CEG - Earnings call transcript Q2 2024 | Constellation Energy Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Constellation Energy Corporation Second Quarter Earnings Call. [Operator Instructions] As a reminder, this call may be recorded. I would now like to introduce your host for today's call, Emily Duncan, Senior Vice President, Investor Relations Growth.

You may begin.

Emily Duncan

Thank you, Michelle. thank conference joining call. and second Energy everyone, earnings quarter morning, you Constellation for Corporation's Good Constellation's Leading Constellation's Executive Eggers, President call and Financial the today Chief Officer; are and Joe Dominguez, Chief Officer. Dani will other by questions Constellation's team answer joined are be prepared members to remarks. They available our senior of management who following your other can will Constellation's release the Investor in subject during earnings our with uncertainties. website. The issued and contain and found release morning along forward-looking we that various the to estimates and section be of matters, presentation, today's call We regarding risks this are all discuss its earnings and of which which statements Relations subsidiaries Constellation made statements results on today's assumptions factors during differ and comments in this our Actual call. could forward-looking based discussed and from material filings projections, today's cause and presentation and of and refer discussions other other measures. management's SEC may also considerations references and factors adjusted that Please from forecasts Constellation's risk differ for operating and earnings circumstances to other expectations. Today's non-GAAP includes to X-K results to call Joe information to equivalent for release to our of and presentation non-GAAP refer the turn appendix CEO, contained earnings Please between now the measures. I'll and our the our the GAAP Dominguez. measures nearest reconciliations in over the

Joseph Dominguez

for Thanks, your interest morning, joining Emily. in everyone. Good and morning, Thanks Constellation. this us thanks for

our our challenge hot to businesses running, natural we've and power the clean, growth. cool incredibly country's is and and fleet providing Combined renewable economic met had, we're summer, again delivering with this XX/X has families During our best-in-class supporting gas once nuclear keep the reliable fleet, power.

and put good first results. for culture creates success our helping sustainability managing good meet thank they're Constellation Constellation, and that their women ones products responsible to providing energy continues and and because our we people men are think I because want efforts do to job, business the needed Our portfolio. the their to tireless and our customers we goals. At our one-of-a-kind awesome customers our a for at for commercial an

Look, great I this want a X from was this And it's but about surveys. important doing for That work separate as work X most and marks as it's success. certification bit spend we to we're certified far the America years, little you why We've people to any so out company's people, place for a is proud make we're and because this received surveys things a place been we've to company report through come fact, your In career perfect, a and where to think honor. get important us you single thriving. again. place for particularly some only that driver to to of that. full high hard over once And independent years, impactful Constellation by

and just are They our adjusted committed. We to owners. In provide quarter results GAAP shows And to in see So share of work delivered share. in you, and $X.XX our mission, of they're passionate, we're second believe per results, folks it for we're earnings that up also second here doing. it's the operating in great able raise guidance our this quarter, quarter. the seeing they're per but XXX% earnings $X.XX excellent again

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In worth on during excuse share million year of buybacks, our billion total cash -- over far bringing quarter, the so we bought buybacks of billion. $X terms $X to $XXX deployed to me, this or the

Although because compelling. we've is on we seen buybacks remain unique thesis some slippage bullish and of late, our incredibly

as not backstopped the base clean, grow have production front better opportunities achieve each we the reliable many the our read in clean least highlighting base And reliable to we're value the sustainability megawatts our work reliability we decade, earnings, year we from and data that by released to growth throughout will we the ability delivering We encourage the to fronts quite to grid efforts center PTC, it. report, goals. been selling in nation as new adding It help do by and remain through us our customers in to at their more of year, does needs XX% finally, lead energy we provide sustainability to customers. from and our you the unique so to have owners. And reflect or meet confident Federal outlines than earnings even doing and our of third on I powerful good the products.

