Constellation Energy cleared another regulatory hurdle toward restarting the Three Mile Island Unit 1 nuclear plant, which is slated to supply power to Microsoft under a 20-year agreement. Each approval milestone reduces restart risk and narrows the gap between current operations and the full value of that long-duration power purchase contract.
The TMI restart, once fully approved, locks in 835 MW of contracted carbon-free baseload power under a 20-year Microsoft PPA at premium rates, providing durable earnings visibility that is not yet fully reflected in CEG's 9.1% net margin baseline.
CEG's stock has already appreciated significantly on TMI restart expectations, meaning a successful final approval may be a 'sell the news' event if the incremental EPS uplift from the contract is modest relative to the current valuation multiple.