Constellation agrees to buy Rhode Island gas plant from Shell for $715 million

Insider Monkey

Constellation Energy agreed Sept. 10, 2026, to buy the Rhode Island State Energy Center from Shell Energy North America for $715 million. The 609-MW natural-gas plant sells power into ISO New England; after expected first-year tax benefits, the effective price is about $580m.

Constellation expects the deal to immediately increase operating earnings, meet its 10% unlevered-return threshold and preserve its $5 billion share-buyback program. The article also points to the company’s debt burden, historically volatile free cash flow and the plant’s exposure to commodity and power-market swings.

The article characterizes the sale as a portfolio trim that frees cash for Shell’s capital returns, buybacks and higher-margin investments. It also says Shell would forgo potential gains and steady cash flow if New England power prices rise.

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