few FERC do the a capacity minutes market the PJM are of updates, those to turn to and results I center X lot spend proceeding garnering data the on concerning The attention. topics opportunities. opportunities that I before a auction Now want operational and

growing XXXX know. what and talk is let press lengthy capacity we thing. think, through about we detail. same The in said fundamentals when call electricity release, this PJM me First, demand telling market the fundamentals foreshadowed our think We considerable QX the its option. We in in already the this PJM we It's and all are tightening. walked of for demand and supply us

customers not, send like needs market are intermittent relicense our need this FERC PJM, when we development signals that frankly address operate for proposed need, when for are reforms power. best expect through the deliver response. while customer positioned supply and performs resources, historically can incentivize approved on a assets. the in appropriately power. We approved accurate in ours other PJM receives light to incentivizing or system to price and FERC power design to previously retain, Fortunately, that demand [indiscernible] energy incentivizing design of forecasted emergencies, PJM new needs how is the on we market plants to means pricing the see and as data recently the counted whether our shown of resources that grid fair that you the well and fossil provides capacity higher the as greater have of new extraordinarily plants capacity and nuclear compensation dispatchable sustained designed operate reliability supply be to nuclear more they of load That that growth do compensation. In a level well

of price the investment developed gigawatts and Over the years, we're market add families all and impact needs respond over that will to and higher of we the needed. With record And of said, PJM XX as more prices to higher prices market through confident signals know a that grid. of the attracting has businesses. meet has proven generation that track the resources

smooth work team And need distribution accomplished. commercial folks. on focus the ago. the to out solutions remember up. they for that's of transmission side. on inflammation, bill provide to with today And than what been is PJM and our and has needs manage so thankfully, and to risk that is customer the to we the that supply prices And were important that elements up think XX Markets these gone capacity They've grid What are energy adjusted years systems. now address it's capacity have to largely bumps. But of gone the changed customers on But is do. I less reliability working reliability market has designed investments the those that the

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matching to to businesses families to come. On second, decisive is big time our invest alluded investments case action support in to customers upgrading to we use decades And for by the forward these providing nation. in lead Constellation support economies point, this way customers seeing recent great what First, by that We any ideas, work. inspires comments production energy. protect play manifestly think technologies need that resources. make by when sum, is clean to and up That's and look Constellation grow PJM's to we clear. In invest need a will sustainability a sustainably prompt needed of and and to its our American and our expressly relicensing reliability auction, we economy, the power certainly reliably that for second part the it our products and America's efforts in people the enable to place PJM energy speed interconnection clean in mission, will our to energy by and and we [indiscernible] sustainability and that can. to We The PJM concerning those efforts. will to centers

essential They'll that manage enhancements, and variety grid. Economically, treatments states. center continuing discussions they'll behind data nations the transformations. bring buying Now cannot We appreciate to to transformations in for what data for with to a critical to investment that alone from turning this better community construction doing are We're wait They'll fact as do fall energy to not system smartly for things and simple well And us material part, a utilities We're supply on in benefits bringing cures do of doing they're We our and the it's security diseases this X. centers new to going are policy it. center bring the attract economic cannot our data the predict to competitiveness. research essence. data too. to economic that America's China, simply including engine. of revenue, number means tax development the U.S. provide other medicines, are and states whether. national We've more is well permanent coming They're as our jobs, centers crucial negotiations going Time is Slide and do. in the our of that absolutely The to and considerable companies. are supremacy. bankers, AI heard years

each political their understand with that's alike, of this, development the why to of Democrats leaders are states centers jurisdictions. and our competing other, Republicans data and All bring to

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customer, of power other of First, companies data costs and customers are -- almost meter, not the center shared other in center to connect for the the or infrastructure meter we're pay for with Unlike sometimes more needed behind-the-meter behind XX% the front pay in the these projects, customers, to the the data configuration, configurations, cost the plant. infrastructure.

FERC, the "significant data upgrades." filing. is faster, be their I utilities benefit time more from which having have deal. essence, to resources the and telling system it this are RTOs expensive Second, big just co-locating a integrate to new of when is new efficient, faster can, a That's struggling load resources center think with and can is plant power without is the on served acknowledged expend the At time a complaining

are behind-the-meter long Third, configurations these dated.

with data is they're generation, the of for they'll industrial all the economic nuclear sequestration clean of and center countless Fourth, or benefits them number So times. forms that grid to in of them and technologies to relicense certainty with have carbon in thesis our us generation, attendant to nation. We've look. terms for the operate common allow plants to the that these whether colocate new creates SMRs seen

set alternative issues. Likewise, all reject ordered an economic for was these actions not things, essential For in will be security, we to ultimately the the a deficiency well it Instead for FERC the as FERC or will parties maintaining of constructive Talen new conference the to ISA of reasons, of our technical colocation FERC small developing competitiveness. in did the have overall and slowed all Friday's will language with talk the grant about to be thought benefits tool other as provide narrow. opportunities may our Notably, a Energy the the hearing by our utilities requests but that number outright. colocation generation national letter view. at

