Constellation Energy in deal to buy 609-MW Rhode Island gas plant from Shell — SkimNews
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- Constellation Energy will pay $715 million for Shell's 609-MW Rhode Island State Energy Center gas plant — which Shell acquired from Carlyle in 2025 — expanding its merchant generation portfolio in the ISO New England market.
- Shell separately agreed to buy 100% of Hunlock Creek Generating LLC — a Castleton Commodities subsidiary's 169 MW of Pennsylvania gas capacity serving PJM — though financial terms were not disclosed.
- The Hunlock deal adds a 125-MW combined-cycle plant and a 44-MW simple-cycle peaker to Shell's PJM footprint; both transactions are slated to close in Q1 2027.
- PwC reported first-half 2026 power-sector M&A value surged 173% to $216 billion year-over-year, attributing the rise in part to AI data-center load growth and a 'new M&A cycle.'
- Constellation CEO Joe Dominguez called RISEC 'a high-performing asset that perfectly complements' the company's New England customer business, citing the plant's position on both the electric grid and the natural gas pipeline system.
Why it matters: Constellation's $715 million acquisition deepens its ISO New England merchant generation foothold while Shell simultaneously buys 169 MW of PJM gas capacity and sells RISEC — reflecting its selective approach to managing its trading portfolio. PwC data shows first-half power-sector M&A value climbed 173% to $216 billion year-over-year, fueled in part by AI-driven load growth.
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