Constellation Energy (CEG) Investor Update summary

Project announcement and strategic partnership

• Announced the restart of the Crane Clean Energy Center (formerly Three Mile Island) in Pennsylvania, adding 835 MW of clean, reliable nuclear power to the grid by 2028, with operations expected until at least 2054.

• Microsoft will take the full output under a 20-year PPA to support its data center needs, deepening their strategic partnership.

• The project is fully funded by Constellation and Microsoft, with no cost to utility ratepayers.

• The initiative is projected to create over 3,400 jobs, including 600 permanent positions, and generate $16 billion in GDP and $3.6 billion in tax revenues for Pennsylvania.

• The plant is being renamed in honor of Chris Crane, a key industry leader, and has strong support at local, state, and federal levels.

Technical and operational details

• Extensive technical analysis and inspections confirm the plant is in excellent condition, with key equipment like steam generators and the main generator ready for startup.

• Main power transformers will be replaced, and a detailed multi-year project plan is in place, including procurement of long-lead items and restoration of training facilities.

• Major projects include turbine inspections, pipe restoration, and control system testing, with new transformers expected on-site by Q3 2026.

• Over 600 employees will be hired, including reactor operators who will undergo extensive training and licensing.

• The project will provide 7 million MWhs of reliable, clean energy annually.

Financial impact and risk management

• The project will increase annual base EPS growth rate from at least 10% to at least 13% through 2030.

• $1.6 billion in capital will be invested through 2028, with eligibility for the $30/MWh 45Y clean energy production tax credit starting in 2028.

• The 20-year PPA with Microsoft provides long-term earnings and cash flow certainty; all project risks and cost overruns are borne by the company until the plant is operational.

• The PPA covers energy, capacity, and attributes, with Microsoft taking full output from day one.

• Strong free cash flows and a high investment grade balance sheet support ongoing investments.