burden ISA we've applications. deficiency mirrored it higher number approved in fact, In seen for of a a other language that about modifications letter standard

in Just ComEd, higher that X the language was letter. months, same using burden XX received of improved in approved. subsidiary, excellent last deficiency saw as the an both project about instances, this, the letters the [indiscernible] In exact we example a

ultimately with [indiscernible] will course, think do support the costs confident conference, know will forward look compelling examination to what fair of the we're and we the we we are but benefits and any colocation. Of that look, don't FERC ISA,

discussed. customers in that these we on transparency outside participate proceedings view, conversations So these as At is hope point, the idea. at just doesn't not with that we'll parallel proceedings. are But where their are idea. utilities everyone. I actually matters company, how quite all remember we stakeholders are in our to the and a path, and could scheme mean facilities the same to make won't and want in progress, proceeding an to of my we for operate, this part In grand contracts. will have more interact or and execute FERC any with utilities continuing a grid is benefits, policymakers, they'll we time, about new share the colocation a with old who and the how the better we you these things, It's of

least cogen think others And the business, I they projects projects power always on non-monopoly feature a [indiscernible]. I and system. of PSEG first have came to first. Cogen, common not policymakers were the better. power utilities at co-locators not our into combined friendly And and get But surprisingly, or things were not insisted those at when As to noted, were this since heat first and were alternatives

of when were Now regulators, around we're dealing with including weren't a whole new that Cogen policies and created. policymakers the generation many

of our co-located bring So we great inform. But There's as and growth opportunity we and a game. a need utilities zero-sum for see educate to the simply and work a don't to this Constellation projects Importantly, do to to grid-connected data bit work economy to together here for states.

will and those Here's jurisdictions energy of their grid offer I jobs time, business colocation fullness and connection successful both in generating and growth the In development for that economic ours the like be states. and centers clean what think. have most

progress in to overwhelming I on want of we missed is understand time. their I we think or have want our without think attention making as close that over leave data that talking about a that, out now in In highlighting on of sales FERC in XX X, you across data growth of this a the for Slide earnings centers but identified you've on of territory. on-grid don't conversation the would in got are kind topic gigawatts of that the could XX/X amount I why bunch PJM, come lot total, saying this great service through I about look, product. Utilities process. they by been Now the there more this to and part something seen centers power see calls,

that think a there's Illinois, for through over those it's anywhere they're line. the those area. I Now team clients. in reliable to look, sell in our this in is, grid these or they seeing occur center other power And powerful and for thing, is everyone numbers, and in these opportunities duplication growth fairness, present growth longish it's Constellation think regions, an in good But of point going I the data are same a offerings bunch our to other XX/X product to commercial PJM in because else each located opportunity and Ohio whether projects, of time or clean

conclusion, value outlook, our connected data in as we our well has meaningfully and all have the to customers, Nothing changed last So participate. owners. continue ways meter grid multiple quarter to how both behind of create our for the Constellation serve as can over center

is capacity And for performance here, generation outages, of in strong performance million-megawatt slide. That's as Turning XX an the and nuclear reliable, ahead to was can XX nuclear of our plants you X, always. which from and our fleet days, more factor with see completed XX.X%. out refueling this produced We hours quarter. carbon-free laid Slide industry-leading available than again, in as of a including again plan average of we

also gas and Our renewable our and energy power a XX% renewables fleet natural plan. of well Excellent to teams. work. XX.X% those with and dispatch capture match. performed exceeded Congratulations

that our of X. here to carbon-free is again best-in-class business. We industry-leading point. results combined the commercial generation Turning value demonstrate about because with and lot the the a an advantage Slide fleet talk validity creating of

of Our commercial up spot with markets going the throughout changing in year. business bit prices thrives a down course and markets. [indiscernible] volatile and seeing The we're the

reliability just positions margins to offer price and firm to they both. using optimized to They positions, only individual quarter, customers our sustainability their whole, manage that sold in exposure customers best they our Constellation their journeys certainty. energy not and outstanding think turned particular difference customized load make generation that their products match came quarter application. energy. I This in match created that through to operations volatility. A starting priced need the environment products team the Lab the we're clean of joined energy. annual higher prices this the but And manage our clean the volatile for growing high-profile Hopkins their to center to example data ultimately energy the of with John as more the And to to plays from to use customers sustainability time of power production evolving with understand a to in list customers, when that in evidence energy clean mention consumption the hugely they good their that's And University seeing buying best XX/X but not with again, way customers point, that here Applied Physics we hourly also to that, carbon-free us have customers, solutions. On to of a

