DOE commits $5B in loans to Constellation nuclear uprates

Loan targets reactor uprates

The Trump administration is extending $5 billion in loans to Constellation Energy to expand nuclear generating capacity at eight power plants by 1.1 gigawatts, TechCrunch reported. Constellation said it plans to use the financing to uprate 11 existing reactors, an industry term for expanding capacity, often by using more highly enriched uranium and upgrading equipment to handle higher power levels.

The plants named by TechCrunch are Braidwood, Byron, Clinton, Dresden, La Salle, and Quad Cities in Illinois; Calvert Cliffs in Maryland; and Limerick in Pennsylvania. Constellation said it had already committed to spending more than $7 billion to add 1,080 megawatts of nuclear capacity.

Hyperscalers already hold the output

Most or all of the additional power from seven of the facilities has already been bought by Google, Meta, or Amazon, according to TechCrunch. Google is the confirmed buyer of added power from the Pennsylvania plant and four Illinois plants. Amazon is buying electricity from the Maryland plant, and Meta is effectively buying the entire Clinton plant in Illinois.

Cost and rate questions remain

The loan commitment, which has yet to be finalized, could lower financing costs for the projects, Constellation said in a press release. The Department of Energy touted the loan as supporting affordable, reliable power to American homes and businesses, though there is no evidence the new capacity will lower prices for residential ratepayers, TechCrunch reported. Constellation's announcement does not say whether the projects will maintain or lower electricity rates, and the company would not confirm the government's claim to TechCrunch.