missing expectations.
Model for Public-Private Sector Approach:
- A decommissioned nuclear plant in Michigan recently received a $1.5 billion conditional loan for restart, potentially serving as a model for the public-private sector approach at Three Mile Island.
Investment Opportunities:
- Investors can gain exposure to Constellation Energy Corporation through ETFs like EA Series Trust Strive FAANG 2.0 ETF FTWO and Virtus Reaves Utilities ETF UTES.
- CEG shares were up 2.49% at $211.28 at the last check on Wednesday.
Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CEG is 412.82 USD with a low forecast of 350.00 USD and a high forecast of 520.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 287.350
Low
350.00
Averages
412.82
High
520.00
Current: 287.350
Low
350.00
Averages
412.82
High
520.00
About CEG
Constellation Energy Corporation is a producer of emissions-free energy and an energy supplier to businesses, homes and public sector customers nationwide. The Company’s nuclear, hydro, wind, and solar generation facilities have the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation’s clean energy. Its segments include Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. It operates approximately 55 gigawatts of capacity from nuclear, natural gas, geothermal, hydro, wind and solar facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