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Daniel Eggers

everyone. you, morning, which $X.XX than on higher good adjusted per per last is $X.XX share X, in year. earnings we earned Beginning and and Slide earnings, Thank Joe, operating $X.XX GAAP in share

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the the million Following down last in June ZEC in bit a recognized recognized credits, from $XXX is $XX on the million banked quarter, for which we Illinois year. program

than Illinois were the years consumer As you more features. cost overall under generated ZEC as may of is credits this subject to could those its an mechanism. we X cap use able We years. credits of program earlier for to we the In protection future bank recall, program,

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to the of and we second reasons, then will in we and accounting this quarter at $XXX XXXX, million moderated year bank have using largely the forward This the start recognized had planning these recognized 'XX of prices year, for hence, ZECs, XXXX. the us the $XX quarter. revenues For planning book to the million get cap, year which the creds the ZEC only of we

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XX. to Moving Slide

operating to guidance per share strong that increase of range the performance performance Joe earnings going guidance with from raising commercial midpoint year enables for $X.XX to of adjusted are our $X.XX. us our a about full I date, with spoke the earnings outlook to We and outlook and $X year. new our $X.XX to

of we appendix enhanced in XX, optimization you million can better higher to our than and portfolio by As commercial due gross the $XXX line planned. margins margin increased our see on Slide

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to turning Slide So XX.

auction Let's everyone the To the place. into capacity now impact set financial level week's from results. PTC start, get the nuclear of last is in

the the So involved benefit What receipts that prices calculating little P coming below is Q the threshold a from exercise. is unit calculated is all revenues receipts assume and market-based the we XX.XX higher a to in nuclear plant more $XX.XX than of PCC a means in is threshold credit that by PTC filling XXXX. just value a capacity and is this means-based The x were the XXXX. gross PTC gross so gap between per

level. receive get to We expect to to revenues that PTC us

before For the units, upside realize the Level bringing this able was revenues following to the we're uplift higher-than-anticipated auction X those to from PTC to capacity replace earnings. PTC must that us first expected

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any above CMC price to refunded be customers. the will Additionally, revenues

were not benefit that CMC than clarification, even And the for X auction. PJM many do plants in the prices earnings and providing now for where are or our both XXXX, the were in So PTC comparing upside to higher power capacity floor of seeing expectations. they at upside though above us. With for we XXXX any all we Illinois, our cleared realize plants prices

the net XX first in Forwards more impact expected to the to than goes revenue for earnings XXXX, XXXX part approximately which so offset enhanced of increase gross margin upside lower per we capacity was XXXX PTC reflected appendix. of $X.XX Slide share, on XXXX contribution. The as are of the the

carry prices end would through expect capacity the XXXX, capacity increase the per used $X.XX megawatt For December share auction assuming the power capacity in earnings the same and using auction. that forward day previous in we prices. for a in assumption against XXXX quarter $XXX we XXXX, the of

calibrate a every to pretax is As forecast. about your $X if EPS trying of reminder, million penny

on liquidity XX. and update Slide financing the to Turning

Our investment-grade have remains continue agencies. and the strong, to with balance constructive sheet we conversations ratings

of the share the entered began into repurchase completed on year-to-date call. last first million $XXX quarter of for than $X and on During $XXX now program the $X shares. the discussed billion second of top quarter, more accelerated repurchases year completing of we an XX we million program, billion a since total million repurchases We've

our and we have still for repurchase both XXXX $X of We account and taking outlook billion program, to earnings remaining of than have billion and the years. $X.X capital be roughly for in more authorized improving board allocated XXXX, these before into

we generation flexibility directly continue have or view as thresholds, We in our well our nuclear we ability competitive ahead we commodity us, our since as We to strategic that have in considerable growth through all create through value as markets our stock unfortunately, the further last benefits the meets organic more today, the return shareholders our create for time valuable opportunities than the firm, of in investing combined. When are to peers megawatts of even compelling met. most look so at more our and company. market believe to execute and we clean and

stock. now Joe I'll turn his for to invest We our back through remarks. continue closing to the back call it will buying in directly

James McHugh

like job. Dan. Thanks, Great Constellations company. no other

in existing that really our we a a assets At base the have replicated for earnings one us core, to that nuclear backstopped economy. differentiator, start clouds investors government about as concerned a set huge the through opportunities unique built-in can't and We especially is PTC that be has by XX% that growth federal of decade is some have a inflation Backstop of else create visible adjusted. the no become has. through the

