Constellation Gets Green Light For Nuclear Upgrade

Constellation Energy Corporation (NASDAQ:CEG) shares are trading lower on Tuesday after the company announced a key regulatory milestone for its Pennsylvania nuclear operations.

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The firm said the U.S. Nuclear Regulatory Commission approved a License Amendment Request for a major digital upgrade at its Limerick Clean Energy Center, marking a first-of-its-kind modernization at a U.S. nuclear plant.

The NRC's decision greenlights Constellation's Digital Modernization Project at Limerick's control and safety systems.

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The initiative will replace selected analog technologies with cutting-edge digital platforms to enhance reliability and monitoring.

Company leaders said upgrades will improve diagnostic tools and strengthen cyber resilience at one of the nation's top-rated nuclear facilities.

Officials noted the work will help sustain nuclear generation in Pennsylvania amid growing energy demands.

Clean Power Goals

The digital enhancements aim to support Limerick's ability to deliver 24/7 carbon-free electricity to households, businesses and data-intensive industries.

Constellation said the project also aligns with regional clean-energy objectives and economic growth goals.

The U.S. Department of Energy's Light Water Reactor Sustainability Program supports the upgrade, making it the first large-scale digital safety system upgrade at an active U.S. nuclear station.

"Every dollar we invest to enhance and modernize the nation's largest nuclear fleet will pay dividends," said Joe Dominguez, president and CEO of Constellation.

Dominguez said the project will create jobs and boost reliability while keeping costs down for families and businesses.

Energy Security

"This project spotlights how important the ongoing operation of our current nuclear reactor fleet is to our country's energy security," said Ted Garrish, assistant secretary for nuclear energy.

Garrish said advanced digital systems will help ensure affordable, abundant energy for Americans now and in the future.

Implementation Plan

Constellation said the digital systems will roll out in phases to safeguard safety and continuous plant operations.

Physical updates to digital control rooms will occur during planned refueling outages and bring in skilled craft workers, officials said.

Local Impact

Located near the Schuylkill River in Montgomery County, Pennsylvania, Limerick's two units generate up to 2,317 megawatts of reliable electricity, enough to power more than 1.7 million homes.

The plant also provides an economic boost through jobs and regional activity.

CEG Price Action: Constellation Energy shares are trading lower by 1.99% to $347.88 at publication on Tuesday.

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