Constellation Energy agreed to acquire the Rhode Island State Energy Center from a Shell subsidiary for $715 million.
The deal adds a 609-megawatt, combined-cycle natural gas power plant in Johnston, Rhode Island. This acquisition expands Constellation's presence in the New England market.
The purchase price effectively totals $580 million after accounting for first-year tax benefits. Constellation expects the deal to be immediately accretive to its operating earnings. The investment targets returns exceeding the company's 10% unlevered return threshold.
The transaction remains subject to customary regulatory approvals. Management does not expect the acquisition to impact the company's existing share repurchase program.