We most the have power economic growth. to continue. as reliability generation And the to that and, with Our the a electric got stronger and volatile time, premium and we the combined demand generation Power same year change America. Increased demand, non-dispatchable growing and markets clean country at of system the national drive the that goals. security we have, argument will means both reliable just environmental becoming product, power intermittent, is in more resources support needs could meet dependable is what has for progressed.

commercial that going that a to and part for of of think be is from decades huge addressing team have come. earning Constellation very a We volatility. We is the margins to solution capable

the our deals, But behind-the-meter as decade base are through invest growing that. deals, their to we clean not from and many procurements. Not with earnings have will least will plants, nuclear and U.S. center nuclear is the meter of customer megawatts. grow markets sustainability do is of our this, clean million-megawatt products the our think with goal. at, the we have is customers system other services key front recognized we're energy and growth consistently through that reliable than our Our from starting our compensation to Republicans to more have working increasing standpoint additional the just day. and capture that reliability of of create to opportunities produced that of backstop. team and and and achieve what value the every offer deals the nuclear economy. And and and we carbon-free drive both power we reliable hours faster top from our [indiscernible] our data in-front-of-meter both additional pardon XXX Politically, coupled point government in a just both the will -- continues Democrats with consistently we to basis. with in operates That's that backbone grow, opportunities top companies growth that me. On federal ability annually a sustainability that energy focus. On at That's support behind XX% in We can above volatile commercial transition satisfied products markets,

So it me that, Michelle, to with questions. you, to over handle back let turn

Operator

question Guggenheim first comes Purreza from with [Operator Partners. Instructions] Your Shar

Shahriar Pourreza

can of for starting you FERC point? deal just And of line technical potential this at this, conference us does just time now? color ISA timing is it the view in to I announcement think on the Joe, alluded does process you a kind counterpart backdrop, -- deal of kind give right your prolong colocation the potential how any a with your or the

Joseph Dominguez

economic small. you the relatively But debating folks slow right, down do terms of as it's projects ancillary could a in the charge is really we're And imposed metered have. it the proposes, these hour will of totality the get about no most. Those allocation dollars we physical even about even imposed. things of people that looking is !X X But allocation for think services viability of about. just in of to We services is the think I Shar, going And PPL again, we're low it, talking be ancillary services small as megawatt about $X actually better in as to configuration amount. at $X think they're kind charges of are these here of aren't relatively a think change per if terms certainty. they're kinds think argument if the hour we ancillary and those of terms Talent we talking to PJM in megawatt

forward. march things allocate of provisions about deal. the the to perspective, customers' in that in But to kind they our with the negotiations continue extent we've from So occur crafting of those contract it's deal to that contingencies these the had and

is exactly thing I think will be important clarity to know execution getting to in and for. speed is ISA going contracting having having people going and kind long the of its the only then getting this up talent because clarity through through what the process speed they're most and deal Talen up run,

don't out important this and there. to through good through actually again, of is, it's is and message And I kind not to to clear me. contingencies mean an the the I them you, FERC where say, see we've I go but So the the we This people a get in loud to to this again. will with idea, I that's in it's FERC -- is a I until this. a it. so We're said, do wait think kind of new here of handle FERC won't done. really deal. end levels I that process reasons this process. announce to on script. the continuing all work The all outlined see need of that wanted to outcome a provisions a and inform might don't opportunity will states going really way we to regard policymakers think think in X that the But Like contracting And to forward. come is many kind get get the occur new proceeding. educate we can't done.

terms the timing you so add And we've to walk in have know don't the see. to to anything expect you got through the process. if of I conference of Kathleen. what

Kathleen Barron

great when on of covered litigation of in we something them they when for ] And there solo a and No. we the the in This sides, in docket. And and where at letter, out Talen those really learn necessary. at have the year, asking Commission ISAs can as think a so on language narrow out, it's the the setting to question Last about pointed [ very on the they to I've benefits time kind that case, issued both rule. informal can doing conference setting get as it's a a had than that participated we And about the terms narrowness meeting in in other that deficiency issues that conference deficiency interaction Joe. the stakeholders similar for talk technical be it stakeholder. it, see been of have a adversarial answer open about questions, why you Joe I we a provisions is language, nonconforming as mean, less to kind of proposed are litigated I meeting very opportunity EPA topic. and XXXD look is in opposed there the want to the to from letters as holds both a an like between these time commissioners

not long from happens deficiency does there where reflecting questions to You commission. concerns letters or the in contrast of a That the list here. are occur that questions typically from commission what

if signaling topic. proceeding the zoom -- this the learn fact, to they're have to that conference really they Talen standard they So more they be focused out tech about on some you intend Talen that the tool to keep and going then

a behalf. FERC's we one responsible So on constructive the and, very to forward as a way frankly, move this see

