Why Constellation Energy Stock Surged More Than 30% in September

Shares of Constellation Energy (NASDAQ: CEG) rocketed 32.2% in September, according to data provided by S&P Global Market Intelligence. Powering the energy company's surge was a deal with Microsoft (NASDAQ: MSFT) to restart a nuclear power plant. The agreement could help spark a resurgence in nuclear energy in the country, potentially further accelerating Constellation's already robust growth rate. Constellation Energy signed a 20-year power purchase agreement with Microsoft to launch the Crane Clean Energy Center. The power producer will restart Three Mile Island Unit 1, which shut down for economic reasons five years ago. Microsoft will purchase all the power the nuclear energy plant produces to help support its data center operations. The power company will spend about $1.6 billion to bring the nuclear energy facility back online, which it expects will occur by 2028. It will add more than 800 megawatts of carbon-free energy to the grid, enough to power 700,000 homes. Microsoft is paying a high price for this power (at least double the going market rate, according to analyst estimates), which will help offset the energy used by its data centers with carbon-free energy. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool