PSEG Power Plans 200-MW Nuclear Uprate at Salem Plant as Data Center Deals Loom
PSEG Power and Constellation Energy are moving forward with plans for a 200-MW uprate at their jointly owned Salem nuclear power plant in southern New Jersey. Salem currently holds an installed capacity of 2,280 MW. Under the new arrangement, PSEG Power will claim a 112-MW share of the uprate, while Constellation takes ownership of the remaining capacity to back a recently announced nuclear-focused power purchase agreement with Google.
The expansion comes as PSEG Power’s roughly 3,760-MW nuclear fleet operates at a high efficiency level, running at a 95.5% capacity factor in the third quarter. That figure marks an increase from 92.4% during the same period last year, according to company data.
Thermal Shield Degradation Discovered During Salem 1 Refueling Outage
Operational momentum has hit a roadblock at the Salem facility. In a quarterly filing with the U.S. Securities and Exchange Commission, PSEG disclosed that a visual inspection last month during a scheduled refueling outage at Salem 1 revealed a degraded thermal shield inside the reactor vessel.
Inquirer: Constellation Energy’s Limerick (PA), Salem (NJ) Nuclear Power Plants In Deal To Be Uprated To Sell Data Center Electricity To Google https://t.co/PxgjSlz4K8
We have initiated further testing, which is ongoing and is expected to extend the refueling outage,
PSEG stated in the filing, adding that the ultimate impact on Salem 1 depends on the timing and results of the inspection alongside necessary repairs.
Financially, PSEG reported third-quarter operating income of $574 million, up from $565 million in the year-ago quarter, alongside a roughly 1% increase in weather-normalized electric sales over the past 12 months. The company maintains an expected operating earnings compound annual growth rate of 6% to 8% through 2030, excluding one-time items. Overall third-quarter net income dropped to $376 million, or 76 cents per share, down from $622 million, or $1.25 per share, a year prior, driven largely by mark-to-market losses at PSEG Power.
PSEG Explores Nuclear Power Deals for Large Data Center Loads
PSEG leadership continues discussions with data center developers regarding the company’s approximately 3.8-GW nuclear fleet. Ralph LaRossa, PSEG chair, president, and CEO, addressed the strategy during an earnings call.
PSEG Power is continuing to develop terms with large load entities for contracting arrangements involving existing nuclear production, future nuclear upgrades and other generation opportunities, similar to recently announced power purchase agreements in the PJM region and specifically in New Jersey,
LaRossa said.
LaRossa noted that a recent Federal Energy Regulatory Commission decision rejecting key portions of the PJM Interconnection proposed plan for data center interconnections reinforces that the focus has shifted to the states to address retail curtailment and cost issues associated with large load customers.
In response, Public Service Electric and Gas Co., a PSEG utility, is collaborating with the administration of New Jersey Gov. Mikie Sherrill and state utility regulators to constrain electric cost increases. The utility plans to file a proposal with the New Jersey Board of Public Utilities by the end of the year to recover investments made since its last distribution rate case.
Our filing … is all about staying aligned with the governor’s goals to keep rates flat for as long as possible,
LaRossa said.