Shahriar Pourreza

it. Got

just the out And That's in doesn't is regarding calls lastly, of you're PJM on open then basing the do actually obviously, topical set some Okay. of discussions, market. whether PPAing helpful. we fast move utilities and it's of entry to market Joe, the just BRA, on been I what's your in into in mean, I interpretation guess new guess, I commentary these peakers if some T&D or the on enough. it's view rate

Joseph Dominguez

my here testament I made a that it's -- of worked. now even the over Yes, sure. discussions before. we've remarks prices, this And high lot been had the Pennsylvania, we're pretty years [indiscernible] like the be lower so has great remember very and would for different. A PJM any Illinois like clear want higher the been cycles we before in there's states with We've long don't point still these But PJM Ohio, think work. like -- I were And markets think market that's where over they've been in to of market. in the these seemingly ago. prices again. that than competition. seen They've business value that point states in that I clear. just these opening is at places just in XX that it's here a evidence And conversation to I fact, impossible. really they

it. those I think stakeholders states in get

in is generation on I answer see think of monopolization of the don't Further frankly, now, about going there more terms view genuine ever is concern of that the I did. policymakers to monopolization generation any I PMD going And the sector. the spending rates sector than growth naturally system. be a to the the

address to problem, it going isn't our competition respond work. FERC So But this to that evidence now, in whatsoever through we the now, we'll give have a those view. points. no right? There's need history that's process anything or just capacity So to new option. time right the We on that's going to

Operator

question Stanley. comes David Morgan Our Arcaro from with next

David Arcaro

outcome was wondering that the get deals urgency does prices terms does to auction hearing in of just data that some the from done? of of colocation you're increase potential I the PJM counterparties how center these

Joseph Dominguez

Yes.

that. to significant think, that, go business urgency, huge opportunity, terms these and and it tightening and I the and refocused there. lot for of megawatts, needs on We've reshaped think locking also of go these and market terms and particular, customers. down and we're in-front-of-the-meter seeing creates it reliable increases of out deals in I is and a Jim's both team. appetite a because meet demand we're the certainly part the for saying people that We've to the of pretty clean it in And a Jim's address customers, team are through in meet seeing urgency a

it in it's have that center supply to PJM it even data the signals think ran was when forecast right, we this that needed center the because the address evidence auction, forecasted also in I data growth, growth PJM growth. with used the the that

think it a So X was positive I on fronts.

and the market a people system. forecast moving to we same in still with their meet and -- the see need do I up And the think of needs now supply. to market have the tightening generation responded the enough lock reliability get the to time, at we but

it's think additive. I So

David Arcaro

sense. a plants dual X dual that would sense certain is makes there center demand we structures assuming And acting data then structure unit That on you're deals, Got you as Yes. contract with that potentially Or make working should look fully as What another unit could the where plant? had it. most question that we've is unit like? be or backup?

Joseph Dominguez

Great Yes. question, Dave.

same But data I as the don't this, wires data type that see depends intends dual us, it circumstances you in most evolve to For could through of picks backup right? the in center, and center. One becomes noted, for configurations, generation hyperscaler data where what seen outages. it center region the smarter the when effectively Where and it's on really centers fiber we've the other opposed facility. made learning sense, as on-grid through and And we've backup the needs meter gotten I all centers think an data in one the easily located really the mode. behind-the-meter that to depends the the are as outage on-grid provide is a center reliability data behind up data units whether on or inference data -- unit we during the with because started unit natural as

certainly think -- configurations how different fairly could feel these stations. We're our will to it customers. -- feel all cases the figuring enthusiasm, interact innings evolving frankly use early owners those the after are lot. learning I despite those resources still I and know even talking and of still of the interact unit customers our in terms the Honestly, grid, we'll see a could We're we configurations with we see in and the them, it. understanding So we out. it It's with

natural selected. of the So rule of are the we I, going backup, wouldn't is place be to electricity do most point, think out We those first sites and volume anything. both to the be at site, this natural think the terms dual-unit in the

