U.S. power and utility companies saw major developments last week as rising AI-driven electricity demand fueled new investments, while concerns over consumer costs and regulatory scrutiny complicated consolidation efforts in the sector.
- Constellation secured a major long-term electricity agreement with Google, supporting upgrades to existing nuclear plants.
- Vistra received a conditional $4.2 billion federal loan commitment to expand nuclear generation.
- NextEra Energy’s proposed merger with Dominion faced opposition in Virginia over electricity costs and competition.
U.S. power and utility companies scored multibillion-dollar deals and investments last week, as increasing power demand from AI data centers continued to reshape the energy sector.
Constellation Energy (CEG) secured a massive nuclear power agreement with Google, while Vistra (VST) received a $4.2 billion federal funding commitment to expand nuclear capacity. Meanwhile, NextEra Energy’s (NEE) proposed $67 billion merger with Dominion Energy (D) faced opposition in Virginia.
Here are the major developments from last week.
Constellation Secures Deal With Google
On Tuesday, Constellation Energy, the largest U.S. nuclear operator, announced a long-term agreement with Alphabet’s Google (GOOG, GOOGL) covering 3,590 megawatts (MW) of electricity. The agreements include a 20-year contract supporting 890 MW of additional nuclear capacity and a separate 15-year agreement covering 2,700 MW of power.
Using the funds, Constellation plans to invest more than $4.3 billion in upgrades to 11 existing nuclear reactors across Illinois, Pennsylvania and New Jersey. The announcement follows a smaller contract with Amazon a week earlier.
Vistra Gets $4.2B Federal Boost
Vistra received a major boost on Monday after the U.S. Department of Energy announced a conditional loan commitment of up to $4.2 billion. The financing will support modernization and capacity expansions at Vistra’s nuclear facilities in Pennsylvania and Ohio, helping strengthen electricity supplies in the PJM grid, which serves 13 states and Washington, D.C.
The projects are expected to add 433 MW of nuclear capacity and preserve nearly 4 GW of existing generation. The financing remains subject to final approval conditions.
NextEra-Dominion $67B Merger Faces Opposition
NextEra Energy’s proposed $67 billion merger with Dominion Energy faced fresh criticism in Virginia last week.
According to a Financial Times report, state officials raised concerns about rising electricity bills, reduced competition and the combined company’s influence. Virginia Governor Abigail Spanberger was “deeply sceptical” about the deal, with her office reportedly ‘blindsided’ by the news of the deal.
Duke Energy’s Pricing Plans
Duke Energy (DUK) announced a proposed agreement with Amazon (AMZN), Google, Meta (META), Microsoft (MSFT) and other stakeholders to protect North Carolina customers from data center-related electricity costs.
Under the agreement, large electricity users, including new data centers, would pay upfront for dedicated grid infrastructure and provide financial guarantees for shared upgrades. These customers would also be placed under a separate electricity pricing plan which is essentially for businesses with high power demand.
How Did CEG, VST, DUK, D And NEE Stocks Fare Last Week?
Vistra and Constellation Energy led the gains last week, gaining 11.5% and 11.4%, respectively, while Duke Energy rose 2.3%, NextEra Energy gained 1.4%, and Dominion Energy edged up 1%.
Meanwhile, retail sentiment on Stocktwits surrounding DUK, D, and CEG was ‘bearish,’ sentiment for NEE was ‘bullish,’ and ‘extremely bullish’ for VST.
Constellation is down 15.6% so far this year, NextEra fell 3.6%, and Duke slipped 0.5%, while Dominion gained 5.21% and Vistra edged up 0.1%.
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