Constellation Energy's CEO stated that existing power plants are the 'bedrock' of data center supply and expects Texas's large-load interconnection to resume promptly.

Constellation Energy expects Texas' Batch Zero large load interconnection process will resume without meaningful delay. Despite the Ratepayer Protection Pledge's requirement that planned data centers supply their own new generation, existing power plants will play a substantial role in servicing these facilities, according to Joseph Dominguez, Constellation's president and CEO.

"We're never going to build this economy if we have to wait for new power plants to be built before we can connect any data center," Dominguez said during an earnings conference call. "The bedrock of building out at least this early phase of the data economy is going to rely heavily on existing generation." He noted that significant available capacity exists in the transmission and generation system capable of serving consumers more than 99% of all hours annually.

The challenge, Dominguez emphasized, is not energy availability but rather peak capacity management. "We have a peak capacity concern, not an energy concern," he said. "The secret sauce here is to deal with the handful of peak hours that present reliability concerns, and at the same time to harvest the stranded capacity that exists every other hour of the year." Peak periods can be managed through batteries, demand response, and peaking resources, allowing customers to rely on Constellation's fleet as a fixed-price, clean energy resource over decades.

Constellation, a Baltimore-based independent power producer, owns approximately 55 GW of generation capacity, including about 22 GW of nuclear capacity. Several of its data center–related projects have been affected by the Batch Zero pause. However, the company expects the state's audit of proposed data centers to proceed quickly. Dave Dardis, Constellation's chief of external affairs and growth officer, noted that state officials are motivated to respond to constituents, and Governor Greg Abbott's information requests for Batch Zero submissions are reasonable and achievable.

With large load interconnection requests totaling approximately 474 GW—predominantly from data centers—Abbott requested that planned facilities provide details on power supplies, expected electricity and water consumption, and public financial assistance. Constellation believes this information can be supplied rapidly with no meaningful delay to the industry.

Dominguez expects wholesale power prices in ERCOT to rebound as data centers begin operating. Battery storage and other resources currently coming online before anticipated demand are driving prices down. "The market will start to tighten up as data centers get built, and you start to see the market come into more or less equilibrium," he said.

In related news, Constellation sold its 606-MW gas-fired Brazos Valley power plant to LS Power for $860 million, or approximately $1,420 per kilowatt. Shane Smith, Constellation's CFO, noted that the competitive bidding process demonstrated buyer recognition of long-term value in gas-fired assets with potential for higher utilization rates. Once approved, the sale will satisfy Constellation's settlement obligations from its Calpine acquisition. The full portfolio of assets Constellation must divest under its agreement with the U.S. Department of Justice is expected to generate approximately $5.9 billion in gross proceeds.