And far, it appears to case. the be so

Operator

comes Steve question from next Fleishman Our with Research. Wolfe

Steven Fleishman

to wanted I kind to colocation better on bit of try of the just a line. time more Sorry, kind clarify little

most And So likely, but fall. I policy don't the probably or talent until fall, kind we're think get have I in conference whatever? the by we in going guess a statement that to we'll next technical from of think have XXXX, step a will sometime any outcome I [indiscernible]

even expect year? to this see not year, as still helpful of So sometime of as said. something kind next this more to hear just realistic things that even time the is clarity, you in kind mean is this are something frame that just we kind about get get something Or of until process? should these I still to of -- could we in thinking a be happen terms

Joseph Dominguez

referring Let to I you're a something me right? -- is think done, deal

Steven Fleishman

Yes.

Joseph Dominguez

Yes.

bounded I I might watching sure is or time do those manage conditions of and provisions will working ISA But Steve, out to So allow process. folks the to be on are clarity instructive that us to of ultimately in going don't through independently we that. by think make the are to that we're think comes Talen proceedings. goes what whatever it attached kind contractual outcome get FERC

customers get see discussion we're the on for or among And deals. and finalizing could some stakeholders. towards I with so And going where things FERC process moment least our still working those at some at announced a circumstance certainly there's

Steven Fleishman

assume of love then on, very a I very would of has kind just And of been seeing And public kind helpful. noisy these really inside. gotten this some That's that process. one, don't customers

to all of the get customers? So just with is impacting done a ability that that Is concern? a in at way things the kind

Joseph Dominguez

and But as interfere -- jobs in policymakers. [indiscernible] maybe come it hasn't if and billion like And of it around that development honest, development use won't attention rails. seen be that happening, things than to if it's and are this, of the stuff I'll a from the that this standpoint economic economic Steve. that, policymakers but by Look, see to a so like opportunities. Pennsylvania the is long, are those paying deal, an is I'll of billion [indiscernible] I our we're that this it region yet, to for just fair this it's very And and the extrapolate to say much off illustrate. customers $XX that with from long Not a an way, they dimension in more Talen think lot arrangement sunshine bringing to time. people economic if $XX-plus I think going fair to that, communities cause like to not

drives of which, important so reaction, factors. the policymaker all the in many course, think jurisdictions, pretty our And policymakers of labor I they're reaction,

So I that see think we'll play out.

I to parties to think out. these that work pushes try things

of centers data companies some you standpoint, pro from and The research. that other in probably customer And your option. early isn't out that be in that right, noticed and the these the is, I is to want innings, in to And you that pointed a case. thing a jurisdiction think I every friendly gives

work circle right a the But paying I it red a a signing parties with So this [indiscernible] jurisdiction at not a to now think attention people it. people are look, happen. They where ghost particular place we're are want busters. around to want policymakers have to like out.

have So the we proceedings. federal But discussions to in go will end the need to we If what signal think clear proceedings federal, we the or only the economic development have only of have the this hearing could state from in message. the tell or discussion FERC at and from in Maryland think state at every conversations. it, discussion. we anywhere issues we'll important. I happened the day have strive to these to ones that we This we'll go parties is we're out. do legislation ] rejection don't of work [ ban And is

policy have a would we every and You And don't lawmakers regulators conversation proceeding. frankly, sleep. did, have never if in to

So we I in need my to just continue to have this. Steve, -- view, discussions. it's those

we've to opportunity, huge clean kind work that's If data attracts the could is because place a utility friendly offer energy of before, And and they in more the one incumbent have state center you economy. advantage data together. to that's jurisdiction, seen a the your centers what make you for that

think we thinking the got So that kind very and a kind zero-sum I really to get just as about is just I of hard just of wrong phase, think working this approach game through of the mindset. do it. here where to you're And

the And be the We to working tied up Our owners be expect on that's that our us work to the want announcing proceedings every want day place. what in spectacular things bring on. is to results all that today. don't we team over

have to want but customers these what what that's we to to, a friendly and We achieve. if way we what to in we issues aim policymakers resolve want. will That's prefer

Operator

one question, for Jefferies. question last time have with and comes from Zimbardo We that Paul

Unknown Analyst

last X Maryland. we're bit, little FERC run on I know I wanted all of you mentioned focused to mentioned shift and with you but a that kind

Maryland what legislative the state That to be your Senate strategy level? focuses helpful. kind of just some X at you co-location are comment priorities the more built what state the holistically, broadly, of could are would if Just as support

