Constellation Energy (CEG) shares declined approximately 3.3% to $243.32 on Wednesday, underperforming the broader market as a wave of selling swept across stocks tied to the artificial intelligence power theme. The pullback came despite positive regulatory developments for the company's Crane Clean Energy Center, the former Three Mile Island Unit 1, which is being revived to supply electricity to Microsoft data centers.
The decline appeared to be part of a broader rotation out of AI-power stocks, with Vistra (VST) falling 4.9% and GE Vernova (GEV) dropping 6.0%. Both companies are heavily exposed to the same data center power demand thesis that has propelled Constellation's shares higher in recent months. The SPDR S&P 500 ETF (SPY) eased about 1.0%, highlighting Constellation's relative weakness.
Regulatory Progress on Crane Clean Energy Center
Despite the market headwinds, Constellation achieved a significant regulatory milestone. On June 8, the Federal Energy Regulatory Commission (FERC) approved the company's request to transfer 760 megawatts of capacity interconnection rights from its Eddystone facility near Philadelphia to the Crane Clean Energy Center. This move effectively determines how much power the revived nuclear plant can deliver to the grid, a critical step for the $1.6 billion restart plan. However, PJM Interconnection has warned that additional transmission upgrades are necessary for the plant to operate at full output safely.
The Nuclear Regulatory Commission (NRC) continues its review of the project. On June 3, NRC staff issued a draft environmental assessment and a draft finding of no significant impact, suggesting that a full environmental impact statement may not be required. The public comment period is open until July 8, with a final environmental decision expected in September 2026.
Operational and Financial Updates
Constellation recently reported first-quarter adjusted operating earnings of $2.74 per share and maintained its 2026 earnings outlook of $11 to $12 per share. Nuclear output reached 44,666 gigawatt-hours in the quarter. The company also completed a spring refueling and maintenance outage at its Limerick Clean Energy Center, investing $90 million. The two-reactor site has a capacity of 2,317 megawatts and serves approximately 1.7 million homes.
Additionally, Calpine, now part of Constellation, announced plans to expand The Geysers geothermal complex in California by 25 megawatts, enough to power over 25,000 homes annually. Of this capacity, 18 megawatts are allocated to Clean Power Alliance and 7 megawatts to MCE customers in the Bay Area.
Capital Markets and Risks
Constellation recently completed a secondary offering of 11 million shares at $281 per share, with selling shareholders offloading stock. The company did not sell its own shares and will not receive any proceeds, but it agreed to repurchase 2 million shares under its existing buyback program.
While regulatory progress is encouraging, the Crane restart faces several hurdles, including final NRC approval, restart checks, transmission issues, and the unprecedented nature of a nuclear restart in the U.S. Delays, slower data-center demand, softer power prices, or further shareholder selling could weigh on the stock even as the core business expands.
Investors are now focused on the NRC's public-comment deadline on July 8 and the final environmental decision expected in September, which will be key catalysts for the stock. The outcome will determine whether the market can look past the current selloff and focus on the potential 2027 restart of the Crane Clean Energy Center.
