Constellation Energy Corporation, based in Baltimore, has announced plans to acquire the Rhode Island State Energy Center, a combined-cycle natural gas power plant in Johnston, Rhode Island, for approximately $715 million. The deal, subject to customary adjustments and regulatory approvals, is expected to close after the facility continues operating under its current ownership until then.
The acquisition targets RISEC Holdings, LLC, the owner of the 609 megawatt facility, which has been operational since 2002. The plant utilizes combined-cycle technology, generating electricity and selling capacity into the ISO New England wholesale power market. Its efficiency and lower emissions compared to traditional single-cycle plants make it a strategic fit for Constellation’s portfolio.
The purchase price of $715 million is equivalent to roughly $580 million net of anticipated first-year tax benefits. The deal is projected to be immediately accretive to operating earnings and deliver returns exceeding Constellation’s 10% unlevered return threshold. The transaction is not expected to affect Constellation’s ability to execute its $5 billion authorized share repurchase program by the end of 2027.
Joe Dominguez, chairman, president, and CEO of Constellation, described the acquisition as complementary to its successful customer business in New England. Legal counsel for the deal includes Day Pitney LLP.
The acquisition underscores Constellation’s focus on expanding its energy assets in the New England market, leveraging its combined-cycle technology for operational efficiency and regulatory alignment with regional energy demands.