Joseph Dominguez

not we to think reactive regulatory stuff unions the on to microgrid customers, handled is the But the alluded with are labor we're growth. largely that what largely economic will think Well, we're legislation. not that sitting that we've thinking this the like we're We in all Cogen about about, stuff launching arena. here I talked table be make for work to with we're remain sure I to going opportunities others seeing. But and

Unknown Analyst

strategy, benefits And but some have parties of from auction, of there the know rate the a data bill estimate if you colocation like would payers, for hypothetical Okay. talked your X the colocation. gigawatt if I be some rate of customer in Understood what PJM about the returns the there. in initial was from curious all any remarks, benefits prepared for of center terms just like impacts you

out put to if analysis share? the but Some numbers, of you're of done kind peers your willing curious some have you've there

Joseph Dominguez

customers frankly, that paying includes I some but or of in more, I a of in of Well, and Dardis, associated could have point billion case, we've our We our to is what talk a for will some Kathleen costs but Counsel. applications, behind that David the may think of seen to XX% be that's about is other see necessary, of right? hyperscalers we with substation lot jurisdictions or underestimate load, certainly our generally many socialized, either out gigawatt we the substation doesn't that presented General where of kind work spread where And market. include are in a the just It direct jurisdictions an that connection. lot because those

the connection things think the putting the creating out customers costs. about costs other lot factor when a see the you which get [indiscernible] to right those XXx, billion are amount at it's more could easily $X I data hyperscalers. occurring And switchyards But of of not talk those the because of somewhere. Now socialized point, right? So the you certain a aren't doing and actually is that is on plant, center connect a that grid of what is load. to we're

was to you largest that the refineries If enormous accumulate an thing was had had is data of at Counsel of loads as ComEd, do to in -- about ever could grid one we're I doesn't But steel when right? on notion megawatts, about X start is somewhere XXX me real X when power that, decades Think When other the and the look, at center system largest it. largest could was [indiscernible] go anywhere the megawatts. the in could that this, laughable load we PICO, if that to time, enough at benefit. the gigawatt of This the it. pretending Paul, of grid that's power talking the XX XX, load. so I And were -- you we in gigawatt amount host mills we Philadelphia, are the General concentrate with try out The right? frankly that easily

draw to substations solutions feasible standpoint, when us resources. attendant with is the own [ substations an made of inadvertently from always all talking lines policies don't load about power create having from And always available. make drive independent when wants your sense. available. new, to loan, energy, large going has of to prudent large it the building all where you're redundancy. You're it plants. We nuclear This Each that talking XXX just those to an ] frankly, spending to very of kV made X are to bring not to it's more It large close that cheaper about generation use closer are you're And source. sense solutions billions quicker available, sure it you're electrical are engineering solutions going dollars need bring and, also to you're that mission to power

discussion. So revealing but we're what's going to going to those that's powerful. it's discussions, the be in think have policy And FERC I

manner period for the loads large for many connecting a Senior to the timely on dimensionally, super action. a source -- need closer both feasibility transmission at it things the to his I published to nation's this doing connecting X centers be cost Mike want career, but things Transmission policymakers. There's about document also the that of succinctly in lays many, for I going that the take look to his about PJM and Exelon be clearly, we time going grid chance any think in as Those all we'll at is for Vice He if report. pretty the years, talking out opposed get, places, the who, of in Formo, to have of in was pretty addresses he you we to bigger transmission described, issues of the going and of to President lays If [indiscernible] are And just this report. expert data for be colocation. opportunities a leader we're out somewhere are of generation a regulators the

Operator

to any call further Thank you. over the for like Joe back Dominguez I'd to remarks. turn

Joseph Dominguez

beginning great year the guarantee call. a company them. appreciate really one a in concerned to the about folks the We've excited the always here. slide on focus laid really we it for we'll we made continue Well, issue we super create from the to that attention, on We thank colocation. our And feel the want you. to your accomplish just benefits again, out have I of Constellation, your to work you, We you. year. happen. I shout the to We're Michelle, ownership, your discussions about appreciate all things and the that focus value and had we feel in we're end the With of that have give think that last One our the particular out performance able gets balance the that to robust are date unique overall be of distracts strongly we're opportunities deck about in the doing. going around we've about had to really what today strongly

Operator

for in and today's gentlemen, participating today's thank concludes program. conference. This Ladies you

have You day. great may all a disconnect. Everyone,

Constellation Energy (CEG) 6 Aug 242024 Q2 Earnings call transcript