Nuclear Production Tax Credit and market recognition that nuclear energy is essential to clean energy transition improve company's long-term outlook
Baltimore, April 3, 2024–(BUSINESS WIRE)–Constellation's credit ratings are based on the company's strong financial performance due to improved debt coverage metrics and climate change policies that recognize the value of nuclear power. It was raised by rating agency Moody's Investors Services (“Moody's”). A reliable and clean energy resource. Moody's upgraded Constellation's rating from Baa2 to Baa1 and assigned a stable outlook reflecting confidence in the company's ability to maintain its credit metrics and financial performance going forward. Constellation, the largest carbon-free energy producer in the United States, has exceeded financial expectations since launching as an independent company two years ago. Moody's upgrade follows two similar upgrades by rating agency S&P Global Ratings (S&P) since its separation from Exelon in 2022.
“On both sides of the aisle in Washington and in boardrooms across the country, there is no more valuable commodity than clean, carbon-free energy that's always available when you need it,” said Constellation President and CEO Joe Dominguez. No,” he said. “With the nation's largest nuclear fleet backed by commercial operations serving three-quarters of the Fortune 100 companies, Constellation provides cleaner, more reliable energy than any other U.S. company. Our portfolio of nuclear, wind, solar and hydro assets will help us maintain “advancing America's energy security and economic prosperity while also advancing climate action.'' ”
Moody's also upgraded the company's carbon transition score to its highest rating. Constellation will produce approximately 10% of all carbon-free energy on the U.S. grid in 2023, and 90% of the company's total electricity generation will come from clean sources. And extending the life of Constellation's nuclear power plants by 20 years would generate more additional carbon-free energy than all the solar and wind energy currently on the grid.
The potential for increased plant longevity and energy production enabled by the Inflation Control Act are key factors in improving its long-term financial outlook, Constellation recently disclosed in its earnings forecast for 2024 and beyond. After several years of flat growth, demand for electricity is expected to accelerate over the next decade as concerns about climate change drive electrification of all sectors of the economy, from transportation and digital infrastructure to home heating and cooling. has been done. As a result, leading technology companies and other industries are turning to Constellation to help power their operations with clean energy. Examples include Microsoft, which signed a contract with Constellation to power one of its data centers in Virginia with a combination of nuclear and renewable energy; They include ComEd, a Chicago power company that has signed a contract to use it. daily time.
In February, Constellation announced plans to increase its per-share dividend by 25% this year, which is higher than the company's annual dividend target of at least 10%. The company's financial performance has also allowed it to increase support for the communities it serves. In 2023, Constellation, its approximately 14,000 employees, and the Constellation Foundation donated a total of $18.7 million to philanthropy supporting 4,400 charities. This is an increase of nearly 50% from the previous year. Learn more about the company's financial outlook.
About Constellation
Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the nation's largest producer of clean, carbon-free energy and provides energy products to business, residential, community, and public sector customers nationwide. We are a leading supplier of services. Companies in the continental United States include his three-quarters of the Fortune 100 companies. Almost 90% of our annual production is carbon-free, and our hydro, wind and solar power facilities, combined with the nation's largest nuclear power plant, have the capacity to power the equivalent of 16 million homes. , which provides about 10% of the country's clean energy. We support our customers in achieving their sustainability goals, setting our own ambitious goal of achieving 100% carbon-free electricity generation by 2040, and leveraging promising emerging technologies to reduce carbon emissions across the country. By investing in , we are further accelerating the country's transition to a carbon-free future. All sectors of the economy. Follow Constellation on LinkedIn and twitter.
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contact address
paul adams
constellation communications
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paul.adams@constellation.com
